OfficeHours

MAY 31, 2023

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

DCF Discounted Cash Flow Finance Finance 147

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.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Francine Way

JULY 13, 2017

Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). Determining the year-by-year future non-equity claims from the latest 10-K, especially those that will occur during the forecast horizon, and their combined present value. Tangible Book Value = Book Value of Equity - Goodwill.

Valuation 130

Valuation M&A DCF Book-building 130

Francine Way

JULY 11, 2017

Inexpensive Excel-plugin simulator such as @RISK are available for download online. 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. A 5- or 10- year historical data is preferable.

Valuation 130

Valuation M&A DCF Financial Statement 130

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). To perform this forecast, we need the target’s dividend history again, the book value of equity and year-end shares outstanding, and the stock prices at year-end.

Valuation 130

Valuation M&A DCF Shares 130

OfficeHours

OCTOBER 17, 2023

So you want to pursue a role in Private Equity and Growth Equity? OfficeHours Headhunter 101 Doc 10-15 Headhunters control the process…download our 101 Doc to learn more about them! Therefore, it’s hard to predict what exactly this expense will be in the future but it’s good to be prepared with a more conservative number.

Private Equity 130

Private Equity Debt M&A Investment 130

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). To download @RISK for a free trial version, click here. I recommending downloading and opening @RISK prior to building and working with a Monte Carlo-embedded Excel file. of our simulations.

Valuation 130

Valuation M&A DCF Stock 130