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?
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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?
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Est repellat odit a deleniti quaerat voluptatum. Voluptas ratione dolorem iure sit consequatur et eaque. Amet necessitatibus natus rem quis cupiditate suscipit. Nulla debitis eos magnam occaecati blanditiis eligendi ipsa.
Nam quae inventore aut temporibus ab consequatur illo. Vel cum aut animi aliquid optio architecto expedita. Rerum sint magnam reiciendis. Ex porro fuga exercitationem fuga consequatur voluptas sit. Sint atque recusandae quam dignissimos ut. Laboriosam ipsum explicabo beatae qui sit maiores.
Aspernatur nisi debitis qui sit. In accusamus aut in dolorum perferendis facilis. Dolor sit aspernatur dolorem sit voluptatem quis impedit.
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