1 / 10

Valuation Mod-8 Oil and Gas Field Services

Valuation Mod-8 Oil and Gas Field Services. Chris Jennis 2/19/2014. Agenda Module 8 Summary Abnormal Enterprise Income Growth Model Model Comparisons Questions. Module 8 Abnormal enterprise income growth model Anchors valuation on capitalized forecast of next-year’s EPAT

xiang
Download Presentation

Valuation Mod-8 Oil and Gas Field Services

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Valuation Mod-8Oil and Gas Field Services Chris Jennis 2/19/2014

  2. Agenda Module 8 Summary Abnormal Enterprise Income Growth Model Model Comparisons Questions

  3. Module 8 • Abnormal enterprise income growth model • Anchors valuation on capitalized forecast of next-year’s EPAT • Accountants choice of the method doesn’t affect valuation of the project • Underlying economic transactions haven’t changed • Assumptions • Cost of capital • Sales growth rate

  4. Abnormal enterprise income growth model

  5. Multiyear Forecasts of Sales, EPAT and NEA Required Rate of Return 10.04% Sales Growth Rate 7.00% 5.00% Enterprise Profit Margin (EPM) 17.35% Enterprise asset turnover (EATO) 0.95

  6. Discounted Cash Flow Model

  7. Residual Enterprise Income Model

  8. Abnormal Enterprise Income Growth Model

  9. Comparisons

  10. Questions?

More Related