Académique Documents
Professionnel Documents
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Beforeyoustart
Thespreadsheethascircularreasoning.Thisisnotaproblem.Gointocalculationoptions(inexcel)andcheck
theiterationbox.
WhatthemodeldoeThismodelisdesignedtovaluefirmswithoperatingincomethatiseitherpositiveorcanbenormalizedtobe
positive.Itallowsforupto15yearsofhighgrowth,andcanbeusedeitherasa2stageora3stagemodel.
Inputs
Theinputsareinthefollowingpages:
1.Thebulkoftheinputsareinthemasterinputspage.Here,youcaninputthenumbersfromthecurrent
financialstatements,andreviewandchangetheinputsforthevaluation.
2.Ifyouwanttonormalizedoperatingincome,usetheearningsnormalizerworksheet.
3.IfyouhaveR&Doroperatingleases,youwillneedtoinputtherequirednumbersinthoseworksheets.
Important:Beconsistentabouttheunitsyouuse.Ifyouusemillions,usemillionsforallofyourinputs.
Options
Thespreadsheetcanbeusedtovalueacompany,withfixedinputsforahighgrowthphaseanddifferentinputs
forastablegrowthphase(2stagemodel)oritcanbeadjustedtoallowforatransitionphase(3stagemodel).
Toswitchfromonetotheother,enteryesinthemasterinputpagetothequestionofwhetheryouwantthe
inputsadjustedduringthesecondhalfofthehighgrowthphase.
Youcanevenmakeitastablegrowthmodel,bysettingthelengthofthehighgrowthperiodtozero.
Otherworksheets Therearetwootherworksheetsthatyoumightfindusefulattheendofthisspreadsheet
1.Bottomupbetaestimator:willestimateyourleveredbeta,givenanunleveredbeta(whichyouwillhaveto
input.
2.Industryaverages:Here,youcanlookupindustryaveragesforvariablessuchasbeta,returnoncapital,
reinvestmentratesandworkingcapital.
Output
Theoutputiscontainedinthevaluationmodelworksheet.
MODEL
(inexcel)andcheck
benormalizedtobe
ra3stagemodel.
romthecurrent
oseworksheets.
ofyourinputs.
seanddifferentinputs
ase(3stagemodel).
theryouwantthe
ichyouwillhaveto
eturnoncapital,
An apology: I apologize for the number of inputs that are required on this sheet. Many of the inputs are required
If you have negative operating income, you will either have to normalize it to make it positive, or use the highg
MasterInputSheet
DoyouwanttocapitalizeR&Dexpenses?
Doyouwanttoconvertoperatingleasestodebt?
Doyouwanttonormalizeoperatingincome?
No
Yes
No
Inputs
FromCurrentFinancials
CurrentEBIT=
CurrentInterestExpense=
CurrentCapitalSpending
CurrentDepreciation&Amort'n=
Taxrate(forcomputingaftertaxoperatingincome)=
Marginaltaxrate=
CurrentRevenues=
CurrentNoncashWorkingCapital=
Chg.WorkingCapital=
BookValueofDebt=
BookValueofEquity=
INR6,904.00
INR967.00
INR2,814.00
INR2,621.00
25.00%
32.45%
INR134,806.00
INR24,890.00
INR1,540.00
INR21,920.00
INR36,445.00
Cash&MarketableSecurities=
INR8,140.00
ValueofNonoperatingAssets=
MinorityInterests(thisisaliability)=
INR117.00
PricetoBookRatioofsectorwithminorityholdings=
MarketDataforyourfirm
Isyourstockcurrentlytraded?
Ifyes,enterthefollowing:
CurrentStockPrice=
Numberofsharesoutstanding=
MarketValueofDebt=
Ifno,enterthefollowing
Wouldyouliketousethebookvaluedebtratio?
Ifno,enterthedebtratiotouseinvaluation
GeneralMarketData
LongTermTreasurybondrate=
MatureMarketEquityPremium=
CountryEquityRiskPremium=
ExchangeRateforfiscalyearitems(BR/$)=
ExchangeRateforcurrrentpriceconversions=
Ratings
Doyouwanttoestimatethefirm'ssyntheticrating=
Ifyes,choosethetypeoffirm
Ifnot,whatisthecurrentratingofthefirm?
Enterthecostofdebtassociatedwiththerating=
Options
1.00
Yes
INR192.00
626.00
INR21,920.00
Yes
35%
6.50%
5.50%
3.00%
R$1.00
R$1.00
No
1
AA
9.60%
Doyouhaveequityoptions(managementoptions,warrants)outstanding?
Ifyes,enterthenumberofoptions
Averagestrikeprice
Averagematurity
StandardDeviationinstockprice
Doyouwanttousethestockpricetovaluetheoptionoryourestimatedvalue?
ValuationInputs
HighGrowthPeriod
Lengthofhighgrowthperiod=
Betatouseforhighgrowthperiodforyourfirm=
Lambdatouseforyourfirm(forbothhighgrowthandstablegrowth)=
Doyouwanttokeepthedebtratiocomputedfromyourinputs?
Ifyes,thedebtratiothatwillbeusedtocomputethecostofcapitalis
Ifno,enterthedebtratiothatyouwouldliketouseinthehighgrowthperiod
Doyouwanttokeeptheexistingratioofworkingcapitaltorevenue?
Ifyes,theworkingcapitalasapercentofrevenueswillbe
Ifno,entertheratioofworkingcapitaltorevenuestouseinanalysis
Doyouwanttocomputeyourgrowthratefromfundamentals?
Ifno,entertheexpectedgrowthrateinoperatingincomeforhighgrowthperio
Ifyes,theinputstothefundamentalgrowthcalculation(baseduponyourinputs)are
ReturnonCapital=
ReinvestmentRate=
Doyouwanttochangetheseinputs?
ReturnonCapital=
ReinvestmentRate=
Doyouwantmetograduallyadjustyourhighgrowthinputsinthesecondhalf
StableGrowthPeriod
Growthrateduringstablegrowthperiod=
Betatouseinstablegrowthperiod=
CountryRiskpremiumforequityinstablegrowthperiod=
DebtRatiotouseinstablegrowthperiod=
Pretaxcostofdebtinstablegrowthperiod=
TaxRatetouseinstablegrowthperiod=
Tocomputethereinvestmentrateinstablegrowth,youhavetwooptions
Doyouwanttocomputereinvestmentneedsinstablegrowthbasedonfundame
Ifyes,enterthereturnoncapitalthatthefirmwillhaveinstablegrowth
Ifno,entercapitalexpenditureas%ofdepreciationinstablegrowth
No
2.23
R$13.85
1.5
30%
P
5
0.97
1
Yes
15.53%
7.00%
No
18.46%
0.00%
No
15%
10.71%
36.76%
Yes
10.71%
70.00%
No
6.50%
0.97
3.00%
15.53%
9.80%
32.45%
Yes
13.56%
120%
this sheet. Many of the inputs are required only if you choose the appropriate option, though.
ize it to make it positive, or use the highgrowth.xls spreadsheet.
!YesorNo
!YesorNo
GotoR&DConverter
GotoOperatingleaseconverter
GotoEarningsNormalizer
!Ifnegative,gobackandchoosetonormalizeearnings.
Previousyearend
INR120,944.00
INR1.00
INR18,510.00
INR35,612.00
INR5,830.00
Averagematurityofdebt=
INR120,192.00
INR487.35
No.ofShares
Ordinary
DVR
Total
R$1.00
!Ifyes,usetheratingestimatorworksheetthatisattached
5
Number
273.67
48.19
321.86
0.2152023429
(inpercent)
0.145082
0.1307366
InputSummary
Rupees
Dollar
NormalizedEBIT(beforeadjustments)
INR6,904.00
INR6,904.00
AdjustedEBIT=
INR6,920.47
INR6,920.47
AdjustedInterestExpense=
INR983.47
INR983.47
AdjustedCapitalSpending
INR3,023.30
INR3,023.30
AdjustedDepreciation&Amort'n=
INR2,655.31
INR2,655.31
TaxRateonIncome=
25.00%
25.00%
Marginaltaxrate=
32.45%
32.45%
CurrentRevenues=
INR134,806.00
INR134,806.00
CurrentNoncashWorkingCapital=
INR24,890.00
INR24,890.00
Chg.WorkingCapital=
INR1,540.00
INR1,540.00
AdjustedBookValueofDebt=
INR18,681.53
INR18,681.53
AdjustedBookValueofEquity=
INR35,612.00
INR35,612.00
InvestedCapital
INR48,463.53
INR48,463.53
14
Forever
GrowthRate=
15.00%
6.50%
DebtRatiousedinCostofCapitalCalculat
15.53%
15.53%
Betausedforstock=
0.97
0.97
Lambdausedforstock=
1.00
1.00
Riskfreerate=
6.50%
6.50%
MatureMarketEquityPremium=
5.50%
5.50%
LengthofHighGrowthPeriod=
Page 9
CountryRiskPremium=
3.00%
3.00%
CostofDebt=
9.60%
9.80%
TaxRateforcomputingincome=
25.00%
1000.00%
Marginaltaxrate=
32.45%
32.45%
ReturnonCapital=
10.71%
13.56%
ReinvestmentRate=
70.00%
47.94%
Page 10
Outputfromtheprogram
CostofEquity=
14.84%
Equity/(Debt+Equity)=
84.47%
AftertaxCostofdebt=
6.48%
Debt/(Debt+Equity)=
15.53%
CostofCapital=
13.54%
IntermediateOutput
ExpectedGrowthRate
15.00%
WorkingCapitalaspercentofrevenues=
5.00%
(inpercent)
TheFCFFforthehighgrowthphaseareshownbelow(upto10years)
1
ExpectedGrowthRate
15.00%
15.00%
15.00%
15.00%
15.00%
CumulatedGrowth
115.00%
132.25%
152.09%
174.90%
201.14%
ReinvestmentRate
70.00%
70.00%
70.00%
70.00%
70.00%
INR5,190.35
INR5,968.90
INR6,864.24
INR7,893.87
INR9,077.96
INR10,439.65
(CapExDepreciation
INR367.99
INR3,167.19
INR3,642.27
INR4,188.60
INR4,816.90
INR5,539.43
Chg.WorkingCapital
INR1,540.00
INR1,011.05
INR1,162.70
INR1,337.11
INR1,537.67
INR1,768.32
FreeCashflowtoFirm
INR3,282.36
INR1,790.67
INR2,059.27
INR2,368.16
INR2,723.39
INR3,131.89
CostofCapital
13.54%
13.54%
13.54%
13.54%
13.54%
CumulatedCostofCapital
1.1354
1.2891
1.4636
1.6618
1.8868
$1,577
$1,597
$1,618
$1,639
$1,660
Current
EBIT*(1taxrate)
PresentValue
Page 11
GrowthRateinStablePhase=
6.50%
ReinvestmentRateinStablePhase=
47.94%
FCFFinStablePhase=
(INR244,366.85)
CostofEquityinStablePhase=
14.84%
Equity/(Equity+Debt)=
84.47%
ATCostofDebtinStablePhase=
88.20%
Debt/(Equity+Debt)=
15.53%
CostofCapitalinStablePhase=
1.16%
Valueattheendofgrowthphase=
INR3,189,068.02
Valuation
PresentValueofFCFFinhighgrowthphase=
INR24,026.07
PresentValueofTerminalValueofFirm=
INR539,087.10
Valueofoperatingassetsofthefirm=
INR563,113.17
ValueofCash,MarketableSecurities&Nonoperatingassets=
INR8,140.00
ValueofFirm=
INR571,253.17
MarketValueofoutstandingdebt=
INR22,091.53
MinorityInterestinconsolidatedholdings=
INR117.00
MarketValueofEquity=
INR549,044.64
ValueofEquityinOptions=
INR0.00
ValueofEquityinCommonStock=
INR549,044.64
MarketValueofEquity/share=
INR877.07
MarketValueofEquity/shareinBR=
INR877.07
Page 12
Year
EBIT (1-t)
- Reinvestment
FCFF
1
5969
4178
1791
2
6864
4805
2059
3
7894
5526
2368
Page 13
4
9078
6355
2723
5
10440
7308
3132
6
12006
8404
3602
Page 14
Page 15
10
11
12
13
15.00%
15.00%
15.00%
15.00%
15.00%
15.00%
15.00%
15.00%
231.31%
266.00%
305.90%
351.79%
404.56%
465.24%
535.03%
615.28%
70.00%
70.00%
70.00%
70.00%
70.00%
70.00%
70.00%
70.00%
INR12,005.60
INR13,806.43
INR15,877.40
INR18,259.01
INR20,997.86
INR24,147.54
INR27,769.67
INR31,935.12
INR6,370.34
INR7,325.90
INR8,424.78
INR9,688.50
INR11,141.77
INR12,813.04
INR14,734.99
INR16,945.24
INR2,033.57
INR2,338.61
INR2,689.40
INR3,092.81
INR3,556.73
INR4,090.24
INR4,703.78
INR5,409.34
INR3,601.68
INR4,141.93
INR4,763.22
INR5,477.70
INR6,299.36
INR7,244.26
INR8,330.90
INR9,580.54
13.54%
13.54%
13.54%
13.54%
13.54%
13.54%
13.54%
13.54%
2.1422
2.4322
2.7615
3.1354
3.5599
4.0418
4.5890
521.03%
$1,681
$1,703
$1,725
$1,747
$1,770
$1,792
$1,815
$1,838.77
Page 16
Page 17
7
13806
9665
4142
8
15877
11114
4763
9
18259
12781
5478
10
20998
14699
6299
Page 18
Page 19
Page 20
14
TerminalYear
15.00%
707.57%
70.00%
INR36,725.39
INR469,350.50
INR19,487.03
INR228,083.65
INR6,220.75
INR3,100.00
INR11,017.62
INR244,366.85
13.54%
591.57%
$1,862.44
Page 21
Page 22
Page 23
Revenues
EBIT
Pre-tax Oper Mgn
EBIT (1-t)
BV of debt (start)
BV of equity (start)
Cash holdings
Invested Capital
ROIC
2005
192792
17950
9.31%
13463
33621
37019
5546
R$ 65,094
20.68%
Cap ex
8740
Acquisitions
5844
Depreciation
5377
Chg in WC
5628
Reinvestment
R$ 14,835
Reinvestment Rate
110.19%
Reinvestment Rate wi
66.79%
2006
231523
22526
9.73%
2007
314044
30011
9.56%
2008
342586
30984
9.04%
2009
747837
42684
5.71%
16895
22508
23238
32013
R$ 27,142
R$ 63,293
R$ 97,479
R$ 157,163
R$ 44,602
R$ 63,054
R$ 79,717
R$ 91,658
R$ 20,209
R$ 4,838
R$ 6,998
R$ 6,450
R$ 51,535
R$ 121,509 R$ 170,198 R$ 242,371
32.78%
18.52%
13.65%
13.21%
R$ 12,592
R$ 1,321
R$ 6,274
R$ 23,450
R$ 31,089
184.02%
176.20%
R$ 27,588
R$ 52,804
R$ 891
R$ 9,937
R$ 6,850
R$ 7,826
R$ 41,370
-R$ 20,422
R$ 62,999
R$ 34,493
279.89%
148.43%
275.93%
105.67%
R$ 99,708
R$ 553
R$ 25,072
R$ 13,450
R$ 88,639
276.88%
275.16%
Aggregate
R$ 1,828,782
R$ 144,155
7.88%
R$ 108,116
R$ 378,698
R$ 316,050
R$ 44,041
R$ 650,707
16.62%
R$ 192,692
R$ 12,702
R$ 46,022
R$ 57,848
R$ 217,220
200.91%
189.16%
10/12/2013
2013.00
Investment
Number of un
Book Value (in miCurrent market Market Value (in millions)
a. Investments with market value
Tata Steel
21440882
2699
633 13572.08
Tata Chemicals
70249
2.4
346 24.30615
Total
2701.4
13596.38
-2701.4
Business
Shipbuilding
Offshore & Engineering
Industrial plant
Engine and Machinery
Electro Electric System
Construction Equipment
Revenues
8341
2563
1200
2252
1753
1823
EV/Sales
3.23
1.97
1.55
1.36
1.8
1.21
Value
26941
5049
1860
3063
3155
2206
42274
Value Weight
63.73%
11.94%
4.40%
7.24%
7.46%
5.22%
100.00%
Unlevered beta
1.60
1.44
1.29
1.21
1.19
1.29
1.49
NormalizingEarnings
Approachusedtonormalizeearnings=
Ifhistoricalaverage,
AverageEarningsbeforetaxes=
19737.6
IfhistoricalaverageROC,
Historicalaveragepretaxreturnoncapital=
22%
Ifsectormargin
PretaxOperatingMarginforSector=
7.04%
NormalizedEarningsbeforeinterestandtaxes=
$10,462.46
Worksheetfornormalization(Last5yearsofdata)
5
4
Revenues
INR206,487
INR242,905
EBT
INR16,519
INR20,534
EBTMargin
8.00%
8.45%
NetCapex
NoncashWC
Inventory
AccountsRec
OtherCurrentassets
AccountsPayable
OtherCurrentLiabilities
NetCapexas%ofEBIT(1t)
NoncashWCas%ofRevenu
Normalizedreinvestment=
3
2
INR320,648 INR335,771
INR25,732 INR25,765
8.02%
7.67%
282
26.07
112
305.82
27
915.03
367.38
74.48
34.23
190.06
259.96
682.72
149.74
57.17
248.98
334.83
1281.06
537.37
174.73
358.23
719.9
0.74%
0.18%
$59.34
!Lookatindustryaverage
151.76
222.74
1121.56
314.02
291.92
521.17
1429.07
1
INR295,252
INR10,138
3.43%
196.02
1502.9
2371.09
1386.19
474.46
615.72
2113.12
Total
INR1,401,063
INR98,688
7.04%
490.78
2527.08
9495.457754576
R&DConverter
ThisspreadsheetconvertsR&Dexpensesfromoperatingtocapitalexpenses.Itmakestheappropriateadjustmentstooperatingincome,net
income,thebookvalueofassetsandthebookvalueofequity.
Inputs
OverhowmanyyearsdoyouwanttoamortizeR&Dexpenses
5
Enterthecurrentyear'sR&Dexpense=
$341.00
EnterR&Dexpensesforpastyears:thenumberofyearsthatyouwillneedtoenterwillbedeterminedbytheamortizationperiod
Donotinputnumbersinthefirstcolumn(Year).Itwillgetautomaticallyupdatedbasedontheinputabove.
Year
1
2
3
4
5
Err:518
Err:518
Err:518
Err:518
Err:518
Output
Year
Current
1
2
3
4
5
Err:518
Err:518
Err:518
Err:518
Err:518
R&DExpenses
340.00
!Year1istheyearpriortothecurrentyear
340.00
!Year2isthetwoyearspriortothecurrentyear
340.00
340.00
340.00
R&DExpense
341.00
340.00
340.00
340.00
340.00
340.00
0.00
0.00
0.00
0.00
0.00
Unamortizedportion
1.00
341.00
0.80
272.00
0.60
204.00
0.40
136.00
0.20
68.00
0.00
0.00
Err:518
Err:518
Err:518
Err:518
Err:518
Err:518
Err:518
Err:518
Err:518
Amortizationthisyear
Err:518
$68.00
$68.00
$68.00
$68.00
$68.00
Err:518
Err:518
Err:518
Err:518
Err:518
ValueofResearchAsset=
Err:518
Err:518
Amortizationofassetforcurrentyear=
Err:518
AdjustmenttoOperatingIncome=
Tax Effect of R&D Expensing
Err:518 !Apositivenumberindicatesanincreaseinoperatingincome(add
Err:518
IndustryName AmortizationPeriod
Advertising
2
Aerospace/Defens
10
AirTransport
10
Aluminum
5
Apparel
3
NontechnologicalService
Retail,TechService
LightManufacturing
HeavyManufacturing
2years
3years
5years
10years
Auto&Truck
AutoParts(OEM)
AutoParts(Repla
Bank
Bank(Canadian)
Bank(Foreign)
Bank(Midwest)
Beverage(Alcohol
Beverage(SoftDr
BuildingMaterial
CableTV
CanadianEnergy
Cement&Aggrega
Chemical(Basic)
Chemical(Diversi
Chemical(Special
Coal/AlternateEn
Computer&Perip
ComputerSoftwar
Copper
DiversifiedCo.
Drug
Drugstore
EducationalServi
ElectricUtil.(Cen
ElectricUtility(E
ElectricUtility(W
ElectricalEquipm
Electronics
Entertainment
Environmental
FinancialServices
FoodProcessing
FoodWholesalers
ForeignElectron/
ForeignTelecom.
Furn./HomeFurni
Gold/SilverMinin
Grocery
HealthcareInfoS
HomeAppliance
Homebuilding
Hotel/Gaming
HouseholdProduc
IndustrialService
Insurance(Diversi
Insurance(Life)
Insurance(Prop/C
Internet
InvestmentCo.(D
10
5
5
2
2
2
2
3
3
5
10
10
10
10
10
10
5
5
3
5
5
10
3
3
10
10
10
10
5
3
5
2
3
3
5
10
3
5
2
3
5
5
3
3
3
3
3
3
3
3
Research,withPatenting
LongGestationPeriod
10years
10years
InvestmentCo.(F
InvestmentCo.(I
Machinery
Manuf.Housing/R
Maritime
MedicalServices
MedicalSupplies
MetalFabricating
Metals&Mining(
NaturalGas(Distr
NaturalGas(Diver
Newspaper
OfficeEquip&Su
OilfieldServices/
Packaging&Cont
Paper&ForestPr
Petroleum(Integra
Petroleum(Produc
PrecisionInstrum
Publishing
R.E.I.T.
Railroad
Recreation
Restaurant
Retail(SpecialLi
RetailBuildingS
RetailStore
SecuritiesBroker
Semiconductor
SemiconductorCa
Shoe
Steel(General)
Steel(Integrated)
Telecom.Equipme
Telecom.Services
Textile
Thrift
Tire&Rubber
Tobacco
Toiletries/Cosmeti
Trucking/Transp.
Utility(Foreign)
WaterUtility
3
3
10
5
10
3
5
10
5
10
10
3
5
5
5
10
5
5
5
3
3
5
5
2
2
2
2
2
5
5
3
5
5
10
5
5
2
5
5
3
5
10
10
verter
opriateadjustmentstooperatingincome,net
!Ifindoubt,usethelookuptablebelow
Themaximumallowedistenyears
erminedbytheamortizationperiod
einputabove.
ndicatesanincreaseinoperatingincome(addtoreportedEBIT)
OperatingLeaseConverter
Inputs
Operatingleaseexpenseincurrentyear=
OperatingLeaseCommitments(Fromfootnotetofinancials)
Year
Commitment !Year1isnextyear,.
1
$40.00
2
$40.00
3
$40.00
4
$40.00
5
$40.00
6andbeyond $29.00
$209.30
Output
PretaxCostofDebt=
9.60%
!Ifyoudonothaveacostofdebt,usetheratingsestimator
Fromthecurrentfinancialstatements,enterthefollowing
ReportedOperatingIncome(EBIT)=
$6,904.00 !ThisistheEBITreportedinthecurrentincomestatement
ReportedDebt=
$21,920.00 !Thisistheinterestbearingdebtreportedonthebalancesheet
Numberofyearsembeddedinyr6estimate=
!Iusetheaverageleaseexpenseoverthefirstfiveyears
toestimatethenumberofyearsofexpensesinyr6
ConvertingOperatingLeasesintodebt
Year
Commitment
PresentValue
1 $40.00
$36.50
2 $40.00
$33.30
3 $40.00
$30.38
4 $40.00
$27.72
5 $40.00
$25.29
6andbeyond
$29.00
$18.34 !Commitmentbeyondyear6convertedintoanannuityfortenyears
DebtValueofleases=
$171.53
RestatedFinancials
DepreciationonOperatingLeaseAsset=
AdjustmenttoOperatingEarnings=
AdjustmenttoTotalDebtoutstanding=
$34.31
$16.47
$171.53
LeaseConverter
heratingsestimator
ortedinthecurrentincomestatement
earingdebtreportedonthebalancesheet
seexpenseoverthefirstfiveyears
rofyearsofexpensesinyr6
intoanannuityfortenyears
!Iusestraightlinedepreciation
!PVofoperatingleases*Pretaxcostofdebt
EBIT (1 -t) =
Expected growth rate in perpetuity
Cost of capital =
Return on capital =
($469,350.50)
6.50%
-1.16%
12.00%
Reinvestment Rate =
Terminal Value =
54.17%
$2,807,373.62
Growth Rate
0%
1%
2%
3%
4%
5%
Reinvestment Rate
0.00%
8.33%
16.67%
25.00%
33.33%
41.67%
FCFF
###
###
###
###
###
###
Terminal value
$40,369,318.86
$19,894,094.15
$12,367,048.34
$8,456,478.08
$6,060,857.16
$4,442,701.83
ValuingOptionsorWarrants
Enterthecurrentstockprice=
Enterthestrikepriceontheoption=
Entertheexpirationoftheoption=
Enterthestandarddeviationinstockprices=
Entertheannualizeddividendyieldonstock=
Enterthetreasurybondrate=
Enterthenumberofwarrants(options)outstanding=
Enterthenumberofsharesoutstanding=
$192.00
$13.85
1.5
30.00% (volatility)
0.00%
6.50%
2.23
626.00
Donotinputanynumbersbelowthisline
VALUINGWARRANTSWHENTHEREISDILUTION
192 #Warrantsissued=
StockPrice=
13.85 #Sharesoutstanding=
StrikePrice=
Err:522 T.Bondrate=
AdjustedS=
13.85 Variance=
AdjustedK=
1.5 Annualizeddividendyield=
Expiration(inyears)=
Div.Adj.interestrate=
d1=
N(d1)=
Err:522
Err:522
d2=
N(d2)=
Err:522
Err:522
Valueperoption=
Valueofalloptionsoutstanding=
Err:522
Err:522
2.23
626
6.50%
0.0900
0.00%
6.50%
BottomupBetaCalculator
Unleveredbetaforsector=
Output
Firm'sCurrentmarketvalueD/Eratio=
Firm'sCurrenttaxrate=
Bottomupbetaforfirm=
1.04 !Lookupindustryaverages
18.24% !Revertedbacktoconventionaldebttoequityratio
32.45%
1.17
nventionaldebttoequityratio
1.6363636364
Inputsforsyntheticratingestimation
Enterthetypeoffirm=
1 (Enter1iflargemanufacturingfirm,2ifsmallerorriskierfirm,3iffinancialservice
EntercurrentEarningsbeforeinterestandtaxes(EBIT)=
$7,113.30
Entercurrentinterestexpenses=
$1,176.30
Entercurrentlongtermgovernmentbondrate=
6.50%
Output
6.05
Interestcoverageratio=
EstimatedBondRating=
A+
1.00%
EstimatedDefaultSpread=
7.50%
EstimatedCostofDebt=
Forlargemanufacturingfirms
Ifinterestcoverageratiois
>
to
100000
0.199999
0.2
0.649999
0.65
0.799999
0.8
1.249999
1.25
1.499999
1.5
1.749999
1.75
1.999999
2
2.2499999
2.25
2.49999
2.5
2.999999
3
4.249999
4.25
5.499999
5.5
6.499999
6.5
8.499999
8.50
100000
Ratingis
D
C
CC
CCC
B
B
B+
BB
BB+
BBB
A
A
A+
AA
AAA
Spreadis
15.00%
12.00%
10.00%
8.50%
5.50%
5.25%
4.25%
4.00%
3.50%
2.00%
1.50%
1.25%
1.00%
0.75%
0.50%
Forsmallerandriskierfirms
Ifinterestcoverageratiois
greaterthan
to
100000
0.499999
0.5
0.799999
0.8
1.249999
1.25
1.499999
1.5
1.999999
2
2.499999
2.5
2.999999
3
3.499999
3.5
3.9999999
4
4.499999
4.5
5.999999
6
7.499999
7.5
9.499999
9.5
12.499999
12.5
100000
Ratingis
D
C
CC
CCC
B
B
B+
BB
BB+
BBB
A
A
A+
AA
AAA
Spreadis
15.00%
12.00%
10.00%
8.50%
5.50%
5.25%
4.25%
4.00%
3.50%
2.00%
1.50%
1.25%
1.00%
0.75%
0.50%
Forfinancialservicefirms
Iflongterminterestcoverageratiois
greaterthan
100000
0.05
0.1
0.2
0.3
0.4
0.5
0.6
0.75
0.9
1.2
1.5
2
2.5
3
smallerorriskierfirm,3iffinancialservicefirm)
(Addbackonlylongterminterestexpenseforfinancialfirms)
(Useonlylongterminterestexpenseforfinancialfirms)
financialservicefirms
ngterminterestcoverageratiois
to
0.049999
0.099999
0.199999
0.299999
0.399999
0.499999
0.599999
0.749999
0.899999
1.199999
1.49999
1.99999
2.49999
2.99999
100000
Ratingis
D
C
CC
CCC
B
B
B+
BB
BB+
BBB
A
A
A+
AA
AAA
Spreadis OperatingIncomeDecline
15.00%
15.00%
12.00%
10.00%
10.00%
8.00%
8.50%
6.00%
5.50%
5.00%
5.25%
4.50%
4.25%
4.00%
4.00%
3.00%
3.50%
2.50%
2.00%
1.50%
1.50%
1.30%
1.25%
1.20%
1.00%
1.15%
0.75%
0.90%
0.50%
0.70%
Industry Name
Number of firms
Levered Beta Unlevered B Std Dev: Equity
Advertising
30
1.43
0.87
80.69%
Aerospace/Defense
66
1.27
1.20
47.75%
Air Transport
44
1.15
0.86
60.46%
Apparel
53
1.14
0.93
68.33%
Auto & Truck
20
1.49
0.76
34.92%
Auto Parts
54
1.56
1.10
52.04%
Bank
477
0.71
0.47
27.49%
Bank (Canadian)
8
0.86
0.83
17.85%
Bank (Midwest)
39
0.91
0.66
27.13%
Beverage
41
0.95
0.85
54.53%
Biotechnology
108
1.25
1.27
69.85%
Building Materials
52
1.39
0.80
61.96%
Cable TV
25
1.56
0.95
44.91%
Canadian Energy
12
1.22
0.99
33.84%
Chemical (Basic)
19
1.26
1.10
37.09%
Chemical (Diversified)
33
1.21
1.10
39.47%
Chemical (Specialty)
88
1.18
0.98
57.61%
Coal
18
1.98
1.43
49.41%
Computer Software/Svcs
322
1.22
1.33
71.38%
Computers/Peripherals
125
1.29
1.39
82.96%
Diversified Co.
113
1.25
0.60
48.51%
Drug
342
1.16
1.14
96.99%
E-Commerce
54
1.50
1.76
57.18%
Educational Services
34
0.84
0.89
52.81%
Electric Util. (Central)
24
0.82
0.49
21.09%
Electric Utility (East)
26
0.74
0.50
22.24%
Electric Utility (West)
16
0.79
0.50
18.64%
Electrical Equipment
83
1.37
1.26
57.31%
Electronics
173
1.31
1.23
79.26%
Entertainment
84
1.66
1.09
50.24%
Entertainment Tech
33
1.45
2.33
70.79%
Environmental
79
1.11
0.80
87.19%
Financial Svcs. (Div.)
296
1.27
0.45
62.78%
Food Processing
109
0.80
0.65
40.11%
Food Wholesalers
18
0.73
0.54
46.75%
Foreign Electronics
10
1.18
1.40
25.56%
Furn/Home Furnishings
34
1.29
0.94
43.85%
Grocery
14
0.84
0.78
27.93%
Healthcare Information
29
1.05
1.04
50.75%
Heavy Construction
14
1.48
1.74
42.91%
Homebuilding
32
1.36
0.65
44.28%
Hotel/Gaming
68
1.70
0.84
64.47%
Household Products
26
1.08
0.95
37.34%
Human Resources
31
1.44
1.61
43.81%
Industrial Services
167
1.20
0.98
63.50%
Information Services
34
1.22
1.24
37.26%
Insurance (Life)
35
1.17
1.27
50.74%
Insurance (Prop/Cas.)
78
0.91
0.92
26.47%
Internet
208
1.41
1.66
86.31%
Market D/E
126.31%
27.21%
78.21%
44.32%
183.75%
94.19%
91.52%
10.36%
68.98%
19.02%
9.98%
103.11%
88.77%
35.70%
29.11%
26.70%
35.74%
48.02%
7.77%
18.36%
160.98%
14.51%
11.43%
2.22%
107.83%
73.30%
90.70%
23.53%
45.62%
79.23%
11.54%
49.86%
261.38%
35.15%
59.50%
42.29%
65.75%
13.91%
19.87%
9.49%
162.15%
142.62%
23.21%
18.42%
43.98%
21.88%
21.71%
1.89%
4.07%
Investment Co.
Investment Co.(Foreign)
Machinery
Manuf. Housing/RV
Maritime
Medical Services
Medical Supplies
Metal Fabricating
Metals & Mining (Div.)
Natural Gas (Div.)
Natural Gas Utility
Newspaper
Office Equip/Supplies
Oil/Gas Distribution
Oilfield Svcs/Equip.
Packaging & Container
Paper/Forest Products
Petroleum (Integrated)
Petroleum (Producing)
Pharmacy Services
Power
Precious Metals
Precision Instrument
Property Management
Publishing
R.E.I.T.
Railroad
Recreation
Reinsurance
Restaurant
Retail (Special Lines)
Retail Automotive
Retail Building Supply
Retail Store
Securities Brokerage
Semiconductor
Semiconductor Equip
Shoe
Steel (General)
Steel (Integrated)
Telecom. Equipment
Telecom. Services
Thrift
Tobacco
Toiletries/Cosmetics
Trucking
Utility (Foreign)
Water Utility
Wireless Networking
Public/Private Equity
17
16
124
18
56
160
252
35
78
34
25
16
26
19
112
33
38
25
188
19
66
75
90
17
27
144
15
64
11
68
155
16
8
38
32
122
16
19
20
14
110
140
234
12
23
33
5
16
57
10
0.83
1.31
1.39
1.32
1.30
1.10
1.17
1.56
1.69
1.20
0.69
1.16
1.11
0.89
1.56
1.27
1.20
1.34
1.24
0.94
1.63
1.41
1.47
1.38
1.24
1.35
1.25
1.41
0.91
1.26
1.26
1.31
1.01
1.01
1.37
1.81
1.78
1.23
1.71
1.96
1.49
1.43
0.66
0.71
0.95
1.17
1.23
0.86
1.54
2.08
0.90
1.36
1.08
1.38
0.52
0.90
1.13
1.55
1.48
0.85
0.43
0.72
0.84
0.53
1.27
0.81
0.64
1.30
0.97
0.81
0.95
1.37
1.59
0.46
0.62
0.92
0.99
1.01
1.00
1.09
1.22
0.93
0.86
0.86
0.37
2.11
2.20
1.39
1.53
1.54
1.87
1.06
0.69
0.69
0.79
0.66
0.85
0.57
1.28
0.48
18.96%
28.87%
48.66%
47.67%
37.08%
86.84%
72.38%
60.00%
97.21%
35.65%
25.71%
34.32%
42.36%
36.90%
46.34%
39.90%
48.42%
37.35%
78.27%
30.96%
71.09%
67.33%
53.96%
32.79%
39.28%
36.52%
30.42%
57.75%
22.33%
48.95%
57.15%
35.23%
24.82%
40.30%
51.25%
59.20%
43.35%
39.32%
44.25%
49.03%
75.07%
82.14%
31.62%
29.69%
51.70%
38.85%
28.01%
35.87%
58.41%
45.59%
14.84%
5.16%
55.77%
50.13%
185.73%
54.66%
13.28%
25.44%
21.94%
58.57%
85.33%
86.43%
60.35%
81.95%
42.35%
84.83%
118.10%
14.67%
37.57%
23.50%
107.88%
11.77%
22.65%
282.91%
137.13%
53.19%
41.53%
62.58%
11.37%
24.97%
26.07%
66.88%
26.35%
30.29%
462.27%
13.32%
13.62%
3.66%
32.18%
64.96%
12.71%
51.32%
9.71%
8.84%
38.50%
126.80%
62.82%
82.79%
36.37%
391.15%
Funeral Services
Market
6
6870
1.41
1.19
1.02
0.93
29.93%
56.57%
67.25%
48.81%
Market Debt
ROE
ROC
55.81%
21.54%
21.39%
25.52%
43.89%
31.77%
30.71%
16.38%
64.76%
85.35%
48.50%
19.79%
47.79%
14.58%
9.39%
23.19%
40.82%
17.19%
15.98%
24.85%
9.08%
22.16%
50.76%
13.03%
47.03%
7.00%
26.31%
20.83%
22.55%
25.33%
21.07%
26.45%
26.33%
18.88%
32.44%
13.96%
7.21%
47.49%
15.51%
49.14%
61.68%
29.12%
12.67%
26.23%
10.26%
10.10%
2.18%
48.89%
51.88%
11.46%
42.30%
13.38%
47.56%
10.89%
19.05%
24.82%
31.33%
10.63%
44.21%
8.08%
10.35%
-5.09%
33.27%
14.34%
72.33%
14.91%
26.01%
20.98%
37.30%
15.36%
29.72%
12.30%
39.67%
12.64%
12.21%
17.58%
16.58%
43.47%
8.67%
21.05%
61.85%
-63.59%
58.78%
17.10%
18.84%
21.67%
15.55%
16.30%
30.55%
19.74%
17.95%
32.04%
17.84%
20.91%
1.85%
20.44%
3.91%
25.60%
13.01%
19.53%
22.00%
18.05%
18.80%
21.81%
NA
NA
NA
18.98%
14.78%
11.35%
10.91%
25.35%
21.96%
23.67%
17.93%
20.13%
36.64%
32.96%
10.79%
22.57%
12.54%
46.84%
10.28%
11.64%
11.52%
20.50%
13.01%
9.98%
4.51%
13.67%
12.33%
15.64%
14.62%
16.90%
13.85%
17.38%
24.69%
18.45%
-23.17%
10.83%
17.10%
17.34%
18.18%
21.20%
NA
NA
26.46%
12.92%
4.90%
35.80%
33.39%
65.00%
35.34%
11.72%
20.28%
17.99%
36.94%
46.04%
46.36%
37.64%
45.04%
29.75%
45.90%
54.15%
12.79%
27.31%
19.03%
51.90%
10.53%
18.47%
73.88%
57.83%
34.72%
29.34%
38.49%
10.21%
19.98%
20.68%
40.08%
20.85%
23.25%
82.22%
11.75%
11.98%
3.53%
24.34%
39.38%
11.28%
33.91%
8.85%
8.12%
27.80%
55.91%
38.58%
45.29%
26.67%
79.64%
647.73%
10.46%
23.51%
8.90%
19.95%
24.56%
23.17%
22.01%
30.86%
14.31%
12.36%
13.96%
19.85%
15.81%
25.10%
15.41%
5.75%
26.14%
16.75%
11.99%
19.05%
3.32%
15.26%
9.58%
-66.38%
8.95%
15.12%
14.49%
17.04%
29.70%
23.03%
16.17%
21.07%
19.89%
-11.10%
22.18%
32.37%
28.40%
27.03%
20.96%
35.37%
16.18%
6.69%
70.43%
98.41%
12.03%
3.89%
0.63%
7.85%
17.72%
NA
NA
17.21%
9.47%
12.18%
18.25%
20.34%
21.33%
27.62%
15.08%
12.02%
11.21%
15.81%
11.69%
20.50%
17.06%
11.21%
25.61%
23.41%
12.17%
11.71%
8.54%
16.76%
9.81%
20.12%
8.49%
13.91%
14.02%
NA
22.15%
22.65%
11.67%
17.82%
15.19%
15.35%
28.67%
29.91%
28.46%
21.54%
19.41%
26.58%
22.22%
NA
32.64%
23.11%
12.67%
9.93%
8.11%
10.21%
6.46%
0.00%
2.11%
22.71%
14.98%
7.08%
18.36%
12.51%
20.43%
9.29%
24.19%
24.52%
23.53%
22.76%
9.48%
22.07%
24.65%
13.66%
33.79%
13.98%
21.13%
6.25%
5.94%
14.38%
19.27%
20.73%
1.21%
30.62%
19.12%
8.87%
20.10%
23.08%
34.23%
28.12%
25.68%
22.16%
10.48%
22.03%
30.35%
29.15%
29.90%
12.08%
15.90%
17.04%
20.25%
23.28%
33.19%
15.01%
35.46%
14.08%
6.70%
NA
NA
13.72%
3.83%
30.66%
12.69%
11.53%
14.65%
36.00%
34.06%
14.77%
21.90%
9.94%
15.24%
26.36%
13.39%
12.24%
17.96%
38.57%
6.41%
18.09%
32.80%
16.31%
35.51%
17.26%
18.11%
31.92%
19.56%
NA
16.35%
9.37%
6.72%
11.59%
6.93%
33.95%
27.73%
23.75%
12.52%
12.53%
18.78%
13.97%
39.80%
NA
9.68%
12.03%
13.28%
15.29%
40.45%
18.28%
53.29%
NA
NA
9.49%
2.37%
29.09%
8.16%
8.54%
10.22%
25.33%
23.75%
10.36%
16.06%
6.92%
12.24%
19.65%
10.04%
10.31%
10.45%
26.43%
4.13%
12.74%
23.79%
12.59%
27.99%
10.27%
16.08%
20.60%
15.62%
NA
13.16%
6.06%
4.31%
7.31%
4.47%
25.61%
21.97%
17.41%
8.44%
8.29%
14.41%
10.62%
28.38%
NA
6.66%
7.97%
8.54%
9.47%
25.93%
11.63%
47.57%
40.21%
32.80%
15.04%
20.64%
11.67%
17.73%
33.26%
16.67%
20.82%
20.77%
13.16%
14.61%
Net Margin
2.26%
3.57%
0.17%
2.69%
0.57%
0.90%
NA
NA
NA
5.77%
8.33%
2.23%
3.28%
9.48%
6.40%
5.55%
2.69%
4.53%
8.24%
3.55%
4.85%
8.38%
3.38%
5.63%
3.61%
4.49%
3.72%
4.96%
1.40%
3.66%
-1.45%
3.48%
-22.60%
2.98%
0.94%
1.67%
1.43%
1.06%
7.79%
2.23%
-10.34%
3.26%
5.90%
1.20%
2.03%
5.92%
NA
NA
6.53%
NA
NA
3.49%
-1.61%
13.32%
2.38%
3.60%
2.71%
5.94%
9.41%
2.30%
2.18%
1.74%
4.25%
8.24%
1.97%
0.80%
5.11%
6.99%
1.43%
2.50%
9.32%
4.11%
4.02%
1.30%
61.19%
7.24%
4.49%
NA
4.10%
1.82%
1.26%
2.26%
1.56%
-1.40%
4.69%
4.57%
1.68%
4.36%
5.67%
2.81%
3.45%
NA
3.00%
3.04%
0.95%
0.01%
3.63%
3.52%
22.90%
20.00%
84.21%
134.95%
81.33%
523.30%
146.47%
98.75%
195.35%
251.65%
281.53%
146.56%
71.55%
83.36%
373.42%
268.73%
95.74%
90.62%
186.98%
291.48%
163.33%
197.18%
230.19%
51.15%
608.41%
89.69%
607.00%
190.87%
201.19%
NA
178.56%
139.68%
233.04%
242.53%
202.23%
166.76%
110.68%
95.15%
135.60%
187.15%
124.02%
71.60%
190.13%
NA
331.23%
117.56%
682.72%
143.73%
262.28%
82.96%
15.66%
NA
NA
16.14%
5.71%
7.18%
-6.66%
6.59%
10.84%
5.81%
-3.94%
5.17%
3.05%
9.33%
-0.45%
12.70%
5.96%
11.37%
2.22%
2.89%
5.33%
6.96%
0.02%
10.13%
-17.86%
4.17%
-4.12%
-4.11%
-0.80%
NA
-5.11%
6.30%
12.86%
5.07%
1.53%
120.39%
8.97%
15.62%
16.15%
14.33%
15.49%
0.25%
-10.85%
NA
0.78%
8.54%
5.27%
4.62%
1.68%
6.91%
33.11%
NA
36.72%
10.21%
9.05%
17.67%
0.86%
15.25%
10.49%
10.00%
13.80%
30.14%
9.12%
10.66%
39.70%
6.06%
12.39%
28.92%
14.04%
5.13%
6.20%
0.19%
19.95%
4.96%
23.90%
80.61%
115.46%
14.10%
21.67%
12.85%
21.18%
9.70%
1.96%
14.55%
11.18%
28.02%
21.82%
5.01%
11.89%
9.43%
6.35%
13.06%
21.11%
64.16%
32.09%
16.72%
8.06%
0.00%
274.15%
1.53%
23.46%
NA
-1.55%
-1.51%
9.17%
69.70%
5.72%
-3.33%
8.66%
10.91%
50.53%
8.35%
-4.55%
-5.75%
47.94%
18.86%
-3.29%
0.62%
12.52%
42.65%
2.63%
12.47%
51.75%
-14.88%
94.40%
-1.09%
242.89%
18.83%
20.73%
0.00%
14.97%
9.60%
24.14%
23.42%
22.28%
140.87%
1.50%
5.06%
1.42%
-13.36%
-8.04%
-7.29%
-1.41%
422.33%
24.30%
0.78%
170.96%
0.00%
18.42%
-32.77%
0.73%
2.96%
3.44%
116.53%
158.90%
0.96%
9.07%
17.83%
16.22%
1.70%
-30.90%
Sales/Capital
1.09
2.35
1.99
1.77
2.36
3.92
NA
NA
NA
1.29
0.87
1.08
0.56
0.88
1.84
1.67
1.84
1.28
2.12
3.75
0.60
1.00
1.43
4.01
0.70
0.68
0.70
1.79
2.32
0.67
2.55
1.02
0.16
1.82
3.90
2.27
1.97
4.56
1.74
4.80
1.42
0.71
1.12
5.24
2.20
1.44
NA
NA
1.90
EV/Sales
0.94
0.73
0.65
0.64
0.51
0.29
NA
NA
NA
1.99
5.71
0.85
2.20
1.61
0.88
1.15
0.90
1.26
1.93
0.70
1.96
2.63
1.86
2.75
1.65
1.93
1.57
1.00
0.32
1.27
0.85
1.73
6.96
1.01
0.36
0.32
0.45
0.79
2.08
0.49
0.58
1.50
2.05
0.23
0.71
1.68
NA
NA
2.22
NA
NA
1.81
3.99
0.42
2.24
2.38
2.09
1.09
0.63
1.16
0.70
2.28
0.95
1.04
1.70
1.09
2.45
0.89
2.95
0.92
0.36
1.33
0.35
1.96
0.53
0.68
0.90
NA
1.68
3.74
2.70
2.44
3.40
0.60
1.30
1.72
3.37
2.60
1.35
2.50
0.78
NA
4.90
2.90
1.48
1.05
0.31
0.88
0.14
NA
NA
0.70
0.17
2.23
0.59
1.08
0.59
1.49
2.00
1.09
1.12
0.52
1.36
1.24
0.72
0.74
0.65
1.29
0.56
1.54
4.72
0.92
2.90
0.89
4.05
2.03
1.16
NA
1.57
0.40
0.47
0.72
0.54
1.82
1.31
0.81
0.84
0.55
0.59
0.90
1.69
NA
1.47
0.98
0.75
0.90
3.80
2.36
4.01
0.89
1.21
1.40
1.28