Re: Custom fonts for Chart Y Axis.
After creating your chart, Format the Y axis and enter this code in:
[=100]$0.0;_$0.0

Substitute the 100 for whatever the top figure of your Y axis.
If you don't want the decimal, then use this instead:

[=100]$0;_$0

Re: PPE&depreciation schedule
Very astute observation! Yes, you are 100% correct. To go even further, the CIP portion also needs to have capitalized interest to make thoroughly accurate. However, for most companies, this is an immaterial number. Real estate development and REITS, this becomes significant and as such, we need to ... Very astute observation! Yes, you are 100% correct. To go even further, the CIP portion also needs to have capitalized interest to make thoroughly accurate.
However, for most companies, this is an immaterial number. Real estate development and REITS, this becomes significant and as such, we need to calculate the allocation of CapEx to CIP and then build in a lag time for the CIP to become "live" (Development Completed) which then, as you noted, starts to be depreciated. Read More

RE: Corporate Valuation: Nuances on these methodologies
Excellent questions! 1) For tons more detailed explanation on capital leases, please go to our new topic forums at www.wallst-training.com/forum and under Valuation Topics, we have a wealth more back and forth d... Excellent questions!
1) For tons more detailed explanation on capital leases, please go to our new topic forums at www.wallst-training.com/forum and under Valuation Topics, we have a wealth more back and forth discussion on capital leases. Do note that there are some who disagree with our assessment of capital lease treatment.

2) Assuming no changes going forward and assuming same stock price, correct. However, if you get Net Income and EPS from average analyst estimates, it would be different since they are both averages with different calculations by each analyst.

3) Since it seems you are calculating the "Reference Range", you still use options exercisable because you are calculating "standalone valuation". For an LBO valuation, since you are assuming a "change of control" you would use options outstanding.

4) Yes, to be exactly precise, you would need a different shares outstanding for each calculation, something that would give you more accuracy but isn't typically the norm since you end up summarizing the valuation ranges anyway, so it's not material.

5) You should include all deals, but with an emphasis on completed deals since those actually went through. Forward multiples in deal comps are not always available since you do not always have access to historical analyst reports. However, if you are compiling the multiples as deals are announced (as an investment banker should be in coverage groups) then you should include forward multiples, and for that, the template in our Complex Trading Comps template would be sufficient. Read More

Re: A quick question about TEV
Yes, this is covered in our Basic Financial Modeling class when we first introduced DCF. In a nutshell, in the long-run, for a slow growth, mature, stable cash cow, CapEx and Depreciation offset each other over time. If using perpetuity growth method for terminal value, this concept should apply (e... Yes, this is covered in our Basic Financial Modeling class when we first introduced DCF.
In a nutshell, in the long-run, for a slow growth, mature, stable cash cow, CapEx and Depreciation offset each other over time.
If using perpetuity growth method for terminal value, this concept should apply (else don't use this method for valuation since not applicable).
Hence, if using theory (perpetual growth), then use theory all the way, which means CapEx and Depr together are (should be) roughly zero.
Working Capital changes should be minimal differences, although somewhere else in our forums we have a robust discussion vs. the concepts in Copeland's blue book on valuation. Read More

Re: Wal-Mart Self Study Share repurchase
Great question and you are correct. We should have allocated a portion of any stock issuances and buybacks to common stock. Forgot not that common stock is par value and par value is kept as low as possible for various tax and legal reasons, and the remainder is APIC. Thus, to be 100% accurate and c... Great question and you are correct. We should have allocated a portion of any stock issuances and buybacks to common stock. Forgot not that common stock is par value and par value is kept as low as possible for various tax and legal reasons, and the remainder is APIC. Thus, to be 100% accurate and correct, you would have to allocate the $$ among common stock and APIC. However, from a financial analysis point of view, we don't care about the split between par value and APIC, for simplicity, we lumped them all together. Read More