kpit valuation

8/11/2019 KPIT valuation

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Consolidated Balance Sheet

Amount(million Rs.)

March 31, 2011 March 31, 2012 March 31, 2013

EQUITY AND LIABILITIES

Shareholders\ funds(a) Share capital 175.73 355.89 385.63(b) Reserves and surplus 5,853.57 6,768.48 9,975.38

6,029.30 7,124.36 10,361.01

Share application money pending allotment 2.61 1.05 1.41Minority interest 8.74 326.01 270.24Total ShareHolder's equity 6,031.91 7,125.42 10,362.42

Non-current liabilities 0.00 0.00 0.00a)Long-term borrowings 115.07 822.20 1,459.21b)Other long term liabilities 106.99 263.98 0.82c)Long term provisions 51.23 103.23 142.25d)Deferred tax liabilities (Net) 56.81 7.74 0.00

Total Non Current Liability 330.10 1,197.15 1,602.29

Current liabilities 0.00 0.00 0.00a)Short-term borrowings 815.79 1,400.05 1,753.35b)Trade payables 942.45 1,756.54 1,199.18c)Other current liabilities 758.62 1,063.08 1,948.89d)Short-term provisions 199.60 494.48 695.17

Total Current Liability 2,716.46 4,714.14 5,596.60

Total EQUITY AND LIABILITIES 9,087.21 13,362.72 17,831.54

ASSETS 0.00 0.00 0.00Non-current assets 0.00 0.00 0.00a)Fixed assets 0.00 0.00 0.00i))Tangible fixed assets 890.81 1,338.83 1,384.94II)Intangible fixed assets 372.51 328.81 377.29iii)Capital work-in-progress 280.58 92.43 58.78iv)Intangible assets under development 35.90 92.62 183.60

Total Fixed Assets 1,579.80 1,852.69 2,004.61

b)Goodwill (on consolidation) 1,299.91 3,622.54 4,423.43c)Non-current investments 0.00 217.46 117.55d)Deferred tax assets (net) 1.84 35.03 69.17e)Long term loans and advances 755.05 617.20 1,138.12f)Other non-current assets 26.63 34.35 36.82

Total Non Current Assets 3,663.22 6,379.27 7,789.70

Current assets 0.00 0.00 0.00a)Current investments 476.50 364.70 2,036.46b)Inventories 0.00 0.00 0.00c)Trade receivables 2,288.48 4,380.24 4,672.80(d) Cash and bank balances 2,079.99 1,472.98 1,920.95


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(e) Short-term loans and advances 329.73 601.95 593.47(f ) Other current assets 249.28 163.58 818.16

Total Current Assets 5,423.98 6,983.45 10,041.84

Total Assets 9,087.21 13,362.72 17,831.54


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March 31, 2014

370.99

12,365.38

12,736.37

14.84

0.00

12,751.21

0.00

1,300.52

233.16

0.00

1,533.68

0.00

3,089.34

1,020.57

2,258.95

580.36

6,949.22

21,234.11

0.000.00

0.00

1,418.18

720.00

22.67

2,160.86

5,994.10

117.55

289.25

671.87

103.15

9,336.77

0.00

1,741.29

34.26

6,743.01

1,907.89


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743.94

726.94

11,897.34

21,234.11


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Consolidated Statement of Profit and Loss

Amount(million Rs.)

2011 2012 2013

Revenue from operations 9870.48 15000.12 22386.28Sale of services 0.00 0.00 0.00

Sale of products 0.00 0.00 0.00Less: Excise duty 0.00 0.00 0.00

Sale of products&Services (net) 9870.48 15000.12 22386.28Other income 67.40 138.24 117.38Total revenue 9937.88 15138.36 22503.66

Expenses 0.00 0.00 0.00Cost of materials consumed 0.00 0.00 0.00Depreciation and amortization 411.25 444.86 471.51Employee benefits expense 5299.53 7717.84 11408.06Interest Expense 38.46 62.95 139.93Net gain/loss foreign currency translation -0.67 10.28 1.58Finance costs 37.79 73.23 141.51

Other expenses 3086.74 5116.53 7622.30Total expenses 8835.31 13352.45 19643.38

EBITDA 1552.28 2293.71 3471.72

EBIT 1141.04 1848.86 3000.21

Exceptional items 0.00 100.45 -13.05EBT and after exceptional item 1102.58 1886.36 2847.24

Tax expenses: 0.00 0.00 0.00Current tax 206.44 472.43 859.22Excess provision in respect of earlier years 0.00 32.50 -7.87

MAT credit entitlement -55.43 -25.70 -39.95Deferred tax charge 3.84 -42.55 -45.79

Total TAX Expense 154.86 436.68 765.60

Profit after tax, but before Minority Interest and Share of Profit

in Associate 947.72 1449.67 2081.63

Less: Profit attributable to minority interests (Refer note 41(2)) 1.91 31.46 86.14Add : Share of profit/Loss in associate (Refer note 41(3)) 0.00 35.34 -5.43Profit for the year 945.82 1453.54 1990.05

Earnings per equity share (face value per share `2 each)

Basic 5.58 8.19 10.86

Diluted 5.49 8.08 10.56

Note:

Total outstanding shares for common equity 169.42 177.39 183.18

Total outstanding shares for diluted equity 172.3 179.93 188.48

Effective tax rate 14% 23% 27%

Average Effective tax rate


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Dividends paid 61.5 124.56 173.53


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2014

26915.72

0.00

27.39-2.72

26940.40

328.97

27269.36

0.00

25.72

539.53

13804.03

181.99

75.69

257.68

9334.48

23961.44

4029.45

3489.91

122.41

3430.33

0.00

1159.42

0.00

0.00-218.59

940.82

2489.51

0.00

0.00

2489.50

13.3

12.95

187.19

192.25

27%

23%


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213.47


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Consolidated Cash Flow Statement

PARTICULARS

2011 2012`

A] CASH FLOW FROM OPERATING ACTIVITIES

Net profit / ( loss) before tax 1102.58 1886.35Adjustments for 0.00 0.00

(Profit) / loss on sale of fixed assets (net) 2.06 0.55

Depreciation / Amortization / Diminution 411.25 444.86

Expense on Employee Stock Option Schemes 0.37 3.56

Interest paid 37.79 73.24

Interest income -31.67 -17.19

Dividend income -33.94 -37.04Provision for diminution in value of investments 0.00 0.00Exchange differences on translation of foreign currency cash -30.71 20.30and cash equivalents 0.00 0.00Unrealised foreign exchange (Gain) / Loss 9.51 -128.46Profit on sale of Business Assets 0.00 -100.45

Total adjustment 364.66 259.37

Operating Profit before working capital changes 1467.24 2145.72

Adjustments for changes in working capital: 0.00 0.00

Increase / (Decrease) in Other Long Term Liabilities 41.10 -38.95Increase / (Decrease) in Long Term Provisions 9.53 -30.30Increase / (Decrease) in Trade Payables 350.82 514.92Increase / (Decrease) in Other Current Liabilities 162.42 0.65Increase / (Decrease) in Short Term Provisions 15.41 94.77

(Increase) / Decrease in Long term Loans and Advances -4.70 -45.07(Increase) / Decrease in Other Non Current Asset -3.24 -7.68(Increase) / Decrease in Inventories 0.00 0.00(Increase) / Decrease in Trade Receivables -816.21 -1438.41(Increase) / Decrease in Short term Loans and Advances -176.55 -10.89(Increase) / Decrease in Other Current Assets -152.11 91.21Total Working capital (Increase)/Devrease -573.51 -869.75

Cash generated from operations 893.73 1275.96

Contribution to / (Utilisation from) Community Foundation Reserve and Employee Welfa -1.32 -3.05Taxes Paid -249.17 -268.38

Net cash from operating activities 643.24 1004.53

B] CASH FLOW FROM INVESTING ACTIVITIES 0.00 0.00

Purchase of Fixed Assets -422.11 -608.98

Proceeds from Sale of Fixed Assets 2.63 6.04

Investment in Equity Shares of Subsidiaries -462.89 -2088.03

Investment in Equity Shares of Assosiate 0.00 -98.15Purchase of shares from minority shareholders 0.00 0.00

Investment in Preference Shares of Subsidiary - 0.00 -278.13


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(Purchase)/Sale of Mutual Fund Investments 270.48 111.81

Proceeds from Sale of Business Assets 0.00 64.99

Loan (given to) / repaid by Employee Welfare trust -156.84 3.00

Interest received 21.16 28.81

Dividend received from Mutual Fund Investments 33.94 37.04

Fixed Deposit with banks (net) having maturity over three months 38.66 -6.37

Net Cash from / (used in) investing activities-674.98 -2827.98

0.00 0.00

C] CASH FLOW FROM FINANCING ACTIVITIES 0.00 0.00

Proceeds from Long term loan from banks -94.49 825.99

Repayment of Long term loan from banks 0.00 0.00

Proceeds from Long term loan from other than banks 0.00 0.00

Repayment of Long term loan from other than banks -131.01 -218.89

Proceeds from issue of Share Capital and application money 1233.70 65.01

Share Issue expenses for Preferential Allotment -30.38 0.00

Proceeds from Working Capital loan (net) 128.16 595.79

Proceeds from KPIT shares issued by EWT 0.00 0.00

Proceeds/(Repayment) of Short-Term Borrowings 39.36 -42.97Dividend paid including corporate dividend tax -64.21 -71.54

Interest and finance charges -38.14 -69.33

Net cash from /(used in) financing activities 1043.00 1084.06

D] Exchange differences on translation of foreign currency 30.71 -20.30

cash and cash equivalents 0.00 0.00

Net Increase / (Decrease ) in Cash and cash equivalents(A + B+ C+ D ) 1041.97 -759.69

Cash & cash equivalents at close of the year 2079.99 1466.61

Cash & cash equivalents at beginning of the year 1000.86 2079.99Add : Cash & cash equivalents on acquisition of subsidiaries 37.16 146.30Cash Surplus / (deficit) for the year

1041.97 -759.69


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2013 2014

2847.23 3430.330.00 0.00

0.65 -0.45

471.51 539.53

0.00 0.00

141.51 181.99

-17.91 -30.02

-54.26 -127.89

94.48 0.00

-4.48 3.63

0.00 0.00

-113.22 176.52

-81.43 -122.41

436.84 620.91

3284.08 4051.23

0.00 0.00

-2.15 0.00

39.03 90.90

147.50 -178.75

21.23 417.23

30.68 -11.36

-80.21 57.694.93 -69.83

0.00 -34.26

-440.23 -2048.60

-143.95 -142.74

-659.66 189.66

-1082.84 -1730.05

2201.23 2321.18

0.00 0.00

-997.77 -1291.34

1203.46 1029.84

0.00 0.00

-700.67 -689.04

2.85 5.13

-1113.40 -1461.89

0.00 0.00

-141.91 -270.24

0.00 0.00


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-1671.77 295.13

81.43 122.41

-8.00 0.00

18.08 27.37

54.26 127.89

-23.96 -64.78

-3503.08 -1908.030.00 0.00

0.00 0.00

1090.08 191.25

-111.94 -181.17

106.75 -100.23

-31.11 -38.38

1705.98 75.02

-43.74 0.00

278.69 1176.02

0.00 43.86

0.00 0.00

-144.83 -196.76

-128.24 -178.93

2721.62 790.68

4.48 -3.63

0.00 0.00

426.49 -91.14

1893.10 1812.79

1466.61 1893.10

0.00 10.83

426.49 -91.14


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2011 2012

Profit Margin

EBITDA (%) 15.73% 15.29%

EBIT (%) 11.56% 12.33%

Pre - Tax Margins (%) 11.17% 12.58%

PAT (%) 9.60% 9.66%EPS (Rs) 5.58 8.19

Valuation

P / E (x) (considering Current Market Price) Rs. 148 26.51 18.06

Earnings growth (%) 33.93% 46.78%

Yields

Earnings yield (%) 4% 6%

Enterprise Value Ratio's

Current Market Cap (Million Rupess) 28861.00 28861.00

Enterprise value (Rs m) (current) 30825.92 29511.78

Enterprise value / share (x) 181.95 166.37

EV / EBITDA (x) 19.86 12.87

EV / EBIT (x) 27.02 15.96

Performance Ratio's

RoE (%) 19% 22%

RoCE (%) 8% 9%

Return on Assets 10% 11%

Liquidity Ratios

Current ratio (x) 2.00 1.48

Quick Ratio (Ex. Inventories) 2.00 1.48

Acid Test Ratio (Ex. Inventories and AR) 1.15 0.55

Cash Ratio 0.94 0.39

Balance sheet and Leverage Ratio's

Debt ratio 0.04 0.09

Debt / Capital 0.05 0.14Debt - to - Equity Ratio 0.05 0.17

Balance Sheet Structure

Fixed Assets 17% 14%

Investments 5% 4%

Cash 23% 11%

Net current assets (excluding cash) 37% 41%

Total 82% 70%


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2013 2014

15.51% 14.96%

13.40% 12.95%

12.72% 12.73%

9.30% 9.24%10.86 13.30

13.62 11.13

32.58% 22.42%

7% 9%

28861.00 28861.00

29322.73 29468.37

160.08 157.42

8.45 7.31

9.77 8.44

23% 22%

10% 12%

11% 12%

1.79 1.71

1.79 1.71

0.96 0.74

0.71 0.53

0.09 0.07

0.13 0.110.15 0.12

11% 10%

12% 9%

11% 9%

46% 47%

80% 75%


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Sales

26,916

-

Cost of Sales

Earnings

Available

26 2,553

-

OperatingExpense divided by

13,880

-

Interest Expense Sales

182 26,916

-

Tax Expense

941

-

Others

9,334

Sales

26,916

Current Assets

11,897 divided by

+

Net Fixed Assets(PPE)

Total Assets

9,337 21,234

Total Liabilities

8,483

Current Liabilities

6,949+

+

Long Term Debt

1,534Stockholder

Equity (SE)

12,751

DuPont Analys

IncomeStatement

BalanceSheet


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Net Profit Margin

9.5%

multiplied by

Return on Total Assets(ROA)

12.0%

Total AssetTurnover

1.27

multiplied by

Total Liab + SE =Total Assets

21,234

divided by

Financial Leverage

multiplier

1.67

is

Return onCommon Equity

(ROE)

20.0%


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Common stockequity

12,751


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21/49

Master Input SheetDo you want to capitalize R&D expenses? No

Do you want to convert operating leases to debt? No

Do you want to normalize operating income? No

InputsFrom Current Financials

Current EBIT = INR 3,489.91

Current Interest Expense = INR 181.99

Current Capital Spending INR 156.24

Current Depreciation & Amort'n = INR 539.53

Tax rate (for computing after-tax operating income) = 27.43%

Marginal tax rate = 33.99%

Current Revenues = INR 27,269.36

Current Non-cash Working Capital = INR 5,756.70

Chg. Working Capital = INR 2,283.08

Book Value of Debt = INR 4,389.86

Book Value of Equity = INR 12,751.21

Cash & Marketable Securities = INR 3,649.19

Value of Non-operating Assets = INR 0.00

Minority Interests (this is a liability) = $0.00

Price to Book Ratio of sector with minority holdings =

Market Data for your firm

Is your stock currently traded? Yes

If yes, enter the following:

Current Stock Price = INR 148.00

Number of shares outstanding = 187.19

Market Value of Debt = INR 4,389.86

If no, enter the following

Would you like to use the book value debt ratio? NoIf no, enter the debt ratio to use in valuation 35%

General Market Data

Long Term Treasury bond rate= 8.60%

Mature Market Equity Premium = 5.00%

Country Equity Risk Premium = 8.30%

Exchange Rate for fiscal year items (BR/$) = R$ 1.00

Exchange Rate for currrent price conversions = R$ 1.00

Ratings

Do you want to estimate the firm's synthetic rating = yes

If yes, choose the type of firm 2

If not, what is the current rating of the firm? AAA

Enter the cost of debt associated with the rating = 9.10%

Options

Do you have equity options (management options, warrants) outstanding? 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 estimated value? P


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Valuation Inputs

High Growth Period

Length of high growth period = 10

Beta to use for high growth period for your firm= 0.41

Lambda to use for your firm (for both high growth and stable growth) = 0

Do you want to keep the debt ratio computed from your inputs? Yes

If yes, the debt ratio that will be used to compute the cost of capital is 13.68%

If no, enter the debt ratio that you would like to use in the high growth period 14.00%

Do you want to keep the existing ratio of working capital to revenue? Yes

If yes, the working capital as a percent of revenues will be 21.11%

If no, enter the ratio of working capital to revenues to use in analysis 12%

Do you want to compute your growth rate from fundamentals? Yes

If no, enter the expected growth rate in operating income for high growth period 15%

If yes, the inputs to the fundamental growth calculation (based upon your inputs) are

Return on Capital = 18.62%

Reinvestment Rate = 26.85%

Do you want to change these inputs? No

Return on Capital = 18.62%


Do you want me to gradually adjust your high growth inputs in the second half? Yes

Stable Growth Period

Growth rate during stable growth period = 5.00%

Beta to use in stable growth period = 0.80

Country Risk premium for equity in stable growth period = 8.30%

Debt Ratio to use in stable growth period = 13.68%

Pre-tax cost of debt in stable growth period = 6.50%

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 based on fundament Yes

If yes, enter the return on capital that the firm will have in stable growth 14.00%

If no, enter capital expenditure as % of depreciation in stable growth 29%


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! Yes or No Go to R&D Converter

! Yes or No Go to Operating lease converter

Go to Earnings Normalizer

! If negative, go back and choose to normalize earnings.

no

no

Previous year-end

INR 22,503.66

Previous year-end

INR 3,212.57

INR 10,362.42

INR 3,957.41

INR 0.00

Average maturity of debt 3

R$ 1.00

! If yes, use the rating estimator worksheet that is attached


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(in percent)


25/49

0.145

0.131


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Rupees DollarNormalized EBIT (before adjustments) INR 3,489.91 INR 3,489.91

Adjusted EBIT = INR 3,489.91 INR 3,489.91

Adjusted Interest Expense = INR 539.53 INR 539.53

Adjusted Capital Spending INR 156.24 INR 156.24

Adjusted Depreciation & Amort'n = INR 539.53 INR 539.53

Tax Rate on Income = 27.43% 27.43%

Marginal tax rate = 33.99% 33.99%

Current Revenues = INR 27,269.00 INR 27,269.00

Current Non-cash Working Capital = INR 3,041.00 INR 3,041.00

Chg. Working Capital = INR 2,283.08 INR 2,283.08

Adjusted Book Value of Debt = INR 7,198.00 INR 7,198.00

Adjusted Book Value of Equity = INR 10,362.42 INR 10,362.42

Invested Capital INR 13,603.00 INR 13,603.00

Length of High Growth Period = 10 Forever

Growth Rate = 5.00% 5.00%

Debt Ratio used in Cost of Capital Calculation= 13.68% 13.68%

Beta used for stock = 0.41 0.80Lambda used for stock = 0.00 0.00

Riskfree rate = 8.60% 8.60%

Mature Market Equity Premium = 5.00% 5.00%

Country Risk Premium = 8.30% 8.30%

Cost of Debt = 9.10% 6.50%

Tax Rate for computing income= 27.43% 33.99%

Marginal tax rate = 33.99% 33.99%

Return on Capital = 18.62% 15.00%

Reinvestment Rate = 26.85% 35.71%

Output from the progr

Cost of Equity = 10.65%Equity/(Debt+Equity ) = 86.32%

After-tax Cost of debt = 6.01%

Debt/(Debt +Equity) = 13.68%

Cost of Capital = 10.01%

Intermediate Output

Expected Growth Rate 5.00%

Working Capital as percent of revenues = 21.11% (in percent)

The FCFF for the high growth phase are shown below (upto 10 years)

Current 1 2

Expected Growth Rate 5.00% 5.00%

Cumulated Growth 105.00% 110.25%Reinvestment Rate 26.85% 26.85%

EBIT * (1 - tax rate) INR 2,532.75 INR 2,659.39 INR 2,792.35

- (CapEx-Depreciati -INR 383.29 INR 426.33 INR 447.64

-Chg. Working Capi INR 2,283.08 INR 287.83 INR 302.22

Free Cashflow to Fir INR 632.96 INR 1,945.23 INR 2,042.49

Cost of Capital 10.01% 10.01%

Cumulated Cost of Capital 1.1001 1.2103

Present Value $1,768 $1,688

Growth Rate in Stable Phase = 5.00%

Input Sum


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Reinvestment Rate in Stable Phase = 33.33%

FCFF in Stable Phase = $2,626.73

Cost of Equity in Stable Phase = 12.60%

Equity/ (Equity + Debt) = 86.32%

AT Cost of Debt in Stable Phase = 4.29%

Debt/ (Equity + Debt) = 13.68%

Cost of Capital in Stable Phase = 11.46%

Value at the end of growth phase = $40,639.82

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 =

Market Value of Equity =

Value of Equity in Options =

Value of Equity in Common Stock =

Market Value of Equity/share =

Year 2014 Market Value of Equity/share in BR =

Year 1 2 3EBIT (1-t) 2659 2792 2932- Reinvestment 714 750 787FCFF 1945 2042 2145

Val


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am

3 4 5 6 7 8 9

5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

115.76% 121.55% 127.63% 134.01% 140.71% 147.75% 155.13%26.85% 26.85% 26.85% 28.15% 29.45% 30.74% 32.04%

INR 2,931.97 INR 3,078.57 INR 3,232.50 INR 3,394.12 INR 3,563.83 INR 3,742.02 INR 3,929.12

INR 470.03 INR 493.53 INR 518.20 INR 588.09 INR 663.68 INR 745.35 INR 833.54

INR 317.33 INR 333.20 INR 349.86 INR 367.35 INR 385.72 INR 405.01 INR 425.26

INR 2,144.61 INR 2,251.84 INR 2,364.44 INR 2,438.68 INR 2,514.43 INR 2,591.66 INR 2,670.33

10.01% 10.01% 10.01% 10.30% 10.59% 10.88% 11.17%

1.3315 1.4649 1.6116 1.7777 1.9660 2.1800 2.4236

$1,611 $1,537 $1,467 $1,372 $1,279 $1,189 $1,102

ary


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INR 14,030.25

INR 15,044.02

INR 29,074.27

INR 3,649.19

INR 32,723.46

INR 4,389.86

INR 0.00

INR 28,333.60

INR 0.00

INR 28,333.60

INR 151.36

INR 151.36

4 5 6 7 8 9 103079 3232 3394 3564 3742 3929 4126827 868 955 1049 1150 1259 1375

2252 2364 2439 2514 2592 2670 2750

ation


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10 Terminal Year

5.00%

162.89%33.33%

INR 4,125.58 INR 3,940.09

INR 928.67 INR 844.52

INR 446.52 INR 468.85

INR 2,750.39 INR 2,626.73

11.46%

2.7014

$1,018


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Normalizing EarningsApproach used to normalize earnings = 1

If historical average,

Average Earnings before interest and taxes = 970

If historical average ROC,

Historical average pre-tax return on capital = 22%

If sector margin

Pre-tax Operating Margin for Sector = 10.96% ! Look at industry averag

Normalized Earnings before interest and taxes = $970.00

Worksheet for normalization (Last 5 years of data)

-5 -4 -3 -2 -1

Revenues 6571 10231 9133 8342 9983

EBIT 1243 1740 794 546 527

Operating Margin 18.92% 17.01% 8.69% 6.55% 5.28%

Net Cap ex 282 -112 -27 151.76 196.02

Non-cash WC 26.07 305.82 915.03 -222.74 1502.9

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 Liabilities 259.96 334.83 719.9 1429.07 2113.12

Net Cap ex as % of EBIT (1-t) 0.00%

Non-cash WC as % of Revenue 5.71%

Normalized reinvestment = $0.01


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Total

44260

4850

10.96%

490.78

2527.08


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R & D ConverterThis spreadsheet converts R&D expenses from operating to capital expenses. It makes the appropriate adjustments to ope

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 3 ! If in doubt, use the lookup table belo

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 amortizatioDo not input numbers in the first column (Year). It will get automatically updated based on the input above.

Year & 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

0 211.00

0 89.00

0

0

0

0

0

Output

Year &D Expense Unamortized portion Amortization this year

Current 1594.00 1.00 1594.00

-1 1026.00 0.67 684.00 $342.00

-2 698.00 0.33 232.67 $232.67

-3 399.00 0.00 0.00 $133.00

0 211.00 0.00 0.00 $0.00

0 89.00 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 $0.000 0.00 0.00 0.00 $0.00

Value of Research Asset = $2,510.67 $707.67

Amortization of asset for current year = $707.67

Adjustment to Operating Income = $886.33 ! A positive number indicates an increase in operating income (a

Tax Effect of R&D Expensing #########

Look Up Table for Amort izat ion Per iods

Industry Name Amortization Period

Advertising 2Aerospace/Defen 10 Non-technological Servic 2 years

Air Transport 10 Retail, Tech Service 3 years

Aluminum 5 Light Manufacturing 5 years

Apparel 3 Heavy Manufacturing 10 years

Auto & Truck 10 Research, with Patenting 10 years

Auto Parts (OEM 5 Long Gestation Period 10 years

Auto Parts (Repl 5

Bank 2

Bank (Canadian) 2

Bank (Foreign) 2


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Bank (Midwest) 2

Beverage (Alcoh 3

Beverage (Soft D 3

Building Material 5

Cable TV 10

Canadian Energy 10

Cement & Aggre 10

Chemical (Basic) 10

Chemical (Divers 10

Chemical (Specia 10

Coal/Alternate E 5

Computer & Peri 5

Computer Softwa 3

Copper 5

Diversified Co. 5

Drug 10

Drugstore 3

Educational Servi 3

Electric Util. (Ce 10

Electric Utility ( 10

Electric Utility ( 10Electrical Equip 10

Electronics 5

Entertainment 3

Environmental 5

Financial Service 2

Food Processing 3

Food Wholesaler 3

Foreign Electron/ 5

Foreign Telecom. 10

Furn./Home Furn 3

Gold/Silver Mini 5

Grocery 2

Healthcare Info S 3

Home Appliance 5

Homebuilding 5

Hotel/Gaming 3

Household Produ 3

Industrial Service 3

Insurance (Divers 3

Insurance (Life) 3

Insurance (Prop/ 3

Internet 3

Investment Co. ( 3

Investment Co. ( 3

Investment Co. (I 3Machinery 10

Manuf. Housing/ 5

Maritime 10

Medical Services 3

Medical Supplies 5

Metal Fabricatin 10

Metals & Mining 5

Natural Gas (Dist 10

Natural Gas (Div 10


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Newspaper 3

Office Equip & S 5

Oilfield Services/ 5

Packaging & Con 5

Paper & Forest P 10

Petroleum (Integr 5

Petroleum (Produ 5

Precision Instrum 5

Publishing 3

R.E.I.T. 3

Railroad 5

Recreation 5

Restaurant 2

Retail (Special Li 2

Retail Building S 2

Retail Store 2

Securities Broker 2

Semiconductor 5

Semiconductor C 5

Shoe 3

Steel (General) 5Steel (Integrated) 5

Telecom. Equip 10

Telecom. Service 5

Textile 5

Thrift 2

Tire & Rubber 5

Tobacco 5

Toiletries/Cosme 3

Trucking/Transp. 5

Utility (Foreign) 10

Water Utility 10


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ating income, net

n period

d to reported EBIT)


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Operating Lease ConverterInputs

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 beyon 448.00$

Output

Pre-tax Cost of Debt = 5.50% ! 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) = $2,768.38 ! This is the

Reported Debt = $7,105.46 ! This is the

Number of years embedded in yr 6 est 3 ! I use the avto estimate t

Converting Operating Leases into debt

Year Commitment resent Value

1 156.00$ $147.87

2 143.00$ $128.48

3 122.00$ $103.90

4 109.00$ $87.99

5 97.00$ $74.22

6 and beyon 149.33$ $308.27 ! Commitment beyond year 6 converted into an annuity for ten years

Debt Value of leases = 850.71$

Restated Financials

Depreciation on Operating Lease Asset =

Adjustment to Operating Earnings =

Adjustment to Total Debt outstanding =


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EBIT reported in the current income statement

nterest-bearing debt reported on the balance sheet

erage lease expense over the first five yearse number of years of expenses in yr 6

$106.34 ! I use straight line depreciation

$46.79 ! PV of operating leases * Pre-tax cost of debt

850.71$


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Inputs for synthetic rating estimationEnter the type of firm = 2 (Enter 1 if large manufacturing firm, 2 if smaller or riski

Enter current Earnings before interest and taxes (EBIT) = $3,489.91

Enter current interest expenses = $181.99

Enter current long term government bond rate = 8.60%

Output

Interest coverage ratio = 19.18

Estimated Bond Rating = AAA

Estimated Default Spread = 0.50%

Estimated Cost of Debt = 9.10%

For large manufacturing firms For financial service fi

If interest coverage ratio is If long term interest cov

> to Rating is Spread is greater than

-100000 0.199999 D 15.00% -100000

0.2 0.649999 C 12.00% 0.05

0.65 0.799999 CC 10.00% 0.1

0.8 1.249999 CCC 8.50% 0.2

1.25 1.499999 B- 5.50% 0.3

1.5 1.749999 B 5.25% 0.41.75 1.999999 B+ 4.25% 0.5

2 2.2499999 BB 4.00% 0.6

2.25 2.49999 BB+ 3.50% 0.75

2.5 2.999999 BBB 2.00% 0.9

3 4.249999 A- 1.50% 1.2

4.25 5.499999 A 1.25% 1.5

5.5 6.499999 A+ 1.00% 2

6.5 8.499999 AA 0.75% 2.5

8.50 100000 AAA 0.50% 3

For smaller and riskier firms

If interest coverage ratio isgreater 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%


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r firm, 3 if financial service firm)

(Add back only long term interest expense for financial firms)

(Use only long term interest expense for financial firms)

ms

to Rating is

0.049999 D

0.099999 C

0.199999 CC

0.299999 CCC

0.399999 B-

0.499999 B0.599999 B+

0.749999 BB

0.899999 BB+

1.199999 BBB

1.49999 A-

1.99999 A

2.49999 A+

2.99999 AA

100000 AAA


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Spread is Operating Income Decline

15.00% 15.00%

12.00% 10.00%

10.00% 8.00%

8.50% 6.00%

5.50% 5.00%

5.25% 4.50%4.25% 4.00%

4.00% 3.00%

3.50% 2.50%

2.00% 1.50%

1.50% 1.30%

1.25% 1.20%

1.00% 1.15%

0.75% 0.90%

0.50% 0.70%


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EBIT (1 -t) = $3,940.09

Expected growth rate in perpetuity = 5.00%

Cost of capital = 11.46%

Return on capital = 18.62%


Terminal Value = $44,589.46

Growth Rate Reinvestment Rate FCFF Terminal value

0% 0.00% $3,940 $34,371

1% 5.37% $3,728 $35,633

2% 10.74% $3,517 $37,163

3% 16.11% $3,305 $39,053

4% 21.48% $3,094 $41,450

5% 26.85% $2,882 $44,589


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Industry Name Number of firms Levered Beta Unlevered Beta Std Dev: Eq Market D/E Market Debt

Advertising 30 1.43 0.87 80.69% 126.31% 55.81%

Aerospace/Defense 66 1.27 1.20 47.75% 27.21% 21.39%

Air Transport 44 1.15 0.86 60.46% 78.21% 43.89%

Apparel 53 1.14 0.93 68.33% 44.32% 30.71%

Auto & Truck 20 1.49 0.76 34.92% 183.75% 64.76%

Auto Parts 54 1.56 1.10 52.04% 94.19% 48.50%

Bank 477 0.71 0.47 27.49% 91.52% 47.79%

Bank (Canadian) 8 0.86 0.83 17.85% 10.36% 9.39%

Bank (Midwest) 39 0.91 0.66 27.13% 68.98% 40.82%

Beverage 41 0.95 0.85 54.53% 19.02% 15.98%

Biotechnology 108 1.25 1.27 69.85% 9.98% 9.08%

Building Materials 52 1.39 0.80 61.96% 103.11% 50.76%

Cable TV 25 1.56 0.95 44.91% 88.77% 47.03%

Canadian Energy 12 1.22 0.99 33.84% 35.70% 26.31%

Chemical (Basic) 19 1.26 1.10 37.09% 29.11% 22.55%

Chemical (Diversified) 33 1.21 1.10 39.47% 26.70% 21.07%

Chemical (Specialty) 88 1.18 0.98 57.61% 35.74% 26.33%

Coal 18 1.98 1.43 49.41% 48.02% 32.44%

Computer Software/Svcs 322 1.22 1.33 71.38% 7.77% 7.21%

Computers/Peripherals 125 1.29 1.39 82.96% 18.36% 15.51%Diversified Co. 113 1.25 0.60 48.51% 160.98% 61.68%

Drug 342 1.16 1.14 96.99% 14.51% 12.67%

E-Commerce 54 1.50 1.76 57.18% 11.43% 10.26%

Educational Services 34 0.84 0.89 52.81% 2.22% 2.18%

Electric Util. (Central) 24 0.82 0.49 21.09% 107.83% 51.88%

Electric Utility (East) 26 0.74 0.50 22.24% 73.30% 42.30%

Electric Utility (West) 16 0.79 0.50 18.64% 90.70% 47.56%

Electrical Equipment 83 1.37 1.26 57.31% 23.53% 19.05%

Electronics 173 1.31 1.23 79.26% 45.62% 31.33%

Entertainment 84 1.66 1.09 50.24% 79.23% 44.21%

Entertainment Tech 33 1.45 2.33 70.79% 11.54% 10.35%

Environmental 79 1.11 0.80 87.19% 49.86% 33.27%

Financial Svcs. (Div.) 296 1.27 0.45 62.78% 261.38% 72.33%

Food Processing 109 0.80 0.65 40.11% 35.15% 26.01%

Food Wholesalers 18 0.73 0.54 46.75% 59.50% 37.30%

Foreign Electronics 10 1.18 1.40 25.56% 42.29% 29.72%

Furn/Home Furnishings 34 1.29 0.94 43.85% 65.75% 39.67%

Grocery 14 0.84 0.78 27.93% 13.91% 12.21%

Healthcare Information 29 1.05 1.04 50.75% 19.87% 16.58%

Heavy Construction 14 1.48 1.74 42.91% 9.49% 8.67%

Homebuilding 32 1.36 0.65 44.28% 162.15% 61.85%

Hotel/Gaming 68 1.70 0.84 64.47% 142.62% 58.78%

Household Products 26 1.08 0.95 37.34% 23.21% 18.84%

Human Resources 31 1.44 1.61 43.81% 18.42% 15.55%

Industrial Services 167 1.20 0.98 63.50% 43.98% 30.55%Information Services 34 1.22 1.24 37.26% 21.88% 17.95%

Insurance (Life) 35 1.17 1.27 50.74% 21.71% 17.84%

Insurance (Prop/Cas.) 78 0.91 0.92 26.47% 1.89% 1.85%

Internet 208 1.41 1.66 86.31% 4.07% 3.91%

Investment Co. 17 0.83 0.90 18.96% 14.84% 12.92%

Investment Co.(Foreign) 16 1.31 1.36 28.87% 5.16% 4.90%

Machinery 124 1.39 1.08 48.66% 55.77% 35.80%

Manuf. Housing/RV 18 1.32 1.38 47.67% 50.13% 33.39%

Maritime 56 1.30 0.52 37.08% 185.73% 65.00%


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Medical Services 160 1.10 0.90 86.84% 54.66% 35.34%

Medical Supplies 252 1.17 1.13 72.38% 13.28% 11.72%

Metal Fabricating 35 1.56 1.55 60.00% 25.44% 20.28%

Metals & Mining (Div.) 78 1.69 1.48 97.21% 21.94% 17.99%

Natural Gas (Div.) 34 1.20 0.85 35.65% 58.57% 36.94%

Natural Gas Utility 25 0.69 0.43 25.71% 85.33% 46.04%

Newspaper 16 1.16 0.72 34.32% 86.43% 46.36%

Office Equip/Supplies 26 1.11 0.84 42.36% 60.35% 37.64%

Oil/Gas Distribution 19 0.89 0.53 36.90% 81.95% 45.04%

Oilfield Svcs/Equip. 112 1.56 1.27 46.34% 42.35% 29.75%

Packaging & Container 33 1.27 0.81 39.90% 84.83% 45.90%

Paper/Forest Products 38 1.20 0.64 48.42% 118.10% 54.15%

Petroleum (Integrated) 25 1.34 1.30 37.35% 14.67% 12.79%

Petroleum (Producing) 188 1.24 0.97 78.27% 37.57% 27.31%

Pharmacy Services 19 0.94 0.81 30.96% 23.50% 19.03%

Power 66 1.63 0.95 71.09% 107.88% 51.90%

Precious Metals 75 1.41 1.37 67.33% 11.77% 10.53%

Precision Instrument 90 1.47 1.59 53.96% 22.65% 18.47%

Property Management 17 1.38 0.46 32.79% 282.91% 73.88%

Publishing 27 1.24 0.62 39.28% 137.13% 57.83%

R.E.I.T. 144 1.35 0.92 36.52% 53.19% 34.72%Railroad 15 1.25 0.99 30.42% 41.53% 29.34%

Recreation 64 1.41 1.01 57.75% 62.58% 38.49%

Reinsurance 11 0.91 1.00 22.33% 11.37% 10.21%

Restaurant 68 1.26 1.09 48.95% 24.97% 19.98%

Retail (Special Lines) 155 1.26 1.22 57.15% 26.07% 20.68%

Retail Automotive 16 1.31 0.93 35.23% 66.88% 40.08%

Retail Building Supply 8 1.01 0.86 24.82% 26.35% 20.85%

Retail Store 38 1.01 0.86 40.30% 30.29% 23.25%

Securities Brokerage 32 1.37 0.37 51.25% 462.27% 82.22%

Semiconductor 122 1.81 2.11 59.20% 13.32% 11.75%

Semiconductor Equip 16 1.78 2.20 43.35% 13.62% 11.98%

Shoe 19 1.23 1.39 39.32% 3.66% 3.53%

Steel (General) 20 1.71 1.53 44.25% 32.18% 24.34%

Steel (Integrated) 14 1.96 1.54 49.03% 64.96% 39.38%

Telecom. Equipment 110 1.49 1.87 75.07% 12.71% 11.28%

Telecom. Services 140 1.43 1.06 82.14% 51.32% 33.91%

Thrift 234 0.66 0.69 31.62% 9.71% 8.85%

Tobacco 12 0.71 0.69 29.69% 8.84% 8.12%

Toiletries/Cosmetics 23 0.95 0.79 51.70% 38.50% 27.80%

Trucking 33 1.17 0.66 38.85% 126.80% 55.91%

Utility (Foreign) 5 1.23 0.85 28.01% 62.82% 38.58%

Water Utility 16 0.86 0.57 35.87% 82.79% 45.29%

Wireless Networking 57 1.54 1.28 58.41% 36.37% 26.67%

Public/Private Equity 10 2.08 0.48 45.59% 391.15% 79.64%

Funeral Services 6 1.41 1.02 29.93% 67.25% 40.21%Market 6870 1.19 0.93 56.57% 48.81% 32.80%


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ROE ROC Effective Tax R Pre-tax OpeAfter-tax Op Net Margin Cap Ex/ Depreciati Non-cash Payout Rati

21.54% 13.01% 18.90% 17.93% 11.95% 2.26% 66.89% -15.13% 7.17%

25.52% 19.53% 24.10% 12.31% 8.31% 3.57% 115.91% -0.61% 12.42%

31.77% 22.00% 23.00% 13.57% 11.05% 0.17% 158.61% -8.01% 9.33%

16.38% 18.05% 17.21% 12.98% 10.18% 2.69% 141.22% 19.55% 8.42%

85.35% 18.80% 24.36% 13.10% 7.96% 0.57% 90.69% 13.27% 8.71%

19.79% 21.81% 19.61% 7.65% 5.56% 0.90% 94.73% 6.44% 17.95%

14.58% NA 25.91% NA NA NA NA NA 36.07%

23.19% NA 15.08% NA NA NA NA NA 46.75%

17.19% NA 26.81% NA NA NA NA NA 54.64%

24.85% 18.98% 16.46% 20.00% 14.75% 5.77% 115.01% 5.16% 23.38%

22.16% 14.78% 3.59% 26.91% 16.90% 8.33% 128.27% 4.60% 0.49%

13.03% 11.35% 18.44% 14.04% 10.51% 2.23% 130.86% 6.64% 14.30%

7.00% 10.91% 22.97% 34.41% 19.49% 3.28% 102.79% -10.57% 11.78%

20.83% 25.35% 27.82% 40.66% 28.84% 9.48% 211.40% -5.37% 11.45%

25.33% 21.96% 19.29% 15.05% 11.97% 6.40% 109.34% 11.16% 16.37%

26.45% 23.67% 25.47% 19.87% 14.14% 5.55% 118.69% 13.88% 19.75%

18.88% 17.93% 18.99% 14.08% 9.75% 2.69% 109.81% 11.64% 17.73%

13.96% 20.13% 10.52% 18.05% 15.76% 4.53% 139.17% 4.69% 20.71%

47.49% 36.64% 12.65% 24.51% 17.24% 8.24% 89.63% -6.37% 10.17%

49.14% 32.96% 9.90% 11.61% 8.78% 3.55% 95.27% -0.69% 6.33%29.12% 10.79% 20.23% 22.39% 17.93% 4.85% 146.86% 91.24% 20.12%

26.23% 22.57% 5.96% 30.15% 22.65% 8.38% 61.72% 10.48% 25.99%

10.10% 12.54% 13.09% 12.69% 8.76% 3.38% 146.25% -14.07% 1.20%

48.89% 46.84% 20.80% 17.36% 11.69% 5.63% 106.44% -11.48% 2.31%

11.46% 10.28% 33.02% 21.86% 14.67% 3.61% 218.97% 5.39% 31.65%

13.38% 11.64% 32.09% 25.85% 17.24% 4.49% 206.28% 5.64% 29.52%

10.89% 11.52% 30.47% 24.38% 16.51% 3.72% 218.34% 1.50% 24.77%

24.82% 20.50% 14.23% 15.75% 11.48% 4.96% 126.55% 12.14% 13.79%

10.63% 13.01% 11.87% 7.57% 5.61% 1.40% 122.53% 12.65% 7.35%

8.08% 9.98% 17.17% 23.75% 15.00% 3.66% 91.06% -0.16% 11.91%

-5.09% 4.51% 13.67% 3.93% 1.77% -1.45% 66.84% -6.03% NA

14.34% 13.67% 15.45% 21.85% 13.42% 3.48% 99.42% 3.48% 22.11%

14.91% 12.33% 17.93% 85.68% 76.59% -22.60% 258.58% 28.75% 22.83%

20.98% 15.64% 21.67% 11.98% 8.59% 2.98% 123.88% 6.15% 14.65%

15.36% 14.62% 27.39% 5.66% 3.75% 0.94% 122.12% 0.94% 11.15%

12.30% 16.90% 37.04% 13.50% 7.43% 1.67% 87.71% 8.53% 9.77%

12.64% 13.85% 23.99% 10.51% 7.04% 1.43% 84.73% 13.15% 13.14%

17.58% 17.38% 32.96% 5.87% 3.81% 1.06% 165.00% -0.29% 6.47%

43.47% 24.69% 16.47% 20.66% 14.16% 7.79% 84.61% 4.58% 3.84%

21.05% 18.45% 34.26% 5.98% 3.85% 2.23% 142.75% 1.17% 3.83%

-63.59% -23.17% 6.13% -16.16% -16.36% -10.34% 72.88% 57.77% NA

17.10% 10.83% 17.97% 22.98% 15.26% 3.26% 330.71% -3.58% 10.47%

21.67% 17.10% 29.87% 21.24% 15.33% 5.90% 94.67% 5.69% 21.58%

16.30% 17.34% 29.77% 5.69% 3.31% 1.20% 81.85% 5.48% 7.33%

19.74% 18.18% 19.26% 11.76% 8.27% 2.03% 134.26% 6.88% 5.16%32.04% 21.20% 20.44% 21.26% 14.72% 5.92% 98.29% -1.64% 5.47%

20.91% NA 25.86% NA NA NA 192725.00% NA 23.35%

20.44% NA 20.26% NA NA NA 38706.98% NA 14.29%

25.60% 26.46% 7.50% 19.23% 13.94% 6.53% 133.62% -6.83% 0.20%

647.73% NA 0.00% NA NA NA 20.00% NA NA

10.46% NA 2.11% NA NA NA 84.21% NA 36.72%

23.51% 17.21% 22.71% 13.72% 9.49% 3.49% 134.95% 16.14% 10.21%

8.90% 9.47% 14.98% 3.83% 2.37% -1.61% 81.33% 5.71% 9.05%

19.95% 12.18% 7.08% 30.66% 29.09% 13.32% 523.30% 7.18% 17.67%


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24.56% 18.25% 18.36% 12.69% 8.16% 2.38% 146.47% -6.66% 0.86%

23.17% 20.34% 12.51% 11.53% 8.54% 3.60% 98.75% 6.59% 15.25%

22.01% 21.33% 20.43% 14.65% 10.22% 2.71% 195.35% 10.84% 10.49%

30.86% 27.62% 9.29% 36.00% 25.33% 5.94% 251.65% 5.81% 10.00%

14.31% 15.08% 24.19% 34.06% 23.75% 9.41% 281.53% -3.94% 13.80%

12.36% 12.02% 24.52% 14.77% 10.36% 2.30% 146.56% 5.17% 30.14%

13.96% 11.21% 23.53% 21.90% 16.06% 2.18% 71.55% 3.05% 9.12%

19.85% 15.81% 22.76% 9.94% 6.92% 1.74% 83.36% 9.33% 10.66%

15.81% 11.69% 9.48% 15.24% 12.24% 4.25% 373.42% -0.45% 39.70%

25.10% 20.50% 22.07% 26.36% 19.65% 8.24% 268.73% 12.70% 6.06%

15.41% 17.06% 24.65% 13.39% 10.04% 1.97% 95.74% 5.96% 12.39%

5.75% 11.21% 13.66% 12.24% 10.31% 0.80% 90.62% 11.37% 28.92%

26.14% 25.61% 33.79% 17.96% 10.45% 5.11% 186.98% 2.22% 14.04%

16.75% 23.41% 13.98% 38.57% 26.43% 6.99% 291.48% 2.89% 5.13%

11.99% 12.17% 21.13% 6.41% 4.13% 1.43% 163.33% 5.33% 6.20%

19.05% 11.71% 6.25% 18.09% 12.74% 2.50% 197.18% 6.96% 0.19%

3.32% 8.54% 5.94% 32.80% 23.79% 9.32% 230.19% 0.02% 19.95%

15.26% 16.76% 14.38% 16.31% 12.59% 4.11% 51.15% 10.13% 4.96%

9.58% 9.81% 19.27% 35.51% 27.99% 4.02% 608.41% -17.86% 23.90%

-66.38% 20.12% 20.73% 17.26% 10.27% 1.30% 89.69% 4.17% 80.61%

8.95% 8.49% 1.21% 18.11% 16.08% 61.19% 607.00% -4.12% 115.46%15.12% 13.91% 30.62% 31.92% 20.60% 7.24% 190.87% -4.11% 14.10%

14.49% 14.02% 19.12% 19.56% 15.62% 4.49% 201.19% -0.80% 21.67%

17.04% NA 8.87% NA NA NA NA NA 12.85%

29.70% 22.15% 20.10% 16.35% 13.16% 4.10% 178.56% -5.11% 21.18%

23.03% 22.65% 23.08% 9.37% 6.06% 1.82% 139.68% 6.30% 9.70%

16.17% 11.67% 34.23% 6.72% 4.31% 1.26% 233.04% 12.86% 1.96%

21.07% 17.82% 28.12% 11.59% 7.31% 2.26% 242.53% 5.07% 14.55%

19.89% 15.19% 25.68% 6.93% 4.47% 1.56% 202.23% 1.53% 11.18%

-11.10% 15.35% 22.16% 33.95% 25.61% -1.40% 166.76% 120.39% 28.02%

22.18% 28.67% 10.48% 27.73% 21.97% 4.69% 110.68% 8.97% 21.82%

32.37% 29.91% 22.03% 23.75% 17.41% 4.57% 95.15% 15.62% 5.01%

28.40% 28.46% 30.35% 12.52% 8.44% 1.68% 135.60% 16.15% 11.89%

27.03% 21.54% 29.15% 12.53% 8.29% 4.36% 187.15% 14.33% 9.43%

20.96% 19.41% 29.90% 18.78% 14.41% 5.67% 124.02% 15.49% 6.35%

35.37% 26.58% 12.08% 13.97% 10.62% 2.81% 71.60% 0.25% 13.06%

16.18% 22.22% 15.90% 39.80% 28.38% 3.45% 190.13% -10.85% 21.11%

6.69% NA 17.04% NA NA NA NA NA 64.16%

70.43% 32.64% 20.25% 9.68% 6.66% 3.00% 331.23% 0.78% 32.09%

98.41% 23.11% 23.28% 12.03% 7.97% 3.04% 117.56% 8.54% 16.72%

12.03% 12.67% 33.19% 13.28% 8.54% 0.95% 682.72% 5.27% 8.06%

3.89% 9.93% 15.01% 15.29% 9.47% 0.01% 143.73% 4.62% 0.00%

0.63% 8.11% 35.46% 40.45% 25.93% 3.63% 262.28% 1.68% 274.15%

7.85% 10.21% 14.08% 18.28% 11.63% 3.52% 82.96% 6.91% 1.53%

17.72% 6.46% 6.70% 53.29% 47.57% 22.90% 15.66% 33.11% 23.46%

15.04% 11.67% 33.26% 20.82% 13.16% 2.96% 116.53% 0.96% 17.83%20.64% 17.73% 16.67% 20.77% 14.61% 3.44% 158.90% 9.07% 16.22%


47/49

Reinvestment Rate Sales/Capit EV/Sales

-1.16% 1.09 0.94

-0.05% 2.35 0.73

13.68% 1.99 0.65

-0.71% 1.77 0.64

6.48% 2.36 0.51

-4.20% 3.92 0.29

0.00% NA NA

0.00% NA NA

0.00% NA NA

5.26% 1.29 1.99

6.79% 0.87 5.71

9.21% 1.08 0.85

3.61% 0.56 2.20

28.10% 0.88 1.61

-6.47% 1.84 0.88

-9.92% 1.67 1.15

-2.32% 1.84 0.90

5.35% 1.28 1.26

-0.96% 2.12 1.93

-1.84% 3.75 0.70-12.75% 0.60 1.96

-5.83% 1.00 2.63

8.42% 1.43 1.86

5.63% 4.01 2.75

31.79% 0.70 1.65

25.82% 0.68 1.93

34.95% 0.70 1.57

-2.87% 1.79 1.00

0.49% 2.32 0.32

-1.55% 0.67 1.27

51.10% 2.55 0.85

-4.43% 1.02 1.73

-612.73% 0.16 6.96

-7.14% 1.82 1.01

4.36% 3.90 0.36

-6.57% 2.27 0.32

-0.04% 1.97 0.45

18.50% 4.56 0.79

-6.78% 1.74 2.08

-4.58% 4.80 0.49

NA 1.42 0.58

52.78% 0.71 1.50

-2.39% 1.12 2.05

-7.15% 5.24 0.23

7.60% 2.20 0.710.90% 1.44 1.68

0.00% NA NA

-0.07% NA NA

6.25% 1.90 2.22

NA NA NA

-1.55% NA NA

-1.51% 1.81 0.70

9.17% 3.99 0.17

69.70% 0.42 2.23


48/49

5.72% 2.24 0.59

-3.33% 2.38 1.08

8.66% 2.09 0.59

10.91% 1.09 1.49

50.53% 0.63 2.00

8.35% 1.16 1.09

-4.55% 0.70 1.12

-5.75% 2.28 0.52

47.94% 0.95 1.36

18.86% 1.04 1.24

-3.29% 1.70 0.72

0.62% 1.09 0.74

12.52% 2.45 0.65

42.65% 0.89 1.29

2.63% 2.95 0.56

12.47% 0.92 1.54

51.75% 0.36 4.72

-14.88% 1.33 0.92

94.40% 0.35 2.90

-1.09% 1.96 0.89

242.89% 0.53 4.0518.83% 0.68 2.03

20.73% 0.90 1.16

0.00% NA NA

14.97% 1.68 1.57

9.60% 3.74 0.40

24.14% 2.70 0.47

23.42% 2.44 0.72

22.28% 3.40 0.54

140.87% 0.60 1.82

1.50% 1.30 1.31

5.06% 1.72 0.81

1.42% 3.37 0.84

-13.36% 2.60 0.55

-8.04% 1.35 0.59

-7.29% 2.50 0.90

-1.41% 0.78 1.69

422.33% NA NA

24.30% 4.90 1.47

0.78% 2.90 0.98

170.96% 1.48 0.75

0.00% 1.05 0.90

18.42% 0.31 3.80

-32.77% 0.88 2.36

0.73% 0.14 4.01

1.70% 0.89 1.40-30.90% 1.21 1.28


49/49

Peer Group Company

KPIT

TCS

WIPRO

MICROSOFT

Oracle

Mean

Median

kpit valuation

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