Posts by: WST Expert 1
RE: Negative Free Cash Flow in DCF
Pls search our previous posts on how to account for NOLs in DCF. Pls note that DCF is fairly irrelevant for early stage companies, or non-mature companies in general. Search our topic forums here for more information on that as well.
Pls search our previous posts on how to account for NOLs in DCF. Pls note that DCF is fairly irrelevant for early stage companies, or non-mature companies in general. Search our topic forums here for more information on that as well.
Re: Sum + If Array
From our Advanced Excel for Data Analysis class, recall that the "third" approach was using IF statements. Since we can easily demonstrate that everything is a mathematical calculation using multiplication and =, then in reality, for the multiple conditions, you don't need the IF statement... Read More
From our Advanced Excel for Data Analysis class, recall that the "third" approach was using IF statements. Since we can easily demonstrate that everything is a mathematical calculation using multiplication and =, then in reality, for the multiple conditions, you don't need the IF statement... Read More
Re: Undistributed Earnings Allocated to Participating Securities
This is the key line from your copy/paste: The shares of unvested restricted stock have the non-forfeitable right to receive dividends on an equal basis with other outstanding common stock. As such, the company has to remove the portion for the restricted stock and "carve it out" of net ... Read More
This is the key line from your copy/paste: The shares of unvested restricted stock have the non-forfeitable right to receive dividends on an equal basis with other outstanding common stock. As such, the company has to remove the portion for the restricted stock and "carve it out" of net ... Read More
RE: Modeling out working capital
Normally with a derivation of the full balance sheet, yes, assets less laibilities. But 30/60 days expenses is not an uncommon estimate for cash flow based business (services firms) since you need to maintain that to pay salary, etc.
Normally with a derivation of the full balance sheet, yes, assets less laibilities. But 30/60 days expenses is not an uncommon estimate for cash flow based business (services firms) since you need to maintain that to pay salary, etc.
RE: All Stock M&A transaction...Timing Question
Usually, the actual exchange price is something like the average 3 to 10 trading days ending 3 to 10 days prior to the ACTUAL closing in the future. While we calculate premiums paid based on announcement date price and offer prices for our deal comps, the actual physical dollars are done based on th... Read More
Usually, the actual exchange price is something like the average 3 to 10 trading days ending 3 to 10 days prior to the ACTUAL closing in the future. While we calculate premiums paid based on announcement date price and offer prices for our deal comps, the actual physical dollars are done based on th... Read More
Re: Cost of Debt Sources
you're not looking for cost of debt, but rather, current YTM. in either case, get bloomberg. public libraries, friends, be resourceful.
you're not looking for cost of debt, but rather, current YTM. in either case, get bloomberg. public libraries, friends, be resourceful.
RE: How to project minority interest?
For a quick and dirty minority interest estimate on the balance sheet, you would take the proportionate share of what CME does NOT own and recognize that as the MI liability on the balance sheet. In other words, you would build a separate standalone model for the subsidiary (which is 100% consolidat... Read More
For a quick and dirty minority interest estimate on the balance sheet, you would take the proportionate share of what CME does NOT own and recognize that as the MI liability on the balance sheet. In other words, you would build a separate standalone model for the subsidiary (which is 100% consolidat... Read More
Re: Modeling ADR shares
You can build your entire model in BRL or local currency, which we'd actually recommend. Then once you come up with your DCF price target (in local currency), you would simply translate that into USD at today's exchange rate, spot price is fine. Keep in mind, this is ok because you are building you... Read More
You can build your entire model in BRL or local currency, which we'd actually recommend. Then once you come up with your DCF price target (in local currency), you would simply translate that into USD at today's exchange rate, spot price is fine. Keep in mind, this is ok because you are building you... Read More
Re: Undistributed Earnings Allocated to Participating Securities
This gets a bit more into accounting standards for EPS. Try these links to clarify: http://www.cfo.com/article.cfm/11699329/c_2984338/ http://www.cfo.com/article.cfm/11699329/c_2984338/
http://www.nysscpa.org/cpajournal/2005/ ... ls/p28.htm
http://www.bdo.com/publications/assuran ... sshare.asp Read More
This gets a bit more into accounting standards for EPS. Try these links to clarify: http://www.cfo.com/article.cfm/11699329/c_2984338/ http://www.cfo.com/article.cfm/11699329/c_2984338/
http://www.nysscpa.org/cpajournal/2005/ ... ls/p28.htm
http://www.bdo.com/publications/assuran ... sshare.asp Read More
Yes, correct. Taxes paid are always based on revenues and expenses recognized by the IRS. Deferred taxes will reconcile the difference between the tax treatment and the accounting treatment. Since some companies elect to be a cash basis taxpayer and others accrual basis taxpayers, it is not possi... Yes, correct.
Taxes paid are always based on revenues and expenses recognized by the IRS. Deferred taxes will reconcile the difference between the tax treatment and the accounting treatment. Since some companies elect to be a cash basis taxpayer and others accrual basis taxpayers, it is not possible to generalize on this. However, the cash flow statement will always reflect the actual cash taxes paid and the deferred tax item will always appear as an add back or deduction from net income. Read More