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Portfolio Valuation Role inside AM
Hey guys, I recently got an intern offer from valuation team from PIMCO, but not really sure if this is a good opportunity. I guess this is more like a back-office role which covers the valuation of all the portfolios within alternative funds. Personally, I am very interested in a career path in...
Preparing for Deloitte/PwC Valuation and Business Modeling Interview/Case Study
Hi All - I have 2 interviews, one with Deloitte for their Valuation & Business Modeling team and one for PwC for their Deal - Valuations team. (Both in Dubai, UAE). I have been invited to do a case study for Deloitte - Valuation & Business Modeling. Does anyone know what this case study could look...
ER is dead so I'll try this forum...need some guidance regarding splitting weight for DCF/Comps valuation
TL;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. Disclaimer: I'm creating an equity research/stock...
Questions about LBO share price
When inserting an LBO valuation into a football field graph; how do you get to the lbo share price range (min and max)? It doesn't make sense to me to enter the entry equity value divided by # of shares since the capital structure is mostly made out of debt, do enter the exit equity value? I can't...
Football field graph - how to reach min and max DCF values?
Hello 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 get proper min and max values for the DCF method?
Valuation Internship to investment banking?
Hey everyone, I'm currently a sophomore at a semi-target looking at summer jobs. I recently received an internship offer from one of the largest Valuation services firms. However, I was wondering if this would help or hurt me when I try to apply to the SA programs at BB IBs in the coming months. I...
Rosenbaum & Pearl V2 - GODSEND - Models
Team, I recently purchased Rosenbaum and Pearl V2. The book is a GODSEND! (Particularly the new buyside chapter) Can anyone advise me on how I get hold of the Excel models to accompany the book? Thanks in advance!
DCF/Comps Weights...how do justifiy subjective decison?
TL;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. I've built a thorough DCF and comps model from...
Excel and Open Notes on a Valuation Exam
So my valuation professor is allowing our class to use Excel, open notes, and open book for a midterm. What kind of excel models, solvers, macros, etc, would you prepare for the test (considering time-efficiency). Here is a overview of whats being tested and what to watch out for: "What follows is a...
Big 4 TAS: Valuation or FDD to transfer to IB?
Which is more relevant for IB? I have offer for both. I plan to work 2-3 years then exit to IB (as in my country IB rarely recruits college grads). In the end I went with Valuation but I still have time to reconsider. Valuation Pros: - experience with modeling (DCF/comparable company/precedent...
How to value running brick plant?
If one company/individual wants to buyc a brick plant/(Or the company/individual wants to sell its brick plant), how can they value the brick plant? What kind of financial model they can use?
Silly question relating to company valuation
Hi guys, I'm clearly missing out on something as I'm a bit confused about something. Sorry, this might sound silly: To value public companies (find the enterprise value), why can't you just find the equity value (by current share price x fully diluted outstanding shares), and then just add debt,...
Effect of Debt on stock prices
Hi everyone, what is the effect of leverage on stock prices, should you expect better performance from a company with high leverage that is not going to suffer from cyclicality/downturn? My understanding is that higher leverage boosts ROE so you should expect better performance from that part. Also,...
What does P/B relative to ROE tell you as a valuation methodology?
Saw a research analyst talk about valuing banks using P/B relative to ROE. P/B makes sense as they hold more liquid assets but why relative to ROE?
What question would you *like* interviewers to ask you?
We intend advertising some corporate finance related positions early next year and I hope to be interviewing candidates in Feb or March. While we have all the usual interview questions on the table I am hoping here to get your (candidates') view on questions you would like us ask you. Perhaps...
How do you account for FX risk in your Risk-Free Rate?
Got this question for an interview earlier this week. Anyone knows the best answer to this? Also, anyone can share similar interview questions (more advanced questions, not covered in BIWS guide) they faced pertaining to CAPM and DCF?
What makes a good VC? (Research project)
Hey everyone! Hope you're having a fine Saturday. I am working on a stats project and have decided to do it on what makes a successful VC . I need to come up with both quantitative and binary qualitative variables. Here's what I've got so far: Quantitative: -total $ amount raised in all funds -total...
General Financial Analysis questions
All related to balance sheet , earnings, cash flow adjustments in order to analyse a company wisely and distinguish between accounting and true economic numbers
How to value fintech companies?
Asking for interviewing purposes. How do you go about valuing fintech companies, particularly payment companies and robo-advisors? How does a company like Betterment get an $800mm valuation? What about companies that are pre-revenue or with negative earnings? Aside from the technical aspects, trying...
Valuing Financial Service Firms
I'm having difficulties with sifting through accounted debt from Financial Service companies and choosing whether to assign certain debt as raw material or allocating it as a liability to determine cash flows. Ultimately, I was wondering if anyone can suggest ways they have gone about valuing FS...
Question for smart people only: Will D/E change after privatizing a state-owned enterprise?
Hello smart friends, I am tasked with valuing a state-owned airport that's in consideration of privatization. The enterprise is 100% debt financed and is not for profit. I must use DCF . I projected the FCF with the assumption that after privatizing the airport will have to expand operations in...
Airport valuation: What discount rate to use?
I am valuating a public not-for-profit airport that is set for privatization. What discount rate can I use to do a DCF?
No return offer - still no FT offer
I did not receive a return FT offer from a mid-tier restructuring boutique. After 2.5 months of intensive recruiting and networking with regional boutiques, I haven't received an offer. Banking / Big 4 valuation seems pretty unrealistic, given that the recruiting cycles of most firms have ended. I...
Analysis and Valuation Models - Build with a template model or build from scratch?
Each company and each analysis is different, however, the "bare-bones" fundamentals are the same for DCF , Comps, precedent transactions, etc. So with that, do you guys build models and valuations from scratch (as in format, labels, sheets, cells, everything) or do you use a generic bare-bones...
Activision Blizzard: How to project Revenues
Hi all, Im currently working on a personal project related to Activision Blizzard. Now im trying to understand is the company KPIs as a way to project the revenues. What is the correct way to look at this company?, project MAU? or perhaps their most important IP? Thanks a lot.
Valuation of a company with high inventories and debt
Hi, We are just in the middle of modelling the financial statements of a meat company, with high level of inventories (think 9 months of salesm ham company). This company has a level of debt, we suspect associated to that inventory. That debt has a cost, so when we calculate the equity value of the...
Walk me through a deal you did this summer.
So this summer I interned at a small boutique and felt I got good experience beyond the usual bitch work. In terms of modeling though, my main exposure to it was pulling comps and creating the P&L with the analyst. However, I was taken off the deal because something else was more urgent that they...
Best method to valuate a company that has negative net income.
Good Afternoon, everyone! I have 2 inquiries related to the right selection for a method to valuate a company: 1.- Which method should I use to valuate a company that has the 2 last periods negative net income. 2.- How to valuate a company that has not started to operate - ( It stills in investment...
How to value a concession based power company?
Got asked by my friend on an interview question about how to value 20% equity stake in a single asset power company with a remaining concession of 15 years. My thinking is as follows: 1. Project the financials of the company for 15 years till the end of concession 2. Calculate the FCFE (primarily...
How Quick will it Snap ? Valuation of SnapChat
Snapchat (recently renamed Snap Inc.) has filed for an IPO reportedly set for Q1 2017. Snap is seeking a valuation of $25 Bn according to reports at Bloomberg . The question arises if such a rich valuation of 25X Forward Revenue makes sense at all. "At $25 Bn, Snapchat would have roughly the same...
Consultanting independent member firm
Dear members I am an owner of local consulting firm (audit, valuation, banking consulting, tax, accounting) in Asian small country. Our company is still small compare to the big 4 accounting firm in our country. But we really want to expand our business and hire some foreign consultant or specialist...
How to do entry analysis on private companies?
Hey everyone, I was recently interviewed for an internship with a local Investment Bank. More specifically, it was for their Mezzanine Capital Unit/ private equity arm. After the interview, everything was going fine and I had a good feeling. However, they asked me to do a quick analysis on a private...
Going 'backwards' from Valuation to Auditing
Hi, I worked at a Big 4 Valuation for a year until I had to leave the country due to the military circumstances I am eligible for (had I stayed in the country). I was in equity research for half a year before in Dubai. I fortunately have a few offers I can ponder through. I also have a final...
Valuation of an intangible asset (technology / R&D)
Hi, How would you estimate the value of an intangible asset, more specifically an R&D formulation? I represent an industrial buyer, who is considering to acquire an R&D formulation from a competitor. The products can be sold to our clients current customers, but will require some minor...
Low R-squared
Hi Guys, First of all - this is my first post so I'd like to take this opportunity to thank you for everything I've learned from you so far. I've got a question in the scope of statistical analysis of stocks and indices. How would you interpret having low R-squared values for most of the companies...
Balance Sheet Driven Companies
What is a balance sheet driven company? Why is the valuation of balance sheet driven companies different from other companies?
Oil & Gas Valuation Model
Hi All, I was wondering if you guys knew a good website for Oil & Gas Valuation modeling, or if you could share a simple model with me that would be very basic .. Many thanks for your help
Am I thinking about this the right way? (valuation question)
Let's say that someone says that the value of an asset is $0.50 to EPS on an annualized basis. If I then assume a 10% cost of equity, would a rough way to calculate the present value of the asset to equity holders be: (0.50)/10% = $5.00 per share.
Valuation Career Promotion Structure?
Can anyone provide insight as to what the promotion structure is for a valuation analyst who stays at a valuation shop and approximately how long it takes to reach each position? So far I've gathered that it goes Analyst->Associate->Sr. Associate->? Thanks guys!
Valuation Suggestions for project
Hello! I'm new here and have a problem that I need help with. I am taking a class in Investment Banking this semester and want some help from more valuation-savvy people. I have a project for class and decided on this theme: Take a company, try 4 different valuation methods on it, compare the...
Advice - BVal vs Audit for ER
Hello Monkeys, I recently received an offer for a boutique IB on the business valuation side. The role includes utilizing DCF and multiples models for fairness opinions, employee stock option plans (ESOP) valuation, purchase price allocation, and goodwill impairment. The bread and butter is 409a...
How to calculate interest rate on capital leases?
Hey guys, I'm doing corporate valuation for Kohl's and in order to calculate the cost of debt, I need to calculate the YTM on the bonds and interest rate on the capital leases and then take a weighted average of these two. I calculated the YTM on the bonds, but still struggling with calculating...
Young company valuation
Hi, So recently I was in a recruiting process for a position as an equity researcher for small/midcap tech companies. As a part of that process we were asked to do a small analysis of a firm. They were happy with my description and analysis of the firm and industry. However they were dissatisfied...
How Tax Rate affects Enterprise Value (EV)
Hi 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 my experience/observation, I think it's positively...
Deloitte - Financial Valuation & Modeling - Consultant (NYC)
I will have an interview with Deloitte for Financial Valuation & Modeling - Consultant position. The consultant will work at financial valuation & modeling team within Advisory. I just researched similar positions from LinkedIn. Most associate consultants have MS Financial Engineering degree and I...
Have Unicorns Lost Their Magic?
From an article in The Economist magazine on November 28th, 2015 titled The Rise and Fall of the Unicorns. Valuations for private technology firms are increasing at a slower rate compared to six months ago. Analyst Fred Giuffrida, at Horsley Bridge, says that the valuations in late-stage rounds of...
Is this the beginning of the end for Silicon Valley's fairytale valuations?
While I'm not expecting Uber to be valued at $100mm next week, there does seem to be a trend emerging in the convergence of price and value at these so-called "unicorn" start-ups, which is not a particularly good thing for the founders and early investors (among others). As CNBC reports:...
Calculating EV....Mkt Cap in WACC calc....?
Morning! First time user here. I work in corporate finance and I 'm leading an initiative to enhance our business valuations. I've developed a DCF model and while building out the WACC formula, I started to ask myself questions that I could not answer (nor find the answer online). When building out...
Terminal Value too High; What to do?
My terminal value / ev is 90%. What should I look at to find out what I did wrong?
How to value a Pre-REITS property
Hi everyone, let's say a property is going to REITs . How to price such property. Here are the parameters: entry CAP Rate: 10% NOI: 63 million and remain 10% YoY growth. Time: 5~7 years Exit CAP Rate: remain 10% or lower If we are going to REITs . How to value such property? Thanks.
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