Working on a couple of pitches and was wondering what I should use for my EBITDA for my DCF terminal value. Advice was all over the place on whether I should use Adj. EBITDA because that's what the market was looking at vs. pure EBITDA (EBIT + D&A, literally nothing else, even though I've seen mgmt. add back interest or sbc). A bit confused and would appreciate some help!
| +150 | Senior Banker's Guide to IB Recruiting / Group Placement (with a Healthcare Bent) | 22 | 4h |
| +140 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 21 | 4h |
| +123 | Is pay at BofA really that bad? | 60 | 16h |
| +88 | Day at Macquarie | 12 | 16h |
| +44 | Is the life of a VP at a 'top-bank' really good? | 15 | 3d |
| +44 | How bad did I mess up | 10 | 22h |
| +31 | Misrepresented Houston IB | 14 | 1d |
| +29 | Law school instead of MBA for RX Banking | 6 | 20h |
| +29 | No BB RO 2026 | 10 | 2d |
| +28 | JPM SMALL CAP or WF/JEF/RBC Coverage group | 13 | 12h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
well, it does depends on what the adjustments are and how recurring those adjustments are. adjustments based on spin-off, cost restructurings or any off-events are fine to me. it gets problematic if those adjustments are recurring and been recognized for endless years. SBC is a cash expense and should be recognized as such.
the whole idea of a DCF is to calculate an intrinsic value and the output should not rely on inflated adj. ebitda.
maybe easier if you provide example. but generally, the more conservative you are with your assumptions, the easier it is to defend your assumption
Eos ab dolore ullam rerum soluta eum consequatur. Ipsum fugiat beatae enim ullam itaque vel. Voluptates doloribus repellendus sapiente et earum iure perferendis.
Illum sed esse maiores cumque dolor qui ut et. Neque nesciunt modi molestiae eos labore dolore. Soluta labore quo architecto dolor. Aperiam ea ratione unde delectus ut ex modi. At cumque nulla velit voluptatum est aut. Qui harum in veniam maiores.
Qui voluptatem perspiciatis eveniet in ad maiores incidunt. Qui incidunt et aut ea unde.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...