Financial Data API – Intrinio Data for Developers

The dawn of the API is officially upon us. This new trend in software engineering and system-to-system interaction is being emphasized by many tech though leaders including Intel CEO Brian Krzanich, but a recent Tech Crunch article put it best:

"It’s called API-first design, and it presents a tremendous opportunity for developers who adapt — not to mention a major risk for developers (and companies) who don’t."

The API-centric focus of many of our tech giants (Apple, Google, Intel, IBM, Oracle, Salesforce, Expedia) and the resulting and familiar household names and products (Apple Watch, virtual reality, literally any app that you use...) are a testament to the power and prevalence of APIs.

Twilio founder James Parton issued a warning over a year ago:

“APIs  are going to be the driver for the digital economy and unless they [companies] are talking about APIs already, they will be left behind.”

Intrinio Splash Image - Financial Data API

The advent of the API has recently started to take shape within the financial data industry. The speed of transactions, availability of information and emergence of high frequency trading has changed the way we invest. Just this week Goldman Sachs announced they will be disseminating their earnings report through twitter, leaving behind more traditional media methods. To compete in today's investment world, we need data faster - and we need it more flexibly.

Enter the Financial Data API.


Large data giants like Bloomberg and Thomson Reuters are typically very restrictive and don't make it easy or affordable for investors or companies to access their APIs. New entrants in the financial data market such as Quandl and Xignite are transforming the landscape by listening to customer needs and delivering a more accessible product at a lower price point.

At Intrinio we built a unique solution to the changing investment and financial data landscape. Beautifully crafted and elegantly simple, our data feed is available through a flexible, straightforward REST API...

and it's the most affordable Financial Data API on the market.


Intrinio Financial Data API - Excel add-in - Metrics & Ratios

The Intrinio Financial Data API enables developers to instantly integrate and build seamless, dynamic systems and applications to digest Intrinio data.

The Intrinio Financial Data API offers affordable, extremely flexible access to a wealth of financial data:

  • Last Stock Price Data: 50,000 Securities
  • Historical Stock Price Data: 8,700 Securities
  • As-Reported Financial Statement Data: 7,000 Securities
  • Standardized Financial Statement Data: 3,500 Securities
  • Basic Company Information
  • Hundreds of Metrics & Ratios
  • Sales, Growth & Earnings Estimates
  • Pricing Data for 16 Indices
  • Economic Data

To get started, visit our main page and register with your email. You'll receive a free 10-day trial and can get started working with our API immediately. Contact us for pricing at any time by clicking the green "Help" button at the bottom of your screen. We'll help create a plan that fits your needs.

The Financial Data API is the framework for the future of investing, and we're here to help you be a part of it.

Let's grow together.


We welcome all comments, suggestions or feedback - so don't be shy. Shoot us a message at any time.

Women in Fintech: Rachel Carpenter’s Intrinio

One of the co-founders of Intrinio, Rachel Carpenter, was recently featured on the Female Entrepreneurs Institute website - a highlight on women in fintech. We've re-posted the article below:
Women in fintech: Rachel Carpenter and her founding team at Intrinio

Women in Fintech: Rachel's Story

Hungry. Humble. Hustling to close the next big deal. Rachel Carpenter, founder of Intrinio, has big plans (she's already signed Harvard Business School). She's interested in disrupting financial valuation and creating efficiencies in how we know where it's best to invest. Here's her take on being a woman entrepreneur in the investment sector!

What inspired you to start Intrinio? Where did you start and where are you now?

Intrinio provides investors, entrepreneurs, and students with disruptively affordable access to high-quality financial data. We’re the only financial data providers available in the cloud and on Mac OS X—our cross-platform compatibility enables our users to flexibly access the data anywhere, anytime, from any device. We’ve also built a transparent, flexible online engine for valuing companies.

During my education as a finance student it was easy to see multiple inefficiencies in the industry—problems that needed to be solved through the use of technology. Just one afternoon spent waiting in line for access to an expensive data feed with a horrible user experience is enough to make you want to build a better solution. My co-founder and I refused to accept the “way it’s always been” in the financial industry.

Almost three years ago we were fresh out of school. We had a massive prototype in Microsoft Excel (40 pages long), no access or control over our own data, and zero funding. We were working through the night (this hasn’t changed much), sleeping on couches, and teaching ourselves web development. Today, my co-founder and I are advanced programmers. We’ve raised substantial funding and our team has grown to 7. We built our prototype into a web application. We also built a proprietary automated backend solution for gathering and standardizing financial data, and we own our entire data set (over 37 million data points). We’ve closed multiple large clients and are growing rapidly. It’s been a long couple of years—but with passion, persistence, and a little bit of patience, things truly start to blossom.

What do you see for your future?

We’re ramping up our marketing towards developers and startups—we’ll be the best source of affordable financial data integrations for other entrepreneurs. This year we’re also going to build our platform out to support private company valuation—then things will get really interesting. We’ll begin gathering some very valuable sentiment data from both public and private company valuations. In the next few years, Intrinio will become the go-to engine for valuing any type of investment opportunity. We’ll grow to be one of the most affordable and valuable data resources in the industry.

What do you see as challenges for you and your business? What are some opportunities?

Intrinio has faced plenty of challenges already, but our team is extremely agile. We’re flexible, yet resilient. One of the largest challenges facing any entrepreneur is fundraising. I think it goes without saying that being a woman sets you back before you even begin the process. Being young doesn’t help either—especially in the South. We’ve been lucky so far to find investors that understand the magnitude and value of what we’re building as well as the tenacity of our team and our ability to execute regardless of our youth. Fintech is a challenging arena to play in. We know the quality of our data surpasses that of traditional data feeds, but that’s difficult to explain to those who are ingrained in the old systems. Data is also becoming more of a commoditized product every day, which is why we have mid- and long-term strategies in place that don’t rely on the revenues generated from this part of our business.

Women in fintech: Rachel Carpenter and her Intrinio co-founder, Joey French

How can we help Intrinio succeed?

We’re on the lookout for any fintech startups or developers building apps who can’t afford inflexible, expensive financial data integrations. We offer disruptively affordable, easy to integrate access that will revolutionize the products that they are building.

We’re hoping to close out the rest of our current funding round within the next couple of months. If anyone knows a fintech investor or fund that would like to hop on board and help us disrupt the changing financial industry—send them my way!

Where did you grow up? And how is where you came from material to your identity as an entrepreneur?

In my personal life, I have a passion for fitness and exercise. I’ve always been extremely competitive. I competed in tennis and soccer growing up, I competed as a Division 1 Rower in college, and most recently I’ve competed in my first NPC bikini bodybuilding competition. My competitive nature has been essential while building Intrinio. I’m from a city in Wisconsin called Oconomowoc. It was a fantastic place to grow up. It had the small-town community but was close to major cities, it was scattered with beautiful lakes and plenty of outdoor places to enjoy the seasons, and it had great schools.

I certainly didn’t have a rough childhood. It was more the societal norms that set me on a different path, as well as the sentiment of my classmates in college. Most of the kids I grew up with ended up following the path you’re “supposed” to take—go to a decent public school, get a solid degree, then get a job working for a large company like Target or Edward Jones that recruits heavily at your school. I assume, to most students, this offers a degree of comfort and certainty heading into the scary land of adult life. For me, it just meant succumbing to the expectations of society and spending your time creating value for someone else rather than for yourself. It didn’t interest me. Growing up amidst this Midwest culture of “head-down, follow-the-rules, get-in-line” certainly influenced my desire to branch out, build, create, and break the rules.

Tell us a story about a success in your business and a mistake you overcame.

We recently closed a deal with Harvard Business School, and we’re officially providing unlimited access to our data feed to all HBS students. It’s exciting exposure for us, and we’re thrilled to know that the next generation of top finance professionals will be using the latest and greatest in financial data and tools. It came as a direct result of hustle—my co-founder and I flew out to Boston to physically meet with the librarian and show her how much value we could provide to the education of HBS students. Of course there are also mistakes. We came really close to partnering with a large data firm way too early in the game. We made it through a month or two of working with them before we realized it was a bad move. We were too young of a company, and we would have had to give away a substantial portion of equity and control to partner with them. We graciously and professionally cut ties with them and went on to build everything we needed ourselves, retaining all of that value and keeping everything in-house.

What picture is on your phone’s home screen?

It’s a picture of me with my family. They’re everything to me, and they’re a huge part of why I’ve been able to take the risks I have. They’ve supported me my entire life and helped me grow into the woman that I am today. They keep me sane and balanced, and I’m forever grateful to them.

What do you love about being an entrepreneur?

Every single day you are learning and embracing the creative freedom that comes with being in control. It only works if you’re an extremely self-motivated person, which is easy for me because I know every single day when I wake up that I’m creating value for myself and my team, and nobody else. Lastly, you’re forced to learn how to fail—hard and fast. Eventually you become so willing to fail that you’re learning more rapidly than ever.

What about your business matters most deeply to you? How does it engage your values?

I believe strongly that there is always a better, faster, more efficient way to do things. I get absolutely peeved by those who are stuck in the past and live under the assumption that they have to accept the way things are.

Intrinio is built on a foundation of automation and efficiency. The residual effect of this is that our resources are more affordable—which means we are able to provide them to the masses on an unprecedented level. Our data and tools are enabling a powerful generation of developers to build game-changing products. Our resources are empowering the next generation of investors to make wiser, more informed investment decisions. Knowing that our solutions are supporting these doers, makers, and game-changers helps fuel my fire. It gives me hope that our generation will continue to break the rules, push the envelope, and build solutions that actually make a difference.

What would you say is your “entrepreneurial superpower?”

You could call me a multitasking, tenacious hustler. I’m uncannily good at handling a multitude of things at once. I perform extremely well under pressure while juggling a hundred responsibilities. I can soak up information, analyze it, recall it, and most importantly act on it with extreme tenacity. I’m great at pulling the strings to simply make things happen when they need to come through. In other words, I hustle. I’m also a people person through and through. I can relate, sympathize, empathize, and get along with just about anyone, and being good at “people” has been integral in getting Intrinio to where it is today.

Which entrepreneur do you admire most right now?

Elon Musk.

Why Elon?

Mostly because he is not following the lean startup mentality. There is so much emphasis and education right now that idolizes and focuses on prioritizing the “lean startup,” but true innovation doesn’t come about by solving problems and looking only at what’s in front of you. It grows in the hearts and minds of fearless entrepreneurs who have a vision for the future and dream of the possibilities most of us can’t even see. Great innovations like Apple products weren’t solving a “problem”—people were happy with their clunky products and terrible user experiences. They couldn’t see a better way until it was put in front of them. In fact, Apple, Facebook, and Google all improved upon products built by startups that were following this mentality and then dominated them. If we think bigger—about not just our industry or economy but about society moving forward as a whole, progress is stalled when we solve only the problems we can see directly in front of us. Elon is unapologetically building things without asking for your permission, creating and affecting change, and for that I admire him.

What’s the best and the worst thing about being an entrepreneur, as a woman?

The worst thing about being a female entrepreneur is not being taken seriously. I’ve actually been asked “do you have a guy that you work with to help you with all of the hard stuff like math?” I can’t even count on both hands the number of “potential investors” who made inappropriate advances. I’ve had my business called a “cute project” dozens of times. I’ve had my clothes criticized. Most people assume I don’t play a technical role in my company. When I’m not taken seriously, it can be the worst kind of frustration. I do my best to shake it off and carry on, but I’d be lying if I said it wasn’t entirely disheartening at times. Choosing to build a business as a woman is not an easy road, but I can assure you that it is worth it. On the bright side, I love the dynamic that I have with my male co-founder. My strengths compliment his weaknesses and vice versa. We bring the best of both worlds to the table, and together we are an unstoppable team.

Do you think male entrepreneurs are “different” from female entrepreneurs?

I wish I could say no. I’ve constantly struggled to be perceived as “one of the guys” and be treated just like every other male founder. But men and women are inherently different, so the way that we build and grow companies is different as well. There are “feminine” traits that give women an entrepreneurial advantage, but we certainly have our disadvantages. We all know that women can multitask and men can’t. We’re intuitive, empathetic and compassionate. We know that men are more dominant and competitive than women. They’re assertive, and they’re natural risk takers. However, this is not a one-size-fits-all answer. I’ve met women who are more direct and commanding than any male founder I’ve known, and I’ve met male founders who are astoundingly soft-spoken and introverted. I’ve seen incredibly emotional male leaders, and I’ve seen women with a scary level of competitiveness. Unfortunately, many of the traits that female entrepreneurs exhibit come as a direct result of the societal pressures, assumptions and norms imposed upon us. Some of us are submissive for fear of being perceived as “bossy.” On the other hand, it’s been proven that men and women can produce the same results and the male is perceived as more effective. This can make us more competitive and aggressive. I’d say we have an edge because most people aren’t expecting what we bring to the table. Hopefully that changes. I plan on being a part of it.

What the best advice you ever got, and from whom?

My dad used to sign every letter or note he left me with two simple words “Hungry & Humble.” It’s left such a lasting impression on me that I had it tattooed on my wrist in his handwriting as a constant reminder. Staying hungry in all aspects of life is so important to me. It drives me forward and ensures that I’m constantly striving to do more and do better. He also taught me the concept of humility. I strive to live my life always assuming I might be wrong—that in every case there might be a better way. I embrace the fact that I don’t know everything. There is always more to learn. I’ll never forget my roots, where I came from, those who are less fortunate than me or those who are far superior. This does not come at the expense of my dreams, my desire to succeed, or my drive and tenacity. The balance of hunger and humility is the recipe for success, and it’s the best advice I’ve ever received.

How can our readers keep up with Intrinio and contact you?

Twitter: @Rachel_Ann_C @intrinio



Fintech’s Biggest Nightmare – Bloomberg’s Fortran

Bloomberg's Codebase Unsurfaced

The fintech community has circled around a recent post (which is actually a re-blog from a 2006 article by John Sullivan) which unearths the fact that Bloomberg, a multi-billion dollar financial software, data and media company - has built their infrastructure with an archaic programming language called Fortran. Fortran would give most fintech firms nightmares.

For those of you unfamiliar with the rise of computing and programming, Fortran is a programming language that was developed in the 1950's by IBM. It's a powerful language for scientific and numeric computation - but this language is 65 years old. As the author notes:

"Apparently, Bloomberg has been trying to make the jump from Fortran to C++ for some time, but the Fortran codebase and the guys that maintain it are too entrenched. Cripes – in the oil industry we made that transition 15 years ago !"

fortran code gives fintech developers nightmares

The Issue With Overhead

Making the jump from one language to another on a platform of that size and significance is certainly not an overnight task. Yet a portion of this "failure to launch" is also due to the inherent inability of large, entrenched data firms and banks to be agile, flexible and innovative.

In the fintech space we like to highlight the concept of overhead in these large firms and how it can be such a hindrance ( think 25 million lines of Fortran). Inefficient overhead creates an opportunity for more responsive firms with less onerous code bases and smarter processes in general, allowing firms to compete through innovation. The very innovations that form the backbone of fintech are designed to create flexible, agile, and efficient processes that leave the concept of "overhead" in the dust.

Fintech - A Better Solution

Take Robinhood for example, who is slicing the overhead out of the brokerage process, or YCharts which squashes charting and analytics overhead.

From payments to portfolio management, and from blockchain to trading - fintech is taking the stage and bringing a competitive, lean edge that large traditional institutions are unable to replicate.  It's no surprise that we see banks such as Santander and Citi incubating young fintech startups and backing them with millions. Based in St. Petersburg, Florida - C1 Bank is ahead of the game developing internal technologies through "C1 Labs".

The team here at Intrinio is tackling overhead within the financial data industry. Our data feed is built on a contemporary framework utilizing modern, scalable technologies. We live and breathe automation at Intrinio, eliminating overhead, and building innovative solutions to age-old processes allows us to bring investors financial data faster, more efficiently, and therefore more affordably than ever before. We're fast, we're efficient, we're streamlined, and we don't use Fortran - we can promise you that.

Valuation snapshot from fintech firm Intrinio

Harvard Business School Partners with Intrinio

Harvard Business School Library Resources Page with Intrinio ListedStarting this fall (2015) Harvard Business School (HBS) professors and students will have free, unlimited access to the Intrinio Data Feed. The Intrinio Data Feed provides students with faster, cheaper, and more flexible access to investment-grade financial data.

Harvard Business School Library Database Resources - Intrinio

Harvard Business School students will become industry leaders...

“We’re extremely pleased to announce that we’re working with Harvard Business School,” says Intrinio Co-Founder and President Joseph French. “We recognize that access to high-quality data is of utmost importance to the educational community. I’ve personally experienced being barred from information during my education due to price hurdles, industry controls and lack of flexibility. These are not issues that the next generation of investors should have to deal with in their pursuit of an education. These students will become industry leaders. We’ve worked hard to ensure that they’ll have the most innovative and efficient resources at their fingertips while they grow.”

“Partnerships with the higher education sector, including Harvard Business School, indicate a growing interest in offering cutting-edge resources to students,” says Intrinio Co-Founder and Vice President Rachel Carpenter. “Our data feed provides them with unparalleled flexibility in their studies. Instead of waiting in line at the library for restricted access to an expensive service, they can access our data feed on their phone or tablet, from their dorm room, from an airplane – anywhere they want, providing a real-time experience. They can share financial models via Google Sheets. Students and professors are all hungry to be on the leading edge of tools and resources. It will be exciting to see the next generation of investors and developers leverage Intrinio’s resources in their work.”

As the first fintech startup to emerge from a budding entrepreneurial scene in Tampa Bay, Intrinio is challenging the traditional approach to finance through a culture of automation and a dedication to flexibility and transparency. Intrinio is introducing these innovations to both Ivy League institutions such as Harvard Business School and local institutions such as University of South Florida (USF).

“Being affordable is not the only way we are transforming a very traditional industry,” says Conor Farley, Director of Business Development at Intrinio. “We’re the only financial data provider available in the cloud. Our customers can use our data feed to build models in Google Sheets, giving them unlimited flexibility in where they access their tools and on what devices. We’re also the only financial data firm offering access and compatibility on Mac OS X, which is particularly useful for students. Unlike other systems, Intrinio is truly cross-platform – this is the future of finance.”

Now offering Financial Data on Over 8,000 Securities

Intrinio has recently expanded its financial data coverage to offer data on over 8,000 securities. New functionality offers a breakdown of common and preferred stock (and other securities) within companies when available.

As the only cross-platform provider of financial data, our users can access investment-grade financial data anywhere, anytime on any device. This means you can work on your models on your tablet on the plane, on your laptop in the office, or on your phone on the subway. Our Data Feed is compatible on Apple, Microsoft and Android devices. Each user has unlimited access to our entire financial database. It's our goal to provide you with the flexibility, affordability and transparency that has been missing in the financial data industry.

The Intrinio financial data feed includes: standardized fundamentals, as-reported fundamentals, historical stock prices, 15-minute delayed stock prices, basic company information, economic data, and over 120 ratios and metrics. 


Users can access our financial data via our API, Excel add-in, or Google Sheets add-on. This is not a data dump.  Utilize any of the easy-to-use formulas outlined in our documentation to flexibly query data into any cell in Excel or Google Sheets. Dynamicly drag data up or down and see it populate. Save and close - your data will be continuously updated.

It's very easy to sign up and instantly access a wealth of financial data. Simply visit, click Register, follow the steps, and you'll have a free 10-day trial to the Intrinio Data Feed. To sign up and find out more about pricing, please click the "Contact for Pricing" button or the green "Help" button in the bottom right hand corner of the website. This will put you in touch with the Intrinio team. We're ready to help!

Tutorial: Valuation Walkthrough

This short tutorial is designed to walk you through each step of valuing a company on the Intrinio Valuation Webapp.

The Valuation platform enables you to scenario test the value of companies under different circumstances. For example, you could run and save three different valuations that show the value of a company as a base case, bearish/downside or bullish/upside.

In this tutorial, we're going to calculate the intrinsic value of Tiffany & Co. (NYSE: TIF) under the scenario of a recession in 2016.

Step 1: Go to and sign in. If you have not already registered, click "Register" in the upper right hand corner and follow the directions.

Step 2: Click on "Valuation" >> "Create a Valuation" in the top header bar.

Step 3: A modal will pop up with two entry spaces. In the first entry box, name your Valuation "Tiffany & Co Recession Scenario". In the second entry box, type TIF. Click "Create".

Step 4. The Valuation will immediately open up, and you'll see your Valuation title at the top, as well as the Intrinsic Value, the most recent stock price, and the Margin of Safety.

The Intrinsic Value represents the inherent worth of a company. It is the present value of all of the future cash flows the company will generate. Typically, it differs from the current stock price. When the Intrinsic Value is lower than the stock price the company is overvalued, and when the Intrinsic Value is higher than the stock price the company is undervalued. The Margin of Safety represents the difference between the intrinsic value of a stock and its market price. In theory, the further a stock's price is below its intrinsic value, the greater the margin of safety against future uncertainty and the greater the stock's resiliency to market downturns. In short - a higher Intrinsic Value and a higher (and positive) Margin of Safety is better.

The Initial Intrinsic Value and Margin of Safety that you see at the top are simply a baseline. They are calculated based off of default assumptions derived from both Wall Street Consensus Data and Mean Reversion calculations. Valuation is as much of an art as it is a science - it requires human input. You'll want to adjust the assumptions used in the model to more accurately reflect the true intrinsic value of TIF during a recession. These initial numbers are simply a starting point.

Step 5: This first page we're on is the Assumptions page. We've boiled the Valuation down to 5 main assumptions that drive the DCF model. 3 Cash Flow assumptions (Revenue Growth, NOPAT Margin and Invested Capital Turnover) in a graphical form, and 2 Cost of Capital assumptions (Credit Spread and Company Specific Risk Premium) with slider bars. You can flexibly adjust all of these values here on the Assumptions page.

First off is the Revenue Growth graph. You'll see the historical data pull in on the left hand side and the default assumptions for future revenue growth populate on the right hand side. Given that TIF is a luxury goods company we will want to drop the Revenue Growth assumptions. Luxury goods companies do not preform well during recessions.

Click on the green dot above the year 2016 and drop it down to -1.64%. Drag 2017 down to -0.05%, drag 2018 down to 1.36%, and don't change 2019. (You can also double click on the dot and manually type it in.) Click the green "Save" button in the upper right hand corner. You'll see the intrinsic value re-calculate at the top.

Step 6: The next assumption is the NOPAT or (Net Operating Profit After Tax) Margin. For a luxury company like TIF, during a recession, we can expect this Margin to collapse as well. Click on the green dot above 2016 and drag it down to 12%. Drag 2017 down to 11%, drag 2018 down to 10%, and drag 2019 down to 10.25%. Click the green "Save" button in the upper right hand corner. You'll see the intrinsic value re-calculate at the top.

Step 7: The last cash flow assumption is Invested Capital Turnover. During a recession, it's typical for a luxury goods company to have stabilized Invested Capital Turnover. The default values here are already fairly stabilized, so let's leave this as it is.

Step 8: The first Cost of Capital assumption is the Credit Spread on the Cost of Debt.

This is an evaluation of the riskiness of the debt. Increasing it adds a premium to the Cost of Debt based on the risk that the company will default on their debt. The Credit Spread is calculated in Basis Points (bps). This is a common unit of measurement for interest rates and other financial percentages. One bps is equal to 1/100th of a percent (0.01% or 0.0001). In other words, a 1% change = 100bps and a 0.01% change - 1bps.

During a recession, debt becomes substantially more risky and more companies default. Let's raise the Credit Spread. Click and drag the green dot up the slider bar to 350 bps. Click the green "Save" button in the upper right hand corner. You'll see the intrinsic value re-calculate at the top.

Step 9: The last assumption is the CSRP (Company Specific Risk Premium). This additional premium has been added to account for company specific risk scenarios as well as any faults in the CAPM model. This is where you can account for any personal knowledge about the company or insights you've gained from research. Some factors to consider when increasing or decreasing this premium include:

  • Company size
  • Access to Capital Markets
  • Breadth of Customer Base
  • Geographic Area
  • Key Executive Dependency
  • Limited Product Line
  • Litigation/Regulatory Risk
  • Industry Volatility

For example, when valuing smaller companies, you'll want to increase the CSRP. The CSRP is a fairly long-term assumption, so it shouldn't be altered too much based on a recession in 2016. However, equity does become more risky during recessions, so let's increase this premium to 1.5%. Click the green "Save" button in the upper right hand corner. You'll see the intrinsic value re-calculate at the top.

And you're done! We've calculated the intrinsic value of TIF in the event of a recession in 2016 to be approximately $22/share and significantly overvalued. TIF would not be a wise investment in this scenario.

The only changes needed to complete a Valuation are on the "Assumptions" page. However, a wealth of additional information is provided within the Valuation. Other tabs such as the "WACC" and "DCF" show you exactly how those calculations are being made and exactly how your assumptions translate into cash flows. We also provide each of the financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) as well as a multitude of Metrics and Ratios. All of this additional information is meant to aid you in adjusting your assumptions to arrive at an Intrinsic Value and make wiser investment decisions.

If you run into issues or have any questions, please feel free to contact us at any time on the Contact Page, or click the green "Help" button in the lower right hand corner of the screen.

Fintech: Replacing Humans or Making Them Better?

If you haven't heard of Fintech in the past few years, you're probably living in a Faraday cage. Fintech companies use technology to disrupt existing financial services. This entrepreneurial industry has sprung from disgruntled financial employees and even large banks themselves, bleeding into an industry that has historically resisted change, technology, and innovation. It encompasses everything from payments to trading, and there is no question that Fintech innovations are stirring up controversy.

It used to cost (at a minimum) between $200 and $500 to execute a trade in the stock market. Today, due to the rise of companies like RobinHood, you can execute a trade for free. Transferring money overseas used to be an arduous and expensive process, taking weeks to execute. Now companies like TransferWise are performing these transactions for up to 10x less than the typical bank. Robo-advisors like Wealthfront are eliminating the need altogether (especially among millennials) for a financial advisor.

It's easy to see why this revolution has some people worried. In many cases, the argument could be made that these companies are eliminating the need for many different financial services jobs and even for existing institutions altogether. But is it the case for all fintech companies? At Intrinio, we believe Fintech has the potential to improve existing businesses rather than eliminating them. Far from eliminating the need for the human touch in financial services, new technologies can increase the impact of these companies and their employees by providing the tools they need to provide value for their clients.

Intrinio's technology operates primarily within the realm of Valuation. We've built an application that automates a large part of the valuation process for publicly traded companies. A user simply enters a ticker, adjusts a few assumptions, and is given the intrinsic value or inherent worth of the company. Any seasoned Valuation professional will tell you that valuing a company is both an art and a science. The science is undeniable, typically relying on a discounted cash flow model (DCF), and the calculation of a weighted average cost of capital (WACC). Although the valuation relies heavily on these methods and calculations, human insight is invaluable to the model. For example, an analyst might know that pharmaceutical companies tend to perform well in recessions (so don't plunge those revenue growth assumptions quite so much) or that the cost of oil has risen substantially (so lower the NOPAT margin assumptions for your valuation of an airline with an unhedged gas position). No matter what, human input is and always will be of paramount importance in valuing companies.

Having come from both financial and technological backgrounds, the team at Intrinio fully understands the value of Fintech for human beings, and this knowledge forms the basis for the design of our platform. We wanted to build a technology that would automate the mindless parts of performing a valuation so that users can spend more time adding value where no machine can. Our Valuation platform doesn't eliminate the need for a human - rather it makes the job of valuing companies easier and increases the quality of analysis.

Intrinio is just one example of the ways in which Fintech is transforming the financial landscape. Not everyone is building technological innovations that enable humans to do their jobs better - some are building technologies that remove the need for human work altogether. But how much should this worry us? Is this a change we should resist? Even the big banks have begun to embrace these new disruptive companies, funding them, incubating them, and even acquiring them.

Peter Thiel, a well-respected entrepreneur, venture capitalist, early investor in Facebook and co-founder of PayPal, has spoken out against resistance to technological change. His discussion focuses mainly on robots, but the parallels are hard to ignore. He claims "It's a problem we would like to have...It would free people up to do far more productive things." The team at Intrinio has built our platform to do just that. We automate the repetitive, manual and mindless parts of gathering financial data and performing a valuation so that the user can spend their time more productively and focus on what matters. Time usually spent manually entering data or ensuring that formulas are calculating correctly can instead be focused on the assumptions driving the model.

While it's inconceivable to directly compare the Fintech revolution to the larger revolutions of the past, it's helpful to take a look back and compare. During the Second Industrial Revolution of the late 1800's innovations such as mass production and production lines significantly increased productivity. It took less people less time to make products because of the steam engine. Jobs were lost, but more were created. Intrinio’s platform allows analysts to produce more valuations in less time. As more of an analyst's time is freed up to focus their attention on details, the quality of their work will improve.

We see today, just as we did with the Industrial Revolution, a resistance to new technologies. Is this Luddism, or simply a concern for the future of human work? We have already begun to observe labor’s reaction to technological displacement. And while some Fintech companies are undoubtedly displacing workers, the argument can be made that they are being placed into more effective positions. At Intrinio, we strive to continue building technological innovations that create more efficient workers, higher quality work, and positive change within the financial industry.

How Intrinio’s Valuation Webapp Helps Value Investors

As value investors, we tend to live in the domain of spreadsheets. Value investing is the strategy of finding stocks that are undervalued relative to their intrinsic value, or inherent worth. The intrinsic value of a stock is the the sum of all cash flows that a company will generate in its perpetual existence, discounted at the weighted expected return of the debt and equity investors in the company. Traditionally, investors have used Microsoft Excel to build complex discounted cash flow (DCF) models to estimate the cash flows generated by the company and a weighted average cost of capital (WACC) model for estimating the weighted expected return for the firm. This practice is one of the primary activities of any financial/investment analyst and there is even a Financial Modeling World Championship to showcase the best of the best at this art.

While there are many reasons to build complex financial models in Excel, the intrinsic value of a company's stock can be calculated much more simplistically using a standardized system. This is what we've created at Intrinio. Our web application brings the flexibility of Excel onto the web without the complexity of a having to manage a spreadsheet filled with calculations or bad data. This makes it very easy for performing scenario testing, value driver analysis, or sensitivity testing. Merging this with an easy-to-use user interface, Valuation is exactly what value investors need to bring their investment analysis to the next level.

Because of the difficulty of managing financial models in Excel, most value investors tend to focus on Valuation ratios, such as the Price-to-Earnings ratio, the Price-to-Book ratio, the Enterprise Value-to-EBITDA ratio, the Enterprise Value-to-Revenue ratio, etc. Comparing these valuation ratios to those of similar companies, industry aggregates, or the S&P 500 aggregate, along with other performance metrics provides an indication of whether a company is over- or under- valued. Valuation ratios are in essence a single period cash flow perpetuity. A Price-to-Earnings ratio can be disaggregated to equal 1 / (Cost of Equity - Long-term Growth Rate) and the intrinsic value equal to next years expected EPS multiples by the calculated Price-to-Earnings multiple.

For example, Apple's cost of equity is 8.66% and has an expected long-term growth rate of 2.47% (1 / (8.66% - 2.47%)) equals a Price-to-Earnings multiple of 15.97x. Based on Zack's EPS Wall Street Consensus Estimate of $8.51 for the current year, the intrinsic value of Apple based on this basic model is $135.90, which is approximately 6% above the price of Apple of $127.39 as of April 6th, 2015.

While this simplistic model is nice for giving an approximate intrinsic value quickly, in many cases a single period perpetuity is not an accurate reflection of the company's strategy and earnings generation. For example, during a recession, a single period perpetuity would likely understate the intrinsic value of the company, given an expected rebound in revenues and margins in the coming years. A company may be making large capital expenditures in the current year, which are expected to generate greater revenues and margins in the future. Therefore, to assess the company's intrinsic value, a focus on cash flow generation based on the current company's strategy, the industry competitive landscape and the macroeconomic environment is much more complex than a simple approximation of the Cost of Equity and the Long-term Growth Rate.

With Intrinio's Valuation Webapp, we allow you to estimate the revenue growth, net operating profit margin after tax, and the invested capital turnover to forecast the free cash flows to the firm for the next five fiscal years. We also allow you to change the spread on the long-term debt to assess the riskiness of the debt and the company specific risk premium to assess the riskiness of the equity above or below that of a modified capital asset pricing model cost of equity. These assumptions combine to create a discounted free cash flow to firm intrinsic value model, which can help you calculate the intrinsic value of any company. Because of how simple it is to use Valuation, you can easily perform scenario testing, such as understanding what Apple is worth if there were a recession in 2016. The flexibility of this web application provides value investors an invaluable tool to make better investment decisions. We have taken the complexity of an Excel valuation model onto the web, while providing a user experience that makes it fun and easy to really understand how and why a company offers a high probability of a good investment opportunity.

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