## Displaying *101* of *177* results

## Search Results

### DCFs no longer necessary?

Hedge FundI've been told by a couple of people (growth side, not value) that buyside analysts won't bother with DCFs anymore--instead they'll project revenue and earnings growth based on a variety of factors in a proprietary model. Is this commonplac ...

25 comments7 Sep 2019 - RandomAnalystGuy

### Why a lack of advanced modeling techniques? Anyone who uses probabilistic modeling justification for this?

Real EstateFrom what I have seen, real estate modeling (at least on an asset level) seems to be relatively rudimentary in comparison to almost all other financial sectors, could anyone possibly speak to why very few firms utilize advanced modeling techniques and pro ...

35 comments24 Dec 2018 - acb123

### Notes for Technical Interview Questions

Investment BankingDuring 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 ...

51 comments12 Apr 2019 - Asia_i_Banker

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

Investment BankingTL;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 comments31 Oct 2018 - enterthemonkey

### How to Get to ARGUS Certification?

Real EstateNow 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 comments11 Feb 2018 - theBEEGEES

### DCF Multiples method

Investment BankingI 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 comments6 Aug 2018 - mean5998

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 comments30 Apr 2015 - Marginal Benefit

### Investment Banking Interview: Walk me through a DCF

Investment Banking1.) 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 comments14 Nov 2017 - blmon00

### Does unlevered cash flow exclude interest?

Investment BankingI'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 comments13 Feb 2018 - ThreeDot

### Do you use the Treasury Stock Method when calculating Ownership in an LBO test with Mgmt Option Pool?

Private EquityI've noticed it seems that sometimes it's used, and sometimes it's not. On a model test, should it be used? Taking an example...assume:- Initial Sponsor Equity **= $100 (no mgmt rollover)- Exit Equity Value = $200- Mgmt Option Pool = 10%, s ...

9 comments24 Feb 2020 - risk adjusted b...

### Help Building DCF Model

Investment BankingI'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 comments29 Mar 2016 - cje1992

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 comments25 Dec 2015 - Aswath Damodaran

### How Tax Rate affects Enterprise Value (EV)

Investment BankingHi 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 comments9 Sep 2016 - financhise

bankerella's blog dcf Synergies bb ibd plug Blog ...

25 comments13 Jul 2012 - bankerella

### Oil and Gas Valuation

Investment BankingHow 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 Salary ...

25 comments26 Feb 2017 - kaush949

### Model from scratch?

Investment BankingWhat 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 comments11 Apr 2017 - rjoshi1389

### Real Estate DCF Valuation (upcoming interview!)

Real EstateHey 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 comments10 Oct 2016 - Applicant3434b

### Setting Up a Sensitivity Table for a DCF

Investment BankingHey 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 comments8 Nov 2016 - STIRTrader

### The growing perpetuity calculation in DCF

Investment BankingHey, 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 comments2 Aug 2015 - Page3

### Lender/Debt Fund Modeling vs Broker Modeling

Real EstateThis 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 comments28 Jun 2016 - C.R.E. Shervin

### Stock-based compensation and free cash flow

Investment BankingIn 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 comments25 May 2013 - Gekko93

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 comments31 Mar 2016 - REStudent

### Model won't balance. Any help?

Investment Banking------ Model dcf ...

18 comments27 May 2013 - CoochieMane

### How to find a property's intrinsic cap rate?

Real EstateI 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 comments29 Jun 2015 - risingav

### How does revenue impact a company's DCF valuation?

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

15 comments14 Aug 2016 - bankertobe27

### Valuation tools survey: DCF vs Multiples

Equity Researchjust 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 comments2 Apr 2014 - kent02

### DCF Question- Large Growth CapEx for One Year

Investment BankingI'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 comments30 Apr 2018 - yig

### Change in NWC in Terminal Value

Investment BankingHi, 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 comments15 Aug 2013 - N96k2q2NVy

### How DCF accounts for assets value?

Investing, Markets & MacroeconomicsCould 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 ...

16 comments25 Feb 2014 - naivekid

### Want To Practice Running a DCF

Investment BankingI'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 comments26 Aug 2015 - Anal Analyst

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

Investment BankingMy 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 Salary ...

13 comments12 Dec 2015 - NewbatInvesting

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 comments3 Jan 2012 - Jerome Kohlberg

### DCF Perpetuity Growth Rate

Investment BankingWhat 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 comments29 Mar 2018 - ibanker26

### Negative Operating Income and FCF's

Investment BankingI'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 comments22 Dec 2017 - zX522

### Cash from Operating Activities to UCF

Investment BankingWhen 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 comments28 Dec 2011 - FinanceWiz

### Help Valuing A Very Negative Company

Investment BankingCurrently 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 comments15 Dec 2011 - Asatar

### Intriguing Technical Question

Investment BankingHi 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 comments14 Jun 2011 - lui

### Taxes Issue in a DCF

Private EquityI 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 comments16 Aug 2012 - thecrazybaboon

### Valuing mining company, DCF finite ou infinite?

Equity ResearchHi 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 comments10 Jun 2011 - benbxl

### DCF Question- How long does it take to learn?

Investment BankingQuick 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 comments8 Apr 2016 - Mr.Saxman

### FCFE and terminal value?

Investment BankingHi! 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 comments21 Jan 2017 - Tabur1

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

Investment BankingI 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 comments18 Jun 2012 - RGTrader

### Modeling Test?

Investment BankingI have a second round interview coming up for an IB analyst position. All I know from the recruiter is that it will be an hour long technical interview with the associate and that it will involve testing my modeling skills and knowledge- DCF, LBO etc. I a ...

6 comments5 Jul 2019 - adpp0

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

Real EstateI 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 comments7 Sep 2013 - Julian.Bostone

### Pitch Book Practice

Investment BankingOk 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 comments26 Apr 2014 - MJ99

### Valuation Methods in Industrial IBD group

Investment BankingHi 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 comments7 Feb 2015 - Renegade1953

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 comments24 Jul 2018 - Louis-Deconinck

### What is excluded from current liabilities when calculating NWC for DCF

Investment BankingI'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 comments27 Sep 2012 - ccole.nh

### DCF/Valuation Question

Investment BankingI 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 comments13 Dec 2009 - VineyardVines2011

### OpenSource Argus?

Real EstateHello 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 comments23 Feb 2017 - Justin-Duncan

### EY TAS Val vs Alvarez & Marsal Val

Investment BankingIf you had to choose between the following two offers which one would you choose and why? Alvarez & Marsal Valuation Services- Sr. Assoc.- 20-25% year end bonus based off hours billed. EY TAS- Valuation & Business Modeling- Senior- 10% year end bo ...

5 comments29 Nov 2019 - Randomwalk45

### DDM and Residual Income Model vs. DCF

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

10 comments10 Dec 2012 - BBnkr10

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 comments13 Jun 2012 - HMG

### DCF Questions

Investment BankingMaybe 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 comments30 Sep 2010 - terrence

### Beginners question DCF

Investment BankingHi 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 comments12 May 2010 - MPE

### NPV/DCF Practice

Off TopicSo 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 comments31 Mar 2010 - econ

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 comments11 Feb 2015 - Aswath Damodaran

### DCF with Negative Free Cash Flow

Investment BankingGuys, 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 comments9 Jan 2018 - dreamtheater12

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

Investment BankingMy 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 comments16 Aug 2012 - arguewithatree

### FCF and Equity Value for a one year company?

Investment BankingI'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 comments30 Jan 2017 - LloydIrving123

### dividends and DCF

Investment BankingQuestion: 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 comments9 Feb 2017 - wiseguy

### Interview next Tuesday (5/13)

Asset ManagementWSO 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 comments9 May 2014 - dkim1984

### Terminal Value too High; What to do?

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

7 comments1 Aug 2016 - slowmac89

### DCF- Estimating Revenue(Sales)

Investment BankingHi, 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 comments10 May 2016 - mr.mojo_rising

### How to determine FCF growth rate (perpetuity growth method)

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

7 comments20 Nov 2015 - slowmac89

### DCF of Banker's Life

Investment BankingDoes 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 comments5 Aug 2011 - YachtyByNature

### Appropriate cost of equity for a start up?

Private EquityI 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 comments14 Oct 2014 - Billy Ray Valentine

### Does DCF value account for all inventory?

Investment BankingI 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 comments16 Sep 2014 - koozi

### When does it not make sense to DCF?

Investment BankingHi 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 comments15 Aug 2016 - koozi

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

Equity ResearchHey 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 comments4 Aug 2016 - slowmac89

### Cash Question on DCF

Equity ResearchHello: 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 comments2 Jan 2016 - Erich_Bachman31

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

Sales and TradingI 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 comments23 Apr 2011 - blastoise

### Navy Suit light or dark

Investment BankingGuys, 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 comments14 May 2015 - Iceman21

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 comments26 Feb 2017 - joblessgrad

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

Investment BankingWhen 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 comments6 Jul 2012 - cje1992

### Break-up analysis

Investment BankingI'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 comments24 Jun 2012 - optimus_prime

### Help with Netflix Inc. DCF

Investment BankingHey 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 comments21 Apr 2016 - Joejohnsonpo

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

Investment BankingI 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 comments11 Nov 2015 - bankertobe27

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 comments10 Sep 2012 - serjik91

### Is this a proper way to explain DCF?

Investment BankingFirst 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 comments2 Aug 2018 - mean5998

### DCF Question- What would the discount period be?

Investment BankingWhen 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 comments8 Apr 2016 - makingamove

### Financial Modeling in Real Life M&A Banking

Investment BankingHello 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 comments22 Jun 2018 - SilverboyBaghs

### DCF result- Equity value from EV

Investment BankingHi 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 comments18 Feb 2018 - Artem_Artem

### NEED GENIUS HERE-COME QUICK

Investment Bankingsay, 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 comments6 Dec 2012 - bigun

### quick DCF questions...

Investment BankingHey 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 comments10 Mar 2012 - bigun

### Discounted Cash Flow

Equity ResearchHey 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 comments28 Oct 2011 - nbascian

### DCF- Tax or Book Depreciation?

Investment BankingWhen 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 comments14 Jun 2011 - j-rad

### Moving From Equity Research to Investment Banking and vice versa

Investment BankingHi 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 comments21 Dec 2017 - Nofunleague

### DCF- forecast period HELP

Investment BankingI 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 comments14 Jan 2011 - bull

### mention updated dcf model experience?

Investment Bankinghi 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 comments16 Sep 2010 - Breakerbreaker19

### Few technical questions about DCF

Job Search AdviceHello 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 comments25 Apr 2010 - wannabemonkey123

### Pharma Comps/Precedents

Investment BankingHey, 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 comments31 Mar 2009 - iluvseamless

### unlever beta with preferred stock

Equity ResearchDear 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 comments16 Feb 2017 - ManoftheShadow

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

Investment BankingHey 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 comments8 May 2016 - Entrepreneur Hero

### Loughlin Management Partners + Co.

Investment BankingHey guys, Been a while since I've posted anything on here. I was wondering if anyone had any info/insight on the restructuring firm Loughlin Management Partners + Co? It's a small restructuring firm in NYC with only about 30-35 people (most rest ...

4 comments24 Mar 2016 - Straight To The Pros

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 comments16 Feb 2016 - Goodwill11

### Football field graph- how to reach min and max DCF values?

Equity ResearchHello everyone, I'm a junior monkey trying to learn how to properly compose a football field graph and I'm looking for insight into what makes a successful one. Which variables should I take into account and what ranges should I be looking at to ...

3 comments3 Feb 2019 - LCHMan

### DCF Analysis Q

Investment BankingSelf 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 comments27 Mar 2013 - alyoshechka