Valuation formulas Flashcards
NOPAT
Net operating profit after tax
EBIT - Operating Tax
EBIT
EBIT = Total revenue - COGS - Operating expenses - Depreciation & Amortization
EBIT = Net income + interest + taxes
Working Capital
Accounts receivable + inventory - accounts payable
CapEx
Property plant & equipment (current) - Property plant & equipment (prior) + depreciation
RONIC
Return on new invested capital
RONIC = Terminal growth / (1 - (( Terminal value * (WACC * terminal growth))/(NOPAT * (1 + Terminal Growth)))
NOPLAT in year one
EBIT * (1 - Tax)
Investment * ROIC
Enterprise Value
EV = NOPLAT *(1-g/ROIC)/(WACC-g)
Market Cap
EV-debt
ROIC
(operating income (1-tax rate))/Book value of invested capital
Net operating income
EBIT - Interest - Tax
EBIDTA
Net income + interest expense + tax + depreciation + amortisation
EBIDTA = Operating income + D&A
Gross profit
Gross profit = Total revenue - COGS
Difference between EBIDTA & Gross profit
Investors and analysts might want to break down the different profit metrics to peer into the workings of a company.
EBITDA helps to strip out management decisions or possible manipulation by removing debt financing for example
Gross profit can help analyze the production efficiency of a retailer that might have a lot of cost of goods sold
Total intangible assets
Good Will + Other intangible assets
Deferred tax
A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid
Total Current liabilities
ST interest bearing liabilities + Accounts payable + Current tax liabilities + Other current liabilities + Accrued expenses and deferred income
Accrued expenses and deferred income
Deferred revenue is the portion of a company’s revenue that has not been earned, but cash has been collected from customers in the form of a prepayment. Accrued expenses are the expenses of a company that have been incurred but not yet paid.
Balance Sheet (Assets)
Goodwill
Other intangible assets
= Total intangible assets
Land & buildings
Equipment, tools and fixtures
Construction in progress
= Total PP&E
Shares in associates
Other LT securities holdings
Other non-current receivables
= Total financial assets
Deferred tax assets
= Total non-current assets
Inventory Accounts receivable Current tax assets Other current receivables Prepaid expenses & accrued income Cash & bank
= Total current assets
Balance Sheet (Equity & Liabilities)
Share capital Other capital contributions Reserves Retained earnings Total common equity Non-controlling interests = Total equity
Provisions for pensions & similar LT Interest-bearing liabilities Deferred tax liability Other non-current liabilities = Total non-current liabilities
ST interest-bearing liabilities Accounts payable Current tax liabilities Other current liabilities Revolver Accrued expenses & deferred income = Total current liabilities
= Total equity & liabilities
Income statement (Axfood)
Total sales
- Cost of goods sold
= Gross profit
-Selling expenses
-Administrative expenses
Share of profit in associates
+Other operating income
- Other operating expense
- Total OPEX
= Operating profit (EBIT)
+ Interest income & similar items
- Interest expense & similar items
= Net financial items
= Profit before tax
- Current tax
- Deferred tax
- Accounting taxes, total
= Net profit
Resultat räkning (Swedish)
Nettoomsättning, aktiebolag (Total revenue)
- Kostnad sålda varor (COGS)
= Bruttoresultat
-Försäljningskostnader
-Administrationskostnader
-FoU-kostnader (R&D)
-Förändring av lager mm (Prior Inv - Current Inv)
-Aktiverat arbete egen räkning
-Råvaror & förnödenheter
-Handelsvaror
-Personalkostnader (Personal costs)
-Avskrivningar (Depreciation)
-Jämförelsestörande poster
-Övriga rörelseintäkter
-Övriga rörelseintäkter - funkindelat
-Övriga rörelsekostnader
-Övriga externa kostnader
= Rörelseresultat (EBIT)
Resultat från andelar i koncern- och intresseföretag Ränteintäkter från koncernbolag Externa ränteintäkter Räntekostnader till koncern Externa räntekostnader Övriga finansiella intäkter Övriga finansiella kostnader Jämförelsestörande finansiella poster Resultat efter finansnetto Extraordinära intäkter Extraordinära kostnader Koncernbidrag Aktieägartillskott Bokslutsdispositioner Skatt Minoritetsintressen = Årets resultat (Net income)
Cash Flow statement
Cash flow statement (as stated) Operating profit D&A charged against profit - Interest paid Interest received Adjustments for non-cash items - Paid tax = CFO before changes in NWC
Change in inventories
Change in current receivables
Change in current liabilities
Change in net working capital
= Cash flow from operating activities
Acquisitions of intangible assets Acquisitions of PP&E Acquisitions of operations Sale of operations Sale of PP&E Change in other financial assets = Cash flow from investing activities
New loans raised Revolver Amortization of debt Share repurchases Dividend paid out = Cash flow from financing activities
= Cash flow for the period
FCFF
Sales
EBITDA
Net working capital
% of sales
EBIT - Operating taxes = NOPAT \+ D&A \+ Other non-cash items - Capex \+/- Change in NWC = FCFF
Dupont break down
ROE CY17 ∆ Gross margin ∆ OPEX component ∆ D&A component ∆ Interest component ∆ Tax component ∆ Cash turnover ∆ Accounts receivables turnovers ∆ Inventory turnover ∆ Other current asset turnover ∆ Long-term asset turnover ∆ Equity multiplier Compounding effects ROE CY20
[variable name] CY20 - [variable name] CY17 = Delta
OPEX
Abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.
One of the typical responsibilities that management must contend with is determining how to reduce operating expenses without significantly affecting a firm’s ability to compete with its competitors.
ROE
Return on Equity = Net income / Shareholder equity
ROA
Return on Assets = Net income / Total Assets
Current Asset turnover
Current asset turnover = Sales/Current Asset Turnover
Cash turnover
Cash Turnover = Sales / Cash & Equivalents
