Cross-Border Valuation
Inflation Influence on Value
High inflation erodes the value of an organization because passing inflationary pressure onto customers is challenging and often not initiated – managers often do not realize the impact […]
Archive
Category: Excel Models
Cross-Border Valuation
Cross-Border Forecasts
Subsidiary companies operating in another country use the local currency. Therefore, their evaluation requires special considerations. In this entry, I will discuss forecasting cash flows for a subsidiary […]
Other Valuation Methods
Capital Light Business & ROIC
Some business models inherently involve very small amounts of capital, making the use of ROIC (Return on Invested Capital) impractical for evaluation. When the scale of profit relative […]
ROIC
R&D Capitalization
According to financial legislation, intangible assets generated during the process of organic growth (including R&D) are not recorded on the balance sheet; instead, they are directly expensed, which […]
Statement Reorganizations
Operating Lease
In accordance with IFRS, almost every leasing contract exceeding one year is recognized as financial leasing. This implies that the contract’s capitalization should occur as assets and liabilities, […]
Statement Reorganizations
Provisions in Valuation
When evaluating an organization, it is important to correctly understand the pre-accrued expenses and corresponding reserves. Such expenses can be divided into four categories. Each requires a different […]
Statement Reorganizations
Operating Cash Taxes
Operational Taxes and Payment Timing The amount of tax arising from operations is one matter, and the timing of its payment is another. Additionally, in some cases, the […]