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Goldman SachsA company has $100 of EBITDA and trades at 10× EV/EBITDA. If EBITDA falls by 10% and the multiple stays the same, what happens to EV and equity value assuming net debt is unchanged at $400?
GuggenheimHow do you get from EBITDA to unlevered FCF?
EvercoreA company announces it is switching from FIFO to LIFO inventory accounting in a rising price environment. What happens to its valuation?
PJTWhen would public comps give you a higher valuation output than precedent transactions?
LionTreeHow would you value a high-growth media company with negative earnings?
Allen & CoCompany A has $500M EBITDA, $80M D&A, $200M debt, $900M cash, 100M shares, and trades at 12× EV/EBITDA. Company B has $220M EBITDA, $40M D&A, $300M debt, $20M cash, 60M shares, and trades at 9× EV/EBITDA. Tax rate is 30% for both. Company A buys Company B at a 25% premium funded with 40% cash, 30% new debt, and 30% stock. Is the deal accretive or dilutive, and by how much?
CenterviewA company has 100 shares outstanding, 60 floating publicly and 40 privately. Market price is 5, book value is 1. What is the total equity value?
Goldman SachsA company has $100 of EBITDA and trades at 10× EV/EBITDA. If EBITDA falls by 10% and the multiple stays the same, what happens to EV and equity value assuming net debt is unchanged at $400?
GuggenheimHow do you get from EBITDA to unlevered FCF?
EvercoreA company announces it is switching from FIFO to LIFO inventory accounting in a rising price environment. What happens to its valuation?
PJTWhen would public comps give you a higher valuation output than precedent transactions?
LionTreeHow would you value a high-growth media company with negative earnings?
Allen & CoCompany A has $500M EBITDA, $80M D&A, $200M debt, $900M cash, 100M shares, and trades at 12× EV/EBITDA. Company B has $220M EBITDA, $40M D&A, $300M debt, $20M cash, 60M shares, and trades at 9× EV/EBITDA. Tax rate is 30% for both. Company A buys Company B at a 25% premium funded with 40% cash, 30% new debt, and 30% stock. Is the deal accretive or dilutive, and by how much?
CenterviewA company has 100 shares outstanding, 60 floating publicly and 40 privately. Market price is 5, book value is 1. What is the total equity value?
MoelisYou're in a meeting with senior bankers and a client. The client asks a technical question and the senior associate struggles to answer. You know the correct response but you're the most junior person in the room. How would you handle it?
MoelisWhy does increased leverage increase beta?
EvercoreWhat happens to EV if deferred revenue increases?
MoelisYou are analyzing a firm with a D/E ratio of 1×. The unlevered beta for its industry is 0.80. The risk-free rate is 5%, the equity risk premium is 5%, and the pre-tax cost of debt is 8%. What is your WACC assuming a 25% tax rate?
EvercoreWould you rather have higher lease expenses or depreciation expenses?
MoelisA firm generates $25M of FCF per year in perpetuity. WACC is 10%. The firm has $50M of excess cash and $100M of debt. There are 5M shares outstanding. What is the share price?
LazardCompany A has $400 of net income and trades at a 20× P/E. Company B has $100 of net income and trades at a 10× P/E. Company A acquires Company B in a 100% stock deal. Company B shareholders own 20% of the combined company after the deal, and the transaction is exactly 10% accretive to Company A's EPS after synergies. What are the required after-tax synergies and what premium did Company A pay?
MoelisYou're in a meeting with senior bankers and a client. The client asks a technical question and the senior associate struggles to answer. You know the correct response but you're the most junior person in the room. How would you handle it?
MoelisWhy does increased leverage increase beta?
EvercoreWhat happens to EV if deferred revenue increases?
MoelisYou are analyzing a firm with a D/E ratio of 1×. The unlevered beta for its industry is 0.80. The risk-free rate is 5%, the equity risk premium is 5%, and the pre-tax cost of debt is 8%. What is your WACC assuming a 25% tax rate?
EvercoreWould you rather have higher lease expenses or depreciation expenses?
MoelisA firm generates $25M of FCF per year in perpetuity. WACC is 10%. The firm has $50M of excess cash and $100M of debt. There are 5M shares outstanding. What is the share price?
LazardCompany A has $400 of net income and trades at a 20× P/E. Company B has $100 of net income and trades at a 10× P/E. Company A acquires Company B in a 100% stock deal. Company B shareholders own 20% of the combined company after the deal, and the transaction is exactly 10% accretive to Company A's EPS after synergies. What are the required after-tax synergies and what premium did Company A pay?