ROIC formula: calculate returns on invested capital consistently
Build and audit a return on invested capital: reconcile NOPAT and invested capital two ways each, choose a denominator convention, and catch three inconsistencies.
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Sources and uses: balance acquisition funding in a worked example
Build a sources and uses table for a fictional buyout: offer basis, refinancing, fees and the sponsor equity plug — then run the checks that catch what the plug hides.
Cost of equity formula: build a CAPM estimate and explain its limits
Assemble Northgate's cost of equity from a dated risk-free rate, beta and equity risk premium, catch a 604% units error and two silent wiring errors, and price the range.
Football field valuation: build and check a valuation chart
Build a football field valuation chart in Excel with consistent enterprise-value ranges, a market reference, and checked bridges to equity value and value per share.
LTM vs NTM: compare valuation multiples on consistent periods
Bridge four fictional quarters into LTM EBITDA, build NTM from a dated forecast, and see the exact 6.67% by which a mismatched denominator imports the growth rate twice.
Precedent transaction analysis: select deals and build a valuation range
Build a precedent transaction analysis in Excel from a fictional deal set: rebuild headline prices into enterprise value, screen comparability and derive a checked valuation range.