Maybe we can get a thread going for all modeling questions?
For example,
In constructing a DCF for an ER report.......
Do most poeple reconsctruct the I/S and balance sheet from what's reported on SEC.GOV? All the templates i've seen online where high level........(I.e Sales, COGS, SG&A, EBIT, I, Tax, NI, etc)
| +197 | Americas M&A League Table Q2 Updated | 79 | 19m |
| +142 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 38 | 20h |
| +131 | Restructuring: Anti-climactic Experience | 34 | 1d |
| +101 | IB Net Worth / Savings Check | 47 | 8h |
| +90 | Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase | 24 | 10h |
| +75 | Stop sleeping on UBS - it’s pretty good | 24 | 14h |
| +51 | 2026 VAULT PRESTIGE RANKINGS | 29 | 1d |
| +39 | AI + Financial Modelling | 12 | 21h |
| +28 | Summer before college | 17 | 10h |
| +27 | Hardest interview experiences? | 16 | 19h |
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.
No need for balance sheet. Project out key income statement metrics, get down to EBIT, continue on to unlevered FCF.
Most of the time, if you can, use pro forma numbers given by management as GAAP regulations often will not give the best picture of earning potential, ie fresh start accounting etc. But getting pro forma numbers can be spotty sometimes it's just easier to use their 10Q's & K's
proforma working capital only.............
Right......I mean, i'm using these for a interview pitch, so management pro formas are hard to come by......
So it's normal to restate the IS for key items? What about BS? Leave as is?
basically.....does this work?
Can someone confirm if that is incorrect??
From there, I am unsure if I should project the BS from the SEC, or resate it like goog finance does....OR, if I should just project Working Cap/Cap ex.........
Discuss...............
If D&A isn't explicitly listed on the IS, it is typically embedded in COGS, so yes, you will want to get D&A from the CFS when doing your FCF calculation. Try to get your hands on some equity research for projections. If you can't get some, you can use historicals (adjusted for what you think might happen going forward) and project them out. If you really want to get precise you can project out a BS.
so if it's no explicit, do I NEED to add in D&A from the CF statement if I want EBITDA on my projected IS?
Yes. You only wouldn't add back D&A if 1) D&A is separate from COGS and 2) you were starting your calculation from Revenue, and subtracting COGS and SG&A. (Note: make sure you know where SBC is coming into play, typically SG&A, so you will want to add that back in.)
I've got a better idea. Download this book and read chapter 3: problem solved.
Investment Banking and Valuation by Rosenbaum & Pearl
Free link: http://ifile.it/b7x2if1/0470442204_Investment_Banking.rar
Unde omnis aut numquam ea officiis. Quidem ex dolorem porro ad. Tempore expedita soluta ut aut eum in quidem quis. Dolore dolorem nulla et fugit minus in aut ea. In voluptatum ipsa voluptas quos aut rerum. Error consequatur doloremque in incidunt vel eos dolor laudantium.
Quos omnis aut id similique ex magnam enim iure. Ab itaque sed ut odio id ipsa veritatis illo.
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...