This module is part of the 2027 curriculum. You are following the 2026 curriculum, where it is not taught in this form. Switch if you are sitting the exam under the 2027 curriculum.
Lesson 1 of 7 · 11 min
Company research reports and the analysis framework
A research report turns company and industry analysis into a forecast, a valuation and a recommendation; an initiation report explains the company from scratch, while later reports only update what has changed.
In short
- Analysts value securities with financial statement models: forecast statements that express the analyst's evidence-based view of the future, not a puzzle with one right answer.
- The framework has three blocks: company analysis: past and present → industry and competitive analysis → company analysis: forecasting.
- An initial (initiation) report is long and written for readers who do not yet know the company: business model, industry, competitive position, financial model, valuation, ESG and risks.
- A subsequent report is shorter and written for readers who already know the company: what is new, how forecasts and valuation changed, and updated risks.
- Every report carries a recommendation with a target price and a discussion of risks. Structure, content and tone depend on the analyst's setting.
Unlock this lesson free for 7 days
Create a free account to get 7 days of full access — every lesson, video, flashcard, mock and the question bank. No card needed.