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Corporate Finance |
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This program allows you to do a basic
capital budgeting analysis for a project, and compute NPV, IRR and
ROI. |
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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. |
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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. |
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This program allows you to estimate a
rating and a cost of debt for your company from the firm's interext
coverage ratio. |
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This program allows you to estimate an
"Optimal" Capital Structure for a company using the Adjusted Present
Value Approach. |
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This program allows you to estimate an
"Optimal" Capital structure for a company using the cost of capital
approach. |
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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. |
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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. |
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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. |
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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 |
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This file describes the programs in this
section and provides some insights into their usage. |
|
wacccalc.xls |
This spreadsheet allows you to estimate the
cost of capital for your firm. |
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This program summarizes the three
approaches that can be used to estimate the net capital expenditures
for a firm, when it reaches stable growth. |
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This program converts operating lease
expenses into financing expenses and restates operating income and
debt outstanding. |
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This program converts R& D expenses from
operating to capital expenses, estimates a value for the research
asset and restates operating income. |
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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
|
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GrossvsNet.xls |
This spreadsheet allows you to reconcile
the differences between the Gross debt and Net debt approaches to
valuation. |
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All-in-one Valuation Models |
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This program provides a rough guide to
which discounted cash flow model may be best suited to your firm. |
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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. |
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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. |
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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. |
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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 |
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This model analyzes the value of control in
a firm. |
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This program estimates the value of synergy
in a merger. |
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This spreadsheet provides different ways of
estimating the value of a brand name, although each comes with some
baggage. |
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This spreadsheet allows you to measure the
complexity in a company and give it a score. |
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GrossvsNet.xls |
This spreadsheet allows you to understand
why the gross and net debt approaches give you different estimates of
value for a firm. |
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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. |
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This spreadsheet allows you to estimate the
probability of distress from the bond price of a company.
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Focused Valuation Models |
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Stable growth, dividend discount model;
best suited for firms growing at the same rate as the economy and
paying residual cash as dividends. |
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Two-stage DDM; best suited for firms paying
residual cash in dividends while having moderate growth. |
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Three-stage DDM; best suited for firms
paying residual cash in dividends, while having high growth. |
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Stable growth, FCFE discount model; best
suited for firms in stable leverage and growing at the same rate as
the economy. |
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Two-stage FCFE discount model; best suited
for firms with stable leverage and having moderate growth. |
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Three-stage FCFE discount model; best
suited for firms with stable leverage and having high growth. |
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Stable growth FCFF discount model; best
suited for firms growing at the same rate as the economy. |
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Two-stage FCFF discount model; best suited
for firms with shifting leverage and growing at a moderate rate. |
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Three-stage FCFF discount model; best
suited for firms with shifting leverage and high growth. |
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Three-stage FCFF valuation model, also
presented in terms of projected EVA. |
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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) |
|
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 |
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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. |
|
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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 |
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This program analyzes the value of equity
and the firm in a leveraged buyout. |
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This model analyzes the value of control in
a firm. |
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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. |
|
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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. |
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This is a dividend-adjusted model for
valuing short-term options. It considers the present value of
expected dividends during the option life. |
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Tnis is a dividend-adjusted model for
valuing long term options. It considers the expected dividend yield
on the underlying asset. |
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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 |
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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. |
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This model estimates the value of the
option to delay an investment project. |
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This model estimates the value of financial
flexibility, i.e, the maintenance of excess debt capacity or back-up
financing. |
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This model estimates the value of the
option to abandon a project or investment. |
| Real
Option Models in Valuation |
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A model that uses option pricing to value
the equity in a firm; best suited for highly levered firms in
trouble. |
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A model that uses option pricing to value a
natural resource company; useful for valuing oil or mining companies. |
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A model that uses option pricing to value a
product patent or option; useful for valuing the patents that a
company might hold. |
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