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Junior Energy Operator for Hartree meaning.
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...
Realistic exit ops with B4 valuation experience
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...
What general valuation approaches are important to credit analysis (asset management)?
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...
Calendarization
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!
Rosenbaum
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! :)
Free Course Recommendations for Excel Modelling and Valuation
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...
Assistance with an ER report - Dollarama
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...
Investment Process
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....
Simple valuation question
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...
How to determine if growth from acquisitions is good growth?
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...
How to determine if growth from acquisitions is good growth?
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...
simple LBO question: taxes and interest expense?
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...
Modeling/Valuation not “important” in CF?!
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...
Working Capital
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
Updating DCF with 10q
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
Should I Include IRR In A Stock Pitch With 12 Month Investment Horizon? Or Is That Too Short?
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.
question about valuation
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...
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...
Corporate Finance Question from a series of potential interview questions
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.)?
How To Value a Medtech Company Pre-Revenue?
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...
How does U/W fee rebate work?
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!
Routes to London REPE firms for non-UK resident.
[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,...
NPV, TV, IRR? Startup with 'some' revenue and EBIT
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
Valuing a startup--NPV, TV, IRR?
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...
cash free debt free basis? who pays off pre-transaction debt?
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...
Costs in IRR calculations (Project Finance)
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...
How to deal with assets held for sale when calculating TEV in an LBO
Hi there, I have come across an LBO case study where there is approx. $1,000M of assets held for sale on the balance sheet and approx. ~$300M of liabilities associated with those assets held for sale. When calculating TEV at Entry, which would be a better approach and why: 1) Keeping the assets held...
PLEASE HELP: Houlihan Lokey Financial Advisory And Valuation Group
Hello guys, I am in the process with HL for a Financial Analyst position in London in their Financial Advisory And Valuation Group - Portfolio Valuation Group. I really need Inside on the group to make up my mind especially about exit opportunities. I come from a target school and I have previous...
KPMG Deal Advisory, Valuations Interview
I'm a recent grad and I have an interview with KPMG in the Valuations - CFI, Deal Advisory team. Does anybody who works/worked there have any tips for the interview? I understand that this team is very different from the traditional Accounting/ Mgmt Consulting roles which is why I am sort of...
PE with healthcare focus: physician practice valuation
Hi, I am about to be interviewed by a fund with a focus on healthcare buy and build, specifically in the outpatient care segment. Just curious how you would value a practice? What multiples are paid for practices with 10-50 employees? What else is taken into consideration? Looking forward to some...
P/E Multiples
Why do P/E multiples depend on the capital structure? What is the effect of changes in capital structure on the P/E multiple?
Effect von goodwill impairment on EV/EBITDA Multiple
How does an extraordinary amortization (e.g. goodwill impairment) affect the EV/EBIT multiple? In principle, our EBIT would decrease, which is why the multiple should increase. However, EV should also decrease at the same time. Which effect would generally be stronger here?
Trading Multiples and Comparable Company analysis
Is there a difference between Trading Multiples and Comparable Company analysis? For example, when valuing a private company, to my knowledge, not only multiples of listed companies (trading multiples) are used for comparison, but also multiples of other similar private companies. Is this correct...
Multiples
I have 2 questions regarding multiples: 1. is it possible to include EBITDA growth in multiples? 2. how can I calculate the EBITDA margin with multiples only?
Why does the buyer need to pay the enterprise value?
Can someone please explain me why the buyer has to pay the enterprise value in a M&A transaction? Does the seller really receive the enterprise value? I do not understand the logical thought behind it. 2.If the existing debt is assumed by the buyer and is not refinanced, what purchase price must the...
Expenses impact on Enterprise Value
Do expenses (e.g. pension expenses) have an effect on the enterprise value? If not, why is that the case?
Pension Liabilites
Why do defined contribution plans have no effect on enterprise value? The pension expense would reduce net income and thus also the resulting free cash flows for the company. Why then, according to several articles, do they have no effect on EV and the defined benefit plans have an impact?
Valuation or Transaction service at Big 4
I'm recently joining the valuation team and would like to know if I should ask for a transition into the transaction service team if my ultimate goal is IB in the future.
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.
Enterprise Value metrics vs. Market Cap Metrics
Hey Guys and Gals, a question for you. In my opinion EV/Revenue, EBITDA, and Net Income are fairly meaningless when looking at fundamental comps. The reason why is that I believe debt, cash and cash equivalents, etc. create noise within the metrics. For example, consider these fictitious comps in...
Valuation question
Hi, I am looking at a tech company with $10m in ARR and profitable. They invested around $3m in a new product they want to launch in mid-2023 which they hope will generate and extra $10m in ARR over the next 5 years (so $20m ARR by 2028). It's easy to validate the valuation for the existing business...
Sophomore Feeling Behind
I'm a sophomore accounting major at a top 10 MAcc school planning to get a MADA degree. My goal is to go into TAS, Valuation, Strategy immediately after grad school because I believe they have the best exit ops. I have a 3.95 GPA, no relevant work experience or internships, but I have done plenty of...
Free cash flow to firm - Net debt
So I am a bit confused about when we calculate free cash flow to the firm, why do we not include net debt borrowings? For example, if firm ABC in Y1 has CFO = $1M, Capex = $500k and Net debt borrowings of $2M, then do they not have 1-0.5+2 = $2.5M in free cash flows to use between debt and equity...
Public Finance Discount Rates
Hi all, I am currently trying to create a DCF model valuing an asset purchase by a US municipal utility with limited information available, and am struggling with the WACC/discount rate in particular. The best I can think of is the DOE has guidelines using a 3% discount rate but I'm not sure that...
Thinking about taking an offer for an in-house valuation role.
Hello, Currently in Wealth Asset Management audit at a Big Four firm, and looking to pursue a career in finance. I interviewed at this PE fund of fund for a valuation analyst role, which has me thinking about long-term exit opportunities. Also, I was chosen to participate in the FDD rotation this...
DCF for Zoom vs. Broadcom
Two companies: Zoom and Broadcom. Which do you use for a DCF and why? Would you do a DCF for Broadcom b/c stable recurring cash flows + it has a lot of Capex expenditures vs. Zoom?
Taxes on Sale of Healthcare Practices Roll-Up
Hi All, I'm modeling the returns for a roll-up of medical practices. The owner (self-financed) currently has 7 and would like to add another 13 over the next two years prior to exiting in 2025/26. I have a few basic questions. 1. After-Tax Free Cash flow: I assume the 20 practices sell at an EBITDA...
Hedge Fund Modeling Detail?
I'm curious how HFs (talking fundamental L/S HFs) do models and projections. Coming from banking, unless we have the management model, we're almost always just taking consensus and extrapolating. It's never that useful other than to put numbers around "value creation" or expected valuation in a...
what is management ebitda? same as reported ebitda?
what does "management ebitda" mean? have seen that come up a few times. is that just the same as reported ebitda? and not adjusted ebitda? thanks so much team!!
Kroll(Duff&Phelps) valuations advisory services exit opportunities
What are the typical exit opportunities for valuations analysts? How are the hours? Is the work different from big 4 valuations?
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