Financial Modeling

Re: Modeling ADR shares

If the company has ADRs, they most definitely have a 20F filing (equivalent to a 10K) and thus, all the financials are provided in USD, with currency translations already done for the financial statements.

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by WST Expert 1.

added 11 years ago

Re: Modeling ADR shares

I am trying to model GOL, a brazilian airline, but the 20F numbers are in $BRLs (Reals). Once I come up with a price target using DCF, how do i translate that back into dollars? Do I simply use the spot price for today? Also, how does the price of an ADR connect with the stock price of the company i... Read More

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by Guest 1.

added 11 years ago

Re: Modeling ADR shares

You can build your entire model in BRL or local currency, which we'd actually recommend. Then once you come up with your DCF price target (in local currency), you would simply translate that into USD at today's exchange rate, spot price is fine. Keep in mind, this is ok because you are building you... Read More

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by WST Expert 1.

added 11 years ago

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