Are these line items important in valuation?
Hey guys,
I am having some trouble doing an ops model due to a few line items. I did a search already but I really want your insight from an ER perspective since details are important.
1. Deferred tax assets/liabilities
I don't have a problem understanding them conceptually but I find it hard to obtain necessary info to forecast the next 2-3 years. If they make up less than 5% of total assets/liabilities do you just make it constant? What's the approach used in ER?
2.Goodwill and intangible assets
Do you leave goodwill constant since you can't forecast acquisitions? For intangible assets in specific sectors (e.g. healthcare, IT), how do you go about valuing this + the amortization?
3. Debt and common stock
Unless the 10k specifically states the debt over the next few years, how are you meant to forecast the debt (LT + ST)? For common stocks you wouldn't know about buybacks and SEOs down the line. Is the appropriate thing here to leave it constant and modelling scenarios for sense check?
Hope you can point me in the right direction!
Thanks
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