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Interested in joining Lincoln VOG. Insights into the interview process (ik there's a case study, I believe a comps analysis) and general thoughts on the group would be appreciated.

I’m a recent Master’s in Finance graduate with a 4.0 GPA, internship experience in FP&A, club experience in equity research and due diligence, and a capstone focused on M&A valuation. I’m proficient in Excel, Python, and financial modeling. I’d love guidance on how to position myself better...

I Need to create a DCF for an Asset management firm. To forecast the Revenue I Need to forecast AuM as revenue is a percentage of AuM (management fee). Future AuM is driver by two ways: Net Inflows (Outflows) Positive Product Returns (Losses) e.g. Dow Jones So I Need to forecast Both options. How? I...

Hi all, Does anyone have resources / recommendations for resources specifically for valuation of movable goods? e.g. locomotives, aircraft... Thanks!

Very new to this all so bear with me. If I need to do a valuation analysis on a private company in Series B, what companies do I use to benchmark/compare? Would I only use public companies or try to find info on private ones? Having trouble finding info on private companies (specifically their...

Hi everyone, I was tasked with coming up with an indicative valuation or share price for a family-owned company (on my mom's side), as some members are contemplating a sale of their stake. The company in question owns a parcel of land which it rents portions of it out to a few tenants (biggest...

I have a question that keeps arising when conducting valuations of private companies with sought after growth/primary capital (capex, NWC). This growth capital might be in addition to the secondary portion, and it might be that in addition to the equity capital, the company raises debt to finance...

Hey everyone! I haven’t posted here in a few years, so I might be a bit out of the loop. After finishing my master’s program, I took a job in a small-to-medium-sized business valuation firm, primarily working on fair market valuations for gift & estate, litigation, and transactional purposes for...

Hello everyone, I understand that asset-heavy companies are typically valued using an EBIT multiple. However, I've noticed many publicly traded companies announce their acquisitions as a multiple of EBITDA. When I divide the Enterprise Value by EBIT for these acquisitions, the resulting EBIT...

Hello! Currently prepping for HF interviews and opening up a new thread for a practical question for valuation typically seen at HFs - following a more conceptual thread on what a good variant view actually consists of: https://www.wallstreetoasis.com/forum/hedge-fund/… Key qq is (using Lowe's...

Hey, I am in a dilemma as recently I got two internship offers and I cannot decide. Citi Finance Analyst Program (Middle-office: Valuation Control, Market Control, Risk,Treasury)- 2years Pros: IB Brand Cons: No direct IB/front-office experience EY Valuation Internship (Financial Accounting Advisory...

Might be a stupid question as Im new to valuations--doing dcf valuation for dave and busters and realizing from their financials that they had a rough 2020, leading to some messed up numbers on the 2021 books. was gonna use 5y historical data to project income, but was wondering how and why I should...

Why is the P/E multiple often used in the valuation of small equity purchases? In other words, when acquiring only a minority stake. What is the reason for this?

Somebody gave me this explanation: EBIT deducts the full Depreciation expense on both owned PP&E and leased assets, but it does not deduct Interest from any source (Cash or PIK interest on debt, amortization of OID and financing fees, lease interest, etc.). The rule with valuation multiples is that...

Does anyone have any insight into a range of valuations for SaaS / software companies that bill their clients on per use or consumption basis as opposed to more standard monthly or annual recurring contract? I would love to get insight into what the multiples are on software revenue or EBITDA.

What is the difference between the DCF and the LBO in the cash flow calculation? With the DCF, you calculate the FCFF and assume that the company is fully financed by equity. What cash flow is calculated for the LBO?

Hey everyone. To give you a brief background: - Based in Dubai - Just graduated from a leading uni in the UAE, magna cum laude, studied finance - On track to finish all 3 Levels of the CFA by next year (I’ll be 23) - Got a job in valuation advisory at a big CRE firm (think CBRE,JLL,C&W). Mostly...

Let's say the PE sponsor enter with 51% stake and the rest is held by the promoters. Let's say PE sponsor tell to the management of the company that if it achieves more than 30% IRR at the Exit, PE sponsor will give out 2-3% stake to the promoter as ESOP. How will this affect the exit stake % and...

Obviously a higher debt/equity ratio = Higher risk, which should impact both cost of debt and cost of equity and in turn WACC. I know there's a optimum capital structure to get the lowest possible WACC and therfore a higher valuation but I can't find any actual figures for this. Is there any...

Hi All - I currently work at a real estate investment shop and we're kicking around the idea of expanding into the renewable space. Specifically, we're looking at operational solar farms with a long term PPA in place with an investment grade off taker. We're trying to size up the opportunity and...

Hello all, Appreciate that DDM / FCFE val will always be lower than DCF / FCFF val. The problem is that the EV implied by my equity valuation (+ net debt), is far too low vs the EV methodology as it is. Can anyone help me justify why such large discrepancies are rising in this company / able to...

Hi all, In regards to the % contribution of the (discounted) cash flows vs % contribution of the (discounted) TVs that aggregate to the total EV: | Is anyone able to put a finger on the usual split between the two contributions across their personal experiences? Does any proportion raise a red flag...

Hypothetical situation: Company has been expensing some maintenance Capex during the TTM period. The Company / Ibankers now want to add-back this maintenance Capex expense to boost EBITDA. What would be the effect on valuation? I believe there should not be any effect. Since the cash flows should...

Hi all, I am a first year graduate working for a legal/compliance team at small asset manager in NYC. I graduated with a finance/legal studies degree from a relatively "prestigious" university (non-target, at least non-target for the northeast). I took this role to help decide whether I should go to...

Hey all, After some exhaustive research that has given me basically zero insight into what this role entails, I decided to resort to WSO. I am being interviewed for a Junior Energy Operator role at Hartree Partners, London in 5 days and need to get an idea of what I'll actually be doing, and my...

I have 2.5 YOE in B4 and have been trying to break into IB for the past year. With exposure to business valuation, financial modeling (ie work with dedicated modeling team), and transaction support services, where can I reasonably look to break into? I've interviewed for a variety of different roles...

For an interview I'm reviewing (among other things) the three broad methods and when to prefer one over another: Income-based/DCF (discounting FCFF by WACC, probably going to ignore Cap Earnings in time interest of time) Market-based (P/E, P/Sales, P/CF, EV/EBITDA, EV/Sales comaparables) Asset-based...

If the FY ends at the end of January, how should the calendarization be set for 2021, for example? I would then take 1/12 of FY 2020 and 11/12 of FY 2021, or would that be wrong? Thank you in advance!

Hi, Would you recommend buying the Rosenbaum as a book for 100€ or is a pdf version from 2009 also sufficient? Thank you in advance! :)

Hello, eager college freshman here trying to learn how to master excel for IB and all the like that would be helpful in applying to and working in IB. I know WSO academy have these, but as a college student, would prefer to complete it for free. Any recommendations and suggestions would be greatly...

I am looking to get assistance on finding out the Cost of Debt for a Canadian Company - Dollarama so that I can ultimately calculate the WACC(Weighted Average Cost of Capital). Since I am new to creating an Equity Research report. I was struggling to find the right kind of data from the Audited...

Hi, I want to take investing into public equities more serious, but I have some issues with the research process and would like to know how other people go forward in their process. I use a basic stock screener to find potential companies with the right characteristics e.g. EV/EBITDA, FCF Yield etc....

I'm curious about why do we forecast change in inventory using turnover ratio? Basically, we use historical manufacturing cost per quantity and it means we unknowingly assume that manufacturing cost itself is cash out (forget about tax rate). Then, when revenue grows (of course cogs grows), then...

I am a consultant, not banker so I have some questions regarding valuation. I do a lot of CDDs of sponsor backed assets. In almost all of these cases the firms VDD / company presentation boasts about it strong growth (which is primarily due to acquisitions). Reading financial statements becomes...

I am a consultant, not banker so I have some questions regarding valuation. I do a lot of CDDs of sponsor backed assets. In almost all of these cases the firms VDD / company presentation boasts about it strong growth (which is primarily due to acquisitions). Reading financial statements becomes...

hi team... i am confused. scenario below: Tax rate = 40% EBIT = $150 Interest expense = $100 Every template LBO model I see would calculate taxes by taking $150 - 100 = $50 * 40%... However, I am also seeing online that interest expense is not fully tax deductible... that there is a 30% limit of...

I’ve been interviewing at a lot of boutique CF houses and initially I thought I had a strong profile after working c. 3 yrs at a Big4 (Business Modeling and Valuation team). As I have +6 yrs of experience they keep telling me that modeling/valuation work is not as important as understanding the...

Hello all, I am currently doing an assignment and one of the assumptions is "working capital drivers stay the same". How would you interpret this? Thanks

How do you guys update yearly DCFs when a company releases their 10q? Do you need to increase the frequency to quarterly or do you adjust the yearly assumptions? What other alternatives are there? Thanks

Is IRR something worth including in a stock pitch if the investment horizon is only 12 months? I'm not sure because I usually like to include it but that feels like a really short time for an IRR.

I was asked this recently and didn't know how to answer: If you know what IRR PE firms are targeting in your region, when valuing the business, why not just take cashflows to equity discount by IRR and add net debt to find value? This way you can avoid calculating cost of capital and WACC which are...

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...

Company A in the United States has a 51% stake in a Brazilian mining company which is 49% family owned. They want to buy the remaining stake off the family. How do you value it (involves CAPM,currency, WACC, multiples, etc.)?

Does anyone know how to value a medtech company pre-revenue? I am assuming it has something to do with addressing the TAM, then looking at revenue build, then some how looking at comps, then building out cash flows based off of the TAM for a DCF, usually longer than 5-10 years. But I don't know...

Hi, I was hoping to understand the mechanics of the underwriting fee rebate in the Levfin space. Just wanted to know why this exists and how it's calculated - thanks!

[Re-posted, as my original post was too lengthy] Hello everyone, Seeking career advice in CRE here. I graduated in September 2022 with a Bachelor's in Business Admin and Finance from a top-tier French business school. Interested in CRE, particularly Acquisition. I completed multiple RE internships,...

When should I use IRR, NPV, or TV when assessing what a buyout is worth? Also going to ask in the VC forums but curious what the hedgies here say The company is growing but from, say, 3m in revenues

Freshman here. When should I use IRR, NPV, or TV when assessing what a buyout is worth? Also going to ask in the VC forums but curious what the hedgies here say The company is growing but from, say, 3m in revenues Also curious how to figure out growth assumptions, risk-free rate of a startup (would...

hello team. i am confusing myself badly and would appreciate your help here. example: Buyer offers seller $1B TEV, cash-free debt-free basis. Seller has $200M of existing debt on the business and $100M in cash. So prior to or at close, seller uses the $100M of cash to pay down debt to now $100M. but...

Hello, For IRR calculations: 1) I have calculated valuation using NPV. 2) Should this npv (i.e. acquisition cost) + all other transactions costs be put on day 0, followed by the fcf line in the same line, to run the IRR formula from? 3) how is the discount treated in the irr formula? should i use...