Brian DeChesare

MAY 3, 2023

Even if you pick the right company, though, the DDM is more difficult to set up and use than a standard DCF because it requires more assumptions and knowledge of the company’s capital structure. Dividend Discount Model, Part 3: Capital Structure Projections You don’t want to “rock the boat” too much with Cash and Debt in this model.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

SEPTEMBER 13, 2023

Its financial profile now looks like this: Its Debt / EBITDA is now 10x, its EBITDA / Interest has fallen below 1x, the Secured Debt is trading at 90% of its face value, and the Unsecured Debt is down to 60%. A few years later, the company’s industry declined, and it was slow to cut costs and enter new markets.

Equity 103

Equity Banking EBITDA Start-ups 103

Valutico

OCTOBER 20, 2022

Practitioners assume the business is sold as a multiple of some financial metric like EBITDA, based on what they can see today for other businesses that were sold, and what these comparable trading multiples are. . B = Beta. (Rm EV/EBITDA Multiple. Exit Multiple (EV/EBITDA). Ce = Cost of Equity. Rf = Risk-free Rate.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Brian DeChesare

AUGUST 10, 2022

If Midstream companies want to grow beyond the fee increases written into their contracts and possible volume growth, they need to spend on Growth CapEx and estimate the incremental EBITDA from that spending: Further adding to the complexity is the GP (General Partner) / LP (Limited Partner) structure used at most MLPs.

Banking 98

Banking EBITDA Dividends Equity 98

Brian DeChesare

MAY 24, 2023

EBITDA multiple , matching its own. EBITDA since it’s only growing at 2-3% per year vs. 5-10% per year for Jacobs. Capital Structure Trades – Or you could focus on Jacobs’ ~$4 billion in debt and long or short some of their bonds (or use credit default swaps) if you believe its credit rating will change once the deal takes place.

Equity 64

Equity Start-ups EBITDA Banking 64

Musings on Markets

FEBRUARY 27, 2023

One simplistic proxy for this cash generating capacity is EBITDA as a percent of enterprise value (EV), with higher (lower) values indicating greater (lesser) cash flow generating capacity. Debt to EBITDA, Interest Coverage Ratios If debt to capital is not a good measure for judging over or under leverage, what is?

Equity 52

Equity EBITDA Start-ups Net Debt 52