for private market beta you can use the r square for comparable firms like median beta divided by the rsquare that is the explained variance,effectively you get unexplained variance that is the idiosyncratic risk
Total crap… She forget a lot and made it school kid easy.. 1) Governance 2) Insurance 3) Age Groups 4) Patent on and old product, Patient renewal 5) Practice 6) Cheaper competitors 7) Phase 2 Testing All the things that matter and maybe more I forgot…
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Just buy Gold, the government has failed us or try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
Indeed, gold proves to be a strong investment and a reliable hedge against the declining value of the dollar. I've held onto some gold for quite some time, and I'm thankful that my advisor's rapid adjustments to market fluctuations have likely prevented significant losses.
First of all in this case studies we have to study the feasablity like the injections for an headache would be a vague idea we have to know how many people will be ready to take this injections through a test market research anaylysing how many people are intrested in taking injection or a pop in pill would be better the analysis has to be done prior to the launch in a feasablity test on studying the market demand is important for a product test is reccomended how ever i suggest an idea of pop in pill where nano bots enter your body and take control however a comphrehensive study is required to solve this problem over your migrane that is more feasiable and viable for creating a market demand for your product the injection market is to be doomed in the future according to the recent study however its advisable for a client to change the trajectory of the product to be in the market place RBM consult
Lmao literally no real life interview in IB revolves around "YO SHOW ME HOW MUCH YOU CAN REMEMBER BY TELLING ME THE FORMULA FOR XYZ" Second half was better
Investment bankers recruiting through a youtube video marketed to the public is hilarious. The economy is so upside down that investment bankers are asking the common man if they have any ideas. They will take advantage of you.
No one will hire you based on regurgitation of formula. This is a choreographed vocab test. They are trying to encourage people who know nothing to get into the field. When fields are suffering they do not recruit people who are intelligent in the field, they’ve already tried that. They are now recruiting regular people who would have never had a chance in the field with the shiny optimism of “this is a job above your caliber that you can get if you do the bare minimum but this is a job you might not have gotten otherwise but we are desperate” then when you get it, they treat you like a slave.
She does talks about market size, competition, price elasticity, us population, people suffering from headaches, total no of patients, injections per patient. So isn’t that top down approach?
Operating Income * (1 - Tax Rate) does not equal Net income. You have not removed Interest Expense, so the figure represents Net Operating Profit After Tax. You gave 75% of the Levered Free Cash flow formula, which you also did not clarify during your explanation. If you are working from Net Income to LFCF, you also need to remove mandatory debt repayments. The formula, under your definition, would be Net Income + Non - Cash Expenses - Capital Expenditure - Changes in Net Working Capital - Mandatory Debt Repayments. Levered Free Cash Flows do not represent your cost of equity. Levered Free Cash flow represent the amount of free cash flow generated for equity stakeholders in a company. If you are using LFCF in the context of a DCF, it is giving you something closer to Equity value after summing up the years of generated cash flow and discounting them back to PV. WACC, by your own definition, equals COE + % of Equity + COD * % of Debt *(1 - Tax Rate) + COP * % of Preferred shares. The reason it makes no sense for a private company is because you A.) don't have a Beta, and B.) You do not have information pertaining to a company's capital structure. "Market Capitalization" would not be the missing factor for a private company. Enterprise Value does not represent the entire value of a firm. TEV is a holistic valuation approach inclusive of both Debt and Equity shareholders, but is only representing a companies Net Operating Assets. Enterprise Value excludes Non-Operating Assets, such as Cash and Financial Investments, as well as Non-Operating Liabilities, such as Debt. I think conceptually what you are doing is fantastic and is helpful for people who are trying to understand the format of an interview, but there are some serious errors that should probably be addressed in the responses to the questions provided.
@@MrMDannycorrect. FCF should be learned in a introductory finance class and enterprise calculations in a intermediate finance/corporate finance class.
FCF is something not one single person in industry won’t know perfectly as it is a very simple concept and there are a couple of ways to calculate it, varying depending on the situation.
I’m currently a freshman, I took this financial accounting course series on EdX by Cambridge, and a ton of this stuff was actually discussed in this interview, which felt really rewarding for me because it’s the first time I’ve seen my time spent on that actually pay off. I took it because I’m in the loop with an investment research firm, and they do a lot of accounting statement research stuff. Hope I made the right decision lol
Im majored in finance now working in credit risk. I dont know all formulas off the top of my head but knowing how to use excel is the key. Most of your work will be on a computer, if u cant remember google that shit
u work in credit risk buddy 😂😂 none of these questions are einstein level math formulas they're formulas based on financial intuition. knowing these answers is moreso just a signal that you know basic financial shit. i garuntee you ibankers will remember free cash flow formulas until they die.
It is defined as no of outstanding shares times the price of a share. Even in cases of startups, despite them burning cash and incurring losses, the share price is never negative. A neg share price would mean that the company is actually paying you money for owning their stock/company. Remeber valuation is not just about how much you have earned in the past or in the present but also about the future. Startups may be in losses at present but they have great growth potential.
You actually can have negative equity (book value), however not market capitalization value. Now, Boeing is an example of negative equity ( book value).
I think you haven’t worked in banking. Relationships and trusts are just as important, if not more important than precise calculations. I don’t think investment banking will go away ever.
