Kristin Kandy

8/13/2019 Kristin Kandy

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FCFF VALUATION MODELBefore you start The spreadsheet has circular reasoning. This is not a problem. Go into calculation options (in excel) and c

the iteration box.

What the model This model is designed to value firms with operating income that is either positive or can be normalized t

positive. It allows for up to 15 years of high growth, and can be used either as a 2-stage or a 3-stage mode

Inputs The inputs are in the following pages:

financial statements, and review and change the inputs for the valuation.

3. If you have R&D or operating leases, you will need to input the required numbers in those worksheets.

Important: Be consistent about the units you use. If you use millions, use millions for all of your inputs.

Options The spreadsheet can be used to value a company, with fixed inputs for a high growth phase and different i

for a stable growth phase (2-stage model) or it can be adjusted to allow for a transition phase (3-stage mo

To switch from one to the other, enter yes in the master input page to the question of whether you want th

inputs adjusted during the second half of the high growth phase.

You can even make it a stable growth model, by setting the length of the high growth period to zero.

Other worksheets There are two other worksheets that you might find useful at the end of this spreadsheet

1. Bottom-up beta estimator: will estimate your levered beta, given an unlevered beta (which you will havinput.

2. Industry averages: Here, you can look up industry averages for variables such as beta, return on capital,

reinvestment rates and working capital.

Output The output is contained in the valuation model worksheet.

1. The bulk of the inputs are in the master inputs page. Here, you can input the numbers from the current

2. If you want to normalized operating income, use the earnings normalizerworksheet.


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An apology: I apologize for the number of inputs that are required on this sheet. Many of the inputs are

If you have negative operating income, you will either have to normalize it to make it positive, or use the

Master Input SheetDo you want to capitalize R&D expenses? No ! Yes or No Go to R&D Co

Do you want to convert operating leases to debt? No ! Yes or No Go to Operatin

Do you want to normalize operating income? No Go to Earnings

InputsFrom Current FinancialsCurrent EBIT = $500.00 ! If negative, go back and cho

Current Interest Expense = $85.00

Current Capital Spending $250.00

Current Depreciation & Amort'n = $150.00

Tax Rate on Income = 40.00% Previous year-end

Current Revenues = $10,000.00 9000

Current Non-cash Working Capital = $750.00

Chg. Working Capital = $40.00 revious year-end

Book Value of Debt = $900.00 850

Book Value of Equity = $1,500.00 1350

Cash & Marketable Securities = $125.00

Value of Non-operating Assets = $0.00

Market Data for your firm

Is your stock currently traded? No

If yes, enter the following:

Current Stock Price = $51.90

Number of shares outstanding = 246.10

Market Value of Debt = $900.00

If no, enter the following

Would you like to use the book value debt ratio? No

If no, enter the debt ratio to use in valuation 30%

General Market Data

Long Term Treasury bond rate= 4.50%

Risk premium for equity = 4.00%

Ratings

Do you want to estimate the firm's synthetic rating = Yes ! If yes, use the rating estimat

If yes, choose the type of firm 2

If not, what is the current rating of the firm? AAA

Enter the cost of debt associated with the rating = 6.20%

Options

Do you have equity options (management options, warrants) outstan NoIf yes, enter the number of options 7.07

Average strike price $57.46

Average maturity 6.1

Standard Deviation in stock price 40%

Do you want to use the stock price to value the option or your estima P

Valuation InputsHigh Growth Period


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Length of high growth period = 5

Beta to use for high growth period for your firm= 2.94

Do you want to keep the debt ratio computed from your inputs? Yes

If yes, the debt ratio that will be used to compute the cost of capital i 30.00%

If no, enter the debt ratio that you would like to use in the high growt 7.00%

Do you want to keep the existing ratio of working capital to revenue Yes

If yes, the working capital as a percent of revenues will be 7.50%

If no, enter the ratio of working capital to revenues to use in analysis 12%

Do you want to compute your growth rate from fundamentals? YesIf no, enter the expected growth rate in operating income for high gr 15%

If yes, the inputs to the fundamental growth calculation (based upon your inputs) are

Return on Capital = 13.64%

Reinvestment Rate = 46.67%

Do you want to change these inputs? No

Return on Capital = 16.00%

Reinvestment Rate = 80.00%

Do you want me to gradually adjust your high growth inputs in the s No

Stable Growth PeriodGrowth rate during stable growth period = 4.00%

Beta to use in stable growth period = 3.00

Risk premium for equity in stable growth period = 4.00%

Debt Ratio to use in stable growth period = 30.00%

Pre-tax cost of debt in stable growth period = 5.50%

Tax Rate to use in stable growth period = 40.00%

To compute the reinvestment rate in stable growth, you have two options

Do you want to compute reinvestment needs in stable growth based Yes

If yes, enter the return on capital that the firm will have in stable gro 12.54%

If no, enter capital expenditure as % of depreciation in stable growth 120% (in percent)


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equired only if you choose the appropriate option, though.

highgrowth.ls spreadsheet.

nverter

g lease converter

Normalizer

se to normalize earnings.

r worksheet that is attached


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Normalizing EarningsApproach used to normalize earnings = 3

If historical average,Average Earnings before interest and taxes = 3500

If historical average ROC,Historical average pre-tax return on capital = 22%

If sector marginPre-tax Operating Margin for Sector = 14.72% ! Look at industry average

Normalized Earnings before interest and taxe $1,471.67

Worksheet for normalization (Last 5 years of data)

-5 -4 -3 -2 -1 Total

Revenues 2032 2376 2779 3155 3248 13590

EBIT 186 454 529 448 383 2000Operating Mar 9.15% 19.11% 19.04% 14.20% 11.79% 14.72%


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R & D ConverterThis spreadsheet converts R&D expenses from operating to capital expenses. It makes the appropriate adjustments to operating income, net

income, the book value of assets and the book value of equity.

InputsOver how many years do you want to amortize R&D expenses 5 ! If in doubt, use the lookup table below

Enter the current year's R&D expense = $1,594.00 The maximum allowed is ten years

Enter R& D expenses for past years: the number of years that you will need to enter will be determined by the amortization period

Do not input numbers in the first column (Year). It will get automatically updated based on the input above.

Year R& D Expenses

-1 1026.00 ! Year -1 is the year prior to the current year

-2 698.00 ! Year -2 is the two years prior to the current year

-3 399.00

-4 211.00

-5 89.00

0

0

0

0

0

Output

Year R&D Expense Unamortized portion Amortization this year

Current 1594.00 1.00 1594.00

-1 1026.00 0.80 820.80 $205.20

-2 698.00 0.60 418.80 $139.60

-3 399.00 0.40 159.60 $79.80

-4 211.00 0.20 42.20 $42.20

-5 89.00 0.00 0.00 $17.80

0 0.00 0.00 0.00 $0.00

0 0.00 0.00 0.00 $0.00

0 0.00 0.00 0.00 $0.00

0 0.00 0.00 0.00 $0.00

0 0.00 0.00 0.00 $0.00

Value of Research Asset = $3,035.40 $484.60

Amortization of asset for current year = $484.60


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Adjustment to Operating Income = $1,109.40 ! A positive number indicates an increase in operating income (add to reported EBIT)

!a "ffect of #$% "pensing $444

Look Up Table for Amortization Periods

Industry Name Amortization Period

Advertising 2

Aerospace/Def 10 Non-technological Service 2 years

Air Transport 10 Retail, Tech Service 3 years

Aluminum 5 Light Manufacturing 5 yearsApparel 3 Heavy Manufacturing 10 years

Auto & Truck 10 Research, with Patenting 10 years

Auto Parts (O 5 Long Gestation Period 10 years

Auto Parts (Re 5

Bank 2

Bank (Canadia 2

Bank (Foreign) 2

Bank (Midwes 2

Beverage (Alc 3

Beverage (Soft 3

Building Mate 5

Cable TV 10

Canadian Ener 10

Cement & Ag 10

Chemical (Basi 10

Chemical (Div 10

Chemical (Spe 10Coal/Alternate 5

Computer & P 5

Computer Soft 3

Copper 5

Diversified Co. 5

Drug 10

Drugstore 3

Educational Se 3

Electric Util. ( 10

Electric Utility 10

Electric Utility 10


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Electrical Equi 10

Electronics 5

Entertainment 3

Environmental 5

Financial Servi 2

Food Processin 3

Food Wholesal 3

Foreign Electr 5

Foreign Teleco 10

Furn./Home Fu 3Gold/Silver Mi 5

Grocery 2

Healthcare Inf 3

Home Applian 5

Homebuilding 5

Hotel/Gaming 3

Household Pro 3

Industrial Servi 3

Insurance (Div 3

Insurance (Life 3Insurance (Pro 3

Internet 3

Investment Co. 3

Investment Co. 3

Investment Co. 3

Machinery 10Manuf. Housin 5

Maritime 10

Medical Servic 3

Medical Suppli 5

Metal Fabricati 10

Metals & Mini 5

Natural Gas (D 10

Natural Gas (D 10

Newspaper 3

Office Equip 5

Oilfield Servic 5

Packaging & C 5

Paper & Forest 10


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Petroleum (Int 5

Petroleum (Pro 5

Precision Instr 5

Publishing 3

R.E.I.T. 3

Railroad 5

Recreation 5

Restaurant 2

Retail (Special 2

Retail Building 2Retail Store 2

Securities Brok 2

Semiconductor 5

Semiconductor 5

Shoe 3

Steel (General) 5

Steel (Integrate 5

Telecom. Equi 10

Telecom. Servi 5

Textile 5Thrift 2

Tire & Rubber 5

Tobacco 5

Toiletries/Cos 3

Trucking/Tran 5

Utility (Foreig 10Water Utility 10


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Operating Lease ConverterInputs

Operating lease expense in current year = $15.10Operating Lease Commitments (From footnote to financials)

Year Commitment ! Year 1 is next year, .1 $14.60

2 $14.393 $13.784 $12.19

5 $10.156 and beyond $13.38

OutputPre-tax Cost of Debt = 5.50% ! If you do not have a cost of debt, use the ratings estimator

From the current financial statements, enter the following

Reported Operating Income (EBIT) = $500.00 ! This is the EBIT reported in the current income statement

Reported Debt = $900.00 ! This is the interest-bearing debt reported on the balance sheet

Number of years embedded in yr 6 estimate = 1 ! I use the average lease expense over the first five yearsto estimate the number of years of expenses in yr 6

Converting Operating Leases into debt

Year Commitment Present Value1 $14.60 $13.84

2 $14.39 $12.93

3 $13.78 $11.744 $12.19 $9.84

5 $10.15 $7.76

6 and beyond $13.38 $9.70 ! Commitment beyond year 6 converted into an annuity for ten years

Debt Value of leases = $65.81

Restated Financials

Depreciation on Operating Lease Asset = $10.97 ! I use straight line depreciation

Adjustment to Operating Earnings = $3.62 ! PV of operating leases * Pre-tax cost of debt

Adjustment to Total Debt outstanding = $65.81


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!wo&'tage ()(( %iscount Model

*age

Input Summary

Normalized EBIT (before adjustments $500.00

Adjusted EBIT = $500.00

Adjusted Interest Expense = $85.00

Adjusted Capital Spending $250.00

Adjusted Depreciation & Amort'n = $150.00

Tax Rate on Income = 40.00%

Current Revenues = $10,000.00

Current Non-cash Working Capital = $750.00

Chg. Working Capital = $40.00

Adjusted Book Value of Debt = $850.00

Adjusted Book Value of Equity = $1,350.00

Length of High Growth Period = 5 Forever

Growth Rate = 6.36% 4.00%Debt Ratio used in Cost of Capital Ca 30.00% 30.00%

Beta used for stock = 2.94 3.00

Riskfree rate = 4.50% 4.50%

Risk Premium = 4.00% 4.00%

Cost of Debt = 5.50% 5.50%

Tax Rate = 40.00% 40.00%

Return on Capital = 13.64% 12.54%

Reinvestment Rate = 46.67% 31.90%


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*age

Output from the program

Cost of Equity = 16.26%

Equity/(Debt+Equity ) = 70.00%

After-tax Cost of debt = 3.30%

Debt/(Debt +Equity) = 30.00%

Cost of Capital = 12.37%

Intermediate Output

Expected Growth Rate 6.36%

Working Capital as percent of revenu 7.50% (in percent)

The FCFF for the high growth phase are shown below (upto 10 years)

Current 1 2 3 4 5

Expected Growth Rate 6.36% 6.36% 6.36% 6.36% 6.36%

Cumulated Growth 106.36% 113.13% 120.33% 127.99% 136.13%

Reinvestment Rate 46.67% 46.67% 46.67% 46.67% 46.67%

EBIT * (1 - tax rate) $300 $319 $339 $361 $384 $408

- (CapEx-Depreciat $100 $101 $108 $114 $122 $130

-Chg. Working Ca $40 $48 $51 $54 $57 $61

Free Cashflow to Fi $160 $170 $181 $193 $205 $218

Cost of Capital 12.37% 12.37% 12.37% 12.37% 12.37%

Cumulated Cost of Capital 1.1237 1.2627 1.4190 1.5945 1.7918

Present Value $151 $143 $136 $128 $122

Growth Rate in Stable Phase = 4.00%

Reinvestment Rate in Stable Phase = 31.90%

FCFF in Stable Phase = $289.25

Cost of Equity in Stable Phase = 16.50%

Equity/ (Equity + Debt) = 70.00%

AT Cost of Debt in Stable Phase = 3.30%

Debt/ (Equity + Debt) = 30.00%


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*age

Cost of Capital in Stable Phase = 12.54%

Value at the end of growth phase = $3,387.06

Valuation

Present Value of FCFF in high growth phase = $680.46

Present Value of Terminal Value of Firm = $1,890.31

Value of operating assets of the firm = $2,570.77

Value of Cash, Marketable Securities & Non-operating assets = $125.00

Value of Firm = $2,695.77

Market Value of outstanding debt = $900.00

Market Value of Equity = $1,795.77

Value of Equity in Options = $0.00

Value of Equity in Common Stock = $1,795.77

Market Value of Equity/share = $7.30

Year + - /EBIT (1-t) 0-+1 0--1 0-2+ 0-3 043

- Reinvestment 0+1 0+/3 0+23 0+51 0+1+

6()(( 0+54 0+3+ 0+1- 04/ 0+3


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*age


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*age

Terminal Year

$424.74

$94.64

$40.84

$289.25


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*age


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Valuing Options or WarrantsEnter the current stock price = $51.90

Enter the strike price on the option = $57.46

Enter the expiration of the option = 6.1

Enter the standard deviation in stock prices = 40.20% (volatility)

Enter the annualized dividend yield on stock 0.00%

Enter the treasury bond rate = 4.50%

Enter the number of warrants (options) outsta 7.07

Enter the number of shares outstanding = 246.10

Do not input any numbers below this line

VALUING WARRANTS WHEN THERE IS DILUTIONStock Price= 51.9 # Warrants issued= 7.071Strike Price= 57.46 # Shares outstanding= 246

Adjusted S = #VALUE! T.Bond rate= 4.50%Adjusted K = 57.46 Variance= 0.1616Expiration (in years) = 6.1 Annualized dividend yield= 0.00%

Div. Adj. interest rate= 4.50%

d1 = #VALUE!

N (d1) = #VALUE!

d2 = #VALUE!N (d2) = #VALUE!

Value per option = #VALUE!

Value of all options outstanding = #VALUE!


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Bottom-up Beta CalculatorUnlevered beta for sector = 0.78 ! Look up industry averages

Output

Firm's Current market value D/E ratio = 42.86% ! Reverted back to conventional debt to equity ratio

Firm's Current tax rate = 40.00%

Bottom-up beta for firm = 0.98


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Inputs for synthetic rating estimationEnter the type of firm = 2 (Enter 1 if large manufacturing firm, 2 if smaller or riskier firm, 3 if financial

Enter current Earnings before interest and taxes (EBIT) = $500.00 (Add back only long term inte

Enter current interest expenses = $85.00 (Use only long term interest e

Enter current long term government bond rate = 4.50%

OutputInterest coverage ratio = 5.88

Estimated Bond Rating = A-

Estimated Default Spread = 1.00%

Estimated Cost of Debt = 5.50%

For large manufacturing firms For financial service firms

If interest coverage ratio is If long term interest coverage ratio is

> to Rating is Spread is greater than to Rating is

-100000 0.199999 D 20.00% -100000 0.049999 D

0.2 0.649999 C 12.00% 0.05 0.099999 C

0.65 0.799999 CC 10.00% 0.1 0.199999 CC

0.8 1.249999 CCC 8.00% 0.2 0.299999 CCC1.25 1.499999 B- 6.00% 0.3 0.399999 B-

1.5 1.749999 B 4.00% 0.4 0.499999 B

1.75 1.999999 B+ 3.25% 0.5 0.599999 B+

2 2.2499999 BB 2.50% 0.6 0.749999 BB

2.25 2.49999 BB+ 2.00% 0.75 0.899999 BB+

2.5 2.999999 BBB 1.50% 0.9 1.199999 BBB

3 4.249999 A- 1.00% 1.2 1.49999 A-

4.25 5.499999 A 0.85% 1.5 1.99999 A

5.5 6.499999 A+ 0.70% 2 2.49999 A+

6.5 8.499999 AA 0.50% 2.5 2.99999 AA

8.50 100000 AAA 0.35% 3 100000 AAA

For smaller and riskier firms

If interest coverage ratio is

greater than to Rating is Spread is

-100000 0.499999 D 20.00%

0.5 0.799999 C 12.00%

0.8 1.249999 CC 10.00%

1.25 1.499999 CCC 8.00%

1.5 1.999999 B- 6.00%

2 2.499999 B 4.00%

2.5 2.999999 B+ 3.25%

3 3.499999 BB 2.50%

3.5 3.9999999 BB+ 2.00%

4 4.499999 BBB 1.50%

4.5 5.999999 A- 1.00%

6 7.499999 A 0.85%

7.5 9.499999 A+ 0.70%

9.5 12.499999 AA 0.50%

12.5 100000 AAA 0.35%


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Industry umber of fir Levered Beta Unlevered Market D/E Market Debt/Cap ROE ROC

Advertising - +.+1 +.42 /.-/7 4.-7 5.2-7 3.57

Aerospace8%efense 5 4.51 4.2 ./17 1.357 +.-7 ++.537

Air !ransport - +.- +.4/ /4.-57 --./47 &2.227 +4.//7

Apparel /1 4.33 4.3 +.3/7 +.1-7 +/.327 +.-7

Auto $ !ruck + 4.11 4.1 +2.+27 2+.327 +-.247 +4.217

Auto *arts 2 4.14 4.21 2.7 -+.2+7 +-.247 5.//79ank /4 4.2 4.5 21.+/7 4.337 +.257 A

9ank ;)anadian< 5 4.3- 4.53 +/.7 +-.-7 ++.3-7 A

9ank ;(oreign< +.+3 4.5 +3.1/7 /2.-7 +2.++7 A

9ank ;Midwest< - 4.5- 4.24 /5.17 -2.7 +2.5+7 A

9everage ;Alcoholic< 4./5 4./+ 4./+7 +5.47 -4.27 +3.17

9everage ;'oft %rink< +5 4./1 4.// +-.7 ++.3-7 2.1/7 +1.--7

9iotechnology 3 +.4 +.2 -.17 -.557 4.17 .57

9uilding Materials 3 4.34 4.5+ -./-7 -4.--7 &.457 .337

)able != +.5+ +.41 21.7 4.147 &/.17 2.57

)anadian "nergy +4 4.22 4./2 3.-17 .++7 +-.327 +/.//7

)ement $ Aggregates + 4.53 4.25 /.-/7 4.7 1.517 +-./7

)hemical ;9asic< +2 4.33 4.5 -4.157 -.2/7 +4./7 +.27

)hemical ;%iversified< -- 4.3- 4.5- -.+17 +3.37 +/.37 +5.+47

)hemical ;'pecialty< 1/ 4.34 4.2/ -./57 /.217 +.+7 +-.47

)oal 3 4.1/ 4.5- --.247 /.+/7 .127 +5.217

)omputer 'oftware8'v -35 +.55 +.15 -.4-7 .17 +-.5+7 +2.-17

)omputers8*eripherals +3 +.3- +.33 1.27 3.27 ++.4+7 +-.527

%iversified )o. +4 4.53 4.2 .//7 -4.37 +.57 ++.417

%rug 52 +.+/ +.+5 2.217 2.57 +.57 +1.47

"&)ommerce + .31 -.55 2.457 /.57 &-5.+7 &1-.347

"ducational 'ervices - +.4- +.41 .+57 .+7 3.557 +2.-7

"lectric >til. ;)entral< 5 4.34 4.- +-.4/7 //.+57 1./7 +4.4/7

"lectric >tility ;"ast< 1 4.5- 4. 1.37 3./37 +.+27 +4.-17

"lectric >tility ;?est< +/ 4.51 4./ +.517 //.++7 .47 3./57

"lectrical "quipment 32 +.- +.1 2./47 2.+47 +3.217 +5.++7

"lectronics +3+ +.+ +.4 +3.547 +/.527 &/.27 -.-7

"ntertainment 3 +.+3 +.4/ -.117 +1.-/7 4.117 5.-47

"ntertainment !ech - +.3 +.12 3.247 5.17 .+7 +-.-/7

"nvironmental 55 4.5/ 4./ /1.1+7 -5.27 +-.7 ++.147

(inancial 'vcs. ;%iv.< -+ 4.14 4./+ ++.157 /-.47 +/.+47 +4./7

(ood *rocessing +4 4.2 4./- --.17 .157 +1.357 +.57

(ood ?holesalers 4.25 4./1 /.417 4.427 +5./+7 +.27

(oreign "lectronics +- +.+2 +.+3 --.7 .1/7 .137 2.-27

(oreign !elecom. +1 +./3 +.+ -+.337 .+57 &5.417 1.47

(urn8@ome (urnishing -2 4.52 4.5 +/.+7 +-.+/7 ++.-17 +./27rocery / 4.5 4.3 3.47 /.427 +.2-7 +.//7

@ealthcare Information -/ +.44 +.4/ +-.7 ++.217 +.37 3.517

@ome Appliance +/ 4.35 4.55 -.1/7 .537 /.-7 +./7

@omebuilding 4.34 4.2 /+.517 -.+7 +3.3-7 +4.5-7

@otel8aming 34 4.3 4./2 2/.117 -1.5/7 5.117 +4.-7

@ousehold *roducts - 4.52 4.5 +-.+27 ++.2-7 -5.+7 -.157

@uman #esources 5 4.13 4.11 ++.+-7 +4.47 .2+7 1.147

Industrial 'ervices +14 4.51 4.5+ 2.3-7 +.+27 1./+7 +-./+7


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Information 'ervices 1 +.4 4.13 ++.547 +4.37 +-.117 +2.2-7

Insurance ;Bife< / 4.33 4.1+ +/.2/7 +-./-7 1.+37 A

Insurance ;*rop8)as.< 21 4.3+ 4.3 5.-27 2.3/7 3.57 A

Internet 31 .5 -.+4 .+/7 -.117 &+1.+37 4.+7

Investment )o. 4.22 4.2 /2.4-7 -/.1+7 5.57 A

Investment )o.;(oreig +5 +.4/ +.4/ -.+37 -.437 .257 A

Machinery +-3 4.51 4.2 -.3-7 -4.57 5./17 1.1-7Manuf. @ousing8#= +3 4.1- 4.3/ +.3+7 +5.147 &-.47 -.27

Maritime - 4.34 4.// +4+.-+7 /4.--7 -.17 &+.37

Medical 'ervices +15 4.3 4.34 .--7 +3.27 +.27 +/.227

Medical 'upplies -2 4.3 4.3 2.137 2./7 +.27 +1.37

Metal (abricating -5 4.52 4.5- +/.-/7 +-.-47 3.//7 +4.17

Metals $ Mining ;%iv.< / 4.13 4.3- /.7 4.+7 2.-37 +4.7

atural as ;%istrib.< -+ 4.2/ 4.4 33.47 2.37 +.+47 +4.547

atural as ;%iv.< -1 4.3/ 4./ 33.337 5.427 +.7 +4.-7

ewspaper 4 4.3/ 4.51 +5.7 +.547 +4.7 +4.37

Cffice "quip8'upplies -+ 4.14 4.5 +.147 1./-7 +1./7 +-.//7

Cilfield 'vcs8"quip. 33 4.14 4.3- +2.-/7 +.4/7 ++.47 +-.+7

*ackaging $ )ontainer - 4.3- 4./3 5/.-7 .1-7 .+37 +./7

*aper8(orest *roducts 4 4.3 4.2 5+.327 +.3+7 .327 1.27

*etroleum ;Integrated< - 4.3 4.5 +3.-7 +/.37 ++./57 +-.5+7

*etroleum ;*roducing< +3 4.5- 4.24 1.4-7 ./47 +.2-7 +5.+47

*harmacy 'ervices +/ 4.31 4.32 3.157 3.-7 +-.7 +.117

*ower +1 +./ 4./ 45.1/7 25./-7 /.137 /.+7

*recious Metals 3 4.+ 4.-1 1.+37 3.+7 .1-7 ++.17

*recision Instrument +4 +.-- +.-5 +4.+47 1.+37 +.457 5.147

*ublishing 4 4.14 4.53 .37 +1./-7 1.2/7 +3.257

#.".I.!. + 4.2 4./5 +5./+7 +.147 +4.7 ./7

#ailroad +2 4.3- 4./1 2+.-27 -3.4-7 1.17 1.37

#ecreation 5- 4.35 +.+ +.+-7 +5./7 +.57 &4.2/7

#estaurant 3/ 4.5 4.22 4.-+7 +2.337 +2.-7 +2.57

#etail ;'pecial Bines< +12 4.1 4.1- +.27 +.2-7 +.-7 +.17

#etail 9uilding 'upply 3 +.4+ +.4+ ./57 .-57 +5.317 +3.++7

#etail 'tore - 4.1+ 4.34 -.37 +1./7 +2.47 +-.17

'ecurities 9rokerage 5 +.-+ 4.3+ +5+.17 2-.-7 +.+47 1.17

'emiconductor ++- ./1 .5 2.437 /.5-7 .317 +4.137

'emiconductor "quip +/ ./4 .25 5.137 5.-17 &.557 .57

'hoe 4.3 4.3/ 2.237 2.27 +/.1/7 +5./7

'teel ;eneral< 5 4.34 4.2- +./47 1.--7 ++.-7 +.17

'teel ;Integrated< + 4.3 4.2- 2.7 -3.-27 5.+7 +.+7

!elecom. "quipment + +.35 .4+ -.317 -.5/7 &2.527 .57

!elecom. 'ervices +-5 +.-/ 4.12 //.++7 -/./-7 +4.547 +5.3/7!etile +3 4.5- 4./ 32.+17 2.17 &+./17 /.557

!hrift 4./5 4./5 -.3/7 +1./7 +.127 A

!ire $ #ubber + 4.1/ 4.22 5.4-7 ./7 3.+7 +5.147

!obacco ++ 4.25 4./1 .-7 +1./37 -1.7 -4.447

!oiletries8)osmetics + 4.5 4.21 +-.2+7 ++.137 /4.457 .7

!rucking -1 4.3- 4.2- /-.+37 -.57 1.447 +/.147

>tility ;(oreign< 2 4.3- 4./ 3-.537 /./17 +.7 +2.1-7

?ater >tility +2 4./5 4.-1 22.7 -1.37 3.-7 +.4-7


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?ireless etworking 2- .+ +.23 3./+7 -.227 &/.257 .-+7

Market 6958 0.91 0.78 37.51% 27.28% 10.12% 10.24%


26/31

Effetive !a" Rate #re$ta" Operatin% Mar%in &fter$ta" O Net Mar%in Cap E"/ Depreiation

+.327 +/.47 1.-/7 .47 52.4/7

+3.-+7 +4.547 5.5+7 -.+37 1.557

./37 1.57 2.7 &+.-7 ++.57

-.+-7 +./17 3.-7 -./+7 +4.+37

./+7 +-.527 1.//7 +./7 52.+7

+/.447 3.//7 +4.+7 .437 +++.2473.-47 A A A A

4.37 A A A A

+5./+7 A A A A

-+.337 A A A A

-1.2-7 .327 +./57 .247 +4-.17

.+17 +.557 +/.+/7 /.+37 ++5.547

/.57 4.3+7 +.27 3.-7 +2./27

+.-7 1.147 .457 &+.+-7 +4+.7

+4.457 2.217 +1.7 &.47 +.2-7

-2.157 -+.2+7 +1.147 +4.37 42.+57

.47 +3.7 +-.47 /.57 +4.+7

+2.527 +-.+17 +4.3-7 4.27 3+.+57

3.5/7 +1.447 +.-7 /.227 +4.-47

.37 +-.27 3.1+7 -.-57 14.57

.1/7 +-.57 +.347 &4.+37 3-.7

+.3-7 -.-+7 +/.5+7 ++.+7 22.-7

+5.-7 1.-37 2.527 -.3+7 3./-7

+.+47 1.27 5.47 +.5/7 +4/.227

++.7 2.27 +3.5+7 +4.+47 +/+.3/7

3.37 .+47 &+42.1-7 &+-.7 /1.-47

+2.7 +5.37 ++.437 2.37 ++.17

.2+7 +.+7 +/.-7 -.437 +2.37

2.++7 5.547 +1./37 /./37 +5+.--7

5.+47 +1.47 +-.-7 4.+37 +1-.-57

+-.137 4.-17 +/.527 +.-37 5.417

+2.57 -./47 +.117 &.-7 2.27

--.257 .2-7 +2.437 4.57 /2./7

2.5-7 +-.527 +4.+/7 4.7 -2.537

+3.347 .-17 +/.+7 .517 +43.1/7

-.--7 +3+.+17 ++1.427 -/.1+7 ++5.57

3.157 +/.47 1.37 .7 35.157

.-37 /.347 -.57 .+/7 2/.1/7

2.5-7 3.217 -.57 4.27 3+.5/7

-.2/7 .1-7 +1.4+7 +.447 -5.257

3.3/7 ++.57 5.37 .157 5/.47-.+7 2.557 -.357 +.-7 +/3.347

+-.-27 +.517 1.257 &4.527 21.+/7

5.117 ++.457 5.227 .7 +4/./7

/.+-7 +-.17 1./+7 2.57 +/3.17

+/.++7 -.+37 +2.317 +.337 12.3/7

3.547 4.3-7 +.7 1.3/7 31.+47

/.+7 -.127 .7 4.427 21.--7

/.2+7 +4./7 2.517 +.337 11.1-7


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.3/7 3.-47 +1.//7 2.347 /-.27

+./7 A A A A

+2.47 A A A 2+444.447

-./37 -.+/7 4.7 &3.227 .357

+.1-7 A A A -./-7

./-7 A A A +-+./7

+.447 +4.527 5.57 .447 1-.117+3.+7 .27 +.47 4.-7 33.127

5.37 +5./-7 &.47 -.27 +1-.37

4.+47 ++.317 5.547 .-47 +-.+7

+.1-7 +.57 +4.4+7 2.2+7 ++.127

2.17 +.7 5./27 -.1+7 31.2/7

1.137 +5.27 ++.337 +.3+7 ++/./17

5.5-7 4./17 +-.117 -.+7 +32.-37

.27 5.--7 +.427 .347 +1.347

1.17 .57 +-.137 3.-7 2/.217

/.57 ++.1/7 5.517 -.37 /3.27

4.2+7 +3.257 +./+7 +.-17 +.27

-5.-/7 +.47 1.327 4./57 5/.257

5.+7 +.3/7 1.437 4.547 5-.-37

.457 +.337 5.27 -.337 +-.27

+3.447 1.-7 -.47 +.2+7 +3+.5/7

-+.2/7 .117 -.-+7 +.1-7 +5.+-7

+.47 +2.7 +4./47 +.47 -23.7

5.//7 3.3/7 /./47 .4+7 5./7

+.17 1.+37 2.37 &4.17 25.3+7

4.1+7 +.4/7 1./27 +.547 /+.17

+.5-7 -.57 -/.5+7 34.4-7 -4-.-27

-+.427 3.47 +3.-17 -./27 +5.1-7

2.-17 +3.27 &4.57 /.417 +1.57

2.1+7 +3./47 ++.127 /.457 +15./7

/.557 1.+-7 /.57 .+7 +42.37

-5.-47 ++.--7 5.427 2.17 -/.57

3.537 5.547 .17 +.4-7 +11.+-7

+3.-7 /-.117 -2.547 -.4+7 +-4.57

+1.-7 +.417 +.547 -./17 5-.127

-.7 3.17 5.4-7 &.57 5+.4-7

5.4-7 ++.57 5.-7 /./7 3.527

4./37 ++.+-7 3.2+7 4.-27 ++.3/7

5.417 +-.257 3.127 4.+37 3.127

3.237 5.+7 .17 +.457 1.-17

+.47 -2.//7 .37 /.+7 1-./7+.5-7 1.+/7 -.357 &4.17 /+.157

-4.4+7 A A A A

+3.+7 3.-7 2.37 4.357 5.117

-4.337 .-+7 +.27 5.217 +/.-47

/.457 +5.5-7 ++.1-7 5.2+7 32.-7

5.-47 +-.47 3.3+7 +.--7 /-.-47

+2.57 5.47 +1.337 +.27 +--.+47

-4.157 .117 -.+37 5./7 +32.1+7


28/31

/.++7 2.47 /.237 &++.-37 ++2.327

32.51% 22.09% 11.96% 4.35% +4-.-+7


29/31

Non$as' (C/ R #ayout Ratio Reinvestme )ales/Capital E*/)ales

&+4.227 +1.7 &+.+7 4.1+ .+-

./7 -4.7 &4.547 +./- +.+4

&+4.+/7 A +.457 +.2 +.+/

+3.427 /.537 /.47 +.5 +.5

+.17 2.+37 5.2+7 +.+ +.44

/.227 1./7 /.337 .5 4./2A //./57 4.447 A A

A 4.437 4.447 A A

A 2.7 4.447 A A

A .7 4.447 A A

/./7 -+.+17 .-7 +.2 .25

&4.+/7 -3./-7 /.7 +.3 -.43

/.-7 4.447 -.17 4.-2 +4.51

3.247 A -/.427 .-/ 4.5-

&+5./7 A 1.37 4.- .

4.+17 4./7 5.-/7 4.53 ./

+-./+7 -+.527 +4./7 +.4 +./-

++.157 +3.4-7 &++.7 +.- +.5

+5.+7 .357 ./37 +.4 +.54

++.147 /.157 4.317 +./4 +.3

/.7 35.37 &3.17 +.-3 +.4

&-.17 +.-37 &+.+-7 +.4 -.5-

+.317 +3.17 &3.3/7 .4 +.2

.457 .247 .-7 +./4 +.43

5.537 /./57 +/.227 +.4 ./-

&+3.557 A A 4.33 .24

&+4.27 4.547 &2.5+7 +.2 -.1

.-/7 23.5-7 1.47 4.22 +.51

.-47 2+.27 -3./47 4./- .+

&2.+7 13.27 2-.57 4.2/ +.52

&-.217 /-.--7 &-.+7 +.41 -.-/

+.-57 A &-.-57 +.5 +.4

&4.327 /2.527 &-.257 4./ -.+

&.37 +.4-7 &/+.457 +.- .1

&4.557 ./+7 .17 4.51 .+/

4.17 -4./7 /./7 4.41 +/.

/./17 -.57 &.++7 +./4 +.

4.-7 +-.527 //.+7 -.1+ 4.24

+4.--7 3.5-7 &+5.127 +.54 4.5

&.5/7 A &+4+.-27 4.3 .5

+-.257 .4+7 1.4-7 +.1/ 4.114.1/7 +/./37 -5.+/7 -. 4.-5

&4.+7 2.-37 &2.347 4.1+ ./4

1.57 ./57 3./7 .3+ 4.5+

.+57 +4.4+7 /5.527 +.+- +.4

&.--7 5.17 &.47 4.2+ .1

4.1+7 -3.5-7 &./57 +.22 ./4

/.1/7 +5.-7 +-.+/7 .+4 4.//

5./37 -.257 1.2/7 +.11 4.15


30/31

&-.3+7 +.27 &.17 4.3/ .+

A +1.247 4.-7 A A

A -+.-17 -3.247 A A

&3.557 A DDD 4.14 /.1

A +33.+-7 &-.--7 A A

A 4.447 .57 A A

+.427 /.5-7 2.457 +.-- +.-43./-7 A 3.47 -./- 4.23

-.227 53.4+7 A 4.2 +.5

&4.2-7 /./17 2./37 .4- 4.1+

+4.7 3.2+7 +-.2/7 +.13 .+3

+.437 -5.+47 .+37 +./ +./4

++.-17 55.257 5.517 4.33 .-2

.27 54.117 .247 4.55 +.3

1.+7 -1.2/7 /1.37 4.1 .5

&+.7 5.--7 &+.+7 4.5/ -.-

+-.37 +/.527 &+4.5+7 +.5 +.+5

1./7 +.317 +/.317 +.45 .-5

5.537 //.+37 &3.247 +.5 +.4

1.4/7 +41.7 &+5.157 +.42 +.5

4.317 /2.147 .+-7 +.3 4.13

&4.3-7 +3.157 2./37 4./4 .4+

/.-57 1.+7 1.+7 ./- 4.2

.247 +1.47 +/-.437 4.1 .4/

/.-/7 22.537 &+2.1/7 4.5 2.++

+.47 ++3.57 &3.-47 +.+2 .44

&+.++7 3+./+7 &--.//7 +.1/ +.1

/./-7 +2/.+47 1.37 4.+- +1.25

&.247 .4+7 -.+57 4./- .4

+.47 2.-7 A 4.14 .-2

&/.137 +/.247 -5.2+7 +.4 +.5/

5.-+7 +2.-+7 +/.217 ./ 4.31

.47 +.27 2.-27 ./2 +.

+4.437 +5.+7 24.1-7 .21 4.31

+21.+27 -./57 3.457 4.2 -.-

5.117 /.37 &/.5+7 4.5/ .-5

.437 A &.37 4.2+ .33

+1.457 4.17 +2.5+7 .-2 +.+3

+3./37 .-7 +3.117 +./4 +.4+

+.247 1.-/7 &+.1/7 +.-/ 4.5/

&-.-7 A &+.427 4.1- ./4

&+.217 5.217 &/.-27 4.5 .4.+7 A &55.-17 +.1 4.2

A -2.547 4.447 A A

3.317 +.5-7 &/.37 .2- 4.1

4.27 /2.-57 .317 .4/ +.-

5.-57 -.257 &4.57 .4/ .23

.117 ++.117 +-.357 +.3+ 4.32

.3/7 .5/7 5.+17 4.3/ +.-

.17 /4.557 1.1/7 4.-5 -.1-


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+.7 A -1.527 4.52 .//

1.2/7 44.79% 6.90% 4.32 2.10

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Kristin Kandy