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DamodaranspreadsheetBeyondMeatOct19.xlsx

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Input sheet

Date of valuation

May-15

Important: Before you run this spreadsheet, go into preferences in Excel and check under Calculation options

Company name

Beyond Meat

There should be a check against the iteration box. If there is not, you will get circular reasoning errors.

Numbers from your base year below ( in consistent units)

This year

Last year
Aswath Damodaran: Aswath Damodaran: If you are using trailing 12-month data, it is best if the last year is the 12-month period just prior to the one that you are using. Thus, if you are looking at June 2011-June 2012, your trailing 12 month for the income statement numbers will be June 2010-June 2011 and your balance sheet numbers should be as of June 2011.

Country of incorporation

United States

Industry (US)

Food Processing
Aswath Damodaran: Aswath Damodaran: If you are in multiple businesses, you can construct your own weighted averages using the industry average table from this spreadsheet and your company's business breakdown.

Industry (Global)

Food Processing

Last 10K

Years since last 10K
Aswath Damodaran: Aswath Damodaran: If you have trailing 12 month numbers, the last year's numbers may be only 3 months, 6 months or 9 months ago.

Revenues

$ 165.20
Aswath Damodaran: Aswath Damodaran: Enter the revenues from the most recent period (you can either use annual or the trailing 12 months). If your company had no revenues, enter a very small positive number. (You need a base for your growth rate)

Aswath Damodaran: Aswath Damodaran: If you have trailing 12 month numbers, the last year's numbers may be only 3 months, 6 months or 9 months ago.

$ 87.90
Aswath Damodaran: Aswath Damodaran: Enter the revenues from the most recent period (you can either use annual or the trailing 12 months). If your company had no revenues, enter a very small positive number. (You need a base for your growth rate)

0.5

Operating income or EBIT

$ (16.20)
Aswath Damodaran: Aswath Damodaran: Enter the operating income or EBIT from the most recent time period, even if that number is negative. If you have operating leases or R&D and want to adjust for them, use the options below to start the process and enter the numbers in the relevan t worksheets.

$ (26.50)
Aswath Damodaran: Aswath Damodaran: Enter the operating income or EBIT from the most recent time period, even if that number is negative. If you have operating leases or R&D and want to adjust for them, use the options below to start the process and enter the numbers in the relevan t worksheets.

0.5

Interest expense

$ 2.50

$ 1.10

Book value of equity

$ 331.80
Aswath Damodaran: Aswath Damodaran: Enter the book value of equity (total) from the end of the most recent time period (i.e. the most recent balance sheet). This book equity will include everything - paid in capital, retained earnings etc. and may even be negative for companies that have been losing money for a while.

$ 77.80
Aswath Damodaran: Aswath Damodaran: Enter the book value of equity (total) from the end of the most recent time period (i.e. the most recent balance sheet). This book equity will include everything - paid in capital, retained earnings etc. and may even be negative for companies that have been losing money for a while.

Book value of debt

$ 30.90
Aswath Damodaran: Aswath Damodaran: Enter the book value of interest bearing debt (short and long term) at your company from the most recent balance sheet. (Do not include accounts payable, supplier credit or other non-interest bearing liabilities.)

$ 30.50
Aswath Damodaran: Aswath Damodaran: Enter the book value of interest bearing debt (short and long term) at your company from the most recent balance sheet. (Do not include accounts payable, supplier credit or other non-interest bearing liabilities.)

Do you have R&D expenses to capitalize?

Yes

If you want to capitalize R&D, you have to input the numbers into the R&D worksheet.

Do you have operating lease commitments?

Yes

If you have operating leases, please enter your lease commitments in the lease worksheet below and I will convert to debt

Cash and Marketable Securities

$ 277.00
Aswath Damodaran: Aswath Damodaran: Enter the cash balance from the most recent balance sheet. This should include marketable securities.

$ 54.30
Aswath Damodaran: Aswath Damodaran: Enter the cash balance from the most recent balance sheet. This should include marketable securities.

Cross holdings and other non-operating assets

$ - 0
Aswath Damodaran: Aswath Damodaran: Enter the market value of those non-cash assets whose earnings are (and will never) show up as part of operating income. The most common non-operating assets are minority holdings in other companies (which are not consoldiated). You can find the book value of these holdings on the balance sheet, but see if you can convert to market value. (I apply a price to book ratio, based on the sector that the company is in to the book value).

Minority interests

$ - 0
Aswath Damodaran: Aswath Damodaran: Enter the "market" value of minority interests. This is a uniquely accounting item and will be on the liability side of your company's balance sheet. It reflects the requirement that if you own more than 50% of another company or have effective control of it, you have to consolidate that company's statements with yours. Thus, you count 100% of that subsidiaries assets, revenues and operating income with your company, even if you own only 60%. The minority interest reflects the book value of the 40% of the equity in the subsidiary that does not belong to you. Again, it is best if you can convert the book value to a market value by applying the price to book ratio for the sector in which the subsidiary operates

Number of shares outstanding =

60.18
Aswath Damodaran: Aswath Damodaran: Enter the most recent update you have on the number of shares. If you have different classes of shares, aggregate them all and enter one number. Count restricted stock units (RSUs) as shares but don't count shares underlying employee options.

Current stock price =

$ 142.73
Aswath Damodaran: Aswath Damodaran: Enter the most recent stock price (how about today's?) in here.

Computed numbers: Here is what your company's numbers look like, relative to industry.

Effective tax rate =

25.00%
Aswath Damodaran: Aswath Damodaran: Enter your effective (not marginal) tax rate for your firm. You will find this in your company's annual report. If you cannot, you can compute it as follows, from the income statement: Effective tax rate = Taxes paid/ Taxable income If your effective tax rate varies across years, you can use an average. If the effective tax rate is less than zero, enter zero. If you have a money losing company, don't enter zero but enter the tax rate that you will have when you start making money.

If you are not working in US dollars, you should add the inflation differential to the industry averages.

Marginal tax rate =

25.00%
Aswath Damodaran: Aswath Damodaran: This is a statutory tax rate. I use the tax rate of the country the company is domiciled in. See worksheet embedded in this spreadshseet for country tax rates.

Company

Industry (US data)

Industry (Global data)

The value drivers below:

Revenue growth in the most recent year =

253.22%

6.54%

7.72%

Year 1

Pre-tax operating margin in the most recent year =

-8.96%

13.22%

8.54%

Expected total market in 10 years

$ 12,000.00
tc={864F544A-F364-4D4C-B276-963DA7B94E07}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: This is your estimate of the total market that your company is targeting, ten years from now.

Sales to capital ratio in most recent year =

1.24

1.59

1.74

Expected market share in 10 years

25%
tc={A79A7704-F0D0-084E-8A12-5E1A9DF5E97A}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: This is your estimate of the company’s market share of the total market in year 10.

Return on invested capital in most recent year=

-11.10%

20.19%

12.51%

Target pre-tax operating margin (EBIT as % of sales in year 10) =

13.22%
Aswath Damodaran: Aswath Damodaran: You should start by looking at your company's current pre-tax operating margin but also look at the average for your industry. (You can check my estimates of industry averages in the last worksheet on this spreadsheet.)

Profitability Lever

Standard deviation in stock prices =

27.46%

33.43%

Year of convergence

5.00
Aswath Damodaran: Aswath Damodaran: This is the forecast year in which your current margin will converge on target.

Speed of convergence level

Cost of capital =

6.12%

7.39%

Sales to capital ratio (for computing reinvestment) =

3.00
Aswath Damodaran: Aswath Damodaran: You are probably wondering what this is but it is how I compute how much you are going to reinvest to keep your business growing in future years. The higher you set this number, the more efficiently you are growing and the higher the value of your growth. Again, look at your company's current number (check on the right). Look at the industry averages as well in the worksheet.

Efficency of Growth Lever

Market numbers

Valuation Output Feedback (for you to use to fine tune your inputs, if you want)

Riskfree rate

1.70%
Aswath Damodaran: Aswath Damodaran: This should be today's long term riskfree rate. If you are working with a currency where the government has default risk, clean up the government bond rate to make it riskfree (by subtracting the default spread for the government).

Revenues in year 10, based on your revenue growth =

$ 3,051
Aswath Damodaran: Aswath Damodaran: Compare to your total market and check your market share.

Initial cost of capital =

7.00%
Aswath Damodaran: Aswath Damodaran: Enter the current cost of capital for your firm. If you don't know what it is, you can use the built-in worksheet to compute it.

Pre-tax Operating Income in year 10, based on your operating margin =

$ 403
Aswath Damodaran: Aswath Damodaran: Determined by your target margin.

Other inputs

Return on invested capital in year 10, based on your sales/capital ratio =

27.58%
Aswath Damodaran: Aswath Damodaran: Function of both your target margin and your sales to capital ratio.

Do you have employee options outstanding?

Yes

Check the Diagnostics worksheet for more details.

Number of options outstanding =

5.12
Aswath Damodaran: Aswath Damodaran: Check your company's annual report or 10K. If it does have options outstanding, enter the total number here (vested and non vested, in the money and out…)

Average strike price =

$2.01
Aswath Damodaran: Aswath Damodaran: Enter the weighted average strike price of your options. (Should be in your 10K or annual report.)

Average maturity =

3.13
Aswath Damodaran: Aswath Damodaran: The weighted average maturity of your options should be reported in your financial statements.

Standard deviation on stock price =

40.00%
Aswath Damodaran: Aswath Damodaran: If you have a standard deviation for your stock, enter that number. If not, use the industry average standard deviation from the worksheet.

Aswath Damodaran: Aswath Damodaran: Compare to your total market and check your market share.

Aswath Damodaran: Aswath Damodaran: Determined by your target margin.

Aswath Damodaran: Aswath Damodaran: Function of both your target margin and your sales to capital ratio.

Default assumptions.

In stable growth, I will assume that your firm will have a cost of capital similar to that of typical mature companies (riskfree rate + 4.5%)

Do you want to override this assumption =

Yes
Aswath Damodaran: Aswath Damodaran: Mature companies tend to have costs of capital closer to the market average. While the riskfree rate + 4.5% is a close approximation of the average, you can use a slightly higher number (riskfree rate + 6%) for mature companies in riskier businesses and a slightly lower number (risfree rate + 4%) for safer companies.

Mature companies generally see their risk levels approach the average

If yes, enter the cost of capital after year 10 =

5.63%

Though some sectors, even in stable growth, may have higher risk.

I will assume that your firm will earn a return on capital equal to its cost of capital after year 10. I am assuming that whatever competitive advantages you have today will fade over time.

Do you want to override this assumption =

Yes
Aswath Damodaran: Aswath Damodaran: The default assumption is that competitive advantages will fade to zero over time. While this is a good assumption for many firms (about 7 in 10), there are some firms with sustainable competitive advantages (brand name, for instance), where the excess returns may continue beyond year 10. If your firm is one of those, you can enter a return on capital higher than your cost of capital in the cell below. Just don't get carried away. At the maximum, the excess return should not exceed 5% for a mature firm.

Mature companies find it difficult to generate returns that exceed the cost of capital

If yes, enter the return on capital you expect after year 10

10%
Aswath Damodaran: Aswath Damodaran: Even if you believe your firm has significant competitive advantages, don't set this number to more than 5% more than your cost of capital.

But there are significant exceptions among companies with long-lasting competitive advantages.

I will assume that your firm has no chance of failure over the foreseeable future.

Do you want to override this assumption =

Yes
Aswath Damodaran: Aswath Damodaran: Companies at either end of the life cycle - young, growth and old, declining firms have a significant likelihood of failure. While we tend to ignore this in conventional DCF, it is worth thinking about whether you want to estimate a probability of failure. It is not easy to do but it can be done by looking at either history (with young, growth companies) or the debt market (with distressed companies).

Many young, growth companies fail, especially if they have trouble raising cash. Many distressed companies fail, because they have trouble making debt payments.

If yes, enter the probability of failure =

15%
Aswath Damodaran: Aswath Damodaran If you want to look at ways of estimating this probability, try these papers I have on the topic: For young growth companies: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1418687 For declining, distressed companies: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428022

Tough to estimate but a key input.

What do you want to tie your proceeds in failure to?

V
Aswath Damodaran: Aswath Damodaran: If the firm fail and has to liquidate its assets, you need to specify what the liquidation proceeds will be tied to. For young growth companies, I would tie it to value and with distressed firms (especially ones with significant assets in place), I would use book value.

B: Book value of capital, V= Estimated fair value for the company

Enter the distress proceeds as percentage of book or fair value

50%
Aswath Damodaran: Aswath Damodaran: You will generally not get 100% of fair value. How much less than 100% you get will depend on whether there are lots of potential buyers for your assets and how much of a hurry you are in to liquidate. It may well be zero for a young growth company with no tangible assets.

This can be zero, if the assets will be worth nothing if the firm fails.

I will assume that your effective tax rate will adjust to your marginal tax rate by your terminal year. If you override this assumption, I will leave the tax rate at your effective tax rate.

Do you want to override this assumption =

No
Aswath Damodaran: Aswath Damodaran: Companies generally pay less than the marginal tax rate on their income. Some of that is due to tax deferral and others to quirks in the tax law. Over time, the conservative assumption is to require the tax rate to move towards the marginal tax rate. However, if you believe that your firm's tax benefits are permanent, you can override this assumption.

I will assume that you have no losses carried forward from prior years ( NOL) coming into the valuation. If you have a money losing company, you may want to override tis.

Do you want to override this assumption =

Yes
Aswath Damodaran: Aswath Damodaran: If your company has been losing money for a while, there will be accumulated losses from prior periods. Check your financial statements.

Check the financial statements.

If yes, enter the NOL that you are carrying over into year 1

$119.70
Aswath Damodaran: Aswath Damodaran: This is the NOL from prior years carried forward into this year.

An NOL will shield your income from taxes, even after you start making money.

I will assume that the growth rate in perpetuity will be equal to the risk free rate. This allows for both valuation consistency and prevents "impossible" growth rates.

Do you want to override this assumption =

If yes, enter the growth rate in perpetuity

1.00%
Aswath Damodaran: Aswath Damodaran: Be VERY, VERY careful. This is a growth rate in perpetuity, after year 10. Entering numbers significantly (more than 1%) higher than the risk free rate will render your valuation close to useless.

This can be negative, if you feel the company will decline (and disappear) after growth is done. If you let it exceed the risk free rate, you are on your own in uncharted territory.

I have assumed that none of the cash is trapped (in foreign countries) and that there is no additional tax liability coming due and that cash is a neutral asset.

Do you want to override this assumption

If yes, enter trapped cash (if taxes) or entire balance (if mistrust)

$140,000.00
Aswath Damodaran: Aswath Damodaran: If your concern is that a portion of the cash is trapped in foreign markets and will be subject to tax, when returned, enter the trapped cash balance. If you feel that the entire cash balance is being discounted because markets don't trust managers, enter the entire cash balance.

Cash that is trapped in foreign markets (and subject to additoinal tax) or cash that is being discounted by the market (because of management mistrust)

& Average tax rate of the foreign markets where the cash is trapped

15%
Aswath Damodaran: Aswath Damodaran: This is the additional tax due, if the cash is trapped cash. If your concern is that all cash is being discounted by the market because of management mistrust, enter the percentage discount to apply to cash.

Additional tax rate due on trapped cash or discount being applied to cash balance because of mistrust.

Sheet1

		Pre-tax Operating Margin
		8%	12%	16%	20%
Revenues in year 10	$1,000	$ 2.60	$ 9.75	$ 17.39	$ 25.02
	$2,000	$ 11.74	$ 26.59	$ 41.42	$ 56.24
	$3,000	$ 21.70	$ 43.78	$ 65.84	$ 87.89
	$4,000	$ 31.83	$ 61.18	$ 90.51	$ 119.83
	$5,000	$ 41.68	$ 78.05	$ 114.39	$ 150.72
		Total Market
	10%
	20%
	30%
	40%
	50%

Valuation output

	Base year	1	2	3	4	5	6	7	8	9	10	Terminal year
Revenue growth rate		171.60%	63.18%	38.72%	27.91%	21.82%	17.91%	15.19%	13.19%	11.65%	10.44%	1.70%
Revenues	$ 165.20	$ 448.68	$ 732.16	$ 1,015.64	$ 1,299.12	$ 1,582.60	$ 1,866.08	$ 2,149.56	$ 2,433.04	$ 2,716.52	$ 3,000.00	$ 3,051.00
EBIT (Operating) margin	-8.96%	-4.53%	-0.09%	4.35%	8.78%	13.22%	13.22%	13.22%	13.22%	13.22%	13.22%	13.22%
EBIT (Operating income)	$ (14.81)	$ (20.31)	$ (0.66)	$ 44.14	$ 114.10	$ 209.21	$ 246.68	$ 284.15	$ 321.63	$ 359.10	$ 396.57	$ 403.32	$ 418.12
Tax rate	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%	25.00%
EBIT(1-t)	$ (14.81)	$ (20.31)	$ (0.66)	$ 44.14	$ 109.71	$ 156.90	$ 185.01	$ 213.12	$ 241.22	$ 269.33	$ 297.43	$ 302.49
- Reinvestment		$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 94.49	$ 51.42	$ 996.36
FCFF		$ (114.80)	$ (95.15)	$ (50.35)	$ 15.21	$ 62.41	$ 90.52	$ 118.62	$ 146.73	$ 174.83	$ 202.94	$ 251.06
NOL	$ 119.70	$ 140.01	$ 140.67	$ 96.53	$ - 0	$ - 0	$ - 0	$ - 0	$ - 0	$ - 0	$ - 0	$ - 0
Cost of capital		7.00%	7.00%	7.00%	7.00%	7.00%	6.73%	6.45%	6.18%	5.90%	5.63%	5.63%
Cumulated discount factor		0.9346	0.8734	0.8163	0.7629	0.7130	0.6680	0.6275	0.5910	0.5581	0.5283
PV(FCFF)		$ (107.29)	$ (83.11)	$ (41.10)	$ 11.60	$ 44.50	$ 60.47	$ 74.44	$ 86.72	$ 97.57	$ 107.22
Terminal cash flow	$ 251.06
Terminal cost of capital	5.63%
Terminal value	$ 6,388.41
PV(Terminal value)	$ 3,375.15
PV (CF over next 10 years)	$ 251.01
Sum of PV	$ 3,626.16
Probability of failure =	15.00%
Proceeds if firm fails =	$1,813.08
Value of operating assets =	$ 3,354.20
- Debt	$ 57.77
- Minority interests	$ - 0
+ Cash	$ 277.00
+ Non-operating assets	$ - 0
Value of equity	$ 3,573.43
- Value of options	$720.19
Value of equity in common stock	$ 2,853.24
Number of shares	60.18
Estimated value /share	$ 47.41
Price	$ 142.73
Price as % of value	301.04%
Implied variables												After year 10
Sales to capital ratio		3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
Invested capital	$ 133	$ 228	$ 322	$ 417	$ 511	$ 606	$ 700	$ 795	$ 889	$ 984	$ 1,078
ROIC	-11.10%	-8.91%	-0.20%	10.59%	21.45%	25.90%	26.42%	26.81%	27.12%	27.38%	27.58%	10.00%

Check these revenues against a. Overall market size b. Largest companies in this market

Compare this return on capital in year 10 against a. the industry average(column E of worksheet) b. the return on capital after year 10 If it is too high (low), you may want to lower (raise) your sales to capital ratio

This is how much capital you invested over the ten year period.

This is is how much your operating income grew over the ten-year period.

Stories to Numbers

Beyond Meat
The Story
The market for meatless products will continue to expand, as consumers shift towards the products for both environmental and health reasons. While the compdtition is likely to be intense, Beyond Meat will be able to use its early entry, economies of scale and brand name recognition (from its connections to fast food and bulk food buyers) to capture a significant (though not dominant) share of this market, while its profitability will approach those of US food processing companies and it will be able to grow with much less investment than a traditional food processing company. As a young, money losing company, the company remains susceptible to failure (15%), but the food business is a safe one and over time, its cost of capital will drift down to reflect this.							Tell your story about the company. Keep it focuses on the company's businesses and tie it into the three key levers of value: cash flows, growth and risk
The Assumptions
	Base year	Years 1-5	Years 6-10		After year 10	Link to story
Revenues (a) & CAGR	$ 165	57.13%	13.64%		1.70%	20-25% market share of $10 billion market	Tie each assumption to the part of your story that relates to it.
Operating margin (b)	-8.96%	-8.96%	13.22%		13.22%	Move towards average margin for food processing
Tax rate	25.00%	25.00%	25.00%		25.00%	NOLs will keep effective tax rates low for next 10 years
Reinvestment (c )		Sales to capital ratio =	3.00	RIR =	17.00%	Less capital intensive than conventional food processing
Return on capital	-11.10%	Marginal ROIC =	43.54%		10.00%	Brand name will allow high returns on capital
Cost of capital (d)		7.00%	5.63%		5.63%	Food processing is a safe business.
The Cash Flows
	Revenues	Operating Margin	EBIT	EBIT (1-t)	Reinvestment	FCFF	These are the numbers that come from your assumptions. The revenues over time reflect your revenue growth, the operating margins evolve towards your target margin and your tax rate will change, if you have set it to. The reinvestment is estimated using the sales to capital ratio for the first 10 years and based on a reinvestment rate in stable growth (g/ ROC).
1	$ 449	-4.53%	$ (20)	$ (20)	$ 94	$ (115)
2	$ 732	-0.09%	$ (1)	$ (1)	$ 94	$ (95)
3	$ 1,016	4.35%	$ 44	$ 44	$ 94	$ (50)
4	$ 1,299	8.78%	$ 114	$ 110	$ 94	$ 15
5	$ 1,583	13.22%	$ 209	$ 157	$ 94	$ 62
6	$ 1,866	13.22%	$ 247	$ 185	$ 94	$ 91
7	$ 2,150	13.22%	$ 284	$ 213	$ 94	$ 119
8	$ 2,433	13.22%	$ 322	$ 241	$ 94	$ 147
9	$ 2,717	13.22%	$ 359	$ 269	$ 94	$ 175
10	$ 3,000	13.22%	$ 397	$ 297	$ 94	$ 203
Terminal year	$ 3,051	13.22%	$ 403	$ 302	$ 51	$ 251
The Value
Terminal value			$ 6,388				This is the output from your valuation. It reflects your cash flows being discounted back at the cost of capital to get to your operating asset value, which then gets adjusted for the likelihood that your firm will not make it. We add cash and non-operating assets, subtract out debt and minority interests to get to value of equity.
PV(Terminal value)			$ 3,375
PV (CF over next 10 years)			$ 251
Value of operating assets =			$ 3,626
Adjustment for distress			$ 272	Probability of failure =		15.00%
- Debt & Mnority Interests			$ 58
+ Cash & Other Non-operating assets			$ 277
Value of equity			$ 3,573
- Value of equity options			$ 720
Number of shares			60.18
Value per share			$ 47.41	Stock was trading at =		$142.73

Diagnostics

VALUATION DIAGNOSTICS
Invested capital at start of valuation	$ 133.37
Invested capital at end of valuation	$ 1,078.30
Change in invested capital over 10 years	$ 944.93
Change in EBIT*(1–t) (after-tax operating income) over 10 years	$ 411.38
Marginal ROIC over 10 years	43.54%
ROIC at end of valuation	27.58%
Average WACC over the 10 years (compounded)	6.59%
Your calculated value as a percent of current price	33.22%
	Value seems low. See below
Inputs	If calculated value is negative or looks too low	If calculated value looks too high
Revenue growth rate (input cell B3)	Increase revenue growth rate	Decrease revenue growth rate
Last period EBIT as % of revenue (Input cell B14)	Increase the target pre-tax operating margin	Decrease the target pre-tax operating margin
Sales to Capital Ratio or reinvestment (Input cell B15)	Decrease the sales/capital ratio	Increase the sales/capital ratio
Return on capital in perpetuity (B30 & B31)	Increase relative to your cost of capital	If higher than your cost of capital, lower towards your cost of capital	T

Summary Sheet

Year	Revenues	Revenue Growth Rate	Pre-Tax Operating Margin	Pre-Tax Operating Income	NOL	Taxes	After-Tax Operating Income
Traling 12 month	$ 165.20		-8.96%	$ (14.81)	$ 119.70	$ - 0	$ (14.81)
1	$ 448.68	171.60%	-4.53%	$ (20.31)	$ 140.01	$ - 0	$ (20.31)
2	$ 732.16	63.18%	-0.09%	$ (0.66)	$ 140.67	$ - 0	$ (0.66)
3	$ 1,015.64	38.72%	4.35%	$ 44.14	$ 96.53	$ - 0	$ 44.14
4	$ 1,299.12	27.91%	8.78%	$ 114.10	$ - 0	$ 4.39	$ 109.71
5	$ 1,582.60	21.82%	13.22%	$ 209.21	$ - 0	$ 52.30	$ 156.90
6	$ 1,866.08	17.91%	13.22%	$ 246.68	$ - 0	$ 61.67	$ 185.01
7	$ 2,149.56	15.19%	13.22%	$ 284.15	$ - 0	$ 71.04	$ 213.12
8	$ 2,433.04	13.19%	13.22%	$ 321.63	$ - 0	$ 80.41	$ 241.22
9	$ 2,716.52	11.65%	13.22%	$ 359.10	$ - 0	$ 89.78	$ 269.33
10	$ 3,000.00	10.44%	13.22%	$ 396.57	$ - 0	$ 99.14	$ 297.43
Year	After-Tax Operating Income	Change in Revenues	Sales to Capital	Reinvestment	FCFF	Capital Invested	Implied ROC
Traling 12 month	$ (14.81)					$ 133.37	-11.10%
1	$ (20.31)	$ 283.48	3.00	$ 94.49	$ (114.80)	$ 227.86	-8.91%
2	$ (0.66)	$ 283.48	3.00	$ 94.49	$ (95.15)	$ 322.35	-0.20%
3	$ 44.14	$ 283.48	3.00	$ 94.49	$ (50.35)	$ 416.85	10.59%
4	$ 109.71	$ 283.48	3.00	$ 94.49	$ 15.21	$ 511.34	21.45%
5	$ 156.90	$ 283.48	3.00	$ 94.49	$ 62.41	$ 605.83	25.90%
6	$ 185.01	$ 283.48	3.00	$ 94.49	$ 90.52	$ 700.33	26.42%
7	$ 213.12	$ 283.48	3.00	$ 94.49	$ 118.62	$ 794.82	26.81%
8	$ 241.22	$ 283.48	3.00	$ 94.49	$ 146.73	$ 889.31	27.12%
9	$ 269.33	$ 283.48	3.00	$ 94.49	$ 174.83	$ 983.81	27.38%
10	$ 297.43	$ 283.48	3.00	$ 94.49	$ 202.94	$ 1,078.30	27.58%
Year	Beta	Cost of Equity	Pre-Tax Cost of Debt	Tax Savings	After-Tax Cost of Debt	Debt Ratio	Cost of Capital
1							7.00%
2							7.00%
3							7.00%
4							7.00%
5							7.00%
6							6.73%
7							6.45%
8							6.18%
9							5.90%
10							5.63%
Year	Cost of Capital	Cumulated Cost of Capital	FCFF	Terminal Value	Present Value
1	7.00%	1.0700	$ (114.80)		$ (107.29)
2	7.00%	1.1449	$ (95.15)		$ (83.11)
3	7.00%	1.2251	$ (50.35)		$ (41.10)
4	7.00%	1.3108	$ 15.21		$ 11.60
5	7.00%	1.4026	$ 62.41		$ 44.50
6	6.73%	1.4970	$ 90.52		$ 60.47
7	6.45%	1.5935	$ 118.62		$ 74.44
8	6.18%	1.6920	$ 146.73		$ 86.72
9	5.90%	1.7919	$ 174.83		$ 97.57
10	5.63%	1.8928	$ 202.94	$ 6,388.41	$ 3,482.37
Value of operating assets =					$ 3,626.16

Option value

Valuing Options or Warrants
Enter the current stock price =			$ 142.73
Enter the strike price on the option =			$ 2.01
Enter the expiration of the option =			3.13
Enter the standard deviation in stock prices =			40.00%	(volatility)
Enter the annualized dividend yield on stock =			0.00%
Enter the treasury bond rate =			1.70%
Enter the number of warrants (options) outstanding =			5.12
Enter the number of shares outstanding =			60.18
Do not input any numbers below this line
VALUING WARRANTS WHEN THERE IS DILUTION
Stock Price=		142.73	# Warrants issued=		5.12
Strike Price=		2.01	# Shares outstanding=		60
Adjusted S =		142.5678544533	T.Bond rate=		1.70%
Adjusted K =		2.01	Variance=		0.1600
Expiration (in years) =		3.13	Annualized dividend yield=		0.00%
			Div. Adj. interest rate=		1.70%
d1 =	6.4511409018
N (d1) =	0.9999999999
d2 =	5.7434686613
N (d2) =	0.9999999954
Value per option =		$ 140.66
Value of all options outstanding =			$720.19

Cost of capital worksheet

You can use this spreadsheet to compute your cost of capital. You can either use the built-in data to compute key inputs (beta, equity risk premium, default spread) or enter them directly. If you choose to use the built in ERP data, you can update the ERP numbers to reflect a more current mature market premuum (since the spreadsheet uses the start of the year numbers).
Estimation of Current Cost of Capital					Operating Countries ERP calculator
Inputs					Country	Revenues	ERP	Weight	Weighted ERP
Equity					United States of America	98061	5.93%	36.92%	2.19%		The last two rows in each of country/region risk premium tables is set aside for your input to provide you with flexibility to enter some numbers directly. For instance, assume that you have a company that breaks its revenues down into three countries and then puts the rest into "Rest of the World". You can enter the "Rest of the World" in one of these two rows and enter an equity risk premium for the rest of the world. The easiest way to do that is to go into the country equity risk premium worksheet and change the GDP for the three countries that you have data for to zero and compute the global weighted average ERP for the remaining countries. With the regional worksheet, you can use the last two rows to enter the data for an individual country (usually the domestic country) that might be broken out though the rest of the revenues are broken down by region. You can look up the ERP for the country in the country ERP worksheet.
Number of Shares outstanding =	60.18				China	51942	6.91%	19.56%	1.35%
Current Market Price per share =	$ 142.73						0.00%	0.00%	0.00%
							0.00%	0.00%	0.00%
Approach for estimating beta	Direct input						0.00%	0.00%	0.00%
If direct input, enter levered beta (or regression beta)	0.90						0.00%	0.00%	0.00%
Unlevered beta =	1.35 Aswath Damodaran: Aswath Damodaran: Use a sector average beta, if need be.						0.00%	0.00%	0.00%
Riskfree Rate =	1.70%						0.00%	0.00%	0.00%
What approach do you want to use to input ERP?	Country of incorporation Aswath Damodaran: Aswath Damodaran: If you pick operating regions or countries, please input the revenues by country or region in the table to the right.						0.00%	0.00%	0.00%
Direct input for ERP (if you choose "will input"	6.00%						0.00%	0.00%	0.00%
Equity Risk Premium used in cost of equity =	5.93% Aswath Damodaran: Aswath Damodaran: If your company has risk exposure in emergiing markets, incorporate that risk premiums here. See worksheet on country risk premiums.						0.00%	0.00%	0.00%
					Rest of the World	115592	7.39%	43.52%	3.22%
Debt								0.00%	0.00%
Book Value of Straight Debt =	$ 30.90				Total	265595		100.00%	6.76%
Interest Expense on Debt =	$ 2.50 Aswath Damodaran: Aswath Damodaran: Interest expense (gross) from most recent financial statement.				Operating Regions ERP calculator
Average Maturity =	3 Aswath Damodaran: Aswath Damodaran: Generally found in footnotes to financial statements.				Region	Revenues	ERP	Weight	Weighted ERP
Approach for estimating pre-tax cost of debt	Actual rating				Africa & Mid East	0	9.48%	0.00%	0.0000%
If direct input, input the pre-tax cost of debt	4.000%				Australia, NZ & Canada	7440	5.93%	7.34%	0.4357%
If actual rating, input the rating	Aa2/AA				Latin America & Caribbean		10.71%	0.00%	0.0000%
If synethetic rating, input the type of company	1 Aswath Damodaran: Aswath Damodaran: 1: Large market cap (>$5 billion) and safe. 2: Small market cap (<$5 billion) or risky. If company has volatile earnings or is in risky business, use 2, even if large market cap.				Japan	0	6.91%	0.00%	0.0000%
Pre-tax Cost of Debt =	2.70% Aswath Damodaran: Aswath Damodaran: Current, long term cost of borrowing money. If you have a rating use it, if not use a synthetic rating. See the worksheet attached.	Aswath Damodaran: Aswath Damodaran: Use a sector average beta, if need be.	Aswath Damodaran: Aswath Damodaran: If you pick operating regions or countries, please input the revenues by country or region in the table to the right.	Aswath Damodaran: Aswath Damodaran: If your company has risk exposure in emergiing markets, incorporate that risk premiums here. See worksheet on country risk premiums.				US	0	5.93%	0.00%	0.0000%
Tax Rate =	25%				Europe		7.08%	0.00%	0.0000%
					Emerging Markets	0	8.50%	0.00%	0.0000%
Book Value of Convertible Debt =	0				Asia	93864	7.40%	92.66%	6.8608%
Interest Expense on Convertible =	0				North America		5.93%	0.00%	0.0000%
Maturity of Convertible Bond =	0							0.00%	0.0000%
Market Value of Convertible =	0							0.00%	0.0000%
					Total	101304		100.00%	7.2965%
Debt value of operating leases =	$ 26.87
					Multi Business (US Industry Averages)
Preferred Stock					Business	Revenues	EV/Sales	Estimated Value	Unlevered Beta
Number of Preferred Shares =	0				Computers/Peripherals	$ 25,484.00	2.0812	$ 53,036.93	1.4983
Current Market Price per Share=	70				Entertainment	$ 18,805.00	3.4509	$ 64,893.53	1.2140
Annual Dividend per Share =	5				Computer Services	$ 37,190.00	1.0138	$ 37,703.14	1.0463
					Telecom. Equipment	$ 166,699.00	3.3673	$ 561,319.97	1.0229
Output							0.0000	$ - 0	0.0000
Estimating Market Value of Straight Debt =		$ 35.64					0.0000	$ - 0	0.0000
Estimated Value of Straight Debt in Convertible =		$ - 0					0.0000	$ - 0	0.0000
Value of Debt in Operating leases =		$ 26.87					0.0000	$ - 0	0.0000
Estimated Value of Equity in Convertible =		$ - 0					0.0000	$ - 0	0.0000
Levered Beta for equity =		0.90					0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
	Equity	Debt	Preferred Stock	Capital			0.0000	$ - 0	0.0000
Market Value	$ 8,589.49	$ 62.51	$ - 0	$ 8,652.00	Company	$ 248,178.00		$ 716,953.57	1.0766
Weight in Cost of Capital	99.28%	0.72%	0.00%	100.00%
Cost of Component	7.04%	2.03%	7.14%	7.00%	Multi Business (Global Industry Averages)
					Business	Revenues	EV/Sales	Estimated Value	Unlevered Beta
					Computers/Peripherals	$ 35,538.00	1.2213	$ 43,403.65	1.3485
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
							0.0000	$ - 0	0.0000
					Company	$ 35,538.00		$ 43,403.65	1.3485

R& D converter

R & D Converter
This spreadsheet converts R&D expenses from operating to capital expenses. It makes the appropriate adjustments to operating income, net
income, the book value of assets and the book value of equity.
Inputs
Over how many years do you want to amortize R&D expenses					3	! If in doubt, use the lookup table below
Enter the current year's R&D expense =					$ 12.50	The maximum allowed is ten years
Enter R& D expenses for past years: the number of years that you will need to enter will be determined by the amortization period
Do not input numbers in the first column (Year). It will get automatically updated based on the input above.
Year	R& D Expenses
-1	9.60	! Year -1 is the year prior to the current year
-2	5.70	! Year -2 is the two years prior to the current year
-3	5.80
0
0
0
0
0
0
0
Output
Year	R&D Expense	Unamortized portion		Amortization this year
Current	12.50	1.00	12.50
-1	9.60	0.67	6.40	$ 3.20
-2	5.70	0.33	1.90	$ 1.90
-3	5.80	0.00	0.00	$ 1.93
0	0.00	0.00	0.00	$ - 0
0	0.00	0.00	0.00	$ - 0
0	0.00	0.00	0.00	$ - 0
0	0.00	0.00	0.00	$ - 0
0	0.00	0.00	0.00	$ - 0
0	0.00	0.00	0.00	$ - 0
0	0.00	0.00	0.00	$ - 0
Value of Research Asset =			$20.80	$ 7.03
Amortization of asset for current year =			$7.03
Adjustment to Operating Income =			$5.47	! A positive number indicates an increase in operating income (add to reported EBIT)
Tax Effect of R&D Expensing			$1 Aswath Damodaran: Aswath Damodaran: By expensing R&D rather than capitalizing it, the firm gets a tax benefit. This is the dollar value of that tax benefit.

Operating lease converter

Operating Lease Converter
The yellow cells are input cells. Please enter them.
Inputs
Operating lease expense in current year =				$ 1.30
Operating Lease Commitments (From footnote to financials)
Year	Commitment	! Year 1 is next year, ….
1	23.7
2	1.1
3	1.1
4	0.6
5	0.5
6 and beyond	0.9
Output
Pre-tax Cost of Debt =		2.70%	! If you do not have a cost of debt, use the synthetic rating estimator
Number of years embedded in yr 6 estimate =			0	! I use the average lease expense over the first five years
				to estimate the number of years of expenses in yr 6
Converting Operating Leases into debt
Year	Commitment	Present Value
1	$ 23.66	$ 23.04
2	$ 1.10	$ 1.05
3	$ 1.09	$ 1.00
4	$ 0.59	$ 0.53
5	$ 0.54	$ 0.47
6 and beyond	$ 0.90	$ 0.77	! Commitment beyond year 6 converted into an annuity for ten years
Debt Value of leases =		$ 26.87
Restated Financials
Depreciation on Operating Lease Asset =					$ 5.37	! I use straight line depreciation
Adjustment to Operating Earnings =					($4.07)	! Add this amount to pre-tax operating income
Adjustment to Total Debt outstanding =					$ 26.87	! Add this amount to debt
Adjustment to Depreciation =					$5.37

Country equity risk premiums

Mature Market ERP +	5.93% Microsoft Office User: Microsoft Office User: This is the estimate for the ERP for a mature market, that then updates all of the ERP for other countries by adding the CRP to it. I update the ERP for the S&P 500 at the start of every month on my website (damodaran.com) and if you want, you can change this number to ther most recent update.
Country	Moody's rating	Adj. Default Spread	Equity Risk Premium	Country Risk Premium	Corporate Tax Rate	Region
Abu Dhabi	Aa2	0.56%	6.62%	0.69%	55.00%	Middle East
Albania	B1	5.08%	12.18%	6.25%	15.00%	Eastern Europe & Russia
Algeria	NA	6.21%	13.57%	7.64%	26.00%	Africa
Andorra (Principality of)	Baa2	2.15%	8.57%	2.64%	10.00%	Western Europe
Angola	B3	7.34%	14.96%	9.03%	30.00%	Africa
Argentina	B2	6.21%	13.57%	7.64%	30.00%	Central and South America
Armenia	B1	5.08%	12.18%	6.25%	20.00%	Eastern Europe & Russia
Aruba	Baa1	1.80%	8.15%	2.22%	25.00%	Caribbean
Australia	Aaa	0.00%	5.93%	0.00%	30.00%	Australia & New Zealand
Austria	Aa1	0.45%	6.48%	0.55%	25.00%	Western Europe
Azerbaijan	Ba2	3.39%	10.10%	4.17%	20.00%	Eastern Europe & Russia
Bahamas	Baa3	2.48%	8.99%	3.06%	0.00%	Caribbean
Bahrain	B2	6.21%	13.57%	7.64%	0.00%	Middle East
Bangladesh	Ba3	4.06%	10.93%	5.00%	25.00%	Asia
Barbados	Caa3	11.28%	19.80%	13.87%	30.00%	Caribbean
Belarus	B3	7.34%	14.96%	9.03%	18.00%	Eastern Europe & Russia
Belgium	Aa3	0.68%	6.77%	0.84%	29.00%	Western Europe
Belize	B3	7.34%	14.96%	9.03%	28.21%	Central and South America
Benin	B1	5.08%	12.18%	6.25%	30.00%	Africa
Bermuda	A2	0.96%	7.11%	1.18%	0.00%	Caribbean
Bolivia	Ba3	4.06%	10.93%	5.00%	25.00%	Central and South America
Bosnia and Herzegovina	B3	7.34%	14.96%	9.03%	10.00%	Eastern Europe & Russia
Botswana	A2	0.96%	7.11%	1.18%	22.00%	Africa
Brazil	Ba2	3.39%	10.10%	4.17%	34.00%	Central and South America
Brunei	NA	0.79%	6.91%	0.98%	18.50%	Asia
Bulgaria	Baa2	2.15%	8.57%	2.64%	10.00%	Eastern Europe & Russia
Burkina Faso	B2	6.21%	13.57%	7.64%	28.00%	Africa
Cambodia	B2	6.21%	13.57%	7.64%	20.00%	Asia
Cameroon	B2	6.21%	13.57%	7.64%	33.00%	Africa
Canada	Aaa	0.00%	5.93%	0.00%	26.50%	North America
Cape Verde	B2	6.21%	13.57%	7.64%	28.00%	Africa
Cayman Islands	Aa3	0.68%	6.77%	0.84%	0.00%	Caribbean
Chile	A1	0.79%	6.91%	0.98%	26.00%	Central and South America
China	A1	0.79%	6.91%	0.98%	25.00%	Asia
Colombia	Baa2	2.15%	8.57%	2.64%	33.00%	Central and South America
Congo (Democratic Republic of)	B3	7.34%	14.96%	9.03%	35.00%	Africa
Congo (Republic of)	Caa2	10.16%	18.43%	12.50%	28.00%	Africa
Cook Islands	B1	5.08%	12.18%	6.25%	0.00%	Australia & New Zealand
Costa Rica	B1	5.08%	12.18%	6.25%	30.00%	Central and South America
Côte d'Ivoire	Ba3	4.06%	10.93%	5.00%	25.00%	Africa
Croatia	Ba2	3.39%	10.10%	4.17%	18.00%	Eastern Europe & Russia
Cuba	Caa2	10.16%	18.43%	12.50%	24.00%	Caribbean
Curacao	A3	1.35%	7.60%	1.67%	22.00%	Caribbean
Cyprus	Ba2	3.39%	10.10%	4.17%	12.50%	Western Europe
Czech Republic	A1	0.79%	6.91%	0.98%	19.00%	Eastern Europe & Russia
Denmark	Aaa	0.00%	5.93%	0.00%	22.00%	Western Europe
Dominican Republic	Ba3	4.06%	10.93%	5.00%	27.00%	Caribbean
Ecuador	B3	7.34%	14.96%	9.03%	25.00%	Central and South America
Egypt	B3	7.34%	14.96%	9.03%	23.00%	Africa
El Salvador	Caa1	8.46%	16.34%	10.41%	30.00%	Central and South America
Estonia	A1	0.79%	6.91%	0.98%	20.00%	Eastern Europe & Russia
Ethiopia	B1	5.08%	12.18%	6.25%	30.00%	Africa
Fiji	Ba3	4.06%	10.93%	5.00%	20.00%	Asia
Finland	Aa1	0.45%	6.48%	0.55%	20.00%	Western Europe
France	Aa2	0.56%	6.62%	0.69%	33.00%	Western Europe
Gabon	Caa1	8.46%	16.34%	10.41%	30.00%	Africa
Gambia	NA	7.34%	14.96%	9.03%	31.00%	Africa
Georgia	Ba2	3.39%	10.10%	4.17%	31.00%	Eastern Europe & Russia
Germany	Aaa	0.00%	5.93%	0.00%	15.00%	Western Europe
Ghana	B3	7.34%	14.96%	9.03%	25.00%	Africa
Greece	B3	7.34%	14.96%	9.03%	29.00%	Western Europe
Guatemala	Ba1	2.82%	9.40%	3.47%	25.00%	Central and South America
Guernsey (States of)	Aa3	0.68%	6.77%	0.84%	0.00%	Western Europe
Guinea	NA	13.54%	22.58%	16.65%	29.15%	Africa
Guinea-Bissau	NA	8.46%	16.34%	10.41%	29.15%	Africa
Guyana	NA	5.08%	12.18%	6.25%	18.64%	Central and South America
Haiti	NA	10.16%	18.43%	12.50%	18.64%	Caribbean
Honduras	B1	5.08%	12.18%	6.25%	25.00%	Central and South America
Hong Kong	Aa2	0.56%	6.62%	0.69%	16.50%	Asia
Hungary	Baa3	2.48%	8.99%	3.06%	9.00%	Eastern Europe & Russia
Iceland	A3	1.35%	7.60%	1.67%	20.00%	Western Europe
India	Baa2	2.15%	8.57%	2.64%	35.00%	Asia
Indonesia	Baa2	2.15%	8.57%	2.64%	25.00%	Asia
Iran	NA	3.39%	10.10%	4.17%	20.23%	Middle East
Iraq	Caa1	8.46%	16.34%	10.41%	15.00%	Middle East
Ireland	A2	0.96%	7.11%	1.18%	12.50%	Western Europe
Isle of Man	Aa2	0.56%	6.62%	0.69%	0.00%	Western Europe
Israel	A1	0.79%	6.91%	0.98%	23.00%	Middle East
Italy	Baa3	2.48%	8.99%	3.06%	24.00%	Western Europe
Jamaica	B3	7.34%	14.96%	9.03%	25.00%	Caribbean
Japan	A1	0.79%	6.91%	0.98%	30.86%	Asia
Jersey (States of)	Aa3	0.68%	6.77%	0.84%	20.00%	Western Europe
Jordan	B1	5.08%	12.18%	6.25%	20.00%	Middle East
Kazakhstan	Baa3	2.48%	8.99%	3.06%	20.00%	Eastern Europe & Russia
Kenya	B2	6.21%	13.57%	7.64%	30.00%	Africa
Korea	Aa2	0.56%	6.62%	0.69%	25.00%	Asia
Korea, D.P.R.	NA	13.54%	22.58%	16.65%	23.10%	Asia
Kuwait	Aa2	0.56%	6.62%	0.69%	15.00%	Middle East
Kyrgyzstan	B2	6.21%	13.57%	7.64%	10.00%	Eastern Europe & Russia
Latvia	A3	1.35%	7.60%	1.67%	20.00%	Eastern Europe & Russia
Lebanon	B3	7.34%	14.96%	9.03%	15.00%	Middle East
Liberia	NA	13.54%	22.58%	16.65%	29.15%	Africa
Libya	NA	5.08%	12.18%	6.25%	20.00%	Africa
Liechtenstein	Aaa	0.00%	5.93%	0.00%	12.50%	Western Europe
Lithuania	A3	1.35%	7.60%	1.67%	15.00%	Eastern Europe & Russia
Luxembourg	Aaa	0.00%	5.93%	0.00%	26.01%	Western Europe
Macao	Aa3	0.68%	6.77%	0.84%	12.00%	Asia
Macedonia	Ba3	4.06%	10.93%	5.00%	10.00%	Eastern Europe & Russia
Madagascar	NA	7.34%	14.96%	9.03%	20.00%	Africa
Malawi	NA	8.46%	16.34%	10.41%	30.00%	Africa
Malaysia	A3	1.35%	7.60%	1.67%	24.00%	Asia
Maldives	B2	6.21%	13.57%	7.64%	0.00%	Asia
Mali	NA	8.46%	16.34%	10.41%	29.15%	Africa
Malta	A3	1.35%	7.60%	1.67%	35.00%	Western Europe
Mauritius	Baa1	1.80%	8.15%	2.22%	15.00%	Asia
Mexico	A3	1.35%	7.60%	1.67%	30.00%	Central and South America
Moldova	B3	7.34%	14.96%	9.03%	12.00%	Eastern Europe & Russia
Mongolia	B3	7.34%	14.96%	9.03%	33.00%	Asia
Montenegro	B1	5.08%	12.18%	6.25%	9.00%	Eastern Europe & Russia
Montserrat	Baa3	2.48%	8.99%	3.06%	27.98%	Caribbean
Morocco	Ba1	2.82%	9.40%	3.47%	31.00%	Africa
Mozambique	Caa3	11.28%	19.80%	13.87%	32.00%	Africa
Myanmar	NA	8.46%	16.34%	10.41%	25.00%	Asia
Namibia	Ba1	2.82%	9.40%	3.47%	32.00%	Africa
Netherlands	Aaa	0.00%	5.93%	0.00%	25.00%	Western Europe
New Zealand	Aaa	0.00%	5.93%	0.00%	28.00%	Australia & New Zealand
Nicaragua	B2	6.21%	13.57%	7.64%	30.00%	Central and South America
Niger	NA	13.54%	22.58%	16.65%	28.21%	Africa
Nigeria	B2	6.21%	13.57%	7.64%	30.00%	Africa
Norway	Aaa	0.00%	5.93%	0.00%	23.00%	Western Europe
Oman	Baa3	2.48%	8.99%	3.06%	15.00%	Middle East
Pakistan	B3	7.34%	14.96%	9.03%	30.00%	Asia
Panama	Baa2	2.15%	8.57%	2.64%	25.00%	Central and South America
Papua New Guinea	B2	6.21%	13.57%	7.64%	30.00%	Asia
Paraguay	Ba1	2.82%	9.40%	3.47%	10.00%	Central and South America
Peru	A3	1.35%	7.60%	1.67%	29.50%	Central and South America
Philippines	Baa2	2.15%	8.57%	2.64%	30.00%	Asia
Poland	A2	0.96%	7.11%	1.18%	19.00%	Eastern Europe & Russia
Portugal	Baa3	2.48%	8.99%	3.06%	21.00%	Western Europe
Qatar	Aa3	0.68%	6.77%	0.84%	10.00%	Middle East
Ras Al Khaimah (Emirate of)	A2	0.96%	7.11%	1.18%	0.00%	Middle East
Romania	Baa3	2.48%	8.99%	3.06%	16.00%	Eastern Europe & Russia
Russia	Ba1	2.82%	9.40%	3.47%	20.00%	Eastern Europe & Russia
Rwanda	B2	6.21%	13.57%	7.64%	30.00%	Africa
Saudi Arabia	A1	0.79%	6.91%	0.98%	20.00%	Middle East
Senegal	Ba3	4.06%	10.93%	5.00%	30.00%	Africa
Serbia	Ba3	4.06%	10.93%	5.00%	15.00%	Eastern Europe & Russia
Sharjah	A3	1.35%	7.60%	1.67%	20.00%	Middle East
Sierra Leone	NA	13.54%	22.58%	16.65%	30.00%	Africa
Singapore	Aaa	0.00%	5.93%	0.00%	17.00%	Asia
Slovakia	A2	0.96%	7.11%	1.18%	21.00%	Eastern Europe & Russia
Slovenia	Baa1	1.80%	8.15%	2.22%	19.00%	Eastern Europe & Russia
Solomon Islands	B3	7.34%	14.96%	9.03%	30.00%	Asia
Somalia	NA	13.54%	22.58%	16.65%	29.15%	Africa
South Africa	Baa3	2.48%	8.99%	3.06%	28.00%	Africa
Spain	Baa1	1.80%	8.15%	2.22%	25.00%	Western Europe
Sri Lanka	B1	5.08%	12.18%	6.25%	28.00%	Asia
St. Maarten	Baa2	2.15%	8.57%	2.64%	35.00%	Caribbean
St. Vincent & the Grenadines	B3	7.34%	14.96%	9.03%	20.00%	Caribbean
Sudan	NA	18.00%	28.07%	22.14%	35.00%	Africa
Suriname	B2	6.21%	13.57%	7.64%	36.00%	Central and South America
Swaziland	B2	6.21%	13.57%	7.64%	28.00%	Africa
Sweden	Aaa	0.00%	5.93%	0.00%	22.00%	Western Europe
Switzerland	Aaa	0.00%	5.93%	0.00%	18.00%	Western Europe
Syria	NA	13.54%	22.58%	16.65%	28.00%	Middle East
Taiwan	Aa3	1.80%	8.15%	2.22%	20.00%	Asia
Tajikistan	B3	2.82%	9.40%	3.47%	20.00%	Eastern Europe & Russia
Tanzania	B1	5.08%	12.18%	6.25%	30.00%	Africa
Thailand	Baa1	1.80%	8.15%	2.22%	20.00%	Asia
Togo	NA	8.46%	16.34%	10.41%	29.15%	Africa
Trinidad and Tobago	Ba1	2.82%	9.40%	3.47%	25.00%	Caribbean
Tunisia	B2	6.21%	13.57%	7.64%	25.00%	Africa
Turkey	Ba3	4.06%	10.93%	5.00%	22.00%	Western Europe
Turks and Caicos Islands	Baa1	1.80%	8.15%	2.22%	0.00%	Caribbean
Uganda	B2	6.21%	13.57%	7.64%	30.00%	Africa
Ukraine	Caa1	8.46%	16.34%	10.41%	18.00%	Eastern Europe & Russia
United Arab Emirates	Aa2	0.56%	6.62%	0.69%	55.00%	Middle East
United Kingdom	Aa2	0.56%	6.62%	0.69%	19.00%	Western Europe
United States	Aaa	0.00%	5.93%	0.00%	25.00%	North America
Uruguay	Baa2	2.15%	8.57%	2.64%	25.00%	Central and South America
Venezuela	C	18.00%	28.07%	22.14%	34.00%	Central and South America
Vietnam	Ba3	4.06%	10.93%	5.00%	20.00%	Asia
Yemen, Republic	NA	18.00%	28.07%	22.14%	20.00%	Africa
Zambia	Caa1	8.46%	16.34%	10.41%	35.00%	Africa
Zimbabwe	NA	10.16%	18.43%	12.50%	25.00%	Africa
	ERP	Default Spread	Tax rate	CRP
Africa & Mid East	9.48%	2.69%	29.25%	3.55%
Australia, NZ & Canada	5.93%	0.00%	28.04%	0.00%
Latin America & Caribbean	10.71%	2.00%	27.15%	4.78%
Japan	6.91%	0.72%	30.86%	0.98%
US	5.93%	0.00%	25.00%	0.00%
Europe	7.08%	0.82%	22.29%	1.15%
Emerging Markets	8.50%	0.93%	26.79%	2.57%
Asia	7.40%	0.78%	26.65%	1.47%
North America	5.93%	0.00%	25.00%	0.00%
Global	7.36%	1.16%	25.40%	1.43%

Synthetic rating

Inputs for synthetic rating estimation
Please read the special cases worksheet (see below) before you use this spreadsheet.
Before you use this spreadsheet, make sure that the iteration box (under calculation options in excel) is checked.
Enter the type of firm =		1
Enter current Earnings before interest and taxes (EBIT) =				$ (20.27) Aswath Damodaran: Aswath Damodaran: If your most recent year's operating income is unusually low or high, you can use the average operating income from the last few years.	(Add back only long term interest expense for financial firms)
Enter current interest expenses =				$3.23 Aswath Damodaran: Aswath Damodaran: Enter the interest expense from the most recent income statement.	(Use only long term interest expense for financial firms)
Enter long term risk free rate =				1.70% Aswath Damodaran: Aswath Damodaran: I use a 10 year government bond rate.
Output
Interest coverage ratio =			-100000.00
Estimated Bond Rating =			D2/D	Note: If you get REF! All over the place, set the operating lease commitment question in cell F5
Estimated Company Default Spread =			19.38%	to No, and then reset it to Yes. It should work.
Estimated County Default Spread (if any) =			0.00%
Estimated Cost of Debt =			21.08%
If you want to update the spreads listed below, please visit http://www.bondsonline.com
For large manufacturing firms
If interest coverage ratio is
>	≤ to	Rating is	Spread is
-100000	0.199999	D2/D	19.38%
0.2	0.649999	Caa/CCC	14.54%
0.65	0.799999	Ca2/CC	11.08%
0.8	1.249999	C2/C	9.00%
1.25	1.499999	B3/B-	6.60%
1.5	1.749999	B2/B	5.40%
1.75	1.999999	B1/B+	4.50%
2	2.2499999	Ba2/BB	3.60%
2.25	2.49999	Ba1/BB+	3.00%
2.5	2.999999	Baa2/BBB	2.00%
3	4.249999	A3/A-	1.56%
4.25	5.499999	A2/A	1.38%
5.5	6.499999	A1/A+	1.25%
6.5	8.499999	Aa2/AA	1.00%
8.50	100000	Aaa/AAA	0.75%
For smaller and riskier firms
If interest coverage ratio is
greater than	≤ to	Rating is	Spread is
-100000	0.499999	D2/D	19.38%		Rating is	Spread is
0.5	0.799999	Caa/CCC	14.54%		A1/A+	1.25%
0.8	1.249999	Ca2/CC	11.08%		A2/A	1.38%
1.25	1.499999	C2/C	9.00%		A3/A-	1.56%
1.5	1.999999	B3/B-	6.60%		Aa2/AA	1.00%
2	2.499999	B2/B	5.40%		Aaa/AAA	0.75%
2.5	2.999999	B1/B+	4.50%		B1/B+	4.50%
3	3.499999	Ba2/BB	3.60%		B2/B	5.40%
3.5	3.9999999	Ba1/BB+	3.00%		B3/B-	6.60%
4	4.499999	Baa2/BBB	2.00%		Ba1/BB+	3.00%
4.5	5.999999	A3/A-	1.56%		Ba2/BB	3.60%
6	7.499999	A2/A	1.38%		Baa2/BBB	2.00%
7.5	9.499999	A1/A+	1.25%		C2/C	9.00%
9.5	12.499999	Aa2/AA	1.00%		Ca2/CC	11.08%
12.5	100000	Aaa/AAA	0.75%		Caa/CCC	14.54%
					D2/D	19.38%

Industry Average Beta (US)

Industry Name	Number of firms	Annual Average Revenue growth - Last 5 years	Pre-tax Operating Margin (Unadjusted)	After-tax ROC	Average effective tax rate	Unlevered Beta	Equity (Levered) Beta	Cost of equity	Std deviation in stock prices	Pre-tax cost of debt	Market Debt/Capital	Cost of capital	Sales/Capital	EV/Sales	EV/EBITDA	EV/EBIT	Price/Book	Trailing PE	Non-cash WC as % of Revenues	Cap Ex as % of Revenues	Net Cap Ex as % of Revenues	Reinvestment Rate	ROE	Dividend Payout Ratio	Equity Reinvestment Rate
Advertising	48	23.49%	11.62%	64.62%	34.30%	0.87	1.22	9.93%	66.44%	5.43%	41.54%	7.49%	5.78	1.57	7.86	12.66	5.54	10.81	0.72%	1.92%	1.12%	15.18%	22.55%	99.12%	99.12%
Aerospace/Defense	85	1.63%	11.94%	39.77%	24.94%	1.09	1.24	10.07%	40.77%	4.56%	20.25%	8.72%	3.72	1.84	12.06	15.30	5.75	33.83	33.74%	2.66%	5.65%	77.74%	32.01%	38.06%	38.06%
Air Transport	18	6.65%	10.71%	13.64%	16.16%	0.63	1.02	8.77%	34.19%	4.18%	47.32%	6.10%	1.40	1.25	6.18	12.07	2.46	7.99	1.96%	11.08%	5.78%	62.77%	27.62%	14.68%	14.68%
Apparel	50	20.06%	10.09%	14.25%	34.53%	0.76	0.93	8.23%	48.89%	4.56%	25.93%	6.98%	1.62	1.66	10.08	16.04	3.09	55.05	25.65%	2.63%	1.70%	70.23%	11.32%	59.70%	59.70%
Auto & Truck	14	16.51%	4.21%	3.63%	53.34%	0.34	0.79	7.41%	38.24%	4.18%	66.15%	4.58%	0.90	1.18	10.57	27.65	1.63	17.75	-6.65%	10.94%	4.52%	110.14%	7.32%	80.58%	80.58%
Auto Parts	52	9.57%	8.88%	20.63%	25.52%	0.97	1.17	9.63%	44.28%	4.56%	28.55%	7.86%	2.50	0.67	5.20	7.41	1.91	18.92	11.25%	4.39%	3.67%	68.44%	20.40%	16.70%	16.70%
Bank (Money Center)	10	4.94%	0.00%	-0.01%	39.83%	0.43	0.71	6.93%	18.29%	3.58%	67.09%	4.08%	0.14	5.48	NA	NA	1.02	12.69	NA	0.99%	1.07%	NA	8.42%	34.08%	34.08%
Banks (Regional)	633	9.77%	0.00%	-0.01%	22.30%	0.40	0.57	6.07%	20.60%	3.58%	43.35%	4.60%	0.27	5.24	NA	NA	1.17	25.30	NA	3.99%	3.94%	NA	11.48%	27.21%	27.21%
Beverage (Alcoholic)	31	7.83%	22.39%	18.21%	6.63%	1.05	1.30	10.42%	33.49%	4.18%	25.47%	8.57%	0.83	3.87	13.58	17.23	2.48	20.16	14.88%	7.36%	4.58%	26.09%	25.34%	19.56%	19.56%
Beverage (Soft)	37	17.97%	20.76%	26.12%	51.11%	1.04	1.18	9.70%	50.32%	4.56%	19.05%	8.50%	1.30	4.55	18.26	21.72	7.38	35.13	-2.56%	4.32%	4.46%	41.71%	24.29%	117.74%	117.74%
Broadcasting	24	8.33%	20.42%	24.90%	12.24%	0.51	1.02	8.76%	37.29%	4.18%	59.11%	5.44%	1.23	2.56	8.84	12.29	3.53	17.66	21.97%	2.48%	15.33%	92.85%	82.32%	14.15%	14.15%
Brokerage & Investment Banking	38	10.33%	0.41%	0.05%	38.78%	0.46	1.21	9.87%	32.08%	4.18%	74.79%	4.83%	0.19	5.56	NA	NA	1.14	28.79	NA	6.54%	5.90%	12558.91%	11.46%	23.42%	23.42%
Building Materials	42	9.46%	9.37%	20.16%	31.34%	0.91	1.10	9.21%	33.40%	4.18%	24.81%	7.70%	2.49	1.26	9.59	13.04	2.94	21.87	15.06%	3.16%	7.64%	123.59%	19.57%	18.22%	18.22%
Business & Consumer Services	168	8.25%	10.56%	24.97%	17.97%	1.00	1.22	9.94%	44.86%	4.56%	26.30%	8.22%	2.47	1.93	11.05	17.33	3.91	20.60	14.13%	3.10%	2.63%	45.10%	20.11%	26.08%	26.08%
Cable TV	14	17.76%	18.41%	14.06%	3.55%	0.76	1.13	9.43%	26.32%	4.18%	41.42%	6.82%	0.79	2.96	8.39	15.66	1.86	10.69	-0.25%	12.88%	-2.37%	-9.84%	36.40%	10.32%	10.32%
Chemical (Basic)	39	8.44%	12.73%	19.17%	18.68%	1.12	1.55	11.92%	54.33%	4.56%	39.93%	8.52%	1.61	1.10	5.62	8.54	1.80	13.47	20.40%	5.58%	3.54%	52.78%	29.23%	17.89%	17.89%
Chemical (Diversified)	6	-1.16%	13.59%	16.62%	4.00%	1.49	1.82	13.51%	32.60%	4.18%	26.90%	10.72%	1.19	1.65	8.03	12.12	1.28	18.59	22.70%	4.96%	3.31%	4.44%	5.02%	83.11%	83.11%
Chemical (Specialty)	89	6.17%	13.65%	17.23%	26.47%	0.99	1.17	9.65%	42.33%	4.56%	24.60%	8.12%	1.37	2.37	11.35	16.93	3.22	24.65	18.22%	5.42%	5.23%	62.54%	16.73%	33.33%	33.33%
Coal & Related Energy	23	-7.96%	7.99%	13.59%	5.32%	0.97	1.17	9.64%	53.58%	4.56%	40.26%	7.14%	1.61	0.74	3.37	7.85	1.38	10.44	3.83%	5.15%	-4.50%	-88.11%	21.78%	11.93%	11.93%
Computer Services	119	27.22%	8.35%	26.66%	38.85%	1.05	1.27	10.25%	41.69%	4.56%	28.15%	8.32%	3.39	1.01	7.99	11.68	3.07	19.29	12.18%	1.90%	0.03%	3.34%	16.46%	63.37%	63.37%
Computers/Peripherals	57	2.07%	16.34%	22.26%	20.81%	1.50	1.68	12.69%	49.87%	4.56%	20.08%	10.83%	1.41	2.08	9.39	12.65	5.27	50.94	-8.73%	3.96%	0.64%	-0.60%	33.65%	25.77%	25.77%
Construction Supplies	48	6.27%	11.79%	16.87%	35.46%	1.15	1.45	11.34%	32.24%	4.18%	31.45%	8.76%	1.61	1.47	9.07	12.31	2.95	14.37	16.00%	5.37%	4.35%	89.37%	22.72%	30.17%	30.17%
Diversified	23	5.24%	12.93%	10.93%	13.17%	1.14	1.36	10.78%	39.46%	4.18%	26.18%	8.78%	0.91	2.24	12.28	17.26	1.71	18.64	5.98%	5.10%	1.67%	15.13%	9.23%	24.57%	24.57%
Drugs (Biotechnology)	481	33.89%	19.31%	9.50%	49.72%	1.43	1.51	11.69%	68.96%	5.43%	15.91%	10.48%	0.42	6.46	11.99	26.12	6.24	68.57	13.44%	4.32%	17.93%	306.39%	-1.57%	0.13%	0.13%
Drugs (Pharmaceutical)	237	70.67%	23.30%	16.79%	53.29%	1.38	1.47	11.41%	72.45%	5.43%	12.56%	10.49%	0.70	4.79	13.46	20.00	4.85	106.46	22.15%	4.59%	0.00%	-3.53%	12.55%	98.10%	98.10%
Education	35	-0.48%	9.21%	13.16%	18.68%	1.11	1.28	10.29%	37.66%	4.18%	23.51%	8.61%	1.47	2.16	11.59	22.80	2.41	48.47	11.63%	4.89%	1.17%	45.46%	11.16%	4.24%	4.24%
Electrical Equipment	116	-0.10%	13.25%	26.85%	24.30%	1.18	1.32	10.56%	57.29%	4.56%	18.13%	9.27%	2.03	2.10	10.86	14.90	3.81	20.89	19.15%	4.36%	9.26%	102.97%	18.97%	66.70%	66.70%
Electronics (Consumer & Office)	19	6.39%	-2.23%	-3.51%	36.86%	1.22	1.19	9.78%	62.71%	4.56%	8.90%	9.21%	1.81	1.34	22.43	NA	5.31	56.33	14.06%	2.34%	-0.84%	NA	-33.49%	0.00%	0.00%
Electronics (General)	160	7.79%	9.52%	14.44%	67.64%	0.96	1.02	8.74%	46.69%	4.56%	16.23%	7.87%	1.59	1.64	10.46	16.63	2.66	46.32	20.36%	5.72%	9.43%	189.46%	4.16%	58.80%	58.80%
Engineering/Construction	52	11.39%	4.06%	21.26%	28.88%	0.81	1.01	8.68%	40.14%	4.56%	32.83%	6.96%	5.31	0.58	8.22	13.18	1.42	19.49	17.23%	1.60%	3.56%	157.90%	9.33%	16.69%	16.69%
Entertainment	120	9.11%	17.96%	26.85%	12.13%	1.21	1.33	10.61%	54.34%	4.56%	16.57%	9.42%	1.53	3.45	14.18	19.28	3.91	64.02	9.70%	4.45%	1.98%	26.03%	21.71%	20.01%	20.01%
Environmental & Waste Services	91	9.50%	11.82%	21.22%	3.13%	0.96	1.19	9.78%	46.15%	4.56%	25.17%	8.18%	1.78	2.61	11.67	20.97	3.50	30.92	10.29%	7.71%	3.68%	34.64%	17.95%	36.08%	36.08%
Farming/Agriculture	33	2.76%	5.19%	8.77%	28.29%	0.50	0.72	6.95%	29.07%	4.18%	39.85%	5.43%	1.77	0.93	11.35	17.35	2.07	41.10	12.15%	3.13%	4.98%	208.08%	13.31%	35.72%	35.72%
Financial Svcs. (Non-bank & Insurance)	259	10.73%	8.70%	0.25%	47.30%	0.08	0.70	6.87%	27.33%	4.18%	91.92%	3.44%	0.04	28.99	NA	NA	1.86	50.79	NA	8.22%	9.31%	105.39%	0.12%	19.75%	19.75%
Food Processing	83	6.54%	13.22%	20.19%	9.23%	0.61	0.81	7.51%	27.46%	4.18%	31.88%	6.12%	1.59	2.01	11.69	14.98	1.97	21.98	6.63%	3.63%	13.22%	108.57%	19.49%	34.87%	34.87%
Food Wholesalers	18	11.49%	3.12%	23.33%	16.55%	1.23	1.62	12.36%	40.99%	4.56%	30.97%	9.59%	7.68	0.53	11.27	16.48	4.29	18.84	7.31%	1.15%	1.99%	77.10%	27.62%	30.38%	30.38%
Furn/Home Furnishings	30	10.60%	8.31%	14.66%	27.47%	0.67	0.88	7.95%	43.51%	4.56%	33.63%	6.43%	2.03	0.98	7.51	11.18	1.98	36.53	14.77%	4.27%	4.32%	74.81%	6.33%	55.10%	55.10%
Green & Renewable Energy	21	3.44%	16.15%	2.42%	0.00%	0.80	1.62	12.34%	69.48%	5.43%	59.42%	7.43%	0.19	8.90	15.57	68.28	1.09	16.64	6.42%	24.05%	51.62%	432.94%	5.63%	149.32%	149.32%
Healthcare Products	248	13.97%	15.30%	16.56%	38.59%	1.04	1.12	9.37%	56.32%	4.56%	12.94%	8.60%	1.08	5.00	19.33	31.50	4.36	87.60	22.60%	5.32%	16.31%	167.67%	6.15%	50.68%	50.68%
Healthcare Support Services	111	12.49%	4.53%	43.96%	18.01%	1.03	1.15	9.56%	48.13%	4.56%	26.59%	7.92%	10.79	0.63	10.70	14.11	3.15	38.68	-5.20%	0.82%	1.88%	53.24%	16.73%	24.81%	24.81%
Heathcare Information and Technology	119	14.63%	13.11%	14.78%	29.07%	1.18	1.29	10.36%	53.01%	4.56%	14.70%	9.34%	1.13	4.58	19.33	33.18	4.14	195.14	22.46%	3.96%	6.15%	83.38%	10.95%	7.56%	7.56%
Homebuilding	31	23.69%	10.51%	11.55%	30.60%	0.72	0.98	8.53%	34.08%	4.18%	38.36%	6.46%	1.44	0.99	8.71	9.26	1.23	10.45	73.90%	0.66%	2.74%	79.36%	17.04%	8.34%	8.34%
Hospitals/Healthcare Facilities	34	4.00%	10.13%	14.13%	28.87%	0.55	1.12	9.34%	49.69%	4.56%	58.29%	5.89%	1.53	1.45	8.63	14.62	6.10	17.87	11.87%	5.75%	2.75%	88.62%	13.84%	58.95%	58.95%
Hotel/Gaming	70	8.33%	20.42%	14.23%	12.89%	0.71	1.01	8.68%	35.01%	4.18%	38.99%	6.52%	0.79	3.26	10.60	16.41	2.87	17.27	6.87%	10.92%	9.12%	51.59%	31.85%	30.94%	30.94%
Household Products	141	7.40%	17.56%	26.99%	29.59%	1.00	1.13	9.42%	54.64%	4.56%	17.44%	8.37%	1.64	3.04	13.38	17.14	5.59	40.46	11.72%	4.12%	1.88%	9.78%	13.42%	102.34%	102.34%
Information Services	71	12.09%	26.86%	38.95%	23.04%	1.05	1.12	9.36%	37.11%	4.18%	13.09%	8.55%	1.58	6.36	18.78	23.40	7.45	34.03	4.27%	3.38%	2.55%	18.22%	30.29%	22.46%	22.46%
Insurance (General)	20	7.09%	11.00%	6.95%	94.79%	0.67	0.87	7.88%	24.63%	3.58%	32.37%	6.20%	0.73	1.63	9.15	14.65	1.16	18.82	-26.41%	1.47%	2.94%	14.43%	-1.49%	0.28%	0.28%
Insurance (Life)	23	0.60%	10.93%	8.45%	1.57%	0.70	1.11	9.29%	27.64%	4.18%	51.16%	6.14%	0.80	1.34	10.58	11.85	0.82	10.78	17.10%	0.17%	0.29%	7.12%	11.93%	20.75%	20.75%
Insurance (Prop/Cas.)	50	7.57%	12.29%	11.99%	15.58%	0.65	0.74	7.09%	23.90%	3.58%	20.29%	6.20%	1.15	1.34	9.26	10.82	1.56	18.25	-45.81%	0.67%	0.30%	9.62%	14.03%	24.62%	24.62%
Investments & Asset Management	172	5.19%	19.25%	8.22%	17.93%	0.87	1.10	9.26%	35.43%	4.18%	40.24%	6.79%	0.47	3.80	16.80	19.21	1.36	29.80	NA	2.60%	5.09%	34.11%	16.18%	33.61%	33.61%
Machinery	127	4.01%	13.85%	25.82%	29.93%	1.01	1.17	9.66%	34.36%	4.18%	21.22%	8.27%	2.10	2.00	10.79	14.11	3.31	25.33	22.23%	2.93%	7.64%	90.27%	17.24%	31.11%	31.11%
Metals & Mining	94	31.61%	23.70%	26.71%	45.47%	1.11	1.32	10.56%	75.46%	8.43%	29.47%	9.31%	1.16	1.41	4.09	5.54	1.73	43.79	13.83%	7.59%	0.26%	9.27%	16.62%	31.42%	31.42%
Office Equipment & Services	24	3.03%	7.39%	18.43%	20.10%	1.33	1.81	13.49%	39.46%	4.18%	38.03%	9.55%	2.70	0.87	7.43	11.07	2.37	17.40	9.11%	2.63%	6.56%	113.15%	17.35%	48.50%	48.50%
Oil/Gas (Integrated)	5	-6.89%	8.45%	7.99%	12.64%	1.06	1.16	9.58%	17.62%	3.58%	14.71%	8.57%	1.03	1.38	7.70	16.14	1.46	12.96	3.66%	8.25%	-0.80%	-4.44%	11.82%	58.96%	58.96%
Oil/Gas (Production and Exploration)	301	-1.88%	13.74%	7.19%	16.58%	1.07	1.45	11.34%	57.36%	4.56%	35.56%	8.52%	0.52	2.72	5.73	18.77	1.30	22.08	-3.22%	46.14%	20.29%	185.69%	8.98%	23.25%	23.25%
Oil/Gas Distribution	20	17.17%	16.61%	7.24%	36.17%	0.62	1.07	9.06%	36.03%	4.18%	50.32%	6.08%	0.47	3.43	12.30	20.39	1.36	55.40	4.20%	23.86%	13.79%	114.10%	6.75%	157.94%	157.94%
Oilfield Svcs/Equip.	134	4.99%	4.74%	13.71%	12.01%	1.07	1.33	10.59%	49.29%	4.56%	31.87%	8.31%	2.90	0.64	7.19	12.90	1.17	21.75	8.46%	3.75%	1.62%	51.03%	10.19%	46.59%	46.59%
Packaging & Container	27	3.09%	10.55%	17.68%	23.09%	0.74	1.07	9.09%	27.47%	4.18%	39.91%	6.71%	1.89	1.34	8.03	12.51	2.62	17.57	10.69%	5.75%	6.62%	78.91%	27.34%	28.16%	28.16%
Paper/Forest Products	20	6.93%	7.64%	15.40%	21.68%	1.17	1.40	11.00%	42.72%	4.56%	32.60%	8.53%	2.18	0.59	4.76	7.58	1.21	33.35	12.77%	4.48%	0.62%	20.25%	8.45%	41.71%	41.71%
Power	51	4.99%	18.88%	6.91%	15.51%	0.35	0.54	5.92%	20.53%	3.58%	44.26%	4.49%	0.43	3.52	10.37	18.95	1.68	23.03	4.94%	30.78%	18.82%	119.37%	9.27%	66.78%	66.78%
Precious Metals	91	-9.33%	10.29%	4.65%	114.81%	1.15	1.19	9.78%	74.54%	5.43%	17.52%	8.78%	0.45	3.13	8.15	29.54	1.40	263.95	15.00%	20.60%	0.48%	121.63%	-2.95%	0.07%	0.07%
Publishing & Newspapers	33	-0.99%	7.29%	14.98%	46.48%	0.90	1.26	10.16%	39.32%	4.18%	41.22%	7.26%	2.34	0.90	6.84	12.31	1.25	37.88	14.22%	3.10%	8.84%	171.50%	-2.30%	0.92%	0.92%
R.E.I.T.	238	14.61%	25.73%	3.17%	2.17%	0.41	0.68	6.72%	21.22%	3.58%	47.56%	4.80%	0.14	10.64	19.20	42.23	1.88	36.58	61.60%	3.41%	-4.80%	-20.16%	9.49%	130.47%	130.47%
Real Estate (Development)	18	9.84%	9.07%	0.88%	0.00%	0.87	1.19	9.80%	40.78%	4.56%	40.99%	7.19%	0.18	7.15	33.80	140.56	1.30	13.73	23.16%	26.99%	16.22%	305.83%	5.36%	0.00%	0.00%
Real Estate (General/Diversified)	11	14.62%	34.01%	11.99%	15.51%	1.33	1.36	10.81%	21.50%	3.58%	33.26%	8.11%	0.38	4.38	6.97	10.70	0.82	21.51	215.51%	0.97%	-5.56%	89.78%	18.28%	5.81%	5.81%
Real Estate (Operations & Services)	59	7.70%	7.13%	11.08%	33.50%	0.95	1.35	10.70%	42.49%	4.56%	39.52%	7.82%	1.68	1.44	10.74	19.01	2.05	18.37	11.92%	1.47%	-0.49%	-5.90%	15.87%	15.79%	15.79%
Recreation	72	4.93%	8.80%	12.73%	36.80%	0.81	0.98	8.51%	42.73%	4.56%	26.64%	7.16%	1.55	1.90	12.32	21.27	3.86	21.26	18.90%	4.72%	6.29%	88.73%	9.03%	92.55%	92.55%
Reinsurance	2	6.61%	11.85%	11.03%	10.63%	0.88	0.97	8.46%	16.27%	3.58%	23.00%	7.13%	1.04	1.04	8.11	8.86	1.04	7.52	-0.61%	0.35%	0.21%	20.97%	16.74%	4.93%	4.93%
Restaurant/Dining	78	6.75%	15.78%	18.90%	26.33%	0.65	0.80	7.44%	38.18%	4.18%	26.21%	6.31%	1.45	3.50	13.79	24.41	NA	30.27	0.81%	6.81%	5.55%	52.45%	0.13%	44.53%	44.53%
Retail (Automotive)	24	10.28%	5.69%	11.37%	17.13%	0.76	1.15	9.56%	33.22%	4.18%	41.83%	6.87%	2.39	0.94	11.21	17.84	5.12	11.74	12.94%	1.92%	1.57%	35.37%	41.49%	3.68%	3.68%
Retail (Building Supply)	17	4.68%	11.14%	26.26%	26.73%	0.97	1.12	9.34%	46.94%	4.56%	18.59%	8.24%	3.01	1.64	10.97	14.98	19.28	27.48	6.89%	2.31%	0.45%	6.39%	95.94%	40.64%	40.64%
Retail (Distributors)	88	6.75%	8.01%	15.56%	17.65%	0.99	1.44	11.26%	44.59%	4.56%	39.63%	8.15%	2.03	1.16	10.84	13.80	2.40	18.93	17.75%	6.71%	11.93%	198.10%	22.71%	21.79%	21.79%
Retail (General)	19	1.79%	4.36%	14.89%	21.66%	0.75	0.91	8.12%	39.63%	4.18%	25.42%	6.85%	4.05	0.70	9.31	16.77	3.73	18.48	2.07%	2.34%	1.71%	46.74%	14.10%	59.13%	59.13%
Retail (Grocery and Food)	12	5.75%	2.14%	8.77%	0.69%	0.28	0.45	5.37%	33.06%	4.18%	45.48%	4.35%	4.70	0.39	7.50	20.16	2.69	12.67	0.07%	2.69%	0.86%	48.29%	41.64%	12.24%	12.24%
Retail (Online)	79	8.62%	6.54%	11.57%	18.43%	1.34	1.42	11.12%	54.22%	4.56%	10.71%	10.30%	1.99	3.32	23.40	53.91	6.11	38.96	-1.18%	5.54%	1.13%	36.31%	29.66%	0.66%	0.66%
Retail (Special Lines)	91	3.18%	6.35%	14.12%	25.22%	0.80	1.07	9.06%	49.17%	4.56%	34.05%	7.14%	2.53	0.95	7.34	14.60	3.88	15.49	7.89%	2.24%	1.73%	41.09%	24.37%	34.20%	34.20%
Rubber& Tires	4	-8.35%	7.43%	8.28%	55.78%	0.24	0.42	5.17%	29.03%	4.18%	54.47%	4.06%	1.37	0.72	5.02	8.86	1.04	28.85	16.35%	5.56%	0.62%	-4.00%	8.23%	31.07%	31.07%
Semiconductor	72	10.50%	29.61%	22.70%	30.05%	1.26	1.34	10.64%	42.66%	4.56%	12.39%	9.75%	0.82	3.71	8.92	12.45	3.72	77.82	16.87%	14.04%	15.43%	73.74%	23.01%	34.31%	34.31%
Semiconductor Equip	41	10.31%	23.99%	26.86%	29.97%	1.39	1.39	10.96%	48.66%	4.56%	14.22%	9.88%	1.25	1.94	6.74	8.04	3.52	17.63	24.91%	4.41%	3.60%	50.05%	26.22%	21.16%	21.16%
Shipbuilding & Marine	9	9.08%	7.53%	7.40%	0.00%	0.78	1.08	9.10%	55.89%	4.56%	36.19%	7.05%	0.87	1.70	9.20	18.43	1.17	7.79	18.46%	15.25%	16.46%	201.99%	10.30%	6.73%	6.73%
Shoe	10	3.07%	11.73%	21.54%	49.58%	0.74	0.75	7.18%	38.65%	4.18%	6.92%	6.90%	2.29	2.76	17.49	23.91	9.30	30.10	19.46%	0.42%	-1.57%	-22.12%	16.54%	49.12%	49.12%
Software (Entertainment)	92	23.51%	27.62%	19.76%	33.19%	1.27	1.26	10.18%	65.58%	5.43%	2.14%	10.04%	0.69	5.90	16.22	21.43	4.30	48.65	6.33%	17.48%	13.88%	85.63%	15.31%	0.00%	0.00%
Software (Internet)	44	32.87%	11.22%	15.59%	16.52%	1.31	1.46	11.37%	51.90%	4.56%	17.80%	9.95%	1.20	6.69	18.98	42.57	14.04	70.27	10.31%	4.79%	25.68%	284.29%	5.52%	0.00%	0.00%
Software (System & Application)	355	16.90%	21.28%	16.47%	47.58%	1.16	1.23	10.00%	50.68%	4.56%	11.40%	9.25%	0.75	6.99	20.21	29.57	8.03	109.84	11.27%	6.58%	9.77%	103.56%	13.47%	58.53%	58.53%
Steel	37	3.30%	8.85%	22.43%	9.26%	1.29	1.62	12.33%	44.32%	4.56%	33.44%	9.35%	2.61	0.64	5.15	7.13	1.39	6.67	20.93%	3.55%	2.26%	64.79%	27.10%	15.53%	15.53%
Telecom (Wireless)	21	4.06%	10.19%	6.66%	0.54%	0.71	1.26	10.21%	44.49%	4.56%	53.66%	6.57%	0.66	2.12	5.82	20.31	1.44	11.58	1.58%	21.49%	2.12%	40.96%	27.69%	0.78%	0.78%
Telecom. Equipment	98	14.43%	17.41%	13.65%	84.28%	1.02	1.09	9.18%	45.72%	4.56%	15.29%	8.30%	0.79	3.37	14.07	18.97	4.07	51.47	17.41%	3.37%	10.47%	106.98%	2.24%	302.59%	302.59%
Telecom. Services	67	5.80%	18.54%	17.46%	0.38%	0.74	1.22	9.94%	54.23%	4.56%	47.15%	6.87%	0.99	2.58	7.11	14.00	1.75	21.22	1.80%	13.77%	12.71%	79.43%	36.99%	38.89%	38.89%
Tobacco	17	34.54%	39.97%	64.53%	19.78%	1.13	1.29	10.37%	48.08%	4.56%	20.15%	8.97%	1.73	4.32	10.08	10.78	28.74	17.11	15.52%	3.44%	3.70%	17.03%	-2.52%	69.47%	69.47%
Transportation	19	20.83%	8.43%	23.38%	12.93%	0.90	1.14	9.49%	33.82%	4.18%	29.81%	7.59%	2.94	1.16	8.29	13.78	4.66	17.67	7.99%	7.08%	3.68%	62.77%	45.36%	29.32%	29.32%
Transportation (Railroads)	10	3.01%	36.64%	19.93%	0.00%	2.08	2.47	17.39%	20.12%	3.58%	21.22%	14.27%	0.55	5.17	10.71	14.14	3.56	35.65	2.90%	15.26%	5.05%	16.47%	51.74%	15.08%	15.08%
Trucking	28	6.64%	7.31%	10.53%	3.57%	0.71	1.22	9.94%	41.51%	4.56%	50.76%	6.63%	1.30	1.30	8.19	15.79	2.01	8.56	6.69%	19.78%	14.73%	198.30%	29.77%	7.08%	7.08%
Utility (General)	18	2.40%	17.23%	6.73%	15.04%	0.17	0.27	4.27%	15.34%	3.58%	41.64%	3.61%	0.46	3.69	12.40	21.49	1.96	17.90	5.72%	27.49%	15.21%	106.69%	12.17%	63.65%	63.65%
Utility (Water)	19	6.41%	30.82%	8.44%	31.49%	0.32	0.42	5.21%	22.94%	3.58%	30.07%	4.45%	0.30	7.35	15.85	23.71	3.05	76.63	7.81%	45.80%	41.85%	198.73%	15.57%	65.23%	38.97%
Total Market	7209	11.21%	11.31%	7.40%	27.38%	0.80	1.12	9.38%	42.67%	4.56%	39.99%	7.00%	0.71	2.71	14.77	23.48	2.66	35.33	-24.07%	6.15%	4.64%	60.50%	15.57%	38.97%	38.97%
Total Market (without financials)	6004	11.66%	11.85%	14.10%	25.32%	1.00	1.21	9.87%	46.24%	4.56%	25.66%	8.22%	1.25	2.20	11.31	18.16	3.18	36.26	8.62%	6.52%	4.79%	58.77%	16.88%	41.33%	41.33%

Industry Average Beta (Global)

Industry Name	Number of firms	Annual Average Revenue growth - Last 5 years	Pre-tax Operating Margin (Unadjusted)	After-tax ROC	Average effective tax rate	Unlevered Beta	Equity (Levered) Beta	Cost of equity	Std deviation in stock prices	Pre-tax cost of debt	Market Debt/Capital	Cost of capital	Sales/Capital	EV/Sales	EV/EBITDA	EV/EBIT	Price/Book	Trailing PE	Non-cash WC as % of Revenues	Cap Ex as % of Revenues	Net Cap Ex as % of Revenues	Reinvestment Rate	ROE	Dividend Payout Ratio	Equity Reinvestment Rate
Advertising	303	10.24%	9.52%	25.41%	24.62%	0.91	1.10	10.88%	48.59%	5.75%	32.12%	8.76%	3.05	1.40	8.64	13.87	1.86	42.51	-3.63%	2.15%	1.93%	34.23%	12.70%	52.74%	52.74%
Aerospace/Defense	234	7.37%	9.91%	23.15%	24.60%	1.06	1.17	11.38%	40.22%	5.75%	20.18%	9.95%	2.65	1.62	11.97	16.14	4.53	47.83	30.71%	3.17%	4.27%	76.28%	25.16%	37.82%	37.82%
Air Transport	162	8.01%	9.47%	8.48%	19.89%	0.59	0.94	9.65%	31.42%	5.37%	48.43%	6.92%	1.07	1.38	6.54	14.73	1.76	16.12	-0.97%	11.63%	5.50%	74.88%	15.32%	36.42%	36.42%
Apparel	1148	4.01%	11.37%	15.21%	24.53%	0.75	0.83	8.83%	37.15%	5.37%	19.66%	7.88%	1.51	1.86	10.31	15.47	2.69	29.68	21.58%	3.87%	3.69%	64.70%	12.78%	49.56%	49.56%
Auto & Truck	133	9.28%	5.92%	5.79%	21.26%	0.80	1.31	12.36%	31.55%	5.37%	53.62%	7.88%	1.15	0.84	8.10	13.95	1.00	27.63	4.35%	6.73%	3.33%	79.99%	12.83%	32.98%	32.98%
Auto Parts	681	7.00%	6.65%	10.25%	25.06%	1.09	1.20	11.58%	35.52%	5.37%	26.49%	9.58%	1.79	0.67	5.94	9.81	1.23	30.07	11.61%	5.96%	5.15%	123.12%	10.78%	33.67%	33.67%
Bank (Money Center)	617	12.67%	0.01%	0.02%	24.28%	0.38	0.78	8.45%	23.46%	4.77%	71.85%	4.94%	0.13	7.42	NA	NA	0.95	15.78	NA	4.26%	4.57%	3314.37%	10.11%	36.20%	36.20%
Banks (Regional)	872	8.66%	-0.04%	-0.00%	23.05%	0.47	0.63	7.33%	22.18%	4.77%	63.68%	4.93%	0.26	3.98	NA	NA	0.84	21.75	NA	6.44%	6.44%	NA	13.19%	20.36%	20.36%
Beverage (Alcoholic)	220	5.97%	21.33%	12.66%	20.69%	0.80	0.92	9.54%	30.04%	5.37%	22.13%	8.31%	0.71	3.60	12.39	15.78	2.95	33.81	9.54%	4.55%	2.21%	13.36%	16.03%	54.26%	54.26%
Beverage (Soft)	97	4.93%	16.39%	20.77%	44.56%	0.68	0.76	8.32%	34.12%	5.37%	19.22%	7.49%	1.41	3.39	16.12	20.41	5.19	31.82	-0.07%	4.26%	3.14%	33.13%	18.70%	92.00%	92.00%
Broadcasting	135	4.73%	16.03%	16.80%	22.40%	0.61	0.90	9.36%	35.76%	5.37%	43.11%	7.05%	1.22	1.89	8.28	11.52	1.76	37.19	15.76%	4.03%	7.33%	64.73%	15.14%	44.47%	44.47%
Brokerage & Investment Banking	553	19.48%	0.55%	0.10%	32.21%	0.42	1.10	10.81%	38.09%	5.37%	73.43%	5.81%	0.16	6.76	NA	NA	1.08	37.82	NA	5.22%	6.28%	8908.58%	8.20%	53.48%	53.48%
Building Materials	416	6.23%	8.76%	12.34%	24.72%	0.81	0.96	9.83%	34.06%	5.37%	26.64%	8.28%	1.68	1.14	8.58	12.52	1.65	34.39	17.18%	4.28%	4.65%	88.29%	11.16%	35.02%	35.02%
Business & Consumer Services	850	9.54%	8.56%	20.22%	20.74%	0.92	1.07	10.60%	43.11%	5.75%	23.54%	9.12%	2.88	1.51	11.07	16.66	3.27	55.47	11.54%	2.71%	2.58%	53.51%	16.54%	46.60%	46.60%
Cable TV	60	7.54%	16.84%	11.13%	5.78%	0.72	1.06	10.54%	32.63%	5.37%	41.40%	7.83%	0.74	3.05	8.46	17.55	2.09	64.91	-0.60%	14.04%	-1.71%	-5.65%	34.18%	10.23%	10.23%
Chemical (Basic)	785	7.55%	11.14%	12.21%	16.50%	0.95	1.08	10.71%	34.90%	5.37%	26.11%	8.96%	1.31	1.23	7.47	10.57	1.43	28.50	13.16%	6.95%	4.95%	82.25%	15.35%	39.83%	39.83%
Chemical (Diversified)	71	4.08%	11.46%	11.48%	16.22%	0.96	1.18	11.47%	33.20%	5.37%	29.73%	9.25%	1.20	1.25	7.01	10.82	1.23	33.52	22.60%	-7.68%	-8.32%	-78.25%	9.63%	49.41%	49.41%
Chemical (Specialty)	811	6.41%	12.20%	13.14%	22.23%	1.04	1.17	11.36%	38.95%	5.37%	21.86%	9.76%	1.27	1.89	10.15	15.10	2.33	40.88	17.96%	6.55%	4.08%	66.27%	13.88%	43.13%	43.13%
Coal & Related Energy	232	6.00%	18.19%	15.72%	24.42%	1.23	1.41	13.17%	59.57%	5.75%	35.33%	10.03%	0.94	1.22	4.51	6.56	1.02	16.04	-3.26%	7.28%	3.44%	31.98%	14.97%	50.78%	50.78%
Computer Services	998	8.32%	7.30%	21.33%	29.89%	1.01	1.12	10.95%	41.94%	5.75%	19.90%	9.63%	3.09	1.05	8.91	12.48	2.87	86.59	13.87%	1.76%	1.09%	35.34%	15.69%	44.79%	44.79%
Computers/Peripherals	340	4.05%	12.19%	17.55%	24.01%	1.35	1.45	13.47%	39.55%	5.37%	20.91%	11.49%	1.59	1.22	6.72	9.65	2.32	30.29	4.09%	5.35%	3.50%	50.02%	22.16%	26.48%	26.48%
Construction Supplies	746	5.84%	9.52%	9.64%	25.27%	0.92	1.14	11.12%	35.44%	5.37%	34.94%	8.63%	1.19	1.27	8.36	12.67	1.41	32.78	13.63%	4.61%	2.86%	70.84%	10.18%	47.21%	47.21%
Diversified	336	8.72%	11.50%	9.24%	18.11%	0.66	0.92	9.50%	27.21%	5.37%	41.73%	7.21%	0.95	1.46	8.82	12.40	1.01	23.26	-12.35%	4.83%	3.18%	46.04%	11.00%	22.30%	22.30%
Drugs (Biotechnology)	975	23.79%	17.23%	8.57%	42.45%	1.38	1.44	13.38%	61.80%	5.75%	14.28%	12.08%	0.43	6.69	13.44	30.64	5.16	178.31	18.42%	5.16%	14.61%	240.76%	0.98%	612.75%	612.75%
Drugs (Pharmaceutical)	1175	16.79%	18.57%	12.13%	30.47%	1.19	1.29	12.24%	46.12%	5.75%	15.85%	10.98%	0.72	3.66	12.93	19.13	3.06	41.34	18.94%	4.67%	7.33%	57.31%	12.47%	68.44%	68.44%
Education	189	6.56%	10.74%	10.96%	16.58%	1.06	1.16	11.27%	42.04%	5.75%	22.28%	9.71%	1.24	2.25	11.52	20.46	2.13	68.60	6.00%	6.55%	5.56%	78.82%	10.34%	32.88%	32.88%
Electrical Equipment	907	7.23%	8.21%	12.77%	20.73%	1.11	1.27	12.13%	40.81%	5.75%	26.01%	10.09%	1.43	1.44	8.65	13.32	1.85	71.35	24.21%	4.57%	4.67%	97.63%	10.53%	50.26%	50.26%
Electronics (Consumer & Office)	150	0.50%	5.23%	11.14%	23.84%	1.30	1.40	13.08%	42.12%	5.75%	30.59%	10.39%	2.07	0.58	6.19	10.37	1.33	57.29	3.04%	5.06%	4.27%	133.65%	13.87%	23.75%	23.75%
Electronics (General)	1318	5.99%	6.95%	11.20%	25.77%	1.36	1.37	12.83%	41.25%	5.75%	18.19%	11.27%	1.78	1.02	8.73	14.15	1.69	37.43	17.80%	6.25%	5.72%	159.81%	9.78%	37.59%	37.59%
Engineering/Construction	1183	5.49%	5.28%	9.60%	25.58%	0.88	1.16	11.28%	38.76%	5.37%	47.32%	7.84%	2.17	0.61	7.83	11.10	1.12	392.05	13.73%	3.20%	2.61%	128.75%	10.06%	55.08%	55.08%
Entertainment	634	12.25%	14.49%	17.27%	16.09%	1.24	1.31	12.41%	50.22%	5.75%	15.78%	11.13%	1.32	3.13	13.85	20.88	3.06	114.61	10.00%	4.25%	5.53%	66.27%	12.97%	29.31%	29.31%
Environmental & Waste Services	321	10.49%	11.16%	15.04%	13.16%	0.98	1.18	11.46%	46.63%	5.75%	26.61%	9.55%	1.48	2.17	11.23	18.33	2.56	723.78	11.11%	8.99%	6.78%	102.09%	13.34%	43.22%	43.22%
Farming/Agriculture	407	8.60%	5.62%	6.91%	25.63%	0.59	0.83	8.82%	35.15%	5.37%	39.49%	6.92%	1.35	1.05	11.39	18.09	1.57	195.66	15.55%	4.55%	4.21%	152.25%	8.65%	43.01%	43.01%
Financial Svcs. (Non-bank & Insurance)	1048	14.37%	7.97%	0.44%	36.26%	0.13	0.80	8.64%	33.87%	5.37%	88.12%	4.56%	0.07	15.63	139.32	185.81	1.20	42.73	NA	7.11%	7.91%	133.20%	15.40%	29.37%	29.37%
Food Processing	1234	7.72%	8.54%	12.51%	19.61%	0.66	0.78	8.43%	33.43%	5.37%	23.44%	7.39%	1.74	1.52	11.92	17.38	2.30	46.75	10.55%	4.53%	5.39%	87.72%	12.51%	48.90%	48.90%
Food Wholesalers	156	8.76%	2.68%	12.54%	21.14%	0.60	0.87	9.13%	34.50%	5.37%	43.18%	6.92%	5.41	0.42	9.32	14.64	1.61	39.93	5.25%	1.49%	1.48%	60.89%	12.03%	43.93%	43.93%
Furn/Home Furnishings	317	7.83%	7.93%	18.68%	18.73%	0.97	1.00	10.08%	33.85%	5.37%	21.77%	8.76%	2.73	0.98	8.29	11.35	2.05	28.41	9.06%	3.65%	2.98%	62.89%	16.31%	34.52%	34.52%
Green & Renewable Energy	189	18.75%	36.90%	7.67%	17.53%	0.65	1.04	10.37%	38.75%	5.37%	47.38%	7.36%	0.24	6.31	10.36	17.25	1.49	47.45	-1.84%	31.29%	14.43%	68.51%	10.20%	81.84%	81.84%
Healthcare Products	707	12.44%	15.08%	14.99%	34.01%	1.13	1.20	11.61%	48.90%	5.75%	12.70%	10.68%	1.03	4.24	17.73	26.99	3.83	55.91	23.62%	5.16%	10.41%	112.56%	8.10%	46.58%	46.58%
Healthcare Support Services	362	13.52%	4.66%	30.41%	19.26%	0.95	1.07	10.65%	40.03%	5.75%	27.35%	8.91%	7.79	0.65	10.33	13.96	2.62	38.73	-1.49%	1.10%	1.87%	57.07%	15.39%	27.51%	27.51%
Heathcare Information and Technology	357	17.78%	12.63%	12.67%	26.00%	1.23	1.32	12.45%	51.39%	5.75%	12.85%	11.40%	1.12	4.67	19.85	33.91	4.28	110.55	19.57%	5.08%	9.54%	121.66%	10.36%	13.36%	13.36%
Homebuilding	164	10.31%	10.64%	10.83%	27.10%	0.74	0.93	9.57%	35.35%	5.37%	36.40%	7.54%	1.38	0.95	7.39	9.18	1.21	18.68	60.64%	1.20%	2.24%	77.46%	15.47%	22.61%	22.61%
Hospitals/Healthcare Facilities	203	7.84%	10.36%	9.24%	25.42%	0.56	0.85	9.01%	33.72%	5.37%	43.80%	6.82%	1.17	1.94	10.92	20.54	3.09	51.10	7.97%	6.80%	4.31%	100.29%	7.41%	63.78%	63.78%
Hotel/Gaming	646	14.19%	14.80%	10.27%	14.59%	0.72	0.92	9.52%	36.09%	5.37%	34.56%	7.61%	0.84	2.48	10.24	17.28	1.91	63.46	-1.77%	8.78%	6.65%	57.35%	15.63%	39.82%	39.82%
Household Products	544	8.82%	15.64%	22.79%	24.22%	0.94	1.02	10.24%	41.40%	5.75%	13.67%	9.43%	1.67	2.98	14.76	18.77	5.08	92.41	8.87%	3.99%	3.89%	35.48%	20.01%	59.55%	59.55%
Information Services	214	16.40%	24.67%	34.51%	23.11%	1.12	1.19	11.52%	40.53%	5.75%	12.92%	10.58%	1.61	5.84	18.34	23.17	6.91	77.69	4.00%	3.45%	2.78%	25.44%	28.42%	24.70%	24.70%
Insurance (General)	216	8.21%	9.34%	12.17%	34.83%	0.58	0.64	7.44%	25.41%	5.37%	34.12%	6.27%	1.53	0.86	7.52	9.02	1.12	18.63	-4.36%	0.77%	0.81%	10.25%	7.36%	57.12%	57.12%
Insurance (Life)	130	7.12%	9.52%	12.39%	18.36%	0.94	0.97	9.86%	26.60%	5.37%	46.72%	7.13%	1.49	0.78	7.40	7.99	0.97	27.47	-92.08%	0.78%	0.46%	16.70%	11.05%	30.21%	30.21%
Insurance (Prop/Cas.)	220	6.65%	9.36%	10.65%	18.95%	0.52	0.58	6.95%	26.42%	5.37%	22.97%	6.28%	1.38	0.99	9.00	10.42	1.24	36.57	-35.69%	0.55%	-0.04%	9.84%	10.23%	34.26%	34.26%
Investments & Asset Management	1018	13.28%	18.28%	5.99%	17.23%	0.57	0.91	9.46%	38.53%	5.37%	53.64%	6.53%	0.36	4.16	18.25	21.20	1.11	52.81	NA	2.14%	7.91%	63.49%	12.79%	42.71%	42.71%
Machinery	1314	6.01%	9.97%	13.71%	25.07%	1.12	1.20	11.59%	37.25%	5.37%	19.54%	10.11%	1.64	1.37	9.69	13.27	2.05	31.16	24.63%	4.05%	4.28%	92.40%	14.34%	34.39%	34.39%
Metals & Mining	1549	10.93%	13.51%	14.16%	33.93%	1.24	1.48	13.64%	74.37%	6.62%	30.02%	11.03%	1.09	1.28	6.03	9.14	1.36	37.46	12.36%	7.56%	3.08%	58.72%	11.44%	57.23%	57.23%
Office Equipment & Services	156	2.62%	7.03%	13.64%	27.22%	0.86	1.02	10.23%	37.12%	5.37%	29.73%	8.38%	2.00	0.98	7.37	11.69	1.87	31.43	13.07%	3.70%	4.60%	82.89%	10.69%	46.93%	46.93%
Oil/Gas (Integrated)	49	-0.45%	8.96%	8.42%	30.12%	1.11	1.32	12.50%	28.92%	5.37%	28.76%	10.06%	1.24	0.84	4.91	9.54	1.01	16.87	2.59%	8.36%	1.68%	36.79%	10.71%	46.81%	46.81%
Oil/Gas (Production and Exploration)	852	1.98%	17.19%	7.34%	27.87%	1.16	1.56	14.24%	62.06%	5.75%	36.12%	10.65%	0.44	2.71	5.55	15.02	1.10	26.85	0.26%	38.50%	16.39%	138.17%	4.44%	63.66%	63.66%
Oil/Gas Distribution	143	11.02%	12.67%	6.77%	24.27%	0.75	1.22	11.76%	33.32%	5.37%	48.12%	8.03%	0.61	2.43	11.72	19.15	1.30	27.19	1.75%	16.26%	9.65%	101.73%	7.26%	108.29%	108.29%
Oilfield Svcs/Equip.	517	-0.91%	5.67%	12.23%	23.64%	1.07	1.37	12.88%	46.34%	5.75%	34.84%	9.88%	2.36	0.66	7.01	11.23	1.30	39.10	6.58%	3.03%	1.21%	61.46%	10.28%	44.73%	44.73%
Packaging & Container	402	7.68%	9.16%	12.51%	21.48%	0.61	0.82	8.78%	34.38%	5.37%	35.56%	7.08%	1.62	1.28	8.09	13.08	2.06	23.85	14.04%	6.27%	5.30%	82.64%	16.18%	35.66%	35.66%
Paper/Forest Products	292	7.35%	11.75%	10.45%	22.48%	0.77	1.04	10.41%	36.96%	5.37%	38.10%	7.97%	1.05	1.19	6.70	9.98	1.25	31.14	18.47%	7.22%	4.23%	68.55%	11.42%	38.81%	38.81%
Power	529	8.34%	11.60%	5.83%	19.41%	0.49	0.81	8.72%	27.28%	5.37%	50.25%	6.35%	0.62	2.02	9.16	17.53	1.21	22.51	-0.09%	16.09%	8.69%	103.48%	7.66%	74.42%	74.42%
Precious Metals	871	4.65%	10.39%	6.46%	31.41%	1.15	1.28	12.16%	79.09%	9.62%	21.07%	11.11%	0.64	2.32	7.53	20.75	1.48	49.30	13.35%	20.37%	9.72%	173.24%	0.84%	301.88%	301.88%
Publishing & Newspapers	353	0.68%	6.84%	9.00%	21.79%	0.90	0.98	9.96%	39.51%	5.37%	25.15%	8.46%	1.55	1.14	9.02	16.02	1.35	61.83	12.94%	3.38%	4.90%	101.10%	6.74%	53.27%	53.27%
R.E.I.T.	727	12.68%	34.22%	3.69%	2.96%	0.34	0.55	6.73%	19.07%	4.77%	46.08%	5.27%	0.12	11.33	19.96	31.51	1.38	27.32	49.29%	6.38%	8.73%	30.42%	9.58%	90.39%	90.39%
Real Estate (Development)	811	12.63%	21.00%	9.52%	32.98%	0.66	1.16	11.27%	34.89%	5.37%	61.70%	6.79%	0.56	2.11	9.25	9.79	0.79	48.59	166.48%	4.14%	9.22%	173.53%	15.10%	48.57%	48.57%
Real Estate (General/Diversified)	399	11.24%	19.50%	5.42%	19.85%	0.68	1.02	10.23%	32.87%	5.37%	47.08%	7.30%	0.30	3.23	11.79	14.61	0.75	63.60	76.66%	8.69%	8.55%	81.47%	10.15%	26.71%	26.71%
Real Estate (Operations & Services)	645	8.89%	26.01%	4.64%	18.40%	0.54	0.81	8.66%	32.26%	5.37%	44.70%	6.58%	0.21	5.51	16.87	20.35	0.86	67.03	23.35%	4.69%	31.21%	170.46%	12.25%	25.72%	25.72%
Recreation	325	3.55%	10.72%	9.24%	29.54%	0.83	0.91	9.43%	37.61%	5.37%	23.12%	8.18%	1.04	2.11	11.61	19.23	2.35	35.88	20.32%	6.52%	6.74%	122.73%	9.08%	52.55%	52.55%
Reinsurance	36	6.00%	7.32%	9.24%	18.50%	0.90	0.95	9.70%	25.43%	5.37%	20.27%	8.55%	1.47	0.78	10.04	10.59	1.05	19.43	-39.68%	0.11%	0.38%	19.42%	7.64%	49.02%	49.02%
Restaurant/Dining	373	6.41%	11.38%	14.58%	24.66%	0.64	0.79	8.58%	34.98%	5.37%	27.81%	7.31%	1.68	2.35	12.35	21.92	8.86	58.29	-0.95%	5.29%	3.80%	46.40%	38.44%	46.75%	46.75%
Retail (Automotive)	173	9.21%	4.57%	9.85%	21.28%	0.64	0.95	9.75%	32.97%	5.37%	43.55%	7.25%	2.79	0.68	9.84	15.53	2.37	23.18	11.61%	2.24%	2.26%	86.36%	20.50%	32.79%	32.79%
Retail (Building Supply)	90	5.21%	9.74%	17.92%	27.02%	0.76	0.89	9.29%	34.54%	5.37%	20.84%	8.19%	2.43	1.44	10.32	15.13	6.69	37.81	7.25%	2.48%	0.62%	12.26%	36.44%	41.24%	41.24%
Retail (Distributors)	983	8.97%	4.25%	6.85%	22.12%	0.62	0.95	9.73%	38.03%	5.37%	48.09%	6.98%	1.89	0.67	10.03	14.96	1.12	36.99	14.82%	3.26%	3.65%	159.53%	12.48%	33.85%	33.85%
Retail (General)	215	3.40%	4.50%	8.65%	26.01%	0.77	1.01	10.14%	30.16%	5.37%	34.00%	8.05%	2.70	0.76	8.99	18.09	2.30	33.48	-0.45%	2.84%	1.72%	56.07%	9.15%	64.18%	64.18%
Retail (Grocery and Food)	165	5.67%	3.55%	8.86%	20.12%	0.51	0.68	7.73%	29.36%	5.37%	36.79%	6.36%	3.31	0.61	8.17	17.98	1.89	31.16	-3.49%	3.00%	1.87%	49.95%	13.01%	39.66%	39.66%
Retail (Online)	291	12.23%	5.34%	9.27%	18.24%	1.24	1.28	12.20%	51.42%	5.75%	11.24%	11.31%	2.05	2.95	22.35	55.75	5.15	71.20	-0.30%	4.79%	1.35%	63.11%	13.13%	5.30%	5.30%
Retail (Special Lines)	466	3.04%	5.92%	12.84%	25.59%	0.80	0.96	9.82%	39.12%	5.37%	28.50%	8.16%	2.48	0.94	7.94	14.52	2.79	29.87	6.90%	2.06%	1.22%	42.28%	15.39%	44.58%	44.58%
Rubber& Tires	93	0.37%	9.32%	9.32%	27.08%	0.70	0.87	9.15%	26.70%	5.37%	32.26%	7.49%	1.21	0.99	6.13	10.28	1.26	20.87	21.26%	5.42%	3.75%	58.07%	11.15%	37.10%	37.10%
Semiconductor	530	6.44%	24.31%	19.20%	24.05%	1.59	1.64	14.85%	40.20%	5.75%	13.17%	13.46%	0.85	2.86	7.64	11.60	2.71	45.81	17.46%	15.95%	13.26%	83.68%	20.77%	33.44%	33.44%
Semiconductor Equip	284	12.47%	20.47%	21.65%	23.77%	1.73	1.72	15.48%	42.69%	5.75%	13.67%	13.95%	1.17	1.96	7.71	9.46	2.69	22.22	24.38%	7.07%	5.44%	69.78%	21.48%	27.20%	27.20%
Shipbuilding & Marine	341	3.00%	6.88%	4.09%	18.59%	0.67	1.08	10.68%	36.94%	5.37%	51.50%	7.24%	0.66	1.73	9.44	24.12	0.95	22.18	5.58%	10.82%	9.95%	180.86%	6.74%	53.39%	53.39%
Shoe	82	0.54%	9.36%	14.30%	39.22%	0.94	0.97	9.89%	36.06%	5.37%	10.78%	9.25%	1.86	2.03	14.50	21.05	4.51	159.10	20.22%	1.63%	-0.71%	2.37%	12.30%	54.19%	54.19%
Software (Entertainment)	262	15.07%	26.41%	19.53%	29.49%	1.25	1.24	11.86%	59.17%	5.75%	3.92%	11.56%	0.76	6.06	17.05	22.81	4.64	54.64	2.58%	14.41%	9.12%	54.21%	17.20%	4.02%	4.02%
Software (Internet)	131	28.69%	6.39%	11.91%	16.54%	1.06	1.15	11.18%	46.61%	5.75%	15.67%	10.10%	1.74	3.73	17.73	37.74	7.22	44.45	5.33%	5.80%	12.93%	284.55%	5.95%	41.26%	41.26%
Software (System & Application)	1272	13.20%	18.95%	16.17%	41.62%	1.18	1.23	11.79%	51.09%	5.75%	10.67%	10.99%	0.87	5.98	19.89	28.68	6.35	121.93	13.70%	5.70%	8.28%	89.00%	13.07%	51.43%	51.43%
Steel	701	2.89%	9.31%	8.34%	18.12%	0.89	1.21	11.67%	40.37%	5.75%	40.48%	8.68%	1.03	0.74	5.05	7.67	0.87	33.43	14.76%	4.25%	1.94%	55.21%	8.64%	36.07%	36.07%
Telecom (Wireless)	107	2.24%	13.71%	9.30%	22.22%	0.69	0.99	10.03%	33.31%	5.37%	40.72%	7.58%	0.72	2.12	6.19	14.28	1.49	31.43	0.15%	11.87%	-1.03%	5.49%	11.21%	55.70%	55.70%
Telecom. Equipment	493	8.84%	9.27%	8.28%	67.18%	1.28	1.33	12.55%	43.24%	5.75%	14.90%	11.32%	0.97	2.19	14.34	21.93	3.03	49.01	20.61%	3.83%	5.31%	116.47%	0.23%	0.48%	0.48%
Telecom. Services	317	9.35%	15.07%	12.71%	16.88%	0.66	0.99	10.00%	37.40%	5.37%	42.09%	7.48%	0.95	2.10	6.19	13.37	1.58	30.91	2.05%	12.41%	0.74%	14.09%	17.33%	57.40%	57.40%
Tobacco	52	7.25%	31.80%	40.62%	10.56%	0.77	0.92	9.48%	31.78%	5.37%	22.98%	8.23%	1.52	3.83	10.58	11.97	3.45	24.92	16.62%	3.70%	17.87%	68.98%	-0.09%	31.22%	31.22%
Transportation	261	12.19%	7.75%	13.67%	18.19%	0.80	1.06	10.51%	32.52%	5.37%	37.40%	8.08%	2.08	1.10	8.29	13.43	1.65	56.97	4.08%	5.17%	1.61%	40.62%	16.79%	45.04%	45.04%
Transportation (Railroads)	51	5.33%	22.92%	9.71%	12.34%	0.91	1.16	11.27%	20.71%	4.77%	29.27%	9.01%	0.52	3.46	10.20	14.82	2.25	40.15	10.60%	15.62%	10.02%	53.27%	22.82%	19.37%	19.37%
Trucking	205	6.14%	6.54%	7.73%	18.54%	0.57	0.92	9.52%	32.84%	5.37%	49.26%	6.81%	1.30	1.15	8.21	15.65	1.57	20.26	8.00%	9.62%	6.94%	128.05%	14.51%	19.54%	19.54%
Utility (General)	54	2.31%	10.38%	7.30%	16.36%	0.38	0.61	7.20%	20.94%	4.77%	47.09%	5.48%	0.85	1.73	9.43	16.57	1.47	19.55	2.05%	12.74%	6.53%	74.90%	11.33%	73.79%	73.79%
Utility (Water)	102	13.42%	27.30%	7.63%	22.49%	0.65	0.93	9.60%	30.63%	5.37%	41.24%	7.29%	0.33	4.52	11.43	16.47	1.61	48.07	4.25%	23.48%	14.98%	113.06%	12.09%	66.41%	41.95%
Total Market	43848	8.65%	9.63%	6.39%	24.15%	0.79	1.10	10.81%	40.11%	5.75%	44.57%	7.90%	0.76	1.99	12.05	19.13	1.64	61.10	-115.16%	5.76%	3.94%	73.23%	12.09%	41.95%	41.95%
Total Market (without financials)	39174	8.18%	10.16%	10.48%	23.73%	0.92	1.13	11.06%	41.21%	5.75%	30.45%	9.00%	1.17	1.59	9.33	15.06	1.89	64.21	10.93%	6.15%	4.02%	69.45%	12.66%	44.31%	44.31%

Trailing 12 month

	Last 10K	First X months: Last year	First X months: Current year	Trailing 12 month
Revenues	$265,595.00	$79,164.00	$73,435.00	$259,866.00
R&D expense	$14,236.00	$3,407.00	$3,902.00	$14,731.00
Operating income or EBIT	$70,898.00	$26,274.00	$23,346.00	$67,970.00
Interest expenses	$3,240.00	$276.00	$432.00	$3,396.00
Book value of equity	$107,147.00		$117,892.00
Book value of debt	$114,483.00		$114,730.00
Do you have operating lease commitments?
Cash and cross holdings	$237,100.00		$245,035.00
Non-operating assets	$0.00		$0.00
Minority interests	$0.00		$0.00
Number of shares outstanding =
Current stock price =
Effective tax rate =	25.88%	25.77%	16.49%
Marginal tax rate =
Lease commitments
Year 1	1,298.0		NA
Year 2	1,289.0	Copy into operating lease worksheet	NA
Year 3	1,218.0		NA
Year 4	1,038.0		NA
Year 5	800.0		NA
Beyond year 5	3984		NA
Current year's lease expense	$ 1,200.00
			$75,872.00
			$2,404.00
			$24,171.00
			$276.00

Answer keys

Yes/No	Book or Market Value	ERP choices	Cost of debt	Synthetic rating	Beta	Rating is
Yes	B	Will input	Direct input	1	Direct input	Aaa/AAA
No	V	Country of incorporation	Synthetic rating	2	Single Business(US)	Aa2/AA
		Operating countries	Actual rating		Single Business(Global)	A1/A+
		Operating regions			Multibusiness(US)	A2/A
					Multibusiness(Global)	A3/A-
						Baa2/BBB
						Ba1/BB+
						Ba2/BB
						B1/B+
						B2/B
						B3/B-
						C2/C
						Ca2/CC
						Caa/CCC
						D2/D