and what you intend to do on your liquidation if you don't know how to value to business, value each brick for scrap? land value (back to square one)?
"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
and what you intend to do on your liquidation if you don't know how to value ...
Personally, this is my opinion. Don't overthink it, your goal is to value the asset(s) first and foremost. If it were me, I would run a DCF. I have heard of loan-to-own models floating around out there, though.
Doesn't the valuation depend on the potential outcome? A debt for equtiy swap is just one outcome which would comprise a DCF or any other valuation of the properties (or portfolio) per se. Correct me if I am wrong.
Doesn't the valuation depend on the potential outcome? A debt for equtiy swap is just one outcome which would comprise a DCF or any other valuation of the properties (or portfolio) per se. Correct me if I am wrong.
Very wrong.
Why would the capital structure alter the outcome of the DCF, assuming constant WACC? Note: we're valuing the asset, not the security here.
"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
the topic actually is " Distressed Real Estate Debt Valuation Methods". I was thinking about valuing the security.
Valuing the asset is part of the valuing the security.
for valuing the security, as said, I thought of:
- DCF primarily
- what about multiples (recent transactions) if available
- what about cost approach?
Vero cumque autem molestiae ipsam et eius. Sit temporibus dolores quia ut praesentium eveniet. Quia asperiores sint esse sit sunt iusto. Mollitia sunt suscipit saepe ad dolor quis eius. Et provident voluptate reiciendis et et nisi 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)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
errr...comps / cap rates ?
and what you intend to do on your liquidation if you don't know how to value to business, value each brick for scrap? land value (back to square one)?
+1 on this.. I think it would be interesting to learn about if anyone has some knowledge to drop.
Doesn't the valuation depend on the potential outcome? A debt for equtiy swap is just one outcome which would comprise a DCF or any other valuation of the properties (or portfolio) per se. Correct me if I am wrong.
Why would the capital structure alter the outcome of the DCF, assuming constant WACC? Note: we're valuing the asset, not the security here.
the topic actually is " Distressed Real Estate Debt Valuation Methods". I was thinking about valuing the security.
Valuing the asset is part of the valuing the security. for valuing the security, as said, I thought of: - DCF primarily - what about multiples (recent transactions) if available - what about cost approach?
Search "Modelling a Portfolio of Non-Performing Loans" in the search toolbar. Yes, modeling is spelled wrong.
You can't value the security if you don't value the asset. I mean cmon.
Use a DCF, stress vacancy/exit cap rate/discount rate/capex and see where you get comfortable; where is the margin of safety?
Vero cumque autem molestiae ipsam et eius. Sit temporibus dolores quia ut praesentium eveniet. Quia asperiores sint esse sit sunt iusto. Mollitia sunt suscipit saepe ad dolor quis eius. Et provident voluptate reiciendis et et nisi 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...