Posts by: Guest 1
Re: Selling Receivables
Ah understood, in this case (back to the original problem). The only adjustment that needs to be made on the EV/EBITDA is the Net debt? In addition, can the company have a negative cash balance on their B/S? is this possible?
Ah understood, in this case (back to the original problem). The only adjustment that needs to be made on the EV/EBITDA is the Net debt? In addition, can the company have a negative cash balance on their B/S? is this possible?
Re: Selling Receivables
This question was posed to me in an interview. I now understand the Cash adjustment, however I still don't have a very clear understanding of the interest expense adjustments. I was told something along the line of, when you sell receivables for financing purposes, they are usually purchased at a di... Read More
This question was posed to me in an interview. I now understand the Cash adjustment, however I still don't have a very clear understanding of the interest expense adjustments. I was told something along the line of, when you sell receivables for financing purposes, they are usually purchased at a di... Read More
Selling Receivables
I have a question regarding adjustments to EV/EBITDA when a Company sells receivables. The following is the scenario, There are three comps that you're evaulating EV/EBITDA. Two of the companies have 20m in cash on their B/S and does not sell their receivables for financing reasons. The third com... Read More
I have a question regarding adjustments to EV/EBITDA when a Company sells receivables. The following is the scenario, There are three comps that you're evaulating EV/EBITDA. Two of the companies have 20m in cash on their B/S and does not sell their receivables for financing reasons. The third com... Read More
Re: Forecasting Tax Rate
Ah understood, so it's not a straightforward answer. It really depends on whether the adjustments are a one time thing or whether it would continue on in the future.
Ah understood, so it's not a straightforward answer. It really depends on whether the adjustments are a one time thing or whether it would continue on in the future.
Forecasting Tax Rate
How would you forecast the tax rate for a company? For example, if the statutory tax rate was 40% for the last three years, and the effective tax rate for the last three years were 20, 21,22% What tax rate would you use in your forecast and why? Can someone please explain this to me, perhaps usin... Read More
How would you forecast the tax rate for a company? For example, if the statutory tax rate was 40% for the last three years, and the effective tax rate for the last three years were 20, 21,22% What tax rate would you use in your forecast and why? Can someone please explain this to me, perhaps usin... Read More
Re: Ref Range Issues
Since Pack 4 isn't in the budget (I would take it if it were), I did find some resources lying around that said I should normalize comp numbers and, after that, ditch entire valuation methods that simply do not make sense (e.g., too few data points -- like one transaction -- or methods that say a $2... Read More
Since Pack 4 isn't in the budget (I would take it if it were), I did find some resources lying around that said I should normalize comp numbers and, after that, ditch entire valuation methods that simply do not make sense (e.g., too few data points -- like one transaction -- or methods that say a $2... Read More
Ref Range Issues
My company is basically without a direct comp. It sits between movie theatres and studios. I have 4 comps and will add another. All data used were taken from CapIQ. Per Public Comps, all but one of the calculations (Forward EPS*2014E) yields values that are all over the place and, in some cases, ... Read More
My company is basically without a direct comp. It sits between movie theatres and studios. I have 4 comps and will add another. All data used were taken from CapIQ. Per Public Comps, all but one of the calculations (Forward EPS*2014E) yields values that are all over the place and, in some cases, ... Read More
Re: Multiples
Thank you! I never would have guessed this on my own. There seems to be next to nothing in the literature on resolving this.
Thank you! I never would have guessed this on my own. There seems to be next to nothing in the literature on resolving this.
Multiples
This thread should be much shorter than the last . . . I have a transaction (intrinsic value) model going on here. I've used annual, historical data exclusively (2011, 2012, 2013). My first forecast year is 2014. The company reported 1Q14, so LTM data exists. I need to use multiples for my ref ra... Read More
This thread should be much shorter than the last . . . I have a transaction (intrinsic value) model going on here. I've used annual, historical data exclusively (2011, 2012, 2013). My first forecast year is 2014. The company reported 1Q14, so LTM data exists. I need to use multiples for my ref ra... Read More
Ok, I understand the overall affect on net debt, however, I'm having a hard time grasping the fact that we increase debt by reversing A/R? I'm not sure I understand increasing the debt part intuitively except for the sole fact of not having a negative cash balance.