Input sheetDate of valuationSep-10Important: Before you run this
spreadsheet, go into preferences in Excel and check under
Calculation optionsCompany nameAmazonThere 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 yearLast yearCountry of incorporationUnited States of
AmericaIndustry (US)Retail StoreIndustry (Global)Retail
(Internet)Time period since last yearRevenues$ 85,246.00$
74,452.000.75Operating income or EBIT$ 98.00$ 745.00Don't adjust
operating income for leases or R&D, if you plan to use the
spreadsheet option to do so. (see below)Interest expense$ 175.00$
51.00Book value of equity$ 10,336.00$ 9,746.00Book value of debt$
5,089.00$ 5,181.00Do you have R&D expenses to capitalize?NoIf
you want to capitalize R&D, you have to input the numbers into
the R&D worksheet.Do you have operating lease commitments?YesIf
you have operating leases, please enter your lease commitments in
the lease worksheet below and I will convert to debtCash and cross
holdings$ 10,252.00$ 12,447.00Non-operating assets$ - 0$ -
0Minority interests$ - 0$ - 0Number of shares outstanding
=463.01Current stock price =$ 287.06Computed numbers: Here is what
your company's numbers look like, relative to industry.Effective
tax rate =31.80%If you are not working in US dollars, you should
add the inflation differential to the industry averages.Marginal
tax rate =31.80%CompanyIndustry (US data)Industry (Global data)The
value drivers below:Revenue growth in the most recent year
=19.78%8.73%9.44%Compounded annual revenue growth rate over next 5
years =15.00%Pre-tax operating margin in the most recent year
=0.58%5.53%4.77%Expected target operating marginMedian (US retail
& media)Sales to capital ratio in most recent year
=16.483.68063902466.75Target pre-tax operating margin (EBIT as % of
sales in year 10) =7.38%Return on invested capital in most recent
year=2.70%13.70%27.88%Sales to capital ratio (for computing
reinvestment) =3.68Standard deviation in stock prices =40.98%Market
numbersCost of capital =7.74%Riskfree rate2.20%Initial cost of
capital =8.62%Other inputsDo you have employee options
outstanding?NoNumber of options outstanding =122.80Average strike
price =$0.85Average maturity =3.79Standard deviation on stock price
=40.00%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 =YesMature companies generally see their risk levels
approach the averageIf yes, enter the cost of capital after year 10
=8%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 =YesMature companies
find it difficult to generate returns that exceed the cost of
capitalIf yes, enter the return on capital you expect after year
1010%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 =NoMany 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 =20%Tough to estimate but a
key input.What do you want to tie your proceeds in failure to?VB:
Book value of capital, V= Estimated fair value for the companyEnter
the distress proceeds as percentage of book or fair value50%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 =NoI 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 =NoCheck the
financial statements.If yes, enter the NOL that you are carrying
over into year 1$250.00An NOL will shield your income from taxes,
even after you start making money.
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:Enter the
operating income or EBIT from the most recent time period, even if
that number is negative. If you have operating leases, enter the
adjusted operating income (see the operating lease worksheet for
the amount you have to adjust operating income by).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.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.)Aswath Damodaran:Enter the cash balance from the most
recent balance sheet. This should include marketable
securities.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.Aswath Damodaran:Enter the most recent stock price (how
about today's?) in here.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 incomeIf your effective tax rate varies across years, you
can use an average.Aswath Damodaran:I don't have a crystal ball but
you should look at a. Revenue growth in your company in recent
yearsb. Your company's revenues, relative to the overall market
size and larger players in the sector. Suggestion: Check your
revenues in year 10 against the overall market and see what market
share are you giving your company. Check your company's revenues
against other companies in the sector.Note that this number can be
negative for a declining firm.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.)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
(divide cell B3 by the sum of cells B5 and B6). Look at the
industry averages as well in the worksheet.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).Aswath Damodaran:Enter the
current cost of capital for your firm. If you don't know what it
is, you can use the worksheet to compute it.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)Aswath Damodaran:Enter the weighted average
strike price of your options. (Should be in your 10K or annual
report.)Aswath Damodaran:The weighted average maturity of your
options should be reported in your financial statements.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: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.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.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.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).Aswath
DamodaranIf 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=1428022Aswath
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.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.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.Aswath Damodaran:If your company has been losing money
for a while, there will be accumulated losses from prior periods.
Check your financial statements.Aswath Damodaran:This is the NOL
from prior years carried forward into this year.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.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.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).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
operatesAswath 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.
Valuation outputBase year12345678910Terminal yearRevenue growth
rate15.00%15.00%15.00%15.00%15.00%12.44%9.88%7.32%4.76%2.20%2.20%Revenues$
85,246.00$ 98,032.90$ 112,737.83$ 129,648.51$ 149,095.79$
171,460.15$ 192,789.80$ 211,837.43$ 227,343.93$ 238,165.50$
243,405.14$ 248,760.06EBIT (Operating)
margin0.58%1.32%2.06%2.81%3.55%4.29%5.03%5.77%6.52%7.26%8.00%8.00%EBIT
(Operating income)$ 494.36$ 1,295.93$ 2,326.84$ 3,637.87$ 5,289.85$
7,355.57$ 9,701.12$ 12,231.44$ 14,813.70$ 17,286.03$ 19,472.41$
19,900.80$ 19,406.44Tax
rate31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%EBIT(1-t)$
337.15$ 883.82$ 1,586.90$ 2,481.03$ 3,607.68$ 5,016.50$ 6,616.17$
8,341.84$ 10,102.94$ 11,789.07$ 13,280.18$ 13,572.35- Reinvestment$
3,474.10$ 3,995.21$ 4,594.49$ 5,283.67$ 6,076.22$ 5,795.09$
5,175.09$ 4,212.99$ 2,940.13$ 1,423.57$ 2,985.92$ 45,956.48FCFF$
(2,590.28)$ (2,408.31)$ (2,113.47)$ (1,675.99)$ (1,059.72)$ 821.07$
3,166.76$ 5,889.95$ 8,848.94$ 11,856.62$ 10,586.43NOL$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0Cost of
capital8.62%8.62%8.62%8.62%8.62%8.49%8.37%8.25%8.12%8.00%8.00%Cumulated
discount
factor0.92070.84760.78040.71850.66150.60970.56260.51970.48070.4451PV(FCFF)$
(2,384.79)$ (2,041.36)$ (1,649.33)$ (1,204.17)$ (700.99)$ 500.61$
1,781.65$ 3,061.30$ 4,253.70$ 5,277.30Terminal cash flow$
10,586.43Terminal cost of capital8.00%Terminal value$
182,524.69PV(Terminal value)$ 81,240.57PV (CF over next 10 years)$
6,893.92Sum of PV$ 88,134.49Probability of failure =0.00%Proceeds
if firm fails =$44,067.25Value of operating assets =$ 88,134.49-
Debt$ 8,352.76- Minority interests$ - 0+ Cash$ 10,252.00+
Non-operating assets$ - 0Value of equity$ 90,033.74- Value of
options$0.00Value of equity in common stock$ 90,033.74Number of
shares463.01Estimated value /share$ 194.45Price$ 287.06Price as %
of value147.62%Implied variablesAfter year 10Sales to capital
ratio3.683.683.683.683.683.683.683.683.683.68Invested capital$
8,437$ 11,911$ 15,906$ 20,501$ 25,784$ 31,860$ 37,656$ 42,831$
47,044$ 49,984$
51,407ROIC4.00%7.42%9.98%12.10%13.99%15.75%17.57%19.48%21.48%23.59%25.83%10.00%
Check these revenues againsta. Overall market sizeb. Largest
companies in this marketCompare this return on capital in year 10
againsta. the industry average(column E of worksheet)b. the return
on capital after year 10If it is too high (low), you may want to
lower (raise) your sales to capital ratioThis 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.
Option valueValuing Options or WarrantsEnter the current stock
price =$ 287.06Enter the strike price on the option =$ 0.85Enter
the expiration of the option =3.79Enter the standard deviation in
stock prices =40.00%(volatility)Enter the annualized dividend yield
on stock =0.00%Enter the treasury bond rate =2.20%Enter the number
of warrants (options) outstanding =122.80Enter the number of shares
outstanding =463.01Do not input any numbers below this lineVALUING
WARRANTS WHEN THERE IS DILUTIONStock Price=287.06# Warrants
issued=122.8Strike Price=0.85# Shares outstanding=463Adjusted S
=286.8525968024T.Bond rate=2.20%Adjusted K
=0.85Variance=0.1600Expiration (in years) =3.79Annualized dividend
yield=0.00%Div. Adj. interest rate=2.20%d1 =7.9721750822N (d1) =1d2
=7.1934581889N (d2) =1Value per option =$ 286.07Value of all
options outstanding =$35,129.47
DiagnosticsVALUATION DIAGNOSTICSInvested capital at start of
valuation$ 8,436.76Invested capital at end of valuation$
51,407.32Change in invested capital over 10 years$ 42,970.57Change
in EBIT*(1t) (after-tax operating income) over 10 years$
18,978.05Marginal ROIC over 10 years44.17%ROIC at end of
valuation25.83%Average WACC over the 10 years (compounded)8.43%Your
calculated value as a percent of current price67.74%InputsIf
calculated value is negative or looks too lowIf calculated value
looks too highRevenue growth rate (input cell B3)Increase revenue
growth rateDecrease revenue growth rateLast period EBIT as % of
revenue (Input cell B14)Increase the target pre-tax operating
marginDecrease the target pre-tax operating marginSales to Capital
Ratio or reinvestment (Input cell B15)Decrease the sales/capital
ratioIncrease the sales/capital ratioReturn on capital in
perpetuity (B30 & B31)Increase relative to your cost of
capitalIf higher than your cost of capital, lower towards your cost
of capitalT
R& D converterR & D ConverterThis spreadsheet converts
R&D expenses from operating to capital expenses. It makes the
appropriate adjustments to operating income, netincome, the book
value of assets and the book value of equity.InputsOver how many
years do you want to amortize R&D expenses3! If in doubt, use
the lookup table belowEnter the current year's R&D expense =$
8,501.00The maximum allowed is ten yearsEnter R& D expenses for
past years: the number of years that you will need to enter will be
determined by the amortization periodDo not input numbers in the
first column (Year). It will get automatically updated based on the
input above.YearR& D Expenses-16565.00! Year -1 is the year
prior to the current year-24564.00! Year -2 is the two years prior
to the current year-32909.000000000OutputYearR&D
ExpenseUnamortized portionAmortization this
yearCurrent8501.001.008501.00-16565.000.674376.67$
2,188.33-24564.000.331521.33$ 1,521.33-32909.000.000.00$
969.6700.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ -
000.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ -
000.000.000.00$ - 0Value of Research Asset =$14,399.00$
4,679.33Amortization of asset for current year =$4,679.33Adjustment
to Operating Income =$3,821.67! A positive number indicates an
increase in operating income (add to reported EBIT)Tax Effect of
R&D Expensing$1,215
Aswath Damodaran:By expensing R&D rather than capitalizing
it, the firm gets a tax benefit. This is the dollar value of that
tax benefit.
Operating lease converterOperating Lease ConverterThe yellow
cells are input cells. Please enter them.InputsOperating lease
expense in current year =$ 759.00Operating Lease Commitments (From
footnote to financials)YearCommitment! Year 1 is next year,
.1$752.002$654.003$604.004$539.005$470.006 and
beyond$2,116.00OutputPre-tax Cost of Debt =10.95%! If you do not
have a cost of debt, use the synthetic rating estimatorNumber of
years embedded in yr 6 estimate =4! I use the average lease expense
over the first five yearsto estimate the number of years of
expenses in yr 6Converting Operating Leases into
debtYearCommitmentPresent Value1$ 752.00$ 677.782$ 654.00$ 531.283$
604.00$ 442.244$ 539.00$ 355.705$ 470.00$ 279.556 and beyond$
529.00$ 977.21! Commitment beyond year 6 converted into an annuity
for ten yearsDebt Value of leases =$ 3,263.76Restated
FinancialsDepreciation on Operating Lease Asset =$ 362.64! I use
straight line depreciationAdjustment to Operating Earnings
=$396.36! Add this amount to pre-tax operating incomeAdjustment to
Total Debt outstanding =$ 3,263.76! Add this amount to
debtAdjustment to Depreciation =$362.64
Cost of capital worksheetEstimation of Current Cost of
CapitalOperating Regions ERP
calculatorInputsCountryRevenuesERPWeightWeighted ERPEquityUnited
States of America445175.00%99.62%4.98%Number of Shares outstanding
=463.01Bolivia410.40%0.01%0.00%Current Market Price per share =$
287.06Cameroon13013.25%0.29%0.04%China235.90%0.05%0.00%Approach for
estimating betaMultibusiness(Global)Costa Rica58.30%0.01%0.00%If
direct input, enter levered beta (or regression
beta)1.20Vietnam713.25%0.02%0.00%Unlevered beta
=1.120.00%0.00%0.00%Riskfree Rate =2.20%0.00%0.00%0.00%What
approach do you want to use to input ERP?Operating
regions0.00%0.00%0.00%Direct input for ERP (if you choose "will
input"5.75%0.00%0.00%0.00%Equity Risk Premium used in cost of
equity =5.56%0.00%0.00%0.00%Total44686100.00%5.03%DebtOperating
Regions ERP calculatorBook Value of Straight Debt =$
5,089.00RegionRevenuesERPWeightWeighted ERPInterest Expense on Debt
=$ 175.00Africa10.04%0.00%0.0000%Average Maturity
=3Asia6.51%0.00%0.0000%Approach for estimating pre-tax cost of
debtSynthetic ratingAustralia & New Zealand5.00%0.00%0.0000%If
direct input, input the pre-tax cost of
debt3.500%Caribbean12.65%0.00%0.0000%If actual rating, input the
ratingBaa2/BBBCentral and South America8.62%0.00%0.0000%If
synethetic rating, input the type of company1Eastern Europe &
Russia7.96%0.00%0.0000%Pre-tax Cost of Debt =10.95%Middle
East6.14%0.00%0.0000%Tax Rate =32%North
America367225.00%61.55%3.0777%Western Europe6.29%0.00%0.0000%Book
Value of Convertible Debt =0Rest of the
World229376.45%38.45%2.4798%Interest Expense on Convertible
=0Total59659100.00%5.56%Maturity of Convertible Bond =0Market Value
of Convertible =0Multi Business (US Industry
Averages)BusinessRevenuesEV/SalesEstimated ValueUnlevered BetaDebt
value of operating leases =$ 3,263.76Retail Store$ 84.000.6542$
54.951.0462Internet$ 16.005.5678$ 89.091.0235Preferred Stock0.0000$
- 00.0000Number of Preferred Shares =00.0000$ - 00.0000Current
Market Price per Share=700.0000$ - 00.0000Annual Dividend per Share
=50.0000$ - 00.00000.0000$ - 00.0000Output0.0000$ -
00.0000Estimating Market Value of Straight Debt =$ 4,154.090.0000$
- 00.0000Estimated Value of Straight Debt in Convertible =$ -
00.0000$ - 00.0000Value of Debt in Operating leases =$
3,263.760.0000$ - 00.0000Estimated Value of Equity in Convertible
=$ - 00.0000$ - 00.0000Levered Beta for equity =1.17Company$
100.00$ 144.041.0321EquityDebtPreferred StockCapitalMulti Business
(Global Industry Averages)Market Value$ 132,911.65$ 7,417.84$ - 0$
140,329.49BusinessRevenuesEV/SalesEstimated ValueUnlevered
BetaWeight in Cost of Capital94.71%5.29%0.00%100.00%Retail
(Internet)$ 40,248.003.1883$ 128,321.801.2231Cost of
Component8.68%7.47%7.14%8.62%Entertainment$ 15,555.002.8095$
43,702.500.8742Business & Consumer Services$ 3,856.001.3880$
5,352.240.76670.0000$ - 00.00000.0000$ - 00.00000.0000$ -
00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ -
00.00000.0000$ - 00.00000.0000$ - 00.0000Company$ 59,659.00$
177,376.531.1234
Aswath Damodaran:Use a sector average beta, if need be.Aswath
Damodaran:If your company has risk exposure in emergiing markets,
incorporate that risk premiums here. See worksheet on country risk
premiums.Aswath Damodaran:Interest expense (gross) from most recent
financial statement.Aswath Damodaran:Generally found in footnotes
to financial statements.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:If
you pick operating regions or countries, please input the revenues
by country or region in the table to the right.Aswath Damodaran:1:
Large market cap (>$5 billion) and safe.2: Small market cap (
toRating isSpread
is-1000000.199999D2/D12.00%0.20.649999Caa/CCC10.50%0.650.799999Ca2/CC9.50%0.81.249999C2/C8.75%1.251.499999B3/B-7.25%1.51.749999B2/B6.50%1.751.999999B1/B+5.50%22.2499999Ba2/BB4.00%2.252.49999Ba1/BB+3.00%2.52.999999Baa2/BBB2.00%34.249999A3/A-1.30%4.255.499999A2/A1.00%5.56.499999A1/A+0.85%6.58.499999Aa2/AA0.70%8.50100000Aaa/AAA0.40%For
smaller and riskier firmsIf interest coverage ratio isgreater than
toRating isSpread is-1000000.499999D2/D12.00%Rating isSpread
is0.50.799999Caa/CCC10.50%A1/A+0.85%0.81.249999Ca2/CC9.50%A2/A1.00%1.251.499999C2/C8.75%A3/A-1.30%1.51.999999B3/B-7.25%Aa2/AA0.70%22.499999B2/B6.50%Aaa/AAA0.40%2.52.999999B1/B+5.50%B1/B+5.50%33.499999Ba2/BB4.00%B2/B6.50%3.53.9999999Ba1/BB+3.00%B3/B-7.25%44.499999Baa2/BBB2.00%Ba1/BB+3.00%4.55.999999A3/A-1.30%Ba2/BB4.00%67.499999A2/A1.00%Baa2/BBB2.00%7.59.499999A1/A+0.85%Caa/CCC8.75%9.512.499999Aa2/AA0.70%Ca2/CC9.50%12.5100000Aaa/AAA0.40%C2/C10.50%D2/D12.00%
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.Aswath Damodaran:Enter the interest expense
from the most recent income statement.Aswath Damodaran:I use a 10
year government bond rate.
Industry Averages(US)Industry NameNumber of firmsAnnual Average
Revenue growth - Last 5 yearsPre-tax Operating MarginAfter-tax
ROCAverage effective tax rateUnlevered BetaEquity (Levered)
BetaCost of equityStd deviation in stock pricesPre-tax cost of
debtMarket Debt/CapitalCost of
capitalSales/CapitalEV/SalesEV/EBITDAEV/EBITPrice/BookTrailing
PEAdvertising314.60%11.44%11.59%16.81%1.131.309.54%83.02%5.54%26.35%7.90%1.391.6710.9114.643.2449.37Aerospace/Defense6612.33%9.99%18.08%23.03%0.870.927.62%44.75%4.04%16.46%6.77%2.671.3110.5413.084.5824.32Air
Transport356.51%8.04%16.80%26.03%0.921.078.37%63.96%4.54%30.31%6.66%2.721.017.8912.565.0016.16Apparel467.48%10.70%14.62%18.85%1.171.209.06%67.00%5.04%8.57%8.54%1.922.0815.7019.424.6021.97Auto
Parts540.90%6.88%14.06%17.88%1.501.6611.35%51.50%4.54%18.11%9.78%2.530.939.5613.482.9023.26Automotive119.66%6.55%6.10%17.79%1.141.7011.52%49.51%4.04%46.62%7.28%1.320.988.7615.021.5912.65Bank3750.00%NANA17.91%0.620.887.45%43.18%4.04%45.74%5.15%NANA5.405.401.2118.14Bank
(Midwest)860.00%NANA21.88%0.860.957.80%32.12%4.04%24.39%6.49%NANA5.435.431.5918.57Beverage363.24%20.46%13.87%17.04%0.710.817.08%47.98%4.04%18.12%6.24%0.863.5914.3617.564.7928.96Biotechnology23223.92%22.27%16.57%2.63%1.271.249.22%83.67%5.54%11.16%8.56%0.938.1728.3736.706.4663.71Building
Materials424.86%0.55%-0.38%11.27%1.281.6911.50%76.77%5.04%30.25%8.94%1.071.6426.98298.532.42755.50Cable
TV188.74%19.14%11.44%20.75%0.710.967.83%37.32%4.04%35.25%5.92%0.862.628.0313.685.2425.95Chemical
(Basic)18-6.24%14.15%15.30%21.56%1.201.329.63%38.16%4.04%18.89%8.27%1.421.598.3711.252.7614.55Chemical
(Diversified)329.02%15.73%15.21%21.15%1.241.329.62%44.72%4.04%14.84%8.56%1.382.0710.1113.163.4722.16Chemical
(Specialty)7311.69%11.66%14.17%15.52%1.031.138.71%60.60%4.54%16.36%7.73%1.701.7110.9214.683.9130.18Coal195.79%10.20%7.65%9.47%0.891.4410.26%46.07%4.04%43.67%6.84%0.871.406.9713.731.4336.36Computer
Software18110.34%26.93%25.52%13.43%0.900.857.28%67.14%5.04%7.05%6.98%1.264.0912.9815.204.2865.03Computers/Peripherals68-0.77%15.88%29.07%7.63%1.291.289.45%77.26%5.04%7.89%8.95%2.451.678.6910.534.0651.52Diversified
Co.12311.32%13.18%8.83%20.27%0.881.158.79%57.21%4.54%37.79%6.50%0.862.1812.6816.552.9128.68Drug19923.48%25.65%16.78%5.89%0.991.048.25%84.78%5.54%11.62%7.67%0.824.0611.8415.823.8549.11E-Commerce6613.83%12.17%9.11%10.24%0.820.827.13%72.45%5.04%7.30%6.83%1.006.0130.9749.336.33150.17Educational
Services333.59%12.70%25.71%21.44%0.850.786.93%81.04%5.54%12.53%6.47%3.301.025.958.022.9324.10Electric
Util.
(Central)20-2.25%18.58%6.29%28.85%0.350.555.77%14.80%3.54%44.44%4.15%0.492.618.5114.041.6216.69Electric
Utility
(East)17-9.80%20.00%5.45%31.06%0.260.394.99%13.08%3.54%44.17%3.73%0.403.099.5615.461.5416.67Electric
Utility
(West)15-5.02%16.88%6.45%28.24%0.370.545.76%14.11%3.54%41.24%4.26%0.512.468.3214.601.5416.85Electrical
Equipment60-2.61%6.74%4.41%16.78%1.341.359.77%67.15%5.04%10.49%9.06%1.461.9118.4028.292.8923.36Electronics995.20%5.97%12.06%11.65%1.101.148.74%75.34%5.04%15.50%7.85%2.680.839.6113.952.4125.26Engineering
&
Const3013.10%5.19%13.83%19.88%1.151.108.56%56.11%4.54%10.59%7.95%3.760.619.1711.812.2622.41Entertainment679.04%21.64%11.79%14.87%1.181.339.71%61.01%4.54%16.95%8.52%0.793.3112.8815.273.5025.36Entertainment
Tech365.45%14.84%14.97%11.45%1.331.068.35%49.47%4.04%6.01%8.00%1.271.9610.0113.181.9220.10Environmental6116.24%14.23%7.15%10.82%0.340.455.31%77.98%5.04%28.42%4.66%0.762.3610.3516.552.5628.06Financial
Svcs.
(Div.)22519.02%48.76%11.19%16.74%0.951.198.98%54.62%4.54%35.09%6.79%0.325.4810.5811.242.3626.69Food
Processing1046.58%9.23%12.40%21.85%0.760.857.29%51.38%4.54%17.03%6.52%1.781.4012.0415.153.2731.35Foreign
Electronics10-9.48%4.56%6.75%31.10%1.151.118.57%29.83%4.04%24.76%7.05%2.230.545.3911.741.2134.22Funeral
Services66.73%14.72%8.41%27.80%0.811.018.11%25.91%4.04%28.09%6.51%0.852.2411.6915.252.8722.40Furn/Home
Furnishings282.97%6.84%10.10%19.54%1.331.3910.01%45.61%4.04%12.04%9.10%1.941.3414.0719.642.9522.35Healthcare
Information197.12%13.68%10.00%18.01%1.081.078.37%54.31%4.54%7.71%7.93%1.114.7421.1134.625.371058.24Heavy
Truck &
Equip213.93%10.87%15.04%20.13%1.461.7912.01%39.16%4.04%29.49%9.18%1.951.148.2310.513.5819.88Homebuilding2514.61%-17.62%-17.93%7.09%1.401.7911.98%41.47%4.04%35.22%8.61%0.941.84NANA2.2525.56Hotel/Gaming5315.36%15.20%10.23%14.48%1.141.4910.47%58.46%4.54%30.65%8.10%0.813.1013.8120.375.4537.99Household
Products267.33%16.93%14.72%23.88%0.860.947.75%40.37%4.04%13.70%7.02%1.192.6513.1315.634.3821.02Human
Resources257.68%3.15%11.69%25.63%1.501.4710.40%50.44%4.54%8.33%9.76%6.090.5213.1416.573.2026.37Industrial
Services1226.30%10.23%7.45%20.04%0.680.937.68%58.23%4.54%37.91%5.80%1.041.5611.2415.252.3537.63Information
Services2910.26%19.64%12.07%17.00%1.021.148.73%55.92%4.54%16.06%7.76%0.834.0514.4820.625.10214.35Insurance
(Life)310.00%NANA20.49%1.661.6211.14%29.38%4.04%26.98%8.79%NANA1.511.511.0314.72Insurance
(Prop/Cas.)664.96%NANA12.62%0.810.817.09%27.38%4.04%17.91%6.25%NANA299.00301.421.3617.61Internet14518.48%14.24%25.22%11.27%1.020.957.77%90.80%6.04%2.34%7.67%2.295.5727.7739.096.83149.75Investment
Co.1632.20%32.79%93.10%21.82%1.471.199.01%66.00%5.04%5.35%8.69%3.593.058.179.313.9222.44IT
Services553.33%13.66%28.42%18.61%0.940.907.56%51.20%4.54%5.29%7.31%2.792.1312.6215.605.2036.04Machinery823.47%12.51%11.76%24.47%1.091.198.99%47.09%4.04%16.62%7.90%1.321.9211.6015.313.2427.41Maritime51-7.04%10.84%3.33%5.99%0.711.4810.46%75.61%5.04%57.16%6.21%0.362.9912.2027.611.2033.50Med
Supp
Invasive741.14%23.03%16.28%15.02%0.920.977.87%55.16%4.54%12.93%7.20%0.923.1310.9913.613.3231.42Med
Supp
Non-Invasive12711.25%7.77%19.25%11.14%0.870.887.45%62.14%4.54%9.09%7.02%3.351.1111.7314.283.9242.85Medical
Services1068.35%10.56%13.73%18.76%0.730.917.60%72.79%5.04%31.09%6.18%2.000.927.188.722.5528.01Metal
Fabricating250.74%13.69%13.72%16.65%1.311.4110.07%57.52%4.54%15.91%8.90%1.441.719.9212.492.8819.53Metals
& Mining
(Div.)712.64%24.25%13.22%11.84%1.221.399.98%82.87%5.54%19.45%8.68%0.792.176.718.961.9394.26Natural
Gas
(Div.)30-4.25%18.59%5.47%19.04%1.041.299.51%43.11%4.04%26.18%7.66%0.404.098.2522.002.0051.23Natural
Gas
Utility26-7.97%11.95%6.31%25.74%0.400.565.83%29.29%4.04%37.22%4.56%0.742.1211.4317.752.3017.95Newspaper122.29%13.30%12.66%29.11%1.902.0113.08%42.63%4.04%16.94%11.27%1.312.1311.1715.983.4826.37Office
Equip/Supplies180.49%6.97%10.97%22.90%0.941.148.72%56.56%4.54%31.65%6.82%2.200.666.339.431.6720.21Oil/Gas
Distribution11-2.80%12.54%6.46%17.33%0.671.018.11%37.38%4.04%39.32%5.88%0.662.4913.8419.832.7126.58Oilfield
Svcs/Equip.8014.20%16.01%9.70%19.53%1.291.4710.37%53.47%4.54%20.69%8.79%0.802.168.8913.501.9931.86Packaging
&
Container262.70%9.62%11.37%23.58%0.871.098.48%44.69%4.04%28.58%6.75%1.621.299.0513.433.3521.90Paper/Forest
Products295.05%8.71%8.49%12.27%0.931.178.91%43.52%4.04%27.43%7.13%1.391.328.9715.102.4622.48Petroleum
(Integrated)2820.39%10.63%12.64%30.70%1.011.078.38%47.09%4.04%17.47%7.34%2.040.674.626.341.4417.57Petroleum
(Producing)1687.01%24.23%11.54%13.09%1.231.4810.42%72.91%5.04%21.52%8.83%0.751.945.048.001.6251.32Pharmacy
Services1613.34%4.76%8.27%23.64%0.901.008.05%55.91%4.54%15.78%7.21%2.730.7611.7015.882.4815.14Pipeline
MLPs62-1.75%8.65%7.70%5.50%0.410.565.85%22.33%3.54%29.46%4.75%0.922.1216.9624.453.1840.98Power92-2.13%7.75%3.17%8.99%0.731.5010.53%88.17%5.54%57.27%6.40%0.611.729.7822.231.11206.85Precious
Metals7414.61%31.98%8.98%10.50%0.730.837.19%66.24%5.04%25.52%6.13%0.392.034.556.340.7718.03Precision
Instrument76-3.49%16.03%13.41%13.41%1.081.128.65%57.51%4.54%13.23%7.86%1.002.6612.1316.622.9632.15Public/Private
Equity2014.68%33.10%13.90%20.12%1.581.6711.40%33.66%4.04%21.60%9.46%0.483.218.959.701.6223.33Publishing21-3.12%8.10%8.55%23.36%0.921.138.70%54.21%4.54%26.84%7.09%1.531.4410.6217.803.5218.78R.E.I.T.131-5.51%80.18%12.59%0.50%0.981.359.77%29.77%4.04%30.52%7.53%0.177.137.718.891.2619.03Railroad1312.09%29.50%12.36%30.96%1.241.4010.03%32.21%4.04%17.33%8.71%0.643.9810.4313.483.6021.75Recreation5310.80%12.22%9.17%20.89%1.151.379.87%46.18%4.04%23.96%8.08%0.952.0311.3016.582.5326.53Reinsurance120.00%NANA6.53%0.900.817.08%20.86%3.54%13.79%6.39%NANA37.1037.100.9210.51Restaurant671.40%16.31%19.44%22.49%0.941.008.04%53.50%4.54%11.67%7.42%1.722.7112.9616.617.2935.82Retail
(Hardlines)6910.42%8.70%14.89%23.83%1.601.6811.44%52.44%4.54%11.18%10.46%2.551.8715.8121.506.8024.22Retail
(Softlines)417.33%10.85%35.44%26.53%1.331.279.41%56.84%4.54%4.77%9.09%5.211.279.1211.695.7223.20Retail
Automotive1911.71%6.83%9.54%32.89%1.041.279.40%36.44%4.04%28.17%7.43%2.171.0812.7315.834.4720.02Retail
Building
Supply108.37%9.34%16.18%24.71%1.101.178.90%28.59%4.04%9.81%8.27%2.711.5112.9516.195.6431.29Retail
Store368.73%5.53%13.70%23.46%1.051.188.95%40.98%4.04%18.54%7.74%3.680.658.6511.833.2423.95Retail/Wholesale
Food3210.91%3.78%11.65%29.85%0.680.786.95%30.14%4.04%23.34%5.90%4.530.549.5114.313.7829.78Securities
Brokerage30-4.90%32.05%5.43%24.32%0.801.188.95%43.92%4.04%63.94%4.78%0.274.3512.0213.581.3528.12Semiconductor136-4.41%18.28%18.03%11.02%1.441.389.93%49.52%4.04%9.85%9.19%1.202.789.3515.193.1241.18Semiconductor
Equip102.12%10.34%9.54%20.20%1.881.7311.71%36.83%4.04%11.65%10.63%1.192.0711.5519.972.2841.76Shoe125.03%11.18%26.04%23.43%1.391.329.62%49.98%4.04%3.79%9.34%3.142.0615.7518.405.1121.06Steel321.11%2.99%2.14%26.96%1.221.6611.36%39.65%4.04%38.89%7.88%1.150.8410.6227.920.9424.37Telecom.
Equipment911.39%-0.15%-6.38%17.41%1.271.058.27%61.81%4.54%11.02%7.66%2.051.5942.19NA2.4033.44Telecom.
Services616.10%19.86%12.19%17.82%0.901.058.30%62.49%4.54%25.17%6.90%0.922.005.6810.052.25108.85Telecom.
Utility240.01%15.94%9.15%19.76%0.470.776.87%41.97%4.04%47.08%4.77%0.791.865.4211.682.3820.70Thrift1700.00%NANA16.03%0.790.696.51%34.84%4.04%8.01%6.18%NANA5.525.521.3255.55Tobacco1120.51%23.01%33.57%33.51%0.810.887.45%30.12%4.04%16.33%6.63%2.132.419.7110.4814.4516.95Toiletries/Cosmetics154.78%10.51%17.09%29.96%0.971.038.18%38.40%4.04%15.71%7.27%2.571.7312.8116.487.1329.82Trucking311.26%7.85%12.48%27.33%1.191.4010.05%42.67%4.04%23.56%8.26%2.361.067.7213.474.0221.22Water
Utility94.44%27.63%6.15%34.28%0.310.455.27%14.75%3.54%40.25%4.01%0.334.3410.6515.691.9721.52Wireless
Networking5311.83%7.57%4.09%11.06%0.931.188.96%62.14%4.54%28.78%7.17%0.703.2816.1143.413.9574.73
Global industry averagesIndustry NameNumber of firmsUnlevered
beta corrected for cashMarket D/E RatioMarket Debt to
CapitalEffective tax rateDividend PayoutNet MarginPre-tax Operating
MarginROEROICSales/CapitalEV/SalesRevenue Growth rate: Last 5
yearsExpected Earnings growth: Next 5
yearsAdvertising2430.8929.21%22.60%17.09%45.34%4.06%9.24%9.99%29.68%3.871.605.04%16.29%Aerospace/Defense2070.9120.64%17.11%13.25%35.52%5.55%9.50%17.77%38.24%4.641.404.86%13.36%Air
Transport1570.60112.37%52.91%15.59%38.95%2.33%5.93%7.99%6.49%1.301.117.67%19.39%Apparel11700.8220.20%16.80%14.75%39.23%6.63%14.05%12.94%18.76%1.571.786.38%20.51%Auto
&
Truck1290.8579.90%44.41%13.90%27.00%4.52%5.86%13.13%7.83%1.550.926.71%22.72%Auto
Parts6091.1128.99%22.47%18.98%18.30%4.23%6.73%12.75%14.35%2.630.786.04%18.26%Bank5800.40292.47%74.52%18.14%55.19%27.02%1.29%11.61%0.11%0.109.848.98%12.38%Banks
(Regional)9470.50108.37%52.01%19.85%22.18%22.31%0.52%8.16%0.10%0.244.126.44%8.34%Beverage1070.8922.46%18.34%10.40%48.83%10.13%14.54%22.39%22.04%1.692.426.04%12.59%Beverage
(Alcoholic)2090.7123.02%18.71%18.10%31.09%17.36%20.22%23.05%15.32%0.933.556.88%10.94%Biotechnology7071.038.69%8.00%2.91%48.09%6.81%15.51%6.60%12.88%0.869.5811.03%32.55%Broadcasting1341.0834.41%25.60%17.82%33.53%14.14%18.16%21.25%17.39%1.172.784.12%11.19%Brokerage
& Investment
Banking5210.35319.89%76.18%11.69%26.21%9.22%1.79%7.73%0.28%0.185.984.59%17.90%Building
Materials4140.8136.58%26.79%18.24%43.43%3.00%7.11%6.42%10.13%1.741.155.37%17.79%Business
& Consumer
Services7140.7724.95%19.97%17.75%49.04%3.99%8.69%12.35%21.52%3.011.397.52%16.51%Cable
TV630.7250.82%33.70%15.62%29.69%7.69%18.88%21.29%19.08%1.203.1710.40%11.06%Chemical
(Basic)7350.9214.60%12.74%15.40%54.60%4.17%8.94%8.80%11.00%1.452.686.09%22.47%Chemical
(Diversified)841.0238.57%27.83%22.63%47.41%4.76%7.53%12.91%9.92%1.701.162.78%22.26%Chemical
(Specialty)6810.8822.78%18.55%17.61%38.20%7.99%11.62%14.62%15.00%1.571.628.57%16.90%Coal
& Related
Energy3220.9057.62%36.56%6.27%NA-0.97%6.13%-2.01%8.98%1.560.9915.68%-0.79%Computer
Services9390.8718.06%15.30%17.30%26.59%5.02%7.98%19.46%27.79%4.211.036.29%13.73%Computer
Software10591.028.12%7.51%11.78%28.01%16.92%23.07%18.21%38.49%1.894.057.96%21.44%Computers/Peripherals3161.1113.70%12.05%11.98%30.46%7.48%10.59%20.02%29.25%3.141.20-0.84%16.87%Construction4770.6852.37%34.37%14.84%53.84%5.41%11.54%7.79%9.78%0.991.726.24%21.19%Diversified3410.5971.91%41.83%14.26%34.41%5.98%9.18%11.78%7.86%1.001.577.97%15.32%Educational
Services1610.7927.72%21.70%14.13%51.20%2.61%9.19%4.28%12.71%1.611.608.79%19.76%Electrical
Equipment8630.9825.40%20.26%13.53%61.98%3.19%7.14%6.89%12.91%2.091.294.67%21.87%Electronics11671.0725.77%20.49%13.29%30.48%3.54%5.67%7.43%9.83%2.000.972.29%19.03%Electronics
(Consumer &
Office)1851.0442.70%29.92%13.96%48.63%1.77%3.78%4.92%8.06%2.480.592.59%21.94%Engineering11670.8685.93%46.22%16.25%74.17%1.92%4.84%7.57%9.89%2.440.626.18%18.17%Entertainment3520.8727.07%21.30%9.04%20.35%11.53%17.28%15.37%23.13%1.472.812.02%25.22%Environmental
& Waste
Services3120.8637.33%27.18%11.45%61.28%3.46%9.72%7.40%15.96%1.861.748.64%14.17%Farming/Agriculture3410.6645.02%31.04%13.19%48.66%2.32%4.13%5.95%6.55%1.820.788.82%19.48%Financial
Svcs.5480.21512.70%83.68%17.33%33.81%11.77%7.92%6.26%0.40%0.0613.999.27%17.22%Financial
Svcs. (Non-bank &
Insurance)1330.28297.89%74.87%12.60%15.41%16.67%5.14%7.99%0.64%0.147.5519.67%14.34%Food
Processing12010.6626.33%20.84%16.40%69.45%4.88%8.36%12.12%14.58%2.091.397.16%18.55%Food
Wholesalers1150.5979.91%44.42%17.20%44.01%1.34%2.95%12.77%14.29%5.840.372.07%14.61%Furn/Home
Furnishings3190.8723.46%19.00%16.03%33.16%4.27%7.08%13.00%17.16%2.880.913.04%25.90%Healthcare
Equipment4480.8116.06%13.83%8.83%36.54%9.12%18.70%11.74%25.53%1.502.867.64%17.56%Healthcare
Facilities1700.4975.84%43.13%16.65%71.59%3.53%10.59%15.02%11.50%1.301.7712.96%24.78%Healthcare
Products1590.8115.03%13.06%12.66%30.87%7.85%12.86%11.37%16.25%1.453.0216.82%17.06%Healthcare
Services3220.7030.65%23.46%17.26%22.43%2.38%4.99%11.96%30.18%7.310.5812.41%15.91%Heathcare
Information and
Technology2781.0215.72%13.58%7.88%30.60%6.35%12.33%8.46%17.89%1.573.258.13%18.02%Heavy
Construction3350.9558.48%36.90%17.11%53.79%3.13%6.60%8.67%8.46%1.551.163.60%15.03%Homebuilding1641.0455.58%35.72%16.65%16.67%5.63%5.52%10.57%5.48%1.191.223.48%7.33%Hotel/Gaming6480.7434.47%25.63%12.36%58.09%5.82%12.65%8.37%10.93%0.992.609.11%22.06%Household
Products4580.7614.12%12.37%14.13%75.58%9.09%14.84%18.15%27.19%2.132.478.81%17.01%Information
Services1770.7911.07%9.97%17.57%25.60%15.11%24.03%22.69%46.09%2.334.186.21%15.05%Insurance
(General)2350.6641.00%29.08%13.95%45.22%3.83%8.75%7.18%12.88%1.710.819.69%13.58%Insurance
(Life)1211.0551.73%34.09%18.80%34.92%4.69%8.72%9.37%12.09%1.710.9512.08%13.40%Insurance
(Prop/Cas.)2190.6332.80%24.70%15.06%24.53%7.02%11.08%12.24%13.02%1.381.007.94%15.06%Internet
software and
services7061.103.96%3.81%8.65%6.85%14.93%19.41%13.84%23.77%1.346.769.58%25.78%Investment
Co.4330.5885.62%46.13%6.96%34.66%18.51%13.91%10.15%4.46%0.344.97-2.32%11.70%Machinery12701.0121.45%17.66%17.45%36.51%5.80%9.05%10.97%13.46%1.801.502.08%18.51%Metals
&
Mining16911.0338.74%27.92%3.58%316.32%1.41%13.41%1.65%11.73%0.911.889.15%11.14%Office
Equipment &
Services1610.6238.62%27.86%17.66%45.05%3.39%8.05%9.81%14.30%2.161.060.82%13.47%Oil/Gas
(Integrated)531.0430.51%23.38%24.53%30.85%7.34%10.15%15.23%12.66%1.650.806.66%35.36%Oil/Gas
(Production and
Exploration)11720.7487.13%46.56%6.93%45.72%10.79%-5.04%8.23%-1.47%0.314.5012.46%19.72%Oil/Gas
Distribution1990.7356.54%36.12%9.63%108.55%4.24%8.21%11.22%8.65%1.171.9611.09%15.43%Oilfield
Svcs/Equip.5930.9237.39%27.21%13.98%33.27%2.37%4.48%11.41%13.66%3.550.589.00%20.49%Packaging
&
Container3980.6446.63%31.80%17.72%44.40%3.62%8.01%9.57%11.57%1.761.156.04%15.75%Paper/Forest
Products3030.6278.76%44.06%12.53%114.34%1.39%5.75%2.59%5.19%1.031.182.19%17.78%Pharma
&
Drugs8200.8312.89%11.41%13.54%50.49%14.89%21.35%16.90%21.64%1.173.5912.16%21.07%Power7430.49101.76%50.44%14.72%64.23%5.28%11.62%7.65%6.65%0.671.8612.80%9.97%Precious
Metals11811.1531.00%23.66%2.16%NA-20.01%9.83%-11.36%5.17%0.542.2129.33%-1.21%Publshing
&
Newspapers3900.7733.16%24.90%15.19%187.87%1.66%8.19%2.87%11.77%1.701.570.47%8.91%R.E.I.T.490.13551.46%84.65%2.32%84.29%72.66%1.25%12.51%0.03%0.0332.5520.47%5.47%Railroad540.5847.73%32.31%25.54%26.19%11.61%19.80%12.90%7.92%0.542.764.64%11.23%Real
Estate4220.7077.67%43.72%13.99%26.13%15.48%13.73%8.56%3.68%0.313.593.78%17.10%Real
Estate
(Development)6470.31352.08%77.88%17.32%34.06%19.06%22.85%14.43%9.44%0.506.7713.65%25.13%Real
Estate (Operations &
Services)4810.5578.73%44.05%12.90%25.16%25.07%29.44%9.81%5.31%0.216.1911.14%12.35%Recreation2860.8627.88%21.80%17.48%40.63%6.72%11.23%11.56%11.71%1.261.842.77%18.68%Reinsurance370.8934.27%25.52%10.81%32.45%7.16%11.06%10.68%13.03%1.320.8313.21%8.41%Restaurant3040.6430.25%23.23%21.05%50.33%5.48%12.50%17.79%16.11%1.632.055.91%15.64%Retail
(Automotive)1480.6458.65%36.97%18.79%22.32%2.43%4.75%16.48%11.44%2.970.759.04%19.76%Retail
(Building
Supply)500.7429.98%23.07%26.05%36.81%4.51%7.93%15.90%11.86%2.021.254.20%22.18%Retail
(Distributors)8480.5789.94%47.35%19.04%34.70%2.57%3.84%10.06%6.19%1.990.675.91%14.68%Retail
(General)2290.7345.48%31.26%23.63%35.52%2.86%5.12%13.49%10.77%2.760.758.91%13.60%Retail
(Grocery and
Food)1740.5355.81%35.82%26.17%46.19%2.17%4.38%14.30%11.05%3.420.616.59%14.50%Retail
(Internet)1181.226.14%5.78%13.55%8.66%3.13%4.77%14.86%27.88%6.753.199.44%29.50%Retail
(Special
Lines)5430.8029.07%22.52%20.75%34.63%3.98%8.29%14.99%15.98%2.431.174.59%14.41%Rubber&
Tires930.9340.19%28.67%20.06%20.20%5.72%10.00%17.79%14.48%1.810.946.75%16.88%Semiconductor5591.3413.62%11.99%9.04%29.08%10.24%13.92%14.76%18.11%1.431.812.98%20.75%Semiconductor
Equip2631.2318.75%15.79%9.61%170.91%1.34%4.92%1.32%4.57%1.032.41-0.13%20.03%Shipbuilding
&
Marine3560.6494.62%48.62%12.58%110.06%2.22%7.90%3.14%4.98%0.721.653.58%16.52%Shoe920.9011.17%10.05%20.41%30.99%7.50%10.69%18.98%20.37%2.391.718.24%13.36%Steel7140.7888.91%47.06%12.97%NA-0.21%3.56%-0.48%4.27%1.380.801.63%20.35%Telecom
(Wireless)1160.7540.71%28.93%15.35%41.95%13.08%16.56%18.12%13.56%0.972.298.86%13.91%Telecom.
Equipment5251.1315.03%13.07%9.56%75.82%3.76%9.74%5.87%17.10%1.941.754.09%16.31%Telecom.
Services3170.5766.59%39.97%12.92%100.99%5.24%15.09%8.85%13.89%1.061.847.03%9.14%Thrift2810.023737.43%97.39%18.73%1.49%150.80%1.37%-92.45%0.02%0.0260.829.30%10.42%Tobacco530.6117.47%14.87%20.52%63.20%17.97%28.82%53.36%55.99%2.443.529.63%10.78%Tranportation2280.7147.23%32.08%20.49%46.54%5.12%8.62%15.64%11.79%1.721.3611.70%11.57%Trucking1910.5672.28%41.96%23.30%27.32%2.89%8.12%9.12%9.39%1.511.081.87%14.48%Utility
(General)550.4395.19%48.77%25.18%102.76%3.38%10.82%7.01%8.66%1.071.274.05%4.99%Utility
(Water)970.6152.46%34.41%15.09%46.04%20.10%28.18%14.98%8.97%0.374.439.67%16.97%Grand
Total409430.6498.96%49.74%13.40%37.49%5.74%8.63%10.49%5.11%0.771.768.94%16.07%
Country tax ratesCountryMarginal tax rateAbu
Dhabi19.22%Albania10.00%Andorra21.21%Angola35.00%Anguilla28.10%Argentina35.00%Armenia20.00%Aruba28.00%Australia30.00%Austria25.00%Azerbaijan16.38%Bahamas0.00%Bahrain0.00%Bangladesh27.50%Barbados25.00%Belarus18.00%Belgium33.99%Belize26.88%Benin28.10%Bermuda0.00%Bolivia25.00%Bosnia
and Herzegovina10.00%Botswana22.00%Brazil34.00%British Virgin
Islands14.92%Bulgaria10.00%Burkina
Faso28.10%Cambodia20.00%Cameroon28.10%Canada26.00%Cape
Verde28.10%Cayman Islands0.00%Channel
Islands0.00%Chile20.00%China25.00%Colombia25.00%Cook
Islands0.00%Costa
Rica30.00%Croatia20.00%Cuba14.92%Curacao27.50%Cyprus12.50%Czech
Republic19.00%Democratic Republic of
Congo28.10%Denmark25.00%Dominican
Republic29.00%Ecuador22.00%Egypt25.00%El
Salvador30.00%Estonia21.00%Falkland
Islands26.88%Fiji20.00%Finland24.50%France33.33%Gabon28.10%Georgia15.00%Germany29.55%Ghana21.21%Greece26.00%Greenland21.21%Guatemala31.00%Honduras35.00%Hong
Kong16.50%Hungary19.00%Iceland20.00%India33.99%Indonesia25.00%Ireland12.50%Isle
of Man0.00%Israel25.00%Italy31.40%Ivory
Coast28.10%Jamaica25.00%Japan38.01%Jordan14.00%Kazakhstan20.00%Kenya30.00%Kuwait15.00%Kyrgyzstan16.38%Laos23.63%Latvia15.00%Lebanon19.22%Liechtenstein12.50%Lithuania15.00%Luxembourg29.22%Macau12.00%Macedonia10.00%Malawi30.00%Malaysia25.00%Malta35.00%Marshall
Islands0.00%Mauritius15.00%Mexico30.00%Moldova16.38%Monaco21.21%Mongolia23.63%Montenegro9.00%Montserrat14.92%Morocco28.10%Mozambique32.00%Namibia33.00%Netherlands25.00%Netherlands
Antilles14.92%New
Zealand28.00%Nicaragua26.88%Niger28.10%Nigeria30.00%Norway28.00%Oman12.00%Pakistan35.00%Palestinian
Authority19.22%Panama25.00%Papua New
Guinea30.00%Paraguay10.00%Peru30.00%Philippines30.00%Poland19.00%Portugal25.00%Qatar10.00%Ras
Al Kaminah19.22%Republic of the
Congo28.10%Reunion28.10%Romania16.00%Russia20.00%Rwanda28.10%Saudi
Arabia20.00%Senegal28.10%Serbia15.00%Sierra
Leone28.10%Singapore17.00%Slovakia23.00%Slovenia17.00%South
Africa28.00%South Korea24.20%Spain30.00%Sri Lanka28.00%St.
Maarten14.92%St. Vincent & the
Grenadines14.92%Sudan35.00%Suriname26.88%Sweden22.00%Switzerland18.01%Taiwan17.00%Tanzania30.00%Thailand20.00%Togo28.10%Trinidad
& Tobago25.00%Tunisia30.00%Turkey20.00%Turks & Caicos
Islands28.10%Uganda30.00%Ukraine19.00%United Arab
Emirates55.00%United Kingdom23.00%United
States40.00%Uruguay25.00%Venezuela34.00%Vietnam25.00%Zambia35.00%Zimbabwe25.75%RegionTax
RateAfrica28.10%Asia23.63%Australia & New
Zealand26.00%Caribbean14.92%Central and South America26.88%Eastern
Europe & Russia16.38%Middle East19.22%North
America33.00%Western Europe21.21%Global22.04%
Country equity risk premiumsCountryLong-Term RatingAdj. Default
SpreadTotal Risk PremiumCountry Risk PremiumRegionAbu
DhabiAa20.50%5.75%0.75%Middle EastAlbaniaB14.50%11.75%6.75%Eastern
Europe & RussiaAndorraA31.20%6.80%1.80%Western
EuropeAngolaBa33.60%10.40%5.40%AfricaArgentinaB36.50%14.75%9.75%Central
and South AmericaArmeniaBa23.00%9.50%4.50%Eastern Europe &
RussiaArubaBaa11.60%7.40%2.40%CaribbeanAustraliaAaa0.00%5.00%0.00%Australia
& New ZealandAustriaAaa0.00%5.00%0.00%Western
EuropeAzerbaijanBaa32.20%8.30%3.30%Eastern Europe &
RussiaBahamasBaa11.60%7.40%2.40%CaribbeanBahrainBaa21.90%7.85%2.85%Middle
EastBangladeshBa33.60%10.40%5.40%AsiaBarbadosBa12.50%8.75%3.75%CaribbeanBelarusB36.50%14.75%9.75%Eastern
Europe & RussiaBelgiumAa30.60%5.90%0.90%Western
EuropeBelizeCaa29.00%18.50%13.50%Central and South
AmericaBeninB25.50%13.25%8.25%AfricaBermudaAa30.60%5.90%0.90%CaribbeanBoliviaBa33.60%10.40%5.40%Central
and South AmericaBosnia and HerzegovinaB36.50%14.75%9.75%Eastern
Europe &
RussiaBotswanaA20.85%6.28%1.28%AfricaBrazilBaa21.90%7.85%2.85%Central
and South AmericaBulgariaBaa21.90%7.85%2.85%Eastern Europe &
RussiaBurkina
FasoB25.50%13.25%8.25%AfricaCambodiaB25.50%13.25%8.25%AsiaCameroonB25.50%13.25%8.25%AfricaCanadaAaa0.00%5.00%0.00%North
AmericaCape VerdeB25.50%13.25%8.25%AfricaCayman
IslandsAa30.60%5.90%0.90%CaribbeanChileAa30.60%5.90%0.90%Central
and South
AmericaChinaAa30.60%5.90%0.90%AsiaColombiaBaa32.20%8.30%3.30%Central
and South AmericaCook IslandsB14.50%11.75%6.75%Australia & New
ZealandCosta RicaBaa32.20%8.30%3.30%Central and South
AmericaCroatiaBa12.50%8.75%3.75%Eastern Europe &
RussiaCubaCaa17.50%16.25%11.25%CaribbeanCuracaoB14.50%11.75%6.75%CaribbeanCyprusCaa310.00%20.00%15.00%Western
EuropeCzech RepublicA10.70%6.05%1.05%Eastern Europe &
RussiaDemocratic Republic of
CongoB36.50%14.75%9.75%AfricaDenmarkAaa0.00%5.00%0.00%Western
EuropeDominican
RepublicB14.50%11.75%6.75%CaribbeanEcuadorCaa17.50%16.25%11.25%Central
and South AmericaEgyptCaa17.50%16.25%11.25%AfricaEl
SalvadorBa33.60%10.40%5.40%Central and South
AmericaEstoniaA10.70%6.05%1.05%Eastern Europe &
RussiaFijiB14.50%11.75%6.75%AsiaFinlandAaa0.00%5.00%0.00%Western
EuropeFranceAa10.40%5.60%0.60%Western
EuropeGabonBa33.60%10.40%5.40%AfricaGeorgiaBa33.60%10.40%5.40%Eastern
Europe & RussiaGermanyAaa0.00%5.00%0.00%Western
EuropeGhanaB14.50%11.75%6.75%AfricaGreeceCaa310.00%20.00%15.00%Western
EuropeGuatemalaBa12.50%8.75%3.75%Central and South
AmericaHondurasB25.50%13.25%8.25%Central and South AmericaHong
KongAa10.40%5.60%0.60%AsiaHungaryBa12.50%8.75%3.75%Eastern Europe
& RussiaIcelandBaa32.20%8.30%3.30%Western
EuropeIndiaBaa32.20%8.30%3.30%AsiaIndonesiaBaa32.20%8.30%3.30%AsiaIrelandBa12.50%8.75%3.75%Western
EuropeIsle of ManAa10.40%5.60%0.60%Western
EuropeIsraelA10.70%6.05%1.05%Middle
EastItalyBaa21.90%7.85%2.85%Western
EuropeJamaicaCaa310.00%20.00%15.00%CaribbeanJapanAa30.60%5.90%0.90%AsiaJordanB14.50%11.75%6.75%Middle
EastKazakhstanBaa21.90%7.85%2.85%Eastern Europe &
RussiaKenyaB14.50%11.75%6.75%AfricaKoreaAa30.60%5.90%0.90%AsiaKuwaitAa20.50%5.75%0.75%Middle
EastLatviaBaa21.90%7.85%2.85%Eastern Europe &
RussiaLebanonB14.50%11.75%6.75%Middle
EastLiechtensteinAaa0.00%5.00%0.00%Western
EuropeLithuaniaBaa11.60%7.40%2.40%Eastern Europe &
RussiaLuxembourgAaa0.00%5.00%0.00%Western
EuropeMacaoAa30.60%5.90%0.90%AsiaMacedoniaBa33.60%10.40%5.40%Eastern
Europe &
RussiaMalaysiaA31.20%6.80%1.80%AsiaMaltaA31.20%6.80%1.80%Western
EuropeMauritiusBaa11.60%7.40%2.40%AsiaMexicoBaa11.60%7.40%2.40%Central
and South AmericaMoldovaB36.50%14.75%9.75%Eastern Europe &
RussiaMongoliaB14.50%11.75%6.75%AsiaMontenegroBa33.60%10.40%5.40%Eastern
Europe &
RussiaMontserratBaa32.20%8.30%3.30%CaribbeanMoroccoBa12.50%8.75%3.75%AfricaMozambiqueB14.50%11.75%6.75%AfricaNamibiaBaa32.20%8.30%3.30%AfricaNetherlandsAaa0.00%5.00%0.00%Western
EuropeNew ZealandAaa0.00%5.00%0.00%Australia & New
ZealandNicaraguaB36.50%14.75%9.75%Central and South
AmericaNigeriaBa33.60%10.40%5.40%AfricaNorwayAaa0.00%5.00%0.00%Western
EuropeOmanA10.70%6.05%1.05%Middle
EastPakistanCaa17.50%16.25%11.25%AsiaPanamaBaa21.90%7.85%2.85%Central
and South AmericaPapua New
GuineaB14.50%11.75%6.75%AsiaParaguayBa33.60%10.40%5.40%Central and
South AmericaPeruBaa21.90%7.85%2.85%Central and South
AmericaPhilippinesBaa32.20%8.30%3.30%AsiaPolandA20.85%6.28%1.28%Eastern
Europe & RussiaPortugalBa33.60%10.40%5.40%Western
EuropeQatarAa20.50%5.75%0.75%Middle EastRas Al
KaminahA20.85%6.28%1.28%Middle EastRepublic of the
CongoBa33.60%10.40%5.40%AfricaRomaniaBaa32.20%8.30%3.30%Eastern
Europe & RussiaRussiaBaa11.60%7.40%2.40%Eastern Europe &
RussiaRwandaB25.50%13.25%8.25%AfricaSaudi
ArabiaAa30.60%5.90%0.90%Middle
EastSenegalB14.50%11.75%6.75%AfricaSerbiaB14.50%11.75%6.75%Eastern
Europe &
RussiaSingaporeAaa0.00%5.00%0.00%AsiaSlovakiaA20.85%6.28%1.28%Eastern
Europe & RussiaSloveniaBa12.50%8.75%3.75%Eastern Europe &
RussiaSouth
AfricaBaa11.60%7.40%2.40%AfricaSpainBaa32.20%8.30%3.30%Western
EuropeSri LankaB14.50%11.75%6.75%AsiaSt.
MaartenBaa11.60%7.40%2.40%CaribbeanSt. Vincent & the
GrenadinesB25.50%13.25%8.25%CaribbeanSurinameBa33.60%10.40%5.40%Central
and South AmericaSwedenAaa0.00%5.00%0.00%Western
EuropeSwitzerlandAaa0.00%5.00%0.00%Western
EuropeTaiwanAa30.60%5.90%0.90%AsiaThailandBaa11.60%7.40%2.40%AsiaTrinidad
and
TobagoBaa11.60%7.40%2.40%CaribbeanTunisiaBa33.60%10.40%5.40%AfricaTurkeyBaa32.20%8.30%3.30%Western
EuropeUgandaB14.50%11.75%6.75%AfricaUkraineCaa17.50%16.25%11.25%Eastern
Europe & RussiaUnited Arab EmiratesAa20.50%5.75%0.75%Middle
EastUnited KingdomAa10.40%5.60%0.60%Western EuropeUnited States of
AmericaAaa0.00%5.00%0.00%North
AmericaUruguayBaa32.20%8.30%3.30%Central and South
AmericaVenezuelaCaa17.50%16.25%11.25%Central and South
AmericaVietnamB25.50%13.25%8.25%AsiaZambiaB14.50%11.75%6.75%AfricaRegionWeighted
Average: Default SpreadsWeighted Average: TRPWeighted Average:
CRPAfrica3.36%10.04%5.04%Asia1.00%6.51%1.51%Australia & New
Zealand0.00%5.00%0.00%Caribbean5.10%12.65%7.65%Central and South
America2.42%8.62%3.62%Eastern Europe &
Russia1.98%7.96%2.96%Middle East0.76%6.14%1.14%North
America0.00%5.00%0.00%Western Europe0.86%6.29%1.29%Rest of the
World1.35%6.45%1.35%
Traiing 12 monthLast 10KFirst X months: Last yearFirst X months:
Current yearTrailing 12
monthRevenues$74,452.00$48,865.00$59,659.00$85,246.00Technology
& Media content$6,565.00$4,703.00$6,639.00$8,501.00Operating
income or EBIT$745.00$235.00-$412.00$98.00Interest
expenses$141.00$102.00$136.00$175.00Book value of
equity$9,746.00$10,336.00Book value of debt$5,181.00$5,089.00Do you
have operating lease commitments?Cash and cross
holdings$12,447.00$10,252.00Non-operating assets$0.00$0.00Minority
interests$0.00$0.00Number of shares outstanding =Current stock
price =Effective tax rate =31.80%22.31%31.80%Marginal tax rate
=Lease commitmentsYear 1$752.00NAYear 2$654.00NAYear 3$604.00NAYear
4$539.00NAYear 5$470.00NABeyond year 5$2,116.00NA
Answer keysYes/NoBook or Market ValueERP choicesCost of
debtSynthetic ratingBetaOperating MarginBusiness25th
percentileMedian75th percentileAmazon Revenue WeightYesBWill
inputDirect input1Direct input25th (Large US retail)2.85%Large
retail2.85%5.14%10.17%67.46%NoVCountry of incorporationSynthetic
rating2Single Business(US)Median (Large US
retail)5.14%Media8.99%13.97%21.09%26.07%Operating countriesActual
ratingSingle Business(Global)75th (Large US
retail)10.17%Cloud1.35%4.25%7.50%6.46%Operating
regionsMultibusiness(US)25th (US retail &
media)4.35%Multibusiness(Global)Median (US retail &
media)7.38%75th (US retail & media)12.84%
What if tableTarget pre-tax operating margin in
20242.50%5%7.50%10%12.50%15%Revenues in
2024$100$34.36$69.25$104.14$139.03$173.92$208.81$150$30.75$79.34$127.93$176.52$225.11$273.70$200$27.20$90.19$153.19$216.18$279.17$342.17$250$23.76$101.35$178.94$256.52$334.11$411.69$300$20.29$113.22$206.16$299.10$392.03$484.97$350$17.02$124.85$232.67$340.50$448.32$556.14$400$13.90$136.28$258.66$381.03$503.41$625.78