SIG

SIG Equity Research

The research side of SIG rather than the trading side. Read a small statement, get the margin and the days right, put a multiple on it, then read a footnote and say what the number does not tell you. 20 items in 30 minutes across three sections, and unlike the trading screens you can move between questions.

Format

• 3 sections · 20 items · about 30 minutes
• No negative marking - answer everything.
• Every sitting is generated fresh - a retake is a new paper.

Sections

• Reading the statements - 7 items, 10 minutes, no negative marking. 7 items in 10 minutes. Margins, growth and compound growth, working capital, days of inventory and receivables, cash flow and cover ratios, read off a small statement.
• Multiples and valuation - 7 items, 10 minutes, no negative marking. 7 items in 10 minutes. Enterprise value, earnings and EBITDA multiples, discounting, cost of capital, returns on capital and unit economics.
• Footnotes and judgement - 6 items, 10 minutes, no negative marking. 6 items in 10 minutes. A footnote changes what the headline number means. Work out the adjusted figure, then say what it does and does not establish.

Outcry is not affiliated with SIG and has no access to their assessment content. This sitting reproduces a publicly reported format; every question is generated by Outcry.