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ATT Project for Finance class
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S&P 500 Sample (X-value) (Y-value)(^GSPC) Firm XYZ Km Ks
Date Adj. Close* Adj. Close* (%) (%)
Date Volume Adj Close
### 1,848.36 34.25 2.36% -0.15%
### 1,805.81 34.3 2.80% -2.72%
### 1,756.54 35.26 4.46% 8.46%
### 1,681.55 32.51 2.97% -0.03%
### 1,632.97 32.52 -3.13% -4.07%
1-Jul-13 1,685.73 33.9 4.95% 0.89%
3-Jun-13 1,606.28 33.6 -1.50% 1.17%
### 1,630.74 33.21 2.08% -6.58%
1-Apr-13 1,597.57 35.55 1.81% 3.31%
### 1,569.19 34.41 3.60% 2.17%
### 1,514.68 33.68 1.11% 3.22%
2-Jan-13 1,498.11 32.63 5.04% 4.55%
### 1,426.19 31.21 0.71% -1.23%
### 1,416.18 31.6 0.28% -1.34%
### 1,412.16 32.03 -1.98% -7.19%
### 1,440.67 34.51 2.42% 2.89%
### 1,406.58 33.54 1.98% -3.37%
2-Jul-12 1,379.32 34.71 1.26% 7.66%
1-Jun-12 1,362.16 32.24 3.96% 4.37%
### 1,310.33 30.89 -6.27% 3.83%
2-Apr-12 1,397.91 29.75 -0.75% 6.86%
### 1,408.47 27.84 3.13% 2.09%
### 1,365.68 27.27 4.06% 4.00%
3-Jan-12 1,312.41 26.22 4.36% -1.32%
### 1,257.60 26.57 0.85% 4.36%
### 1,246.96 25.46 -0.51% -1.13%
### 1,253.30 25.75 10.77% 4.34%
### 1,131.42 24.68 -7.18% 0.16%
### 1,218.89 24.64 -5.68% -2.69%
1-Jul-11 1,292.28 25.32 -2.15% -5.56%
1-Jun-11 1,320.64 26.81 -1.83% -0.45%
### 1,345.20 26.93 -1.35% 1.39%
1-Apr-11 1,363.61 26.56 2.85% 3.11%
### 1,325.83 25.76 -0.10% 7.87%
### 1,327.22 23.88 3.20% 3.11%
3-Jan-11 1,286.12 23.16 2.26% -4.97%
### 1,257.64 24.37 6.53% 5.73%
### 1,180.55 23.05 -0.23% -2.54%
### 1,183.26 23.65 3.69% 1.15%
### 1,141.20 23.38 8.76% 5.79%
### 1,049.33 22.1 -4.74% 4.20%
1-Jul-10 1,101.60 21.21 6.88% 9.10%
1-Jun-10 1,030.71 19.44 -5.39% -0.41%
### 1,089.41 19.52 -8.20% -6.78%
1-Apr-10 1,186.69 20.94 1.48% 2.50%
### 1,169.43 20.43 5.88% 4.13%
### 1,104.49 19.62 2.85% -2.14%
4-Jan-10 1,073.87 20.05 -3.70% -8.15%
### 1,115.10 21.83 1.78% 4.00%
### 1,095.63 20.99 5.74% 4.95%
### 1,036.19 20 -1.98% -3.47%
### 1,057.08 20.72 3.57% 3.65%
### 1,020.62 19.99 3.36% -0.65%
1-Jul-09 987.48 20.12 7.41% 7.36%
1-Jun-09 919.32 18.74 0.02% 0.21%
### 919.14 18.7 5.31% -3.21%
1-Apr-09 872.81 19.32 9.39% 3.26%
### 797.87 18.71 8.54% 6.01%
### 735.09 17.65 -10.99% -3.45%
2-Jan-09 825.88 18.28 -8.57% -12.37%
### 903.25 20.86 0.78% -0.19%
### 896.24 20.9 -7.48% 6.69%
### 968.75 19.59 -16.94% -2.63%
### 1,166.36 20.12 -9.08% -12.71%
### 1,282.83 23.05 1.22% 3.83%
1-Jul-08 1,267.38 22.2 -0.99% -7.42%
2-Jun-08 1,280.00 23.98 -8.60% -15.56%
### 1,400.38 28.4 1.07% 3.09%
1-Apr-08 1,385.59 27.55 4.75% 2.11%
### 1,322.70 26.98 -0.60% 9.99%
### 1,330.63 24.53 -3.48% -9.52%
2-Jan-08 1,378.55 27.11
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.5334308596
R Square 0.2845484819
Adjusted R Square 0.2741796194
Standard Error 0.0453188075
Observations 71
ANOVA
df SS MS F
Regression 1 0.0563614427 0.056361 27.44259
Residual 69 0.1417118077 0.002054
Total 70 0.1980732504
Coefficients Standard Error t Stat P-value
Intercept 0.0017084144 0.0054091752 0.315836 0.75308
X Variable 1 0.5513801122 0.1052539784 5.238568 1.7E-006
(^TNX) rate on Dec. 31, 2013: 3.04%
Beta 0.55
RPm 6%
Ks = Krf + Beta * RPm = 6% This is just Ke
Number of common shares outstanding: 5,206,849
Stock price on Dec. 31, 2013: 35.16
Total market value of common equity
on Dec. 31, 2013: 183,072,828.07
Krf: 10-Year treasury note
Significance F
1.7E-006
Lower 95%Upper 95%Lower 95.0%Upper 95.0%
-0.009083 0.012499 -0.009083 0.012499
0.341404 0.761356 0.341404 0.761356
PERIOD ENDING 31-Dec-13Total Revenue 128,752,000.00 Cost of Revenue 51,464,000.00
Gross Profit 77,288,000.00
Operating ExpensesResearch DevelopmentSelling General and Administrative 28,414,000.00 Non RecurringOthers 18,395,000.00
Total Operating Expenses
Operating Income or Loss 30,479,000.00
Income from Continuing OperationsTotal Other Income/Expenses Net 596,000.00 Earnings Before Interest And Taxes 31,717,000.00 Interest Expense 3,940,000.00 Income Before Tax 27,777,000.00 Income Tax Expense 9,224,000.00 Minority Interest (304,000.00)
Net Income From Continuing Ops 18,891,000.00
Non-recurring EventsDiscontinued OperationsExtraordinary ItemsEffect Of Accounting ChangesOther Items
Net Income 18,249,000.00
18,249,000.00
PERIOD ENDING 31-Dec-13
Income Statement (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
AssetsCurrent Assets
Cash And Cash Equivalents 3,339,000.00 Short Term InvestmentsNet Receivables 14,117,000.00 InventoryOther Current Assets 5,740,000.00
Total Current Assets 23,196,000.00 Long Term Investments 3,860,000.00 Property Plant and Equipment 110,968,000.00 Goodwill 69,273,000.00 Intangible Assets 62,212,000.00 Accumulated AmortizationOther Assets 8,278,000.00
Total Assets 277,787,000.00
LiabilitiesCurrent Liabilities
Accounts Payable 29,497,000.00 Short/Current Long Term Debt 5,498,000.00 Other Current Liabilities
Total Current Liabilities 34,995,000.00 Long Term Debt 69,290,000.00 Other Liabilities 45,712,000.00
36,308,000.00 Minority Interest 494,000.00 Negative Goodwill
Total Liabilities 186,799,000.00
Stockholders' Equity Misc Stocks Options WarrantsRedeemable Preferred StockPreferred StockCommon Stock 6,495,000.00 Retained Earnings 31,141,000.00 Treasury Stock (45,619,000.00)Capital Surplus 91,091,000.00 Other Stockholder Equity 7,880,000.00
Total Stockholder Equity 90,988,000.00
Net Tangible Assets (40,497,000.00)
Kd
Deferred Long Term Asset Charges
Deferred Long Term Liability Charges
Interest expense / (Long term debt + short-term debt payable) =
Total long-term capital = Market value of equity + Long term debt =
WACC = Wd Kd (1-T) + We Ke =
Wd = Long term debt / total long-tern capital = We = Market value of equity / total long-term capital =T = Income tax expense / income before tax =
31-Dec-12 31-Dec-11127,434,000.00 126,723,000.00 55,228,000.00 54,904,000.00
72,206,000.00 71,819,000.00
41,066,000.00 41,314,000.00 2,910,000.00
18,143,000.00 18,377,000.00
12,997,000.00 9,218,000.00
134,000.00 249,000.00 13,883,000.00 10,251,000.00 3,444,000.00 3,535,000.00
10,439,000.00 6,716,000.00 2,900,000.00 2,532,000.00 (275,000.00) (240,000.00)
8,016,000.00 4,728,000.00
7,264,000.00 3,944,000.00
7,264,000.00 3,944,000.00
31-Dec-12 31-Dec-11
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
4,868,000.00 3,045,000.00
13,693,000.00 14,701,000.00
4,145,000.00 5,239,000.00
22,706,000.00 22,985,000.00 4,581,000.00 3,718,000.00
109,767,000.00 107,087,000.00 69,773,000.00 70,842,000.00 58,775,000.00 59,343,000.00
6,713,000.00 6,467,000.00
272,315,000.00 270,442,000.00
28,301,000.00 27,439,000.00 3,486,000.00 3,453,000.00
31,787,000.00 30,892,000.00 66,358,000.00 61,300,000.00 52,984,000.00 46,705,000.00 28,491,000.00 25,748,000.00
333,000.00 263,000.00
179,953,000.00 164,908,000.00
6,495,000.00 6,495,000.00 22,481,000.00 25,453,000.00
(32,888,000.00) (20,750,000.00)91,038,000.00 91,156,000.00 5,236,000.00 3,180,000.00
92,362,000.00 105,534,000.00
(36,186,000.00) (24,651,000.00)
2.5% check this from Morningstar.com
5.27%
252,362,828.07
27.46%72.54%33.21%
5.06%
Average revenue growth rate = 0.80%
% of sales 31-Dec-14 31-Dec-14129782743.464091 carry over 129782743.464091 carry over
39.97% 51876002.777712 carry over 51876002.777712 carry over
77906740.6863789 77906740.6863789
carry over carry over22.07% 28641472.5424745 carry over 28641472.5424745 carry over
carry over carry over18395000 carry over 18395000 carry over
30870268.1439044 30870268.1439044
596000 carry over 596000 carry over31466268.1439044 31466268.1439044
3940000 add 3084601.93247721 add 27526268.1439044 28381666.21142729140738.64561955 9424793.50304945
-304000 carry over -304000 carry over
18081529.4982849 18652872.7083778
carry over carry over carry over carry over carry over carry over carry over carry over
18081529.4982849 18652872.7083778
carry over carry over
18081529.4982849 18652872.7083778
31-Dec-14 31-Dec-14
2.59% 3365730.86574655 carry over 3365730.86574655 carry overcarry over carry over
10.96% 14230015.7627266 carry over 14230015.7627266 carry overcarry over carry over
5740000 carry over 5740000 carry over
23335746.6284731 23335746.62847313860000 carry over 3860000 carry over
86.19% 111856370.982379 carry over 111856370.982379 carry over53.80% 69827575.4006771 carry over 69827575.4006771 carry over48.32% 62710047.5051885 carry over 62710047.5051885 carry over
carry over carry over8278000 carry over 8278000 carry over
carry over carry over
279867740.516718 279867740.516718
22.91% 29733142.6615531 carry over 29733142.6615531 carry over5498000 add 4304350.61542124 add
carry over carry over
35231142.6615531 34037493.276974469290000 add 54246717.7414583 add 45712000 carry over 45712000 carry over36308000 carry over 36308000 carry over
494000 carry over 494000 carry overcarry over carry over
187035142.661553 170798211.018433
carry over carry overcarry over carry overcarry over carry over
6495000 carry over 6495000 carry over49,222,529.50 add 49793872.7083778 add
-45619000 carry over -45619000 carry over91091000 carry over 91091000 carry over7880000 carry over 7880000 carry over
109069529.498285 109640872.708378
-39705025.050701 -23468093.407581
296104672.159838 280439083.72681
Forecasted total assets = 279,867,740.52 279,867,740.52
Forecasted total claims = 296,104,672.16 280,439,083.73
Forecasted AFN = (16,236,931.64) (571,343.21)
Additional short/current long term debt = (1,193,649.38) (42,001.99)
Additional long-term debt = (15,043,282.26) (529,341.22)
Additional interest expense = (855,398.07) (30,099.64)
31-Dec-14 31-Dec-14129782743.464091 carry over 129782743.46409151876002.777712 carry over 51876002.777712
77906740.6863789 77906740.6863789
carry over28641472.5424745 carry over 28641472.5424745
carry over18395000 carry over 18395000
30870268.1439044 30870268.1439044
596000 carry over 59600031466268.1439044 31466268.14390443054502.28751055 add 3053443.1448008428411765.8563939 28412824.99910369434788.79142373 9435140.50443645
-304000 carry over -304000
18672977.0649701 18673684.4946671
carry over carry over carry over carry over
18672977.0649701 18673684.4946671
carry over
18672977.0649701 18673684.4946671
31-Dec-14 31-Dec-14
3365730.86574655 carry over 3365730.86574655carry over
14230015.7627266 carry over 14230015.7627266carry over
5740000 carry over 5740000
23335746.6284731 23335746.62847313860000 carry over 3860000
111856370.982379 carry over 111856370.98237969827575.4006771 carry over 69827575.400677162710047.5051885 carry over 62710047.5051885
carry over8278000 carry over 8278000
carry over
279867740.516718 279867740.516718
29733142.6615531 carry over 29733142.66155314262348.6235363 add 4260870.66246575
carry over
33995491.2850894 33994013.324018953717376.5232503 add 53698750.1277285
45712000 carry over 4571200036308000 carry over 36308000
494000 carry over 494000carry over
170226867.80834 170206763.451747
carry overcarry overcarry over
6495000 carry over 649500049813977.0649701 add 49814684.4946671
-45619000 carry over -4561900091091000 carry over 910910007880000 carry over 7880000
109660977.06497 109661684.494667
-22896750.1974878 -22876645.8408954
279887844.87331 279868447.946415
279,867,740.52 279,867,740.52
279,887,844.87 279,868,447.95
(20,104.36) (707.43)
(1,477.96) (52.01)
(18,626.40) (655.42)
(1,059.14) (37.27)
PERIOD ENDING 31-Dec-14 31-Dec-13Total Revenue 129,782,743.46 128,752,000.00 Cost of Revenue 51,876,002.78 51,464,000.00
Gross Profit 77,906,740.69 77,288,000.00
Research DevelopmentSelling General and Administrative 28,641,472.54 28,414,000.00 Non RecurringOthers 18,395,000.00 18,395,000.00
Total Operating Expenses
Operating Income or Loss 30,870,268.14 30,479,000.00
Total Other Income/Expenses Net 596,000.00 596,000.00 Earnings Before Interest And Taxes 31,466,268.14 31,717,000.00 Interest Expense 3,053,443.14 3,940,000.00 Income Before Tax 28,412,825.00 27,777,000.00 Income Tax Expense 9,435,140.50 9,224,000.00 Minority Interest (304,000.00) (304,000.00)
Net Income From Continuing Ops 18,673,684.49 18,891,000.00
Discontinued OperationsExtraordinary ItemsEffect Of Accounting ChangesOther Items
Net Income 18,673,684.49 18,249,000.00 Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares 18,673,684.49 18,249,000.00
PERIOD ENDING 31-Dec-14 31-Dec-13
Cash And Cash Equivalents 3,365,730.87 3,339,000.00 Short Term InvestmentsNet Receivables 14,230,015.76 14,117,000.00 Inventory
Income Statement (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Other Current Assets 5,740,000.00 5,740,000.00
Total Current Assets 23,335,746.63 23,196,000.00 Long Term Investments 3,860,000.00 3,860,000.00 Property Plant and Equipment 111,856,370.98 110,968,000.00 Goodwill 69,827,575.40 69,273,000.00 Intangible Assets 62,710,047.51 62,212,000.00 Accumulated AmortizationOther Assets 8,278,000.00 8,278,000.00 Deferred Long Term Asset Charges
Total Assets 279,867,740.52 277,787,000.00
Accounts Payable 29,733,142.66 29,497,000.00 Short/Current Long Term Debt 4,260,870.66 5,498,000.00 Other Current Liabilities
Total Current Liabilities 33,994,013.32 34,995,000.00 Long Term Debt 53,698,750.13 69,290,000.00 Other Liabilities 45,712,000.00 45,712,000.00 Deferred Long Term Liability Charges 36,308,000.00 36,308,000.00 Minority Interest 494,000.00 494,000.00 Negative Goodwill
Total Liabilities 170,206,763.45 186,799,000.00
Misc Stocks Options WarrantsRedeemable Preferred StockPreferred StockCommon Stock 6,495,000.00 6,495,000.00 Retained Earnings 49,814,684.49 31,141,000.00 Treasury Stock (45,619,000.00) (45,619,000.00)Capital Surplus 91,091,000.00 91,091,000.00 Other Stockholder Equity 7,880,000.00 7,880,000.00
Total Stockholder Equity 109,661,684.49 90,988,000.00
Net Tangible Assets (22,876,645.84) (40,497,000.00)
Average revenue growth rate =
31-Dec-12 % of sales 31-Dec-15127,434,000.00 130978760.10981855,228,000.00 39.97% 52354067.5895649
72,206,000.00 78624692.5202528
41,066,000.00 22.07% 28905418.8654185
18,143,000.00 18395000
12,997,000.00 31324273.6548343
134,000.00 59600013,883,000.00 31920273.65483433,444,000.00 3053443.14480084
10,439,000.00 28866830.51003352,900,000.00 9585903.61178489 (275,000.00) -304000
8,016,000.00 18976926.8982486
7,264,000.00 18976926.8982486
7,264,000.00 18976926.8982486
31-Dec-12 31-Dec-15
4,868,000.00 2.59% 3396747.85639587
13,693,000.00 10.96% 14361152.8867147
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
4,145,000.00 5740000
22,706,000.00 23497900.74311064,581,000.00 3860000
109,767,000.00 86.19% 112887186.62130569,273,000.00 53.80% 70471073.45196558,775,000.00 48.32% 63287953.7712189
6,713,000.00 8278000
272,315,000.00 282282114.587599
28,301,000.00 22.91% 30007149.30221893,486,000.00 4260870.66246575
31,787,000.00 34268019.964684766,358,000.00 53698750.127728552,984,000.00 4571200028,491,000.00 36308000
333,000.00 494000
179,953,000.00 170480770.092413
6,495,000.00 649500022,481,000.00 68791611.3929157
(32,888,000.00) -4561900091,038,000.00 910910005,236,000.00 7880000
92,362,000.00 128638611.392916
(36,186,000.00) -21957682.7279978
299119381.485329
Forecasted total assets = 282,282,114.59
Forecasted total claims = 299,119,381.49
Forecasted AFN = (16,837,266.90)
Additional short/current long term debt = (1,237,782.71)
Additional long-term debt = (15,599,484.19)
Additional interest expense = (887,025.08)
Average revenue growth rate = 0.92%
31-Dec-15 31-Dec-15 carry over 130978760.109818 carry over 130978760.109818 carry over carry over 52354067.5895649 carry over 52354067.5895649 carry over
78624692.5202528 78624692.5202528
carry over carry over carry over carry over 28905418.8654185 carry over 28905418.8654185 carry over carry over carry over carry over carry over 18395000 carry over 18395000 carry over
31324273.6548343 31324273.6548343
carry over 596000 carry over 596000 carry over31920273.6548343 31920273.6548343
add 2166418.06621799 add 2135205.53376607 add 29753855.5886163 29785068.12106829880460.95508504 9890825.80367691
carry over -304000 carry over -304000 carry over
19569394.6335313 19590242.3173913
carry over carry over carry over carry over carry over carry over carry over carry over carry over carry over carry over carry over
19569394.6335313 19590242.3173913carry over carry over carry over
19569394.6335313 19590242.3173913
31-Dec-15 31-Dec-15
carry over 3396747.85639587 carry over 3396747.85639587 carry overcarry over carry over carry overcarry over 14361152.8867147 carry over 14361152.8867147 carry overcarry over carry over carry over
carry over 5740000 carry over 5740000 carry over
23497900.7431106 23497900.7431106carry over 3860000 carry over 3860000 carry overcarry over 112887186.621305 carry over 112887186.621305 carry overcarry over 70471073.451965 carry over 70471073.451965 carry overcarry over 63287953.7712189 carry over 63287953.7712189 carry overcarry over carry over carry overcarry over 8278000 carry over 8278000 carry overcarry over carry over carry over
282282114.587599 282282114.587599
carry over 30007149.3022189 carry over 30007149.3022189 carry overadd 3023087.95128592 add 2979533.00117916 add
carry over carry over carry over
33030237.2535048 32986682.3033981add 38099265.9411788 add 37550353.1560029 add
carry over 45712000 carry over 45712000 carry overcarry over 36308000 carry over 36308000 carry overcarry over 494000 carry over 494000 carry overcarry over carry over carry over
153643503.194684 153051035.459401
carry over carry over carry overcarry over carry over carry overcarry over carry over carry overcarry over 6495000 carry over 6495000 carry over
add 69384079.1281984 add 69404926.8120584 add carry over -45619000 carry over -45619000 carry overcarry over 91091000 carry over 91091000 carry overcarry over 7880000 carry over 7880000 carry over
129231079.128198 129251926.812058
-5120415.83026824 -4527948.09498552
282874582.322882 282302962.271459
282,282,114.59 282,282,114.59
282,874,582.32 282,302,962.27
(592,467.74) (20,847.68)
(43,554.95) (1,532.61)
(548,912.79) (19,315.08)
(31,212.53) (1,098.30)
31-Dec-15130978760.10981852354067.5895649
78624692.5202528
28905418.8654185
18395000
31324273.6548343
59600031920273.65483432134107.2309045429786166.42392989891190.5207304
-304000
19590975.9031994
19590975.9031994
19590975.9031994
31-Dec-15
3396747.85639587
14361152.8867147
5740000
23497900.74311063860000
112887186.62130570471073.451965
63287953.7712189
8278000
282282114.587599
30007149.30221892978000.39480029
32985149.697019237531038.0785217
4571200036308000
494000
153030187.775541
649500069405660.3978665
-45619000910910007880000
129252660.397867
-4507100.41112546
282282848.173407
282,282,114.59
282,282,848.17
(733.59)
(53.93)
(679.66)
(38.65)
PERIOD ENDING 31-Dec-15 31-Dec-14Total Revenue 130,978,760.11 129,782,743.46 Cost of Revenue 52,354,067.59 51,876,002.78
Gross Profit 78,624,692.52 77,906,740.69
Research DevelopmentSelling General and Administrative 28,905,418.87 28,641,472.54 Non RecurringOthers 18,395,000.00 18,395,000.00
Total Operating Expenses
Operating Income or Loss 31,324,273.65 30,870,268.14
Total Other Income/Expenses Net 596,000.00 596,000.00 Earnings Before Interest And Taxes 31,920,273.65 31,466,268.14 Interest Expense 2,134,107.23 3,053,443.14 Income Before Tax 29,786,166.42 28,412,825.00 Income Tax Expense 9,891,190.52 9,435,140.50 Minority Interest (304,000.00) (304,000.00)
Net Income From Continuing Ops 19,590,975.90 18,673,684.49
Discontinued OperationsExtraordinary ItemsEffect Of Accounting ChangesOther Items
Net Income 19,590,975.90 18,673,684.49 Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares 19,590,975.90 18,673,684.49
PERIOD ENDING 31-Dec-15 31-Dec-14
Cash And Cash Equivalents 3,396,747.86 3,365,730.87 Short Term InvestmentsNet Receivables 14,361,152.89 14,230,015.76 Inventory
Income Statement (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Other Current Assets 5,740,000.00 5,740,000.00
Total Current Assets 23,497,900.74 23,335,746.63 Long Term Investments 3,860,000.00 3,860,000.00 Property Plant and Equipment 112,887,186.62 111,856,370.98 Goodwill 70,471,073.45 69,827,575.40 Intangible Assets 63,287,953.77 62,710,047.51 Accumulated AmortizationOther Assets 8,278,000.00 8,278,000.00 Deferred Long Term Asset Charges
Total Assets 282,282,114.59 279,867,740.52
Accounts Payable 30,007,149.30 29,733,142.66 Short/Current Long Term Debt 2,978,000.39 4,260,870.66 Other Current Liabilities
Total Current Liabilities 32,985,149.70 33,994,013.32 Long Term Debt 37,531,038.08 53,698,750.13 Other Liabilities 45,712,000.00 45,712,000.00 Deferred Long Term Liability Charges 36,308,000.00 36,308,000.00 Minority Interest 494,000.00 494,000.00 Negative Goodwill
Total Liabilities 153,030,187.78 170,206,763.45
Misc Stocks Options WarrantsRedeemable Preferred StockPreferred StockCommon Stock 6,495,000.00 6,495,000.00 Retained Earnings 69,405,660.40 49,814,684.49 Treasury Stock (45,619,000.00) (45,619,000.00)Capital Surplus 91,091,000.00 91,091,000.00 Other Stockholder Equity 7,880,000.00 7,880,000.00
Total Stockholder Equity 129,252,660.40 109,661,684.49
Net Tangible Assets (4,507,100.41) (22,876,645.84)
Average revenue growth rate =
31-Dec-13 % of sales 31-Dec-16128,752,000.00 132111396.02322551,464,000.00 39.97% 52806798.2240216
77,288,000.00 79304597.7992029
28,414,000.00 22.07% 29155377.831831
18,395,000.00 18395000
30,479,000.00 31754219.9673719
596,000.00 59600031,717,000.00 32350219.96737193,940,000.00 2134107.23090454
27,777,000.00 30216112.73646749,224,000.00 10033964.2107202 (304,000.00) -304000
18,891,000.00 19878148.5257472
18,249,000.00 19878148.5257472
18,249,000.00 19878148.5257472
31-Dec-13 31-Dec-16
3,339,000.00 2.59% 3426121.15789694
14,117,000.00 10.96% 14485340.6367269
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
5,740,000.00 5740000
23,196,000.00 23651461.79462383,860,000.00 3860000
110,968,000.00 86.19% 113863376.05555869,273,000.00 53.80% 71080470.491462962,212,000.00 48.32% 63835234.943122
8,278,000.00 8278000
277,787,000.00 284568543.284767
29,497,000.00 22.91% 30266635.45806715,498,000.00 2978000.39480029
34,995,000.00 33244635.852867469,290,000.00 37531038.078521745,712,000.00 4571200036,308,000.00 36308000
494,000.00 494000
186,799,000.00 153289673.931389
6,495,000.00 649500031,141,000.00 89283808.9236137
(45,619,000.00) -4561900091,091,000.00 910910007,880,000.00 7880000
90,988,000.00 149130808.923614
(40,497,000.00) -3636836.08120742
302420482.855003
Forecasted total assets = 284,568,543.28
Forecasted total claims = 302,420,482.86
Forecasted AFN = (17,851,939.57)
Additional short/current long term debt = (1,312,375.83)
Additional long-term debt = (16,539,563.74)
Additional interest expense = (940,480.32)
Average revenue growth rate = 0.86%
31-Dec-16 31-Dec-16 carry over 132111396.023225 carry over 132111396.023225 carry over carry over 52806798.2240216 carry over 52806798.2240216 carry over
79304597.7992029 79304597.7992029
carry over carry over carry over carry over 29155377.831831 carry over 29155377.831831 carry over carry over carry over carry over carry over 18395000 carry over 18395000 carry over
31754219.9673719 31754219.9673719
carry over 596000 carry over 596000 carry over32350219.9673719 32350219.9673719
add 1193626.91445363 add 1160533.40548034 add 31156593.0529183 31189686.561891610346272.6111574 10357262.0818263
carry over -304000 carry over -304000 carry over
20506320.4417609 20528424.4800653
carry over carry over carry over carry over carry over carry over carry over carry over carry over carry over carry over carry over
20506320.4417609 20528424.4800653carry over carry over carry over
20506320.4417609 20528424.4800653
31-Dec-16 31-Dec-16
carry over 3426121.15789694 carry over 3426121.15789694 carry overcarry over carry over carry overcarry over 14485340.6367269 carry over 14485340.6367269 carry overcarry over carry over carry over
carry over 5740000 carry over 5740000 carry over
23651461.7946238 23651461.7946238carry over 3860000 carry over 3860000 carry overcarry over 113863376.055558 carry over 113863376.055558 carry overcarry over 71080470.4914629 carry over 71080470.4914629 carry overcarry over 63835234.943122 carry over 63835234.943122 carry overcarry over carry over carry overcarry over 8278000 carry over 8278000 carry overcarry over carry over carry over
284568543.284767 284568543.284767
carry over 30266635.4580671 carry over 30266635.4580671 carry overadd 1665624.56235179 add 1619444.83840886 add
carry over carry over carry over
31932260.0204189 31886080.296476add 20991474.340734 add 20409482.1486632 add
carry over 45712000 carry over 45712000 carry overcarry over 36308000 carry over 36308000 carry overcarry over 494000 carry over 494000 carry overcarry over carry over carry over
135437734.361153 134809562.445139
carry over carry over carry overcarry over carry over carry overcarry over carry over carry overcarry over 6495000 carry over 6495000 carry over
add 89911980.8396274 add 89934084.8779318 add carry over -45619000 carry over -45619000 carry overcarry over 91091000 carry over 91091000 carry overcarry over 7880000 carry over 7880000 carry over
149758980.839627 149781084.877932
14215103.4890288 14843275.4050425
285196715.20078 284590647.323071
284,568,543.28 284,568,543.28
285,196,715.20 284,590,647.32
(628,171.92) (22,104.04)
(46,179.72) (1,624.97)
(581,992.19) (20,479.07)
(33,093.51) (1,164.49)
31-Dec-16132111396.02322552806798.2240216
79304597.7992029
29155377.831831
18395000
31754219.9673719
59600032350219.96737191159368.9150417831190851.052330210357648.7780068
-304000
20529202.2743234
20529202.2743234
20529202.2743234
31-Dec-16
3426121.15789694
14485340.6367269
5740000
23651461.79462383860000
113863376.05555871080470.491462963835234.943122
8278000
284568543.284767
30266635.45806711617819.87180195
31884455.32986920389003.0769657
4571200036308000494000
134787458.406835
649500089934862.6721899
-45619000910910007880000
149781862.67219
14865379.4433469
284569321.079025
284,568,543.28
284,569,321.08
(777.79)
(57.18)
(720.62)
(40.98)
PERIOD ENDING 31-Dec-16Total Revenue 132111396.023225Cost of Revenue 52806798.2240216
Gross Profit 79304597.7992029
Research DevelopmentSelling General and Administrative 29155377.831831Non RecurringOthers 18395000
Total Operating Expenses
Operating Income or Loss 31754219.967372
Total Other Income/Expenses Net 596000Earnings Before Interest And Taxes 32350219.967372Interest ExpenseIncome Before Tax 32350219.967372Income Tax Expense 10742644.237284Minority Interest -304000
Net Income From Continuing Ops 21303575.7300879
Discontinued OperationsExtraordinary ItemsEffect Of Accounting ChangesOther Items
Net Income 21303575.7300879Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares 21303575.7300879
PERIOD ENDING 2016
Cash And Cash Equivalents 3426121.15789694Short Term Investments -21231671.698745Net Receivables 14485340.6367269InventoryOther Current Assets 5740000
Income Statement (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
Total Current Assets 2419790.09587878Long Term Investments 3860000Property Plant and Equipment 113863376.055558Goodwill 71080470.4914629Intangible Assets 63835234.943122Accumulated AmortizationOther Assets 8278000Deferred Long Term Asset Charges
Total Assets 263336871.586021
Accounts Payable 30266635.4580671Short/Current Long Term DebtOther Current Liabilities
Total Current Liabilities 30266635.4580671Long Term DebtOther Liabilities 45712000Deferred Long Term Liability Charges 36308000Minority Interest 494000Negative Goodwill
Total Liabilities 112780635.458067
Misc Stocks Options WarrantsRedeemable Preferred StockPreferred StockCommon Stock 6495000Retained Earnings 90709236.1279544Treasury Stock -45619000Capital Surplus 91091000Other Stockholder Equity 7880000
Total Stockholder Equity 150556236.127954
Net Tangible Assets 15640530.6933695
EBIT 32350219.967372Tax Rate 33.21%Unlevered Net Income 21,607,575.73
Operating Current Assets 23,651,461.79 Operating Current Liability 30,266,635.46 Net Operating Working Capital (6,615,173.66)Change in New Operating Working Capital (105,925.10)
Capital expenditure - Depreciation 976,189.43
FCF 20,737,311.40
Average growth rate of FCF 2.00%Horizon Value 691243713.339Adjusted FCF 711,981,024.74
Enterprise Value
Please finish the following steps by yourself:
Intrinsic Value of Equity
Total Numbers of Common Stocks Outstanding
Intrinsic Value of Stock Per Share
Actual Stock Price at the End of Year 2013
Conclusion: Was the Stock Overvalued or Undervalued?
Scenario Analysis:
Average growth rate of FCF 1.0%Intrinsic Value of Equity 428,580,606.66 Total Numbers of Common Stocks Outstanding 5,206,849Intrinsic Value of Stock Per Share $82.31 Actual Stock Price at the End of Year 2013 35.16Conclusion: Was the Stock Overvalued or Undervalued? UNDERVALUED
Multiples Analysis:
Industry Value/EBIT Multiple
Total Enterprise Value based on multiples
Intrinsic Value of Equity based on multiples
Average growth rate of FCF to achieve the multiples results:
Total Numbers of Common Stocks Outstanding
Intrinsic Value of Stock Per Share
Actual Stock Price at the End of Year 2013
Conclusion: Was the Stock Overvalued or Undervalued?
31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12130978760.109818 129782743.464091 128752000.00 127434000.0052354067.5895649 51876002.777712 51464000.00 55228000.00
78624692.5202528 77906740.686379 77288000.00 72206000.00
28905418.8654185 28641472.5424745 28414000.00 41066000.00
18395000 18395000 18395000.00 18143000.00
31324273.6548343 30870268.1439044 30479000.00 12997000.00
596000 596000 596000.00 134000.0031920273.6548343 31466268.1439044 31717000.00 13883000.002134107.23090454 3053443.14480084 3940000.00 3444000.0029786166.4239298 28412824.9991036 27777000.00 10439000.00
9891190.5207304 9435140.50443646 9224000.00 2900000.00-304000 -304000 -304000.00 -275000.00
19590975.9031994 18673684.4946671 18891000.00 8016000.00
19590975.9031994 18673684.4946671 18249000.00 7264000.00
19590975.9031994 18673684.4946671 18249000.00 7264000.00
2015 2014 2013 2012
3396747.85639587 3365730.86574655 3339000.00 4868000.00
14361152.8867147 14230015.7627266 14117000.00 13693000.00
5740000 5740000 5740000.00 4145000.00
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
(you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
23497900.7431106 23335746.6284731 23196000.00 22706000.003860000 3860000 3860000.00 4581000.00
112887186.621305 111856370.982379 110968000.00 109767000.0070471073.451965 69827575.4006771 69273000.00 69773000.00
63287953.7712189 62710047.5051885 62212000.00 58775000.00
8278000 8278000 8278000.00 6713000.00
282282114.587599 279867740.516718 277787000.00 272315000.00
30007149.3022189 29733142.6615531 29497000.00 28301000.002978000.39480029 4260870.66246575 5498000.00 3486000.00
32985149.6970192 33994013.3240189 34995000.00 31787000.0037531038.0785217 53698750.1277285 69290000.00 66358000.00
45712000 45712000 45712000.00 52984000.0036308000 36308000 36308000.00 28491000.00
494000 494000 494000.00 333000.00
153030187.775541 170206763.451747 186799000.00 179953000.00
6495000 6495000 6495000.00 6495000.0069405660.3978665 49814684.4946671 31141000.00 22481000.00
-45619000 -45619000 -45619000.00 -32888000.0091091000 91091000 91091000.00 91038000.00
7880000 7880000 7880000.00 5236000.00
129252660.397867 109661684.494667 90988000.00 92362000.00
-4507100.41112544 -22876645.8408954 -40497000.00 -36186000.00
31920273.6548343 31466268.1439044 31,717,000.00 1388300033.21% 33.21% 33.21% 27.78%
21,320,403.11 21,017,160.70 21,184,631.21 10,026,241.69
23,497,900.74 23,335,746.63 23,196,000.00 22,706,000.00 30,007,149.30 29,733,142.66 29,497,000.00 28,301,000.00 (6,509,248.56) (6,397,396.03) (6,301,000.00) (5,595,000.00) (111,852.53) (96,396.03) (706,000.00) (1,141,000.00)
1,030,815.64 888,370.98 1,201,000.00 2,680,000.00
20,401,439.99 20,225,185.75 20,689,631.21 8,487,241.69
20,401,439.99 20,225,185.75
$651,649,957.99
$580,200,957.99 5,206,849$111.43
35.16UNDERVALUED
3% 3.5% 4%$876,599,587.79 $1,167,670,022.39 1,732,370,216.36
5,206,849 5,206,849 5,206,849$168.36 $224.26 $332.71
35.16 35.16 35.16UNDERVALUED UNDERVALUED UNDERVALUED
9.47300,359,990.00 228,910,990.00
-2.4%5,206,849
$43.96 35.16
UNDERVALUED
31-Dec-11126723000.0054904000.00
71819000.00
41314000.002910000.00
18377000.00
9218000.00
249000.0010251000.003535000.006716000.002532000.00-240000.00
4728000.00
3944000.00
3944000.00
2011
3045000.00
14701000.00
5239000.00
22985000.003718000.00
107087000.0070842000.0059343000.00
6467000.00
270442000.00
27439000.003453000.00
30892000.0061300000.0046705000.0025748000.00
263000.00
164908000.00
6495000.0025453000.00-20750000.0091156000.003180000.00
105534000.00
-24651000.00
1025100037.70%
6,386,269.21
22,985,000.00 27,439,000.00 (4,454,000.00)
FCF
Page 1
2016 2015 2014 2013 2012-10000000
-5000000
0
5000000
10000000
15000000
20000000
25000000
Unlevered Net Income
Net Operating Working Capital
FCF
FCF
Page 2
2016 2015 2014 2013 2012-10000000
-5000000
0
5000000
10000000
15000000
20000000
25000000
Unlevered Net Income
Net Operating Working Capital
FCF
Net_New_Financing
Page 3
PERIOD ENDING 2016 2015 2014 2013 20120
50000000
100000000
150000000
200000000
250000000
300000000
Total Assets
Total Liabilities
Total Stockholder Equity
Net_New_Financing
Page 4
PERIOD ENDING 2016 2015 2014 2013 20120
50000000
100000000
150000000
200000000
250000000
300000000
Total Assets
Total Liabilities
Total Stockholder Equity
SuggestionSuggestion
• In this scenario AT&T should start with 1% FCF growth rate, and instrinsic stock price per share is worth only $43.96/share, and its an undervaluation at the end of 2013.
• --> The reason is given the competitive pressures and chanllenges AT&T currently faces such as the shrinking wireline business, a decreasing growth rate in wireless, increased competition, a difficult regulatory environment, spectrum constraints, higher than expected capital expenditures, and the exclusivity loss of the iPhone, --> therefore, a negative percent annual growth rate in FCF is not unreasonable.
• In this scenario AT&T should start with 1% FCF growth rate, and instrinsic stock price per share is worth only $43.96/share, and its an undervaluation at the end of 2013.
• --> The reason is given the competitive pressures and chanllenges AT&T currently faces such as the shrinking wireline business, a decreasing growth rate in wireless, increased competition, a difficult regulatory environment, spectrum constraints, higher than expected capital expenditures, and the exclusivity loss of the iPhone, --> therefore, a negative percent annual growth rate in FCF is not unreasonable.How to increase its equity value in future?How to increase its equity value in future?
• Increase revenue Minimum revenue to pay debt • Stock repurchase• Improve Effective Tax Rate (ETR) reconciliations--> relationship
between tax administrations and firm policy --> Better firms’ tax planning activities.
• Shareholders should pay a premium for such shares • Improved adoption of corporate governance principles by firms• Changing firms’ governance strategies• Debt should be paid down• Increase the dividend payout beyond what was expected in the
market place --> increase the value of equity while decreasing the value of debt (while also increasing the credit risk of the firm). --> will be stronger for highly levered companies . AT&T’sdividend policy makes them solid investment, and reflects the good health of the company
• Increase revenue Minimum revenue to pay debt • Stock repurchase• Improve Effective Tax Rate (ETR) reconciliations--> relationship
between tax administrations and firm policy --> Better firms’ tax planning activities.
• Shareholders should pay a premium for such shares • Improved adoption of corporate governance principles by firms• Changing firms’ governance strategies• Debt should be paid down• Increase the dividend payout beyond what was expected in the
market place --> increase the value of equity while decreasing the value of debt (while also increasing the credit risk of the firm). --> will be stronger for highly levered companies . AT&T’sdividend policy makes them solid investment, and reflects the good health of the company
SuggestionSuggestion
• In this scenario AT&T should start with 1% FCF growth rate, and instrinsic stock price per share is worth only $43.96/share, and its an undervaluation at the end of 2013.
• --> The reason is given the competitive pressures and chanllenges AT&T currently faces such as the shrinking wireline business, a decreasing growth rate in wireless, increased competition, a difficult regulatory environment, spectrum constraints, higher than expected capital expenditures, and the exclusivity loss of the iPhone, --> therefore, a negative percent annual growth rate in FCF is not unreasonable.
• In this scenario AT&T should start with 1% FCF growth rate, and instrinsic stock price per share is worth only $43.96/share, and its an undervaluation at the end of 2013.
• --> The reason is given the competitive pressures and chanllenges AT&T currently faces such as the shrinking wireline business, a decreasing growth rate in wireless, increased competition, a difficult regulatory environment, spectrum constraints, higher than expected capital expenditures, and the exclusivity loss of the iPhone, --> therefore, a negative percent annual growth rate in FCF is not unreasonable.How to increase its equity value in future?How to increase its equity value in future?
• Increase revenue Minimum revenue to pay debt • Stock repurchase• Improve Effective Tax Rate (ETR) reconciliations--> relationship
between tax administrations and firm policy --> Better firms’ tax planning activities.
• Shareholders should pay a premium for such shares • Improved adoption of corporate governance principles by firms• Changing firms’ governance strategies• Debt should be paid down• Increase the dividend payout beyond what was expected in the
market place --> increase the value of equity while decreasing the value of debt (while also increasing the credit risk of the firm). --> will be stronger for highly levered companies . AT&T’sdividend policy makes them solid investment, and reflects the good health of the company
• Increase revenue Minimum revenue to pay debt • Stock repurchase• Improve Effective Tax Rate (ETR) reconciliations--> relationship
between tax administrations and firm policy --> Better firms’ tax planning activities.
• Shareholders should pay a premium for such shares • Improved adoption of corporate governance principles by firms• Changing firms’ governance strategies• Debt should be paid down• Increase the dividend payout beyond what was expected in the
market place --> increase the value of equity while decreasing the value of debt (while also increasing the credit risk of the firm). --> will be stronger for highly levered companies . AT&T’sdividend policy makes them solid investment, and reflects the good health of the company