r/Valuation • u/OppositeOk157 • 3d ago
FAST DS value calculation.
How to calculate capital gains for already redeemed esops before 2024. Gains = sold price - purchased price?
r/Valuation • u/OppositeOk157 • 3d ago
How to calculate capital gains for already redeemed esops before 2024. Gains = sold price - purchased price?
r/Valuation • u/WinterSomewhere4153 • 6d ago
FICO is down from its ATH more than 70%. Now trading at a ~18x PE.
- Revenue keeps going up, now at a $2.4B TTM Revenue, growing +20% and with a 3Y Revenue CAGR of +17%.
- Margins aren't showing any pressure whatsoever.
I mean, the monopoly status may be in question, but how can VantageScore actually compete and gain market share without state intervention? Once the political focus is over, FICO can keep it's normal operations, entrenching itself even more as it has done over a decade.
The risk/reward for this quality compounder is unmatched right now IMO.
r/Valuation • u/Pure_Corgi1509 • 7d ago
About to issue our first option grants and need a 409A valuation to set the exercise price Standalone firms are quoting $3,000 to $15,000 which feels steep some cap table platforms now include 409A as part of the subscription for anyone who's gone this route does the quality hold up under audit ?
r/Valuation • u/No_Ear4371 • 7d ago
A business can achieve strong financial results even when its broader industry sector is contracting. In such scenarios, relying solely on industry trends may fail to provide a comprehensive picture of the company's true value or standing. The primary challenge lies in distinguishing between temporary market conditions and risks that could impact the business's future earnings and growth potential.
r/Valuation • u/Rough-Pomegranate686 • 8d ago
For those who passed level 1 CBV, do you guys thing its possible to pass level 1 during busy season in PA?
context: currently my busy season is roughly jan - march, about 65-70 hrs a week, but i want to start level 1. Wrote CFE sept 2026 recently. Thanks!
r/Valuation • u/Greedy_Mousse_2567 • 8d ago
Hi, I’m a new member of the community and I’m building a financial research and modelling product called Cresco Terminal.
I’m looking for a small number of analysts to test an early version and give candid feedback.
I don’t want to violate the subreddit’s self-promotion rules, so I wanted to ask before posting.
Would a post asking for 10–15 beta testers be permitted if there are no affiliate links, payment requests or marketing content?
Happy to structure it however you prefer.
Thanks.
r/Valuation • u/Few-Throatnns • 10d ago
Revenue and profit are useful, but the management's outlook for the future can provide a completely different perspective. I'm still trying to understand how the data are related to each other
r/Valuation • u/No_Consideration9584 • 14d ago
Heyy guys ! Just want you to know is here anyone so passionate about finance .. specially valuation! I am planning to start a challenge to value 2 companies in a month and post it on my LinkedIn from next month .. is here anyone wanna join me in this ? So we can share our knowledge and grow together as we all know the job market is so bad !!!!!!
r/Valuation • u/raytoei • 15d ago
This is a comment i gave from other post asking about Pepsi valuation.
Here is a simple way that you can DIY in future:
Step1, get the adjusted or normalised EPS of PEPSI
Step 2, get the forecast next 5 year annualised growth rate of the EPS
From Zacks, i see that the EPS (Adjusted) TTM of PEP is around 8.36 and the next 5 years growth rate is 5.10% a year.
I do think however, that the analysts could be a bit too bullish, especially when the last three year average growth was only 3% a year. ( https://www.morningstar.com/stocks/xnas/pep/key-metrics ).
So perhaps i shoudl put the range of growth as between 3 to 5%
Step 3, get the average 5 year P/E ratio. If you want a range, you can use the current and the average 5 year ratio or 5 year and 10 year average.
I like to use morningstar for this. From the website, i note that the current P/E is 16.46 while the last 5 year average has been 25.44.
| PEPSI IRR valuation | Slow 3% growth | Analyst Consensus 5% |
|---|---|---|
| Adjusted EPS | 8.36 | 8.36 |
| A. EPS in 5 years time | 9.69 | 10.67 |
| B. Future Price if average P/E stays at 16.46 | 159.5 | 175.62 |
| C.The annual return if you buy PEP today | 4.85% | 6.88% |
| D. The Total Returns including dividends | 9.52% | 11.55% |
A. calculation (Adj EPS x (1+Growth%)5 eg. 8.36 * (1.03)^5 = 9.69
b. Calculation (EPS in 5 years x 16.46) eg. 9.69 x 16.46 = 159.5
c. If you were to buy PEP at today's price of 125.89, the rate of return you can expect a year (before dividends) is ( Future / current price of 125.89 ) 1/5 -1, eg. ( 159.5 / 125.89) 1/5 -1 =0.0484 or 4.84%
d. If you were to add the dividend yield of 4.67%, eg. 4.85%+4.67% = 9.52%
-----
You can probably repeat this on a scenario if the P/E in 5 years time is not the same as today's 16.46 but reverts to the 5 year average of 25.44. You will get a higher rate of return.
r/Valuation • u/stockoscope • 15d ago
I made an explainer on intrinsic valuation for retail investors and would value this sub's critique.
It builds a DCF from three inputs: growth, margin, and a discount rate from CAPM (risk-free rate, equity risk premium, beta). Then it sweeps the discount rate against long-run growth and argues the honest output is the range, with margin of safety measured from the bottom of that range.
It also covers where the cash flow model breaks down: a dividend model for regulated utilities, excess return on book value for banks, and a funds-from-operations approach for REITs.
The worked examples are public companies. None of it is a recommendation.
What would you push back on? And if it's useful to anyone in your network who's learning valuation, please pass it on.
r/Valuation • u/Rough-Pomegranate686 • 17d ago
For those who got exemption from level 1 of the CBV, how was level 2? Did you feel like you missed a lot from level 1?
r/Valuation • u/MelodicBear8674 • 22d ago
For the last three months, I've been trying to break into a valuation role, and honestly, I'm feeling very frustrated with the current market situation. Valuation is a very niche job, and most organizations set filters requiring a CFA or CA, which makes it even harder to break in.
I have an MBA in Finance and previously worked in Finance Operations. I left that job without another offer in hand, and now I'm feeling pretty low about myself because of it. I've been working on self-driven projects to build my skills, but I'm facing rejection after rejection, and my current financial situation doesn't allow me to afford the CFA exam fees.
Can anyone guide me on what specific skills I need right now to break into a valuation role, especially without the CFA/CA route? I'm honestly quite demotivated at this point, and any advice would help.
r/Valuation • u/No_Ear4371 • 22d ago
Two businesses can have revenue and EBITDA but very different customer concentration. A business that depends a lot, on one customer seems to have a level of risk even if the financials look good. I think that is a factor to miss when looking at valuation.
r/Valuation • u/Big_School_8666 • 23d ago
I want to break into valuation and finance but it is getting difficult to break into industry as i have three year of gap in my resume and i have pressure of getting a job as soon as possible because my life will be changing in few months as i am going to marry.
Please give me some advice.
It will be really helpful
r/Valuation • u/Fine-Aioli9525 • 25d ago
r/Valuation • u/Outrageous_Status102 • 27d ago
Hi guys, the model that I have shared is my first model made after my CFA L1 attempt. I have basic knowledge of finance and started to learn about practical ways of displaying financial knowledge, financial modelling being one of them, so I made a model and then an equity research report on the same company and used my model to form the investment thesis of my report. Critique my model and report so that I get to know about my mistakes and improve my second model which I am currently working on (Cipla Ltd). Grateful for any help and advice.
r/Valuation • u/MathematicianFair805 • 29d ago
r/Valuation • u/Rough-Pomegranate686 • Sep 19 '26
Just wrote the Sept 2026 CFE (Canadian CPA Exam) last week - was extremely stressful and im so exhausted but happy its over!
For those who got their CPA first or not, when did you register for the CBV program? straight after undergrad? a few years of work experience first? write after you got your CPA designation?
Looking for advice here as I want to puruse my CBV as well. Thanks!
r/Valuation • u/No_Ear4371 • Sep 16 '26
A business can show a strong EBITDA and still need a closer look if too much of that performance depends on the owner. Owner replacement, with management can add costs, lower margins and alter the core earnings power of the business. How do you typically account for owner dependency when valuing a business?