F*ck historical comps

got a ton of them to do and its not even for precedents...

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Comments (15)

Jan 26, 2007

send that shit to india!

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Jan 26, 2007

Enlighten us newbies - what are precedents and historical comps?

Jan 26, 2007

Seriously I love staffing Mumbai.

Jan 26, 2007

I love CapIQ...ever since I switched to PE...no more comps by hand. most bankers make you read through the financials for adj. = painful.

Jan 26, 2007
  • What exactly is CapIQ?
  • Why doesn't my employer have it?
  • Why the fuck do market leading PEs ask for comps if as your post suggests you can get them through CapIQ?

I think this thread is about to really piss me off!

But by all means, keep the comments and answers coming.

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Jan 26, 2007
EuroMonkey:

- What exactly is CapIQ?

That was fucking hillarious. Thanks for the good laugh.

Jan 26, 2007

When a PE, just for fun, says "give me the sales, EBITDA, EBIT, P/E multiples for 50 comparable companies over the past 10 years on a monthly basis". Of course they don't want multiples based on actual financials but broker forecasts which were published in the past. Objective being of course to spot the trends beyond 1 industry cycle.

We have databases for these figures but it's not just about downloading them. Ideally you want to readjust the crap output you get based on:
- How long the results were published after they actually occured (ie sales for year ending 31 Dec will be published 3/4 months later, and the brokers publish their revised forecasts a few days after that)
- Random significant mistakes the database makes (eg. multiplying buy 10 some EBITDA figures for no reason or forgetting data all together)
- Exceptionals (eg a random one-off charge to a company)
- The accounting standards (ie in Europe may not be able to compare numbers published in 2000 with those from 2005 if the company switched from UK GAAP to IFRS accounting standards)
- When the company either made a large disposed or acquisition since brokers don't all reflect these changes at the same time in their publications

This probably doesn't mean anything if you haven't done it before.

Basically you end up with sometimes well over 50Mb of data (in several spreadsheets because excel can't cope with all of that at once) which you've readjusted in all sorts of ways based on some kind of dodgy logic. Fascinating stuff.

The output is a few graphs which don't mean much because the source data is incomplete (hey, not all comps were quoted and well covered by brokers over the last 10yrs) and inaccurate, and may not be used anyway.

I think this confused and longish response gives you a vague idea of how frustrating this shit is, and that I happen to have been through the process...

Bottom line answers a question that has been floating around on this forum: don't be the bitch (IB), be the master (PE)

Jan 26, 2007

Oh, god CapitalIQ is one of the best inventions out there, along with TheMarkets.com. I love it.

Jan 26, 2007

FactSet bitches =FDSC(.....

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Jan 26, 2007

i need an intern

Jan 26, 2007

Yeah, luckily I don't do much of this stuff directly anymore. Got used to fighting for a special taskforce of interns.

Jan 26, 2007

yea capiq is sick

Jan 26, 2007

FactSet is great, except when it's wrong. CapIQ is also great, except when it sucks. Unfortunately, no one has yet created a database that is the equal of an intelligent analyst scouring 10-Ks with a highlighter pen.

So sad. I got a stack of them a foot high on my desk.

Jan 26, 2007

Got the email..."hold off on the comps"

Gonna be BALLIN tonight.

Jan 26, 2007