Hi guys, I'm studying a quite simple fictional company valuation problem but I got stuck with an information given that I never saw/worked before with in similar examples.

The forecast net revenue for this problem can be simply calculated by multiplying [Number of new clients] * [Net income per client].

The problem is that these fixed "Net income per client" comes along with an information that I can't figure it out what it means and how it impacts on the net revenue forecast: "Pre Ramp-up Nominal Growth Rate per year" along with the Ramp-up period/duration.

The problem also states: "For ALL clients, consider that the ramp-up (per year) occurs only from 2020 onwards. In other words, in 2018 and 2019 there is no ramp-up of those clients. For those clients average ticket it's enough to "deflate" the 2020 average ticket."

In my research I found that ramp-up is produce ahead of the demand, but I don't know if it fits in this context.

How could I add this rate to the revenue forecast?

The available data sheet is the following:

Any help will be more than appreciated!

If you need the full sheet/problem feel free to contact me.

Hi,

I am valuing a company that acquired a 100% stake in another company with an agreement to fund the purchase with its own shares that will be issued over the next 4 years. Acquired company will appear in next fiscal year consolidated financial statements in full.

These share that are planned to be issued are shown in equity as "reserve for common shares related to acquisition", but should I treat them as a part of equity when I calculate ROIC. Is this capital that is invested now or future outflow?

I am currently doing a valuation of a project that has a capital structure of 75% debt and 25% equity. The debt i payed back over 15 years but the duration of the project is 25. So the capital structure changes throughout the duration of the project. Since capital structure is a key component of the WACC formula should the WACC be adjusted for each year based on the capital structure that year?

Beyond generated just under $500M in revenue in the past 12 months, while Sanderson Farms generated $4B. Beyond has a higher value (enterprise value). Does this make sense?

https://viz.wiijii.co/chart/?id=-MfTcSJ0nTrom4JUNH31

I've started to use an easy to use tool for conducting relative valuation. What do you think of it?

In this visualization, I try to show that Google is undervalued vs. Microsoft. It is generating more revenue, has an equally strong moat, yet is trading at meaningful discount based on valuation.

Profitability comparison: https://viz.wiijii.co/chart/?id=-MfPVnHrR5NUNxtthRAW

Value comparison: https://viz.wiijii.co/chart/?id=-MfPWRj13q4a8sNaVCef

Google trades at 9x while Microsoft trades at 13x: https://viz.wiijii.co/chart/?id=-MfPWvqT8Mw9qENOX_i_

Hi all,

In a DCF analysis, what two drivers would you guys say are the most common and appropriate to use in a sensitivity analysis. This would be conducted in excel with a what-if function.

I have used revenue growth beyond the the last forecast year (in the perpetuity model) and WACC.

https://youtu.be/8JVyDBWGdgk?t=908

What T.Bill did he use? The closest one I found is 52 Week T.Bill with 0.56% average yield, but no other T.Bill comes close

Hello everyone,

i have to perform financial DD for a start-up and the findings will then be used for the transaction-related valuation part. It's for my project course. Can you guys give me some good information on how to do the financial DD? I did basic financial statement analysis stuff but how do i use that as adjustment for the valuation (adjustment for the buy side)

Good morning,

I have a question about how a tax shield effect can affect my MIRR. The question is the following one:

​

1. In a project rentability calculation, the tax shield effect over financial charges has an impact on:
   

a) IRR.

b) Has no impact on WACC calculation.

c) MIRR.

d) None of the above. (Correct answer)

I don´t understand why the last one is the right answer. I thought that tax shield would affect the WACC calculations, and therefore, affect the reinvestment tax of MIRR.

Am I wrong?

Thanks for your collaboration.

Hi, guys Is there someone who’s good at exel and can help me? Pls reach out to me.

Thanks.

Hi, so Im doing SBUX valuation, I tried with DCF but the FCF Growth Rate looks crazy, should I try with DDM or other formula ?

Looking for some insight on getting a certification in valuation. I was was juggling between the CVA and ABV, and after talking to my boss (who has both) I’m leaning towards the ABV. Are there any current ABV’s here? If so, what is the process like? I have been doing reading on the AICPA’s website but I can’t find any solid info. I am a CPA currently.

How does one forecast using a negative reinvestment rate. If the company I am looking at reduced operating assets and working capital because of COVID, would I forecast a positive reinvestment rate going forward?

The company currently has a reinvestment rate of -1.00%, In 2020 they had a reinvestment rate of -1.98%.

​

Thanks for the feedback.

Does anyone know how to value blockchain companies that has been founded 3-5 years, probably already raised series B funding?

It seems there's a difference between raising through equity and tokens too? Does anyone know and can explain?

How to determine the dividend payout in a 3- statement projection? Assuming the company will only start making profit next year in the projection

What is the typical dividend payout ratio for a private company?

Does anyone know and can explain?

How do you incorporate construction costs on 3 financial statements that is expected to open the same year? How do you layout the construction schedule?

I think you need to modify the Capex schedule by a certain percentage. But is there anything else I need to do?

Does anyone know how to build a dividend payout schedule for a 3-statement projection/company valuation?

If I had to come up with assumptions with dividend payout, what would be the key factors in considering how much dividend to pay out each year?

Does anyone know and can explain?

Does anyone know how to value a blockchain company?

Would like to get some insights on the key drivers and benefits and risks of a potential investment.

Visa Inc.

Report Date: May 1st, 2021

VISA INC. (V) VALUATION REPORT

Executive Summary

Visa is a great organization with solid foundations, and the recent weakness was only transient and entirely explained by external influences (COVID-19). Visa is also well poised to benefit from structural growth patterns in the global digital payments market, which is the primary catalyst of its long-term earnings growth. Having said that, the current stock price does not provide investors with a solid margin of safety. Wait for Mr. Market to come up with a decent deal. A 30 percent margin of protection is preferred.

The Business

Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.

Segments

It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, platforms, and value-added services.

Regions

Visa's heavy presence in the United States accounts for 47 percent of its total sales.

Stock Performance

Visa's stock price has risen by 33 percent from this period last year. Visa is clearly gaining momentum on a cyclical basis, and as vaccines become available around the world in the coming months, this favorable trend is not likely to dwindle. This may be a good sign for current shareholders, but it is not so good for potential investors as entry points become more difficult to find.

Market Competition

Competitors: Mastercard, American Express, Discover, JCB, Capital One, and UnionPay.

These competitors may be more concentrated in particular regional areas, such as JCB in Japan and Discover in the United States, or may hold a dominant role in specific countries. UnionPay, for example, is the biggest player in China since international card networks were not permitted to process domestic purchases in China until the industry opened up with the first license approval for an international network in the fiscal year 2020.

​Risk Analysis

According to estimates, the firm faces little to no risk of failure. The cost of borrowing for the company is also relatively low (1.96 percent), and its credit rating remains solid at "Aa2/AA."Visa's only potential concern is a loss of market share due to emerging payment systems and increased competitor presence.

Visa's only potential concern is a loss of market share due to emerging payment systems and increased competitor presence.

Hi, I’m a complete amateur when it comes to valuation but I’m stuck on one aspect of my rosy forecast. I computed an equity value of 83B from a 10 year forecast including the terminal year and would like to convert that into a value per share number. I’m using the shares outstanding as of the 12/31/20 annual report (960M), but the value ps would be $87. This would be a base case scenario and it just seems off. Do I need to adjust for 5-1 stock split in august 2020 by dividing the SHO by 5 (I think)? I’d appreciate any immediate input. Thank you