Equity Research Note Template Guide
An equity research note provides a structured analysis of a public company, including financial performance, valuation, catalysts, and an investment recommendation.
Structure of an Equity Research Note
A standard equity research note follows a proven structure: investment thesis, company overview, financial analysis, valuation, catalysts and risks, and recommendation. The entire note should be 3–6 pages for initial coverage or 1–2 pages for update notes.
Key Sections
Investment Thesis
A 2–3 sentence summary of why this stock is attractive (or not). Be specific: "We initiate coverage with an Overweight rating and $145 price target, based on accelerating SaaS revenue growth (35% YoY), improving unit economics, and an under-appreciated AI product pipeline."
Financial Model Summary
Include a condensed P&L showing revenue, EBITDA, and EPS for the trailing two years, current year estimate, and two forward years. Highlight where your estimates differ from consensus and explain why.
Valuation
Use multiple valuation methodologies (DCF, comparable companies, precedent transactions) and present a range. Explain your chosen primary methodology and the assumptions driving it. Show the sensitivity to key variables.
Catalysts and Risks
List specific upcoming events that could move the stock (earnings, product launches, regulatory decisions) with expected dates. For risks, focus on the 2–3 most material threats and quantify downside scenarios.
Best Practices
Use data tables and charts to convey information efficiently. Every claim should be sourced. Update notes should reference the original thesis and note what has changed. Always include a clear price target and investment horizon.