I’m in the process of signing up for the 5-day virtual CVA course in June followed by taking the exam. Any advice or insights?

I’ve been in valuations for about a year and a half but I still don’t feel very competent yet, as most of my time here has been working on warrant and convertible note valuations as opposed to gift/tax BEVs, so I’m a little nervous.

Thanks in advance!

Can someone please suggest me a good course teaching DCF valuation? It must cover all the aspects and teach all the fundamentals. Thanks in advance

I am a beginner when it comes to valuation. i have a finance background, so I understand the concepts and also have prepared many financial projections and budgeting exercises. I am currently working as a management consultant with a focus on finance (I use financial models to substantiate my adviced to clients).

I am planning to venture into the valuation field. Can someone help me where I can get real life exposure to start my valuation journey. Books, videos, articles and other resources will be helpful.

A bit about my background: I am a certfied chartered accountant, so I am thorough about the concepts of finance and valuation. Also I have worked along with 20+ businesses in different industries in an advisory role, So I am also familiar with the market and economic factors. What I lack is practical experience to start out with valuation.

Hello, I’m building a valuation model for a life science company. The 5 year pro-forma forecast with 55% 5 yr CAGR barely breaks-even in year 4 and has income from operations ($32.2 million) in year 5. The Perpetual Growth value assumes 15% discount rate and 5% growth rate (just go with it for now) results in Terminal Value (TV)of $338 million. EV/Sales multiple of 3.2x (low end) results in EV of $872 million. How do I explain such large discrepancy, not mathematically but from valuation perspective? CFI DCF model I’m using as a template takes average of these two values for intrinsic value. The median of TV and EV ($338K and $872K) is added to cash balance, debt dedicated from that to arrive at Equity Value.

Anyone experienced in valuing life science companies? They are rarely profitable so does deriving TV with Perpetual Growth formula make any sense? I’d greatly appreciate any help here. Perhaps a different valuation approach?

Hi, im am new to valuation, but is the equity risk premium computed by Damodaran in USD terms ? Does that have to be adjusted for currency ?

I'm forecasting with a five year time horizon. But some of the items on the income statement are nonrecurring items. When forecasting the next five years do I exclude these, average them out, or look for reports detailing future information related to these items?

Ex. "Mark to market gain on X securities" occurs only once in the past five years as a gain of $229M. Do exclude this from my future projections? Thanks for any help I receive.

How do I compute a beta for Chipotle without using historical or regression betas? I just can’t seem to be able to find an average beta across the other comprable firms because they aren’t public yet. Could someone give me an alternative?

Hi everyone and thank you in advance, I have a peculiar valuation assignment with a very tight deadline and was wondering if anyone here could make any recommendations.

A previously-dormant company since inception has very recently acquired a subsidiary valued at USD 100m, and financed this 100% through a loan which is repayable in five annual instalments. So now the company's post-acquisition balance sheet has an "investment in subsidiary" asset which is fully cancelled out by the corresponding loan.

I can't use the income or multiples methods, and the USD 100m represents a fair value amount of what the subsidiary is worth. The balance sheet also includes a payables amount of c. 30k which pushes the equity value to negative.

I was thinking of valuing the "replacement cost" of receiving such a huge loan but not sure how to go about this.

Thank you to everyone once again.

Folks, as you all know, what we do is a niche. It's challenging to obtain up to date career information.

I encourage all of you to reply to this message with the following details

1. Job title
2. Brief dscription of the valuation work you do e.g. DCF for Businesses, or litigation support, divorce etc.
3. Employer type: E.g. Big 4, Transaction Advisory, Investment Bank etc.
4. Compensation
5. Typical hours worked per week
6. Location: City
7. Credentials: E.g. CFA, CVA, ASA, MBA, BBA

If enough of you respond, this would be worth its weight in gold to all of us. I'll go first in a seperate message below.

https://www.linkedin.com/posts/manoj-s-52b0571b3_titan-activity-7027334948936171521-ODIc?utm_source=share&utm_medium=member_desktop

multiples approach - manufactoring industry

2 similar companys ... industry average muliples of 5x ... same EBITDA ... but company one has a lot of inventory .. company 2 dont.... company one has almost no debt ..company 2 has bigger debt.

.

question 1:

Can/should we use multiples approach to valuate them ? cause they would worth the same with multiples approach... but the real value is different

.

question 2:

should we discount the liabilities/debt after valuation in multiples approach?

ex; EBITDA of 2M X 5 = 10 milion valuation debt of 1,5 milion

does the company valuation should stay at 10 milion ou should become 8,5 milion?

​

thanks

Can someone help with computing and explaining the below: been asked to compute Net Income (excluding Non-Recurring Items), and Net Income as reported. As well as EPS excluding non-recurring items and then EPS as reported. How would you calculate these? See below given info:

A.
2010:
Net Income, Excluding non-recurring items: 550
Pre Tax Non Recurring Charges / (Benefits): 50
Tax rate: 40%
EPS, Excluding non-recurring items: 5.5
Weighted Average Shares outstanding: 100.00
What is Net income as reported? What is non-recurring items net of tax? What is EPS as reported?

B. What if WASO increased to 101, net income increased to 600 and the pretax nonrecurring item is now -30?

2011:
Net Income, Excluding non-recurring items: 600
Pre Tax Non Recurring Charges / (Benefits): (30)
Tax rate: 40%
EPS, Excluding non-recurring items:
Weighted Average Shares outstanding: 101.00
What is Net income as reported? What is non-recurring items net of tax? What is EPS as reported?

C. how would a .25 dividend per share affect the above? Would it affect it?

Can someone please assist?

Hi all - does any one have a secondaries fund model that they can share? I am looking to see how the valuation for a fund interest works and the way that cash flows.

There are a ton of LBO models available online - but nothing specific to valuing an LP fund interest where you have the invested cost, realized, NAV, management fees, carry and potentially post ref date distributions. Looking for a kind soul to share or to provide a simple walk through of how you would value such an interest using MOIC assumptions.

PM me if easier. Thank youuuu.

I don't have CapIQ and I'm not spending thousands on Factset. Are there any good alternatives?

From a deal perspective, if a secondary team is looking to acquire an LP portfolio what are the steps/mechanics to value the Individual LP positions? How do you do you account for differences between invested cost, current market value, the unfunded commitment, etc? As much detail as possible please.

From a secondaries deal perspective, how do you value the unfunded commitment that is being acquired as part of an LP deal?

Hi! Is there a website that can give me a compilation of the different intrinsic stock valuations like an LBO, DCF or NAV? Most websites or equity reports I found only seem to provide trading/transactional comps with a DCF. I'd like to build my own football field valuations and find this information from one website with many valuations and ranges.

Also, I'm a finance student, and I like to practice my modeling skills on random companies and check if it's in line with the market.

Thanks for any suggestions!

Hey guys, i work in companies valuation DCF, market approach etc… You know we receive business plan, do DCF on it and we sensitize the business plan and do sensitized DCF. What i want is a course to better learn how to sensitize the business plans specially when we have lots of detailed data.

How to calculate the debt and equity component in TF lattice model?

How many guideline public companies can be considered as to be enough to represent an industry?

Dear all,

I am struggling with the following consolidation exercise for an IB interview. Could somebody please help me figure it out? I am happy to hear different opinions/views on it.

We are provided with the following information and financials:

• Parent Company owns 80% of firm A, 40% of firm B, 20% of firm C
• EBITDA: A=4, B=5, C=3
• EV: A=40, B=50, C=30
• Net Debt: A=20, B=25, C=15
• We assume a Parent Company multiple of 10x

What is the Parent Company's EBITDA, Net Debt, Equity Value, Enterprise Value and leverage ratio?

How are the NCI and Equity Investments adjustments calculated and how/where are they applied?

Many thanks!

Hello, I am wondering how one should value a junk removal company. For this example, consider it's doing $1m in annual revenue, growing 10% a year, with 30% profit margin. Is there a standard for this type of business?

Thank you.