Skip to learning content

IBBC CAPITAL ACADEMY / 2027

Research reports that can be challenged

Independent IBBC Capital draft content for self-study. Not affiliated with or endorsed by CFA Institute. New lessons await subject-matter review. No CFA designation or official PSM credit is awarded.

Learning goals

  • Explain evidence and thesis using mechanisms and limitations.
  • Explain valuation communication using mechanisms and limitations.
  • Explain risks and integrity using mechanisms and limitations.

Draft · approximately 25 minutes, excluding further revision.

Evidence and thesis

A research report should state the investment thesis, horizon and conclusion so readers can connect a recommendation to underlying business assumptions.

Separate observed facts, management guidance and analyst forecasts; identify material sources and limitations so readers can judge reliability.

Valuation communication

Explain the valuation method, cash-flow drivers and discount assumptions rather than presenting a target price without a bridge from economics to value.

Provide scenarios and downside risks that could invalidate the thesis, including liquidity and financing risks where relevant; a disclaimer does not replace analysis.

Risks and integrity

Disclose material conflicts and compensation arrangements prominently and in understandable language; a technically correct model can still be communicated misleadingly.

Update a recommendation when material new information changes its basis and retain an appropriate research record; consistency does not mean refusing to change a view.

Formula and assumptions

Scenario return=(target price−current price+distribution)/current price

Original applied case: Research reports that can be challenged

  1. A report estimates value 66, current price 60 and expected dividend 1 over one year, before fees.
  2. Indicated total return=(66−60+1)/60=11.6667%.
  3. This is an analyst scenario, not a promised outcome; document what would change the estimate.

Errors to catch

  • Do not assume: A target price alone is a complete research thesis.
  • Do not assume: Management guidance is the same as a verified fact.
  • Do not assume: Valuation assumptions should remain undisclosed.

Original knowledge check

Answer every question before checking. Review explanations after submitting; retry starts a new attempt.

Sources and coverage status

These original lessons are drafts. Public outlines are used to check scope; the official learning-outcome text and proprietary question banks are not reproduced here. Follow the source for exam-year requirements and updates.