Valuation Topics
Ask your valuation questions here! Feel free to copy/paste specific sections from filings as appropriate.
Questions/Discussions
Sort by Date ▼ / Top Rated
Register for free or log in at the top right of this page to join the discussion
Let’s say the latest net debt info you have is as of 12/31/07 10K.
But, we’re past 12/31/07. it’s already late February. The transaction would be likely to close on 6/30/08.
The question: should we assume a 12/31/07 valuation date in the DCF, because that’s what we have the net debt numbers for, to calculate an implied DCF equity value per share? But 12/31/07 has passed two months ago. OR can we assume a, say 6/30/08 valuation date, discount half of the 2008 cash flows (ie a stub period) to 6/30/08, BUT use the 12/31/07 net debt?
Which is the correct approach? Read More