Posts by: Kervin T
Re: equity IRR
Thanks. Ok. But how can we calculate an equity IRR from FCFF?
Thanks. Ok. But how can we calculate an equity IRR from FCFF?
equity IRR
What do we use in calculating equity IRR assuming we need to calculate and show one in an asset acquisition assuming you have control? Also, saw your cheat sheet of cash flow. It seems all have pitfalls particularly FCFE. Then what is the best among them and usually use in practice? Why is FCFE n... Read More
What do we use in calculating equity IRR assuming we need to calculate and show one in an asset acquisition assuming you have control? Also, saw your cheat sheet of cash flow. It seems all have pitfalls particularly FCFE. Then what is the best among them and usually use in practice? Why is FCFE n... Read More
Re: Cash
The point of cash conversion ratio is to check how much the target can convert and generate cash from its net income to free cash flow. on the premium, understand and agree. although in this case, the target is also a private or subsidiary of a big company so there is also no direct public marke... Read More
The point of cash conversion ratio is to check how much the target can convert and generate cash from its net income to free cash flow. on the premium, understand and agree. although in this case, the target is also a private or subsidiary of a big company so there is also no direct public marke... Read More
Re: Cash
Is FCFE/Net Profit a good indicator of cash conversion ratio? or Operating cash flow / Operating Profit instead (pre-tax)? since net profit may not contain changes in debt while FCFE contained debt so is it apple to apple?.
Is FCFE/Net Profit a good indicator of cash conversion ratio? or Operating cash flow / Operating Profit instead (pre-tax)? since net profit may not contain changes in debt while FCFE contained debt so is it apple to apple?.
Re: Cash
Thank you. Why is premium not included? which may represent goodwill or brand or concession if gov't contract project?
Thank you. Why is premium not included? which may represent goodwill or brand or concession if gov't contract project?
Re: Cash
Thanks. Got your point on FCFF and agree. But sometimes its not just capital structure affecting the actual tax. as sometimes the operations itself as well like income tax holiday or final tax rule. So getting a "pseudo" tax using EBT * tax rate is far from actual tax. Is FCFF being use that much in... Read More
Thanks. Got your point on FCFF and agree. But sometimes its not just capital structure affecting the actual tax. as sometimes the operations itself as well like income tax holiday or final tax rule. So getting a "pseudo" tax using EBT * tax rate is far from actual tax. Is FCFF being use that much in... Read More
Re: Cash
Also, in the free cash flow to firm calculation, why do they calculate income tax using EBIT * tax rate instead of getting the actual tax from EBT * tax rate, the difference being the I as interest expense or interest income. Why treat the tax savings from debt-tax shield (delta) as part of free cas... Read More
Also, in the free cash flow to firm calculation, why do they calculate income tax using EBIT * tax rate instead of getting the actual tax from EBT * tax rate, the difference being the I as interest expense or interest income. Why treat the tax savings from debt-tax shield (delta) as part of free cas... Read More
Re: Cash
How should we treat underfunded pension or pension deficit in an acquisition? Is it a "debt-like" and should form part of TEV/EBITDA multiple calculation? as it will be paid in cash in case employment termination after acquistion?
How should we treat underfunded pension or pension deficit in an acquisition? Is it a "debt-like" and should form part of TEV/EBITDA multiple calculation? as it will be paid in cash in case employment termination after acquistion?
Re: Cash
Thanks again. I understand. But for an asset-sale type of transaction wherein target will sell asset only without working capital. Any project loan will include a working capital line/revolver, so we must make sure we are paying the "fair" multiple for this type of asset on a going concern basis. At... Read More
Thanks again. I understand. But for an asset-sale type of transaction wherein target will sell asset only without working capital. Any project loan will include a working capital line/revolver, so we must make sure we are paying the "fair" multiple for this type of asset on a going concern basis. At... Read More
Hmm...but FCFF or FCFE can be derived from the financial model, right?
Assuming you model it rightly (perfect world), then projected FCFF and FCFE can be used to calculate Project IRR and Equity IRR respectively, right? (conceptually)