Capital IQ is a powerful platform for financial analysis, offering a range of tools to identify comparable companies. This guide outlines effective strategies for leveraging Capital IQ’s features to conduct peer analysis.
Utilizing Capital IQ’s Search Functionality for Peer Identification
Capital IQ’s robust search capabilities enable efficient identification of comparable companies. Begin by entering keywords related to the target company’s industry, sector, or business description in the search box. Capital IQ’s smart list functionality will suggest relevant criteria as you type, ensuring accurate selection.
For complex searches, utilize Boolean operators like “OR” to broaden the scope. For example, searching for “Software OR Technology” will yield companies classified under either category. This expands the potential pool of comparable companies. Additionally, leverage the Business Description field to identify companies with unique products or services not readily categorized within standard industry classifications. Connecting multiple keywords with “OR” within the Business Description search allows for a more nuanced approach to identifying peers.
Leveraging Pre-built and Custom Screens for Peer Screening
Capital IQ provides a library of pre-built screening templates accessible through the Screening tab, under Idea Generation and All Idea Generation Screens. These screens offer a starting point for peer analysis, allowing for customization by adding or modifying criteria. Keyword search within the screen library facilitates quick identification of relevant templates.
For investment-focused peer analysis, Capital IQ’s Find Buyers or Investors Market Builder, located under Screening > Targeting > Find Buyers or Investors, provides comprehensive tools. This feature enables in-depth analysis of the investment landscape, facilitating identification of potential buyers, investors, and comparable companies based on investment criteria.
Credit Health Panel for Peer Credit Analysis
Capital IQ’s Credit Health Panel, found within the Peer Analysis section of a company’s profile, offers valuable insights into a company’s creditworthiness. This tool allows for direct comparison of credit metrics across multiple companies, enabling efficient evaluation of relative credit risk and identification of peers with similar credit profiles. Utilize this feature to quickly assess the credit quality of potential comparable companies.
Efficient Workflow Management for Peer Analysis
Capital IQ allows users to save and share custom lists and screens, streamlining the peer analysis workflow. Saving frequently used searches and screening criteria ensures easy retrieval for future analysis. Sharing these resources with colleagues fosters collaboration and consistency in peer identification and analysis.
Conclusion
Capital IQ offers a comprehensive suite of tools for identifying and analyzing comparable companies. By effectively utilizing its search functionality, screening capabilities, credit analysis tools, and workflow management features, users can efficiently conduct thorough peer analysis. This facilitates informed decision-making in various financial contexts, including investment analysis, valuation, and credit assessment.
