Trading Comps Valuation Tutorial From Former JP Morgan Investment Banker! (Excel Template Included)

[@rareliquid]

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[@rareliquid]

Audio isn't the best and I'm working on fixing it! Currently moving into my new place and haven't soundproofed my apartment yet. Please bear with me for the time being and it'll get better over the coming weeks~

[@anubhavonyt]

Hey @rareliquid 39:48 you just drag and dropped the cell to its right and down and that's why the answers came out wrong. Actually we have to add CASH to the EBIDTA and subtract DEBT. But because you dragged the cell, it actually performed EBITDA + DEBT - SHARES. I was actually solving this sheet right now and as I cross checked to your sheet, I found it. All else are fine. And lastly thank you for this amazing video as always.

[@IbrahimKarakeci]

Bro, I'm doing this now and I'm happy that I've seen this. Was about to comment that...

[@hanwang1669]

Thanks so much I’m going to have a few interview in the next couple weeks and I can’t appreciate how timely and helpful your videos are

[@rareliquid]

⏱Timestamps⏱ 0:00 - Introduction 0:42 - Agenda 1:05 - Wall Street Prep 3:20 - Key Accounting Concepts 9:44 - What are Trading Comps? 12:35 - The 5 Steps 13:00 - Step 1 - Create a Set of Similar Peers 17:50 - Step 2 - Gather the Relevant Financial Information 28:35 - Step 3 - Compare the Financial Figures 34:19 - Step 4 - Determine your Company's Implied Valuation 41:40 - Step 5 - Calculate Implied Share Price 43:52 - Advanced Topics

[@loopje]

Thanks Ben. You’re the goat for this. Really making a difference. Can’t wait for your sum of the parts video!

[@viktorkhan8518]

Thank you so much for the great in-depth video. You even included the pdf and the excel. This is really great. Really appreciate it, man!

[@Talib_Husain18]

Hey, can you please make a video on building pitchbooks with some sample decks

[@moonshinemagic1771]

Nice ideas for your valuation series. Hopefully you do sensitivity analysis as well!

[@rim1687]

Thank you so much for this!! Waiting for your advanced topics video

[@clarencecheong906]

thanks for teaching!! Great refresher

[@riccardocattaneo5518]

can u make a full video explaining clearly and in a slow the shortcuts needed to build a dcf. Focusing only on excel (not finance)

[@bendht999]

Why you have 3 different solutions for implied share price at the end (Revenue, EBITDA, Net Income)? I thought the implied share price is just a number.. Hope to get an answer bro :)

[@jacobiwashyna2975]

It's implied share price based on an enterprise value calculation for each of those metrics.

[@huixinshen8613]

@@jacobiwashyna2975 So we'd go from there choosing the price that came from the metric that we think is the most reasonable for the given company?

[@TrashPanda.Garage]

I love your model videos they help me out so much, I want more!!! :D

[@senaritra01]

Why Equity value in terms of EBITD is calculated by EBITDA + Debt - Shares?

[@TLiu-1b]

Thanks Ben

[@gabrielalves831]

Thanks Ben, so much love from Brazil

[@tanyasingh3118]

Thank you so much for the video

[@philliphochman1654]

I could have heard this wrong, so correct me if so. But I wrote down, "Take Nvidia, high growth, high margins, and low trading multiples as you would expect. Investors have to pay a premium for their business because margins and financials are so strong." Doesn't Nvidia have very high trading multiples? Therefore, Nvidia is "normal" or it's as expected?

[@AAA11546]

31:16 whats the shortcut for copy - pasting the conditional formatting so quickly, please?

[@WasteSecond]

Im sure he used F4 to repeat last action

[@alanmurrell6620]

For the historical EV/Revenue or EV/EBITDA, etc. ratios, should you not actually calculate the EV for each of those years and calculate the ratios that way rather than using current EV?

[@1rasha]

same question?

[@xtxp5868]

to be fair, he didn't use the 22 values at all, I think they were just there for comparison purposes if you wanna decide to take out any companies, but yea I agree, you should calculate the actual EV each year

[@1rasha]

What was the interpretation at the end of the implied share price?? As an investor, how to use it and make the investment decision. It was not clear.

[@aaronlazarus3828]

THANK YOU SO MUCH BEN👏

[@TheUriya]

How did you retrieve the data base to excel? Did you use a 3rd party software, or literally 1 by 1

[@Isaac_601]

Thank you for the video this was extremely helpful. Will you eventually be doing a DCF with different probable scenarios ? Something like a normal bearish and bull scenario ?

[@gordon-cs7yp]

Why don't you consider market saturation/market share? I mean just as an example if a company has 80% market share (like Google does) they won't be able to grow 30%, right? (Because then they'd be over 100% in market share) I don't mean in this model especially but rather in a general perspective. I find it interesting to think about it while watching you doing the models…

[@narutokun616]

Hi Ben - completely out of context here, but do traders or investment bankers on avg make more money in the U.S.?

[@peloterospere3436]

brother you are great the only thing I'd say. it's you need to go slower. Not everyone is gamer like you. other than that you're a top G.

[@vimalbhati4253]

Why we need min, max, mean , and median , don't you think its more confusing, instead of all that we can use mean and median to get the result. Just my suggestion.

[@lilottovert1787]

Is it true it’s a numbers game? I’ve been getting rejected with a lot of my applications thus far. Still pushing though. Great video btw

[@yasinnabi]

Making money is not just a science, but also an art. it is 30% science and 70% art. a fellow creator~~~~

[@AAA11546]

20:43 might be a stupid question but why are you using C33 for the column index number? I tried C34 or C32 but it didnt work. Thanks

[@anubhavonyt]

Because if you look closely B33:O33 are numbered from 1 to 14 to set the column index number

[@chiomaesther_]

Yeah, he didn't explain it, but he already numbered that row although its in a faint font color

[@tharitchaichintawachanon3139]

How did you find EV, Market Cap, Rev, and etc.? Did you calculate it by yourself or where did you export those data from?

[@Ryan-bw6xq]

Yeah i was just wondering the same thing. How do you export that much data as a main street

[@llamar984]

Hi, i believe you calculated the Equity Value EBITDA wrong!

[@RajvirSingh-o2f]

yeah i agree

[@cyberlec6877]

can you do a DCF valuation on Twitter?

[@nishadseeraj7034]

Hey Ben great video...really like your stuff! Question: So lets say the company you are valuing just released their latest quarterly results (for example say Q3 2022). If one or more of its peers have not reached the same period (lets say 3 out of the 8 peers only have up till Q2 2022) what will be the best course to compare peers at different times? Will it be the case such that once they are in the same fiscal year it should be okay? Or should some forecasting be used to bring all companies to the same period. Thanks!

[@christinejohansson8405]

same question

[@philliphochman1654]

Also, why are you saying FB has strong growth? 5% is way below 10% 2022 rev growth mean, and 14% is only 1% higher than 13% 2023 mean. Isn't this weak growth (or medium low at best)?

[@grundbusiness8826]

Yeah 💪🏾💪🏾💪🏾👍🏽

[@jasonding8459]

Can someone please share the Sample Excel file used in this video? It seems that the Dropbox link is broken :/

[@sonerguney3225]

Super

[@jqx7743]

too fast. should slow down a bit.

[@darrelldas1962]

I will never watch your video anymore. I req you to make only one video on IB presentation but you neglected that. The people who like you, you hate them

[@Kidpambi]

Meta DCF man