Hi, I’ve been working in ER for only a few months, so forgive me if this sounds like a silly question. I have a template of an integrated financial model (balance sheet, income statement, cashflow, segment breakdown). The model has data from 2005 to 2013. When you guys start coverage on a new company, how do you populate the model? Obviously you can do it manually, by just getting all the historical data from Edgar, but this could take all day to do for a single company. Do you guys use any sort of excel plug-ins that poulate the data automatically? I’ve only been using Bloomberg for a few weeks, so I am not very familiar with it all, but I know Bloomberg has an add-in to get all sorts of data, just not sure if there’s a way to basically download finacial statemnt data into excel. Also, we don’t have Capital IQ, only Bloomberg and Thompson, is CapitalIQ a service most ER shops/buy-side shops subscribe to? Another question, what is the usual ratio of Analysts per Bloomberg Terminal in a company (I’m asking because we have a fairly large number of analysts for 1 terminal, so it can be difficult to get access). Basically I live on SEC.gov and that doesn’t seem like the most effective way to get data. Thanks for your help guys.
Capital IQ is more commonly used in banking and private equity because it’s more transaction-oriented; it doesn’t have as much tracking of trading valuations compared to FactSet. I didn’t have Capital IQ in equity research, but did have FactSet. When I worked in sell-side research, I just populated the numbers manually. It definitely took longer but I think if you’re efficient, you can probably put in all the historicals in a few hours. The benefit is that you can see for yourself any reorganization of line items, one-time events, footnotes, and so forth. Just plug in to your favorite radio or music station and let the hardcoding rip…you’ll be done quicker than you think.
Great question actually. I build my own from scratch using data from 10-Ks, 10-Qs, and press releases. Sometimes it takes all day. Sometimes it takes several days. But I learn something new each time. The process has helped me develop a deeper understanding of the drivers of a particular business, inspired questions to ask management and helped me put together a cogent investment thesis when communicating with colleagues and clients. Oftentimes it has helped me understand where questions are coming from during conference calls. I find I can better understand sell side models too and/or identify mistakes in my own. I’ve also found that some providers scrub the data in some less than satisfactory fashion. And, more than once have I come across fields that simply weren’t populated correctly. I’m interested in reading feedback on your second question re: number of terminals.
Bloomberg terminals are expensive, I think we only had 2-3 terminals per floor, but this was before the recession hit.
Both CapIQ and Bloomberg will make you model populate automatically for you, just call/email your sales rep and they will take care of it.
higgmond Wrote: ------------------------------------------------------- > Both CapIQ and Bloomberg will make you model > populate automatically for you, just call/email > your sales rep and they will take care of it. If you don’t even feel like entering formual in each cell, just send it over to your sales rep or help desk and they will do it for you. Or you can install an excel add-in from CapitalIQ website, download some templates and modify.