Forum Search: capital markets
Re: A quick question about TEV
Yes, this is covered in our Basic Financial Modeling class when we first introduced DCF. In a nutshell, in the long-run, for a slow growth, mature, stable cash cow, CapEx and Depreciation offset each other over time. If using perpetuity growth method for terminal value, this concept should apply (e... Read More
Yes, this is covered in our Basic Financial Modeling class when we first introduced DCF. In a nutshell, in the long-run, for a slow growth, mature, stable cash cow, CapEx and Depreciation offset each other over time. If using perpetuity growth method for terminal value, this concept should apply (e... Read More
Cash Flow Projection / Capital Structure Change Modeling
which would be the best package for modeling out cash flow projections based on capital structure changes? After completing the advanced modeling module, I know I can just input new tranches of debt with assumed interest rates and flow that to come up with free cash flow projections...but wondering... Read More
which would be the best package for modeling out cash flow projections based on capital structure changes? After completing the advanced modeling module, I know I can just input new tranches of debt with assumed interest rates and flow that to come up with free cash flow projections...but wondering... Read More
Re: Employee Stock Purchase Plan
If the employees have purchased the stock, then yes, the shares would have been issued and as such, are part of Basic Shares Outstanding. Sometimes, firms issue "Restricted Shares" which are part of Diluted Shares Outstanding. If uncertain, your best bet is to view the EPS footnote that ... Read More
If the employees have purchased the stock, then yes, the shares would have been issued and as such, are part of Basic Shares Outstanding. Sometimes, firms issue "Restricted Shares" which are part of Diluted Shares Outstanding. If uncertain, your best bet is to view the EPS footnote that ... Read More
Re: Cash Flow Projection / Capital Structure Change Modeling
The best course would be our Advanced LBO Modeling that contains numerous tranches of debt and is specifically built to handle capital structure changes. Our Distressed model is focused on fulcrum securities and as such, focused on recoveries. The first part of our distressed model does incorporate... Read More
The best course would be our Advanced LBO Modeling that contains numerous tranches of debt and is specifically built to handle capital structure changes. Our Distressed model is focused on fulcrum securities and as such, focused on recoveries. The first part of our distressed model does incorporate... Read More
Re: Ev calc? Inlcude postretirement liab's and pension liab's?
Comps are relevant because you have to see the treatment across board. If all comps have the same problem then you have to go with what the market is treating everyone else at. Short answer: do not include liabilities when calc'ing TEV from stock price Slightly longer answer: when buying the compa... Read More
Comps are relevant because you have to see the treatment across board. If all comps have the same problem then you have to go with what the market is treating everyone else at. Short answer: do not include liabilities when calc'ing TEV from stock price Slightly longer answer: when buying the compa... Read More
Re: Minority Interest To the CF
Yes, we made an assumption that the MI was paid out in cash to the minority interest shareholders. If you would like to alter that assumption and say that the MI was NOT paid out in cash, then you would do the following to make sure you balance: on the BS: increase MI account by the amount of MI not... Read More
Yes, we made an assumption that the MI was paid out in cash to the minority interest shareholders. If you would like to alter that assumption and say that the MI was NOT paid out in cash, then you would do the following to make sure you balance: on the BS: increase MI account by the amount of MI not... Read More
net debt and debt to total cpaital
Is the following the correct approach to calculate the following ratios?
Net Debt to Total Capital --> Net Debt/ SE + Net Debt
Debt to Total Capital --> Debt /SE+Total Debt
Is the following the correct approach to calculate the following ratios?
Net Debt to Total Capital --> Net Debt/ SE + Net Debt
Debt to Total Capital --> Debt /SE+Total Debt
Re: net debt and debt to total cpaital
Net Debt to Total Capital is a mis-matched ratio. It should be Net Debt to Net Capital. References to Equity are Shareholders Equity (Book Value) in the context of credit ratios. Definitions: Total Debt / Total Capital = Debt + (Debt + Equity) Net Debt / Net Capital = Net Debt / (Net Debt + Equity)... Read More
Net Debt to Total Capital is a mis-matched ratio. It should be Net Debt to Net Capital. References to Equity are Shareholders Equity (Book Value) in the context of credit ratios. Definitions: Total Debt / Total Capital = Debt + (Debt + Equity) Net Debt / Net Capital = Net Debt / (Net Debt + Equity)... Read More
Re: taxes
The figures from the tax schedule, primarily the CHANGE in DTA and DTL would actually update the BS line items as appropriate. (Beginning balance + the change). Then, under CFO (below D&A, above working capital items), you calculate the change in DTA and DTL from the BS (similar to the working ... Read More
The figures from the tax schedule, primarily the CHANGE in DTA and DTL would actually update the BS line items as appropriate. (Beginning balance + the change). Then, under CFO (below D&A, above working capital items), you calculate the change in DTA and DTL from the BS (similar to the working ... Read More
Very astute observation! Yes, you are 100% correct. To go even further, the CIP portion also needs to have capitalized interest to make thoroughly accurate. However, for most companies, this is an immaterial number. Real estate development and REITS, this becomes significant and as such, we need to ... Very astute observation! Yes, you are 100% correct. To go even further, the CIP portion also needs to have capitalized interest to make thoroughly accurate.
However, for most companies, this is an immaterial number. Real estate development and REITS, this becomes significant and as such, we need to calculate the allocation of CapEx to CIP and then build in a lag time for the CIP to become "live" (Development Completed) which then, as you noted, starts to be depreciated. Read More