1. Search Results

  2. ER is dead so I'll try this forum...need some guidance regarding splitting weight for DCF/Comps valuation

    TL;DR- tried tweaking DCF to make it more optimistic but cannot honestly justify tweaks. Resorting to arriving at target share price with DCF /Comps weight- don't know how to justify/explain my decision for 60% DCF 40% Comps. Need some guidance. Disc ...

    22 comments - 3 silver bananas - Oct 31 2018 - 6:30pm -

  3. DCF Multiples method

    I don't conceptually understand the multiple method. What does it mean to "assign a ratio such as EV / EBITDA from a comparable company to determine the terminal value". I think the wording is confusing me. Can someone give me an example? L ...

    21 comments - 3 silver bananas - Aug 6 2018 - 11:02am -

  4. How to Get to ARGUS Certification?

    Now that there's a dedicated RE forum I feel like we should have an Argus thread. Argus website here: Argus Software I've talked to a few people in the industry over the past week and they have stressed how important an Argus certification will ...

    75 comments - 0 silver bananas - Feb 11 2018 - 12:26pm -

  5. What is something productive to learn while in high school? (Financial modeling)

    I am bored, and I would like to play around with financial modeling. I found some great powerpoints and videos on DCF and DCF analysis, but I would like to know what else I could be learning in my free time. Links or suggested resources would be greatly a ...

    80 comments - 0 silver bananas - Apr 30 2015 - 4:52pm -

  6. Investment Banking Interview: Walk me through a DCF

    1.) Project FCF for a certain period of time: EBIT(1-tax rate)+D &A- change in networking captial- cap ex 2.) Project cash flows beyond that period. Need a terminal value. Use a growth model or multiple. I would use the EBITDA multiple. 3.) Now, disco ...

    70 comments - 3 silver bananas - Nov 14 2017 - 6:32pm -

  7. Notes for Technical Interview Questions

    During a recent round of interviews with several banks, headhunters sent across a number of potential technical questions that they said I should be very comfortable with. However, through all of my interviews I was never actually asked any technical ques ...

    45 comments - 68 silver bananas - Jul 11 2015 - 3:54am -

  8. Does unlevered cash flow exclude interest?

    I've read two different interview guides (MI & WSO). One says Unlevered cash flow includes interest and the other say it excludes. which one is it? Unlevered Cash Flow The short answer is no, unlevered cash flow does not include interest. The nam ...

    39 comments - 0 silver bananas - Feb 13 2018 - 6:51pm -

  9. Help Building DCF Model

    I'm currently trying to build my own DCF model. I've studied the Rosenbaum format as laid out in his Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions. Does anyone have any excel files of DCF models they've ma ...

    49 comments - 2 silver bananas - Mar 29 2016 - 6:51am -

  10. How Tax Rate affects Enterprise Value (EV)

    Hi all, I have some questions on an undying topic that's continuously discussed on the street: how tax rate affects EV valuation of companies. Some people argue it's positively correlated to EV while others argue it's the opposite. Based on ...

    24 comments - 1 silver bananas - Sep 9 2016 - 2:23pm -

  11. DCF Myth 1: If you have a D(discount rate) and a CF (cash flow), you have a DCF!

    Mod Note (Andy)- as the year comes to an end we're reposting the top discussions from 2015, this one ranks #35 and was originally posted 2/24/2015. Earlier this year, I started my series on discounted cash flow valuations (DCF) with a post that liste ...

    19 comments - 20 silver bananas - Dec 25 2015 - 11:17am -

  12. Model from scratch?

    What does building a model from scratch mean? does it mean opening up a blank piece of excel sheet and inputting everything, including account titles and formatting? I'm taking a course on financial modleling, and feel like the latter is extremely ha ...

    28 comments - 0 silver bananas - Apr 11 2017 - 7:58pm -

  13. Oil and Gas Valuation

    How do you do a DCF valution of a small cap Oil and Gas E&P company? What parameters do we use to predict future growth? dcf oil and gas ...

    25 comments - 0 silver bananas - Feb 26 2017 - 10:03pm -

  14. How to DCF like a rock star

    Interning in IBD? Here are the steps to running a DCF like a seasoned analyst. 1: Build out a basic DCF template and enter what data you know for sure. 2: Have your associate get a sense from the senior guys as to what final number will make the deal work ...

    25 comments - 3 silver bananas - Jul 13 2012 - 12:45pm -

  15. Setting Up a Sensitivity Table for a DCF

    Hey guys, I'm a trying to teach myself basic modeling in my free time. I'm having trouble creating a Sensitivity Table. I know I need to use a data table but I'm having trouble setting it up, every time I try I get that my input cells are i ...

    26 comments - 1 silver bananas - Nov 8 2016 - 3:49pm -

  16. Real Estate DCF Valuation (upcoming interview!)

    Hey guys, Can someone help me to understand real estate DCF valuation specifics? How exactly is the WACC calculated for a real estate DCF model? Does the tax shield diminish the cost of dept like in the classical WACC calculation? Maybe a silly question, ...

    28 comments - 0 silver bananas - Oct 10 2016 - 4:43pm -

  17. Lender/Debt Fund Modeling vs Broker Modeling

    This is a bit early but still curious, I'm looking to make the transition out of brokerage roles to lender/fund side. What are the differences in modeling required? I am used to making a 10 year DCF with equity hurdles and JV splits npv, irr, COC, MO ...

    14 comments - 7 silver bananas - Jun 28 2016 - 7:30pm -

  18. DCF Question- Large Growth CapEx for One Year

    I'm currently doing a DCF for an automotive parts supplier. Management has stated that they will be spending a few hundred million to build a new factory in 2018. However, when I incorporate this growth capex into my unlevered DCF, it causes the enti ...

    12 comments - 0 silver bananas - Apr 30 2018 - 11:29am -

  19. The growing perpetuity calculation in DCF

    Hey, guys. I am a pre-MBA student. I studied one corporate finance class in law school so my question may seem too plain and simple. I was reading the DCF and noted that the calculation of the terminal value is different from the formula I learned from cl ...

    18 comments - 0 silver bananas - Aug 2 2015 - 11:15pm -

  20. Two Superdays Next Week--Advice On How To Answer Two Possible Questions

    Hi guys, I have two superdays next week: one for a large Real Estate Private Equity Firm and another for a Large REIT. In my previous interviews I've been fairly confident in my answers to technical questions aside from two: Walk me through a DCF val ...

    14 comments - 3 silver bananas - Mar 31 2016 - 6:20pm -

  21. How to find a property's intrinsic cap rate?

    I am at an otherwise traditional PE / HF firm that is pretty much doing its first RE deal...so we are all new to this shabang. My boss wants me to find a way to get a property's intrinsic cap rate, as in he does not want to rely on market comparables ...

    17 comments - 1 silver bananas - Jun 29 2015 - 11:45pm -

  22. Stock-based compensation and free cash flow

    In Joshua Rosenbaum 's Investment Banking, free cash flow is calculated as: EBIT(1-t) + D&A- Capex- Increase/(Decrease) in NWC. Most sources present the formula for free cash flow this way, without any mention of stock based compensation. However ...

    22 comments - 1 silver bananas - May 25 2013 - 8:54pm -

  23. Model won't balance. Any help?

    ------ Model dcf ...

    18 comments - 0 silver bananas - May 27 2013 - 2:17am -

  24. How does revenue impact a company's DCF valuation?

    How might a 10% change in revenue impact a DCF valuation? I mean, step by step, where does it flow through? dcf ...

    14 comments - 0 silver bananas - Aug 14 2016 - 11:14am -

  25. Valuation tools survey: DCF vs Multiples

    just out of curiosity, in real life, shops tend to use DCF, Multiples or a mix of both? i understand both of them have their shortcomings and that maybe especially in the Sell Side Multiples are preferred because it's much easier to give a simple ans ...

    18 comments - 0 silver bananas - Apr 2 2014 - 6:27am -

  26. Change in NWC in Terminal Value

    Hi, I was wondering how (or if) the change in NWC effects the Terminal Value. I understand that in a DCF NWC has a slightly different definition (does not include Cash and short term debt). When calculating TV I dont include D&A and Capex (becasue the ...

    18 comments - 0 silver bananas - Aug 15 2013 - 11:49am -

  27. If a company is expected to perform very well/poor in the future, how is this reflected in the DCF model?

    My guess is that the WACC would change, leading to a higher or lower discount. But I'm not 100% sure because the DCF is a measure of the intrinsic value of a business. Merci! dcf Valuation Investment Banking ...

    13 comments - 0 silver bananas - Dec 12 2015 - 8:10pm -

  28. How to make an Excel DCF model dynamic based on the number of forecasted years?

    I'm currently interning at a real estate private equity firm and I have to build a model to analyse the DCF value of potential investments. My model is good, but different types of real estate do have different life spans. For every real estate prope ...

    7 comments - 2 silver bananas - Jul 24 2018 - 2:18am -

  29. DCF Perpetuity Growth Rate

    What are you guys currently using for the perpetuity growth rate in the DCF? I know it typically mimics GDP growth, but that is looking pretty negative right now. Are people generally using around 1.0% or is it even lower? Perpetuity Growth Rate DCF From ...

    13 comments - 0 silver bananas - Mar 29 2018 - 2:59am -

  30. Want To Practice Running a DCF

    I've been reading a little bit about DCFs and want to practice modeling out a DCF on my own. Does anyone know what the best way to get started on doing something like this is? I'm guessing that trying to model a very large company would be chall ...

    16 comments - 0 silver bananas - Aug 26 2015 - 12:46pm -

  31. How DCF accounts for assets value?

    Could someone please explain or refer to the link on how DCF accounts for the value of assets? For example, when analyzing companies we can do FCF based perpetuity model and get the intrinsic value of the company. I am confused on how underlying assets of ...

    15 comments - 0 silver bananas - Feb 25 2014 - 5:15pm -

  32. Negative Operating Income and FCF's

    I'm building a DCF model. How do I calculate tax expense when Operating Income (EBIT) is negative to get to FCFs? Net Operating Loss Carry Forward dosk17- Retired Investment Banker: Basically here is what you do: As the posters said above, if you hav ...

    13 comments - 0 silver bananas - Dec 22 2017 - 1:32am -

  33. Gonna A Run A DCF, Need Ideas for Companies to Use

    Hi guys, So basically, I have to do a DCF valuation for a class and have been assigned the industrials or energy sectors. Her definition of Industrials is really broad, but it includes a variety of companies from chemicals, materials, automanufacturers, u ...

    17 comments - 0 silver bananas - Jan 3 2012 - 6:39pm -

  34. Cash from Operating Activities to UCF

    When doing a DCF, we are looking to discount unlevered cash flows. Normally, you would get UCF from Revenue- COGS, etc. all the way down. But lets say you start with the last line in the Statement of Cashflows- Net Cash from Operating Activity. How would ...

    16 comments - 0 silver bananas - Dec 28 2011 - 6:54am -

  35. FCFE and terminal value?

    Hi! I'm trying to value a holding company that owns 3 projects, one of which has amortizing debt (changing leverage) for acquisition purposes. I'm fine with valuing the firm as a whole using FCFF and assuming it will be refinanced to a target D/ ...

    9 comments - 1 silver bananas - Jan 21 2017 - 6:35pm -

  36. Help Valuing A Very Negative Company

    Currently working on valuing a very indebted retail company for potential takeover and having serious troubles. Operating Income is negative, EPS is negative, Net Income is negative, EBITDA is negative and jumping all over the place, Retained Earnings is ...

    15 comments - 0 silver bananas - Dec 15 2011 - 2:33pm -

  37. Intriguing Technical Question

    Hi guys, I have a technical question in relation to DCF and capital raisings that some of you might be able to help me with: When doing a DCF for capital raising purposes (more specifically new equity), after discounting the cash flows and summing them to ...

    15 comments - 0 silver bananas - Jun 14 2011 - 10:05pm -

  38. Taxes Issue in a DCF

    I am looking at a company that generated losses for past few years, mainly due to extremely high interest expense and deteriorating macroeconomic forces. Even though it is generating a net loss overall, it still pays cash taxes in certain jurisdictions an ...

    12 comments - 0 silver bananas - Aug 16 2012 - 12:56am -

  39. DCF Question- How long does it take to learn?

    Quick question--how long does it take to learn dcf on your own? This is under the assumption that the person doesn't know the accounting behind it. How long will it take to learn the accounting behind it + dcf itself? How many hours should I study pe ...

    11 comments - 0 silver bananas - Apr 8 2016 - 10:35pm -

  40. OpenSource Argus?

    Hello all, Apologies if I missed this in a previous thread. Does anyone out there know whether a decent OpenSource (free) alternative to Argus DCF /Enterprise exists? I've seen some cheaper alternatives, but they look/feel so... cheap. They also don& ...

    8 comments - 2 silver bananas - Feb 23 2017 - 10:35pm -

  41. Valuing mining company, DCF finite ou infinite?

    Hi everybody, I creater a DCF model to value mining companies. I've got one big problem pour the terminal value because i've two options: Finite life: a mine doesn't last forever, lets say 20 yrs or 40 yrs, Infinite life: with the classic t ...

    13 comments - 0 silver bananas - Jun 10 2011 - 4:29am -

  42. Valuation Methods in Industrial IBD group

    Hi all, I am curious if anyone is aware of the common valuation multiples and methods common when valuing companies as an analyst within a bank's industrials group. Any info would be greatly appreciated. thx Valuation dcf multiples Industrials IBD ...

    10 comments - 0 silver bananas - Feb 7 2015 - 12:41pm -

  43. Two companies are same but one has DEBT and the other doesn't, which has the higher WACC?

    I suppose the one without debt will have that higher WACC since debt is less expensive than equity but that doesn't make sense since if debt is less expensive, wont debt still factor into the WACC equation and cause WACC to be HIGHER? dcf ...

    12 comments - 0 silver bananas - Jun 18 2012 - 1:39pm -

  44. Real Life Case Study: What is the value of this 4 Tenant Retail property in Long Island?

    I have an associate who co-owns (50% undivided interest) a 4 tenant, Class B Retail property in a middle (to working) class Long Island residential area which generates $16,000 a month total NOI with NNN leases. The leases all have 5-10 years left to run ...

    11 comments - 0 silver bananas - Sep 7 2013 - 10:48pm -

  45. Pitch Book Practice

    Ok guys, I'm looking to practice writing pitch books. Primarily Sell-side. I've searched the forums/M&I and have found some useful pitch book examples and 'templates'. My question is though, how to you practise creating them? Would ...

    11 comments - 0 silver bananas - Apr 26 2014 - 10:48pm -

  46. What is excluded from current liabilities when calculating NWC for DCF

    I'm doing a DCF project right now and I'm trying to figure out what I should exclude from current liabilities. Current Liabilities: Accounts payable Accrued compensation and related costs Accrued occupancy costs Accrued taxes Insurance reserves ...

    11 comments - 0 silver bananas - Sep 27 2012 - 12:16am -

  47. DCF/Valuation Question

    I had this question in an interview and I got it right, but my logic was a little off. Can someone clarify. The interviewer asked "9 times out of 10, which method of valuation will produce the highest valuation (DCF vs. Public comps vs. transaction c ...

    12 comments - 0 silver bananas - Dec 13 2009 - 8:16pm -

  48. DCF Taxes

    quick question: when I do DCF and trying to figure out FCF should I go with taxes that were actually paid or taxes that should have been paid for each corresponding period in the past? Thanks a lot! Tax dcf FCF ...

    10 comments - 0 silver bananas - Jul 1 2013 - 7:28pm -

  49. FCF and Equity Value for a one year company?

    I've been practicing DCFs quite a lot recently but a back to basics question has really stumped me. Imagine a company with: Revenue $150 Costs $60 Depreciation $20 CapEx $20 No discount rate It exists only for one year and will liquidate at the end o ...

    7 comments - 1 silver bananas - Jan 30 2017 - 5:35pm -

  50. DDM and Residual Income Model vs. DCF

    Why do you use DDM and Residual income models instead of DCf for banks? Thanks. dcf ...

    10 comments - 0 silver bananas - Dec 10 2012 - 11:31am -

  51. DCF with Negative Free Cash Flow

    Guys, a quick question. I am doing a DCF for a utility power company and right now it has positive EBITDA but negative FCF due to very high Capex. Obviously I am assuming that it will generate positive FCF in the future(in line with equity research report ...

    8 comments - 0 silver bananas - Jan 9 2018 - 4:23pm -

  52. Why does a discounted cash flow approach yield Enterprise Value? Newbies GTFO

    When looking at Enterprise Value in a market approach, it gives you sort of the "bare bones" total firm value. It doesn't include any cash because you'd basically be paying cash for cash. But in an income approach model you model cash ...

    10 comments - 0 silver bananas - Jun 13 2012 - 4:53pm -

  53. Discounted Cashflow Valuations (DCF): Academic Exercise, Sales Pitch or Investor Tool?

    In my last post, I noted that I will be teaching my valuation class, starting tomorrow (February 2, 2015). While the class looks at the whole range of valuation approaches, it is built around intrinsic valuation, reflecting my biases and investment philos ...

    7 comments - 8 silver bananas - Feb 11 2015 - 4:03pm -

  54. Terminal Value too High; What to do?

    My terminal value / ev is 90%. What should I look at to find out what I did wrong? Valuation dcf Terminal Value ...

    7 comments - 0 silver bananas - Aug 1 2016 - 4:10pm -

  55. DCF Questions

    Maybe we can get a thread going for all modeling questions? For example, In constructing a DCF for an ER report....... Do most poeple reconsctruct the I/S and balance sheet from what's reported on SEC.GOV? All the templates i've seen online wher ...

    10 comments - 0 silver bananas - Sep 30 2010 - 1:01pm -

  56. Beginners question DCF

    Hi Guys, Question with regards to following: "If we assume that the coffee shop is in operation for 5 years and we use a 10% WACC, then its value would be: Value = 31,500 + 31,500/ 1.1 + 31,500/1.1^2 + 31,500/1.1^3 + 31,500/1.1^4 = $131,000" Que ...

    10 comments - 0 silver bananas - May 12 2010 - 5:45pm -

  57. NPV/DCF Practice

    So I was thinking about a practical problem today, and I decided to calculate the NPV of the DCF for it (in excel). I was hoping someone would check my answers to see if I did it correctly (I figured maybe some others are looking for some practice with th ...

    10 comments - 0 silver bananas - Mar 31 2010 - 11:08pm -

  58. dividends and DCF

    Question: How does one account for dividends in a DCF (assume WACC = cost of equity) 1) Ignore dividends and use WACC to calculate the firm value (In this case would Firm Value = Equity Value?) 2) If one were to calculate the the FCFE-> this would igno ...

    8 comments - 0 silver bananas - Feb 9 2017 - 5:12pm -

  59. DCF- Estimating Revenue(Sales)

    Hi, I have a quick question regarding the DCF. I understand the process, the only problem I have is that there doesn't seem to be a sure consensus on how to estimate the revenue growth rate. Some use scenario analysis, linear regression, others use t ...

    7 comments - 0 silver bananas - May 10 2016 - 3:05am -

  60. What's the average discount rate for a early-stage technology company?

    My bank works with very early stage companies, and I'm currently looking through some of the models and trying to understand them. WACC is calculated to be ~9% using beta derived by doing comps on capIQ. It looks like we then applied a 80% "liqu ...

    9 comments - 1 silver bananas - Aug 16 2012 - 2:01pm -

  61. Interview next Tuesday (5/13)

    WSO AMers, I could really use your help preparing for an upcoming interview. The challenge here is that I'm jumping industries from commercial banking to Asset Management so the relevant techniques I learned in school are a little rusty. The job desc ...

    8 comments - 0 silver bananas - May 9 2014 - 10:30am -

  62. How to determine FCF growth rate (perpetuity growth method)

    How do I calculate a growth rate for free cash flows in the terminal period? dcf ...

    7 comments - 0 silver bananas - Nov 20 2015 - 2:06am -

  63. Appropriate cost of equity for a start up?

    I am looking to build out a DCF for a start up business which has 2 years of operating history and about $70,000 of LTM Revenues. Looking for seed funding. Any insights as to what would be an appropriate cost of equity? And if so why you chose that number ...

    7 comments - 0 silver bananas - Oct 14 2014 - 1:46pm -

  64. When does it not make sense to DCF?

    Hi Monkeys, Out of curiosity, when does it not make sense to use a DCF? I know when cash flows are negative it doesn't make sense, but are there any other reasons? dcf ...

    6 comments - 0 silver bananas - Aug 15 2016 - 11:28am -

  65. Does DCF value account for all inventory?

    I am currently valuing a company with a large inventory. I realize the DCF takes into account the changes in inventory in the working capital number, but what about the rest of the inventory that was not part of the change/just lying around? If I sell thi ...

    7 comments - 0 silver bananas - Sep 16 2014 - 3:53pm -

  66. Can Someone Take a Look at My Model (Especially the Debt Model)

    Hey guys, having some trouble with a model. This is just for practice; I'm modeling The Cooper Companies. In their 2015 10k, they mention they have "890.8 million available from Revolving Credit Agreement". Is this supposed to be their revo ...

    6 comments - 0 silver bananas - Aug 4 2016 - 5:54pm -

  67. DCF of Banker's Life

    Does anybody have a copy of the DCF Valuation of an Investment Banker's Life? There is a model that was circulating around in late 2007 that I lost a copy of but it's hilarious. The original site it was posted on was Bankersball.com which no lon ...

    8 comments - 0 silver bananas - Aug 5 2011 - 5:45pm -

  68. Cash Question on DCF

    Hello: I had a quick question regarding cash and CCE for public companies. What sort of things fall under CCE? I've read a mixture of things, so is the consensus (Cash, Marketable securities, T-bills)? Also, on a DCF, is only cash used, or CCE? Thank ...

    6 comments - 0 silver bananas - Jan 2 2016 - 8:39pm -

  69. Is this a proper way to explain DCF?

    First you build a 5yr forecast of a company's FCF based on assumptions for revenue growth using the financial statements. The formal for FCF = (EBIT)(1- Tax rate) + dip + amort- cap expenditures- changes in working capital. Then you discount the FCF& ...

    4 comments - 1 silver bananas - Aug 2 2018 - 2:20pm -

  70. Help with balance sheet on DCF assignment

    Hey guys, I'm working on an assignment and I seem to be stuck trying to get the balance sheet to balance out. Hoping someone could take a look to see where I went wrong and point me in the right direction. Any help would be appreciated. Thanks dcf ba ...

    5 comments - 1 silver bananas - Feb 26 2017 - 4:30pm -

  71. Mcdonalds beating...will affect the stock price Monday?

    I believe if it goes on CNBC/MNSBC/CNN/FOX NEWS then the stock will take a hit. It will play out like this.... Major news stations get a hold of it. They run clip and bring in panel of "experts" that argue about race in America or sex in America ...

    7 comments - 0 silver bananas - Apr 23 2011 - 5:55am -

  72. Financial Modeling in Real Life M&A Banking

    Hello WSO, I'm a new undergrad about to enter FT at a pure M&A boutique. Throughout my years of finance projects in undergrad, the process of modeling is still ambiguous to me, particularly the rigor that would be required in an actual FT role. F ...

    4 comments - 1 silver bananas - Jun 22 2018 - 5:11pm -

  73. Navy Suit light or dark

    Guys, Im looking for a navy suit in the range of 500-600 any help. Like a french navy suit, light on the color. dont want the dark shade of navy. Investment Banking interview analyst questions banking Valuation summer analyst Money dcf cash clothes baller ...

    6 comments - 0 silver bananas - May 14 2015 - 3:56pm -

  74. Help with Netflix Inc. DCF

    Hey WSO, I'm pitching Netflix Inc. long this upcoming tuesday at a stock pitch competition. Currently working on the intrinsic value and I'm having a hard time figuring out the change in networking capital yoy for the historical period. Link to ...

    5 comments - 0 silver bananas - Apr 21 2016 - 5:17pm -

  75. DCF result- Equity value from EV

    Hi all What is the correct way to arrive at equity value after the EV was calculated (via DCF)? Suppose we have to value equity of a PRIVATE company. We identified target cap. structure, performed DCF and got the EV. What to do next? subtract debt which i ...

    4 comments - 1 silver bananas - Feb 18 2018 - 6:11pm -

  76. What do analysts base their projections on the DCF input pages off of??

    When someone makes financial estimates on the DCF input pages, what do they base those expectations off of? Economic factors mainly? Solely previous earnings? Investment Banking dcf projections DCF analysis ...

    6 comments - 0 silver bananas - Jul 6 2012 - 4:26pm -

  77. Break-up analysis

    I'm currently valuing a conglomerate and am trying to approach with both a DCF and break-up (sum-of-the-parts) approach. I had a couple questions: 1) For the break-up analysis, the company also has a "Corporate" segment that is basically ju ...

    6 comments - 0 silver bananas - Jun 24 2012 - 10:52am -

  78. Why can't you use private companies as part of your public company comperables analysis?

    I understand that it wouldn't make sense to use a private company in your calc of cost of eq or wacc BC private companies don't have values for market cap or beta, but why couldn't you use private companies in public comps? Is it just becau ...

    5 comments - 0 silver bananas - Nov 11 2015 - 5:00pm -

  79. Moving From Equity Research to Investment Banking and vice versa

    Hi Guys, So one thing I've been really trying to figure out is Equity Research or Investment Banking. I interned for 6 months in Equity Research and loved it and am studying for CFA. I loved the process, and consider myself not too quantitative and c ...

    4 comments - 1 silver bananas - Dec 21 2017 - 5:51am -

  80. DCF Question- What would the discount period be?

    When doing a DCF for a company with an April 30 fiscal year end, and applying the mid-year convention, what would the discount period be (given that it's currently February)? dcf ...

    5 comments - 0 silver bananas - Apr 8 2016 - 10:36pm -

  81. DCF model – Does it help?

    Recently I read "Investment banking: Valuation, Leveraged Buyouts and Mergers & Acquisitions" by Rosenbaum /Pearl which inspired me to write an article explaining the theory of Discounting Cash Flow. Discounted Cash Flow analysis (DCF) is on ...

    5 comments - 0 silver bananas - Sep 10 2012 - 10:32pm -

  82. dDd

    . dcf ...

    5 comments - 0 silver bananas - Apr 20 2014 - 2:41pm -

  83. unlever beta with preferred stock

    Dear all, My query is the following (hope one of you could help): I'd like to take into account preferred stock when unlevering equity beta & then relevering the asset beta to a new equity beta, appropriate to the target cap. structure. If I pick ...

    4 comments - 1 silver bananas - Feb 16 2017 - 3:06am -

  84. NEED GENIUS HERE-COME QUICK

    say, this segment of a company is expected to produce-100K cash flow till perpetuity how do i discount it? discounting negative value makes no sense eg, if my cost of capital was 10% i would have a PV of-1M if my cost of capital was 50% i would have a PV ...

    5 comments - 0 silver bananas - Dec 6 2012 - 9:34pm -

  85. DCF Practice

    Hi All, I have some interviews coming up that involve DCF testing (I believe using unlevered FCF). I understand the basic principles behind it, but I can't seem to find any practice models online. The tests are mainly 1hr (some 2 hr) and i think will ...

    3 comments - 1 silver bananas - Oct 22 2018 - 5:27am -

  86. quick DCF questions...

    Hey everyone, first post here 2 questions, 1st for DCF we discount future year cashflow and add terminal value to get EV and from there we add/subtract stuff to get our implied equity value and share price.. but what about the current year free cash flow? ...

    5 comments - 0 silver bananas - Mar 10 2012 - 10:00pm -

  87. Discounted Cash Flow

    Hey guys so I am doing a presentation on a particular stock and I am trying to figure out how to calculate DCF. I have used multiple sources and have come to no avail. Can someone please explain to me a basic model someone can use to obtain a firm's ...

    5 comments - 0 silver bananas - Oct 28 2011 - 5:06pm -

  88. DCF- Tax or Book Depreciation?

    When doing a DCF, should you be using the company's book depreciation, or tax depreciation? I assume tax, but wanted to check. dcf Depreciation ...

    5 comments - 0 silver bananas - Jun 14 2011 - 6:08pm -

  89. DCF- forecast period HELP

    I am confused when people say that the forecast period is determined by the amount of time it takes for a company to reach a "steady state of growth." If I assume a 3 year forecast period for company XYZ now, it doesn't mean I actually expe ...

    5 comments - 0 silver bananas - Jan 14 2011 - 10:11pm -

  90. mention updated dcf model experience?

    hi guys, during my internship, i helped update a few DCF models.....thus i dont know DCF models inside-out because i didnt create them cell by cell but i did update the models that were created by someone else by using Bloomberg's estimates.......you ...

    5 comments - 0 silver bananas - Sep 16 2010 - 9:10pm -

  91. Few technical questions about DCF

    Hello guys, Thanks for the forum, very helpful. I have a few questions about DCF and would appreciate your replies: I understand that in finding the WACC, the "appropriate" capital structure for the target should be used and not the current capi ...

    5 comments - 0 silver bananas - Apr 25 2010 - 4:34am -

  92. What are the fastest ways to learn how to do DCFs, Merger Models, and Transaction and Public Comps in Excel in 3 Days?

    Hey fellow monkeys, For an IB internship application due in three days, I have been asked to create a DCF, merger model, and write a one-page report on a certain company using public comps and transaction comps. The problem is that I have very little expe ...

    4 comments - 0 silver bananas - May 8 2016 - 10:57am -

  93. Pharma Comps/Precedents

    Hey, Don't have banking resources available to me...just a student and wanted to know where I can find comps and precedents for pharmaceutical companies with transaction dates of 1998? I'm trying to make a football field (dcf, precedents, comps) ...

    5 comments - 0 silver bananas - Mar 31 2009 - 9:34pm -

  94. what-if valuation method: any of you assign probabilities?

    normally I'd ask this in the investing/markets section but the question is mainly geared toward hedge fund professionals so please forgive the intrusion. when you perform scenario based analysis and you compute the classic risk-to-reward ratio (3-1: ...

    4 comments - 0 silver bananas - Feb 16 2016 - 12:14pm -

  95. DCF Analysis Q

    Self teaching myself DCF analysis and trying to wrap my head around the concept of: Why does DCF = Enterprise Value? I have a hazy feeling it has something to do with net present value (maybe), but I'm not entirely sure. Any clarification is greatly ...

    4 comments - 0 silver bananas - Mar 27 2013 - 5:32pm -

  96. Free Cash Flow question

    Hello Monkeys, Quick one, when getting the FCF in order to create a DCF, do we take this number from the change in cash and cash equivalents YoY (obviously adding back in dividend payments) Can it be that simple?? dcf ...

    4 comments - 0 silver bananas - Feb 4 2013 - 11:12am -

  97. "Bookings" in a DCF analysis

    quick question for you valuation gurus out there. have any of you valued an internet start up based on bookings (it sounds like these are deferred revenues for subscription services)? this particular company presented both the bookings figures as well as ...

    4 comments - 0 silver bananas - Jun 25 2012 - 8:03pm -

  98. How Much is America Worth?

    http://www.youtube.com/watch?v=7O53RADLAd8 Trump's got one hell of a DCF to model.... dcf trump donald trump worth ...

    4 comments - 0 silver bananas - Nov 10 2011 - 2:24am -

  99. Valuation: non-operating assets & operating liabilities

    Hey guys, I am wondering about the correct theoretical explanation for two valuation-related issues and would be glad if someone could shed some light on these. 1) When going from Enterprise Value (EV) to equity value (EqV), we are adding non-operating as ...

    4 comments - 0 silver bananas - Jul 23 2011 - 1:57pm -

  100. What's hard about creating a DCF Model on excel?

    The concepts are pretty basic, and obviously its an art and not a science. But when it comes to creating a DCF model on excel, where does it get complicated? From what I've seen, its very simple. You just insert formulas and link the different cells ...

    4 comments - 0 silver bananas - Jan 28 2010 - 10:29pm -

  101. DCF Crash Course

    I have an interview with a firm coming up, and part of the interview is a modeling exercise (creating a DCF from scratch). As an underclassman, I have never taken a corporate finance or modeling course. I'll go through the Vault guide and absorb anyt ...

    4 comments - 0 silver bananas - Jan 19 2009 - 1:54pm -

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