Re: Options & Shares exercisable vs outstanding
In our Corporate Valuation video (pre-requisite to most courses), we state that for standalone valuation (even if valuing the in the context of an M&A or LBO), one is to use options exercisable because you are valuing the company as of now, today. As such, as of now, today, the exercisable optio... In our Corporate Valuation video (pre-requisite to most courses), we state that for standalone valuation (even if valuing the in the context of an M&A or LBO), one is to use options exercisable because you are valuing the company as of now, today. As such, as of now, today, the exercisable options are only what is permissable to be diluted since the rest are not vested.

However, in a change of control context (M&A and LBO), all options immediately vest, and therefore, you would use options outstanding when calculating the transaction equity value (and ultimately transaction enterprise value).

Recall exercisable and outstanding have nothing to do with in the money or out of the money. it's about vested vs. non-vested. you can have both in and out of the money options exercisable and outstanding. Read More

Finding specific cells in a workbook
Two ways:
1) Find the file name that your file links to. Go to EDIT => LINKS and see a list. Then do a Find (Ctrl+F) for that file name on each worksheet one at a time.

2) Under EDIT => LINKS, click on Break Links. This removes all references, however ends up hard coding in place.

Re: Valuation - IRR
Yes, our Quick & Dirty LBO Modeling class calculates a simple IRR and our Complex LBO Modeling class calculates IRR in many different ways (triangulation of cash flows, with and without dividend payouts, etc). However, to simplistically answer your question, think of it this way - as you noted,... Yes, our Quick & Dirty LBO Modeling class calculates a simple IRR and our Complex LBO Modeling class calculates IRR in many different ways (triangulation of cash flows, with and without dividend payouts, etc).

However, to simplistically answer your question, think of it this way - as you noted, DCF calculates NPV. The only thing that's missing is the first payment - or the purchase price so to speak. Once you plop that in there (assume it's end of Year 0 cash flow), you have the core inputs for your IRR calculation, with additional adjustments to get to Equity Value and taking into account capital structure. This is done in our LBO courses. If evaluating in the context of a transaction (M&A), we'd highly recommend our Merger Modeling topics since it goes through the proper way to evaluate a deal. Read More

Why and how does the revolver balance the BS
This is covered in great detail in our Advanced Financial Modeling - Core Model class. Please see www.wstselfstudy.com and click on Course Descriptions for more information. In addition, you can go to This is covered in great detail in our Advanced Financial Modeling - Core Model class. Please see www.wstselfstudy.com and click on Course Descriptions for more information. In addition, you can go to www.wallst-training.com and click on FREE RESOURCES to download our Circular Reference Exhibit which provides more color as well on the concepts. For FREE video based version of Circular References, go to www.wstselfstudy.com and click on FREE TRIAL. It is included as a free Exhibit course - no credit card required!!

In short, the Debt Sweep starts off with the subtotal of all the amounts the company has generated excluding cash and debt. THe Debt Sweep then decides the three main rules and logic: borrow more $$ if needed, build excess cash or pay down debt. That is the Revolver's balancing equation. After that, you must make sure the CFS properly links in Change in Debt (including mandatory repayments and any Revolver paydowns or borrowings). Link the rest of the CFS and BS as describe din our class (Adv FM-Core Model) and your BS should balance. At this point, you should balance regardless of the Interest Schedule which is what causes circs but you should balance before that.

Check out the rest of our topic forums for common reasons why your model doesn't balance! Read More

Re: Scatter Plot Data
Hi Kurt, No problem; we typically reply within 1-2 business days, so you can check back often! You can find a tutorial on making these types of bubble charts on this webpage: https://sit... Hi Kurt,

No problem; we typically reply within 1-2 business days, so you can check back often!

You can find a tutorial on making these types of bubble charts on this webpage: https://sites.google.com/site/e90e50fx/ ... with-excel (Note: we are not affiliated with the author.)

As mentioned earlier, with a dense, multidimensional data set such as the one you described, it's highly advisable to first determine which information you are looking to convey (contrast data vs. information!) before selecting a chart type. Even with the chart I posted, it is arguably difficult to "read" in the sense that it is not immediately clear what message is intended. Are we looking for the asset classes that have the longest maturities worldwide? Are we trying to highlight international differences such as commodites having very long maturities in some countries but very short maturities in others? Would it be appropriate to instead have an interactive data table, in which clicking on "FX" would rearrange the countries so that the FX maturities would then be sorted in descending order?

These are the types of questions that should offer some direction. Please let us know if you'd like any further assistance. Have a great weekend! Read More