FINM 3005 Formula Sheet PDF

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Download FINM 3005 Formula Sheet PDF

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NOPLAT=After Tax EBIT=Operating EBIT - Attributable Tax= (EBIT-Income from NonOperating Assets)- Attributable NOPLAT Margin = NOPLAT/Sales EBIT=Operating Income =[Op. Revenue (not include non-op income) – COGS] -SGA -Depre. -Amortization =Gross margin (profit) -Op. Expenditure -Depre. -Amortization EBITDA=Gross Operating Profit + Non-Operating Assets Income = Operating Profit + Depreciation + Amortization = Net Profit + Interest +Taxes + Depreciation + Amortization EBITA =Gross profit -Op. Expenditure (SGA) =EBT +interest expense +Amortization = EBITDA -Depreciation CapExt= PPEt -PPEt-1+ Depreciation2 Gross Operating Profit (GOP)= Gross Profit-Operating Expense=(Sales-COGS)- Operating Expense (SGA+ other operating expense) FCF=NOPLAT+ Depreciation- Capex- Change in Working Capital (=Current Assets-Current Liability) D/E = (Debt +Capitalized Op. Lease)/MV of Equity

E D r (1−t) r+ D+E e D+ E d r e =r f + β ( r m−r f ) ¿ r f + β∗equity risk premium WACC=

MV of Equity=No. of Shares* Share Price

g ) RONIC CV t= WACC −g g ) NOPLAT t (1+ g)(1− RONIC WACC − g NOPLAT t +1 (If WACC=RONIC) CV t= WACC NOPLAT t +1 (1−

=

Normalizsation: Net Profit Attributable to Ordinary Shareholders, Net loss on disposal of PPE, profit/loss on sale of asset, unusual income, pension fund revaluations, write-offs, redundancy costs; No-cash items (goodwill amortization/impairment charges); Treatment of R&D; Abnormal tax rate; Economic cycle; Investments, lazy assets, new projects in startup period.  Remember after tax!!! Normalized, Diluted EPS=Adjusted Normalized Earnings/Diluted Shares =(Normalised Earnings+ Earnings on option exercise)/Diluted Shares =(Normalised Earnings + No. of Options*Option Exercise Price*(1-tax)*Cost of Debt)/Diluted Shares [Note: “weighted average” =time-weighted average, adjusted to remaining time] Earnings on option exercise=no. of executive options*borrowing cost*(1-marginal tax rate) Diluted Shares=Ordinary Shares+ Additional Shares under Options Exercise -Shares Buyback PE=Share Price/Normalized, Diluted EPS P/BV= Share Price/BV per share=Share Price/ (Ordinary Equity/no. of issued shares) DPS= Ordinary Div./Ordinary Shares Div. Yield= DPS/Share Price EVM = Enterprise Value of Operations/EBITDA= (MV of Equity+ Non-Equity Claims- Other Assets)/ EBITDA EBIT Multiple= MV of Equity+ Non-Equity Claims- Other Assets)/EBIT [MV of Equity]= Ordinary Shares*Share Price Value of Non-Equity Claims: Net Debt (Debt- Excess Cash), Operating Lease, Minority interest (non-controlling interest), Executive options, Provision (inc. long-term & restructuring), Retirement Related Liabs, Preference Shares Other Assets (value of Non-Operating Assets): Excess Cash, Marketable Securities, Equity Investment Income, income from associates, NPV of tax losses, Assets Held for Sale, Retirement Benefit Assets, interest on operating lease, Excess real estate, unutilized assets, etc. Adjusted EBITDA= Depreciation+ Goodwill impairment Charge+ EBIT- Div. Received (not operating income) EVM Multiple calculation for share price= Value of Equity/no. of shares= (EVM*EBITDA+ Other Assets- Non-Equity Claims)/no. of shares = [EVM*EBITDA+ Other Assets (Investment+ Net Deferred Tax) -Minority Interest(Non-controlling interest) -Exercise Options with mkt price -Debt]/ No. of Shares [Value of Equity]= Enterprise Value- Non-Equity Claims [Enterprise Value of Operations]= EVM*EBITDA+ Other Assets (Investment+ Net Deferred Tax) -Minority Interest(Non-controlling interest) -Exercise Options -Debt =MV of Equity +Non-Equity Claim -Other Assets [Note] when calculating MV of Equity remember to deduct “Shares Buyback”

Enterprise DCF=Sum of Discounted Value from FCFs (inc. CV) DCF method: Value of Equity=DCF(operaxtions)+ Other Assets- Debt Equity Value per share =[DCF (adjusted) +Excess Mkt Securities +Financial Investments 3 variations on asset-based perspective on value: +Excess Pension Assets - (Debt +Cap. Op. Lease +Retirement Related Liability +Preferred a.Price/Asset backing Stock +Minority Interest +Long-Term Op. Provision +Restructuring Provision +Future Stock 1. Price/Net Book Value (NBV)= Ordinary Equity/No of Shares Options +Stock Options)}/ No.of Shares Premium over NBV is sometimes attributed to ‘franchise value’ Total Funds Invested =Debt + Equity =Invested Capital +Non-Op. Assets 2. Price/Net Tangible Assets (NTA) =(Ordinary Equity -Intangible Asets)/No. of Operating Invested Capital=Ordinary Equity+ Debt- Other Non-Operating Assets (in BS) shares =Op. Working Capital +Net PPE+ Oth. Asset Net Other Liabs- On-going Op. provision+ Op. Preferred when valuing intangible assets is subjective (ex. Mastheads or licenses) Lease (+Goodwill & Amortization & Written off) Invested Cap. represents the total investor capital required to fund operations, without regard to how the capital is financed. Non-controlling Interest: or Minority Interest occurs when a 3rd party owns % of one of the company’s consolidated subsidiaries. ROIC =NOPLAT/Invested Capital in Operation ROIC w/ Goodwill&Acquired Intangibles: measures a company’s ability to create value after paying acquisition premiums ROIC w/o G&A: measures the competitiveness of the underlying business [also compare invested capital to check whether the difference of ROIC is attributed to non-operating performance] Cap. Turnover = Sales/Invested Cap. Op. margin = op. profit (before profit) ROIC= NOPLAT /Op. Invested Capital...