Posts by: Guest 1
RE: Advanced Valuation Modeling: Share repurchase
How would repurchasing shares be "returning capital back to shareholders"? Are you spending money to buy them back? And after you do buy them back, what good does it do to the existing shareholders (I'm assuming they're the owners of public stock and equity not issued to the public market, or am I w... Read More
How would repurchasing shares be "returning capital back to shareholders"? Are you spending money to buy them back? And after you do buy them back, what good does it do to the existing shareholders (I'm assuming they're the owners of public stock and equity not issued to the public market, or am I w... Read More
Altman Z-Score
Does WST have a setup or excel equation for computing the Altman Z-Score? Thanks!
Does WST have a setup or excel equation for computing the Altman Z-Score? Thanks!
Power plants company: Free Cash Flow?
I have a consolidated power company model that has current operational power plants and plants under construction. I’m using FCFF in valuing both types so far. But I think it is wrong to use FCFF for a project that has not yet started because I am not taking into account the debt in the future. Ho... Read More
I have a consolidated power company model that has current operational power plants and plants under construction. I’m using FCFF in valuing both types so far. But I think it is wrong to use FCFF for a project that has not yet started because I am not taking into account the debt in the future. Ho... Read More
Do you need to adjust EBITDA for non-cash items?
Full Question: When calculating a comp’s EBITDA for valuation-related purposes, do you adjust for all items of a non-cash nature – specifically stock-based compensation expense, LIFO inventory adjustments and pension/OPEB expenses? Or, do you have to pay respects to the fact that EBITDA is a mi... Read More
Full Question: When calculating a comp’s EBITDA for valuation-related purposes, do you adjust for all items of a non-cash nature – specifically stock-based compensation expense, LIFO inventory adjustments and pension/OPEB expenses? Or, do you have to pay respects to the fact that EBITDA is a mi... Read More
Re: LBO "Super Complex Course"
I believe I did everything online? I have taken multiple courses - thank you for your help.
I believe I did everything online? I have taken multiple courses - thank you for your help.
Re: Interest Schedule calcs
That was the strangest excel quirk. I tired to isolate the problem one step at a time. I manually entered a number in the total int expense row, IS continued with "ERROR". When I used "-" before the formula then it yielded "ERROR" and w/o "-" it would show &... Read More
That was the strangest excel quirk. I tired to isolate the problem one step at a time. I manually entered a number in the total int expense row, IS continued with "ERROR". When I used "-" before the formula then it yielded "ERROR" and w/o "-" it would show &... Read More
Maintenance capex vs capital expenditures revisited
Full Question:
Should capital expenditures that are not purely maintenance capex be reflected in the cash flows as an outflow of cash as long earnings from that investment are reflected in the EBIT?
Full Question:
Should capital expenditures that are not purely maintenance capex be reflected in the cash flows as an outflow of cash as long earnings from that investment are reflected in the EBIT?
Complex Trading: When to normalize Qs for calculating LTM?
Hi,
If I am adding the most recent 3Qs to the K, and taking away the last 3Qs, when do I normalize? Should I normalize after splicing the documents, or before? Does it matter? Any other pointers?
Hi,
If I am adding the most recent 3Qs to the K, and taking away the last 3Qs, when do I normalize? Should I normalize after splicing the documents, or before? Does it matter? Any other pointers?
Re: LBO "Super Complex Course"
No - I did everything online - thanks
No - I did everything online - thanks
Full Question: On the attached exhibit, chart one plots revenue vs. return, and chart two plots ROE vs. return. The questions are: What are the flaws in just using Revenue? My guess: Does not capture expenses or profit margins. What are the virtues of using ROE? My guess: Captures both ma... Full Question:
On the attached exhibit, chart one plots revenue vs. return, and chart two plots ROE vs. return.
The questions are:
What are the flaws in just using Revenue? My guess: Does not capture expenses or profit margins.
What are the virtues of using ROE? My guess: Captures both margins and revenue growth.
What are the pitfalls of using ROE? My guess: It is based on book value of equity so return is not what a new investor would get, companies that invest in cap-ex, etc. for growth will show low ROE initially so you’d miss these opportunities with a required ROE hurdle, doesn’t indicate level of risk used to generate ROE.
What is the assurance that the value produced by a high ROE company will flow through to the owners? My guess: The stock price must appreciate and/or dividends must be paid or else the firm will be taken over. Read More