following data will show a competitive advantage for CEMEX: Table1 Calculated selected indexes on the basis of Exhibit 4 | CEMEX | HOLDERBANK | LAFARGE | (A)EBITDA / ton cement | 46 | 26 | 38 | (B)CAPEX / ton cement | 7 | 11 | 18 | (C)Free Cash Flow / ton cement | 22 | 8 | 8 | (D)TEV adjusted / ton cement | 172 | 160 | 130 | (A) shows a cost advantage to CEMEX due to a good global positioning satellites systems which decreases the costs for fuel‚ maintenance and payroll. Furthermore
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Oil & Gas Valuation – Quick Reference http://breakingintowallstreet.com Oil & Gas Valuation: Comparable Public Companies & Precedent Transactions Picking a set of comparable companies or precedent transactions for an oil & gas company is very similar to how you would pick them for any other company – here are the differences: 1. Rather than cutting the set by revenue or EBITDA‚ you would instead select the set based on Proved Reserves or Daily Production (in addition to the normal geographic and industry criteria)
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Equity Valuation: Discounted Cash Flow and Residual Income Models Introduction Valuation plays a very important role when companies are trying to increase their value‚ raise money‚ acquire another firm or sell a subsidiary‚ also when a company decides to go public. Managers‚ investors and shareholders need to have the most accurate and reliable information in order to make decisions‚ that is why valuation is a fundamental exercise in corporate finance. It is pretty evident that whatever
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that period. The firm must keep minimal cash balance of $100 million to support its operating activities. However‚ the change of operating NWC is assumed to be zero. Calculation To calculate the external financing needs during the period 1983-1990‚ we need to calculate the net cash flow from operation (i.e. the free cash flow minus after tax-interest paid). Along with the cash at the beginning of the year and the required minimum cash balance‚ we can get the external financing need
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Executive Summary California Pizza Kitchen (CPK) was founded in 1985 by Larry Flax and Rick Rosenfield with a vision of offering customers designer pizza at reasonable prices. CPK’s target market is geared towards affluent customers making $75‚000 annually‚ and over the span of 2 decades the business was able to grow from a single location into 213 locations across 28 states and 6 foreign countries. CPK generates revenue from 3 main sources: company restaurants‚ franchises‚ and royalties. CPK stands
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Can include value of ITS in several ways: 1. WACC METHOD; discount unlevered free cash flows using the weighted average cost of capital (WACC). Because we calculate the WACC using the effective after-tax interest rate as the cost of debt‚ therefore this method incorporates the tax benefit of debt implicitly through the cost of capital. 2. ADJUSTED PRESENT VALUE METHOD (APV); first value a projects free cash flows without leverage by discounting them using the unlevered cost of capital. Then
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fully expensed the cost in the financial year it incurred. However‚ General Manager of the company‚ Anita Osman preferred the cost to be amortized in order to improve the profit of the subsidiary. The third problem is related to the management of cash in the MarineCorp. As the CFO of the
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(something) in order to fit the needs or requirements of a person‚ business‚ etc. Errors Cash flows. Is the movement of money into or out of a business‚ project‚ or financial product. It is usually measured during a specified‚ limited period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company’s value and situation. Cash flow notion is based loosely on cash flow statement accounting standards. It’s flexible as it can refer to time intervals
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Warner had a total gross cash flow of $24691.8. The peak cash profit from the income statement was in 2008 with an amount of $6‚251.6. However‚ in 2009 there was a sharp decrease to $3‚090.3 of gross cash flow. This fall in gross cash flow was due primarily to a substantial drop of $2‚312.3 in Time Warner’s net operating profit after taxes. This would prove to be the trough of Time Warner’s gross cash flow over this 5 year period; however‚ since 2009‚ the gross cash flow has been steadily increasing
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What is shareholder wealth? 1. Wealth maximization process? 2. Maximization of wealth of shareholder? 3. The profit maximization of shareholders? 4. What is profit maximization in business? 5. Difference between profit and shareholder? 6. Goal of maximization of shareholder wealth? 7. Wealth maximization or profit maximization? Profit‚ Profits From an accounting perspective‚ profit is the difference between the price and cost of a product or a service
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