AVP

Hi there,

Wanna ask what does AVP analysis means and what is the use of it?... I'm guessing that it has to do with the suitability of which multiples / metrics to use in valuations?

Thanks

16 Comments
 
jackofalltradesWhoever wins... We lose.

LOL! I needed that.

People like Coldplay and voted for the Nazis, you can't trust people Jeremy
 

okay well APV is basically a valuation method, where it isused to find the unlevered value of the firm by discounting the cash flows with the unlevered return to equity (CAPM with unlevered beta) then adding the present value of the debt tax shield to arrive to firm value. DTS will equal to (tDRd)/Rd if you want to view it as a present value of perpetuity

 

Hi all, on the same topic, I am an undergrad student interviewing at Cit for their ICG CVA program but it has the title AVP next to it, which I don't really understand what it means. If anyone here can shed some light on this for me I'd appreciate it. Thanks

 
Best Response
GundamfungHi there,

Wanna ask what does AVP analysis means and what is the use of it?... I'm guessing that it has to do with the suitability of which multiples / metrics to use in valuations?

Thanks

APV is an alternative cash flow discounting methodology using cost of equity, and allowing you to account for changing capital structure over time.

You may be referring to an "AVP" page, which refers to an Analysis at Various Prices.

It is simply a page that illustrates what various purchase prices imply from a premium and multiples valuation basis.

For example across the top might be stock prices from $20 to $35 in $3 increments

Below that you might show for each of those prices:

Premium to market

FD shares out Equity Value Cash Debt' FV

Multiples FV/Rev FV/EBITDA FV/EBIT

EV/Net inc.

Summary acc/(dil) w/synergies

 

AVP is an analysis at various prices... i dont think he was referring to the adjusted present value valuation method.

 

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