Computing terminal values in Excel does not have to be hard. In this video, learn how to use free cash flows to determine the value of a company in Excel.
- [Instructor] One major issue in accounting … is cash versus non-cash items. … While we need to record the non-cash items, … from a business point of view, cash flow is often seen … as the key driver of business valuation. … Identifying and itemizing these cash flows … for a business is critical though. … I'm in the 04_02_Begin Excel file. … Now what we have here is a portion … of the cash flow statement. … In particular, we're looking at the section … for operating activities, … and the cash generated as a result. … This is often what we care about … from the point of view of establishing … whether a business is viable as a going concern. … The firm's not going to be around for the long term, … if it's consistently generating … negative operating cash flows. … However, when we're trying to forecast these cash flows … on a forward-looking basis, we're really talking about … what's going to happen going forward in the future. … We could certainly make projections … about individual items in the cash flow statement, …
- List the most common tasks and approaches faced by accountants in their daily lives.
- Determine whether transactions can be exported from Quickbooks to Excel or not.
- Outline the structure that the SUMIF function uses.
- Explain how to measure EBITDA.
- Identify at what level the General Ledger tracks expenses.
- Break down how to construct a business valuation using a cash flow analysis.