Break even formula:

¿ costs
total revenue−total cost

Investment
total revenue−total cost

Revenue = quantity x price

Total variable costs = quantity x variable costs

Profit

Profit = revenue – costs

Profit = ( price – variable costs) x Q – total ¿ costs

Profit = revenue x margin

profit
Profit margin =
revenue

Profit ( ¿ x years )−costs of investment

ROI =
costs of investment

Profits of given period

ROI =
initial investment

ROI =
additional Profit New profits – Current profits – Depreciation of the investment
=
initial investment Initial value of theinvestment

initial investment
Pay-Back Period =
Profits of given period

investment
Investment payback: = payback period
profit

Growth in percentage

Initial amount +( percentage % x initial amount )

Growth in time

Year 1: Initial amount (Y 1)+( percentage % x Y 1) = new amount (P2)

Year 2: new amount (P2)+( percentage % x P 2)= P3

Weighted Average

overall average of a number of data groups with different weights. In this type of
problem, a set of numbers (Q1, Q2, etc.) have corresponding weights (W1, W2, etc.).

Q1∗W 1+ Q2∗W 2
W 1+ W 2

client annual revenue at year 1

number of clients/users: =number of clients∈ year 1
revenue per clients at year 1

BOND RETURNS

Initial investment x percentage% x number of years.

Ex: invest $2m with 7% annual coupon payments, in 5 years = ($2m x 7%) x 5

Net value

Ex:

Your client bidding for a contract to provide school meals in Gotham City. The
contract has a net value of $1.5m.

Gotham City is running a two-step bidding process. The client estimates that they
have a 25% chance of passing the first step and being selected among the finalists. If
that happens, they believe that they have a 40% chance of passing the final stage to
win the contract.

Expected Value (EV):

Probability of passing first stage x Probability of passing last stage x Contract value ​

Ex:
Your client bidding for a contract to provide school meals in Gotham City. The
contract has a net value of $1.5m.

Gotham City is running a two-step bidding process:

25% to pass 1 step  40% pass the 2 step and win the contract.

If the client will hire consultant, he can improve the client’s overall chances of
success by 20% in return for a fixed fee of $40,000.

Calculate the EV of the contract (without consultant):

Probability of passing first stage x Probability of passing last stage x Contract value =
25% x 40% x 1.5m = $150k

Calculate the EV with consultant:

(1+ Expected improvement from consultant) x EV without the consultant – Cost of

the = 120% x 150% - 40% = $140k

BOND RETURNS

Initial investment x percentage% x number of years.

Ex: invest $2m with 7% annual coupon payments, in 5 years = ($2m x 7%) x 5

STOCKS

JOMAP is a MedTech company that’s about to launch an IPO of 1,000,000 shares at

$45 per share. You are considering whether to use half of your year-end bonus to
buy JOMAP shares.

What is the average price per share you would get from using both enterprise
value/sales (EV/S) and price/earnings (P/E) comparable ratios? Should you buy
JOMAP shares at the initial public offering (IPO) price?

Step 1: Value the company using the enterprise value/sales ratio computed

JOMAP’s enterprise value = EV/S ration x Sales = 8 x $5m = $40m

Step 2: Calculate JOMAP’s market capitalization and price per share using the
enterprise value calculated
JOMAP’s market capitalization = Enterprise Value – Debt + Cash = $40m – $1m +
$3m = $42m

JOMAP’s price per share = $42m / 1m outstanding shares = $42 per share

Step 3: Calculate JOMAP’s market capitalization using the P/E ratio calculated

JOMAP’s market capitalization = P/E ratio x Net income = 21 x $1.9m = ~$40m

JOMAP’s price per share = $40m / 1m outstanding shares = $40 per share

Step 4: Calculate JOMAP’s average price per share from both comparable methods

Average price per share = $42 + $40 / 2 = $41 per share

Based on your comparables valuation, you should not purchase shares in JOMAP at
its IPO price as it is overvalued at $45 per share, compared to your calculation
of $41 per share. 

That said, as a next step it would be a good idea to value the business by using a
discounted cash flow to confirm your comparable valuation.

‫ארה"ב‬

‫ מיליון‬320 :‫אוכלוסייה‬

‫ מיליון‬124 :‫מספר משקי בית‬

‫ מיליון‬12.4 = 1% ‫ הם‬550,000$ ‫משקי בית המרוויחים מעל‬

.)‫ מיליון ~ בכל שכבת גיל של עשור (מתפלג נורמלית‬40

80 ‫גיל ממוצע‬

‫ישראל‬

‫ מיליון‬9 :‫אוכלוסייה‬

‫ מיליון‬3 :‫מספר משקי בית‬

:‫פילוח‬

‫נוצרים‬/‫ מיליון ערבים‬2-‫ מיליון יהודים ו‬7

 ‫‪ 4.5‬גברים ו‪ 4.5-‬נשים‪.‬‬

‫נתונים כללים‬

‫‪ ~ 360‬ימים בשנה‬

‫‪ ~ 50‬שבועות‬

‫מושגים‬

‫– ‪Market capitalization‬‬

‫זה הריבית השנתית המשולמת על אג"ח – ‪Bond coupon‬‬

‫המרווח התפעולי מודד כמה הרווח על דולר של מכירות לאחר תשלום עלויות – ‪Operating margin‬‬
‫ייצור משתנות אך לפני תשלום ריבית‪/‬מס‪ .‬יחסים גבוהים לרוב ממחישים שהחברה יעילה בפעילותה‬
‫‪.‬וטובה בהפיכת מכירות לרווחים‪ .‬מרווח מעל ‪ 15%‬נחשב טוב‬

‫כמה מהרווחים שנוצרים מסכום כסף מסוים מושקע‪ ,‬בתקופת זמן – ‪ROI – return on investment‬‬
‫‪.‬מסוימת‬

‫כשחברה אחת מוכרת את המוצר שלה לחברה שנייה‪ ,‬והחברה השנייה מוכרת לצרכן – ‪B2B2C‬‬

‫עסקים משווקים לעסקים אחרים – ‪B2B‬‬

‫מכירה ישירה לצרכן – ‪B2C‬‬

‫מוצר בר קיימא מינימלי – ‪MVP‬‬

‫מונח המתייחס למוצרים‪/‬שירותים שתוכננו ואושרו ע"י המפעל כך שיוכלו – ‪White label solution‬‬
‫‪.‬להימכר לחברה ב'‪ .‬לחברה ב' יש את הזכות להשתמש במוצר תחת התווית שלה‬

‫הכנסות של החברה‪/‬מכירות ברוטו של החברה – ‪TOP line‬‬

‫עלויות שמשתנות באופן ישיר עם כל יחידה נוספת של מוצר – ‪Variable cost‬‬

‫עלויות שלא משתנות באופן ישיר עם כל יח' מוצר נוספת – ‪Fixed costs‬‬

‫אינדיקציה האם מוצר הוא רווחי – ‪Profit margin‬‬

Structure

Awarenes
Consideration Purchase Retention Advocacy
s
PR Blog Website Blog Social media
Contact Word of
Radio / TV Media Newsletter
center mouth
Online ads Mail Store Loyalty program
FAQ – knowledge
Reviews web shop
base
Social ads community

Profitability problem
market Business financial
analysis
model
Market size customer revenue
segments
Growth rate service cost
offerings
Competition

Improving profitability

ENTER TO NEW MARKET

Market Competion Custumers client Suppliers Finance risks
Market Target Business Market risk
size customer plan
segments
Growth Financial
rate risks
Average Operational
 margin risks
in the
space
Regulation
issues

Launching new product

Product price Promotion place Costumer
base
Features Price Advertising plan geographies
Quality distribution
channels
Design
Packaging
After-sale
service

Costumer decision making criteria

Financial Strategic risks
Price Better brand Potential flaws
image in the design
Maintaenance Less legal risks
Useful life

Wild card case

external Analysis of the process flow
factors indicator
benchmarking career funnel
overall trend performance
of its
steps/stages