I just started my first year as an analyst at a boutique (actual boutique, 15 people) in NYC. In their comps analyses they typically just use CapIQ formulas to do the analysis and the only work involves generating the comp set. My intention is to lateral to a better shop after a year, and I want to be sure I have adequate modeling skills. Would it be worth the extra effort to practice hand spreading these comps analyses on my own time? I.E. doing the analysis manually by pulling all the filings and calculating EBITDA, multiples, etc. manually as opposed to using CapIQ formulas to do it all.
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It's better practice to do them by hand but they're not hard and so doing them for no reason at all doesn't seem worthwhile. When you guys are working on a live file you will likely do them manually.... I hope.
Just looking quickly at some old deal folders it doesn't look like they do. You don't think it would be worthwhile to learn how to do it properly?
If you don't love spreading comps by had you don't love banking.
Doing it manually by going through Q's and K's is very educational, but potentially also very time consuming. Since your firm doesn't seem to care, maybe do it a few times by hand for practice or when you have time, and use CIQ when you're pressed for time.
Thank you!
Correct way of doing it is through company filing
Best way to guarantee accuracy is to pull directly from filings.
That said...If you have a list of like of 20 comps, this exercise could take hours. If you right click on a number from CapIQ and hit "audit data" then you can see where it is pulling it from and either check all or spot check for accuracy.
The main area to be concerned about is EBITDA since they make their own adjustments. Again, you can see what numbers they are adjusting with the audit data function but it may not capture everything in the notes of the filings.
Quick ? - Updating Financials for Spreading Comps (Originally Posted: 01/28/2012)
I'm spreading comps for a class. I have 2 quick question regarding interest income.
I'm assuming it's better to break out interest income and interest expense on different lines versus having interest expense on one line just net of interest income. So should interest income go above EBIT or below on the income statement with interest expense? And should it go in Other Income/(Expenses) or should it be its own line item? Just wondering what is often the standard. Thanks monkeys for the help in advance.
Income Statement
Sales Cogs Gross Profit SG&A ?? - Interest Income => Other Income/(Expenses) EBIT ?? - Interest Income => Other Income/(Expenses) Interest Expense EBT
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