Companyname

Numbersfromyourbaseyearbelow:
Revenues
OperatingincomeorEBIT
Bookvalueofequity
Bookvalueofdebt
Cash
Numberofsharesoutstanding=
Currentstockprice=
Taxrate=
Thevaluedriversbelow:
Compoundedannualrevenuegrowthrateovernext5years=
Targetpretaxoperatingmargin(EBITas%ofsalesinyear10)=
Salestocapitalratio(forcomputingreinvestment)=
Marketnumbers
Riskfreerate
Initialcostofcapital=
Otherinputs
Numberofoptionsoutstanding=
Averagestrikeprice=
Averagematurity=
Standarddeviationonstockprice=

Defaultassumptions
Iwillassumethatyourfirmwillhaveacostofcapitalsimilartothatoftypicalmaturecompanies(riskfreerate+4.5
Doyouwanttooverridethisassumption=
Ifyes,enterthecostofcapitalafteryear10=
Iwillassumethatyourfirmwillearnareturnoncapitalequaltoitscostofcapitalafteryear10
Doyouwanttooverridethisassumption=
Ifyes,enterthereturnoncapitalyouexpectafteryear10
Iwillassumethatyourfirmhasnochanceoffailureinthenext10years
Doyouwanttooverridethisassumption=
Ifyes,entertheprobabilityoffailureinthenext10years=
IwillasssumethatyouhavenoNOLcomingintothevaluation
Doyouwanttooverridethisassumption=
Ifyes,entertheNOLthatyouarecarryingoverintoyear1
Someofthecashbalancemaybetrappedoverseas
Doyouwanttofactorintheadditionaltaxesonthatcash?
Howmuchcashistrappedoverseas(inmillions)?
Taxrateonoverseasincome
 Apple Important: Before you run this spreadsheet, go into preferences in Excel and check under Calculation optio
There should be a check against the iteration box. If there is not, you will get circular reasoning errors.
$148,812.00 Trailing 12 months
$53,007.00 Trailing 12 months
$111,746.00 30-Jun-12
$3,398.64 Estimated based on last 10K & information in 10Q
$117,221.00 30-Jun-12
937.41 30-Jun-12
$670.31 30-Jun-12
25.32% Tax rate from trailing 9 months

6.00% Revenue growth rate last year was 60%+.

30.00% Current margin is 34%
2.96 Average for the sector

1.62% 3-Oct-12
9.120% Used average beta for electronics & computers! Assumed no debt.

7.97 30-Jun-12
$119.93 30-Jun-12
1.90 30-Jun-12
35.00% Average standard deviation across social media companies that have been listed for the last year.

reerate+4.5%)
Yes Mature companies generally see their risk levels approach the average
8% Though some sectors, even in stable growth, may have higher risk (which is my assumption with Groupon

Yes Mature companies find it difficult to generate returns that exceed the cost of capital
15% But there are significant exceptions among companies with long-lasting competitive advantages (and I am

No Many young, growth companies fail, especially if they have trouble raising cash (I am being optimistic and
0% Tough to estimate but a key input.

No Check the financial statements.

$0.00 An NOL will shield your income from taxes, even after you start making money (and Groupon has NOLs)

Yes
$30,000
15%
cel and check under Calculation options
will get circular reasoning errors.

been listed for the last year.

hich is my assumption with Groupon)

cost of capital
ng competitive advantages (and I am assuming that Groupon is one)

sing cash (I am being optimistic and assuming that Groupon has no chance of failure)

g money (and Groupon has NOLs)

 Baseyear 1 2 3 4
Revenuegrowthrate 6.00% 6.00% 6.00% 6.00%
Revenues $148,812.00 $157,740.72 $167,205.16 $177,237.47 $187,871.72
EBIT(Operating)margin 35.62% 35.06% 34.50% 33.93% 33.37%
EBIT(Operatingincome) $53,007.00 $55,300.90 $57,679.24 $60,143.90 $62,696.68
EBIT(1t) $39,586.91 $41,300.05 $43,076.25 $44,916.92 $46,823.39
Reinvestment $3,016.46 $3,197.45 $3,389.29 $3,592.65
FCFF $38,283.59 $39,878.80 $41,527.63 $43,230.74
NOL $ $ $ $ $

WACC 9.12% 9.12% 9.12% 9.12%

Discountfactor 0.916 0.840 0.770 0.705
PV(FCFF) $35,083.93 $33,491.41 $31,961.27 $30,491.25

Terminalcashflow $47,721.00
TerminalCostofcapital 8.00%
Terminalvalue $747,978.12
PV(Terminalvalue) $322,306.18
PV(CFovernext10years) $285,528.93
SumofPV $607,835.11
Probabilityoffailure= 0.00%
Valueofoperatingassets= $607,835.11
Debt $3,398.64
Cash $117,221.00
TaxonTrappedCash $6,000.00
Valueofequity $715,657.47
Valueofoptions $3,293.39
Valueofequityincommonstoc $712,364.07
Numberofshares 937.41
Estimatedvalue/share $759.93
PriceonIPO $670.31
Priceas%ofvalue 88.21%

Impliedvariables
Salestocapitalratio 2.96 2.96 2.96 2.96
Investedcapital $(2,076) $940 $4,138 $7,527 $11,119
ROIC 1906.55% 4393.15% 1041.11% 596.76% 421.09%
 5 6 7 8 9 10 Terminalyear
6.00% 5.12% 4.25% 3.37% 2.50% 1.62% 1.62%
$199,144.02 $209,348.16 $218,241.27 $225,600.37 $231,231.36 $234,977.30 $238,783.94
32.81% 32.25% 31.69% 31.12% 30.56% 30.00% 30.00%
$65,339.27 $67,510.69 $69,152.00 $70,215.91 $70,668.95 $70,493.19 $71,635.18
$48,796.94 $50,418.61 $51,644.39 $52,438.94 $52,777.28 $52,646.02 $53,498.88
$3,808.21 $3,447.34 $3,004.43 $2,486.18 $1,902.36 $1,265.52 $5,777.88
$44,988.73 $46,971.27 $48,639.96 $49,952.76 $50,874.92 $51,380.50 $47,721.00
$ $ $ $ $ $ $

9.12% 8.90% 8.67% 8.45% 8.22% 8.00% 8.00%

0.646 0.594 0.546 0.504 0.465 0.431
$29,079.17 $27,880.37 $26,566.96 $25,158.60 $23,675.94 $22,140.02

Afteryear10
2.96 2.96 2.96 2.96 2.96 2.96
$14,928 $18,375 $21,379 $23,866 $25,768 $27,034
326.89% 274.39% 241.56% 219.73% 204.82% 194.74% 15.00%
VALUATION DIAGNOSTICS

Invested capital at start of valuation

Invested capital at end of valuation
Change in invested capital over 10 years
Change in EBIT*(1t) (after-tax operating income) over 10 years
Marginal ROIC over 10 years
ROIC at end of valuation
Average WACC over the 10 years
Your calculated value as a percent of current price

Inputs
Revenue growth rate
Last period EBIT as % of revenue

Last period EBIT as % of revenue needed to earn cost of capital

$ (2,076.36)
$ 27,033.54
$ 29,109.90
$ 17,486.19
60.07%
194.74%
8.78%
113.37%

If calculated value is
If calculated value looks too high
negative or looks too low
Increase revenue growth
Decrease revenue growth rate
rate
30% Decrease margin until return in year 10 = cost of capital

1.35%
ValuingOptionsorWarrants
Enterthecurrentstockprice= $670.31
Enterthestrikepriceontheoption= $119.93
Entertheexpirationoftheoption= 1.90
Enterthestandarddeviationinstockprices= 35.00% (volatility)
Entertheannualizeddividendyieldonstock= 0.00%
Enterthetreasurybondrate= 1.62%
Enterthenumberofwarrants(options)outstan 7.97
Enterthenumberofsharesoutstanding= 937.41

Donotinputanynumbersbelowthisline
VALUINGWARRANTSWHENTHEREISDILUTION
StockPrice= 670.31 #Warrantsissued= 7.974
StrikePrice= 119.93 #Sharesoutstanding= 937
AdjustedS= 669.32078706 T.Bondrate= 1.62%
AdjustedK= 119.93 Variance= 0.1225
Expiration(inyears)= 1.9 Annualizeddividendyield= 0.00%
Div.Adj.interestrate= 1.62%

d1= 3.868882362
N(d1)= 0.9999453323

d2= 3.3864406557
N(d2)= 0.9996459721

Valueperoption= $553.03
Valueofalloptionsoutstanding= $4,409.87
Industry Name Number of firms Levered Beta Unlevered Beta Std Dev: Equity
Advertising 31 2.02 1.75 101.29%
Aerospace/Defense 64 1.10 1.03 61.32%
Air Transport 36 1.21 1.10 64.80%
Apparel 57 1.30 1.22 88.82%
Auto Parts 51 1.70 1.59 80.58%
Automotive 12 1.59 0.96 68.91%
Bank 426 0.77 0.38 61.15%
Bank (Midwest) 45 0.93 0.73 55.60%
Beverage 34 0.88 0.77 66.05%
Biotechnology 158 1.03 1.16 113.11%
Building Materials 45 1.50 0.89 78.83%
Cable TV 21 1.37 0.98 50.77%
Chemical (Basic) 16 1.36 1.24 49.27%
Chemical (Diversified) 31 1.51 1.39 56.31%
Chemical (Specialty) 70 1.28 1.15 71.60%
Coal 20 1.53 1.32 55.52%
Computer Software 184 1.04 1.18 82.03%
Computers/Peripherals 87 1.30 1.33 97.69%
Diversified Co. 107 1.14 0.71 75.00%
Drug 279 1.12 1.08 103.44%
E-Commerce 57 1.03 1.08 88.13%
Educational Services 34 0.83 0.92 78.24%
Electric Util. (Central) 21 0.75 0.48 23.37%
Electric Utility (East) 21 0.70 0.49 18.30%
Electric Utility (West) 14 0.75 0.49 19.85%
Electrical Equipment 68 1.33 1.35 67.76%
Electronics 139 1.07 1.08 89.93%
Engineering & Const 25 1.22 1.39 65.03%
Entertainment 77 1.63 1.31 108.37%
Entertainment Tech 40 1.23 1.48 76.91%
Environmental 82 0.81 0.60 92.14%
Financial Svcs. (Div.) 225 1.31 0.50 82.27%
Food Processing 112 0.91 0.77 60.68%
Foreign Electronics 9 1.09 1.24 35.40%
Funeral Services 6 1.14 0.85 39.35%
Furn/Home Furnishings 35 1.81 1.65 80.90%
Healthcare Information 25 1.17 1.20 65.79%
Heavy Truck & Equip 21 1.80 1.48 69.92%
Homebuilding 23 1.45 1.02 70.00%
Hotel/Gaming 51 1.74 1.28 79.09%
Household Products 26 1.07 0.95 62.24%
Human Resources 23 1.24 1.40 78.27%
Industrial Services 137 0.93 0.81 74.43%
Information Services 27 1.07 0.89 48.10%
Insurance (Life) 30 1.58 1.54 53.35%
Insurance (Prop/Cas.) 49 0.91 1.01 37.88%
Internet 186 1.09 1.24 117.09%
IT Services 60 1.06 1.14 69.45%
Machinery 100 1.20 1.14 57.21%
Maritime 52 1.40 0.58 69.19%
Med Supp Invasive 83 0.85 0.80 79.18%
Med Supp Non-Invasive 146 1.03 1.07 84.89%
Medical Services 122 0.91 0.78 76.26%
Metal Fabricating 24 1.59 1.63 68.98%
Metals & Mining (Div.) 73 1.33 1.28 104.38%
Natural Gas (Div.) 29 1.33 1.06 48.77%
Natural Gas Utility 22 0.66 0.46 24.90%
Newspaper 13 1.76 1.42 90.74%
Office Equip/Supplies 24 1.38 1.04 64.26%
Oil/Gas Distribution 13 0.96 0.65 56.61%
Oilfield Svcs/Equip. 93 1.55 1.39 62.37%
Packaging & Container 26 1.16 0.88 41.59%
Paper/Forest Products 32 1.36 0.96 93.84%
Petroleum (Integrated) 20 1.18 1.12 38.99%
Petroleum (Producing) 176 1.34 1.13 88.11%
Pharmacy Services 19 1.12 1.00 59.43%
Pipeline MLPs 27 0.98 0.72 34.90%
Power 93 1.35 0.65 97.19%
Precious Metals 84 1.15 1.14 90.87%
Precision Instrument 77 1.28 1.33 65.33%
Property Management 31 1.13 0.59 82.21%
Public/Private Equity 11 2.18 1.62 77.54%
Publishing 24 1.25 0.89 64.98%
R.E.I.T. 5 1.47 1.15 49.61%
Railroad 12 1.44 1.24 42.95%
Recreation 56 1.45 1.11 70.55%
Reinsurance 13 0.93 1.05 30.40%
Restaurant 63 1.27 1.19 68.37%
Retail (Hardlines) 75 1.77 1.65 92.79%
Retail (Softlines) 47 1.44 1.57 60.91%
Retail Automotive 20 1.37 1.12 52.02%
Retail Building Supply 8 1.04 0.97 37.61%
Retail Store 37 1.29 1.14 67.71%
Retail/Wholesale Food 30 0.75 0.64 40.02%
Securities Brokerage 28 1.20 0.43 44.31%
Semiconductor 141 1.50 1.69 70.52%
Semiconductor Equip 12 1.79 2.42 68.70%
Shoe 19 1.25 1.38 55.52%
Steel 32 1.68 1.40 56.94%
Telecom. Equipment 99 1.02 1.28 87.77%
Telecom. Services 74 0.98 0.82 68.58%
Telecom. Utility 25 0.88 0.54 60.40%
Thrift 148 0.71 0.75 53.93%
Tobacco 11 0.85 0.78 41.53%
Toiletries/Cosmetics 15 1.30 1.20 60.34%
Trucking 36 1.24 1.08 59.88%
Utility (Foreign) 4 0.96 0.48 32.68%
Water Utility 11 0.66 0.43 18.89%
Wireless Networking 57 1.27 1.12 75.03%
Total Market 5891 1.15 0.92 75.08%
Market D/E Market Debt/ ROE ROC Effective Pre-tax O After-tax O
43.26% 30.20% 8.89% 10.54% 10.73% 10.27% 7.44%
25.66% 20.42% 34.00% 18.53% 20.72% 10.16% 7.31%
24.32% 19.56% ### 16.45% 20.54% 8.78% 6.86%
18.38% 15.53% 17.34% 14.02% 16.08% 10.97% 7.60%
27.65% 21.66% 22.59% 15.82% 18.99% 6.49% 4.98%
134.57% 57.37% 18.46% 6.96% 24.07% 6.99% 4.94%
156.11% 60.95% 7.60% NA 15.97% NA NA
59.52% 37.31% 9.08% NA 17.77% NA NA
26.52% 20.96% 24.58% 12.95% 19.14% 20.45% 15.60%
13.48% 11.88% 15.15% -13.33% 2.49% -7.79% -13.73%
94.33% 48.54% -5.17% 2.58% 11.17% 4.17% 3.16%
68.06% 40.50% 16.13% 8.80% 27.35% 19.58% 12.43%
27.35% 21.47% 25.83% 13.66% 20.90% 12.09% 9.56%
22.37% 18.28% 19.26% 13.81% 21.73% 13.20% 9.30%
21.15% 17.46% 18.50% 12.25% 17.58% 11.10% 7.87%
28.90% 22.42% 24.24% 15.26% 12.75% 15.94% 12.53%
7.49% 6.97% 79.13% 45.06% 12.27% 31.35% 24.62%
10.23% 9.28% 52.52% 32.09% 11.77% 14.15% 10.83%
102.24% 50.55% 33.28% 8.01% 15.55% 14.09% 11.76%
15.46% 13.39% 22.64% 15.02% 5.36% 21.91% 16.96%
6.40% 6.02% 16.47% 13.08% 12.33% 14.39% 10.87%
12.33% 10.97% 53.22% 34.34% 25.17% 20.80% 12.91%
86.16% 46.28% 10.77% 6.38% 31.82% 17.72% 11.58%
66.16% 39.82% 11.91% 6.89% 33.14% 19.13% 12.66%
84.54% 45.81% 9.88% 6.11% 31.30% 16.79% 11.38%
12.66% 11.24% 23.02% 15.03% 17.02% 13.19% 9.95%
22.33% 18.25% 22.20% 15.72% 10.36% 5.99% 4.48%
11.99% 10.71% 15.44% 13.58% 26.26% 4.72% 3.35%
40.99% 29.07% 11.46% 9.45% 15.38% 17.72% 12.17%
9.76% 8.89% 15.08% 11.69% 11.59% 10.48% 9.04%
43.70% 30.41% 11.00% 7.56% 11.71% 15.22% 9.48%
251.49% 71.55% ### 5.95% 19.18% 43.49% 33.84%
29.53% 22.80% 17.85% 11.88% 20.00% 9.08% 6.52%
42.09% 29.62% 6.25% 7.83% 35.12% 5.27% 3.23%
56.60% 36.14% 12.34% 7.81% 30.84% 15.64% 9.82%
24.39% 19.61% 11.66% 9.50% 20.43% 6.43% 4.58%
6.35% 5.97% 11.00% 9.45% 22.19% 12.11% 7.64%
43.66% 30.39% 30.24% 10.88% 20.62% 9.13% 6.64%
100.28% 50.07% -35.82% -2.09% 5.12% -1.56% -2.09%
52.07% 34.24% 5.64% 6.95% 14.53% 12.61% 10.13%
18.99% 15.96% 21.80% 14.52% 25.12% 17.38% 12.79%
10.31% 9.35% 7.25% 7.67% 25.35% 1.91% 1.18%
32.71% 24.65% 13.76% -53.50% 19.03% -21.40% -23.67%
30.21% 23.20% 15.60% 10.83% 18.93% 19.33% 15.06%
64.14% 39.08% 10.45% NA 28.04% NA NA
23.60% 19.10% 13.32% NA 19.36% NA NA
2.71% 2.63% 39.73% 32.75% 6.87% 18.25% 14.58%
6.09% 5.74% 36.11% 26.95% 19.15% 14.43% 10.32%
19.12% 16.05% 14.59% 12.60% 22.15% 11.05% 8.22%
170.38% 63.01% 4.88% 4.76% 5.55% 14.81% 13.69%
16.08% 13.85% 22.13% 15.88% 11.86% 22.22% 17.28%
13.02% 11.52% 29.56% 19.24% 12.73% 6.48% 4.81%
49.45% 33.09% 32.81% 18.55% 19.93% 11.11% 7.39%
15.49% 13.41% 18.66% 14.78% 26.55% 15.07% 10.89%
14.10% 12.36% 24.79% 19.48% 11.04% 31.57% 21.88%
37.07% 27.04% 9.04% 7.10% 21.98% 28.94% 17.50%
67.38% 40.26% 10.98% 8.09% 30.16% 12.80% 8.57%
46.35% 31.67% 16.73% 11.05% 25.13% 14.59% 9.02%
63.03% 38.66% 18.05% 10.36% 21.05% 6.65% 4.59%
58.30% 36.83% 11.35% 6.83% 13.70% 18.45% 14.46%
22.92% 18.64% 10.48% 8.54% 17.39% 15.11% 11.28%
51.82% 34.13% 17.52% 10.40% 24.23% 10.12% 7.02%
59.86% 37.45% 8.40% 11.01% 10.61% 12.01% 9.84%
19.19% 16.10% 14.76% 10.08% 27.41% 9.76% 5.65%
24.88% 19.92% 9.46% 13.50% 11.14% 25.74% 19.10%
20.48% 17.00% 14.82% 11.18% 24.67% 5.11% 3.14%
40.97% 29.06% 12.71% 8.60% 6.37% 8.95% 8.68%
148.82% 59.81% 6.95% 7.56% 8.66% 14.54% 10.88%
8.20% 7.57% 9.09% 9.57% 7.51% 33.30% 24.02%
15.94% 13.75% 15.37% 12.10% 13.94% 10.74% 8.80%
140.63% 58.44% 10.74% 5.18% 18.59% 15.63% 12.95%
59.87% 37.45% 35.96% -0.14% 3.79% -2.58% -0.48%
63.28% 38.76% 31.94% 11.38% 18.55% 12.10% 8.33%
34.71% 25.77% 15.58% 14.07% 1.04% ### 126.01%
25.15% 20.09% 16.43% 11.10% 23.74% 28.43% 18.56%
48.69% 32.75% 11.06% 8.26% 17.37% 11.51% 9.26%
23.54% 19.06% 13.29% NA 7.22% NA NA
12.77% 11.32% 38.25% 20.32% 21.57% 15.82% 11.17%
24.33% 19.57% 22.91% 14.99% 23.04% 7.50% 4.99%
5.61% 5.32% 36.27% 28.74% 24.64% 9.39% 5.82%
38.11% 27.59% 20.53% 9.89% 34.43% 6.88% 4.46%
14.06% 12.33% 16.06% 12.18% 31.39% 8.13% 5.13%
25.58% 20.37% 21.01% 13.60% 25.02% 5.84% 3.83%
41.34% 29.25% 16.43% 10.38% 31.21% 3.18% 2.07%
430.56% 81.15% NA 10.39% 26.22% 48.78% 35.58%
8.35% 7.70% 39.10% 28.41% 11.01% 22.76% 18.13%
15.20% 13.20% 65.76% 40.44% 15.17% 21.65% 18.30%
2.18% 2.13% 30.49% 27.41% 24.31% 11.34% 8.22%
46.40% 31.69% 7.28% 5.94% 21.03% 5.83% 4.90%
12.96% 11.48% 29.93% 23.30% 13.16% 10.87% 8.53%
34.09% 25.42% 16.47% 13.70% 14.22% 22.74% 16.56%
96.15% 49.02% 18.29% 8.34% 29.42% 15.83% 11.21%
29.33% 22.68% -2.14% NA 12.43% NA NA
18.71% 15.76% 74.21% 27.98% 31.03% 20.61% 15.24%
20.64% 17.11% 62.53% 19.54% 20.30% 10.85% 7.24%
27.77% 21.73% 8.19% 9.07% 25.48% 6.37% 4.20%
155.03% 60.79% 3.12% 4.56% 26.07% 11.60% 7.81%
81.42% 44.88% 8.44% 5.42% 35.22% 26.61% 18.05%
27.06% 21.30% 21.34% -18.21% 12.12% -11.47% -15.91%
46.64% 31.81% 16.07% 12.21% 15.48% 17.24% 12.62%
Net Margin Cap Ex/ Depreciation Non-cash WC/Payout Ratio Reinvestment
3.63% 54.18% -19.84% 43.75% -46.14%
6.78% 126.28% 2.89% 29.13% 14.77%
3.76% 122.22% -9.25% 18.91% 5.54%
6.72% 103.24% 17.24% 18.85% 22.13%
5.10% 96.08% 5.59% 23.74% 15.16%
3.36% 87.04% 19.37% 22.24% -22.37%
NA NA NA 33.53% 0.00%
NA NA NA 38.36% 0.00%
13.99% 87.24% 1.08% 46.35% -2.46%
9.11% 84.42% -5.83% 59.34% NA
-4.01% 48.00% 7.66% NA -106.83%
9.02% 85.32% -9.65% 18.03% -30.82%
12.46% 126.81% 9.68% 30.79% 29.24%
8.79% 104.37% 15.58% 31.68% 47.92%
8.04% 96.78% 12.60% 40.43% 12.99%
12.00% 141.73% 3.61% 33.78% 37.48%
24.78% 64.72% -11.16% 21.61% -9.05%
10.74% 103.58% -1.97% 8.61% 1.22%
9.21% 89.24% 71.65% 36.81% 1.67%
17.99% 37.39% 7.53% 49.12% -28.69%
10.73% 128.44% -11.60% 1.89% -2.56%
11.86% 131.38% -7.82% 2.83% 8.07%
8.89% 158.54% 8.98% 63.88% 56.89%
9.77% 201.07% 8.33% 66.22% 82.35%
8.53% 210.61% -0.59% 56.70% 117.43%
12.12% 86.14% 12.28% 29.40% 9.17%
4.63% 103.97% 10.63% 11.97% 18.61%
3.47% 84.23% 3.30% 6.31% -9.01%
10.12% 79.38% 1.72% 25.84% -9.30%
9.62% 78.89% -17.91% 11.57% -25.03%
7.53% 96.46% 0.48% 46.73% -0.26%
5.08% 312.33% 11.08% NA 13.38%
5.36% 139.77% 8.01% 45.25% 25.88%
1.83% 73.66% 1.47% 51.37% -39.15%
7.48% 78.63% 3.76% 49.81% -3.51%
3.76% 65.82% 13.45% 27.83% -12.43%
8.81% 58.33% 2.00% 12.22% -40.14%
8.48% 99.81% 24.35% 34.22% 94.67%
-5.64% 59.80% 76.53% NA NA
6.29% 109.45% -2.12% 40.37% -0.79%
11.66% 117.15% 4.70% 48.97% 5.97%
1.66% 69.60% 4.81% 50.59% 27.53%
3.26% 127.45% 10.25% 24.98% NA
11.94% 64.40% -1.61% 38.73% -23.97%
NA NA NA 29.39% 0.24%
 NA 9812.35% NA 23.46% 57.73%
16.00% 154.37% -8.44% 0.66% 4.82%
10.59% 76.10% 2.88% 32.87% -4.73%
7.26% 75.32% 16.27% 25.38% 8.44%
0.78% 316.85% 3.32% 25.25% 215.04%
16.64% 84.88% 22.14% 22.91% 1.50%
4.89% 78.77% 3.04% 37.29% -3.21%
4.84% 91.90% -5.59% 8.82% -25.53%
7.84% 154.15% 18.02% 25.70% 32.62%
7.36% 158.10% 6.22% 33.51% 23.26%
12.72% 297.08% -4.26% 33.81% 276.48%
5.10% 184.03% 5.53% 67.28% 49.96%
3.11% 45.60% -3.13% 14.56% -32.30%
4.07% 61.17% 6.78% 28.06% -20.89%
9.80% 280.22% -0.01% 73.98% 124.00%
10.72% 143.22% 16.89% 41.88% 70.61%
13.46% 92.61% 9.01% 24.38% 108.81%
4.63% 54.63% 10.19% 43.21% -26.89%
7.99% 192.87% 1.98% 38.99% 87.67%
10.69% 192.31% 2.28% 9.50% 64.09%
2.91% 99.52% 3.68% 20.26% 5.55%
7.11% 184.61% 0.88% 33.53% 43.79%
1.49% 181.13% 10.94% 13.75% 64.25%
30.24% 203.00% 7.21% 26.71% 62.24%
9.57% 48.46% 15.14% 11.24% 2.04%
9.18% 227.63% -3.02% 27.66% 137.37%
62.30% 554.33% 31.62% 17.28% NA
6.22% 75.65% 0.81% 25.02% -8.51%
113.55% 89.50% -10.12% 91.36% -1.96%
17.86% 175.52% -1.76% 34.63% 36.17%
7.28% 174.70% -0.96% 42.67% 50.56%
NA NA NA 15.87% 50.50%
10.70% 124.28% -4.82% 46.73% 8.36%
3.86% 219.62% 8.40% 19.62% 86.40%
5.56% 96.55% 3.40% 21.08% 0.99%
4.35% 140.44% 13.56% 2.49% 40.76%
5.14% 78.27% 5.88% 47.32% -6.28%
3.45% 129.02% 0.88% 29.16% 14.97%
4.16% 120.58% -0.01% 28.62% 23.06%
11.45% 86.69% 123.16% 10.93% -126.66%
17.82% 108.32% 6.93% 30.53% 5.83%
16.30% 105.87% 12.51% 11.30% 2.58%
8.44% 123.84% 16.28% 25.89% 19.07%
3.52% 66.43% 11.41% 34.26% -6.39%
7.22% 60.98% -3.38% 53.72% -21.25%
5.11% 95.55% -12.38% 43.63% -5.54%
8.50% 76.44% -7.76% 80.94% -37.32%
NA NA NA NA 0.00%
8.46% 64.69% -2.44% 67.56% -4.20%
7.37% 114.16% 8.55% 25.04% 13.39%
2.74% 156.92% 5.03% 41.07% 94.07%
0.55% 164.69% 7.52% 0.32% 132.29%
12.25% 250.02% 7.51% 48.16% 107.15%
7.96% 85.53% 7.62% 9.13% NA
8.32% 125.47% 7.01% 37.92% 8.65%
Sales/Capital EV/Sales Cost of capital
1.42 1.14 11.42%
2.53 0.93 7.30%
2.40 1.78 7.93%
1.85 1.19 8.77%
3.18 0.59 10.27%
1.41 0.73 6.57%
NA NA 4.27%
NA NA 5.74%
0.83 3.03 6.35%
0.97 4.49 7.81%
0.82 1.22 7.31%
0.71 2.21 7.03%
1.43 1.52 8.41%
1.48 1.62 9.48%
1.56 1.56 8.46%
1.22 1.78 9.26%
1.83 3.07 7.87%
2.96 1.39 9.21%
0.68 2.11 5.98%
0.89 2.85 8.22%
1.20 4.55 7.83%
2.66 1.14 6.47%
0.55 2.26 4.19%
0.54 2.51 4.29%
0.54 2.19 4.21%
1.51 1.54 9.14%
3.51 0.47 7.51%
4.05 0.46 8.57%
0.78 1.89 9.76%
1.29 1.87 8.79%
0.80 2.07 5.99%
0.18 6.67 5.30%
1.82 1.08 6.32%
2.43 0.37 6.51%
0.79 1.86 6.29%
2.08 0.92 10.98%
1.24 3.82 8.60%
1.64 1.34 9.82%
1.00 1.23 7.14%
0.69 2.58 9.26%
1.13 2.21 7.40%
6.48 0.29 8.73%
2.26 0.85 6.43%
0.72 2.94 6.95%
NA NA 7.91%
NA NA 6.40%
2.25 3.91 8.37%
2.61 1.75 7.96%
1.53 1.37 8.07%
0.35 2.69 6.11%
0.92 2.52 6.50%
4.00 0.73 7.60%
2.51 0.68 5.97%
1.36 1.67 10.32%
0.89 2.47 9.31%
0.41 3.37 7.81%
0.94 1.45 4.16%
1.23 1.31 9.72%
2.26 0.55 7.27%
0.47 3.56 5.92%
0.76 2.38 9.66%
1.48 1.06 6.58%
1.12 1.06 7.94%
1.78 0.87 7.89%
0.71 2.20 8.76%
3.56 0.53 7.60%
0.99 1.97 6.32%
0.69 1.48 6.69%
0.40 5.33 8.47%
1.38 1.64 8.71%
0.40 2.85 5.70%
0.30 3.43 10.78%
1.37 1.15 6.82%
0.11 14.13 8.70%
0.60 3.44 8.88%
0.89 1.60 8.19%
NA NA 6.55%
1.82 2.50 8.79%
3.00 0.83 10.84%
4.94 0.87 10.13%
2.22 0.92 7.95%
2.37 1.04 7.41%
3.55 0.59 8.27%
5.02 0.35 5.10%
0.29 3.08 3.43%
1.57 2.06 10.36%
2.21 0.97 11.46%
3.33 1.52 9.28%
1.21 0.78 9.06%
2.73 1.25 7.52%
0.83 1.85 6.65%
0.74 1.75 4.82%
NA NA 5.44%
1.84 2.36 6.23%
2.70 1.48 8.53%
2.16 1.28 7.89%
0.58 1.39 4.30%
0.30 4.39 3.91%
1.14 1.91 8.23%
0.97 1.67 7.05%
 OperatingLeaseConverter
Operatingleaseexpensesarereallyfinancialexpenses,andshouldbetreatedassuch.Accountingstandardsallowth
betreatedasoperatingexpenses.Thisprogramwillconvertcommitmentstomakeoperatingleasesintodebtand
adjusttheoperatingincomeaccordingly,byaddingbacktheimputedinterestexpenseonthisdebt.

Inputs
Operatingleaseexpenseincurrentyear= $338.00
OperatingLeaseCommitments(Fromfootnotetofinancials)
Year Commitment !Year1isnextyear,.
1 $338.00
2 $365.00
3 $362.00
4 $345.00
5 $320.00
6andbeyond $1,302.00

PretaxCostofDebt= 4.00%

Fromthecurrentfinancialstatements,enterthefollowing
ReportedOperatingIncome(EBIT)= $10,000.00 !ThisistheEBITreportedinthecurrentincomestatement
ReportedDebt= $25,000.00 !Thisistheinterestbearingdebtreportedonthebalancesheet
ReportedInterestExpenses= $2,000.00
Output
Numberofyearsembeddedinyr6estimate= 4 !Iusetheaverageleaseexpenseoverthefirstfiveyears
toestimatethenumberofyearsofexpensesinyr6
ConvertingOperatingLeasesintodebt
Year Commitment PresentValue
1 $338.00 $325.00
2 $365.00 $337.46
3 $362.00 $321.82
4 $345.00 $294.91
5 $320.00 $263.02
6andbeyond $325.50 $971.13 !Commitmentbeyondyear6convertedintoanannuityfortenyears
DebtValueofleases= $2,513.34

RestatedFinancials
OperatingIncomewithOperatingleasesreclassifiedasdebt= $10,100.53
DebtwithOperatingleasesreclassifiedasdebt= $27,513.34
nverter
uch.Accountingstandardsallowthemto
eoperatingleasesintodebtand
enseonthisdebt.

currentincomestatement
reportedonthebalancesheet

overthefirstfiveyears
fexpensesinyr6

nnuityfortenyears
 Last10K First9months,2011
Page45,10K Page3,10Q
Revenues $108,249.00 79979
OperatingincomeorEBIT $33,790.00 25080
Page46
Bookvalueofequity $76,615.00
Bookvalueofdebt $2,513.34
Cash $81,570.00
Numberofsharesoutstanding= 924.258
Currentstockprice=
Taxrate= 24.22% 24.06%
Marketnumbers
Riskfreerate 2.00%

Otherinputs
Options Page71
Numberofoptionsoutstanding= 11.866
Averagestrikeprice= $108.64
Averagematurity= 2.38
Standarddeviationonstockprice= 35.00%

Leasecommitments Page74
Currentyear $338.00
Year1 $338.00
Year2 $365.00
Year3 $362.00
Year4 $345.00
Year5 $320.00
Beyondyear5 $1,302.00
Totalfutureleasecommitments $3,032.00
First9months,2012 Trailing12month Current
Page3,10Q Calculated
$120,542.00 $148,812.00 $148,812.00 Trailing 12 month = Last 10
$44,297.00 $53,007.00 $53,007.00 First 9 months 2011 + First
Page4,10Q months 2012
$111,746.00 111746
$3,398.64 $3,398.64
$117,221.00 $117,221.00
936.596 937.41 Yahoo! Finance
670.31
25.32% 25.32%
Updated value for leas
1.62% = 2513.34*(4100/3032

Page17,10Q
7.974 7.974
119.93 119.93
1.9 1.9

Page20
NA
NA
NA
NA
NA
NA
NA
$4,100.00
g 12 month = Last 10K -
months 2011 + First 9
s 2012

pdated value for leases

2513.34*(4100/3032)