Learn / Valuing public equities Go to Overview 1. Which multiple, and why 2. The earnings model, line by line, Pro 3. ROIC, growth, and the multiple, Pro 4. Sector lenses: banks, REITs, software, energy, Pro 5. Sum of the parts and the holding company discount, Pro 6. Cyclicals and normalized earnings, Pro 7. Capital allocation math, Pro Flashcards, 0 of 14 reviewed Basic quiz Advanced quiz Terms Valuing public equities
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0 of 14 cards The valuation a buy side analyst does every day: the right multiple for the business, an earnings model built from the filings, what ROIC and growth are worth, sector lenses, sum of the parts, cyclicals, and the math of buybacks and deals.
B Basic4 lessons 1 Which multiple, and why Every multiple is a shortcut for a cash flow. Pick the one whose denominator is closest to the cash the business really produces, and use it the same way across peers. 8 min 2 The earnings model, line by line A hedge fund model is built to answer one question: where will earnings land against consensus? Build it from the filings, drive it with a few KPIs, and know which line moves EPS most. 10 min 3 ROIC, growth, and the multiple Growth is worth something only when each dollar reinvested earns more than it costs. One formula ties return on capital, growth, and the multiple together. 9 min 4 Sector lenses: banks, REITs, software, energy Some sectors break the usual tools. Know the one metric each uses instead and why. 9 min Q Basic quiz 10 questions, 80% passes