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Program
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| Valuation: Inputs |
This file describes the programs in this section and provides some insights into their usage. | |
| This spreadsheet calculates the implied risk premium in a market. This can be used in discounted cashflow valuation to do market neutral valuation. | ||
| 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. | ||
| 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. | |
| 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. | ||
| 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) |
| 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 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 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. | ||
| 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. |