Stub Period in Comp Analysis
I've been given a comp analysis model to complete for Foot Locker due by Friday, and the quality of my model is contigent on an internship :0
I'm confused with the stub period calculation in the model. FL reports 2016 results this Friday, but I can't wait until then and am inputing financial data from the past 3 Qs. The model has these columns in a row: 2015A | Prior Stub | Current Stub | LTM
The LTM calculation is as follows: 2015A + Current Stub - Prior Stub
What Quarters do I put in for prior and current stub?
LTM = 2015A + Q3 2016A - Q3 2015A
Thank you
Use Cap IQ
Stub Period (Originally Posted: 08/21/2012)
Hi all,
Stub period income, cash flow and balance sheet; are they required for an LBO modelling test (2/3hrs)? It shouldn't make a difference on an IRR calc (assuming you're using XIRR, the right dates, and no dividends), and can generally be an arse to get right first time on the BS / CF, so i'm siding with not bothering..
Cheers
Just remember that you're going LTM from the transaction horizon to establish your transaction EBITDA and you should be fine. XIRR takes care of the rest.
Stub period across two fiscal years? (Originally Posted: 12/09/2012)
How does one set up a model like this? Let's say my LTM is 9/30/2012 and my transaction is slated to close 3/31/2013, with fiscal year ending 12/31/2012. Does my income statement look like 2010A, 2011A, LTM A, 2012E, Stub, 2013E? What am I using as the "before" for PF balance sheet adjustments? What is my CF statement looking like?
Do I just project 2012 #s and use that as my basis for the rest of the model (i.e. make pro-forma adjustments to a projected 2012 balance sheet?) I'm guessing that also probably makes it easy to adjust once 2012 #s are known?
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