When doing a DCF for a company with an April 30 fiscal year end, and applying the mid-year convention, what would the discount period be (given that it's currently February)?
| +209 | Downfall of Qatalyst | 41 | 1h |
| +166 | UBS IB 26Q2 a Disaster! Advisory Revenue Down 23%, Capital MarketsDown 5% | 22 | 2d |
| +109 | UBS Americas IB: The Kids’ Table of Wall Street | 14 | 10m |
| +81 | Lincoln International Return Offers | 42 | 21h |
| +50 | so confused about 28 SA timeline | 27 | 5d |
| +44 | London IB BB is a challenge | 28 | 1d |
| +36 | momentum of Rx groups | 11 | 22h |
| +35 | Fired during interview | 6 | 1h |
| +33 | [WSO MODS] Please Delete This BS Host Books Spam! | 2 | 4d |
| +22 | Associate 3 in ECM - Worth Moving to Broader Advisory? | 8 | 1d |
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.
Are you projecting cash flows for the next 5 years?
FY2013E (Apr 2013) thru FY2017P
I would think you would discount it, using .625, 1.625, 2.625, 3.625 periods, which would give you the PV of cash flows discounted to Feb.;
Here's why: You have the norm mid year periods of .5 (2014), 1.5 ('15), 2.5 ('16), 3.5 (2017), which will discount back to April of this year. Now, I'm not sure when you using the mid-year convention if we would do it this way, but since feb to april is ~3 months, it would be an addition of .125, since .25 would be 3 months and since the cash if building up 'during' the 3 months (feb-april), the period would be .125 -- add that to your norm periods and you get the aforementioned periods.
Not sure if this would be correct, so if anyone else more experience can comment, that'd be great.
Also, this would be from beginning of Feb. to April 30th (3 months), so just adjust for today's date or whatever your valuation date is.
Calendarize in case you have to compare multiples later dude, best practices
Cupiditate id pariatur vitae voluptas aut temporibus unde. Quia iusto non modi totam soluta odit. Et ab et quia. Perferendis maiores eos voluptatem aut aut totam.
Corrupti tempore sit quisquam autem at qui. Est at adipisci quia magnam alias eaque accusantium ducimus. Mollitia est consequatur magni autem illum sunt est ut. Error quo dolores mollitia assumenda voluptatem. Beatae sed natus omnis.
Aut totam similique minus omnis quis labore sint. Consectetur excepturi quia ut ut. Odio sed cumque eum occaecati iste ipsum accusamus. Consequatur quas alias dolorum hic perferendis autem id.
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...