Key Takeaways
- Aggregates global analyst earnings forecasts.
- Provides consensus and individual analyst data.
- Covers 40,000+ companies across 70 markets.
- Data updated up to five times daily.
What is Institutional Brokers' Estimate System (IBES)?
The Institutional Brokers' Estimate System (IBES) is a comprehensive database that aggregates financial analysts' forecasts on earnings estimates, revenue, and other key metrics for publicly traded companies worldwide. It serves as an essential resource for investors and researchers looking to understand consensus expectations and historical financial trends.
IBES covers over 40,000 companies across 70 markets, offering detailed and summary data updated multiple times daily to provide timely insights for financial analysis.
Key Characteristics
IBES is known for its broad coverage and standardized data, making it a trusted source for analysts and portfolio managers. Key features include:
- Extensive Coverage: Data from thousands of analysts on companies including Apple, Microsoft, and Amazon, ensuring wide market representation.
- Multiple Metrics: Includes earnings per share (EPS), revenue projections, and other financial metrics aligned with GAAP standards.
- Consensus and Detail Data: Provides both aggregate consensus estimates and individual analyst forecasts for granular analysis.
- Quality Control: Rigorous validation processes maintain high accuracy exceeding 99.9% in data reliability.
- Standardized Recommendations: Analysts' ratings are converted to a uniform 1-5 scale for easier comparison and aggregation.
How It Works
IBES collects earnings and financial estimates submitted by brokerage firms and independent analysts, then standardizes and validates these forecasts to create a unified consensus. You receive data updated up to five times daily, allowing near real-time tracking of analyst sentiment and revisions.
The system also enables users to analyze historical trends by providing detailed daily records of analyst revisions alongside summary consensus figures. This makes it easier to identify patterns such as earnings surprises or shifts in market expectations, which is valuable for investment decision-making.
Examples and Use Cases
IBES data supports a variety of investment and research applications. Some practical examples include:
- Tech Sector Analysis: Reviewing consensus earnings forecasts for Microsoft to gauge market sentiment before earnings releases.
- Banking Insights: Tracking recommendation changes and earnings estimates for JPMorgan Chase to inform portfolio allocation.
- Retail Performance: Comparing revenue and EPS projections for Amazon against company guidance to evaluate growth prospects.
- Backtesting Strategies: Using historical IBES data to analyze how stocks that beat consensus earnings perform, validating quantitative models based on discounted cash flow assumptions.
Important Considerations
While IBES offers extensive and reliable consensus data, it's important to consider that analyst forecasts are inherently forward-looking and subject to revision. Always complement IBES insights with fundamental analysis and risk assessment.
Access to IBES data may require subscription through financial platforms, so evaluate whether its depth and update frequency justify your investment research needs.
Final Words
IBES offers a robust consensus view of analyst forecasts critical for informed investment decisions. Review its data regularly to align your portfolio with evolving market expectations and identify potential opportunities or risks.
Frequently Asked Questions
IBES is a comprehensive database that aggregates financial analysts' forecasts on earnings, revenue, and other key metrics for publicly traded companies worldwide. It helps investors, portfolio managers, and researchers understand consensus expectations and historical trends.
IBES is owned by the London Stock Exchange Group (LSEG), formerly Refinitiv and Thomson Reuters. The data is accessible through platforms like WRDS and covers over 40,000 companies across 70 global markets.
IBES offers both summary consensus data and detailed analyst-by-analyst forecasts, including earnings per share (EPS), revenue projections, EBITDA, cash flows, operating margins, dividends, price targets, and company guidance. It also includes standardized buy/hold/sell recommendations.
IBES updates its data up to five times daily, ensuring that users have access to the most current analyst forecasts and revisions for accurate investment decision-making.
IBES employs rigorous quality control measures, including automated checks for standard deviation, revision frequency, and percentage changes. Monthly audits ensure data accuracy exceeds 99.9%, and only comparable estimates are averaged for consistent consensus figures.
IBES has historical earnings per share (EPS) data for U.S. companies starting from 1976 and international companies from 1987, offering over 30 years of history for deep analysis.
Yes, IBES provides aggregated data that allows top-down analysis by industry, sector, index, country, or region, helping users evaluate trends and make informed investment decisions across different markets.
IBES standardizes analyst recommendations on a 1 to 5 scale, where 1 means Strong Buy and 5 means Sell. This mapping allows for the calculation of arithmetic mean consensus ratings from various contributor scales.
