DEFINITION of 'Institutional Brokers' Estimate System - IBES'

Institutional Brokers' Estimate System (IBES) is a database that gathers and compiles the different estimates made by stock analysts on the future earnings for the majority of U.S. publicly traded companies.

BREAKING DOWN 'Institutional Brokers' Estimate System - IBES'

The IBES is a central location whereby investors are able to research the different analyst estimates for any given stock without necessarily searching for each individual analyst.

The IBES database is maintained by Thomson Reuters and was first compiled in 1976. The system draws upon analyst estimates for more than 230 different types of measures for companies across multiple industries. These measures include, but are not limited to, revenue, earnings per share, price targets, net debt, enterprise value, and net income.

The database can present summaries as well as more detailed estimates gathered from analysts and brokers from major international brokerages as well as local, individual analysts.

Why IBES is Relevant to Investment Decisions

Estimates for an ever-growing number of companies are covered by IBES. The database includes recommendations from the analysts on whether to buy, hold, or sell shares in a public company. The database contains estimates data on annual periods, fiscal quarters, and other timeframes where a company’s performance can be measured and anticipated. The intent of IBES is to provide a concise centralized system for users of the database to access as a tool to make decisions and predictions about a security. The collection of data allows for a broader consensus estimate rather than a narrow judgement drawn from a small set of opinions on a given stock.

IBES can be used a variety of ways to research investment opportunities. Forecast models for earnings per share results, for instance, may be created using IBES as a benchmark.  The database might be used in accounting research. There are also distinct databases based on IBES that are offered by Thomson Reuters. For example, IBES guidance data and earnings estimates are available to academics through the Wharton School of the University of Pennsylvania to review and evaluate the expectations for companies. The IBES history database can be used to compare and test investment theories. Other business schools might also offer their academics access to IBES to help them assess companies’ prospects and actual historical performance.

There are other types of databases that might be used for comparable needs. The Center for Research on Security Prices has developed databases for stock prices—including daily and monthly market information, research and historical data, along with data for academic uses.

  1. Distributed Ledger Technology

    Distributed Ledger Technology, more commonly known as the blockchain ...
  2. Intermarket Surveillance Information ...

    A publicly-accessible electronic database in which securities ...
  3. Consensus Estimate

    A consensus estimate is a figure based on the combined estimates ...
  4. National Registration Database ...

    The National Registration Database (NRD) is an electronic Canadian ...
  5. DUNS Number

    A data universal numbering system (DUNS) number is a nine-digit ...
  6. Big Data

    Big data refers to the growth in the volume of structured and ...
Related Articles
  1. Personal Finance

    Buy Stock With Insiders: How To Track Insider Buying

    Insider buying can be a sign that a company's stock prices will soon rise. Here's how to keep track of insider buying on public databases and websites.
  2. Investing

    Oracle Unveils Its Latest Cloud Solution

    To hear Oracle (NYSE: ORCL) co-founder and CTO Larry Ellison describe it, his company is already a cloud leader. However, though last quarter's $1.1 billion in combined  cloud-related sales ...
  3. Investing

    The 3 Largest US-traded Australia ETFs

    Australia’s appeal as an investment destination for prospective investors is incessant. ETFs are undoubtedly an interesting investment option to consider.
  4. Investing

    How Oracle Remains A Relatively Unknown Software Giant

    Among the world's largest corporations by market cap, few companies are as unfamiliar to the everyday consumer as Redwood City, Calif.-based Oracle Corp. How is the world's second-largest software ...
  5. Tech

    Oracle Claims to Offer Database System at Half Amazon's Price

    Oracle’s chairman takes aim at Amazon, claiming that the company’s new autonomous database technology will be cheaper and better than Redshift.
  6. Managing Wealth

    Top-Paying Contract Positions

    A number of contract positions pay more than their salaried counterparts.
  7. Investing

    Top Tools for ERP Enterprise Resource Planning

    Top tools used in Enterprise Resource Planning with its characteristics - Explaining the main tools companies use when using Enterprise Resource Planning appraoch
  8. Investing

    Strategies For Quarterly Earnings Season

    Breeze through consensus estimates like the biggest Wall Street forecasters.
  9. Investing

    Find Hidden Stock Gems That Analysts Ignore

    Just because it doesn't get a lot of coverage, doesn't mean a company isn't a great find.
  10. Investing

    What You Need To Know About Financial Analysts

    Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for.
  1. Where can I find fiscal year data for publicly traded corporations?

    Access fiscal year data for publicly traded corporations that is required by the government to be readily available to the ... Read Answer >>
  2. How does a merger affect the customer?

    Learn how a merger may affect customers of the industry. The effects of mergers may be positive or negative, but there's ... Read Answer >>
  3. Do home appraisers use Zillow?

    When it comes to assessing a home for sale, licensed appraisers rely on detailed —and sometimes proprietary—information to ... Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center