| Description |
1 online resource (xxiii, 600 pages) : illustrations (some color) |
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data file |
| Note |
Includes index. |
| Contents |
Machine generated contents note: ch. 1 Financial Modeling and Valuation Nightmares: Problems That Financial Models Cannot Solve -- ch. 2 Becoming a Black Belt Modeler -- ch. 3 General Model Objectives of Structuring Transactions, Risk Analysis, and Valuation -- ch. 4 The Structure of Alternative Financial Models -- Structure of a Corporate Model: Incorporating History and Deriving Forecasts from Historical Analysis -- Use of the INDEX Function in Corporate Models -- Easing the Pain of Acquiring PDF Data -- Structure of a Project Finance Model That Accounts for Different Risks in Different Phases over the Life of a Project -- Reconciliation of Internal Rate of Return in Project Finance with Return on Investment in Corporate Finance -- Structure of an Acquisition Model: Alternative Transaction Prices and Financing Terms -- Structure of an Integrated Merger Model: Forecasting Earnings per Share -- ch. 5 Avoiding Bad Programming Practices and Creating Effective Auditing Processes -- How to Make Financial Models More Efficient and Accurate -- ch. 6 Developing and Efficiently Organizing Assumptions -- Assumptions in Demand-Driven Models versus Supply-Driven Models: The Danger of Overcapacity in an Industry -- Creating a Flexible Input Structure for Model Assumptions -- Alternative Input Structures for Project Finance and Corporate Finance Models -- Setting Up Inputs with Code Numbers and the INDEX Function -- ch. 7 Structuring Time Lines -- Timing in Corporate Finance Models: Distinguishing the Historical Period, Explicit Period, and Terminal Period -- Development to Decommissioning: Phases in the Life of a Project Finance Model -- Timing in Acquisition Models: Separating the Transaction Period, the Holding Period, and the Exit Period -- Structuring a Time Line to Measure History, Explicit Periods, and Terminal Periods in Corporate Models and Risk Phases in Project Finance Models -- Computing Start of Period and End of Period Dates -- TRUE and FALSE Switches in Modeling Time Periods -- Computing the Age of a Project in Years on a Monthly, Quarterly, or Semiannual Basis -- The Magic of a HISTORIC Switch in a Corporate Model -- Transferring Data from a Corporate Model to an Acquisition Model Using MATCH and INDEX Functions -- ch. 8 Projecting Revenues, Expenses, and Capital Expenditures to Derive Pretax Cash Flow -- Transparent Calculations of Pretax Cash Flow -- Inflation and Growth Rates in Calculations of Pretax Cash Flow -- Valuation Analysis from Prefinancing, Pretax Cash Flow -- ch. 9 Moving from Pretax Cash Flow to After-Tax Free Cash Flow -- Working Capital Analysis -- Problems in Computing Depreciation Expense in Corporate Models Involving Asset Retirements -- Portfolios of Assets with a Vintage Process -- Accounting for Asset Retirements in Corporate Models -- Alternative Methods for Deriving Retirements Associated with Existing Assets in Corporate Models -- Depreciation Issues in Project Finance Models -- Modeling the Change in Deferred Taxes in Corporate Models -- Adjusting the Tax Basis in an Acquisition -- ch. 10 Adding Debt to a Corporate or Project Finance Model by Programming Cash Flow Waterfalls -- Adding the Debt Schedule to a Financial Model -- Modeling Scheduled Debt Repayments -- Connecting Debt to Cash Flow in Corporate Models -- With a Structured Process, You Can Model Any Cash Flow Waterfall -- Defaults on Debt and Measuring the Debt Internal Rate of Return -- Assessing Risk and Return Characteristics of Subordinated Debt -- ch. 11 Alternative Calculations of Equity Distributions -- Modeling Dividend Distributions -- Computing a Target Capital Structure through Simulating New Equity Issues and Buybacks -- ch. 12 Putting Together Financial Statements and Calculating Income Taxes -- Computation of Taxes Paid and Taxes Deferred -- Cash Flow Statement and Balance Sheet -- ch. 13 Risk Assessment: The Centerpiece of All Valuation, Contracting, and Credit Issues in Finance -- Six Alternative Ways to Assess the Risk of a Company, a Project, or a Contract -- Using Direct Risk Assessment to Measure Cash Flow and Financial Ratios -- ch. 14 Defining, Describing, and Assessing Risk in a Risk Allocation Matrix -- ch. 15 Presentation of Risk Analysis through Adding Sensitivity Analysis to Financial Models -- Setting Up Data for Making Graphs by Converting Periodic Data into Annual, Semiannual, or Quarterly Data -- Using the INDIRECT Function to Automate Conversion to Time Period Data -- Making Flexible Graphs for Sensitivity Analysis -- ch. 16 Using Financial Models to Establish Break-Even Points for Key Input Variables with Data Tables -- Establishing Break-Even Criteria When Analyzing Financial Models -- Mechanics of Using Data Tables to Compute Break-Even Points Automatically -- Creating Data Tables Using VBA Instead of the Data Table Tool -- Summary of Break-Even Analysis -- ch. 17 Constructing Flexible Scenario Analysis for Risk Assessment -- Mechanics of Scenario Analysis -- Using VBA Code to Create a Scenario Analysis -- Getting the Best of Both Worlds: Creating a Special Custom Scenario That Allows Use of Spinner Buttons and Drop-Down Boxes -- ch. 18 Generating Tornado Diagrams, Spider Charts, and Waterfall Graphs -- Tornado Diagrams That Display Which Variables Have the Largest Effect on Value and Which Variables Have the Least Effect on an Output Variable -- Creating a Tornado Diagram by Extending Scenario Analysis -- Creating a Tornado Diagram Using a Two-Way Data Table -- Spider Diagrams That Illustrate How Each Range in Input Variables Affects an Output Variable -- How to Create a Spider Diagram Using a Two-Way Data Table -- Presenting Sensitivity Analysis with a Waterfall Chart -- ch. 19 Adding Probabilistic Risk Analysis and Time Series Equations to Financial Models -- Definition of Some Terms for Adding Stochastic Analysis to Your Financial Models -- Using Probability Distributions with Spreadsheet Functions Rather Than Equations with Greek Letters -- ch. 20 Taking the Mystery out of Applying Time Series Analysis and Monte Carlo Simulation in Financial Models -- Step-by-Step Procedure to Incorporate a Monte Carlo Simulation into Your Models -- ch. 21 Constructing Probability Distributions with Trends, Mean Reversion, Price Boundaries, and Correlations among Variables -- Starting Point for Developing Time Series Equations- Brownian Motion and Normal Distributions -- Testing the Assumption That Input Variables Are Normally Distributed -- Price Boundaries and Short-Run Marginal Cost -- Mean Reversion and Long-Run Equilibrium Analysis -- Modeling Correlations among Variables in Time Series Equations -- ch. 22 The Difficult Problem of Estimating Volatility, Mean Reversion, Time Trends, Correlations, and Price Boundaries from Historical Data or Market Data -- Calculation of Volatility from a Random Walk Process -- Attempting to Measure the Presence of Mean Reversion in Historical Data -- Attempting to Measure the Presence of Mean Reversion by Evaluating Changes in Periodic Volatility -- Risk Analysis Summary -- ch. 23 Overview of Issues When Computing Normalized Cash Flow and Terminal Value -- ch. 24 Computing the Return on Invested Capital for Historical and Projected Periods in Corporate Models -- Working with a Free Cash Flow Perspective, an Equity Cash Flow Perspective, or Both in Computing Financial Ratios -- Presenting Return on Invested Capital in Financial Models -- ch. 25 Calculation of Invested Capital -- Dissecting the Financial Structure of a Corporation to Understand the Bridge from Enterprise Value to Equity Value -- Drawing an Imaginary Line underneath EBIT to Understand the Financial Structure of a Corporation -- Constructing a Long-Term Model to Create Proof of Corporate Finance Concepts -- ch. 26 Complex Items in Balance Sheet Analysis: Deferred Taxes, Operating Cash, and Derivative Assets -- Treatment of Accumulated Deferred Taxes Arising from Depreciation -- Classification of Operating Cash That Produces Interest Income below the EBITDA Line -- Treatment of Derivative Assets and Liabilities Depending on How Derivatives Affect EBITDA -- ch. |
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27 Four General Terminal Value Methods -- Method 1: Stable Growth Using the (1+ g)/(WACC -- g) Formula -- Method 2: Value Driver Method-Incorporating the Return Relative to Cost of Capital in Terminal Value -- Method 3: Use of Multiples from Comparative Analysis -- Method 4: Derived Multiple Formula -- ch. 28 Terminal Value and Philosophy: Company Growth Rates and Overall Economic Growth -- Computing Transition Periods Using Compound Growth Rates and Switch Variables -- Computing Explicit Period Cash Flow and Terminal Value with Different Starting and Ending Points -- Computing Value with Changing Weighted Average Cost of Capital and a Midyear Convention -- ch. 29 Normalizing Terminal Year Cash Flows for Stable Working Capital Investment -- Effect of Changes in Growth on Working Capital Investment, Capital Expenditures, Depreciation, and Deferred Taxes -- Developing a Simple Equation for Normalizing Working Capital -- Incorporating Terminal Period Normalized Cash Flow in a Corporate Model -- ch. 30 Relationship of Growth, Capital Expenditures, Depreciation, and Return on Investment -- The Long-Term Stable Ratio of Capital Expenditures to Depreciation and the Ratio of Depreciation Expense to Net Plant -- Computing the Ratio of Capital Expenditures to Depreciation When Historical Growth Differs from Prospective Growth -- Computing the Ratio of Capital Expenditures to Depreciation -- Implementing the Stable Ratio of Capital Expenditures to Depreciation in Valuation Analysis -- ch. 31 Computing Normalized Deferred Tax Changes. |
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Note continued: Stable Ratio of Deferred Tax to Capital Expenditure without Change in Growth Rate -- Normalized Deferred Tax with Change in Growth Rate -- ch. 32 Terminal Value and the Ability of a Company to Earn Returns above the Cost of Capital -- The Myth of Convergence of Return on Capital to Cost of Capital -- ch. 33 Errors and Distortions in Applying the Value Driver Formula -- Deriving the Value Driver Formula for the Price/Earnings Ratio and Equity Value -- Deriving Implicit Assumptions about the Progression of the Incremental Return on Equity in the Equity-Based Value Driver Formula -- Deriving the Value Driver Formula Using the Return on Invested Capital and the Weighted Average Cost of Capital -- Biases in the Value Driver Formula in a Case with Only Working Capital -- Problems of the Value Driver Formula When Invested Capital Includes Net Plant -- ch. 34 Computing Implied Price/Earnings Ratios for Use in Terminal Value Calculations -- Model for Deriving the P/E Ratio from Value Drivers -- ch. 35 Computing an Implied EV/EBITDA Ratio in Terminal Value Calculations -- Simulation Model to Derive Implied EV/EBITDA Ratio from Invested Capital with Constant Growth -- Function to Derive Implied EV/EBITDA Ratio -- Comprehensive Analysis to Derive Implied EV/EBITDA Ratio with Changing Growth, Deferred Taxes, and Working Capital -- ch. 36 Developing Value Drivers for P/E and EV/EBITDA Ratios with Benchmarking and Regression -- Benchmarking Multiples to Derive Cost of Capital -- Downloading Data for a Sample of Companies from the Internet into a Spreadsheet -- Running Regression Analysis on Financial Data -- Advanced Corporate Modeling Summary -- ch. 37 Resolving Circular References in Acquisition Models: Computing Interest Expense on the Average Balance of Debt -- Circular References and Use of Opening Balances in Annual Models -- Alternative Techniques for Solving Circular Reference Logic Problems in Financial Models -- Resolution of Circular References from a Cash Flow Sweep Using the Iteration Button -- Solving Circular References from Cash Sweeps with Goal Seek and Solver -- Solving Basic Circular References from Cash Sweeps with a Horrible Copy and Paste Macro -- Solving Circular References Related to a Cash Sweep Using Algebra -- Solving Circular References with Functions That Iterate around Equations That Cause the Problem -- ch. 38 Creating a Structured Cash Flow Process in a Corporate Model to Resolve Circular References -- Structuring a Corporate Model with a Cash Flow Waterfall -- Resolving Circular References in a Corporate Model Using an Iterative User-Defined Function -- ch. 39 Overview of Complex Project Finance Modeling Structuring Issues -- Difficult Project Finance Problems: Structuring versus Risk Analysis Elements of a Model -- Items in Project Finance Models That Cause Circularity -- ch. 40 Funding Techniques in Project Finance and the Associated Circular Reference Problems -- Case 1: No Circular Reference-Pro-Rata Funding, Interest Paid during Construction, and Debt Size from Cash Flow -- Case 2: Circular Reference from Pro-Rata Funding with Capitalized Interest or Debt Ratio Input -- Case 3: Pro-Rata Funding with Capitalized Fees -- Case 4: Cascade with Equity Funded before Debt That Can Be Solved with Backward Induction -- Case 5: Bond Financing in a Single Period -- ch. 41 Debt Sculpting in a Project Finance Model -- Sculpting Method 1: Use of Solver -- Sculpting Method 2: Goal Seek and Algebra -- Sculpting Method 3: Net Present Value of Target Debt Service -- Sculpting Method 4: Backward Induction -- Sculpting Approaches in Complex Cases with Taxes, Debt Service Reserve Accounts, and Interest Income -- Solving Difficult Sculpting Problems with User-Defined Functions -- ch. 42 Automating the Goal Seek Process for Annuity and Equal Installment Repayments -- Debt Sizing with Level Repayments or Annuity Repayments Using a Goal Seek Macro -- Computing Debt Size for Equal Installment Structuring with a User-Defined Function -- Computing Debt Size for Annuity Structure with User-Defined Function -- ch. 43 Modeling Debt Service Reserve Accounts -- Structuring the Debt Service Reserve Account in a Project Finance Model -- Avoiding Circular References in Funding Debt Service Reserve Accounts through Separating Construction Debt from Permanent Debt -- Avoiding Circular References Due to Cash Flow Sweeps and the Debt Service Reserve Account -- ch. 44 Modeling Maintenance Reserve Accounts -- MRA Case 1: Constant Maintenance Time Period Increments and Level Expenditures -- MRA Case 2: Constant Time Period Increments and Changing Expenditures -- MRA Case 3: Varying Time Period Increments and Changing Expenditures Using the MATCH Function -- ch. 45 Refinancing and Valuing a Project Given Risk Changes over the Life of a Project -- Computed Internal Rate of Return with Changes in Discount Rate over Project Life -- Effects of Refinancing on the Value of a Project -- Mechanics of Implementing Refinancing into a Project Finance Model -- ch. 46 Covenants and Cash Flow Sweeps in Project Finance Models -- Mechanics of Modeling Covenants and Cash Flow Sweeps -- ch. 47 Asset Portfolios, Progress Payments, and Lease Rolls in Real Estate Models -- Modeling a Single Real Estate Project -- Modeling Multiple Projects That Are Part of a Combined Portfolio with Percent of Time Function -- Modeling a Portfolio with the Index Function and Data Table Tools. |
| Subject |
Valuation -- Mathematical models.
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Finance -- Mathematical models.
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Financial risk -- Mathematical models.
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Évaluation -- Modèles mathématiques. |
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Finances -- Modèles mathématiques. |
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Risque financier -- Modèles mathématiques. |
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Finance -- Mathematical models |
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Valuation -- Mathematical models |
| Other Form: |
Print version: Bodmer, E. (Edward). International valuation, modelling and project finance analysis. Hoboken, New Jersey : Wiley, [2015] 9781118854365 (DLC) 2014016731 |
| ISBN |
9781118957394 (electronic bk.) |
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1118957393 |
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9781118854464 (electronic bk.) |
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1118854462 (electronic bk.) |
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9781118854457 (electronic bk.) |
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1118854454 (electronic bk.) |
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1118854365 |
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9781118854365 |
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9781322196312 |
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1322196311 |
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(cloth) |
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