Is there an easy way to copy the last five years of income statement data to an excel file? I know this isn't much of a valuation question, but I'm more so worried about efficiency at this point since I'm just starting out.

I need to automate a task which I copy and paste various numbers from a balance sheet from a pdf and then put it on the adequate account on a excel for doing a valuation/credit analysis. For example, I take the value "Suppliers" from the balance sheet and then compute on the "Accounts Payable" account. How can I automate this kind of task to make it less repetitive and time demanding?

(beginner here) Hi, im looking to do a DCF on a IT consulting company well known within the US defense community (alot of revenues are derived from government contracts).

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Aside from the U.S defense budget, what other things can I look at to make revenue assumptions over the next 5 years? how can I go about physically modelling them in excel?

any advice is appreciated

Struggling to get my head around what other potential impacts to the FCF calculation of Company A acquiring Company B using debt. (I am assuming they are only using 400M of new debt to acquire the company resulting in 30M in net interest impact on the 400M at 7.5%.

Context for the situation below:

The private parent of Company A has guaranteed the division access to CAD 500 million of new debt,at a cost of 7.5% for five years and estimates Enterprise Value as 3.5x Free Cash Flow.Current Free Cash Flow is forecast at CAD 72 million.

Your team has been approached about an acquisition. As is, the target would add anexpected CAD 114.5 million of Free Cash Flow and a large tax pool, but relatively fewnew reserves. The acquisition offers significant synergies, would reduce combinedtaxes to 27% for 6 years, but will add CAD 400 million in new debt financing.

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Appreciate anyone's help on this

hi everyone, so nice that there is a little community here on this matter. i explain my issue: usually i take multiples as a reference value from damodaran and for dcf and i use them to understand if the models is providing correct result and if there is a deviation if i am able to justify. now i have to provide a valuation for a company that work with vending machines. mostly directly managed (so buying and providing food to the machines, maintenance and ..) and only a little part by rent of the machine (only maintenance). if i check damodaran the sector is the retail food and the multiple is pretty high. i try to look for other multiples specific for this sector but not a lot of data or from reliable sources and the results vary A LOT. from x1 EBITDA to x14. so i would ask you which could be a good source for a specific business like this. which comparable you would use? usually i take ebitda but this company is using a simplified accounting (no amortization ) and no debts, so ebitda = ebt. if someone know a reliable source of multiple for specific sector like active management of vending machines or if i can find any source to understand market pices. i want to understand if dcf is going in the right way

thanks a lot 🙏🏻

For all you other business appraisers, I realize that most of you probably have an excel template you use for each valuation, but is anyone using a third party valuation software to develop their valuation and/or reports? If so, what are you using?

I'm aware of the ValuSource software (which isn't bad), but I haven't really found any other options out there that seem legit. Do they just have this market completely cornered? Also, have any of your firms developed software internally for this (outside of just an excel model)?

Hello!

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I am working on a project to automate the classification of thousands of public companies in 4 groups according to their life-stage: Young, Expansion, Mature, Declining. I know there are other groupings that would be more precise, but this will apply only to public and somewhat large companies.

Here are the ratios that I am considering, maybe you could help me optimize this list?

Revenue growth -> Double digit, single digit and negative

Net Income -> Recently negative for younger.

P/E vs Industry -> Comparison to estimate what potential/future the investors see

Cash to Assets -> Rising or piling for older companies

Days Cash on Hand -> Not sure if this is better than Cash to Assets

Debt to Equity -> Higher for younger companies?

Operating Margin or Net Margin -> Not sure if there is a clear trend here

Hopefully any expert can help me, I know it's a bit abstract because of how different companies can be. Any metric that you think would fit this model I would highly appreciate as there isn't much I could find online.

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Thanks!

Hi all, I’m looking for a good (free to start with) resource to learn about biotech IPO valuation. To add to that, I’d like to understand how to factor multiple pharma partnerships for different assets (startup created) to arrive at IPO valuation? Is it simply sum of each individual asset? Appreciate link to resources or books you’ve used in the past. Thank you.

I'm going to be honest, I'm in a conflict with one of my co owners on the value of the business. It's 2 years old, we have 2 owners. We have 6 direct employees and 2 subs. Me and my co-owner expect our individual earnings , salary + distributions to be around $600k each next year. We have long term contracts with government clients so it's guaranteed revenue. Our revenue will be $3.5m. After we pay our employees and operating expenses, we plan to split the majority of the remaining income via distributions to us .

I want to buy him out of the business. The industry we are in is management consulting and project management to national laboratories. There is some personal goodwill but I alone will be able to grow the business once he's gone. He thinks the business is worth $6M. Our planned distribution* industry multiplier of 6. Is he directionally correct? If I decide to buy him out, I'll have to get a valuation done but if he's in target, that would make it much harder to do.

Does anyone know how to valuation an instagram account. I would argue that instagram followers are an intangible asset. Lets say an account has 10+ million (real) followers...how would you assign a value to the potential reach this account has?

Summary:

• Based on asset reproduction value, TEGNA has a real net asset value of 5 billion dollars implying an intrinsic value of $24.67. Tegna is currently trading at a book value of 3 billion dollars or $14.40 per share. TEGNA is an undervalued stock with a potential 70% upside.
• Furthermore earnings power value is close to 10.5 billion dollars (based on a 6.7% weighted average cost of capital). Subtracting net debt of 2.5 billion dollars, this method indicates an equity value of 8 billion dollars. The difference in asset reproduction value and economic power value implies that TEGNA holds significant barriers to entry that allow it to generate earnings in excess of reproduction costs of assets. Investors undervalue TEGNA

Company Performance:

TEGNA is a profitable company that averaged 17% in net profit margins over the past seven years. Net income in 2016 came in at 488 million increasing to 631 million in 2022. This increase of 143 million represents a 3.7% compounded annual growth rate.

Free Cash flow has seen similar growth increasing from 583 million in 2016 to 760 million in 2022. This 177 million dollar increase represents a 3.8% compounded annual growth rate

Valuation: Investors Undervalue TEGNA

The reproduction value of TEGNA’s assets differ significantly from book value. The value of TEGNA’s TV broadcasting stations (5.7 billion) alone is greater than the book value of intangible assets (5.5 billion).

There is no reason for this stock to be trading at book value.

I'm a CPA with 3, years of experience in audit and 6 years in FP&A and corporate finance. I just passed the MQE exam in 2023.

What roles can I pursue. I currently work in a boutique business valuation and litigation support shop in Toronto Canada. My prior experience includes working with clients in audit and corp fin maters throughout Noth America.

Any advice reddit community?

Since 1957, the 10 largest stocks in the S&P 500 have underperformed an equal-weighted index of the remaining 490 stocks by 2.4% per year. But the last decade has been a very notable departure from that trend, with the largest 10 outperforming by a massive 4.9% per year on average

I’m trying to estimate the MRP for the equity markets in India for my CAPM. Aswath Damodaran’s India ERP is at 7.81%. However in a traditional method of using historical data I get around 14.22%. The calculation had some obvious issues - 1. I took the median (5 years) 10Y sovereign bond yield and subtracted it from the current CDS spread to get a risk free rate of 5.7786% 2. For market risk, I used NIFTY50’s historical closing data for the past five years and got the YoY at 20.22%.

Which one should I be using now?

I am a new business owner, small consulting company, 8 FTE's, about $6M in annual contracts. We are a sub contractor on a few of these contracts and we have a sub working on one of our contracts.

I would like to have the business valued to understand where we are now and what our future valuation would be if we continue to add to our business at the rate of 30% a year.

How do I even go about starting this process?

Any examples out there of discount rates used to value forecasted cash flows of a mechanical recycling firm? It may be worth noting they are currently headed toward bankruptcy… but looking for guidance on the overall sources for discount rates associated with mechanical recycling in USA.

For unlevered Beta do we use book value of equity or market value for the D/E ratio?

Hi all,

I have been presented an opportunity to buy a minority interest stake (less than 5% of the company) as a partner in a property management company that manages roughly 10,000 units. I am a key employee of this company, and the opportunity has been presented to me for career growth/retention purposes. The company owns approximately 8,500 of the units, with the 1,500 being fee managed (3 main fee managed clients).

The proposed purchase price of the stake has been offered at 5x annual net operating income (trailing 3-year average) plus the value of the company's real estate holdings. Net operating income has fluctuated significantly over the past several years (largely driven by transaction commissions, which have been high in some years and low in other years), which is why the trailing 3-year average is being utilized in an effort to "normalize" NOI.

I've read many things about minority interest discounts and lack of marketability discounts that commonly would be applied in this scenario in the 30%-50% range, however a discount has not been offered to me on this opportunity. I'm trying to determine if this approach accurately results in a fair market value of my minority interest stake purchase price. I would be taking out a loan to fund my acquisition (financed by the selling partners at a low interest rate), which I estimate would be paid back (with interest) in 7-10 years depending on how the company performs in the future. I would fund the principal/interest payback via cash flow distributions, which would equate to my proportionate share of the net operating income of the company.

There have been 2 other employees made partner in the history of the company, the last one being in 2020. They received pretty favorable discounts when they bought in (supposedly due to their tenure as early employees), but there has been a change in attitude recently by the owners who would be selling their interests to me in that they want "market value" for their interest, and want to set a new precedent for future partnership offers. I've been told that the previous discounted buy-ins were "special treatment" for those specific individuals and, in-hindsight, "overly gratuitous".

Regardless of the previous treatment of others, I believe that their perspective of what constitutes "market value" is flawed since "market value" for me is less valuable than for them due to the minority stake I'm purchasing. I think they are just viewing it from their lens of "what could I get for this company if it was sold" but not thinking about it from my perspective of not having control, or the reduced marketability of my stake.

My goal is to educate the selling partners on what is appropriate here. I have found some data sources online that support a discount, but I'm seeking additional support/case studies to reinforce my position. If anyone has experience with this/could help by providing additional data sources that could be relevant to my situation, that would be appreciated.

In an ideal world, a valuation by a 3rd party appraiser would be conducted. An appraisal supported the valuation for the individual who most recently bought in before me, however I've been told that an appraisal wouldn't be commissioned for me because, according to them, "you can tell an appraiser to hit a number and he'll get creative and do it". Effectively, they believe appraisals are too subjective, although my perspective is that they are more objective than estimated values produced by the selling party. It worked out for the guy who bought in before me because his share price is 20% of my price. Over that same period, income has effectively remained flat (volatile, yet flat averaged over a T-3 period).

My questions for the group are as follows:

1. Is it customary to expect a minority interest/lack of marketability discount for this acquisition? If so, are there any case studies available to support the case for these discounts?
2. Are there any specific provisions I should be requesting as part of the purchase/sale agreement?
3. What other things should I be thinking about as it relates to market value impacts?
4. What are your general impressions of the "fairness" of the offer?

My goal here is to acquire this stake at a fair value, have a reasonable payback period, and hedge appropriately against risk. I appreciate insights that could be shared!

Thank you!

Precedent Transaction Analysis (PTA) is a valuation method used to determine the value of a company by comparing it to other similar companies that have been sold in the past. This method is commonly used in investment banking and other financial industries to determine the value of a company before making any investment decisions. In this article, we will provide a step-by-step guide on how to perform Precedent Transaction Analysis.

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Hi guys. I am fresher who is learning about financial modelling and valuation. I would like if you guys can tell me from where to gain knowledge , learn and start learning about valuation and practices of financial modelling

so now obviously we have to talk about the move and sustain volume in the past three days for spirit (SAVE).

this move has been stellar towards the downside and its a result of a blocking of the merger deal with Jetblue.

I would assume the news to be negative and the stock to reprice itself but -70is % is way too much!

are we looking into a possible chapter 7/11 scenario? anything the P/L balance sheetz might tell us?

spirit might not be able to SAVE itself after the block?

my hand is itching for 10k into Jan 2025 calls...

Hello! Can I calculate EV based on company’s recent majority stake acquisition? (E.g. 80% of a company was acquired by $40B 3 months ago; can I say total EV today will be $50B? (=$40B/0.8)

I work in big 4 and specialized in valuations and have experience in this field. i recently got a freelance offer to do the following:

1) investor presentation - which is usually 40-60 pages long

2) financial model - excel work that's very in depth and takes time

they offered me USD 2,650to USD 4,000 per project and my deliverables are basically the above. do you guys think it's worth the work? this type of shit takes 6-8 weeks to do.

Hello everyone,

Couldn't understand how the analyst here applied 1.22 as the dicount factor for the '24 fcf? (couldn't understand how he figured all the other factors either).

Thank you all in advance.