The data is reported and aggregated on an annual basis. The best way to think about it is to picture a private deal financial model that's updated using the latest available audited accounts and news.
The data is collected and processed so that for each of the tracked firms in the sample universe, we have:
- Determined the characteristics and attributes of the firm, following the TICCS® taxonomy and the Data Standard.
- Reconstituted the entire financial history of the firm, including balance sheets, cash flow statements, etc.
- Reconstituted the series of relevant events in the firm's life to document any key past development and expected future events.
- Reconstituted the evolution of the financial structure of the firm, such as what debt instruments are on its balance sheet, with which maturity, interest rate etc, at each point in time.
- Built revenue and debt service forecasts out to the known end of the investment's life.
- Established the geographic information (GIS) of the physical asset.
This data is then updated each time a firm reports new financials, or an event occurs that is understood to materially impact its future revenues (e.g. Covid-19 impact on airports).
The images below provide an example of some of the data collected and aggregated for a European toll road company. For each company, several hundred different accounting and financial data items are collected (see Data Standard > Raw Value Types, Attribute Types, Event Types, etc).
Secondary market transaction data plays an important role in the valuation approach used by EDHECinfra. Each reported transaction price is checked by analysts for consistency and validity, including by computing several sanity check ratios (price-to-sales, price-to-earning) and understanding the nature of the transaction to ensure that only genuine secondary market equity prices are used in the estimation of the equity risk premia.
The data collected and updated by EDHECinfra, is validated through a series of regular computer and human checks. Each quarter, any updated financials and forecasts have to be reviewed and approved by two members of the data team other than the primary analyst.
Things to consider
Firms that do not report their detailed financials are automatically excluded from the Sample Universe. In some cases this leads to the exclusion of entire countries from the broad market index (see country-level inclusion rules)
Sample data from EDHECinfra database