FCFF Valuation Model Damodaran

FCFFVALUATIONMODEL
Beforeyoustart
Whatthemodeldoe
Inputs
Options
Otherworksheets
Output
FCFFVALUATIONMODEL
Thespreadsheethascircularreasoning.Thisisnotaproblem.Gointocalculationoptions(inexcel)andcheck
theiterationbox.
Thismodelisdesignedtovaluefirmswithoperatingincomethatiseitherpositiveorcanbenormalizedtobe
positive.Itallowsforupto15yearsofhighgrowth,andcanbeusedeitherasa2stageora3stagemodel.
Theinputsareinthefollowingpages:
1.Thebulkoftheinputsareinthemasterinputspage.Here,youcaninputthenumbersfromthecurrent
financialstatements,andreviewandchangetheinputsforthevaluation.
2.Ifyouwanttonormalizedoperatingincome,usetheearningsnormalizerworksheet.
3.IfyouhaveR&Doroperatingleases,youwillneedtoinputtherequirednumbersinthoseworksheets.
Important:Beconsistentabouttheunitsyouuse.Ifyouusemillions,usemillionsforallofyourinputs.
Thespreadsheetcanbeusedtovalueacompany,withfixedinputsforahighgrowthphaseanddifferentinputs
forastablegrowthphase(2stagemodel)oritcanbeadjustedtoallowforatransitionphase(3stagemodel).
Toswitchfromonetotheother,enteryesinthemasterinputpagetothequestionofwhetheryouwantthe
inputsadjustedduringthesecondhalfofthehighgrowthphase.
Youcanevenmakeitastablegrowthmodel,bysettingthelengthofthehighgrowthperiodtozero.
Therearetwootherworksheetsthatyoumightfindusefulattheendofthisspreadsheet
1.Bottomupbetaestimator:willestimateyourleveredbeta,givenanunleveredbeta(whichyouwillhaveto
input.
2.Industryaverages:Here,youcanlookupindustryaveragesforvariablessuchasbeta,returnoncapital,
reinvestmentratesandworkingcapital.
Theoutputiscontainedinthevaluationmodelworksheet.
An apology: I apologize for the number of inputs that are required on this sheet. Many of the inputs are required
If you have negative operating income, you will either have to normalize it to make it positive, or use the highg
MasterInputSheet
DoyouwanttocapitalizeR&Dexpenses?
Doyouwanttoconvertoperatingleasestodebt?
Doyouwanttonormalizeoperatingincome?
No
No
No
Inputs
FromCurrentFinancials
CurrentEBIT=
CurrentInterestExpense=
CurrentCapitalSpending
CurrentDepreciation&Amort'n=
Effectivetaxrate(foruseonoperatingincome)
Marginaltaxrate(foruseoncostofdebt)
CurrentRevenues=
CurrentNoncashWorkingCapital=
Chg.WorkingCapital=
BookValueofDebt=
BookValueofEquity=
Cash&MarketableSecurities=
ValueofNonoperatingAssets=
Minorityinterests
MarketDataforyourfirm
Isyourstockcurrentlytraded?
Ifyes,enterthefollowing:
CurrentStockPrice=
Numberofsharesoutstanding=
MarketValueofDebt=
Ifno,enterthefollowing
Wouldyouliketousethebookvaluedebtratio?
Ifno,enterthedebtratiotouseinvaluation
$1,337.93
$255.26
$603.39
$356.20
31.65%
34.00%
$7,010.31
$483.70
($62.00)
$2,609.00
$915.40
$960.20
$609.80
$17.70
!Ifnegative,gobackandchoosetonorma
Previousyearend
$6,345.70
Previousyearend
$2,207.20
$1,306.10
$1,286.90
$566.60
$0.00
Yes
$38.34
441.71
$2,609.00
No
35%
GeneralMarketData
LongTermRiskfreerate=
Riskpremiumforequity=
11.28%
7.85%
Ratings
Doyouwanttoestimatethefirm'ssyntheticrating=
Ifyes,choosethetypeoffirm
Ifnot,whatisthecurrentratingofthefirm?
Enterthecostofdebtassociatedwiththerating=
Yes
2
BBB
5.75%
Options
Doyouhaveequityoptions(managementoptions,warrants)outstanding?
No
Ifyes,enterthenumberofoptions
51.00
Averagestrikeprice
$40.35
Averagematurity
8.3
StandardDeviationinstockprice
25%
Doyouwanttousethestockpricetovaluetheoptionoryourestimatedvalue? CurrentPrice
Youcanusethecostofcapitalspreadsheet
!Ifyes,usetheratingestimatorworksheet
ValuationInputs
HighGrowthPeriod
Thequestionsbelow,especiallytheyesornoones,canbeco
Lengthofhighgrowthperiod=
10
Betatouseforhighgrowthperiodforyourfirm=
1.14
Youcanusethecostofcapitalspreadsheet
Doyouwanttokeepthedebtratiocomputedfromyourinputs?
Yes
Ifyes,thedebtratiothatwillbeusedtocomputethecostofcapitalis
13.35%
Ifno,enterthedebtratiothatyouwouldliketouseinthehighgrowthperiod
7.00%
Doyouwanttokeeptheexistingratioofworkingcapitaltorevenue?
Yes
Ifyes,theworkingcapitalasapercentofrevenueswillbe
6.90%
Ifno,entertheratioofworkingcapitaltorevenuestouseinanalysis
12%
Doyouwanttocomputeyourgrowthratefromfundamentals?
Yes
Ifno,entertheexpectedgrowthrateinoperatingincomeforhighgrowthperio
15%
Ifyes,theinputstothefundamentalgrowthcalculation(baseduponyourinputs)are
ReturnonCapital=
53.20%
ReinvestmentRate=
32.05%
Doyouwanttochangetheseinputs?
No
ReturnonCapital=
33.00%
ReinvestmentRate=
32.05%
Doyouwantmetograduallyadjustyourhighgrowthinputsinthesecondhalf
StableGrowthPeriod
Growthrateduringstablegrowthperiod=
Betatouseinstablegrowthperiod=
Riskpremiumforequityinstablegrowthperiod=
DebtRatiotouseinstablegrowthperiod=
Pretaxcostofdebtinstablegrowthperiod=
TaxRatetouseinstablegrowthperiod=
Tocomputethereinvestmentrateinstablegrowth,youhavetwooptions
Doyouwanttocomputereinvestmentneedsinstablegrowthbasedonfundam
Ifyes,enterthereturnoncapitalthatthefirmwillhaveinstablegrowth
Ifno,entercapitalexpenditureas%ofdepreciationinstablegrowth
Yes
10.00%
1.00
7.50%
30.00%
9.00%
34.00%
Yes
25.00%
120%
(inpercent)
Many of the inputs are required only if you choose the appropriate option, though.
ake it positive, or use the highgrowth.xls spreadsheet.
Ifyes,pleaseinputyournumbersintoR&Dconverterworksheet
Ifyes,pleaseinputyournumbersintooperatingleaseworksheet
Ifyes,pleaseinputyournumbersintoEarningsNormalizerworksheet
negative,gobackandchoosetonormalizeearnings.
viousyearend
viousyearend
ucanusethecostofcapitalspreadsheettocomputethisnumber
yes,usetheratingestimatorworksheetthatisattached
especiallytheyesornoones,canbeconfusing.Pleasereadthecommentsontheinputcells.
ucanusethecostofcapitalspreadsheettocomputethisnumber
NormalizingEarnings
Approachusedtonormalizeearnings=
Ifhistoricalaverage,
AverageEarningsbeforeinterestandtaxes=
3500
IfhistoricalaverageROC,
Historicalaveragepretaxreturnoncapital=
22%
Ifsectormargin
PretaxOperatingMarginforSector=
NormalizedEarningsbeforeinterestandtaxes=
Worksheetfornormalization(Last5yearsofdata)
5
4
Revenues
2032
2376
EBIT
186
454
OperatingMargi
9.15%
19.11%
14.72%
!Lookatindustryaverage
$1,031.69
2779
529
19.04%
2
3155
448
14.20%
3248
383
11.79%
Total
13590
2000
14.72%
R&DConverter
ThisspreadsheetconvertsR&Dexpensesfromoperatingtocapitalexpenses.Itmakestheappropriateadjustmentstooperatingincome,net
income,thebookvalueofassetsandthebookvalueofequity.
Inputs
OverhowmanyyearsdoyouwanttoamortizeR&Dexpenses
5
!Ifindoubt,usethelookuptablebelow
Enterthecurrentyear'sR&Dexpense=
$1,771.00 Themaximumallowedistenyears
EnterR&Dexpensesforpastyears:thenumberofyearsthatyouwillneedtoenterwillbedeterminedbytheamortizationperiod
Donotinputnumbersinthefirstcolumn(Year).Itwillgetautomaticallyupdatedbasedontheinputabove.
Year
1
2
3
4
5
0
0
0
0
0
Output
Year
Current
1
2
3
4
5
0
0
0
0
0
R&DExpenses
1678.00
!Year1istheyearpriortothecurrentyear
1529.00
!Year2isthetwoyearspriortothecurrentyear
1367.00
1267.00
1205.00
R&DExpense
1771.00
1678.00
1529.00
1367.00
1267.00
1205.00
0.00
0.00
0.00
0.00
0.00
Unamortizedportion
1.00
1771.00
0.80
1342.40
0.60
917.40
0.40
546.80
0.20
253.40
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ValueofResearchAsset=
$4,831.00
Amortizationofassetforcurrentyear=
$1,409.20
Amortizationthisyear
$335.60
$305.80
$273.40
$253.40
$241.00
$0.00
$0.00
$0.00
$0.00
$0.00
$1,409.20
AdjustmenttoOperatingIncome=
Tax Effect of R&D Expensing
$361.80 !Apositivenumberindicatesanincreaseinoperatingincome(addtoreportedEBIT)
$123
Look Up Table for Amortization Periods
IndustryName AmortizationPeriod
Advertising
2
Aerospace/Defen
10
AirTransport
10
Aluminum
5
Apparel
3
Auto&Truck
10
AutoParts(OEM
5
AutoParts(Repl
5
Bank
2
Bank(Canadian)
2
Bank(Foreign)
2
Bank(Midwest)
2
Beverage(Alcoho
3
Beverage(SoftD
3
BuildingMateria
5
CableTV
10
CanadianEnergy
10
Cement&Aggreg
10
Chemical(Basic)
10
Chemical(Divers
10
Chemical(Specia
10
Coal/AlternateE
5
Computer&Peri
5
ComputerSoftwa
3
Copper
5
DiversifiedCo.
5
Drug
10
Drugstore
3
EducationalServ
3
ElectricUtil.(Ce
10
ElectricUtility(
10
ElectricUtility(
10
NontechnologicalService
Retail,TechService
LightManufacturing
HeavyManufacturing
Research,withPatenting
LongGestationPeriod
2years
3years
5years
10years
10years
10years
ElectricalEquip
Electronics
Entertainment
Environmental
FinancialService
FoodProcessing
FoodWholesaler
ForeignElectron
ForeignTelecom
Furn./HomeFurn
Gold/SilverMini
Grocery
HealthcareInfo
HomeAppliance
Homebuilding
Hotel/Gaming
HouseholdProdu
IndustrialServic
Insurance(Divers
Insurance(Life)
Insurance(Prop/
Internet
InvestmentCo.(
InvestmentCo.(
InvestmentCo.(
Machinery
Manuf.Housing/
Maritime
MedicalServices
MedicalSupplies
MetalFabricatin
Metals&Mining
NaturalGas(Dist
NaturalGas(Dive
Newspaper
OfficeEquip&S
OilfieldServices
Packaging&Con
Paper&ForestP
10
5
3
5
2
3
3
5
10
3
5
2
3
5
5
3
3
3
3
3
3
3
3
3
3
10
5
10
3
5
10
5
10
10
3
5
5
5
10
Petroleum(Integr
Petroleum(Produ
PrecisionInstru
Publishing
R.E.I.T.
Railroad
Recreation
Restaurant
Retail(SpecialL
RetailBuilding
RetailStore
SecuritiesBroke
Semiconductor
SemiconductorC
Shoe
Steel(General)
Steel(Integrated)
Telecom.Equipm
Telecom.Service
Textile
Thrift
Tire&Rubber
Tobacco
Toiletries/Cosme
Trucking/Transp.
Utility(Foreign)
WaterUtility
5
5
5
3
3
5
5
2
2
2
2
2
5
5
3
5
5
10
5
5
2
5
5
3
5
10
10
Inputs
Operatingleaseexpenseincurrentyear=
OperatingLeaseCommitments(Fromfootnotetofinancials)
Year
Commitment !Year1isnextyear,.
1
$453.00
2
$371.00
3
$265.00
4
$180.00
5
$122.00
6andbeyond $259.00
OperatingLeaseConverter
$504.00
Output
PretaxCostofDebt=
12.58%
!Ifyoudonothaveacostofdebt,usetheratingsestimator
Fromthecurrentfinancialstatements,enterthefollowing
ReportedOperatingIncome(EBIT)=
$1,337.93 !ThisistheEBITreportedinthecurrentincomestatement
ReportedDebt=
$2,609.00 !Thisistheinterestbearingdebtreportedonthebalancesheet
Numberofyearsembeddedinyr6estimate=
!Iusetheaverageleaseexpenseoverthefirstfiveyears
toestimatethenumberofyearsofexpensesinyr6
ConvertingOperatingLeasesintodebt
Year
Commitment
PresentValue
1 $453.00
$402.38
2 $371.00
$292.72
3 $265.00
$185.72
4 $180.00
$112.05
5 $122.00
$67.46
6andbeyond
$259.00
$127.21 !Commitmentbeyondyear6convertedintoanannuityfortenyears
DebtValueofleases=
$1,187.55
RestatedFinancials
DepreciationonOperatingLeaseAsset=
AdjustmenttoOperatingEarnings=
AdjustmenttoTotalDebtoutstanding=
$197.92 !Iusestraightlinedepreciation
$306.08 !OperatingleaseexpenseDepreciation
$1,187.55
Two-Stage FCFF Discount Model
InputSummary
NormalizedEBIT(beforeadjustments)
$1,337.93
AdjustedEBIT=
$1,337.93
AdjustedInterestExpense=
$255.26
AdjustedCapitalSpending
$603.39
AdjustedDepreciation&Amort'n=
$356.20
TaxRateonIncome=
34.00%
CurrentRevenues=
$7,010.31
CurrentNoncashWorkingCapital=
$483.70
Chg.WorkingCapital=
$45.86
AdjustedBookValueofDebt=
$2,207.20
AdjustedBookValueofEquity=
$1,306.10
InputDiagnostics
LengthofHighGrowthPeriod=
10
Forever
GrowthRate=
17.05%
10.00%
DebtRatiousedinCostofCapitalCalcula
13.35%
30.00%
1.14
1.00
Riskfreerate=
11.28%
11.28%
RiskPremium=
7.85%
7.50%
CostofDebt=
12.58%
9.00%
EffectiveTaxrate(forcashflow)=
31.65%
34.00%
Marginaltaxrate(forcostofdebt)=
34.00%
34.00%
IfthisisaUScompany,thistaxrateisbelowthemarginaltaxrate.Movetowardsamarginaltaxrate
ReturnonCapital=
53.20%
25.00%
Yourreturnoncapitalexceedsyourcostofcapitalbymorethan5%.Thatisunusuallyhigh.Doesyourcompanyhave
ReinvestmentRate=
32.05%
40.00%
ImputedReturnoncapitalforeve
Betausedforstock=
CostofdebtislessthantheriskfreerateNotpossible
Page
25.00%
Outputfromtheprogram
CostofEquity=
20.23%
Equity/(Debt+Equity)=
86.65%
AftertaxCostofdebt=
8.30%
Debt/(Debt+Equity)=
13.35%
CostofCapital=
18.64%
IntermediateOutput
ExpectedGrowthRate
17.05%
WorkingCapitalaspercentofrevenues=
6.90%
(inpercent)
TheFCFFforthehighgrowthphaseareshownbelow(upto10years)
1
ExpectedGrowthRate
17.05%
17.05%
17.05%
17.05%
17.05%
15.64%
14.23%
12.82%
CumulatedGrowth
117.05%
137.01%
160.37%
187.71%
219.71%
254.07%
290.23%
327.43%
ReinvestmentRate
32.05%
32.05%
32.05%
32.05%
32.05%
33.64%
35.23%
36.82%
Current
EBIT
$1,338
$1,566
$1,833
$2,146
$2,511
$2,940
$3,399
$3,883
$4,381
Taxrate(forcashflow
31.65%
31.89%
32.12%
32.36%
32.59%
32.83%
33.06%
33.30%
33.53%
EBIT*(1taxrate)
$914
$1,067
$1,244
$1,451
$1,693
$1,975
$2,275
$2,590
$2,912
(CapExDepreciation
$247
$259
$302
$352
$410
$478
$599
$738
$892
Chg.WorkingCapita
$46
$82
$97
$113
$132
$155
$166
$175
$180
FreeCashflowtoFirm
$621
$725
$845
$986
$1,150
$1,342
$1,510
$1,678
$1,840
CostofCapital
18.64%
18.64%
18.64%
18.64%
18.64%
17.90%
17.15%
16.41%
CumulatedCostofCapital
1.1864
1.4075
1.6698
1.9810
2.3502
2.7707
3.2460
3.7787
$611
$601
$591
$581
$571
$545
$517
$487
PresentValue
GrowthRateinStablePhase=
10.00%
ReinvestmentRateinStablePhase=
40.00%
FCFFinStablePhase=
$2,338.63
CostofEquityinStablePhase=
18.78%
Equity/(Equity+Debt)=
70.00%
Page
ATCostofDebtinStablePhase=
5.94%
Debt/(Equity+Debt)=
30.00%
CostofCapitalinStablePhase=
14.93%
Valueattheendofgrowthphase=
$47,455.92
Valuation
PresentValueofFCFFinhighgrowthphase=
$5,381.33
PresentValueofTerminalValueofFirm=
$9,447.10
Valueofoperatingassetsofthefirm=
$14,828.43
ValueofCash,MarketableSecurities&Nonoperatingassets=
$1,570.00
ValueofFirm=
$16,398.43
MarketValueofoutstandingdebt=
$2,609.00
MinorityInterests
MarketValueofEquity=
ValueofEquityinOptions=
ValueofEquityinCommonStock=
MarketValueofEquity/share=
$17.70
$13,771.73
$0.00
$13,771.73
$31.18
Page
ostics
Revisitinputcell
B54
B74
B77
B75
B78
rdsamarginaltaxrate
B79
usuallyhigh.Doesyourcompanyhavethatsustainableacompetitivea
B82
B8183
Page
10
11.41%
10.00%
364.79%
401.27%
38.41%
40.00%
$4,881
$5,369
33.77%
34.00%
34.00%
$3,233
$3,543
$3,897.71
$1,061
$1,241
$1,325.59
$181
$176
$233.50
$1,991
$2,126
$2,338.63
15.67%
14.93%
4.3709
5.0233
$456
$423
Page
TerminalYear
Page
ValuingOptionsorWarrants
Enterthecurrentstockprice=
Enterthestrikepriceontheoption=
Entertheexpirationoftheoption=
Enterthestandarddeviationinstockprices=
Entertheannualizeddividendyieldonstock=
Enterthetreasurybondrate=
Enterthenumberofwarrants(options)outstanding
Enterthenumberofsharesoutstanding=
$38.34
$40.35
8.3
25.00% (volatility)
0.00%
11.28%
51.00
441.71
Donotinputanynumbersbelowthisline
VALUINGWARRANTSWHENTHEREISDILUTION
38.34 #Warrantsissued=
StockPrice=
40.35 #Sharesoutstanding=
StrikePrice=
36.6287168684 T.Bondrate=
AdjustedS=
40.35 Variance=
AdjustedK=
8.3 Annualizeddividendyield=
Expiration(inyears)=
Div.Adj.interestrate=
d1=
N(d1)=
1.5256741541
0.9364544828
d2=
N(d2)=
0.8054311395
0.7897145358
Valueperoption=
Valueofalloptionsoutstanding=
$21.81
$1,112.11
50.998
442
11.28%
0.0625
0.00%
11.28%
EstimationofCurrentCostofCapital
Inputs
Equity
NumberofSharesoutstanding=
CurrentMarketPricepershare=
441.71
$38.34
Unleveredbeta=
RiskfreeRate=
EquityRiskPremium=
0.97
11.28%
6.44%
Debt
BookValueofStraightDebt=
InterestExpenseonDebt=
AverageMaturity=
PretaxCostofDebt=
TaxRate=
BookValueofConvertibleDebt=
InterestExpenseonConvertible=
MaturityofConvertibleBond=
MarketValueofConvertible=
Debtvalueofoperatingleases=
$2,609.00
$255.26
5
3.65%
34%
0
0
0
0
$
PreferredStock
NumberofPreferredShares=
CurrentMarketPriceperShare=
AnnualDividendperShare=
0
70
5
Output
EstimatingMarketValueofStraightDebt=
EstimatedValueofStraightDebtinConvertible=
ValueofDebtinOperatingleases=
EstimatedValueofEquityinConvertible=
LeveredBetaforequity=
MarketValue
WeightinCostofCapital
CostofComponent
$3,328.48
$0.00
$0.00
$0.00
1.10
Equity
$16,935.00
83.57%
18.35%
Debt
PreferredStock
Capital
$3,328.48
$0.00 $20,263.48
16.43%
0.00%
100.00%
2.41%
7.14%
15.73%
Ifyouareamultinationalcompanyandhaveabreakdownbycountry,youcanuset
Country
Revenues
ERP
Brazil
800
Total
800
Weight
7.85%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
Ifyouareamultinationalcompanyandhaveabreakdownonlybyregion,youcanu
Region
Revenues
Africa
Asia
Australia&NewZealand
Caribbean
CentralandSouthAmerica
EasternEurope&Russia
MiddleEast
NorthAmerica
WesternEurope
Global
Total
ERP
0
0
10
30
35
15
10
100
Weight
10.04%
6.51%
5.00%
12.65%
8.62%
7.96%
6.14%
5.00%
6.29%
6.35%
0.00%
0.00%
0.00%
10.00%
0.00%
0.00%
30.00%
35.00%
15.00%
10.00%
100.00%
Ifyouareamultibusinesscompany,youcaninputthefollowing
Business
Revenues
EV/Sales
EstimatedValue
Toiletries/Cosmetics
$100.00
1.7329 $173.29
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
0.0000 $
$173.29
Company
$
100.00
akdownbycountry,youcanusethistable(forupto10countries)
WeightedERP
7.85%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.85%
akdownonlybyregion,youcanusethistableinstead
WeightedERP
0.0000%
0.0000%
0.0000%
1.2647%
0.0000%
0.0000%
1.8432%
1.7500%
0.9441%
0.6350%
6.4369%
UnleveredBeta
0.9727
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.9727
Inputsforsyntheticratingestimation
Enterthetypeoffirm=
2 (Enter1iflargemanufacturingfirm,2ifsmallerorriskierfirm,3iffinancialservicefi
EntercurrentEarningsbeforeinterestandtaxes(EBIT)=
$1,337.93 (Addbackonlylongterminterest
Entercurrentinterestexpenses=
$255.26 (Useonlylongterminterestexpen
Entercurrentlongtermgovernmentbondrate=
11.28%
Output
5.24
Interestcoverageratio=
EstimatedBondRating=
A3/A1.30%
EstimatedDefaultSpread=
12.58%
EstimatedCostofDebt=
Forlargemanufacturingfirms
Ifinterestcoverageratiois
>
to
100000
0.199999
0.2
0.649999
0.65
0.799999
0.8
1.249999
1.25
1.499999
1.5
1.749999
1.75
1.999999
2
2.2499999
2.25
2.49999
2.5
2.999999
3
4.249999
4.25
5.499999
5.5
6.499999
6.5
8.499999
8.50
100000
Ratingis
D2/D
C2/C
Ca2/CC
Caa/CCC
B3/BB2/B
B1/B+
Ba2/BB
Ba1/BB+
Baa2/BBB
A3/AA2/A
A1/A+
Aa2/AA
Aaa/AAA
Spreadis
12.00%
10.50%
9.50%
8.75%
7.25%
6.50%
5.50%
4.00%
3.00%
2.00%
1.30%
1.00%
0.85%
0.70%
0.40%
Forsmallerandriskierfirms
Ifinterestcoverageratiois
greaterthan
to
100000
0.499999
0.5
0.799999
0.8
1.249999
1.25
1.499999
1.5
1.999999
2
2.499999
2.5
2.999999
3
3.499999
3.5
3.9999999
4
4.499999
4.5
5.999999
6
7.499999
7.5
9.499999
Ratingis
D2/D
C2/C
Ca2/CC
Caa/CCC
B3/BB2/B
B1/B+
Ba2/BB
Ba1/BB+
Baa2/BBB
A3/AA2/A
A1/A+
Spreadis
12.00%
10.50%
9.50%
8.75%
7.25%
6.50%
5.50%
4.00%
3.00%
2.00%
1.30%
1.00%
0.85%
Forfinancialservicefirms
Iflongterminterestcoverageratiois
greaterthan
to
100000
0.049999
0.05
0.099999
0.1
0.199999
0.2
0.299999
0.3
0.399999
0.4
0.499999
0.5
0.599999
0.6
0.749999
0.75
0.899999
0.9
1.199999
1.2
1.49999
1.5
1.99999
2
2.49999
2.5
2.99999
3
100000
9.5
12.5
12.499999
100000
Aa2/AA
Aaa/AAA
0.70%
0.40%
ierfirm,3iffinancialservicefirm)
ddbackonlylongterminterestexpenseforfinancialfirms)
eonlylongterminterestexpenseforfinancialfirms)
coverageratiois
Ratingis
D2/D
C2/C
Ca2/CC
Caa/CCC
B3/BB2/B
B1/B+
Ba2/BB
Ba1/BB+
Baa2/BBB
A3/AA2/A
A1/A+
Aa2/AA
Aaa/AAA
SpreadisOperatingIncomeDecline
12.00%
50.00%
10.50%
40.00%
9.50%
40.00%
8.75%
40.00%
7.25%
25.00%
6.50%
20.00%
5.50%
20.00%
4.00%
20.00%
3.00%
20.00%
2.00%
20.00%
1.30%
17.50%
1.00%
15.00%
0.85%
10.00%
0.70%
5.00%
0.40%
0.00%
Industry Name
Advertising
Aerospace/Defense
Air Transport
Apparel
Auto Parts
Automotive
Bank
Bank (Midwest)
Beverage
Biotechnology
Building Materials
Cable TV
Chemical (Basic)
Chemical (Diversified)
Chemical (Specialty)
Coal
Computer Software
Computers/Peripherals
Diversified Co.
Drug
E-Commerce
Educational Services
Electric Util. (Central)
Electric Utility (East)
Electric Utility (West)
Electrical Equipment
Electronics
Engineering & Const
Entertainment
Entertainment Tech
Environmental
Financial Svcs. (Div.)
Food Processing
Foreign Electronics
Funeral Services
Furn/Home Furnishings
Healthcare Information
Heavy Truck & Equip
Homebuilding
Hotel/Gaming
Household Products
Human Resources
Industrial Services
Information Services
Insurance (Life)
Insurance (Prop/Cas.)
Internet
Investment Co.
IT Services
Number
Annual of
Average
firms Revenue growth
Pre-tax- Last
Operating
5 years
Margin
After-tax ROC
Average effective tax rate
31
66
35
46
54
11
375
86
36
232
42
18
18
32
73
19
181
68
123
199
66
33
20
17
15
60
99
30
67
36
61
225
104
10
6
28
19
21
25
53
26
25
122
29
31
66
145
16
55
4.60%
12.33%
6.51%
7.48%
0.90%
9.66%
0.00%
0.00%
3.24%
23.92%
4.86%
8.74%
-6.24%
9.02%
11.69%
5.79%
10.34%
-0.77%
11.32%
23.48%
13.83%
3.59%
-2.25%
-9.80%
-5.02%
-2.61%
5.20%
13.10%
9.04%
5.45%
16.24%
19.02%
6.58%
-9.48%
6.73%
2.97%
7.12%
3.93%
14.61%
15.36%
7.33%
7.68%
6.30%
10.26%
0.00%
4.96%
18.48%
32.20%
3.33%
11.44%
9.99%
8.04%
10.70%
6.88%
6.55%
NA
NA
20.46%
22.27%
0.55%
19.14%
14.15%
15.73%
11.66%
10.20%
26.93%
15.88%
13.18%
25.65%
12.17%
12.70%
18.58%
20.00%
16.88%
6.74%
5.97%
5.19%
21.64%
14.84%
14.23%
48.76%
9.23%
4.56%
14.72%
6.84%
13.68%
10.87%
-17.62%
15.20%
16.93%
3.15%
10.23%
19.64%
NA
NA
14.24%
32.79%
13.66%
11.59%
18.08%
16.80%
14.62%
14.06%
6.10%
NA
NA
13.87%
16.57%
-0.38%
11.44%
15.30%
15.21%
14.17%
7.65%
25.52%
29.07%
8.83%
16.78%
9.11%
25.71%
6.29%
5.45%
6.45%
4.41%
12.06%
13.83%
11.79%
14.97%
7.15%
11.19%
12.40%
6.75%
8.41%
10.10%
10.00%
15.04%
-17.93%
10.23%
14.72%
11.69%
7.45%
12.07%
NA
NA
25.22%
93.10%
28.42%
16.81%
23.03%
26.03%
18.85%
17.88%
17.79%
17.91%
21.88%
17.04%
2.63%
11.27%
20.75%
21.56%
21.15%
15.52%
9.47%
13.43%
7.63%
20.27%
5.89%
10.24%
21.44%
28.85%
31.06%
28.24%
16.78%
11.65%
19.88%
14.87%
11.45%
10.82%
16.74%
21.85%
31.10%
27.80%
19.54%
18.01%
20.13%
7.09%
14.48%
23.88%
25.63%
20.04%
17.00%
20.49%
12.62%
11.27%
21.82%
18.61%
Machinery
Maritime
Med Supp Invasive
Med Supp Non-Invasive
Medical Services
Metal Fabricating
Metals & Mining (Div.)
Natural Gas (Div.)
Natural Gas Utility
Newspaper
Office Equip/Supplies
Oil/Gas Distribution
Oilfield Svcs/Equip.
Packaging & Container
Paper/Forest Products
Petroleum (Integrated)
Petroleum (Producing)
Pharmacy Services
Pipeline MLPs
Power
Precious Metals
Precision Instrument
Public/Private Equity
Publishing
R.E.I.T.
Railroad
Recreation
Reinsurance
Restaurant
Retail (Hardlines)
Retail (Softlines)
Retail Automotive
Retail Building Supply
Retail Store
Retail/Wholesale Food
Securities Brokerage
Semiconductor
Semiconductor Equip
Shoe
Steel
Telecom. Equipment
Telecom. Services
Telecom. Utility
Thrift
Tobacco
Toiletries/Cosmetics
Trucking
Water Utility
Wireless Networking
82
51
74
127
106
25
71
30
26
12
18
11
80
26
29
28
168
16
62
92
74
76
20
21
131
13
53
12
67
69
41
19
10
36
32
30
136
10
12
32
91
61
24
170
11
15
31
9
53
3.47%
-7.04%
1.14%
11.25%
8.35%
0.74%
2.64%
-4.25%
-7.97%
2.29%
0.49%
-2.80%
14.20%
2.70%
5.05%
20.39%
7.01%
13.34%
-1.75%
-2.13%
14.61%
-3.49%
14.68%
-3.12%
-5.51%
12.09%
10.80%
0.00%
1.40%
10.42%
7.33%
11.71%
8.37%
8.73%
10.91%
-4.90%
-4.41%
2.12%
5.03%
1.11%
1.39%
6.10%
0.01%
0.00%
20.51%
4.78%
1.26%
4.44%
11.83%
12.51%
10.84%
23.03%
7.77%
10.56%
13.69%
24.25%
18.59%
11.95%
13.30%
6.97%
12.54%
16.01%
9.62%
8.71%
10.63%
24.23%
4.76%
8.65%
7.75%
31.98%
16.03%
33.10%
8.10%
80.18%
29.50%
12.22%
NA
16.31%
8.70%
10.85%
6.83%
9.34%
5.53%
3.78%
32.05%
18.28%
10.34%
11.18%
2.99%
-0.15%
19.86%
15.94%
NA
23.01%
10.51%
7.85%
27.63%
7.57%
11.76%
3.33%
16.28%
19.25%
13.73%
13.72%
13.22%
5.47%
6.31%
12.66%
10.97%
6.46%
9.70%
11.37%
8.49%
12.64%
11.54%
8.27%
7.70%
3.17%
8.98%
13.41%
13.90%
8.55%
12.59%
12.36%
9.17%
NA
19.44%
14.89%
35.44%
9.54%
16.18%
13.70%
11.65%
5.43%
18.03%
9.54%
26.04%
2.14%
-6.38%
12.19%
9.15%
NA
33.57%
17.09%
12.48%
6.15%
4.09%
24.47%
5.99%
15.02%
11.14%
18.76%
16.65%
11.84%
19.04%
25.74%
29.11%
22.90%
17.33%
19.53%
23.58%
12.27%
30.70%
13.09%
23.64%
5.50%
8.99%
10.50%
13.41%
20.12%
23.36%
0.50%
30.96%
20.89%
6.53%
22.49%
23.83%
26.53%
32.89%
24.71%
23.46%
29.85%
24.32%
11.02%
20.20%
23.43%
26.96%
17.41%
17.82%
19.76%
16.03%
33.51%
29.96%
27.33%
34.28%
11.06%
Unlevered Beta
Equity (Levered)
Cost
Beta
of equity
Std deviation in stock pricesPre-tax cost of debt
1.13
0.87
0.92
1.17
1.50
1.14
0.62
0.86
0.71
1.27
1.28
0.71
1.20
1.24
1.03
0.89
0.90
1.29
0.88
0.99
0.82
0.85
0.35
0.26
0.37
1.34
1.10
1.15
1.18
1.33
0.34
0.95
0.76
1.15
0.81
1.33
1.08
1.46
1.40
1.14
0.86
1.50
0.68
1.02
1.66
0.81
1.02
1.47
0.94
1.30
0.92
1.07
1.20
1.66
1.70
0.88
0.95
0.81
1.24
1.69
0.96
1.32
1.32
1.13
1.44
0.85
1.28
1.15
1.04
0.82
0.78
0.55
0.39
0.54
1.35
1.14
1.10
1.33
1.06
0.45
1.19
0.85
1.11
1.01
1.39
1.07
1.79
1.79
1.49
0.94
1.47
0.93
1.14
1.62
0.81
0.95
1.19
0.90
9.54%
7.62%
8.37%
9.06%
11.35%
11.52%
7.45%
7.80%
7.08%
9.22%
11.50%
7.83%
9.63%
9.62%
8.71%
10.26%
7.28%
9.45%
8.79%
8.25%
7.13%
6.93%
5.77%
4.99%
5.76%
9.77%
8.74%
8.56%
9.71%
8.35%
5.31%
8.98%
7.29%
8.57%
8.11%
10.01%
8.37%
12.01%
11.98%
10.47%
7.75%
10.40%
7.68%
8.73%
11.14%
7.09%
7.77%
9.01%
7.56%
83.02%
44.75%
63.96%
67.00%
51.50%
49.51%
43.18%
32.12%
47.98%
83.67%
76.77%
37.32%
38.16%
44.72%
60.60%
46.07%
67.14%
77.26%
57.21%
84.78%
72.45%
81.04%
14.80%
13.08%
14.11%
67.15%
75.34%
56.11%
61.01%
49.47%
77.98%
54.62%
51.38%
29.83%
25.91%
45.61%
54.31%
39.16%
41.47%
58.46%
40.37%
50.44%
58.23%
55.92%
29.38%
27.38%
90.80%
66.00%
51.20%
5.54%
4.04%
4.54%
5.04%
4.54%
4.04%
4.04%
4.04%
4.04%
5.54%
5.04%
4.04%
4.04%
4.04%
4.54%
4.04%
5.04%
5.04%
4.54%
5.54%
5.04%
5.54%
3.54%
3.54%
3.54%
5.04%
5.04%
4.54%
4.54%
4.04%
5.04%
4.54%
4.54%
4.04%
4.04%
4.04%
4.54%
4.04%
4.04%
4.54%
4.04%
4.54%
4.54%
4.54%
4.04%
4.04%
6.04%
5.04%
4.54%
1.09
0.71
0.92
0.87
0.73
1.31
1.22
1.04
0.40
1.90
0.94
0.67
1.29
0.87
0.93
1.01
1.23
0.90
0.41
0.73
0.73
1.08
1.58
0.92
0.98
1.24
1.15
0.90
0.94
1.60
1.33
1.04
1.10
1.05
0.68
0.80
1.44
1.88
1.39
1.22
1.27
0.90
0.47
0.79
0.81
0.97
1.19
0.31
0.93
1.19
1.48
0.97
0.88
0.91
1.41
1.39
1.29
0.56
2.01
1.14
1.01
1.47
1.09
1.17
1.07
1.48
1.00
0.56
1.50
0.83
1.12
1.67
1.13
1.35
1.40
1.37
0.81
1.00
1.68
1.27
1.27
1.17
1.18
0.78
1.18
1.38
1.73
1.32
1.66
1.05
1.05
0.77
0.69
0.88
1.03
1.40
0.45
1.18
8.99%
10.46%
7.87%
7.45%
7.60%
10.07%
9.98%
9.51%
5.83%
13.08%
8.72%
8.11%
10.37%
8.48%
8.91%
8.38%
10.42%
8.05%
5.85%
10.53%
7.19%
8.65%
11.40%
8.70%
9.77%
10.03%
9.87%
7.08%
8.04%
11.44%
9.41%
9.40%
8.90%
8.95%
6.95%
8.95%
9.93%
11.71%
9.62%
11.36%
8.27%
8.30%
6.87%
6.51%
7.45%
8.18%
10.05%
5.27%
8.96%
47.09%
75.61%
55.16%
62.14%
72.79%
57.52%
82.87%
43.11%
29.29%
42.63%
56.56%
37.38%
53.47%
44.69%
43.52%
47.09%
72.91%
55.91%
22.33%
88.17%
66.24%
57.51%
33.66%
54.21%
29.77%
32.21%
46.18%
20.86%
53.50%
52.44%
56.84%
36.44%
28.59%
40.98%
30.14%
43.92%
49.52%
36.83%
49.98%
39.65%
61.81%
62.49%
41.97%
34.84%
30.12%
38.40%
42.67%
14.75%
62.14%
4.04%
5.04%
4.54%
4.54%
5.04%
4.54%
5.54%
4.04%
4.04%
4.04%
4.54%
4.04%
4.54%
4.04%
4.04%
4.04%
5.04%
4.54%
3.54%
5.54%
5.04%
4.54%
4.04%
4.54%
4.04%
4.04%
4.04%
3.54%
4.54%
4.54%
4.54%
4.04%
4.04%
4.04%
4.04%
4.04%
4.04%
4.04%
4.04%
4.04%
4.54%
4.54%
4.04%
4.04%
4.04%
4.04%
4.04%
3.54%
4.54%
Market Debt/Capital
Cost of capital
Sales/Capital
EV/Sales
EV/EBITDA
26.35%
16.46%
30.31%
8.57%
18.11%
46.62%
45.74%
24.39%
18.12%
11.16%
30.25%
35.25%
18.89%
14.84%
16.36%
43.67%
7.05%
7.89%
37.79%
11.62%
7.30%
12.53%
44.44%
44.17%
41.24%
10.49%
15.50%
10.59%
16.95%
6.01%
28.42%
35.09%
17.03%
24.76%
28.09%
12.04%
7.71%
29.49%
35.22%
30.65%
13.70%
8.33%
37.91%
16.06%
26.98%
17.91%
2.34%
5.35%
5.29%
7.90%
6.77%
6.66%
8.54%
9.78%
7.28%
5.15%
6.49%
6.24%
8.56%
8.94%
5.92%
8.27%
8.56%
7.73%
6.84%
6.98%
8.95%
6.50%
7.67%
6.83%
6.47%
4.15%
3.73%
4.26%
9.06%
7.85%
7.95%
8.52%
8.00%
4.66%
6.79%
6.52%
7.05%
6.51%
9.10%
7.93%
9.18%
8.61%
8.10%
7.02%
9.76%
5.80%
7.76%
8.79%
6.25%
7.67%
8.69%
7.31%
1.39
2.67
2.72
1.92
2.53
1.32
NA
NA
0.86
0.93
1.07
0.86
1.42
1.38
1.70
0.87
1.26
2.45
0.86
0.82
1.00
3.30
0.49
0.40
0.51
1.46
2.68
3.76
0.79
1.27
0.76
0.32
1.78
2.23
0.85
1.94
1.11
1.95
0.94
0.81
1.19
6.09
1.04
0.83
NA
NA
2.29
3.59
2.79
1.67
1.31
1.01
2.08
0.93
0.98
NA
NA
3.59
8.17
1.64
2.62
1.59
2.07
1.71
1.40
4.09
1.67
2.18
4.06
6.01
1.02
2.61
3.09
2.46
1.91
0.83
0.61
3.31
1.96
2.36
5.48
1.40
0.54
2.24
1.34
4.74
1.14
1.84
3.10
2.65
0.52
1.56
4.05
NA
NA
5.57
3.05
2.13
10.91
10.54
7.89
15.70
9.56
8.76
5.40
5.43
14.36
28.37
26.98
8.03
8.37
10.11
10.92
6.97
12.98
8.69
12.68
11.84
30.97
5.95
8.51
9.56
8.32
18.40
9.61
9.17
12.88
10.01
10.35
10.58
12.04
5.39
11.69
14.07
21.11
8.23
NA
13.81
13.13
13.14
11.24
14.48
1.51
299.00
27.77
8.17
12.62
16.62%
57.16%
12.93%
9.09%
31.09%
15.91%
19.45%
26.18%
37.22%
16.94%
31.65%
39.32%
20.69%
28.58%
27.43%
17.47%
21.52%
15.78%
29.46%
57.27%
25.52%
13.23%
21.60%
26.84%
30.52%
17.33%
23.96%
13.79%
11.67%
11.18%
4.77%
28.17%
9.81%
18.54%
23.34%
63.94%
9.85%
11.65%
3.79%
38.89%
11.02%
25.17%
47.08%
8.01%
16.33%
15.71%
23.56%
40.25%
28.78%
7.90%
6.21%
7.20%
7.02%
6.18%
8.90%
8.68%
7.66%
4.56%
11.27%
6.82%
5.88%
8.79%
6.75%
7.13%
7.34%
8.83%
7.21%
4.75%
6.40%
6.13%
7.86%
9.46%
7.09%
7.53%
8.71%
8.08%
6.39%
7.42%
10.46%
9.09%
7.43%
8.27%
7.74%
5.90%
4.78%
9.19%
10.63%
9.34%
7.88%
7.66%
6.90%
4.77%
6.18%
6.63%
7.27%
8.26%
4.01%
7.17%
1.32
0.36
0.92
3.35
2.00
1.44
0.79
0.40
0.74
1.31
2.20
0.66
0.80
1.62
1.39
2.04
0.75
2.73
0.92
0.61
0.39
1.00
0.48
1.53
0.17
0.64
0.95
NA
1.72
2.55
5.21
2.17
2.71
3.68
4.53
0.27
1.20
1.19
3.14
1.15
2.05
0.92
0.79
NA
2.13
2.57
2.36
0.33
0.70
1.92
2.99
3.13
1.11
0.92
1.71
2.17
4.09
2.12
2.13
0.66
2.49
2.16
1.29
1.32
0.67
1.94
0.76
2.12
1.72
2.03
2.66
3.21
1.44
7.13
3.98
2.03
NA
2.71
1.87
1.27
1.08
1.51
0.65
0.54
4.35
2.78
2.07
2.06
0.84
1.59
2.00
1.86
NA
2.41
1.73
1.06
4.34
3.28
11.60
12.20
10.99
11.73
7.18
9.92
6.71
8.25
11.43
11.17
6.33
13.84
8.89
9.05
8.97
4.62
5.04
11.70
16.96
9.78
4.55
12.13
8.95
10.62
7.71
10.43
11.30
37.10
12.96
15.81
9.12
12.73
12.95
8.65
9.51
12.02
9.35
11.55
15.75
10.62
42.19
5.68
5.42
5.52
9.71
12.81
7.72
10.65
16.11
EV/EBIT
Price/Book
Trailing PE
14.64
13.08
12.56
19.42
13.48
15.02
5.40
5.43
17.56
36.70
298.53
13.68
11.25
13.16
14.68
13.73
15.20
10.53
16.55
15.82
49.33
8.02
14.04
15.46
14.60
28.29
13.95
11.81
15.27
13.18
16.55
11.24
15.15
11.74
15.25
19.64
34.62
10.51
NA
20.37
15.63
16.57
15.25
20.62
1.51
301.42
39.09
9.31
15.60
3.24
4.58
5.00
4.60
2.90
1.59
1.21
1.59
4.79
6.46
2.42
5.24
2.76
3.47
3.91
1.43
4.28
4.06
2.91
3.85
6.33
2.93
1.62
1.54
1.54
2.89
2.41
2.26
3.50
1.92
2.56
2.36
3.27
1.21
2.87
2.95
5.37
3.58
2.25
5.45
4.38
3.20
2.35
5.10
1.03
1.36
6.83
3.92
5.20
49.37
24.32
16.16
21.97
23.26
12.65
18.14
18.57
28.96
63.71
755.50
25.95
14.55
22.16
30.18
36.36
65.03
51.52
28.68
49.11
150.17
24.10
16.69
16.67
16.85
23.36
25.26
22.41
25.36
20.10
28.06
26.69
31.35
34.22
22.40
22.35
1058.24
19.88
25.56
37.99
21.02
26.37
37.63
214.35
14.72
17.61
149.75
22.44
36.04
15.31
27.61
13.61
14.28
8.72
12.49
8.96
22.00
17.75
15.98
9.43
19.83
13.50
13.43
15.10
6.34
8.00
15.88
24.45
22.23
6.34
16.62
9.70
17.80
8.89
13.48
16.58
37.10
16.61
21.50
11.69
15.83
16.19
11.83
14.31
13.58
15.19
19.97
18.40
27.92
NA
10.05
11.68
5.52
10.48
16.48
13.47
15.69
43.41
3.24
1.20
3.32
3.92
2.55
2.88
1.93
2.00
2.30
3.48
1.67
2.71
1.99
3.35
2.46
1.44
1.62
2.48
3.18
1.11
0.77
2.96
1.62
3.52
1.26
3.60
2.53
0.92
7.29
6.80
5.72
4.47
5.64
3.24
3.78
1.35
3.12
2.28
5.11
0.94
2.40
2.25
2.38
1.32
14.45
7.13
4.02
1.97
3.95
27.41
33.50
31.42
42.85
28.01
19.53
94.26
51.23
17.95
26.37
20.21
26.58
31.86
21.90
22.48
17.57
51.32
15.14
40.98
206.85
18.03
32.15
23.33
18.78
19.03
21.75
26.53
10.51
35.82
24.22
23.20
20.02
31.29
23.95
29.78
28.12
41.18
41.76
21.06
24.37
33.44
108.85
20.70
55.55
16.95
29.82
21.22
21.52
74.73
Country
LongTermRatingAdj.DefaultSpread
AbuDhabi
Aa2
0.50%
Albania
B1
4.50%
Andorra
A3
1.20%
Angola
Ba3
3.60%
Argentina
B3
6.50%
Armenia
Ba2
3.00%
Aruba
Baa1
1.60%
Australia
Aaa
0.00%
Austria
Aaa
0.00%
Azerbaijan
Baa3
2.20%
Bahamas
Baa1
1.60%
Bahrain
Baa2
1.90%
Bangladesh
Ba3
3.60%
Barbados
Ba1
2.50%
Belarus
B3
6.50%
Belgium
Aa3
0.60%
Belize
Caa2
9.00%
Benin
B2
5.50%
Bermuda
Aa3
0.60%
Bolivia
Ba3
3.60%
BosniaandHerzegovina
B3
6.50%
Botswana
A2
0.85%
Brazil
Baa2
1.90%
Bulgaria
Baa2
1.90%
BurkinaFaso
B2
5.50%
Cambodia
B2
5.50%
Cameroon
B2
5.50%
Canada
Aaa
0.00%
CapeVerde
B2
5.50%
CaymanIslands
Aa3
0.60%
Chile
Aa3
0.60%
China
Aa3
0.60%
Colombia
Baa3
2.20%
CookIslands
B1
4.50%
CostaRica
Baa3
2.20%
Croatia
Ba1
2.50%
Cuba
Caa1
7.50%
Curacao
B1
4.50%
Cyprus
Caa3
10.00%
CzechRepublic
A1
0.70%
DemocraticRepublicofCo
B3
6.50%
Denmark
Aaa
0.00%
DominicanRepublic
B1
4.50%
Ecuador
Caa1
7.50%
Egypt
Caa1
7.50%
ElSalvador
Estonia
Fiji
Finland
France
Gabon
Georgia
Germany
Ghana
Greece
Guatemala
Honduras
HongKong
Hungary
Iceland
India
Indonesia
Ireland
IsleofMan
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea
Kuwait
Latvia
Lebanon
Liechtenstein
Lithuania
Luxembourg
Macao
Macedonia
Malaysia
Malta
Mauritius
Mexico
Moldova
Mongolia
Montenegro
Montserrat
Morocco
Mozambique
Namibia
Ba3
A1
B1
Aaa
Aa1
Ba3
Ba3
Aaa
B1
Caa3
Ba1
B2
Aa1
Ba1
Baa3
Baa3
Baa3
Ba1
Aa1
A1
Baa2
Caa3
Aa3
B1
Baa2
B1
Aa3
Aa2
Baa2
B1
Aaa
Baa1
Aaa
Aa3
Ba3
A3
A3
Baa1
Baa1
B3
B1
Ba3
Baa3
Ba1
B1
Baa3
3.60%
0.70%
4.50%
0.00%
0.40%
3.60%
3.60%
0.00%
4.50%
10.00%
2.50%
5.50%
0.40%
2.50%
2.20%
2.20%
2.20%
2.50%
0.40%
0.70%
1.90%
10.00%
0.60%
4.50%
1.90%
4.50%
0.60%
0.50%
1.90%
4.50%
0.00%
1.60%
0.00%
0.60%
3.60%
1.20%
1.20%
1.60%
1.60%
6.50%
4.50%
3.60%
2.20%
2.50%
4.50%
2.20%
Netherlands
NewZealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
PapuaNewGuinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
RasAlKaminah
RepublicoftheCongo
Romania
Russia
Rwanda
SaudiArabia
Senegal
Serbia
Singapore
Slovakia
Slovenia
SouthAfrica
Spain
SriLanka
St.Maarten
St.Vincent&theGrenadin
Suriname
Sweden
Switzerland
Taiwan
Thailand
TrinidadandTobago
Tunisia
Turkey
Uganda
Ukraine
UnitedArabEmirates
UnitedKingdom
UnitedStatesofAmerica
Uruguay
Venezuela
Aaa
Aaa
B3
Ba3
Aaa
A1
Caa1
Baa2
B1
Ba3
Baa2
Baa3
A2
Ba3
Aa2
A2
Ba3
Baa3
Baa1
B2
Aa3
B1
B1
Aaa
A2
Ba1
Baa1
Baa3
B1
Baa1
B2
Ba3
Aaa
Aaa
Aa3
Baa1
Baa1
Ba3
Baa3
B1
Caa1
Aa2
Aa1
Aaa
Baa3
Caa1
0.00%
0.00%
6.50%
3.60%
0.00%
0.70%
7.50%
1.90%
4.50%
3.60%
1.90%
2.20%
0.85%
3.60%
0.50%
0.85%
3.60%
2.20%
1.60%
5.50%
0.60%
4.50%
4.50%
0.00%
0.85%
2.50%
1.60%
2.20%
4.50%
1.60%
5.50%
3.60%
0.00%
0.00%
0.60%
1.60%
1.60%
3.60%
2.20%
4.50%
7.50%
0.50%
0.40%
0.00%
2.20%
7.50%
Vietnam
Zambia
B2
B1
Region
Weighted
Africa
Asia
Australia & New Zealand
Caribbean
Central and South America
Eastern Europe & Russia
Middle East
North America
Western Europe
Global
5.50%
4.50%
AverageWeighted Average: TRP
3.36%
1.00%
0.00%
5.10%
2.42%
1.98%
0.76%
0.00%
0.86%
0.90%
10.04%
6.51%
5.00%
12.65%
8.62%
7.96%
6.14%
5.00%
6.29%
6.35%
TotalRiskPremium
5.75%
11.75%
6.80%
10.40%
14.75%
9.50%
7.40%
5.00%
5.00%
8.30%
7.40%
7.85%
10.40%
8.75%
14.75%
5.90%
18.50%
13.25%
5.90%
10.40%
14.75%
6.28%
7.85%
7.85%
13.25%
13.25%
13.25%
5.00%
13.25%
5.90%
5.90%
5.90%
8.30%
11.75%
8.30%
8.75%
16.25%
11.75%
20.00%
6.05%
14.75%
5.00%
11.75%
16.25%
16.25%
CountryRiskPremiumRegion
0.75%
Middle East
6.75%
1.80%
Western Europe
5.40%
Africa
9.75%
4.50%
2.40%
Caribbean
0.00%
0.00%
Western Europe
3.30%
2.40%
Caribbean
2.85%
Middle East
5.40%
Asia
3.75%
Caribbean
9.75%
0.90%
Western Europe
13.50%
8.25%
Africa
0.90%
Caribbean
5.40%
9.75%
1.28%
Africa
2.85%
2.85%
8.25%
Africa
8.25%
Asia
8.25%
Africa
0.00%
North America
8.25%
Africa
0.90%
Caribbean
0.90%
0.90%
Asia
3.30%
6.75%
3.30%
3.75%
11.25%
Caribbean
6.75%
Caribbean
15.00%
Western Europe
1.05%
9.75%
Africa
0.00%
Western Europe
6.75%
Caribbean
11.25%
11.25%
Africa
10.40%
6.05%
11.75%
5.00%
5.60%
10.40%
10.40%
5.00%
11.75%
20.00%
8.75%
13.25%
5.60%
8.75%
8.30%
8.30%
8.30%
8.75%
5.60%
6.05%
7.85%
20.00%
5.90%
11.75%
7.85%
11.75%
5.90%
5.75%
7.85%
11.75%
5.00%
7.40%
5.00%
5.90%
10.40%
6.80%
6.80%
7.40%
7.40%
14.75%
11.75%
10.40%
8.30%
8.75%
11.75%
8.30%
5.40%
1.05%
6.75%
0.00%
0.60%
5.40%
5.40%
0.00%
6.75%
15.00%
3.75%
8.25%
0.60%
3.75%
3.30%
3.30%
3.30%
3.75%
0.60%
1.05%
2.85%
15.00%
0.90%
6.75%
2.85%
6.75%
0.90%
0.75%
2.85%
6.75%
0.00%
2.40%
0.00%
0.90%
5.40%
1.80%
1.80%
2.40%
2.40%
9.75%
6.75%
5.40%
3.30%
3.75%
6.75%
3.30%

Asia
Western Europe
Western Europe
Africa
Western Europe
Africa
Western Europe
Asia
Western Europe
Asia
Asia
Western Europe
Western Europe
Middle East
Western Europe
Caribbean
Asia
Middle East
Africa
Asia
Middle East
Middle East
Western Europe
Western Europe
Asia
Asia
Western Europe
Asia
Asia
Caribbean
Africa
Africa
Africa
5.00%
5.00%
14.75%
10.40%
5.00%
6.05%
16.25%
7.85%
11.75%
10.40%
7.85%
8.30%
6.28%
10.40%
5.75%
6.28%
10.40%
8.30%
7.40%
13.25%
5.90%
11.75%
11.75%
5.00%
6.28%
8.75%
7.40%
8.30%
11.75%
7.40%
13.25%
10.40%
5.00%
5.00%
5.90%
7.40%
7.40%
10.40%
8.30%
11.75%
16.25%
5.75%
5.60%
5.00%
8.30%
16.25%
0.00%
0.00%
9.75%
5.40%
0.00%
1.05%
11.25%
2.85%
6.75%
5.40%
2.85%
3.30%
1.28%
5.40%
0.75%
1.28%
5.40%
3.30%
2.40%
8.25%
0.90%
6.75%
6.75%
0.00%
1.28%
3.75%
2.40%
3.30%
6.75%
2.40%
8.25%
5.40%
0.00%
0.00%
0.90%
2.40%
2.40%
5.40%
3.30%
6.75%
11.25%
0.75%
0.60%
0.00%
3.30%
11.25%
Western Europe
Africa
Western Europe
Middle East
Asia
Asia
Asia
Western Europe
Middle East
Middle East
Africa
Africa
Middle East
Africa
Asia
Africa
Western Europe
Asia
Caribbean
Caribbean
Western Europe
Western Europe
Asia
Asia
Caribbean
Africa
Western Europe
Africa
Middle East
Western Europe
North America
13.25%
11.75%
8.25%
6.75%
Weighted Average: CRP

5.04%
1.51%
0.00%
7.65%
3.62%
2.96%
1.14%
0.00%
1.29%
1.35%
Asia
Africa
Yes/No
Yes
No
Current Price
Estimated Value

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FCFF Valuation Model Damodaran

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FCFFVALUATIONMODEL

Look Up Table for Amortization Periods

Two-Stage FCFF Discount Model

Two-Stage FCFF Discount Model

Two-Stage FCFF Discount Model

Two-Stage FCFF Discount Model

Two-Stage FCFF Discount Model

Two-Stage FCFF Discount Model

Central and South America

Weighted Average: CRP

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