Posts by: WST Expert 1
Re: trading comps for private placements, vcs, IPOs?
yes, you'd have to get a database of PIPE deals, etc.
valuation methods for IPO = whatever institutional investors are willing to pay.
that is determined by comps, DCF, etc. everything in the Corporate Valuation course.
but look at LinkedIn - sometimes deals are mis-priced
yes, you'd have to get a database of PIPE deals, etc.
valuation methods for IPO = whatever institutional investors are willing to pay.
that is determined by comps, DCF, etc. everything in the Corporate Valuation course.
but look at LinkedIn - sometimes deals are mis-priced
Re: net debt and debt to total cpaital
Net Debt to Total Capital is a mis-matched ratio. It should be Net Debt to Net Capital. References to Equity are Shareholders Equity (Book Value) in the context of credit ratios. Definitions: Total Debt / Total Capital = Debt + (Debt + Equity) Net Debt / Net Capital = Net Debt / (Net Debt + Equity)... Read More
Net Debt to Total Capital is a mis-matched ratio. It should be Net Debt to Net Capital. References to Equity are Shareholders Equity (Book Value) in the context of credit ratios. Definitions: Total Debt / Total Capital = Debt + (Debt + Equity) Net Debt / Net Capital = Net Debt / (Net Debt + Equity)... Read More
RE: Please clarify if any value is gained by buying back stock.
You have to remember the core lessons from my valuation class! If nothing else has happened to the company, why should there be a change to the value of the company (enterprise value)? If the "core, recurring profitability from core operations" has not changed, there is no change to TEV. Capital str... Read More
You have to remember the core lessons from my valuation class! If nothing else has happened to the company, why should there be a change to the value of the company (enterprise value)? If the "core, recurring profitability from core operations" has not changed, there is no change to TEV. Capital str... Read More
RE: How to Analyze a 10K: about the pension section
There is a brief discussion of pensions in the "Other Comprehensive Income" footnote discussion in the main 10K video. Our full pension class is not online at this point.
There is a brief discussion of pensions in the "Other Comprehensive Income" footnote discussion in the main 10K video. Our full pension class is not online at this point.
Re: Free cash flow yield
Again, we need to clarify what FCF is - FCFF or FCFE? if FCFE the Price/FCFE is legit. While we may not like the use of FCFE, but the numerator and denominators are matched up. TEV/FCFF would likewise, be correct. You definition of FCF is unclear and non-standard and seems to be neither apples nor ... Read More
Again, we need to clarify what FCF is - FCFF or FCFE? if FCFE the Price/FCFE is legit. While we may not like the use of FCFE, but the numerator and denominators are matched up. TEV/FCFF would likewise, be correct. You definition of FCF is unclear and non-standard and seems to be neither apples nor ... Read More
Re: Circular Reference Fix
if you built the model correctly per our best practices, change the switch to 1 for beginning balance. this should remove circular references.
if you still have a circ or calculate, then you have an error elsewhere in the model that isn't due to interest (or just a wrong formula somewhere).
if you built the model correctly per our best practices, change the switch to 1 for beginning balance. this should remove circular references.
if you still have a circ or calculate, then you have an error elsewhere in the model that isn't due to interest (or just a wrong formula somewhere).
RE: Please clarify if any value is gained by buying back stock-1
In general, if markets are efficient and an asset is fairly priced, then there shouldn't be any excess returns at all and everything is a zero NPV project in theory. I usually say there are three reasons why a stock price should go up upon a share repurchase: (i) Financial / Mathematical: reduces sh... Read More
In general, if markets are efficient and an asset is fairly priced, then there shouldn't be any excess returns at all and everything is a zero NPV project in theory. I usually say there are three reasons why a stock price should go up upon a share repurchase: (i) Financial / Mathematical: reduces sh... Read More
RE: about LBO
It depends if you are buying more or less than 50% of the company. For instance, if less than 50%, this would be merely considered an equity investment and you, (the investor) would be considered the minority shareholder. Since you are asking the question in the context of an LBO it seems that yo... Read More
It depends if you are buying more or less than 50% of the company. For instance, if less than 50%, this would be merely considered an equity investment and you, (the investor) would be considered the minority shareholder. Since you are asking the question in the context of an LBO it seems that yo... Read More
RE: What do I do for beta of a company if there is no beta?
If there is no beta, use publicly traded competitors' beta! This is covered in our Corporate Valuation and Valuation (Trading Comps) classes. If a company has no beta, what are you regressing when you say regress the company's excess return to market? If a company has returns, then by definition the... Read More
If there is no beta, use publicly traded competitors' beta! This is covered in our Corporate Valuation and Valuation (Trading Comps) classes. If a company has no beta, what are you regressing when you say regress the company's excess return to market? If a company has returns, then by definition the... Read More
As long as we are talking Free Cash Flow to Firm! Your question seems to have a blend of Free Cash Flow to Firm and Free Cash Flow to Equity. We want unlevered cash flow, so your interest payments are out of there. Free Cash Flow to Equity, something we highly discourage use of, includes debt repaym... As long as we are talking Free Cash Flow to Firm!
Your question seems to have a blend of Free Cash Flow to Firm and Free Cash Flow to Equity.
We want unlevered cash flow, so your interest payments are out of there.
Free Cash Flow to Equity, something we highly discourage use of, includes debt repayments/borrowings, which you seemed to indicate is excluded.
From our Corporate Valuation classes, TEV (Total Enterprise Value) is correct numerator for items such as EBITDA and FCFF. Read More