Create Stock Value

1
Create Stock Value
Time Value
Risk
Financing
Cash Flows
Investment
2
Create Stock Value
Time Value
Risk
Financing
Cash Flows
Investment
Past Performance
Fin Statements
Ratio Analysis
Expd Growth
Pro-Forma St
Sustainable Growth
3
Expected Growth
Sustainable Growth
Pro-Forma Statements
Assumptions
EFN (or AFN)
WC Policy
Past Ratios
Capacity Usage
Sales growth(g)
Full/Excess
CCC
Longer horizon
Asset intensity(A/S)
Relaxed vs Restricted
Oper Liab Ratio(OCL/S)
Risk and Return
Profit margin (m)
Fluctuations
Dividend payout(a)
Seasonal
Debt-equity(L)
Cyclical
Inflation
4
Expected Growth
Sustainable Growth
Pro-Forma Statements
Assumptions
EFN (or AFN)
of Sales Method
Formula
EFN(A/S-OCL/S)Sg-ms(1-a)(1L)
Pro-Forma Statement
Income Stat
Balance Sheet
Financing Plan
2nd and 3rd Pass
5
Expected Growth
Sustainable Growth
Pro-Forma Statements
gm(1-a)(1L)/A/S-OCL/S-m(1-a)(1L)
Assumptions
EFN (or AFN)
Sensitivity
Implications Actual ggtltg
6
Expected Growth
Sustainable Growth
Pro-Forma Statements
gm(1-a)(1L)/A/S-OCL/S-m(1-a)(1L)
Assumptions
EFN (or AFN)
Sensitivity
WC Policy
Past Ratios
Capacity Usage
of Sales Method
Implications Actual ggtltg
Formula
Sales growth(g)
Full/Excess
CCC
EFN(A/S-OCL/S)Sg-ms(1-a)(1L)
Longer horizon
Asset intensity(A/S)
Relaxed vs Restricted
Pro-Forma Statement
Oper Liab Ratio(OCL/S)
Risk and Return
Income Stat
Profit margin (m)
Fluctuations
Balance Sheet
Dividend payout(a)
Seasonal
Financing Plan
Debt-equity(L)
Cyclical
2nd and 3rd Pass
Inflation