Available modeling methods
| Method / input | Behavior |
|---|---|
| Distribution methods | Amount or a percentage of positive net income. |
| Capital movements | Supported equity contributions and buybacks change financing cash flow and equity. |
Book equity is a derived balance
Opening equity and the modeled movements determine closing equity. Profit increases retained earnings; dividends reduce equity and cash but are not an expense in EBITDA or EBIT. The distribution method’s amount and percentage assumptions are retained when switching methods.
Book value versus equity valuation
The Balance Sheet’s equity is not the equity value produced by valuation. DCF and comparable valuations bridge enterprise value to equity using cash, debt and other claims. Shares outstanding belong to that valuation bridge, not to an automatic market capitalization in the accounting model.
Compare a distribution
Enter a distribution amount in a selected forecast year, or use a payout rate. Check financing cash flow and closing equity, including any funding requirement. What-If also supports a discrete dividend transaction.
Documents the current implemented behavior. Example assumptions are not market data.