# Financial Modeling & Corporate Valuations

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 Financial Modeling & Corporate Valuations Presented by Affan Sajjad ACA Cell #

2 Presenter Profile Passed CA exams in December 2004 Became Associate Member of ICAP in November 2005 Completed Articles from Ernst & Young (FRSH) from August 2001 to October Served Ernst & Young as Assistant Manger Audit from November 2005 to April 2006 Served KPMG as Assistant Manger Audit from July 2006 to November 2006 Moved to Industry by joining Agritech Limited (Formerly Pak-American Fertilizers Ltd.) as Manager Corporate Finance in December Given additional Charge as CFO Hazara Phosphate after its acquisition by Agritech in November Achievements: Qualified during Articles Seconded to EY Saudi Arabia and USA during articles Due Diligence and acquisition of Hazara Phosphate Project financing for the expansion project Listing of Agritech Restructuring of long term loans of more than PKR 20 Billion Due diligence of Agritech and Hazara by local and international investors Handling lender base of more than 70 investors including banks, financial institution, mutual funds, international investors, individuals.

3 Index Introduction to Financial Modeling Use and Users of Financial Modeling Modeling Issues for Profit & loss and Balance Sheet items Corporate Valuations Types of Financial Models Presentation Gimmicks

4 Financial Modeling Financial modeling Task of building an abstract representation of a financial decision making situation. A mathematical model designed to represent the performance of a financial asset or a portfolio, of a business, a project, or any other investment. Possible Applications include: Business plan performance & valuation Scenario planning and management decision making, (expansions & strategic planning analysis), Project finance Equity Investment Portfolio & Risk Management Credit Analysis Fair Valuation These models are generally built around financial statements, inputs (assumptions) impacting outputs external inputs / global variables (exchange rates, tax percentage, etc ) Internal inputs / company specific variables (wages, unit costs, etc ) Mathematical relationship Output

5 Financial Modeling Forecasting Cash flow, Decision making and Risk Every major decision a company makes is in one way or another derived from how much the outcome of the decision is financially worthwhile. It is widely recognized that financial modeling is the single financial analytical skill that managers must master to make better financial decision. Risk analysis involves assessing Future cash flow levels, (cash flow is reality) and Risk in valuing those cash flows, whether it be the cash flow from assets, debt or equity (assessment of key variables & value drivers) Critical Success Factor Estimating cash flows & identifying risk effecting it

6 Use and Users of Financial Models Top Management & Directors Future Business plan Business Analysis Sensitivity on critical variables (Value drivers) Analyzing the impact of changes in industry, local & international economy Analyzing Cash flow position If cash surplus scenario Short term Investments Repayment of existing debts Long term investments Expansion project New project Acquisition & Mergers If cash deficit scenario Short term loans Long term financing Restructuring of existing loans Right issue IPO Equity Injection / investment Discontinue / dispose non profitable business segments

7 Use and Users of Financial Models Banks / Lenders Analyzing Business Analyzing business ability to service debt If business is not able to service debt then restructure debt or issue new loan Why to finance company for projects and acquisitions Investment Managers, Fund Managers Identifying potential Investment opportunities Identify investments, which needs to be disposed off Research Department issuing research reports on various sector Risk management department managing risk and return of the portfolio Equity Investors Analyzing Business Determining the entry price on the basis of future and historical performance Estimating IRR on the investment by changing exit value and timings

8 Use and Users of Financial Models Listing, IPO, Offer for Sale, Right issues Purpose of the activity and its impact Determination of offer price and its justification for Underwriters Pre-IPO investors Private Placements IPO / right issue investors SECP KSE Rating Agency Analyzing company's credit worthiness Analyzing company's ability to pay its debt Issuing instrument ratings Issuing entity's ratings Accounting Fair Valuation of Investments Impairment testing of Investments

9 You as the Model Developer (Three HATS) Finance Expert You are the finance expert, working with the elements of the income statement, balance sheet and cash flow statement, using your knowledge of accounting to produce the correct presentation of the results. Spreads Sheet Expert You need to be good at excel, using it to optimum level as per your excel ability. User Friendly You are the visual designer and architect. The worksheet should be structured in such a way that it should be easy and fun to use as possible. Critical Success Factor Balancing all three HATS to prepare User friendly & interactive Financial Model

10 Financial Modeling Process Generally following process is used for preparing Financial Model. Gather Historic Financial Statements and analyze it Compute Ratios from Historic Financial Statements to develop some of the mechanical assumptions about revenue, fixed & variable cost, Working capital Need detailed discussions with all the departments of the organization. i.e. Productions, sales, Commercial & Logistics, Finance Develop Revenue, Expense, working capital and Capital Expenditures by Working through Value Drivers Work through the Income Statement, then the Balance Sheet, then the Cash Flow Statement and Finalize Balance sheet to Check, for forecast years. Valuation, sensitivity analysis and presentation. Planning Building Testing Use

11 Modeling Issues for Profit & Loss and Balance Sheets items

12 Modeling Issues for Profit & Loss and Balance Sheet items Profit & Loss items Revenue Cost of Sales Admin & Selling expenses Financial Charges (Calculated in Debt sheet) Other Income / Other expenses Taxation Balance Sheet Working Capital (Current assets & liabilities) Historical Radar Fixed Assets Debt Cash & Bank Balances (Cash flow Statement) Capital & Reserves (Statement of changes in Equity) Output

13 Revenue Analysis of Revenue of Manufacturing companies Begin with capacity Relate capacity with revenue New capacity driven by corporate strategy Drivers are Capacity, capacity utilization and price Analysis of Revenue of Telecommunication company Begin with market size and market share Revenue = Market size x Market share x Price Drivers are market size, market share and price Analysis of Revenue of Banks and Investment companies Begin with asset and liabilities Use deposit growth and loan to deposit ratio Investments (like capital expenditures) are increases in loan Analysis of Historical Financial Statements Discussion with Sales team Creating sensitivity on Value Drivers

14 Cost of Sales, Admin & Selling Expenses Analysis of Historical Financial Statements Identifying Variable and Fixed Cost Variable cost to be linked to production, demand, Volume drivers Fixed cost to be linked to Historical financial statements Analysis of Historical cost growth trends for both Variable and Fixed cost Impact of Capacity expansion on Variable and Fixed cost Correlation of macro-economic variables may be useful for cost growth factors.

15 Other Income / Other Expenses Other Income Linked with Short term investments Linked with Cash surplus generated in projections Calculate income on average deposit rates Other Expenses WPPF WWF

16 Taxation Taxation Unabsorbed Business Losses Unabsorbed Depreciation Losses Initial Depreciation on addition in Property, plant and equipment Difference between Tax depreciation and Accounting depreciation Tax calculation under normal taxation Turnover tax calculation for comparison Timing of tax payment

17 Working Capital Analysis of Historical Financial Statements Calculating historical turnover days for Debtors (Last year debtor x 365 / revenue) Stocks (Last year stock x 365 / cost) Creditors (Last year creditor x 365 / cost) Use the turnover ratios from historical financial statements for projecting current assets and liabilities Cash flow impact changes in working capital Impact of change in strategy In case of new project, need to analyze the working capital need of the project, which will be used in calculating the returns (IRR, NPV) of the project.

18 Fixed Assets Each Class of asset should show Opening Balance Additions / Deletions Depreciation Closing Balance Divide Additions in following Sustainability Capital Expenditure (CAPEX) Historical analysis Capacity expansion addition /Projects / BMR (CWIP) Interest Capitalization of the project (CWIP) In case of any Capacity expansion / Projects / BMR Identify cost of project Add increase capacity because of project in Production & Revenue Sources of Finance (Debt / Equity), adding it in Debt portion Cash flow impact Tax benefits on Capital Expenditure Presentation gimmicks: We can add option on the project i.e. If management wants to view projections with or without expansion, they can easily do it.

19 Existing Debt Identify current level of short term and long term debt Prepare following Schedules Summary of loans - Balance sheet Summary of current maturity Balance sheet Summary of short term loan - Balance sheet Summary of Interest Profit & Loss Each debt should show Opening Balance Debt drawdown Debt repayments Closing Balance Cash flow impact Creating option for sensitivity analysis on Base rate (KIBOR)

20 New Debt Analyze short term debt requirement with reference to working capital requirements of the company. Possibility of long term loan requirement for expansion / project. (Separate working for new loan) Creating option for different debt structure for the expansion / project. i.e. by changing grace period, total tenor of loan Analyzing the impact of new loans on debt ratios, which are generally set by loan agreements

21 Cash & Bank Balance (Cash flow statement) Auditing / Balancing tool / Cork Screw If Balance sheet is balanced after adding cash & bank balance calculated through cash flow statement then Financial Model is working. Should be simple Divided into Operating Activities Investing Activities Financing Activities

22 Specimen Cash flow statement for Financial Model Cash flow from Operating Activities EBIT (Earning before interest & taxes) + Depreciation / other non cash items Operating profit before working capital changes + Changes in working capital - Financial Charges paid - Taxes paid Cash flow from Operating Activities =======================================

23 Specimen Cash flow statement for Financial Model Cash flow from Investing Activities - Additions in Fixed assets + Disposal of Fixed Assets + Other Income Cash flow from Investing Activities ============================ Cash flow from Financing Activities + Issuance of Equity - Net borrowing / loans - Dividend paid Cash flow from Financing Activities ============================

24 Capital & Reserves (Statement of Changes in Equity) Share Capital Opening Balance New Shares issued Other Adjustment Closing Balance Accumulated Profits Cash flow impact Accumulated Profits brought forward Profit / (loss) for the period Transfer to other reserves Dividend Accumulated Profit carried forward

25 Tips for Balance Sheet items Prepare workings for Balance sheet items in following format except working capital Opening Balance Additions Payments Closing Balance Identify Balance sheet items with which Profit loss items to be linked and calculate those on same sheet e.g Interest to be linked to Debt Cash flow impact Calculate cash flow impact for each Balance sheet items Use Balance sheet as starting and closing point Use Balance sheet as Auditing tool.

26 Tips for Profit & Loss items Identify value driver Link variable items with value drivers Link fixed items with cost growth factor Identify Balance sheet items with which Profit loss items to be linked and calculate those on same sheet e.g Interest to be linked to Debt, Other income on short term investments

27 Historical Radar for Important Assumptions Internal Variables Production Sales Selling Price Key Variable cost Key Fixed Cost Sustainability Capital Expenditure Turnover ratios of Debtors, Creditors, stocks External Variables Borrowing rates, KIBOR, LIBOR PKR to Foreign Currency parities Company history on important assumptions Company assumptions consistent with industry & overall economy Set up sensitivity on important assumptions

28 Output Executive Summary Profit & Loss, Balance Sheet, Cash flow Ratio analysis on the Projected Financial Statements Ratio analysis with lenders view Options Company Valuation Free Cash flow to Firm (FCFF) to WACC (Enterprise Value) Free Cash flow to Equity (FCFE) to Equity Discount Factor (Equity Value) Project IRR, NPV, Payback period (always use XIRR and XNPV) Equity Investors IRR, NPV, Entry and Exit values

29 Executive Summary - Important Numbers / Ratios for Management & Lenders Key Numbers / Ratios for Management Gross Profit Operating Profit Net Profit EBIT EBITDA Working Capital CAPEX Debt (current & proposed) Key Ratios for Lenders Debt (current & proposed) Current ratio Gearing Ratio Debt Service Coverage ratio Impact of new debt on Coverage ratios

30 Corporate Valuation

31 Valuation Methods Discounted Cash Flow Based Market Based Others

32 Discounted Cash Flow Based Valuation Methods Free Cash Flow (FCF) to FIRM Free Cash Flow (FCF) to Equity

33 Free Cash Flow to FIRM (FCFF) FCFF discounted on WACC (Enterprise Value) STEPS to Calculate FCFF (Discounted on WACC) + Terminal Value (Discounted on WACC) Enterprise Value - Current Debt Equity Value =================== Calculate FCFF Determine Discount Factor (WACC) Calculate Terminal Value (TV) Discount FCFF & TV Deduct current debt

34 Free Cash Flow to EQUITY (FCFE) FCFE discounted on Equity Discount Factor (Equity Value) STEPS to Calculate FCFE (Discounted on Equity discount factor) + Terminal Value (Discounted on Equity discount factor) Equity Value ========================================= Calculate FCFE Determine Discount Factor (EQUITY) Calculate Terminal Value (TV) Discount FCFF & TV

35 Free Cash Flow (FCF) Cash flow available for distribution among all the stake holders i.e. Equity holders Debt holders Preference shares holders & so on Formula: Earning Before interest & taxes (EBIT) + Depreciation / Amortization - Changes in working capital - Capital Expenditure Free Cash Flow (FCF) =====================================

36 Free Cash Flow (FCF) Used For Valuation Free Cash Flow to Firm (FCFF) FCF - Tax (FCFF) Enterprise Value ========================== Free Cash Flow to Equity (FCFE) FCF - Tax + Net borrowing Net debt repayment Interest payment FCFE (Equity Value) ======================

37 Terminal Value Why Calculate Terminal Value Cannot estimate cash flow forever Substitute for cash flow projections beyond several years Predicting internal variables industry macro economic conditions beyond certain period is impractical and exposes to uncertainty Estimate Terminal Value to capture the value at the end of the period. Used in discounted cash flow (DCF) valuations

38 Terminal Value Formula Terminal Value is the present value at a future point in time of all future cash flows when we expect stable growth rate forever. TV = FCF of the Last year of projections X (1 + Growth rate) (Discount rate Growth rate) STEPS to Calculate Use last year FCF (FCFF or FCFE as per requirement) Multiply FCF with growth rate Growth rate used cannot be higher then growth rate of economy Assume that growth rate remains same Divide it by discount rate (Use WACC or Equity discount as per requirement) Use discount rate after deduction of growth rate

39 Equity Discount Factor The cost of equity is the return (often expressed as a Equity discount factor) a Company theoretically pays to its equity investors. Company obtain capital from two kinds of sources: Lenders (seek to be rewarded with interest) Equity investors (seek dividends or appreciation in value (capital gain) or both While a Company's present cost of debt is relatively easy to determine from observation of interest rates in the capital markets, its current cost of equity is unobservable and must be estimated. Finance theory and practice offers various models for estimating a particular firm's cost of equity such as the Capital Asset Pricing Model. Another method is derived from the Gordon Model. CAPM Expected return = Rf + Beta( Rm Rf) (beta = Cov(Ri, Rm) / Var (Rm)) Gordon Model Expected return = Dividend x (1 + growth) + growth Market Price

40 Weighted Average Cost of Capital (WACC) Rate that a company is expected to pay on average to all its security holders to finance its assets. Companies raise money from a number of sources: common equity, preferred equity, convertible debt, long term and short term debt and so on. Different securities, which represent different sources of finance, are expected to generate different returns. The WACC is calculated taking into account the relative weights of each component of the capital structure. The more complex the company's capital structure, the more laborious it is to calculate the WACC. Companies can use WACC to see if the investment projects available to them are worthwhile to undertake. The WACC is the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere. WACC = Cost of capital (respective share) + Cost of debt x (1 tax) (respective share)

41 Example of Discounted Cash Flow Valuations Average WACC 13.16% Cost of Equity Average WACC Cost of Equity 19.25% Risk Free Rate 14.0% Cost of Debt 14.0% Terminal Growth 3.00% Risk Premium 7.0% Cost of Equity 19.3% Market Rate 21.0% Debt / Equity ratio 60.0% Equity Beta 0.75 Tax rate 35.0% Cost of Equity 19.25% Average WACC 13.16% DCF Valuation - Free Cashflow to Firm Earning Before Interest & taxes (EBIT) 4,560,937,065 6,391,920,520 7,173,779,568 7,521,671,181 7,882,609,446 8,237,736,112 Add: Depreciation 494,412, ,372, ,024, ,200, ,867, ,992,383 Less: Capital Expenditure (67,450,000) (67,450,000) (67,450,000) (67,450,000) (67,450,000) (67,450,000) Changes in Working Capital (137,177,100) (274,354,199) (196,048,218) (119,090,938) (129,139,362) (138,421,802) Free Cash Flow (FCF) 4,850,722,391 6,553,488,825 7,400,305,691 7,812,331,155 8,150,887,304 8,484,856,693 Less: Taxes Paid (553,674,323) (553,674,323) (886,639,231) (1,818,734,754) (2,140,443,434) (2,371,934,389) Free Cash Flows to Firm 4,297,048,068 5,999,814,502 6,513,666,460 5,993,596,401 6,010,443,869 6,112,922,304 Terminal Value 61,971,554,857 PV of FCFF (based on WACC) 3,797,320,668 4,685,456,884 4,495,175,995 3,655,238,671 3,239,230,491 2,911,328,710 Present Value of Terminal Value (based on WACC) 29,514,454,443 Present Value of Future Cash Flows to Firm 22,783,751,419 Present Value of Terminal Value 29,514,454,443 Enterprise Value 52,298,205,862 Less: Net Debt (20,000,000,000) Value of Equity 32,298,205,862 No. of Shares Outstanding (No.) 500,000,000 Equity Value Per Share (PKR) 64.60

42 Example of Discounted Cash Flow Valuations DCF Valuation - Free Cashflow to Equity Free Cash Flows to Firm 4,297,048,068 5,999,814,502 6,513,666,460 5,993,596,401 6,010,443,869 6,112,922,304 Less: Interest payment (1,749,556,791) (1,894,360,306) (1,390,491,712) (1,091,633,293) (771,732,226) (451,222,899) Less: Debt Repayments / New debt (1,046,649,000) (2,093,298,000) (2,672,920,000) (2,672,920,000) (2,654,170,000) (2,448,040,000) Free Cash Flows to Equity 1,500,842,277 2,012,156,197 2,450,254,747 2,229,043,108 2,584,541,643 3,213,659,405 Terminal Value 20,369,656,536 PV of FCFE (based on cost of equity) 1,258,567,947 1,414,962,451 1,444,894,295 1,102,262,206 1,071,745,319 1,117,505,117 Present Value of Terminal Value (based on cost of equity) 7,083,263,205 Present Value of Future Cash Flows to Firm 7,409,937,335 Present Value of Terminal Value 7,083,263,205 Equity Value 14,493,200,540 No. of Shares Outstanding (No.) 500,000,000 Value per Share 28.99

43 Market Based Valuation Methods Price to Earning Multiples Price to Book Value Multiples Price to Sales Multiples EV (Enterprise Value) / EBITDA Multiples EV (Enterprise Value) / Sales Multiples PEG ratio

44 Market Based Valuation Price to Earning Multiple = Market Price / EPS Company EPS x Average Price to earning ratio of the industry (Market Price / EPS) Price to Book Value Multiple = Market Price / Book value Company Book Value x Average Price to book value ratio of the industry (Market price / Book Value) Price to Sales Multiple = Market Price / Sales Company Sales x Average Price to Sales ratio of the industry (Market price / Sales Value)

45 Market Based Valuation EV / EBITDA Multiple Company EBITDA x Average EV / EBITDA ratio of the industry EV is based on market capitalization plus Debt less cash available. Market Capitalization = Share price x Share outstanding of a listed company. EV / Sales Multiple Company Sales x Average EV / Sales ratio of the industry EV is based on market capitalization plus Debt less cash available. Market Capitalization = Share price x Share outstanding of a listed company.

46 Market Based Valuation PEG ratio (Price / Earning to Growth rate) Price / Earnings Annual EPS Growth In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. The P/E ratio used in the calculation may be projected or trailing or average, and the annual growth rate may be the expected growth rate for the next year or the next five years. PEG SCALE Future Earnings Growth is not fully priced in current market price Future Earnings Growth is over priced in current market price 0 1 2

47 Example of Market Based Valuation Price to Book Value Multiple Valuation (PKR) Company Book Value Per Share as of XXXXXX P/BV(X) Company A 4.83 Company B 2.06 Company C 1.63 Average 2.84 Company Value per Share (PKR) (Market price as of xxxxxxx, and Book Value as of xxxxxx) Price to Earnings Multiple Valuation (PKR) Company Earnings Per Share for the year ended XXXXXX 5.00 P/E(x) Company A 9.91 Company B 5.90 Company C 9.52 Average 8.45 Company Value per Share (PKR) (Market price as of xxxxxxx, and Earnings as of xxxxxx) EV/EBITDA Multiple Valuation (PKR) EBITDA for the year ended XXXXXX 4,600,000,000 EV/EBITDA (x) Company A 6.59 Company B 4.71 Company C Average 8.15 Company Value per Share (PKR) (Market price as of xxxxxxx, and EBITDA as of xxxxxx)

48 Valuation Matrix DCF/FCFE PKR AVERAGE SHARE PRICE OF The Company Proposed Company P/E (x) DCF/FCFF PKR P/BV (x) PKR EV/EBITDA PKR Method (PKR) FCFE FCFF PBV PER EV/EBITDA AVERAGE Valuation / Share Xxx Xxx Xxx Xxx Xxx Xxx Offer Price Discount to Valuation Xxx x% x% x% x% x% x%

49 Other Valuation Methods Book Value Market Value Replacement Value Comparison with Market transactions

50 Types of Financial Model

51 Types of Financial Model (Renowned) Corporate model Built for company, which has a history and it is assumed to last indefinitely (although they probably won t in reality.) this means that valuation of a corporation begins with historic analysis and the models must include some kind of terminal value assumption because the cash flow are not projected forever. Project finance model Built for new projects, which has no history (no matter how many times a similar new plant is built, you don t know how it will work until you switch it on). The project finance models focus on cash flows, IRR and payback of the project and generally cover the entire lifetime of the project. Leveraged buyout model (Equity Investor) The transaction is defined by an entry price, the holding period and exit price and the return earned by equity investors. The model is based on corporate model. Acquisition & Merger model (Synergy impact) This model is again based on corporate model. Then computes earnings per share and other financial ratios before and after an acquisition. This type of model considers the specific synergies and cost savings generated by the transaction.

52 Structure of Financial Models Information Base Starting Point Corporate Model Project Finance LBO Model M&A Model Historical financial statement: Analysis of value drivers Historic Balance Sheet Contracts and analysis of Product & raw material Prices and other value drivers Sources (Equity / debt) and Uses Analysis (create Balance sheet) Historical Financial statements: Analysis of value drivers: Transaction Terms Sources and Uses and Pro-Forma Balance Sheet Historical financial statements: Analysis of value drivers: Transaction Terms Sources and Uses and Pro-Forma Balance Sheet Cash Flow Net Cash Flow for the equity holders Cash Flow that ultimately measures dividends paid to equity Cash flow that ends in dividends paid to equity Cash flow changes that result in surplus cash after merger Debt Analysis New and Existing New Debt issues from Transaction New Debt issues from Transaction Existing debt issues: Retired Debt Issues: New Debt Issue Model Termination Terminal period End of Project Life Transaction holding period Profitability Analysis period Model Output DCF valuation, Profitability projection Equity IRR, Project IRR & NPV, Payback period, DSCR Equity IRR Project EPS and other Ratios on Standalone vs. Combined Basis

53 Structure of Corporate Model Inputs: Historic Financial Revenue, Expense and Capital Expenditure Analysis Working Capital Analysis Profit and Loss Taxes paid Valuation Operating Drivers, Financing, Tax Debt Schedule of Existing Issues Cash Flow Statement Free Cash Flow Fixed Asset schedule Book and Tax Depreciation Cash Balance, Closing Balance Sheet Initial Balance Sheet

54 Corporate Model Ordering & Layout Base Historic Financial Data Balance Sheet As Anchor Input Sheets Different Colors Arranging of Inputs Set-up Sensitivity Working Sheets Arrangement by revenues, expenses, capital expenditure and working capital Arrangements by capacity, revenue, and cost structure Working Capital Analysis Depreciation schedule (Books and Tax) Assets classes and tax depreciation Debt Schedule Issue by issue and sum the totals Financial Statements Income statement Tax Calculation Cash Flow Balance Sheet Output Sheets Valuation Financial Ratios

55 Structure of Project Finance Model Revenues, Expenses and Capital Expenditure Analysis Working Capital Analysis Profit and Loss Taxes Paid Inputs: Operating Drivers from Contracts and Market EPC Contract, Source of Finance, Interest Rate Tax Sources and Uses of Funds during Construction Debt Schedule Fixed Assets Interest Capitalize d Fees and Other Cash Flow Statement with Waterfall, Cash Balance, Closing the Balance sheet Balance Sheet Equity IRR DSCR, Payback

56 Project Finance Model Ordering & Layout Cost of project and Sources of Finance (Debt & Equity ratio) Input Sheets Different colors Arranging of inputs Working Sheets Arrangements by revenues, expenses and capital expenditures Arrangements by capacity, demand, and cost structure Debt Schedule Depreciation Schedule Financial Statements Sources and Uses of Funds Income Statement Balance Sheet Cash Flow Output Sheets Valuation IRR Payback period Debt service Coverage Ratios

57 Structure of LBO Model Inputs: Operating Drivers from History, Acquisition Price and Financing Sources, Revenues, Expenses and Capital Expenditure Analysis Working Capital Analysis Sources and Uses of Funds Debt Schedule Fixed Assets Profit and Loss Taxes Paid Cash Flow Statement Cash Balance, Closing the Balance Sheet Purchase Price Balance Sheet Pro-Forma Balance Sheet Equity IRR

58 LBO Model Ordering & Layout Purchase price, operating cash flows, terminal value Input sheets Different colors Arranging of inputs Working sheets Arrangement by revenues, expenses and capital expenditures Arrangement by capacity, demand and cost structure Uses and sources of funds Debt and Equity ratio, Debt Schedule Depreciation Schedule Financial Statements Income Statement Balance Sheet Cash Flow Output Sheets Transaction Multiples Valuation IRR

59 Structure of Merger & Acquisition Model Target Company Financials Profit and Loss Inputs: Operating Drivers from History, Acquisition Price and Financing Sources, Acquiring Company Financials Sources and Uses of Funds Debt Schedule Fixed Assets Taxes Paid Cash Flow Statement Cash Balance, Closing the Balance Sheet Tax Goodwill and Purchase Price Allocation Balance Sheet Impact on Profitability Pro-Forma Balance Sheet

60 Merger & Acquisition Model Ordering & Layout Inputs for transaction Consolidated tax rate, interest rate on new financing, dividend payout ratio, other financing parameters on consolidated basis Operational Synergies Transaction assumptions (transaction price, debt retirement, new debt financing) Sources and Uses of Funds Goodwill Pro-forma Balance Sheet Target Financials Buyer Financials Depreciation and Tax Adjustments Consolidated Financials Outputs, Impact on profitability, EPS, other lender related ratios

61 Good Modeling Practices Keep it simple. keep formulas in the model as simple as possible and clearly delineate how each formula is derived from the inputs Have a clear idea of what the model needs to do. Be clear about what the users want and expect. Maintain a logical arrangements of the parts. Make all calculations in the model visible. Save in progress versions under different names, and save them often. Working through every single balance sheet item showing the opening balance, changes and the closing balance for each the accounts. This analysis should be made for everything ranging from cash to equity. Use the balance sheet as an auditing tool and include a separate integrity page of model verification checks. assure that no formula in the output module of a model affect anything in any other section of the model. Make sure that spreadsheet columns are consistent throughout the model and that the formulas for each column are identical ( at least for the forecast period). If possible, include a dashboard at the top of each page of the model to monitor the integrity and key outputs of the model. Test, test and test.

62 Presentation Gimmicks Discussion

63 Options in the Financial model Create Options Business segments Expansion projects Sensitivity on Key variables Conditional Formatting If Function Alternate to if function XIRR and XNPV

64 Thank you In case of any question / feedback, feel free to contact. Affan Sajjad Cell #

### INTERVIEWS - FINANCIAL MODELING

420 W. 118th Street, Room 420 New York, NY 10027 P: 212-854-4613 F: 212-854-6190 www.sipa.columbia.edu/ocs INTERVIEWS - FINANCIAL MODELING Basic valuation concepts are among the most popular technical

### Valuation for merger and acquisition. March 2015

Valuation for merger and acquisition March 2015 Flow of presentation Valuation methodologies Valuation in the context of Merger and Acquisition Indian Regulatory Environment and Minority Interest Safeguard

Overview of Business Valuations By CA Niketa Agarwal Last few years have not been encouraging for the global economy due to crisis and slow recovery in several large and developed countries. India experienced

### Fundamentals Level Skills Module, Paper F9. Section A. Monetary value of return = \$3 10 x 1 197 = \$3 71 Current share price = \$3 71 \$0 21 = \$3 50

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2014 Answers Section A 1 A Monetary value of return = \$3 10 x 1 197 = \$3 71 Current share price = \$3 71 \$0 21 = \$3 50 2

### Valuation approaches to Mergers & Acquisitions

Valuation approaches to Mergers & Acquisitions Sagar Gokani, Chief Manager M&A & IR, Piramal Healthcare Limited 7 th July 2012 Contents Approaches to Valuation Discounted Cash Flow Relative Valuation Valuing

### Financial & Valuation Modeling Boot Camp

TARGET AUDIENCE Overview 3-day intensive training program where trainees learn financial & valuation modeling in Excel using in a hands-on, case-study approach. The modeling methodologies covered include:

### Paper F9. Financial Management. Fundamentals Pilot Paper Skills module. The Association of Chartered Certified Accountants

Fundamentals Pilot Paper Skills module Financial Management Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Do NOT open this paper

### Comprehensive exam Feb.11

Comprehensive exam Feb.11 1 Objectives of the examination Apply the financial management concept to evaluate the company s performance. Relate the results of the analysis to make financial decisions or

Financing Your Dream: A Presentation at the Youth Business Linkage Forum (#EAWY2014) Akin Oyebode Head SME Banking, Stanbic IBTC Bank, Nigeria. Content 1 Introduction 2 Profit and loss Account or Income

### Consolidated balance sheet

Consolidated balance sheet Non current assets 31/12/2009 31/12/2008 (*) 01/01/2008 (*) Property, plant and equipment 1,352 1,350 1,144 Investment property 7 11 11 Fixed assets held under concessions 13,089

### Actuarial Society of India

Actuarial Society of India EXAMINATIONS November 2004 SUBJECT - 108: Finance and Financial Reporting Indicative Solution S-108 Page 1 of 7 1 D 2 C 3 B 4 D 5 D 6 A 7 B 8 C 9 B 10 D 11 Trade credit is short-term

### COPAL INSTITUTE S ONLINE CERTIFICATE COURSES From the leading player in Financial Services outsourcing industry

Institute Nurturing Professionals in Banking and Finance COPAL INSTITUTE S ONLINE CERTIFICATE COURSES From the leading player in Financial Services outsourcing industry Certificate in Online Finance Courses

### Leveraged Buyout Model Quick Reference

Leveraged Buyout (LBO) Model Overview A leveraged buyout model shows what happens when a private equity firm acquires a company using a combination of equity (cash) and debt, and then sells it in 3-5 years.

### FINANCIAL MODELING AND VALUATION

FINANCIAL MODELING AND VALUATION Advance Executive Education A primer to Financial Modeling, Valuation Methodologies, M&A and LBO Analysis, and Project Financing Jobs where Financial Modeling is required

### CFAspace. CFA Level II. Provided by APF. Academy of Professional Finance 专 业 金 融 学 院

CFAspace Provided by APF CFA Level II Equity Investments Free Cash Flow Valuation Part I CFA Lecturer: Hillary Wang Content Free cash flow to the firm, free cash flow to equity Ownership perspective implicit

### LECTURE- 4. Valuing stocks Berk, De Marzo Chapter 9

1 LECTURE- 4 Valuing stocks Berk, De Marzo Chapter 9 2 The Dividend Discount Model A One-Year Investor Potential Cash Flows Dividend Sale of Stock Timeline for One-Year Investor Since the cash flows are

### ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure Chapter 9 Valuation Questions and Problems 1. You are considering purchasing shares of DeltaCad Inc. for \$40/share. Your analysis of the company

### Advanced Merger Model Quick Reference Common Formulas & Model Setup. http://breakingintowallstreet.com. Transaction Structure & Assumptions

Transaction Structure & Assumptions Equity Purchase Price = Diluted Shares Outstanding * Per Share Purchase Price For private companies, you don t have shares outstanding or share prices, so the equity

### Management Accounting Financial Strategy

PAPER P9 Management Accounting Financial Strategy The Examiner provides a short study guide, for all candidates revising for this paper, to some first principles of finance and financial management Based

### IPO (Initial Public Offering) / Listing Planning

IPO (Initial Public Offering) / Listing Planning Presented by Affan Sajjad ACA Cell # 03219400788 Presenter Profile Passed CA exams in December 2004 Became Associate Member of ICAP in November 2005 Completed

### Equity Analysis and Capital Structure. A New Venture s Perspective

Equity Analysis and Capital Structure A New Venture s Perspective 1 Venture s Capital Structure ASSETS Short- term Assets Cash A/R Inventories Long- term Assets Plant and Equipment Intellectual Property

### Accounting & Financial Modeling Liberal Arts Boot Camp Overview

fa Accounting & Financial Modeling Liberal Arts Boot Camp Overview 2-day intensive training program where liberal arts students learn financial accounting, financial modeling in Excel, and technical interview

### Oil & Gas Financial Statement Modeling in Excel

Oil & Gas Financial Statement Modeling in Excel Trainees develop an Oil & Gas (O&G) financial model completely from scratch, inputting historical data as well as macro and company-specific assumptions

### Merger Model Overview

Merger Model Overview We can divide the merger model into an 8-step process: The merger model tells you what happens when one company acquires another company. Usually, the buyer makes an offer to acquire

### Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

### TIP If you do not understand something,

Valuing common stocks Application of the DCF approach TIP If you do not understand something, ask me! The plan of the lecture Review what we have accomplished in the last lecture Some terms about stocks

### Practical, Engaging Financial Training for Non-Financial People

info@financetalking.com +44 (0)1572 717000 Practical, Engaging Financial Training for Non-Financial People Learn to speak the language of the board room FinanceTalking s elearning Tailored in-company training

### To provide students with a thorough understanding of techniques, theories and issues found in practical corporate finance situations.

DIPLOMA IN CORPORATE FINANCE - Paper One: Corporate Finance Techniques and Theory Aim Content 1. Financial Statement Analysis 2. Valuation 3. Debt and Equity 4. Mergers, Acquisitions and Disposals 5. Regulation,

### EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) Recurring revenues \$ 314,727 \$ 282,117 \$ 216,517 \$ 834,080 \$ 610,384 Non-recurring revenues 15,620

### I m going to cover 7 key points about FCF here:

Free Cash Flow Overview When you re valuing a company with a DCF analysis, you need to calculate their Free Cash Flow (FCF) to figure out what they re worth. While Free Cash Flow is simple in theory, in

### Company Share Price Valuation using Free Cash Flow To Equity

Financial Modeling Templates Company Share Price Valuation using Free Cash Flow To Equity http://spreadsheetml.com/finance/valuation_freecashflowtoequity.shtml Copyright (c) 2009-2014, ConnectCode All

### LEADing Practice Financial Scorecard Measurements

LEADing Practice Financial Scorecard Measurements Scorecard Area Finance & Accounting Scorecard Group Accounting ratios Balance sheet Scorecard Performance Measurement Deferred revenue as % of total revenue

### LOS 42.a: Define and interpret free cash flow to the firm (FCFF) and free cash flow to equity (FCFE).

The following is a review of the Equity Investments principles designed to address the learning outcome statements set forth by CFA Institute. This topic is also covered in: Free Cash Flow Valuation This

### VALUATION JC PENNEY (NYSE:JCP)

VALUATION JC PENNEY (NYSE:JCP) Prepared for Dr. K.C. Chen California State University, Fresno Prepared by Sicilia Sendjaja Finance 129-Student Investment Funds December 15 th, 2009 California State University,

### Chapter 5: Valuation. Albert Banal-Estanol

Corporate Finance Chapter 5: Valuation Company valuation Valuation methods: Based on comparables or multiples Discounting cash flows: Weighted average cost of capital (WACC) Adjusted present value Flow

### PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY

PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY INTRODUCTION This document includes an analysis of the projection methodology used in ProfitCents Analytical Procedures in calculating expectations

### Valuation for Mergers, Buyouts and Restructuring (John Wiley & Sons, New York, 2005)

Valuation for Mergers, Buyouts and Restructuring (John Wiley & Sons, New York, 2005) Professor of Finance and Economics Graduate School of Business, Columbia University New York, N.Y. 10027 Email: era1@columbia.edu

### 1 (a) Net present value of investment in new machinery Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales income 6,084 6,327 6,580 6,844

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2013 Answers 1 (a) Net present value of investment in new machinery Year 1 2 3 4 5 \$000 \$000 \$000 \$000 \$000 Sales income 6,084

### Introduction to Project Finance Analytic Methods

Introduction to Project Finance Analytic Methods Renewable Energy and Project Development and Financing for California Tribes Sacramento, CA Jack Whittier, McNeil Technologies January 2008 Why? Use a model

### Fundamentals Level Skills Module, Paper F9

Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2008 Answers 1 (a) Rights issue price = 2 5 x 0 8 = \$2 00 per share Theoretical ex rights price = ((2 50 x 4) + (1 x 2 00)/5=\$2

### Teacher Resource Bank

Teacher Resource Bank GCE Accounting Other Guidance: ACCN2 Update on IAS ACCN3 Updates on IAS (July 2012). The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registered

### Cash Flow Analysis Venture Business Perspective

Cash Flow Analysis Venture Business Perspective Cash Flow (CF) Analysis What is CF and how is determined? CF Free CF Managing CF Cash Conversion Cyclical CF Break-even Valuing venture businesses based

### Understanding Cash Flow Statements

Understanding Cash Flow Statements 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Components and Format of the Cash Flow Statement... 3 3. The

### Consolidated Interim Earnings Report

Consolidated Interim Earnings Report For the Six Months Ended 30th September, 2003 23th Octorber, 2003 Hitachi Capital Corporation These financial statements were prepared for the interim earnings release

### Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated

### for Analysing Listed Private Equity Companies

8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.

### Modelling for Project Finance. Training course outline

Modelling for Project Finance Training course outline Overview This course aims to provide participants with a thorough understanding of how to build a robust financial model from start to finish. Calculations

### Financial Modeling Fundamentals Module 03 Accounting Interview Questions Quiz Question

Financial Modeling Fundamentals Module 03 Accounting Interview Questions Quiz Question 1. On the first day of the year, a company pays \$120 for insurance coverage for the entire year, which reduces Cash

### Cash Flow Analysis Venture Business Perspective

Cash Flow Analysis Venture Business Perspective Cash Flow (CF) Analysis What is CF and how is determined? CF Operating CF Free CF Managing CF Cash Conversion Cyclical CF Break-even Valuing venture businesses

### VALUATION CA Bhavik Shah 16 May 2015

VALUATION CA Bhavik Shah 16 May 2015 Presentation Overview Valuation Concept Purpose of Valuation Principal Methods of Valuation Net Assets Value (NAV) Method Price to Book Multiple (P/B) Method Price

### Basic valuation and accounting guide

Basic valuation and accounting guide 1 Five Forces and SWOT INDUSTRY Scoring range 1 5 (high score is good) Power of suppliers A concentration of suppliers will mean less chance to negotiate better pricing.

### Guidelines for Preparation of a Business Plan

Guidelines for Preparation of a Business Plan These notes are provided as a guide for preparation and submission of a Business Plan detailed presentation of a project, business venture or technology development,

### Discounted Cash Flow Valuation: Basics

Discounted Cash Flow Valuation: Basics Aswath Damodaran Aswath Damodaran 1 Discounted Cashflow Valuation: Basis for Approach Value = t=n CF t t =1(1+r) t where CF t is the cash flow in period t, r is the

### Mergers & Acquisitions

Mergers & Acquisitions 2013 Program 1 st week Introduction M&A business Marked overview, Motivation doing a deal and Reasons of failing acquisitions Shareholder Value requirements and reality, Example

### how to prepare a cash flow statement

business builder 4 how to prepare a cash flow statement zions business resource center zions business resource center 2 how to prepare a cash flow statement A cash flow statement is important to your business

### Belden. Leading the Way to an Interconnected World. August 2015. 2015 Belden Inc. belden.com @BeldenInc

Belden Leading the Way to an Interconnected World August 2015 2015 Belden Inc. belden.com @BeldenInc Belden s Business Transformation Portfolio Expansion Market and Geographic Footprint Talent/ Leadership

Chapter 17 Valuation and Capital Budgeting for the Levered Firm 17A-1 Appendix 17A The Adjusted Present Value Approach to Valuing Leveraged Buyouts 1 Introduction A leveraged buyout (LBO) is the acquisition

### Consolidated Statement of Profit or Loss (in million Euro)

Consolidated Statement of Profit or Loss (in million Euro) FY 2014 FY 2015 % change Q4 2014 Q4 2015 % change un Revenue 2,620 2,646 1.0% 711 672-5.5% Cost of sales (1,813) (1,804) -0.5% (489) (464) -5.1%

### CASH FLOW STATEMENT & BALANCE SHEET GUIDE

CASH FLOW STATEMENT & BALANCE SHEET GUIDE The Agriculture Development Council requires the submission of a cash flow statement and balance sheet that provide annual financial projections for the business

### Full Year Results 2014

Full Year Results 2014 18 March 2015 Conference call on FY Results 2014 Corporate Finance & Investor Relations AGENDA FY 2014 results presentation Highlights 2014 Financials 2014 Outlook 2015 Appendix

### Consolidated Financial Results for Fiscal Year 2013 (April 1, 2013 March 31, 2014)

Consolidated Financial Results for Fiscal Year 2013 (April 1, 2013 March 31, 2014) 28/4/2014 Name of registrant: ShinMaywa Industries, Ltd. Stock Exchange Listed: Tokyo Code number: 7224 (URL: http://www.shinmaywa.co.jp

### Financial ratio analysis

Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction 2. Liquidity ratios 3. Profitability ratios and activity ratios 4. Financial leverage ratios 5. Shareholder

### The Adjusted Present Value Approach to Valuing Leveraged Buyouts 1 Introduction

Chapter 18 Valuation and Capital Budgeting for the Levered Firm 18A-1 Appendix 18A The Adjusted Present Value Approach to Valuing Leveraged Buyouts 1 Introduction A leveraged buyout (LBO) is the acquisition

### Contribution 787 1,368 1,813 983. Taxable cash flow 682 1,253 1,688 858 Tax liabilities (205) (376) (506) (257)

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2012 Answers 1 (a) Calculation of net present value (NPV) As nominal after-tax cash flows are to be discounted, the nominal

### Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

### Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

### CIMA F3 Course Notes. Chapter 11. Company valuations

CIMA F3 Course Notes Chapter 11 Company valuations Personal use only - not licensed for use on courses 144 1. Company valuations There are several methods of valuing the equity of a company. The simplest

### Financial Modeling & Forecasting. Jason MacMorran www.pncpa.com

Financial Modeling & Forecasting Jason MacMorran www.pncpa.com Presentation Outline I. Introduction and Learning Objectives II. Definitions and Standards Overview III. Uses for Financial Models IV. Basics

### Chapters 3 and 13 Financial Statement and Cash Flow Analysis

Chapters 3 and 13 Financial Statement and Cash Flow Analysis Balance Sheet Assets Cash Inventory Accounts Receivable Property Plant Equipment Total Assets Liabilities and Shareholder s Equity Accounts

### Fundamental Analysis Ratios

Fundamental Analysis Ratios Fundamental analysis ratios are used to both measure the performance of a company relative to other companies in the same market sector and to value a company. There are three

### Practice Bulletin No. 2

Practice Bulletin No. 2 INTERNATIONAL GLOSSARY OF BUSINESS VALUATION TERMS To enhance and sustain the quality of business valuations for the benefit of the profession and its clientele, the below identified

### Consolidated Statement of Profit or Loss (in million Euro)

Consolidated Statement of Profit or Loss (in million Euro) Q3 2013 Q3 2014 % change 9m 2013 9m 2014 % change Revenue 689 636-7.7% 2,126 1,909-10.2% Cost of sales (497) (440) -11.5% (1,520) (1,324) -12.9%

### Institute of Chartered Accountant Ghana (ICAG) Paper 2.4 Financial Management

Institute of Chartered Accountant Ghana (ICAG) Paper 2.4 Financial Management Final Mock Exam 1 Marking scheme and suggested solutions DO NOT TURN THIS PAGE UNTIL YOU HAVE COMPLETED THE MOCK EXAM ii Financial

### Real Estate Modeling Quick Reference Real Estate Valuation

Real Estate Valuation Real Estate Valuation may refer to either (1) valuing individual properties or (2) valuing entire REITs. There s overlap with some of the methods, whereas other methods only apply

### This document may not be used, reproduced or sold without the authorisation of the Groupe HEC

Please send any questions on this case study to the author via the mail box on the web site www.vernimmen.com Pascal Quiry October 2010 This document may not be used, reproduced or sold without the authorisation

### Discounted Cash Flow Methodology. Table of Contents. Section 1 Discounted Cash Flow Overview CONFIDENTIAL. DCF Primer 5467729.doc

Table of Contents Section 1 Discounted Cash Flow Overview CONFIDENTIAL DCF Primer 5467729.doc Section 1 Discounted Cash Flow Overview The DCF approach values a business based on its future expected cash

### Question 1. Marking scheme. F9 ACCA June 2013 Exam: BPP Answers

Question 1 Text references. NPV is covered in Chapter 8 and real or nominal terms in Chapter 9. Financial objectives are covered in Chapter 1. Top tips. Part (b) requires you to explain the different approaches.

### TransUnion Reports Third Quarter 2014 Results

TransUnion Reports Third Quarter 2014 Results Revenue of \$338 million, an increase of 13 percent on a GAAP basis (14 percent on a constant currency basis) compared with the third quarter of 2013 Adjusted

### CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended June 30, 2002

CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended June 30, 2002 Unaudited Unaudited Note Turnover 2 5,576 5,803 Other net losses (1) (39) 5,575 5,764 Direct costs and operating expenses (1,910)

### User Guide for OPIC Financial Projections Model Builder Tool

User Guide for OPIC Financial Projections Model Builder Tool 4/2/2013 Prepared by: Deborah Howard Document Control Document Information Information Document Owner Deborah Howard Issue Date 4/2/2013 Document

### Transition to International Financial Reporting Standards

Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps

### INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting

www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial

### NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS

NAS 03 NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS CONTENTS Paragraphs OBJECTIVE SCOPE 1-3 BENEFITS OF CASH FLOWS INFORMATION 4-5 DEFINITIONS 6-9 Cash and cash equivalents 7-9 PRESENTATION OF A

### Bank Valuation: Comparable Public Companies & Precedent Transactions

Bank Valuation: Comparable Public Companies & Precedent Transactions Picking a set of comparable companies or precedent transactions for a bank is very similar to what you d do for any other company here

### CHAPTER 18. Capital Budgeting and Valuation with Leverage. Chapter Synopsis

CHAPTER 18 Capital Budgeting and Valuation with everage Chapter Synopsis 18.1 Overview of Key Concepts There are three discounted cash flow valuation methods: the weighted average cost of capital (WACC)

### Intermediate (IPC)Course Paper 3 Part 2 Financial Management Chapter 3 CA. N Raja Natarajan, B.Com, PGDBA, ACA

Intermediate (IPC)Course Paper 3 Part 2 Financial Management Chapter 3 CA. N Raja Natarajan, B.Com, PGDBA, ACA Classification of Ratios Liquidity Ratios Capital Structure / Leverage Ratios Activity Ratios

### MITSUI SUMITOMO INSURANCE COMPANY, LIMITED AND SUBSIDIARIES. CONSOLIDATED BALANCE SHEETS March 31, 2005 and 2006

CONSOLIDATED BALANCE SHEETS March 31, 2005 and 2006 2005 2006 ASSETS Investments - other than investments in affiliates: Securities available for sale: Fixed maturities, at fair value 3,043,851 3,193,503

### ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements. Fall 2015 Comp Week 5

ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements Fall 2015 Comp Week 5 CODE: CA\$H Administrative Stuff Send an email to trentnelson@college.harvard.edu if you have not been added

### Financial statements of ČEZ, a. s. as of December 31, 2013

Financial statements of ČEZ, a. s. as of December 31, 2013 In terms of Section 19a of the Accounting Act, the financial statements of ČEZ, a. s. as of December 31, 2013 were compiled in accordance with

### International Glossary of Business Valuation Terms*

40 Statement on Standards for Valuation Services No. 1 APPENDIX B International Glossary of Business Valuation Terms* To enhance and sustain the quality of business valuations for the benefit of the profession

### Financial Analysis Project. Apple Inc.

MBA 606, Managerial Finance Spring 2008 Pfeiffer/Triangle Financial Analysis Project Apple Inc. Prepared by: Radoslav Petrov Course Instructor: Dr. Rosemary E. Minyard Submission Date: 5 May 2008 Petrov,

### REIT valuation. Real estate finance

REIT valuation Real estate finance (a) Basics Basics Real Estate Investment Trusts 1. buy, sell and hold real estate assets on behalf of a diffuse shareholder base 2. manage these and other assets 3. are

### Fundamentals Level Skills Module, Paper F9

Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2008 Answers 1 (a) Calculation of weighted average cost of capital (WACC) Cost of equity Cost of equity using capital asset

### 3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS

3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS (1) Consolidated Quarterly Balance Sheets September 30, 2014 and March 31, 2014 Supplementary Information 2Q FY March 2015 March 31, 2014 September 30, 2014

### AN INTRODUCTION TO REAL ESTATE INVESTMENT ANALYSIS: A TOOL KIT REFERENCE FOR PRIVATE INVESTORS

AN INTRODUCTION TO REAL ESTATE INVESTMENT ANALYSIS: A TOOL KIT REFERENCE FOR PRIVATE INVESTORS Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca Rules of thumb and financial analysis

### Consolidated Balance Sheets

Consolidated Balance Sheets March 31 2015 2014 2015 Assets: Current assets Cash and cash equivalents 726,888 604,571 \$ 6,057,400 Marketable securities 19,033 16,635 158,608 Notes and accounts receivable:

### A X A L T A C O A T I N G S Y S T E M S. Q1 2016 FINANCIAL RESULTS April 28, 2016

A X A L T A C O A T I N G S Y S T E M S Q1 2016 FINANCIAL RESULTS April 28, 2016 Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain