FA and valuation Flashcards
% completion (revenue recognition)
(Costs incurred / Total expected costs) * Total expected revenue
Diluted EPS
(NI - preferred dividend + converted pref. div. + conv. debt interest * (1-t) ) / (WA shares + newly created shares)
Convertible debt interest * (1-t)
debt * par value * yield rate * (1-t)
Newly created shares (options)
of options - ((# of options * exercise price) / current share price)
Basic EPS
(NI - preferred dividend) / WA shares
Dividend discount model (P)
Div1 / (re - g)
Growth rate
ROE * Plowback
Cost of equity
rf + beta_e*(rm-rf)
ROE
NI/Sales * Sales/Assets * Assets/Equity
P/EPS conversion
P0/EPS1 = Payout/(re-g)
P/Book value
Market value / Book value
Book value
Assets - Liabilities
Abnormal profit model
1) Residual income = NI - reOp.BV(e) = (ROE-re)Op.BV(e)
2) V0 = BV(e) + Sum[RI/(1+re)^t]
Residual income for TV
( (ROE - re) / (re - g) ) * Op.BV(e)
Dividend discount model (V0)
Sum[Div/(1+re)^t] + TV
ROE (multiples)
(P/BVe) / (P/EPS)
Price (multiples approach i guess)
P = (EV - Dib) / Nosh
FCFF method
EBIT*(1-t) + depr - CAPEX - △WC
CAPEX
PPE1 - PPE0 + depr
WACC
reE/A + rd(D/A)*(1-t)
Cost of equity for FCFF
alpha + rf + beta_e*(rm-rf)
Beta_e
Beta_a + D/E*(Beta_a - Beta_d)
Terminal Value
FCFF*(1+g) / (WACC-g) / (1+WACC)^t
MVe
EV - Dib
P/E
P/EPS = MVe/NI
Cost of equity 2nd
re = ra + D/E*(ra-rd)
Closing equity
Cl. equity = Op. equity + NI - Dividends
EBIT multiple
EBIT multiple = EV/EBIT
Pre money
Pre money = Post money - Investments that round
Ownership shares
Ow. shares = new shares / total shares = Investments / Post money
Price per share
Price per share = Investment / # of shares
Exit stake
Exit stake = Investment * (1+IRR)^T
Ownership share
Ow. share = Investment * (1+IRR)^T / Exit post money
Debt beta
Beta_d = (rd-rf) / (rm-rf)
NI
NI = ROE * Op. equity
