| |
Program |
Video guide |
Description |
| Corporate Finance |
|
|
This program allows you to do a basic capital budgeting analysis for a project, and compute NPV, IRR and ROI. |
|
|
|
This program allows you to use past returns on a stock and a market index to analyse its price performance (Jensen's Alpha), its sensitivity to market movements (Beta) and the proportion of its risk that can be attributed to the market. |
| riskchecker.xls |
|
This spreadsheet allows you to check your computations of Jensen's alpha, range on beta and expected return, given the output from a return regression (risk.xls above). |
|
|
|
This program allows you to enter the current beta, tax rate and the debt equity ratio for your stock, and obtain a table of betas at different debt ratios. |
|
|
|
This program allows you to estimate a rating and a cost of debt for your company from the firm's interext coverage ratio. |
|
|
|
This program allows you to estimate an "Optimal" Capital Structure for a company using the Adjusted Present Value Approach. |
|
|
Video
Presentation |
This program allows you to estimate an "Optimal" Capital structure for a company using the cost of capital approach. |
|
|
|
This is a variant that allows you to estimate an "Optimal" capital structure for a company whose operating income might vary with its debt rating - for instance, financial service firms. |
|
|
|
This program allows you to estimate the duration of a firm's assets and its sensitivity to other macro economic variables. It may be useful in the design of debt. |
|
|
|
This program compares the dividends paid to what a firm could have paid, by estimating the free cash flow to equity (the cash flow left over after net debt payments, net capital expenditures and working capital investments. |
|
|
|
This program computes the value of equity in a firm using a two-stage dividend discount and FCFE model. (For more extensive choices on valuation, look at the programs under the valuation section below.) |
Valuation:
Inputs |
|
|
This file describes the programs in this section and provides some insights into their usage. |
| impliedROC&ROE.xls |
|
This spreadsheet allows you to compute the ROC or ROE implied in your terminal value calculation. |
| wacccalc.xls |
|
This spreadsheet allows you to estimate the cost of capital for your firm. |
|
|
|
This program summarizes the three approaches that can be used to estimate the net capital expenditures for a firm, when it reaches stable growth. |
|
|
|
This program converts operating lease expenses into financing expenses and restates operating income and debt outstanding. |
|
|
|
This program converts R& D expenses from operating to capital expenses, estimates a value for the research asset and restates operating income. |
|
|
|
This spreadsheet calculates the implied risk premium in a market. This can be used in discounted cashflow valuation to do market neutral valuation. |
| Valuation Model Reconciliation |
fcfevsddm.xls |
|
This spreadsheet allows you to reconcile the differences between the FCFE and the dividend discount models for estimating equity value. |
| fcffvsfcfe.xls |
|
This spreadsheet allows you to reconcile the differences between the FCFF and the FCFE approaches to valuation. |
| fcffeva.xls |
|
This spreadsheet reconciles a cost of capital DCF valuation with an EVA valuation of the same company |
| GrossvsNet.xls |
|
This spreadsheet allows you to reconcile the differences between the Gross debt and Net debt approaches to valuation. |
| All-in-one Valuation Models |
|
|
This program provides a rough guide to which discounted cash flow model may be best suited to your firm. |
|
|
|
This spreadsheet can be used to value tough-to-value firms, with negative earnings, high growth in revenues and few comparables. If you have a dot.com firm, this is your best choice. |
|
|
|
A complete dividend discount model that can do stable growth, 2-stage or 3-stage valuation. This is your best choice if you are analyzing financial service firms. |
| fcfeginzu.xls |
|
A complete FCFE valuation model that allows you to capital R&D and deal with options in the context of a valuation model. |
|
|
Video
Presentation |
This model tries to do it all, with all of the associated risks and rewards. I hate having to work with a dozen spreadsheets to value a firm, and I have tried to put them all into one spreadsheet - a ratings estimator, an earnings normalizer, an R&D converter, an operating lease converter, a bottom-up beta estimator and industry averages. Try it out and make your own additions. |
| Loose Ends in Valuation |
|
|
This model analyzes the value of control in a firm. |
|
|
|
This program estimates the value of synergy in a merger. |
|
|
|
This spreadsheet provides different ways of estimating the value of a brand name, although each comes with some baggage. |
|
|
|
This spreadsheet allows you to measure the complexity in a company and give it a score. |
| GrossvsNet.xls |
|
This spreadsheet allows you to understand why the gross and net debt approaches give you different estimates of value for a firm. |
| liqdisc.xls |
|
Estimates the illiquidity discount that should be applied to a private firm as a function of the firm's size and financial health. Uses both restricted stock approach and bid-ask spread regression. |
|
|
|
This spreadsheet allows you to estimate the probability of distress from the bond price of a company. |
| Focused Valuation Models |
|
|
Stable growth, dividend discount model; best suited for firms growing at the same rate as the economy and paying residual cash as dividends. |
|
|
Two-stage DDM; best suited for firms paying residual cash in dividends while having moderate growth. |
|
|
Three-stage DDM; best suited for firms paying residual cash in dividends, while having high growth. |
|
|
|
Stable growth, FCFE discount model; best suited for firms in stable leverage and growing at the same rate as the economy. |
|
|
Two-stage FCFE discount model; best suited for firms with stable leverage and having moderate growth. |
|
|
Three-stage FCFE discount model; best suited for firms with stable leverage and having high growth. |
|
|
|
Stable growth FCFF discount model; best suited for firms growing at the same rate as the economy. |
|
|
Two-stage FCFF discount model; best suited for firms with shifting leverage and growing at a moderate rate. |
|
|
Three-stage FCFF discount model; best suited for firms with shifting leverage and high growth. |
|
|
|
Three-stage FCFF valuation model, also presented in terms of projected EVA. |
|
|
|
A generalised FCFF model, where the operating margins are allowed to change each year; best suited for firms in transition. |
| Financial Service firms |
eqexret.xls |
|
Estimates the value of equity in a bank by discounting expected excess returns to equity investors over time and adding them to book value of equity. |
| Troubled firms |
normearn.xls |
|
Normalizes the earnings for a troubled firm, uising historical or industry averages. |
| distress.xls |
|
Estimates the likelihood that a troubled firm will not survive, based upon bond ratings as well as bond prices. |
| fcffneg.xls |
|
Generalized FCFF model that allows you to value negative earnings firms as going concerns. |
| Private firms |
pvtdiscrate.xls |
|
Adjusts the discount rate (cost of equity) for a private firm to reflect the lack of diversification on the part of the owner (or potential buyer) |
| minoritydiscount.xls |
|
Estimates the discount for a minority stake in a private business, based on the value of control. |
| liqdisc.xls |
|
Estimates the illiquidity discount that should be applied to a private firm as a function of the firm's size and financial health. Uses both restricted stock approach and bid-ask spread regression. |
| High Growth Firms |
revgrowth.xls |
|
Estimates compounded revenue growth rate for a firm, based upon market share and market size assumptions. |
| higrowth.xls |
|
This spreadsheet can be used to value tough-to-value firms, with negative earnings, high growth in revenues and few comparables. If you have a young or start-up firm, this is your best choice. |
| Multiples |
|
|
This is a model that uses a two-stage dividend discount model to estimate the appropriate equity multiples for your firm. It will give you identical answers (in terms of value) as the 2-stage DDM model. |
|
|
|
This model uses a 2-stage FCFF model to estimate the appropriate firm value multiples for your firm. It will give you identical answers (in terms of value) as the 2-stage FCFF model. |
| Acquisitions |
|
|
This program analyzes the value of equity and the firm in a leveraged buyout. |
|
|
|
This model analyzes the value of control in a firm. |
|
|
|
This program estimates the value of synergy in a merger. |
| Other Assets |
reval.xls |
|
This spreadsheet allows you to value an income-generating property as well as just the equity stake in the property. |
| Value Enhancement |
valenh.xls |
|
This spreadsheet allows you to make a quick (and dirty) estimate of the effect of restructuring a firm in a discounted cashflow framework. |
| fcffeva.xls |
|
This spreadsheet shows the equivalence of the DCF and EVA approaches to valuation. |
|
|
|
This spreadsheet allows you to estimate the current CFROI for a firm. |
| Basic Option Pricing Models |
bstobin.xls |
|
This spreadsheet converts the standard deviation input in the Black-Scholes model to up and down movemenents in the binomial tree. |
|
|
|
This is a dividend-adjusted model for valuing short-term options. It considers the present value of expected dividends during the option life. |
|
|
|
Tnis is a dividend-adjusted model for valuing long term options. It considers the expected dividend yield on the underlying asset. |
|
|
|
This is a model for valuing options that result in dilution of the underlying stock. Consequently, it is useful in valuing warrants and management options. |
| Real Option Models in Corporate Finance |
|
|
This model estimates the value of the option to expand in an investment project. Modified, it can also be used to assess the value of strategic options. |
|
|
|
This model estimates the value of the option to delay an investment project. |
|
|
|
This model estimates the value of financial flexibility, i.e, the maintenance of excess debt capacity or back-up financing. |
|
|
|
This model estimates the value of the option to abandon a project or investment. |
| Real Option Models in Valuation |
|
|
A model that uses option pricing to value the equity in a firm; best suited for highly levered firms in trouble. |
|
|
|
A model that uses option pricing to value a natural resource company; useful for valuing oil or mining companies. |
|
|
|
A model that uses option pricing to value a product patent or option; useful for valuing the patents that a company might hold. |