Project Instructions(1).pdf 172.96kb● pdfDownload

Sheet1
    Year    FCFF    Terminal Value    Present Value
    1    ($99,185.53)        ($87,073.59)
    2    ($122,578.50)        ($94,469.28)
    3    ($89,485.95)        ($60,543.75)
    4    ($47,177.38)        ($28,021.18)
    5    ($35,445.83)        ($18,482.29)
    6    $29,288.26        $13,502.86
    7    $124,343.44        $51,053.14
    8    $164,173.80        $60,467.09
    9    $284,321.75        $94,626.40
    10    $307,314.08    $6,195,142.08    $1,969,978.32
                $1,901,037.72
                $36,031.80
Option Valuation
    Valuing Options or Warrants when there is dilution                                Source: people.stern.nyu.edu/adamodar/pc/valns/amazon.xls
    Enter the current stock price =            1972
    Enter the strike price on the option =            18.71
    Enter the expiration of the option =            8
    Enter the standard deviation in stock prices =            50.00%    (volatility)
    Enter the annualized dividend yield on stock =            0.00%
    Enter the treasury bond rate =            5.00%
    Enter the number of warrants (options) outstanding =            6.01
    Enter the number of shares outstanding =            52.76
    VALUING WARRANTS WHEN THERE IS DILUTION
    Stock Price=        1972    # Warrants issued=        6.01
    Strike Price=        18.71    # Shares outstanding=        53
    Adjusted S (DO NOT ENTER)=        1970.5722243985    T.Bond rate=        5.00%
    Adjusted K (DO NOT ENTER)=        18.71    Variance=        0.2500
    Expiration (in years) =        8    Annualized dividend yield=        0.00%
                Div. Adj. interest rate=        5.00%
    d1 =    4.2829606996
    N (d1) =    0.9999907789
    d2 =    2.8687471372
    N (d2) =    0.9979394944
    Value of the call =        $1,958.04
    Number of Options =        6.01
    Value of Options =        $11,767.81
The Valuation of Amazon
        A Valuation of Amazon                                    Source: people.stern.nyu.edu/adamodar/pc/valns/amazon.xls
                                        Those cells in which amount are entered are marked in blue and amount in millions except share data)
        This model is designed to value a firm, with two stages of growth, an initial
        period of higher growth and a subsequent period of stable growth.
        Assumptions
        1. The firm is expected to grow at a higher growth rate in the first period.
        2. The growth rate will drop at the end of the first period to the stable growth rate.
        3. The free cashflow to equity is the correct measure of expected cashflows to stockholders.
        The user has to define the following inputs:
        1. Length of high growth period
        2. Expected growth rate in earnings during the high growth period.
        3. Capital Spending, Depreciation and Working Capital needs during the high growth period.
        4. Expected growth rate in earnings during the stable growth period.
        5. Inputs for the cost of capital. (Cost of equity, Cost of debt, Weights on debt and equity)
        Inputs to the model
        Current EBIT =        $12,421.00    (in currency)
        Current Net Income =        $10,073.00    (in currency)
        Current Dividends =        $0.00    ( in currency)
        Current Interest Expense =        $0.00    (in currency)
        Current Capital Spending        $13,427.00    (in currency)
        Current Depreciation =        $15,341.00    (in currency)
        Tax Rate on Income =        36.00%    (in percent)
        Current Revenues =        $232,887.00    ( in currency)
        Current Working Capital =        $72,043.00    (in currency)
        Chg. Working Capital =        $0.00    (in currency)
        Book Value of Debt =        $0.00    ( in currency)
        Book Value of Equity =        $213,356.00    (in currency)
        Weights on Debt and Equity
        Is the firm publicly traded ?                Yes    ( Yes or No)
        If yes, enter the market price per share =                $1,973.82    (in currency)
        & Number of shares outstanding =                491.20    (in #)
        & Market Value of Debt =                $0.00    ( in currency)
        If no, do you want to use the book value debt ratio ?                    (Yes or No)
        If no, enter the debt to capital ratio to be used =                    (in percent)
        Enter length of extraordinary growth period =            10    (in years)
        Costs of Components
        Do you want to enter cost of equity directly?            No    (Yes or No)
        If yes, enter the cost...