Posts by: Michael c
Beta for Cost of Equity
Hello WST, I understand that many have access to Bloomberg terminal at work or in school so getting beta for a particular stock is not an issue. However, would you have any recommendation for those who don't have Bloomberg and need beta to calculate cost of equity for a particular company? For ex... Read More
Hello WST, I understand that many have access to Bloomberg terminal at work or in school so getting beta for a particular stock is not an issue. However, would you have any recommendation for those who don't have Bloomberg and need beta to calculate cost of equity for a particular company? For ex... Read More
Re: DCF Mid-Year Convention
Got it. Many thanks. :)
Got it. Many thanks. :)
DCF Mid-Year Convention
Hello WST,
A quick question, would you recommend using mid-year convention for DCF because obviously firms don't normally receive all its cash at the end of the fiscal year? Many thanks.
Hello WST,
A quick question, would you recommend using mid-year convention for DCF because obviously firms don't normally receive all its cash at the end of the fiscal year? Many thanks.
Re: DCF Correct Time Period inputs
Your compliment really means a lot. Many thanks for such quick reply and very helpful advice. cheers,
Your compliment really means a lot. Many thanks for such quick reply and very helpful advice. cheers,
Re: DCF Correct Time Period inputs
Many thanks for such quick reply. So let me just clarify that the correct way is taking the latest released financials (2018 Q3) to calculate net debt and capitalization figures for the WACC; and for DCF I should discount the 2018 Q4 (the last remaining 2018 project quarter) plus 2019-2022 FCFF plu... Read More
Many thanks for such quick reply. So let me just clarify that the correct way is taking the latest released financials (2018 Q3) to calculate net debt and capitalization figures for the WACC; and for DCF I should discount the 2018 Q4 (the last remaining 2018 project quarter) plus 2019-2022 FCFF plu... Read More
DCF Correct Time Period inputs
Hi WST, I have a not so smart question, let's say I am making a 5 year projection (2018-2022) for DCF analysis to calculate a company's implied stock price. Now, the company just releases its latest financial statements. So should I use the latest financial figures to calculate, say, net debt, an... Read More
Hi WST, I have a not so smart question, let's say I am making a 5 year projection (2018-2022) for DCF analysis to calculate a company's implied stock price. Now, the company just releases its latest financial statements. So should I use the latest financial figures to calculate, say, net debt, an... Read More
Re: Convertible Bonds
Got it. Very helpful! Thanks.
Got it. Very helpful! Thanks.
Convertible Bonds
I am building a projection model and at the stage of building the debt schedule. Now, I have a situation where the company has convertible bond (CB) being classified on its balance sheet into liability portion and equity portion. Now, I am a bit confused. EX, the company raised $1,000 of CB, incl... Read More
I am building a projection model and at the stage of building the debt schedule. Now, I have a situation where the company has convertible bond (CB) being classified on its balance sheet into liability portion and equity portion. Now, I am a bit confused. EX, the company raised $1,000 of CB, incl... Read More
Hi WST, Quick question: if we can't have the residual value of a company's depreciate assets; does that mean we could very well over estimate the depreciation expense? Ex. A company has $1000 of machinery and Equipment at the beginning of the period and with 3 years of life. However, without kno... Hi WST,
Quick question: if we can't have the residual value of a company's depreciate assets; does that mean we could very well over estimate the depreciation expense? Ex. A company has $1000 of machinery and Equipment at the beginning of the period and with 3 years of life. However, without knowing that the residual value of the asset would be, let's say, $200 which leaves us $800 worth of depreciation over 3 years. Now, without knowing what the residual value would be we would have to depreciate the full $1000 for the life of the asset. Is this correct? Many thanks. Read More