
Corporate Valuation Modeling : A Step-by-Step Guide
by Allman, KeithRent Book
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Summary
Author Biography
Table of Contents
Preface | p. ix |
Acknowledgments | p. xi |
Introduction | p. 1 |
Overview of the Corporate Valuation Process | p. 1 |
Conceptual Roadmap | p. 4 |
Technical Roadmap | p. 5 |
A Few Best Practices Regarding Financial Modeling | p. 7 |
How This Book Works | p. 8 |
Initial Settings and Assumptions Sheet Setup | p. 10 |
Toolbox: Naming Cells | p. 15 |
Dates and Timing | p. 17 |
The Need for a Flexible System | p. 17 |
The Forecast Period | p. 18 |
The Terminal Period | p. 19 |
Historical Time Periods | p. 19 |
Event Timing | p. 21 |
Dates and Timing on the Assumptions Sheet | p. 22 |
Introducing the Vectors Sheet | p. 23 |
Summary of Dates and Timing | p. 25 |
Toolbox | p. 25 |
Revenue, Costs, and the Income Statement | p. 39 |
Revenue | p. 39 |
Three Methods for Estimating Revenue Based on Historical Data | p. 41 |
Costs | p. 51 |
Organizing Revenue and Cost Assumptions for Scenario Analysis | p. 53 |
Installing an Excel-Based Scenario Selector System | p. 54 |
Bringing Revenues and Costs Together: The Income Statement | p. 58 |
Integrating the Income Statement | p. 58 |
A Work in Progress | p. 64 |
Toolbox | p. 65 |
Capital Structure and Balance Sheet | p. 75 |
What the Company Owns | p. 77 |
Starting the Balance Sheet with Assets | p. 81 |
What the Company Owes | p. 86 |
Continuing the Balance Sheet with Liabilities | p. 89 |
What the Company Has Already Paid For | p. 91 |
Continuing the Balance Sheet with Equity | p. 93 |
Toolbox: Be Careful with Growth | p. 94 |
Capital Expenditures, Depreciation, Intangibles, and Amortization | p. 95 |
Capital Expenditures | p. 95 |
Depreciation | p. 96 |
A Balance Sheet or an Income Statement Item? | p. 97 |
Concept Status | p. 97 |
Capital Expenditure Schedules Setup | p. 99 |
Depreciation Schedules Setup | p. 101 |
Intangibles | p. 105 |
Amortization | p. 105 |
Intangibles and Amortization Schedules | p. 106 |
Income Statement and Balance Sheet Effects | p. 108 |
Integrating Capital Expenditures, Depreciation, Intangibles, and Amortization | p. 109 |
Toolbox | p. 111 |
Long-Term Debt | p. 117 |
What Is Long-Term Debt? | p. 117 |
Using Debt for a Reason | p. 117 |
Modeling Debt: Debt Components in Detail | p. 119 |
Setting Up Debt and Calculating What Is Due | p. 121 |
Paying Liabilities | p. 133 |
Paying the Correct Liability Amount | p. 138 |
Integrating Long-Term Debt into the Income Statement and Balance Sheet | p. 147 |
Toolbox | p. 149 |
Balancing the Model | p. 153 |
Calculating Cash and Short-Term Debt Interest | p. 153 |
Working with the Model | p. 161 |
The Model as an Analysis Tool | p. 164 |
Toolbox: Excel's Calculation Modes | p. 164 |
Reconciling Cash Flow | p. 167 |
The Cash Flow Statement | p. 167 |
Working Capital | p. 168 |
Calculating Working Capital | p. 169 |
Building the Cash Flow Statement | p. 171 |
Preventing Error through Internal Validation | p. 178 |
Implementing Internal Validations | p. 178 |
Other Validations | p. 181 |
Toolbox | p. 181 |
Free Cash Flow, Terminal Value, and Discount Rates and Methods | p. 185 |
Free Cash Flow: A Matter of Perspective | p. 185 |
Implementing Free Cash Flow | p. 189 |
Terminal Value: Beyond the Forecast Period | p. 191 |
Calculating and Integrating a Stable-Growth Terminal Value | p. 194 |
Discount Rates and Methods | p. 199 |
Calculating and Implementing the Weighted Average Cost of Capital | p. 203 |
Discounting with Multiple Rates to Determine the Corporate Value | p. 206 |
After the Corporate Valuation | p. 207 |
Toolbox | p. 207 |
Output Reporting | p. 215 |
Output Summary | p. 215 |
Preparing for the Output Summary Sheet | p. 216 |
Web Downloads | p. 216 |
Connecting the Example Model to the Web | p. 217 |
Creating the Output Summary Sheet | p. 221 |
p. 223 | |
Creating Dynamic Charts | p. 224 |
Toolbox | p. 226 |
Automation Using Visual Basic Applications (VBA) | p. 233 |
The Object-Oriented Programming Language (OOP) | p. 233 |
Follow the Rules | p. 235 |
The Visual Basic Editor | p. 235 |
Writing Code: Subroutines and Functions | p. 238 |
Understanding VBA Code and Practicing Coding Techniques | p. 239 |
Moving Data Using VBA | p. 240 |
A First Look at Loops and Variables in VBA | p. 244 |
Common Errors for First-Time VBA Programmers | p. 247 |
VBA within a Financial Modeling Context | p. 247 |
Eliminating Circular References | p. 248 |
Creating a Scenario Generator | p. 252 |
Automatic Sheet Printing | p. 257 |
Continuing with VBA | p. 261 |
Conclusion | p. 262 |
About the CD-ROM | p. 263 |
About the Author | p. 266 |
Index | p. 267 |
Table of Contents provided by Ingram. All Rights Reserved. |
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