Many boutique valuation firms use DealStats as their main source of transaction analysis. However, for members that deal with larger clients or even public company clients, FactSet may be more useful compared to DealStats. Some of the situations where FactSet may be more useful compared to DealStats are:
- Public company analysis: FactSet provides comprehensive data on public companies, including real-time and historical financial information, which is crucial for valuation practitioners analyzing public firms or using public company comparables.
- Broader financial market data: FactSet offers a wide range of financial market data beyond just transaction comparables, including equity, fixed income, and economic data, which can be valuable for broader market analysis and valuation context.
- Real-time information: FactSet provides real-time market data and news, which can be essential for valuation practitioners working on time-sensitive projects or needing up-to-the-minute information.
- Customizable Excel integration: FactSet’s Excel plugin is noted to be more robust than some competitors, offering productivity-enhancing tools like custom Excel formatting macros and PowerPoint presentation macros. This can be particularly useful for valuation practitioners who rely heavily on Excel for their analysis.
- Buy-side focus: FactSet’s client base is heavily skewed towards buy-side clients (84.1% of revenue), suggesting it may have more specialized tools and data relevant to buy-side valuation work.
- Comprehensive financial modeling: FactSet’s integrated data and software solutions can streamline research, trading, and risk management processes, which may be beneficial for complex valuation scenarios requiring multiple data inputs.
- Global market coverage: FactSet likely offers more extensive global market coverage compared to DealStats, which can be crucial for valuation practitioners working on international projects or cross-border valuations.
How Much Does FactSet Cost?
- The starting price for a basic FactSet subscription is around $4,000-$6,000 per year.
- For the full FactSetproduct, the cost is approximately $12,000 per year
- However, FactSet offers a la carte pricing, which means costs can increase significantly based on additional features and tools selected. Some users report that costs can surge to around $50,000 per user per year for more comprehensive packages
- The minimum price reported for FactSet software is $4,200, while the maximum price is $155,850, based on internal transaction data from Vendr. The average cost for FactSet software is approximately $45,000 annually
- FactSet’s pricing is generally considered more flexible and cost-effective compared to some competitors like Bloomberg, which has a fixed price of around $24,000-$27,000 per year
It’s important to note that exact pricing can vary based on specific needs, company size, and negotiated terms. FactSet’s a la carte model allows for customization, but it also means that costs can escalate quickly as more features are added. For the most accurate and up-to-date pricing information, it’s best to contact FactSet directly or work with a sales representative to get a quote tailored to your specific requirements.
It’s important to note that exact pricing can vary based on specific needs, company size, and negotiated terms. FactSet’s a la carte model allows for customization, but it also means that costs can escalate quickly as more features are added. For the most accurate and up-to-date pricing information, it’s best to contact FactSet directly or work with a sales representative to get a quote tailored to your specific requirements.
How does FactSet’s Pricing Compare to Other Financial Data Providers?
Bloomberg:
- The cost of a Bloomberg Terminal is $27,660 per year for one license
- Price drops to $24,240 per terminal per year for two or more terminals
Refinitiv Eikon:
- Costs $22,000 per year for the full version
- A stripped-down version can cost as little as $3,600 per year
Capital IQ:
- Pricing is not publicly disclosed and is based on a tier system tailored to specific customer needs
Koyfin:
- Offers a free plan with basic features
- Paid plans start at a much lower price point compared to FactSet and Bloomberg
Key comparisons:
- FactSet is generally more cost-effective than Bloomberg, which has a fixed price of around $24,000-$27,000 per year
- FactSet’s pricing is more flexible than Bloomberg’s, allowing users to customize their package based on needed features
- FactSet’s starting price ($12,000/year) is lower than Bloomberg ($27,660/year) and Refinitiv Eikon ($22,000/year) for full versions
- Newer platforms like Koyfin offer significantly lower pricing options, including free plans, making them more accessible to individual investors and smaller firms
- Capital IQ’s pricing is not transparent, making direct comparisons difficult, but it’s generally considered competitive with FactSet
Overall, FactSet positions itself as a more flexible and potentially more cost-effective option compared to Bloomberg and Refinitiv Eikon, while still being a premium product compared to newer, more affordable alternatives like Koyfin.
