Posts by: WST Expert 1
Re: Advance Financial Modeling- Core Model Questions on CF
Generally speaking, you will go with the company's classification of working capital, as they know best what is inside each line item. This can clearly be ascertained by looking at their CFO on the Cash Flow Statement to see where they placed the items. THey are usually grouped together with some so... Read More
Generally speaking, you will go with the company's classification of working capital, as they know best what is inside each line item. This can clearly be ascertained by looking at their CFO on the Cash Flow Statement to see where they placed the items. THey are usually grouped together with some so... Read More
Re: Building models from scratch?
Yes, this course of ours: Excel Fundamentals for the Finance Professional has a module called "Capstone Model" that starts from a truly blank excel page. http://www.wstselfstudy.com/packagetech.htmlhttp://www.wstselfstudy.com/packagetech.html
For additional questions, please email us at info@wallst-training.com and one of our reps will get back to you asap. Read More
Yes, this course of ours: Excel Fundamentals for the Finance Professional has a module called "Capstone Model" that starts from a truly blank excel page. http://www.wstselfstudy.com/packagetech.htmlhttp://www.wstselfstudy.com/packagetech.html
For additional questions, please email us at info@wallst-training.com and one of our reps will get back to you asap. Read More
RE: Net Debt and Working Capital
Our accepted best practice is NOT to adjust Debt (whether Total or Net) for Working Capital as Working Capital is an operating related question not a capital structure, financing related item. Please note that that is in the context of STANDALONE valuation. The assumption is alwasy that there is eno... Read More
Our accepted best practice is NOT to adjust Debt (whether Total or Net) for Working Capital as Working Capital is an operating related question not a capital structure, financing related item. Please note that that is in the context of STANDALONE valuation. The assumption is alwasy that there is eno... Read More
Re: Replacement cost and earning power
the concept of replacement cost is trying to value a company based on how much it would cost to replace / replicate the operations/earnings. Thus, one method is to start by figuring out how much the PPE or factors of production to replace it's existing manufacturing capacity. That gives a baseline m... Read More
the concept of replacement cost is trying to value a company based on how much it would cost to replace / replicate the operations/earnings. Thus, one method is to start by figuring out how much the PPE or factors of production to replace it's existing manufacturing capacity. That gives a baseline m... Read More
Re: Basic Fundamental Knowledge
Glad you've been converted! In general, hitting ALT will access the menu items (ribbon in Excel 2007/2010) on the top. In a dialog box, hitting ALT+[letter] will access the item within the dialog box (called "accelerator key"). Excel has some basic CTRL+[letter] functions built-in, such ... Read More
Glad you've been converted! In general, hitting ALT will access the menu items (ribbon in Excel 2007/2010) on the top. In a dialog box, hitting ALT+[letter] will access the item within the dialog box (called "accelerator key"). Excel has some basic CTRL+[letter] functions built-in, such ... Read More
RE: WACC tax rate adjustment for bea
Individual marginal tax rate. Assuming normalized "regular" company, anywhere btwn 35% to 40% is fine.
Individual marginal tax rate. Assuming normalized "regular" company, anywhere btwn 35% to 40% is fine.
RE: Complex Trading: adj beta vs raw beta on bloomberg
Hi,
In the video, you explained that adj beta = 2/3*raw beta + 1/3 <- (1 * 1/3)
In the bloomberg screenshot for Walmart, however, I see this equation below the box:
ADJ BETA = 10.671 X RAW BETA + 10.331
How does this relate to the original equation you explained?
Thanks
Hi,
In the video, you explained that adj beta = 2/3*raw beta + 1/3 <- (1 * 1/3)
In the bloomberg screenshot for Walmart, however, I see this equation below the box:
ADJ BETA = 10.671 X RAW BETA + 10.331
How does this relate to the original equation you explained?
Thanks
Re: Advance Financial Modeling- Core Model Questions on CF
Correct. Using this year's EPS creates a circ because the amount of shares repurchased affects the new share count which is used to calculate that year's EPS, thus, a circ is created. Using trailing EPS solves this issue and since everything is an estimate anyway, you won't be wrong by that much.
Correct. Using this year's EPS creates a circ because the amount of shares repurchased affects the new share count which is used to calculate that year's EPS, thus, a circ is created. Using trailing EPS solves this issue and since everything is an estimate anyway, you won't be wrong by that much.
Re: Permutation
Yep, this is covered in our Portfolio Optimization & Efficient Frontier modeling Class. In short, here's the process: 1) use function =rand() to generate random numbers; notice this is a standard normal number between 0 and 1 indicating area under the curve 2) do that n number of times (assuming... Read More
Yep, this is covered in our Portfolio Optimization & Efficient Frontier modeling Class. In short, here's the process: 1) use function =rand() to generate random numbers; notice this is a standard normal number between 0 and 1 indicating area under the curve 2) do that n number of times (assuming... Read More
This is classic CFA question.
You probably mean ROE not ROI.
Generally speaking, your return is measured by your growth rate and your retention rate. don't forget that d, the dividend payout ratio is simply dividends/earnings. thus when you do the math /algebra, you get ROE