Date of valuation Jul-23 Important: Before you run this spreadsheet, go into p

Company name Gmm There should be a check against the iteration box. If there is
Numbers from your base year below ( in consistent units)
This year Last year
Country of incorporation India
Industry (US) Engineering/Construction
Industry (Global) Engineering/Construction Last 10K Years since last 10K
Revenues $ 3,178.00 $ - 0
Operating income or EBIT $ 431.00 $ - 0
Interest expense $ 67.00 $ -
Book value of equity $ 804.00 $ -
Book value of debt $ 973.00 $ -
Do you have R&D expenses to capitalize? No If you want to capitalize R&D, you have to input the
Do you have operating lease commitments? No If you have operating leases, please enter your lease c
Cash and Marketable Securities $ 372.00 $ -
Cross holdings and other non-operating assets $ - $ -
Minority interests $ - $ -
Number of shares outstanding = 4.50
Current stock price = $ 1,457.00
Effective tax rate = 25.00%
Marginal tax rate = 25.00%
The value drivers below:
Revenue growth rate for next year 15.00%
Operating Margin for next year 13.00%
Compounded annual revenue growth rate - years 2-5& 6-10 = 20.00% 20.0%
Target pre-tax operating margin (EBIT as % of sales in year 1 13.00% Profitability Lever
Year of convergence 0.00 Speed of convergence level
Sales to capital ratio (for computing reinvestment) = 1.90 Efficency of Growth Lever
Market numbers
Riskfree rate 7.00%
Initial cost of capital = 15.00%
Other inputs
Do you have employee options outstanding? No
Number of options outstanding = -
Average strike price = $ 0.00
Average maturity = -
Standard deviation on stock price = 45.00%

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 = Yes Mature companies generally see their risk levels appr
If yes, enter the cost of capital after year 10 = 10.00% Though some sectors, even in stable growth, may have
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
Do you want to override this assumption = Yes Mature companies find it difficult to generate returns
If yes, enter the return on capital you expect after year 10 20% But there are significant exceptions among companies
I will assume that your firm has no chance of failure over the foreseeable future.
Do you want to override this assumption = No Many young, growth companies fail, especially if they
If yes, enter the probability of failure = 5% Tough to estimate but a key input.
What do you want to tie your proceeds in failure to? V B: Book value of capital, V= Estimated fair value for

1
Enter the distress proceeds as percentage of book or fair value 50% This can be zero, if the assets will be worth nothing if
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 l
Do you want to override this assumption = No
I will assume that you have no losses carried forward from prior years ( NOL) coming into the valuation. If you have a money losing compa
Do you want to override this assumption = No Check the financial statements.
If yes, enter the NOL that you are carrying over into year 1 $ 250.00 An NOL will shield your income from taxes, even afte
I will asssume that today's risk free rate will prevail in perpetuity. If you override this assumption, I will change the riskfree rate after year 10.
Do you want to override this assumption = No If yes, you will be asked to enter a normal risk free ra
If yes, enter the riskfree rate after year 10 2.00% Enter your estimate of what the riskfree rate (in your
I will assume that the growth rate in perpetuity will be equal to the risk free rate. This allows for both valuation consistency and prevents "im
Do you want to override this assumption = No This is an option to let you use a negative growth rate
If yes, enter the growth rate in perpetuity 50.00% This can be negative, if you feel the company will dec
I have assumed that none of the cash is trapped (in foreign countries) and that there is no additional tax liability coming due and that cash is a neutral ass
Do you want to override this assumption No
If yes, enter trapped cash (if taxes) or entire balance (if mistru $ 140,000.00 Cash that is trapped in foreign markets (and subject to addi
& Average tax rate of the foreign markets where the cash is t 15% Additional tax rate due on trapped cash or discount being a

2
 run this spreadsheet, go into preferences in Excel and check under Calculation options
gainst the iteration box. If there is not, you will get circular reasoning errors.
w ( in consistent units)

s since last 10K

e R&D, you have to input the numbers into the R&D worksheet.
ases, please enter your lease commitments in the lease worksheet below and I will convert to debt

Computed numbers: Here is what your company's numbers look like, relative to industry.
If you are not working in US dollars, you should add the inflation differential to the industry averages.
Company Industry (US data)Industry (Global data)
Revenue growth in the most recent year = NA 3.57% 3.73%
Pre-tax operating margin in the most recent year = 13.56% 4.10% 4.93%
Sales to capital ratio in most recent year = 2.26 3.80 2.02
Return on invested capital in most recent year= 23.01% 14.85% 8.89%
Standard deviation in stock prices = 42.04% 29.24%
Cost of capital = 5.10% 4.77%

Valuation Output Feedback (for you to use to fine tune your inputs, if you want)
Revenues in year 10, based on your revenue growth = $ 18,857
Pre-tax Operating Income in year 10, based on your operating margin = $ 2,451
Return on invested capital in year 10, based on your sales/capital ratio 19.04%
Check the Diagnostics worksheet for more details.

ree rate + 4.5%)

rally see their risk levels approach the average
ven in stable growth, may have higher risk. If you change your risk free rate after year 10 (see cell B57 & 58), you should incorporate it into your stable c
ing that whatever competitive advantages you have today will fade over time.
it difficult to generate returns that exceed the cost of capital
t exceptions among companies with long-lasting competitive advantages.

mpanies fail, especially if they have trouble raising cash. Many distressed companies fail, because they have trouble making debt payments.

l, V= Estimated fair value for the company

3
assets will be worth nothing if the firm fails.
erride this assumption, I will leave the tax rate at your effective tax rate.

ou have a money losing company, you may want to override tis.

r income from taxes, even after you start making money.

ee rate after year 10.
to enter a normal risk free rate and your growth in perpetuity will be adjusted accordingly.
what the riskfree rate (in your currency of choice) will be after year 10
n consistency and prevents "impossible" growth rates.
you use a negative growth rate in perpetuity or to even liquidate the firm.
you feel the company will decline (and disappear) after growth is done. If you let it exceed the risk free rate, you are on your own in uncharted territory.
due and that cash is a neutral asset.

eign markets (and subject to additoinal tax) or cash that is being discounted by the market (because of management mistrust)
trapped cash or discount being applied to cash balance because of mistrust.

4
orporate it into your stable cost of capital estimate.

debt payments.

5
own in uncharted territory.

6
 Base year 1 2 3 4 5 6 7
Revenue growth rate 15.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
Revenues $ 3,178.00 $ 3,654.70 $ 4,385.64 $ 5,262.77 $ 6,315.32 $ 7,578.39 $ 9,094.06 $ 10,912.88
EBIT (Operating) margin 13.56% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00%
EBIT (Operating income) $ 431.00 $ 475.11 $ 570.13 $ 684.16 $ 820.99 $ 985.19 $ 1,182.23 $ 1,418.67
Tax rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-t) $ 323.25 $ 356.33 $ 427.60 $ 513.12 $ 615.74 $ 738.89 $ 886.67 $ 1,064.01
- Reinvestment $ 250.89 $ 384.71 $ 461.65 $ 553.98 $ 664.77 $ 797.72 $ 957.27
FCFF $ 105.44 $ 42.89 $ 51.47 $ 61.77 $ 74.12 $ 88.95 $ 106.74
NOL $ - $ - $ - $ - $ - $ - $ - $ -

Cost of capital 15.00% 15.00% 15.00% 15.00% 15.00% 14.00% 13.00%

Cumulated discount factor 0.8696 0.7561 0.6575 0.5718 0.4972 0.4361 0.3859
PV(FCFF) $ 91.69 $ 32.43 $ 33.84 $ 35.32 $ 36.85 $ 38.79 $ 41.19

Terminal cash flow $ 1,838.60

Terminal cost of capital 10.00%
Terminal value $ 18,386.01
PV(Terminal value) $ 5,188.97
PV (CF over next 10 years) $ 454.02
Sum of PV $ 5,643.00
Probability of failure = 0.00%
Proceeds if firm fails = $ 2,821.50
Value of operating assets = $ 5,643.00
- Debt $ 973.00
- Minority interests $ -
+ Cash $ 372.00
+ Non-operating assets $ -
Value of equity $ 5,042.00
- Value of options $0.00

7
Value of equity in common s $ 5,042.00
Number of shares 4.50
Estimated value /share $ 1,120.44
Price $ 1,457.00
Overvalue(undervalued) 23.10%

Implied variables
Sales to capital ratio 1.90 1.90 1.90 1.90 1.90 1.90 1.90
Invested capital $ 1,405 $ 1,656 $ 2,041 $ 2,502 $ 3,056 $ 3,721 $ 4,519 $ 5,476
ROIC 23.01% 21.52% 20.95% 20.51% 20.15% 19.86% 19.62% 19.43%

8
 8 9 10 Terminal year Check these revenues
20.00% 20.00% 20.00% against
a. Overall market size
$ 13,095.45 $ 15,714.54 $ 18,857.45 $ 18,857.45 b. Largest companies in this
13.00% 13.00% 13.00% 13.00% market
This is is how much your operating
$ 1,702.41 $ 2,042.89 $ 2,451.47 $ 2,451.47 $ 2,020.47
income grew over the ten-year
25.00% 25.00% 25.00% 25.00% period.
$ 1,276.81 $ 1,532.17 $ 1,838.60 $ 1,838.60
This is how much capital
$ 1,148.72 $ 1,378.47 $ 1,654.16 $ - $ 8,252.34 you invested over the ten
$ 128.08 $ 153.70 $ 184.44 $ 1,838.60 year period.
$ - $ - $ - $ -

12.00% 11.00% 10.00% 10.00%

0.3446 0.3104 0.2822
$ 44.14 $ 47.72 $ 52.05

9
 After year 10
1.90 1.90 1.90
$ 6,625 $ 8,003 $ 9,657
19.27% 19.14% 19.04% 20.00%

Compare this return on capital in year 10 against

a. the industry average(column E of worksheet)
b. the return on capital after year 10
If it is too high (low), you may want to lower (raise) your
sales to capital ratio

10
 Gmm
The Story

Boeing is in deep trouble. Already exposed to significant pain because of its mishandling of the Boeing 737 Max, wh
revenues to plummet in 2019, the company is facing a mountain of pain with the Corona Virus decimating the airlin
(Boeing's customers). I assume more pain the year to come, with revenues dropping even with the 737 Max return
and increased losses. After that, i assume that there will be higher growth, as airlines start playing catch up and buy
from a duopoly. I assume that margins will revert back to pre-2018 levels over the next 5 years and that during the
Boeing is exposed to a risk of failure, not so much because it will go out of business (it is too big to fail) but from ne
from the government that is large enough to wipe out equity (as was the case with GM in 2009).
The Assumptions
Base year Next year Years 1-5 Years 6-10 After year 10
Revenues (a) $ 3,178 15.0% 20.00% 20.00% 0.00%
Operating margin (b) 13.56% 13.0% 13.56% 13.00% 13.00%
Tax rate 25.00% 25.00% 25.00% 25.00%
Reinvestment (c ) Sales to Capital = 1.90 0.00%
Return on capital 23.01% Marginal ROIC = 24.48% 20.00%
Cost of capital (d) 15.00% 10.00% 10.00%
The Cash Flows
Revenues Operating MargiEBIT EBIT (1-t) Reinvestment
1 $ 3,655 13.00% $ 475 $ 356 $ 251
2 $ 4,386 13.00% $ 570 $ 428 $ 385
3 $ 5,263 13.00% $ 684 $ 513 $ 462
4 $ 6,315 13.00% $ 821 $ 616 $ 554
5 $ 7,578 13.00% $ 985 $ 739 $ 665
6 $ 9,094 13.00% $ 1,182 $ 887 $ 798
7 $ 10,913 13.00% $ 1,419 $ 1,064 $ 957
8 $ 13,095 13.00% $ 1,702 $ 1,277 $ 1,149
9 $ 15,715 13.00% $ 2,043 $ 1,532 $ 1,378
10 $ 18,857 13.00% $ 2,451 $ 1,839 $ 1,654
Terminal year $ 18,857 13.00% $ 2,451 $ 1,839 $ -
The Value
Terminal value $ 18,386
PV(Terminal value) $ 5,189
PV (CF over next 10 years) $ 454
Value of operating assets = $ 5,643
Adjustment for distress $ - Probability of failure =
- Debt & Minority Interests $ 973
+ Cash & Other Non-operating assets $ 372
Value of equity $ 5,042
- Value of equity options $ -

11
Number of shares 4.50
Value per share $ 1,120.44 Stock was trading at =

12
 Jul-23
ng of the Boeing 737 Max, which caused
na Virus decimating the airline business
ven with the 737 Max returning to the fold
tart playing catch up and buy more aircraft
t 5 years and that during the next year,
is too big to fail) but from needing a bailout
M in 2009).
Link to story
Duopoly, growing market
Industry margins, also close to historical
Global/US marginal tax rate over time
Maintined at Boeing's current level
Excess capacity being utilized for growth
Cost of capital decreases to mkt average
FCFF
$ 105
$ 43
$ 51
$ 62
$ 74
$ 89
$ 107
$ 128
$ 154
$ 184
$ 1,839
0.00%
Tell your story about the company. Keep it
focuses on the company's businesses and tie it
into the three key levers of value: cash flows,
growth and risk
Tie each assumption to the part of your story
that relates to it.
These are the numbers that come from your
assumptions. The revenues over time reflect
your revenue growth, the operating margins
evolve towards your target margin and your
tax rate will change, if you have set it to. The
reinvestment is estimated using the sales to
capital ratio for the first 10 years and based
on a reinvestment rate in stable growth (g/
ROC).
This is the output from your valuation. It
reflects your cash flows being discounted
back at the cost of capital to get to your
operating asset value, which then gets
adjusted for the likelihood that your firm will
not make it. We add cash and non-operating
assets, subtract out debt and minority
interests to get to value of equity.
13
 back at the cost of capital to get to your
operating asset value, which then gets
adjusted for the likelihood that your firm will
not make it. We add cash and non-operating
assets, subtract out debt and minority
interests to get to value of equity.

$ 1,457.00

14
VALUATION DIAGNOSTICS
Invested capital at start of valuation $ 1,405.00
Invested capital at end of valuation $ 9,657.34
Change in invested capital over 10 years $ 8,252.34
Change in EBIT*(1–t) (after-tax operating income) over 10 years $ 2,020.47
Marginal ROIC over 10 years 24.48%
ROIC at end of valuation 19.04%
Average WACC over the 10 years (compounded) 13.49%
Your calculated value as a percent of current price 76.90%

Inputs If calculated value is negative or looks too low

Revenue growth rate (input cell B3) Increase revenue growth rate
Last period EBIT as % of revenue (Input cell B14) Increase the target pre-tax operating margin
Sales to Capital Ratio or reinvestment (Input cell B15) Decrease the sales/capital ratio
Return on capital in perpetuity (B30 & B31) Increase relative to your cost of capital

15
 If calculated value looks too high
Decrease revenue growth rate
Decrease the target pre-tax operating margin
Increase the sales/capital ratio
If higher than your cost of capital, lower towards your cost of capital T

16
 Revenue Pre-Tax Pre-Tax After-Tax
Year Revenues Growth Operating Operating NOL Taxes Operating
Rate Margin Income Income
Traling 12 m $ 3,178.00 13.56% $ 431.00 $ - $ 107.75 $ 323.25
1 $ 3,654.70 15.00% 13.00% $ 475.11 $ - $ 118.78 $ 356.33
2 $ 4,385.64 20.00% 13.00% $ 570.13 $ - $ 142.53 $ 427.60
3 $ 5,262.77 20.00% 13.00% $ 684.16 $ - $ 171.04 $ 513.12
4 $ 6,315.32 20.00% 13.00% $ 820.99 $ - $ 205.25 $ 615.74
5 $ 7,578.39 20.00% 13.00% $ 985.19 $ - $ 246.30 $ 738.89
6 $ 9,094.06 20.00% 13.00% $ 1,182.23 $ - $ 295.56 $ 886.67
7 $10,912.88 20.00% 13.00% $ 1,418.67 $ - $ 354.67 $ 1,064.01
8 $13,095.45 20.00% 13.00% $ 1,702.41 $ - $ 425.60 $ 1,276.81
9 $15,714.54 20.00% 13.00% $ 2,042.89 $ - $ 510.72 $ 1,532.17
10 $18,857.45 20.00% 13.00% $ 2,451.47 $ - $ 612.87 $ 1,838.60

After-Tax
Year Operating Change in Sales to Reinvestm FCFF Capital Implied
Income Revenues Capital ent Invested ROC

Traling 12 m $ 323.25 $ 1,405.00 23.01%

1 $ 356.33 $ 476.70 1.90 $ 250.89 $ 105.44 $ 1,655.89 21.52%
2 $ 427.60 $ 730.94 1.90 $ 384.71 $ 42.89 $ 2,040.60 20.95%
3 $ 513.12 $ 877.13 1.90 $ 461.65 $ 51.47 $ 2,502.25 20.51%
4 $ 615.74 $ 1,052.55 1.90 $ 553.98 $ 61.77 $ 3,056.22 20.15%
5 $ 738.89 $ 1,263.06 1.90 $ 664.77 $ 74.12 $ 3,720.99 19.86%
6 $ 886.67 $ 1,515.68 1.90 $ 797.72 $ 88.95 $ 4,518.72 19.62%
7 $ 1,064.01 $ 1,818.81 1.90 $ 957.27 $ 106.74 $ 5,475.99 19.43%
8 $ 1,276.81 $ 2,182.58 1.90 $ 1,148.72 $ 128.08 $ 6,624.71 19.27%
9 $ 1,532.17 $ 2,619.09 1.90 $ 1,378.47 $ 153.70 $ 8,003.18 19.14%
10 $ 1,838.60 $ 3,142.91 1.90 $ 1,654.16 $ 184.44 $ 9,657.34 19.04%

Cost of Pre-Tax After-Tax Cost of

Year Beta Equity Cost of Tax Savings Cost of Debt Ratio Capital
Debt Debt
1 15.00%
2 15.00%
3 15.00%
4 15.00%
5 15.00%
6 14.00%
7 13.00%
8 12.00%
9 11.00%
10 10.00%

Cumulated
Year Cost of Cost of FCFF Terminal Present
Capital Value Value
Capital
1 15.00% 1.1500 $ 105.44 $ 91.69
2 15.00% 1.3225 $ 42.89 $ 32.43
3 15.00% 1.5209 $ 51.47 $ 33.84
4 15.00% 1.7490 $ 61.77 $ 35.32

17
 5 15.00% 2.0114 $ 74.12 $ 36.85
6 14.00% 2.2929 $ 88.95 $ 38.79
7 13.00% 2.5910 $ 106.74 $ 41.19
8 12.00% 2.9020 $ 128.08 $ 44.14
9 11.00% 3.2212 $ 153.70 $ 47.72
10 10.00% 3.5433 $ 184.44 $18,386.01 $ 5,241.03
Value of operating assets = $ 5,643.00

18
Valuing Options or Warrants
Enter the current stock price = $1,457.00
Enter the strike price on the option = $ -
Enter the expiration of the option = -
Enter the standard deviation in stock 45.00% (volatility)
Enter the annualized dividend yield 0.00%
Enter the treasury bond rate = 7.00%
Enter the number of warrants (option-
Enter the number of shares outstandi 4.50

Do not input any numbers below this line

VALUING WARRANTS WHEN THERE IS DILUTION
Stock Price= $1,457.00 # Warrants issued= -
Strike Price= $ - # Shares outstanding= 5
Adjusted S = #VALUE! T.Bond rate= 7.00%
Adjusted K = $ - Variance= 0.2025
Expiration (in years) = - Annualized dividend yield 0.00%
Div. Adj. interest rate= 7.00%

d1 = #VALUE!
N (d1) = #VALUE!

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

Value per option = #VALUE!

Value of all options outstanding = #VALUE!

19
You can use this spreadsheet to compute your cost of capital. You can either use the built-in data to compute key inputs (beta, equity risk premium, defaul
ERP data, you can update the ERP numbers to reflect a more current mature market premuum (since the spreadsheet uses the start of the year numbers).

Estimation of Current Cost of Capital

Inputs
Equity
Number of Shares outstanding = 4.50
Current Market Price per share = $ 1,457.00

Approach for estimating beta Single Business(Global)

If direct input, enter levered beta (or regression be 1.20
Unlevered beta = 0.77
Riskfree Rate = 7.00%
What approach do you want to use to input ERP? Operating countries
Direct input for ERP (if you choose "will input" 6.00%
Equity Risk Premium used in cost of equity = 6.85%

Debt
Book Value of Straight Debt = $ 973.00
Interest Expense on Debt = $ 67.00
Average Maturity = 0
Approach for estimating pre-tax cost of debt Actual rating
If direct input, input the pre-tax cost of debt 0.000%
If actual rating, input the rating A1/A+
If synethetic rating, input the type of company 1
Pre-tax Cost of Debt = 8.07%
Tax Rate = 25%

Book Value of Convertible Debt = 0

Interest Expense on Convertible = 0
Maturity of Convertible Bond = 0
Market Value of Convertible = 0

Debt value of operating leases = $ -

Preferred Stock
Number of Preferred Shares = 0
Current Market Price per Share= 70
Annual Dividend per Share = 5

Output
Estimating Market Value of Straight Debt = $ 973.00
Estimated Value of Straight Debt in Convertible = $ -
Value of Debt in Operating leases = $ -

20
Estimated Value of Equity in Convertible = $ -
Levered Beta for equity = 0.85

Equity Debt Preferred Stock Capital

Market Value $ 6,556.50 $ 973.00 $ - $7,529.50
Weight in Cost of Capital 87.08% 12.92% 0.00% 100.00%

Cost of Component 12.84% 6.05% 7.14% 11.96%

21
ey inputs (beta, equity risk premium, default spread) or enter them directly. If you choose to use the built in
dsheet uses the start of the year numbers).

Operating Countries ERP calculator

Country Revenues ERP Weight Weighted ERP
India 36480 6.85% 100.00% 6.85%
0.00% 0.00% 0.00% The last two rows in each of country/reg
0.00% 0.00% 0.00% tables is set aside for your input to pro
flexibility to enter some numbers direct
0.00% 0.00% 0.00% assume that you have a company that br
0.00% 0.00% 0.00% down into three countries and then puts t
0.00% 0.00% 0.00%
of the World". You can enter the "Rest of
of these two rows and enter an equity risk
0.00% 0.00% 0.00% rest of the world. The easiest way to do th
0.00% 0.00% 0.00% country equity risk premium worksheet an
for the three countries that you have dat
0.00% 0.00% 0.00%
compute the global weighted average ERP
0.00% 0.00% 0.00% countries. With the regional worksheet, y
0.00% 0.00% 0.00% two rows to enter the data for an individua
the domestic country) that might be brok
Rest of the World 0 7.39% 0.00% 0.00%
rest of the revenues are broken down by
0.00% 0.00% look up the ERP for the country in the
Total 36480 100.00% 6.85% worksheet.
Operating Regions ERP calculator
Region Revenues ERP Weight Weighted ERP
Africa 1113 9.66% 1.31% 0.1269%
Asia 10662 5.75% 12.57% 0.7227%
Australia & New Zealan 2006 4.72% 2.37% 0.1117%
Caribbean 0 10.03% 0.00% 0.0000%
Central and South Amer 1015 8.71% 1.20% 0.1043%
Eastern Europe & Russi 0 6.80% 0.00% 0.0000%
Middle East 9272 6.25% 10.94% 0.6835%
North America 44700 4.72% 52.72% 2.4884%
Western Europe 10336 5.56% 12.19% 0.6778%
0.00% 0.0000%
China 5684 6.38% 6.70% 0.4277%
Total 84788 100.00% 5.3428%

Multi Business (US Industry Averages)

Business Revenues EV/Sales Estimated VaUnlevered Beta
Computers/Peripherals 5.1406 $ - 1.1394
Entertainment 6.8090 $ - 0.8388
Computer Services 1.4323 $ - 0.9402
Telecom. Equipment 3.5642 $ - 0.8322
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000

22
 0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
Company $ - $ - #DIV/0!

Multi Business (Global Industry Averages)

Business Revenues EV/Sales Estimated VUnlevered Beta
Beverage (Alcoholic) $ 35,538.00 5.8637 ### 0.7342
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
0.0000 $ - 0.0000
Company $ 35,538.00 ### 0.7342

23
two rows in each of country/region risk premium
is set aside for your input to provide you with
ty to enter some numbers directly. For instance,
hat you have a company that breaks its revenues
o three countries and then puts the rest into "Rest
rld". You can enter the "Rest of the World" in one
wo rows and enter an equity risk premium for the
world. The easiest way to do that is to go into the
uity risk premium worksheet and change the GDP
hree countries that you have data for to zero and
he global weighted average ERP for the remaining
With the regional worksheet, you can use the last
to enter the data for an individual country (usually
stic country) that might be broken out though the
he revenues are broken down by region. You can
up the ERP for the country in the country ERP
worksheet.

24
25
 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 = $ 3,219.00 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 3269.00 ! Year -1 is the year prior to the current year
-2 3179.00 ! Year -2 is the two years prior to the current year
-3 4626.00
-4 3331.00
-5 3047.00
0
0
0
0
0

Output
Year R&D Expense Unamortized portion Amortization this year
Current 3219.00 1.00 3219.00
-1 3269.00 0.80 2615.20 $ 653.80
-2 3179.00 0.60 1907.40 $ 635.80
-3 4626.00 0.40 1850.40 $ 925.20
-4 3331.00 0.20 666.20 $ 666.20
-5 3047.00 0.00 0.00 $ 609.40
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
0 0.00 0.00 0.00 $ -
Value of Research Asset = $ 10,258.20 $ 3,490.40

Amortization of asset for current year = $ 3,490.40

Adjustment to Operating Income = -$ 271.40 ! A positive number indicates an increase in operating income (add to reported EBIT)
Tax Effect of R&D Expensing ($68)

26
perating income, net

d to reported EBIT)

27
 Operating Lease Converter
The yellow cells are input cells. Please enter them.
Inputs
Operating lease expense in current year = $ 295.00
Operating Lease Commitments (From footnote to financials)
Year Commitment! Year 1 is next year, ….
1 287.0
2 235.0
3 194.0
4 151.0
5 98.0
6 and beyond 605

Output
Pre-tax Cost of Debt = 8.07% ! If you do not have a cost of debt, use the synthetic rating estimator

Number of years embedded in yr 6 estim 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 $ 287.00 $ 265.57
2 $ 235.00 $ 201.21
3 $ 194.00 $ 153.70
4 $ 151.00 $ 110.70
5 $ 98.00 $ 66.48
6 and beyond $ 201.67 $ 352.12 ! Commitment beyond year 6 converted into an annuity for ten years
Debt Value of leases = $ 1,149.79

Restated Financials
Depreciation on Operating Lease Asset = $ 143.72 ! I use straight line depreciation
Adjustment to Operating Earnings = $151.28 ! Add this amount to pre-tax operating income
Adjustment to Total Debt outstanding = $ 1,149.79 ! Add this amount to debt
Adjustment to Depreciation = $ 143.72

28
29
Mature Market ERP + 4.72% Updated January 1, 2021

Country Moody's ratingAdj. Default SpreEquity Risk Premium

Country Risk Premium
Abu Dhabi Aa2 0.44% 5.20% 0.48%
Albania B1 3.98% 9.08% 4.36%
Algeria NR 7.96% 13.44% 8.72%
Andorra (Principality of) Caa1 6.63% 11.98% 7.26%
Angola Caa1 6.63% 11.98% 7.26%
Argentina Ca 10.60% 16.34% 11.62%
Armenia Ba3 3.18% 8.21% 3.49%
Aruba Baa1 1.41% 6.27% 1.55%
Australia Aaa 0.00% 4.72% 0.00%
Austria Aa1 0.35% 5.10% 0.38%
Azerbaijan Ba2 2.65% 7.63% 2.91%
Bahamas Ba2 2.65% 7.63% 2.91%
Bahrain B2 4.86% 10.05% 5.33%
Bangladesh Ba3 3.18% 8.21% 3.49%
Barbados Caa1 6.63% 11.98% 7.26%
Belarus B3 5.75% 11.02% 6.30%
Belgium Aa3 0.53% 5.31% 0.59%
Belize Caa3 8.83% 14.40% 9.68%
Benin B2 4.86% 10.05% 5.33%
Bermuda A2 0.75% 5.54% 0.82%
Bolivia B2 4.86% 10.05% 5.33%
Bosnia and Herzegovina B3 5.75% 11.02% 6.30%
Botswana A2 0.75% 5.54% 0.82%
Brazil Ba2 2.65% 7.63% 2.91%
British Virgin Islands NR 3.02% 8.03% 3.31%
Brunei NR 0.75% 5.54% 0.82%
Bulgaria Baa1 1.41% 6.27% 1.55%
Burkina Faso B2 4.86% 10.05% 5.33%
Cambodia B2 4.86% 10.05% 5.33%
Cameroon B2 4.86% 10.05% 5.33%
Canada Aaa 0.00% 4.72% 0.00%
Cape Verde B2 4.86% 10.05% 5.33%
Cayman Islands Aa3 0.53% 5.31% 0.59%
Chile A1 0.62% 5.40% 0.68%
China A1 0.62% 5.40% 0.68%
Colombia Baa2 1.68% 6.56% 1.84%

30
Congo (Democratic Republ Caa1 6.63% 11.98% 7.26%
Congo (Republic of) Caa2 7.96% 13.44% 8.72%
Cook Islands B1 3.98% 9.08% 4.36%
Costa Rica B2 4.86% 10.05% 5.33%
Croatia Ba1 2.21% 7.14% 2.42%
Cuba Caa2 7.96% 13.44% 8.72%
Curaçao A3 1.06% 5.88% 1.16%
Cyprus Ba2 2.65% 7.63% 2.91%
Czech Republic Aa3 0.53% 5.31% 0.59%
Denmark Aaa 0.00% 4.72% 0.00%
Dominican Republic Ba3 3.18% 8.21% 3.49%
Ecuador Caa3 8.83% 14.40% 9.68%
Egypt B2 4.86% 10.05% 5.33%
El Salvador B3 5.75% 11.02% 6.30%
Estonia A1 0.62% 5.40% 0.68%
Ethiopia B2 4.86% 10.05% 5.33%
Fiji Ba3 3.18% 8.21% 3.49%
Finland Aa1 0.35% 5.10% 0.38%
France Aa2 0.44% 5.20% 0.48%
Gabon Caa1 6.63% 11.98% 7.26%
Gambia NR 5.75% 11.02% 6.30%
Georgia Ba2 2.65% 7.63% 2.91%
Germany Aaa 0.00% 4.72% 0.00%
Ghana B3 5.75% 11.02% 6.30%
Greece Ba3 3.18% 8.21% 3.49%
Guatemala Ba1 2.21% 7.14% 2.42%
Guernsey Aaa 0.00% 4.72% 0.00%
Guinea NR 10.60% 16.34% 11.62%
Guinea-Bissau NR 6.63% 11.98% 7.26%
Guyana NR 4.86% 10.05% 5.33%
Haiti NR 10.60% 16.34% 11.62%
Honduras B1 3.98% 9.08% 4.36%
Hong Kong Aa3 0.53% 5.31% 0.59%
Hungary Baa3 1.95% 6.85% 2.13%
Iceland A2 0.75% 5.54% 0.82%
India Baa3 1.95% 6.85% 2.13%
Indonesia Baa2 1.68% 6.56% 1.84%
Iran NR 7.96% 13.44% 8.72%
Iraq Caa1 6.63% 11.98% 7.26%
Ireland A2 0.75% 5.54% 0.82%

31
Isle of Man Aa3 0.53% 5.31% 0.59%
Israel A1 0.62% 5.40% 0.68%
Italy Baa3 1.95% 6.85% 2.13%
Ivory Coast Ba3 3.18% 8.21% 3.49%
Jamaica B2 4.86% 10.05% 5.33%
Japan A1 0.62% 5.40% 0.68%
Jersey Aaa 0.00% 4.72% 0.00%
Jordan B1 3.98% 9.08% 4.36%
Kazakhstan Baa3 1.95% 6.85% 2.13%
Kenya B2 4.86% 10.05% 5.33%
Korea, D.P.R. NR 10.60% 16.34% 11.62%
Kuwait A1 0.62% 5.40% 0.68%
Kyrgyzstan B2 4.86% 10.05% 5.33%
Laos Caa2 1.06% 5.88% 1.16%
Latvia A3 1.06% 5.88% 1.16%
Lebanon C 17.50% 23.90% 19.18%
Liberia NR 10.60% 16.34% 11.62%
Libya NR 7.96% 13.44% 8.72%
Liechtenstein Aaa 0.00% 4.72% 0.00%
Lithuania A3 1.06% 5.88% 1.16%
Luxembourg Aaa 0.00% 4.72% 0.00%
Macao Aa3 0.53% 5.31% 0.59%
Macedonia Ba3 3.18% 8.21% 3.49%
Madagascar NR 5.75% 11.02% 6.30%
Malawi NR 7.96% 13.44% 8.72%
Malaysia A3 1.06% 5.88% 1.16%
Mali Caa1 6.63% 11.98% 7.26%
Malta A2 0.75% 5.54% 0.82%
Mauritius Baa1 1.41% 6.27% 1.55%
Mexico Baa1 1.41% 6.27% 1.55%
Moldova B3 5.75% 11.02% 6.30%
Mongolia B3 5.75% 11.02% 6.30%
Montenegro B1 3.98% 9.08% 4.36%
Montserrat Baa3 1.95% 6.85% 2.13%
Morocco Ba1 2.21% 7.14% 2.42%
Mozambique Caa2 7.96% 13.44% 8.72%
Myanmar NR 5.75% 11.02% 6.30%
Namibia Ba3 3.18% 8.21% 3.49%
Netherlands Aaa 0.00% 4.72% 0.00%
New Zealand Aaa 0.00% 4.72% 0.00%

32
Nicaragua B3 5.75% 11.02% 6.30%
Niger B3 5.75% 11.02% 6.30%
Nigeria B2 4.86% 10.05% 5.33%
Norway Aaa 0.00% 4.72% 0.00%
Oman Ba3 3.18% 8.21% 3.49%
Pakistan B3 5.75% 11.02% 6.30%
Panama Baa1 1.41% 6.27% 1.55%
Papua New Guinea B2 4.86% 10.05% 5.33%
Paraguay Ba1 2.21% 7.14% 2.42%
Peru A3 1.06% 5.88% 1.16%
Philippines Baa2 1.68% 6.56% 1.84%
Poland A2 0.75% 5.54% 0.82%
Portugal Baa3 1.95% 6.85% 2.13%
Qatar Aa3 0.53% 5.31% 0.59%
Ras Al Khaimah (Emirate Aaa 0.00% 4.72% 0.00%
Romania Baa3 1.95% 6.85% 2.13%
Russia Baa3 1.95% 6.85% 2.13%
Rwanda B2 4.86% 10.05% 5.33%
Saint Lucia NR 3.02% 8.03% 3.31%
Saudi Arabia A1 0.62% 5.40% 0.68%
Senegal Ba3 3.18% 8.21% 3.49%
Serbia Ba3 3.18% 8.21% 3.49%
Sharjah Baa2 1.68% 6.56% 1.84%
Sierra Leone NR 7.96% 13.44% 8.72%
Singapore Aaa 0.00% 4.72% 0.00%
Slovakia A2 0.75% 5.54% 0.82%
Slovenia A3 1.06% 5.88% 1.16%
Solomon Islands B3 5.75% 11.02% 6.30%
Somalia NR 10.60% 16.34% 11.62%
South Africa Ba2 2.65% 7.63% 2.91%
South Korea Aa2 0.44% 5.20% 0.48%
Spain Baa1 1.41% 6.27% 1.55%
Sri Lanka Caa1 6.63% 11.98% 7.26%
St. Maarten Baa3 1.95% 6.85% 2.13%
St. Vincent & the Grenadi B3 5.75% 11.02% 6.30%
Sudan NR 17.50% 23.90% 19.18%
Suriname Caa3 8.83% 14.40% 9.68%
Swaziland B3 5.75% 11.02% 6.30%
Sweden Aaa 0.00% 4.72% 0.00%
Switzerland Aaa 0.00% 4.72% 0.00%

33
Syria NR 17.50% 23.90% 19.18%
Taiwan Aa3 0.53% 5.31% 0.59%
Tajikistan B3 5.75% 11.02% 6.30%
Tanzania B2 4.86% 10.05% 5.33%
Thailand Baa1 1.41% 6.27% 1.55%
Togo B3 5.75% 11.02% 6.30%
Trinidad and Tobago Ba1 2.21% 7.14% 2.42%
Tunisia B2 4.86% 10.05% 5.33%
Turkey B2 4.86% 10.05% 5.33%
Turks and Caicos Islands Baa1 1.41% 6.27% 1.55%
Uganda B2 4.86% 10.05% 5.33%
Ukraine B3 5.75% 11.02% 6.30%
United Arab Emirates Aa2 0.44% 5.20% 0.48%
United Kingdom Aa3 0.53% 5.31% 0.59%
United States Aaa 0.00% 4.72% 0.00%
Uruguay B1 3.98% 9.08% 4.36%
Venezuela C 17.50% 23.90% 19.18%
Vietnam Ba3 3.18% 8.21% 3.49%
Yemen NR 17.50% 23.90% 19.18%
Zambia Ca 10.60% 16.34% 11.62%
Zimbabwe NR 10.60% 16.34% 11.62%

ERP Default Spread Tax rate CRP

Africa 9.66% 4.51% 28.31% 4.94%
Asia 5.75% 0.94% 25.70% 1.03%
Australia & New Zealand 4.72% 0.00% 29.74% 0.00%
Caribbean 10.03% 4.85% 24.25% 5.31%
Central and South America 8.71% 3.64% 31.04% 3.99%
Eastern Europe & Russia 6.80% 1.90% 18.31% 2.08%
Middle East 6.25% 1.40% 32.96% 1.53%
North America 4.72% 0.00% 26.96% 0.00%
Western Europe 5.56% 0.77% 24.41% 0.84%

Global 5.76% 0.95% 26.13% 1.04%

34
Corporate Tax Rate
55.00%
15.00%
26.00%
10.00%
30.00%
30.00%
18.00%
25.00%
30.00%
25.00%
20.00%
0.00%
0.00%
25.00%
5.50%
18.00%
29.00%
28.25%
30.00%
0.00%
25.00%
10.00%
22.00%
34.00%
16.98%
0.00%
10.00%
28.00%
20.00%
33.00%
26.50%
0.00%
0.00%
27.00%
25.00%
32.00%

35
35.00%
30.00%
28.43%
30.00%
18.00%
27.36%
22.00%
12.50%
19.00%
22.00%
27.00%
25.00%
22.50%
30.00%
20.00%
30.00%
20.00%
20.00%
28.00%
30.00%
31.00%
15.00%
30.00%
25.00%
24.00%
25.00%
0.00%
28.25%
28.25%
27.36%
27.36%
25.00%
16.50%
9.00%
20.00%
30.00%
15.00%
21.13%
15.00%
12.50%

36
 0.00%
23.00%
24.00%
25.00%
25.00%
30.62%
0.00%
20.00%
20.00%
30.00%
21.13%
15.00%
10.00%
21.13%
20.00%
17.00%
28.25%
20.00%
12.50%
15.00%
24.94%
12.00%
10.00%
20.00%
30.00%
24.00%
28.25%
35.00%
15.00%
30.00%
12.00%
25.00%
9.00%
21.13%
31.00%
32.00%
25.00%
32.00%
25.00%
28.00%

37
30.00%
28.25%
30.00%
22.00%
15.00%
35.00%
25.00%
30.00%
10.00%
29.50%
30.00%
19.00%
21.00%
10.00%
0.00%
16.00%
20.00%
30.00%
16.98%
20.00%
30.00%
15.00%
0.00%
30.00%
17.00%
21.00%
19.00%
30.00%
28.25%
28.00%
25.00%
25.00%
28.00%
27.36%
27.36%
35.00%
36.00%
27.50%
21.40%
14.84%

38
28.00%
20.00%
19.12%
30.00%
20.00%
28.25%
30.00%
25.00%
22.00%
0.00%
30.00%
18.00%
55.00%
19.00%
27.00%
25.00%
34.00%
20.00%
28.25%
35.00%
24.00%

39
 Inputs for synthetic rating estimation
Please read the special cases worksheet (see below) before you use this spreadsheet.
Before you use this spreadsheet, make sure that the iteration box (under calculation options in excel) is checked.
Enter the type of firm = 1
Enter current Earnings before interest and taxes (EBIT) = $ 431.00 (Add back only long term interest expense for financial firms)
Enter current interest expenses = $ 67.00 (Use only long term interest expense for financial firms)
Enter long term risk free rate = 7.00%
Output
Interest coverage ratio = 6.43
Estimated Bond Rating = A1/A+ Note: If you get REF! All over the place, set the operating lease commitment question
Estimated Company Default Spread 1.07% to No, and then reset it to Yes. It should work.
Estimated County Default Spread (if 1.95%
Estimated Cost of Debt = 10.02%

If you want to update the spreads listed below, please visit http://www.bondsonline.com
For large manufacturing firms
If interest coverage ratio is
> ≤ to Rating is Spread is
-100000 0.199999 D2/D 17.44%
0.2 0.649999 C2/C 13.09%
0.65 0.799999 Ca2/CC 9.97%
0.8 1.249999 Caa/CCC 9.46%
1.25 1.499999 B3/B- 5.94%
1.5 1.749999 B2/B 4.86%
1.75 1.999999 B1/B+ 4.05%
2 2.2499999 Ba2/BB 2.77%
2.25 2.49999 Ba1/BB+ 2.31%
2.5 2.999999 Baa2/BBB 1.71%
3 4.249999 A3/A- 1.33%
4.25 5.499999 A2/A 1.18%
5.5 6.499999 A1/A+ 1.07%
6.5 8.499999 Aa2/AA 0.85%
8.50 100000 Aaa/AAA 0.69%

For smaller and riskier firms

If interest coverage ratio is
greater than ≤ to Rating is Spread is
-100000 0.499999 D2/D 17.44% Rating isSpread in 2021
0.5 0.799999 C2/C 13.09% A1/A+ 1.07%
0.8 1.249999 Ca2/CC 9.97% A2/A 1.18%
1.25 1.499999 Caa/CCC 9.46% A3/A- 1.33%
1.5 1.999999 B3/B- 5.94% Aa2/AA 0.85%
2 2.499999 B2/B 4.86% Aaa/AAA 0.69%
2.5 2.999999 B1/B+ 4.05% B1/B+ 4.05%

40
 3 3.499999 Ba2/BB 2.77% B2/B 4.86%
3.5 3.9999999 Ba1/BB+ 2.31% B3/B- 5.94%
4 4.499999 Baa2/BBB 1.71% Ba1/BB+ 2.31%
4.5 5.999999 A3/A- 1.33% Ba2/BB 2.77%
6 7.499999 A2/A 1.18% Baa2/BBB 1.71%
7.5 9.499999 A1/A+ 1.07% C2/C 13.09%
9.5 12.499999 Aa2/AA 0.85% Ca2/CC 9.97%
12.5 100000 Aaa/AAA 0.69% Caa/CCC 9.46%
D2/D 17.44%

41
readsheet.
ions in excel) is checked.

expense for financial firms)

se for financial firms)

rating lease commitment question in cell F5

42
43
Industry Name Annual
NumberAverage
of firms
Revenue
Pre-tax Operating
growth - Last
Margin
5 years
(Unadjusted)
After-taxAverage
ROC effective tax
Unlevered
rate Beta Equity (Levered) Beta
Advertising 61 8.31% 9.98% 51.51% 21.47% 0.77 1.08
Aerospace/Defense 72 5.28% 7.56% 19.11% 24.62% 0.91 1.07
Air Transport 17 -6.82% -18.99% -16.07% 88.76% 0.92 1.61
Apparel 51 -3.56% 5.49% 7.54% 31.41% 0.94 1.10
Auto & Truck 19 12.19% 1.93% 1.17% 28.48% 1.05 1.28
Auto Parts 52 4.02% 4.01% 6.46% 32.65% 1.09 1.20
Bank (Money Center 7 -0.78% 0.00% -0.01% 14.04% 0.60 0.83
Banks (Regional) 598 8.82% 0.00% -0.08% 18.95% 0.60 0.64
Beverage (Alcoholic) 23 14.39% 23.87% 14.43% 18.36% 0.68 0.78
Beverage (Soft) 41 27.08% 19.98% 26.74% 18.60% 0.71 0.79
Broadcasting 29 5.80% 19.30% 16.92% 23.16% 0.65 1.13
Brokerage & Investm 39 9.51% 0.42% 0.00% 22.18% 0.58 1.13
Building Materials 42 7.47% 10.80% 24.17% 26.26% 0.97 1.09
Business & Consume 169 7.53% 8.88% 18.33% 23.84% 0.83 0.93
Cable TV 13 6.70% 18.15% 11.09% 22.33% 0.70 0.94
Chemical (Basic) 48 22.51% 7.21% 9.53% 9.12% 0.76 0.99
Chemical (Diversified 5 28.99% 5.81% 5.93% 5.70% 1.04 1.36
Chemical (Specialty) 97 5.94% 12.07% 11.84% 18.17% 0.82 0.93
Coal & Related Ener 29 -14.18% -8.70% -7.50% 0.00% 0.56 0.83
Computer Services 116 9.40% 7.58% 22.98% 12.94% 0.94 1.12
Computers/Periphera 52 4.06% 15.55% 27.82% 14.17% 1.14 1.18
Construction Supplie 46 3.50% 9.41% 9.93% 22.99% 0.87 1.02
Diversified 29 0.51% 18.06% 13.44% 20.76% 0.89 1.02
Drugs (Biotechnolog 547 32.64% 9.54% 6.22% 11.95% 0.85 0.89
Drugs (Pharmaceutic 287 32.66% 24.02% 20.31% 16.30% 0.84 0.91
Education 38 1.01% 9.26% 9.89% 16.65% 1.07 1.15
Electrical Equipment 122 4.21% 12.60% 22.12% 17.21% 1.00 1.06
Electronics (Consume 22 1.69% 1.99% 4.66% 11.28% 1.01 0.96
Electronics (General) 157 2.88% 7.47% 11.08% 19.85% 0.86 0.89
Engineering/Construc 61 3.57% 4.10% 14.85% 21.89% 0.96 1.06
Entertainment 118 6.35% 7.44% 7.96% 6.73% 0.84 0.88
Environmental & Was 86 7.88% 11.92% 19.19% 20.68% 0.82 0.95
Farming/Agriculture 32 -0.77% 6.55% 9.12% 21.87% 0.69 0.87
Financial Svcs. (Non 235 9.08% 12.32% 0.40% 19.21% 0.11 0.80
Food Processing 101 6.85% 12.80% 17.53% 25.02% 0.53 0.64
Food Wholesalers 18 12.01% 1.56% 8.89% 3.87% 0.81 1.03
Furn/Home Furnishi 40 5.08% 7.98% 14.59% 18.92% 0.78 0.88
Green & Renewable 25 -0.09% 26.12% 6.89% 43.03% 0.68 0.98
Healthcare Products 265 13.90% 14.24% 13.22% 13.64% 0.80 0.83
Healthcare Support 129 17.54% 4.97% 35.27% 24.05% 0.74 0.85

44
Heathcare Informati 139 15.02% 13.14% 16.35% 16.43% 0.75 0.79
Homebuilding 30 13.52% 11.81% 13.58% 20.30% 1.33 1.46
Hospitals/Healthcare 32 4.24% 10.20% 13.18% 20.32% 0.81 1.28
Hotel/Gaming 66 -0.38% -10.34% -5.24% 23.34% 1.19 1.56
Household Products 140 14.18% 18.20% 34.99% 20.24% 0.68 0.73
Information Services 77 12.19% 23.40% 24.34% 20.35% 0.97 1.01
Insurance (General) 21 5.51% 12.83% 9.26% 19.30% 0.56 0.68
Insurance (Life) 26 3.35% 8.48% 4.33% 13.00% 0.64 0.98
Insurance (Prop/Cas. 55 3.09% 10.85% 10.74% 19.46% 0.58 0.64
Investments & Asse 348 0.65% 16.95% 7.24% 18.52% 0.78 0.93
Machinery 125 3.44% 13.07% 21.42% 21.03% 0.96 1.05
Metals & Mining 86 4.02% 11.47% 10.75% 51.98% 0.82 0.90
Office Equipment & 22 0.78% 7.50% 12.84% 24.00% 0.83 1.00
Oil/Gas (Integrated) 3 -1.24% -4.27% -2.33% 25.63% 0.99 1.26
Oil/Gas (Production 278 -1.17% -21.40% -6.33% 28.59% 0.81 1.18
Oil/Gas Distribution 57 10.74% 17.43% 9.01% 8.74% 0.60 1.16
Oilfield Svcs/Equip. 135 -6.86% 0.47% 1.29% 4.37% 0.84 1.21
Packaging & Contain 26 2.52% 9.66% 12.25% 25.38% 0.68 0.92
Paper/Forest Produc 15 0.51% 5.84% 8.38% 21.09% 0.96 1.14
Power 55 1.01% 19.82% 6.80% 11.02% 0.43 0.67
Precious Metals 93 3.17% 21.48% 9.87% 18.13% 0.75 0.76
Publishing & Newspa 29 0.31% 5.64% 10.48% 23.79% 1.11 1.41
R.E.I.T. 238 6.81% 23.23% 2.05% 2.47% 0.79 1.21
Real Estate (Develo 25 -19.92% -3.64% -1.41% 27.32% 0.56 0.85
Real Estate (General/ 11 9.20% 6.93% 1.96% 18.50% 0.76 0.78
Real Estate (Operati 61 2.10% 4.13% 7.97% 10.49% 0.76 0.92
Recreation 69 2.62% 6.81% 8.65% 22.56% 0.77 0.87
Reinsurance 2 9.11% 4.27% 3.74% 25.14% 1.13 1.16
Restaurant/Dining 79 0.84% 11.36% 7.24% 18.69% 1.11 1.34
Retail (Automotive) 30 3.20% 6.43% 10.10% 23.18% 0.99 1.30
Retail (Building Supp 15 6.42% 12.79% 37.47% 23.94% 1.44 1.54
Retail (Distributors) 85 4.67% 7.70% 11.67% 25.02% 0.75 0.97
Retail (General) 17 2.41% 4.63% 14.67% 24.42% 0.82 0.90
Retail (Grocery and 14 6.28% 3.48% 9.63% 23.43% 0.15 0.24
Retail (Online) 75 9.28% 5.74% 11.04% 16.13% 1.14 1.16
Retail (Special Lines 85 5.57% 2.89% 5.29% 24.55% 1.04 1.28
Rubber& Tires 3 -4.21% -0.50% 0.01% 15.90% 0.55 1.09
Semiconductor 70 3.77% 24.09% 17.39% 10.77% 0.96 1.00
Semiconductor Equi 40 8.49% 22.21% 27.89% 12.83% 1.07 1.07
Shipbuilding & Marin 11 3.10% 5.11% 3.74% 24.39% 0.74 1.04
Shoe 11 -0.11% 9.22% 20.90% 13.44% 0.98 0.98
Software (Entertainm 101 -0.41% 20.61% 14.73% 12.02% 0.96 0.96
Software (Internet) 36 19.34% 5.06% 6.66% 5.97% 0.75 0.77
Software (System & A 388 18.93% 23.30% 22.28% 14.14% 0.89 0.91
Steel 32 0.47% 3.55% 5.81% 24.53% 0.78 0.95
Telecom (Wireless) 16 6.53% 12.48% 10.22% 22.65% 0.39 0.53

45
Telecom. Equipment 96 31.65% 18.69% 21.80% 17.90% 0.83 0.87
Telecom. Services 58 7.79% 19.46% 13.78% 16.71% 0.42 0.66
Tobacco 15 52.82% 42.80% 45.33% 34.67% 0.61 0.72
Transportation 21 9.42% 6.28% 13.32% 22.37% 0.79 0.91
Transportation (Railr 6 -1.47% 39.13% 12.97% 23.12% 0.74 0.84
Trucking 35 3.06% -2.88% -4.04% 21.68% 0.95 1.11
Utility (General) 16 2.27% 20.40% 6.79% 11.72% 0.49 0.74
Utility (Water) 17 12.74% 30.46% 8.05% 18.75% 0.57 0.73
Total Market 7582 8.86% 9.62% 6.05% 17.76% 0.75 0.94
Total Market (without 6253 9.40% 9.93% 10.58% 17.74% 0.86 0.98

46
Cost ofStd
equity
deviation in stock
Pre-tax
prices
cost of
Market
debt Debt/Capital
Cost of capitalSales/Capital EV/Sales EV/EBITDA EV/EBIT Price/Book
6.01% 57.74% 3.00% 43.66% 4.34% 5.17 1.83 8.86 16.08 5.73
5.96% 34.89% 2.58% 24.84% 4.95% 2.61 2.01 12.15 20.31 4.44
8.52% 46.15% 3.00% 61.74% 4.61% 0.88 1.97 34.43 NA 3.22
6.11% 47.84% 3.00% 28.26% 5.00% 1.34 2.03 14.69 33.98 4.11
6.98% 45.24% 3.00% 27.88% 5.65% 0.74 3.58 45.73 177.76 7.58
6.61% 43.16% 3.00% 19.60% 5.74% 1.82 1.60 10.07 23.28 4.78
4.84% 21.59% 1.92% 68.37% 2.49% 0.14 5.32 NA NA 1.00
3.97% 19.48% 1.92% 37.98% 3.00% 0.24 4.47 NA NA 1.08
4.60% 37.01% 2.58% 18.97% 4.09% 0.64 5.30 17.61 22.21 3.45
4.66% 49.70% 3.00% 17.76% 4.22% 1.37 5.08 20.74 25.22 8.50
6.26% 45.56% 3.00% 54.90% 4.02% 0.98 2.08 7.84 10.93 1.58
6.27% 35.90% 2.58% 68.64% 3.26% 0.22 4.93 NA NA 1.52
6.07% 33.99% 2.58% 20.82% 5.20% 2.59 2.00 13.27 18.17 4.98
5.30% 45.65% 3.00% 19.82% 4.69% 2.16 2.97 17.40 31.21 5.85
5.38% 32.02% 2.58% 34.19% 4.18% 0.76 3.85 11.11 20.20 3.13
5.62% 48.06% 3.00% 35.53% 4.40% 1.35 1.52 10.01 20.70 2.96
7.36% 36.16% 2.58% 36.75% 5.35% 1.03 1.72 13.38 29.25 2.18
5.30% 38.54% 2.58% 20.23% 4.61% 1.04 3.27 15.56 26.53 3.10
4.84% 42.27% 3.00% 48.62% 3.55% 0.87 1.08 5.79 NA 1.36
6.20% 45.89% 3.00% 28.44% 5.06% 3.03 1.43 10.70 17.96 4.00
6.52% 42.87% 3.00% 8.55% 6.15% 1.81 5.14 24.76 32.89 22.90
5.75% 33.39% 2.58% 25.80% 4.75% 1.21 2.27 15.23 23.47 3.82
5.77% 29.94% 2.58% 22.92% 4.88% 0.79 2.80 11.37 15.12 1.86
5.11% 50.10% 3.00% 13.42% 4.72% 0.48 8.73 14.40 57.63 7.18
5.22% 55.45% 3.00% 15.38% 4.75% 0.81 5.55 14.32 22.27 5.04
6.35% 55.73% 3.00% 19.57% 5.53% 1.17 2.81 14.43 31.21 2.92
5.93% 55.12% 3.00% 13.31% 5.43% 1.80 3.66 15.96 22.83 6.28
5.44% 54.91% 3.00% 8.68% 5.16% 1.82 1.32 18.96 59.52 4.26
5.11% 43.87% 3.00% 11.88% 4.76% 1.49 2.54 17.52 32.12 4.14
5.92% 42.04% 3.00% 22.02% 5.10% 3.80 0.90 10.85 19.80 2.32
5.10% 68.06% 4.09% 13.19% 4.82% 1.07 6.81 36.26 89.24 5.49
5.43% 50.43% 3.00% 20.13% 4.78% 1.63 3.34 14.98 27.42 4.68
5.06% 45.30% 3.00% 31.06% 4.17% 1.48 1.35 14.71 20.13 3.21
4.69% 27.74% 2.58% 89.96% 2.17% 0.04 31.49 NA NA 2.23
3.93% 32.56% 2.58% 24.82% 3.42% 1.48 2.19 12.88 16.83 2.57
5.81% 58.03% 3.00% 35.90% 4.51% 5.82 0.54 15.87 35.36 5.02
5.10% 40.52% 3.00% 25.41% 4.36% 1.88 1.31 9.73 15.82 2.68
5.56% 56.04% 3.00% 39.05% 4.25% 0.27 13.15 22.94 50.76 1.68
4.86% 46.19% 3.00% 9.66% 4.61% 0.96 7.42 28.53 49.25 5.77
4.95% 44.49% 3.00% 24.07% 4.28% 7.72 0.68 10.36 13.63 2.91

47
4.66% 42.45% 3.00% 10.79% 4.40% 1.24 7.33 29.32 50.49 7.12
7.82% 36.56% 2.58% 24.66% 6.35% 1.37 1.21 9.54 10.23 1.75
6.99% 49.21% 3.00% 49.85% 4.59% 1.51 1.54 8.97 16.18 5.78
8.32% 43.69% 3.00% 36.40% 6.09% 0.38 8.08 38.32 NA 6.10
4.38% 54.66% 3.00% 12.93% 4.09% 2.02 4.09 17.60 22.33 9.06
5.70% 42.37% 3.00% 8.56% 5.40% 1.14 10.54 31.70 44.48 8.38
4.15% 30.12% 2.58% 28.98% 3.49% 0.82 1.97 9.99 15.01 1.45
5.54% 30.68% 2.58% 54.53% 3.55% 0.60 1.31 12.51 15.00 0.59
3.97% 22.93% 1.92% 20.04% 3.45% 1.11 1.44 9.69 12.33 1.54
5.32% 28.85% 2.58% 31.14% 4.25% 0.45 5.87 26.17 30.60 2.05
5.88% 34.28% 2.58% 16.42% 5.22% 1.78 3.06 16.70 23.08 4.55
5.20% 67.84% 4.09% 19.26% 4.77% 0.97 3.00 13.90 25.92 3.29
5.65% 31.11% 2.58% 32.35% 4.43% 1.97 1.12 8.82 14.77 2.60
6.88% 26.39% 2.58% 30.60% 5.35% 0.64 1.54 10.77 NA 1.05
6.52% 56.28% 3.00% 41.89% 4.70% 0.31 2.91 6.39 NA 1.21
6.39% 40.78% 3.00% 56.46% 4.02% 0.54 2.42 9.12 13.95 1.24
6.63% 50.27% 3.00% 43.64% 4.69% 1.88 0.73 11.35 95.78 1.30
5.28% 29.22% 2.58% 35.53% 4.07% 1.47 1.72 10.34 17.48 3.76
6.30% 35.67% 2.58% 27.29% 5.10% 1.48 0.94 7.71 15.65 1.61
4.08% 19.86% 1.92% 43.85% 2.90% 0.38 4.37 11.89 22.26 1.90
4.50% 67.76% 4.09% 11.26% 4.33% 0.46 4.82 10.30 21.45 2.19
7.58% 37.47% 2.58% 35.07% 5.58% 2.09 1.17 9.77 21.76 2.07
6.62% 32.40% 2.58% 43.42% 4.56% 0.11 12.85 22.72 61.43 2.11
4.94% 60.70% 3.00% 48.64% 3.60% 0.22 6.00 47.57 NA 1.19
4.62% 20.99% 1.92% 22.61% 3.89% 0.33 6.81 25.25 78.40 1.19
5.28% 34.72% 2.58% 28.97% 4.29% 2.05 1.56 14.82 32.31 3.21
5.02% 56.40% 3.00% 19.68% 4.46% 1.42 3.73 22.59 52.06 10.37
6.42% 25.23% 2.58% 27.81% 5.16% 1.02 0.81 12.92 19.18 0.75
7.28% 53.63% 3.00% 25.21% 5.99% 1.14 5.27 23.53 80.25 NA
7.06% 42.82% 3.00% 33.21% 5.44% 2.09 1.24 11.56 19.84 5.99
8.22% 40.60% 3.00% 15.31% 7.30% 3.46 2.06 12.59 16.49 40.07
5.51% 41.97% 3.00% 31.38% 4.47% 1.68 1.49 13.88 18.78 3.39
5.17% 38.91% 2.58% 17.59% 4.59% 4.10 0.93 12.29 22.81 5.43
2.07% 37.72% 2.58% 48.54% 1.98% 4.11 0.39 5.75 14.31 2.51
6.42% 52.87% 3.00% 6.67% 6.14% 1.80 4.71 33.19 83.83 18.62
6.98% 49.01% 3.00% 32.55% 5.42% 2.29 1.10 11.40 43.75 5.51
6.09% 43.83% 3.00% 63.62% 3.61% 1.07 0.74 9.84 NA 1.04
5.66% 37.26% 2.58% 8.85% 5.33% 0.75 7.16 18.04 29.30 6.87
5.98% 35.91% 2.58% 7.44% 5.68% 1.30 5.14 18.69 22.86 7.87
5.82% 29.83% 2.58% 38.33% 4.31% 0.68 1.74 10.67 30.64 1.13
5.57% 31.50% 2.58% 6.43% 5.33% 2.50 5.05 35.83 56.49 14.87
5.46% 62.61% 3.00% 2.55% 5.37% 0.68 8.16 25.09 38.04 6.23
4.58% 32.73% 2.58% 8.11% 4.36% 1.01 15.67 19.21 95.44 15.19
5.23% 47.97% 3.00% 6.15% 5.05% 0.92 11.82 30.42 43.93 14.07
5.43% 39.32% 2.58% 33.44% 4.24% 1.70 0.93 9.74 23.06 1.55
3.44% 39.78% 2.58% 35.30% 2.89% 0.84 3.67 10.14 29.55 2.36

48
5.03% 43.11% 3.00% 12.89% 4.67% 1.20 3.56 13.92 18.52 4.84
4.04% 43.53% 3.00% 45.40% 3.20% 0.75 2.51 6.76 13.12 1.73
4.34% 24.49% 1.92% 23.26% 3.65% 1.16 4.82 10.48 11.20 NA
5.21% 28.68% 2.58% 24.07% 4.41% 2.45 1.56 12.96 25.63 6.77
4.92% 16.83% 1.92% 18.39% 4.27% 0.40 8.10 15.46 20.93 5.82
6.18% 38.78% 2.58% 25.24% 5.09% 0.84 2.73 10.06 NA 4.81
4.42% 18.44% 1.92% 42.76% 3.13% 0.37 4.14 12.15 20.53 1.84
4.39% 35.96% 2.58% 28.81% 3.67% 0.30 9.79 20.92 32.16 3.51
5.37% 41.21% 3.00% 32.58% 4.34% 0.67 3.65 20.02 36.46 3.81
5.55% 44.77% 3.00% 20.07% 4.87% 1.11 3.20 16.52 30.62 4.75

49
Trailing
Non-cash
PE WC asCap
% ofEx
Revenues
as %
Net
of Cap
Revenues
Ex as % ofReinvestment
Revenues Rate
ROE Dividend Pre-tax
PayoEquity
Operating
ReinveMargin (Lease & R&D adjusted)
45.38 -0.57% 1.75% -1.91% -31.67% 2.93% 912.85% 912.85% 10.31%
107.38 43.56% 2.77% -1.33% 36.93% 8.54% 120.55% 120.55% 7.89%
13.47 1.70% 11.83% 1.80% NA -47.03% 0.09% 0.09% -19.35%
22.76 24.96% 2.52% 0.16% -146.72% -8.19% 0.32% 0.32% 5.91%
261.56 -6.94% 10.24% 4.61% 184.40% 4.49% 64.58% 64.58% 1.73%
55.56 13.84% 3.71% 2.09% 30.07% -14.31% 0.42% 0.42% 3.85%
14.86 NA 1.06% 1.06% NA 7.41% 46.95% 46.95% -0.11%
15.39 NA 4.37% 2.01% NA 8.22% 44.35% 44.35% -0.41%
32.39 15.25% 6.38% 4.49% 24.11% 10.10% 41.58% 41.58% 23.84%
116.72 -9.54% 5.42% 7.41% 37.01% 28.86% 74.19% 74.19% 20.11%
12.42 15.71% 2.74% -1.05% 111.06% 0.24% 0.17% 0.17% 19.03%
82.20 NA 5.24% 2.74% NA 12.08% 20.84% 20.84% -0.01%
25.63 15.45% 2.44% 0.45% -2.46% 20.54% 21.49% 21.49% 10.98%
44.22 13.84% 3.14% 0.34% -11.51% 6.81% 65.87% 65.87% 9.18%
63.68 -1.35% 10.94% -1.74% -15.01% 11.47% 26.20% 26.20% 18.07%
45.86 15.78% 6.33% 3.16% 18.24% -1.82% 0.44% 0.44% 7.28%
17.19 17.68% 5.07% 2.39% -68.79% 13.25% 51.84% 51.84% 5.82%
58.86 21.29% 6.37% 2.31% 10.49% 2.50% 163.69% 163.69% 12.18%
37.68 7.75% 11.29% -7.19% NA -41.66% 2.24% 2.24% -8.61%
27.86 12.09% 1.81% -0.13% -16.58% 13.50% 75.57% 75.57% 8.02%
27.25 -9.08% 2.72% 0.17% -0.24% 50.53% 26.83% 26.83% 15.98%
108.40 17.23% 5.21% 1.96% -8.26% 13.20% 49.85% 49.85% 9.25%
27.98 1.48% 5.08% 2.97% 20.49% 10.62% 14.32% 14.32% 18.14%
480.18 13.14% 3.56% 37.65% 721.55% -1.19% 0.13% 0.13% 12.92%
34.54 26.23% 5.01% 9.74% 48.92% 18.98% 60.86% 60.86% 25.38%
26.63 7.47% 3.88% 2.70% 61.41% -5.66% 0.06% 0.06% 8.82%
106.02 21.00% 3.79% 4.49% 36.52% 17.67% 43.55% 43.55% 12.84%
14.62 13.26% 1.68% 0.97% -112.45% -4.89% 0.00% 0.00% 2.58%
69.76 20.52% 4.19% 4.25% 59.96% 6.67% 41.48% 41.48% 7.90%
34.52 17.94% 1.70% 10.32% 283.75% 2.54% 52.79% 52.79% 4.31%
1157.13 0.65% 5.18% 0.28% 16.68% -2.87% 0.11% 0.11% 7.51%
549.58 9.56% 7.49% 2.83% 22.50% 6.21% 94.76% 94.76% 12.10%
23.82 13.00% 3.06% 1.35% 38.73% 14.03% 38.93% 38.93% 6.61%
21.86 NA 6.99% 13.20% 122.62% 64.28% 23.86% 23.86% 12.23%
375.19 5.27% 3.21% 2.09% 15.12% 10.12% 60.98% 60.98% 12.95%
8.64 5.38% 1.02% 2.61% 87.56% -5.03% 0.20% 0.20% 1.54%
125.50 10.60% 2.74% 1.37% -26.83% 13.37% 27.17% 27.17% 8.16%
40.67 -158.25% 35.69% 25.82% 110.11% -20.59% 0.15% 0.15% 25.88%
317.98 25.16% 5.15% 11.83% 113.46% 10.55% 30.11% 30.11% 14.09%
104.18 -5.33% 0.74% 0.68% 19.57% 16.60% 25.63% 25.63% 4.84%

50
162.96 23.07% 3.82% 0.07% 10.28% 14.11% 10.55% 10.55% 13.69%
17.34 66.10% 0.74% 0.63% -10.15% 17.70% 7.58% 7.58% 11.82%
44.61 3.37% 5.92% 1.39% -26.10% 70.64% 10.91% 10.91% 9.49%
64.17 15.67% 18.51% 13.00% NA -30.40% 0.50% 0.50% -14.01%
36.29 8.85% 3.65% 1.27% -2.57% 31.60% 60.85% 60.85% 18.27%
71.13 6.79% 3.07% -0.15% -7.08% 14.35% 32.41% 32.41% 23.61%
50.36 -15.44% 0.78% -3.17% -44.47% 1.49% 192.79% 192.79% 12.92%
28.99 1.35% 0.16% -0.39% 2.64% 5.61% 37.95% 37.95% 8.48%
22.12 -52.80% 1.06% 0.37% 13.47% 9.19% 38.39% 38.39% 10.89%
625.41 NA 2.92% 5.31% 46.23% 12.35% 52.70% 52.70% 16.74%
46.09 23.31% 2.44% 3.99% 20.62% 12.65% 45.37% 45.37% 13.21%
44.42 14.30% 8.98% 1.03% -7.46% 2.67% 197.36% 197.36% 11.26%
33.03 6.66% 2.81% 0.37% -10.66% 6.36% 91.77% 91.77% 7.51%
52.50 5.39% 11.10% -6.73% NA -6.19% 4.48% 4.48% -3.96%
26.13 1.29% 38.82% -22.85% NA -37.09% 1.68% 1.68% -20.70%
37.08 6.97% 13.48% 5.01% 36.48% 1.28% 4.66% 4.66% 17.38%
31.78 11.41% 4.14% -0.08% -39.83% -26.63% 0.30% 0.30% 0.70%
24.25 7.23% 5.34% 2.18% 22.77% 9.76% 64.94% 64.94% 9.86%
20.05 15.40% 3.85% -0.29% -27.91% 4.69% 117.52% 117.52% 6.01%
21.95 2.57% 35.11% 20.55% 119.53% 7.69% 87.59% 87.59% 19.61%
86.45 11.99% 13.00% -8.19% -44.22% 8.27% 31.91% 31.91% 21.64%
48.94 11.60% 2.69% 0.56% -4.91% -14.18% 0.54% 0.54% 5.31%
63.00 89.65% 3.24% -15.31% -75.13% 2.17% 430.49% 430.49% 19.05%
15.96 -3.41% 33.83% 21.69% NA -0.13% 0.00% 0.00% -6.70%
52.41 301.01% 2.57% -2.99% 497.44% 2.00% 67.61% 67.61% 6.37%
56.83 14.01% 1.22% -0.64% -93.68% 4.71% 39.08% 39.08% 4.07%
155.39 15.66% 4.56% 11.38% 206.78% -7.19% 0.71% 0.71% 6.44%
15.20 -7.60% 0.29% -0.98% -17.14% 2.42% 36.15% 36.15% 4.21%
58.91 2.84% 5.82% 2.47% 48.72% NA 114.33% 114.33% 6.55%
17.52 10.95% 1.81% 1.72% -23.16% 36.28% 3.72% 3.72% 5.48%
140.11 4.46% 2.07% 0.20% -26.45% 0.27% 45.51% 45.51% 12.51%
138.44 15.54% 3.68% 5.08% 63.11% 9.67% 52.37% 52.37% 7.90%
22.70 0.06% 2.01% 0.02% -42.80% 20.64% 36.12% 36.12% 4.09%
14.41 -0.20% 2.29% 0.11% -14.72% 30.63% 12.85% 12.85% 2.71%
131.27 -3.70% 7.72% 3.55% 55.37% 27.05% 5.66% 5.66% 6.29%
55.99 4.75% 1.78% 0.05% -179.34% -0.64% 0.32% 0.32% 2.51%
24.89 13.63% 5.63% -0.53% NA -25.69% 0.07% 0.07% 0.01%
726.52 17.44% 12.76% 16.06% 79.83% 22.13% 42.10% 42.10% 24.79%
55.87 27.82% 3.71% 1.16% 28.59% 32.23% 23.31% 23.31% 23.18%
49.99 8.57% 9.73% 7.10% 124.48% -5.70% 0.16% 0.16% 5.66%
46.18 20.38% 0.76% -2.13% -30.66% 23.70% 48.27% 48.27% 8.93%
157.38 5.41% 14.04% 9.94% 67.80% 17.71% 0.26% 0.26% 21.79%
67.89 10.58% 7.90% 6.95% 217.24% -11.23% 0.18% 0.18% 6.78%
148.99 13.15% 6.80% 5.60% 33.69% 28.09% 29.35% 29.35% 24.90%
35.73 21.69% 6.96% 5.57% 28.49% -2.84% 0.65% 0.65% 3.63%
24.68 10.99% 15.33% 3.52% 168.20% 8.91% 3.04% 3.04% 12.65%

51
 50.68 16.84% 2.95% 3.35% 11.71% 17.10% 64.71% 64.71% 18.86%
22.27 1.18% 12.63% -2.36% -2.19% 11.27% 51.92% 51.92% 19.07%
54.62 13.10% 1.75% 1.24% 0.69% -0.23% 164.95% 164.95% 42.92%
48.61 7.97% 5.88% 2.26% 68.34% 22.77% 55.44% 55.44% 6.07%
28.55 1.65% 16.36% 4.45% 12.83% 21.47% 41.03% 41.03% 38.69%
46.74 6.07% -0.80% -8.67% NA -17.70% 0.27% 0.27% -5.07%
18.73 9.01% 31.15% 19.90% 110.40% 7.49% 100.90% 100.90% 20.15%
62.39 16.95% 47.28% 96.62% 394.54% 8.25% 66.37% 71.31% 30.21%
103.25 -36.10% 5.60% 2.57% 33.16% 8.25% 71.31% 71.31% 9.61%
87.08 8.28% 5.91% 2.54% 29.40% 7.78% 83.97% 83.97% 9.93%

52
e & R&D adjusted)

53
Industry Name Number of fir Annual AverPre-tax OperatAfter-tax ROC Average effecUnlevered BetEquity (Levered) Beta
Advertising 348 4.97% 4.64% 9.34% 24.99% 0.99 1.13
Aerospace/Defense 255 7.84% 5.47% 11.42% 21.36% 1.00 1.13
Air Transport 156 -2.62% -14.64% -9.24% 31.44% 0.92 1.56
Apparel 1188 -1.94% 7.90% 8.75% 27.63% 0.85 0.92
Auto & Truck 144 0.90% 2.61% 2.02% 26.40% 1.01 1.39
Auto Parts 709 1.85% 2.62% 3.40% 24.18% 1.28 1.40
Bank (Money Center 620 8.45% 0.20% 0.02% 20.18% 0.48 1.00
Banks (Regional) 850 7.10% -0.02% -0.03% 19.24% 0.54 0.69
Beverage (Alcoholic) 223 7.34% 20.27% 11.49% 25.18% 0.73 0.80
Beverage (Soft) 108 6.39% 15.00% 19.81% 22.09% 0.65 0.72
Broadcasting 146 1.32% 14.79% 12.96% 23.93% 0.69 0.98
Brokerage & Investm 575 8.36% 1.03% 0.15% 22.23% 0.42 0.86
Building Materials 439 1.99% 8.62% 12.21% 25.58% 0.91 0.99
Business & Consume 923 7.37% 7.61% 16.20% 25.59% 0.91 0.99
Cable TV 60 1.85% 18.12% 11.27% 22.91% 0.78 1.05
Chemical (Basic) 844 5.61% 6.49% 5.83% 22.47% 0.93 1.07
Chemical (Diversified 73 3.34% 3.81% 3.12% 24.81% 1.05 1.33
Chemical (Specialty) 861 5.37% 9.71% 8.83% 21.58% 0.99 1.08
Coal & Related Ener 222 6.57% 12.18% 10.53% 23.72% 0.90 1.01
Computer Services 1007 6.15% 6.92% 19.18% 22.24% 1.00 1.05
Computers/Periphera 337 0.58% 10.06% 15.10% 18.88% 1.23 1.27
Construction Supplie 753 3.73% 9.32% 9.45% 22.25% 0.95 1.10
Diversified 324 5.64% 12.43% 8.55% 20.38% 0.73 0.99
Drugs (Biotechnolog 1139 24.87% 6.21% 4.85% 13.52% 0.97 0.98
Drugs (Pharmaceutic 1319 16.98% 16.85% 12.50% 16.97% 0.93 1.00
Education 250 12.70% 7.21% 7.55% 19.57% 0.95 0.98
Electrical Equipment 950 6.30% 5.69% 8.17% 20.79% 1.06 1.09
Electronics (Consume 142 0.81% 4.83% 7.21% 9.75% 1.15 1.22
Electronics (General) 1387 5.04% 6.13% 8.69% 20.99% 1.25 1.24
Engineering/Construc 1263 3.73% 4.93% 8.89% 25.90% 0.77 1.04
Entertainment 725 8.47% 7.71% 8.75% 15.40% 1.04 1.07
Environmental & Was 344 9.85% 10.33% 11.62% 21.08% 0.87 1.01
Farming/Agriculture 410 6.19% 6.76% 7.42% 19.35% 0.71 0.89
Financial Svcs. (Non 1096 8.98% 9.17% 0.52% 18.41% 0.16 0.80
Food Processing 1322 7.06% 9.42% 13.97% 21.67% 0.71 0.78
Food Wholesalers 155 4.76% 1.88% 7.69% 24.77% 0.54 0.76
Furn/Home Furnishi 357 4.74% 7.16% 14.95% 18.10% 1.02 1.01
Green & Renewable 226 12.06% 34.37% 7.23% 16.20% 0.69 0.95
Healthcare Products 816 12.11% 14.47% 13.14% 16.35% 0.93 0.96
Healthcare Support 413 12.89% 5.02% 26.55% 24.08% 0.76 0.87
Heathcare Informati 423 15.79% 12.88% 14.92% 17.03% 0.97 1.00
Homebuilding 167 6.43% 10.44% 9.50% 22.59% 1.16 1.31
Hospitals/Healthcare 216 5.77% 9.26% 8.54% 21.65% 0.66 0.86

54
Hotel/Gaming 641 -0.95% -5.75% -3.03% 20.95% 0.85 1.09
Household Products 568 5.95% 15.82% 22.37% 23.56% 0.87 0.91
Information Services 244 15.57% 20.18% 21.09% 20.72% 1.14 1.18
Insurance (General) 220 5.63% 8.44% 10.30% 23.03% 0.66 0.75
Insurance (Life) 133 9.32% 9.68% 10.70% 16.10% 0.96 1.00
Insurance (Prop/Cas. 229 4.31% 8.34% 9.45% 19.80% 0.65 0.72
Investments & Asse 1234 9.61% 17.10% 4.62% 21.14% 0.55 0.78
Machinery 1385 3.57% 7.82% 9.55% 23.83% 1.07 1.11
Metals & Mining 1620 15.56% 8.10% 8.65% 31.30% 0.83 0.97
Office Equipment & 148 3.17% 6.68% 10.69% 26.23% 1.01 1.04
Oil/Gas (Integrated) 49 0.74% 6.25% 4.59% 45.14% 1.08 1.27
Oil/Gas (Production 765 6.67% -7.50% -2.19% 41.03% 0.93 1.31
Oil/Gas Distribution 204 9.68% 16.79% 8.07% 10.94% 0.65 1.14
Oilfield Svcs/Equip. 513 -2.25% 1.27% 2.12% 14.76% 0.91 1.23
Packaging & Contain 412 2.81% 8.80% 10.18% 23.86% 0.71 0.88
Paper/Forest Produc 287 3.25% 7.03% 5.38% 22.56% 0.78 1.01
Power 553 6.42% 13.38% 6.15% 19.69% 0.51 0.82
Precious Metals 922 35.80% 19.25% 14.34% 27.75% 0.87 0.89
Publishing & Newspa 349 -0.29% 5.31% 6.74% 17.12% 0.84 0.89
R.E.I.T. 799 8.60% 33.19% 2.88% 3.28% 0.66 0.97
Real Estate (Develo 890 6.89% 17.31% 8.28% 35.87% 0.52 0.94
Real Estate (General/ 364 5.41% 16.29% 3.89% 31.95% 0.60 0.99
Real Estate (Operati 720 8.04% 23.22% 4.60% 23.85% 0.53 0.81
Recreation 331 0.43% 8.05% 6.67% 24.97% 0.93 1.01
Reinsurance 37 4.29% 3.80% 5.18% 13.76% 1.25 1.27
Restaurant/Dining 379 -0.53% 6.02% 5.42% 20.92% 0.90 1.10
Retail (Automotive) 185 3.50% 4.90% 8.40% 23.66% 0.82 1.07
Retail (Building Supp 90 2.82% 11.62% 24.98% 24.94% 1.06 1.14
Retail (Distributors) 1022 6.62% 3.65% 5.23% 23.16% 0.57 0.83
Retail (General) 217 -1.14% 4.31% 8.66% 26.86% 0.84 0.99
Retail (Grocery and 171 3.74% 4.31% 11.09% 25.33% 0.47 0.62
Retail (Online) 356 13.38% 4.75% 8.67% 14.08% 1.31 1.31
Retail (Special Lines 480 1.51% 3.47% 6.39% 27.42% 0.96 1.09
Rubber& Tires 92 0.31% 5.62% 4.42% 29.95% 0.86 1.04
Semiconductor 565 4.55% 18.19% 13.96% 12.09% 1.43 1.46
Semiconductor Equi 308 7.15% 18.84% 18.61% 16.11% 1.73 1.73
Shipbuilding & Marin 353 1.59% 8.18% 4.97% 19.10% 0.76 1.03
Shoe 79 -5.90% 6.26% 9.45% 18.57% 0.99 1.01
Software (Entertainm 339 8.14% 19.78% 14.00% 13.93% 1.13 1.13
Software (Internet) 155 23.83% 3.64% 5.51% 12.49% 0.93 0.95
Software (System & A 1478 14.37% 19.82% 19.31% 15.88% 1.06 1.08
Steel 718 5.72% 4.41% 4.54% 25.27% 0.93 1.17
Telecom (Wireless) 104 1.13% 14.17% 8.58% 32.42% 0.63 0.87
Telecom. Equipment 482 8.73% 10.81% 12.49% 19.45% 1.09 1.10
Telecom. Services 315 9.99% 15.08% 10.27% 22.10% 0.51 0.78
Tobacco 57 11.85% 32.81% 18.58% 28.83% 0.55 0.65
Transportation 284 5.64% 5.89% 7.77% 23.01% 0.77 0.95
Transportation (Railr 53 1.76% 15.27% 5.24% 23.92% 0.62 0.78
Trucking 217 2.54% 1.45% 0.45% 27.60% 0.81 1.05

55
Utility (General) 53 2.58% 11.86% 6.65% 23.33% 0.49 0.76
Utility (Water) 104 8.44% 26.79% 7.27% 26.54% 0.59 0.83
Total Market 46580 6.62% 8.00% 4.94% 22.12% 0.79 1.01
Total Market (without 41623 6.41% 8.31% 7.72% 22.89% 0.89 1.04

56
Cost of equit Std deviation Pre-tax cost oMarket Debt/Cost of capitaSales/Capital EV/Sales EV/EBITDA EV/EBIT Price/Book
7.45% 37.24% 3.53% 29.05% 6.04% 2.14 1.71 12.74 29.57 2.51
7.45% 32.56% 3.53% 23.06% 6.34% 2.11 1.93 14.01 26.86 4.62
9.89% 32.76% 3.53% 55.24% 5.87% 0.65 2.49 24.89 NA 2.62
6.23% 31.18% 3.53% 18.04% 5.57% 1.23 2.90 21.19 35.17 3.65
8.94% 30.83% 3.53% 42.91% 6.22% 0.86 1.53 19.79 53.78 1.76
9.00% 29.94% 3.53% 25.58% 7.37% 1.38 1.05 11.24 36.17 1.72
6.67% 21.18% 2.87% 75.42% 3.24% 0.12 7.75 NA NA 0.81
4.92% 19.26% 2.87% 66.12% 3.07% 0.18 4.94 NA NA 0.81
5.56% 24.28% 2.87% 15.01% 5.04% 0.68 5.86 22.59 28.80 4.95
5.07% 31.20% 3.53% 17.57% 4.64% 1.47 3.79 19.29 25.14 5.90
6.55% 31.23% 3.53% 43.51% 4.83% 1.00 1.80 8.14 11.77 1.35
5.87% 29.64% 3.53% 66.17% 3.71% 0.19 6.62 NA NA 1.60
6.64% 27.51% 3.53% 19.90% 5.83% 1.66 1.81 13.58 20.47 2.90
6.63% 32.24% 3.53% 17.75% 5.91% 2.45 2.17 17.28 27.40 4.54
7.00% 30.64% 3.53% 34.48% 5.49% 0.73 3.67 10.40 19.34 2.75
7.09% 28.52% 3.53% 25.80% 5.93% 1.04 1.76 13.32 26.30 1.90
8.57% 24.89% 2.87% 34.88% 6.32% 0.97 1.37 12.96 35.24 1.45
7.16% 30.27% 3.53% 17.80% 6.35% 1.06 2.75 15.89 27.73 2.87
6.77% 40.87% 3.95% 35.54% 5.40% 0.92 1.23 5.59 9.53 0.96
6.98% 31.02% 3.53% 15.55% 6.30% 3.21 1.44 14.01 20.07 3.87
8.22% 31.51% 3.53% 9.64% 7.68% 1.65 2.80 18.05 27.54 6.21
7.24% 28.73% 3.53% 28.91% 5.90% 1.16 1.59 10.90 16.46 1.76
6.63% 23.45% 2.87% 40.32% 4.81% 0.79 1.82 10.24 14.18 1.09
6.60% 45.63% 3.95% 9.87% 6.24% 0.49 10.37 18.61 106.34 7.30
6.67% 39.92% 3.53% 15.01% 6.06% 0.76 4.38 15.07 24.39 3.90
6.56% 32.66% 3.53% 12.58% 6.06% 1.09 4.88 23.88 58.55 4.84
7.20% 32.30% 3.53% 13.59% 6.57% 1.54 2.34 20.35 36.59 3.31
7.98% 34.39% 3.53% 23.94% 6.69% 1.57 1.08 11.50 21.32 2.07
8.10% 31.04% 3.53% 12.69% 7.40% 1.52 1.89 16.69 29.75 2.96
6.92% 29.24% 3.53% 49.91% 4.77% 2.02 0.60 8.22 11.64 0.99
7.10% 39.45% 3.53% 11.53% 6.58% 1.16 5.43 26.54 58.66 4.62
6.77% 35.25% 3.53% 24.78% 5.74% 1.26 2.80 14.66 26.16 3.14
6.08% 30.72% 3.53% 31.69% 4.98% 1.22 1.45 14.11 20.68 2.30
5.57% 29.68% 3.53% 85.72% 3.03% 0.07 17.21 113.76 154.77 1.42
5.45% 26.95% 3.53% 18.92% 4.91% 1.72 1.87 14.14 19.48 3.03
5.28% 30.09% 3.53% 44.07% 4.10% 4.77 0.45 12.84 23.74 2.07
6.76% 28.09% 3.53% 14.93% 6.14% 2.37 1.68 15.59 22.64 3.61
6.38% 31.15% 3.53% 35.73% 5.03% 0.24 8.97 15.68 25.87 2.12
6.45% 38.32% 3.53% 8.87% 6.11% 0.96 6.51 27.02 42.65 5.48
5.94% 33.20% 3.53% 24.77% 5.12% 6.24 0.73 10.85 14.31 2.64
6.67% 40.10% 3.95% 7.74% 6.38% 1.18 8.66 36.66 61.78 8.08
8.46% 28.33% 3.53% 29.01% 6.76% 1.26 1.21 9.93 12.77 1.57
5.88% 27.17% 3.53% 34.03% 4.77% 1.16 2.66 15.14 27.53 4.61

57
 7.21% 31.46% 3.53% 35.18% 5.59% 0.46 5.26 30.70 NA 2.92
6.17% 35.24% 3.53% 10.63% 5.79% 1.59 3.84 18.64 23.87 6.13
7.72% 38.54% 3.53% 8.75% 7.27% 1.20 9.67 32.31 46.25 8.32
5.27% 23.27% 2.87% 32.12% 4.26% 1.45 1.04 9.33 12.25 1.23
6.70% 23.85% 2.87% 49.24% 4.44% 1.30 0.91 8.59 9.21 0.95
5.09% 24.51% 2.87% 24.16% 4.38% 1.33 1.04 9.57 11.60 1.22
5.45% 30.37% 3.53% 44.81% 4.18% 0.29 5.79 18.31 23.24 1.54
7.33% 27.34% 3.53% 14.54% 6.65% 1.41 2.22 17.09 27.40 3.05
6.51% 53.80% 3.95% 26.73% 5.55% 1.10 1.64 10.20 19.25 1.98
6.92% 29.31% 3.53% 20.17% 6.05% 1.91 1.16 10.52 16.81 2.14
8.25% 24.70% 2.87% 25.97% 6.66% 0.85 1.66 9.65 26.38 1.59
8.49% 50.71% 3.95% 40.39% 6.24% 0.32 2.78 6.11 NA 1.05
7.50% 31.31% 3.53% 52.41% 4.94% 0.54 2.38 9.22 14.14 1.19
8.00% 37.62% 3.53% 38.26% 5.94% 1.65 0.85 12.81 54.87 1.41
6.02% 28.68% 3.53% 30.40% 4.98% 1.35 1.66 10.83 18.63 2.72
6.76% 29.44% 3.53% 35.15% 5.30% 0.87 1.57 10.99 21.68 1.47
5.67% 22.41% 2.87% 48.35% 3.95% 0.55 2.44 10.02 18.19 1.35
6.08% 54.78% 3.95% 12.61% 5.68% 0.77 3.52 9.83 16.60 2.53
6.07% 29.13% 3.53% 26.37% 5.16% 1.45 1.20 11.16 21.71 1.43
6.53% 23.99% 2.87% 41.47% 4.70% 0.10 13.48 23.08 38.37 1.62
6.37% 26.44% 3.53% 63.75% 3.97% 0.57 1.85 9.48 10.17 0.68
6.64% 24.40% 2.87% 53.09% 4.24% 0.28 3.35 13.56 19.50 0.73
5.61% 25.03% 3.53% 45.06% 4.26% 0.22 6.46 20.78 24.13 1.08
6.76% 33.21% 3.53% 20.03% 5.93% 0.95 3.37 20.53 39.26 3.70
8.24% 28.79% 3.53% 23.72% 6.91% 1.53 0.67 11.42 13.95 0.91
7.25% 31.96% 3.53% 26.74% 6.01% 1.46 3.37 22.80 80.66 16.01
7.09% 30.48% 3.53% 34.60% 5.54% 2.28 0.96 11.89 19.81 3.38
7.52% 28.19% 3.53% 17.02% 6.69% 2.78 1.84 12.33 16.22 10.73
5.71% 29.10% 3.53% 46.28% 4.28% 1.68 0.81 13.45 21.20 1.40
6.65% 25.73% 3.53% 26.95% 5.56% 2.71 0.96 12.76 24.54 3.34
4.51% 21.91% 2.87% 37.55% 3.61% 3.40 0.64 9.05 15.42 2.28
8.48% 39.84% 3.53% 5.74% 8.15% 1.76 5.06 36.23 91.77 8.84
7.20% 32.04% 3.53% 25.29% 6.04% 2.24 1.30 14.29 38.13 4.05
6.94% 25.61% 3.53% 34.33% 5.46% 1.00 1.18 8.39 20.16 1.33
9.34% 32.40% 3.53% 8.49% 8.77% 0.80 5.96 17.81 31.94 5.31
10.87% 33.70% 3.53% 5.91% 10.38% 1.08 5.58 22.86 29.16 6.70
6.86% 26.29% 3.53% 40.19% 5.15% 0.68 1.93 11.54 22.60 1.24
6.73% 29.35% 3.53% 9.13% 6.35% 1.72 3.73 33.75 60.07 7.74
7.44% 42.35% 3.95% 4.07% 7.26% 0.73 7.99 25.76 38.88 5.95
6.38% 34.77% 3.53% 7.09% 6.11% 1.26 11.15 44.21 185.25 12.49
7.12% 40.59% 3.95% 6.00% 6.87% 0.98 10.19 30.92 44.66 11.12
7.68% 30.40% 3.53% 36.27% 5.84% 1.14 0.99 8.96 21.06 1.19
5.95% 26.77% 3.53% 40.09% 4.61% 0.74 2.29 6.95 16.01 1.55
7.28% 34.27% 3.53% 12.66% 6.69% 1.21 2.52 15.55 22.16 3.68
5.45% 29.19% 3.53% 45.01% 4.17% 0.79 2.16 6.79 14.39 1.48
4.68% 24.63% 2.87% 23.96% 4.06% 0.68 3.87 10.35 11.77 3.58
6.38% 26.02% 3.53% 31.49% 5.19% 1.55 1.53 13.20 25.13 2.94
5.43% 17.28% 2.87% 29.21% 4.46% 0.40 4.83 17.09 31.01 2.48
7.00% 29.38% 3.53% 35.44% 5.44% 1.00 1.74 10.05 68.18 2.68

58
5.33% 17.73% 2.87% 46.37% 3.84% 0.70 2.38 10.76 19.00 1.67
5.70% 27.39% 3.53% 40.89% 4.43% 0.32 5.01 12.78 18.44 1.71
6.76% 32.36% 3.53% 38.68% 5.16% 0.69 2.66 15.84 27.99 2.21
6.90% 33.08% 3.53% 24.82% 5.84% 1.04 2.31 14.33 26.06 2.71

59
Trailing PE Non-cash WCCap Ex as % Net Cap Ex aReinvestmentROE Dividend PayEquity Reinv Pre-tax Operating Margin (Lease & R&D adju
69.03 -2.88% 1.90% 1.18% -10.61% -3.95% 0.90% 0.90% 4.96%
76.25 39.36% 3.30% -0.20% 66.51% -0.18% 1.03% 1.03% 5.93%
140.70 -7.42% 12.67% 0.44% NA -35.47% 2.09% 2.09% -15.15%
95.19 24.69% 4.34% 1.31% 24.78% 2.44% 171.53% 171.53% 8.03%
156.27 0.62% 6.76% 3.31% 107.02% 1.91% 121.63% 121.63% 2.71%
78.99 12.31% 5.82% 3.45% 175.13% -1.61% 0.71% 0.71% 2.79%
71.41 NA 3.32% 4.09% 1965.58% 7.70% 37.39% 37.39% 0.22%
17.68 NA 4.10% 2.66% NA 7.26% 54.40% 54.40% -0.21%
163.77 10.26% 5.02% 3.93% 24.69% 9.14% 72.96% 72.96% 20.31%
82.18 -5.54% 5.35% 4.95% 36.27% 19.34% 78.48% 78.48% 15.08%
26.64 14.64% 3.62% -0.03% 80.75% 1.95% 127.73% 127.73% 14.67%
44.20 -204.02% 3.72% 1.74% ### 10.25% 51.59% 51.59% 0.89%
66.92 17.07% 4.14% 3.13% 35.43% 8.69% 41.47% 41.47% 8.78%
90.75 8.91% 2.69% 0.88% -0.61% 8.88% 70.65% 70.65% 7.82%
41.40 -0.07% 11.70% -2.11% -15.90% 10.47% 32.91% 32.91% 18.07%
47.06 12.17% 8.99% 5.70% 104.08% 3.97% 135.95% 135.95% 6.60%
129.62 19.36% 6.77% 2.95% 71.18% -2.95% 3.33% 3.33% 3.92%
61.44 17.88% 7.59% 3.47% 35.00% 5.33% 89.61% 89.61% 9.80%
22.51 -1.76% 8.03% 2.34% 44.52% 7.60% 98.30% 98.30% 12.24%
60.30 13.18% 1.66% 1.02% 9.83% 14.32% 51.51% 51.51% 7.11%
57.75 1.62% 4.48% 2.92% 35.94% 19.09% 34.57% 34.57% 10.38%
49.38 10.10% 5.06% 1.83% 4.86% 7.99% 59.34% 59.34% 9.44%
38.05 -20.77% 5.34% 2.93% 34.76% 7.74% 33.96% 33.96% 12.45%
547.85 18.82% 5.30% 31.56% 1540.41% -4.38% 0.31% 0.31% 10.03%
78.51 17.08% 4.70% 5.09% 44.04% 10.90% 82.24% 82.24% 18.09%
58.53 2.19% 6.50% 6.57% 131.05% -0.28% 0.65% 0.65% 7.76%
71.44 23.33% 4.82% 3.47% 54.82% 6.63% 66.75% 66.75% 5.99%
46.44 -0.85% 5.52% 3.77% 75.48% 12.12% 23.66% 23.66% 5.10%
85.41 17.58% 5.98% 4.47% 103.69% 6.81% 59.84% 59.84% 6.48%
52.36 16.22% 3.52% 2.88% 129.78% 7.89% 62.95% 62.95% 5.21%
128.44 1.79% 4.27% 0.93% 15.88% -1.27% 0.21% 0.21% 8.04%
86.82 11.38% 9.87% 6.59% 109.95% 5.78% 93.63% 93.63% 10.45%
50.26 15.49% 5.80% 3.68% 53.80% 9.45% 40.75% 40.75% 6.88%
67.24 NA 5.91% 8.11% 117.19% 13.96% 27.98% 27.98% 9.14%
72.32 9.34% 4.68% 3.14% 44.80% 13.03% 47.24% 47.24% 9.48%
43.34 4.30% 1.33% 1.64% 68.53% 1.60% 304.31% 304.31% 1.86%
40.27 4.16% 3.43% 1.55% -6.37% 11.90% 58.73% 58.73% 7.40%
194.24 6.86% 27.23% 16.01% 69.27% 7.25% 107.12% 107.12% 34.26%
421.87 25.02% 5.25% 7.86% 78.36% 10.56% 37.17% 37.17% 14.68%
86.38 -1.69% 0.99% 0.84% 21.96% 14.37% 29.27% 29.27% 4.92%
117.85 22.07% 5.53% 2.78% 40.65% 12.88% 14.17% 14.17% 13.46%
174.93 60.81% 1.03% 1.22% 17.37% 13.35% 21.56% 21.56% 9.42%
80.44 3.99% 7.08% 2.41% 15.27% 6.71% 61.27% 61.27% 8.67%

60
125.16 0.65% 13.81% 5.80% NA -14.75% 1.38% 1.38% -7.15%
73.09 5.63% 3.60% 3.14% 19.93% 16.80% 65.42% 65.42% 15.89%
62.48 4.48% 3.07% 0.35% -0.36% 13.12% 34.56% 34.56% 20.26%
72.14 -3.14% 0.70% -0.37% -15.00% 7.20% 46.27% 46.27% 8.45%
52.07 -104.40% 0.56% 0.44% 63.24% 7.89% 45.64% 45.64% 9.68%
26.18 -39.68% 0.86% 0.06% 13.85% 7.40% 46.02% 46.02% 8.34%
198.87 NA 2.43% 6.22% 57.93% 7.24% 67.27% 67.27% 17.02%
87.50 26.31% 4.25% 3.47% 48.14% 7.47% 56.22% 56.22% 8.01%
175.10 10.39% 8.05% 4.11% 88.51% 3.61% 179.98% 179.98% 8.16%
35.76 12.52% 2.31% 0.36% 1.65% 6.87% 58.26% 58.26% 6.66%
45.52 1.88% 11.18% 0.34% -17.52% -1.43% 1.45% 1.45% 6.30%
52.89 -0.05% 32.26% -13.78% NA -21.04% 0.83% 0.83% -7.12%
26.72 4.75% 13.59% 5.78% 42.13% 5.25% 201.87% 201.87% 16.76%
35.05 6.96% 4.95% 1.85% 90.28% -12.48% 0.53% 0.53% 1.38%
35.87 11.43% 6.04% 2.40% 28.17% 10.06% 53.28% 53.28% 8.93%
159.36 18.69% 7.36% 2.66% 17.01% 4.96% 59.66% 59.66% 7.07%
25.26 2.11% 17.48% 8.63% 85.25% 7.31% 81.59% 81.59% 13.38%
63.03 12.73% 13.90% 8.19% 78.16% 7.86% 45.15% 45.15% 19.30%
42.54 13.10% 3.20% 1.46% 40.75% -0.76% 0.54% 0.54% 5.29%
44.45 63.30% 5.40% -1.45% -1.00% 0.80% 823.36% 823.36% 30.35%
62.63 192.82% 3.05% 3.47% 103.72% 10.44% 69.21% 69.21% 17.31%
99.04 98.92% 10.07% 8.87% 136.57% 3.90% 83.99% 83.99% 16.14%
58.53 21.54% 3.25% 5.84% 36.32% 5.08% 48.89% 48.89% 24.07%
71.57 34.60% 6.91% 6.93% 144.74% 2.79% 192.60% 192.60% 7.98%
188.44 -41.18% 0.16% -0.01% 25.39% 3.34% 93.49% 93.49% 3.78%
127.25 -0.36% 4.87% 0.70% 34.96% 5.17% 459.50% 459.50% 4.03%
43.31 11.51% 2.30% 1.54% 0.39% 13.99% 36.42% 36.42% 4.45%
46.21 5.32% 2.08% 0.05% -25.48% 55.16% 43.42% 43.42% 11.36%
66.68 15.31% 3.02% 2.45% 42.86% 5.73% 75.55% 75.55% 3.68%
61.89 -1.86% 2.41% 0.18% -15.30% 9.99% 55.81% 55.81% 3.88%
53.40 -3.31% 2.65% 0.46% 24.83% 11.41% 47.07% 47.07% 4.11%
110.83 -2.97% 6.36% 3.99% 98.20% 14.89% 5.03% 5.03% 5.38%
38.36 6.06% 1.71% -0.64% -101.36% 2.29% 201.73% 201.73% 3.32%
30.65 19.35% 5.47% 1.14% -12.49% 2.65% 110.38% 110.38% 5.39%
254.65 16.63% 15.67% 14.78% 101.66% 16.89% 44.42% 44.42% 19.15%
84.83 29.83% 5.96% 3.66% 38.20% 21.38% 31.51% 31.51% 19.69%
915.77 -0.07% 9.45% 3.22% 42.72% 5.68% 61.79% 61.79% 8.35%
108.92 19.77% 1.63% -1.45% -39.76% 9.95% 65.38% 65.38% 6.16%
122.11 1.54% 10.83% 7.12% 51.13% 18.42% 3.72% 3.72% 21.05%
118.92 1.98% 10.43% 9.53% 414.73% -5.64% 0.32% 0.32% 4.72%
187.92 13.52% 5.65% 5.99% 43.79% 20.37% 33.25% 33.25% 21.44%
59.31 14.07% 6.22% 3.21% 50.37% 2.44% 154.05% 154.05% 4.52%
46.65 -6.55% 11.57% -4.38% -22.91% 8.19% 77.55% 77.55% 14.07%
105.51 21.75% 3.55% 2.66% 28.78% 10.42% 61.55% 61.55% 11.18%
59.00 2.27% 13.98% -3.32% -22.88% 8.78% 65.62% 65.62% 14.95%
39.89 17.49% 2.73% 0.00% -8.74% 19.35% 105.89% 105.89% 32.91%
37.67 3.96% 4.67% 0.68% 21.49% 8.26% 79.54% 79.54% 6.03%
56.83 7.99% 19.50% 12.72% 112.09% 5.66% 78.08% 78.08% 15.62%
35.79 5.95% 2.42% -2.78% -726.78% -5.76% 0.47% 0.47% 0.73%

61
37.33 -1.28% 15.37% 10.16% 107.97% 5.49% 122.28% 122.28% 11.79%
31.57 5.29% 27.09% 27.53% 172.58% 6.30% 56.83% 75.32% 26.79%
93.22 -137.39% 5.88% 2.72% 47.93% 6.30% 75.32% 75.32% 8.09%
93.93 11.58% 6.37% 2.75% 46.14% 5.54% 95.73% 95.73% 8.41%

62
erating Margin (Lease & R&D adjusted)

63
 Last 10K First X months: Last yeaFirst X months: Current yeaTrailing 12 month
Revenues $ 15,794.34 $ 7,608.13 $ 9,444.11 $ 17,630.32
Technology & Content $ 1,221.81 $ 581.41 $ 756.00 $ 1,396.40
Operating income or EBIT $ 1,605.23 $ 908.79 $ 1,165.50 $ 1,861.94
Interest expenses $ 420.49 $ 182.82 $ 287.56 $ 525.23
Book value of equity $ 5,238.77 $ 6,105.55
Book value of debt $ 10,360.00 $ 12,594.14
Do you have operating lease commitments?
Cash and cross holdings $ 3,794.48 $ 5,004.25
Non-operating assets $ 0.00 $ 0.00
Minority interests $ 0.00 $ 0.00
Number of shares outstanding =
Current stock price =
Effective tax rate = 25.88% 25.77% 16.49%
Marginal tax rate =
Lease commitments
Year 1 172.5 NA
Year 2 139.4 NA
Year 3 145.2 NA
Year 4 156.5 Copy into operating NA
Year 5 151.2 lease worksheet NA
Beyond year 5 943.63 NA

Current year's lease expense $ 107.00

$ 75,872.00
$ 2,404.00
$ 24,171.00
$ 276.00

64
G&A 630.29 286.14 426.61 770.76
Marketing Costs 2369.47 1128.78 1219.73 2460.42
Content Costs 9967.54 4703.01 5876.21 11140.74

Content Costs (Cash Flows) 13043 6020.47 6322.85 13345.38

65
Yes/No Book or Market Val ERP choices Cost of debt Synthetic ratin Beta Rating is
Yes B Will input Direct input 1 Direct input Aaa/AAA
No V Country of incorporati Synthetic ratin 2 Single Business(US) Aa2/AA
Operating countries Actual rating Single Business(GlobaA1/A+
Operating regions Multibusiness(US) A2/A
Multibusiness(Global)A3/A-
Baa2/BBB
Ba1/BB+
Ba2/BB
B1/B+
B2/B
B3/B-
C2/C
Ca2/CC
Caa/CCC
D2/D

66