Growth Breakdown

7/29/2019 Growth Breakdown

1/23

Input page

Market inputs for your company

Market Capitalization = $70,000.00

From the balance sheet This year Last year

Book value of equity = $5,228.00 $4,162.00

Total Debt Outstanding = $1,215.00 $1,317.00

Cash & Marketable Securities = $1,512.00 $1,785.00

From the income statement

Revenues $3,711.00 $1,974.00

Operating income (EBIT) = $1,695.00 $1,032.00

Effective tax rate = 40%

Net Income $900.00

Your growth inputs

Expected growth rate in operating income= 11.42%

Return on Invested capital on growth = 27.53%Length of growth period = 10

Your cost of capital inputs

Cost of equity = 12.50%

Cost of capital = 11.42%

Riskfree rate = 2.00%

Intrinsic Value

Value of assets in place = $8,905.43

Value added by future growth = $5,951.45

Intrinsic enterprise value $14,856.88Intrinsic equity value $15,153.88

Growth Analysis

Price you are paying for growth = $60,797.57

Value of this growth = $5,951.45

Price of growth/ Value of growth 1021.56%

Total Assets in Place

P/E 77.78 10.22

P/BV 13.39 1.76EV/Sales 18.86 2.40

EV/Invested Capital 14.20 1.81

If you are interested in the mechanics of the valuation, here are the cash flows (for up to 1

Reinvestment Rate = 0%

Actual


2/23

0 1

After-tax Operating Income $1,017.00

- Reinvestment $0.00

FCFF $1,017.00

Terminal year AT Oper income (in year n+1) $1,017.00 $912.76

Terminal year reinvestment (in year n+1) $0.00 $5,885.32

Terminal year FCFF (in year n+1) $1,017.00

Terminal Value (in year n) $8,905.43 $3,020.11

Value today $8,905.43 $8,905.43

Reinvestment Rate = 41.48% ! Expected growth rate in

Reinvestment Rate (stable growth) 17.51% ! Assume stable growth r

0 1

After-tax Operating Income $1,133.14- Reinvestment $421.85 $470.03

FCFF -$421.85 $663.11

Terminal year operating income $3,058.81

Terminal year FCFF $2,523.12

Terminal Value $26,784.69

Value today $14,856.88

Growth Scenario - No Growth Scenario 5,951.45


3/23

Measures of profitability, leverage & growth

ROE = 21.62%

ROIC = 27.53%

Net margin = 24.25%

Pre-tax operating margin = 27.41%

D/E ratio (book) = 23.24%

D/E ratio (market) = 1.74%

Growth rate (revenue) 87.99%

Growth rate (EBIT) 64.24%

To solve for the implied growth rate in your market value, follow these steps:

1. Open the Goal Seek function in Excel (under Tools)2. Set cell B24 to the value in cell B28 by changing

cell B14.

3. You should see the implied growth rate in B14.

Market Value

Market value of equity $70,000.00

Enterprise value $69,703.00

Growth Total Assets in place Growth

67.55 16.84 10.22 6.61

11.63 2.90 1.76 1.1416.46 4.00 2.40 1.60

12.39 3.01 1.81 1.21

years of high growth if your growth period exceeds 10 years, this detailed cash flow table

Intrinsic

Breakdown of multiples

No Growth Scenario


4/23

2 3 4 5 6

$1,017.00 $1,017.00 $1,017.00 $1,017.00 $1,017.00

$0.00 $0.00 $0.00 $0.00 $0.00

$1,017.00 $1,017.00 $1,017.00 $1,017.00 $1,017.00

$819.21 $735.24 $659.89 $592.25 $531.55

high growth rate/ Return on Invested capital in high growth

ate = riskfree rate; return on capital in stable growth = cost of capital

2 3 4 5 6

$1,262.55 $1,406.73 $1,567.38 $1,746.37 $1,945.81$523.71 $583.52 $650.15 $724.40 $807.13

$738.84 $823.21 $917.22 $1,021.97 $1,138.68

Growth Scenario


5/23

will not work)


6/23

7 8 9 10

$1,017.00 $1,017.00 $1,017.00 $1,017.00

$0.00 $0.00 $0.00 $0.00

$1,017.00 $1,017.00 $1,017.00 $1,017.00

$477.07 $428.17 $384.28 $344.90

7 8 9 10

$2,168.02 $2,415.61 $2,691.47 $2,998.83$899.30 $1,002.00 $1,116.43 $525.19

$1,268.72 $1,413.61 $1,575.04 $2,473.64


7/23

Industry Name Number of firms Annual Average Revenue growth - Last 5 years

Advertising 31 16.76%

Aerospace/Defense 64 9.41%

Air Transport 36 8.77%

Apparel 57 5.83%

Auto Parts 51 23.94%Automotive 12 1.66%

Bank 426 0.00%

Bank (Midwest) 45 0.00%

Beverage 34 -0.59%

Biotechnology 158 26.94%

Building Materials 45 2.82%

Cable TV 21 1.53%

Chemical (Basic) 16 33.40%

Chemical (Diversified) 31 9.21%

Chemical (Specialty) 70 25.69%

Coal 20 16.91%

Computer Software 184 14.88%

Computers/Peripherals 87 10.93%

Diversified Co. 107 17.24%

Drug 279 34.97%

E-Commerce 57 21.87%

Educational Services 34 17.27%

Electric Util. (Central) 21 4.81%

Electric Utility (East) 21 -3.29%

Electric Utility (West) 14 1.24%

Electrical Equipment 68 25.14%

Electronics 139 12.50%

Engineering & Const 25 4.58%

Entertainment 77 10.49%

Entertainment Tech 40 14.78%

Environmental 82 9.90%

Financial Svcs. (Div.) 225 14.51%

Food Processing 112 9.48%

Foreign Electronics 9 17.51%Funeral Services 6 1.09%

Furn/Home Furnishings 35 1.89%

Healthcare Information 25 11.71%

Heavy Truck & Equip 21 7.38%

Homebuilding 23 -9.29%

Hotel/Gaming 51 7.52%


8/23

Household Products 26 16.13%

Human Resources 23 0.01%

Industrial Services 137 8.39%

Information Services 27 16.56%

Insurance (Life) 30 0.00%

Insurance (Prop/Cas.) 49 17.00%

Internet 186 12.44%

IT Services 60 7.21%

Machinery 100 13.57%

Maritime 52 5.93%

Med Supp Invasive 83 6.53%

Med Supp Non-Invasive 146 7.18%

Medical Services 122 4.92%

Metal Fabricating 24 10.76%

Metals & Mining (Div.) 73 31.59%

Natural Gas (Div.) 29 8.90%

Natural Gas Utility 22 -0.95%

Newspaper 13 -5.01%

Office Equip/Supplies 24 10.81%

Oil/Gas Distribution 13 12.65%

Oilfield Svcs/Equip. 93 17.02%

Packaging & Container 26 9.09%

Paper/Forest Products 32 10.88%

Petroleum (Integrated) 20 20.81%

Petroleum (Producing) 176 32.22%Pharmacy Services 19 11.95%

Pipeline MLPs 27 22.83%

Power 93 43.06%

Precious Metals 84 32.31%

Precision Instrument 77 23.36%

Property Management 31 19.80%

Public/Private Equity 11 39.94%

Publishing 24 -6.93%

R.E.I.T. 5 0.01%

Railroad 12 12.29%Recreation 56 6.56%

Reinsurance 13 0.00%

Restaurant 63 2.45%

Retail (Hardlines) 75 3.83%

Retail (Softlines) 47 6.18%

Retail Automotive 20 11.09%


9/23

Retail Building Supply 8 15.38%

Retail Store 37 8.85%

Retail/Wholesale Food 30 8.23%

Securities Brokerage 28 4.59%

Semiconductor 141 41.30%

Semiconductor Equip 12 55.88%

Shoe 19 3.50%

Steel 32 30.89%

Telecom. Equipment 99 4.18%

Telecom. Services 74 14.96%

Telecom. Utility 25 -6.90%

Thrift 148 0.00%

Tobacco 11 6.61%

Toiletries/Cosmetics 15 2.56%

Trucking 36 9.52%

Utility (Foreign) 4 4.92%

Water Utility 11 5.43%

Wireless Networking 57 10.71%

Total Market 5891 14.80%


10/23

Pre-tax Operating Margin After-tax ROC Average effective tax rate Unlevered Beta

10.27% 10.54% 10.73% 1.75

10.16% 18.53% 20.72% 1.03

8.78% 16.45% 20.54% 1.10

10.97% 14.02% 16.08% 1.22

6.49% 15.82% 18.99% 1.596.99% 6.96% 24.07% 0.96

NA NA 15.97% 0.38

NA NA 17.77% 0.73

20.45% 12.95% 19.14% 0.77

-7.79% -13.33% 2.49% 1.16

4.17% 2.58% 11.17% 0.89

19.58% 8.80% 27.35% 0.98

12.09% 13.66% 20.90% 1.24

13.20% 13.81% 21.73% 1.39

11.10% 12.25% 17.58% 1.15

15.94% 15.26% 12.75% 1.32

31.35% 45.06% 12.27% 1.18

14.15% 32.09% 11.77% 1.33

14.09% 8.01% 15.55% 0.71

21.91% 15.02% 5.36% 1.08

14.39% 13.08% 12.33% 1.08

20.80% 34.34% 25.17% 0.92

17.72% 6.38% 31.82% 0.48

19.13% 6.89% 33.14% 0.49

16.79% 6.11% 31.30% 0.49

13.19% 15.03% 17.02% 1.35

5.99% 15.72% 10.36% 1.08

4.72% 13.58% 26.26% 1.39

17.72% 9.45% 15.38% 1.31

10.48% 11.69% 11.59% 1.48

15.22% 7.56% 11.71% 0.60

43.49% 5.95% 19.18% 0.50

9.08% 11.88% 20.00% 0.77

5.27% 7.83% 35.12% 1.2415.64% 7.81% 30.84% 0.85

6.43% 9.50% 20.43% 1.65

12.11% 9.45% 22.19% 1.20

9.13% 10.88% 20.62% 1.48

-1.56% -2.09% 5.12% 1.02

12.61% 6.95% 14.53% 1.28


11/23

17.38% 14.52% 25.12% 0.95

1.91% 7.67% 25.35% 1.40

-21.40% -53.50% 19.03% 0.81

19.33% 10.83% 18.93% 0.89

NA NA 28.04% 1.54

NA NA 19.36% 1.01

18.25% 32.75% 6.87% 1.24

14.43% 26.95% 19.15% 1.14

11.05% 12.60% 22.15% 1.14

14.81% 4.76% 5.55% 0.58

22.22% 15.88% 11.86% 0.80

6.48% 19.24% 12.73% 1.07

11.11% 18.55% 19.93% 0.78

15.07% 14.78% 26.55% 1.63

31.57% 19.48% 11.04% 1.28

28.94% 7.10% 21.98% 1.06

12.80% 8.09% 30.16% 0.46

14.59% 11.05% 25.13% 1.42

6.65% 10.36% 21.05% 1.04

18.45% 6.83% 13.70% 0.65

15.11% 8.54% 17.39% 1.39

10.12% 10.40% 24.23% 0.88

12.01% 11.01% 10.61% 0.96

9.76% 10.08% 27.41% 1.12

25.74% 13.50% 11.14% 1.135.11% 11.18% 24.67% 1.00

8.95% 8.60% 6.37% 0.72

14.54% 7.56% 8.66% 0.65

33.30% 9.57% 7.51% 1.14

10.74% 12.10% 13.94% 1.33

15.63% 5.18% 18.59% 0.59

-2.58% -0.14% 3.79% 1.62

12.10% 11.38% 18.55% 0.89

129.07% 14.07% 1.04% 1.15

28.43% 11.10% 23.74% 1.2411.51% 8.26% 17.37% 1.11

NA NA 7.22% 1.05

15.82% 20.32% 21.57% 1.19

7.50% 14.99% 23.04% 1.65

9.39% 28.74% 24.64% 1.57

6.88% 9.89% 34.43% 1.12


12/23

8.13% 12.18% 31.39% 0.97

5.84% 13.60% 25.02% 1.14

3.18% 10.38% 31.21% 0.64

48.78% 10.39% 26.22% 0.43

22.76% 28.41% 11.01% 1.69

21.65% 40.44% 15.17% 2.42

11.34% 27.41% 24.31% 1.38

5.83% 5.94% 21.03% 1.40

10.87% 23.30% 13.16% 1.28

22.74% 13.70% 14.22% 0.82

15.83% 8.34% 29.42% 0.54

NA NA 12.43% 0.75

20.61% 27.98% 31.03% 0.78

10.85% 19.54% 20.30% 1.20

6.37% 9.07% 25.48% 1.08

11.60% 4.56% 26.07% 0.48

26.61% 5.42% 35.22% 0.43

-11.47% -18.21% 12.12% 1.12

17.24% 12.21% 15.48% 0.92


13/23

Equity (Levered) Beta Cost of equity Std deviation in stock prices Pre-tax cost of debt

2.02 14.09% 101.29% 5.87%

1.10 8.49% 61.32% 3.37%

1.21 9.21% 64.80% 3.37%

1.30 9.71% 88.82% 4.37%

1.70 12.13% 80.58% 4.37%1.59 11.47% 68.91% 3.87%

0.77 6.52% 61.15% 3.37%

0.93 7.50% 55.60% 3.37%

0.88 7.20% 66.05% 3.87%

1.03 8.09% 113.11% 5.87%

1.50 10.96% 78.83% 3.87%

1.37 10.15% 50.77% 3.37%

1.36 10.08% 49.27% 2.87%

1.51 11.02% 56.31% 3.37%

1.28 9.57% 71.60% 3.87%

1.53 11.08% 55.52% 3.37%

1.04 8.17% 82.03% 4.37%

1.30 9.71% 97.69% 4.87%

1.14 8.76% 75.00% 3.87%

1.12 8.63% 103.44% 5.87%

1.03 8.08% 88.13% 4.37%

0.83 6.91% 78.24% 3.87%

0.75 6.41% 23.37% 2.37%

0.70 6.08% 18.30% 2.37%

0.75 6.40% 19.85% 2.37%

1.33 9.89% 67.76% 3.87%

1.07 8.31% 89.93% 4.37%

1.22 9.26% 65.03% 3.87%

1.63 11.72% 108.37% 5.87%

1.23 9.32% 76.91% 3.87%

0.81 6.73% 92.14% 4.87%

1.31 9.76% 82.27% 4.37%

0.91 7.39% 60.68% 3.37%

1.09 8.47% 35.40% 2.87%1.14 8.73% 39.35% 2.87%

1.81 12.81% 80.90% 4.37%

1.17 8.95% 65.79% 3.87%

1.80 12.76% 69.92% 3.87%

1.45 10.62% 70.00% 3.87%

1.74 12.37% 79.09% 3.87%


14/23

1.07 8.32% 62.24% 3.37%

1.24 9.34% 78.27% 3.87%

0.93 7.51% 74.43% 3.87%

1.07 8.35% 48.10% 2.87%

1.58 11.43% 53.35% 3.37%

0.91 7.37% 37.88% 2.87%

1.09 8.45% 117.09% 5.87%

1.06 8.25% 69.45% 3.87%

1.20 9.12% 57.21% 3.37%

1.40 10.30% 69.19% 3.87%

0.85 6.99% 79.18% 3.87%

1.03 8.09% 84.89% 4.37%

0.91 7.39% 76.26% 3.87%

1.59 11.48% 68.98% 3.87%

1.33 9.89% 104.38% 5.87%

1.33 9.87% 48.77% 2.87%

0.66 5.85% 24.90% 2.37%

1.76 12.53% 90.74% 4.87%

1.38 10.18% 64.26% 3.37%

0.96 7.68% 56.61% 3.37%

1.55 11.24% 62.37% 3.37%

1.16 8.86% 41.59% 2.87%

1.36 10.08% 93.84% 4.87%

1.18 9.01% 38.99% 2.87%

1.34 9.97% 88.11% 4.37%1.12 8.63% 59.43% 3.37%

0.98 7.81% 34.90% 2.87%

1.35 10.03% 97.19% 4.87%

1.15 8.79% 90.87% 4.87%

1.28 9.57% 65.33% 3.87%

1.13 8.72% 82.21% 4.37%

2.18 15.01% 77.54% 3.87%

1.25 9.40% 64.98% 3.37%

1.47 10.73% 49.61% 2.87%

1.44 10.56% 42.95% 2.87%1.45 10.62% 70.55% 3.87%

0.93 7.47% 30.40% 2.87%

1.27 9.52% 68.37% 3.87%

1.77 12.57% 92.79% 4.87%

1.44 10.55% 60.91% 3.37%

1.37 10.13% 52.02% 3.37%


15/23

1.04 8.18% 37.61% 2.87%

1.29 9.64% 67.71% 3.87%

0.75 6.39% 40.02% 2.87%

1.20 9.11% 44.31% 2.87%

1.50 10.94% 70.52% 3.87%

1.79 12.70% 68.70% 3.87%

1.25 9.43% 55.52% 3.37%

1.68 12.03% 56.94% 3.37%

1.02 8.00% 87.77% 4.37%

0.98 7.78% 68.58% 3.87%

0.88 7.16% 60.40% 3.37%

0.71 6.17% 53.93% 3.37%

0.85 7.03% 41.53% 2.87%

1.30 9.73% 60.34% 3.37%

1.24 9.38% 59.88% 3.37%

0.96 7.68% 32.68% 2.87%

0.66 5.85% 18.89% 2.37%

1.27 9.54% 75.03% 3.87%

1.15 8.81% 75.08% 3.87%


16/23

Market Debt/Capital Cost of capital Sales/Capital EV/Sales EV/EBITDA EV/EBIT Price/Book

30.20% 10.90% 1.42 1.14 7.90 11.09 1.83

20.42% 7.17% 2.53 0.93 7.41 9.14 2.75

19.56% 7.80% 2.40 1.78 12.91 20.22 8.24

15.53% 8.61% 1.85 1.19 8.65 10.83 2.46

21.66% 10.07% 3.18 0.59 6.19 9.05 2.0857.37% 6.22% 1.41 0.73 5.81 10.40 1.05

60.95% 3.78% NA NA 4.37 4.37 0.85

37.31% 5.46% NA NA 4.57 4.57 1.29

20.96% 6.18% 0.83 3.03 12.04 14.80 3.61

11.88% 7.55% 0.97 4.49 NA NA 3.19

48.54% 6.77% 0.82 1.22 10.99 29.23 0.99

40.50% 6.86% 0.71 2.21 6.25 11.27 2.31

21.47% 8.29% 1.43 1.52 8.90 12.60 2.64

18.28% 9.37% 1.48 1.62 8.95 12.28 2.96

17.46% 8.31% 1.56 1.56 9.84 14.06 3.08

22.42% 9.05% 1.22 1.78 7.34 11.14 2.77

6.97% 7.79% 1.83 3.07 8.64 9.81 3.74

9.28% 9.08% 2.96 1.39 8.11 9.85 3.94

50.55% 5.50% 0.68 2.11 11.37 14.99 2.12

13.39% 7.95% 0.89 2.85 9.35 13.02 2.73

6.02% 7.75% 1.20 4.55 22.08 31.60 4.55

10.97% 6.41% 2.66 1.14 4.62 5.47 2.69

46.28% 4.10% 0.55 2.26 7.88 12.76 1.57

39.82% 4.23% 0.54 2.51 8.56 13.14 1.78

45.81% 4.12% 0.54 2.19 7.56 13.03 1.36

11.24% 9.04% 1.51 1.54 9.12 11.68 2.33

18.25% 7.28% 3.51 0.47 5.82 7.84 1.65

10.71% 8.51% 4.05 0.46 7.36 9.76 1.73

29.07% 9.34% 0.78 1.89 8.03 10.67 1.71

8.89% 8.70% 1.29 1.87 11.63 17.81 1.97

30.41% 5.57% 0.80 2.07 8.77 13.58 2.22

71.55% 4.65% 0.18 6.67 14.36 15.33 1.79

22.80% 6.16% 1.82 1.08 9.54 11.93 2.58

29.62% 6.47% 2.43 0.37 3.48 7.03 0.9036.14% 6.20% 0.79 1.86 9.13 11.86 1.93

19.61% 10.81% 2.08 0.92 9.68 14.31 2.19

5.97% 8.55% 1.24 3.82 20.77 31.55 4.55

30.39% 9.59% 1.64 1.34 10.54 14.65 3.42

50.07% 6.47% 1.00 1.23 NA NA 1.38

34.24% 8.93% 0.69 2.58 12.46 20.51 2.64


17/23

15.96% 7.32% 1.13 2.21 10.72 12.69 3.33

9.35% 8.68% 6.48 0.29 9.98 14.92 1.71

24.65% 6.23% 2.26 0.85 NA NA 2.40

23.20% 6.81% 0.72 2.94 10.55 15.23 2.97

39.08% 7.76% NA NA 1.32 1.32 0.70

19.10% 6.29% NA NA 95.56 96.01 1.00

2.63% 8.32% 2.25 3.91 17.06 21.41 4.59

5.74% 7.91% 2.61 1.75 9.75 12.15 3.73

16.05% 7.98% 1.53 1.37 9.08 12.41 2.33

63.01% 5.27% 0.35 2.69 9.63 18.14 0.85

13.85% 6.35% 0.92 2.52 9.06 11.36 2.58

11.52% 7.46% 4.00 0.73 9.23 11.34 2.82

33.09% 5.71% 2.51 0.68 5.16 6.15 2.09

13.41% 10.25% 1.36 1.67 8.91 11.06 2.30

12.36% 9.10% 0.89 2.47 6.35 7.83 2.35

27.04% 7.67% 0.41 3.37 6.27 11.63 1.55

40.26% 4.07% 0.94 1.45 8.06 11.36 1.81

31.67% 9.49% 1.23 1.31 6.50 8.99 2.04

38.66% 7.02% 2.26 0.55 5.71 8.25 1.38

36.83% 5.60% 0.47 3.56 12.59 19.28 2.73

18.64% 9.52% 0.76 2.38 9.87 15.78 2.06

34.13% 6.42% 1.48 1.06 7.18 10.51 2.09

37.45% 7.40% 1.12 1.06 5.46 8.83 1.30

16.10% 7.83% 1.78 0.87 5.89 8.87 1.64

19.92% 8.51% 0.71 2.20 5.58 8.53 1.7617.00% 7.51% 3.56 0.53 8.20 10.28 2.19

29.06% 6.04% 0.99 1.97 15.03 21.96 3.12

59.81% 5.78% 0.69 1.48 6.63 10.17 1.06

7.57% 8.35% 0.40 5.33 11.52 16.00 2.15

13.75% 8.58% 1.38 1.64 10.25 15.30 2.20

58.44% 5.16% 0.40 2.85 13.00 18.21 1.36

37.45% 10.26% 0.30 3.43 NA NA 1.02

38.76% 6.54% 1.37 1.15 6.44 9.47 2.20

25.77% 8.41% 0.11 14.13 9.54 10.95 1.89

20.09% 8.79% 0.60 3.44 9.19 12.09 2.6732.75% 7.90% 0.89 1.60 9.11 13.92 1.71

19.06% 6.37% NA NA 22.47 22.47 0.71

11.32% 8.71% 1.82 2.50 12.17 15.82 6.66

19.57% 10.68% 3.00 0.83 7.73 11.06 3.04

5.32% 10.10% 4.94 0.87 6.84 9.30 3.46

27.59% 7.90% 2.22 0.92 10.76 13.40 3.21


18/23

12.33% 7.38% 2.37 1.04 9.74 12.85 3.02

20.37% 8.15% 3.55 0.59 7.45 10.10 2.62

29.25% 5.02% 5.02 0.35 6.73 10.91 2.23

81.15% 3.11% 0.29 3.08 5.97 6.32 0.72

7.70% 10.27% 1.57 2.06 6.19 9.03 2.62

13.20% 11.33% 2.21 0.97 3.78 4.50 1.68

2.13% 9.27% 3.33 1.52 11.64 13.41 3.74

31.69% 8.86% 1.21 0.78 7.08 13.30 0.92

11.48% 7.38% 2.73 1.25 8.46 11.50 2.32

25.42% 6.39% 0.83 1.85 4.80 8.14 1.75

49.02% 4.64% 0.74 1.75 5.33 11.05 1.79

22.68% 5.23% NA NA 3.67 3.67 0.94

15.76% 6.19% 1.84 2.36 10.36 11.44 8.63

17.11% 8.41% 2.70 1.48 11.05 13.67 6.49

21.73% 7.78% 2.16 1.28 10.13 20.05 4.49

60.79% 4.06% 0.58 1.39 5.47 11.95 0.64

44.88% 3.86% 0.30 4.39 11.13 16.48 1.77

21.30% 8.00% 1.14 1.91 NA NA 2.72

31.81% 6.75% 0.97 1.67 7.37 9.70 2.00


19/23

Trailing PE

27.39

34.40

156.14

20.56

15.8310.84

16.69

34.13

22.51

18.87

265.15

12.66

12.17

12.94

15.63

12.09

68.56

38.66

17.94

25.45

192.91

13.83

16.46

20.61

15.54

24.10

14.19

15.95

15.42

23.93

30.21

21.14

20.14

16.6613.98

21.08

59.71

22.63

33.27

45.84


20/23

17.57

57.02

22.05

25.56

18.61

35.02

36.16

21.18

21.51

31.34

43.84

37.04

16.47

18.01

31.32

54.76

15.86

40.89

16.85

43.30

27.58

13.14

26.24

58.87

38.3412.97

27.55

17.92

90.39

32.86

48.20

8.92

104.19

16.98

37.9640.21

47.47

20.03

36.52

45.45

16.22


21/23

22.78

18.78

36.66

24.77

20.90

10.83

14.10

16.46

18.32

16.97

132.35

36.40

14.88

35.50

30.78

1687.02

22.35

38.68

33.67


22/23

Estimation of Current Cost of Capital

Inputs

Equity

Number of Shares outstanding = 2333.90

Current Market Price per share = 38.00$

Unlevered beta = 1.52 Industry average unlevered beta in column G of industry average w

Riskfree Rate = 2%

Equity Risk Premium = 6.00%

Debt

Book Value of Straight Debt = 272.00$

Interest Expense on Debt = 10

Average Maturity = 0

Pre-tax Cost of Debt = 3.65%

Tax Rate = 35%

Book Value of Convertible Debt = 0

Interest Expense on Convertible = 0

Maturity of Convertible Bond = 0

Market Value of Convertible = 0

Debt value of operating leases = 816.91$

Preferred Stock

Number of Preferred Shares = 0Current Market Price per Share= 70

Annual Dividend per Share = 5

Output

Estimating Market Value of Straight Debt = 272.00$

Estimated Value of Straight Debt in Convertible = -$

Value of Debt in Operating leases = 816.91$

Estimated Value of Equity in Convertible = -$

Levered Beta for equity = 1.53

Equity Debt Preferred Stock Capital

Market Value 88,688.31$ 1,088.91$ -$ 89,777.22$

Weight in Cost of Capital 98.79% 1.21% 0.00% 100.00%

Cost of Component 11.19% 2.37% 7.14% 11.09%


23/23

orksheet

Documents

Growth Breakdown