Posts by: Guest 1
Re: M&A Debt Sweep CF Recapture Feature
ah I understand now. Thank you!
ah I understand now. Thank you!
Tax-effected EBIT vs EBITDA for DCF terminal value
Full Question: Why did we use the tax-effected EBIT instead of EBITDA when calculating the terminal value using the perpetuity growth rate? Is this the standard in the business? Also, if we have the growth rate, can we calculate the EBITDA multiple using the following formula: (1+growth rate)/(WACC... Read More
Full Question: Why did we use the tax-effected EBIT instead of EBITDA when calculating the terminal value using the perpetuity growth rate? Is this the standard in the business? Also, if we have the growth rate, can we calculate the EBITDA multiple using the following formula: (1+growth rate)/(WACC... Read More
Questions on basic Accretion/Dilution model
1. Goodwill: since GW is not amortised whatever the case I was a little confused that you use the terminology of GW amortisation. The US 338 election may allow a tax credit amortisation but I remain confused here slightly. If there is no GW amortisation allowed anywhere in the world then you should ... Read More
1. Goodwill: since GW is not amortised whatever the case I was a little confused that you use the terminology of GW amortisation. The US 338 election may allow a tax credit amortisation but I remain confused here slightly. If there is no GW amortisation allowed anywhere in the world then you should ... Read More
M&A Cash Purchase Question
Often times we hear on the headlines, Company A is buying Company B for $X in CASH. My question is that are they really using the cash on their balance sheet to make this purchase? I think I may have heard somewhere that when companies use "cash" they are really using a bank loan to make... Read More
Often times we hear on the headlines, Company A is buying Company B for $X in CASH. My question is that are they really using the cash on their balance sheet to make this purchase? I think I may have heard somewhere that when companies use "cash" they are really using a bank loan to make... Read More
Incorporating maintenance capex into free cash flow calc
Full Question: I took your "Corporate Valuation Methodologies" class and was impressed with the quality of the class and hope to take more in the future. I am struggling to find a valuation procedure that I'm comfortable with. The denominator should be EV. The appropriate numerator, in my view, ... Read More
Full Question: I took your "Corporate Valuation Methodologies" class and was impressed with the quality of the class and hope to take more in the future. I am struggling to find a valuation procedure that I'm comfortable with. The denominator should be EV. The appropriate numerator, in my view, ... Read More
Urgent: Automating Scorecard Metrics grading
Dear WST, Can you please advise a way to automate the following scorecard metrics grading? Metrics: Target Market Growth Rate [b:2de2qnsf]Metrics Points[/b:2de2qnsf] >20% 12 10%-20% 8 <10% 4 The market growth can range from negative 100% to 1000%,... Read More
Dear WST, Can you please advise a way to automate the following scorecard metrics grading? Metrics: Target Market Growth Rate [b:2de2qnsf]Metrics Points[/b:2de2qnsf] >20% 12 10%-20% 8 <10% 4 The market growth can range from negative 100% to 1000%,... Read More
Building IS for DCF Model
I am currently building the PEP model for the online self-study certificate and I have a question regarding the final net income number and the final diluted EPS number. From what I have learned from the video, Mr. Lin used the 10-K to check the final net income and diluted EPS number and they match... Read More
I am currently building the PEP model for the online self-study certificate and I have a question regarding the final net income number and the final diluted EPS number. From what I have learned from the video, Mr. Lin used the 10-K to check the final net income and diluted EPS number and they match... Read More
Shareholder momentum analysis
Not sure if this is the appropriate topic to post this question. I've been asked to put together a S/H momentum analysis going back 3 years for a public company. Some questions on this: 1) Do you start with, say top 25 holders today, and work backwards to trace how they reached this point? In order... Read More
Not sure if this is the appropriate topic to post this question. I've been asked to put together a S/H momentum analysis going back 3 years for a public company. Some questions on this: 1) Do you start with, say top 25 holders today, and work backwards to trace how they reached this point? In order... Read More
Manufacturer With Captive Finance Co.
In general, do you have a preferred approach to analyzing a manufacturing company with a captive finance unit that is integral to the overall company business? Would you consider expenses like interest and depreciation on loans and leases incurred by a captive finance company like Paccar Financial ... Read More
In general, do you have a preferred approach to analyzing a manufacturing company with a captive finance unit that is integral to the overall company business? Would you consider expenses like interest and depreciation on loans and leases incurred by a captive finance company like Paccar Financial ... Read More
I'm working on Package 3, Enhancement to the Core Model Part I - DCF. The DCF analysis is for 5 years, with 2006 being time = 1 (1st year). Also, the NPV function assumes cash flows happen at the end of the year - so 12/31/2006. So if I'm running a NPV function on the 5 years of forecasted unlevere... I'm working on Package 3, Enhancement to the Core Model Part I - DCF.
The DCF analysis is for 5 years, with 2006 being time = 1 (1st year).
Also, the NPV function assumes cash flows happen at the end of the
year - so 12/31/2006. So if I'm running a NPV function on the 5 years
of forecasted unlevered FCF (DCF tab, I18), then those cash flows are
all discounted to a present value at 1/31/2006 right? That would make
sense, since I am then subtracting out 12/31/2005 Debt / Cash figures
(1/31/06 in the 10-K but labeled as 12/31/05 in the Excel file) to get
to an equity value - so I am using enterprise value, cash, and debt
figures all at the same point in time.
I'm a little confused because the footnote says present values are as
of 1/31/05, not 1/31/06. If that's the case, then:
1- first year's unlevered free cash flow $1,112 at 12/31/06 - why is
that discounted back 2 years instead of 1
2- If the PV unlevered free cash flow is truly as of 1/31/05 as the
footnote says, then why am I subtracting out debt/cash as of 1/31/06
to get to an equity valuation? I'm using 2 different points in time
...? Read More