Forum Search: capital markets
Total Debt
Why is there a total debt cell ($34,778) but then when we calculate the total debt/total capitalization, and the total debt/EBITDA the numerator is total debt + preferred stock + minority interest?
Why is there a total debt cell ($34,778) but then when we calculate the total debt/total capitalization, and the total debt/EBITDA the numerator is total debt + preferred stock + minority interest?
Re: IPO Valuation
In your context, the DCF value (TEV) would be post-money if your projections and cash flows include the effect of the IPO proceeds. Therefore, indeed it would e post-money valuation. Correct, the cash proceeds from the IPO would NOT be considered in this context, because the IPO cash proceeds would ... Read More
In your context, the DCF value (TEV) would be post-money if your projections and cash flows include the effect of the IPO proceeds. Therefore, indeed it would e post-money valuation. Correct, the cash proceeds from the IPO would NOT be considered in this context, because the IPO cash proceeds would ... Read More
IPO Valuation
I am trying to value a company for an IPO (proceeds strictly used for expansion, not for the existing shareholders to exit), using DCF (on the FCFF). I have done financial forecast on the company, taking into account the improved performance after it receives new capital from the IPO. After I deriv... Read More
I am trying to value a company for an IPO (proceeds strictly used for expansion, not for the existing shareholders to exit), using DCF (on the FCFF). I have done financial forecast on the company, taking into account the improved performance after it receives new capital from the IPO. After I deriv... Read More
An alternative needed to a multi-select drop-down list
I am in search of a way to convert multiple selections in a drop-down list into a single field with the selections separated by a semicolon. Background: I need to get contact data into a specific format that is importable into a particular on-line software app. I was contemplating having a user-f... Read More
I am in search of a way to convert multiple selections in a drop-down list into a single field with the selections separated by a semicolon. Background: I need to get contact data into a specific format that is importable into a particular on-line software app. I was contemplating having a user-f... Read More
Re: Minority Interest
We are always trying to get value of COMMON equity, hence we want to remove all forms of capital other than equity. The only reason why MI shareholders participate in the ownership of assets on the BS as well as earnings on the IS is because of consolidation rules (no proportionate consolidation. M... Read More
We are always trying to get value of COMMON equity, hence we want to remove all forms of capital other than equity. The only reason why MI shareholders participate in the ownership of assets on the BS as well as earnings on the IS is because of consolidation rules (no proportionate consolidation. M... Read More
Five questions (merger premiums, capex, leveraged beta, etc.)
1. Do merger of equals usually have premiums paid close to zero? 2. Page 41, to calculate Unlevered Free Cash Flow, it is used net capital expenditure, but to calculate Unlevered Free Cash Flow in the Hilb, Rogal & Hamilton case, it is used capital expenditure instead. Why? 3. When do you use... Read More
1. Do merger of equals usually have premiums paid close to zero? 2. Page 41, to calculate Unlevered Free Cash Flow, it is used net capital expenditure, but to calculate Unlevered Free Cash Flow in the Hilb, Rogal & Hamilton case, it is used capital expenditure instead. Why? 3. When do you use... Read More
Re: DCF Analysis: Using Tax-Effected EBIT as Perpetuity in the Perpetuity Growth Method (PGM) to calculate Terminal Value
Hello Peter, This is covered in one of the packages that you did not purchase, specifically Package 2, under Basic Financial Modeling, which is the very first spot that we cover DCF Modeling if one were starting from our more basic courses. The short explanation is that in order for perpetuity... Read More
Hello Peter, This is covered in one of the packages that you did not purchase, specifically Package 2, under Basic Financial Modeling, which is the very first spot that we cover DCF Modeling if one were starting from our more basic courses. The short explanation is that in order for perpetuity... Read More
Re: Illustrative Valuation Summary Section
Since we are building a dynamic model that works for standalone (status quo, no deal) and for LBO (and later for recap), the projected figures in column D will update as you change your deal scenario. In particular, Net Income will change as your interest changes when you add on debt in the capital ... Read More
Since we are building a dynamic model that works for standalone (status quo, no deal) and for LBO (and later for recap), the projected figures in column D will update as you change your deal scenario. In particular, Net Income will change as your interest changes when you add on debt in the capital ... Read More
Re: BS line item treatment for determining TEV
Restricted cash, whether for covenants or LOC or escrow, etc would be treated as part of the required minimum cash balance in your financial model. For purposes of TEV, the standard practice is to take total debt less cash on the BS (i.e. entire cash balance), so the short answer is, no, do not incl... Read More
Restricted cash, whether for covenants or LOC or escrow, etc would be treated as part of the required minimum cash balance in your financial model. For purposes of TEV, the standard practice is to take total debt less cash on the BS (i.e. entire cash balance), so the short answer is, no, do not incl... Read More
Two reasons: 1) the double digit growth was primarily due to acquisitions and not organic growth (covered in the How to Analyze a 10K course) 2) the relationship between CapEx and depreciation is fairly close (however do note that HRH is a services-based company so while CapEx and depreciation may... Two reasons:
1) the double digit growth was primarily due to acquisitions and not organic growth (covered in the How to Analyze a 10K course)
2) the relationship between CapEx and depreciation is fairly close (however do note that HRH is a services-based company so while CapEx and depreciation may not be as relevant as for a capital-intensive business, but the relative relationship between CapEx and depreciation is still a valid comparison) Read More