Remove Bank Remove DCF Remove Stock
article thumbnail

Top DCF Modeling Courses for Aspiring Finance Professionals

OfficeHours

The discounted cash flow analysis, commonly referred to as the DCF, along with the Leverage Buyout Analysis, commonly referred to as the LBO, are some of the most commonly used and complex financial modeling techniques on the Street today. investment banking, private equity , VC, etc.) and how our process works.

DCF 147
article thumbnail

M&A Blog #15 – valuation (tools and data preparation)

Francine Way

Discounted Cash Flow (DCF) i s a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Target’s current stock price: Can be obtained from sources such as Yahoo Finance. or as a premium percentage to current target’s stock price.

Valuation 130
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in. To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology.

article thumbnail

M&A Blog #19 – valuation (Leveraged Buy Out - LBO)

Francine Way

Once we have the Implied Equity Purchase Price, we can build the Uses table by factoring in the pay down of existing debt and various transaction fees (financing, investment banking, legal, and other fees) related to the proposed transaction as follow: Total Uses = Implied Equity Purchase Price + Paydown of Debt + Fees.

Valuation 130
article thumbnail

Multi-Manager Hedge Funds: A Meritocratic Paradise or a Revolving Door of Burnout?

Mergers and Inquisitions

They do this by setting up entire teams (“pods”) for specific sectors, having each team learn their stocks or other securities in-depth, and then trading frequently based on catalysts and changes in investor sentiment. If Company Z announces a new product at this upcoming conference, how much could its stock price increase?

Funds 104
article thumbnail

Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

From a career perspective , growth equity appealed to many bankers and consultants who didn’t want to be “pigeonholed” in venture capital (limited exit opportunities) or suffer through “banking hours” once again in private equity. Also, you can get in more easily from a middle-market or boutique bank.

article thumbnail

Long-Only Hedge Funds: A Cozy Career, or a Complete Contradiction?

Mergers and Inquisitions

Long-Only Hedge Fund Definition: A long-only hedge fund buys securities to earn a profit when they increase in price, and it does not bet against securities by borrowing to sell them in advance; the fund might invest in stocks, bonds, derivatives, structured products, and almost anything else.

Funds 52