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Spreading Investment Banking Comps: Preferred, Minority Interest and Adjusting for Subsequent Events

In previous posts, we addressed the equity and debt components in the enterprise value formula: EV = Equity + Debt – Cash & Marketable Securities + Preferred Shares + Minority Interest + Asset Retirement Obligations + Capitalized Operating Leases + Pension Obligations – Investments (including investments in affiliates, long-term investments) +

Spreading Investment Banking Comps: Calculating Fully Diluted Market Capitalization

We will explain the most important part of spreading comps for investment bankers in this post. The brunt of conducting comparable companies analysis is to calculate the appropriate enterprise value, which will have certain components which are "live" and certain components that are the latest historical financial statement data. So to

Picking Bank Stocks to Invest In

Choosing Comparable Companies for Banks and Diversified Financial Institutions This is our second post on analyzing bank stocks. Keep in mind that when looking at banking, the most pure play bank is a bank that takes deposits and lends, charges service fees and invests excess equity in relatively safe fixed income

Introduction to Analyzing Bank Stocks

The following article should not be taken as investment advice and is for information purposes only For most people who invest in stocks, whether through building a blue chip portfolio themselves or through mutual funds/ETFs, they are usually invested in bank stocks. The big banks are an important part of every

Modeling Commercial Real Estate

Before going into some real estate strategies, here are some key financial assumptions in modeling out the return on investment for your real estate investment. Real Estate Operating Assumptions Net Operating Income (NOI) Net operating income is the revenue of the property or property portfolio less any operating expenses. This is before maintenance

Buying Real Estate as an Investment

Most millionaires are real estate millionaires and we would expect that real estate will continue to be an excellent investment vehicle. Real estate is an important part of a diversified portfolio and should grow as stockholdings grow. Investors should buy real estate - but not all real estate is created equal. Real Estate

Liquidity Ratios and Asset Based Lending

Illiquidity and Insolvency for Debtors Any entity that has debt can become illiquid or insolvent. Illiquid means that the debtor cannot service the debt at the time with liquid assets (which in accounting class generally means cash, accounts receivable and inventory - in decreasing order of liquidity), not because it does