Business analysis and evaluation formulas PDF

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Business analysis and evaluation formulas Week 1 Gross Margin (gross profit) = Net Revenue – Cost of Goods Sold Operating Income= Gross Margin – Operating Expenses Income before Taxes = Operating Income – Interest Expense + Interest Income Income after Taxes and before extraordinary = Income before Taxes – Income Taxes Net Income = Items Income before Extraordinary Items + Extraordinary Items Net Income Available to Common shareholders = Net Income – Preferred Dividends Profit margin = earning/sales Total comprehensive income = Net income + Other comprehensive income Ending equity = Beginning equity + Total (comprehensive) income – Net payout to shareholders Net pay-out to shareholders = Dividends + Share repurchases – Share issues Intrinsic Premium = Intrinsic Value of Equity – Book Value of Equity Market Premium = Market Value of Equity – Book Value of Equity Price to book

Market Value added = Ending price – Beginning price + Dividend =number of shares x share price

Enterprise value = Value of Assets =fcf= Value of Debt +Value of Equity (assets= liabilities + equity) Market Value = book value + enterprise value Market value of equity = total assets + market value - book value of equity stock return = price at time 1- price at time 0 + div book value of equity = total equity =assets- liabilities = start price equity + rev – expenses free Cash flow = cash flow from operations – cash from investment Week 2 Variations of the P/E Ratio

unlevered (or Enterprise) Multiples (that are Unaffected by the Financing of Operations) P/s p/b= mve/be

EBIT

Enterprise value, net debt on top use market value on the bottom book value Top on other formulas use mv

If P>V, the stock is over-priced. The analyst issues a “Sell” recommendation. If P...