Posts by: Eric Y
Weighting trading multiples
I am currently looking at a public company that focuses on a very nice area where there aren't a lot of other public companies that do the same thing as their core business. I'm able to only generate two companies and would like to ideally include five. I have added 3 other comps that have a small p... Read More
I am currently looking at a public company that focuses on a very nice area where there aren't a lot of other public companies that do the same thing as their core business. I'm able to only generate two companies and would like to ideally include five. I have added 3 other comps that have a small p... Read More
Target D/E Ratio for WACC
Without asking company management, how do you determine the optimal D/E ratio for the purpose of calculating weights for the WACC?
Without asking company management, how do you determine the optimal D/E ratio for the purpose of calculating weights for the WACC?
Target D/E ratio for WACC
Without having to ask management, how do you determine the optimal D/E (D/A or E/A) ratio for calculating a company's WACC?
Without having to ask management, how do you determine the optimal D/E (D/A or E/A) ratio for calculating a company's WACC?
Restricted Stock Units/Equity Compensation Plans
Should RSUs be treated the same way as options outstanding when it comes to calculating diluted shares outstanding? If so, should we look at the "Granted", "Vested," "Forfeited/Cancelled" or "Nonvested" (ending balance). Also do we use the "Weighted Average Grant Date Fair Value" for exercise price... Read More
Should RSUs be treated the same way as options outstanding when it comes to calculating diluted shares outstanding? If so, should we look at the "Granted", "Vested," "Forfeited/Cancelled" or "Nonvested" (ending balance). Also do we use the "Weighted Average Grant Date Fair Value" for exercise price... Read More
There are a few items that I've been seeing on the income statement that I am trying to determine whether it should be removed for the purpose of calculating a normalized EBITDA, can you please explain why some of these items should or should not be included? FX Gains/Losses Gain/Loss on sale of... There are a few items that I've been seeing on the income statement that I am trying to determine whether it should be removed for the purpose of calculating a normalized EBITDA, can you please explain why some of these items should or should not be included?
FX Gains/Losses
Gain/Loss on sale of assets
In addition, with respect to calculating the after-tax impact of these items, should it be affected by the effective tax rate for that year or marginal tax rate?
Thank you. Read More