Posts by: WST Expert 1
Re: Technology Sector Valuation
As with any company valuation or projection model, you must identify the drivers of growth. For internet companies like yahoo and google, that would be based on advertising revenue, number eyeballs, etc. Then it's simply a matter of applying straightforward metrics. Nothing fancy at all, unlike bank... Read More
As with any company valuation or projection model, you must identify the drivers of growth. For internet companies like yahoo and google, that would be based on advertising revenue, number eyeballs, etc. Then it's simply a matter of applying straightforward metrics. Nothing fancy at all, unlike bank... Read More
Re: IRR
1) your transaction premium/price and therefore, your implied transaction multiples should be a result of your valuation, which comes BEFORE the LBO model (in theory) and of course, the financial model is first. This partially stems from deal comp multiples as well as standalone "intrinsic valu... Read More
1) your transaction premium/price and therefore, your implied transaction multiples should be a result of your valuation, which comes BEFORE the LBO model (in theory) and of course, the financial model is first. This partially stems from deal comp multiples as well as standalone "intrinsic valu... Read More
Re: MI and DCF valuation
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: Monthly Model Balance Sheet Drivers
We would still use the same formula except instead of 365 days, use the
actual number of days in the month because your cogs and sales and sg&a figures are monthly now. Balance sheet figures are still end of period.
We would still use the same formula except instead of 365 days, use the
actual number of days in the month because your cogs and sales and sg&a figures are monthly now. Balance sheet figures are still end of period.
RE: Complex Trading: Diluted s/out for preferred/convertibles?
Options and warrants would be treated the same as outlined in the treasury option explanation because they are the same - just that warrants are more out of the money and usually issued to outside investors not mgmt. For convertibles, please refer to our COST converts explanation in the Complex ... Read More
Options and warrants would be treated the same as outlined in the treasury option explanation because they are the same - just that warrants are more out of the money and usually issued to outside investors not mgmt. For convertibles, please refer to our COST converts explanation in the Complex ... Read More
Re: CLOSING aDJUSTMENT
Dividends (or lack of dividends) are already reflected in the capital structure, from the Cash portion of Net Debt. Thus, if there's excess cash available, then it already increases the Equity Value that the sellers get. Working Capital adjustments are usually minor and supposedly already incorporat... Read More
Dividends (or lack of dividends) are already reflected in the capital structure, from the Cash portion of Net Debt. Thus, if there's excess cash available, then it already increases the Equity Value that the sellers get. Working Capital adjustments are usually minor and supposedly already incorporat... Read More
Re: D&A is different on the I/S and CF, which to use ??
treasury stock on BS is a DOLLAR amount. so the change would be the total dollar amount in stock purchased that year. of course the negative number becomes a bigger negative number
treasury stock on BS is a DOLLAR amount. so the change would be the total dollar amount in stock purchased that year. of course the negative number becomes a bigger negative number
RE: Create a simplified model from the full blown core model
Conversion from full blown Core Model to simplified, no debt model: 1) remove all Debt related items from Balance Sheet 2) remove Debt Sweep completely 3) in Cash Flow, CFF, there will be no stock or debt, just have one line called Capital Infusion (like CapEx) and set CFF equal to that. 4) Ch... Read More
Conversion from full blown Core Model to simplified, no debt model: 1) remove all Debt related items from Balance Sheet 2) remove Debt Sweep completely 3) in Cash Flow, CFF, there will be no stock or debt, just have one line called Capital Infusion (like CapEx) and set CFF equal to that. 4) Ch... Read More
Re: a quick question about formatting
Use our following macros (install the WST add-ins):
Ctrl+ Shift+D for dollar formatting
Ctrl+ Shift+M for number formatting ("money" macro)
Ctrl + U for underline (we overwrote excel's built-in Ctrl+U since in Excel 2007 and 2010 the underline changes the row height in most cases.
Use our following macros (install the WST add-ins):
Ctrl+ Shift+D for dollar formatting
Ctrl+ Shift+M for number formatting ("money" macro)
Ctrl + U for underline (we overwrote excel's built-in Ctrl+U since in Excel 2007 and 2010 the underline changes the row height in most cases.
If you get Interest Income, isn't that +10 in CFO (via Net Income). If strict IFRS GAAP, then in some cases, it is +10 in CFI. But regardless of that, I'm not sure what you mean by drawing 25 to finance the company. If you draw 25 to finance the company, that's usually a CFF item, most likely v... If you get Interest Income, isn't that +10 in CFO (via Net Income). If strict IFRS GAAP, then in some cases, it is +10 in CFI.
But regardless of that, I'm not sure what you mean by drawing 25 to finance the company. If you draw 25 to finance the company, that's usually a CFF item, most likely via increase in debt. the offsetting entry is increase in cash by the same 25. I'm not sure why you would reduce CFI by 25 since nothing is touching CFI at that point. How does one "draw down 25 from CFI"?
Then you introduced a new concept in your last statement. If you want to use ST Investment, then the entry is reduce ST Investment by 25, increase cash by 25... Read More