FCFF STAB

Inputs
CF from Operative Activities 6.73E+06
Net Income 4.76E+06
Current EBIT 7,372,000.00
Current tax rate 35.5%

Capital Expenditures -2.58E+06

Depreciation 1.66E+06
Change in Working Capital 1,437,600.00
Do you want to change the capital expenditure/depreciation ratio?
If so, enter capital expenditures as a percent of depreciation
Total Debt 1.79E+07
Current Share Price $ 98.81
Total Equity $ 93,060,246.10
Debt-to-equity Ratio 16.13%
Equity-to-debt ratio 83.87%
Cash 2.08E+06

Are you directly entering the cost of equity? (Yes or No)

If yes, enter cost of equity
If no, enter the inputs for the CAPM
Beta of the stock 0.70
Riskfree rate 2.81%
Risk Premium 6.25%

Cost of debt 3.67%

Expected Growth Rate 2.0%

Output
Firm details from prior inputs
EBIT (1- tax rate)
- (Capital Spending - Depreciation)
- Change in Working Capital
Free Cash Flow to Firm (FCFF)

Cost of Equity = 7.19%

Cost of Debt = 2.37%
Cost of Capital (WACC) = 6.41%
Expected Growth rate = 2.00%

Value of Firm

Net Debt
Value of Equity
Number of diluted shares outstanding
Price per share =
Stance

Growth rate Value

4.00% $326,766,562.18
3.00% $228,658,435.66
2.00% $175,066,108.22
1.00% $141,294,201.52
0.00% $118,063,186.94
-1.00% $101,104,223.13
-2.00% $88,179,367.13
 FCFF STABLE GROWTH MODEL
Comparab
(in thousands)
(in thousands)
(in thousands) WEN
SBUX
YUM
(in thousands) DRI
(in thousands) EAT
(in thousands) If negative, enter zero. Average
iation ratio? No
125%
(in thousands) MCD
MCD EV
(in thousands)
( in percent) Avg EV

$/share

No
(in percent)

Avg EV
(in percent)
(in percent) $/share

(in percent)
 $4,754,940.00 (in thousands)
-$ 4,247,900.00 (in thousands)
$ 1,437,600.00 (in thousands)
$7,565,240.00 (in thousands)

$175,066,108.22 (in thousands)

$15,822,100.00 (in thousands)

$159,244,008.22 (in thousands)
941,810 (in thousands)
$169.08 (actual)
Undervalued by 71%

Equity Value vs. Expected Growth Rate

Comparable Company Analysis

EV/EBITDA EV/Revenue
10.83 2.04
20.9 4.57
15.07 3.11
12.84 1.47
9.35 1.44
13.798 2.526

Total EBITDA Total Rev

$ 9,030,000,000.00 $ 26,020,000,000.00
$ 124,595,940,000.00 $ 65,726,520,000.00

$ 114,112,997,188.43

$ 121.14
Undervalued by 23%

IF DCF Excluded

$ 93,795,293,512.67

$ 99.57
Undervalued by 1%
Forward P/E
28.54
30.15
19.73
20.03
13.98
22.486

EPS (For P/E Value) DCF

$ 4.30 (actual)
$ 91,063,420,538.00 $175,066,108,215.71 (actual)