FCFF VALUATION MODEL

Before you star The spreadsheet has circular reasoning. This is not a problem. Go into calculation options (in excel) and check
the iteration box.
What the modelThis model is designed to value firms with operating income that is either positive or can be normalized to be
positive. It allows for up to 15 years of high growth, and can be used either as a 2-stage or a 3-stage model.
Inputs The inputs are in the following pages:
1. The bulk of the inputs are in the master inputs page. Here, you can input the numbers from the current
financial statements, and review and change the inputs for the valuation.
2. If you want to normalized operating income, use the earnings normalizer worksheet.
3. If you have R&D or operating leases, you will need to input the required numbers in those worksheets.
Important: Be consistent about the units you use. If you use millions, use millions for all of your inputs.
Options The spreadsheet can be used to value a company, with fixed inputs for a high growth phase and different inputs
for a stable growth phase (2-stage model) or it can be adjusted to allow for a transition phase (3-stage model).
To switch from one to the other, enter yes in the master input page to the question of whether you want the
inputs adjusted during the second half of the high growth phase.
You can even make it a stable growth model, by setting the length of the high growth period to zero.
Other worksheeThere are two other worksheets that you might find useful at the end of this spreadsheet
1. Bottom-up beta estimator: will estimate your levered beta, given an unlevered beta (which you will have to
input.
2. Industry averages: Here, you can look up industry averages for variables such as beta, return on capital,
reinvestment rates and working capital.
Output The output is contained in the valuation model worksheet.
xcel) and check

ormalized to be

d different inputs
3-stage model).

ou will have to
An apology: I apologize for the number of inputs that are required on this sheet. Many of the inputs are required only if you choose the appr
If you have negative operating income, you will either have to normalize it to make it positive, or use the highgrowth.xls spreadsheet.
Master Input Sheet
Do you want to capitalize R&D expenses? No ! Yes or No Go to R&D Converter
Do you want to convert operating leases to debt? No ! Yes or No Go to Operating lease converter
Do you want to normalize operating income? Yes Go to Earnings Normalizer

Inputs
From Current Financials
Current EBIT = ### ! If negative, go back and choose to normalize earnings.
Current Interest Expense = ###
Current Capital Spending ###
Current Depreciation & Amort'n = ###
Tax rate (for computing after-tax operating income) = 21.00%
Marginal tax rate = 33.99% Previous year-end
Current Revenues = ### ###
Current Non-cash Working Capital = ###
Chg. Working Capital = ### Previous year-end
Book Value of Debt = ### ###
Book Value of Equity = ### ###

Cash & Marketable Securities = ### ###

Value of Non-operating Assets = ### ###
Minority Interests (this is a liability) = INR 0.00
Price to Book Ratio of sector with minority holdings = 2.10
Market Data for your firm
Is your stock currently traded? Yes Average maturity of debt =
If yes, enter the following:
Current Stock Price = INR 780.50
Number of shares outstanding = 413.05
Market Value of Debt = ###
If no, enter the following
Would you like to use the book value debt ratio? No
If no, enter the debt ratio to use in valuation 35%

General Market Data

Long Term Treasury bond rate= 5.00%
Mature Market Equity Premium = 4.50%
Country Equity Risk Premium = 4.50%
Exchange Rate for fiscal year items (BR/$) = R$ 1.00 R$ 1.00
Exchange Rate for currrent price conversions = R$ 1.00
Ratings
Do you want to estimate the firm's synthetic rating = No ! If yes, use the rating estimator worksheet that is attached
If yes, choose the type of firm 2
If not, what is the current rating of the firm? B+
Enter the cost of debt associated with the rating = 12.25%

Options
Do you have equity options (management options, warrants) o No
If yes, enter the number of options 2.23
Average strike price R$ 13.85
Average maturity 1.5
Standard Deviation in stock price 30%
Do you want to use the stock price to value the option or your P

Valuation Inputs
High Growth Period
Length of high growth period = 10
Beta to use for high growth period for your firm= 1.2
Lambda to use for your firm (for both high growth and stable 0.8
Do you want to keep the debt ratio computed from your input Yes
If yes, the debt ratio that will be used to compute the cost of ca 25.30%
If no, enter the debt ratio that you would like to use in the hi 7.00%
Do you want to keep the existing ratio of working capital to r Yes
If yes, the working capital as a percent of revenues will be -1.54%
If no, enter the ratio of working capital to revenues to use in a 4.50%
Do you want to compute your growth rate from fundamentals yes
If no, enter the expected growth rate in operating income for 12%
If yes, the inputs to the fundamental growth calculation (based upon your inputs) are
Return on Capital = 17.16%
Reinvestment Rate = 170.61%
Do you want to change these inputs? Yes
Return on Capital = 17.16%
Reinvestment Rate = 70.00%

Do you want me to gradually adjust your high growth inputs i Yes

Stable Growth Period

Growth rate during stable growth period = 5.00%
Beta to use in stable growth period = 1.00
Country Risk premium for equity in stable growth period = 3.00%
Debt Ratio to use in stable growth period = 25.30%
Pre-tax cost of debt in stable growth period = 9.00%
Tax Rate to use in stable growth period = 33.99%
To compute the reinvestment rate in stable growth, you have two options
Do you want to compute reinvestment needs in stable growth Yes
If yes, enter the return on capital that the firm will have in st 12.00%
If no, enter capital expenditure as % of depreciation in stable 120% (in percent)
 required only if you choose the appropriate option, though.
e highgrowth.xls spreadsheet.

ing lease converter

gs Normalizer

hoose to normalize earnings.

0.1451
0.1307
3

mator worksheet that is attached

 2005 2006 2007 2008 2009 Aggregate
Revenues 192792 231523 314044 342586 747837 ###
EBIT 17950 22526 30011 30984 42684 R$ 144,155
Pre-tax Oper Mg 9.31% 9.73% 9.56% 9.04% 5.71% 7.88%

EBIT (1-t) 14181 17796 23709 24477 33720 R$ 113,882

BV of debt (start 33621 R$ 27,142 R$ 63,293 R$ 97,479 R$ 157,163 R$ 378,698
BV of equity (sta 37019 R$ 44,602 R$ 63,054 R$ 79,717 R$ 91,658 R$ 316,050
Cash holdings 5546 R$ 20,209 R$ 4,838 R$ 6,998 R$ 6,450 R$ 44,041
Invested Capital R$ 65,094 R$ 51,535 R$ 121,509 R$ 170,198 R$ 242,371 R$ 650,707
ROIC 21.78% 34.53% 19.51% 14.38% 13.91% 17.50%

Cap ex 8740 R$ 12,592 R$ 27,588 R$ 52,804 R$ 99,708 R$ 192,692

Acquisitions 5844 R$ 1,321 R$ 891 R$ 9,937 R$ 553 R$ 12,702
Depreciation 5377 R$ 6,274 R$ 6,850 R$ 7,826 R$ 25,072 R$ 46,022
Chg in WC 5628 R$ 23,450 R$ 41,370 -R$ 20,422 R$ 13,450 R$ 57,848
Reinvestment R$ 14,835 R$ 31,089 R$ 62,999 R$ 34,493 R$ 88,639 R$ 217,220
Reinvestment Ra 104.62% 174.70% 265.72% 140.92% 262.86% 190.74%
Reinvestment Rat 63.40% 167.28% 261.96% 100.32% 261.22% 179.59%
Investment Number of uBook Value (in Current marketMarket Value (in millions)
a. Investments with market value
Tata Steel 21440882 2699 633 13572.08
Tata Chemicals 70249 2.4 346 24.30615

Total 2701.4 13596.38

b. Investments without quoted market price

All other investments 137874.58446 NA 137874.6
Business Revenues EV/Sales Value Value WeightUnlevered beta
Shipbuilding 8341 3.23 26941 63.73% 1.60
Offshore & Engineeri 2563 1.97 5049 11.94% 1.44
Industrial plant 1200 1.55 1860 4.40% 1.29
Engine and Machiner 2252 1.36 3063 7.24% 1.21
Electro Electric Syst 1753 1.8 3155 7.46% 1.19
Construction Equipme 1823 1.21 2206 5.22% 1.29
42274 100.00% 1.49
Normalizing Earnings
Approach used to normalize earnings = 3

If historical average,
Average Earnings before taxes = 19737.6

If historical average ROC,

Historical average pre-tax return on capital = 22%

If sector margin
Pre-tax Operating Margin for Sector = 7.04% ! Look at industry average

Normalized Earnings before interest and taxes = $25,464.20

Worksheet for normalization (Last 5 years of data)

-5 -4 -3 -2 -1 Total
Revenues ### ### ### ### ### ###
EBT INR 16,519 INR 20,534 INR 25,732 INR 25,765 INR 10,138 INR 98,688
EBT Margin 8.00% 8.45% 8.02% 7.67% 3.43% 7.04%

Net Cap ex 282 -112 -27 151.76 196.02 490.78

Non-cash WC 26.07 305.82 915.03 -222.74 1502.9 2527.08
18727.1958
Inventory 367.38 682.72 1281.06 1121.56 2371.09
Accounts Rec 74.48 149.74 537.37 314.02 1386.19
Other Current assets 34.23 57.17 174.73 291.92 474.46
Accounts Payable 190.06 248.98 358.23 521.17 615.72
Other Current Liabilitie 259.96 334.83 719.9 1429.07 2113.12

Net Cap ex as % of EBI 0.75%

Non-cash WC as % of 0.18%

Normalized reinvestme $39.62

 R & D Converter
This spreadsheet converts R&D expenses from operating to capital expenses. It makes the appropriate adjustments to operating income, net
income, the book value of assets and the book value of equity.

Inputs
Over how many years do you want to amortize R&D expenses 5 ! If in doubt, use the lookup table below
Enter the current year's R&D expense = $1,594.00 The maximum allowed is ten years
Enter R& D expenses for past years: the number of years that you will need to enter will be determined by the amortization period
Do not input numbers in the first column (Year). It will get automatically updated based on the input above.
Year R& D Expenses
-1 1026.00 ! Year -1 is the year prior to the current year
-2 698.00 ! Year -2 is the two years prior to the current year
-3 399.00
-4 211.00
-5 89.00
0
0
0
0
0

Output
Year R&D Expense Unamortized portion Amortization this year
Current 1594.00 1.00 1594.00
-1 1026.00 0.80 820.80 $205.20
-2 698.00 0.60 418.80 $139.60
-3 399.00 0.40 159.60 $79.80
-4 211.00 0.20 42.20 $42.20
-5 89.00 0.00 0.00 $17.80
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
Value of Research Asset = $3,035.40 $484.60

Amortization of asset for current year = $484.60

Adjustment to Operating Income = $1,109.40 ! A positive number indicates an increase in operating income (add to reported EBIT)
Tax Effect of R&D Expensing $377

Look Up Table for Amortization Periods

Industry NamAmortization Period
Advertising 2
Aerospace/De 10 Non-technological Service 2 years
Air Transport 10 Retail, Tech Service 3 years
Aluminum 5 Light Manufacturing 5 years
Apparel 3 Heavy Manufacturing 10 years
Auto & Truc 10 Research, with Patenting 10 years
Auto Parts ( 5 Long Gestation Period 10 years
Auto Parts ( 5
Bank 2
Bank (Canadi 2
Bank (Foreig 2
Bank (Midwes 2
Beverage (Al 3
Beverage (Sof 3
Building Mate 5
Cable TV 10
Canadian Ene 10
Cement & Ag 10
Chemical (Ba 10
Chemical (Div 10
Chemical (Spe 10
Coal/Alterna 5
Computer & P 5
Computer Sof 3
Copper 5
Diversified C 5
Drug 10
Drugstore 3
Educational S 3
Electric Util. 10
Electric Utili 10
Electric Utili 10
Electrical Eq 10
Electronics 5
Entertainmen 3
Environmenta 5
Financial Ser 2
Food Process 3
Food Wholesa 3
Foreign Elect 5
Foreign Tele 10
Furn./Home F 3
Gold/Silver 5
Grocery 2
Healthcare In 3
Home Applia 5
Homebuildin 5
Hotel/Gamin 3
Household Pr 3
Industrial Ser 3
Insurance (Di 3
Insurance (Li 3
Insurance (Pr 3
Internet 3
Investment C 3
Investment Co 3
Investment C 3
Machinery 10
Manuf. Hous 5
Maritime 10
Medical Serv 3
Medical Supp 5
Metal Fabrica 10
Metals & Min 5
Natural Gas ( 10
Natural Gas ( 10
Newspaper 3
Office Equip 5
Oilfield Serv 5
Packaging & 5
Paper & Fores 10
Petroleum (In 5
Petroleum (P 5
Precision Ins 5
Publishing 3
R.E.I.T. 3
Railroad 5
Recreation 5
Restaurant 2
Retail (Speci 2
Retail Buildi 2
Retail Store 2
Securities Br 2
Semiconducto 5
Semiconducto 5
Shoe 3
Steel (Genera 5
Steel (Integra 5
Telecom. Equ 10
Telecom. Ser 5
Textile 5
Thrift 2
Tire & Rubbe 5
Tobacco 5
Toiletries/Co 3
Trucking/Tra 5
Utility (Forei 10
Water Utility 10
 Operating Lease Converter
Inputs
Operating lease expense in current year = $121.00
Operating Lease Commitments (From footnote to financials)
Year Commitment ! Year 1 is next year, ….
1 $ 156.00
2 $ 143.00
3 $ 122.00
4 $ 109.00
5 $ 97.00
6 and beyond $ 448.00

Output
Pre-tax Cost of Debt = 12.25% ! If you do not have a cost of debt, use the ratings estimator

From the current financial statements, enter the following

Reported Operating Income (EBIT) = $17,527.00 ! This is the EBIT reported in the current income statement
Reported Debt = ### ! This is the interest-bearing debt reported on the balance sheet

Number of years embedded in yr 6 estima 3 ! I use the average lease expense over the first five years
to estimate the number of years of expenses in yr 6
Converting Operating Leases into debt
Year Commitment Present Value
1 $ 156.00 $138.98
2 $ 143.00 $113.49
3 $ 122.00 $86.26
4 $ 109.00 $68.66
5 $ 97.00 $54.43
6 and beyond $ 149.33 $200.40 ! Commitment beyond year 6 converted into an annuity for ten years
Debt Value of leases = $ 662.22

Restated Financials
Depreciation on Operating Lease Asset = $82.78 ! I use straight line depreciation
Adjustment to Operating Earnings = $81.12 ! PV of operating leases * Pre-tax cost of debt
Adjustment to Total Debt outstanding = $ 662.22
EBIT (1 -t) = ###
Expected growth rate in perpetuity 5.00%
Cost of capital = 10.39%
Return on capital = 12.00%

Reinvestment Rate = 41.67%

Terminal Value = ###

Growth RateReinvestment Rate FCFF Terminal value

0% 0.00% ￦45,278 $435,686.47
1% 8.33% ￦41,505 $441,901.46
2% 16.67% ￦37,731 $449,597.58
3% 25.00% ￦33,958 $459,375.90
4% 33.33% ￦30,185 $472,213.65
5% 41.67% ￦26,412 $489,812.96
 Two-Stage FCFF Discount Model

Input Summary
Rupees Dollar
Normalized EBIT (before adjustm ### ###

Adjusted EBIT = ### ###

Adjusted Interest Expense = INR 6,737.00 INR 6,737.00

Adjusted Capital Spending ### ###

Adjusted Depreciation & Amort'n INR 8,701.00 INR 8,701.00
Tax Rate on Income = 21.00% 21.00%
Marginal tax rate = 33.99% 33.99%
Current Revenues = ### ###
Current Non-cash Working Capita-INR 4,085.00 -INR 4,085.00
Chg. Working Capital = INR 2,732.00 INR 2,732.00
Adjusted Book Value of Debt = ### ###
Adjusted Book Value of Equity = ### ###
Invested Capital ### ###

Length of High Growth Period = 10 Forever

Growth Rate = 12.01% 5.00%

Debt Ratio used in Cost of Capita 25.30% 25.30%
Beta used for stock = 1.20 1.00
Lambda used for stock = 0.80 0.80
Riskfree rate = 5.00% 5.00%
Mature Market Equity Premium = 4.50% 4.50%
Country Risk Premium = 4.50% 3.00%
Cost of Debt = 12.25% 9.00%
Tax Rate for computing income= 21.00% 33.99%
Marginal tax rate = 33.99% 33.99%
Return on Capital = 17.16% 12.00%
Reinvestment Rate = 70.00% 41.67%

Page
 Two-Stage FCFF Discount Model

Output from the program

Cost of Equity = 14.00%
Equity/(Debt+Equity ) = 74.70%

After-tax Cost of debt = 8.09%

Debt/(Debt +Equity) = 25.30%
Cost of Capital = 12.50%

Intermediate Output
Expected Growth Rate 12.01%
Working Capital as percent of re -1.54% (in percent)
The FCFF for the high growth phase are shown below (upto 10 years)
Current 1 2 3 4 5 6 7 8 9 10
Expected Growth Rate 12.01% 12.01% 12.01% 12.01% 12.01% 10.61% 9.21% 7.80% 6.40% 5.00%
Cumulated Growth 112.01% 125.47% 140.54% 157.42% 176.33% 195.04% 213.00% 229.62% 244.32% 256.54%
Reinvestment Rate 70.00% 70.00% 70.00% 70.00% 70.00% 64.33% 58.67% 53.00% 47.33% 41.67%

EBIT * (1 - tax ra ### ### ### ### ### ### ### ### ### ### ###
- (CapEx-Depreci ### ### ### ### ### ### ### ### ### ### ###

-Chg. Working CaINR 2,732.00 -INR 490.70 -INR 549.65 -INR 615.67 -INR 689.63 -INR 772.47 -INR 764.24 -INR 733.59 -INR 679.10 -INR 600.56 -INR 499.03
Free Cashflow to ### INR 6,759.96 INR 7,571.99 INR 8,481.56 INR 9,500.40 ### ### ### ### ### ###
Cost of Capital 12.50% 12.50% 12.50% 12.50% 12.50% 12.08% 11.66% 11.24% 10.81% 10.39%
Cumulated Cost of Capital 1.1250 1.2657 1.4240 1.6020 1.8023 2.0201 2.2556 2.5091 2.7804 3.0693
Present Value $6,009 $5,982 $5,956 $5,930 $5,904 $6,927 $7,852 $8,653 $9,310 $9,808

Growth Rate in Stable Phase = 5.00%

Reinvestment Rate in Stable Phas 41.67%
FCFF in Stable Phase = ###
Cost of Equity in Stable Phase = 11.90%
Equity/ (Equity + Debt) = 74.70%
AT Cost of Debt in Stable Phase 5.94%
Debt/ (Equity + Debt) = 25.30%

Page
 Two-Stage FCFF Discount Model

Cost of Capital in Stable Phase = 10.39%

Value at the end of growth phas ###
Valuation
Present Value of FCFF in high growth phase = ###
Present Value of Terminal Value of Firm = ###
Value of operating assets of the firm = ###
Value of Cash, Marketable Securities & Non-operating assets ###
Value of Firm = ###
Market Value of outstanding debt = ###
Minority Interest in consolidated holdings = INR 0.00
Market Value of Equity = ###
Value of Equity in Options = INR 0.00
Value of Equity in Common Stock = ###
Market Value of Equity/share = INR 665.07
Market Value of Equity/share in BR = INR 665.07

Year 1 2 3 4 5 6 7 8 9 10
EBIT (1-t) 22533 25240 28272 31668 35472 39236 42848 46192 49150 51607
- Reinvestment 15773 17668 19790 22168 24830 25242 25138 24482 23264 21503
FCFF 6760 7572 8482 9500 10642 13994 17711 21710 25886 30104

Page
 Two-Stage FCFF Discount Model

Terminal Year

###
###

-INR 635.07
###

Page
Valuing Options or Warrants
Enter the current stock price = $780.50
Enter the strike price on the option = $13.85
Enter the expiration of the option = 1.5
Enter the standard deviation in stock pric 30.00% (volatility)
Enter the annualized dividend yield on s 0.00%
Enter the treasury bond rate = 5.00%
Enter the number of warrants (options) o 2.23
Enter the number of shares outstanding = 413.05

Do not input any numbers below this line

VALUING WARRANTS WHEN THERE IS DILUTION
Stock Price= 780.5 # Warrants issued= 2.23
Strike Price= 13.85 # Shares outstanding= 413
Adjusted S = 780.430629 T.Bond rate= 5.00%
Adjusted K = 13.85 Variance= 0.0900
Expiration (in years) = 1.5 Annualized dividend yield= 0.00%
Div. Adj. interest rate= 5.00%

d1 = 11.3603541
N (d1) = 1

d2 = 10.9929306
N (d2) = 1

Value per option = $767.58

Value of all options outstanding = $1,711.71
Bottom-up Beta Calculator
Unlevered beta for sector = 1.04 ! Look up industry averages

Output
Firm's Current market value D/E ratio = 33.87% ! Reverted back to conventional debt to equity ratio
Firm's Current tax rate = 33.99%

Bottom-up beta for firm = 1.27

1.63636364
Inputs for synthetic rating estimation
Enter the type of firm = 2 (Enter 1 if large manufacturing firm, 2 if smaller or riskier firm, 3 if financial service firm)
Enter current Earnings before interest and taxes (EBIT) = $17,527.00 (Add back only long term interest expense for financial f
Enter current interest expenses = $6,737.00 (Use only long term interest expense for financial firms)
Enter current long term government bond rate = 5.00%
Output
Interest coverage ratio = 2.60
Estimated Bond Rating = B+
Estimated Default Spread = 4.25%
Estimated Cost of Debt = 9.25%

For large manufacturing firms For financial service firms

If interest coverage ratio is If long term interest coverage ratio is
> ≤ to Rating is Spread is greater than ≤ to Rating is Spread is
-100000 0.199999 D 15.00% -100000 0.049999 D 15.00%
0.2 0.649999 C 12.00% 0.05 0.099999 C 12.00%
0.65 0.799999 CC 10.00% 0.1 0.199999 CC 10.00%
0.8 1.249999 CCC 8.50% 0.2 0.299999 CCC 8.50%
1.25 1.499999 B- 5.50% 0.3 0.399999 B- 5.50%
1.5 1.749999 B 5.25% 0.4 0.499999 B 5.25%
1.75 1.999999 B+ 4.25% 0.5 0.599999 B+ 4.25%
2 2.2499999 BB 4.00% 0.6 0.749999 BB 4.00%
2.25 2.49999 BB+ 3.50% 0.75 0.899999 BB+ 3.50%
2.5 2.999999 BBB 2.00% 0.9 1.199999 BBB 2.00%
3 4.249999 A- 1.50% 1.2 1.49999 A- 1.50%
4.25 5.499999 A 1.25% 1.5 1.99999 A 1.25%
5.5 6.499999 A+ 1.00% 2 2.49999 A+ 1.00%
6.5 8.499999 AA 0.75% 2.5 2.99999 AA 0.75%
8.50 100000 AAA 0.50% 3 100000 AAA 0.50%

For smaller and riskier firms

If interest coverage ratio is
greater than ≤ to Rating is Spread is
-100000 0.499999 D 15.00%
0.5 0.799999 C 12.00%
0.8 1.249999 CC 10.00%
1.25 1.499999 CCC 8.50%
1.5 1.999999 B- 5.50%
2 2.499999 B 5.25%
2.5 2.999999 B+ 4.25%
3 3.499999 BB 4.00%
3.5 3.9999999 BB+ 3.50%
4 4.499999 BBB 2.00%
4.5 5.999999 A- 1.50%
6 7.499999 A 1.25%
7.5 9.499999 A+ 1.00%
9.5 12.499999 AA 0.75%
12.5 100000 AAA 0.50%
financial service firm)
nterest expense for financial firms)
t expense for financial firms)

Operating Income Decline

15.00%
10.00%
8.00%
6.00%
5.00%
4.50%
4.00%
3.00%
2.50%
1.50%
1.30%
1.20%
1.15%
0.90%
0.70%
Industry Name Number of firmsLevered Beta Unlevered BStd Dev: Equity Market D/E Market DeROE
Advertising 30 1.43 0.87 80.69% 126.31% 55.81% 21.54%
Aerospace/Defense 66 1.27 1.20 47.75% 27.21% 21.39% 25.52%
Air Transport 44 1.15 0.86 60.46% 78.21% 43.89% 31.77%
Apparel 53 1.14 0.93 68.33% 44.32% 30.71% 16.38%
Auto & Truck 20 1.49 0.76 34.92% 183.75% 64.76% 85.35%
Auto Parts 54 1.56 1.10 52.04% 94.19% 48.50% 19.79%
Bank 477 0.71 0.47 27.49% 91.52% 47.79% 14.58%
Bank (Canadian) 8 0.86 0.83 17.85% 10.36% 9.39% 23.19%
Bank (Midwest) 39 0.91 0.66 27.13% 68.98% 40.82% 17.19%
Beverage 41 0.95 0.85 54.53% 19.02% 15.98% 24.85%
Biotechnology 108 1.25 1.27 69.85% 9.98% 9.08% 22.16%
Building Materials 52 1.39 0.80 61.96% 103.11% 50.76% 13.03%
Cable TV 25 1.56 0.95 44.91% 88.77% 47.03% 7.00%
Canadian Energy 12 1.22 0.99 33.84% 35.70% 26.31% 20.83%
Chemical (Basic) 19 1.26 1.10 37.09% 29.11% 22.55% 25.33%
Chemical (Diversified) 33 1.21 1.10 39.47% 26.70% 21.07% 26.45%
Chemical (Specialty) 88 1.18 0.98 57.61% 35.74% 26.33% 18.88%
Coal 18 1.98 1.43 49.41% 48.02% 32.44% 13.96%
Computer Software/Svcs 322 1.22 1.33 71.38% 7.77% 7.21% 47.49%
Computers/Peripherals 125 1.29 1.39 82.96% 18.36% 15.51% 49.14%
Diversified Co. 113 1.25 0.60 48.51% 160.98% 61.68% 29.12%
Drug 342 1.16 1.14 96.99% 14.51% 12.67% 26.23%
E-Commerce 54 1.50 1.76 57.18% 11.43% 10.26% 10.10%
Educational Services 34 0.84 0.89 52.81% 2.22% 2.18% 48.89%
Electric Util. (Central) 24 0.82 0.49 21.09% 107.83% 51.88% 11.46%
Electric Utility (East) 26 0.74 0.50 22.24% 73.30% 42.30% 13.38%
Electric Utility (West) 16 0.79 0.50 18.64% 90.70% 47.56% 10.89%
Electrical Equipment 83 1.37 1.26 57.31% 23.53% 19.05% 24.82%
Electronics 173 1.31 1.23 79.26% 45.62% 31.33% 10.63%
Entertainment 84 1.66 1.09 50.24% 79.23% 44.21% 8.08%
Entertainment Tech 33 1.45 2.33 70.79% 11.54% 10.35% -5.09%
Environmental 79 1.11 0.80 87.19% 49.86% 33.27% 14.34%
Financial Svcs. (Div.) 296 1.27 0.45 62.78% 261.38% 72.33% 14.91%
Food Processing 109 0.80 0.65 40.11% 35.15% 26.01% 20.98%
Food Wholesalers 18 0.73 0.54 46.75% 59.50% 37.30% 15.36%
Foreign Electronics 10 1.18 1.40 25.56% 42.29% 29.72% 12.30%
Furn/Home Furnishings 34 1.29 0.94 43.85% 65.75% 39.67% 12.64%
Grocery 14 0.84 0.78 27.93% 13.91% 12.21% 17.58%
Healthcare Information 29 1.05 1.04 50.75% 19.87% 16.58% 43.47%
Heavy Construction 14 1.48 1.74 42.91% 9.49% 8.67% 21.05%
Homebuilding 32 1.36 0.65 44.28% 162.15% 61.85% -63.59%
Hotel/Gaming 68 1.70 0.84 64.47% 142.62% 58.78% 17.10%
Household Products 26 1.08 0.95 37.34% 23.21% 18.84% 21.67%
Human Resources 31 1.44 1.61 43.81% 18.42% 15.55% 16.30%
Industrial Services 167 1.20 0.98 63.50% 43.98% 30.55% 19.74%
Information Services 34 1.22 1.24 37.26% 21.88% 17.95% 32.04%
Insurance (Life) 35 1.17 1.27 50.74% 21.71% 17.84% 20.91%
Insurance (Prop/Cas.) 78 0.91 0.92 26.47% 1.89% 1.85% 20.44%
Internet 208 1.41 1.66 86.31% 4.07% 3.91% 25.60%
Investment Co. 17 0.83 0.90 18.96% 14.84% 12.92% 647.73%
Investment Co.(Foreign) 16 1.31 1.36 28.87% 5.16% 4.90% 10.46%
Machinery 124 1.39 1.08 48.66% 55.77% 35.80% 23.51%
Manuf. Housing/RV 18 1.32 1.38 47.67% 50.13% 33.39% 8.90%
Maritime 56 1.30 0.52 37.08% 185.73% 65.00% 19.95%
Medical Services 160 1.10 0.90 86.84% 54.66% 35.34% 24.56%
Medical Supplies 252 1.17 1.13 72.38% 13.28% 11.72% 23.17%
Metal Fabricating 35 1.56 1.55 60.00% 25.44% 20.28% 22.01%
Metals & Mining (Div.) 78 1.69 1.48 97.21% 21.94% 17.99% 30.86%
Natural Gas (Div.) 34 1.20 0.85 35.65% 58.57% 36.94% 14.31%
Natural Gas Utility 25 0.69 0.43 25.71% 85.33% 46.04% 12.36%
Newspaper 16 1.16 0.72 34.32% 86.43% 46.36% 13.96%
Office Equip/Supplies 26 1.11 0.84 42.36% 60.35% 37.64% 19.85%
Oil/Gas Distribution 19 0.89 0.53 36.90% 81.95% 45.04% 15.81%
Oilfield Svcs/Equip. 112 1.56 1.27 46.34% 42.35% 29.75% 25.10%
Packaging & Container 33 1.27 0.81 39.90% 84.83% 45.90% 15.41%
Paper/Forest Products 38 1.20 0.64 48.42% 118.10% 54.15% 5.75%
Petroleum (Integrated) 25 1.34 1.30 37.35% 14.67% 12.79% 26.14%
Petroleum (Producing) 188 1.24 0.97 78.27% 37.57% 27.31% 16.75%
Pharmacy Services 19 0.94 0.81 30.96% 23.50% 19.03% 11.99%
Power 66 1.63 0.95 71.09% 107.88% 51.90% 19.05%
Precious Metals 75 1.41 1.37 67.33% 11.77% 10.53% 3.32%
Precision Instrument 90 1.47 1.59 53.96% 22.65% 18.47% 15.26%
Property Management 17 1.38 0.46 32.79% 282.91% 73.88% 9.58%
Publishing 27 1.24 0.62 39.28% 137.13% 57.83% -66.38%
R.E.I.T. 144 1.35 0.92 36.52% 53.19% 34.72% 8.95%
Railroad 15 1.25 0.99 30.42% 41.53% 29.34% 15.12%
Recreation 64 1.41 1.01 57.75% 62.58% 38.49% 14.49%
Reinsurance 11 0.91 1.00 22.33% 11.37% 10.21% 17.04%
Restaurant 68 1.26 1.09 48.95% 24.97% 19.98% 29.70%
Retail (Special Lines) 155 1.26 1.22 57.15% 26.07% 20.68% 23.03%
Retail Automotive 16 1.31 0.93 35.23% 66.88% 40.08% 16.17%
Retail Building Supply 8 1.01 0.86 24.82% 26.35% 20.85% 21.07%
Retail Store 38 1.01 0.86 40.30% 30.29% 23.25% 19.89%
Securities Brokerage 32 1.37 0.37 51.25% 462.27% 82.22% -11.10%
Semiconductor 122 1.81 2.11 59.20% 13.32% 11.75% 22.18%
Semiconductor Equip 16 1.78 2.20 43.35% 13.62% 11.98% 32.37%
Shoe 19 1.23 1.39 39.32% 3.66% 3.53% 28.40%
Steel (General) 20 1.71 1.53 44.25% 32.18% 24.34% 27.03%
Steel (Integrated) 14 1.96 1.54 49.03% 64.96% 39.38% 20.96%
Telecom. Equipment 110 1.49 1.87 75.07% 12.71% 11.28% 35.37%
Telecom. Services 140 1.43 1.06 82.14% 51.32% 33.91% 16.18%
Thrift 234 0.66 0.69 31.62% 9.71% 8.85% 6.69%
Tobacco 12 0.71 0.69 29.69% 8.84% 8.12% 70.43%
Toiletries/Cosmetics 23 0.95 0.79 51.70% 38.50% 27.80% 98.41%
Trucking 33 1.17 0.66 38.85% 126.80% 55.91% 12.03%
Utility (Foreign) 5 1.23 0.85 28.01% 62.82% 38.58% 3.89%
Water Utility 16 0.86 0.57 35.87% 82.79% 45.29% 0.63%
Wireless Networking 57 1.54 1.28 58.41% 36.37% 26.67% 7.85%
Public/Private Equity 10 2.08 0.48 45.59% 391.15% 79.64% 17.72%
Funeral Services 6 1.41 1.02 29.93% 67.25% 40.21% 15.04%
Market 6870 1.19 0.93 56.57% 48.81% 32.80% 20.64%
ROC Effective Tax Rate Pre-tax Op After-tax Operatin Net Margin Cap Ex/ Deprecia
13.01% 18.90% 17.93% 11.95% 2.26% 66.89%
19.53% 24.10% 12.31% 8.31% 3.57% 115.91%
22.00% 23.00% 13.57% 11.05% 0.17% 158.61%
18.05% 17.21% 12.98% 10.18% 2.69% 141.22%
18.80% 24.36% 13.10% 7.96% 0.57% 90.69%
21.81% 19.61% 7.65% 5.56% 0.90% 94.73%
NA 25.91% NA NA NA NA
NA 15.08% NA NA NA NA
NA 26.81% NA NA NA NA
18.98% 16.46% 20.00% 14.75% 5.77% 115.01%
14.78% 3.59% 26.91% 16.90% 8.33% 128.27%
11.35% 18.44% 14.04% 10.51% 2.23% 130.86%
10.91% 22.97% 34.41% 19.49% 3.28% 102.79%
25.35% 27.82% 40.66% 28.84% 9.48% 211.40%
21.96% 19.29% 15.05% 11.97% 6.40% 109.34%
23.67% 25.47% 19.87% 14.14% 5.55% 118.69%
17.93% 18.99% 14.08% 9.75% 2.69% 109.81%
20.13% 10.52% 18.05% 15.76% 4.53% 139.17%
36.64% 12.65% 24.51% 17.24% 8.24% 89.63%
32.96% 9.90% 11.61% 8.78% 3.55% 95.27%
10.79% 20.23% 22.39% 17.93% 4.85% 146.86%
22.57% 5.96% 30.15% 22.65% 8.38% 61.72%
12.54% 13.09% 12.69% 8.76% 3.38% 146.25%
46.84% 20.80% 17.36% 11.69% 5.63% 106.44%
10.28% 33.02% 21.86% 14.67% 3.61% 218.97%
11.64% 32.09% 25.85% 17.24% 4.49% 206.28%
11.52% 30.47% 24.38% 16.51% 3.72% 218.34%
20.50% 14.23% 15.75% 11.48% 4.96% 126.55%
13.01% 11.87% 7.57% 5.61% 1.40% 122.53%
9.98% 17.17% 23.75% 15.00% 3.66% 91.06%
4.51% 13.67% 3.93% 1.77% -1.45% 66.84%
13.67% 15.45% 21.85% 13.42% 3.48% 99.42%
12.33% 17.93% 85.68% 76.59% -22.60% 258.58%
15.64% 21.67% 11.98% 8.59% 2.98% 123.88%
14.62% 27.39% 5.66% 3.75% 0.94% 122.12%
16.90% 37.04% 13.50% 7.43% 1.67% 87.71%
13.85% 23.99% 10.51% 7.04% 1.43% 84.73%
17.38% 32.96% 5.87% 3.81% 1.06% 165.00%
24.69% 16.47% 20.66% 14.16% 7.79% 84.61%
18.45% 34.26% 5.98% 3.85% 2.23% 142.75%
-23.17% 6.13% -16.16% -16.36% -10.34% 72.88%
10.83% 17.97% 22.98% 15.26% 3.26% 330.71%
17.10% 29.87% 21.24% 15.33% 5.90% 94.67%
17.34% 29.77% 5.69% 3.31% 1.20% 81.85%
18.18% 19.26% 11.76% 8.27% 2.03% 134.26%
21.20% 20.44% 21.26% 14.72% 5.92% 98.29%
NA 25.86% NA NA NA 192725.00%
NA 20.26% NA NA NA 38706.98%
26.46% 7.50% 19.23% 13.94% 6.53% 133.62%
 NA 0.00% NA NA NA 20.00%
NA 2.11% NA NA NA 84.21%
17.21% 22.71% 13.72% 9.49% 3.49% 134.95%
9.47% 14.98% 3.83% 2.37% -1.61% 81.33%
12.18% 7.08% 30.66% 29.09% 13.32% 523.30%
18.25% 18.36% 12.69% 8.16% 2.38% 146.47%
20.34% 12.51% 11.53% 8.54% 3.60% 98.75%
21.33% 20.43% 14.65% 10.22% 2.71% 195.35%
27.62% 9.29% 36.00% 25.33% 5.94% 251.65%
15.08% 24.19% 34.06% 23.75% 9.41% 281.53%
12.02% 24.52% 14.77% 10.36% 2.30% 146.56%
11.21% 23.53% 21.90% 16.06% 2.18% 71.55%
15.81% 22.76% 9.94% 6.92% 1.74% 83.36%
11.69% 9.48% 15.24% 12.24% 4.25% 373.42%
20.50% 22.07% 26.36% 19.65% 8.24% 268.73%
17.06% 24.65% 13.39% 10.04% 1.97% 95.74%
11.21% 13.66% 12.24% 10.31% 0.80% 90.62%
25.61% 33.79% 17.96% 10.45% 5.11% 186.98%
23.41% 13.98% 38.57% 26.43% 6.99% 291.48%
12.17% 21.13% 6.41% 4.13% 1.43% 163.33%
11.71% 6.25% 18.09% 12.74% 2.50% 197.18%
8.54% 5.94% 32.80% 23.79% 9.32% 230.19%
16.76% 14.38% 16.31% 12.59% 4.11% 51.15%
9.81% 19.27% 35.51% 27.99% 4.02% 608.41%
20.12% 20.73% 17.26% 10.27% 1.30% 89.69%
8.49% 1.21% 18.11% 16.08% 61.19% 607.00%
13.91% 30.62% 31.92% 20.60% 7.24% 190.87%
14.02% 19.12% 19.56% 15.62% 4.49% 201.19%
NA 8.87% NA NA NA NA
22.15% 20.10% 16.35% 13.16% 4.10% 178.56%
22.65% 23.08% 9.37% 6.06% 1.82% 139.68%
11.67% 34.23% 6.72% 4.31% 1.26% 233.04%
17.82% 28.12% 11.59% 7.31% 2.26% 242.53%
15.19% 25.68% 6.93% 4.47% 1.56% 202.23%
15.35% 22.16% 33.95% 25.61% -1.40% 166.76%
28.67% 10.48% 27.73% 21.97% 4.69% 110.68%
29.91% 22.03% 23.75% 17.41% 4.57% 95.15%
28.46% 30.35% 12.52% 8.44% 1.68% 135.60%
21.54% 29.15% 12.53% 8.29% 4.36% 187.15%
19.41% 29.90% 18.78% 14.41% 5.67% 124.02%
26.58% 12.08% 13.97% 10.62% 2.81% 71.60%
22.22% 15.90% 39.80% 28.38% 3.45% 190.13%
NA 17.04% NA NA NA NA
32.64% 20.25% 9.68% 6.66% 3.00% 331.23%
23.11% 23.28% 12.03% 7.97% 3.04% 117.56%
12.67% 33.19% 13.28% 8.54% 0.95% 682.72%
9.93% 15.01% 15.29% 9.47% 0.01% 143.73%
8.11% 35.46% 40.45% 25.93% 3.63% 262.28%
10.21% 14.08% 18.28% 11.63% 3.52% 82.96%
6.46% 6.70% 53.29% 47.57% 22.90% 15.66%
11.67% 33.26% 20.82% 13.16% 2.96% 116.53%
17.73% 16.67% 20.77% 14.61% 3.44% 158.90%
Non-cash WCPayout Rati Reinvestment RSales/Capital EV/Sales
-15.13% 7.17% -1.16% 1.09 0.94
-0.61% 12.42% -0.05% 2.35 0.73
-8.01% 9.33% 13.68% 1.99 0.65
19.55% 8.42% -0.71% 1.77 0.64
13.27% 8.71% 6.48% 2.36 0.51
6.44% 17.95% -4.20% 3.92 0.29
NA 36.07% 0.00% NA NA
NA 46.75% 0.00% NA NA
NA 54.64% 0.00% NA NA
5.16% 23.38% 5.26% 1.29 1.99
4.60% 0.49% 6.79% 0.87 5.71
6.64% 14.30% 9.21% 1.08 0.85
-10.57% 11.78% 3.61% 0.56 2.20
-5.37% 11.45% 28.10% 0.88 1.61
11.16% 16.37% -6.47% 1.84 0.88
13.88% 19.75% -9.92% 1.67 1.15
11.64% 17.73% -2.32% 1.84 0.90
4.69% 20.71% 5.35% 1.28 1.26
-6.37% 10.17% -0.96% 2.12 1.93
-0.69% 6.33% -1.84% 3.75 0.70
91.24% 20.12% -12.75% 0.60 1.96
10.48% 25.99% -5.83% 1.00 2.63
-14.07% 1.20% 8.42% 1.43 1.86
-11.48% 2.31% 5.63% 4.01 2.75
5.39% 31.65% 31.79% 0.70 1.65
5.64% 29.52% 25.82% 0.68 1.93
1.50% 24.77% 34.95% 0.70 1.57
12.14% 13.79% -2.87% 1.79 1.00
12.65% 7.35% 0.49% 2.32 0.32
-0.16% 11.91% -1.55% 0.67 1.27
-6.03% NA 51.10% 2.55 0.85
3.48% 22.11% -4.43% 1.02 1.73
28.75% 22.83% -612.73% 0.16 6.96
6.15% 14.65% -7.14% 1.82 1.01
0.94% 11.15% 4.36% 3.90 0.36
8.53% 9.77% -6.57% 2.27 0.32
13.15% 13.14% -0.04% 1.97 0.45
-0.29% 6.47% 18.50% 4.56 0.79
4.58% 3.84% -6.78% 1.74 2.08
1.17% 3.83% -4.58% 4.80 0.49
57.77% NA NA 1.42 0.58
-3.58% 10.47% 52.78% 0.71 1.50
5.69% 21.58% -2.39% 1.12 2.05
5.48% 7.33% -7.15% 5.24 0.23
6.88% 5.16% 7.60% 2.20 0.71
-1.64% 5.47% 0.90% 1.44 1.68
NA 23.35% 0.00% NA NA
NA 14.29% -0.07% NA NA
-6.83% 0.20% 6.25% 1.90 2.22
 NA NA NA NA NA
NA 36.72% -1.55% NA NA
16.14% 10.21% -1.51% 1.81 0.70
5.71% 9.05% 9.17% 3.99 0.17
7.18% 17.67% 69.70% 0.42 2.23
-6.66% 0.86% 5.72% 2.24 0.59
6.59% 15.25% -3.33% 2.38 1.08
10.84% 10.49% 8.66% 2.09 0.59
5.81% 10.00% 10.91% 1.09 1.49
-3.94% 13.80% 50.53% 0.63 2.00
5.17% 30.14% 8.35% 1.16 1.09
3.05% 9.12% -4.55% 0.70 1.12
9.33% 10.66% -5.75% 2.28 0.52
-0.45% 39.70% 47.94% 0.95 1.36
12.70% 6.06% 18.86% 1.04 1.24
5.96% 12.39% -3.29% 1.70 0.72
11.37% 28.92% 0.62% 1.09 0.74
2.22% 14.04% 12.52% 2.45 0.65
2.89% 5.13% 42.65% 0.89 1.29
5.33% 6.20% 2.63% 2.95 0.56
6.96% 0.19% 12.47% 0.92 1.54
0.02% 19.95% 51.75% 0.36 4.72
10.13% 4.96% -14.88% 1.33 0.92
-17.86% 23.90% 94.40% 0.35 2.90
4.17% 80.61% -1.09% 1.96 0.89
-4.12% 115.46% 242.89% 0.53 4.05
-4.11% 14.10% 18.83% 0.68 2.03
-0.80% 21.67% 20.73% 0.90 1.16
NA 12.85% 0.00% NA NA
-5.11% 21.18% 14.97% 1.68 1.57
6.30% 9.70% 9.60% 3.74 0.40
12.86% 1.96% 24.14% 2.70 0.47
5.07% 14.55% 23.42% 2.44 0.72
1.53% 11.18% 22.28% 3.40 0.54
120.39% 28.02% 140.87% 0.60 1.82
8.97% 21.82% 1.50% 1.30 1.31
15.62% 5.01% 5.06% 1.72 0.81
16.15% 11.89% 1.42% 3.37 0.84
14.33% 9.43% -13.36% 2.60 0.55
15.49% 6.35% -8.04% 1.35 0.59
0.25% 13.06% -7.29% 2.50 0.90
-10.85% 21.11% -1.41% 0.78 1.69
NA 64.16% 422.33% NA NA
0.78% 32.09% 24.30% 4.90 1.47
8.54% 16.72% 0.78% 2.90 0.98
5.27% 8.06% 170.96% 1.48 0.75
4.62% 0.00% 0.00% 1.05 0.90
1.68% 274.15% 18.42% 0.31 3.80
6.91% 1.53% -32.77% 0.88 2.36
33.11% 23.46% 0.73% 0.14 4.01
0.96% 17.83% 1.70% 0.89 1.40
9.07% 16.22% -30.90% 1.21 1.28