Posts by: Guest 1
Re: D&A is different on the I/S and CF, which to use ??
does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.
does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.
What do I do for beta of a company if there is no beta?
Full Question:
If there is no beta for a company, then can I regress the company's excess return (to its sector market index) to the sector market return? Should I use 1 year or 5 year (1 whole business cycle) data? I know that Beta instability can be a problem.
Full Question:
If there is no beta for a company, then can I regress the company's excess return (to its sector market index) to the sector market return? Should I use 1 year or 5 year (1 whole business cycle) data? I know that Beta instability can be a problem.
MI and DCF valuation
Hi, I have attended your advanced financial and merger modeling course. For minority interests (MI), can you please recap how it impacts the DCF valuation? Are these the correct adjustments/impact if my consolidated P&L and BS factors in MI already? 1. WACC is build up from ratio of debt and e... Read More
Hi, I have attended your advanced financial and merger modeling course. For minority interests (MI), can you please recap how it impacts the DCF valuation? Are these the correct adjustments/impact if my consolidated P&L and BS factors in MI already? 1. WACC is build up from ratio of debt and e... Read More
Please clarify if any value is gained by buying back stock-1
Full Question: It has been said that holding cash isn't necessarily bad for a company. My belief is that the company can repurchase shares, therefore increasing their debt/equity ratios. Higher debt = higher tax shield so the value of the company is greater. Now, theory says, that's not true becaus... Read More
Full Question: It has been said that holding cash isn't necessarily bad for a company. My belief is that the company can repurchase shares, therefore increasing their debt/equity ratios. Higher debt = higher tax shield so the value of the company is greater. Now, theory says, that's not true becaus... Read More
Re: Technology Sector Valuation
I'm most interested in internet search companies, i.e. yahoo, google, bidu, or something similar to this. Does valuation for these types of company pretty straightforward or is there something more unique for these types of models? Thanks
I'm most interested in internet search companies, i.e. yahoo, google, bidu, or something similar to this. Does valuation for these types of company pretty straightforward or is there something more unique for these types of models? Thanks
Re: CLOSING aDJUSTMENT
I don't understand why it is okay to adjust the price based on working capital movement and loans but not on dividends. May be I'm missing something. Also, in case of the working capital and loan adjustment.. can you please elaborate alittle bit on the adjustment formula that should be used. Thank... Read More
I don't understand why it is okay to adjust the price based on working capital movement and loans but not on dividends. May be I'm missing something. Also, in case of the working capital and loan adjustment.. can you please elaborate alittle bit on the adjustment formula that should be used. Thank... Read More
Re: Thoughts after going through package3 (advanced modeling)
Hi, I have taken the advanced and merger modeling courses online. I have the following questions. 1. What is the impact of minority interests (MI) on the DCF valuation if the P&L and BS already factor in the MI? Do I just remove the MI from the firm value to get the equity value? For the WACC, ... Read More
Hi, I have taken the advanced and merger modeling courses online. I have the following questions. 1. What is the impact of minority interests (MI) on the DCF valuation if the P&L and BS already factor in the MI? Do I just remove the MI from the firm value to get the equity value? For the WACC, ... Read More
Re: D&A is different on the I/S and CF, which to use ??
also looking at Wendy's (WEN) 10K, do you model accumulated deficit the same why as retained earnings? and how to model treasury stock on B/S?
also looking at Wendy's (WEN) 10K, do you model accumulated deficit the same why as retained earnings? and how to model treasury stock on B/S?
Please clarify if any value is gained by buying back stock.
Full Question: So I understand your example. But my understanding is that M&M proposition II says that in a world with taxes, increasing debt means increasing the value of the firm or Enterprise Value. In the examples you provided me, the enterprise value of the firm stayed constant. I'm saying... Read More
Full Question: So I understand your example. But my understanding is that M&M proposition II says that in a world with taxes, increasing debt means increasing the value of the firm or Enterprise Value. In the examples you provided me, the enterprise value of the firm stayed constant. I'm saying... Read More
Hello, I had done a valuation for a buy-side transaction based on discounting free cash flows to firm. Now, five months later we are trying to close the transaction. However, many things have changed in the company including cash balance, debt level, and working capital. Also, during this period o... Hello,
I had done a valuation for a buy-side transaction based on discounting free cash flows to firm. Now, five months later we are trying to close the transaction.
However, many things have changed in the company including cash balance, debt level, and working capital. Also, during this period of time, the company paid substantial amount of dividends to its shareholders.
I am not sure how to make the closing adjustment especially that we didn’t discuss these issues from the start Read More