1. Search Results

  2. 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 -

  3. What's Your Personal WACC?

    It's a well-known fact that the vast majority of us finance types can do amazing things with other people's money while consistently shitting the bed with our own. I was inspired to write a post addressing this topic today because I was trying t ...

    19 comments - 0 silver bananas - Jul 30 2012 - 4:45pm -

  4. Why Would You Not Use a DCF for Financial Institutions?

    The guide says it's because fin institutions are highly levered and they do not re-invest debt in the business and instead use it to create products. Also, interest is a critical part of a bank's business model and working capital takes up a lar ...

    16 comments - 0 silver bananas - Feb 13 2018 - 5:51pm -

  5. Linking DCF to IRR analysis

    Hi guys, I need a help! i just finished building my dcf model. My boss asked me what is the IRR return? How can i calculate that? the purpose of my DCF model is to find out how much i should pay for that company. but i dont know how to figure the IRR retu ...

    13 comments - 0 silver bananas - Oct 11 2012 - 4:33am -

  6. Run me through a DCF interview question

    Every interview I've had I've been asked "walk me through a DCF analysis". However how technical must you go? Should you go through it in a basic way expecting them to have some follow up questions or should you go in depth throughout? ...

    9 comments - 0 silver bananas - Aug 23 2016 - 7:24pm -

  7. Is Line of Credit treated as LTD?

    I am trying to figure out where a company's Line of Credit fits into my DCF model. I have a DCF model, using a WACC, where I am trying to find the equity value. The answer I receive after the sum of present values and residual value would be my enter ...

    11 comments - 0 silver bananas - Aug 28 2014 - 3:54pm -

  8. Discounting cash flows back to 2015--use mid-year discounting?

    Hey all, quick question about DCF valuation. If you're valuing a company right now (mid-2015), do you discount cash flows back to 2015, or do you account for the fact that it's the middle of the year? In other words, should you discount back to ...

    10 comments - 1 silver bananas - Jul 13 2015 - 4:28pm -

  9. Small DCF Question about Valuing Fourth Quarter Cash Flows

    I'm building a DCF to value a company whose fiscal year ends December 31st. What is the industry accepted way of valuing the remaining year? Should I make a separate column for "Remaining 2013", come up with a free cash flow, and then use n ...

    11 comments - 0 silver bananas - Nov 16 2013 - 1:56pm -

  10. discounted cash flows

    Is the cash available to start a company in the base year when calculating the value of the company using a discounted cash flows for the value of the company is currently DCF analysis ...

    12 comments - 0 silver bananas - Mar 25 2012 - 6:34am -

  11. FCF projection tips?

    Hello Monkeys, I'm wondering how to accurately forecast FCF. Investment Banking by Rosenhaum suggests that we project future sales and use that as a reference to calculate other elements of the FCF. It seems a little bit too simple to apply to all ki ...

    10 comments - 0 silver bananas - May 6 2014 - 12:42pm -

  12. Cost of Goods Sold (COGS) Urgent Quick Question

    Hi everyone, This financial statement totally confused me. What's the cost of goods sold here for 2008? Is it 84,616 or 71,527? Thanks!! DCF analysis ...

    8 comments - 0 silver bananas - Apr 29 2016 - 2:02pm -

  13. WACC if there is no beta?

    fellow monkeys, im fairly new to valuation so please excuse if this question is actually really easy. i currently have to valuate an automobil supply company that is not publicly traded (and therefore does not have a beta?) and i was wondering how to calc ...

    10 comments - 0 silver bananas - Jan 19 2013 - 3:04pm -

  14. Different approaches of the DCF analysis

    hello im very new to finance,and i've been trying to study a bit the DCF analysis can anyone enlight me on the differencies between:-entity approach-equity approach-adjusted present value approach thanks DCF analysis ...

    10 comments - 0 silver bananas - Nov 16 2011 - 1:47pm -

  15. Calculating Return on Equity in a DCF

    How do you find the rate of return on equity when you're looking at different financing options in a DCF. I know that the formula is net income/shareholder equity, but this isn't giving me different rates for the different financing options... T ...

    8 comments - 1 silver bananas - May 2 2013 - 4:40pm -

  16. Why Is Accounts Receivable A "Cash Outflow"?

    When accounts receivable increases, you will be paying something in cash for that increase With accounts receivable, you have to record it as revenue on the income statement At this point you have NOT collected cash On the income statement, the recorded r ...

    6 comments - 0 silver bananas - Dec 31 2014 - 12:49pm -

  17. DCFs

    dcf DCF analysis ...

    6 comments - 0 silver bananas - Mar 3 2014 - 5:27pm -

  18. Financial Sector

    I currently analyze the financial sector for St. Bonaventure University's Students in Money Management group. I'm running a valuation on First Niagara and am having trouble with the Dcf which I think is coming from crazy working capital projecti ...

    6 comments - 0 silver bananas - Dec 3 2012 - 4:53pm -

  19. 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 -

  20. 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 -

  21. Do you have to build a full operating model when performing a DCF analysis?

    Doing one for a stock pitch for an investment club. Is there any quicker way to do it? Intuitively with the accounts needed for a DCF I could always take the shortcut and project capex as a % of sales and depreciation as a % of capex, but do industry prof ...

    5 comments - 1 silver bananas - Aug 18 2015 - 1:34pm -

  22. Short Term debt and DCF

    How should I treat short term debt in a dcf? I know this has been asked, but what changes in this instance is that the company I am valuating only has 50M in short-term debt; no LT debt. I know this isnt included in NWC, but where would I implement this i ...

    4 comments - 0 silver bananas - Jul 16 2015 - 12:18am -

  23. Cost of debt in a DCF model and target capital structure

    Hello Monkeys, Can anyone provide some insights on how to find the cost of debt for a firm and the target capital structure. Cost of debt is the interest rate to borrow. However, a company may have all kinds of liabilities with different rates. How do you ...

    4 comments - 0 silver bananas - May 14 2014 - 3:58pm -

  24. Calculating IRR of cash flows with terminal value

    I have a project with an initial outlay (Year 0) and 10 years of forecasted positive FCFFs and FCFEs. After 10 years, I use a Gordon/Perpetuity Growth Model to determine Terminal Value. I built DCF model and discounted FCFFs with WACC (to arrive at Enterp ...

    3 comments - 0 silver bananas - Sep 13 2016 - 6:21pm -

  25. URGENT! Financial Modelling & DCF Test- How to determine assumptions?

    Might be the wrong section as its for a Private EQUITY gig however it more of an Investment Banking question. Bit of background. I was in Oil and Gas finance where the modelling is much different especially in assumptions where the data is much more strea ...

    3 comments - 0 silver bananas - Sep 23 2015 - 10:15am -

  26. Exit-EBITDA DCF Approach

    When modeling a DCF, I have always used both the Exit- EBITDA and Perpetuity Growth methods as a way to calculate terminal value. But, the more I think of the Exit-EBITDA multiple approach, and what it exactly is doing, I get sort of confused. ...

    3 comments - 0 silver bananas - Sep 3 2013 - 6:52pm -

  27. DCF Question: How valuation changes if I buy a factory with $100 cash?

    Hello everybody, I am working on a valuation question I found in one of the popular interview guides. The question asks me to evaluate the impact on the DCF valuation from the purchase of a factory with $100 cash on year 4 My answer was not similar to the ...

    3 comments - 0 silver bananas - Dec 31 2012 - 11:34pm -

  28. Midyear Adjustment Factor

    Instead of using a Midyear Adjustment factor, does anyone utilize a exponential function? If so, does it drastically produce a different result from a basic midyear adjustment? I am assuming not or it would be used more often right? Thanks in advance for ...

    3 comments - 0 silver bananas - Sep 19 2012 - 5:02am -

  29. Formulas? Any insight is appreciated.

    Hi Everyone, My friend currently works in PWM at a major firm as an Associate. He is basically an assistant but has learned a LOT about the industry. He has a second round interview with a global fund manager that services only institutional clients. Esse ...

    2 comments - 0 silver bananas - Aug 8 2016 - 1:53pm -

  30. DCF Question-- Should Acquisitions be Included In Capex?

    Hey Guys, Quick question on the DCF. After I have NOPAT and I add back D&A and changes to NWC, I was wondering if I need to subtract out just mtx. capex or growth capex as well including acquisitions? The firm that is being valued is very acquisitive ...

    2 comments - 0 silver bananas - Feb 16 2017 - 3:38pm -

  31. Including returns from reinvested project's net cash flows in the DCF analysis

    I perform several DCF analysis daily and have to make analysis aligned to my company's investment analysis proceeds. There is a rule that returns from reinvestment of exceeding cash flows should not be part of a DCF analysis. From my own research on ...

    1 comment - 1 silver bananas - Jul 31 2018 - 2:09pm -

  32. DCF in School vs. DCF in Banking

    So far, we've learned the basics of DCF 's and all the concepts behind them. However, this is my first time in a higher level finance class that requires us to build a full model for a private company. Although I've done quick models where ...

    - 0 silver bananas - Mar 25 2017 - 9:14pm -

  33. How to account for principal payments in a dcf?

    If a company is paying off a significant amount of debt one year, how would you account for this in a DCF? Or would you at all? M&I gives such a confusing answer to this question so I am totally lost.. Thank you for all the help dcf DCF analysis princ ...

    1 comment - 0 silver bananas - Nov 15 2015 - 1:54pm -

  34. Purpose of Recreating DCFs by Other Investment Bankers?

    Hi fellow monkeys, At my summer internship, I was asked to recreate DCFs of certain companies that other investment bankers had already done for shareholder litigation purposes. I never asked them why I was doing this, but I did hear the associates say th ...

    1 comment - 0 silver bananas - Sep 14 2015 - 10:47pm -

  35. Analysis/valuation of real-time advertiser

    Does anyone have experience in analyzing or valuing companies operating in the online real-time advertising industry? I feel like the industry is very different from normal retailers etc and I have very limited experience in this space. So what are some o ...

    - 0 silver bananas - Apr 29 2015 - 3:56pm -

  36. Real Estate Analysis

    How do you value a real estate company? What metrics are different, or how are they different? What if it is a commercial real estate company? Thanks Company metrics valuations DCF analysis analyst real estate investment-banking ...

    - 0 silver bananas - Sep 25 2014 - 4:27pm -

  37. Real case of a valuation fraud from an expert. Some advice needed.

    Hi guys. This is a real case and there is a trial going on (in eastern Europe), I would like some hints from you and maybe even some help based on International valuation standards. There are 2 companies: Company A has 21 mil cash in bank, that's all ...

    - 0 silver bananas - Feb 17 2014 - 2:41pm -

  38. DCF- fast way to predict the FCF growth rate?

    Can we use FCFi*(1+g) or the average growth from the past is a better choice? i=1,2,...,n Thanks DCF analysis ...

    1 comment - 0 silver bananas - Jun 14 2013 - 1:52pm -

  39. Mortgage Insurers Model

    I am looking to model some of the mortgage insurers MTG RDN PMI, and MBI. Any good examples or templates out there? cash flow modeling DCF analysis ...

    - 0 silver bananas - Feb 23 2012 - 5:40pm -

  40. Pro-Forma Question on Case Study Help!!!

    All, One of my interviews is requiring me to value a fictitious company. They give me the Income and Balance Sheet for Yr 1. Its a very basic statement with Sales, COGS, OPEX and NI and CASH, AR, INV, PPE, AP, and Debt. No Dep or Int They basically projec ...

    - 0 silver bananas - Feb 15 2012 - 10:25pm -

  41. Is Yahoo highly leveraged or not? Would you value it using DCF- FCFF or FCFE?

    Thanks! Valuation yahoo DCF analysis ...

    1 comment - 0 silver bananas - Feb 10 2012 - 5:37am -