Enhancements to the Core Model - Part I

Last 10 posts

gordon growth number
Hi for the gordon growth number g say using global GDP growth rate of 2%, 1. has this already included inflation? 2. if yes, then you just add the global inflation rate? 3. If you were to include inflation, then does that mean you need to adjust your whole model (projection of 3 financial stat... Read More
Go to post added 6 years ago
DCF - can you project with a change in capital structure
Hi When pitching a stock for long/short funds: 1. Say the company has debt repayment schedule, in addition to using trading comps, I thought of using DCF as a sanity check or to extrapolate a few data points for valuation. Say the management announced debt repayment schedule in the next few yea... Read More
Go to post added 6 years ago
Projection of FX translation
I see that this was not projected, but if you were to project this, how would you do that & where is the impact on the 3 financial statements?
Go to post added 6 years ago
Capital Leases, and other scenarios
1. Why capital leases are not included in the total debt figure? Why operating leases are not included in interest expense ratios and debt ratios? 2. When you encounter that Total Debt/Total Capitalization is lower than the company's target ratio, will we see a spreadsheet in a different module t... Read More
Go to post added 6 years ago
DCF Analysis: Using Tax-Effected EBIT as Perpetuity in the Perpetuity Growth Method (PGM) to calculate Terminal Value
I have recently purchased Packages 3, 4, 5, 6, Private Company Valuation, and Super-Complex M&A LBO Modeling self-study courses to refresh my skill-sets. FYI, I have been an M&A investment banker and senior Corporate Development professional for many years. In my experience with DCF Analysis, t... Read More
Go to post added 7 years ago
Selecting non-adjacent cells in Excel using only the keyboard
1) Select the first cell or group of cells. Press F8, then press shift F8. The cells should become highlighted. 2) Navigate to the next cell or group of cells. Highlight them, press F8 and shift F8. 3) Repeat as necessary.
Go to post added 8 years ago
AFM Enhancements: Valuation Question
My name is Jennifer Shi, a colleague of Nadia Sandi. We work in International Finance Corporation of the World Bank. We are currently reviewing the training modules. I have a real life valuation question. Appreciate your guidance. We are using DCF to value an existing equity investment. T... Read More
Go to post added 10 years ago
AFM Enhancements: Valuation of negative earnings
What if we must value a company with a 5 year projected cash flows with the first two FCFF being negative?
Go to post added 10 years ago
AFM Enhancements: Diluted Shares Oustanding figure
Hi there, Wouldn't be more accurate to calculate the "Implied Price per Share" by using the "Intrinsic value" from our valuation model as an input to the MAX function to calculate the potential dilution through the Treasury Stock method? And if I want to consider our "intrinsic value", how can I ... Read More
Go to post added 10 years ago
DCF analysis: net debt should be actual not est
Package 3 Advanced Financial Modeling DCF Analysis Regarding the debt & cash calcs, I believe cell A42 footnote (in the excel template) should say 1/31/2006 (= Actual 2005) – if so, is this a typo? Currently, the footnote states 1/31/2005 (= Actual 2004). In the 2005 diluted shares calc,... Read More
Go to post added 10 years ago