Posts by: WST Expert 1
Re: Multiples
You are quite welcome!
This is covered in our valuation classes and our Complex Trading Comps course as well....
You are quite welcome!
This is covered in our valuation classes and our Complex Trading Comps course as well....
Re: Multiples
The best practice is to have FOUR times periods:
FY0 aka LFY (last fiscal year) = 2013 actuals
LTM as of 2014 Q1
FY1 aka CFY (current fiscal year) = 2014E
FY2 aka NFY (next fiscal year) = 2015P
The best practice is to have FOUR times periods:
FY0 aka LFY (last fiscal year) = 2013 actuals
LTM as of 2014 Q1
FY1 aka CFY (current fiscal year) = 2014E
FY2 aka NFY (next fiscal year) = 2015P
Re: Dealing with Stock-based comp in the CF Stmt
The best way to estimate SBC is to take historical SBC as a % of Total Compensation. Since Total Compensation is rarely split out separately, then a proxy would be SBC as a % of total SG&A. As for entries, SBC is a non-cash expense so you ADD it in CFO. The offsetting entry is increase to Treasu... Read More
The best way to estimate SBC is to take historical SBC as a % of Total Compensation. Since Total Compensation is rarely split out separately, then a proxy would be SBC as a % of total SG&A. As for entries, SBC is a non-cash expense so you ADD it in CFO. The offsetting entry is increase to Treasu... Read More
Re: Cash Circular
Several observations: 1) you have it set to average balance, so of course there will be circular references. Don't forget the entire explanation at the end of the WMT course about 1 for Beginning and 2 for Average. the GREAT news is that once you flip the switch to 1 for Beginning Balance, the circ... Read More
Several observations: 1) you have it set to average balance, so of course there will be circular references. Don't forget the entire explanation at the end of the WMT course about 1 for Beginning and 2 for Average. the GREAT news is that once you flip the switch to 1 for Beginning Balance, the circ... Read More
Re: Cash Circular
Send us the file. We'll take a look and if we can figure out quickly, we'll let you know.
Email: info@wallst-training.com
Send us the file. We'll take a look and if we can figure out quickly, we'll let you know.
Email: info@wallst-training.com
Re: Cash Circular
You do not want to force a balance - that would be plugging to balance the model and considered a taboo.
From your other post, it sounds like you got it though.
You do not want to force a balance - that would be plugging to balance the model and considered a taboo.
From your other post, it sounds like you got it though.
Re: Cash Circular
Check to see if you have anything on the BS that is referencing interest income. Could be that you "double counted" the interest income somewhere on the BS, on the asset side (since assets > liabilities). Otherwise, check to see that the Cash Flow Statement doesn't also do the same. Remember the ... Read More
Check to see if you have anything on the BS that is referencing interest income. Could be that you "double counted" the interest income somewhere on the BS, on the asset side (since assets > liabilities). Otherwise, check to see that the Cash Flow Statement doesn't also do the same. Remember the ... Read More
Re: Cash Circular
Please confirm if our suggestion worked.
Please confirm if our suggestion worked.
Re: Cash Circular
It doesn't count if you're on the first floor or have a balcony right underneath you! However, in all seriousness, we do not advocate jumping out of windows. So, we've got good news and bad news for you. Which do you want first? Always the bad of course. Bad news is that one can have a circula... Read More
It doesn't count if you're on the first floor or have a balcony right underneath you! However, in all seriousness, we do not advocate jumping out of windows. So, we've got good news and bad news for you. Which do you want first? Always the bad of course. Bad news is that one can have a circula... Read More
Here's our assessment: 1) You must normalize the historical figures from CapIQ. They claim to adjust for one time items but not a good job of it. This is covered in our Complex Trading Comps course: http://www.wallst-training.com/self-stu ... l#package4 2) Are you using only EPS or Revenue, EBI... Here's our assessment:
1) You must normalize the historical figures from CapIQ. They claim to adjust for one time items but not a good job of it.
This is covered in our Complex Trading Comps course: http://www.wallst-training.com/self-stu ... l#package4
2) Are you using only EPS or Revenue, EBITDA and EBIT multiples as well?
This is covered in our Corporate Valuation Methodologies course: http://www.wallst-training.com/self-stu ... l#package4
3) Private company transaction data is tough to find especially if it's small enough that they don't have to disclose many details in the 8K and proxies. If no transactions and no data, end of story, yes. But you can ALWAYS find the data somehow.
This is covered in our Deal Comps Analysis (Precedent Transactions) course: http://www.wallst-training.com/self-stu ... l#package4
4) If the company is still in 6% - 7% growth mode, then the 2% - 4% perpetuity method doesn't really apply, although you have to do it to confirm it doesn't apply. Be prepared to justify the 6% - 7% growth in the future, although don't use the 6% - 7% growth in your gordon growth.
5) Correct. For more private company valuation: http://www.wallst-training.com/self-stu ... ml#private
Does it sound like we're referring you to our valuation courses? You bet ya. Not just a shameless self-advertising and upsell, but because these issues are all covered in our courses already and our free lifetime support is meant to help clarify as opposed to rehash the entire courses. Good news is, you're on the right track! Read More