What are the questions that you are researching with data?
What do investors look at when evaluating a company to determine if it’s a good company to invest in or acquire some or all of it. To examine how a company’s value is determined in the stock market.
What are the issues in collecting data?
We’re collecting forecast data. We’re getting what investors are predicting it to be, and going into why they think that and the different elements included: growth in profits; how the company will grow its earnings in the future, returns; the amount it’s getting after it recoups its production costs, risk, and the difficulties associated with operating the business. The data that is being collected is:
Price of share
Total number of shares
What are the issues in cleaning the data?
The only issue with cleaning the data is making sure it’s correct because much of it is dependent on calculations based on other data. Most of the data is not just a list, but is formulated based on adding, dividing, subtracting, or multiplying different data points.
What are the issues in understanding the data?
The data, for the layman, can be a bit tricky to understand. In particular, the idea of a multiple. For example, with multiples you can’t just share absolute share prices of companies to look at value. You can’t look at Apple’s share price which might be $108, for example, and look at Kellog’s share price which might be $73, and think that the company is a better investment because Apple is more expensive to buy than Kellog. One reason is that Kellog has a much lower risk of investment than Apple. Apple is perceived to be very risky by investors because technology changes. It’s easy to see this when looking at Nokia and Blackberry, and see that a company which is very profitable can also easily be wiped out because of the high risk nature of changing technology. What the iPhone did to Nokia and Blackberry can also happen to the iPhone, and that is why Apple is so much cheaper to buy than Kellog.
So, there are some ideas that require some deeper explaining.
What kind of data visualizations can help portray this?
Graphs, visual images, etc.
It might also help to compare certain financial concepts by comparing them with other common ideas such as real estate, gasoline, etc.; things that people already can somewhat understand. This will require a variety of visualizations.
Please provide possible vis sketches and/or notes from exchanges with community partner.
Sketches to explain the idea of the value of a share in a company and a multiple.