Equity Research Model Update
Update financial models with new quarterly earnings, guidance changes, or revised assumptions and recalculate valuations.
After every earnings release, your model needs updating — plugging in actuals, revising forward estimates, and recalculating price targets is tedious but critical work that determines whether your recommendation still holds.
Who it's for: equity research analysts, financial analysts, portfolio managers, buy-side analysts, sell-side associates
Example
"Update my Nike model with Q3 earnings" → Updated model with actuals vs. estimates comparison, revised forward estimates with old-vs-new table, recalculated price target, and summary of whether the thesis changed
New here? 3-minute setup guide → | Already set up? Copy the template below.
# Model Update
Update financial models with new data — quarterly earnings, management guidance, macro changes, or revised assumptions. Adjusts estimates, recalculates valuation, and flags material changes.
## Workflow
### Step 1: Identify What Changed
Determine the update trigger:
- **Earnings release**: New quarterly actuals to plug in
- **Guidance change**: Company updated forward outlook
- **Estimate revision**: Analyst changing assumptions based on new data
- **Macro update**: Interest rates, FX, commodity prices changed
- **Event-driven**: M&A, restructuring, new product, management change
### Step 2: Plug New Data
#### After Earnings
Update the model with reported actuals:
| Line Item | Prior Estimate | Actual | Delta | Notes |
|-----------|---------------|--------|-------|-------|
| Revenue | | | | |
| Gross Margin | | | | |
| Operating Expenses | | | | |
| EBITDA | | | | |
| EPS | | | | |
| [Key metric 1] | | | | |
| [Key metric 2] | | | | |
**Segment Detail** (if applicable):
- Update each segment's revenue and margin
- Note any segment mix shifts
**Balance Sheet / Cash Flow Updates**:
- Cash and debt balances
- Share count (buybacks, dilution)
- Capex actual vs. estimate
- Working capital changes
### Step 3: Revise Forward Estimates
Based on the new data, adjust forward estimates:
| | Old FY Est | New FY Est | Change | Old Next FY | New Next FY | Change |
|---|-----------|-----------|--------|------------|------------|--------|
| Revenue | | | | | | |
| EBITDA | | | | | | |
| EPS | | | | | | |
**Key Assumption Changes:**
- What assumptions are you changing and why?
- Revenue growth rate: old -> new (reason)
- Margin assumption: old -> new (reason)
- Any new items (restructuring charges, one-time gains, etc.)
### Step 4: Valuation Impact
Recalculate valuation with updated estimates:
| Valuation Method | Prior | Updated | Change |
|-----------------|-------|---------|--------|
| DCF fair value | | | |
| P/E (NTM EPS x target multiple) | | | |
| EV/EBITDA (NTM EBITDA x target multiple) | | | |
| **Price Target** | | | |
### Step 5: Summary & Action
**Estimate Change Summary:**
- One paragraph: what changed, why, and what it means for the stock
- Is this a thesis-changing event or noise?
**Rating / Price Target:**
- Maintain or change rating?
- New price target (if changed) with methodology
- Upside/downside to current price
### Step 6: Output
- Updated Excel model (if user provides the existing model)
- Estimate change summary (markdown or Word)
- Updated price target derivation
## Important Notes
- Always reconcile your estimates to the company's reported figures before projecting forward
- Note any non-recurring items and whether your estimates are GAAP or adjusted
- Track your estimate revision history — it shows your analytical progression
- If the quarter was noisy, separate signal from noise in your estimate changes
- Check consensus after updating — how do your revised estimates compare to the Street?
- Share count matters — dilution from stock comp, converts, or buybacks can materially affect EPS
What This Does
Updates financial models with new data — quarterly earnings actuals, management guidance, macro changes, or revised assumptions. Plugs in reported figures, adjusts forward estimates, recalculates valuation, and flags whether changes are thesis-altering or noise.
Quick Start
Step 1: Create a Project Folder
Place your existing financial model and the downloaded template in the same folder.
Step 2: Download the Template
Click Download above, then move the file into your project folder as CLAUDE.md.
Step 3: Start Working
"Update my model with Tesla Q3 earnings"
"Plug in Apple's new guidance numbers"
"Revise estimates for Microsoft after the Azure growth data"
"Refresh my macro assumptions for rate-sensitive names"
Update Triggers
- Earnings release: New quarterly actuals to plug in
- Guidance change: Company updated forward outlook
- Estimate revision: Changing assumptions based on new data
- Macro update: Interest rates, FX, commodity prices changed
- Event-driven: M&A, restructuring, new product, management change
Best Practices
- Always reconcile estimates to reported figures before projecting forward
- Note whether estimates are GAAP or adjusted and flag non-recurring items
- Track your estimate revision history — it shows analytical progression
- Separate signal from noise when quarters are messy
- Check consensus after updating to see how your revised estimates compare to the Street