scholarly journals Valuation of Start-Up Company Using Real and Financial Assets Rate of Return

2020 ◽  
Vol 11 (3) ◽  
pp. 120-132
Author(s):  
Ika Yanuarti Loebiantoro ◽  
Jeunifer Nia Listiawan
Keyword(s):  
Flow Analysis ◽  
Fair Value ◽  
Rate Of Return ◽  
Financial Assets ◽  
Discounted Cash Flow ◽  
Asset Return ◽  
Start Up ◽  
Property Price ◽  
Beta Risk ◽  
Risk Free Rate

AbstractThe objective of this research is to analyse and describe the valuation of start-up company using the Discounted Cash Flow Analysis. There are several combination of discount rates, including combination of beta, risk free rate and market return. There are several market returns applied in the calculation of the discount rate, such as gold price, crude oil, property price index and IDX composite. The object of research is PT. XYZ, which is a start-up company engaged in the field of software (System & Mobile Application). The results showed that PT. XYZ is a start-up that has a systematic risk (Beta) of 5.1 point, which is lower than the average beta of hi-tech start-up companies. The fair value of PT. XYZ is Rp 3,729,416,128,911. Using a confidence level of 95%, the deviation of company’s value is between Rp102,726,286,407 and Rp7,356,105,971,415. It is concluded that valuing the start-up using real and financial asset return as a benchmark will provide high fair value. The reason is the return in those assets are lower because of lower risk. The lower rate of return will make the value of the start-up company higher. Therefore, investors will request the start-up company to provide higher value.

Graeber Companies, Inc.: Examining Impairment of Equity-Owned Investments

2012 ◽  
Vol 27 (4) ◽  
pp. 1215-1241 ◽  
Author(s):  
Belverd E Needles
Keyword(s):  
Early Stage ◽  
Flow Analysis ◽  
Fair Value ◽  
Financial Assets ◽  
Discounted Cash Flow ◽  
Equity Investment ◽  
Preferred Stock ◽  
Transaction Analysis ◽  
Fair Market Value ◽  
Value Measurement

ABSTRACT The Graeber Companies, Inc. case illustrates the implications of the Fair Value Measurements Standard (FASB ASC 820 or IFRS 13) and the Fair Value Option for Financial Assets and Financial Liabilities (FASB ASC 825 or IAS 39) on the accounting and auditing issues regarding fair value accounting. Based on an actual company's experience, the case provides an application of the new standards on fair value measurement, which is one major achievement of the FASB/IASB convergence project. Graeber Companies, Inc. is a 100-year-old financial boutique firm that, through its wholly owned and partially owned subsidiaries, is engaged in financial service activities. One of Graeber's proprietary investments is an equity investment in Advisor Group, Inc. (AGI)—an early stage development company. Students evaluate AGI's financial performance and strategic activities, including operating losses, issuance of preferred stock and proposed acquisitions by another investor company relative to its materiality, and potential impairment of Graeber Companies' equity-owned investment. The case study requires a determination of materiality of the equity investment and introduces students to the different valuation techniques such as Discounted Cash Flow Analysis, Public Market Analysis, Precedent Transaction Analysis, and the waterfall schedule method. The usefulness of these methods is then analyzed in determining the fair value of an investment in the situation where there have been no recent market transactions. Through analysis of the financial statements, relevant footnotes, and obtaining/obtained fair market value using different valuation approaches, students make a recommendation on materiality and on the fairness of the Graeber Companies management conclusion that no impairment of its investment in Advisor Group has taken place.

scholarly journals VALUATION BUSINESS IN PEER TO PEER LENDING WITH DISCOUNTED CASH FLOW (DCF) METHOD

2020 ◽  
Vol 2 (3) ◽  
pp. 01-12
Author(s):  
Muhammad Akhirul Hakim ◽  
Dr. Raden Aswin Rahadi ◽  
M. Akmal Adrianza
Keyword(s):  
Secondary Data ◽  
Fair Value ◽  
Descriptive Study ◽  
Financial Indicators ◽  
Discounted Cash Flow ◽  
Microsoft Excel ◽  
Enterprise Value ◽  
Start Up ◽  
A Company ◽  
Financial Technology

Start-up companies are businesses that are now very popular in Indonesia. To support the business moving fast, these businesses need investors by offering the company's fair value. With similar but not the same calculation, in which start-up companies have different financial indicators and financial assumptions with conventional companies, in this case, the valuation is included innovation value and disruption probability. This research is a descriptive study which is based on case studies in the research object. The object of research is PT ABC, a company engaged in the field of Financial Technology. Data collection is done by collecting secondary data from the company and observation during the internship. The analysis is done by conducting a sensitivity analysis with the DCF method using Microsoft Excel. Valuation is also very closely related to Financial Projection to predict the state of the industry pear to pear landing in the future. The data shows that the enterprise value is Rp. 46,084,735,403,742. Then, EV/Revenue is 1,748 times, and the percentage of raise is 100%. According to DCF Valuation, the author suggests investors invest in the company. Because the valuation is very good.

TINJAUAN STUDI KELAYAKAN USAHA BADAN USAHA MILIK DESA (NAGARI) KAMANG HILIA SEJAHTERA KENAGARIAN KAMANG HILIA, KECAMATAN KAMANG MAGEK, KABUPATEN AGAM, PROVINSI SUMATERA BARAT

2018 ◽  
Vol 3 (2) ◽  
pp. 160
Author(s):  
Halkadri Fitra ◽  
Salma Taqwa ◽  
Charoline Cheisviyanny ◽  
Abel Tasman ◽  
Nurzi Sebrina
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Average Rate ◽  
Flow Analysis ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Penelitian ini bertujuan untuk melihat kelayakan aspek keuangan usaha grosir sembako Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera di Kenagarian Kamang Hilia Kecamatan Kamang Magek Kabupaten Agam Provinsi Sumatera Barat yang dilakukan pada tahun 2018. Penelitian bersifat deskriptif kuantitatif dengan menggunakan metode cash flow analysis, payback period, net present value, profitability index, internal rate of return, dan average rate of return. Hasil penelitian menunjukkan bahwa nilai net cash flow Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera adalah positif yaitu Rp.21.774.000, nilai payback period adalah 1,15 tahun, nilai net present value positif sebesar Rp.10.680.034,47, nilai profitability index adalah positif 1,37, sedangkan nilai internal rate of return adalah 46,7% dan nilai average rate of return adalah 57,23%. Berdasarkan standar penilaian maka semua metode yang digunakan memberikan kesimpulan bahwa usaha grosir sembako milik Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera dalam kategori layak untuk dilaksanakan.

INFINITI HR – professional employer organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susan White ◽  
Karen Hallows
Keyword(s):  
Financial Analysis ◽  
Flow Analysis ◽  
Capital Budgeting ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Analysis And Evaluation ◽  
Academic Level ◽  
Course Of Action ◽  
Basic Capital ◽  
Current Events

Theoretical basis Students need to know basic capital budgeting techniques to value INFINITI and its competitors. Issues include how to: handle taxes in a discounted cash flow analysis when valuing an S Corp. where incentives depend on current (known) and future (unknown) tax provisions; value a firm using comparable multiples analysis and transactions data; assess the costs and benefits of acquiring a firm versus being acquired; and analyze an industry and perform a ratio and financial statement analysis. Research methodology The case information was obtained through interviews with co-founder Mark Schwaiger. In addition, the authors researched industry and comparable company data, along with current events relating to the professional employer organization (PEO). Financial data was obtained from the owners and competitor data was obtained from Thomson One and Bloomberg. Case overview/synopsis INFINITI HR was a PEO providing comprehensive human resources to their clients. Co-founders Scott Smrkovski and Mark Schwaiger were at a crossroads at the end of 2015 trying to determine the best course of action to take with their company to grow and prosper. One option was for INFINITI to be acquired by a larger company and the second option was for INFINITI acquire a smaller company. In this case, students have the opportunity to do a financial analysis and evaluation of INFINITI and its competitors to determine which option is the best. Complexity academic level This case is intended for an advanced undergraduate or an MBA corporate finance class.

Pasture systems to improve productivity of sheep in south-western Victoria 2. Animal production from ewes and lambs

2011 ◽  
Vol 51 (11) ◽  
pp. 982 ◽  
Author(s):  
Geoffrey Saul ◽  
Gavin Kearney ◽  
Dion Borg
Keyword(s):  
Flow Analysis ◽  
Subterranean Clover ◽  
Supplementary Feeding ◽  
Stocking Rate ◽  
Discounted Cash Flow ◽  
Condition Score ◽  
Western Victoria ◽  
Breakeven Point ◽  
Gross Margins ◽  
On Farm

Two pasture systems (Typical, Upgraded) were compared at five on-farm sites across south-western Victoria between 1990 and 1996. The Typical pasture treatment mimicked the pastures common in the region, with volunteer annual-based species fertilised with ~5 kg/ha.year phosphorus (P). The Upgraded pasture treatment was sown to phalaris, perennial ryegrass and subterranean clover using cultivars recommended for the particular area. Higher rates of fertiliser (13–25 kg/ha.year P) plus other nutrients were applied. Both pastures were set-stocked with breeding ewes. The stocking rate on the Typical treatments was based on normal farm practice. Initially, the stocking rate of the Upgraded pastures was 15% higher than the Typical pastures and increased over time depending if the ewes in the Upgraded pastures were heavier than those in the Typical pastures. Measurements included pasture growth, composition and persistence, ewe stocking rates, ewe and lamb liveweights and condition scores, lambing, marking and weaning percentages, fleece characteristics and supplementary feeding. Over the 6 years, the average carrying capacity of the Upgraded pastures was 18.0 DSE (Dry Sheep Equivalents)/ha compared with 10.2 DSE/ha on the Typical pastures (P < 0.001). As well, the ewes on the Upgraded pastures were 2–3 kg heavier (P < 0.001) and 0.3 condition score higher (P < 0.001) than those on the Typical pastures. Ewes grazing the Upgraded pastures cut significantly more wool per head (4.8 versus 4.5 kg) of higher micron wool (23.1 versus 22.6 um, P < 0.001) but with similar yield and strength. There was no difference in the supplementary feeding required on the treatments. Ewes grazing Upgraded pastures had significantly higher lambing (116 versus 102%), marking (86 versus 81%) and weaning percentages (84 versus 79%) and weaned significantly heavier lambs (23.6 versus 22.6 kg) than those on Typical pastures. There was less feed on offer (P < 0.05) in the Upgraded pastures compared with the Typical pastures in autumn–winter but similar or higher levels in spring and summer. Gross margins using current costs and prices were $20 and $24/DSE for the Typical and Upgraded pastures, respectively. These values were used in a discounted cash flow analysis to determine the long-term benefits of the treatments. Assuming a 12-year life for the pasture, the internal rate of return was 27% with the breakeven point in Year 7. Treatment and ewe condition score significantly influenced lambing percentage with ewes in condition score 3.0 at joining having a lambing percentage of 111% compared with 95% if at condition score 2.3. Irrespective of condition score, ewes grazing Upgraded pastures had a 7% higher lambing percentage than those grazing the Typical pastures. Ewe condition score and lambing time significantly affected weaning weight. Lambs born to ewes in condition score 2.3 during pregnancy and lambing in autumn, reached only 32% of mature ewe liveweight at weaning whereas lambs from ewes at condition score 3.0 achieved 51% of mature weight by weaning.

A Pre-Feasibility Study of Limestone Quarry Development for Cement Industry in Cambodia

2014 ◽  
Vol 931-932 ◽  
pp. 1696-1700
Author(s):  
Socheat Kem ◽  
Sunthorn Pumjan
Keyword(s):  
Feasibility Study ◽  
Early Stage ◽  
Flow Analysis ◽  
Cement Industry ◽  
Mine Planning ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Local Conditions ◽  
Planning And Scheduling ◽  
Internal Rate

s: Cambodia is a developing country, and mining sector is just started within the last 10 years. Many mining companies have started to explore and carry out the feasibility study amid the scarcity of geological data and technical code of practices. Therefore, the quarry sector is also considered at the early stage in Cambodia, and it is required a standard quarry planning practice. This paper will present the main concepts of (1) quarry operation, development, and design by using the commercial program Minesight to accommodate the mine planning and scheduling. as the result, 25 million ton of limestone was calculated to be a reserve with production of 1 million ton per year; (2) financial model, consisted of cash flow analysis, net present values (NPV), and the Internal Rate of Return (IRR) are the main point for economics consideration. In this point, 47% of internal rate of return was calculated with the net present values of 21.5 million US Dollar and (3) the environmental impact which involves dust, noise, vibration impacts and mine rehabilitation, will be addressed base on the specific local conditions.

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