Forum Search: capital markets
Re: CapitalIQ Shortcuts Override
If you'd like to use the WST Macros keyboard shortcuts while using other add-ins at the same time, we'd recommend disabling their shortcut functionality. You can usually find this in their settings menu. Please see the free guide on our website under About -> Resources -> Technical Resources -> "How... Read More
If you'd like to use the WST Macros keyboard shortcuts while using other add-ins at the same time, we'd recommend disabling their shortcut functionality. You can usually find this in their settings menu. Please see the free guide on our website under About -> Resources -> Technical Resources -> "How... Read More
Re: Historical Cash & Equivalent Reconciliation
Hello, If you have your quarterly IS and BS projections, then the CF should be easy as long as you are using the indirect method of cash flow construction. Recall that the CF starts with NI, adds D&A and changes in working capital, the latter being derived from BS changes quarter to quarter. CapE... Read More
Hello, If you have your quarterly IS and BS projections, then the CF should be easy as long as you are using the indirect method of cash flow construction. Recall that the CF starts with NI, adds D&A and changes in working capital, the latter being derived from BS changes quarter to quarter. CapE... Read More
Re: DCF Correct Time Period inputs
Many thanks for such quick reply. So let me just clarify that the correct way is taking the latest released financials (2018 Q3) to calculate net debt and capitalization figures for the WACC; and for DCF I should discount the 2018 Q4 (the last remaining 2018 project quarter) plus 2019-2022 FCFF plu... Read More
Many thanks for such quick reply. So let me just clarify that the correct way is taking the latest released financials (2018 Q3) to calculate net debt and capitalization figures for the WACC; and for DCF I should discount the 2018 Q4 (the last remaining 2018 project quarter) plus 2019-2022 FCFF plu... Read More
Re: DCF Correct Time Period inputs
Hello there, not a silly question at all! If you have latest financials, in this case through 2018 Q3, we would highly recommend doing a stub period, that is the one remaining quarter of 2018 + four (or five) more full projection years. Then we should definitely use net debt and capitalization fi... Read More
Hello there, not a silly question at all! If you have latest financials, in this case through 2018 Q3, we would highly recommend doing a stub period, that is the one remaining quarter of 2018 + four (or five) more full projection years. Then we should definitely use net debt and capitalization fi... Read More
DCF Correct Time Period inputs
Hi WST, I have a not so smart question, let's say I am making a 5 year projection (2018-2022) for DCF analysis to calculate a company's implied stock price. Now, the company just releases its latest financial statements. So should I use the latest financial figures to calculate, say, net debt, an... Read More
Hi WST, I have a not so smart question, let's say I am making a 5 year projection (2018-2022) for DCF analysis to calculate a company's implied stock price. Now, the company just releases its latest financial statements. So should I use the latest financial figures to calculate, say, net debt, an... Read More
Re: shareholder loan
Thank you! 1. Shareholder loan vs shareholder advances - am I right to say that the loan here is debt vs advances can be equity/debt like you said? Both are a form capital injection but only shareholder advance increases shareholder's equity on the balance sheet vs shareholder loan is treated as ... Read More
Thank you! 1. Shareholder loan vs shareholder advances - am I right to say that the loan here is debt vs advances can be equity/debt like you said? Both are a form capital injection but only shareholder advance increases shareholder's equity on the balance sheet vs shareholder loan is treated as ... Read More
shareholder loan
Hi can you shed light in which case is shareholder reported as debt vs equity (capital contribution) on the balance sheet in GAAP and IFRS? From what I understand it's classified as debt at least under IFRS. I am not as familiar with GAAP. In reference to points 1 and 2 below. 1. https://www.... Read More
Hi can you shed light in which case is shareholder reported as debt vs equity (capital contribution) on the balance sheet in GAAP and IFRS? From what I understand it's classified as debt at least under IFRS. I am not as familiar with GAAP. In reference to points 1 and 2 below. 1. https://www.... Read More
Re: par value
In the context of paid-in capital (stock), par value is an arbitrary number determining a baseline value of each share (typically determined by the company). You can return to about the 5-minute mark in the video for a recap. Also, somewhat similarly, in the context of bonds, par value refers to ... Read More
In the context of paid-in capital (stock), par value is an arbitrary number determining a baseline value of each share (typically determined by the company). You can return to about the 5-minute mark in the video for a recap. Also, somewhat similarly, in the context of bonds, par value refers to ... Read More
Re: No Growth Model and Gordon Growth Model
You're trying to calculate intrinsic value via growth models. So the difference between current price and that future intrinsic value is your capital gains.
You're trying to calculate intrinsic value via growth models. So the difference between current price and that future intrinsic value is your capital gains.
Unlike more traditionally structured companies, banks and insurance carriers do not adhere to the concept of TEV. For example, cash in most businesses is relatively straightforward. But for a bank, cash is both COGS *and* Revenue, in different forms. So the concepts of cash and debt no longer apply ... Unlike more traditionally structured companies, banks and insurance carriers do not adhere to the concept of TEV. For example, cash in most businesses is relatively straightforward. But for a bank, cash is both COGS *and* Revenue, in different forms. So the concepts of cash and debt no longer apply the same way.
We use Equity Value only because debt is considered part of funding operations, opposed to a part of the capital structure.
We cover this much more in-depth in our dedicated "Bank Financial Modeling" and "Insurance Financial Modeling" packages. Specifically, the first "Primer" course in each one discusses the appropriate valuation approaches. Then, as usual, we put this theory into practice with hands-on Excel models.
To learn more, select "Order More" at the top-right of the menu above, and click to reveal the full curriculum for each respective package/course. Read More