Posts by: WST Expert 1
Re: Accounting Bootcamp- Short term debt CFO or CFF
Great question! To help clarify, when we think of working capital (changes in CA and CL) they are ONLY operating related activities NOT financing related. As such, changes in any debt related items (under US GAAP) will definitely fall under CFF as opposed to CFO. Think of it this way - anything that... Read More
Great question! To help clarify, when we think of working capital (changes in CA and CL) they are ONLY operating related activities NOT financing related. As such, changes in any debt related items (under US GAAP) will definitely fall under CFF as opposed to CFO. Think of it this way - anything that... Read More
RE: Private Company M&A and LBO adjustments
The ramifications for a private company vs a public company are very similar - the major difference is that there is no EPS and Shares Outstanding. Thus, to "fudge it", you could assume that there is one Share Outstanding or, better yet, to be more precise, you would use Net Income => so instead ... Read More
The ramifications for a private company vs a public company are very similar - the major difference is that there is no EPS and Shares Outstanding. Thus, to "fudge it", you could assume that there is one Share Outstanding or, better yet, to be more precise, you would use Net Income => so instead ... Read More
RE: Corporate Valuation: Diluted Shares Outstanding
The idea is that as the implied stock price increases, each option is also worth more and so the number of implied options also increases. Since the implied equity value and stock price is never the same in the sensitivity analysis, that explains the different diluted options outstanding.
The idea is that as the implied stock price increases, each option is also worth more and so the number of implied options also increases. Since the implied equity value and stock price is never the same in the sensitivity analysis, that explains the different diluted options outstanding.
RE: Trading Comps overview class
As stated in our video courses, adjust when you feel it is one-time, non-recurring. This is the SUBJECTIVE part of valuation! See our previous response to your JCP inputs post.
As stated in our video courses, adjust when you feel it is one-time, non-recurring. This is the SUBJECTIVE part of valuation! See our previous response to your JCP inputs post.
Re: Automatically Importing Formatted Data
this is covered in our Advanced Excel for Data Analysis class. First module in fact!
use this function:
=datevalue( )
that will convert to dates. then copy paste as value, reformat using WST macros to proper date formatting. you all set.
this is covered in our Advanced Excel for Data Analysis class. First module in fact!
use this function:
=datevalue( )
that will convert to dates. then copy paste as value, reformat using WST macros to proper date formatting. you all set.
RE: How to set up Sources & Uses for <100% LBO?
Yes and no. If less than 100% (assuming greater than 50&) then sources and uses should match true in and outflow of $$ by "grossing it up" the way you described, you are effectively creating a "fake" transaction. You are not technically incorrect (hence the "yes") but we wouldn't consider that a... Read More
Yes and no. If less than 100% (assuming greater than 50&) then sources and uses should match true in and outflow of $$ by "grossing it up" the way you described, you are effectively creating a "fake" transaction. You are not technically incorrect (hence the "yes") but we wouldn't consider that a... Read More
RE: Interest expense on Converts
Good point. However, since our Comps input model requires separate inputs, the Net Income and EPS don't flow through. We are independently calculating Equity Value and Enterprise Value (TEV) and since TEV doesn't involve Net Income, no adjustment required. We don't calculate Equity Value / Net Incom... Read More
Good point. However, since our Comps input model requires separate inputs, the Net Income and EPS don't flow through. We are independently calculating Equity Value and Enterprise Value (TEV) and since TEV doesn't involve Net Income, no adjustment required. We don't calculate Equity Value / Net Incom... Read More
Re: Excel's Automatic Filters
per your other similar post, use DATEVALUE function to convert to dates!
per your other similar post, use DATEVALUE function to convert to dates!
Re: Accounting Bootcamp- Short term debt CFO or CFF
No worries! We are here for you!
No worries! We are here for you!
1) You helped our argument for us - because this is subjective, you CANNOT introduce (well we'll try not to introduce) subjectivity. Who is to argue what direction the stock price will take? WMT's stock price was in a $45-$50 band for 8 years, so who's to say that suddenly COST or anyone's stock pri... 1) You helped our argument for us - because this is subjective, you CANNOT introduce (well we'll try not to introduce) subjectivity. Who is to argue what direction the stock price will take? WMT's stock price was in a $45-$50 band for 8 years, so who's to say that suddenly COST or anyone's stock price HAS to go up in 11 years? Thus a rationale investor WILL NOT convert if the convert deadline was tomorrow or next week b/c they can hold onto the converts and get the full par value back. So then who's to decide a week is long enough for the stock price to go up 15% or whatever the breakeven par value is based on the stock price as of the analysis? Then this wonderful current so-called recession hits and COST drops 20% in one day. That's subjectivity - b/c there is no guideline or rather, investors have different risk tolerances and thus, you cannot make a decision (rather, we'd like you not to) based on something that is different for everyone.
2) These happen to be zero-coupon, heavily discounted converts which further complicates the issue. Normally, if these are just regular (as in interest paying) converts, then you are correct to the above question - convert! but they aren't and they can convert to a higher amount in the future.
3) Do exactly what we outlined in the videos - we don't want to repeat it here again.
4) Do exactly what we outlined in the videos - we don't want to repeat it here again.
5) Book value of Equit yshould be increased by the market value of the equivalent number of shares x current stock price b/c that is the ACTUAL amount of capital.
6) Nope, doesn't apply here. Good analogy though! It doesn't apply b/c the options don't have a future value attached to them the way the Zero-Coupon converts do (see above answers). Read More