Posts by: WST Expert 1
Re: Urgent: Automating Scorecard Metrics grading
also, please post in correct topic forum. thanks!
also, please post in correct topic forum. thanks!
Re: TEV and negative net debt clarification
You are confusing the concept of Equity Value/Enterprise Value with DCF. WACC is used in the DCF because it is discounting cash flows to the entire firm (vs cost of equity and Equity Value). Once you arrive at your DCF value (TEV as of today), you're done with DCF. No more reference to WACC. Then... Read More
You are confusing the concept of Equity Value/Enterprise Value with DCF. WACC is used in the DCF because it is discounting cash flows to the entire firm (vs cost of equity and Equity Value). Once you arrive at your DCF value (TEV as of today), you're done with DCF. No more reference to WACC. Then... Read More
RE: AFM Enhancements: book value of equity to calc total capital
These ratios are standard ratios in a credit context, determined by the banks (lending institutions) and rating agencies. The idea here is that you are attempting to capture "liquidation value" of sorts and thus, book value is used not market value. The company doesn't actually receive market value ... Read More
These ratios are standard ratios in a credit context, determined by the banks (lending institutions) and rating agencies. The idea here is that you are attempting to capture "liquidation value" of sorts and thus, book value is used not market value. The company doesn't actually receive market value ... Read More
Re: Merger modeling - Merger BS
You are correct in noting the difference between Tangible Book Value as just subtracting out GW or Intangibles. For more info, search our topics in our M&A and LBO question forums. Since Target didn't have GW or Intangibles, we were calculating the marginal change. On Merger Summary G41, we jus... Read More
You are correct in noting the difference between Tangible Book Value as just subtracting out GW or Intangibles. For more info, search our topics in our M&A and LBO question forums. Since Target didn't have GW or Intangibles, we were calculating the marginal change. On Merger Summary G41, we jus... Read More
Re: Package 3 - Advanced Financial Modeling - DCF analysis quest
You are correct.
It should say Jan 31, 2006.
Basically, normally our models say "as of Dec 31, Year 0", hence the -1.
We messed up (don't do this on the job!) and forgot to properly update it.
To fix this, please delete the -1 in the formula in cell A42.
You are correct.
It should say Jan 31, 2006.
Basically, normally our models say "as of Dec 31, Year 0", hence the -1.
We messed up (don't do this on the job!) and forgot to properly update it.
To fix this, please delete the -1 in the formula in cell A42.
Re: Building IS for DCF Model
Yes, that is correct. Because of the one-time items that exist for PEP, you will not match to the historical (un-adjusted) 10K figures.
Yes, that is correct. Because of the one-time items that exist for PEP, you will not match to the historical (un-adjusted) 10K figures.
RE: AFM Enhancements: Capitalization calculations
1) In our Corporate Valuation online course we explain that Minority Interest is a source of capital for valuation purposes due to consolidation rules. However, for credit purposes, it is not a form of "actual" debt, which roughly is defined as interest-bearing, negotiated securities and so the bank... Read More
1) In our Corporate Valuation online course we explain that Minority Interest is a source of capital for valuation purposes due to consolidation rules. However, for credit purposes, it is not a form of "actual" debt, which roughly is defined as interest-bearing, negotiated securities and so the bank... Read More
Re: Vlookup Formula - Convert Text Input to Numerical Score
1) vlookup(cell_reference_that_contains_text, cell_reference_of_table,2,0) per our vlookup module on our Advanced Excel for Data Analysis class, the last zero is for exact match. 2) your last post asked a similar question. NO nested if's under any circumstance. period. there is no such thing as a &... Read More
1) vlookup(cell_reference_that_contains_text, cell_reference_of_table,2,0) per our vlookup module on our Advanced Excel for Data Analysis class, the last zero is for exact match. 2) your last post asked a similar question. NO nested if's under any circumstance. period. there is no such thing as a &... Read More
Re: TEV and negative net debt clarification
I appreciate your prompt and thorough repsonse!
I appreciate your prompt and thorough repsonse!
1) You could definitely. However, since we were clear in making sure the term on Merger Summary is greater than the length of the 5 yr model, then we didn't bother. On a real deal, you would also have 1st yr debt financing fees and differences of Book and Tax depreciation. 2) Assuming you are takin... 1) You could definitely. However, since we were clear in making sure the term on Merger Summary is greater than the length of the 5 yr model, then we didn't bother. On a real deal, you would also have 1st yr debt financing fees and differences of Book and Tax depreciation.
2) Assuming you are taking about row 41 of Merger IS, we did update EBITDA to include. For instance, in F41 (which gets Ctrl+r'ed), it is:
=F32+F49+SUM(F25:F28)
3) Yes you are correct. To be consistent which our prior models and classes, one should NOT include amortization of trx debt financing fees in our EBITDA. Thank you for pointing that out. Read More