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Date

S&P 500
(^GSPC)
Adj. Close*

Date

Volume

###
###
###
###
###
1-Jul-13
3-Jun-13
###
1-Apr-13
###
###
2-Jan-13
###
###
###
###
###
2-Jul-12
1-Jun-12
###
2-Apr-12
###
###
3-Jan-12
###
###
###
###
###
1-Jul-11
1-Jun-11
###
1-Apr-11
###
###
3-Jan-11
###
###
###
###
###

1,848.36
1,805.81
1,756.54
1,681.55
1,632.97
1,685.73
1,606.28
1,630.74
1,597.57
1,569.19
1,514.68
1,498.11
1,426.19
1,416.18
1,412.16
1,440.67
1,406.58
1,379.32
1,362.16
1,310.33
1,397.91
1,408.47
1,365.68
1,312.41
1,257.60
1,246.96
1,253.30
1,131.42
1,218.89
1,292.28
1,320.64
1,345.20
1,363.61
1,325.83
1,327.22
1,286.12
1,257.64
1,180.55
1,183.26
1,141.20
1,049.33

Sample
Firm XYZ
Adj. Close*

(X-value)
Km
(%)

(Y-value)
Ks
(%)

2.36%
2.80%
4.46%
2.97%

-0.15%
-2.72%
8.46%
-0.03%

-3.13%
4.95%

-4.07%
0.89%

-1.50%
2.08%
1.81%
3.60%

1.17%
-6.58%
3.31%
2.17%

1.11%

3.22%

5.04%
0.71%
0.28%

4.55%
-1.23%
-1.34%

-1.98%
2.42%
1.98%
1.26%
3.96%
-6.27%
-0.75%
3.13%
4.06%
4.36%
0.85%
-0.51%
10.77%
-7.18%
-5.68%
-2.15%
-1.83%
-1.35%
2.85%
-0.10%
3.20%
2.26%
6.53%
-0.23%
3.69%
8.76%
-4.74%

-7.19%
2.89%
-3.37%
7.66%
4.37%
3.83%
6.86%
2.09%
4.00%
-1.32%
4.36%
-1.13%
4.34%
0.16%
-2.69%
-5.56%
-0.45%
1.39%
3.11%
7.87%
3.11%
-4.97%
5.73%
-2.54%
1.15%
5.79%
4.20%

Adj Close

34.25
34.3
35.26
32.51
32.52
33.9
33.6
33.21
35.55
34.41
33.68
32.63
31.21
31.6
32.03
34.51
33.54
34.71
32.24
30.89
29.75
27.84
27.27
26.22
26.57
25.46
25.75
24.68
24.64
25.32
26.81
26.93
26.56
25.76
23.88
23.16
24.37
23.05
23.65
23.38
22.1

1-Jul-10
1-Jun-10
###
1-Apr-10
###
###
4-Jan-10
###
###
###
###
###
1-Jul-09
1-Jun-09
###
1-Apr-09
###
###
2-Jan-09
###
###
###
###
###
1-Jul-08
2-Jun-08
###
1-Apr-08
###
###
2-Jan-08

1,101.60
1,030.71
1,089.41
1,186.69
1,169.43
1,104.49
1,073.87
1,115.10
1,095.63
1,036.19
1,057.08
1,020.62
987.48
919.32
919.14
872.81
797.87
735.09
825.88
903.25
896.24
968.75
1,166.36
1,282.83
1,267.38
1,280.00
1,400.38
1,385.59
1,322.70
1,330.63
1,378.55

21.21
19.44
19.52
20.94
20.43
19.62
20.05
21.83
20.99
20
20.72
19.99
20.12
18.74
18.7
19.32
18.71
17.65
18.28
20.86
20.9
19.59
20.12
23.05
22.2
23.98
28.4
27.55
26.98
24.53
27.11

6.88%
-5.39%
-8.20%
1.48%
5.88%
2.85%
-3.70%
1.78%
5.74%
-1.98%
3.57%
3.36%
7.41%
0.02%
5.31%
9.39%
8.54%
-10.99%
-8.57%
0.78%
-7.48%
-16.94%
-9.08%
1.22%
-0.99%
-8.60%
1.07%
4.75%
-0.60%
-3.48%

9.10%
-0.41%
-6.78%
2.50%
4.13%
-2.14%
-8.15%
4.00%
4.95%
-3.47%
3.65%
-0.65%
7.36%
0.21%
-3.21%
3.26%
6.01%
-3.45%
-12.37%
-0.19%
6.69%
-2.63%
-12.71%
3.83%
-7.42%
-15.56%
3.09%
2.11%
9.99%
-9.52%

SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error

0.5334308596
0.2845484819
0.2741796194
0.0453188075

Observations

71

ANOVA
df
Regression
Residual

1
69

SS
MS
F
0.0563614427 0.056361 27.44259
0.1417118077 0.002054

Total

70

0.1980732504

Intercept
X Variable 1

Krf: 10-Year treasury note


(^TNX) rate on Dec. 31, 2013:
Beta
RPm
Ks = Krf + Beta * RPm =
Number of common shares outstanding:
Stock price on Dec. 31, 2013:
Total market value of common equity
on Dec. 31, 2013:

Coefficients
Standard Error
t Stat
P-value
0.0017084144
0.0054091752 0.315836 0.75308
0.5513801122

0.1052539784 5.238568 1.7E-006

3.04%
0.55
6%
6%
5,206,849
35.16
183,072,828.07

This is just Ke

Significance F
1.7E-006

Lower 95%Upper 95%


Lower 95.0%
Upper 95.0%
-0.009083 0.012499 -0.009083 0.012499
0.341404 0.761356 0.341404 0.761356

Income Statement (you may need to retype the numbers in the spreadsheets, and change some "
PERIOD ENDING
Total Revenue
Cost of Revenue

31-Dec-13
128,752,000.00
51,464,000.00

Gross Profit

77,288,000.00
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others

28,414,000.00
18,395,000.00

Total Operating Expenses

Operating Income or Loss

30,479,000.00
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest

596,000.00
31,717,000.00
3,940,000.00
27,777,000.00
9,224,000.00
(304,000.00)

Net Income From Continuing Ops

18,891,000.00

Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items

Net Income

18,249,000.00

Preferred Stock And Other


Adjustments

Net Income Applicable To


Common Shares

18,249,000.00

Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" int
PERIOD ENDING

31-Dec-13

Assets
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets

3,339,000.00
14,117,000.00
5,740,000.00

Total Current Assets


Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred
Long Term Asset
Charges

23,196,000.00
3,860,000.00
110,968,000.00
69,273,000.00
62,212,000.00

Total Assets

277,787,000.00

8,278,000.00

Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities

29,497,000.00
5,498,000.00

Total Current Liabilities


Long Term Debt
Other Liabilities
Deferred
Long Term Liability
Charges
Minority Interest
Negative Goodwill

34,995,000.00
69,290,000.00
45,712,000.00
36,308,000.00
494,000.00

Total Liabilities

186,799,000.00

Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

6,495,000.00
31,141,000.00
(45,619,000.00)
91,091,000.00
7,880,000.00

Total Stockholder Equity

90,988,000.00

Net Tangible Assets

(40,497,000.00)

Kd

Interest expense / (Long term debt + short-term debt payable) =


Total long-term capital = Market value of equity + Long term debt =
Wd = Long term debt / total long-tern capital =
We = Market value of equity / total long-term capital =
T = Income tax expense / income before tax =
WACC = Wd Kd (1-T) + We Ke =

eadsheets, and change some "-" into 0)


31-Dec-12
127,434,000.00
55,228,000.00

31-Dec-11
126,723,000.00
54,904,000.00

72,206,000.00

71,819,000.00

41,066,000.00
18,143,000.00

41,314,000.00
2,910,000.00
18,377,000.00

12,997,000.00

9,218,000.00

134,000.00
13,883,000.00
3,444,000.00
10,439,000.00
2,900,000.00
(275,000.00)

249,000.00
10,251,000.00
3,535,000.00
6,716,000.00
2,532,000.00
(240,000.00)

8,016,000.00

4,728,000.00

7,264,000.00

3,944,000.00

7,264,000.00

3,944,000.00

sheets, and change some "-" into 0)


31-Dec-12

31-Dec-11

4,868,000.00

3,045,000.00

13,693,000.00

14,701,000.00

4,145,000.00

5,239,000.00

22,706,000.00
4,581,000.00
109,767,000.00
69,773,000.00
58,775,000.00

22,985,000.00
3,718,000.00
107,087,000.00
70,842,000.00
59,343,000.00

6,713,000.00

6,467,000.00

272,315,000.00

270,442,000.00

28,301,000.00
3,486,000.00

27,439,000.00
3,453,000.00

31,787,000.00
66,358,000.00
52,984,000.00
28,491,000.00
333,000.00

30,892,000.00
61,300,000.00
46,705,000.00
25,748,000.00
263,000.00

179,953,000.00

164,908,000.00

6,495,000.00
22,481,000.00
(32,888,000.00)
91,038,000.00
5,236,000.00

6,495,000.00
25,453,000.00
(20,750,000.00)
91,156,000.00
3,180,000.00

92,362,000.00

105,534,000.00

(36,186,000.00)

(24,651,000.00)

2.5%

check this from Morningstar.com

5.27%
252,362,828.07
27.46%
72.54%
33.21%
5.06%

Average revenue growth rate =


% of sales
39.97%

22.07%

0.80%

31-Dec-14
129782743.464091 carry over
51876002.777712 carry over

31-Dec-14
129782743.464091 carry over
51876002.777712 carry over

77906740.6863789

77906740.6863789

carry over
28641472.5424745 carry over
carry over
18395000
carry over

carry over
28641472.5424745 carry over
carry over
18395000
carry over

30870268.1439044

30870268.1439044

596000
carry over
31466268.1439044
3940000
add
27526268.1439044
9140738.64561955
-304000
carry over

596000
carry over
31466268.1439044
3084601.93247721 add
28381666.2114272
9424793.50304945
-304000
carry over

18081529.4982849

18652872.7083778

carry over
carry over
carry over
carry over

18081529.4982849

carry over
carry over
carry over
carry over

18652872.7083778
carry over

carry over

18081529.4982849

18652872.7083778

31-Dec-14

31-Dec-14

2.59%
10.96%

86.19%
53.80%
48.32%

3365730.86574655 carry over 3365730.86574655 carry over


carry over
carry over
14230015.7627266 carry over 14230015.7627266 carry over
carry over
carry over
5740000
carry over
5740000
carry over
23335746.6284731
3860000
111856370.982379
69827575.4006771
62710047.5051885
8278000

279867740.516718

22.91%

23335746.6284731
carry over
3860000
carry over
carry over 111856370.982379 carry over
carry over 69827575.4006771 carry over
carry over 62710047.5051885 carry over
carry over
carry over
carry over
8278000
carry over
carry over
carry over
279867740.516718

29733142.6615531 carry over 29733142.6615531 carry over


5498000
add
4304350.61542124 add
carry over
carry over
35231142.6615531
34037493.2769744
69290000
add
54246717.7414583 add
45712000
carry over
45712000
carry over
36308000
carry over
36308000
carry over
494000
carry over
494000
carry over
carry over
carry over
187035142.661553

6495000
49,222,529.50
-45619000
91091000
7880000

Forecasted total assets =


Forecasted total claims =

170798211.018433

carry over
carry over
carry over
carry over
carry over
carry over
carry over
6495000
carry over
add
49793872.7083778 add
carry over
-45619000
carry over
carry over
91091000
carry over
carry over
7880000
carry over

109069529.498285

109640872.708378

-39705025.050701

-23468093.407581

296104672.159838

280439083.72681

279,867,740.52
296,104,672.16

279,867,740.52
280,439,083.73

Forecasted AFN =

(16,236,931.64)

(571,343.21)

Additional short/current
long term debt =
Additional long-term debt =

(1,193,649.38)
(15,043,282.26)

(42,001.99)
(529,341.22)

(855,398.07)

(30,099.64)

Additional interest expense =

31-Dec-14
129782743.464091
51876002.777712

31-Dec-14
carry over 129782743.464091
carry over 51876002.777712

77906740.6863789

77906740.6863789

28641472.5424745
18395000

carry over
carry over 28641472.5424745
carry over
carry over
18395000

30870268.1439044

596000
31466268.1439044
3054502.28751055
28411765.8563939
9434788.79142373
-304000

30870268.1439044

carry over

596000
31466268.1439044
add
3053443.14480084
28412824.9991036
9435140.50443645
carry over
-304000

18672977.0649701

18673684.4946671

carry over
carry over
carry over
carry over

18672977.0649701

18673684.4946671
carry over

18672977.0649701

18673684.4946671

31-Dec-14

31-Dec-14

3365730.86574655
14230015.7627266
5740000
23335746.6284731
3860000
111856370.982379
69827575.4006771
62710047.5051885
8278000

carry over 3365730.86574655


carry over
carry over 14230015.7627266
carry over
carry over
5740000
23335746.6284731
carry over
3860000
carry over 111856370.982379
carry over 69827575.4006771
carry over 62710047.5051885
carry over
carry over
8278000
carry over

279867740.516718

279867740.516718

29733142.6615531
4262348.6235363

carry over 29733142.6615531


add
4260870.66246575
carry over

33995491.2850894
53717376.5232503
45712000
36308000
494000

33994013.3240189
add
53698750.1277285
carry over
45712000
carry over
36308000
carry over
494000
carry over

170226867.80834

170206763.451747

6495000
49813977.0649701
-45619000
91091000
7880000

carry over
carry over
carry over
carry over
6495000
add
49814684.4946671
carry over
-45619000
carry over
91091000
carry over
7880000

109660977.06497

109661684.494667

-22896750.1974878

-22876645.8408954

279887844.87331

279868447.946415

279,867,740.52
279,887,844.87

279,867,740.52
279,868,447.95

(20,104.36)

(707.43)

(1,477.96)
(18,626.40)

(52.01)
(655.42)

(1,059.14)

(37.27)

Income Statement (you may need to retype the numbers in the spreadsheets, and change some "
PERIOD ENDING
Total Revenue
Cost of Revenue

31-Dec-14
129,782,743.46
51,876,002.78

31-Dec-13
128,752,000.00
51,464,000.00

77,906,740.69

77,288,000.00

28,641,472.54

28,414,000.00

18,395,000.00

18,395,000.00

30,870,268.14

30,479,000.00

Total Other Income/Expenses Net


Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest

596,000.00
31,466,268.14
3,053,443.14
28,412,825.00
9,435,140.50
(304,000.00)

596,000.00
31,717,000.00
3,940,000.00
27,777,000.00
9,224,000.00
(304,000.00)

Net Income From Continuing Ops

18,673,684.49

18,891,000.00

Net Income
Preferred Stock And Other Adjustments

18,673,684.49

18,249,000.00

Net Income Applicable To Common Shares

18,673,684.49

18,249,000.00

Gross Profit

Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses

Operating Income or Loss

Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items

Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" int
PERIOD ENDING

Cash And Cash Equivalents


Short Term Investments
Net Receivables
Inventory

31-Dec-14

31-Dec-13

3,365,730.87

3,339,000.00

14,230,015.76

14,117,000.00

Other Current Assets

5,740,000.00

5,740,000.00

Total Current Assets


Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges

23,335,746.63
3,860,000.00
111,856,370.98
69,827,575.40
62,710,047.51

Total Assets

279,867,740.52

277,787,000.00

29,733,142.66
4,260,870.66

29,497,000.00
5,498,000.00

33,994,013.32
53,698,750.13
45,712,000.00
36,308,000.00
494,000.00

34,995,000.00
69,290,000.00
45,712,000.00
36,308,000.00
494,000.00

Total Liabilities

170,206,763.45

186,799,000.00

Misc Stocks Options Warrants


Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

6,495,000.00
49,814,684.49
(45,619,000.00)
91,091,000.00
7,880,000.00

6,495,000.00
31,141,000.00
(45,619,000.00)
91,091,000.00
7,880,000.00

Total Stockholder Equity

109,661,684.49

90,988,000.00

Net Tangible Assets

(22,876,645.84)

(40,497,000.00)

Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill

8,278,000.00

23,196,000.00
3,860,000.00
110,968,000.00
69,273,000.00
62,212,000.00
8,278,000.00

adsheets, and change some "-" into 0)


31-Dec-12
127,434,000.00
55,228,000.00

Average revenue growth rate =


% of sales
39.97%

72,206,000.00

41,066,000.00

31-Dec-15
130978760.109818
52354067.5895649
78624692.5202528

22.07%

28905418.8654185

18,143,000.00

18395000

12,997,000.00

31324273.6548343

134,000.00
13,883,000.00
3,444,000.00
10,439,000.00
2,900,000.00
(275,000.00)

596000
31920273.6548343
3053443.14480084
28866830.5100335
9585903.61178489
-304000

8,016,000.00

18976926.8982486

7,264,000.00

18976926.8982486

7,264,000.00

18976926.8982486

eets, and change some "-" into 0)


31-Dec-12

31-Dec-15

4,868,000.00

2.59%

3396747.85639587

13,693,000.00

10.96%

14361152.8867147

4,145,000.00

5740000

22,706,000.00
4,581,000.00
109,767,000.00
69,273,000.00
58,775,000.00

23497900.7431106
3860000
112887186.621305
70471073.451965
63287953.7712189

86.19%
53.80%
48.32%

6,713,000.00

8278000

272,315,000.00

282282114.587599

28,301,000.00
3,486,000.00

22.91%

30007149.3022189
4260870.66246575

31,787,000.00
66,358,000.00
52,984,000.00
28,491,000.00
333,000.00

34268019.9646847
53698750.1277285
45712000
36308000
494000

179,953,000.00

170480770.092413

6,495,000.00
22,481,000.00
(32,888,000.00)
91,038,000.00
5,236,000.00

6495000
68791611.3929157
-45619000
91091000
7880000

92,362,000.00

128638611.392916

(36,186,000.00)

-21957682.7279978
299119381.485329

Forecasted total assets =


Forecasted total claims =
Forecasted AFN =

282,282,114.59
299,119,381.49
(16,837,266.90)

Additional short/current
long term debt =
Additional long-term debt =

(1,237,782.71)
(15,599,484.19)

Additional interest expense =

(887,025.08)

ue growth rate =

0.92%

carry over
carry over

31-Dec-15
130978760.109818
52354067.5895649

carry over
carry over

78624692.5202528

carry over
carry over
carry over
carry over

28905418.8654185
18395000

add

carry over

596000
31920273.6548343
2166418.06621799
29753855.5886163
9880460.95508504
-304000

carry over
carry over
carry over
carry over

18395000

carry over
add

carry over

596000
31920273.6548343
2135205.53376607
29785068.1210682
9890825.80367691
-304000

19569394.6335313

add

carry over

19590242.3173913
carry over

19569394.6335313

19590242.3173913

31-Dec-15

31-Dec-15

14361152.8867147

carry over

carry over
carry over
carry over
carry over

carry over

3396747.85639587

carry over
carry over
carry over
carry over

19590242.3173913

carry over
carry over
carry over
carry over

carry over

carry over
carry over
carry over
carry over

28905418.8654185

31324273.6548343

19569394.6335313

carry over
carry over
carry over
carry over

carry over
carry over

78624692.5202528

31324273.6548343

carry over

31-Dec-15
130978760.109818
52354067.5895649

carry over
carry over
carry over
carry over

3396747.85639587
14361152.8867147

carry over
carry over
carry over
carry over

carry over

carry over
carry over
carry over
carry over
carry over
carry over
carry over

5740000
23497900.7431106
3860000
112887186.621305
70471073.451965
63287953.7712189
8278000

carry over

carry over
carry over
carry over
carry over
carry over
carry over
carry over

282282114.587599

carry over
add
carry over

add
carry over
carry over
carry over
carry over

30007149.3022189
3023087.95128592

33030237.2535048
38099265.9411788
45712000
36308000
494000

6495000
69384079.1281984
-45619000
91091000
7880000

23497900.7431106
3860000
112887186.621305
70471073.451965
63287953.7712189
8278000

carry over

carry over
carry over
carry over
carry over
carry over
carry over
carry over

282282114.587599

carry over
add
carry over

add
carry over
carry over
carry over
carry over

153643503.194684

carry over
carry over
carry over
carry over
add
carry over
carry over
carry over

5740000

30007149.3022189
2979533.00117916

32986682.3033981
37550353.1560029
45712000
36308000
494000

carry over
add
carry over

add
carry over
carry over
carry over
carry over

153051035.459401

carry over
carry over
carry over
carry over
add
carry over
carry over
carry over

6495000
69404926.8120584
-45619000
91091000
7880000

129231079.128198

129251926.812058

-5120415.83026824

-4527948.09498552

282874582.322882

282302962.271459

282,282,114.59
282,874,582.32
(592,467.74)

282,282,114.59
282,302,962.27
(20,847.68)

(43,554.95)
(548,912.79)

(1,532.61)
(19,315.08)

(31,212.53)

(1,098.30)

carry over
carry over
carry over
carry over
add
carry over
carry over
carry over

31-Dec-15
130978760.109818
52354067.5895649
78624692.5202528

28905418.8654185
18395000

31324273.6548343

596000
31920273.6548343
2134107.23090454
29786166.4239298
9891190.5207304
-304000
19590975.9031994

19590975.9031994

19590975.9031994

31-Dec-15

3396747.85639587
14361152.8867147

5740000
23497900.7431106
3860000
112887186.621305
70471073.451965
63287953.7712189
8278000

282282114.587599

30007149.3022189
2978000.39480029

32985149.6970192
37531038.0785217
45712000
36308000
494000

153030187.775541

6495000
69405660.3978665
-45619000
91091000
7880000
129252660.397867
-4507100.41112546
282282848.173407
282,282,114.59
282,282,848.17
(733.59)

(53.93)
(679.66)
(38.65)

Income Statement (you may need to retype the numbers in the spreadsheets, and change some "
PERIOD ENDING
Total Revenue
Cost of Revenue

31-Dec-15
130,978,760.11
52,354,067.59

31-Dec-14
129,782,743.46
51,876,002.78

78,624,692.52

77,906,740.69

28,905,418.87

28,641,472.54

18,395,000.00

18,395,000.00

31,324,273.65

30,870,268.14

Total Other Income/Expenses Net


Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest

596,000.00
31,920,273.65
2,134,107.23
29,786,166.42
9,891,190.52
(304,000.00)

596,000.00
31,466,268.14
3,053,443.14
28,412,825.00
9,435,140.50
(304,000.00)

Net Income From Continuing Ops

19,590,975.90

18,673,684.49

Net Income
Preferred Stock And Other Adjustments

19,590,975.90

18,673,684.49

Net Income Applicable To Common Shares

19,590,975.90

18,673,684.49

Gross Profit

Research Development
Selling General and Administrative
Non Recurring
Others
Total Operating Expenses

Operating Income or Loss

Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items

Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" int
PERIOD ENDING

Cash And Cash Equivalents


Short Term Investments
Net Receivables
Inventory

31-Dec-15

31-Dec-14

3,396,747.86

3,365,730.87

14,361,152.89

14,230,015.76

Other Current Assets

5,740,000.00

5,740,000.00

Total Current Assets


Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges

23,497,900.74
3,860,000.00
112,887,186.62
70,471,073.45
63,287,953.77

23,335,746.63
3,860,000.00
111,856,370.98
69,827,575.40
62,710,047.51

8,278,000.00

8,278,000.00

Total Assets

282,282,114.59

279,867,740.52

30,007,149.30
2,978,000.39

29,733,142.66
4,260,870.66

32,985,149.70
37,531,038.08
45,712,000.00
36,308,000.00
494,000.00

33,994,013.32
53,698,750.13
45,712,000.00
36,308,000.00
494,000.00

Total Liabilities

153,030,187.78

170,206,763.45

Misc Stocks Options Warrants


Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

6,495,000.00
69,405,660.40
(45,619,000.00)
91,091,000.00
7,880,000.00

6,495,000.00
49,814,684.49
(45,619,000.00)
91,091,000.00
7,880,000.00

Total Stockholder Equity

129,252,660.40

109,661,684.49

(4,507,100.41)

(22,876,645.84)

Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill

Net Tangible Assets

dsheets, and change some "-" into 0)


31-Dec-13
128,752,000.00
51,464,000.00

Average revenue growth rate =


% of sales
39.97%

77,288,000.00

28,414,000.00

31-Dec-16
132111396.023225
52806798.2240216
79304597.7992029

22.07%

29155377.831831

18,395,000.00

18395000

30,479,000.00

31754219.9673719

596,000.00
31,717,000.00
3,940,000.00
27,777,000.00
9,224,000.00
(304,000.00)

596000
32350219.9673719
2134107.23090454
30216112.7364674
10033964.2107202
-304000

18,891,000.00

19878148.5257472

18,249,000.00

19878148.5257472

18,249,000.00

19878148.5257472

ets, and change some "-" into 0)


31-Dec-13

31-Dec-16

3,339,000.00

2.59%

3426121.15789694

14,117,000.00

10.96%

14485340.6367269

5,740,000.00

5740000

23,196,000.00
3,860,000.00
110,968,000.00
69,273,000.00
62,212,000.00

23651461.7946238
3860000
113863376.055558
71080470.4914629
63835234.943122

86.19%
53.80%
48.32%

8,278,000.00

8278000

277,787,000.00

284568543.284767

29,497,000.00
5,498,000.00

22.91%

30266635.4580671
2978000.39480029

34,995,000.00
69,290,000.00
45,712,000.00
36,308,000.00
494,000.00

33244635.8528674
37531038.0785217
45712000
36308000
494000

186,799,000.00

153289673.931389

6,495,000.00
31,141,000.00
(45,619,000.00)
91,091,000.00
7,880,000.00

6495000
89283808.9236137
-45619000
91091000
7880000

90,988,000.00

149130808.923614

(40,497,000.00)

-3636836.08120742
302420482.855003

Forecasted total assets =


Forecasted total claims =
Forecasted AFN =

284,568,543.28
302,420,482.86
(17,851,939.57)

Additional short/current
long term debt =
Additional long-term debt =

(1,312,375.83)
(16,539,563.74)

Additional interest expense =

(940,480.32)

nue growth rate =

carry over
carry over

0.86%
31-Dec-16
132111396.023225
52806798.2240216

carry over
carry over

79304597.7992029

carry over
carry over
carry over
carry over

29155377.831831
18395000

add

carry over

596000
32350219.9673719
1193626.91445363
31156593.0529183
10346272.6111574
-304000

carry over
carry over
carry over
carry over

18395000

carry over
add

carry over

596000
32350219.9673719
1160533.40548034
31189686.5618916
10357262.0818263
-304000

20506320.4417609

add

carry over

20528424.4800653
carry over

20506320.4417609

20528424.4800653

31-Dec-16

31-Dec-16

14485340.6367269

carry over

carry over
carry over
carry over
carry over

carry over

3426121.15789694

carry over
carry over
carry over
carry over

20528424.4800653

carry over
carry over
carry over
carry over

carry over

carry over
carry over
carry over
carry over

29155377.831831

31754219.9673719

20506320.4417609

carry over
carry over
carry over
carry over

carry over
carry over

79304597.7992029

31754219.9673719

carry over

31-Dec-16
132111396.023225
52806798.2240216

carry over
carry over
carry over
carry over

3426121.15789694
14485340.6367269

carry over
carry over
carry over
carry over

carry over

carry over
carry over
carry over
carry over
carry over
carry over
carry over

5740000
23651461.7946238
3860000
113863376.055558
71080470.4914629
63835234.943122
8278000

carry over

carry over
carry over
carry over
carry over
carry over
carry over
carry over

284568543.284767

carry over
add
carry over

add
carry over
carry over
carry over
carry over

30266635.4580671
1665624.56235179

31932260.0204189
20991474.340734
45712000
36308000
494000

6495000
89911980.8396274
-45619000
91091000
7880000

23651461.7946238
3860000
113863376.055558
71080470.4914629
63835234.943122
8278000

carry over

carry over
carry over
carry over
carry over
carry over
carry over
carry over

284568543.284767

carry over
add
carry over

add
carry over
carry over
carry over
carry over

135437734.361153

carry over
carry over
carry over
carry over
add
carry over
carry over
carry over

5740000

30266635.4580671
1619444.83840886

31886080.296476
20409482.1486632
45712000
36308000
494000

carry over
add
carry over

add
carry over
carry over
carry over
carry over

134809562.445139

carry over
carry over
carry over
carry over
add
carry over
carry over
carry over

6495000
89934084.8779318
-45619000
91091000
7880000

149758980.839627

149781084.877932

14215103.4890288

14843275.4050425

285196715.20078

284590647.323071

284,568,543.28
285,196,715.20
(628,171.92)

284,568,543.28
284,590,647.32
(22,104.04)

(46,179.72)
(581,992.19)

(1,624.97)
(20,479.07)

carry over
carry over
carry over
carry over
add
carry over
carry over
carry over

(33,093.51)

(1,164.49)

31-Dec-16
132111396.023225
52806798.2240216
79304597.7992029

29155377.831831
18395000

31754219.9673719

596000
32350219.9673719
1159368.91504178
31190851.0523302
10357648.7780068
-304000
20529202.2743234

20529202.2743234

20529202.2743234

31-Dec-16

3426121.15789694
14485340.6367269

5740000
23651461.7946238
3860000
113863376.055558
71080470.4914629
63835234.943122
8278000

284568543.284767

30266635.4580671
1617819.87180195

31884455.329869
20389003.0769657
45712000
36308000
494000

134787458.406835

6495000
89934862.6721899
-45619000
91091000
7880000
149781862.67219
14865379.4433469
284569321.079025
284,568,543.28
284,569,321.08
(777.79)

(57.18)
(720.62)

(40.98)

Income Statement (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
PERIOD ENDING
Total Revenue
Cost of Revenue

31-Dec-16
132111396.023225
52806798.2240216

Gross Profit

79304597.7992029

Research Development
Selling General and Administrative
Non Recurring
Others

29155377.831831
18395000

Total Operating Expenses

Operating Income or Loss

31754219.967372

Total Other Income/Expenses Net


Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest

596000
32350219.967372

Net Income From Continuing Ops

21303575.7300879

32350219.967372
10742644.237284
-304000

Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items

Net Income
Preferred Stock And Other Adjustments

21303575.7300879

Net Income Applicable To Common Shares

21303575.7300879

Balance Sheet (you may need to retype the numbers in the spreadsheets, and change some "-" into 0)
PERIOD ENDING

Cash And Cash Equivalents


Short Term Investments
Net Receivables
Inventory
Other Current Assets

2016

3426121.15789694
-21231671.698745
14485340.6367269
5740000

Total Current Assets


Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges

2419790.09587878
3860000
113863376.055558
71080470.4914629
63835234.943122

Total Assets

263336871.586021

Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities

8278000

30266635.4580671

Total Current Liabilities


Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill

30266635.4580671

Total Liabilities

112780635.458067

Misc Stocks Options Warrants


Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

6495000
90709236.1279544
-45619000
91091000
7880000

Total Stockholder Equity

150556236.127954

Net Tangible Assets

15640530.6933695

EBIT
Tax Rate
Unlevered Net Income

32350219.967372
33.21%
21,607,575.73

Operating Current Assets


Operating Current Liability
Net Operating Working Capital
Change in New Operating Working Capital
Capital expenditure - Depreciation

45712000
36308000
494000

23,651,461.79
30,266,635.46
(6,615,173.66)
(105,925.10)
976,189.43

FCF
Average growth rate of FCF
Horizon Value
Adjusted FCF

20,737,311.40
2.00%
691243713.339
711,981,024.74

Enterprise Value

Please finish the following steps by yourself:


Intrinsic Value of Equity
Total Numbers of Common Stocks Outstanding
Intrinsic Value of Stock Per Share
Actual Stock Price at the End of Year 2013
Conclusion: Was the Stock Overvalued or Undervalued?

Scenario Analysis:
Average growth rate of FCF
Intrinsic Value of Equity
Total Numbers of Common Stocks Outstanding
Intrinsic Value of Stock Per Share
Actual Stock Price at the End of Year 2013
Conclusion: Was the Stock Overvalued or Undervalued?

Multiples Analysis:
Industry Value/EBIT Multiple
Total Enterprise Value based on multiples
Intrinsic Value of Equity based on multiples
Average growth rate of FCF to achieve the multiples results:
Total Numbers of Common Stocks Outstanding
Intrinsic Value of Stock Per Share
Actual Stock Price at the End of Year 2013
Conclusion: Was the Stock Overvalued or Undervalued?

1.0%
428,580,606.66
5,206,849
$82.31
35.16
UNDERVALUED

s, and change some "-" into 0)


31-Dec-15
130978760.109818
52354067.5895649

31-Dec-14
129782743.464091
51876002.777712

31-Dec-13
128752000.00
51464000.00

31-Dec-12
127434000.00
55228000.00

78624692.5202528

77906740.686379

77288000.00

72206000.00

28905418.8654185

28641472.5424745

28414000.00

41066000.00

18395000

18395000

18395000.00

18143000.00

31324273.6548343

30870268.1439044

30479000.00

12997000.00

596000
31920273.6548343
2134107.23090454
29786166.4239298
9891190.5207304
-304000

596000
31466268.1439044
3053443.14480084
28412824.9991036
9435140.50443646
-304000

596000.00
31717000.00
3940000.00
27777000.00
9224000.00
-304000.00

134000.00
13883000.00
3444000.00
10439000.00
2900000.00
-275000.00

19590975.9031994

18673684.4946671

18891000.00

8016000.00

19590975.9031994

18673684.4946671

18249000.00

7264000.00

19590975.9031994

18673684.4946671

18249000.00

7264000.00

2013

2012

d change some "-" into 0)


2015

2014

3396747.85639587

3365730.86574655

3339000.00

4868000.00

14361152.8867147

14230015.7627266

14117000.00

13693000.00

5740000

5740000

5740000.00

4145000.00

23497900.7431106
3860000
112887186.621305
70471073.451965
63287953.7712189

23335746.6284731
3860000
111856370.982379
69827575.4006771
62710047.5051885

23196000.00
3860000.00
110968000.00
69273000.00
62212000.00

22706000.00
4581000.00
109767000.00
69773000.00
58775000.00

8278000

8278000

8278000.00

6713000.00

282282114.587599

279867740.516718

277787000.00

272315000.00

30007149.3022189
2978000.39480029

29733142.6615531
4260870.66246575

29497000.00
5498000.00

28301000.00
3486000.00

32985149.6970192
37531038.0785217
45712000
36308000
494000

33994013.3240189
53698750.1277285
45712000
36308000
494000

34995000.00
69290000.00
45712000.00
36308000.00
494000.00

31787000.00
66358000.00
52984000.00
28491000.00
333000.00

153030187.775541

170206763.451747

186799000.00

179953000.00

6495000
69405660.3978665
-45619000
91091000
7880000

6495000
49814684.4946671
-45619000
91091000
7880000

6495000.00
31141000.00
-45619000.00
91091000.00
7880000.00

6495000.00
22481000.00
-32888000.00
91038000.00
5236000.00

129252660.397867

109661684.494667

90988000.00

92362000.00

-4507100.41112544

-22876645.8408954

-40497000.00

-36186000.00

31920273.6548343
33.21%
21,320,403.11

31466268.1439044
33.21%
21,017,160.70

31,717,000.00
33.21%
21,184,631.21

13883000
27.78%
10,026,241.69

23,497,900.74
30,007,149.30
(6,509,248.56)
(111,852.53)

23,335,746.63
29,733,142.66
(6,397,396.03)
(96,396.03)

23,196,000.00
29,497,000.00
(6,301,000.00)
(706,000.00)

22,706,000.00
28,301,000.00
(5,595,000.00)
(1,141,000.00)

1,030,815.64

888,370.98

1,201,000.00

2,680,000.00

20,401,439.99

20,225,185.75

20,401,439.99

20,225,185.75

20,689,631.21

$651,649,957.99

$580,200,957.99
5,206,849
$111.43
35.16
UNDERVALUED

3%
$876,599,587.79
5,206,849
$168.36
35.16
UNDERVALUED

3.5%
$1,167,670,022.39
5,206,849
$224.26
35.16
UNDERVALUED

4%
1,732,370,216.36
5,206,849
$332.71
35.16
UNDERVALUED

9.47
300,359,990.00
228,910,990.00
-2.4%
5,206,849
$43.96
35.16
UNDERVALUED

8,487,241.69

31-Dec-11
126723000.00
54904000.00
71819000.00

41314000.00
2910000.00
18377000.00

9218000.00

249000.00
10251000.00
3535000.00
6716000.00
2532000.00
-240000.00
4728000.00

3944000.00

3944000.00

2011

3045000.00
14701000.00
5239000.00

22985000.00
3718000.00
107087000.00
70842000.00
59343000.00
6467000.00

270442000.00

27439000.00
3453000.00

30892000.00
61300000.00
46705000.00
25748000.00
263000.00

164908000.00

6495000.00
25453000.00
-20750000.00
91156000.00
3180000.00
105534000.00
-24651000.00

10251000
37.70%
6,386,269.21
22,985,000.00
27,439,000.00
(4,454,000.00)

FCF
25000000

20000000

15000000

10000000

Un

Ne

FC

5000000

-5000000

-10000000
2016

2015

Page 1

2014

2013

2012

FCF

Unlevered Net Income


Net Operating Working Capital
FCF

2013

2012

Page 2

Net_New_Financing

300000000

250000000

200000000

150000000

100000000

50000000

0
PERIOD ENDING

2016

Page 3

2015

2014

2013

2012

Net_New_Financing

Total Assets
Total Liabilities
Total Stockholder Equity

2013

2012

Page 4

Suggestion
In this scenario AT&T should start with 1% FCF growth rate, and
instrinsic stock price per share is worth only $43.96/share, and its
an undervaluation at the end of 2013.
--> The reason is given the competitive pressures and chanllenges
AT&T currently faces such as the shrinking wireline business, a
decreasing growth rate in wireless, increased competition, a
difficult regulatory environment, spectrum constraints, higher
than expected capital expenditures, and the exclusivity loss of the
iPhone, --> therefore, a negative percent annual growth rate in
FCF
not unreasonable.
How
toisincrease
its equity value in future?
Increase revenue Minimum revenue to pay debt
Stock repurchase
Improve Effective Tax Rate (ETR) reconciliations--> relationship
between tax administrations and firm policy --> Better firms tax
planning activities.
Shareholders should pay a premium for such shares
Improved adoption of corporate governance principles by firms
Changing firms governance strategies
Debt should be paid down
Increase the dividend payout beyond what was expected in the
market place --> increase the value of equity while decreasing
the value of debt (while also increasing the credit risk of the firm).
--> will be stronger for highly levered companies .
AT&Tsdividend policy makes them solid investment, and reflects
the good health of the company

ate, and
are, and its

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ion, a
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y loss of the
th rate in

ionship
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d in the
creasing
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nd reflects