Posts by: Guest 1
Question on Calculating EBITDA for Healthcare companies
Hope all is well. I’m working on a credit review for a healthcarecompany and was wondering why it is standard practice for companies to leave out charges for in process research and development stemming from acquisitions when calculating earnings from continuing operations. I would think that at... Read More
Hope all is well. I’m working on a credit review for a healthcarecompany and was wondering why it is standard practice for companies to leave out charges for in process research and development stemming from acquisitions when calculating earnings from continuing operations. I would think that at... Read More
Building models from scratch?
Is there a package that teaches building fully integrated financial and valuation projection models from blank spreadsheets? From what I've seen and read, WST provides templates to work from, but I think it would be really useful to know how to correctly format and build a model from a blank spreads... Read More
Is there a package that teaches building fully integrated financial and valuation projection models from blank spreadsheets? From what I've seen and read, WST provides templates to work from, but I think it would be really useful to know how to correctly format and build a model from a blank spreads... Read More
Stock-Based Comp adjustment
Full Question: So the short answer to the question is actually that when companies account for stock-based comp. it is a non-cash charge that should be added back in the CFO area. However, because stock-based comp. must be accounted for by the company as a potential benefit (b/c upon exercise the c... Read More
Full Question: So the short answer to the question is actually that when companies account for stock-based comp. it is a non-cash charge that should be added back in the CFO area. However, because stock-based comp. must be accounted for by the company as a potential benefit (b/c upon exercise the c... Read More
Change in Net Working Capital
thx
thx
WACC for a Private Equity Firm
Consider that a private equity firm is interested in buying a firm and then exiting in three years time. It's my understanding that, generally, we should be using long-term, 10-yr Treasury bonds in order to gauge risk-free rate. However, in this case since the investment horizon is only 3 years, sh... Read More
Consider that a private equity firm is interested in buying a firm and then exiting in three years time. It's my understanding that, generally, we should be using long-term, 10-yr Treasury bonds in order to gauge risk-free rate. However, in this case since the investment horizon is only 3 years, sh... Read More
Permutation
Is there a function / macro in excel that generates various combination of numbers across different cells? Those set of numbers adding up to a certain sum. This has to do with a Monte Carlo Model I’m doing that seeks to generate the optimal Portfolio Mix for a Fixed Income Portfolio based on key ... Read More
Is there a function / macro in excel that generates various combination of numbers across different cells? Those set of numbers adding up to a certain sum. This has to do with a Monte Carlo Model I’m doing that seeks to generate the optimal Portfolio Mix for a Fixed Income Portfolio based on key ... Read More
Why is there a holding company discount?
Full Question:
Why in equity valuation is given a discount to holding companies? For example, a company like GE.
Full Question:
Why in equity valuation is given a discount to holding companies? For example, a company like GE.
Macro partially disabled
Hi there, I have been using the great macro for a while, but recently I encountered some problem when I switch to another laptop. On this new laptop part of the macro features are disabled, i.e. some work while some don't. This is a Lenovo thinkpad X61 with Windows XP system, what might be the reas... Read More
Hi there, I have been using the great macro for a while, but recently I encountered some problem when I switch to another laptop. On this new laptop part of the macro features are disabled, i.e. some work while some don't. This is a Lenovo thinkpad X61 with Windows XP system, what might be the reas... Read More
How do I treat Deferred Maintenance Revenues in TEV?
Full Question: I have a question regarding how to treat Deferred Maintenance Revenues relating to maintenance fees earned by a company for software licenses in terms of calculating the Equity Value of a Company. Normally, the Equity Value = TEV + Cash less Debt. However, should the Deferred Maintan... Read More
Full Question: I have a question regarding how to treat Deferred Maintenance Revenues relating to maintenance fees earned by a company for software licenses in terms of calculating the Equity Value of a Company. Normally, the Equity Value = TEV + Cash less Debt. However, should the Deferred Maintan... Read More
Full Question: I have just started to learn how to calculate FCFF and have an obvious “newbie” question - Can the FCFF be calculated for the current quarter, or past year, without estimating forward? Simply put, is it logical and/or accepted industry practice to look at the current, or past FCF... Full Question:
I have just started to learn how to calculate FCFF and have an obvious “newbie” question - Can the FCFF be calculated for the current quarter, or past year, without estimating forward? Simply put, is it logical and/or accepted industry practice to look at the current, or past FCFFs, or is it only used (useful) for estimating forward? And as a follow-up, if you can calculate the FCFF for the current quarter, or past year, how do you handle “Net Working Capital”? In my FCFF estimates for future years, I am using the current year’s working capital as a percent of revenue and applying this to my incremental revenue estimates for each year going out. If I were to apply the same approach to the current quarter, or past year, how would I do it? Do you simply take the incremental change in the “Working Capital” from the current quarter vs. previous quarter, or current year vs. previous year? Any input would be greatly appreciated. I hope my questions make sense to the experts, but as I said, I am a “freshman” at equity valuation. Read More