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| Preface | |
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| The Walmart Case Study | |
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| How This Book Is Structured | |
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| Financial Statements and Projections | |
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| The Income Statement | |
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| Revenue | |
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| Cost of Goods Sold | |
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| Gross Profit | |
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| Operating Expenses | |
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| Oilier Income | |
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| EBITDA | |
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| Depreciation and Amortization | |
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| EBIT | |
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| Interest | |
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| EBT | |
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| Taxes | |
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| Net Income | |
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| Non-Recurring and Extraordinary Items | |
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| Distributions | |
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| Net Income (as Reported) | |
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| Shares | |
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| Earnings per Share (EPS) | |
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| Walmart's Income Statement | |
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| Revenue | |
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| Getting to EBITDA | |
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| Digging up Depreciation | |
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| Cost of Goods Sold | |
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| Gross Profit | |
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| Selling, General, and Administrative Expenses | |
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| Other Income | |
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| EBITDA | |
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| Beyond EBITDA | |
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| Depreciation and Amortization | |
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| EBIT | |
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| Interest | |
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| EBT | |
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| Taxes | |
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| Net Income | |
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| Non-Recurring Events | |
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| Net Income (after Non-Recurring Events) | |
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| Distributions | |
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| Net Income (as Reported) | |
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| Shares and EPS | |
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| Income Statement-Making Projections | |
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| Revenue | |
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| Cost of Goods Sold | |
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| Operating Expenses | |
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| Depreciation and Amortization | |
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| Interest Income | |
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| Taxes | |
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| Non-Recurring Events | |
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| Non-Controlling Interest | |
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| Shares | |
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| Basic Shares Outstanding | |
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| Diluted Shares Outstanding and the Treasury Method | |
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| Earnings per Share | |
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| The Cash Row Statement | |
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| Cash from Operating Activities | |
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| Revenue | |
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| Cost of Goods Sold | |
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| Operating Expenses | |
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| Depreciation | |
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| Interest | |
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| Taxes | |
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| Cash from Investing Activities | |
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| Cash from Financing Activities | |
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| Financial Statement Flows Example | |
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| Walmart's Cash Flow Statement | |
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| Cash from Operating Activities | |
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| Cash from Investing Activities | |
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| Cash from Financing Activities | |
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| Cash Flow Statement-Making Projections | |
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| Cash from Operating Activities | |
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| The Seven Methods of Projections | |
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| Cash from Investing Activities | |
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| Proceeds from Disposal of Property and Equipment | |
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| Items Based on Cash Available | |
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| Cash Flow from Financing Activities | |
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| Dividends | |
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| Purchase of Common Stock | |
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| Purchase of Redeemable Non-Controlling Interest | |
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| Payment of Capital Lease Obligations | |
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| Other Financing Activities | |
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| Effect of Exchange Rate on Cash | |
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| Depreciation Schedule | |
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| Straight Line Depreciation | |
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| Accelerated Depreciation | |
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| Declining Balance | |
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| Sum of the Year's Digits | |
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| Modified Accelerated Cost Recovery System (MACRS) | |
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| Deferred Taxes | |
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| Deferred Tax Asset | |
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| NOL Carryback Example | |
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| Deferred Tax Liability | |
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| Projecting Depreciation | |
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| Straight Line Depreciation | |
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| Anchoring Formula References | |
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| Accelerated Depreciation | |
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| Working Capital | |
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| Operating Working Capital | |
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| Walmart's Operating Working Capital | |
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| Receivables | |
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| Inventory | |
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| Prepaid Expenses | |
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| Accounts Payable | |
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| Accrued Liabilities | |
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| Accrued Income Taxes | |
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| Projecting Operating Working Capital | |
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| Receivables | |
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| Inventories | |
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| Prepaid Expenses | |
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| Accounts Payable | |
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| Accrued Liabilities | |
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| Accrued Income Taxes | |
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| Operating Working Capital and the Cash Flow Statement | |
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| Changes in Accounts Receivable | |
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| Inventories | |
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| Prepaid Expenses | |
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| Changes in Accounts Payable | |
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| Changes in Accrued Liabilities | |
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| Changes in Accrued Income Taxes | |
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| The Balance Sheet | |
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| Assets | |
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| Current Assets | |
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| Cash and Cash Equivalents | |
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| Accounts Receivable | |
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| Inventory | |
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| Prepaid Expense | |
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| Non-Current Assets | |
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| Property, Plant, and Equipment (PP&E) | |
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| Intangible Assets | |
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| Liabilities | |
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| Current Liabilities | |
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| Accounts Payable | |
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| Accrued Liabilities | |
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| Short-Term Debts | |
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| Non-Current Liabilities | |
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| Long-Term Debts | |
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| Deferred Taxes | |
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| Walmart's Balance Sheet | |
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| Current Assets | |
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| Non-Current Assets | |
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| Goodwill | |
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| Other Assets and Deferred Charges | |
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| Current Liabilities | |
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| Non-Current Liabilities | |
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| Deferred Taxes | |
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| Redeemable Non-Controlling Interest | |
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| Shareholders' Equity | |
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| Balance Sheet Projections | |
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| Cash Flow Statement Drives Balance Sheet vs. Balance Sheet Drives Cash Flow Statement | |
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| Assets | |
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| Accounts Receivable | |
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| Inventory | |
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| Liabilities | |
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| Accounts Payable | |
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| Balancing an Unbalanced Balance Sheet | |
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| NYSF Balance Sheet Balancing Method | |
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| The Debt Schedule, Circular References, and Finalizing the Modal | |
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| Debt Schedule Structure | |
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| Modeling the Debt Schedule | |
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| Short-Term Debt | |
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| Mandatory Issuances/(Retirements) and Non-Mandatory Issuances/(Retirements) | |
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| Long-Term Debt Due within One Year | |
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| Obligations Under Capital Leases Due Within One Year | |
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| Long-Term Debt | |
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| Long-Term Obligations under Capital Leases | |
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| Total Issuances/(Retirements) | |
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| Total Interest Expense | |
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| Cash Available to Pay Down Debt | |
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| Circular References | |
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| Circular Reference #Value! Errors | |
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| Automatic Debt Paydowns | |
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| Bask Switches | |
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| Finalizing the Model | |
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| Valuation | |
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| What Is Value? | |
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| Book Value | |
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| Market Value | |
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| Enterprise Value | |
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| Multiples | |
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| Three Core Methods of Valuation | |
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| Comparable Company Analysis | |
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| Precedent Transactions Analysis | |
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| Purchase Multiples | |
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| Discounted Cash Flow Analysis | |
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| Discounted Cash Flow Analysis | |
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| Mid-Year vs. End-of-Year Convention | |
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| Unlevered Free Cash Flow | |
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| Weighted Average Cost of Capital (WACC) | |
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| Cost of Debt | |
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| Cost of Equity | |
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| Market Risk Premium | |
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| Beta | |
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| Levering and Unlevering Beta | |
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| Terminal Value | |
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| Multiple Method | |
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| Perpetuity Method | |
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| Walmart DCF Analysis | |
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| WACC | |
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| Cost of Equity | |
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| EBITDA Method | |
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| Perpetuity Method | |
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| Comparable Company Analysis | |
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| Last Twelve Months (LTM) | |
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| Calendarization | |
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| Costco as a Comparable Company | |
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| Costco Adjusted 2012 Year End | |
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| Costco Adjusted LTM Data | |
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| Costco Annual Income Statement | |
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| Revenue | |
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| COGS and Operating Expenses | |
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| Depreciation | |
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| Interest | |
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| Taxes | |
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| Non-Controlling Interests | |
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| Non-Recurring Events | |
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| Earnings per Share (EPS) | |
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| Costco Quarterly Income Statement | |
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| Backing into Q4 | |
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| Costco Year-End and LTM Adjustments | |
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| Costco Projections | |
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| Revenue | |
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| COGS | |
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| Depreciation | |
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| Other Income | |
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| Taxes | |
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| Non-Controlling interests | |
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| Shares and Earnings per Share | |
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| Calculating Comparable Metrics | |
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| Diluted Shares Outstanding and the Treasury Stock Method | |
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| Costco Market Value and Enterprise Value | |
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| Multiples | |
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| Precedent Transactions Analysis | |
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| Identifying Precedent Transactions | |
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| Walmart Precedent Transaction Analysis | |
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| Conclusion | |
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| 52-Week High/Low | |
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| Comparable Company Analysis | |
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| Precedent Transactions | |
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| Discounted Cash Flow | |
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| Model Quick Steps | |
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| Financial Statement Flows | |
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| Excel Hotkeys | |
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| About the Author | |
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| About the Companion Web Site | |
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| Index | |