Brian DeChesare

OCTOBER 30, 2024

Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. What Are Corporate Finance Jobs? not banks or investment firms).

Corporate Finance 105

Corporate Finance Finance Treasury Banking 105

Reynolds Holding

APRIL 25, 2023

In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. We can broadly classify firms’ corporate behaviors into two categories: growth and value firms. Growth firms will issue equity to pay for acquisitions; value firms won’t.

Net Present Value 45

Net Present Value Corporate Finance Finance Equity 45

Reynolds Holding

APRIL 17, 2022

Managers who anticipate these agency problems won’t invest in a moonshot even if they believe it has a positive net present value. But managers can’t properly motivate the employees by rewarding them with the company’s stock, because its price wouldn’t track the value of the moonshot alone.

Technology 85

Technology Net Present Value Finance Equity 85

Valutico

FEBRUARY 27, 2024

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. The Discounted Cash Flow (DCF) method uses the discount rate to consider all future cash flows of a business when calculating its current value.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Valutico

OCTOBER 20, 2022

This value is widely referred to as the “Net Present Value” (NPV). . which produces a Net Present Value of the Terminal Value of: $74 million. . So the Terminal Value here is three times as large! Ce = Cost of Equity. Rm – Rf) = Equity Market Risk Premium. B = Beta.

Discounted Cash Flow 52

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

Class VI Partner

JULY 28, 2021

You may hear Asset Value used in place of Book Value, but this is not precisely correct because Book Value includes not only Asset Value, but also subtracts the value of liabilities of a company. It is typically the highest risk/highest potential return portion of a company’s capital structure.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Valutico

MAY 6, 2024

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52