Current Financial Information (Enter the most recent information you can find; if possible, use trailing 12-month

data)
I. Income Statement
Current EBIT = $ (146.84)
Current Interest Expense = $ 0.92
Current Capital Spending $ 105.41
Current Depreciation and Amortization $ 10.62
Current Revenues = $ 116.74
II. Balance Sheet This period Last period
Current Non-cash Working Capital = $ 22.94 $ 11.62
Book Value of Debt = $ 71.83 0
Book Value of Equity = $ 72.13 -253.523
Cash & Marketable Securities = $ 173.16
Non-operating Assets $ 22.73
III. Tax Information
NOL carried forward = $ 141.00
Marginal tax rate = 40.00%

Adjustments to Current Financial Information

Do you have any operating leases? Yes
Does your firm have R&D expenses? Yes
Are there any other operating expenses to be capitalized? No

Discount Rate Inputs

Current Beta = 1.50
Current Cost of Borrowing = 8.00%
Current Market Value of Debt = $ 76.00

Expectations for the future

Do you want to enter the growth rate in revenues each year? Yes
If no, Compounded Annual Growth Rate in Revenues for next 10 years: 15.00%
Do you want me to use current working capital as percent of revenues for the future? Yes
If not, enter non-cash working capital as a percent of revenues in future periods 24.35%
How would you like capital expenditures to be estimated? 3
If you would chose 3, enter the sales to capital ratio that you would like maintained 2.00

Stable Growth Inputs

Expected Growth Rate in perpetutity = 3.50% Speed of convergence
Expected Operating Margin = 10.00% 2
Expected Debt to Capital(MV) Ratio for the firm = 35.00%
Expected Beta = 0.90
Expected Cost of Debt = 5.00%
Return on Capital for the firm = 10.00%

Per Share Inputs

Number of Shares outstanding = 95.63
Current Stock Price = $ 29.00
Does your firm have equity options outstanding? Yes
If yes, enter the number of options outstanding = 13.805
and the average exercise price of the options outstanding 8.59
and the average maturity of the options outstanding = 6.06
and the standard deviation in the firm's stock price = 71%

General Information
Current long term government bond rate = 3.50%
Estimated Market Risk Premium = 5.00%
Relative Valuation
If you want to do a relative valuation of your firm, enter these inputs:
Year on which multiple is to be applied = 10
Value to Sales multiple in that year = 0.82
data)
 Base 1 2 3 4 5 6 7 8 9 10
Revenue Growth Rate 150.00% 100.00% 80.00% 60.00% 40.00% 30.00% 20.00% 15.00% 10.00% 5.00%
Revenues $117 $292 $584 $1,051 $1,681 $2,354 $3,060 $3,672 $4,222 $4,645 $4,877
Operating Margin -69.28% -42.86% -25.24% -13.49% -5.66% -0.44% 3.04% 5.36% 6.91% 7.94% 8.63%
EBIT -$81 -$125 -$147 -$142 -$95 -$10 $93 $197 $292 $369 $421
Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $116 $168
EBIT(1-t) -$81 -$125 -$147 -$142 -$95 -$10 $93 $197 $292 $253 $252
+ Depreciation $41 $66 $93 $121 $145 $166 $183 $192 $199 $206 $213
- Capital Expenditure $198 $119 $181 $262 $336 $370 $397 $378 $366 $334 $283
- Chg WC $11 $34 $57 $92 $124 $132 $139 $120 $108 $83 $46
FCFF -$249 -$213 -$293 -$375 -$410 -$347 -$260 -$109 $16 $42 $136
NOL $141 $266 $413 $555 $650 $661 $568 $371 $79 $0 $0
Terminal Value

Cost of Capital Calculations

Tax Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 31.40% 40.00%
Debt Ratio 3.81% 3.81% 3.81% 3.81% 3.81% 3.81% 10.05% 11.61% 14.20% 19.40% 35.00%
Beta 1.50 1.50 1.50 1.50 1.50 1.50 1.38 1.26 1.14 1.02 0.90
Cost of Equity 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 10.40% 9.80% 9.20% 8.60% 8.00%
Cost of Debt 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 7.40% 7.25% 7.00% 6.50% 5.00%
After-tax cost of debt 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 7.40% 7.25% 7.00% 4.46% 3.00%
Cost of Capital 10.89% 10.89% 10.89% 10.89% 10.89% 10.89% 10.10% 9.50% 8.89% 7.80% 6.25%

Computed Variables (These are measures of how efficiently your firm is investing over time)
Total Capital Invested $ 311.00 $ 399 $ 544 $ 778 $ 1,093 $ 1,429 $ 1,782 $ 2,088 $ 2,364 $ 2,575 $ 2,691
Reinvestment Rate NMF NMF NMF NMF NMF NMF #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Increase in Revenue/Increase in Capital 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Return on Capital -40.22% -36.96% -26.03% -12.23% -0.95% 6.51% 11.04% 13.96% 10.70% 9.80%

Present Value Calculations

Cumulative WACC 1.10885794 1.229565935666 1.363413953 1.51183239 1.67640735288 1.84570161867 2.021118370467 2.2007452533 2.3723276468 2.52059812474
Present Value of FCFF $ (192) $ (238) $ (275) $ (271) $ (207) $ (141) $ (54) $ 7 $ 18 $ 54
Present Value of Terminal Value $ 2,840

The Valuation
PV of FCFF during high growth phase = $ (1,300)
PV of Terminal Value = $ 2,840
Value of Operating Assets of the firm = $ 1,540
Value of Cash & Non-operating assets= $ 195.89
Value of Firm = $ 1,736
- Value of Outstanding Debt = $ 110
Value of Equity = $ 1,626
- Value of Equity Options = $ 328
Value of Equity in Common Stock = $ 1,299 Treasury Stock Approach
Value of Equity per share = $ 13.58 $ 15.95

Summary Output
Revenues $292 $584 $1,051 $1,681 $2,354 $3,060 $3,672 $4,222 $4,645 $4,877 $5,047
EBIT -$125 -$147 -$142 -$95 -$10 $93 $197 $292 $369 $421 $505
EBIT(1-t) -$125 -$147 -$142 -$95 -$10 $93 $197 $292 $253 $252 $303
- Reinvestment $88 $146 $233 $315 $336 $353 $306 $275 $211 $116 $106
FCFF -$213 -$293 -$375 -$410 -$347 -$260 -$109 $16 $42 $136 $197
Terminal Year
3.50%
$5,047
10.00%
$505
$202
$303
$220
$293
$34
$197
$0
$7,158

40.00%
35.00%
0.90
8.00%
5.00%
3.00%
6.25%

$ 2,797
35.00%
1.61
10.00%
Relative Valuation Output
Year in which multiple is used = 10 Year
Value to Sales Ratio for Specialty retailers= 0.82 1
2
Revenue in chosen year = $ 4,877 3
Value in chosen year = $ 3,999 4
Cost of capital in chosen yea 2.5206 5
Value today = $ 1,586 6
+ Cash & Securities = $ 196 7
- Debt outstanding = $ 110 8
-Equity options outstanding $ 328 9
Value of Equity in stock = $ 1,345 10
Value per share = $ 14.06

1950.8
 Revenues Cumulated Cost of Capital
$ 292 110.89%
$ 584 122.96%
$ 1,051 136.34%
$ 1,681 151.18%
$ 2,354 167.64%
$ 3,060 184.57%
$ 3,672 202.11%
$ 4,222 220.07%
$ 4,645 237.23%
$ 4,877 252.06%
Company Market Value Percent Owned
 Operating Lease Converter
Inputs
Operating lease expense in current year = $ -
Operating Lease Commitments (From footnote to financials)
Year Commitment ! Year 1 is next year, ….
1 $ 6.79
2 $ 6.63
3 $ 6.56
4 $ 6.43
5 $ 5.89
6 and beyond $ 21.13

Output
Pre-tax Cost of Debt = 11.00% ! If you do not have a cost of debt, use the ratings estimator

From the current financial statements, enter the following

Reported Operating Income (EBIT) = $ (146.84) ! This is the EBIT reported in the current income statement
Reported Debt = $ 76.00 ! This is the interest-bearing debt reported on the balance sheet

Number of years embedded in yr 6 estimate = 4 ! 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 $ 6.79 $ 6.12
2 $ 6.63 $ 5.38
3 $ 6.56 $ 4.80
4 $ 6.43 $ 4.24
5 $ 5.89 $ 3.50
6 and beyond $ 5.28 $ 9.72 ! Commitment beyond year 6 converted into an annuity for ten years
Debt Value of leases = $ 33.75

Restated Financials
Depreciation on Operating Lease Asset = $ 3.75 ! I use straight line depreciation
Adjustment to Operating Earnings = $3.71 ! PV of operating leases * Pre-tax cost o
Adjustment to Total Debt outstanding = $ 33.75
verter

urrent income statement

eported on the balance sheet

ver the first five years

expenses in yr 6

ity for ten years

use straight line depreciation

PV of operating leases * Pre-tax cost of debt
 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 5 ! If in doubt, use the lookup tab
Enter the current year's R&D expense = $ 93.00 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 19.30 ! Year -1 is the year prior to the current year
-2 49.00 ! Year -2 is the two years prior to the current year
-3 60.50
-4 25.00

0
0
0
0
0

Output
Year R&D Expense Unamortized portion Amortization this year
Current 93.00 1.00 93.00
-1 19.30 0.80 15.44 $ 3.86
-2 49.00 0.60 29.40 $ 9.80
-3 60.50 0.40 24.20 $ 12.10
-4 25.00 0.20 5.00 $ 5.00
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
Value of Research Asset = $167.04 $ 30.76

Amortization of asset for current year = $30.76

Adjustment to Operating Income = $62.24 ! A positive number indicates an increase in operating income (add to repo
Tax Effect of R&D Expensing $25

Look Up Table for Amortization Periods

Industry Name Amortization Period
Advertising 2
Aerospace/Defe 10 Non-technological Service 2 years
Air Transport 10 Retail, Tech Service 3 years
Aluminum 5 Light Manufacturing 5 years
Apparel 3 Heavy Manufacturing 10 years
Auto & Truck 10 Research, with Patenting 10 years
Auto Parts (OE 5 Long Gestation Period 10 years
Auto Parts (Rep 5
Bank 2
Bank (Canadian 2
Bank (Foreign) 2
Bank (Midwest) 2
Beverage (Alcoh 3
Beverage (Soft 3
Building Materi 5
Cable TV 10
Canadian Energ 10
Cement & Aggre 10
Chemical (Basic 10
Chemical (Diver 10
Chemical (Speci 10
Coal/Alternate 5
Computer & Per 5
Computer Softw 3
Copper 5
Diversified Co. 5
Drug 10
Drugstore 3
Educational Ser 3
Electric Util. (C 10
Electric Utility 10
Electric Utility 10
Electrical Equi 10
Electronics 5
Entertainment 3
Environmental 5
Financial Servic 2
Food Processin 3
Food Wholesale 3
Foreign Electro 5
Foreign Teleco 10
Furn./Home Fur 3
Gold/Silver Min 5
Grocery 2
Healthcare Info 3
Home Applianc 5
Homebuilding 5
Hotel/Gaming 3
Household Prod 3
Industrial Servi 3
Insurance (Diver 3
Insurance (Life) 3
Insurance (Prop 3
Internet 3
Investment Co. 3
Investment Co. 3
Investment Co. 3
Machinery 10
Manuf. Housing 5
Maritime 10
Medical Service 3
Medical Supplie 5
Metal Fabricati 10
Metals & Mining 5
Natural Gas (Dis 10
Natural Gas (Div 10
Newspaper 3
Office Equip & 5
Oilfield Service 5
Packaging & Co 5
Paper & Forest 10
Petroleum (Inte 5
Petroleum (Prod 5
Precision Instr 5
Publishing 3
R.E.I.T. 3
Railroad 5
Recreation 5
Restaurant 2
Retail (Special 2
Retail Building 2
Retail Store 2
Securities Brok 2
Semiconductor 5
Semiconductor 5
Shoe 3
Steel (General) 5
Steel (Integrate 5
Telecom. Equip 10
Telecom. Servic 5
Textile 5
Thrift 2
Tire & Rubber 5
Tobacco 5
Toiletries/Cosm 3
Trucking/Transp 5
Utility (Foreign 10
Water Utility 10
te adjustments to operating income, net

f in doubt, use the lookup tab

he maximum allowed is ten years
ned by the amortization period

crease in operating income (add to reported EBIT)

 Other Expenses to Capitalize
This spreadsheet converts any 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 these expenses 10
Enter the current year's operating expense = $ - The maximum allowed is ten years
Enter operating 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 Operating Expenses
-1 0.00 ! Year -1 is the year prior to the current year
-2 0.00 ! Year -2 is the two years prior to the current year
-3 0.00
-4 0.00
-5 0.00
-6
-7
-8
-9
-10

Output
Year R&D Expense Unamortized portion Amortization this year
Current 0.00 1.00 0.00
-1 0.00 0.90 0.00 $ -
-2 0.00 0.80 0.00 $ -
-3 0.00 0.70 0.00 $ -
-4 0.00 0.60 0.00 $ -
-5 0.00 0.50 0.00 $ -
-6 0.00 0.40 0.00 $ -
-7 0.00 0.30 0.00 $ -
-8 0.00 0.20 0.00 $ -
-9 0.00 0.10 0.00 $ -
-10 0.00 0.00 0.00 $ -
Value of Expensing Asset = $0.00 $ -

Amortization of asset for current year = $0.00

Adjustment to Operating Income = $0.00 ! A positive number indicates an increase in operating income (add
Tax Effect of Expensing $0
ments to operating income, net

he maximum allowed is ten years

by the amortization period

crease in operating income (add to reported EBIT)

Enter the expected growth rate in revenues each year for the next 10 years
Year Expected Growth Rate
1 150.00%
2 100.00%
3 80.00%
4 60.00%
5 40.00%
6 30.00%
7 20.00%
8 15.00%
9 10.00%
10 5.00%
Compounded A 45.24%
Valuing Options or Warrants
Enter the current stock price = $ 29.00
Enter the strike price on the option = 8.59
Enter the expiration of the option = 6.06
Enter the standard deviation in stock prices = 71.00% (volatility)
Enter the annualized dividend yield on stock = 0.00%
Enter the treasury bond rate = 3.50%
Enter the number of warrants (options) outstandi 13.805
Enter the number of shares outstanding = 95.63

Do not input any numbers below this line

VALUING WARRANTS WHEN THERE IS DILUTION
Stock Price= $ 29.00 # Warrants issued= 13.805
Strike Price= 8.59 # Shares outstanding= 96
Adjusted S (DO NOT ENTER)= 28.335472722 T.Bond rate= 3.50%
Adjusted K (DO NOT ENTER) 8.59 Variance= 0.5041
Expiration (in years) = 6.06 Annualized dividend yield= 0.00%
Div. Adj. interest rate= 3.50%

d1 = 1.6781204814
N (d1) = 0.9533382094

d2 = -0.0696912934
N (d2) = 0.4722196859

Value per option = $ 23.73

Value of all options outstanding = $328
Industry Name Number of firmsLevered Beta Unlevered BeStd Dev: Equity Market D/E
Advertising 36 1.60 1.12 116.42% 72.76%
Aerospace/Defense 67 1.19 1.09 64.87% 22.94%
Air Transport 44 1.06 0.76 74.09% 70.74%
Apparel 56 1.30 1.17 79.35% 23.61%
Auto & Truck 22 1.72 0.83 52.03% 154.47%
Auto Parts 54 1.75 1.38 67.05% 51.24%
Bank 481 0.75 0.32 43.53% 198.22%
Bank (Canadian) 7 0.86 0.82 23.74% 16.44%
Bank (Midwest) 39 0.96 0.57 36.76% 110.54%
Beverage 41 1.04 0.93 64.45% 16.92%
Biotechnology 121 1.10 1.12 294.47% 14.78%
Building Materials 53 1.44 0.89 72.48% 83.80%
Cable TV 24 1.69 1.06 56.05% 85.22%
Canadian Energy 10 1.18 0.98 33.08% 30.86%
Chemical (Basic) 17 1.27 1.18 45.17% 20.37%
Chemical (Diversified) 31 1.37 1.25 48.47% 19.85%
Chemical (Specialty) 97 1.29 1.08 75.72% 29.01%
Coal 21 1.67 1.45 53.61% 23.68%
Computer Software/Svcs 333 1.02 1.08 598.70% 5.61%
Computers/Peripherals 129 1.29 1.33 103.24% 10.93%
Diversified Co. 121 1.20 0.64 68.45% 138.78%
Drug 337 1.11 1.07 112.43% 12.58%
E-Commerce 56 1.18 1.24 54.16% 8.74%
Educational Services 38 0.75 0.78 62.68% 7.21%
Electric Util. (Central) 23 0.79 0.48 25.86% 102.89%
Electric Utility (East) 24 0.73 0.50 25.52% 75.74%
Electric Utility (West) 14 0.75 0.49 21.92% 89.99%
Electrical Equipment 87 1.41 1.33 75.73% 16.91%
Electronics 183 1.16 1.10 86.80% 26.37%
Entertainment 95 1.81 1.29 82.85% 56.83%
Entertainment Tech 35 1.32 1.53 80.18% 11.72%
Environmental 91 0.97 0.70 86.06% 49.42%
Financial Svcs. (Div.) 296 1.39 0.47 87.65% 305.02%
Food Processing 121 0.86 0.72 51.75% 29.31%
Foreign Electronics 9 1.13 1.16 31.24% 29.12%
Funeral Services 5 1.19 0.86 33.82% 56.52%
Furn/Home Furnishings 35 1.52 1.23 70.15% 38.54%
Healthcare Information 33 0.97 0.94 66.68% 13.57%
Heavy Construction 14 1.42 1.63 48.31% 7.58%
Homebuilding 28 1.45 0.98 66.60% 102.34%
Hotel/Gaming 74 1.74 1.06 92.93% 85.90%
Household Products 23 1.15 1.00 44.33% 22.36%
Human Resources 30 1.38 1.47 59.07% 13.17%
Industrial Services 168 1.07 0.91 74.25% 33.96%
Information Services 29 1.28 1.12 49.65% 23.68%
Insurance (Life) 31 1.38 1.75 66.33% 36.81%
Insurance (Prop/Cas.) 85 0.92 1.00 34.68% 24.03%
Internet 239 1.04 1.13 104.81% 2.28%
Investment Co. 19 0.76 1.71 23.03% 59.26%
Investment Co.(Foreign) 16 1.39 1.36 32.87% 9.38%
Machinery 130 1.32 1.03 67.11% 46.80%
Manuf. Housing/RV 15 1.21 1.35 62.57% 3.98%
Maritime 53 1.38 0.61 39.35% 159.57%
Medical Services 162 0.97 0.81 84.02% 43.09%
Medical Supplies 264 1.04 1.02 82.45% 11.36%
Metal Fabricating 36 1.54 1.51 54.08% 18.80%
Metals & Mining (Div.) 79 1.23 1.11 113.41% 14.78%
Natural Gas (Div.) 32 1.29 0.97 46.18% 47.84%
Natural Gas Utility 24 0.67 0.43 28.15% 80.53%
Newspaper 15 1.94 1.44 69.74% 55.65%
Office Equip/Supplies 25 1.19 0.89 52.67% 56.84%
Oil/Gas Distribution 19 0.89 0.58 37.58% 61.46%
Oilfield Svcs/Equip. 113 1.45 1.27 51.68% 25.97%
Packaging & Container 31 1.20 0.83 47.29% 61.31%
Paper/Forest Products 39 1.63 0.96 66.54% 86.48%
Petroleum (Integrated) 24 1.24 1.21 41.48% 14.44%
Petroleum (Producing) 198 1.16 0.97 95.98% 27.01%
Pharmacy Services 21 0.88 0.79 36.80% 20.07%
Power 77 1.23 0.69 86.83% 103.58%
Precious Metals 78 1.18 1.13 72.44% 8.49%
Precision Instrument 98 1.24 1.24 284.85% 15.02%
Property Management 20 1.63 0.63 47.93% 191.86%
Public/Private Equity 9 2.40 1.02 67.97% 169.66%
Publishing 30 1.43 0.94 51.79% 70.33%
R.E.I.T. 143 1.60 1.01 50.27% 67.45%
Railroad 15 1.29 1.07 37.52% 32.95%
Recreation 65 1.43 1.06 83.39% 49.77%
Reinsurance 8 1.07 1.28 30.67% 17.69%
Restaurant 68 1.34 1.17 86.62% 22.48%
Retail (Special Lines) 157 1.43 1.38 71.37% 16.08%
Retail Automotive 15 1.46 1.16 47.06% 44.57%
Retail Building Supply 7 0.95 0.85 34.70% 19.12%
Retail Store 43 1.35 1.16 69.29% 26.98%
Retail/Wholesale Food 32 0.73 0.63 280.49% 26.17%
Securities Brokerage 30 1.18 0.55 62.66% 281.05%
Semiconductor 125 1.56 1.67 64.76% 8.06%
Semiconductor Equip 14 1.93 2.13 58.57% 7.28%
Shoe 19 1.34 1.47 47.22% 3.55%
Steel (General) 20 1.61 1.40 48.49% 30.81%
Steel (Integrated) 15 1.85 1.55 53.57% 39.30%
Telecom. Equipment 115 1.15 1.33 89.43% 10.90%
Telecom. Services 140 1.10 0.83 76.90% 47.03%
Thrift 227 0.73 0.72 43.55% 21.74%
Tobacco 12 0.78 0.71 54.11% 22.93%
Toiletries/Cosmetics 19 1.23 1.10 55.18% 26.33%
Trucking 33 1.30 0.86 49.49% 85.30%
Utility (Foreign) 5 1.07 0.59 30.56% 101.26%
Water Utility 15 0.82 0.51 44.29% 87.95%
Wireless Networking 60 1.50 1.34 80.08% 19.83%
Total Market 7036 1.17 0.90 100.53% 49.99%
Market Debt/Capital ROE ROC Effective Tax Rate Pre-tax Oper
42.11% -24.84% 12.94% 13.01% 15.97%
18.66% 42.20% 25.35% 20.05% 12.32%
41.43% 3.08% 17.77% 17.63% 10.15%
19.10% 16.38% 17.65% 16.54% 12.48%
60.70% ### 11.51% 13.25% 7.66%
33.88% 12.81% 18.45% 12.09% 7.42%
66.47% -3.89% NA 17.50% NA
14.12% 11.91% NA 14.94% NA
52.50% 0.77% NA 20.65% NA
14.47% 38.33% 22.63% 12.12% 19.19%
12.88% 12.21% 12.50% 4.46% 21.94%
45.59% 9.10% 10.08% 14.56% 12.64%
46.01% 8.89% 14.56% 21.86% 34.54%
23.58% 21.79% 23.59% 26.99% 41.62%
16.92% 41.43% 29.30% 21.59% 16.20%
16.56% 22.17% 23.90% 20.84% 18.14%
22.49% 19.00% 19.19% 12.86% 13.55%
19.15% 36.07% 27.27% 13.15% 22.92%
5.32% 49.28% 41.44% 10.12% 26.29%
9.86% 61.78% 39.75% 8.65% 12.49%
58.12% 33.94% 12.05% 18.93% 20.56%
11.18% 26.32% 25.05% 5.62% 32.59%
8.04% 12.35% 17.11% 13.50% 12.67%
6.73% 37.13% 30.65% 24.06% 19.77%
50.71% 11.14% 9.67% 32.27% 20.90%
43.10% 13.35% 11.55% 33.77% 26.54%
47.37% 11.25% 11.13% 32.45% 23.87%
14.46% 22.39% 20.14% 14.07% 15.57%
20.87% 8.37% 15.90% 10.63% 7.14%
36.23% 9.40% 12.62% 11.78% 23.65%
10.49% -8.35% 2.70% 6.28% 3.65%
33.07% 12.37% 12.05% 14.27% 21.81%
75.31% 192.25% 6.62% 16.53% 58.00%
22.67% 27.83% 18.50% 17.29% 12.18%
22.55% -8.93% 16.80% 10.71% 7.97%
36.11% 16.21% 13.45% 24.34% 20.75%
27.82% 7.38% 12.21% 17.48% 7.43%
11.95% 17.47% 17.99% 17.80% 18.80%
7.05% 24.22% 24.12% 33.76% 6.52%
50.58% ### -20.01% 1.42% -15.43%
46.21% 10.54% 10.81% 12.93% 19.84%
18.28% 23.89% 17.23% 24.87% 20.88%
11.64% 13.83% 17.69% 23.63% 4.82%
25.35% 17.06% 18.66% 17.89% 10.16%
19.14% 15.54% 14.20% 19.37% 21.37%
26.91% 32.30% NA 22.47% NA
19.38% 14.19% NA 15.68% NA
2.23% 25.59% 33.78% 5.94% 20.99%
37.21% 558.82% NA 0.00% NA
8.58% 6.16% 1.52% 2.10% 7.18%
31.88% 26.37% 17.22% 20.41% 12.98%
3.83% 6.21% 8.69% 14.80% 4.09%
61.47% 20.70% 13.20% 9.70% 30.03%
30.12% 20.77% 18.15% 18.84% 11.27%
10.20% 24.96% 21.62% 11.24% 11.81%
15.82% 20.40% 20.43% 18.10% 12.70%
12.87% 21.34% 24.03% 7.41% 34.97%
32.36% 17.39% 16.04% 25.01% 40.16%
44.61% 13.55% 11.66% 24.87% 14.99%
35.75% 8.60% 13.60% 27.26% 16.35%
36.24% 24.60% 16.47% 22.62% 9.13%
38.06% 17.00% 11.85% 7.15% 13.81%
20.61% 23.90% 21.43% 22.05% 25.44%
38.01% 12.32% 18.82% 18.18% 13.16%
46.37% -14.59% 10.89% 7.70% 11.50%
12.62% 31.96% 24.87% 33.00% 14.46%
21.27% 15.55% 26.52% 11.27% 35.23%
16.72% 10.57% 13.20% 24.36% 6.71%
50.88% 13.84% 12.61% 7.00% 19.28%
7.82% 4.46% 9.45% 8.41% 34.24%
13.06% 11.88% 16.62% 10.50% 13.92%
65.74% 3.56% 9.98% 9.03% 30.58%
62.92% -16.73% NA 0.80% NA
41.29% -77.36% 26.25% 15.54% 18.30%
40.28% 5.13% 9.62% 0.72% 40.26%
24.79% 17.45% 14.70% 27.39% 31.65%
33.23% 12.77% 13.74% 16.86% 19.14%
15.03% 13.67% NA 4.17% NA
18.36% 31.46% 22.21% 19.86% 18.16%
13.85% 16.20% 20.58% 18.49% 8.28%
30.83% 16.40% 11.65% 32.68% 6.73%
16.05% 15.14% 14.04% 27.05% 9.49%
21.25% 18.74% 15.36% 18.42% 6.57%
20.74% 17.37% 16.73% 30.39% 5.58%
73.76% -12.91% 22.46% 20.49% 64.32%
7.46% 14.58% 28.55% 10.85% 26.57%
6.79% 14.29% 18.30% 16.66% 16.47%
3.43% 23.88% 25.81% 22.11% 11.41%
23.55% 23.19% 20.24% 22.29% 12.68%
28.21% 20.27% 21.99% 22.94% 17.03%
9.83% 13.59% 25.53% 13.79% 12.55%
31.99% 17.70% 23.03% 12.80% 39.19%
17.86% -0.12% NA 11.90% NA
18.66% 94.26% 30.69% 26.03% 24.46%
20.84% 140.78% 24.62% 26.27% 12.92%
46.03% -1.57% 13.51% 30.87% 11.34%
50.31% -4.67% 7.97% 12.11% 19.13%
46.80% 7.13% 7.51% 31.16% 37.35%
16.55% 11.17% 14.57% 9.92% 19.37%
33.33% 14.72% 18.01% 14.07% 21.25%
After-tax Operating Net Margin Cap Ex/ Depreciati Non-cash WC/ Payout Ratio
12.09% -7.53% 72.93% -12.85% NA
8.51% 5.34% 121.25% 0.87% 48.72%
7.29% 0.00% 154.03% -7.74% 2070.48%
9.02% 3.67% 131.83% 19.29% 20.35%
6.80% -3.31% 90.41% 24.35% NA
5.47% -1.47% 98.08% 5.28% 50.30%
NA NA NA NA NA
NA NA NA NA 0.00%
NA NA NA NA 0.00%
14.16% 10.83% 115.79% 3.93% 59.61%
14.69% 11.84% 97.13% 8.69% 0.54%
9.50% 2.68% 115.07% 7.90% 36.11%
22.46% 3.58% 95.57% -10.66% 43.54%
27.06% 8.36% 229.39% 0.17% 100.30%
13.03% 4.01% 145.13% 8.91% 45.60%
13.80% 7.83% 127.87% 14.48% 99.55%
9.94% 3.48% 106.23% 11.17% 88.45%
18.50% 8.94% 164.52% 7.06% 63.20%
18.85% 13.69% 80.80% -7.26% 8.03%
9.59% 5.95% 82.19% -1.62% 37.99%
17.75% 5.57% 123.66% 80.01% 42.74%
24.68% 17.97% 57.91% 10.14% 27.33%
9.65% 5.94% 117.75% -10.02% 0.68%
12.60% 11.08% 107.65% -9.71% 5.58%
13.96% 6.09% 243.73% 6.25% 518.59%
17.43% 7.95% 232.75% 7.62% 385.66%
16.69% 7.71% 219.42% -0.55% 398.39%
11.42% 4.82% 137.62% 11.79% 29.68%
5.38% 0.38% 103.04% 10.99% 26.06%
15.50% 3.75% 84.45% -0.39% 43.82%
2.68% -5.51% 45.31% -7.51% NA
13.27% 5.00% 88.65% 1.20% 86.32%
45.55% -91.89% 319.76% 22.13% NA
8.80% 5.51% 134.70% 6.01% 33.59%
6.88% -3.45% 99.12% 3.59% NA
15.54% 4.94% 110.91% 3.88% 16.43%
5.46% 0.46% 79.87% 12.79% 35.92%
12.85% 7.40% 58.79% 2.41% 2.86%
4.39% 3.57% 119.87% 2.39% 7.87%
-15.59% -19.44% 32.28% 65.71% NA
15.45% 1.32% 225.06% -1.52% 39.47%
15.07% 11.21% 113.45% 6.42% 58.74%
2.74% 0.59% 80.32% 4.26% 16.64%
7.30% 2.49% 111.27% 5.28% 18.41%
15.39% 10.28% 74.03% -2.52% 38.17%
NA NA 197800.00% NA 2.86%
NA NA 25918.37% NA 5.19%
17.19% 12.02% 116.98% -3.10% 0.13%
NA NA 233.33% NA NA
4.32% 10.63% 38.46% -7.24% 1.23%
9.53% 2.70% 137.96% 17.17% 67.92%
2.26% -2.57% 71.47% 8.09% 6.92%
26.55% 5.31% 370.98% 2.82% 93.23%
7.65% 4.13% 119.92% -6.78% 1.90%
8.78% 6.96% 104.04% 7.91% 34.86%
9.20% 2.40% 199.05% 10.56% 33.21%
23.53% 0.98% 237.06% 9.83% 87.52%
26.57% 8.20% 339.12% 1.70% 174.20%
10.29% 4.13% 167.27% 7.47% 178.34%
10.20% -1.93% 42.99% -1.63% 577.06%
6.36% 1.99% 74.46% 8.94% 19.67%
11.48% 5.31% 413.60% 0.20% 563.70%
19.12% 9.92% 233.72% 12.98% 63.91%
9.99% 1.99% 89.02% 5.56% 81.71%
9.54% -4.79% 75.53% 13.57% NA
8.01% 4.19% 228.25% 0.63% 212.22%
26.28% 2.49% 283.11% 1.19% 49.28%
4.25% 2.56% 151.07% 4.93% 28.35%
14.61% 4.52% 308.88% 4.95% 3.71%
25.11% 13.32% 264.58% 8.77% 81.59%
11.72% 2.52% 54.93% 12.95% 2.26%
27.02% 2.78% 182.09% -14.26% 140.10%
NA NA 3501.96% NA NA
12.38% 6.65% 71.37% 4.31% 24.40%
40.23% 10.37% 259.75% -8.65% 813.56%
20.71% 10.93% 189.92% -3.06% 119.65%
15.41% 4.11% 213.37% 2.45% 15.06%
NA NA NA NA 1.11%
12.75% 8.44% 159.81% -4.59% 85.89%
5.33% 2.01% 116.49% 6.91% 39.59%
4.39% 2.85% 202.77% 13.22% 2.59%
5.94% 3.64% 153.65% 5.10% 54.15%
4.25% 2.84% 144.75% 1.56% 87.90%
3.69% 1.85% 147.60% 1.05% 62.66%
51.46% 6.77% 154.15% 166.54% 38.44%
20.66% 1.27% 76.92% 7.07% 47.89%
12.14% -3.33% 99.31% 18.44% 5.16%
8.14% 6.13% 138.68% 17.37% 25.94%
8.47% 0.04% 194.14% 13.09% 54.99%
13.98% -2.44% 108.20% 15.65% 78.53%
9.38% 2.18% 54.43% 2.03% 27.82%
28.12% 5.14% 96.75% -9.14% 190.40%
NA NA NA NA NA
16.30% 11.76% 99.13% -0.76% 28.56%
8.53% 5.24% 117.31% 8.99% 30.46%
7.88% -2.40% 534.77% 5.70% NA
15.19% 0.02% 151.78% 12.25% NA
24.22% 9.81% 322.90% 0.23% 229.90%
14.18% 5.82% 104.04% 8.54% 1.27%
15.68% 3.08% 147.89% 8.69% 143.47%
Reinvestment Sales/Capital EV/Sales
-16.35% 1.07 1.40
2.54% 2.98 0.90
34.34% 2.44 0.80
-5.57% 1.96 1.01
-129.34% 1.69 0.82
-14.10% 3.37 0.46
0.00% NA NA
0.00% NA NA
0.00% NA NA
-3.87% 1.60 2.30
-50.32% 0.85 4.79
-5.17% 1.06 1.05
-4.63% 0.65 2.16
55.96% 0.87 1.87
2.95% 2.25 1.23
9.76% 1.73 1.62
-12.67% 1.93 1.13
17.72% 1.47 1.97
-3.32% 2.20 2.98
-7.44% 4.15 1.28
-46.03% 0.68 1.97
-13.94% 1.01 3.04
6.04% 1.77 2.57
-7.39% 2.43 2.37
73.62% 0.69 1.74
61.57% 0.66 2.02
70.57% 0.67 1.77
-8.03% 1.76 1.40
-29.00% 2.96 0.54
-4.57% 0.81 1.66
-261.25% 1.01 2.01
-4.87% 0.91 1.87
8.48% 0.15 8.41
-3.08% 2.10 1.11
-7.70% 2.44 0.49
2.18% 0.87 1.72
-49.19% 2.24 0.65
-16.71% 1.40 2.95
5.55% 5.50 0.41
NA 1.28 0.97
61.71% 0.70 2.08
1.27% 1.14 2.24
-46.66% 6.45 0.37
0.56% 2.56 0.83
-12.76% 0.92 2.22
0.00% NA NA
1.05% NA NA
6.83% 1.96 4.24
NA NA NA
 -35.06% 0.35 4.31
-25.71% 1.81 0.98
-156.35% 3.84 0.42
90.76% 0.50 2.11
1.40% 2.37 0.70
1.65% 2.46 1.28
-6.35% 2.22 0.98
21.38% 1.02 2.90
126.13% 0.60 2.46
13.96% 1.13 1.18
-52.11% 1.33 1.37
-22.96% 2.59 0.66
109.09% 1.03 1.50
41.40% 1.12 1.67
-10.44% 1.88 0.94
-20.51% 1.14 1.17
50.99% 3.11 0.60
59.09% 1.01 1.54
23.01% 3.11 0.66
85.61% 0.86 1.65
82.81% 0.38 6.41
-30.70% 1.42 1.52
24.17% 0.37 3.36
-30.39% NA NA
-13.81% 2.12 1.31
-60.89% 0.24 7.67
36.26% 0.71 2.54
41.98% 0.89 1.55
0.00% NA NA
22.18% 1.74 1.74
1.56% 3.86 0.67
-0.26% 2.66 0.68
18.02% 2.36 0.85
20.50% 3.62 0.57
24.72% 4.54 0.54
-101.94% 0.44 2.61
-21.85% 1.38 2.49
-55.00% 1.51 1.82
-0.13% 3.17 1.18
-28.83% 2.39 0.66
-33.79% 1.57 0.85
-22.23% 2.72 1.39
-4.02% 0.82 1.96
-509.80% NA NA
-2.34% 1.88 2.03
2.98% 2.89 1.37
273.82% 1.71 0.87
-0.01% 0.52 1.75
108.90% 0.31 3.91
9.11% 1.03 3.19
0.58% 1.15 1.53
 Base 1 2 3 4
Revenue Growth Rate 150.00% 100.00% 80.00% 60.00%
Revenues $117 $292 $584 $1,051 $1,681
Operating Margin -69.28% -42.86% -25.24% -13.49% -5.66%
EBIT -$81 -$125 -$147 -$142 -$95
Taxes $0 $0 $0 $0 $0
EBIT(1-t) -$81 -$125 -$147 -$142 -$95
+ Depreciation $41 $66 $93 $121 $145
- Capital Expenditures $198 $119 $181 $262 $336
- Chg WC $11 $34 $57 $92 $124
FCFF -$249 -$213 -$293 -$375 -$410
NOL $141 $266 $413 $555 $650
Terminal Value

Cost of Capital Calculations

Tax Rate 0.00% 0.00% 0.00% 0.00% 0.00%
Debt Ratio 3.81% 3.81% 3.81% 3.81% 3.81%
Beta 1.50 1.50 1.50 1.50 1.50
Cost of Equity 11.00% 11.00% 11.00% 11.00% 11.00%
Cost of Debt 8.00% 8.00% 8.00% 8.00% 8.00%
After-tax cost of debt 8.00% 8.00% 8.00% 8.00% 8.00%
Cost of Capital 10.89% 10.89% 10.89% 10.89% 10.89%

Computed Variables (These are measures of how efficiently your firm is investing over time)
Total Capital Invested $ 311.00 $ 399 $ 544 $ 778 $ 1,093
Reinvestment Rate NMF NMF NMF NMF NMF
Increase in Revenue/Increase in Capital 2.00 2.00 2.00 2.00
Return on Capital -40.22% -36.96% -26.03% -12.23%

Present Value Calculations

Cumulative WACC 1.10885794 1.22956593567 1.36341395 1.51183239
Present Value of FCFF $ (192) $ (238) $ (275) $ (271)
Present Value of Terminal Value

The Valuation
PV of FCFF during high growth phase = $ (1,300)
PV of Terminal Value = $ 2,840
Value of Operating Assets of the firm = $ 1,540
Value of Cash & Non-operating assets= $ 195.89
Value of Firm = $ 1,736
- Value of Outstanding Debt = $ 110
Value of Equity = $ 1,626
- Value of Equity Options = $ 197
Value of Equity in Common Stock = $ 1,430 Treasury Stock Approach
Value of Equity per share = $ 14.95 $ 15.95

Summary Output
Revenues $292 $584 $1,051 $1,681 $2,354
EBIT -$125 -$147 -$142 -$95 -$10
EBIT(1-t) -$125 -$147 -$142 -$95 -$10
- Reinvestment $88 $146 $233 $315 $336
FCFF -$213 -$293 -$375 -$410 -$347
 5 6 7 8 9 10 Terminal Year
40.00% 30.00% 20.00% 15.00% 10.00% 5.00% 4%
$2,354 $3,060 $3,672 $4,222 $4,645 $4,877 $5,047
-0.44% 3.04% 5.36% 6.91% 7.94% 8.63% 10.00%
-$10 $93 $197 $292 $369 $421 $505
$0 $0 $0 $0 $116 $168 $202
-$10 $93 $197 $292 $253 $252 $303
$166 $183 $192 $199 $206 $213 $220
$370 $397 $378 $366 $334 $283 $293
$132 $139 $120 $108 $83 $46 $34
-$347 -$260 -$109 $16 $42 $136 $197
$661 $568 $371 $79 $0 $0 $0
$7,158

0.00% 0.00% 0.00% 0.00% 31.40% 40.00% 40.00%

3.81% 10.05% 11.61% 14.20% 19.40% 35.00% 35.00%
1.50 1.38 1.26 1.14 1.02 0.90 0.90
11.00% 10.40% 9.80% 9.20% 8.60% 8.00% 8.00%
8.00% 7.40% 7.25% 7.00% 6.50% 5.00% 5.00%
8.00% 7.40% 7.25% 7.00% 4.46% 3.00% 3.00%
10.89% 10.10% 9.50% 8.89% 7.80% 6.25% 6.25%

$ 1,429 $ 1,782 $ 2,088 $ 2,364 $ 2,575 $ 2,691 $ 2,797

NMF #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 35.00%
2.00 2.00 2.00 2.00 2.00 2.00 1.61
-0.95% 6.51% 11.04% 13.96% 10.70% 9.80% 10.00%

1.676407353 1.84570162 2.02111837 2.20074525 2.372327647 2.520598125

$ (207) $ (141) $ (54) $ 7 $ 18 $ 54
$ 2,840

easury Stock Approach

ry Output
$3,060 $3,672 $4,222 $4,645 $4,877 $5,047
$93 $197 $292 $369 $421 $505
$93 $197 $292 $253 $252 $303
$353 $306 $275 $211 $116 $106
-$260 -$109 $16 $42 $136 $197