Comprehensive Case Template

comprehensive_case_template_.xlsx

Home >Business & Finance homework help >Comprehensive Case Template

Template (Mod 1-8, 11)

INSTRUCTIONS:
	This template has been created to assist you in performing analysis for casework and other applications discussed in class. It has been created using common Income Statement and Balance Sheet Accounts. However, individual companies report their Income Statement and Balance Sheet accounts using slightly different names at times. When plugging information from SEC Edgar into this template, try to group it into the accounts that are prepopulated here for your use. If you need to add a new Revenue or Expense account, there is a space under each for you to do so. (<Other Revenue> and <Other Expense>). Editable Fields are shaded in gray as indicated in the key below. These represent the fields that you will want to type in your data or conduct formulas as appropriate. There is also a section for you to conduct your veritcal and horizontal analysis, as well as comment on your findings as necessary.
KEY:
	Editable Fields								Editable Fields								Editable Fields
	Company A - home depot								Company B - target								Company C - walmart
	Income Statement				Vertical Analysis		Horizontal Analysis	Comments	Income Statement				Vertical Analysis		Horizontal Analysis	Comments	Income Statement				Vertical Analysis		Horizontal Analysis	Comments
			2/4/13	1/30/12	2/4/13	1/30/12	Recent vs Two Ago	Findings / Observations			2/2/13	1/28/12	2/2/13	1/28/12	Recent vs Two Ago	Findings / Observations			1/31/13	1/31/12	1/31/13	1/31/12	Recent vs Two Ago	Findings / Observations
	Revenue								Revenue								Revenue
	Total Revenue		$74,754	$70,395			6.19%		Total Revenue		$71,960	$68,466			5.10%		Total Revenue		$ 466,114.00	$ 443,854.00			5.02%
	Membership Fees						ERROR:#DIV/0!		Credit Card Revenues		1,341.00	1,399.00			-4.15%		Credit Card Revenues		3,048.00	3,096.00			-1.55%
	Total Revenue		$ 74,754.00	$ 70,395.00	100.00%	100.00%	6.19%		Total Revenue		$ 73,301.00	$ 69,865.00	100.00%	100.00%	4.92%		Total Revenue		$ 469,162.00	$ 446,950.00	100.00%	100.00%	4.97%
	Cost of Goods Sold		48,912.00	46,133.00	65.43%	65.53%	6.02%		Cost of Goods Sold		50,568.00	47,860.00	68.99%	68.50%	5.66%		Cost of Goods Sold		352,488.00	335,127.00	75.13%	74.98%	5.18%
	GROSS PROFIT		$ 25,842.00	$ 24,262.00	34.57%	34.47%	6.51%		GROSS PROFIT		$ 22,733.00	$ 22,005.00	31.01%	31.50%	3.31%		GROSS PROFIT		$ 116,674.00	$ 111,823.00	24.87%	25.02%	4.34%
	Operating Expenses								Operating Expenses								Operating Expenses
	Selling General and Administrative		$ 16,508.00	$ 16,028.00	22.08%	22.77%	2.99%		Selling General and Administrative		$ 15,381.00	$ 14,552.00	20.98%	20.83%	5.70%		Selling General and Administrative				0.00%	0.00%	ERROR:#DIV/0!
	Depreciation and Amortization		1,568.00	1,573.00	2.10%	2.23%	-0.32%		Depreciation and Amortization		2,142.00	2,131.00	2.92%	3.05%	0.52%		Depreciation and Amortization				0.00%	0.00%	ERROR:#DIV/0!
	Asset Impairment Expense				0.00%	0.00%	ERROR:#DIV/0!		Asset Impairment Expense				0.00%	0.00%	ERROR:#DIV/0!		Asset Impairment Expense		88,873.00	85,265.00	18.94%	19.08%	4.23%
	Gains and Losses on Asset Disposal				0.00%	0.00%	ERROR:#DIV/0!		Gains and Losses on Asset Disposal		(161.00)		-0.22%	ERROR:#VALUE!	ERROR:#VALUE!		Gains and Losses on Asset Disposal				0.00%	0.00%	ERROR:#DIV/0!
	Total Operating Expenses		$ 18,076.00	$ 17,601.00	24.18%	25.00%	2.70%		Total Operating Expenses		$ 17,362.00	$ 16,683.00	23.69%	23.88%	4.07%		Total Operating Expenses		$ 88,873.00	$ 85,265.00	18.94%	19.08%	4.23%
	OPERATING INCOME		$ 7,766.00	$ 6,661.00	10.39%	9.46%	16.59%		OPERATING INCOME		$ 5,371.00	$ 5,322.00	7.33%	7.62%	0.92%		OPERATING INCOME		$ 27,801.00	$ 26,558.00	5.93%	5.94%	4.68%
	Interest Expense		545.00	593.00	0.73%	0.84%	-8.09%		Interest Expense		762.00	866.00	1.04%	1.24%	-12.01%		Interest Expense		2,251.00	2,322.00	0.48%	0.52%	-3.06%
	Interest and Dividend Revenue				0.00%	0.00%	ERROR:#DIV/0!		Interest and Dividend Revenue				0.00%	0.00%	ERROR:#DIV/0!		Interest and Dividend Revenue				0.00%	0.00%	ERROR:#DIV/0!
	Investment Gains and Losses				0.00%	0.00%	ERROR:#DIV/0!		Investment Gains and Losses				0.00%	0.00%	ERROR:#DIV/0!		Investment Gains and Losses		(187.00)	(162.00)	-0.04%	-0.04%	15.43%
	Total Non-Operating Expense		545.00	593.00	0.73%	0.84%			Total Non-Operating Expense		762.00	866.00	1.04%	1.24%			Total Non-Operating Expense		2,064.00	2,160.00	0.44%	0.48%
	INCOME FROM CONTINUING OPERATIONS BEFORE TAXES		$ 7,221.00	$ 6,068.00	9.66%	8.62%	19.00%		INCOME FROM CONTINUING OPERATIONS BEFORE TAXES		$ 4,609.00	$ 4,456.00	6.29%	6.38%	3.43%		INCOME FROM CONTINUING OPERATIONS BEFORE TAXES		$ 25,737.00	$ 24,398.00	5.49%	5.46%	5.49%
	Income Tax Expense		2,686.00	2,185.00	3.59%	3.10%	22.93%		Income Tax Expense		1,610.00	1,527.00	2.20%	2.19%	5.44%		Income Tax Expense		7,981.00	7,944.00	1.70%	1.78%	0.47%
	INCOME FROM CONTINUING OPERATIONS		$ 4,535.00	$ 3,883.00	6.07%	5.52%	16.79%		INCOME FROM CONTINUING OPERATIONS		$ 2,999.00	$ 2,929.00	4.09%	4.19%	2.39%		INCOME FROM CONTINUING OPERATIONS		$ 17,756.00	$ 16,454.00	3.78%	3.68%	7.91%
	Income (Loss) from Noncontrolling Interests (Net of Tax)				0.00%	0.00%	ERROR:#DIV/0!		Income (Loss) from Noncontrolling Interests (Net of Tax)				0.00%	0.00%	ERROR:#DIV/0!		Income (Loss) from Noncontrolling Interests (Net of Tax)		(757.00)	(755.00)	-0.16%	-0.17%	0.26%
	CONSOLIDATED NET INCOME		$ 4,535.00	$ 3,883.00	6.07%	5.52%	16.79%		CONSOLIDATED NET INCOME		$ 2,999.00	$ 2,929.00	4.09%	4.19%	2.39%		CONSOLIDATED NET INCOME		$ 16,999.00	$ 15,699.00	3.62%	3.51%	8.28%
	Balance Sheet				Vertical Analysis		Horizontal Analysis	Comments	Balance Sheet				Vertical Analysis		Horizontal Analysis	Comments	Balance Sheet				Vertical Analysis		Horizontal Analysis	Comments
			2/4/13	1/30/12	2/4/13	1/30/12	Recent vs Two Ago	Findings / Observations			2/2/13	1/28/12	2/2/13	1/28/12	Recent vs Two Ago	Findings / Observations			1/31/13	1/31/12	1/31/13	1/31/12	Recent vs Two Ago	Findings / Observations
	Assets								Assets								Assets
	Current Assets								Current Assets								Current Assets
	Cash and Cash Equivalents		$2,494	$1,987	6.07%	4.90%	25.52%		Cash and Cash Equivalents		$784	$794	1.63%	1.70%	-1.26%		Cash and Cash Equivalents		$7,781	$6,550	3.83%	3.39%	18.79%
	Marketable Securities (S/T Investments)				0.00%	0.00%	ERROR:#DIV/0!		Marketable Securities (S/T Investments)				0.00%	0.00%	ERROR:#DIV/0!		Marketable Securities (S/T Investments)				0.00%	0.00%	ERROR:#DIV/0!
	Accounts Receivable		1,395.00	1,245.00	3.40%	3.07%	12.05%		Accounts Receivable		5,841.00	5,927.00	12.13%	12.71%	-1.45%		Accounts Receivable		6,768.00	5,937.00	3.33%	3.07%	14.00%
	Inventory		10,710.00	10,325.00	26.07%	25.48%	3.73%		Inventory		7,903.00	7,918.00	16.41%	16.98%	-0.19%		Inventory		43,803.00	40,714.00	21.57%	21.05%	7.59%
	Prepaid Expenses				0.00%	0.00%	ERROR:#DIV/0!		Prepaid Expenses				0.00%	0.00%	ERROR:#DIV/0!		Prepaid Expenses		1,588.00	1,774.00	0.78%	0.92%	-10.48%
	Deferred Income Tax Assets				0.00%	0.00%	ERROR:#DIV/0!		Deferred Income Tax Assets				0.00%	0.00%	ERROR:#DIV/0!		Deferred Income Tax Assets				0.00%	0.00%	ERROR:#DIV/0!
	Other Current Assets		773.00	963.00	1.88%	2.38%	-19.73%		Other Current Assets		1,860.00	1,810.00	3.86%	3.88%	2.76%		Other Current Assets				0.00%	0.00%	ERROR:#DIV/0!
	Current Assets of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Current Assets of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Current Assets of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!
	Total Current Assets		$15,372	$14,520	37.42%	35.84%	5.87%		Total Current Assets		$ 16,388.00	$ 16,449.00	34.03%	35.28%	-0.37%		Total Current Assets		$ 59,940.00	$ 54,975.00	29.51%	28.42%	9.03%
	Fixed Assets (Non-Current / Long Term Assets)								Fixed Assets (Non-Current / Long Term Assets)								Fixed Assets (Non-Current / Long Term Assets)
	Long Term Investments		$ 140.00	$ 135.00	0.34%	0.33%	3.70%		Long Term Investments				0.00%	0.00%	ERROR:#DIV/0!		Long Term Investments				0.00%	0.00%	ERROR:#DIV/0!
	Property, Plant, and Equipment Net		24,069.00	24,448.00	58.58%	60.34%	-1.55%		Property, Plant, and Equipment Net		30,653.00	29,149.00	63.64%	62.51%	5.16%		Property, Plant, and Equipment Net		113,929.00	109,603.00	56.09%	56.67%	3.95%
	Capitalized Lease Assets				0.00%	0.00%	ERROR:#DIV/0!		Capitalized Lease Assets				0.00%	0.00%	ERROR:#DIV/0!		Capitalized Lease Assets		2,752.00	2,721.00	1.35%	1.41%	1.14%
	Natural Resourcse				0.00%	0.00%	ERROR:#DIV/0!		Natural Resourcse				0.00%	0.00%	ERROR:#DIV/0!		Natural Resourcse				0.00%	0.00%	ERROR:#DIV/0!
	Equity Method Investments				0.00%	0.00%	ERROR:#DIV/0!		Equity Method Investments				0.00%	0.00%	ERROR:#DIV/0!		Equity Method Investments				0.00%	0.00%	ERROR:#DIV/0!
	Goodwill and Intangible Assets		1,170.00	1,120.00	2.85%	2.76%	4.46%		Goodwill and Intangible Assets				0.00%	0.00%	ERROR:#DIV/0!		Goodwill and Intangible Assets		20,497.00	20,651.00	10.09%	10.68%	-0.75%
	Deferred Income Tax Assets				0.00%	0.00%	ERROR:#DIV/0!		Deferred Income Tax Assets				0.00%	0.00%	ERROR:#DIV/0!		Deferred Income Tax Assets				0.00%	0.00%	ERROR:#DIV/0!
	Other Long Term Assets		333.00	295.00	0.81%	0.73%	12.88%		Other Long Term Assets		1,122.00	1,032.00	2.33%	2.21%	8.72%		Other Long Term Assets		5,987.00	5,456.00	2.95%	2.82%	9.73%
	Long-Term Assets of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Long-Term Assets of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Long-Term Assets of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!
	Total Fixed Assets		$ 25,712.00	$ 25,998.00	62.58%	64.16%	-1.10%		Total Fixed Assets		$ 31,775.00	$ 30,181.00	65.97%	64.72%	5.28%		Total Fixed Assets		$ 143,165.00	$ 138,431.00	70.49%	71.58%	3.42%
	Total Assets		$ 41,084.00	$ 40,518.00	100.00%	100.00%	1.40%		Total Assets		$ 48,163.00	$ 46,630.00	100.00%	100.00%	3.29%		Total Assets		$ 203,105.00	$ 193,406.00	100.00%	100.00%	5.01%
	Liabilities & Equity								Liabilities & Equity								Liabilities & Equity
	Current Liabilities	Current Liabilities							Current Liabilities	Current Liabilities							Current Liabilities	Current Liabilities
	Short-Term Notes and Interest Payable				0.00%	0.00%	ERROR:#DIV/0!		Short-Term Notes and Interest Payable		$ 2,994.00	$ 3,786.00	6.22%	8.12%	-20.92%		Short-Term Notes and Interest Payable		$ 6,805.00	$ 4,047.00	3.35%	2.09%	68.15%
	Current maturities of Long term debt		$ 1,321.00	$ 30.00	3.22%	0.07%	4303.33%		Current maturities of Long term debt				0.00%	0.00%	ERROR:#DIV/0!		Current maturities of Long term debt		$ 5,914.00	$ 2,301.00	2.91%	1.19%	157.02%
	Accounts Payable		$ 5,376.00	$ 4,856.00	13.09%	11.98%	10.71%		Accounts Payable		$ 7,056.00	$ 6,857.00	14.65%	14.71%	2.90%		Accounts Payable		$ 38,080.00	$ 36,608.00	18.75%	18.93%	4.02%
	Accured Liabilities		$ 3,473.00	$ 3,320.00	8.45%	8.19%	4.61%		Accured Liabilities		$ 3,981.00	$ 3,644.00	8.27%	7.81%	9.25%		Accured Liabilities		$ 18,808.00	$ 18,180.00	9.26%	9.40%	3.45%
	Unearned Revenue		$ 1,270.00	$ 1,147.00	3.09%	2.83%	10.72%		Unearned Revenue				0.00%	0.00%	ERROR:#DIV/0!		Unearned Revenue				0.00%	0.00%	ERROR:#DIV/0!
	Deferred Income Tax Liabilities		$ 22.00	$ 23.00	0.05%	0.06%	-4.35%		Deferred Income Tax Liabilities				0.00%	0.00%	ERROR:#DIV/0!		Deferred Income Tax Liabilities		$ 2,211.00	$ 1,164.00	1.09%	0.60%	89.95%
	Current Liabilities of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Current Liabilities of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Current Liabilities of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!
	Total Current Liabilities		$ 11,462.00	$ 9,376.00	27.90%	23.14%	22.25%		Total Current Liabilities		$ 14,031.00	$ 14,287.00	29.13%	30.64%	-1.79%		Total Current Liabilities		$ 71,818.00	$ 62,300.00	35.36%	32.21%	15.28%
	Long Term Liabilities								Long Term Liabilities								Long Term Liabilities
	Long-Term Debt (Bonds and Notes Payable)		$ 9,475.00	$ 10,758.00	23.06%	26.55%	-11.93%		Long-Term Debt (Bonds and Notes Payable)		$ 16,263.00	$ 15,331.00	33.77%	32.88%	6.08%		Long-Term Debt (Bonds and Notes Payable)		$ 38,913.00	$ 44,474.00	19.16%	23.00%	-12.50%
	other LT liabilities		$ 2,051.00	$ 2,146.00	4.99%	5.30%	-4.43%		Capital Lease Obligations				0.00%	0.00%	ERROR:#DIV/0!		Capital Lease Obligations		$ 3,023.00	$ 3,009.00	1.49%	1.56%	0.47%
	Pension and other post-employment liabilities				0.00%	0.00%	ERROR:#DIV/0!		Pension and other post-employment liabilities				0.00%	0.00%	ERROR:#DIV/0!		Pension and other post-employment liabilities				0.00%	0.00%	ERROR:#DIV/0!
	Deferred Income Tax Liabilities		$ 319.00	$ 340.00	0.78%	0.84%	-6.18%		Deferred Income Tax Liabilities		$ 1,311.00	$ 1,191.00	2.72%	2.55%	10.08%		Deferred Income Tax Liabilities		$ 7,613.00	$ 7,862.00	3.75%	4.07%	-3.17%
	Long Term Liabilities of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Long Term Liabilities of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!		Long Term Liabilities of Discontinued Operations				0.00%	0.00%	ERROR:#DIV/0!
	Total Long Term Liabilities		$ 11,845.00	$ 13,244.00	28.83%	32.69%	-10.56%		Total Long Term Liabilities		$ 17,574.00	$ 16,522.00	36.49%	35.43%	6.37%		Total Long Term Liabilities		$ 49,549.00	$ 55,345.00	24.40%	28.62%	-10.47%
	Total Liabilities		$ 23,307.00	$ 22,620.00	56.73%	55.83%	3.04%		Total Liabilities		$ 31,605.00	$ 30,809.00	65.62%	66.07%	2.58%		Total Liabilities		$ 121,367.00	$ 117,645.00	59.76%	60.83%	3.16%
	Equity								Equity								Equity
	Common Stock		$ 88.00	$ 87.00	0.21%	0.21%	1.15%		Common Stock		$ 54.00	$ 56.00	0.11%	0.12%	-3.57%		Common Stock		$ 332.00	$ 342.00	0.16%	0.18%	-2.92%
	Capital Surplus		7,948.00	6,966.00	19.35%	17.19%	14.10%		Capital Surplus		3,925.00	3,487.00	8.15%	7.48%	12.56%		Capital Surplus		3,620.00	3,692.00	1.78%	1.91%	-1.95%
	Retained Earnings		20,038.00	17,246.00	48.77%	42.56%	16.19%		Retained Earnings		13,155.00	12,959.00	27.31%	27.79%	1.51%		Retained Earnings		72,978.00	68,691.00	35.93%	35.52%	6.24%
	Other Stockholders' Equity		(10,297.00)	(6,401.00)	-25.06%	-15.80%	60.87%		Other Stockholders' Equity		(576.00)	(681.00)	-1.20%	-1.46%	-15.42%		Other Stockholders' Equity		4,808.00	3,036.00	2.37%	1.57%	58.37%
	Total Equity		$ 17,777.00	$ 17,898.00	43.27%	44.17%	-0.68%		Total Equity		$ 16,558.00	$ 15,821.00	34.38%	33.93%	4.66%		Total Equity		$ 81,738.00	$ 75,761.00	40.24%	39.17%	7.89%
	Total Liabilities & Equity		$ 41,084.00	$ 40,518.00	100.00%	100.00%	1.40%		Total Liabilities & Equity		$ 48,163.00	$ 46,630.00	100.00%	100.00%	3.29%		Total Liabilities & Equity		$ 203,105.00	$ 193,406.00	100.00%	100.00%	5.01%
	Key Ratio Analysis								Key Ratio Analysis								Key Ratio Analysis
		FORMULA FOR KEY RATIO	2/4/13	1/30/12	Comments - Findings / Observations					FORMULA FOR KEY RATIO	2/2/13	1/28/12	Comments - Findings / Observations					FORMULA FOR KEY RATIO	1/31/13	1/31/12	Comments - Findings / Observations
	Net Working Capital =	Current Assets - Current Liabilities	$ 3,910.00	$ 5,144.00					Net Working Capital =	Current Assets - Current Liabilities	$ 2,357.00	$ 2,162.00					Net Working Capital =	Current Assets - Current Liabilities	$ (11,878.00)	$ (7,325.00)
	PROFITABILITY ANALYSIS & INTERPRETATION (MODULE 3)								PROFITABILITY ANALYSIS & INTERPRETATION (MODULE 3)								PROFITABILITY ANALYSIS & INTERPRETATION (MODULE 3)
	Return on Equity =	Net Income	25.4%	N/A					Return on Equity =	Net Income	18.5%	N/A					Return on Equity =	Net Income	21.6%	N/A
		Average Stockholders Equity								Average Stockholders Equity								Average Stockholders Equity
	Return on Net Operating Assets (RNOA) =	Net Operating Profit After Tax (NOPAT)	17.2%	N/A					Return on Net Operating Assets (RNOA) =	Net Operating Profit After Tax (NOPAT)	10.1%	N/A					Return on Net Operating Assets (RNOA) =	Net Operating Profit After Tax (NOPAT)	15.2%	N/A
		Avg Net Operating Assets (NOA)								Avg Net Operating Assets (NOA)								Avg Net Operating Assets (NOA)
	Non-Operating Return =	ROE - RNOA	8.2%	N/A					Non-Operating Return =	ROE - RNOA	8.4%	N/A					Non-Operating Return =	ROE - RNOA	6.4%	N/A
	Net Operating Profit After Tax (NOPAT) =	Net Operating Profit Before Tax (NOPBT) - Tax On Operating Profit	$ 4,889.25	$ 4,268.45					Net Operating Profit After Tax (NOPAT) =	Net Operating Profit Before Tax (NOPBT) - Tax On Operating Profit	$ 3,494.30	$ 3,491.90					Net Operating Profit After Tax (NOPAT) =	Net Operating Profit Before Tax (NOPBT) - Tax On Operating Profit	$ 19,097.60	$ 17,858.00
	Tax on Operating Profit =	Tax Expense + (Pretax Net Nonoperating Expense x Statutory Tax Rate)	$ 2,876.75	$ 2,392.55					Tax on Operating Profit =	Tax Expense + (Pretax Net Nonoperating Expense x Statutory Tax Rate)	$ 1,876.70	$ 1,830.10					Tax on Operating Profit =	Tax Expense + (Pretax Net Nonoperating Expense x Statutory Tax Rate)	$ 8,703.40	$ 8,700.00
	Net Operating Assets (NOA) =	Operating Assets minus Operating Liabilities	$ 27,990.00	$ 28,710.00					Net Operating Assets (NOA) =	Operating Assets minus Operating Liabilities	$ 35,031.00	$ 34,144.00					Net Operating Assets (NOA) =	Operating Assets minus Operating Liabilities	$ 128,612.00	$ 123,042.00
	Net Operating Profit Margin (NOPM) =	Net Operating Profit After Tax (NOPAT)	6.5%	6.1%					Net Operating Profit Margin (NOPM) =	Net Operating Profit After Tax (NOPAT)	4.8%	5.0%					Net Operating Profit Margin (NOPM) =	Net Operating Profit After Tax (NOPAT)	4.1%	4.0%
		Sales								Sales								Sales
	Net Operating Asset Turnover (NOAT) =	Sales	2.64	N/A					Net Operating Asset Turnover (NOAT) =	Sales	2.12	N/A					Net Operating Asset Turnover (NOAT) =	Sales	3.73	N/A
		Average NOA								Average NOA								Average NOA
	DUPONT ANALYSIS RATIOS (MODULE 3, APPENDIX B)								DUPONT ANALYSIS RATIOS (MODULE 3, APPENDIX B)								DUPONT ANALYSIS RATIOS (MODULE 3, APPENDIX B)
	Profit Margin =	Net Income	6.1%	5.5%					Profit Margin =	Net Income	4.1%	4.2%					Profit Margin =	Net Income	3.8%	3.7%
		Sales Revenue								Sales Revenue								Sales Revenue
	Asset Turnover =	Sales Revenue	1.83	N/A					Asset Turnover =	Sales Revenue	1.55	N/A					Asset Turnover =	Sales Revenue	2.37	N/A
		Average Total Assets								Average Total Assets								Average Total Assets
	Financial Leverage (FL) =	Avg Total Assets	228.7%	N/A					Financial Leverage (FL) =	Avg Total Assets	292.8%	N/A					Financial Leverage (FL) =	Avg Total Assets	251.8%	N/A
		Avg Total Equity								Avg Total Equity								Avg Total Equity
	Return on Equity (ROE) =	Net Income	25.4%	N/A					Return on Equity (ROE) =	Net Income	18.5%	N/A					Return on Equity (ROE) =	Net Income	21.6%	N/A
		Avg Total Equity								Avg Total Equity								Avg Total Equity
	Return on Assets (Adjusted) =	Net Income + [Interest Expense x ( 1 - Statutory Tax Rate)]	12.0%	N/A					Return on Assets (Adjusted) =	Net Income + [Interest Expense x ( 1 - Statutory Tax Rate)]	7.4%	N/A					Return on Assets (Adjusted) =	Net Income + [Interest Expense x ( 1 - Statutory Tax Rate)]	9.3%	N/A
		Avg Total Assets								Avg Total Assets								Avg Total Assets
	CREDIT RISK ANALYSIS & INTERPRETATION (MODULE 4)								CREDIT RISK ANALYSIS & INTERPRETATION (MODULE 4)								CREDIT RISK ANALYSIS & INTERPRETATION (MODULE 4)
	Coverage Analysis								Coverage Analysis								Coverage Analysis
	Times Interest Earned (TIE) =	Earnings before Interest and Taxes (EBIT)	14.25	11.23					Times Interest Earned (TIE) =	Earnings before Interest and Taxes (EBIT)	7.05	6.15					Times Interest Earned (TIE) =	Earnings before Interest and Taxes (EBIT)	12.35	11.44
		Interest Expense								Interest Expense								Interest Expense
	EBITDA Coverage =	EBT + Interest Expense, net + Depreciation + Amortization	15.92	12.67					EBITDA Coverage =	EBT + Interest Expense, net + Depreciation + Amortization	9.85	8.55					EBITDA Coverage =	EBT + Interest Expense, net + Depreciation + Amortization	13.30	12.34
		Interest Expense								Interest Expense								Interest Expense
	Liquidity Analysis								Liquidity Analysis								Liquidity Analysis
	Current Ratio =	Current Assets	1.34	1.55					Current Ratio =	Current Assets	1.17	1.15					Current Ratio =	Current Assets	0.83	0.88
		Current Liabilities								Current Liabilities								Current Liabilities
	Quick Ratio =	Quick Assets (Cash + Mkt Securities + Accts Receiv.)	0.34	0.34					Quick Ratio =	Quick Assets (Cash + Mkt Securities + Accts Receiv.)	0.47	0.47					Quick Ratio =	Quick Assets (Cash + Mkt Securities + Accts Receiv.)	0.20	0.20
		Current Liabilities								Current Liabilities								Current Liabilities
	Solvency Analysis								Solvency Analysis								Solvency Analysis
	Liabilities to Equity =	Total Liabilities	1.31	1.26					Liabilities to Equity =	Total Liabilities	1.91	1.95					Liabilities to Equity =	Total Liabilities	1.48	1.55
		Total Stockholders Equity								Total Stockholders Equity								Total Stockholders Equity
	Total Debt-to-Equity =	Long-term Debt incl. Current Portion + Short-Term Debt	0.74	0.74					Total Debt-to-Equity =	Long-term Debt incl. Current Portion + Short-Term Debt	1.24	1.28					Total Debt-to-Equity =	Long-term Debt incl. Current Portion + Short-Term Debt	0.76	0.81
		Stockholders Equity								Stockholders Equity								Stockholders Equity
	RECOGNIZE REVENUE AND OPERATING INCOME (MODULE 5)								RECOGNIZE REVENUE AND OPERATING INCOME (MODULE 5)								RECOGNIZE REVENUE AND OPERATING INCOME (MODULE 5)
	Basic EPS =	Net Income less Preferred Dividends	$3.02	$2.48					Basic EPS =	Net Income less Preferred Dividends	$4.57	$4.31					Basic EPS =	Net Income less Preferred Dividends	$5.04	$4.54
		Weighted Avg Common Shares								Weighted Avg Common Shares								Weighted Avg Common Shares
	Diluted EPS =	Net Income	$3.00	$2.47					Diluted EPS =	Net Income	$4.52	$4.28					Diluted EPS =	Net Income	$5.02	$4.52
		Weighted Avg Common Shares including Dilutive Items								Weighted Avg Common Shares including Dilutive Items								Weighted Avg Common Shares including Dilutive Items
	Preferred Dividends =	Preferred Dividends (see 10K/10Q)	3.00	2.47					Preferred Dividends =	Preferred Dividends (see 10K/10Q)	0.00	0.00					Preferred Dividends =	Preferred Dividends (see 10K/10Q)	0.00	0.00
	Weighted Avg Common Shares =	See 10K / 10Q	1,499.00	1,562.00					Weighted Avg Common Shares =	See 10K / 10Q	656.70	679.10					Weighted Avg Common Shares =	See 10K / 10Q	3,374.00	3,460.00
	Weighted Avg Common Shares including Dilutive Items =	See 10K / 10Q	1,511.00	1,570.00					Weighted Avg Common Shares including Dilutive Items =	See 10K / 10Q	663.00	683.90					Weighted Avg Common Shares including Dilutive Items =	See 10K / 10Q	3,389.00	3,474.00
	ASSET RECOGNITION AND OPERATING ASSETS (MODULE 6)								ASSET RECOGNITION AND OPERATING ASSETS (MODULE 6)								ASSET RECOGNITION AND OPERATING ASSETS (MODULE 6)
	Accounts Receivable Turnover (ART) =	Sales Revenue	56.63	N/A					Accounts Receivable Turnover (ART) =	Sales Revenue	12.46	N/A					Accounts Receivable Turnover (ART) =	Sales Revenue	73.85	N/A
		Average Accounts Receivable								Average Accounts Receivable								Average Accounts Receivable
	Average Collection Period (ACP) =	Average Accounts Receivable	6.45	N/A					Average Collection Period (ACP) =	Average Accounts Receivable	29.30	N/A					Average Collection Period (ACP) =	Average Accounts Receivable	4.94	N/A
		Average Daily Sales								Average Daily Sales								Average Daily Sales
	Gross Profit Margin (GPM) =	Sales Revenue - Cost of Goods Sold	34.6%	34.5%					Gross Profit Margin (GPM) =	Sales Revenue - Cost of Goods Sold	31.0%	31.5%					Gross Profit Margin (GPM) =	Sales Revenue - Cost of Goods Sold	24.9%	25.0%
		Sales Revenue								Sales Revenue								Sales Revenue
	Inventory Turnover (INVT) =	Cost of Goods Sold	4.65	N/A					Inventory Turnover (INVT) =	Cost of Goods Sold	6.39	N/A					Inventory Turnover (INVT) =	Cost of Goods Sold	8.34	N/A
		Average Inventory								Average Inventory								Average Inventory
	Average Inventory Days Outstanding (AIDO) =	Average Inventory	78.49	N/A					Average Inventory Days Outstanding (AIDO) =	Average Inventory	57.10	N/A					Average Inventory Days Outstanding (AIDO) =	Average Inventory	43.76	N/A
		Average Daily Cost of Goods Sold								Average Daily Cost of Goods Sold								Average Daily Cost of Goods Sold
	PPE Turnover (PPET) =	Sales	3.08	N/A					PPE Turnover (PPET) =	Sales	2.45	N/A					PPE Turnover (PPET) =	Sales	4.20	N/A
		Average PPE								Average PPE								Average PPE
	Average Useful Life =	Original Cost of Depreciable Assets	See 10k	See 10k					Average Useful Life =	Original Cost of Depreciable Assets	11.42	10.81					Average Useful Life =	Original Cost of Depreciable Assets	16.49	16.18
		Depreciation Expense								Depreciation Expense								Depreciation Expense
	Percent Depreciated =	Accumulated Depreciation	See 10k	See 10k					Percent Depreciated =	Accumulated Depreciation	0.54	0.54					Percent Depreciated =	Accumulated Depreciation	0.37	0.35
		Original Cost of Depreciable Assets								Original Cost of Depreciable Assets								Original Cost of Depreciable Assets
	LIABILITY RECOGNITION AND NONOWNER FINANCING (MODULE 7)								LIABILITY RECOGNITION AND NONOWNER FINANCING (MODULE 7)								LIABILITY RECOGNITION AND NONOWNER FINANCING (MODULE 7)
	Accounts Payable Turnover (APT) =	Cost of Goods Sold	956.1%	N/A					Accounts Payable Turnover (APT) =	Cost of Goods Sold	726.9%	N/A					Accounts Payable Turnover (APT) =	Cost of Goods Sold	943.9%	N/A
		Avg Accounts Payable								Avg Accounts Payable								Avg Accounts Payable
	Accounts Payable Days Outstanding (APDO) =	Accounts Payable	40.12	38.42					Accounts Payable Days Outstanding (APDO) =	Accounts Payable	50.93	52.29					Accounts Payable Days Outstanding (APDO) =	Accounts Payable	39.43	39.87
		Avg Daily Cost of Goods Sold								Avg Daily Cost of Goods Sold								Avg Daily Cost of Goods Sold
	EQUITY RECOGNITION AND OWNER FINANCING (MODULE 8)								EQUITY RECOGNITION AND OWNER FINANCING (MODULE 8)								EQUITY RECOGNITION AND OWNER FINANCING (MODULE 8)
	Stock Price =	Closing Price on Market that Day	66.36	44.77					Stock Price =	Closing Price on Market that Day	61.15	50.05					Stock Price =	Closing Price on Market that Day	69.95	61.36
	Dividends Per Share =	Dividends Declared Per Share of Common Stock	3.03	2.49					Dividends Per Share =	Dividends Declared Per Share of Common Stock	1.38	1.15					Dividends Per Share =	Dividends Declared Per Share of Common Stock	1.59	1.46
	Dividend Yield =	Dividends	4.6%	5.6%					Dividend Yield =	Dividends	2.3%	2.3%					Dividend Yield =	Dividends	2.3%	2.4%
		Current Stock Price								Current Stock Price								Current Stock Price

Parsimonious Forecast (Mod 11)

Forecasting Financial Statements (Module 11)
KEY:
	Editable Fields
	Company A - home depot	1/30/12		2/4/13		Estimates
	($ Millions)	Actual	% of Net Sales Factor	Actual	% of Net Sales Factor	Estimate Factors	2014 Est	2015 Est	2016 Est	2017 Est	Terminal Period
	Net Sales Growth		N/A	6.19%	N/A	N/A	5.40%	5.00%	4.40%	3.90%	3.80%
	Net Sales	$ 70,395.00	100.00%	$ 74,754.00	100.00%	100.00%	$ 78,791	$ 82,730	$ 86,370	$ 89,739	$ 93,149
	NOPAT	$ 4,268.45	6.06%	$ 4,889.25	6.54%	6.60%	$ 5,200	$ 5,460	$ 5,700	$ 5,923	$ 6,148
	NOA	$ 28,710.00	40.78%	$ 27,990.00	37.44%	37.80%	$ 29,783	$ 31,272	$ 32,648	$ 33,921	$ 35,210
	Dividends	$ 1,632.00	2.32%	$ 1,743.00	2.33%	2.34%	$ 1,844	$ 1,936	$ 2,021	$ 2,100	$ 2,180
	Note: Net Sales Growth Assumptions sourced from Bloomberg.

http://www.standardandpoors.com/ratings/en/us/

Cost of Capital & DDM (Mod 12)

Cost of Capital and Valuation Basics (Module 12)

KEY:

Editable Fields

Dividend Discount Model

Cost of EQUITY Capital

Dividend Discount Model with Increasing Perpetuity

Capital Asset Pricing Model

2014

2015

2016

Perpetuity

Comments

Component

Definition

Where to find it.

Amount

Comments / Assumptions

Intrinsic Value

Dividend Year 1

Dividend Year 2

Dividend Year 3

Perpetuity

<--Perpetuity is the Terminal Dividend divided by the Cost of Equity Capital

Risk Free Rate (10 Year US Treasury)

10 Year Treasury

http://finance.yahoo.com/bonds/composite_bond_rates

2.69%

Discount Rate Year 1

Discount Rate Year 2

Discount Rate Year 3

<---All use the Cost of Equity Capital

Market Risk Premium

Difference between the expected market return and the expected risk free rate

Determine the Average Market Return and Subtract the Risk Free Rate. Avg Market Return can be found by taking a longer run S&P500 or Dow Jones Avg. finance.yahoo.com

4.60%

Market Beta

Sensitivity of the assets market return to the overall market

finance.yahoo.com

0.89

Dividends (in Millions of $)

$ 1,843.70

$ 1,935.89

$ 2,021.07

$ 2,099.89

<---From Parsimonious Forecast (Mod 11)

Cost of Equity Capital

6.78%

Weighted Avg Common Shares (in Millions)

1,499.00

<---From 10K

Dividends Per Share

$ 1.23

$ 1.29

$ 1.35

$ 1.40

Cost of DEBT Capital

Component

Definition

Where to find it.

Amount

Comments / Assumptions

Intrinsic Value

$ 1.23

$ 1.29

$ 1.35

$ 20.65

Debt Rating for Firm

What Moody's, S&P, or Fitch rates the firm.

http://www.standardandpoors.com/ratings/en/us/

1.07

1.14

1.22

Prevailing Market Rate of Interest for that Debt Rating

The prevailing rate of interest being paid on bonds carrying that rating.

http://finance.yahoo.com/bonds/composite_bond_rates

4.60%

Tax Rate

37.20%

Intrinsic Value

$ 1.15

$ 1.13

$ 1.11

$ 16.96

Cost of Debt Capital

2.89%

Intrinsic Value

$ 20.35

Weighted Average Cost of Capital

Component

Definition

Where to find it.

Amount

Comments / Assumptions

Questions / Implications

Market Value of Equity

value of the Equity (Stock).

finance.yahoo.com

$ 9,847,824,000

Total stockholder equity. 02/03/2014

How does this compare to the price in the stock market?

Price in the Stock Market on 1/31/2014 is $76.85. This is far higher than the Intrinsic value from the DDM.

Market Value of Debt

value of the Debt (Bonds).

finance.yahoo.com

$ 12,200,000

SEC

What are the implications?

DDM may not be the best valuation model for Home depot since Home depot pays such a small portion of its profits in dividends (historically).

Total Market Value of Equity and Debt

Total of both of the above.

Result of Above.

$ 9,860,024,000

Weighted Average Cost of Capital

6.78%

9847824000

http://www.standardandpoors.com/ratings/en/us/

Cash Flow & DCF (Mod 13)

Discounted Cash Flow Model (Mod 13)
	STEPS TO USING THE DISCOUNTED CASH FLOW MODEL
	1.Forecast and discount free cash flows to the firm (FCFF) for the horizon period.
	1a. Calculate Increase in NOA.
	1b. Calculate FCFF.
	1c. Populate the Discount Factor
	1d. Calculate the PV of the Horizon FCFF.
	2.Forecast and discount FCFF for the post-horizon period, called the terminal period.
	3.Sum the present values of the horizon and terminal periods to yield firm value.
	4.Subtract the value of the firm’s debt (NNO = Net NonOperating Obligations) from the value of the firm.
	5.Divide this amount by the number of shares outstanding to yield the estimated per share stock price
KEY:
	Editable Fields
		Reported	Horizon Period				Terminal
	Year	2/4/13	2014	2015	2016	2017	Period
	Period	0	1	2	3	4	4
	WACC		6.78%	6.78%	6.78%	6.78%	6.78%	<---WACC from Cost of Capital (Mod 12)
	Terminal Period Sales Growth		N/A	N/A	N/A	N/A	3.80%	<---From Parsimonious Forecast (Mod 11)
	Sales (Rounded)	$ 74,754	$ 78,791	$ 82,730	$ 86,370	$ 89,739	$ 93,149
	NOPAT	$ 4,889	$ 5,200	$ 5,460	$ 5,700	$ 5,923	$ 6,148
	NOA	$ 27,990	$ 29,783	$ 31,272	$ 32,648	$ 33,921	$ 35,210
	Increase in NOA		$ 1,793	$ 1,489	$ 1,376	$ 1,273	$ 1,289
	FCFF (NOPAT - Increase in NOA)		$ 3,407	$ 3,971	$ 4,324	$ 4,649	$ 4,859
	Discount Factor		0.93651	0.87706	0.82137	0.76923		<---Discount Factor is 1 / [(1+WACC)^(# of Periods)]
	Present Value of Horizon FCFF		$ 3,191	$ 3,483	$ 3,552	$ 3,577
	Cum Present Value of Horizon FCFF	$ 13,802
	Present Value of Terminal FCFF	$ 125,455	<---Terminal FCF = [FCFF/(WACC-Terminal Sales Growth)] / [(1+WACC)^(# of Periods)]
	Total Firm Value	$ 139,257
	Less (Plus) NNO	$ 8,302	<---Nonoperating liabilities less nonoperating assets
	Firm Equity Value	$ 130,955
	Shares Outstanding	1,499.00	<---From 10K
	Stock Value Per Share	$ 87.36
Questions / Implications
	How does this compare to the price in the stock market?
	What do you believe are the reasons for the difference?
	What investment decision is suggested from your results?

Terminal FCF Discount Rate - Terminal Period Sales Growth

(1 + Discount Rate) "X"YRS

Terminal FCF Calculation

Oper Inc & ROPI (Mod 14)

Residual Operating Income Model (Mod 14)
	STEPS TO USING THE DISCOUNTED CASH FLOW MODEL
	1.Forecast and discount the firm ROPI for the horizon period.
	1a. Calculate Horizon period ROPI.
	1b. Populate the Discount Factor
	1c. Calculate the PV of the Horizon ROPI.
	2.Forecast and discount ROPI for the post-horizon period, called the terminal period.
	3.Sum the present values of the horizon and terminal periods to yield firm value and current NOA
	4.Subtract the value of the firm’s debt (NNO = Net NonOperating Obligations) from the value of the firm.
	5.Divide this amount by the number of shares outstanding to yield the estimated per share stock price
KEY:
	Editable Fields
		Reported	Horizon Period				Terminal
		2/4/13	2014	2015	2016	2017	Period
	Period	0	1	2	3	4	4
	WACC		6.78%	6.78%	6.78%	6.78%	6.78%	<---WACC from Cost of Capital (Mod 12)
	Terminal Period Sales Growth		N/A	N/A	N/A	N/A	3.80%	<---From Parsimonious Forecast (Mod 11)
	Sales (Rounded)	$ 74,754	$ 78,791	$ 82,730	$ 86,370	$ 89,739	$ 93,149
	NOPAT	$ 4,889	$ 5,200	$ 5,460	$ 5,700	$ 5,923	$ 6,148
	NOA	$ 27,990	$ 29,783	$ 31,272	$ 32,648	$ 33,921	$ 35,210
	Increase in NOA		$ 1,793	$ 1,489	$ 1,376	$ 1,273	$ 1,289
	ROPI (NOPAT - [NOA x WACC])		$ 3,303	$ 3,441	$ 3,580	$ 3,709	$ 3,848
	Discount Factor		0.93651	0.87706	0.82137	0.76923		<---Discount Factor is 1 / [(1+WACC)^(# of Periods)]
	Present Value of Horizon ROPI		$ 3,093	$ 3,018	$ 2,941	$ 2,853
	Cum Present Value of Horizon ROPI	$ 11,905
	Present Value of Terminal ROPI	$ 99,362	<---Terminal ROPI = [ROPI/(WACC-Terminal Sales Growth)] / [(1+WACC)^(# of Periods)]
	NOA	$ 27,990
	Total Firm Value	$ 139,257
	Less (Plus) NNO	$ 8,302	<---Nonoperating liabilities less nonoperating assets
	Firm Equity Value	$ 130,955
	Shares Outstanding	1,499.00	<---From 10K
	Stock Value Per Share	$ 87.36
Questions / Implications
	How does this compare to the DCF Model and DDM Model results?
	How does this compare to the price in the stock market?
	What do you believe are the reasons for the difference?
	What investment decision is suggested from your results?

Terminal ROPI Discount Rate - Terminal Period Sales Growth

(1 + Discount Rate) "X"YRS

Terminal ROPI Calculation

Market Valuation (Mod 15)

Market Based Valuation (Mod 15)
MODEL #1: Using BALANCE SHEET Multiples							Example Exhibits
	1. Populate the editable fields for the Company and two Comparable Companies.
KEY:
	Editable Fields
					Source:
	(in Millions)	Company A - home depot	Company B - target	Company C - walmart
	Company Assumed Value		$58,630	$279,862	Market	<-Mkt Cap and NNO
	Equity Assumed Value		$40,157	$236,011	Market	<-Market Capitalization
	Net Operating Assets	$27,990	$35,031	$128,612	Financials
	Book Value of Equity	$17,777	$16,558	$81,738	Financials
	Net Nonoperating Obligations (assets)	$8,302	$18,473	$43,851	Financials	<-Nonoperating liabilities less nonoperating assets
	Common Shares Outstanding	1,499.00	656.70	3,374.00	Financials
	Method #1: Valuation Using Net Operating Asset (NOA) Multiple
	Company Assumed Value		$58,630	$279,862
	Net Operating Assets	$27,990	$35,031	$128,612
	Common Shares Outstanding	1499	656.7	3374
	NOA Market Multiples	1.92	1.67	2.18
	Company Intrinsic Value	$53,876	<----Net Operating Assets x NOA Market Multiple
	Equity Intrinsic Value	$45,574	<---Company Intrinsic Value - NNO
	Equity Intrinsic Value per Share	$30.40
	2. Calculate the NOA Multiple for comparable companies.
	3. Calculate the NOA Multiple for the target company based upon an average of the comparable companies.
	4. Calculate the Company Intrinsic value by multiplying the NOA Multiple times the Net Operating Assets.
	5. Calculate the Equity Intrinsic Value by subtracting the Net Nonoperating Obligations (assets)
	6. Calculate the Equity Intrinsic value per share by dividing the Equity Intrinsic value by the common shares outstanding.
	Method #2: Valuation Using a Book Value (BV) Multiple
	Equity Assumed Value		$40,157	$236,011
	Book Value of Equity	$17,777	$16,558	$81,738
	Common Shares Outstanding	1499	656.7	3374
	BV Market Multiple	2.66	2.43	2.89
	Equity Intrinsic Value	$47,222	<----BV of Equity x BV Market Multiple
	Equity Intrinsic Value per Share	$31.50	<----Equity Intrinsic Value divded by Common Shares Outstanding
	2. Calculate the BV Multiple for the comparable companies.
	3. Calculate the BV Multiple for the target company based upon an average of the comparable companies.
	4. Calculate the Equity Intrinsic value by multiplying the BV Multiple times the Book Value of Equity.
	5. Calculate the Equity Intrinsic value per share by dividing the Equity Intrinsic value by the common shares outstanding.
MODEL #2: Using INCOME STATEMENT Multiples
	1. Populate the editable fields for the Company and two Comparable Companies.
KEY:
	Editable Fields
					Source:
	(in Millions)	Company A - home depot	Company B - target	Company C - walmart
	Company Assumed Value		$58,630	$279,862	Market	<-Mkt Cap and NNO
	Equity Assumed Value		$40,157	$236,011	Market	<-Market Capitalization
	NetOperating Profit after Taxes (NOPAT)	$4,889	$3,494	$19,098	Financials
	Net Income	$4,535	$2,999	$16,999	Financials
	Net Nonoperating Obligations (Assets)	$8,302	$18,473	$43,851	Financials	<-Nonoperating liabilities less nonoperating assets
	Common Shares Outstanding	1,499.00	656.70	3,374.00	Financials
	Method #1: Valuation Using Net Operating Profit After Taxes (NOPAT) Multiple
	Company Assumed Value		$58,630	$279,862
	Net Operating Profit After Tax (NOPAT)	$4,889	$3,494	$19,098
	Common Shares Outstanding	1499	656.7	3374
	NOPAT Market Multiple	15.72	16.78	14.65
	Company Intrinsic Value	$76,842	<--NOPAT x NOPAT Market Multiple
	Equity Intrinsic Value	$68,540	<--Company Intrinsic Value - NNO
	Equity Intrinsic Value per Share	$45.72
	2. Calculate the NOPAT Multiple for the comparable companies.
	3. Calculate the NOPAT Multiple for the target company based upon an average of the comparable companies.
	4. Calculate the Company Intrinsic value by multiplying the NOPAT Multiple times the NOPAT.
	5. Calculate the Equity Intrinsic Value by subtracting the Net Nonoperating Obligations (assets)
	6. Calculate the Equity Intrinsic value per share by dividing the Equity Intrinsic value by the common shares outstanding.
	Method #2: Valuation Using Net Income (NI) Multiple
	Equity Assumed Value		$40,157	$236,011
	Net Income	$4,535	$2,999	$16,999
	Common Shares Outstanding	1499	656.7	3374
	NI Market Multiple	13.64	13.39	13.88
	Equity Intrinsic Value	$61,844	<--Net Income x NI Market Multiple
	Equity Intrinsic Value per Share	$41.26	<--Equity Intrinsic Value / Common Shares Outstanding
	2. Calculate the NI Multiple for the comparable companies.
	3. Calculate the NI Multiple for the target company based upon an average of the comparable companies.
	4. Calculate the Equity Intrinsic value by multiplying the NI Multiple times the NI.
	5. Calculate the Equity Intrinsic value per share by dividing the Equity Intrinsic value by the common shares outstanding.
Summary
	Method	$ Per Share
	NOA Multiple	$30.40
	BV Multiple	$31.50
	NOPAT Multiple	$45.72
	NI Multiple	$41.26
Questions / Implications
	How do the above figures compare to each other? Explain any differences.
	How does it compare to the closing price of the stock on the exchange?
	What do you believe to be the reasons for the difference?
	What investment decision is suggested from your results?

Summary

SUMMARY
Summary
	CURRENT STOCK PRICE (as of XX/XX/20XX)	$ 66.36
	Dividend Discount Model (DDM)	$ 20.35
	Discounted Cash Flow (DCF)	$ 87.36
	Residual Operating Income (ROPI)	$ 87.36
	Market Valuations
	NOA Multiple (Balance Sheet)	$ 30.40
	BV Multiple (Balance Sheet)	$ 31.50
	NOPAT Multiple (Income Statement)	$ 45.72
	NI Multiple (Income Statement)	$ 41.26
Questions / Implications
	Given the current stock price for your company, are they overvalued or undervalued? Why?
	Which valuation model(s) did you use to arrive at this conclusion? Why?
	How did the results from the various valuation models compare to one another? What do you believe were the reasons for the differences?
	What investment decision is suggested from your results?