Exel dcf

there's a few things wrong there. 1) tax row 9 is referenced to a rate in $C$9. Change it to $B$8 2) Cell B32 references E26 while B33 references H26. You won't get an error while E26 and H26 are the same but it will if you change them. Better to incorporate a separate perpetuity growth rate. 3) Cell B35 only discounts the TV back one year. You need to bring it back to today so change the formula in the cell to =B34/((1+D17)^5) 4) Cell B38 references to the undiscounted TV. Change the formula to =D19+B35 5) Change cell D23 to units rather than dollars.

Making these changes gets you the right Enterprise Value ($525), Equity Value ($426) and per share valuation ($1.42).

did I just do your homework for you?

no, it was from the Training the Street training. i'm learning the concepts...

i will look at the model sometime later today. thanks in advance.

...so I did do your homework......grrrrrr.....

I don't see why people take those classes, just get some books on DCF and whatever other model you want to learn and do that. Their really not that hard to learn with some effort.

but for anybody else contemplating blowing $200 (or more) on some pa (personal account) training, do yourself a favour and use this website instead.

http://pages.stern.nyu.edu/~adamodar/

Then buy this book (I'm sure you'll be able to find it cheaper) and read it. http://www.amazon.com/Investment-Valuation-2nd-University-Set/dp/047128…

If that's too much for you to spend, download it here. Then consider a donation to charity once you have a paying job. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/valn2ed/book.htm

While I understand that reading a book can help me learning modeling/financial analysis, do you believe that a Training-the-Street program holds more "brand recognition" with banks (if looking for an analyst role) and the interative e-learning programs are better and worth the $200 investment?

Reading the book and understanding the concepts will take longer and will be harder work but speaks volumes about your commitment. With a book, you force yourself to understand what is going on before you are able to move onto the next stage. If you don't then you it becomes gibberish and you stop reading.

Why was I able to take the model apart in a couple of minutes? It's because I fully understand the concepts, the structure, the inputs and the outputs. It's the whole teach a man to fish rather than giving him a fish argument.

What does having "completed Training the Street program" say about you on your CV? To me it says "doesn't think his/her background stacks up and has done this to compensate" (and has $200 to spare). The financial markets don't like desperate and needy.

On the other hand, saying "Because I do not have a background in finance, I have studied Domodaran in my spare time to become fully conversant with valuation methodologies" would interest me - it says self-starter and motivated. As long as the rest of your CV stacked up, I'd get you in for an interview. Of course, you'd then have to be able to back up this claim.

As for brand recognition, Damodaran is the daddy.

i'm curious why your handle is John Mack? Why not Stan Oneal or Charles Prince?