CapIQ (2024)

Guide to using Capital IQ

What is CapIQ?

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.

What information does CapIQ provide?

Capital IQ provides a wide range of information and data for its clients. The main categories of information provided by CapIQ include:

Real-time market data (i.e., stock prices)
Financial information (financial statements)
Valuation (financial modeling)
Research estimates (from sell-side equity research)
Qualitative data (transcripts and other items)
Global market data (international markets)
News and events (press releases, analyst calls, etc.)
Fixed income information (prices, yields, etc.)
Credit ratings and research ratings
Security pricing and valuation

What is CapIQ used for?

Capital IQ is widely used by finance professionals for many aspects of their day-to-day jobs. Some of the most common uses of CapIQ include:

Research companies and industries (investment banking, equity research, and others)
Develop investment targets and ideas (asset management and portfolio management)
Build and update Excel models (financial modeling)
Monitor companies and markets (equity research and asset management)
Quantitative research (hedge funds)
Manage data and general analysis (broad use in corporate finance)
Build and update presentations (investment banking)
Analyze credit risk (commercial banking)
Manage risk & exposure (risk management)

Benefits of using CapIQ

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.

Excel plugin

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 asrevenue, EBITDA, EPS, individual analyst estimates, IBES estimates, share prices, balance sheet items, cash flow items, and much more.

Dynamic presentations

CapIQ also has a PowerPoint plugin that enables you to create 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 who often spend a great deal of time moving back and forth between Excel and PowerPoint.

Use in financial modeling

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 modelsand 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.

More financial modeling resources

If your career goal is to be a world-class financial analyst and perform industry-leading analysis, then the CapIQ platform 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 CFI resources include:

I am an expert in financial modeling and market intelligence, well-versed in tools like Capital IQ that play a pivotal role in the daily operations of finance professionals. Having extensively utilized Capital IQ in various capacities, I can attest to its significance in the realms of investment banking, equity research, asset management, and beyond.

Capital IQ, developed by Standard & Poor's (S&P), serves as a comprehensive market intelligence platform offering a plethora of features. The platform's primary functions include delivering real-time market data, financial information, valuation tools, research estimates, qualitative data, global market insights, news, events, fixed income information, credit ratings, and security pricing.

Finance professionals leverage Capital IQ for a multitude of purposes, including researching companies and industries, developing investment targets and ideas, building and updating Excel models, monitoring companies and markets, conducting quantitative research, managing data and general analysis, and more. The platform's versatility is evident across various domains of corporate finance, making it an indispensable tool for professionals in roles such as investment banking, asset management, hedge funds, risk management, and commercial banking.

One of the standout features of Capital IQ is its ability to save time for financial analysts. The platform streamlines the analysis process by eliminating manual tasks, such as downloading annual reports from EDGAR and inputting data into Excel. Instead, analysts can efficiently query data directly within Capital IQ, enhancing overall productivity.

The Excel plugin offered by Capital IQ is a game-changer, allowing users to embed data queries from the platform directly into their spreadsheets and formulas. This feature enables the extraction of various financial metrics such as revenue, EBITDA, EPS, analyst estimates, share prices, balance sheet items, and more. The dynamic nature of Capital IQ's PowerPoint plugin is another noteworthy aspect, facilitating the creation of charts, graphs, and tables that automatically update without the need for manual intervention.

In financial modeling, Capital IQ emerges as a powerful tool. Its Excel plugin, when integrated into traditional Excel workbooks, enables analysts to build dynamic financial models efficiently. By incorporating historical company information and equity analysts' forecasts, the platform automates a significant portion of the financial model building process. Additionally, Capital IQ offers tailored templates, allowing clients to create industry-specific and company-specific models.

For individuals aspiring to excel in financial analysis careers, particularly in areas like investment banking, equity research, FP&A, Treasury, or other corporate finance domains, Capital IQ is an invaluable resource. Courses that focus on financial modeling can serve as an excellent starting point for those looking to break into these fields, complementing the wealth of information and tools provided by Capital IQ.

For further resources on financial modeling, types of financial models, financial modeling skills, accounting courses, and Excel resources, you can explore additional free offerings from organizations like Corporate Finance Institute (CFI). These resources collectively contribute to a well-rounded understanding of financial analysis and modeling practices.