Show:
Modeling
Valuation
Research
Acronyms
Formulas
100

How many years do WGI analysts explicitly forecast? 

5 years

100

What is generally accepted as the minimum threshold upside required for a stock to be considered a "buy" amongst EM analysts? 

50%

100

Which EM analyst is the technology sector specialist? 

a. Glenn

b. Kevin

c. Ade

d. None of the above

d. None of the above

100
What do ROE and ROA stand for and what do they mean? 

ROE - Return on Equity

It is considered a gauge of a corporation's profitability and how efficient it generates profits. 

ROA - Return on Assets 

Measure of how efficiently and productively a company is using its assets. 

100

How do you calculate a growth rate? (as a %)

(Current Value/Previous Value)-1* 100



200

Which financial statement(s) does WGI forecast? 

Balance sheet, Income Statement, and Cash Flow Statement

200

What are the common multiples that WGI analysts use in its valuation of securities? 

Hint: there are 3 

P/E, EV/EBITDA, FCF Yield

200
Where do analysts find information? 

a. Bloomberg

b. Factset

c. Company Website

d. All of the above

d. All of the above

200

What does CAPEX and OPEX stand for and what are they? 

CAPEX - Capital Expenditures 

Funds used by a company to acquire, update, and maintain physical assets such as PP&E, technology, and equipment. 

OPEX - Operating Expenses

An expense a business incurs in the course of normal operations. 

200

How do you calculate gross margin and operating margin? 

Gross Margin = Gross Earnings/Revenue 

Operating Margin = Operating Earnings/Revenue

300

What is included in an Investment Thesis? 

a. Competitors

b. Risks

c. Valuation 

d. All of the above

d. All of the above

300

What two elements are specific to WGI's valuation method? 

Quality of Management and Free Cash Flow

300

What is the most important task in the research process? 

Reading

300

What does CAGR stand for and what does it mean? 

CAGR - compound annual growth rate

It is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming that the profits were reinvested at the end of every period of the investment's life span. It is a smooth rate of return over time that is helpful when comparing fluctuating returns of different investments. 

300

How do you calculate an income statement based on a vertical analysis? 

Hint: The denominator stays the same

Divide each line item by revenue