Did anyone use the warehousing information in their quants? We didn't, just wonder if we should.
2014 CMA Board Report (LVG case)
- Last Updated:
- Mar 24th, 2015 11:53 am
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- SCORE+1
- LG2013
- Newbie
- Apr 23, 2014
- 8 posts
- Longueuil, QC
- 1chris1
- Member
- Jan 19, 2007
- 415 posts
- 19 upvotes
- ON
How many years did you guys use to test the in-game social gaming pilot?
- HunterM
- Newbie
- Apr 23, 2014
- 12 posts
- Toronto, ON
Hi all, How did people value APC? I discounted the FCF over 5 years and got a firm valuation of $66M. Anyone get the same?
Also, for the EV/Rev multiple of 1.3, do you multiple it by total annual revenues or total revenues over 5 years?
Also, for the EV/Rev multiple of 1.3, do you multiple it by total annual revenues or total revenues over 5 years?
- HunterM
- Newbie
- Apr 23, 2014
- 12 posts
- Toronto, ON
I didn't since it only refers to rev from durable virtual goods and you don't know what % of rev is from durable goods and consumable goods.
- flyguy1104
- Jr. Member
- Sep 11, 2012
- 164 posts
- 96 upvotes
- Vancouver
How did you guys caculate downloadable game? I have 29.9M NPV from 2014 to 2017 but I am not sure how to deal with the current investment in AR and lose on sales. Any suggestions are appreciated!
- LG2013
- Newbie
- Apr 23, 2014
- 8 posts
- Longueuil, QC
We got a negative NPV for this one.flyguy1104 wrote: ↑How did you guys caculate downloadable game? I have 29.9M NPV from 2014 to 2017 but I am not sure how to deal with the current investment in AR and lose on sales. Any suggestions are appreciated!
- flyguy1104
- Jr. Member
- Sep 11, 2012
- 164 posts
- 96 upvotes
- Vancouver
- LG2013
- Newbie
- Apr 23, 2014
- 8 posts
- Longueuil, QC
NPV of incremental income of 6 games, but we also calculated incremental revenue (new sales and lost sales)flyguy1104 wrote: ↑Did you use the incremental revenue on those games or the total revenue for those 6 games?
- flyguy1104
- Jr. Member
- Sep 11, 2012
- 164 posts
- 96 upvotes
- Vancouver
Just trying to have better understanding on this
Revenue: The new revenue - lost on sales
Expense: additional cost - saving on the salary ( lay offed 90 people in total)
Then calculate the use NPV in net earing comparing with initial 10 M investment. Is this how you calculated your NPV?
- CharlCharl
- Newbie
- Apr 24, 2014
- 12 posts
- Mississauga, ON
How did you treat the development cost? is this eligible for CEC deduction?
- CharlCharl
- Newbie
- Apr 24, 2014
- 12 posts
- Mississauga, ON
Can the development cost be capitalized in this case? I did use incremental revenue and expense for the npv, to answer the previous post
- Yaris104
- Newbie
- Nov 11, 2012
- 36 posts
- 1 upvote
- Toronto
weve structured as Strat Alts: Downloadabl software, retail contract, purchase mobile co, social game in-house development, restructure
For minor alts: Buy back Kidvid, moving existing games to mobile, sequel
For minor alts: Buy back Kidvid, moving existing games to mobile, sequel
- LG2013
- Newbie
- Apr 23, 2014
- 8 posts
- Longueuil, QC
I am struggling with this too.a_dulg wrote: ↑Has anyone had any difficulties in calculating the overhead allocation in the in-game advertising issue. They mention that games selling less than 75,000 copies (such as Canadian Dogsled Adventure) don't even cover their share of overhead. I presume the decision to begin advertising in-game would balance the additional advertising revenue with the current loss of the game. Unfortunately, I'm unsure how to allocate overhead! Any ideas?
- flyguy1104
- Jr. Member
- Sep 11, 2012
- 164 posts
- 96 upvotes
- Vancouver
Can others provide some calculation on downloadable game too?
- blarg
- Deal Addict
- Oct 24, 2005
- 1148 posts
- 492 upvotes
- HendHend
- Newbie
- Apr 22, 2014
- 8 posts
- , ON
Are you sure that this is the correct order? I was thinking Strat alternatives: Downloadable software, social game, APC. The operational alternatives: restructuring, retail contract, moving existing games into mobile and sequel and in-game advertising.
What did other groups have?
- HendHend
- Newbie
- Apr 22, 2014
- 8 posts
- , ON
How did everybody structure their alternatives? Which are the most important ones?
- HendHend
- Newbie
- Apr 22, 2014
- 8 posts
- , ON
Yes that is how my group calculated. How did you structure your report? What is the strategic alternatives?flyguy1104 wrote: ↑Just trying to have better understanding on this
Revenue: The new revenue - lost on sales
Expense: additional cost - saving on the salary ( lay offed 90 people in total)
Then calculate the use NPV in net earing comparing with initial 10 M investment. Is this how you calculated your NPV?
- Fluid
- Deal Addict
- Jul 7, 2008
- 1643 posts
- 563 upvotes
- Toronto
I treated it as just management saying that. How many cases have we done, where somebody in the case boasts, "This option will be extremely profitable for us," only to have a proper analysis show that the NPV is negative.
As for the overhead allocation, I just took the costs and made assumptions on which could be variable, and which could be fixed. My allocation rate was based on the number of units.
- Pho6
- Sr. Member
- Oct 16, 2008
- 997 posts
- 182 upvotes
- Toronto
Downloadable games... had a ridiculously negative NPV.... made all the assumptions i could lol
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