Monday, January 21, 2019
Differences in Earnings Releases and 10-Ks

Wednesday, January 16, 2019
The Importance of Textual Analysis

Tuesday, January 8, 2019
A Look at Climate Change Disclosures

Wednesday, January 2, 2019
Quants: Point-in-Time Data for Backtesting

Friday, December 28, 2018
Now Showing: Controls & Procedures

Thursday, December 27, 2018
A Reminder on Non-GAAP Reporting Rules

Monday, December 17, 2018
Researching PG&E’s Wildfire Risk

Wednesday, December 12, 2018
Tracking Brexit Disclosures

Thursday, December 6, 2018
Campbell Soup: Looking Behind the Label

Sunday, December 2, 2018
SEC Comment Letters: The Amazon Example

Wednesday, November 28, 2018
Measuring Big Pharma’s Chemical Dependency

Monday, November 26, 2018
Analysts, Can You Relate? A True Story

Monday, November 19, 2018
Digging Up Historical Trend Data: Quest Example

Sunday, November 11, 2018
Cost of Revenue, SG&A: Q3 Update

Monday, November 5, 2018
Lease Accounting: FedEx vs. UPS

Saturday, November 3, 2018
New Email Alerting Powers

Wednesday, October 31, 2018
PTC and Two Tales of Revenue

Tuesday, October 30, 2018
10-K/Q Section Text Change Detection

Sunday, October 28, 2018
Finding Purchase Price Allocation

Sunday, October 21, 2018
Charting Netflix Growth in Three Ways

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Quick Analysis of MSFT buying LNKD
Monday, June 13, 2016

So someone pulled the trigger on a purchase of a social media firm. Microsoft announced a deal to acquire Linked IN this morning for $26.2 billion.

Here are some initial data on the purchase:

Purchase Price $26.2 Billion

Per Share (based on 2015 End of Year diluted shares out): $203.06

What did Microsoft buy in terms of fundamentals?

Linked in ROE = -3.72%

Adjusted ROE = -11.7%

Return on Net Operating Assets = 24.8%

Return From Leverage = -15.2%

Return from Other = -21.3%

A hefty price to pay no doubt, but at least the operations are profitable.

** All metrics were run using Calcbench tools. The percentages were developed using the calcbench excel add-in, along with a valuation model that we have developed.

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