Insightful

Thanks, very clear

Where do you get the EBITDA Multiple from?

Great video! Thank you so much.

sadboiz

How come sometimes inventory is a liability but sometimes its an asset?

Great video thanks. Just a quick question- why do we reflect -100 as debt item on BS?

C.

Why would we use P/e ratio for equity vs ev/ebitda for whole?

Can you also give us an answer for the last question? That would be very much appreciated.

Hey, do you think this is enough knowledge for interviews at the big four, for an transaction advisory internship? I think it is a lot easier to get one in germany, than in the US, but I would really like to hear your thoughts. But thank you vermy much for the nice explanation. I havent had this topic in university yet

Excellent . Thank you!!!

Cash flow from financing goes down by 50 and on BS equity/ retained earnings go down by 50

Great video. Why didn't you subtract interest as well?

Why consider unsystematic risk in beta?

Surely option #3, 1 and 2 are obviously incorrect and number 4 isn't an LBO candidate because it doesn't even need an LBO. It's just too good, it's like Apple needing an LBO; it just doesn't make sense.

What about the interest payments that you must make when taking out the debt? Is that already included in the $75M?

Have been diligently networking and studying technicals recently and hope to break through for a full-time analyst role in 2025!

Not correct. Enterprise value ist the value of the core operations of a company to all investors.

SBC is usually not cash-tax deductible!

Idk what pe or ib stand for

Bro I never knew the Roblox yapping sound came from the office

Hey Mike, great video. Quick question for you regarding the specific multiple you'd chose for LBO entry valuation. During valuation exercises, you're calcuating the max, min, different quartiles and the median multiples. When we're actually calculating a value for the select business, what multiple should we use? Should it be the median? I am going through PE recruiting and was wondering when given a comps table output for a case study, whether using Median is always the most justifiable? Essentially, how should we be thinking about calculating or identifying the entry / exit multiple?

As you said in the beginning the most common way is to calculate unlevered cfs. What changes would one need to do in case of levered cfs? Subtract intt amount from ebit?

In these type of fake scenarios, will CFO always = the tax shield?

A simple and clear explanation. Thank you.

Ipo

$44M???

c?

Which one should I use in price/free cash flow ratio to value a business?

Unironically how can do get your polo?

Technically we would have had to include interest expense on the $50 debt balance right? We just omitted that to keep things simple?

When it’s trapped

Revs 250 - COGS 100 = 150 gross profit. EBITDA = 150 *X = NI 120? (30 is X = 150 -120) which is 150 *.20.

Is 3.6 GPA good enough?

Correct me if I’m wrong always willing to improve!

To understand total returns rather than returns per period

Answers?

It’s 100$ ie - 50$ ii, so it’s 50$ net debt / 25$ ebitda

Me waking up from my daily work wk. lol 60+. But it’s what we do. Teamsters 👍🏻

How I look after waking up after getting only 1 hour of sleep

Good stuff very useful

Really helpful. Thank you so much !

Sir, Do banks have working capital? How does the concept of Working Capital apply to a bank? Is the Liquidity Coverage Ratio (LCR) the same as Current Ratio/Working Capital Ratio? It is difficult to calculate the working capital of a bank because a bank's balance sheet does not include typical current assets and liabilities.

But what about liabilities like short term liabilities like loan repayments etc.

1. Calculate the return of your investment using IRR 50*1,15^5= 100 2. Subtract your return from the new EV to get the debt after five years 120-100=20 3. Subtract the debt afterthe LBO from the debt before the LBO to get your cashflow 50-20=30 4. The company produced 30$ of cashflow to reduce the debt from 50$ to 20$.

Well, first you’d have to take account for all the bullshit, only then can you…………

120/1.15^5=64.14 , 14.14

120/1.15^5=64.14 , 14.14

$19.8 cashflow