Posts by: Guest 1
TEV and negative net debt clarification
I attended both the morning and afternoon sessions yesterday in Chicago. I was reviewing the work we did later in the evening and noticed that two of the retailers used in the template had negative net debt. This resulted in a TEV which was less than the equity value of the company. What is th... Read More
I attended both the morning and afternoon sessions yesterday in Chicago. I was reviewing the work we did later in the evening and noticed that two of the retailers used in the template had negative net debt. This resulted in a TEV which was less than the equity value of the company. What is th... Read More
Options & Shares exercisable vs outstanding
In reviewing some of the materials in the videos and the notes I took, for LBO, M&A, and just normal standalone valuation there seems to be some contradiction in info so if you could please clarify I'd appreciate it and please explain why as to which is the appropriate method. 1) In a standalon... Read More
In reviewing some of the materials in the videos and the notes I took, for LBO, M&A, and just normal standalone valuation there seems to be some contradiction in info so if you could please clarify I'd appreciate it and please explain why as to which is the appropriate method. 1) In a standalon... Read More
data table
I input the data table information for the Advanced LBO Modeling course (right near the end of the final video) but there must have been a mistake because the table is populated by the word Year 1. My problem is that the program won't let me undo what I've done. Whenever I try to change any cell i g... Read More
I input the data table information for the Advanced LBO Modeling course (right near the end of the final video) but there must have been a mistake because the table is populated by the word Year 1. My problem is that the program won't let me undo what I've done. Whenever I try to change any cell i g... Read More
Minority Interest
With reference to LBO Modeling, Suppose a Company has 20% float in the market, while 80% is held by an Investor. - a Private Equity Fund is desirous of purchasing entire shareholding of the Investor (80%) in a Public Limited Company. The Fund is also desirous to acquire through tender offer 50% o... Read More
With reference to LBO Modeling, Suppose a Company has 20% float in the market, while 80% is held by an Investor. - a Private Equity Fund is desirous of purchasing entire shareholding of the Investor (80%) in a Public Limited Company. The Fund is also desirous to acquire through tender offer 50% o... Read More
Diluted Shares Outstanding for Equity Value
I have got a question related to Diluted Shares Outstanding that you may be able to help me with. Why should we include the diluted figures when calculating Market Equity Value for Trading Multiples analysis? Because my interpretation is that when these options or covertibles were excercised the... Read More
I have got a question related to Diluted Shares Outstanding that you may be able to help me with. Why should we include the diluted figures when calculating Market Equity Value for Trading Multiples analysis? Because my interpretation is that when these options or covertibles were excercised the... Read More
Re: Problem with choose and average formulas
That is very helpful. Thank you. I may ask you to verify my COTT model....
That is very helpful. Thank you. I may ask you to verify my COTT model....
Re: Estimated Taxes
I actually took that course but I am still confused....Apologies for my lack of understanding. The company I follow has provision for taxes which I assume means income tax expense of 2%, not 40%. Thus GAAP Net income is pretax income * (1-2%). They have NOLs that offset pretax income for sev... Read More
I actually took that course but I am still confused....Apologies for my lack of understanding. The company I follow has provision for taxes which I assume means income tax expense of 2%, not 40%. Thus GAAP Net income is pretax income * (1-2%). They have NOLs that offset pretax income for sev... Read More
Levered vs. unlevered beta for cost of equity
My question relates to the appropriate use of levered vs. unlevered beta in deriving the cost of equity in a free cash flow to the firm and free cash flow to equity analysis. I have read conflicting information on the subject. Is it appropriate to use unlevered beta to calculate the cost of ... Read More
My question relates to the appropriate use of levered vs. unlevered beta in deriving the cost of equity in a free cash flow to the firm and free cash flow to equity analysis. I have read conflicting information on the subject. Is it appropriate to use unlevered beta to calculate the cost of ... Read More
Valuation - IRR
Do any of the self study courses include calculating the IRR of a transaction, I have taken the Core model and am now taking the enhancements course. The enhancements does do a NPV, but I am also working on a few private equity investments that require an IRR calculation. This is easily done, with E... Read More
Do any of the self study courses include calculating the IRR of a transaction, I have taken the Core model and am now taking the enhancements course. The enhancements does do a NPV, but I am also working on a few private equity investments that require an IRR calculation. This is easily done, with E... Read More
Thanks for the reply. Yes that makes complete sense. I think what threw me off was the fact that my company's provision for taxes has averaged around 2% of pretax income for previous years. I believe they pay the alternative minimum corporate income tax. Also they have enough NOL to offset the e... Thanks for the reply.
Yes that makes complete sense. I think what threw me off was the fact that my company's provision for taxes has averaged around 2% of pretax income for previous years. I believe they pay the alternative minimum corporate income tax. Also they have enough NOL to offset the entire pretax income...
I'm not sure how this affects the logic you mentioned above.
Example:
EBT 1000
Tax (2%) 20
NI 980
Assume NOL $1000
Taxes Payable would be 0 due to the use of the entire NOL
Deferred taxes would be $20
So in the cash flow statement DTA would decrease by 20 and the CFO would be NI + DTA = 1000?? Read More