Hi,
I'm trying to set up a simple DCF in Exel but get constantly a REF-error in my calculations for fully diluted shares (although I've allowed iterative calculations). In fact, I just tried to replicate an example from a textbook. Can someone help me out and spot the mistake?
| +137 | UBS Catastrophic Q1-Q3 26, M&A -17%, Outside Top 10 in Americas, EMEA & APAC | 37 | 1d |
| +59 | PWP acquisition by Piper cancelled | 22 | 1h |
| +29 | Evercore poaches Baird DC Defense Team | 18 | 6h |
| +28 | Houston banking Gods ? | 16 | 2d |
| +21 | Best Houston Banks for Culture in 2026 | 14 | 3h |
| +18 | Normal for lateral process to go +2 months? | 4 | 1d |
| +17 | Lack of talent in IB! | 19 | 1h |
| +17 | Internal lateral from coverage to M&A (focused on coverage) | 4 | 15h |
| +15 | How standard is weekend work in IBD? | 6 | 2d |
| +15 | Discussion Transaction Experience in Lateral Interviews | 3 | 3d |
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.
removed
anybody
D28 is dependent on the results from F17 but to get the result in F17 you need a result for D28, it becomes a circular argument that cant be solved.
But this is pretty muchcopied from their approach. How would I have to link it instead?
Someone else with experience of modelling this would be better placed to answer, I'm just an excel jockey. Also none of the above should lead to a #REF! result, this can only happen if you've deleted a cell or cell/range name.
Use the current share price, not the implied share price, to calculate the ITM options.
hominem's comment should fix it.
For cases where a model is supposed to use circular references (interest expense on debt, financing fees for debt raise, etc) you can build in a circ switch. Designate any cell as your "switch". The switch will either have value 0 or value 1.
In the portion of the model that is circular, write the following formula: =if(A1,desired calculation,0) where A1 is your switch cell. Because A1 is boolean, you can just say =if(A1, ...), you don't need to specify =if(A1=1, ...). To make things easier, you can assign name "circ" to cell A1 using the name manager in the formula tab in excel. Then your formula is simply =if(circ,desired calc,0).
While building the model, you can keep switch on 1 (for more complex models I would suggest keeping switch at 0 for ease of auditing). To fix a #REF error from circularity, just flip switch from 1 to 0 and back to 1. Happy modeling.
No, they employed the implied share price.
Temporibus velit blanditiis occaecati quas fugiat mollitia ex. Repellendus in dolor suscipit.
Amet ab cum quis fuga accusantium. Aperiam accusamus sit quo rerum itaque dignissimos amet. Qui rerum ea odio id. Vero aliquam unde corrupti ut quas quis. Quod rerum et sit qui. Inventore magni fuga omnis nam.
Aliquid quis eos corrupti. Animi nostrum ut fuga debitis. Ut ipsam dignissimos ratione et quo. Eius quasi quaerat est voluptas et eveniet.
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...