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Oil & Gas Royalties Model
Does anyone have a solid royalties valuation model / template, or built a few for a deal and be open to discussing details via pm would be cool too. Willing to do some horse trading if so, thanks
Terminal Value for IRR Calculation - Restaurant Franchise
I am calculating IRR from a 10 years projected cash flow + a terminal value. The terminal value I understand is usually calculated as FCFF(1+g)/(r-g). Incase of using terminal value for IRR calcuation should the r= cost of capital or r=IRR (in this case it will be iterative as its being used to...
Terminal Value for IRR Calculation
I am calculating IRR from a 10 years projected cash flow + a terminal value. The terminal value I understand is usually calculated as FCFF(1+g)/(r-g). Incase of using terminal value for IRR calcuation should the r= cost of capital or r=IRR (in this case it will be iterative as its being used to...
Market Cap Issues on Websites
Hi Everyone, This might be a fairly straightforward question but I found a few differences in Market Cap values for Moelis and Co. on different websites. I've seen differences for other companies as well but this one stood out the most. Bloomberg: $2.315B ( http://www.bloomberg.com/quote/MC:US )...
Valuing/selling a single stand-alone restaurant - thoughts?
Been engaged to sell a single, stand-alone high-end restaurant in a major city with ~10mm of revenue. I've started to do some googling and most reports are focused on franchises, chains, quickserve/fast casual and large restaurant group deals. Does anyone here have experience with small restaurant...
Include Value of Step-Up as a synergy?
This may seem like a stupid question, but I'm thinking you would always include the value of being able to amortize the goodwill from a tax step-up when doing an asset transaction correct?
DCF for Private company (WACC)
I have a question about valuation hoping anyone could help. I have a private high-tech company with positive income for 3 years. I would like to use industry average D/V, E/V ratio to calculate WACC and Beta for the cost of equity. However, this company has about 40% preferred stock. The WACC=...
Loughlin Management Partners + Co.
Hey 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 restructuring groups are lean to begin with anyways), but...
Tech Company Valuation - M&A, Private Placement (~early- to mid-stage, early revenue)
Hi All, Wanted to get perspective from PE folks / tech bankers on typical valuation methodologies used for pre-revenue or early revenue companies bought out by a strategic consolidator (e.g., Google) or an earlier- mid-stage financial sponsor. Really looking for that practitioner view in the current...
Valuation of consolidated company
Can someone please help me on how to value the equity of consolidated company (Parent) who has two investments in associate (Ownership ratio: 25% and 40%, respectively) whose business is core of the parent. these associate companies are accounted under equity method so equity pick-up is recorded in...
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: 3 upside vs 1 downside), do you generally assign...
Size Premium for Private Company ($22M Revenue)
Hey guys, I am currently valuing a private company with $22M for my private equity firm. The company has $725,000 EBITDA and is in the HVAC industry (heating, ventilation, air conditioning). I'm currently doing my best to estimate WACC , however I'm not sure what I should add as a size premium to...
Easiest way to get "in" in the NYC region?
Hey all, I'm sure I've contacted most of you by PM in the past. I'm trying to figure out the best way to get into real estate, specially valuation, undertaking, acquisitions, etc. I currently work in middle office at a BB . Would looking into a big shop (CBRE, JLL, CushWake) make the most sense? Are...
In an M&A Model, what exactly are financing costs and why are they ammortized?
As opposed to the transaction costs (advisory, legal, accounting etc) which are merely expensed. Thanks!
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!
Valuations Analyst SRR Offer vs. Operations at Capital Group
Hey everyone, I recently accepted my offer at a boutique valuations firm. I turned down an offer with a large investment management firm in their back office because I did not feel like there were many exit opps from the back office. Did I make the right choice? How do boutique valuations firms rank...
How to Choose Your Senior Analyst
Hey guys, I'll be entering equity research for full-time soon as a generalist and I'll have the option to rank my preferences in what analyst I want to work under. Personally, I want an experience in which I can learn the most from, specifically regarding modeling and value-add...
Many things happened and I'm just full of doubts... Help!
Hello all monkeys, During the last couple of weeks many doors have opened to me and I'm full of doubts about what should I do. My main objective in the medium term (1-2-3 years) is to be in London working for a (big, if possible) PE firm. Bear in mind that right now I am in the Netherlands studying...
Is an integrated financial model necessary for forecasting financials & valuation?
Hi Is an integrated three statement model necessary for forecasting and valuing a company? I have a hedge fund interview and need a DCF model. Is not not possible to forecast unlevered free cash flow using: tax-affected EBIT, add capex, change in working capital, and D&A. Then once you discount...
Valuation question (case study)
Hi guys, I am doing a valuation case study for a company and I am stuck. I appreciate your help. There is two comparable companies given, and I need to compute three valuation ratios (P/E, P/E, P/S). Now I have the following information for these two companies: current share price, sales, EPS and...
Value creation deconstruction in LBOs
Hi guys, One question I have encountered in the past is to analyze the value creation of an LBO . My first thought on this was to deconstruct the IRR or MOIC to see how each individual value driver (I would say the main ones are a) multiple expansion, b) operational improvements like margin growth...
Good Book for Advanced M&A/Corporate Finance & Accounting?
Have come to realise all of the material in books like Rosenbaum & Pearl is pretty simple to me now, so looking for a new book that covers advanced topics in M&A and accounting. To give an example, some of the more technical topics I have come across in my time in IB thus far, relate to accounting &...
Best Practice for Converting Currency for Historical Financial Statements?
Let's say I want to value a company, whose financial statements are reported in Brazilian Reals. I want to convert the numbers into $USD. When I go back to historical financial statements and do the conversion, should I be using the current exchange rate for all the historicals, or use a different...
Alternative Industry Valuation for Competitors w/ Lots of Debt and Inconsistent EPS
Hello, My goal is to get a price per share for a private company using industry multiples. The problem is: (1) most competitors have large amounts of debt (>60% of the company EV ) making it so changes in stock price has little effect in EV / EBITDA multiples and (2) most competitors have...
Answering "why valuation?" when you have a background in IB?
Have an interview with a Duff valuation group (not IB or as they call it Corp. Finance). I had an internship last summer with a small boutique but got some decent experience (not so great modeling exp. and deal flow wise, but other than that it was pretty good). I had an interview earlier with a Big...
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 of the key considerations I should be aware of...
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
how does valuation affect fundraising
If the company did not have their own valuation before asking for money, i think the money negotiation process will be really bad for the company, right? Also if they have >5 investors, how are they going to affect the negotiation? I mean each investor will come up with a different premoney #, so...
Why is a firm valued by future operating earnings only?
It seems valuation as I have learned it focuses on valuing a company's operating potential, but surely $10bn of non-operating assets (property say) are not irrelevant and add value in their ability to generate cash when sold?
Valuation Case - Companies with real state
Fellow monkeys, During another day of valuation, something crossed my desk. It was an M&A advisory for a small industry (
Business Advisory, Financial Consulting, Valuation, etc?
So after deciding that 90+ hour work weeks are not something that I can do, I have been looking at other career paths, specifically valuation, business advisory, and financial consulting. The bad part is that I'm having a hard time finding firms that do this sort of work, so far I've been looking at...
Assessing company for potential sell-side process
I am a starting analyst and would need some tips on how to evaluate a company whether its a good target to advise as an M&A advisor i.e. there is sense to finding a buyer. Apart from the generic things such as market share, assessing margins, etc. I would need to conduct a deeper and more...
What creates the Zing between Buffettology and Valuations?
Kaboom!! We raced through the Income Statement last time (If you missed it, you can check it out here ) and we are gonna sprint through the Balance Sheet now. I know ye all must be getting impatient to marvel at how Valuations are made more interesting through a Buffettology focus. So here goes...
Does this model make sense?
I am going to take the Break into wall street modeling class. Before I start, I made a model to see where I am at right now. Anyone mind taking a look? and Any suggestions? It's a very basic 3 statement model with a DCF valuation.
Experiments in online teaching: My Spring Classes and an Online Valuation Class
In my last two posts, I talked about the big picture, focusing on why I think MOOCs stumbled in the last year and the moat that gives universities their power to offer a "bundled product" at a premium price. In this one, I want to get back to the theme of experimentation and the future of online...
Big 4 TAS Interview Questions
I just scored an interview for a full-time entry level position in the TAS group of a Big 4 accounting firm (valuation group). This was sort of a back up plan and I've spent the last 4 years of college gunning for ER . Anyone know what I can expect to be asked by HR during the initial phone...
What discount rate do you use in your valuations?
Hi guys, was hoping I could get some insight on this esp. from those buysiders at long only value shops i currently work on the buy side focusing on resource sector companies, I don't think I've ever calculated a company's WACC outside of my MBA studies, we always use a 10% discount rate. The...
Investment Banking vs. Business Valuation
What are the pros and cons between investment banking and business valuation (think Duff and Phelps)? I am looking at both for full time recruiting. At the end of the day they seem to be very similar so I was wondering what sorts of things I should be thinking about when trying to decipher which...
Trying to value Cincinnati Bell (NYSE:CBB)
Was hoping that you fine gentlemen could potentially help me with some difficulties that I'm having with this valuation. I was tasked with valuing CBB as a stand alone entity. The Details: CBB spun off CyrusOne (CONE), which it acquired in 2010, in January 2013. Originally, CBB owned a 69% stake in...
Rosenbaum DCF Valuation Temaplate
Anyone have the valuation Rosenbaum templates?
Team Structure - Valuation
Hi guys, I would like to know more about team structure and how tasks are divided between the crew during a valuation process. Is there a guy that focus in forecasting and another in modeling.. and so on - this kind of perspective about the work management.
'Invalid' Multiples?
Hi all, Currently work in audit/assurance and aspire to go into banking at some point in the future. When I had a banking interview at one of the big 5 in Canada, I got asked about certain 'multiples' (not typical ones like EV / EBITDA or P/E, PEG...) and why these don't necessarily make sense....
Gross vs. Net Cap Rate
All- I have received an interview test from a small RE acquisition firm. The company primarily deals with SFR (single family rentals) and small apartment buildings. For the test, they asked me to evaluate 3 SFRs which includes determining the rental value, price we should pay, and a gross and net...
Valuation of the week 1: A Tesla Test
I taught the first session of my valuation class, that I previewed in my last post , today. As part of that class, I do what I call a “valuation of the week”, where I pick a company and value it and then post both my valuation (with the spreadsheet and the raw data that I used) and a shared...
Valuation at Hedge Funds
Hey everyone, I just recently started my own PA and was wondering how analysts at equity long/short funds value companies. From my reading, people in the real world (outside academia) rarely use things like the DCF , DDM, etc. Most people use ratios like EV / EBITDA , P/E and other things like that....
Private Market Value + Catalyst (Gabelli)
Hi Forum, I have two questions: 1. I was wondering if someone could share resources (i.e. books, links, videos, etc.) on how to gauge Private Market Value+Catalyst (PMV). I have watched old Gabelli's videos on youtube (Wall Street Week), and the only book on the topic I managed to find is a chapter...
question about mid year convention
Hello Monkeys, I'm a little bit confused about the concept of mid year convention. Rosenbaum 's guide says that PV1=FCF1/(1+r)^0.5, PV2=FCF2/(1+r)^1.5 ........ PV t= EBITDA *EM/(1+r)^5 however, that's assuming that the valuation date is at the beginning of projection year 1. What if, let's say, the...
Most appropriate valuation multiples for a company like McDonald's?
I am a little bit confused as to how to approach valuing McDonald's in terms of what valuation multiples to choose. I am currently doing a valuation exercise given by my investment club. My comps are Burger King, Dunkin Brands, Starbucks , and Wendy's. I am definitely using EV / EBITDA because it...
How you got into REPE?
Hi guys. Is this track possible? What are some ways to move on to REPE without IB experience?
Resume Critique Valuation to IB
Hi fellow monkeys, I'd appreciate it if anyone would like to give me some feedback on my resume. I am currently targeting IB roles and feel like my current work experience section could use an overhaul. Any feed would be appreciated, and best comment gets a silver banana!
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