Take our finance & valuation course: www.careerprinciples.com/courses/finance-valuation-course
@solomonbhandari-young4154
2 жыл бұрын
Awesome
@dn.andresmunoz3008
2 жыл бұрын
This bear market is a prime example of why we should have a strong foundation built & cash position in our investment portfolios.
@ronaldjohnson1805
2 жыл бұрын
I always keep emergency cash for expenses and more to take advantage of dips
@raymondalvarez1994
2 жыл бұрын
Many investors try swinging for the fences on high-risk growth stocks or crypto, without building a strong foundation first.
@dn.andresmunoz3008
2 жыл бұрын
@@raymondalvarez1994 If you can handle the volatility and invest in great growth companies, there is nothing wrong with that.
@raymondalvarez1994
2 жыл бұрын
@@dn.andresmunoz3008 well, most investors just can't handle the volatility
@dn.andresmunoz3008
2 жыл бұрын
@@raymondalvarez1994 Howard J. Alexander. A U.S regulated investment manager is a good coach. He advised me and I kept emergency funds for buyng the dips. You should only be taking out what can be taken out during downturns. Do not be tempted to sell. All that you invested over time especially during upward trends will be lost.
@nicogerst6007
Жыл бұрын
For anyone wondering @14:51, Kenji SUBTRACTS the Change in NWC because it is a negative value, and subtracting a negative is actually an addition. Because technically, a DECREASE in NWC needs to be ADDED to calculate FCFs.
@caitlynlazzarini7038
Жыл бұрын
So if our own individual change in WC is positive then we would +change in WC not subtract?
@alisherzhakaibekov1620
Жыл бұрын
You are right. He seems to have made a mistake
@powerhouseinco9664
Жыл бұрын
also why does he add the growth rate for the TV?kzitem.info/news/bejne/mG2u0amjqZugZ20
@olayemitemidayo9023
Жыл бұрын
@@alisherzhakaibekov1620 He did the right thing. When you have two negative signs, one turns over, and they add together to make a positive.
@nasirhalimah7021
7 ай бұрын
@@olayemitemidayo9023 adding two negative values will still give negative unless you multiply. I guess he made a mistake on that part. More so, increase in current liabilities means that business has more short term cash available, while increase in current assets (inventories and receivables) means that less cash is available.
@KrishnaShah-hp7su
2 жыл бұрын
You should've also educated us about the Assumptions and all
@TriMinhNguyen-le5rj
4 ай бұрын
I think assumptions may be based on nature of industry and company so it is quite hard to explain through some videos.
@m4a1gaming69
11 күн бұрын
Or else use forecast formula using weights in another column
@user-kg1rl7ym6y
5 ай бұрын
Hello Kenji, After watching your video of DCF Model of Corporate Valuation, I am able to prepare the valuation of any corporations. Thank you very much for your kind contributions for the people all over the world who really want to start their career in Finance.
@vladislavemelianov3130
2 жыл бұрын
Kenji, thank you for all your efforts and knowledge that you give to many people. I am sure that you are an example and a motivator for people who want to break into this industry. By the way, as a further idea. Would you like to make a video about the LBO model? I am sure that many people will be interested.
@florianrec4913
2 жыл бұрын
yeah pls
@justinlovro8301
2 жыл бұрын
Would love to see an example paper LBO model or even a more advanced one
@hersey1999
2 жыл бұрын
Spent the last couple of weeks practicing DCF, now I feel comfortable to attempt to construct a DCF from scratch. Thanks Kenji!
@RaltahookCrafting
2 жыл бұрын
Just landed on your channel, just fron this video you already sold me your Valuation Course, keep up with the great content!
@KenjiExplains
2 жыл бұрын
Awesome! Thank you!
@AntonioLopez-ds5so
2 жыл бұрын
Hey, Kenji, awesome video as always. Thanks especially for this part 2:03 where you explain how to project the revenue in more detail. I am learning financial analyst and I struggle a little bit with some industries because I find hard to identify the revenue drivers and the revenue items. Keep it up, brother :)
@nton3845
Жыл бұрын
My guess is that it is a retail company based on the high level of operating expenses. Great video, thank you; it is helping me to complete an assessment for a position I am interested in
@Roy-mk9zl
9 күн бұрын
Even telecommunications have high expenses...
@productivelife
3 ай бұрын
Better explained than my 3 years in uni😂
@alvareza3
Жыл бұрын
For days outstanding. Why use 360 and not 365?
@davidmelonakos6565
7 ай бұрын
Best explanation for this tedious subject that I've ever seen!!
@balaramsprasad
2 жыл бұрын
Super Video Kenji, Its literally Learn with Kenji now. A lot of takeaways from your videos. Expecting more of these types. Thank you
@kimnganle9553
2 ай бұрын
Thank you for making such a simple, easy to understand video. It really helps me a lot. Thank you!
@kuralaysaimassay9813
4 ай бұрын
Dear, Kenji! This is my first time commenting under KZitem video! Thank you a lot for your explanations! You helped me a lot on my thesis diploma project!
@KenjiExplains
4 ай бұрын
Happy to hear that! thank you for watching the videos :)
@WillDawson-fh6ky
7 ай бұрын
Hi, can someone please explain. I'm very confused as a I feel Kenji may have mixed up the EBIT and the EBITDA around 4:00-5:00. Is it not the EBIT that is equal to Revenue - COGS - Operating Expense not the EBITDA?
@user-xo6kc6zp3r
Жыл бұрын
thanks Kenji, this is a perfect guide to the valuation project i have at school
@yolandaineshernandezsolano9770
Жыл бұрын
You are the best!!!
@Mad1080
9 ай бұрын
Super Super Super.... Well explained.. Calm, cool, and with patience... make many more videos of DCF with hard way and practical knowledge and also provide excel sheets
@JD-mo3ws
Жыл бұрын
Hello Kenji! Around the 14m mark: I think we SUBTRACT increases in NWC to get from NOPAT to UFCF! Increases to liabilities represent cash INFLOWS rather than outflows, so the formula should be [-(F18-E18)] for cell F17, for example. Otherwise a great video! Thank you for sharing!
@xiaowenliu2964
9 ай бұрын
I agree
@luisnoronha2297
Жыл бұрын
Tks for the video. One quick question. In the WACC tab the equity is listed as 214,560 but in the balance sheet tab the equity is listed as 18,078. Can you explain why the big discrepancy ?
@fassmo
Жыл бұрын
Does anyone have an answer on this?
@princedennisjr6246
4 ай бұрын
@@fassmo Yeah, confused about this as well.
@shalabhmisra9073
7 ай бұрын
Kenji, thank you for sharing this. Very helpful. Do you have any video that educates about building a financial forecasting model? I am looking to learn how to project - Revenue, Production, Cost of Revenue, and Cash Flow for the next 3 or 5 years.
@camlex6310
2 жыл бұрын
Really helpful!! Breaks it down so clearly
@bodgukalism3
Жыл бұрын
I literally love you. Thank you for all the hard work.
@olayemitemidayo9023
Жыл бұрын
God bless you @kenji. This is a blessing to me personally
@grazielalindahl6236
Жыл бұрын
Your videos are amazing! Easy to follow and organized. Thank you!
@Jagicheru
Жыл бұрын
Thank you for this, you have made it very bite size, enjoyable.
@balancedthinking5005
Жыл бұрын
Thanks, Kenji it's a great video. I have a few questions. How do you calculate the beta in PE? What's the growth rate of equity based on? The current value may be based on the 10 year of today but as an investor don't we need to project where the 10 year will be in the future? How do you adjust for inflation in a case when real yields are negative? For the expected growth rate do you use nominal growth or real growth? Why don't you use the revenue growth of this particular company for the growth rate? What's the expected market return based on?
@ahmeddilshad4828
Жыл бұрын
Kenji hats off for you brother ❤
@Joy_Christo
11 ай бұрын
I did exactly the same thing. All the values were right but I got the sensitivity table wrong.. I use a MAC, Is there something else that needs to be done to paste it as values?
@afsanehbozorg2001
7 ай бұрын
Kenji, it was very useful! thank you
@faisalym
7 ай бұрын
Thank you Kenji. Very useful.
@willzinner8813
2 жыл бұрын
been waiting for this one thank you sir
@i.HeshamHassan
Жыл бұрын
It's really a great effort, thank you very much, I benefited a lot from you Thank you again and wish you all the best
@KenjiExplains
Жыл бұрын
Glad to hear that!
@tesseractharpy6138
Жыл бұрын
At 13:19, would the amount differ in hundreds? Because I followed your step, and drag to the side with proper lock on revenue based on column, but it shows different in hundreds, H6 you got 1326, I got 1523.
@elliottmeuer8221
10 ай бұрын
me too
@baadba1
11 ай бұрын
Very good video! However I think there is a mistake in the naming. Indeed, your unlevered FCF is actually a levered FCF because you do not deduct debt repayment + otherwise, you would not deduct the net debt when computing the equity value of the company
@andreugiro2807
2 жыл бұрын
I needed this type of video! Thanks man!
@KenjiExplains
2 жыл бұрын
Glad you liked it!
@alejadroigoyanes
Жыл бұрын
very good but u need to make a full video in more detail please! this just scratches the surface
@daniaabuajaj1884
2 күн бұрын
THANK YOU
@king3650
4 ай бұрын
8:27 Why did you multiply by 360 to get the days outstanding values instead of 365?
@user-yv6eo7io8s
9 ай бұрын
This guy has my heart!
@HankTheTank23
5 ай бұрын
When you calculated Days Sales Outstanding, Days Inventory Outstanding and Days Payable Outstanding, technically you were supposed to use the average of the pervious year and the current year's balance sheet figure.
@ykn7018
4 ай бұрын
great as usual, Kenji. A question. when you calculate the Enterprise free cash flow you seem to exclude interest expense. when you calculate the share price / equity value, you seem to also exclude interest expense. So is interest expense irrelevant to both the firm's free cash flow as well as to equity valuation?
@udayteja6595
4 ай бұрын
Thankyou very much for the great content.
@Soarin8
7 ай бұрын
Great Video, thanks for sharing!
@xfzhou4597
Жыл бұрын
so awesome,so useful!thank you so much!
@MJ-cg8vp
10 ай бұрын
Hi Kenji, where/how did you get the total equity value at 17:21?
@solomonbhandari-young4154
2 жыл бұрын
Kenji always on point
@liamdillon9465
Жыл бұрын
Damn dude this was awesome
@KonstantinosPanetsos
6 ай бұрын
The company is costco wholesale corporation the statements match and the stock was around 360$ when the video was published. I have a university project on costco thats how i noticed
@Roy-mk9zl
9 күн бұрын
He took 3% growth rate for the industry but retail was projected to grow at 9%. Can you please put some colour on this?
@syt4453
3 ай бұрын
Hello Kenji. Nice video but I have a question. If you pay $100 to your payables, that means the change in net working capital will increase, and thus decrease the cashflow by $100 before discounting in the DCF model. Later on, when calculating equity value from enterprise value, we add less cash in because we paid to the payables. So, it looks like there is double counting of the $100 we paid. Once it deducted the enterprise value in the DCF due to net increase of working capital, and again reduced by $100 when adding (less) cash to arrive at the equity value.
@tf285
4 ай бұрын
Amazing video. I think you made a mistake when calculating the CAPM, you didn't subtract the Risk-free rate at the end of the CAPM formula. B(E(RM)-RF). Someone, please correct me if I'm wrong.
@jimd1617
22 күн бұрын
thank you 🤝
@hisokaamorou4211
Жыл бұрын
Salute to you Kenji!
@khanhngan4678
4 ай бұрын
Thanks Kenji a lot
@ibrahimkukandaka
Жыл бұрын
Thank you Kenji.
@andymarci6766
2 жыл бұрын
Great content MR!
@kingo_of_bingo
Жыл бұрын
Thank you for this great video. I was just wondering how did you get the growth figures? On what did you base all of these assumptions?
@Roy-mk9zl
9 күн бұрын
Is it okay to take company's projected growth rate from the guidance for revenue projection? And I am really confused about the growth rate Kenji used while calculating the terminal value.
@user-yq1fg1nl2e
2 жыл бұрын
This was mad helpful. Thank you so much!
@KenjiExplains
2 жыл бұрын
Glad it was helpful!
@andychavez
2 жыл бұрын
I wish you could explain what you mean by "model out each line item" in making revenue growth projections at 2:00. I hope you can provide as some sources how to do about it. Thanks.
@financialedgetraining
2 жыл бұрын
Very informative video! 🧐
@benjaminli3808
Жыл бұрын
How are the projected growth rates per year often set?
@yassineouzlifi1902
Жыл бұрын
Hi, where are you getting the equity value from in the WACC tab ? I.e. 234,550 This should be the value of equity from the Balance sheet, isn't it ?
@Sky_Hustle
Жыл бұрын
That is most likely the market cap of the company on the day he put this together(2022-07-02). When calculating WACC, the market value of equity is typically used in the formula.
@shraddhasagwekar979
Жыл бұрын
Thankx Kenji sir
@mclovin7159
2 жыл бұрын
Hey Kenji! great videos.. I want to ask you what laptop would you suggest to perform all these task for a ms in finance student which laptop would be the best?
@abhirajak1851
2 жыл бұрын
You will end up a million subscribers
@kangruiong9196
5 ай бұрын
how do u justify calculating the percentage against revenue for the components under current assets and liabilities?
@LoveU_Allthetime
2 ай бұрын
If the tax rate is different each year, when calculating the WACC, which tax rate does it take? Can there be multiple WACCs based on the year?
@moonheekim3882
6 ай бұрын
Thank you so much for your kind explanation and excel files!!! It'd be a greatttt help! I have a question though. Reg. Fixed Asset tab, I usually look for Capex amount from the cash flow chart.. but in your case, you did Ending PP&E - Beg PP&E + D&A. In this case, it doesn't match with the Capex amount from the cash flow. Am I doing something wrong?
@fozilkamolitdinov7112
5 ай бұрын
hey bro, everything is fine and understandable but in Net working Capital you took three indicator for current assets, but in the data there were actually 5 if I am not mistaken. My question is why did you take those three?
@ShameerTalk
2 жыл бұрын
Thank you so much, could you make a video on the Cap table?
@aspiringassetmanager4707
2 жыл бұрын
I was just thinking about you🤣and you uploaded a video
@kangruiong9196
5 ай бұрын
for the debt, did you take an average from all the years?
@seanlee595
9 ай бұрын
Hi Kenji, to answer your question, my guess is some type of online subscription company. Given the huge amount of cashflow, is it Netflix?
@RohitThakur-en7qw
Жыл бұрын
Please make a video on Precedent Transaction Analysis for Valuation
@TheJaebeomPark
9 ай бұрын
excellent!
@michael02468
Жыл бұрын
Hi Kenji, why doesn't the formula for calculating CapEx match the CapEx on Cash flow statement on fixed assets sheet? Why did you calculate your CapEx instead of using the CapEx number from Cash flow statement? thanks!
@aayushiparikh2317
5 ай бұрын
What formula have you used to calculate the growth rate? Forecast or RRI (CAGR) on excel? theyre different than the ones hardcoded in the excel. i tried averaging both the methods but still a few % dont match. Please mention!
@YogiKharade
7 ай бұрын
Can you explain how did you the discount rate for forecasting the revenues for the FCF
@RitaWong-nd7yb
11 ай бұрын
Hi Kenji, thank you very much for the video. It is very informative and useful. Just one quick question: At 06:40, you mentioned the equation for non-cash working capital formula is: current assets - cash - current liabilities, but then at 13:50, the formula for calculating NWC (or change in NWC) does not include the item "cash". Can you please explain why? Thank you very much!
@JayB948
9 ай бұрын
Cash is already included in the current assets figure
@Toby-bi8ug
Жыл бұрын
Fantastic tutorial, helped me revise for my interviews! I was just a bit confused as to why you were using a levered Beta in the WACC to discount unlevered FCFs? I would've thought that modelling the added risk of debt would entail discounting levered FCFs with a rate that has a levered Beta? Wishing you all the best.
@scuffed_derivative
Жыл бұрын
Levered beta is the market risk, which is why it’s used in the cost of equity. It’s the cost to shareholders. The stock price variance will always take into account debt risk of the company. Using unlevered beta wouldn’t make sense as that isn’t the true cost to shareholders
@xX3laal9amtXx
2 жыл бұрын
You are smart great gentleman
@EvEnPvP
Жыл бұрын
Awesome video! How do you automatically get data for a new company into the same excel sheet? Or do you have to do it manually? Thanks
@amrsultan3540
9 ай бұрын
For publicly traded companies, accessing financial statements through the investor section of their website is common practice. These statements typically include earnings summaries, financial reports, and presentations, often available for download in formats like Excel or CSV. However, when it comes to private companies, they are not required to disclose their financial information publicly. So, getting access to their financial data can be challenging unless they voluntarily release it or share it through other means. For risk measures like Beta, various financial platforms and sources such as FINRA, Yahoo Finance, Bloomberg, or other financial data providers often offer these metrics for different industries and companies, both public and private.
@kumarkanishk6007
2 ай бұрын
Hey Kenji, when I am making sensitivity table, for some unknown reason my middle figure is not as the calculated implied price. Can you help?
@vignesh338
4 ай бұрын
what if there are discrepancies such as in NWC calculations as its in a very fluctuating way what can be done for assumptions
@lannytohjaya4164
Жыл бұрын
Hi Kenji, good explanation but why the EBITDA and EBIT the answers is different when using calculate using the formula?
@trapitusaventurez2190
Ай бұрын
I'm so confused why every source has a different formula for NWC, like some include cash and operating lease liabilities
@TheInfernalRain
Жыл бұрын
Really great video. But link for excel file not working, can u pls reupload it somewhere?
@benjaminli3808
Жыл бұрын
Can we not use purchases of property and equipment in the cash flow as the CapEx values? Is it common practice to make an extra calculation for CapEx?
@scuffed_derivative
Жыл бұрын
That’s what he did in the video. “Capex” was the same as “purchase of PP&E”. The calculations he made were to find Ending PP&E
@DigvijaySharma574
Жыл бұрын
Thanks for such a informative video. Can you mention name of company whose valuation you do here
@eugen.iliescu
2 ай бұрын
Hello. Can you put here the excel file for DCF starting from EBIT please ? Thanks.
@aashitajain1028
Жыл бұрын
Hey @Kenji why have we not included operating income and preopening expenses while calculating FCFs?
@ArtOfLife.
Жыл бұрын
It's a retailer you're analysing here, Costco to be exact.
@vittoriovalerosalim7779
4 ай бұрын
is there like normal range for WACC percentage?
@rukhsaarp5013
Жыл бұрын
Hello can please explain how did you get 10% revenue growth in 2022E and so on
@meredithhuang3713
7 ай бұрын
hii but why my excel what-if can't select the row and colomn input cell?
@sabbymusic1273
6 ай бұрын
Hi sir, I have one doubt that when I do capex assumption for fade period through solver it shows me error why ???
@matteobedda7712
Жыл бұрын
very nice video. thank you. Could be the financial statements of retailer company ?
@KenjiExplains
Жыл бұрын
It's Costco :)
@LoveU_Allthetime
2 ай бұрын
If the tax rate is not the same each year, then the WACC is also not the same year, is it?
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