Which steps in the equity research process do you cover?
We cover the following steps:
- Analysis of market context and market trends
- Target discovery
- Peergroup discovery
- Ranking of targets and peer groups
- Target profiling
- Monitoring of targets, peer groups and markets
Which benefits do I get from using your service?
Do you believe that technology can replace the intuition and expertise of the seasoned investor? We don't. This is why we provide our solution to augment and enhance investors' expertise, thus empowering them to make better investment decisions. The benefits are two-fold:
- Automation benefit: by automating your equity research, you will save costs and achieve a more objective, consistent result. In less time - of course.
- Qualitative benefit: by working with Big Data, our algorithms read "between the lines" and distill the DNA that underlies the public image of a company. Not a single data point is missed - at the end, you get a holistic and nuanced picture of your targets. Information on crucial intangible value drivers, such as sustainability and innovation, allows you to get ahead of your competitors who mostly focus on structured data.
Why are intangible assets so important in your framework?
Indeed, intangible assets such as sustainability, innovation and digitalisation are our sweet spot. On the one hand, they are becoming absolutely central to company valuation - a recent study on the S&P 500 index
found that 84% of the assets in the index are intangible. To put it simply - intangibles are the future in our increasingly digital world. On the other hand, intangibles are mostly qualitative - and, thus, are best analysed qualitative, unstructured data, which achieve a much larger coverage when compared to artificial evaluation criteria.
How can I access your insights?
You have multiple options to access our technology and insights: APIs, personalised dashboards, individual reports as well as an extremely social chatbot. Beyond your information requirements, the choice will be dictated mainly by frequency of use and your overarching research process.
Get in touch with us to receive individual advice on the optimal choice for you and your organisation!
Which data sources do you use?
Equintel's technology uses a variety of online data sources with a focus on unstructured text data. We collect the following types of data:
- Business and financial press, e.g. bloomberg, morningstar, marketbeat, Financial Times, insight sections of large think tanks etc.
- General press, e.g. cnn, theguardian, bbc, sciencedaily etc.
- Industry-specific press, e.g. for pharma: : medicalnewstoday, pharmadive, fiercebiotech; mobility: eetimes, just-auto, eenewsautomotive etc.
For a better, understanding, please download our sample of the 100 most representative web sources here
. Additional sources, such as social media, patents and structured databases, can be integrated on-premise. We are happy to advise our clients on the ideal data mix for their individual research goals and questions.
How often is the data updated?
By default, our Web data sources are updated every hour. It is possible to specify shorter time intervals.
How do you work with external, paid data sources, such as CapitalIQ and FactSet?
External data sources can be included on a project basis. There are two options: clients can provide their existing access, or we factor in the commercial access fee into the cost of the project.
You are talking about Big Data. Can you also analyse smaller companies? What is the minimum amount of data required for a representative analysis?
We have a "hard" threshold and only analyse companies for which we have more than 100 datapoints in the last year. Many smaller companies - especially digital startups - are actively publicised and fulfill this criterion. Please also note that our pre-sales process always includes a free data check where we can answer your questions based on our data.
Each industry has its own specifics and value drivers. Do you account for these - if yes, how?
We differentiate between industries on two levels: on the one hand, industries differ with respect to relevant data sources. On the other hand, each industry requires an individual knowledge base containing the relevant concepts, products and companies. Equintel uses an algorithm that allows to automatically identify and classify this knowledge from our data. Thus, our clients always work with analyses that are based on the latest state of the industry.
How do you build your scores for intangible value drivers, such as ESG, innovation and digital assets?
We use a custom configuration of embeddings of words, senses and sentences as the underlying algorithm. This customisation forces our algorithm to focus on relations between companies and the relevant intangible topics. By constructing high-dimensional spaces, embeddings embrace the full semantic richness of text data and include all concepts that are related to a specific topic in the output. For example, if we are analysing the intangible "Governance", embeddings will automatically take into account related associations such as "Corruption", "Compliance", "Executive pay" etc. You can find more details on embeddings in this article