Posts by: WST Expert 1
Re: Technology Sector Valuation
Thanks for your inquiry - can you elaborate on which areas of technology you are interested in? most of the techniques for financial modeling and valuation apply to technology as well (unlike banks, insurance, real estate, etc).
Thanks for your inquiry - can you elaborate on which areas of technology you are interested in? most of the techniques for financial modeling and valuation apply to technology as well (unlike banks, insurance, real estate, etc).
Re: CLOSING aDJUSTMENT
If you don't have a term sheet, letter of intent or purchase price agreement (even if all in draft format), then nothing you can do about it. Go update your valuation reflecting the new balance sheet amounts and above all, don't mess up the TEV vs Equity Value on the capital structure - you can lose... Read More
If you don't have a term sheet, letter of intent or purchase price agreement (even if all in draft format), then nothing you can do about it. Go update your valuation reflecting the new balance sheet amounts and above all, don't mess up the TEV vs Equity Value on the capital structure - you can lose... Read More
Re: D&A is different on the I/S and CF, which to use ??
[quote="jleonard20":3p03beyg]does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.[/quote:3p03beyg] There may very likely be a conflict between the two add-ins. We recommend disabling the k... Read More
[quote="jleonard20":3p03beyg]does your excel macros clash with bloomberg? i'm working with bloomberg excel data and control-shift D, zooms in, rather than giving me a dollar format.[/quote:3p03beyg] There may very likely be a conflict between the two add-ins. We recommend disabling the k... Read More
RE: Debt and Capex
Good observation. Our videos point out that in reality, WMT would be refinancing their mandatory debt repayments as well as issuing new long term debt instead of the revolver. Thus we made (or should have made) a point that perhaps for presentation purposes the revolver should be actually considered... Read More
Good observation. Our videos point out that in reality, WMT would be refinancing their mandatory debt repayments as well as issuing new long term debt instead of the revolver. Thus we made (or should have made) a point that perhaps for presentation purposes the revolver should be actually considered... Read More
RE: Advanced Valuation Modeling: Share repurchase
The shares do not get destroyed, but rather put aside by the treasury department and is called "Treasury Shares" in the Shareholders' Equity line on the Balance Sheet. The shares are not usually retired since they want the flexibility to re-issue the shares in the future without needing additional a... Read More
The shares do not get destroyed, but rather put aside by the treasury department and is called "Treasury Shares" in the Shareholders' Equity line on the Balance Sheet. The shares are not usually retired since they want the flexibility to re-issue the shares in the future without needing additional a... Read More
RE: How do you define Interest Coverage Ratio?
Per our Accounting module, interest coverage is generally know as EBITDA/Interest. EBIT/Interest is usually know as TIE-times interest earned. Logic for EBITDA- ability to pay interest with company's "cash flow" Logic for EBIT-ability to pay out of profits since D&A is a legitimate ex... Read More
Per our Accounting module, interest coverage is generally know as EBITDA/Interest. EBIT/Interest is usually know as TIE-times interest earned. Logic for EBITDA- ability to pay interest with company's "cash flow" Logic for EBIT-ability to pay out of profits since D&A is a legitimate ex... Read More
RE: still unsure as to what the proper methodology is
We would lean towards using an "industry average" that is representative of a "normalized" company in that sector. Keep in mind that for distressed companies as in your case, there is definitive way so use what is considered normalized at that point. Either that or sensitize the WACC calculation bas... Read More
We would lean towards using an "industry average" that is representative of a "normalized" company in that sector. Keep in mind that for distressed companies as in your case, there is definitive way so use what is considered normalized at that point. Either that or sensitize the WACC calculation bas... Read More
Re: Thoughts after going through package3 (advanced modeling)
1) Please review our Corporate Valuation course online for a detailed discussion of MI. Short answer: MI on the BS is treated just like Debt in your TEV calculation. 2) If the MI expense recognized on the IS is not paid out in cash, then MI is added back to CFO. 3) Please review our Corporate Valu... Read More
1) Please review our Corporate Valuation course online for a detailed discussion of MI. Short answer: MI on the BS is treated just like Debt in your TEV calculation. 2) If the MI expense recognized on the IS is not paid out in cash, then MI is added back to CFO. 3) Please review our Corporate Valu... Read More
Re: D&A is different on the I/S and CF, which to use ??
accumulated deficiency simple means negative retained earnings balance usually, so, yes, treat that as RE. Treasury Stock is simply repurchased shares, so the line item in CFF flows through here. Please refer to our Core Model class for more information: http://www.wallst-training.com/self-stu ... l#package3
Thank you. Read More
accumulated deficiency simple means negative retained earnings balance usually, so, yes, treat that as RE. Treasury Stock is simply repurchased shares, so the line item in CFF flows through here. Please refer to our Core Model class for more information: http://www.wallst-training.com/self-stu ... l#package3
Thank you. Read More
Yes, you should because the NOL will run out. Please see our other posts in this forum for different ways to treat NOL value in DCF analysis.