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Tools to Perform Equity Research Analysis ??

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70 views

Tools to Perform Equity Research Analysis ??

Uploaded by

Kaustubh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tools to Perform

EQUITY RESEARCH
ANALYSIS
INTRODUCTION
Equity research analysis involves evaluating and
analyzing publicly traded companies to make
investment decisions. The process typically includes
analyzing financial statements, assessing industry
trends, valuing companies, and examining various risks
and opportunities. Here are some tools that are
commonly used by analysts to perform equity
research:
1. FINANCIAL DATA PROVIDERS
These platforms offer a vast array of financial data, which is essential for in-
depth analysis.

Bloomberg Terminal: One of the most comprehensive tools available for


equity research, offering real-time data, financials, news, analytics, and
research reports.
FactSet: Provides financial data, analytics, and software solutions for
investment professionals.
Morningstar Direct: Provides investment research, data, and analytics to
help evaluate stocks, funds, and portfolios.
2. FINANCIAL STATEMENTS ANALYSIS TOOLS
Financial statement analysis is fundamental in equity research. These tools assist
in analyzing balance sheets, income statements, and cash flow statements.

QuickFS: A quick and simple tool for analyzing financial statements over
time, focusing on key metrics and trends.
XBRL (eXtensible Business Reporting Language): An open standard for
financial reporting that can be used to extract data from SEC filings (10-K,
10-Q, etc.) and other sources.
YCharts: Provides detailed financial data, including income statements,
balance sheets, and ratios, with the ability to compare companies and
visualize trends.
3. VALUATION TOOLS
Valuation tools are essential to estimate the fair value of a company and
determine whether a stock is under or overvalued.

GuruFocus: Provides tools for valuation, including discounted cash flow


(DCF) analysis, price-to-earnings (P/E) ratios, and other key metrics.
Stock Rover: Offers customizable screening and analysis tools that help with
valuation metrics and the creation of financial models.
Simply Wall St: Uses visual tools to analyze a company's financials, growth
prospects, and valuations, simplifying complex data into easily digestible
graphics.
4. STOCK SCREENERS
These platforms help investors screen for stocks based on certain criteria such as
valuation, growth, profitability, etc.

Finviz: Offers a comprehensive stock screener with a variety of filters and


charting capabilities.
TradingView: Provides a stock screener with advanced technical and
fundamental filters, plus charting and analysis tools.
Yahoo Finance: Includes a stock screener with various financial and
performance metrics to help find potential equity investments.
5. MACROECONOMIC AND INDUSTRY DATA PROVIDERS

Understanding macroeconomic factors and industry trends is crucial in equity


research.

OECD (Organisation for Economic Co-operation and Development):


Provides economic data and reports on global trends, helping to
understand macroeconomic conditions.
IBISWorld: Delivers industry reports and data, helping analysts assess the
broader industry in which a company operates.
Statista: Offers a wide range of statistical data, including market sizes,
growth forecasts, and industry-specific insights.
6. FINANCIAL MODELING SOFTWARE
These tools allow for building financial models to forecast a company’s
performance.

Excel / Google Sheets: The most commonly used software for building
financial models, DCF valuations, and creating financial reports.
Quantrix: A financial modeling software that allows more advanced and
flexible modeling than traditional spreadsheets.
Trello or Asana: Used to manage equity research projects, track progress,
and collaborate across teams.
7. RESEARCH REPORTS & INVESTMENT INSIGHTS

These tools provide access to reports and insights from industry professionals.

Seeking Alpha: Offers crowdsourced investment research, opinions, and


analysis on stocks, with professional reports and insights.
The Wall Street Journal: A trusted source for news, trends, and insights
relevant to equity research.
Morningstar Research: Provides in-depth analysis of stocks, mutual funds,
and ETFs, as well as insights into industry trends.
8. TECHNICAL ANALYSIS TOOLS
While fundamental analysis is key in equity research, technical analysis can
complement research with charting and trend analysis.

MetaStock: A tool for stock charting, technical analysis, and market


screening.
StockCharts: Provides charting tools and technical indicators for analyzing
stock price trends and patterns.
TradingView: In addition to stock screening, it offers excellent charting tools
for technical analysis and backtesting.
9. ALTERNATIVE DATA PROVIDERS
Alternative data provides insights into a company’s performance and potential
that is not readily available in traditional financial statements.

Quandl: Offers alternative datasets, including data on economic indicators,


commodity prices, and alternative data sources.
Thinknum: Provides alternative data like web traffic, employee sentiment,
and financials from non-traditional sources.
Second Measure: Offers transaction-based data to help track consumer
spending patterns and company performance.
10. INVESTMENT PLATFORMS FOR RESEARCH INTEGRATION

Platforms that integrate multiple data sources and tools, offering a more holistic
approach to equity research.

Refinitiv Eikon: Combines financial data, news, analytics, and other research
tools in one platform.
S&P Capital IQ: A comprehensive platform offering data, analytics,
research, and financial models.
CONCLUSION
By leveraging a combination of these tools, equity research
analysts can gain a comprehensive understanding of
companies, industries, and markets to make informed
investment recommendations.
THANK YOU

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