Posts by: WST Expert 1
Re: Exit Transaction Fees & IRR/MOIC
Yes, because in theory the IRR is a cash-on-cash calculation. Your entry equity that the sponsor puts in includes the effect of fees and therefore so should your exit. Clearly, both of these would reduce final IRR. However, do note that it's not typically common practice in an LBO model to incorpora... Read More
Yes, because in theory the IRR is a cash-on-cash calculation. Your entry equity that the sponsor puts in includes the effect of fees and therefore so should your exit. Clearly, both of these would reduce final IRR. However, do note that it's not typically common practice in an LBO model to incorpora... Read More
Re: Beta Benchmark - Canada vs US
Purely for calculation of beta, you should use the country-specific index.
Nuances apply when calculating CAPM for WACC, which we cover in our Private Company Valuation course.
Purely for calculation of beta, you should use the country-specific index.
Nuances apply when calculating CAPM for WACC, which we cover in our Private Company Valuation course.
Re:
Hi,
You can find this video under My Courses, in the "Overview of Financial Markets" package. Click on "Supplementary Video Exhibits" and the third video in the listing is "Share Repurchase."
Hi,
You can find this video under My Courses, in the "Overview of Financial Markets" package. Click on "Supplementary Video Exhibits" and the third video in the listing is "Share Repurchase."
Re:
Two reasons: 1) the double digit growth was primarily due to acquisitions and not organic growth (covered in the How to Analyze a 10K course) 2) the relationship between CapEx and depreciation is fairly close (however do note that HRH is a services-based company so while CapEx and depreciation may... Read More
Two reasons: 1) the double digit growth was primarily due to acquisitions and not organic growth (covered in the How to Analyze a 10K course) 2) the relationship between CapEx and depreciation is fairly close (however do note that HRH is a services-based company so while CapEx and depreciation may... Read More
Re: Coca-Cola's Cash Flow Statement vs. JPMC's Cash Flow Statement
The JPMC exercise was framed in a worksheet that we set up to make the concepts a bit clearer. JPMC's balance sheet on slide 173 (as displayed on the video) is the source data, while the worksheet is a convenient way to organize and visualize where the cash is coming and going. The core of the ca... Read More
The JPMC exercise was framed in a worksheet that we set up to make the concepts a bit clearer. JPMC's balance sheet on slide 173 (as displayed on the video) is the source data, while the worksheet is a convenient way to organize and visualize where the cash is coming and going. The core of the ca... Read More
Re: Diluted earnings per share
Ultimately, we are trying to calculate Diluted EPS in the most conservative form possible, which in this case means treating the convertible debt as if they were converted to common equity. In 2002 and 2001, the convertible debt was NOT converted and therefore, interest payments were physically paid... Read More
Ultimately, we are trying to calculate Diluted EPS in the most conservative form possible, which in this case means treating the convertible debt as if they were converted to common equity. In 2002 and 2001, the convertible debt was NOT converted and therefore, interest payments were physically paid... Read More
Re: Relevant Multiple Range slide 38
In this case, our company being analyzed was trading at a discount to the rest of the market (two slides prior) and the best acquisition comp is the then most recent deal (Phillips/Tosco). The other deals were shown but not relevant due to different market cycle. A discount was then applied to that ... Read More
In this case, our company being analyzed was trading at a discount to the rest of the market (two slides prior) and the best acquisition comp is the then most recent deal (Phillips/Tosco). The other deals were shown but not relevant due to different market cycle. A discount was then applied to that ... Read More
Re: Total Debt
To be most conservative, for the purpose of credit ratios, preferred would have some portion of it counted as debt. This is covered in more detail in our credit modeling courses, but usually straight preferred would count 80% as debt and 20% as equity.
To be most conservative, for the purpose of credit ratios, preferred would have some portion of it counted as debt. This is covered in more detail in our credit modeling courses, but usually straight preferred would count 80% as debt and 20% as equity.
Re: Shortcut #1
On Excel for Mac, the sum shortcut is actually Command + Shift + T. You can find more shortcut keys like this on our full Excel for Mac Guide, which you can find on the main website under About -> Resources (http://wallst.training/about/resources.html). Just click "show more/less" on the first se... Read More
On Excel for Mac, the sum shortcut is actually Command + Shift + T. You can find more shortcut keys like this on our full Excel for Mac Guide, which you can find on the main website under About -> Resources (http://wallst.training/about/resources.html). Just click "show more/less" on the first se... Read More
You're thinking of free cash flow to equity (FCFE), which would include the effect of net borrowing/repayment of debt. Instead, we typically calculate FCFF, which is computed before any effects of capital structure.