Comparing Companies with Relative Valuation & Graphing


Hi in this Bloomberg video tutorial we
are going to show you how to compare company financials using the Bloomberg
terminal specifically looking at relative valuation and graph
fundamentals. After logging on to the Bloomberg terminal select your company.
We will once again be using Amazon. Then either type into the search bar relative
valuation or type the shortcut RV Relative valuation compares the size of
your specific company and its competition as well as those company’s
performance in regards to stock price and other measurables. Once this
information displays there are many options to look through. Towards the top
of the screen we see the listings of the different types of industries associated
with your selected company. There should also be a space that lets you know the
geographic region of the company. Getting more in-depth into the information we
will look at Amazon’s profitability by selecting the comp sheets tab and then
selecting the profitability tab here. You can look at how your company’s sales
growth, income growth, and profit margins compare to others within the same
industry. For example the Bloomberg terminal shows eBay and Netflix as the
primary competitors of Amazon. Navigating between these tabs will allow you to
compare important statistics and help to formulate a prediction for the company’s
performance going forward. Next staying within the selected company we will once
again navigate using the search bar to find graph fundamentals or type the
shortcut GF. Once GF is displayed you will see a chart that has a graph of the
five-year revenue and earnings per share If you would like to continue comparing
companies add securities by using the company’s competitors ticker symbols or
look for them in RV comps. Once you have the companies you would like to compare
look at the fields column and choose the data points that you wish to highlight.
Among the options are revenue and EPS You can browse other options by clicking
fields. When these are selected the variables will then be visible in the
key stat side of the graph. You can change the panels shown in the graphing
function to a single panel, panel per field, or panel per security.
Panel per field is probably the best one to use. If you find viable information
the best way to save it is by going to the top of your screen to this icon and
selecting grab. The Bloomberg terminal will then prompt you for your email and
send the screen grab to you as an attachment like this. This method can be
used to save in relative valuation and graph fundamentals. To learn more check
out our other Bloomberg terminal videos or ask a staff member at the Park
Library

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