Using Thomson Research Worldscope 10-Year Data

  1. Your company or library might subscribe to Thomson Research (which is not exactly the same as the Thomson ONE—Business School Edition). If so, you might choose to use this as your data source. One advantage is that it has the 10-year historical balance sheets, income statements, and statement of cash flows all in one file (while Thomson ONE has them in three separate files). Following are directions for using data from Thomson Research in the valuation model.
  2. After logging in, enter your company’s ticker symbol and click Go.
  3. Select Worldscope 10-K History (10-Year).
  4. This will bring up a screen with the ten-year historical balance sheets, income statements, and statement of cash flows. Select the entire spreadsheet and copy and paste it into another spreadsheet. Save this Excel file.
  5. Look through the financial statements in the Excel file you just saved. Make sure that only numbers (or blank spaces) appear in the financial statement columns. For example, some data sources might put in NA or n/a for data items that are not available. If you data have any non-numeric entries, replace them with zeros. For example, you could highlight the data columns (not including the first column with the labels), and do Edit, Replace. For “Find what:”, you could enter NA. For “Replace with:”, you could enter 0. Then you could click “Replace All.”
  6. Make a copy of the file “Valuation Template (Thomson Research Worldscope 10 year.xls” and give it the name of your company.
  7. Open the valuation template you just copied, and open the Excel file with the financial statements.
  8. Highlight the entire financial statements worksheet, and do Edit, Copy. Put your cursor in cell A1 of the Actual worksheet of the valuation spreadsheet. Do Edit, Paste Special, Values. You must paste values, because the downloaded Excel data may have special web features that may cause the program to crash if you simply paste it into the valuation spreadsheet.
  9. Check the Comprehensive worksheet in the valuation model spreadsheet to make sure that the income sheet and balance sheets “match” up with the actual data. If not, see the file “Tip Sheet” (on the book’s web site) for advice in spotting the mistake.
  10. Check the Condensed worksheet in the valuation model spreadsheet to make sure that the balance sheets balance. If not, see the file “Tip Sheet” (on the book’s web site) for advice in spotting the mistake. Note: the Condensed net income, total assets, and total liabilities & equity may not match up with the Comprehensive worksheet, but this is not an error, as long as the Condensed balance sheets balance. Some of the adjustments made in condensing the Comprehensive statements are made to conform to economic logic and not necessarily accounting rules. See Chapters 9 and 10 and their appendices for details. Also, see the files “Ch 09 Appendix Explanation of Condensed Sheet.doc” and “Ch 09 Mapping Comprehensive to Condensed.doc” for more details.
  11. Now you are ready to analyze the historical situation, choose inputs, and find your estimated intrinsic value for the company.