Posts by: WST Expert 1
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!
Re: Modeling 'Names' used in IB/PE - Question
Hi, Thanks for submitting your question. Generally speaking, it's more useful and practical to know how things work, not just their names! That said, the various types of models you'll encounter in finance are usually aptly named, and all are just that: models. Like you said, a valuation model can... Read More
Hi, Thanks for submitting your question. Generally speaking, it's more useful and practical to know how things work, not just their names! That said, the various types of models you'll encounter in finance are usually aptly named, and all are just that: models. Like you said, a valuation model can... Read More
RE: AFM Enhancements: Football Field PDF
Please see updated template file with the conditional formatting filled in for the credit ratios. You can view the conditional formatting statement for each cell by going to FORMAT=>CONDITIONAL FORMATTING. For more information on the basics of Conditional Formatting, see our Advanced Excel for D... Read More
Please see updated template file with the conditional formatting filled in for the credit ratios. You can view the conditional formatting statement for each cell by going to FORMAT=>CONDITIONAL FORMATTING. For more information on the basics of Conditional Formatting, see our Advanced Excel for D... Read More
Re: LBO of a public company
The #1 most common reason why models don't balance: Items on the BS that change from year to year aren't properly reflected on the CFS. TASK: confirm that EVERY BS account is correctly linked to the CFS TIP: confirm that you shouldn't be accidentally subtracting or adding the wrong way (i.e. dividen... Read More
The #1 most common reason why models don't balance: Items on the BS that change from year to year aren't properly reflected on the CFS. TASK: confirm that EVERY BS account is correctly linked to the CFS TIP: confirm that you shouldn't be accidentally subtracting or adding the wrong way (i.e. dividen... 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 ... 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 so it's not an accurate judge of the capital the company has received (or used) to build the company and its operations. If a company were to issue more stock, clearly they issue at the then current market price and so the book value is a blend of previous stock issuances. Also, in theory, if a company were to go down, there should be assets or collateral equal to Assets less Liabilities, or Book Value, and thus, measuring the company's ability to pay. Banks ultimately care about ability to pay and recoverability of their funds. Market Value doesn't provide that since it's too volatile and changes too frequently. And to caveat, we know the plenty of problems wrong with Book Value, hence, it is but only one ratio and metric analyzed in credit analysis. Read More