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Valuation Model Picker
Beta
1
Positive / Negative Earnings
2
Earnings Based Questions
3
Financial Leverage
4
Dividend Policy
Earnings Positive / Negative
Are your earnings positive?
Yes
No
Please answer the following for positive earnings:
What is the expected inflation rate in the economy?
%
What is the expected real growth rate in the economy?
%
What is the expected growth rate in earnings (revenues) for this firm in the near future?
%
Does this firm have a significant and sustainable advantage over competitors?
Yes
No
Please answer the following for negative earnings:
Are the earnings negative because the firm is in a cyclical business?
Yes
No
Are the earnings negative because of a one-time or temporary occurrence?
Yes
No
Are the earnings negative because the firm has too much debt?
Yes
No
Is there a strong likelihood of bankruptcy?
Yes
No
Are the earnings negative because the firm is just starting up?
Yes
No
Financial Leverage
What is the current debt ratio (in market value terms)?
%
Is this debt ratio expected to change significantly?
Yes
No
Dividend Policy
What did the firm pay out as dividends in the current year?
$
Can you estimate capital expenditures and working capital requirements?
Yes
No
Enter the following inputs (from the current year) for computing FCFE
Net Income
$
Depreciation and Amortization
$
Capital Spending (Including acquisitions)
$
∆ Non-cash Working Capital (∆WC)
$
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