Thomson ONE‘s full features are available only with the outdated Internet Explorer (IE) browser. This makes staying up-to-date on the latest browser workarounds critical to accessing this collection of company information, SEC filings, and analyst reports. Continue reading for details regarding this year’s Chromium-based update to Microsoft Edge.Continue reading
Thomson ONE only works with full functionality in Internet Explorer (IE), and within that, it only works properly in versions IE8 and below. For those of you familiar with this resource, this isn’t anything you haven’t heard before. Compatibility issues continue with Thomson ONE in the latest iteration of the Windows browser, Microsoft Edge. As has been the case before, there is a work around which you can find detailed below.
Earnings calls are conference calls or webcasts at which a public company’s management team discusses the company’s financial performance from the previous reporting period (usually a quarter). Participants include investors, financial analysts, and others, including shareholders. Reading transcripts from these earnings calls and listening to audio recordings can be a great way to glean information about a company’s performance and plans for its future directly from the company leaders themselves.
While archival transcripts of calls can be easy to find, audio broadcasts of earnings calls can sometimes be more challenging to find. Often, companies will only make them available for a limited amount of time following the actual earnings call. If you wish to listen to the broadcast, you will need to keep track of when a particular company’s earnings calls are and how long they make their broadcasts available after the call. For example, Apple only makes their broadcasts available for two weeks after the call. While archives of audio recordings will not be as extensive as those for the written transcripts, you can often find at least the recordings for the last call or two for a given company.
The Lippincott Library has a number of resources where you can access these materials.
Many students and potential employees like certifications for Bloomberg or Thomson One. This demonstrates that the student has an understanding of how to use these expensive programs before coming on board. The learning curve for using these products on the job is greatly reduced.
Bloomberg, available at Lippincott Library or Huntman Hall, currently offers two certificates.
Bloomberg Market Concepts (BMC) is a self- paced, 8 hour introduction to finance using 70 Bloomberg terminal functions. This provides a good foundation for undergraduates or people new to finance. It covers four topics: Economic Indicators, Currencies, Fixed Income and Equities. The format is interactive video sessions. There is no cost for this certificate if you use the Library Bloomberg terminals. You can sign up for a web-based session at a discounted price of $149.00.
BESS is also self-paced and is recommended for individuals with more experience in Finance and Bloomberg. Again, there is no cost when using the Library Bloomberg terminals. Sessions are based on written materials.
Once in Bloomberg, just type BMC<GO> or BESS<GO> to get started.
Both classes require that you take quizzes in order to get the certificate.
Thomson One Investment Bank also offers a certificate program. Click here for general information. Once you have viewed the materials for the modules, request a token to take the exam. The exam comprises 30 questions. You have 60 minutes to complete the test. If you don’t pass the first time, you are allowed to take the test a second time. It is encouraged that you use Thomson One while taking the test. This is free to students at Universities which subscribe to Thomson.
Remember that Thomson One only works with IE. Please refer to these postings for further information.
The Lippincott Library has several great resources for finding league tables. However, the majority of these pre-populated league tables are typically geared towards specific geographies and companies rather than industry-specific information. What happens if you would like to look at a league table for a specific industry? You are going to have to construct your own. Fortunately, we have a resource that will enable you to do just that. Continue reading
Valuation is used in business to determine the price participants are willing to pay or receive to buy or sell a business. Needless to say, the seller is looking to make as much profit on the deal as possible while the buyer hopes to pay as little as possible. Various resources can help determine the best price for the transaction. Listed below are some Lippincott Library resources to help students with assignments for a number of Wharton courses including FNCE207/728 – Corporate Valuation (which also has a course guide); FNCE250/750 – Venture Capital & the Finance of Innovation; and FNCE251/751 – Finance of Buyouts & Acquisitions.
You’ll want to search for precedent transactions in the industry of the company you are valuing. Several sources allow you to search for comps by industry (SIC code, NAICS code, or alphabetically by name).
BizComps is a database of business sale statistics which are based on small business sales transaction data. After searching by SIC or NAICS code, you’ll be presented with a list of recent deals. Select those of interest and you can run a “Transaction Analysis,” which will give summary statistics/multiples on the deals you’ve chosen. Ask to be logged in by a librarian at our Reference Desk.
Business Valuations by Industry is a print source available at Lippincott Library Reference Desk (call number HG4028.V3 B78). It includes detailed studies of actual mergers and acquisitions, including deal “tearsheets”. This source is arranged by industry and includes actual transactions from 2007 through 2009. Profiles of buyers are included as well as some some foreign transactions and deal terminations. This is a great resource when you want to profile selected, covered deals.
Beta measure the volatility of an industry or company within the market as a whole. Betas help to calculate the risk of an investment.
For industry betas, use the Ibbotson SBBI Valuation Yearbook, a print guide held at our Reference Desk (call number HG4028.V3 S86).
Company betas are in Bloomberg, available in the Yablon Financial Resources Lab here in Lippincott, or the Forum level of Huntsman Hall. Search for a company of interest and run the Beta function by typing BETA <Go>.
It’s always smart to look to the experts for advice – these sources will give you tips and tricks when performing a valuation for a company within a certain industry.
Business Reference Guide is a print source located at Lippincott Library Reference Desk (HD1393.25 .B87). This source provides several types of information which can be used for pricing businesses and franchises. It is organized by industry and includes industry statistics from IBISWorld, “rules of thumb” by industry analysts, pricing tips, benchmarks, commentary, expenses as a percentage of annual sales and industry costs.
Standard & Poor’s Net Advantage provides industry surveys. One unique feature of this source the section included for every industry on “How to Analyze a Company in this
Industry”. To access this, click on Industries, select the survey of interest. Next scroll to the chapter titled, “How to Analyze a(n) […] Company,” which also contains a section on Equity Valuation as well as a glossary of industry terminology.
To track multiples of a company over time, use the sources listed below. This will help you price out the company itself or help you to compare it against a similar firm.
S&P Capital IQ provides lots of financial data including multiples. MBAs can access CapIQ via MBA Career Management, while Wharton undergraduates can come to the Yablon Financial Resources Lab and ask to be logged in by a librarian. Search for a public company of interest and look for Financials/Valuation in the left menu. You can change the date range to see multiples over time, as well.
Bloomberg is available in the Yablon Financial Resources Lab or the Forum level of Huntsman Hall. Search for a company of interest and run the Financial Analysis function by typing FA <Go>. Look for the Enterprise Value tab.
Past M&A deal tearsheets
You may find it helpful to look for past deals to get a sense of how many deals a company has done in the past, what were the specifics of a deal or how active the M&A market is in a certain industry.
Thomson ONE – note that this resource only loads with full functionality when using Internet Explorer. Once inside, scroll over Screening & Analysis, then Deals & League Tables, then M&A to select either a Quick Search or Advanced Search.
Zephyr – select Zephyr Advanced. Pick the variables to define your search. Below is a screenshot of a list of deals. You can click on any of these to get a detailed summary of the deal.
This post may have additional information – What’s the Deal? Researching Specific M&A Deals
Companies make acquisitions for two primary reasons: (1) to fill a strategic gap (products, resources (people), or capabilities) or (2) enable the company to enter a new market with a new revenue stream. Researching a company’s M&A activity provides insight into the corporate strategy. When researching a specific deal, we are often looking for deal financials and deal valuation. It’s also important to research the strategies behind the deal. We often want information on business drivers, overall strategy, execution plan, implementation, etc.
Let’s take a well-known deal as an example, eBay’s acquisition of Paypal. In 2002, eBay, the largest online auction platform bought, PayPal, a web-based payment service, for $1.5B. The deal was a perfect match – Paypal drove eBay’s revenues while eBay supported the growth of PayPal’s active user base. A decade later, it is evident that both businesses fueled each others growth. So how does one research a specific deal?
Start with Thomson One for deal information including deal financials, news, filings, and research.
Go to Screening & Analysis => Deals & League Tables => M&A => Advanced Search. Continue reading
Students who use Thomson One are already familiar with its quirks. The database only runs properly using Internet Explorer, and works best in older versions (7-9). There is a workaround for IE10, using the compatibility feature, which we discuss in our previous post. For those without Internet Explorer there is another option. The IE Tab extension allows your Chrome or Firefox browser to act like IE, which allows you to access Thomson One using one of those browsers (for Windows only).
Note that we were unable to download analyst reports using the IE Tab extension in Chrome. Other functionality such as exporting data to Excel was successful.
When IE Tab is added to your Chrome browser, it will appear as an icon next to Settings.
To access Thomson One. Search for Thomson One in the FindIt box on the Lippincott Library homepage. Right-click on the link to Thomson One under E-Resources. Hold your cursor over IE Tab Options and select Open in IE Tab.
Log into the database with your PennKey and Password.
The only functionality that the IE Tab extension does not allow is downloading analyst reports. We received an error message every time we tried to download analyst reports, but let us know if you have better results.
For more on accessing Thomson One see:
A League Table is a list of entities such as companies, teams, or individuals, ranked in order of achievement. In business, league tables most often refer to a list of investment banks ranked on the volume or value of such transactions as IPO’s or M&A deals. There are a very large number of combinations of league table variables (e.g. types of issues, country, time periods and currency). Here are descriptions of three financial databases that can help you construct a league table that fits your criteria.
(1) Bloomberg (available in Lippincott Library and Huntsman Hall)
Type LEAG and hit the green GO key.
The screen below is a list of investment banks ranked by amount of U.S. Bonds underwritten in 2013.
There are many customization options. Click on:
- Year (to choose dates from 1999 on)
- Period (to choose year, half year or quarter)
- Select a Market (to choose among markets for Debt, Equity, Structured Notes, and Syndicated Loans). You can also choose “custom markets” which will enable you to create a table based on detailed security, issuance and issuer data
- Related Functions (to choose among league tables for M&A, Legal Advisors, Clean Energy, Muni League, and to create a matrix table)
- View Ranks (to view a five year history and a detailed description of the table criteria)
Bloomberg also has hundreds of pre-formatted league tables with accompanying analysis. For a listing of these, type:
NI LEAG CRL and hit GO. Continue reading
International investing often begins with evaluating the country risk. This process involves looking at the risks associated with the economic, political, and business environments in a specific country. Analyzing these risks can help mitigate unexpected investment losses. Investors doing this are looking for information like:
- The economic growth for the last ten years.
- Forecast of economic growth for the next five to ten years.
- Country debt rating changes for the last 10 years.
There are a number of databases that provide data for this type of research.
BMI Research provides forecasts of economic growth and inflation, as well as historical data. Start by selecting a country of interest. The quarterly Country Forecast Report covers political risk, macroeconomic performance (outlook and forecast), the business operating environment, and more. Within the database, you can also download historical data (GDP, exchange rates, balance of payments, inflation, debt, etc.) by choosing Compare & Export Data under Data & Forecasts on the right-hand side of the screen.
CEIC and Global Financial Data both cover a wide range of international economic indicators. CEIC provides data for Brazil, China, India, Russia, and other countries on a macroeconomic scale. The data comes from the national statistical sources. To find country specific data in Global Financial Data, select GFDatabase, then select the country of interest from the country list to view the datasets available.
You can find macroeconomic reports and forecasts in EMIS for emerging market economies. This database aggregates reports from a variety of sources like Oxford Analytica. To get to the macroeconomic reports, click on the Macroeconomics tab and select Analysis/Research: Economic. Continue reading