VISTA Operating Guide

February 2017
What VISTA does

► In summary, VISTA assists in estimating values for a client (a

“Subject Company”) by:
► The Discounted Cash Flow Method

► The Guideline Public Company Method

► The Guideline Transactions Method

► The Subject Company data used in VISTA are based on information

from the client, such information typically not available publicly
► Comparative information for the three approaches are primarily from
data for the Guideline Public Companies from Capital IQ
► The Appendix has a layout of the workflow in VISTA
► VISTA requires Excel 2010 or later and Capital IQ.

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Finding VISTA

► VISTA is posted in the Global V&BM Community Site

► https://share.ey.net/sites/vbm/SitePages/Global%20Valuation%20and%20Business
%20Modelling%20Community%20Site.aspx
► Page down to the screen below the opening screen and click
“Platforms, Models and Templates”. Find it in the list of templates.

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Opening VISTA

► Always use the master version of VISTA from the V&BM site to start a
new valuation project
► This ensures that the version you are using has the latest updates

► There is a “splash” welcome message from the model

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Opening VISTA

► There is a second form to:

► Select the debt setting for the WACC

► Select the Beta levering setting

► The Bayesian adjustment is on

by default

► This second form appears only

when you are opening the master
copy. It will not appear when you
open a model that you have used
and saved on your own drive.

► You can reset these settings later from

within the model

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Notes on these settings

► How to treat pension obligations for total debt calculations

► In the US, pension accounts can appropriately be included in the
calculation of total debt as they are debt-like obligations. However,
the standard Capital IQ formula for Total Debt does not include
pension liabilities. There are no specific EY guidelines or
recommendations regarding the treatment of total debt.
► Using Bayesian adjustments
► It is a best practice to apply the Bayesian adjustment to the betas
as it is the assumption that betas will trend back to the normalized
level of systematic risk over time. (A Bayesian adjusted beta is 2/3
of the raw beta + 1/3 of a beta of 1.)

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Modeling notes on VISTA

► All designated input cells are formatted with a yellow background

► The worksheet tabs that are yellow have inputs
► VISTA has several custom shortcut keys. To make sure they do not
conflict with Capital IQ’s keys, turn off the latter’s by
► Capital IQ>Settings>Settings, General (near bottom of list on the
left), Check checkbox “Disable Capital IQ Shortcuts”

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Modeling notes on VISTA

► VISTA has its own custom ribbon (the Excel menu across the top of
the screen)
► You can to the valuation work without using the ribbon controls

► The ribbon controls have utilities for working with the model

► BUT please use the custom ribbon controls for printing

► The print macro automatically sets the margins for printing, and also
hides any rows that have zero entries.
► It also allows printing with a “Table of Contents” (the TOC)

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At the START page

► The typical valuation work will involve a privately held company, i.e.,
there is no Capital IQ data
► Enter the subject company name, project name and Valuation date
► Enter the number of forecast years, date and other settings (currency,
draft print mode setting)
► The number of forecast years does not include any stub year (the
remaining part of the year of valuation that is still a forecast)
► Amortization and tax settings
► Equity control premium
► Days in the year setting for DCF discounting factors
► Default is Actual/Actual (actual number of days in the month/actual
number of days in the year)

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Entering the subject company data

► Once you have entered the dates for the financial data in the START
worksheet, go to the yellow tabs for
► INC STAT Hist Input

► BAL SHEET Hist Input

► Where you have no data, leave the input cell blank

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If the subject company is public

► You can download the data from Capital IQ by clicking the button “Get
Public Subject Co Data”

► In the form that appears,

► Enter the ticker
► If you do not know the ticker, click “Look up ticker”, Then type in the
partial or full name your company name, click Lookup and select from
the list of tickers that appears
► Select the regional labeling (model will display “EV” or “TIC”), then
OK
►

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Defaults in the Capital IQ downloads

► VISTA sets the following defaults for the downloads

► Data timing
► The default is for “P” or period. This means Capital IQ will download
whatever data is available at the specified period.
► Report type
► Data is as of the “L” (Latest).
► Currency
► All downloads are at the currency of the subject company (SC)
► GPCs in “foreign” currencies are converted to the SC currency at the
current (“C”) spot rate as of the valuation date across all historical
years.
► These settings allow a visual comparison of the numbers on an “apples to
apples basis” (i.e., the same magnitude)
► Ratios of are calculated on the basis of the original relative numbers,
without any FX effects

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Downloading Guideline Public Company
(GPC) data: Manually defining the GPCs
1. Enter the tickers (up to 25) in the DATA GPC worksheet.
2. Click on the “Download Cap IQ Data” button
3. Leave “Company Ticker for Auto Comps” BLANK
a) If this has a ticker, then the
download will run as an
“Auto Comp” (see next page)
4. The Download currency should be
the same as the subject company’s
5. Select the regional labeling
6. Select the indices to use for betas
7. Check the “Alphabetize…” checkbox
if you want to see the GPCs listed
alphabetically by their names
8. Click “OK”

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Downloading GPC data:
Using the Capital IQ “Auto Comps”
1. Click on the “Download Cap IQ Data” button
2. Enter a ticker in the “Company Ticker for Auto Comps”. Capital IQ will
use this company to derive the ten GPCs for the auto-comps run.
a) Capital IQ will not download
this company’s data
b) This entry is the switch to run
the Auto Comps
c) Auto Comps will fill in 10 tickers.
Note: If you already have more
than 10 ticker, the Auto Comps
will overwrite the first 10. Be
careful with working with a
previously alphabetized list when you run Auto Comps
3. The other settings work the sameway as described on the last page
4. Click “OK”

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Prospective Financial Information (PFI)
inputs for the subject company

► Develop the subject company’s future financial performance in the

PFI INPUTS worksheet

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Prospective Financial Information (PFI)
inputs

► The worksheet includes DCF terminal value assumptions at the top

► Forecasts can be specified as hard-coded numbers or as growth or

margin percentage
► By default, the PFI forecasts have “auto fill” – they are automatically
set to the growth and margins in the latest I/S and B/S data
► The first period in the Revenue is based on LTM annual growth, to
the extent that it is available. If it is not, the Revenue will be based
on the growth rate in the last fiscal year.
► The last column (gray) shows the values that will be used for the
normalized terminal period in the DCF
► You should make sure that you exercise judgment in specifying the
forecast numbers to use

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WACC and TIC inputs

For DCF
► Risk free rate

► Debt/Market equity and tax settings

► Betas

► Choice of four

► Use of the Capital IQ CUSTOM BETA

► Cost of equity and cost of debt for WACC

► Note: Terminal value settings are on PFI Inputs

For Guideline Public Company Method

► Total invested capital

At any time, you can press Ctrl+Shift+H to hide/unhide

rows with no entries

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Guideline Public Company Method:
By range of High and Low

► Specify the Low and High multiples (columns F and H)

► To the right, you will see the multiples from the GPCs in the TIC
Multiples sheet; use these as reference
► Specify the weights for each multiple (Column P)
► Specify the weighting between Low and High (cell L29)

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Guideline Public Company Method:
By single point estimate

► There is a dropdown by which you can set the screen to show a

single point estimate (the dropdown does not print)

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Guideline Transactions Method

► Use the Screening function in the www.capitaliq.com website to target

suitable guideline transactions. Get the transaction ID codes and copy
those into this sheet in VISTA
► Insert rows if you have more than 20 guideline transactions to look at
► Shown above as Grouped to show the equity and TIC premium data

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Guideline Transactions Method: Finding the
Transaction ID in www.capitaliq.com
► Go to Screening tab
► Specify criteria

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Guideline Transactions Method:
By range of High and Low

► Specify the Low and High multiples (columns F and H)

► To the right, you will see the multiples from the Guideline
Transactions Input sheet; use these as reference
► Specify the weights for each multiple (Column P)
► Specify the weighting between Low and High (cell L22)

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Guideline Transactions Method:
By single point estimate

► There is a dropdown by which you can set the screen to show a

single point estimate (the dropdown does not print)
► The weighting automatically becomes 100%, and is shaded gray. This
row will not print out (an “n” appears in column A).

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The ribbon

► VISTA has its own custom ribbon with 6 broad categories

► Setup: Insert Blank Sheet is the most important

► Capital IQ: This is the same as the Capital IQ Refresh Workbook

► Navigation:

► Review: Shortcut keys Ctrl+M and Ctrl+Shift+M are helpful for

tracing precedents and dependents from ranges
► Printing: Always use the VISTA print commands for printing
► These include macros for aligning margins and hiding lines that
contain only 0s
► Printing using the basic Excel print commands will give you printouts
but the formatting may be off

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Adding additional sheets into VISTA

► If you need additional sheets for your inputs or your outputs, click on
the Insert Blank Sheet icon in the ribbon
► You can create as many additional blank sheets as required
► Each sheet has a gray border that marks the print area
► Put your data elements within the gray border

► Each new sheet works with the printing protocols in the model

► Put in your own “n” in column A for those rows that you want be
hidden during printing.
► Type in a hard-coded “n” or create a formula to return this when the
row is blank

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Adding additional sheets into VISTA

► Grid View On/Off turns on and off the gridlines in the worksheets
► The default is Off

► Adjust Zoom is a quick way to adjust all the sheets in the model to a
particular percentage zoom

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Checking for errors

► Click on “Error Check” to see the Error

Check sheet. Any Excel errors (e.g.
#REF!) detected in the model will show up
here and the location by sheet name will be
indicated.
► You double-can click on the sheet name in
Column D to go directly to that sheet
► Any errors detected will also prompt a
warning message to appear in the model’s
worksheets just under the main headings.
Anytime you see this, please an Error
Check and correct the source of the error.

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Tracing precedents and dependents

► VISTA has the sequences for tracing precedents (shortcut is

Ctrl+Shift+M) and tracing dependents (Ctrl+M)
► You can trace to and from ranges with these controls
► Excel’s native commands work only on single cells

► Ctrl+Shift+W will remove all arrows

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Writing notes into VISTA

► The ribbon command “Write a Note” will provide you with a user form
into which you can write a note regarding particular points in the
model
► Put the cursor in the relevant cell and the note will mark this
location in addition to the note
► Click “Goto/Return from Note” to go back and forth between the
model and the Note worksheets
► This feature is helpful for describing particular points of analysis that
you are using, as a reminder to yourself.

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Printing

► Print Current Sheet(s)

► Quickly print the current sheet or multiple sheets that you have
selected by using the combination of Shift+click or Ctrl+click

TOC = Table of Contents

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Printing

► Gather Sheets to Print

► Select multiple tabs and then click “Gather..” These sheets are
brought between the two magenta tabs “TOC Print from here>>”
and “<<to this bookend” (see above, right).
► You can also do this step manually by dragging the sheets between
these two tabs
► The order of the printout will be the order of the tabs from the left to
right between the magenta tabs
► Print Selection
► Click “Print Selection” to see the TOC (Table of Contents). Change
the exhibit numbering as necessary by the form that appears. To
call up that form, click “Auto-Number Printouts”

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Printing

► Clear Print List in TOC

► This moves all the sheets between the magenta tabs out, reorders
them into the default order, and clears out the TOC
► Use Last Print List
► Click this to use the same printing order if you have somehow
cleared the TOC
► Auto-Number Printouts
► In the list of outputs appearing in the TOC, you can number them
sequentially, with the option of naming the first batch “Exhibit 1”
and the second “Workpaper 1”. Labels and starting numbers can
be custom set.

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Printing

► As a final step, check the checkboxes for the printout options

► Print Cover. Make edits to update the titles if you are printing the
cover
► Print Table of Contents

► The DRAFT setting puts the “draft” notation on the cover as well as
the footers in the printouts.
► Page zoom always as 70. This ensures consistency of font size
from printout to printout

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Saving

► There is no separate way to save the inputs to the model

► So save a particular scenario, save the model in full using the usual
Excel commands
► VISTA takes a few seconds more to save because through a
sequence of hiding the sheets prior to saving.

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Shortcut keys in VISTA

Ctrl+Shift+C: Copies across yellow input cells. Doesn’t work with non-
yellow cells
Ctrl+Shift+H: Toggles to hide/unhide rows with “n” in column A
Ctrl+Shift+M: Traces precedents, can be done for a range, not just
one cell
Ctrl+M: Traces dependents, same
Ctrl+Shift+W: Clears precedents/dependents arrows

Ctrl+Shift+S: Refreshes Capital IQ within the highlighted range

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Feedback

► Send feedback through the V&BM community site. The Feedback link
is on the left
► Select the issue, and then fill in the feedback form and click Submit.
► Please attach the VISTA model that is showing the issue when
submit your feedback
► Modeling contact: John Tjia, [email protected], +1 (212) 773-1537

Page 36 1 January 2014 Presentation title

Appendix

Page 37 1 January 2014 Presentation title

Getting the Capital IQ Excel plug-in

► VISTA requires Capital IQ for downloads of the Guideline Company

data
► You must have the Capital IQ Plug-In, available from the Self-
Service Portal>Request Services>Get software. Search for
“Capital IQ.” The latest version is “Capital IQ 9.1”.
► Once this is loaded, you will see a “Capital IQ” tab in Excel

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Checking that the connection is enabled

► Click on “Capital IQ” tab in your Excel screen

and then “Settings” and “Settings”
► In the form, select Proxy Setting in the left list
► In the dropdown, change from the current setting
“Use Internet Explorer Settings” to either one of the other two
► Then change back to the original “Use Internet Explorer Settings”
► The “Apply” button at the bottom
will become enabled
► Click the “Apply” button

Page 39 16 February 2017

Checking that the connection is enabled
(contd.)

► Your Capital IQ plug-in is working properly when you see the

“Connection established message in the form.

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Workflow in VISTA:
Begin with Subject Company inputs

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Workflow in VISTA: Getting
Guideline Public Company (GPC) data

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 Workflow in VISTA: PFI (projections) for the
Subject Company for DCF

► Note: The “Regional Settings” can change the term “Total

Invested Capital TIC)l” to change to “Enterprise Value
(EV)”. “Leverage” can also be changed to “Gearing”.

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Workflow in VISTA: DCF

Page 44 16 February 2017

Workflow in VISTA:
The Guideline Public Company Method

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Workflow in VISTA:
The Guideline Transactions Method

Page 46 16 February 2017

Thank you

Page 47 1 January 2014 Presentation title