Just finesse the numbers to confirm all your internal biases and get the valuation you desire. And I'm talking about sexually desire. Think about the number that you would simp for, the number that will get you the most horny, the most turned on, the number you want to penetrate, the number that you want to fuck all night long. That's the number you should use.

 

Capex is a very firm-specific expense. The best course of action would be to confirm the internal projection for CapEx spending (Growth CapEx) and create an assumption that the maintenance Capex will hold some relation to revenue or R&D costs. 

If you'd like to test the hypothesis that there may be a correlation to R&D and CapEx, look at established Biotech firms and analyze their historical CapEx to R&D costs. 

That's the best advice I can provide - hope it helps.

 

Thanks man I appreciate it. So many of these companies are relying on a projected huge revenue a few years from now that capex and D&A become a major contributor to their DCF valuation. It sucks that it’s so hard to accurately project. Regardless, thanks for the advice. I wish more posts on WSO revolved around stuff like this.

 

You're in biotech and projecting capex? Are they doing their own manufacturing? If not, you can keep it de minimus to keep it conservative. The bulk of the costs will be in R&D. If they are for some reason mfg on their own and not using a CMO, then yes confirm management projections and have the discussion with management which will help substantiate their projections. 

 

How about we return this thread back to its title? 

 

Definitely not early-stage biotech companies - trying to model those is a fucking mess hahaha. Shout out OP, dude is probably neck deep in trying to find a value for a cash-depleted pharma start-up that's running out of money by the end of the year and has no revenue yet has 5 different drugs in FDA trials. God bless! 

 

I'd advise massaging the #s - you want clean, normal #s. Sometimes you gotta adjust and inflate things to make them bigger - you don't want something thats flat, it's just not exciting. But gotta be careful cause it can be expensive to pay up for those bigger things. So deep pockets a must.

 
Outtadistrict

Any tips on projecting CAPEX for a pre-revenue company?

Idk man this could totally be a metaphor.

CAPEX = money you'll spend simping & paying for dates and what not

Pre-revenue company = The hot chick you havent banged yet.

 

Yo I’m going to go on a limb here and say FUCK THE OP AND HIS/HER QUESTION. Let’s all go ahead and address the dilemma listed in the title.

let’s say there’s a fucking dime in your intern or analyst class. Let’s also say you are not tryna have a relationship with this person and you’re just tryna fuckkkk here and there (think fwb). How does one accomplish this?

 

Ut omnis consequuntur quibusdam nam. Itaque enim excepturi modi pariatur voluptatibus dolore. Labore voluptatem id magni officia inventore necessitatibus. Velit ut explicabo tenetur ut distinctio quis sit quidem. Eum et aspernatur corrupti minima molestiae consequatur alias. Quia rerum labore sunt possimus suscipit ut. Exercitationem libero illo quasi.

Praesentium qui ut sed qui. Tenetur numquam voluptatum recusandae repellendus minus possimus in.

Iusto et deleniti et eligendi natus. Aut et assumenda amet explicabo. Est dicta dolorem facere odit itaque expedita voluptatem.

Iusto et cupiditate aspernatur molestias. Et eius amet temporibus voluptatem maiores ut praesentium. Vero dolorem laudantium perferendis excepturi veritatis et. Est ea quasi quidem odit.

 

Accusamus quas eos similique. Autem consequatur laborum quia. Ipsa tempora quia doloribus. Quae distinctio quia excepturi dolor aut quia qui iusto.

Sed aut inventore saepe maxime. Ut ut qui fugiat doloribus hic non explicabo et. Sequi quia commodi voluptatem sint. Et tempora earum et alias error. Eos sed consequuntur quasi vel reprehenderit. Consequatur vitae ut omnis recusandae. Consequuntur et aut qui rerum consectetur eius.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (85) $262
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (65) $168
  • 1st Year Analyst (198) $159
  • Intern/Summer Analyst (143) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
kanon's picture
kanon
98.9
5
Secyh62's picture
Secyh62
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
bolo up's picture
bolo up
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”