Input sheetDate of valuationSep-10Important: Before you run this spreadsheet, go into preferences in Excel and check under Calculation optionsCompany nameAmazonThere should be a check against the iteration box. If there is not, you will get circular reasoning errors.Numbers from your base year below ( in consistent units)This yearLast yearCountry of incorporationUnited States of AmericaIndustry (US)Retail StoreIndustry (Global)Retail (Internet)Time period since last yearRevenues$ 85,246.00$ 74,452.000.75Operating income or EBIT$ 98.00$ 745.00Don't adjust operating income for leases or R&D, if you plan to use the spreadsheet option to do so. (see below)Interest expense$ 175.00$ 51.00Book value of equity$ 10,336.00$ 9,746.00Book value of debt$ 5,089.00$ 5,181.00Do you have R&D expenses to capitalize?NoIf you want to capitalize R&D, you have to input the numbers into the R&D worksheet.Do you have operating lease commitments?YesIf you have operating leases, please enter your lease commitments in the lease worksheet below and I will convert to debtCash and cross holdings$ 10,252.00$ 12,447.00Non-operating assets$ - 0$ - 0Minority interests$ - 0$ - 0Number of shares outstanding =463.01Current stock price =$ 287.06Computed numbers: Here is what your company's numbers look like, relative to industry.Effective tax rate =31.80%If you are not working in US dollars, you should add the inflation differential to the industry averages.Marginal tax rate =31.80%CompanyIndustry (US data)Industry (Global data)The value drivers below:Revenue growth in the most recent year =19.78%8.73%9.44%Compounded annual revenue growth rate over next 5 years =15.00%Pre-tax operating margin in the most recent year =0.58%5.53%4.77%Expected target operating marginMedian (US retail & media)Sales to capital ratio in most recent year =16.483.68063902466.75Target pre-tax operating margin (EBIT as % of sales in year 10) =7.38%Return on invested capital in most recent year=2.70%13.70%27.88%Sales to capital ratio (for computing reinvestment) =3.68Standard deviation in stock prices =40.98%Market numbersCost of capital =7.74%Riskfree rate2.20%Initial cost of capital =8.62%Other inputsDo you have employee options outstanding?NoNumber of options outstanding =122.80Average strike price =$0.85Average maturity =3.79Standard deviation on stock price =40.00%Default assumptions.In stable growth, I will assume that your firm will have a cost of capital similar to that of typical mature companies (riskfree rate + 4.5%)Do you want to override this assumption =YesMature companies generally see their risk levels approach the averageIf yes, enter the cost of capital after year 10 =8%Though some sectors, even in stable growth, may have higher risk.I will assume that your firm will earn a return on capital equal to its cost of capital after year 10. I am assuming that whatever competitive advantages you have today will fade over time.Do you want to override this assumption =YesMature companies find it difficult to generate returns that exceed the cost of capitalIf yes, enter the return on capital you expect after year 1010%But there are significant exceptions among companies with long-lasting competitive advantages.I will assume that your firm has no chance of failure over the foreseeable future.Do you want to override this assumption =NoMany young, growth companies fail, especially if they have trouble raising cash. Many distressed companies fail, because they have trouble making debt payments.If yes, enter the probability of failure =20%Tough to estimate but a key input.What do you want to tie your proceeds in failure to?VB: Book value of capital, V= Estimated fair value for the companyEnter the distress proceeds as percentage of book or fair value50%This can be zero, if the assets will be worth nothing if the firm fails.I will assume that your effective tax rate will adjust to your marginal tax rate by your terminal year. If you override this assumption, I will leave the tax rate at your effective tax rate.Do you want to override this assumption =NoI will assume that you have no losses carried forward from prior years ( NOL) coming into the valuation. If you have a money losing company, you may want to override tis.Do you want to override this assumption =NoCheck the financial statements.If yes, enter the NOL that you are carrying over into year 1$250.00An NOL will shield your income from taxes, even after you start making money.

Aswath Damodaran:Enter the revenues from the most recent period (you can either use annual or the trailing 12 months). If your company had no revenues, enter a very small positive number. (You need a base for your growth rate)Aswath Damodaran:Enter the operating income or EBIT from the most recent time period, even if that number is negative. If you have operating leases, enter the adjusted operating income (see the operating lease worksheet for the amount you have to adjust operating income by).Aswath Damodaran:Enter the book value of equity (total) from the end of the most recent time period (i.e. the most recent balance sheet). This book equity will include everything - paid in capital, retained earnings etc. and may even be negative for companies that have been losing money for a while.Aswath Damodaran:Enter the book value of interest bearing debt (short and long term) at your company from the most recent balance sheet. (Do not include accounts payable, supplier credit or other non-interest bearing liabilities.)Aswath Damodaran:Enter the cash balance from the most recent balance sheet. This should include marketable securities.Aswath Damodaran:Enter the most recent update you have on the number of shares. If you have different classes of shares, aggregate them all and enter one number. Count restricted stock units (RSUs) as shares but don't count shares underlying employee options.Aswath Damodaran:Enter the most recent stock price (how about today's?) in here.Aswath Damodaran:Enter your effective (not marginal) tax rate for your firm. You will find this in your company's annual report. If you cannot, you can compute it as follows, from the income statement:Effective tax rate = Taxes paid/ Taxable incomeIf your effective tax rate varies across years, you can use an average.Aswath Damodaran:I don't have a crystal ball but you should look at a. Revenue growth in your company in recent yearsb. Your company's revenues, relative to the overall market size and larger players in the sector. Suggestion: Check your revenues in year 10 against the overall market and see what market share are you giving your company. Check your company's revenues against other companies in the sector.Note that this number can be negative for a declining firm.Aswath Damodaran:You should start by looking at your company's current pre-tax operating margin but also look at the average for your industry. (You can check my estimates of industry averages in the last worksheet on this spreadsheet.)Aswath Damodaran:You are probably wondering what this is but it is how I compute how much you are going to reinvest to keep your business growing in future years. The higher you set this number, the more efficiently you are growing and the higher the value of your growth. Again, look at your company's current number (divide cell B3 by the sum of cells B5 and B6). Look at the industry averages as well in the worksheet.Aswath Damodaran:This should be today's long term riskfree rate. If you are working with a currency where the government has default risk, clean up the government bond rate to make it riskfree (by subtracting the default spread for the government).Aswath Damodaran:Enter the current cost of capital for your firm. If you don't know what it is, you can use the worksheet to compute it.Aswath Damodaran:Check your company's annual report or 10K. If it does have options outstanding, enter the total number here (vested and non vested, in the money and out)Aswath Damodaran:Enter the weighted average strike price of your options. (Should be in your 10K or annual report.)Aswath Damodaran:The weighted average maturity of your options should be reported in your financial statements.Aswath Damodaran:If you have a standard deviation for your stock, enter that number. If not, use the industry average standard deviation from the worksheet.Aswath Damodaran:Mature companies tend to have costs of capital closer to the market average. While the riskfree rate + 4.5% is a close approximation of the average, you can use a slightly higher number (riskfree rate + 6%) for mature companies in riskier businesses and a slightly lower number (risfree rate + 4%) for safer companies.Aswath Damodaran:The default assumption is that competitive advantages will fade to zero over time. While this is a good assumption for many firms (about 7 in 10), there are some firms with sustainable competitive advantages (brand name, for instance), where the excess returns may continue beyond year 10. If your firm is one of those, you can enter a return on capital higher than your cost of capital in the cell below. Just don't get carried away. At the maximum, the excess return should not exceed 5% for a mature firm.Aswath Damodaran:Even if you believe your firm has significant competitive advantages, don't set this number to more than 5% more than your cost of capital.Aswath Damodaran:Companies at either end of the life cycle - young, growth and old, declining firms have a significant likelihood of failure. While we tend to ignore this in conventional DCF, it is worth thinking about whether you want to estimate a probability of failure. It is not easy to do but it can be done by looking at either history (with young, growth companies) or the debt market (with distressed companies).Aswath DamodaranIf you want to look at ways of estimating this probability, try these papers I have on the topic:For young growth companies: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1418687 For declining, distressed companies: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428022Aswath Damodaran:If the firm fail and has to liquidate its assets, you need to specify what the liquidation proceeds will be tied to. For young growth companies, I would tie it to value and with distressed firms (especially ones with significant assets in place), I would use book value.Aswath Damodaran:You will generally not get 100% of fair value. How much less than 100% you get will depend on whether there are lots of potential buyers for your assets and how much of a hurry you are in to liquidate. It may well be zero for a young growth company with no tangible assets.Aswath Damodaran:Companies generally pay less than the marginal tax rate on their income. Some of that is due to tax deferral and others to quirks in the tax law. Over time, the conservative assumption is to require the tax rate to move towards the marginal tax rate. However, if you believe that your firm's tax benefits are permanent, you can override this assumption.Aswath Damodaran:If your company has been losing money for a while, there will be accumulated losses from prior periods. Check your financial statements.Aswath Damodaran:This is the NOL from prior years carried forward into this year.Aswath Damodaran:This is a statutory tax rate. I use the tax rate of the country the company is domiciled in. See worksheet embedded in this spreadshseet for country tax rates.Aswath Damodaran:If you are using trailing 12-month data, it is best if the last year is the 12-month period just prior to the one that you are using. Thus, if you are looking at June 2011-June 2012, your trailing 12 month for the income statement numbers will be June 2010-June 2011 and your balance sheet numbers should be as of June 2011.Aswath Damodaran:Enter the market value of those non-cash assets whose earnings are (and will never) show up as part of operating income. The most common non-operating assets are minority holdings in other companies (which are not consoldiated). You can find the book value of these holdings on the balance sheet, but see if you can convert to market value. (I apply a price to book ratio, based on the sector that the company is in to the book value).Aswath Damodaran:Enter the "market" value of minority interests. This is a uniquely accounting item and will be on the liability side of your company's balance sheet. It reflects the requirement that if you own more than 50% of another company or have effective control of it, you have to consolidate that company's statements with yours. Thus, you count 100% of that subsidiaries assets, revenues and operating income with your company, even if you own only 60%. The minority interest reflects the book value of the 40% of the equity in the subsidiary that does not belong to you. Again, it is best if you can convert the book value to a market value by applying the price to book ratio for the sector in which the subsidiary operatesAswath Damodaran:If you are in multiple businesses, you can construct your own weighted averages using the industry average table from this spreadsheet and your company's business breakdown.

Valuation outputBase year12345678910Terminal yearRevenue growth rate15.00%15.00%15.00%15.00%15.00%12.44%9.88%7.32%4.76%2.20%2.20%Revenues$ 85,246.00$ 98,032.90$ 112,737.83$ 129,648.51$ 149,095.79$ 171,460.15$ 192,789.80$ 211,837.43$ 227,343.93$ 238,165.50$ 243,405.14$ 248,760.06EBIT (Operating) margin0.58%1.32%2.06%2.81%3.55%4.29%5.03%5.77%6.52%7.26%8.00%8.00%EBIT (Operating income)$ 494.36$ 1,295.93$ 2,326.84$ 3,637.87$ 5,289.85$ 7,355.57$ 9,701.12$ 12,231.44$ 14,813.70$ 17,286.03$ 19,472.41$ 19,900.80$ 19,406.44Tax rate31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%31.80%EBIT(1-t)$ 337.15$ 883.82$ 1,586.90$ 2,481.03$ 3,607.68$ 5,016.50$ 6,616.17$ 8,341.84$ 10,102.94$ 11,789.07$ 13,280.18$ 13,572.35- Reinvestment$ 3,474.10$ 3,995.21$ 4,594.49$ 5,283.67$ 6,076.22$ 5,795.09$ 5,175.09$ 4,212.99$ 2,940.13$ 1,423.57$ 2,985.92$ 45,956.48FCFF$ (2,590.28)$ (2,408.31)$ (2,113.47)$ (1,675.99)$ (1,059.72)$ 821.07$ 3,166.76$ 5,889.95$ 8,848.94$ 11,856.62$ 10,586.43NOL$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0Cost of capital8.62%8.62%8.62%8.62%8.62%8.49%8.37%8.25%8.12%8.00%8.00%Cumulated discount factor0.92070.84760.78040.71850.66150.60970.56260.51970.48070.4451PV(FCFF)$ (2,384.79)$ (2,041.36)$ (1,649.33)$ (1,204.17)$ (700.99)$ 500.61$ 1,781.65$ 3,061.30$ 4,253.70$ 5,277.30Terminal cash flow$ 10,586.43Terminal cost of capital8.00%Terminal value$ 182,524.69PV(Terminal value)$ 81,240.57PV (CF over next 10 years)$ 6,893.92Sum of PV$ 88,134.49Probability of failure =0.00%Proceeds if firm fails =$44,067.25Value of operating assets =$ 88,134.49- Debt$ 8,352.76- Minority interests$ - 0+ Cash$ 10,252.00+ Non-operating assets$ - 0Value of equity$ 90,033.74- Value of options$0.00Value of equity in common stock$ 90,033.74Number of shares463.01Estimated value /share$ 194.45Price$ 287.06Price as % of value147.62%Implied variablesAfter year 10Sales to capital ratio3.683.683.683.683.683.683.683.683.683.68Invested capital$ 8,437$ 11,911$ 15,906$ 20,501$ 25,784$ 31,860$ 37,656$ 42,831$ 47,044$ 49,984$ 51,407ROIC4.00%7.42%9.98%12.10%13.99%15.75%17.57%19.48%21.48%23.59%25.83%10.00%

Check these revenues againsta. Overall market sizeb. Largest companies in this marketCompare this return on capital in year 10 againsta. the industry average(column E of worksheet)b. the return on capital after year 10If it is too high (low), you may want to lower (raise) your sales to capital ratioThis is how much capital you invested over the ten year period.This is is how much your operating income grew over the ten-year period.

Option valueValuing Options or WarrantsEnter the current stock price =$ 287.06Enter the strike price on the option =$ 0.85Enter the expiration of the option =3.79Enter the standard deviation in stock prices =40.00%(volatility)Enter the annualized dividend yield on stock =0.00%Enter the treasury bond rate =2.20%Enter the number of warrants (options) outstanding =122.80Enter the number of shares outstanding =463.01Do not input any numbers below this lineVALUING WARRANTS WHEN THERE IS DILUTIONStock Price=287.06# Warrants issued=122.8Strike Price=0.85# Shares outstanding=463Adjusted S =286.8525968024T.Bond rate=2.20%Adjusted K =0.85Variance=0.1600Expiration (in years) =3.79Annualized dividend yield=0.00%Div. Adj. interest rate=2.20%d1 =7.9721750822N (d1) =1d2 =7.1934581889N (d2) =1Value per option =$ 286.07Value of all options outstanding =$35,129.47

DiagnosticsVALUATION DIAGNOSTICSInvested capital at start of valuation$ 8,436.76Invested capital at end of valuation$ 51,407.32Change in invested capital over 10 years$ 42,970.57Change in EBIT*(1t) (after-tax operating income) over 10 years$ 18,978.05Marginal ROIC over 10 years44.17%ROIC at end of valuation25.83%Average WACC over the 10 years (compounded)8.43%Your calculated value as a percent of current price67.74%InputsIf calculated value is negative or looks too lowIf calculated value looks too highRevenue growth rate (input cell B3)Increase revenue growth rateDecrease revenue growth rateLast period EBIT as % of revenue (Input cell B14)Increase the target pre-tax operating marginDecrease the target pre-tax operating marginSales to Capital Ratio or reinvestment (Input cell B15)Decrease the sales/capital ratioIncrease the sales/capital ratioReturn on capital in perpetuity (B30 & B31)Increase relative to your cost of capitalIf higher than your cost of capital, lower towards your cost of capitalT

R& D converterR & D ConverterThis spreadsheet converts R&D expenses from operating to capital expenses. It makes the appropriate adjustments to operating income, netincome, the book value of assets and the book value of equity.InputsOver how many years do you want to amortize R&D expenses3! If in doubt, use the lookup table belowEnter the current year's R&D expense =$ 8,501.00The maximum allowed is ten yearsEnter R& D expenses for past years: the number of years that you will need to enter will be determined by the amortization periodDo not input numbers in the first column (Year). It will get automatically updated based on the input above.YearR& D Expenses-16565.00! Year -1 is the year prior to the current year-24564.00! Year -2 is the two years prior to the current year-32909.000000000OutputYearR&D ExpenseUnamortized portionAmortization this yearCurrent8501.001.008501.00-16565.000.674376.67$ 2,188.33-24564.000.331521.33$ 1,521.33-32909.000.000.00$ 969.6700.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ - 000.000.000.00$ - 0Value of Research Asset =$14,399.00$ 4,679.33Amortization of asset for current year =$4,679.33Adjustment to Operating Income =$3,821.67! A positive number indicates an increase in operating income (add to reported EBIT)Tax Effect of R&D Expensing$1,215

Aswath Damodaran:By expensing R&D rather than capitalizing it, the firm gets a tax benefit. This is the dollar value of that tax benefit.

Operating lease converterOperating Lease ConverterThe yellow cells are input cells. Please enter them.InputsOperating lease expense in current year =$ 759.00Operating Lease Commitments (From footnote to financials)YearCommitment! Year 1 is next year, .1$752.002$654.003$604.004$539.005$470.006 and beyond$2,116.00OutputPre-tax Cost of Debt =10.95%! If you do not have a cost of debt, use the synthetic rating estimatorNumber of years embedded in yr 6 estimate =4! I use the average lease expense over the first five yearsto estimate the number of years of expenses in yr 6Converting Operating Leases into debtYearCommitmentPresent Value1$ 752.00$ 677.782$ 654.00$ 531.283$ 604.00$ 442.244$ 539.00$ 355.705$ 470.00$ 279.556 and beyond$ 529.00$ 977.21! Commitment beyond year 6 converted into an annuity for ten yearsDebt Value of leases =$ 3,263.76Restated FinancialsDepreciation on Operating Lease Asset =$ 362.64! I use straight line depreciationAdjustment to Operating Earnings =$396.36! Add this amount to pre-tax operating incomeAdjustment to Total Debt outstanding =$ 3,263.76! Add this amount to debtAdjustment to Depreciation =$362.64

Cost of capital worksheetEstimation of Current Cost of CapitalOperating Regions ERP calculatorInputsCountryRevenuesERPWeightWeighted ERPEquityUnited States of America445175.00%99.62%4.98%Number of Shares outstanding =463.01Bolivia410.40%0.01%0.00%Current Market Price per share =$ 287.06Cameroon13013.25%0.29%0.04%China235.90%0.05%0.00%Approach for estimating betaMultibusiness(Global)Costa Rica58.30%0.01%0.00%If direct input, enter levered beta (or regression beta)1.20Vietnam713.25%0.02%0.00%Unlevered beta =1.120.00%0.00%0.00%Riskfree Rate =2.20%0.00%0.00%0.00%What approach do you want to use to input ERP?Operating regions0.00%0.00%0.00%Direct input for ERP (if you choose "will input"5.75%0.00%0.00%0.00%Equity Risk Premium used in cost of equity =5.56%0.00%0.00%0.00%Total44686100.00%5.03%DebtOperating Regions ERP calculatorBook Value of Straight Debt =$ 5,089.00RegionRevenuesERPWeightWeighted ERPInterest Expense on Debt =$ 175.00Africa10.04%0.00%0.0000%Average Maturity =3Asia6.51%0.00%0.0000%Approach for estimating pre-tax cost of debtSynthetic ratingAustralia & New Zealand5.00%0.00%0.0000%If direct input, input the pre-tax cost of debt3.500%Caribbean12.65%0.00%0.0000%If actual rating, input the ratingBaa2/BBBCentral and South America8.62%0.00%0.0000%If synethetic rating, input the type of company1Eastern Europe & Russia7.96%0.00%0.0000%Pre-tax Cost of Debt =10.95%Middle East6.14%0.00%0.0000%Tax Rate =32%North America367225.00%61.55%3.0777%Western Europe6.29%0.00%0.0000%Book Value of Convertible Debt =0Rest of the World229376.45%38.45%2.4798%Interest Expense on Convertible =0Total59659100.00%5.56%Maturity of Convertible Bond =0Market Value of Convertible =0Multi Business (US Industry Averages)BusinessRevenuesEV/SalesEstimated ValueUnlevered BetaDebt value of operating leases =$ 3,263.76Retail Store$ 84.000.6542$ 54.951.0462Internet$ 16.005.5678$ 89.091.0235Preferred Stock0.0000$ - 00.0000Number of Preferred Shares =00.0000$ - 00.0000Current Market Price per Share=700.0000$ - 00.0000Annual Dividend per Share =50.0000$ - 00.00000.0000$ - 00.0000Output0.0000$ - 00.0000Estimating Market Value of Straight Debt =$ 4,154.090.0000$ - 00.0000Estimated Value of Straight Debt in Convertible =$ - 00.0000$ - 00.0000Value of Debt in Operating leases =$ 3,263.760.0000$ - 00.0000Estimated Value of Equity in Convertible =$ - 00.0000$ - 00.0000Levered Beta for equity =1.17Company$ 100.00$ 144.041.0321EquityDebtPreferred StockCapitalMulti Business (Global Industry Averages)Market Value$ 132,911.65$ 7,417.84$ - 0$ 140,329.49BusinessRevenuesEV/SalesEstimated ValueUnlevered BetaWeight in Cost of Capital94.71%5.29%0.00%100.00%Retail (Internet)$ 40,248.003.1883$ 128,321.801.2231Cost of Component8.68%7.47%7.14%8.62%Entertainment$ 15,555.002.8095$ 43,702.500.8742Business & Consumer Services$ 3,856.001.3880$ 5,352.240.76670.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.00000.0000$ - 00.0000Company$ 59,659.00$ 177,376.531.1234

Aswath Damodaran:Use a sector average beta, if need be.Aswath Damodaran:If your company has risk exposure in emergiing markets, incorporate that risk premiums here. See worksheet on country risk premiums.Aswath Damodaran:Interest expense (gross) from most recent financial statement.Aswath Damodaran:Generally found in footnotes to financial statements.Aswath Damodaran:Current, long term cost of borrowing money. If you have a rating use it, if not use a synthetic rating. See the worksheet attached.Aswath Damodaran:If you pick operating regions or countries, please input the revenues by country or region in the table to the right.Aswath Damodaran:1: Large market cap (>$5 billion) and safe.2: Small market cap ( toRating isSpread is-1000000.199999D2/D12.00%0.20.649999Caa/CCC10.50%0.650.799999Ca2/CC9.50%0.81.249999C2/C8.75%1.251.499999B3/B-7.25%1.51.749999B2/B6.50%1.751.999999B1/B+5.50%22.2499999Ba2/BB4.00%2.252.49999Ba1/BB+3.00%2.52.999999Baa2/BBB2.00%34.249999A3/A-1.30%4.255.499999A2/A1.00%5.56.499999A1/A+0.85%6.58.499999Aa2/AA0.70%8.50100000Aaa/AAA0.40%For smaller and riskier firmsIf interest coverage ratio isgreater than toRating isSpread is-1000000.499999D2/D12.00%Rating isSpread is0.50.799999Caa/CCC10.50%A1/A+0.85%0.81.249999Ca2/CC9.50%A2/A1.00%1.251.499999C2/C8.75%A3/A-1.30%1.51.999999B3/B-7.25%Aa2/AA0.70%22.499999B2/B6.50%Aaa/AAA0.40%2.52.999999B1/B+5.50%B1/B+5.50%33.499999Ba2/BB4.00%B2/B6.50%3.53.9999999Ba1/BB+3.00%B3/B-7.25%44.499999Baa2/BBB2.00%Ba1/BB+3.00%4.55.999999A3/A-1.30%Ba2/BB4.00%67.499999A2/A1.00%Baa2/BBB2.00%7.59.499999A1/A+0.85%Caa/CCC8.75%9.512.499999Aa2/AA0.70%Ca2/CC9.50%12.5100000Aaa/AAA0.40%C2/C10.50%D2/D12.00%

Aswath Damodaran:If your most recent year's operating income is unusually low or high, you can use the average operating income from the last few years.Aswath Damodaran:Enter the interest expense from the most recent income statement.Aswath Damodaran:I use a 10 year government bond rate.

Industry Averages(US)Industry NameNumber of firmsAnnual Average Revenue growth - Last 5 yearsPre-tax Operating MarginAfter-tax ROCAverage effective tax rateUnlevered BetaEquity (Levered) BetaCost of equityStd deviation in stock pricesPre-tax cost of debtMarket Debt/CapitalCost of capitalSales/CapitalEV/SalesEV/EBITDAEV/EBITPrice/BookTrailing PEAdvertising314.60%11.44%11.59%16.81%1.131.309.54%83.02%5.54%26.35%7.90%1.391.6710.9114.643.2449.37Aerospace/Defense6612.33%9.99%18.08%23.03%0.870.927.62%44.75%4.04%16.46%6.77%2.671.3110.5413.084.5824.32Air Transport356.51%8.04%16.80%26.03%0.921.078.37%63.96%4.54%30.31%6.66%2.721.017.8912.565.0016.16Apparel467.48%10.70%14.62%18.85%1.171.209.06%67.00%5.04%8.57%8.54%1.922.0815.7019.424.6021.97Auto Parts540.90%6.88%14.06%17.88%1.501.6611.35%51.50%4.54%18.11%9.78%2.530.939.5613.482.9023.26Automotive119.66%6.55%6.10%17.79%1.141.7011.52%49.51%4.04%46.62%7.28%1.320.988.7615.021.5912.65Bank3750.00%NANA17.91%0.620.887.45%43.18%4.04%45.74%5.15%NANA5.405.401.2118.14Bank (Midwest)860.00%NANA21.88%0.860.957.80%32.12%4.04%24.39%6.49%NANA5.435.431.5918.57Beverage363.24%20.46%13.87%17.04%0.710.817.08%47.98%4.04%18.12%6.24%0.863.5914.3617.564.7928.96Biotechnology23223.92%22.27%16.57%2.63%1.271.249.22%83.67%5.54%11.16%8.56%0.938.1728.3736.706.4663.71Building Materials424.86%0.55%-0.38%11.27%1.281.6911.50%76.77%5.04%30.25%8.94%1.071.6426.98298.532.42755.50Cable TV188.74%19.14%11.44%20.75%0.710.967.83%37.32%4.04%35.25%5.92%0.862.628.0313.685.2425.95Chemical (Basic)18-6.24%14.15%15.30%21.56%1.201.329.63%38.16%4.04%18.89%8.27%1.421.598.3711.252.7614.55Chemical (Diversified)329.02%15.73%15.21%21.15%1.241.329.62%44.72%4.04%14.84%8.56%1.382.0710.1113.163.4722.16Chemical (Specialty)7311.69%11.66%14.17%15.52%1.031.138.71%60.60%4.54%16.36%7.73%1.701.7110.9214.683.9130.18Coal195.79%10.20%7.65%9.47%0.891.4410.26%46.07%4.04%43.67%6.84%0.871.406.9713.731.4336.36Computer Software18110.34%26.93%25.52%13.43%0.900.857.28%67.14%5.04%7.05%6.98%1.264.0912.9815.204.2865.03Computers/Peripherals68-0.77%15.88%29.07%7.63%1.291.289.45%77.26%5.04%7.89%8.95%2.451.678.6910.534.0651.52Diversified Co.12311.32%13.18%8.83%20.27%0.881.158.79%57.21%4.54%37.79%6.50%0.862.1812.6816.552.9128.68Drug19923.48%25.65%16.78%5.89%0.991.048.25%84.78%5.54%11.62%7.67%0.824.0611.8415.823.8549.11E-Commerce6613.83%12.17%9.11%10.24%0.820.827.13%72.45%5.04%7.30%6.83%1.006.0130.9749.336.33150.17Educational Services333.59%12.70%25.71%21.44%0.850.786.93%81.04%5.54%12.53%6.47%3.301.025.958.022.9324.10Electric Util. (Central)20-2.25%18.58%6.29%28.85%0.350.555.77%14.80%3.54%44.44%4.15%0.492.618.5114.041.6216.69Electric Utility (East)17-9.80%20.00%5.45%31.06%0.260.394.99%13.08%3.54%44.17%3.73%0.403.099.5615.461.5416.67Electric Utility (West)15-5.02%16.88%6.45%28.24%0.370.545.76%14.11%3.54%41.24%4.26%0.512.468.3214.601.5416.85Electrical Equipment60-2.61%6.74%4.41%16.78%1.341.359.77%67.15%5.04%10.49%9.06%1.461.9118.4028.292.8923.36Electronics995.20%5.97%12.06%11.65%1.101.148.74%75.34%5.04%15.50%7.85%2.680.839.6113.952.4125.26Engineering & Const3013.10%5.19%13.83%19.88%1.151.108.56%56.11%4.54%10.59%7.95%3.760.619.1711.812.2622.41Entertainment679.04%21.64%11.79%14.87%1.181.339.71%61.01%4.54%16.95%8.52%0.793.3112.8815.273.5025.36Entertainment Tech365.45%14.84%14.97%11.45%1.331.068.35%49.47%4.04%6.01%8.00%1.271.9610.0113.181.9220.10Environmental6116.24%14.23%7.15%10.82%0.340.455.31%77.98%5.04%28.42%4.66%0.762.3610.3516.552.5628.06Financial Svcs. (Div.)22519.02%48.76%11.19%16.74%0.951.198.98%54.62%4.54%35.09%6.79%0.325.4810.5811.242.3626.69Food Processing1046.58%9.23%12.40%21.85%0.760.857.29%51.38%4.54%17.03%6.52%1.781.4012.0415.153.2731.35Foreign Electronics10-9.48%4.56%6.75%31.10%1.151.118.57%29.83%4.04%24.76%7.05%2.230.545.3911.741.2134.22Funeral Services66.73%14.72%8.41%27.80%0.811.018.11%25.91%4.04%28.09%6.51%0.852.2411.6915.252.8722.40Furn/Home Furnishings282.97%6.84%10.10%19.54%1.331.3910.01%45.61%4.04%12.04%9.10%1.941.3414.0719.642.9522.35Healthcare Information197.12%13.68%10.00%18.01%1.081.078.37%54.31%4.54%7.71%7.93%1.114.7421.1134.625.371058.24Heavy Truck & Equip213.93%10.87%15.04%20.13%1.461.7912.01%39.16%4.04%29.49%9.18%1.951.148.2310.513.5819.88Homebuilding2514.61%-17.62%-17.93%7.09%1.401.7911.98%41.47%4.04%35.22%8.61%0.941.84NANA2.2525.56Hotel/Gaming5315.36%15.20%10.23%14.48%1.141.4910.47%58.46%4.54%30.65%8.10%0.813.1013.8120.375.4537.99Household Products267.33%16.93%14.72%23.88%0.860.947.75%40.37%4.04%13.70%7.02%1.192.6513.1315.634.3821.02Human Resources257.68%3.15%11.69%25.63%1.501.4710.40%50.44%4.54%8.33%9.76%6.090.5213.1416.573.2026.37Industrial Services1226.30%10.23%7.45%20.04%0.680.937.68%58.23%4.54%37.91%5.80%1.041.5611.2415.252.3537.63Information Services2910.26%19.64%12.07%17.00%1.021.148.73%55.92%4.54%16.06%7.76%0.834.0514.4820.625.10214.35Insurance (Life)310.00%NANA20.49%1.661.6211.14%29.38%4.04%26.98%8.79%NANA1.511.511.0314.72Insurance (Prop/Cas.)664.96%NANA12.62%0.810.817.09%27.38%4.04%17.91%6.25%NANA299.00301.421.3617.61Internet14518.48%14.24%25.22%11.27%1.020.957.77%90.80%6.04%2.34%7.67%2.295.5727.7739.096.83149.75Investment Co.1632.20%32.79%93.10%21.82%1.471.199.01%66.00%5.04%5.35%8.69%3.593.058.179.313.9222.44IT Services553.33%13.66%28.42%18.61%0.940.907.56%51.20%4.54%5.29%7.31%2.792.1312.6215.605.2036.04Machinery823.47%12.51%11.76%24.47%1.091.198.99%47.09%4.04%16.62%7.90%1.321.9211.6015.313.2427.41Maritime51-7.04%10.84%3.33%5.99%0.711.4810.46%75.61%5.04%57.16%6.21%0.362.9912.2027.611.2033.50Med Supp Invasive741.14%23.03%16.28%15.02%0.920.977.87%55.16%4.54%12.93%7.20%0.923.1310.9913.613.3231.42Med Supp Non-Invasive12711.25%7.77%19.25%11.14%0.870.887.45%62.14%4.54%9.09%7.02%3.351.1111.7314.283.9242.85Medical Services1068.35%10.56%13.73%18.76%0.730.917.60%72.79%5.04%31.09%6.18%2.000.927.188.722.5528.01Metal Fabricating250.74%13.69%13.72%16.65%1.311.4110.07%57.52%4.54%15.91%8.90%1.441.719.9212.492.8819.53Metals & Mining (Div.)712.64%24.25%13.22%11.84%1.221.399.98%82.87%5.54%19.45%8.68%0.792.176.718.961.9394.26Natural Gas (Div.)30-4.25%18.59%5.47%19.04%1.041.299.51%43.11%4.04%26.18%7.66%0.404.098.2522.002.0051.23Natural Gas Utility26-7.97%11.95%6.31%25.74%0.400.565.83%29.29%4.04%37.22%4.56%0.742.1211.4317.752.3017.95Newspaper122.29%13.30%12.66%29.11%1.902.0113.08%42.63%4.04%16.94%11.27%1.312.1311.1715.983.4826.37Office Equip/Supplies180.49%6.97%10.97%22.90%0.941.148.72%56.56%4.54%31.65%6.82%2.200.666.339.431.6720.21Oil/Gas Distribution11-2.80%12.54%6.46%17.33%0.671.018.11%37.38%4.04%39.32%5.88%0.662.4913.8419.832.7126.58Oilfield Svcs/Equip.8014.20%16.01%9.70%19.53%1.291.4710.37%53.47%4.54%20.69%8.79%0.802.168.8913.501.9931.86Packaging & Container262.70%9.62%11.37%23.58%0.871.098.48%44.69%4.04%28.58%6.75%1.621.299.0513.433.3521.90Paper/Forest Products295.05%8.71%8.49%12.27%0.931.178.91%43.52%4.04%27.43%7.13%1.391.328.9715.102.4622.48Petroleum (Integrated)2820.39%10.63%12.64%30.70%1.011.078.38%47.09%4.04%17.47%7.34%2.040.674.626.341.4417.57Petroleum (Producing)1687.01%24.23%11.54%13.09%1.231.4810.42%72.91%5.04%21.52%8.83%0.751.945.048.001.6251.32Pharmacy Services1613.34%4.76%8.27%23.64%0.901.008.05%55.91%4.54%15.78%7.21%2.730.7611.7015.882.4815.14Pipeline MLPs62-1.75%8.65%7.70%5.50%0.410.565.85%22.33%3.54%29.46%4.75%0.922.1216.9624.453.1840.98Power92-2.13%7.75%3.17%8.99%0.731.5010.53%88.17%5.54%57.27%6.40%0.611.729.7822.231.11206.85Precious Metals7414.61%31.98%8.98%10.50%0.730.837.19%66.24%5.04%25.52%6.13%0.392.034.556.340.7718.03Precision Instrument76-3.49%16.03%13.41%13.41%1.081.128.65%57.51%4.54%13.23%7.86%1.002.6612.1316.622.9632.15Public/Private Equity2014.68%33.10%13.90%20.12%1.581.6711.40%33.66%4.04%21.60%9.46%0.483.218.959.701.6223.33Publishing21-3.12%8.10%8.55%23.36%0.921.138.70%54.21%4.54%26.84%7.09%1.531.4410.6217.803.5218.78R.E.I.T.131-5.51%80.18%12.59%0.50%0.981.359.77%29.77%4.04%30.52%7.53%0.177.137.718.891.2619.03Railroad1312.09%29.50%12.36%30.96%1.241.4010.03%32.21%4.04%17.33%8.71%0.643.9810.4313.483.6021.75Recreation5310.80%12.22%9.17%20.89%1.151.379.87%46.18%4.04%23.96%8.08%0.952.0311.3016.582.5326.53Reinsurance120.00%NANA6.53%0.900.817.08%20.86%3.54%13.79%6.39%NANA37.1037.100.9210.51Restaurant671.40%16.31%19.44%22.49%0.941.008.04%53.50%4.54%11.67%7.42%1.722.7112.9616.617.2935.82Retail (Hardlines)6910.42%8.70%14.89%23.83%1.601.6811.44%52.44%4.54%11.18%10.46%2.551.8715.8121.506.8024.22Retail (Softlines)417.33%10.85%35.44%26.53%1.331.279.41%56.84%4.54%4.77%9.09%5.211.279.1211.695.7223.20Retail Automotive1911.71%6.83%9.54%32.89%1.041.279.40%36.44%4.04%28.17%7.43%2.171.0812.7315.834.4720.02Retail Building Supply108.37%9.34%16.18%24.71%1.101.178.90%28.59%4.04%9.81%8.27%2.711.5112.9516.195.6431.29Retail Store368.73%5.53%13.70%23.46%1.051.188.95%40.98%4.04%18.54%7.74%3.680.658.6511.833.2423.95Retail/Wholesale Food3210.91%3.78%11.65%29.85%0.680.786.95%30.14%4.04%23.34%5.90%4.530.549.5114.313.7829.78Securities Brokerage30-4.90%32.05%5.43%24.32%0.801.188.95%43.92%4.04%63.94%4.78%0.274.3512.0213.581.3528.12Semiconductor136-4.41%18.28%18.03%11.02%1.441.389.93%49.52%4.04%9.85%9.19%1.202.789.3515.193.1241.18Semiconductor Equip102.12%10.34%9.54%20.20%1.881.7311.71%36.83%4.04%11.65%10.63%1.192.0711.5519.972.2841.76Shoe125.03%11.18%26.04%23.43%1.391.329.62%49.98%4.04%3.79%9.34%3.142.0615.7518.405.1121.06Steel321.11%2.99%2.14%26.96%1.221.6611.36%39.65%4.04%38.89%7.88%1.150.8410.6227.920.9424.37Telecom. Equipment911.39%-0.15%-6.38%17.41%1.271.058.27%61.81%4.54%11.02%7.66%2.051.5942.19NA2.4033.44Telecom. Services616.10%19.86%12.19%17.82%0.901.058.30%62.49%4.54%25.17%6.90%0.922.005.6810.052.25108.85Telecom. Utility240.01%15.94%9.15%19.76%0.470.776.87%41.97%4.04%47.08%4.77%0.791.865.4211.682.3820.70Thrift1700.00%NANA16.03%0.790.696.51%34.84%4.04%8.01%6.18%NANA5.525.521.3255.55Tobacco1120.51%23.01%33.57%33.51%0.810.887.45%30.12%4.04%16.33%6.63%2.132.419.7110.4814.4516.95Toiletries/Cosmetics154.78%10.51%17.09%29.96%0.971.038.18%38.40%4.04%15.71%7.27%2.571.7312.8116.487.1329.82Trucking311.26%7.85%12.48%27.33%1.191.4010.05%42.67%4.04%23.56%8.26%2.361.067.7213.474.0221.22Water Utility94.44%27.63%6.15%34.28%0.310.455.27%14.75%3.54%40.25%4.01%0.334.3410.6515.691.9721.52Wireless Networking5311.83%7.57%4.09%11.06%0.931.188.96%62.14%4.54%28.78%7.17%0.703.2816.1143.413.9574.73

Global industry averagesIndustry NameNumber of firmsUnlevered beta corrected for cashMarket D/E RatioMarket Debt to CapitalEffective tax rateDividend PayoutNet MarginPre-tax Operating MarginROEROICSales/CapitalEV/SalesRevenue Growth rate: Last 5 yearsExpected Earnings growth: Next 5 yearsAdvertising2430.8929.21%22.60%17.09%45.34%4.06%9.24%9.99%29.68%3.871.605.04%16.29%Aerospace/Defense2070.9120.64%17.11%13.25%35.52%5.55%9.50%17.77%38.24%4.641.404.86%13.36%Air Transport1570.60112.37%52.91%15.59%38.95%2.33%5.93%7.99%6.49%1.301.117.67%19.39%Apparel11700.8220.20%16.80%14.75%39.23%6.63%14.05%12.94%18.76%1.571.786.38%20.51%Auto & Truck1290.8579.90%44.41%13.90%27.00%4.52%5.86%13.13%7.83%1.550.926.71%22.72%Auto Parts6091.1128.99%22.47%18.98%18.30%4.23%6.73%12.75%14.35%2.630.786.04%18.26%Bank5800.40292.47%74.52%18.14%55.19%27.02%1.29%11.61%0.11%0.109.848.98%12.38%Banks (Regional)9470.50108.37%52.01%19.85%22.18%22.31%0.52%8.16%0.10%0.244.126.44%8.34%Beverage1070.8922.46%18.34%10.40%48.83%10.13%14.54%22.39%22.04%1.692.426.04%12.59%Beverage (Alcoholic)2090.7123.02%18.71%18.10%31.09%17.36%20.22%23.05%15.32%0.933.556.88%10.94%Biotechnology7071.038.69%8.00%2.91%48.09%6.81%15.51%6.60%12.88%0.869.5811.03%32.55%Broadcasting1341.0834.41%25.60%17.82%33.53%14.14%18.16%21.25%17.39%1.172.784.12%11.19%Brokerage & Investment Banking5210.35319.89%76.18%11.69%26.21%9.22%1.79%7.73%0.28%0.185.984.59%17.90%Building Materials4140.8136.58%26.79%18.24%43.43%3.00%7.11%6.42%10.13%1.741.155.37%17.79%Business & Consumer Services7140.7724.95%19.97%17.75%49.04%3.99%8.69%12.35%21.52%3.011.397.52%16.51%Cable TV630.7250.82%33.70%15.62%29.69%7.69%18.88%21.29%19.08%1.203.1710.40%11.06%Chemical (Basic)7350.9214.60%12.74%15.40%54.60%4.17%8.94%8.80%11.00%1.452.686.09%22.47%Chemical (Diversified)841.0238.57%27.83%22.63%47.41%4.76%7.53%12.91%9.92%1.701.162.78%22.26%Chemical (Specialty)6810.8822.78%18.55%17.61%38.20%7.99%11.62%14.62%15.00%1.571.628.57%16.90%Coal & Related Energy3220.9057.62%36.56%6.27%NA-0.97%6.13%-2.01%8.98%1.560.9915.68%-0.79%Computer Services9390.8718.06%15.30%17.30%26.59%5.02%7.98%19.46%27.79%4.211.036.29%13.73%Computer Software10591.028.12%7.51%11.78%28.01%16.92%23.07%18.21%38.49%1.894.057.96%21.44%Computers/Peripherals3161.1113.70%12.05%11.98%30.46%7.48%10.59%20.02%29.25%3.141.20-0.84%16.87%Construction4770.6852.37%34.37%14.84%53.84%5.41%11.54%7.79%9.78%0.991.726.24%21.19%Diversified3410.5971.91%41.83%14.26%34.41%5.98%9.18%11.78%7.86%1.001.577.97%15.32%Educational Services1610.7927.72%21.70%14.13%51.20%2.61%9.19%4.28%12.71%1.611.608.79%19.76%Electrical Equipment8630.9825.40%20.26%13.53%61.98%3.19%7.14%6.89%12.91%2.091.294.67%21.87%Electronics11671.0725.77%20.49%13.29%30.48%3.54%5.67%7.43%9.83%2.000.972.29%19.03%Electronics (Consumer & Office)1851.0442.70%29.92%13.96%48.63%1.77%3.78%4.92%8.06%2.480.592.59%21.94%Engineering11670.8685.93%46.22%16.25%74.17%1.92%4.84%7.57%9.89%2.440.626.18%18.17%Entertainment3520.8727.07%21.30%9.04%20.35%11.53%17.28%15.37%23.13%1.472.812.02%25.22%Environmental & Waste Services3120.8637.33%27.18%11.45%61.28%3.46%9.72%7.40%15.96%1.861.748.64%14.17%Farming/Agriculture3410.6645.02%31.04%13.19%48.66%2.32%4.13%5.95%6.55%1.820.788.82%19.48%Financial Svcs.5480.21512.70%83.68%17.33%33.81%11.77%7.92%6.26%0.40%0.0613.999.27%17.22%Financial Svcs. (Non-bank & Insurance)1330.28297.89%74.87%12.60%15.41%16.67%5.14%7.99%0.64%0.147.5519.67%14.34%Food Processing12010.6626.33%20.84%16.40%69.45%4.88%8.36%12.12%14.58%2.091.397.16%18.55%Food Wholesalers1150.5979.91%44.42%17.20%44.01%1.34%2.95%12.77%14.29%5.840.372.07%14.61%Furn/Home Furnishings3190.8723.46%19.00%16.03%33.16%4.27%7.08%13.00%17.16%2.880.913.04%25.90%Healthcare Equipment4480.8116.06%13.83%8.83%36.54%9.12%18.70%11.74%25.53%1.502.867.64%17.56%Healthcare Facilities1700.4975.84%43.13%16.65%71.59%3.53%10.59%15.02%11.50%1.301.7712.96%24.78%Healthcare Products1590.8115.03%13.06%12.66%30.87%7.85%12.86%11.37%16.25%1.453.0216.82%17.06%Healthcare Services3220.7030.65%23.46%17.26%22.43%2.38%4.99%11.96%30.18%7.310.5812.41%15.91%Heathcare Information and Technology2781.0215.72%13.58%7.88%30.60%6.35%12.33%8.46%17.89%1.573.258.13%18.02%Heavy Construction3350.9558.48%36.90%17.11%53.79%3.13%6.60%8.67%8.46%1.551.163.60%15.03%Homebuilding1641.0455.58%35.72%16.65%16.67%5.63%5.52%10.57%5.48%1.191.223.48%7.33%Hotel/Gaming6480.7434.47%25.63%12.36%58.09%5.82%12.65%8.37%10.93%0.992.609.11%22.06%Household Products4580.7614.12%12.37%14.13%75.58%9.09%14.84%18.15%27.19%2.132.478.81%17.01%Information Services1770.7911.07%9.97%17.57%25.60%15.11%24.03%22.69%46.09%2.334.186.21%15.05%Insurance (General)2350.6641.00%29.08%13.95%45.22%3.83%8.75%7.18%12.88%1.710.819.69%13.58%Insurance (Life)1211.0551.73%34.09%18.80%34.92%4.69%8.72%9.37%12.09%1.710.9512.08%13.40%Insurance (Prop/Cas.)2190.6332.80%24.70%15.06%24.53%7.02%11.08%12.24%13.02%1.381.007.94%15.06%Internet software and services7061.103.96%3.81%8.65%6.85%14.93%19.41%13.84%23.77%1.346.769.58%25.78%Investment Co.4330.5885.62%46.13%6.96%34.66%18.51%13.91%10.15%4.46%0.344.97-2.32%11.70%Machinery12701.0121.45%17.66%17.45%36.51%5.80%9.05%10.97%13.46%1.801.502.08%18.51%Metals & Mining16911.0338.74%27.92%3.58%316.32%1.41%13.41%1.65%11.73%0.911.889.15%11.14%Office Equipment & Services1610.6238.62%27.86%17.66%45.05%3.39%8.05%9.81%14.30%2.161.060.82%13.47%Oil/Gas (Integrated)531.0430.51%23.38%24.53%30.85%7.34%10.15%15.23%12.66%1.650.806.66%35.36%Oil/Gas (Production and Exploration)11720.7487.13%46.56%6.93%45.72%10.79%-5.04%8.23%-1.47%0.314.5012.46%19.72%Oil/Gas Distribution1990.7356.54%36.12%9.63%108.55%4.24%8.21%11.22%8.65%1.171.9611.09%15.43%Oilfield Svcs/Equip.5930.9237.39%27.21%13.98%33.27%2.37%4.48%11.41%13.66%3.550.589.00%20.49%Packaging & Container3980.6446.63%31.80%17.72%44.40%3.62%8.01%9.57%11.57%1.761.156.04%15.75%Paper/Forest Products3030.6278.76%44.06%12.53%114.34%1.39%5.75%2.59%5.19%1.031.182.19%17.78%Pharma & Drugs8200.8312.89%11.41%13.54%50.49%14.89%21.35%16.90%21.64%1.173.5912.16%21.07%Power7430.49101.76%50.44%14.72%64.23%5.28%11.62%7.65%6.65%0.671.8612.80%9.97%Precious Metals11811.1531.00%23.66%2.16%NA-20.01%9.83%-11.36%5.17%0.542.2129.33%-1.21%Publshing & Newspapers3900.7733.16%24.90%15.19%187.87%1.66%8.19%2.87%11.77%1.701.570.47%8.91%R.E.I.T.490.13551.46%84.65%2.32%84.29%72.66%1.25%12.51%0.03%0.0332.5520.47%5.47%Railroad540.5847.73%32.31%25.54%26.19%11.61%19.80%12.90%7.92%0.542.764.64%11.23%Real Estate4220.7077.67%43.72%13.99%26.13%15.48%13.73%8.56%3.68%0.313.593.78%17.10%Real Estate (Development)6470.31352.08%77.88%17.32%34.06%19.06%22.85%14.43%9.44%0.506.7713.65%25.13%Real Estate (Operations & Services)4810.5578.73%44.05%12.90%25.16%25.07%29.44%9.81%5.31%0.216.1911.14%12.35%Recreation2860.8627.88%21.80%17.48%40.63%6.72%11.23%11.56%11.71%1.261.842.77%18.68%Reinsurance370.8934.27%25.52%10.81%32.45%7.16%11.06%10.68%13.03%1.320.8313.21%8.41%Restaurant3040.6430.25%23.23%21.05%50.33%5.48%12.50%17.79%16.11%1.632.055.91%15.64%Retail (Automotive)1480.6458.65%36.97%18.79%22.32%2.43%4.75%16.48%11.44%2.970.759.04%19.76%Retail (Building Supply)500.7429.98%23.07%26.05%36.81%4.51%7.93%15.90%11.86%2.021.254.20%22.18%Retail (Distributors)8480.5789.94%47.35%19.04%34.70%2.57%3.84%10.06%6.19%1.990.675.91%14.68%Retail (General)2290.7345.48%31.26%23.63%35.52%2.86%5.12%13.49%10.77%2.760.758.91%13.60%Retail (Grocery and Food)1740.5355.81%35.82%26.17%46.19%2.17%4.38%14.30%11.05%3.420.616.59%14.50%Retail (Internet)1181.226.14%5.78%13.55%8.66%3.13%4.77%14.86%27.88%6.753.199.44%29.50%Retail (Special Lines)5430.8029.07%22.52%20.75%34.63%3.98%8.29%14.99%15.98%2.431.174.59%14.41%Rubber& Tires930.9340.19%28.67%20.06%20.20%5.72%10.00%17.79%14.48%1.810.946.75%16.88%Semiconductor5591.3413.62%11.99%9.04%29.08%10.24%13.92%14.76%18.11%1.431.812.98%20.75%Semiconductor Equip2631.2318.75%15.79%9.61%170.91%1.34%4.92%1.32%4.57%1.032.41-0.13%20.03%Shipbuilding & Marine3560.6494.62%48.62%12.58%110.06%2.22%7.90%3.14%4.98%0.721.653.58%16.52%Shoe920.9011.17%10.05%20.41%30.99%7.50%10.69%18.98%20.37%2.391.718.24%13.36%Steel7140.7888.91%47.06%12.97%NA-0.21%3.56%-0.48%4.27%1.380.801.63%20.35%Telecom (Wireless)1160.7540.71%28.93%15.35%41.95%13.08%16.56%18.12%13.56%0.972.298.86%13.91%Telecom. Equipment5251.1315.03%13.07%9.56%75.82%3.76%9.74%5.87%17.10%1.941.754.09%16.31%Telecom. Services3170.5766.59%39.97%12.92%100.99%5.24%15.09%8.85%13.89%1.061.847.03%9.14%Thrift2810.023737.43%97.39%18.73%1.49%150.80%1.37%-92.45%0.02%0.0260.829.30%10.42%Tobacco530.6117.47%14.87%20.52%63.20%17.97%28.82%53.36%55.99%2.443.529.63%10.78%Tranportation2280.7147.23%32.08%20.49%46.54%5.12%8.62%15.64%11.79%1.721.3611.70%11.57%Trucking1910.5672.28%41.96%23.30%27.32%2.89%8.12%9.12%9.39%1.511.081.87%14.48%Utility (General)550.4395.19%48.77%25.18%102.76%3.38%10.82%7.01%8.66%1.071.274.05%4.99%Utility (Water)970.6152.46%34.41%15.09%46.04%20.10%28.18%14.98%8.97%0.374.439.67%16.97%Grand Total409430.6498.96%49.74%13.40%37.49%5.74%8.63%10.49%5.11%0.771.768.94%16.07%

Country tax ratesCountryMarginal tax rateAbu Dhabi19.22%Albania10.00%Andorra21.21%Angola35.00%Anguilla28.10%Argentina35.00%Armenia20.00%Aruba28.00%Australia30.00%Austria25.00%Azerbaijan16.38%Bahamas0.00%Bahrain0.00%Bangladesh27.50%Barbados25.00%Belarus18.00%Belgium33.99%Belize26.88%Benin28.10%Bermuda0.00%Bolivia25.00%Bosnia and Herzegovina10.00%Botswana22.00%Brazil34.00%British Virgin Islands14.92%Bulgaria10.00%Burkina Faso28.10%Cambodia20.00%Cameroon28.10%Canada26.00%Cape Verde28.10%Cayman Islands0.00%Channel Islands0.00%Chile20.00%China25.00%Colombia25.00%Cook Islands0.00%Costa Rica30.00%Croatia20.00%Cuba14.92%Curacao27.50%Cyprus12.50%Czech Republic19.00%Democratic Republic of Congo28.10%Denmark25.00%Dominican Republic29.00%Ecuador22.00%Egypt25.00%El Salvador30.00%Estonia21.00%Falkland Islands26.88%Fiji20.00%Finland24.50%France33.33%Gabon28.10%Georgia15.00%Germany29.55%Ghana21.21%Greece26.00%Greenland21.21%Guatemala31.00%Honduras35.00%Hong Kong16.50%Hungary19.00%Iceland20.00%India33.99%Indonesia25.00%Ireland12.50%Isle of Man0.00%Israel25.00%Italy31.40%Ivory Coast28.10%Jamaica25.00%Japan38.01%Jordan14.00%Kazakhstan20.00%Kenya30.00%Kuwait15.00%Kyrgyzstan16.38%Laos23.63%Latvia15.00%Lebanon19.22%Liechtenstein12.50%Lithuania15.00%Luxembourg29.22%Macau12.00%Macedonia10.00%Malawi30.00%Malaysia25.00%Malta35.00%Marshall Islands0.00%Mauritius15.00%Mexico30.00%Moldova16.38%Monaco21.21%Mongolia23.63%Montenegro9.00%Montserrat14.92%Morocco28.10%Mozambique32.00%Namibia33.00%Netherlands25.00%Netherlands Antilles14.92%New Zealand28.00%Nicaragua26.88%Niger28.10%Nigeria30.00%Norway28.00%Oman12.00%Pakistan35.00%Palestinian Authority19.22%Panama25.00%Papua New Guinea30.00%Paraguay10.00%Peru30.00%Philippines30.00%Poland19.00%Portugal25.00%Qatar10.00%Ras Al Kaminah19.22%Republic of the Congo28.10%Reunion28.10%Romania16.00%Russia20.00%Rwanda28.10%Saudi Arabia20.00%Senegal28.10%Serbia15.00%Sierra Leone28.10%Singapore17.00%Slovakia23.00%Slovenia17.00%South Africa28.00%South Korea24.20%Spain30.00%Sri Lanka28.00%St. Maarten14.92%St. Vincent & the Grenadines14.92%Sudan35.00%Suriname26.88%Sweden22.00%Switzerland18.01%Taiwan17.00%Tanzania30.00%Thailand20.00%Togo28.10%Trinidad & Tobago25.00%Tunisia30.00%Turkey20.00%Turks & Caicos Islands28.10%Uganda30.00%Ukraine19.00%United Arab Emirates55.00%United Kingdom23.00%United States40.00%Uruguay25.00%Venezuela34.00%Vietnam25.00%Zambia35.00%Zimbabwe25.75%RegionTax RateAfrica28.10%Asia23.63%Australia & New Zealand26.00%Caribbean14.92%Central and South America26.88%Eastern Europe & Russia16.38%Middle East19.22%North America33.00%Western Europe21.21%Global22.04%

Country equity risk premiumsCountryLong-Term RatingAdj. Default SpreadTotal Risk PremiumCountry Risk PremiumRegionAbu DhabiAa20.50%5.75%0.75%Middle EastAlbaniaB14.50%11.75%6.75%Eastern Europe & RussiaAndorraA31.20%6.80%1.80%Western EuropeAngolaBa33.60%10.40%5.40%AfricaArgentinaB36.50%14.75%9.75%Central and South AmericaArmeniaBa23.00%9.50%4.50%Eastern Europe & RussiaArubaBaa11.60%7.40%2.40%CaribbeanAustraliaAaa0.00%5.00%0.00%Australia & New ZealandAustriaAaa0.00%5.00%0.00%Western EuropeAzerbaijanBaa32.20%8.30%3.30%Eastern Europe & RussiaBahamasBaa11.60%7.40%2.40%CaribbeanBahrainBaa21.90%7.85%2.85%Middle EastBangladeshBa33.60%10.40%5.40%AsiaBarbadosBa12.50%8.75%3.75%CaribbeanBelarusB36.50%14.75%9.75%Eastern Europe & RussiaBelgiumAa30.60%5.90%0.90%Western EuropeBelizeCaa29.00%18.50%13.50%Central and South AmericaBeninB25.50%13.25%8.25%AfricaBermudaAa30.60%5.90%0.90%CaribbeanBoliviaBa33.60%10.40%5.40%Central and South AmericaBosnia and HerzegovinaB36.50%14.75%9.75%Eastern Europe & RussiaBotswanaA20.85%6.28%1.28%AfricaBrazilBaa21.90%7.85%2.85%Central and South AmericaBulgariaBaa21.90%7.85%2.85%Eastern Europe & RussiaBurkina FasoB25.50%13.25%8.25%AfricaCambodiaB25.50%13.25%8.25%AsiaCameroonB25.50%13.25%8.25%AfricaCanadaAaa0.00%5.00%0.00%North AmericaCape VerdeB25.50%13.25%8.25%AfricaCayman IslandsAa30.60%5.90%0.90%CaribbeanChileAa30.60%5.90%0.90%Central and South AmericaChinaAa30.60%5.90%0.90%AsiaColombiaBaa32.20%8.30%3.30%Central and South AmericaCook IslandsB14.50%11.75%6.75%Australia & New ZealandCosta RicaBaa32.20%8.30%3.30%Central and South AmericaCroatiaBa12.50%8.75%3.75%Eastern Europe & RussiaCubaCaa17.50%16.25%11.25%CaribbeanCuracaoB14.50%11.75%6.75%CaribbeanCyprusCaa310.00%20.00%15.00%Western EuropeCzech RepublicA10.70%6.05%1.05%Eastern Europe & RussiaDemocratic Republic of CongoB36.50%14.75%9.75%AfricaDenmarkAaa0.00%5.00%0.00%Western EuropeDominican RepublicB14.50%11.75%6.75%CaribbeanEcuadorCaa17.50%16.25%11.25%Central and South AmericaEgyptCaa17.50%16.25%11.25%AfricaEl SalvadorBa33.60%10.40%5.40%Central and South AmericaEstoniaA10.70%6.05%1.05%Eastern Europe & RussiaFijiB14.50%11.75%6.75%AsiaFinlandAaa0.00%5.00%0.00%Western EuropeFranceAa10.40%5.60%0.60%Western EuropeGabonBa33.60%10.40%5.40%AfricaGeorgiaBa33.60%10.40%5.40%Eastern Europe & RussiaGermanyAaa0.00%5.00%0.00%Western EuropeGhanaB14.50%11.75%6.75%AfricaGreeceCaa310.00%20.00%15.00%Western EuropeGuatemalaBa12.50%8.75%3.75%Central and South AmericaHondurasB25.50%13.25%8.25%Central and South AmericaHong KongAa10.40%5.60%0.60%AsiaHungaryBa12.50%8.75%3.75%Eastern Europe & RussiaIcelandBaa32.20%8.30%3.30%Western EuropeIndiaBaa32.20%8.30%3.30%AsiaIndonesiaBaa32.20%8.30%3.30%AsiaIrelandBa12.50%8.75%3.75%Western EuropeIsle of ManAa10.40%5.60%0.60%Western EuropeIsraelA10.70%6.05%1.05%Middle EastItalyBaa21.90%7.85%2.85%Western EuropeJamaicaCaa310.00%20.00%15.00%CaribbeanJapanAa30.60%5.90%0.90%AsiaJordanB14.50%11.75%6.75%Middle EastKazakhstanBaa21.90%7.85%2.85%Eastern Europe & RussiaKenyaB14.50%11.75%6.75%AfricaKoreaAa30.60%5.90%0.90%AsiaKuwaitAa20.50%5.75%0.75%Middle EastLatviaBaa21.90%7.85%2.85%Eastern Europe & RussiaLebanonB14.50%11.75%6.75%Middle EastLiechtensteinAaa0.00%5.00%0.00%Western EuropeLithuaniaBaa11.60%7.40%2.40%Eastern Europe & RussiaLuxembourgAaa0.00%5.00%0.00%Western EuropeMacaoAa30.60%5.90%0.90%AsiaMacedoniaBa33.60%10.40%5.40%Eastern Europe & RussiaMalaysiaA31.20%6.80%1.80%AsiaMaltaA31.20%6.80%1.80%Western EuropeMauritiusBaa11.60%7.40%2.40%AsiaMexicoBaa11.60%7.40%2.40%Central and South AmericaMoldovaB36.50%14.75%9.75%Eastern Europe & RussiaMongoliaB14.50%11.75%6.75%AsiaMontenegroBa33.60%10.40%5.40%Eastern Europe & RussiaMontserratBaa32.20%8.30%3.30%CaribbeanMoroccoBa12.50%8.75%3.75%AfricaMozambiqueB14.50%11.75%6.75%AfricaNamibiaBaa32.20%8.30%3.30%AfricaNetherlandsAaa0.00%5.00%0.00%Western EuropeNew ZealandAaa0.00%5.00%0.00%Australia & New ZealandNicaraguaB36.50%14.75%9.75%Central and South AmericaNigeriaBa33.60%10.40%5.40%AfricaNorwayAaa0.00%5.00%0.00%Western EuropeOmanA10.70%6.05%1.05%Middle EastPakistanCaa17.50%16.25%11.25%AsiaPanamaBaa21.90%7.85%2.85%Central and South AmericaPapua New GuineaB14.50%11.75%6.75%AsiaParaguayBa33.60%10.40%5.40%Central and South AmericaPeruBaa21.90%7.85%2.85%Central and South AmericaPhilippinesBaa32.20%8.30%3.30%AsiaPolandA20.85%6.28%1.28%Eastern Europe & RussiaPortugalBa33.60%10.40%5.40%Western EuropeQatarAa20.50%5.75%0.75%Middle EastRas Al KaminahA20.85%6.28%1.28%Middle EastRepublic of the CongoBa33.60%10.40%5.40%AfricaRomaniaBaa32.20%8.30%3.30%Eastern Europe & RussiaRussiaBaa11.60%7.40%2.40%Eastern Europe & RussiaRwandaB25.50%13.25%8.25%AfricaSaudi ArabiaAa30.60%5.90%0.90%Middle EastSenegalB14.50%11.75%6.75%AfricaSerbiaB14.50%11.75%6.75%Eastern Europe & RussiaSingaporeAaa0.00%5.00%0.00%AsiaSlovakiaA20.85%6.28%1.28%Eastern Europe & RussiaSloveniaBa12.50%8.75%3.75%Eastern Europe & RussiaSouth AfricaBaa11.60%7.40%2.40%AfricaSpainBaa32.20%8.30%3.30%Western EuropeSri LankaB14.50%11.75%6.75%AsiaSt. MaartenBaa11.60%7.40%2.40%CaribbeanSt. Vincent & the GrenadinesB25.50%13.25%8.25%CaribbeanSurinameBa33.60%10.40%5.40%Central and South AmericaSwedenAaa0.00%5.00%0.00%Western EuropeSwitzerlandAaa0.00%5.00%0.00%Western EuropeTaiwanAa30.60%5.90%0.90%AsiaThailandBaa11.60%7.40%2.40%AsiaTrinidad and TobagoBaa11.60%7.40%2.40%CaribbeanTunisiaBa33.60%10.40%5.40%AfricaTurkeyBaa32.20%8.30%3.30%Western EuropeUgandaB14.50%11.75%6.75%AfricaUkraineCaa17.50%16.25%11.25%Eastern Europe & RussiaUnited Arab EmiratesAa20.50%5.75%0.75%Middle EastUnited KingdomAa10.40%5.60%0.60%Western EuropeUnited States of AmericaAaa0.00%5.00%0.00%North AmericaUruguayBaa32.20%8.30%3.30%Central and South AmericaVenezuelaCaa17.50%16.25%11.25%Central and South AmericaVietnamB25.50%13.25%8.25%AsiaZambiaB14.50%11.75%6.75%AfricaRegionWeighted Average: Default SpreadsWeighted Average: TRPWeighted Average: CRPAfrica3.36%10.04%5.04%Asia1.00%6.51%1.51%Australia & New Zealand0.00%5.00%0.00%Caribbean5.10%12.65%7.65%Central and South America2.42%8.62%3.62%Eastern Europe & Russia1.98%7.96%2.96%Middle East0.76%6.14%1.14%North America0.00%5.00%0.00%Western Europe0.86%6.29%1.29%Rest of the World1.35%6.45%1.35%

Traiing 12 monthLast 10KFirst X months: Last yearFirst X months: Current yearTrailing 12 monthRevenues$74,452.00$48,865.00$59,659.00$85,246.00Technology & Media content$6,565.00$4,703.00$6,639.00$8,501.00Operating income or EBIT$745.00$235.00-$412.00$98.00Interest expenses$141.00$102.00$136.00$175.00Book value of equity$9,746.00$10,336.00Book value of debt$5,181.00$5,089.00Do you have operating lease commitments?Cash and cross holdings$12,447.00$10,252.00Non-operating assets$0.00$0.00Minority interests$0.00$0.00Number of shares outstanding =Current stock price =Effective tax rate =31.80%22.31%31.80%Marginal tax rate =Lease commitmentsYear 1$752.00NAYear 2$654.00NAYear 3$604.00NAYear 4$539.00NAYear 5$470.00NABeyond year 5$2,116.00NA

Answer keysYes/NoBook or Market ValueERP choicesCost of debtSynthetic ratingBetaOperating MarginBusiness25th percentileMedian75th percentileAmazon Revenue WeightYesBWill inputDirect input1Direct input25th (Large US retail)2.85%Large retail2.85%5.14%10.17%67.46%NoVCountry of incorporationSynthetic rating2Single Business(US)Median (Large US retail)5.14%Media8.99%13.97%21.09%26.07%Operating countriesActual ratingSingle Business(Global)75th (Large US retail)10.17%Cloud1.35%4.25%7.50%6.46%Operating regionsMultibusiness(US)25th (US retail & media)4.35%Multibusiness(Global)Median (US retail & media)7.38%75th (US retail & media)12.84%

What if tableTarget pre-tax operating margin in 20242.50%5%7.50%10%12.50%15%Revenues in 2024$100$34.36$69.25$104.14$139.03$173.92$208.81$150$30.75$79.34$127.93$176.52$225.11$273.70$200$27.20$90.19$153.19$216.18$279.17$342.17$250$23.76$101.35$178.94$256.52$334.11$411.69$300$20.29$113.22$206.16$299.10$392.03$484.97$350$17.02$124.85$232.67$340.50$448.32$556.14$400$13.90$136.28$258.66$381.03$503.41$625.78