JP Morgan Investment Banking Task 3 Solutions | Building a DCF | Virtual Internship
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- Опубликовано: 20 окт 2024
- Let's build a DCF Model (Part 1)!
Task 3 is building a DCF model to value the HappyHour Co. business for a potential acquisition by WorldWide Brewing (our client). Some key takeaways are to be careful with your signs particularly when calculating tax from EBIT and then using that to calculate EBIAT.
In the next video, I will explain the sensitivity analysis and some of the formulas that were already pre-coded by J.P. Morgan.
Let me know if you got anything different and please ask me questions if you're unsure about something in my DCF.
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This was helpful. Thanks for the help. I literally couldn't make out where to start from
Can you please share the file ?
I am following the same formulas but its not working on my spreadsheet? any help
You do it fast so please teach us with basics so that could help everyone
Hi Arthur,
Thanks for the video!
When i am trying to calcuate the growth rate trending, at 1:30, i typed the exact same equation and copied to the right, but i got a bunch of 2%s instead numbers trending to 1% (1.6, 1.4...).
hi i am having the exact same issue which i am unable to resolve, Can you help me understand how you went forward with this ?
Yes I’m struggling with that too
You have to go into your formula settings and enable iterative calculations. Steps: File>Options>Formulas>Under Calculation Options, click box to enable iterative calculation>Click OK>re-run AVERAGE function in excel. Good luck!
@@0707Christine See my reply to this if you haven't figured out how to get the answer yet!
@@globeubf4 hey man, it was helpfully what you shared, could you please explain how is the deal between enable to disable that option, and how it works?
hi Arthur, thanks for the video but it is very hard for me to understand so please can you tell me how do i do it from the very basics?
Same
same
Try an alternative simple way:
Settings:
FCFPS based.
DCF year is proportional to CROIC. CROIC = 20%, means 20 years.
Growth = 0 and Discounted Rate = 0 because they are taken care of by CROIC.
at 5:52 you still have depreciation and amortisation figures wrong after the 'correction'?, look at the previous formula
HI IM STRUGGLLING so when doing the =average(Q13,S13) IT COMES AS 2.0 BUT WHEN I TRY TO DRAG IT TO 2029E like you did IT COMES up WITH A MESSAGE STATING "there are one or more circular references where a formula refers to its own cell either directly or indirectly " etc. would it be possible to help me out with this please. or didi you show how you worked it out properly.
this same doubt im having - im unable to paste or drag the formula
You need to enable Iterative Calculations in the Setting tab. Iterative calculations are turned off by default on Excel. The AVERAGE used in the video causes an indirect circular calculation. The default parameters in Excel and Google Sheets are sufficient for this example. Follow:
File > Settings > Calculations > Turn on Iterative Calculations
James you're a lifesaver, thank you Bro from all of us@@jamescox8762
@@jamescox8762 Thanks a lot! really helpful
Hi Arthur, anyway you can do it from the very basics
Hey Arthur i saw your video on JP Morgans Investment banking task 3 and i was wondering if you could help me out with this question:
-So at (8:11) in the video for the
% growth of Revenue & EBITDA you used the formula =IFERROR(F27/E27-1,0)
Also I didn’t understand what you did with the decimals and percentage in that part.
I got the answer but couldn’t understand why you did this. So could you help me with this part?
Thanks for the question! It's a shortcut to calculating growth. You can also do (current number - prior number) / prior number. This is the percentage of growth from YoY.
As a student struggling to secure a summer internship looking to break into banking/ investment banking, do you think these virtual internships are taken seriously by employers after graduation, without actually having undertaken a summer internship position?
This is a great questions and unfortunately from my experience employers don't really care per se. However, it does two important things. 1. shows your interest in the field. 2. develops some basic skills that will be useful anywhere.
@@arthurkiselnikov thanks for the helpful advice
@@joshtooley9441 i was in your position mate, and i can say is that it would be great if you network with the people already working there and specifically in your area of interest as it would show how dedicated you are. Cheers
In 4:00 my capex answer is coming in '-' sign? Now what to do
sir?
Hi arthur , I appreciate what you do .In (DCF new advanced model) in (DCF input work sheet) .you subtract tax from EBIT to calculate EBITA . But it was written (EBIT + Tax ) .At all thanks 👍
yes you are right
It says EBIT+Tax because it assumes you compute Tax in negative
Heyyy can you please share your Excel file?
Hello Sir
Thanks for sharing the video.
in 1:39 how did you arrange 2.0% from 2025E to 2030E. But still I didn't get it. Can you please teach me a basics?
It will be EBIT+Tax to calculate EBITA
Hi, why was working capital added not deducted? That seems wrong to me?
ARTHUR DIDNT your method by using average how were you doing it i am unable do that please help
Please help me on the include growth rate part ...when copying the formula to other cells its not changing
Hey Arthur, in this task you didn't talked about powerpoint summary
HI, why do you take the management case as EBITDA in the DFC input?
How did you linked it man =Financials sheet L12 after that you went to Company fin forecast sheet B5 you got the numbers and yours was linked as we can see in the video while you were super duper fast like a rocket .......when i am doing that to link it's still 0 why it is not changing ? Can you please explain
Hello, enjoyed the video ! I have a question as a student I'm in my second year of university of my four year degree and looking for an internship in my 3rd year. Will employers take this virtual internship seriously also factoring in covid?
Hey Zoha, I would definitely use this to highlight some key skills that you have learned but from my experience and in my opinion this shouldn't be used as actual work experience on your resume. But you can list it under extracurricular activities and leadership if you have space. More importantly, the interview process is extensive and you'll probs get asked about how much you have done on excel. Here you can really lean on this experience :)
@@arthurkiselnikov Thank you for the advice, I really appreciate it :)
I did the trending growth rate part, but couldn't understand the logic behind it. =Average(0.2% * 1471)?????.....what does it imply?
When I went back and tried the formula it broke. Not sure why it works sometimes and sometimes it doesn't (I think because it becomes circular)... You can just take an extra step and fill in cells one by one rather than trying to create a formula.
A lifesaver!
Thanks for sharing your thoughts💟
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Hey.
Why dont you put a minus sign before change in working capital ?
I think doing so would be more appropriate.
Were you using mac for this DCF model? It looks like Excel on mac
I am not able to Average, How you were doing using formula =AVERAGE when i am doing this it's copying just the previous row number and when i copy this and paste it in other empty rows it gives a pop up saying
"There are one or more circular references where a formula refers to its own cell either directly or indirectly. This might cause them to calculate incorrectly. Try removing or changing these references, or moving the formulas to different cells."
If any one knows the solution please reply
I'm stuck on the same error have u solved it?
you are epic lots of love keep it up budddy
at which point the solution has been fully completed,time,minute?
predicting a full income statement is excessive. I would use the company's Roic and reinvestment rate for fcff, for fcfe I'd use the Roe and equity reinvestment rate.
Can you tell me where to learn financial modelling.
hi, thanks for everything but I'm having problems with line 67 of DCF input (Discount factor) I get #VALUE!. Could someone help me? PLSSSSS🙏
Very helpful ✨✨
Hi, could you explain why you added non cash exceptionals to exceptionals at 7:04?
Good question. The reason why I did that is because it was for the cash flow section, so I was adding back non-cash portion of exceptional items.
Thank you!!
How did you get the average of forecast growth ? It’s not working the same way as your’s in my excel.
If my formula isn't working for you you can try making your own, the logic is that the growth rate approaches a certain percentage such as 10% going to 5% over 5 years
@@arthurkiselnikov WHAT IS THE FORMULA THO, '=AVERAGE(P18,R18)' does nothing.
You have to go into your formula settings and enable iterative calculations. Steps: File>Options>Formulas>Under Calculation Options, click box to enable iterative calculation>Click OK>re-run AVERAGE function in excel. Should work after that
@@brockholmes5834 See below comment if you haven't figured out how to run the average formula yet.
At 5:55 why do you add the negative?
I’m not sure what you’re referring too?
@@arthurkiselnikov at 5:35 sorry you say you forgot to add the negative sign but I was wondering why we do that
Hi, why do i keep getting a circular reference when trying to fill up the growth rates at 2:35 using the AVERAGE function? Any help would be greatly appreciated
Do you solve this issue having this right now?
Hi for the % forecast margin under EBITDA (this happened on revenue too) I tried to use the average of the 2024E and 2026E and kept getting a circular error. Could anyone please help me get past this roadblock? I use a Mac btw and the circular error bar is grayed out when I tried to turn it off
Did you ever solve this issue. I'm having it a year later?
@@AtticaHealthI’m having this issue have you solved it?
@@JJ-le7xlnever did bro - looks like I’m not gonna be a banker after all 😂
Really helpful videos thank you for the help could you please do the Citi APAC investment banking intern experience on forage too would be appreciated thanks!!!
Thanks for the feedback! I may be interested to take a look at the Citi internship. What are the most interesting tasks about -- do they make you build a dcf? Btw please be careful with people immitating me in the comments. I would never ask you to contact me or give you direct investment advice on here :)
@@arthurkiselnikov i think the Citi internship gives good tasks with differences to the Jp morgan internship, we can see vairous other tasks similar to real world investment banking. It would be a good help if you could go through it!!
Cheers mate, Excellent video !
can you please share the excel sheet solution
no
thanks dude!
Heyy can you please share the Excel file?
Can you please provide the completed excel file?
Do you have this file?
WHEN WILL OTHER PART COME BRO
In the next day or so hopefully 🤞🏻
Sometimes the video was too fast... couldn't understand in many ways
Thanks for the suggestion! Sorry it was too fast
Could you please send it to me ? I need the final file
Sorry I won't be sending my work to anyone. Perhaps in the future I'll upload a file online for everyone to see
Speed is too fast
what were the odds that our names would match and so did our career interests 😂😂
Me en canta
8 min