Information Sources and Tools for Live Case Studies


Information Sources/ Web Links



You can get the annual reports of some companies on line at If that does not work, you can always try the home page for the company. Many companies have their annual reports online.

To find out more about how much the CEO earned and how he or she earned it, as well as who sits on the board of directors and how much stock they own, go over to the official SEC site that is Once you have found your firm, look for the most recent 14DEF filing made by the firm. This has information on the stock owned by directors, what their other connections to the firm are and how they are compensated. You can also find out who sits on the compensation committee. You can also find out a little more about the people who serve on the board of directors, by visiting the web site called You can also get more information on recent filings with the SEC on insider trading and holdings from For a description of the registration statement numbers and what is in them go to the official SEC site and look up the descriptions of the different statements.

To get some external perspective on how the board of directors of your company measures up in terms of keeping an ey on management, you might want to look at what one our largest (and one of the earliest active investors) CALPERS has to say about the issue of corporate governance at They highlight 10 companies that they choose to focus on for severely underperforming their peer groups. You should also check Business Week’s annual issue ranking the boards of directors of large U.S. companies. The most recent issue can be obtained on line at .

To get a sense of how much and how your CEO is paid, you should check Forbes, which carry annual rankings on this matter. Forbes has an online site that ranks CEO compensation and provides the company’s rankings in terms of performance - see . If you dig a little deeper, this same site breaks down the CEO’s compensation into its different components.

Data Sets

Insiders.xls: Insider and institutional holdings by sector


The information needed to compute financial ratios should be in the firm’s current financial statements. You can obtain the most recent income statement and balance sheet from the annual report of the company at The more detailed information (on operating leases, for instance) is the firm’s filings with the SEC (10-K, 10-Q etc.) which is available at


Oplease.xls: Converts operating leases into debt.

R&D.xls: Capitalizes R&D expenses into research asset.


You can get information on insider and institutional holdings for your firm in the Yahoo! Finance page at The insitutional ownership can also be obtained from the daily stocks web site, under - institutional ownership. You can also get an update on companies where there has been significant insider activity at You can also get a sense of how this firm is classified (value versus growth, small versus large cap) by going into the Morningstar web site and entering the symbol for your firm ( - quicktake reports). When you get the company’s snap shot, click on Investment Style.

Data Sets

Insiders.xls: Insider and institutional holdings by sector


You can get a beta for your firm by going to and entering the symbol for your firm. You can also get the beta for comparable firms on the same site, and use this information to get an unlevered beta for these firms. (Since only the average book debt to equity ratio for these comparable firms is reported on this site, you will have to convert it into a market debt to equity ratio, by dividing by the average price to book ratio that is provided for comparable firms: Market debt to equity = Book debt to equity/ Price to Book ratio.)

To get the breakdown of operating income and revenue by business sector, you might want to check the annual report ( ) and the 10-K report ( ). The market value of equity and the inputs needed for estimating the market value of debt should be available in the same sources. (The maturity of the debt should be listed as a footnote to the balance sheet in the 10-K report.)

To find the rating for your company, you can check You can look for corporate bonds issued by your company in this site, and if you can find one, you will also be able to get the rating for the bond. You can also e-mail a ratings request to Standard and Poors at

Data Sets

beta.xls: Levered and unlevered beta by sector

wacc.xls: Cost of capital and debt ratios by sector


Risk.xls: Regression to obtain beta estimate for a firm: requires stock and market returns

Ratings.xls: Estimation of synthetic ratings, using interest coverage ratios.

Levbeta.xls: Estimation of levered beta, given unlevered beta, debt and equity values.


The breakdown of your firm into different business segments should be available in the 10-K for your firm at To obtain the bottom-up beta for each segment, you can try to find a publicly traded firm in each segment in Yahoo! Finance at, You can then look up the average beta of comparable firms and the average debt to equity ratio (see note under chapter 7)

Data Sets

beta.xls: Levered and unlevered beta by sector

wacc.xls: Cost of capital and debt ratios by sector


There is no consistent source of project information. You might sometimes find descriptions of projects in the annual report at or in reports in the Wall Street Journal archives (, if you have a subscription to WSJ interactive),



Firms sometimes specify their objectives (double revenues within 5 years… increase our return on equity by 2%…) in their annual reports. They almost never specify investment decision rules, though managers may sometimes mention them in the context of explaining why they made a specific investment.



The data for this part of the analysis is usually difficult to come by. Firms do break down operations by regions of the world and sometimes, by country in their 10-Ks (at and annual reports ( This information can be used to answer both questions, especially for US firms, since it is foreign investments that are likely to be exposed to inflation risk. For a company whose domestic market is a high-inflation, emerging market, the two questions can be separated.

Data Sets:

ctryprem.xls: Country risk premiums


There should be a complete breakdown of a firm’s investment in the various components of working capital in its financial statements that are available in the annual report ( or the Edgar filings(at

Data Sets:

wcdata.xls: Working capital ratios, by sector.


You can get a break down of a firm’s holdings into cash and marketable securities in its balance sheet. Ks (at Holdings in marketable securities should be shown in more detail in the 10-K or as a footnote to the balance sheet. The method of accounting used by the company will also be explained as part of the financial statements.

Data Sets:

beta.xls: Contains cash as a percent of firm value.

wcdata.xls: Contains cash as percent of revenues


This is primarily a qualitative assessment. Reading articles on the firm and the sector in which it operates is a good starting point. Fortune magazine ( has an annual issue in which they rank firms based upon economic value added. The Wall Street Journal ( ranks firms on the basis of returns earned for stockholders.

Data Sets:

eva.xls: EVA and Equity EVA, by sector.


The information about current financing choices can almost all be extracted from the financial statements Ks (at The balance sheet should provide a summary of the book values of the various financing choices made by the firm, though hybrids are usually categorized into debt (if they are debt hybrids) and equity (if they are equity hybrids). The description of warrants outstanding as well as the details of the borrowing that the firm has should be available in the footnotes to the balance sheets. In particular, the maturity dates for different components of borrowing, the coupon rates and information on any other special features should be available in the footnotes.



You can get information on recent security offerings (equity as well as debt) can be obtained from the filings made by the firm with the Securities and Exchange Commission. Information on prospective initial public offerings is available at or To examine the filings that publicly traded firms made when at the time of their initial public offerings, you can check the filings with the SEC. These are available at



To find out the break down on the types of securities and financing that your company has outstanding, check the footnotes on the 10-K report ( ). To get the other inputs needed for the analysis, you should check the historical financials on the firm.

Data Sets:

dbtfund.xls: EVA and Equity EVA, by sector.


To get the inputs needed to estimate the optimal capital structure, examine the 10-K report ( ) or the annual report. You get a list of the comparable firms on the Yahoo! finance site ( - enter a symbol and pick the industry comparison). You can also see the updated regression for debt ratio against fundamentals for the US market at


capstru.xls: Optimal capital structure for a non-financial service firm.

capstruo.xls: Optimal capital structure for a financial service firm.


To get the inputs needed for the regression of firm value changes against changes in macroeconomic variables, you will need to first obtain historical data on your firm’s operating income and firm value ( ). The macro-economic data on interest rates, inflation rates, currency rates and GDP can be accessed at Federal Reserves’s data sites.


dursect.xls: Duration estimates, by sector.


macro.xls: Regresses firm value and operating income changes against changes in macro variables.


You can get information about dividends paid and stock bought back over time from the financial statements of the firm. The statement of changes in cash flows is usually the best source for both. ( )


divfund.xls: Dividend fundamentals, by sector.


You can get the information that you need to estimate free cash flows to equity and returns on equity from past financial statements — stock buybacks will be in the statements of cash flows. To see what returns you would have made on your stock over the last 5 years examine the calendar returns portion of the page on your firm at


divfcfe.xls: Dividends and FCFE, by sector.

roe.xls: Return on capital and equity, by sector.


dividends.xls: Anlalyzes cash returned to stockholders.


You can get the information that you need on past dividends by visiting any of the sites that provide historical information over time, including Morningstar ( and Marketguide ( The historical information will also be useful in assessing the stability of earnings and excess cash flows.

To get returns on the different businesses that a firm is in, look at the latest 10-K. Firms break down operating income by division and sometimes the capital invested in each division (



Most of the information that you need for valuation come from your current or past financial statements. You will also need a beta (see risk and return section) and a debt ratio (see risk and return section) to estimate the free cash flows to equity. To get an analyst estmate of expected growth in earnings per share over the next 5 years, check the morningstar web site ( ) that provides the consensus estimate for analyst projections for your firm.

To see industry averages for betas, fundamentals and other inputs, you might want to check the industry averages on my web site (indval.xls).

To examine how your firm ranks relative to the industry on the basis of multiples such as PE, PBV or PS ratios check out the valuation section of the marketguide web site ( )


valfund.xls: Fundamentals for valuation, by sector.

indmult.xls: Averages of PE, PBV and PS ratios, by sector.


divginzu.xls: To value financial service firms

fcffginzu.xls: To value non-financial firms past the early stages of growth.

higrowth.xls: To value non-financial firms, early in the life cycle.


The information you need to compute EVA and CFROI should be in your firm’s financial statements. ( )


eva,xls: EVA and return spreads, by sector.

valfund.xls: Valuation fundamentals, by sector.


Same as chapter 24.


It is difficult to make a quantitative assessment of acquisitions in the abstract. It is much easier to analyze an announced deal, because both the acquirer and the target are identified, the motive specified and the expected benefits sometimes quantified. If your firm has a deal on the table or one that it has done recently, use the information on the deal. You can find information on past deals, both in the firm’s own financial statements and in publications that report information on acquisitions that have occurred.

If your firm has not done a deal recently, this analysis becomes much more abstract. The statements that you will make will then be about acquisition strategy rather than a specific acquisition.


synergy.xls: Estimate the value of synergy in a merger.

merglbo.xls: Estimate the viability of a leveraged buyout.


If you are analyzing a natural resource company (say, an oil company), you will find information on undeveloped reserves in the 10-K. It is far more difficult to get the information needed to value patents, unless you have access to internal information. The inputs needed to value flexibility should also be in the 10-K, ( )


indvar.xls: Standard deviation in firm value, by sector.


flexval.xls: Estimate the value of financial flexibility in your firm.