How do you interpret investment banking — fair value of contingent consideration?

Increases often suggest that acquired businesses are performing well, potentially leading to higher future payouts.

How does investment banking — fair value of contingent consideration compare across companies?

Common for firms with active M&A strategies involving earn-out structures.

Evercore EVR Investment Banking — Fair Value Of Contingent Consideration

Discontinued — last reported Q4 '20

Similar metrics at other companies

BROVarious — Business Acquisitions Contingent Consideration At Fair Value

$3.21M+58.9%

BRORetail — Business Acquisitions Contingent Consideration At Fair Value

$9.82M+305%

BROServices — Business Acquisitions Contingent Consideration At Fair Value

$1.68M—

MTZ

MTZPower Delivery — Estimated fair value of contingent consideration

$31M—

BRONational Programs Divisions — Business Acquisitions Contingent Consideration At Fair Value

$3.32M—

BROWholesale Brokerage — Business Acquisitions Contingent Consideration At Fair Value

$3.09M—

Other financials

Income statement

See full

Revenue$1.4B+100%

Net income$301.2M+106%

EPS (diluted)$7.20+107%

Balance sheet

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Cash & equivalents$996.1M+77.0%

Total debt$1.1B+29.6%

Total equity$1.8B+18.3%

Total assets$4.3B+31.9%

Cash flow

See full

Operating cash flow-$225.9M+58.9%

CapEx$3.1M-84.2%

Free cash flow-$229.0M+59.8%

Valuation

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Market cap$14.38B+51.3%

Enterprise value$14.48B+47.3%

P/E19.3×-2.4×

P/S3.2×+0.1×

Profitability

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Net margin16.4%+2.2pp

FCF margin33.4%+11.8pp

Returns & leverage

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Return on equity45.4%+15.7pp

Debt / equity0.6×+0.1×

Current ratio2.8×-0.5×

Where this comes from

Reported directly by Evercore in its filing.

Tagged under the XBRL concept evr:ChangesToFairValueOfContingentConsideration.

The official record: Evercore’s 10-K, filed February 25, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does investment banking — fair value of contingent consideration mean?: The estimated value of future earn-out payments owed to sellers of acquired companies.
How do you interpret investment banking — fair value of contingent consideration?: Increases often suggest that acquired businesses are performing well, potentially leading to higher future payouts.
How does investment banking — fair value of contingent consideration compare across companies?: Common for firms with active M&A strategies involving earn-out structures.