Program Video guide Description

Corporate Finance Capital Budgeting This spreadsheet allows you to do a basic capital budgeting analysis for a project, and compute NPV, IRR and ROI.

Estimate a beta This spreadsheet allows you to input 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.

Regression Analyzer Webcast This spreadsheet allows you to check your computations of Jensen's alpha, range on beta and expected return, given the output from a return regression (risk.xls above).

Lever & unlever betas This spreadsheet 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.

Convert operating leases to debt Webcast This spreadsheet allows you to convert lease commitments to debt.

Estimate a synthetic rating & cost of debt This spreadsheet allows you to estimate a rating and a cost of debt for your company from the firm's interext coverage ratio.

Adjusted Present Value (for optimizing debt) This model allows you to estimate an "optimal" Capital Structure for a company using the Adjusted Present Value Approach.

Optimum Capital Structure (Cost of capital approach) This model allows you to estimate an "optimal" Capital structure for a company using the cost of capital approach. An option in the model also allows you to build in indirect bankruptcy cost by letting your operating income vary with your bond rating.

Calculate accounting returns (ROE, ROIC) Webcast The return on invested capital and return on equity are accounting measures but useful measures, nevertheless, of the quality of existing projects.

Design debt (by looking at sensitivity to macro variables) This model 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.

Estimate potential dividends & compare to actual dividends This model 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.

Evaluate the effect of a buyback on EPS and value This model allows you to assess how a buyback will affect earnings per share and make judgments on its consequences for overall value and value per share.

Corporate finance & Valuation:

Inputs readme1s.xls This file describes the programs in this section and provides some insights into their usage.

impliedROC&ROE.xls This spreadsheet allows you to compute the ROC or ROE implied in your terminal value calculation.

wacccalc.xls This spreadsheet allows you to estimate the cost of capital for your firm.

cpxest.xls This model summarizes the three approaches that can be used to estimate the net capital expenditures for a firm, when it reaches stable growth.

oplease.xls Webcast This model converts operating lease expenses into financing expenses and restates operating income and debt outstanding.

R&DConv.xls Webcast This model converts R& D expenses from operating to capital expenses, estimates a value for the research asset and restates operating income.

implprem.xls 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

GrossvsNet.xls This spreadsheet allows you to reconcile the differences between the Gross debt and Net debt approaches to valuation.

All-in-one Valuation Models model.xls This model provides a rough guide to which discounted cash flow model may be best suited to your firm.

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 dot.com firm, this is your best choice.

divginzu.xls 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.

growthbreakdown.xls A model to value the premium you should pay for growth in either an intrinsic valuation or a relative valuation.

fcffsimpleginzu.xlsx Webcast Slides

A complete FCFF model that allows for changing margins and has default assumptions built in (to protect you from inconsistent assumptions). If you want a quick, all-in-one model to value a company with relatively few inputs, try this.

fcffsimpleginzuCorona.xlsx Webcast

This is the simple valuation spreadsheet, tweaked in the middle of the COVID crisis, to reflect updated equity risk premiums and a provision to input the effects of the crisis on near-term earnings and margins.

fcffginzu.xls Video Presentation 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.

fcffginzulambda.xls This model allows the user to enter a measure of company exposure to country risk (that is different from beta) in a FCFF valuation model. It does not have many of the bells and whistles of teh fcffginzu model.

Loose Ends in Valuation controlvalue.xls This model analyzes the value of control in a firm.

synergyvaluation.xls This model estimates the value of synergy in a merger.

brandnamevalue.xls This spreadsheet provides different ways of estimating the value of a brand name, although each comes with some baggage.

complscore.xls This spreadsheet allows you to measure the complexity in a company and give it a score.

employeeoption.xls This spreadsheet allows you to value employee options and incorporate them into value.

GrossvsNet.xls This spreadsheet allows you to understand why the gross and net debt approaches give you different estimates of value for a firm.

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.

distress.xls This spreadsheet allows you to estimate the probability of distress from the bond price of a company.

Focused Valuation Models ddmst.xls Stable growth, dividend discount model; best suited for firms growing at the same rate as the economy and paying residual cash as dividends.

ddm2st.xls Two-stage DDM; best suited for firms paying residual cash in dividends while having moderate growth.

ddm3st.xls Three-stage DDM; best suited for firms paying residual cash in dividends, while having high growth.

fcfest.xls Stable growth, FCFE discount model; best suited for firms in stable leverage and growing at the same rate as the economy.

fcfe2st.xls Two-stage FCFE discount model; best suited for firms with stable leverage and having moderate growth.

fcfe3st.xls Three-stage FCFE discount model; best suited for firms with stable leverage and having high growth.

fcffst.xls Stable growth FCFF discount model; best suited for firms growing at the same rate as the economy.

fcff2st.xls Two-stage FCFF discount model; best suited for firms with shifting leverage and growing at a moderate rate.

fcff3st.xls Three-stage FCFF discount model; best suited for firms with shifting leverage and high growth.

evavaln.xls Three-stage FCFF valuation model, also presented in terms of projected EVA.

fcffgen.xls 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)

minoritydiscount.xls Estimates the discount for a minority stake in a private business, based on the value of control.

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 eqmult.xls 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.

firmmult.xls 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 lboval.xls This model analyzes the value of equity and the firm in a leveraged buyout.

controlvalue.xls This model analyzes the value of control in a firm.

synergyvaluation.xls This model 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.

cfroi.xls 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.

optst.xls This is a dividend-adjusted model for valuing short-term options. It considers the present value of expected dividends during the option life.

optlt.xls Tnis is a dividend-adjusted model for valuing long term options. It considers the expected dividend yield on the underlying asset.

warrant.xls 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 expand.xls 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.

delay.xls This model estimates the value of the option to delay an investment project.

flexval.xls This model estimates the value of financial flexibility, i.e, the maintenance of excess debt capacity or back-up financing.

abandon.xls This model estimates the value of the option to abandon a project or investment.

Real Option Models in Valuation equity.xls A model that uses option pricing to value the equity in a firm; best suited for highly levered firms in trouble.

natres.xls A model that uses option pricing to value a natural resource company; useful for valuing oil or mining companies.