- For valuation, you should always use the latest net debt (not the one from last FY but from last quarter or half-year)
- If there has been a stock buyback or M&A or other capital raising (e.g. debt) etc since the last results filing, you need to model that in
- Make sure that the company isn’t running a cash negative position at any point in your forecasts
- Make sure that your drivers are running from the CHOOSE function line, not from the individual case lines themselves! Common error you made, would mean you’d only reference one case and not the others. Silly.
- When you toggle M&A off, you have to also toggle the cash outflow off and not just the case… you also have to toggle the dilution off and anything else related to the M&A. So when you build a toggle for a scenario, make sure you encompass the full scenario.
- Make sure all of your beginning debt balances are not anchor-linked, they need to be beginning balances flowing properly! This will create issues on BS.
- Make sure you don't roll-forward one-time hardcoded historical items on the P&L as you try and move the rest of the stuff