Posts by: WST Expert 1

Re: Completed work sheet
Hi Fanar, Thank you for your question. I understand that some of the courses are a bit more faster paced and difficult to follow than others. However, we have a strict policy of not disseminating the "answers" for any of our models in order to protect the integrity of our WST Verification and WST... Read More
Go to post added 2 months ago
Re: Historical Cash & Equivalent Reconciliation
Hello, If you have your quarterly IS and BS projections, then the CF should be easy as long as you are using the indirect method of cash flow construction. Recall that the CF starts with NI, adds D&A and changes in working capital, the latter being derived from BS changes quarter to quarter. CapE... Read More
Go to post added 4 months ago
Re: Historical Cash & Equivalent Reconciliation
We never bother to reconcile historical cash flow statement. Why not? Because you'll never know the adjustments the the company made. For instance, the change in A/R or A/P contains write-downs or other accruals that will not make the BS change exactly equal to the CF figures.
Go to post added 4 months ago
Re: Macros Addin Excel 2017
Hi Joya, Could you please also let us know your current Mac OS version? Also, would it be possible to update your Excel for Mac to the latest version that Microsoft allows? Finally, if you could provide a screenshot of what you're seeing, that'd be great. You could email us at support@wallst.t... Read More
Go to post added 5 months ago
Re: Intangible Asset Amortization
Amortization of intangibles is typically disclosed in the footnotes or MD&A of the 10K as it is required by the SEC as a disclosure. In the event this truly is not found in the 10K or otherwise, and if the company has indeed discussed amortization expense in COGS and OpEx (well actually that's your ... Read More
Go to post added 5 months ago
Re: Over Estimating Depreciation
If it is clear that there is salvage value, one must make a best estimate for such amount.
One method is to see what 3 year old assets are currently valued at as an estimate.
Despite that, a common convention in financial modeling indeed is to assume no salvage value.
Go to post added 5 months ago
Re: new to finance
Hello, Thank you for your inquiry. We feel taking the CFA is overkill to learn accounting, even if you focus on just the accounting portions. Our issue with books and textbooks is that they do not focus on what you need to know about accounting from the FINANCE perspective. And that's exactly how... Read More
Go to post added 7 months ago
Re: Discount rate unwinding
Hello! As you move into next year, do you add an extra column for an extra year - for instance, maintaining 5 years of projections? If so, then the difference may be due to the new projection year that is added not being the same growth or factor as the year that gets shifted out. If not,... Read More
Go to post added 7 months ago
Re: Beta for Cost of Equity
One commonly accepted approach is to make a beta calculation using historical stock data. You could take a calendar year of daily closing prices for the S&P 500 index and the stock in question. Calculate each day's % change from the previous day, and then use something like the COVARIANCE.P or SL... Read More
Go to post added 10 months ago
Re: Terminal EBITDA multiple
If you assume multiple expansion or contraction, you would be distorting the value. For instance, if your entry multiple is 7x and you assume a 10x exit multiple then by definition your DCF value is going to increase and provide a higher value than the company or stock inherently has. Any multiple e... Read More
Go to post added 11 months ago
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