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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 | |