Capital DCF Profitability 
PCE
FEBRUARY 19, 2025
Carried interest (or carry) is a way of rewarding professional investment managers with a share of an investments anticipated profits. Read on for answers to your questions about waterfall allocations, vertical slice, derivative agreements, DCF vs. Monte Carlo methods, and how to identify common IRS pain points.
Francine Way
JULY 12, 2017
As I mentioned in my last post, Discounted Cash Flow (DCF) is 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. The major steps of DCF are: Identify extraordinary, unusual, non-recurring items from the target’s 10-Ks and 10-Qs.
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Francine Way
JULY 18, 2017
Because dividends is a piece of equity, we can use the Capital Asset Pricing Model (CAPM) to calculate the proper Rate of Return (r). Projected Book Value of Equity at the end of the 15 years = from the proforma balance sheet that we developed in our DCF post. mature, profitable companies).
Mergers and Inquisitions
MARCH 13, 2024
Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity. Most companies are already profitable, the potential returns are lower, and there’s usually a large secondary component (i.e.,
Lake Country Advisors
AUGUST 8, 2024
Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. However, company valuation isn’t as simple as slapping a price on your business.
Mergers and Inquisitions
MAY 3, 2023
It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF. In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time.
Peak Frameworks
JUNE 7, 2023
Diving Deep into Cash Flow from Operations Cash flow from operations is calculated by adjusting net income for non-cash expenses and changes in working capital. Changes in Working Capital - Adjustments must be made for increases and decreases in current assets and current liabilities.
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