Forum Search: capital markets
Re: Mervyn enterprise value
Please see reply to the previous post above: Marshall's Cash In short, the A/R would be excess working capital that the Seller can monetize and does not have to go along with the overall sale of the company. In other words, the $1,650 purchase price would have specified a certain level of working... Read More
Please see reply to the previous post above: Marshall's Cash In short, the A/R would be excess working capital that the Seller can monetize and does not have to go along with the overall sale of the company. In other words, the $1,650 purchase price would have specified a certain level of working... Read More
Re: Marshall's Cash
The $25 million of cash on Marshall Field's Balance Sheet is assumed to be required for working capital purposes. The absolute correct and most strictest definition of TEV is less "Excess Cash" in the Net Debt component, not total cash on the Balance Sheet. How do you know this specifically in th... Read More
The $25 million of cash on Marshall Field's Balance Sheet is assumed to be required for working capital purposes. The absolute correct and most strictest definition of TEV is less "Excess Cash" in the Net Debt component, not total cash on the Balance Sheet. How do you know this specifically in th... Read More
Mervyn enterprise value
If we are trying to determine Mervyn's value on the same terms as other retailers, why would we net out A/R when we did not do that for any other deal or trade comp? If Mervyn is valued after the sale of receivables to GE Capital, then the $1,650 million equity value is inappropriate because it is t... Read More
If we are trying to determine Mervyn's value on the same terms as other retailers, why would we net out A/R when we did not do that for any other deal or trade comp? If Mervyn is valued after the sale of receivables to GE Capital, then the $1,650 million equity value is inappropriate because it is t... Read More
Re: Capital Leases(Liab) and Marketable Securities
In what context are you asking what should be done with these two items?
In what context are you asking what should be done with these two items?
Re: Cash
Premium should not included because once private, there is a lack of liquidity discount. In addition, if IPO'ing as an exit, the markets are priced without control premium. What is the point of "cash conversation ratio"? To calculate actual cash generated vs Net Income? For sure, we are skeptical... Read More
Premium should not included because once private, there is a lack of liquidity discount. In addition, if IPO'ing as an exit, the markets are priced without control premium. What is the point of "cash conversation ratio"? To calculate actual cash generated vs Net Income? For sure, we are skeptical... Read More
Re: Cash
1) Regarding taxes - your tax rate utilized in theory represents effective tax rate which already incorporates income tax holiday or other abatements. Conceptually, you got the idea - just make sure your FCFF is pre-capital structure, including taxes - Just pretend there is no debt and model out FCF... Read More
1) Regarding taxes - your tax rate utilized in theory represents effective tax rate which already incorporates income tax holiday or other abatements. Conceptually, you got the idea - just make sure your FCFF is pre-capital structure, including taxes - Just pretend there is no debt and model out FCF... Read More
Re: Cash
Thanks. Got your point on FCFF and agree. But sometimes its not just capital structure affecting the actual tax. as sometimes the operations itself as well like income tax holiday or final tax rule. So getting a "pseudo" tax using EBT * tax rate is far from actual tax. Is FCFF being use that much in... Read More
Thanks. Got your point on FCFF and agree. But sometimes its not just capital structure affecting the actual tax. as sometimes the operations itself as well like income tax holiday or final tax rule. So getting a "pseudo" tax using EBT * tax rate is far from actual tax. Is FCFF being use that much in... Read More
Re: Cash
If the underfunded pension amount is material, then you treat it like debt - that is TEV of your target company stays the same but the equity value component is lower - in other words, the size of the pie stays the same but the slices of the pie are altered. The logic is that you must replenish this... Read More
If the underfunded pension amount is material, then you treat it like debt - that is TEV of your target company stays the same but the equity value component is lower - in other words, the size of the pie stays the same but the slices of the pie are altered. The logic is that you must replenish this... Read More
Re: Cash
Recall our conversation that we adjust for capital structure in valuation at the END of the DCF valuation. FCFE, similar to PE is the root of all evil in valuation. Since the point of FCFF is to calculate pre-capital structure cash flow, we want to make sure that the taxes properly reflect this logi... Read More
Recall our conversation that we adjust for capital structure in valuation at the END of the DCF valuation. FCFE, similar to PE is the root of all evil in valuation. Since the point of FCFF is to calculate pre-capital structure cash flow, we want to make sure that the taxes properly reflect this logi... Read More
My subject company is a private one going to IPO. Let's say I have concluded the industry average P/E and am going to calculate subject company's implied market cap. Is this market cap considered pre-money or post-money? Because if that is a post-money market cap a.k.a. enlarged share capital, the o... My subject company is a private one going to IPO. Let's say I have concluded the industry average P/E and am going to calculate subject company's implied market cap. Is this market cap considered pre-money or post-money? Because if that is a post-money market cap a.k.a. enlarged share capital, the offering size would be a different story from deriving from a pre-money market cap. Read More