Guide to using Capital IQ
Guide to using Capital IQ
CapIQ (short for Capital IQ) is a market intelligence platform designed by Standard & Poor’s (S&P). The platform is widely used in many areas of corporate finance, including investment banking, equity research, asset management and more.
The Capital IQ platform provides research, data, and analysis on private and public companies to help finance professionals perform an analysis. This analysis may support transactions such as mergers and acquisitions, as well we investment recommendations, such as those made by equity research.
CapIQ is used extensively in financial modeling.
Capital IQ provides a wide range of information and data for its clients. The main categories provided by CapIQ include:
Capital IQ is broadly used by finance professionals for many aspects of their day to day jobs. Some of the most common uses of CapIQ include:
Capital IQ can save you lots of time. As a financial analyst, it’s critical to get an analysis done as efficiently as possible, and time is of the essence. Instead of manually downloading an annual report, 10-K, or 10-Q from EDGAR and then manually inputting that information into Excel, it can be much faster to query the data in CapIQ.
Capital IQ has an Excel plugin that allows you to embed data queries from their database directly into your spreadsheets and formulas. You can pull information such as: revenue, EBITDA, EPS, individual analyst estimates, IBES estimates, share prices, balance sheet items, cash flow items, and much more.
CapIQ also has a PowerPoint plugin which enables you to have charts, graphs, and tables that automatically update without having to copy and paste each time you need to refresh or change information. This can be a huge time saver for financial analysts how often spend a great deal of time moving back and forth between Excel and Power Point.
Capital IQ is a powerful tool for financial modeling professionals. By incorporating CapIQ’s Excel Plugin with a traditional Excel workbook, analysts can create much more dynamic financial models, and build them faster. By incorporating historical company information, combined with equity analysts’ forecasts, it can automate a large part of the financial model building process. CapIQ also offers bespoke templates for the clients, where they can create industry specific and company specific models for them.
If your career goal is to be a world-class financial analyst and perform industry-leading analysis the CapIQ will likely become a part of your daily life.
If you’re looking to break into a career in investment banking, equity research, FP&A, Treasury, or other areas of corporate finance then our financial modeling courses are a great place to start.
Additional free resources include: