Teuer Furniture B Case solution

7/25/2019 Teuer Furniture B Case solution

1/43

Group 4 , Section B

Name Roll No.

Vishwas 342

Shorya Chaplot 344

Shubham Gupta 346

Tushar Johri 354


2/43

These spreadsheet exhibits relate to the case Teuer Furniture (B): Multiples Valuation, Case

2014 by the Kello !chool o" a$ae%e$t at &orth'ester$ ($i)ersity. This case 'as prep*ro"essor itchell +. *eterse$. Teer -r$itre is a "ictio$al co%pa$y 'hose pro"ile 'as creadata "ro% real i$dstry leaders. Cases are de)eloped solely as the basis "or class discssio$.$ot i$te$ded to ser)e as e$dorse%e$ts, sorces o" pri%ary data, or illstratio$s o" e""ecti)e o%a$ae%e$t. To order copies or reest per%issio$ to reprodce %aterials, call /00477/700 otside the ($ited !tates or Ca$ada5 or e%ail cstser)6hbsp.har)ard.ed. &o papblicatio$ %ay be reprodced, stored i$ a retrie)al syste%, sed i$ a spreadsheet, or tra$s"or% or by a$y %ea$selectro$ic, %echa$ical, photocopyi$, recordi$, or other'ise'ithoper%issio$ o" Kello Case *blishi$.


3/43

KEL790.

ared byed based o$Cases arei$e""ecti)e 3or 17rt o" thisitted i$ a$yt the


4/43

Exhibit 1-A: Bassett Furniture Industries Inc (BSET)

Income Statement 12/31/212 12/31/211

8e)e$e 29.7 2.2

Cost o" oods sold 12/.4 12.

!elli$, e$eral, a$d ad%i$istrati)e 14./ 122.0

epreciatio$ 0.0 0.0

8: 0.0 0.0

;ther expe$ses 3i$co%e5 .2 4./


5/43

Cash "lo' to assets 2.2

!toc@ price 14.2

Co%%o$ shares otsta$di$ 10.9

ar@et )ale o" eity 14.7

E$terprise )ale 112.2

atios and Summar$ 'ata

!ales ro'th .A 7.A

>ross pro"it %ari$ 2.4A 0.4A

&et pro"it %ari$ 9.9A 21.9A

+8Bsales ./A ./A

! 4.1A .9A

+*BC>! 17.A 1.0A

&et i$)est%e$t 2/.

u"ti*"es

+sset priceBCash "lo' assets &-

+sset priceB+d=sted $et i$co%e 4.x

+sset priceB!ales 0.4x

Eity priceB&et i$co%e ./x


6/43

12/31/21 12/31/2+ 12/31/2,

2. 22.7 2//.

122. 129.9

110./ 10./

0.0 0.0

0.0 0.0

4.9 21.

0./ 2.0

2.2 24.

0.2 1./

2.0 22.7

.0 22.

0. 1.7

2.7 20.9

12/31/21 12/31/2+

11.1 2.2

1. 4.

41./ .4

7.0 1.

91. 104.

4. 0.

1.1 14.9

44. 4.1

10./ 111.7

197. 21.2

24.9 14.7

17.4 17.2

0.0 0.0

9. 4.4

10.1 7.0

1./ 4.

4. 2.0

24.9 0.7

10. 110.

197. 21.2


7/43

1.1A 19.A

47.9A 44.2A

0./A 9./A

1.4A 14.9A

4.1A 2.7A

20.A 11.A


8/43

Firms Market Cap

assett -r$itre


9/43

Exhibit 1-B: Ethan A""en Interiors Inc (ET)

Income Statement ./3/212 ./3/211

8e)e$e 729.4 79.0

Cost o" oods sold 9.1 29.

!elli$, e$eral, a$d ad%i$istrati)e 22.0 29.7

epreciatio$ 1/. 20./

8: 0.0 0.0

;ther expe$ses 3i$co%e5 0.0 0.0


10/43

Exhibit 1-: Furniture Brands Internationa" Inc (FB0)

Income Statement 12/2+/212 12/31/211

8e)e$e 1072. 1107.7

Cost o" oods sold /27. /7.1

!elli$, e$eral, a$d ad%i$istrati)e 22./ 270.9

epreciatio$ 1/.9 21.9

8: 0.0 0.0

;ther expe$ses 3i$co%e5 1. 20./


11/43

Co%%o$ shares otsta$di$ /.0


E$terprise )ale 12./


!ales ro'th .2A 4.A

>ross pro"it %ari$ 22./A 24.4A

&et pro"it %ari$ 4.4A .9A

+8Bsales 11.7A 9.7A

! 29.A 27.A

+*BC>! 1.7A 10.2A

&et i$)est%e$t 3.05

u"ti*"es

+sset *riceBCash "lo' assets &-

+sset priceB+d=sted $et i$co%e &-

+sset *riceB!ales 0.1x

Eity *riceB&et i$co%e &-


12/43

12/31/21 12/31/2+ 12/31/2,

119.9 1224.4 1744.

/79.2 9/.2

2/.2 22./

2.9 20.7

0.0 0.0

1. ./

.2 .

47.9 17.

/.9 7./

9.0 10/.7

44./ 171.1

/. .7

.4 10.4

12/31/21 12/31/2+

2.0 /.9

114. 1/4.

249.7 22.1

11.2 9.

427.4 0.7

124.9 14.4

/. /7.

7. 2.4

249.0 24.4

7.4 7/.1

79.9 /./

1.2 7.9

0.0 0.0

0.0 17.0

0.0 0.0

141.1 17./

77.0 7/.0

19/./ 240.

29. 22./

7.4 7/.1


13/43

.A 29./A

24.2A 19.A

.4A /.9A

9.9A 1.1A

2/.4A 22.9A

9.1A /.A


14/43

Exhibit 1-': aert$ Furniture om*anies Inc (T)


8e)e$e 70.4 21.4

Cost o" oods sold 1/.0 00.2

!elli$, e$eral, a$d ad%i$istrati)e 09. 297./

epreciatio$ 19.4 1/.2

8: 0.0 0.0

;ther expe$ses 3i$co%e5 0./ 0.2


15/43

Co%%o$ shares otsta$di$ 22.


E$terprise )ale 2/.7


!ales ro'th 7.9A 0.2A

>ross pro"it %ari$ 2.A 1.7A

&et pro"it %ari$ 2.2A 2.A

+8Bsales 1.4A 1./A

! 0.A 1.2A

+*BC>! /.9A 7.1A

&et i$)est%e$t 30.95

u"ti*"es

+sset *riceBCash "lo' assets 20.x


+sset *riceB!ales 0.x

Eity *riceB&et i$co%e 24.x


16/43

12/31/21 12/31/2+ 12/31/2,

20. //. 91.1

01. 2/2./

29.4 292.2

1.9 19.

0.0 0.0

.0 1.4

0./ 0./

/.7 .4

0.2 1.2

/.4 4.2

9. 4.

0. 1.0

9.2 .

12/31/21 12/31/2+

/.1 44.

1./ 1.

91.9 9.

1.2 1.2

17.9 1/.

17. 17.4

0.0 0.0

17.7 1.2

19.2 192.

70.2 0.9

1/.1 19.1

1.4 0.2

0.0 0.0

0. 0.4

20. 21./

70. 71.4

/. ./

7.9 /.1

2.2 244.

70.2 0.9


17/43

.A 14.9A

1.4A 1.9A

1.4A 0.7A

2.2A 2.A

0.A .0A

.0A ./A


18/43

Exhibit 1-E: &a--Bo$ Incor*orated (&B)

Income Statement 4/2,/212 4/3/211

8e)e$e 121.7 11/7.1

Cost o" oods sold /1./ /2./


epreciatio$ 2. 24.

8: 0.0 0.0

;ther expe$ses 3i$co%e5 1/. 2.1


19/43


ar@et )ale o" eity /01.4

E$terprise )ale /./


!ales ro'th ./A 0.7A

>ross pro"it %ari$ 0./A 29./A

&et pro"it %ari$ 7.2A 1.A

+8Bsales 1.A 1.A

! 1.9A 1.A

+*BC>! .A .9A

&et i$)est%e$t 1/.2

u"ti*"es

+sset priceBCash "lo' assets 9.1x


+sset priceB!ales 0.x

Eity priceB&et i$co%e 9.0x


20/43

4/24/21 4/25/2+ 4/25/2,

1179.2 122.7 140.9

/04. //7.9

07. 40/.7

2.2 24.1

0.0 0.0

./ 2.

.0 .

44.7 97.0

12.7 24.

2.1 121.

47.7 91.4

1. 22.9

4.2 114.4

4/24/21 4/25/2+

10/.4 .1

1.0 147.9

12. 140.2

21.2 2.7

427.1 47./

1/.9 10.2

.1 .1

/./ 1.4

1/0.7 204./

07./ 2.

4.7 41.

1.7 7.7

0.0 0.0

1.1 /.7

9./ 0.0

147. 12.0

4.9 2.1

7.7 /.

9./ 0.7

07./ 2.


21/43

.9A 1.A

1./A 27.A

2.7A 9.9A

14.0A 12.1A

1.A 1./A

./A 4.7A


22/43

Exhibit 1-F: estoration ard6are o"din7s Inc (0)

Income Statement 2/2/213 1/2,/212

8e)e$e 119.0 9/.1

Cost o" oods sold 7. 01.7


epreciatio$ 0.0 0.0

8: 0.0 0.0

;ther expe$ses 3i$co%e5 11.1 1.


23/43

Cash "lo' to assets 17./

!toc@ price 70.

Co%%o$ shares otsta$di$ /.9

ar@et )ale o" eity 27.

E$terprise )ale 2/14.2


!ales ro'th 24.A 24.0A

>ross pro"it %ari$ 3re)e$eC>!5B8e)e$e .A 7.2A

$et pro"it %ari$ 3$et pro"itBre)e$e5 1.1A 2.2A

+8Bsales 1.4A 1.2A

! 4.7A 40.9A

+*BC>! 10./A 7.9A

&et i$)est%e$t 11.9

u"ti*"es

+sset *riceBCash "lo' assets &-

+sset priceB+d=sted $et i$co%e &-


Eity *riceB&et i$co%e &-


24/43

1/2+/211 1/3/21 1/3/21

772./ 2.7 2//.

499.0 42.1

274./ 2/.9

0.0 0.0

0.0 0.0

2.1 10.

.2 .2

.4 29.0

0.7 0.4

7.1 2/.

.2 2./

0.4 0.4

. 2.

1/2+/211 1/3/21

1.4 1.2

4. 4.

20.4 149.0

20.4 1/./

244. 1/.

7. 2.2

17/. 1/2.

2. 1.

27.4 24.0

02.0 41.

1.4 47.0

9. 7./

0.0 0.0

2.4 1.9

. 0.

129.7 117.2

111./ 7.4

44. ./

21./ 221.1

02.0 41.


25/43

2.A 117.0A

.4A 2.4A

0.9A 4.A

0.A 0.7A

41.4A .2A

10.A 11.1A


26/43

Exhibit 1-8: Stan"e$ Furniture om*an$ (ST&9)


8e)e$e 9/. 104.

Cost o" oods sold /.9 92.2

!elli$, e$eral, a$d ad%i$istrati)e 1. 17.

epreciatio$ 1./ 1.

8: 0.0 0.0

;ther expe$ses 3i$co%e5 9.0 4.1


27/43

Co%%o$ shares otsta$di$ 14.

ar@et )ale o" eity .

E$terprise )ale 29.


!ales ro'th ./A 2.A


&et pro"it %ari$ 0./A 4./A

+8Bsales 10.2A 9./A

! 40./A .7A

+*BC>! 10.1A 10./A

&et i$)est%e$t 10.0

u"ti*"es

+sset priceBCash "lo' assets 1.x

+sset priceB+d=sted $et i$co%e 0.9x

+sset priceB!ales 0.x



28/43

12/31/21 12/31/2+ 12/31/2,

17.0 10. 22.

1.1 1/.7

11.2 20.7

9.4 .0

0.0 0.0

7. 9.

. .7

47./ 19.1

4.0 7.4

4./ 11.7

44.2 1.4

.7 .9

40. 9.

12/31/21 12/31/2+

2. 41./

1./ 22.2

2.7 7.2

.9 /.

72.0 109.

1.0 1.4

0.0 9.1

0.4 0.

1.4 40.9

//.4 10.

9.1 11.

7.7 9.2

0.0 0.0

2.4 1.4

0.0 0.0

19.2 22.

0.0 2.4

7.4 /.9

1./ 92.9

//.4 10.4


29/43

14.A 29.2A

11./A 1.1A

2.0A 7.A

10.1A 1./A

1./A 2.A

.0A 7.A


30/43

Exhibit 1-: Tem*ur Sea"$ Internationa" Inc (T;)


8e)e$e 1402.9 1417.9

Cost o" oods sold //. 74./

!elli$, e$eral, a$d ad%i$istrati)e 40/.7 41.7

epreciatio$ 42.0 1.0

8: 1. 9.9

;ther expe$ses 3i$co%e5 0. 0.2


31/43


ar@et )ale o" eity 1//0.0

E$terprise )ale 20.7


!ales ro'th 1.1A 2/.A


&et pro"it %ari$ 7.A 1.A

+8Bsales 9.A 10.0A

! 1.A 1.A

+*BC>! 12.A 10.4A

&et i$)est%e$t 27.1

u"ti*"es




Eity priceB&et i$co%e 17.x


32/43

12/31/21 12/31/2+ 12/31/2,

110.4 /1.2 927./

0.0 47.

2/.1 20/.

44.0 40.2

7.4 0.0

0. 0.4

14. 17.

20.9 12/.0

7.7 4.0

17.2 /.0

24.4 14.4

7/.4 4/.9

17.0 9.

12/31/21 12/31/2+

. 14.0

11. 10.

9.9 7.7

2.4 1.7

271. 209.0

19./ 172.

2/1.2 2/.1

. ./

444. 44.4

71.0 4.4

4/. 47./

0. /1.

0.0 0.0

0.0 0.0

7.7 7.

14.2 1.

407.0 297.

.7 7.1

12.0 172.

71.0 4.4


33/43

.0A 10.4A

0.2A 47.4A

14.2A 10.2A

10.A 12.7A

12.7A 1.2A

/./A 10.9A


34/43

Exhibit 1-I:


35/43


ar@et )ale o" eity 4277.

E$terprise )ale //.


!ales ro'th /.7A .2A


&et pro"it %ari$ .4A .4A

+8Bsales 1.A 1.2A

! 2.1A 24.A

+*BC>! 10.A 9.7A

&et i$)est%e$t 10.

u"ti*"es






36/43

1/3/211 1/31/21 1/31/2+

04.2 102.7 4.7

210. 1999.

///. 797.1

144. 11./

0.0 0.0

17. 2.7

0.4 1.4

2.1 120.

122./ 42./

200.2 77.

2.4 121.7

12.0 4.

200.4 7/.

1/3/211 1/31/21

2/.4 1.9

41. 44.2

1.4 4.1

14. 1.9

147. 11/0.2

70. /29.0

0.0 0.0

. 9.9

7/4.2 /99.0

211.7 2079.2

22/.0 1//.2

122.4 107.7

0.0 0.0

1. 1.

29./ 2.9

11.7 .

7.1 /.7

24.1 29.4

12/.9 1211.

211.7 2079.2


37/43

12.9A 7./A

9.2A .A

.7A 2.A

1.2A 1.4A

24.1A 2.A

10.7A 9.4A


38/43

Exhibit 2: Teuer Furniture


8e)e$e 14/.2 14.1

Cost o" oods sold 2.0 .

!elli$, e$eral, a$d ad%i$istrati)e 41. .7

epreciatio$ 1. 1./

8: 0.0 0.0

;ther expe$ses 3i$co%e5 7.4 .7


39/43

Cash "lo' to assets 12.

!toc@ price



E$terprise )ale 0.0


!ales ro'th 10.A 20.A

>ross pro"it %ari$ /.2A /.A

&et pro"it %ari$ 14.A 14.9A

+8Bsales 2.A 1.A

! ./A 2.7A

+*BC>! 1/.A 1/.0A

&et i$)est%e$t 9.1

u"ti*"es

+sset *riceBCash "lo' assets 0.0x



Eity *riceB&et i$co%e 0.0x


40/43

12/31/21 12/31/2+ 12/31/2,

111. 90.7 79.2

49.1 47.

2. 29.

2.0 2.2

0.0 0.0

. .4

0.0 0.0

22.2 .2

/.9 0.

1. .

22.2 .2

/.9 0.

1. .

12/31/21 12/31/2+

0.0 0.0

. 29.1

2./ 24.9

0.0 0.0

.4 .9

./ .1

0.0 0.0

0.0 0.0

./ .1

7. 9.0

9.1 /.

1.4 1.2

0.0 0.0

0.0 0.0

0.0 0.0

10. 9.

0.0 0.0

0.0 0.0

./ 49.

7. 9.0


41/43

22.9A 14.A

.0A 47./A

12.0A .2A

2.9A 2.0A

4.A 2.A

1/.A 17.A


42/43

Exhibit: Comparable Firm Characteristics

-ir% Characteristic !ET ETD -& DT L

si$ess a$"actri$ Ges Ges Ges &o G

>eoraphical *rese$ce (!+


43/43

Exhibit: Multiples of Comparable Firms

u"ti*"es BSET ET FB0 T &B 0 ST&9

+sset priceBCash "lo' assets 20.2 &-

+sset priceB+d=sted $et i$co%e 21.47 &-

+sset priceB!ales 0.49 2.

Teer -r$itre

C-+ 12.1

+d=sted &et

Teuer Furniture B Case solution

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