Company Valuation: Comprehensive Comparable Company Analysis

Learn to calculate enterprise value using an Excel-based exercise, including net debt, equity value, minority interest, preferred stock, and pension lease obligations for comparable analysis.

Build the debt section on the balance sheet by identifying short and long term debt, capital leases, and maturities, and reconcile total debt from the annual report for enterprise value.

Identify the total long term debt as the business's major liability. Net debt equals total debt minus cash and cash equivalents, including short term cash and short term investments.

Learn to calculate net debt using liquid assets and assess liquidity and debt financing. Understand basic shares outstanding, diluted shares, treasury stock method, and how options impact equity value.

Explore equity-based compensation, including stock options and restricted stock units, and how exercise price exceeding current price, vesting, and intrinsic value shape dilution.

Focuses on restricted stock units as the sole stock-based compensation, notes that performance stock units are cash-settled liabilities, and shows converting to millions to derive Verizon’s basic shares outstanding.

Learn how to locate a current share price, compute equity value and total capitalization, and adjust for net debt, minority interest, pension lease obligations to derive enterprise value.

Analyze pension obligations by distinguishing defined benefit liabilities from pension assets and funded status. Use net unfunded status to inform enterprise value, with examples from Chorus and Tata Steel.

Crystallize the concept of enterprise value by analyzing Vodafone’s annual report to extract cash and cash equivalents and related liquid assets.

Develop a practical approach to calculating net debt by identifying long-term borrowings, short-term borrowings, cash and cash equivalents, and restricted cash, excluding the latter when disclosure is inadequate.

Analyze Vodafone’s basic shares outstanding as of 31 March 2017, adjust for treasury shares, and assess options with a £1.61 exercise price using the annual report and exchange data.

Analyze options in-the-money status by comparing current share price to the exercise price, estimate proceeds and potential share repurchase, and review non-vested and restricted stock considerations.

Link and convert financial data to compute enterprise value, linking total shares, adjusting currencies, and incorporating net debt, minority interest, associates, and pension obligations across Vodafone and Bharti Airtel.

Analyze consolidated balance sheets to extract cash and cash equivalents, bank deposits, and current financial assets, and determine net debt.

Assess basic share outstanding, share capital, and treasury shares. Identify equity settled option plans and zero exercise price for scheme 2005 to gauge dilution.

Populate a stock-based compensation table by analyzing outstanding versus exercised options, exercise prices, plan exclusions (PSP vs PSC), converting to INR, and aligning figures with the current share price.

Explore how to set the correct share price for valuation, calculate dilution from options and restricted stock, and assemble enterprise value and equity value with net debt and pension obligations.

adjust underlying numbers by removing non-recurring and non-cash items to improve comparability; align depreciation, goodwill amortization, stock-based compensation, provisions, pensions, and income from associates for EBITDA and net income.

Analyze how to derive enterprise value and operating metrics from Verizon's 10-K, calculating ebitda, depreciation, capex, and operating free cash flow from continuing operations.

Adjust for noncontrolling interest and diluted shares to derive an EBITDA-based valuation. Compute operating free cash flow by subtracting maintenance CapEx and changes in working capital.

Learn how to identify and apply adjusted, non-GAAP numbers for EBITDA and net income, including removing non-operating charges and divestment impacts to align reports.

Analyze consolidated net income by adjusting for non-GAAP items using 8-K filings, compute adjusted EPS, and apply post-tax effects to reflect a clearer profitability picture.

Learn to calculate adjusted eps from four quarters using diluted shares, verify with 8-K and 10-Q filings, and apply post-pension liability adjustments in a comparable company analysis.

Adjust operating profit by adding back impairment losses, restructuring costs, and amortization of acquired intangibles; adjust for joint venture income and depreciation to estimate continuing operations net income.

Analyze how to adjust operating profit and net income when negative, applying adjustments for amortization of acquired intangibles, non-operating items, restructuring, and minority interests to derive earnings per share.

Explore cash flow from investing by evaluating capex items (intangible assets, PPE)—maintenance versus investments, changes in working capital, and stock-based payments to inform EBITDA and margins.

Examine Bharti Airtel’s consolidated revenue and ebitda, and assess margins and adjusted net income after depreciation, amortization, and exceptional items in a comparable company analysis.

Compute basic and diluted earnings per share, adjust for share-based payments, and assess capex components (property, plant and equipment and intangibles) and their effect on cash flow and margins.

Analyze changes in working capital and capital expenditures to evaluate telecoms' cash flow. Airtel's capex yields negative free cash flow, unlike Verizon and AT&T with EBITDA margins of 30–40%.

Analyze how depreciation and amortization shape adjusted ebitda and operating cash flow margins, and apply working capital adjustments from cash flow statements to compare telecom peers.

Examine the tower sector using American Tower Corporation as case study, focusing on 10-K and 8-K filings, EBITDA, capex, and changes in working capital to assess operating free cash flow.

Compute a US company’s adjusted EBIT and EBITDA by applying the 35% statutory tax rate, removing depreciation, accretion, and stock-based compensation adjustments, and derive diluted EPS from 8-K data.

Analyze the EBITDA margin and EBITA margin for a tower company by examining revenue, depreciation, and operating expenses, with an Indonesian example from Tower Bersama in annual reports.

Adjust net income attributable to shareholders by foreign exchange gains, impairments, and goodwill revaluations, applying a 25% Indonesian tax rate; assess working capital via inventories, receivables, and tower sector payables.

Analyze changes in working capital, including inventories, receivables, and payables, alongside depreciation, amortization, and ebitda and ebit to assess margins and operating free cash flow for valuation.

Learn key profitability measures for valuation—revenue, EBITDA, and free cash flow—and how forward and historical multiples, including net debt by EBITDA, guide future profit potential and valuation ranges.

Compute last twelve months figures for Verizon by aggregating nine-month results and year-to-date data, deriving EBITDA and adjusted EBITDA from quarterly filings.

Learn to compute nine-month EBITDA and net income, adjust EPS from quarterly filings using diluted shares, analyze CapEx and operating cash flow, and derive twelve-month trailing figures.

Compare EBITDA, adjusted EBITDA, and net income using non-GAAP measures from nine-month results. Analyze revenues, EPS, capex, and operating free cash flow across 8-K and 10-Q filings.

Compute operating free cash flow by analyzing changes in working capital from 10-q data, restated numbers, and LTM basis, using Vodafone, AT&T, and Verizon's adjusted EBITDA, EBIT, and EPS.

Walk through Bharti Airtel investor relations consolidated figures to compute earnings per share, ebitda, and net income, adjust working capital, and align results to the September 17 ltm for comparison.

Compute growth rates using last twelve months and next twelve months estimates, linking 10-K filings and Exhibit 13 data for Verizon and AT&T, applying CAGR with rate functions in Excel.

Forecast Verizon and AT&T growth using 2.1% and 5.5% growth, then create forward 12-month estimates with month- and day-based factors in Excel.

Forecast the next twelve months revenue for Verizon and AT&T using growth rates of 2.1% and 5.5%, day-factor adjustments, and last year's margins to derive EPS, net income, and CapEx.

Apply the same estimation framework to Bharti Airtel and Vodafone by compiling five-year revenue data from annual reports, then project growth and align year ends for LTM analysis.

Apply the LTM-based approach to forecast revenues and margins by using factor calculations and interpolation, linking Vodafone, AT&T, and Verizon, and evaluating estimation judgments.

Learn how to calendarize financials for company valuation by aligning fiscal year ends across markets, converting March, December, or June year ends to a common period for accurate comparisons.

Compute year-end values by aligning reporting periods for June and December year-ends, applying half-year weighting and a July start to blend overlapping periods.

Apply calendarization to adjust December and June year ends in company valuations, handling cases where target and comparable year ends differ and using weighted 2016–2017 factors.

Master currency management for comparable company analysis by converting figures to a common us dollar base using balance sheet, spot, and average exchange rates for revenue alignment.

Show 2016 historical numbers at the balance sheet rate and 2017–2018 estimates at spot rates, then convert all to USD for comparability.

Learn five methods to project estimates for comparable company analysis, including consensus, broker benchmarking, management guidance, annualization, and industry growth with margins.

Explore how to derive equity estimates using Bloomberg and Thomson Reuters consensus estimates, convert currencies, and synthesize mean revenue, EBITDA, and EPS from multiple brokers for Vodafone.

Extract consensus estimates by averaging broker numbers and link them to revenue, EBITDA, and EPS figures. Review company guidance from annual reports, interim updates, and press releases to validate forecasts.

Learn to project industry growth and margins using Bharti Airtel as a case study, incorporating GDP-based estimates, market share dynamics, and average revenue per user.

Evaluate regional results by extracting India revenue and EBITDA, linking half-year figures, and analyzing margins to compare Vodafone India’s regional performance.

Demonstrates pulling revenue and EBITDA from annual reports for Idea Cellular, converting lakhs to millions, and aligning currencies for a consolidated India-focused comparable company analysis.

Identify how to derive EBITDA from segment numbers by adding back depreciation, compare external revenue with India operations, and use restated FY16 figures from annual report for comparable company analysis.

Convert all company figures to a consistent unit, standardizing to millions, and link historical EBITDA data to compare growth and margins across Bharti Airtel, Vodafone, Idea Cellular, RCom, and BSNL.

Learn how to estimate Bharti Airtel's revenue and EBITDA by analyzing industry growth and margins, computing averages with and without Aacom, and applying premium or discount to future projections.

Apply the industry growth and margins approach to Indian telecom, comparing Bharti Airtel with rivals, extracting revenue and EBITDA, projecting fy18 industry size 2.4 lakh crore, 6% decline.

Compute industry revenue market shares using revenue-based analysis, currency conversions, and FY 17 figures, and compare bottom-up versus top-down estimation methods, including Vodafone euro to rupee conversions.

Explore the final steps to build a comparable company analysis, covering enterprise value, net debt, revenue, EBITDA, EBIT, CapEx, FCF, and calendarization, and currency management.

Build and link historical and estimated financials on an underlying basis, apply calendarization, calculate growth, margins, and ratios, and prepare LTM views for comprehensive comparable company valuation.

build a modular valuation workbook for comparable company analysis featuring calendar and historical multiples, revenue and ebit metrics, and dividend data, with currency conversion and ltm linking.

Apply basic input data and currency conventions to derive enterprise value using a Vodafone example. Align reporting periods, LTM adjustments, and balance sheet dates for accurate valuation.

Convert Vodafone's pound share price to euros using the current exchange rate and extract basic and diluted shares outstanding (including treasury shares) from regulatory filings.

Analyze Vodafone's net debt, minority interests, and equity components to calculate ev, including cash and cash equivalents, short term debt, long term debt, and diluted shares.

Update Vodafone's group revenue from the 2018 press release, input the latest financials, and calculate key metrics like adjusted EBITDA and adjusted earnings per share in euros.

Extract and verify historical financial data for a comparable company analysis by pulling figures from annual reports and linking them to pdf page references, EBITDA, net income, EPS, and dividends.

Explore segmental assets and cash flow analysis using a proxy for fcfe defined as ebitda minus capex, tracking capex components and changes in working capital.

Apply Vodafone LTM calculation by linking to annual numbers, convert currencies to euros, refresh the latest share price, and compute historical multiples including EV/EBITDA and price by EPS.

Learn how to calendarize financials and convert historical multiples to USD using spot exchange rates, aligning calendar months across peers for consistent valuations.

Build a comparable company valuation model by applying fixed categorization factors, blending historical data, and projecting 2018 estimates using a fixed growth rate and margins.

Project estimates using revenue growth and fixed margins, replicate and fix formulas across periods, and model dividends, CapEx, and EPS to complete a comprehensive comparable company valuation.

Explore building a comprehensive comparable company analysis by converting historical financials to USD, calendarizing data, and assessing enterprise value and multiples under revenue assumptions.

Refresh Vodafone's latest filings to update net debt, borrowings, and minority interests, finalize enterprise value, and outline calendarization, estimate multiples, and dividend observations for peer comparisons.

Track historical ebit figures and restatements from Vodafone filings, extracting group-level revenue, depreciation and amortization, net income, and eps for comparable company analysis.

Calculate earnings per share by dividing adjusted net income from continuing operations by the weighted average shares, and benchmark dividends while excluding special one-time items.

Analyze Vodafone's 2014 annual report by extracting net income and eps, noting restatements, calculating earnings and weighted average shares, and aligning figures for a comprehensive comparable company analysis.