👇Download the Excel and PDF👇 ► www.dropbox.com/sh/c2weht172boc2ay/AADQZfoqetc10j3HLIDtIvZEa?dl=0 ⬇Wall Street Prep Courses⬇ ► Use code RARELIQUID for 20% OFF on any course! ► gv142.isrefer.com/go/rliquid/rareliquid/ ⬇Wharton / Wall Street Prep Private Equity Certificate Program⬇ ► Use code RARELIQUID for hundreds of dollars off! ► tinyurl.com/mrxy7s6s 🚀Sign up for my courses🚀 ► How to get into investment banking: forms.gle/wt4cZrezbxVgNzGUA ► How to get into MBA programs: forms.gle/9yEyycuP7NnQBjue8
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~
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.
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?
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
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 :)
So what should we say about the results of this model? I saw a range of implied shared prices for different scenarios at the end, but not sure how should I wrap things up?
personally i think pltr is way too overpriced and unless they accelerate their revenue growth rate to at least 50%, it seems to me they should at absolute max be trading at $30 right now. note though that all of this can change with new info / data that comes out
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?
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 ?
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…
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!
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.
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)?
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
👇Download the Excel and PDF👇
► www.dropbox.com/sh/c2weht172boc2ay/AADQZfoqetc10j3HLIDtIvZEa?dl=0
⬇Wall Street Prep Courses⬇
► Use code RARELIQUID for 20% OFF on any course!
► gv142.isrefer.com/go/rliquid/rareliquid/
⬇Wharton / Wall Street Prep Private Equity Certificate Program⬇
► Use code RARELIQUID for hundreds of dollars off!
► tinyurl.com/mrxy7s6s
🚀Sign up for my courses🚀
► How to get into investment banking: forms.gle/wt4cZrezbxVgNzGUA
► How to get into MBA programs: forms.gle/9yEyycuP7NnQBjue8
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~
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.
Bro, I'm doing this now and I'm happy that I've seen this. Was about to comment that...
same here ahhh thanks bro!
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
⏱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
Thanks Ben. You’re the goat for this. Really making a difference. Can’t wait for your sum of the parts video!
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!
Thank you so much for this!!
Waiting for your advanced topics video
Nice ideas for your valuation series. Hopefully you do sensitivity analysis as well!
thanks for teaching!! Great refresher
I love your model videos they help me out so much, I want more!!! :D
Thanks Ben, so much love from Brazil
31:16 whats the shortcut for copy - pasting the conditional formatting so quickly, please?
Im sure he used F4 to repeat last action
Hey, can you please make a video on building pitchbooks with some sample decks
Thanks Ben
THANK YOU SO MUCH BEN👏
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
Because if you look closely B33:O33 are numbered from 1 to 14 to set the column index number
Yeah, he didn't explain it, but he already numbered that row although its in a faint font color
Thank you so much for the video
Where did you get the information for the database
I think he got it from CapitalIQ. You should have access to it through your University portal
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.
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)
Why Equity value in terms of EBITD is calculated by EBITDA + Debt - Shares?
Making money is not just a science, but also an art. it is 30% science and 70% art. a fellow creator~~~~
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?
same question?
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
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 :)
It's implied share price based on an enterprise value calculation for each of those metrics.
@@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?
Hi, thanks for sharing, very helpful. However, is the Equity Value for net income not just calculated by P/E multiple * Net income? thanks in advance.
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.
can you do a DCF valuation on Twitter?
So what should we say about the results of this model? I saw a range of implied shared prices for different scenarios at the end, but not sure how should I wrap things up?
personally i think pltr is way too overpriced and unless they accelerate their revenue growth rate to at least 50%, it seems to me they should at absolute max be trading at $30 right now. note though that all of this can change with new info / data that comes out
How did you retrieve the data base to excel? Did you use a 3rd party software, or literally 1 by 1
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?
Hi Ben - completely out of context here, but do traders or investment bankers on avg make more money in the U.S.?
How did you find EV, Market Cap, Rev, and etc.? Did you calculate it by yourself or where did you export those data from?
Yeah i was just wondering the same thing. How do you export that much data as a main street
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 ?
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
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…
Can someone please share the Sample Excel file used in this video? It seems that the Dropbox link is broken :/
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!
same question
Yeah 💪🏾💪🏾💪🏾👍🏽
Super
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.
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)?
Hi, i believe you calculated the Equity Value EBITDA wrong!
yeah i agree
too fast. should slow down a bit.
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
Meta DCF man