Join Susan Glass as she address the new lease standards, including both IFRS 16 and ASC 842. She will begin by briefly reviewing the new standards, including how the international and U.S. standards differ from each other and from current standards, considering the impact on the income statement, balance sheet, cash flow and key ratios/metrics. We will then delve into the impact of the new standards on DCF analyses, beta, the cost of equity, the weighted-average cost of capital, and trading multiples, focusing on issues that we will need to consider in current and future valuations. Finally, we will review a sum-of-the-parts approach that might be helpful when valuing companies with multiple leased properties. Some of the questions to be addressed include: Will unlevered betas change? Will levered betas change? Why or why not? What additional factors do we need to consider when assessing DCF terminal values? Do we need to adjust trading multiples and, if so, how? Should value change? Will value change? And… How on earth do I make my life easier?
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