Building an Independent Equity Research Report on TBO Teck
Built a full equity research report on TBO Tech from scratch, including DCF, ratio analysis, and scenario modeling, and invested personal capital on the basis of it
Uday Arora
Analyst at Alvarez & Marsal
From their time as
Equity Research Analyst
Profit Idea • 2023 - 2023
Overview
In his third year of college, Uday decided to build a full equity research report on TBO Tech, a B2B travel technology company, entirely on his own initiative. The goal was to learn the craft of equity research by doing it, not by reading about it.
The Story
In his third year of college, Uday decided to build a full equity research report on TBO Tech, a B2B travel technology company, entirely on his own initiative. The goal was to learn the craft of equity research by doing it, not by reading about it.
His entry thesis was that recently listed companies might be undervalued given the state of the market at the time. He chose TBO Tech as a test case and built a comprehensive financial model covering DCF analysis, ratio analysis, relative valuation, sensitivity analysis, and scenario analysis.
The process was iterative. He made errors, sought input from seniors and batchmates, and revised his work until the model held up. The final output was a ten-slide deck and a full financial model with a clear investment recommendation: the company was undervalued and represented a sound investment at the current price.
He backed his own conclusion. He invested a portion of his personal savings into TBO Tech on the basis of the report, treating it as a live test of his own analytical judgment.