Posts by: WST Expert 1
RE: Why does an LBO set the floor valuation?
LBOs set the floor valuation because in theory, anybody could buy another firm (in an M&A transaction) and make it highly levered but in such a deal, there would be 'synergies' and as such, if you do anything 'value added' on top of an LBO, one should extract additional value above and beyond a ... Read More
LBOs set the floor valuation because in theory, anybody could buy another firm (in an M&A transaction) and make it highly levered but in such a deal, there would be 'synergies' and as such, if you do anything 'value added' on top of an LBO, one should extract additional value above and beyond a ... Read More
RE: Complex Trading Comps Analysis: COST Inputs
3) Compare Face Value vs Mkt Value, correct. However, we believe we did explain in the video that if Face Value is very close to Mkt Value but still greater, we might decide to convert. The Face is $571, the Mkt Value if converted of stock, is $513, off by OVER 10%. We don't want to establish a thre... Read More
3) Compare Face Value vs Mkt Value, correct. However, we believe we did explain in the video that if Face Value is very close to Mkt Value but still greater, we might decide to convert. The Face is $571, the Mkt Value if converted of stock, is $513, off by OVER 10%. We don't want to establish a thre... Read More
Re: buyout of equity value?
Per valuation , you do start with TEV, and then subtract out Net Debt to get Implied Equity Value. This is because in an M&A transaction, you assume or refi the debt and as such, you are only physically buying the equity. In your example, the $500 of Equity Value is based on your valuation. Plea... Read More
Per valuation , you do start with TEV, and then subtract out Net Debt to get Implied Equity Value. This is because in an M&A transaction, you assume or refi the debt and as such, you are only physically buying the equity. In your example, the $500 of Equity Value is based on your valuation. Plea... Read More
RE: SUMIF problem
Many things are wrong with the formula. Do this - in a column all the way to the right, say U, do =month(A7) then copy that down to A21. Then at bottom, do =sumif(U7:U21,3,C7:C21). To avoid using a brand new column, you need SUM+IF array. It's complicated. See Advanced Excel for Data Analysis vi... Read More
Many things are wrong with the formula. Do this - in a column all the way to the right, say U, do =month(A7) then copy that down to A21. Then at bottom, do =sumif(U7:U21,3,C7:C21). To avoid using a brand new column, you need SUM+IF array. It's complicated. See Advanced Excel for Data Analysis vi... Read More
RE: AFM Core Model: pay down down with all excess cash
To set to sweep all cash out, change minimum cash balance to zero on the debt sweep.
To set to sweep all cash out, change minimum cash balance to zero on the debt sweep.
Re: Why use average (industry) beta?
As with trading comps, the idea is to value the target company (WMT in this case) based on your competitors - to see what WMT's implied value based on the market and comps. As such, to use WMT's beta is akin to using WMT's stock price and multiples. Therefore, we want to see "If WMT were valued... Read More
As with trading comps, the idea is to value the target company (WMT in this case) based on your competitors - to see what WMT's implied value based on the market and comps. As such, to use WMT's beta is akin to using WMT's stock price and multiples. Therefore, we want to see "If WMT were valued... Read More
RE: How do I move a row without the mouse?
After copying and going to where u want, u want to "insert copied cells". Thus right click using the right click button on the keyboard (next to alt on the bottom right) and hit "e". This inserts on top of your active cell. You must be on column A or highlight the row else excel says unequal size/sh... Read More
After copying and going to where u want, u want to "insert copied cells". Thus right click using the right click button on the keyboard (next to alt on the bottom right) and hit "e". This inserts on top of your active cell. You must be on column A or highlight the row else excel says unequal size/sh... Read More
RE: Tax rate
Correct. And as you stated, verify that is a good assmption. Clearly, companies in tax havens (i.e. insurance companies) wouldn't use the same 40% assumption.
Correct. And as you stated, verify that is a good assmption. Clearly, companies in tax havens (i.e. insurance companies) wouldn't use the same 40% assumption.
Re: Stock issued: calculated off Equity Value or EV?
Short Answer: New Stock Issued should be based off Transaction Equity Value. Long Answer: The Simple Merger Model was a more rudimentary construction. In the video lecture, we disclaimed that stock issued should indeed be based on Transaction Equity Value (in most cases) and not TEV. The reason is ... Read More
Short Answer: New Stock Issued should be based off Transaction Equity Value. Long Answer: The Simple Merger Model was a more rudimentary construction. In the video lecture, we disclaimed that stock issued should indeed be based on Transaction Equity Value (in most cases) and not TEV. The reason is ... Read More
No, the WST macros are yours to use forever. Look for updates on our website:
www.wallst-training.com and click on FREE RESOURCES
we constantly update our macros and make new versions available for free.