Bottom up unlevered beta

Business
Engineering & Const
Building Materials
Machinery
Aerospace/Defense
Air Transport

Total operating businesses

Other inputs
Cash
Total Debt
PV of lease commitments
Market capitalization
Marginal tax rate
Unlevered beta for operating assets =
Unlevered beta for company =
D/E ratio =
Levered beta for operating assets =
Levered beta for company =

Revenues
EV/Sales
Estimated val
$12,056.00
0.50351
$6,070.35
$17,090.00
1.54177 $26,348.78
$13,964.00
1.54674 $21,598.73
$8,334.00
0.93708
$7,809.67
$6,791.00
0.78147
$5,306.98

$58,235.00

$67,134.51

$4,819
$24,020 (See worksheet for converting book va
$2,265 ( See worksheet for converting leases)
$84,050
40% (See worksheet for marginal tax rate, b
1.0911
1.0181
31.27%
1.2959
1.2091

Weights
Pure play beta
9.04%
1.3963
39.25%
1.0521
32.17%
1.1831
11.63%
0.9164
7.91%
0.8189

100.00%

Weight* Beta
0.12625087
0.41291925
0.38062211
0.10660346
0.06473549

1.09113118

r converting book value of interest bearing debt to market value)

or converting leases)

r marginal tax rate, by country)

Industry Name
Advertising
Aerospace/Defense
Air Transport
Apparel
Auto Parts
Automotive
Bank
Bank (Midwest)
Beverage
Biotechnology
Building Materials
Cable TV
Chemical (Basic)
Chemical (Diversified)
Chemical (Specialty)
Coal
Computer Software
Computers/Peripherals
Diversified Co.
Drug
E-Commerce
Educational Services
Electric Util. (Central)
Electric Utility (East)
Electric Utility (West)
Electrical Equipment
Electronics
Engineering & Const
Entertainment
Entertainment Tech
Environmental
Financial Svcs. (Div.)
Food Processing
Foreign Electronics
Funeral Services
Furn/Home Furnishings
Healthcare Information
Heavy Truck & Equip
Homebuilding
Hotel/Gaming
Household Products
Human Resources
Industrial Services
Information Services
Insurance (Life)
Insurance (Prop/Cas.)
Internet
Investment Companies
IT Services
Machinery
Maritime

Number of Firms
32
66
36
54
54
12
416
68
35
214
43
20
18
33
70
20
191
81
113
223
64
33
20
17
15
64
123
30
76
42
84
256
119
10
6
32
20
23
22
57
27
25
136
28
32
62
194
31
63
94
51

Average Beta
1.68
0.98
1.03
1.36
1.76
1.73
0.77
0.89
0.95
1.23
1.57
1.40
1.37
1.55
1.18
1.47
0.98
1.37
1.22
1.08
1.05
0.91
0.57
0.43
0.58
1.43
1.22
1.28
1.60
1.11
0.66
1.34
0.87
1.10
1.12
1.63
0.97
1.80
1.55
1.65
0.98
1.38
0.97
1.25
1.44
0.85
1.17
1.27
1.05
1.26
1.51

Market D/E Ratio

40.84%
26.64%
59.08%
13.77%
24.37%
103.42%
128.23%
49.85%
22.29%
15.92%
65.24%
66.11%
24.73%
16.69%
20.53%
68.38%
6.55%
9.70%
78.69%
14.79%
6.74%
24.73%
85.00%
67.90%
81.37%
12.28%
22.46%
13.23%
33.87%
11.54%
43.07%
204.42%
23.50%
45.71%
49.48%
22.06%
11.62%
47.30%
49.57%
44.75%
18.11%
10.80%
36.56%
28.46%
55.85%
21.48%
2.29%
7.55%
5.72%
17.39%
181.21%

Tax Rate Unlevered Beta

16.02%
1.25
20.08%
0.81
21.35%
0.70
18.57%
1.23
18.77%
1.47
16.24%
0.93
16.39%
0.37
20.99%
0.64
18.82%
0.80
2.98%
1.07
9.48%
0.99
21.23%
0.92
21.89%
1.15
19.75%
1.37
15.35%
1.00
11.27%
0.91
12.43%
0.92
10.01%
1.26
17.18%
0.74
5.14%
0.94
10.52%
0.99
21.72%
0.76
30.12%
0.36
33.49%
0.29
29.09%
0.37
16.15%
1.29
11.31%
1.01
25.00%
1.17
12.56%
1.24
11.01%
1.01
7.60%
0.48
16.23%
0.49
21.63%
0.74
23.12%
0.81
28.66%
0.83
16.69%
1.37
20.31%
0.88
22.74%
1.32
7.12%
1.06
17.52%
1.21
24.66%
0.86
26.61%
1.28
20.19%
0.75
18.33%
1.01
21.09%
1.00
10.73%
0.71
8.43%
1.15
2.26%
1.18
16.27%
1.00
22.73%
1.11
7.92%
0.57

Cash/Firm Value
13.12%
11.74%
14.13%
5.13%
11.65%
16.84%
16.43%
15.03%
4.33%
18.10%
6.18%
3.61%
7.52%
6.96%
4.58%
7.67%
16.59%
9.78%
14.07%
8.25%
9.21%
30.24%
1.03%
1.81%
1.88%
10.95%
13.01%
16.52%
5.81%
24.21%
2.45%
12.46%
3.74%
27.40%
2.94%
6.52%
10.06%
9.15%
15.14%
6.43%
2.52%
12.49%
9.21%
3.48%
28.90%
20.86%
12.04%
2.64%
10.31%
6.04%
6.05%

Unlevered Beta corrected for cash

1.44
0.92
0.82
1.29
1.66
1.11
0.45
0.76
0.84
1.30
1.05
0.96
1.24
1.47
1.05
0.99
1.11
1.39
0.86
1.03
1.09
1.09
0.36
0.30
0.38
1.45
1.17
1.40
1.31
1.33
0.49
0.56
0.77
1.12
0.85
1.47
0.98
1.45
1.25
1.29
0.88
1.46
0.83
1.05
1.41
0.90
1.31
1.21
1.11
1.18
0.60

EV/Sales
1.22
0.94
0.78
1.52
0.60
0.81
NA
NA
3.23
5.70
1.54
2.37
1.44
1.67
1.70
1.32
3.33
1.38
1.92
3.05
5.07
0.54
2.27
2.78
2.26
1.49
0.59
0.50
2.34
1.79
1.87
8.15
1.22
0.39
1.84
0.95
3.60
1.12
2.19
2.43
2.24
0.34
0.99
3.16
NA
NA
4.15
4.89
1.79
1.55
2.64

Med Supp Invasive

Med Supp Non-Invasive
Medical Services
Metal Fabricating
Metals & Mining (Div.)
Natural Gas (Div.)
Natural Gas Utility
Newspaper
Office Equip/Supplies
Oil/Gas Distribution
Oilfield Svcs/Equip.
Packaging & Container
Paper/Forest Products
Petroleum (Integrated)
Petroleum (Producing)
Pharmacy Services
Pipeline MLPs
Power
Precious Metals
Precision Instrument
Property Management
Public/Private Equity
Publishing
R.E.I.T.
Railroad
Recreation
Reinsurance
Restaurant
Retail (Hardlines)
Retail (Softlines)
Retail Automotive
Retail Building Supply
Retail Store
Retail/Wholesale Food
Securities Brokerage
Semiconductor
Semiconductor Equip
Shoe
Steel
Telecom. Equipment
Telecom. Services
Telecom. Utility
Thrift
Tobacco
Toiletries/Cosmetics
Trucking
Water Utility
Wireless Networking
Total Market

87
143
118
25
77
31
27
14
22
12
81
27
32
26
176
18
53
101
83
82
31
12
29
127
12
51
11
65
79
42
19
10
38
30
27
142
10
17
33
105
76
23
170
11
14
34
11
58
6177

0.87
1.07
0.84
1.63
1.62
1.28
0.46
1.86
1.43
1.02
1.66
1.20
1.37
1.17
1.45
1.17
0.74
1.35
1.03
1.27
1.30
2.02
1.17
1.43
1.32
1.45
0.82
1.16
1.79
1.43
1.39
1.11
1.29
0.68
1.07
1.49
1.79
1.26
1.65
1.07
1.15
0.92
0.68
0.86
1.17
1.09
0.49
1.35
1.17

16.48%
12.89%
50.23%
23.59%
15.42%
41.08%
66.15%
39.29%
72.14%
53.39%
27.72%
56.17%
43.01%
20.47%
28.12%
18.88%
44.37%
163.45%
13.65%
21.21%
112.58%
28.73%
36.14%
37.01%
23.46%
37.75%
18.90%
13.15%
26.01%
5.59%
44.33%
11.72%
25.58%
34.84%
264.59%
10.06%
16.98%
1.94%
56.21%
13.31%
31.82%
108.25%
19.50%
18.87%
20.63%
42.33%
73.18%
25.67%
42.92%

12.60%
10.61%
17.72%
23.30%
11.24%
22.02%
28.80%
18.35%
22.66%
18.11%
18.20%
23.09%
11.43%
30.34%
11.71%
23.18%
4.30%
6.19%
11.13%
14.13%
16.50%
19.17%
22.69%
0.04%
28.60%
20.31%
3.58%
19.23%
22.55%
25.57%
32.69%
25.56%
24.83%
31.18%
30.41%
11.71%
15.21%
19.89%
24.24%
14.01%
16.22%
26.94%
15.84%
32.82%
27.33%
25.94%
31.45%
10.06%
14.93%

0.76
0.96
0.59
1.38
1.42
0.97
0.31
1.41
0.91
0.71
1.35
0.84
0.99
1.02
1.16
1.02
0.52
0.53
0.92
1.07
0.67
1.64
0.92
1.04
1.13
1.11
0.69
1.05
1.49
1.37
1.07
1.02
1.08
0.55
0.38
1.37
1.57
1.24
1.16
0.96
0.91
0.51
0.58
0.76
1.01
0.83
0.33
1.10
0.86

7.36%
13.33%
10.82%
11.91%
7.45%
4.36%
2.41%
5.91%
13.12%
1.26%
6.40%
5.10%
7.35%
7.03%
3.81%
5.11%
0.74%
7.85%
7.93%
11.37%
8.37%
15.39%
4.97%
6.78%
1.69%
5.79%
24.61%
3.42%
9.96%
8.96%
2.50%
1.97%
4.67%
5.46%
43.53%
14.48%
21.91%
8.93%
8.82%
30.13%
8.92%
3.31%
25.18%
3.21%
6.80%
5.15%
0.54%
6.00%
10.66%

0.82
1.10
0.66
1.56
1.54
1.01
0.32
1.50
1.05
0.72
1.45
0.88
1.07
1.10
1.21
1.07
0.52
0.58
1.00
1.21
0.73
1.94
0.96
1.12
1.15
1.18
0.91
1.08
1.65
1.51
1.10
1.04
1.14
0.58
0.66
1.60
2.01
1.37
1.27
1.37
1.00
0.53
0.78
0.79
1.09
0.87
0.33
1.17
0.96

2.71
0.78
0.74
1.28
2.18
2.89
1.03
1.57
0.46
3.42
2.00
1.08
1.18
0.70
1.26
0.66
1.70
1.51
3.64
1.89
3.12
4.00
1.32
13.11
3.32
1.70
NA
2.46
0.87
1.14
0.93
1.31
0.61
0.43
3.23
2.16
1.44
1.42
0.73
1.27
1.91
1.77
NA
2.30
1.37
0.82
4.36
2.68
1.64

Inputs
$23,221.00
893 (Gross interest expense, if you can get it)
12.45
3.50%

Book value of debt

Interest expense
Average maturity
Pre-tax cost of debt
Estimated market value of debt

Due in
2013
2013
2015
2015
2016
2017
2017
2018
2019
2019
2019
2020
2020
2021
2021
2022
2022
2027
2028
2029
2035
2036
2036
2038
2038
2040
2042
2018
2018

$24,019.94

Face value
Maturity
$1,000.00
$500.00
$1,000.00
$1,200.00
$291.00
$1,000.00
$1,500.00
$99.00
$300.00
$1,250.00
$272.00
$1,250.00
$171.00
$295.00
$250.00
$2,300.00
$1,100.00
$141.00
$400.00
$550.00
$600.00
$600.00
$134.00
$159.00
$1,000.00
$1,000.00
$3,500.00
$100.00
$403.00
$22,365.00

0
0
2
2
3
4
4
5
6
6
6
7
7
8
8
9
9
14
15
16
22
23
23
25
25
27
29
5
5

ss interest expense, if you can get it)

Book interest rate =

Weight
4.47%
2.24%
4.47%
5.37%
1.30%
4.47%
6.71%
0.44%
1.34%
5.59%
1.22%
5.59%
0.76%
1.32%
1.12%
10.28%
4.92%
0.63%
1.79%
2.46%
2.68%
2.68%
0.60%
0.71%
4.47%
4.47%
15.65%
0.45%
1.80%
100.00%

3.85%

Weight * Maturity
0
0
0.08942544
0.10731053
0.03903421
0.17885088
0.26827632
0.0221328
0.0804829
0.33534541
0.07297116
0.39123631
0.05352113
0.10552202
0.08942544
0.92555332
0.44265594
0.08826291
0.26827632
0.39347194
0.59020791
0.61703555
0.13780461
0.17773307
1.11781802
1.20724346
4.53834116
0.02235636
0.09009613
12.4503912

OperatingLeaseConverter

Operatingleaseexpensesarereallyfinancialexpenses,andshouldbetreatedassuch.Accountingstandardsallow
betreatedasoperatingexpenses.Thisprogramwillconvertcommitmentstomakeoperatingleasesintodebtand
adjusttheoperatingincomeaccordingly,byaddingbacktheimputedinterestexpenseonthisdebt.
Inputs
Operatingleaseexpenseincurrentyear=
OperatingLeaseCommitments(Fromfootnotetofinancials)
Year
Commitment
!Year1isnextyear,.
1
$646.00
2
$444.00
3
$444.00
4
$206.50
5
$206.50
6andbeyond
$539.00
PretaxCostofDebt=

3.00%

Fromthecurrentfinancialstatements,enterthefollowing
ReportedOperatingIncome(EBIT)=
ReportedDebt=
ReportedInterestExpenses=
Output
Numberofyearsembeddedinyr6estimate=
ConvertingOperatingLeasesintodebt
Year
Commitment
1 $646.00
2 $444.00
3 $444.00
4 $206.50
5 $206.50
6andbeyond
$539.00
DebtValueofleases=

$646.00

$10,000.00 !ThisistheEBITreportedinthecurrentincomesta
$25,000.00 !Thisistheinterestbearingdebtreportedontheba
$2,000.00
1

!Iusetheaverageleaseexpenseoverthefirstfivey
toestimatethenumberofyearsofexpensesinyr6

PresentValue
$627.18
$418.51
$406.32
$183.47
$178.13
$451.40 !Commitmentbeyondyear6convertedintoanannuityfortenyears
$2,265.03

OperatingLeaseConverter

edassuch.Accountingstandardsallowthemto
omakeoperatingleasesintodebtand
estexpenseonthisdebt.

istheEBITreportedinthecurrentincomestatement
istheinterestbearingdebtreportedonthebalancesheet

theaverageleaseexpenseoverthefirstfiveyears
matethenumberofyearsofexpensesinyr6

6convertedintoanannuityfortenyears

Country
Afghanistan
Albania
Angola
Argentina
Armenia
Aruba
Australia
Austria
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Bermuda
Bolivia
Bonaire
Bosnia and Herzegovina
Botswana
Brazil
Bulgaria
Cambodia
Canada
Cayman Islands
Chile
China
Colombia
Costa Rica
Croatia
Curacao
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
Estonia
El Salvador
Fiji
Finland
France
Georgia
Germany
Gibraltar
Greece

2012
20.00%
10.00%
35.00%
35.00%
20.00%
28.00%
30.00%
25.00%
0.00%
0.00%
27.50%
25.00%
18.00%
33.99%
0.00%
25.00%
0.00%
10.00%
22.00%
34.00%
10.00%
20.00%
26.00%
0.00%
18.50%
25.00%
33.00%
30.00%
20.00%
27.50%
10.00%
19.00%
25.00%
29.00%
23.00%
25.00%
21.00%
30.00%
28.00%
24.50%
33.33%
0.00%
29.48%
10.00%
20.00%

Guatemala
Guernsey
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Isle of Man
Israel
Italy
Jamaica
Japan
Jersey
Jordan
Kazakhstan
Kenya
Korea, Republic of
Kuwait
Latvia
Libya
Liechtenstein
Lithuania
Luxembourg
Macau
Macedonia
Malawi
Malaysia
Malta
Mauritius
Mexico
Montenegro
Mozambique
Namibia
Netherlands
New Zealand
Nigeria
Norway
Oman
Pakistan
Panama
Papua New Guinea
Paraguay
Peru
Philippines

31.00%
0.00%
35.00%
16.50%
19.00%
20.00%
32.45%
25.00%
12.50%
0.00%
25.00%
31.40%
33.33%
38.01%
0.00%
14.00%
20.00%
30.00%
24.20%
15.00%
15.00%
20.00%
12.50%
15.00%
28.80%
12.00%
10.00%
30.00%
25.00%
35.00%
15.00%
30.00%
9.00%
32.00%
34.00%
25.00%
28.00%
30.00%
28.00%
12.00%
35.00%
25.00%
30.00%
10.00%
30.00%
30.00%

Poland
Portugal
Qatar
Romania
Russia
Saba
Samoa
Saudi Arabia
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
St Eustatius
St Maarten
Sudan
Sweden
Switzerland
Syria
Taiwan
Tanzania
Thailand
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe
Africa average
North America average
Asia average
Europe average
Latin America average
Oceania average
EU average

19.00%
25.00%
10.00%
16.00%
20.00%
0.00%
27.00%
20.00%
10.00%
17.00%
19.00%
18.00%
34.55%
30.00%
28.00%
0.00%
34.50%
35.00%
26.30%
21.17%
28.00%
17.00%
30.00%
23.00%
25.00%
30.00%
20.00%
30.00%
21.00%
55.00%
24.00%
40.00%
25.00%
0.00%
34.00%
25.00%
20.00%
35.00%
25.75%
29.02%
33.00%
22.89%
20.50%
28.30%
28.60%
22.60%

OECD average
Global average

25.25%
24.43%