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McKinsey Valuation Book DCF Model
Does anyone have or know where to find the DCF Model for the 7th Edition of "Valuation Measuring and Managing the Value of Companies" by McKinsey? Reading it off of Perlego rn. Thanks!
Video of DCF Walkthrough for Company
Hi all. I'm wondering if there's a video tutorial or pdf guide that you guys would recommend for a 0-100 DCF walkthrough of a company. So to clarify a bit, I mean literally starting from nothing, getting the financial data from SEC filings and such, inputting the relevant data, and...
Loan interest paid: cash vs accounting
Hi, I see a lot of assumptions being made in models when modelling cash interest vs accounting interest. For simplicity let's say this is interest being paid out for term loans. What should, in concept, be the actual difference in modelling the two? i.e. if cash interest = op. balance * interest...
Time Frame of Valuation through DCF
Hi, I'm a beginner and I know this is a stupid question, but I just started making DCFs. I was wondering what the time frame on the share price given to a stock by the DCF is, and how to change it. For example, if I wanted to create a 3-year price target, would my price target just be what the DCF...
NPL Portfolio Valuation Example
Hi guys! I hope you can help me. It seems impossible to find an example of a NPL portfolio online. I'm very close to get a new job and next week I will have a final assessment with this company. I've been asked to price a NPL Portfolio through a DCF Valuation but I can't find any practical example...
Standard Practice for Building a DCF when Company is Partway Through FY
Title says it all. I am trying to build a DCF to help with stock pitches so that I can land a role in ER. I am currently looking at a company that has just reported Q3 earnings. Is it standard practice to only consider the most recent 10-K and forecast the current FY, or should I use TTM method to...
DCF Standard Procedure For Company Part-Way Through FY
Title says it all. I am currently trying to build a DCF to practice and to hopefully get a role in equity research. The company I am looking at is currently in Q4 of its fiscal year and just reported Q3 earnings. So, how should I build my DCF? Should I begin my forecast with the current FY even...
I don't understand DCFs
I've watched multiple videos on DCFs and I still don't fully understand them. Ik the procedure but I don't know how to make the assumption for the future earnings. (I swear I'm not stupid lol)
Dynamic WACC
How would you model a dynamic WACC?
London EB Interview: 1hr DCF modelling test
I have a 1hr DCF modelling test tomorrow for an analyst role at an elite boutique in London. I can build a complete DCF within 50 minutes to a good standard, so I am relatively confident of my intrinsic modelling skills going in. My main concern is the time it'll take to gather commercially...
Interview question: How to would you value a toll road / airport using a DCF?
Could someone help me prepare for this interview question? Interviewing for a greenfield listed infrastructure fund.
Customized DCF model service if anyone is interested
customized DCF service, if anyone is interested? The finished model is shown as below. It can be completed within half a day to a week.
Problem forecasting debt payments in dcf
Hi, so I need to forecast debt schedule from this info: “Total amount borrowed is $97m, debt is amortised over 15 years, all-in annual cost of debt is 5.50%” This doesn’t make sense right? If debt is amortised over 15yr. annual payment is $97m/15 ~ $6m (flat). You can’t pay off this amount...
Basic questions on a DCF analysis for a foreign company
Hi, Two questions pertaining to a DCF analysis I'm doing on a foreign company. I'm trying to understand the difference or similarity between what they call CFADS (cash flow available for debt service) and the unlevered free cash flow. I know UFCF is EBIAT + Depreciation + Change in net working...
Cowen - Modeling Test
Hi Monkeys, Set to take a 4 hour case study (assuming a modeling test with recommendations) at Cowen here in the upcoming weeks and trying to prepare. Has anyone taken something similar with the firm or have tips in how best to prepare? Would appreciate any insight. Cheers.
Do you keep the discount rate constant in a DCF or decrease over the explicit forecast period?
Dear all, Should I decrease the WACC for a target in the explicit forecast period to reflect maturity or keep it constant? A decrease may be difficult to substantiate, whereas a constant discount factor would be overly simplistic? By constant I mean, ie 10% over 10 years with the change only...
Business valuation - Please Help
I am currently doing work experience for an investment bank and will be given a task to value a business using either Discounted Cash flow (DCF models) or transaction comps. I understand the basic principles of working out cash flow and then applying the interest rate to get discounted years but I...
ROIC and NOPAT margins seem unreasonably high
After completing a DCF for a target company I calculate a few metrics for an executive summary. This is a SaaS growth equity investment and the target goes from unprofitable to profitable through the holding period. In the last historical year the NOPAT margin and ROIC are 4.3% and 8.5%,...
DCF Valuation
I'm looking at an acquisition of a portfolio of assets - some already operational and others in the development process. Acquisition will be on a cash-free debt-free basis, but will subsequently be financed at closing with a new senior facility. Couple of questions just to make sure I'm on the right...
How to value properties overseas - DCF (?)
Okay so I have a DCF valuation problem/buyout problem. I'm basically valuating a company and as you guys may know you value the company itself and then add the value of the properties and that what I'm going to offer my seller. I have or can valuate the property that is in my home country but I...
Gas pipeline valuation
Hi guys, I am currently interviewing for a role and have been tasked to build a valuation model for a gas downstream and pipeline player (i.e. they supply products and the associated infrastructure). I'm struggling on a couple of notes: 1) Typical forecast horizon - should I be forecasting out for 5...
Fiber (FTTH) DCF Modelling Help
Hi! I've been tasked with creating a DCF for a fiber rollout across 5 cities. Clearly the initial capex is high and is creating a lot of negative FCFs and consequently a negative EV? How long should my forecast be? Should I still be doing a terminal value or just a very long 20+ year utility like...
Help with DCF model
Hi guys, I'm a second year student and I have a problem with my DCF model which was prepared for my paper work at university. The problem is the following: % of Implied EV from TV is 87%. As far as I know, this is an extremely high percentage. That is why, I would like to ask you for your help. I...
Forecasting APIC
Hi Everyone, I am currently building a 3 statement financial model and i am trying to figure out how to forecast additional paid in capital? In the last three year it has been 2017: 126,490; 2018: 937,965; and 2019: 949,321? I am at a lose on how i should project this into the future and it is a...
DCF Valuation Net Working Capital
Hi All, I am currently trying to complete a DCF, but am stuck on what I should select in terms of Capital Assets vs Capital Liabilities. Below is a screenshot of the balance sheet, I know typically Assets include: AR, Inventory, other receivables, and Other current assets. While Liabilities...
Using complex excel function in financial modelling (Accounting, M&A, LBO, Valuation)
Hey monkeys, I am training in excel and I was wondering by this question: When do we use for instance "index-match" or "sum-product function" in financial statements, DCF, LBO or even a Merger Model. Could you please give some real-life example ? Thanks,
How to build real modeling skills?..because my shop sucks.
I graduated from undergrad and went straight to PE after doing a couple summers interning in IB. Unfortunately, the fund I am with does a shit job of teaching us how to model or giving the appropriate number of reps to figure it out. I'm trying to do what I can to teach myself but am unsure exactly...
Modelling a DCF for 10 years with just 2-3 years of financials
Hello everyone - hoping to get some insight from someone more experienced. When building out a DCF over a 10 year period, how do you forecast FCF? I only have a 3 statement model going out 3 years and wasn't sure if It made sense forecasting out the 3 statements all the way down to 10 years -...
DCF Model Review
I consider myself to be a novice, at best, when it comes to complex modeling, but im curious if anyone would be interested in reviewing my DCF model? It is too large to attach, but i am happy to DM. Thanks!
DCF: "Shock" to Revenue Help
I have been building a DCF model in my spare time for some time now and it had not occurred to me that it would be appropriate to have a scenario where a serious 'shock' to the system occurs, until recently. Obviously COVID-19 is going to create a shock to the revenues of certain sectors as people...
First time building a DCF model... how can it be improved? (attached)
Can this type of DCF model structure be used? Also, I'm looking more into the numbers I'm using at the moment as my target price seems too low, do any stand out as off? What type of assumptions are used in professional ER roles? Thanks in advance for any guidance that you can provide.
Discounted cash flow (DCF)
Hello everybody, I cannot understand 2 questions so far in DCF valuation: 1) Why cash which is standing on a balance sheet is not included in valuation? We calculate only enterpice value calculating FFCF, but ignore the cash which is outstanding in the firm at the moment. If the company at the...
Run your life through a DCF
Got this as a recent interview question, was curious how some of you guys would answer it. Any takers?
Valuation of Metals and Mining Companies
Hey everyone, I just thought that I'd share a great resource for information on the basics of valuing metal and mining companies. The pdf doesn't cover everything by all means but it is a quick beginning step for one to build out their model. It also has links to about 10-15 other PDFs that cover...
does Employee benefit obligations affect cash flow statement?
should the increase in EBO be added back to calculate the cash flow statement? im using the indirect method.. thanks!
McKinsey 2010 Valuation DCF Model
Hi! Did McKinsey improve their DCF Model in 2010? I have their 2005 model and I wonder if I should buy the new one. Martin
Capex vs Acquisitions
Company I'm analyzing for a project has low Capex investments but has acquired 2 subsidiaries in the past 2 years as shown below: 2010 2011 Capex 51 60 Investments in subsidiaries 7,012 6,550 While forecasting capex as a percentage of sales, the figures are obv low. Would like some input from...
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 made themselves or at work that I could go off of? I would like to...
Equity Research: 3hr Modeling Exam
Hey this is kind of last minute but I have a 3hr modeling exam very soon for a Equity Research position. What should I expect? What is the best way to prepare for this? Does anyone have a model template that resembles what the exam will look like? Thanks in advance to anyone who can help me -- it...
Expected stock price 2 to 5 years from now
Hi, How would I go about modeling the stock price 2 to 5 years from now? Would you just extend the forecasted period by the necessary number of years or use a different approach?
Capex - Media companies
Hi, I am analysing a media company and when considering the Capex on the cash flow statement, it only includes PP&E. However, the company has substantial "programming costs" as it purchases rights for programming. The programming costs go straight to P&L and are not part of the inventory. I am...
Careers With The Most DCF Modeling/Financial Forecasting Besides Banking?
What are other careers besides investment banking , consulting and PE that require a lot of financial modeling , revenue projections, etc.? The thing that appeals to me about banking is that it is quantitative (the modeling aspect), forward looking (compared to accounting) and really requires one to...
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