Finance students from Norway and Denmark are making their final edits on their research case for video technology firm Pexip that they will present to a panel of judges in the local final of CFA Institute Research Challenge.
Competing in teams of three to five, the students conduct an in-depth analysis of a chosen listed company as they assume the role of research analyst and are judged on their ability to value a stock, write a research report, and present their recommendations.
“This experience stands out from our other courses as it provides a refreshing depth of understanding of the subject matter and the finance world. The opportunity to dive deeper into the topics and experience real-life analyst challenges allows for a comprehensive understanding of how various financial concepts operate, setting it apart from conventional coursework,” says Erik Emanuel, one of four students representing Oslo Metropolitan University in the contest.
Students are tested on their analytical, valuation, research, reporting, and presentation skills, and receive hands-on mentoring, and intensive training in financial analysis and professional ethics from the network of CFA Institute member societies.
“Being a team of four students with 3 different ethnicities, the research shows a great will of progressive work where we have all contributed and collectively worked efficiently towards a common goal. During the program, we have learned a great deal from each other, and an understanding of different personalities as well a great team culture has been essential. Each team member brings a unique set of skills, expertise, and perspectives to the table. By recognizing and embracing these differences, we create a collaborative environment where everyone's strengths are utilized to their fullest potential. Super proud of our work so far,“ says Emanuel.
Complex case
This year’s research case is video technology firm Pexip. The company, which is listed on the Oslo Stock Exchange, has seen increased interest from investors over the past few years due to higher adaption and usage of video communication among businesses.
“This year’s research case required analyzing industry metrics, crucial for understanding company performance and market dynamics. Because of the complexity of Pexip’s product and service offerings, we had to apply a creative approach to properly differentiate them and solve the case, “says Andreas Longva Nesset, one of four students representing BI Norwegian Business School.
“This not only enhanced our analytical skills but also our ability to think critically and innovatively about business strategies. Overall, it was a highly valuable learning experience that pushed our boundaries in understanding the nuances of the SaaS industry,” adds Isak Rygg, from Team BI.
The students from BI are all enrolled in the school’s MSc in Finance programme and will be graduating this year.
“The CFA research challenge is unique because it's less predictable, and you work within a wide framework that encourages creativity and learning. Understanding the in-depth details about the case company's products or services might not be part of the BI curriculum, but such knowledge is essential for identifying competitive advantages and trying to assess their value,” says Johan Nicolai Erling Baug Johnsen from Team BI.
Biggest of its kind
The local final will be held at DNB’s headquarter in Bjørvika where a panel of practicing professionals will judge the teams’ presentations and research. In addition to BI and Oslo Met, a team from Norwegian University of Science and Technology (NTNU) and Aalborg University will compete for advancement to the next round of the competition.
“The research challenge has grown to be the world’s biggest of its kind and offers talented finance students a unique opportunity to get a real-life taste of the profession as research analysts. It is also a window to showcase skills companies are looking for when hiring”, says Erlend Fredriksen, President of CFA Society Norway who is hosting the local final together with CFA Society Denmark.
The Chartered Financial Analyst (CFA) Institute Research Challenge has grown from just 91 participants in 2006 to about 6200 students from more than 1000 universities across 100 countries in 2023.
“The CFA Research Challenge facilitates the transition from classroom theories to mastering real-world market dynamics through hands-on experience,” says Kristoffer Rytterager from team BI.
Winners from the local competitions advance to subregional competitions, then on to regional competitions in the Americas, Asia, and Europe, culminating in a global final.
The winning team is chosen based on the thoroughness of its analysis and knowledge of one company, rather than whether their predictions of the stock price are correct.