Posts by: Guest 1
Complex Trading: adj beta vs raw beta on bloomberg
Hi,
In the video, you explained that adj beta = 2/3*raw beta + 1/3 <- (1 * 1/3)
In the bloomberg screenshot for Walmart, however, I see this equation below the box:
ADJ BETA = 10.671 X RAW BETA + 10.331
How does this relate to the original equation you explained?
Thanks
Hi,
In the video, you explained that adj beta = 2/3*raw beta + 1/3 <- (1 * 1/3)
In the bloomberg screenshot for Walmart, however, I see this equation below the box:
ADJ BETA = 10.671 X RAW BETA + 10.331
How does this relate to the original equation you explained?
Thanks
Re: Advance Financial Modeling- Core Model Questions on CF
Thank you for your reply.
I just want to make it clear. We will not use the current year EPS since it will create circular reference, and we use the trailing EPS instead?
Thank you for your reply.
I just want to make it clear. We will not use the current year EPS since it will create circular reference, and we use the trailing EPS instead?
Circular references clarified
Full Question: My model calculated, but I had a question about the final (key) point surrounding the iterations. I understand that we entered a choose function which will alternate using the average cash balances (2) or the beginning value (1). I also understand how to set up and run the iterations... Read More
Full Question: My model calculated, but I had a question about the final (key) point surrounding the iterations. I understand that we entered a choose function which will alternate using the average cash balances (2) or the beginning value (1). I also understand how to set up and run the iterations... Read More
How do I account for stub periods in an LBO model?
Full Question:
If an LBO transaction does not happen at the end of the Pro Forma fiscal year (ie, 2004) but, say, at the end of Q2 2005, how can I account for this?
Full Question:
If an LBO transaction does not happen at the end of the Pro Forma fiscal year (ie, 2004) but, say, at the end of Q2 2005, how can I account for this?
Complex Trading: Quick cost of debt question
Hi,
This might be a dumb question but I just need to be clarified:
I know that the risk free rate for equity is 10yr Treasury bill. But the cost of debt (before tax) the yield to maturity of what instrument? Is this always the case or when do we use a different instrument?
Thanks
Hi,
This might be a dumb question but I just need to be clarified:
I know that the risk free rate for equity is 10yr Treasury bill. But the cost of debt (before tax) the yield to maturity of what instrument? Is this always the case or when do we use a different instrument?
Thanks
Urgent : Historical Betas Database
Could someone please enlighten me if there exist any databases which have historical beta values for companies? Which are the most reliable or popular databases? Also, while computing the WACCs for a company, we sometimes use peer sets or industry averages for unlevered beta and then find out the l... Read More
Could someone please enlighten me if there exist any databases which have historical beta values for companies? Which are the most reliable or popular databases? Also, while computing the WACCs for a company, we sometimes use peer sets or industry averages for unlevered beta and then find out the l... Read More
Re: Macro partially disabled
Thank you very much! Yes now it's working perfectly after I uninstalled the Bloomberg add-in.
But is there a way to modify the macro in order to make both of them work?
Thank you very much! Yes now it's working perfectly after I uninstalled the Bloomberg add-in.
But is there a way to modify the macro in order to make both of them work?
How does one correctly calculate Days Payable Outstanding?
Full Question: I took your advanced financial modeling class yesterday and have a question for you regarding the DPO (Days Payable Outstanding) formula. The formula we used was AP * (365/total expenses). I thought DPO used COGS to calculate. How come we’re using total expenses instead? Is it some... Read More
Full Question: I took your advanced financial modeling class yesterday and have a question for you regarding the DPO (Days Payable Outstanding) formula. The formula we used was AP * (365/total expenses). I thought DPO used COGS to calculate. How come we’re using total expenses instead? Is it some... Read More
WACC : Historical Beta Values
Could someone please enlighten me as to what databases exist for historical beta values (say past 5 yrs.)for companies?Which databases are considered most reliable? Also we use peers to find an average unlevered beta value and then lever it to the capital structure of the target company. Is there a... Read More
Could someone please enlighten me as to what databases exist for historical beta values (say past 5 yrs.)for companies?Which databases are considered most reliable? Also we use peers to find an average unlevered beta value and then lever it to the capital structure of the target company. Is there a... Read More
Full Question: I have one question on modeling out a company with discount notes that accrete over the forecast period. I have already separated the different debt tranches. But I find that every time I include the accretion for the notes and then add back the after-tax non-cash interest expense to... Full Question:
I have one question on modeling out a company with discount notes that accrete over the forecast period. I have already separated the different debt tranches. But I find that every time I include the accretion for the notes and then add back the after-tax non-cash interest expense to the cash flow, the balance sheet becomes unbalanced. Do you have any suggestions? Any help you could provide would be most appreciated. Thanks. Read More