╨╧рб▒с>■ \s■ ]А ье┴c ┐O1jbjbЁSЁS Э|Ъ1Ъ1O- ]·······╩╩╩╩╩╓T╩_ъFFFFFFFF,I Ї=ЮJ·FFFFFJb··FFFbbbF╩·F·F6DЖ····Fb║b··*Цї╦▒╩╩RVariables used in Data Set
For many of the ratios, estimated on a sector basis, we used the cumulated values for the sector. As an example, the PE ratio for the sector is not a simple average of the PE ratios of individual firms in the sector. Instead, it is obtained by dividing the cumulated net income for the sector (obtained by adding up the net income of each firm in the sector) by the cumulated market value of equity of firm in the sector ( obtained by adding up the market values of all of the firms in the sector).
VariablesDescriptionAccounts Payable /SalesEstimated by dividing the cumulated accounts payable for the sector by the cumulated sales for the sector.Accounts Receivable
/SalesEstimated by dividing the cumulated accounts receivable for the sector by the cumulated sales for the sector.AlphaEstimated from the intercept of the monthly return regression of stock returns against market returns, using the last 5 years of data, as follows:
(JensenТs) Alpha = Intercept Ц Riskfree Rate (1 Ц Beta)
The number is annualized by compounding over 12 months.Annual ReturnsThe annual returns on stocks, bonds and bills are estimated by adding the price appreciation during the year to the dividends (or coupons) paid on the security during the year.BetaEstimated by regressing monthly returns on stock against NYSE composite, using 5 years of data or listed period (if less than 5 years). If data is available for less than 2 years, the beta is not estimated)Book Debt RatioThis is the book estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated book value of equity for the entire sector.BV of CapitalThis is the book value of debt plus the book value of common equity, as reported on the balance sheet.Cap Ex/ DepreciationEstimated by dividing the capital expenditures by depreciation. For the sector, we estimate the ratio by dividing the cumulated capital expenditures for the sector by the cumulated depreciation and amortization.Capital (Book Value)This is the book value of debt plus the book value of common equity, as reported on the balance sheet.Capital ExpendituresThis is the cumulated capital spending, as reported in the statement of cash flows, for the sector.CashEstimated as the cash balance reported in the balance sheet.Cost of CapitalThe weighted average of the cost of equity and after-tax cost of debt, weighted by the market values of equity and debt:
Cost of Capital = Cost of Equity (E/(D+E)) + After-tax Cost of Debt (D/(D+E))
For the weights, we use cumulated market values for the entire sector.Cost of Debt (After-tax)The after-tax cost of debt is:
After-tax cost of debt = Pre-tax Cost of debt (1 Ц tax rate)
The average effective tax rate for the sector is used for this computation.Cost of Debt (Pre-tax)This is estimated by adding a default spread to the riskfree rate. To estimate the default spread, we use the standard deviation in stock prices over the last 5 years. The higher the standard deviation, the higher the default sprad.Cost of EquityEstimated using the capital asset pricing model:
Cost of Equity = Riskfree Rate + Beta (Risk Premium)
The average beta for the sector is used. We use the 30-year treasury bond rate as the riskfree rate, and a 5.5% risk premium. You can change these inputs in the excel spreadsheet. D/(D+E)This is the market value estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated market value of equity for the entire sector. We assume that the book value of debt is roughly equal to the market value of debt.D/E RatioEstimated using cumulated market value of equity for the sector and cumulated debt for the sector:
Debt/Equity Ratio for Sector = Cumulated Debt for Sector/Cumulated Market Value of Equity
Debt is defined as including both short term and long term debt (but not accounts payable or non-interest bearing liabilities), and the book value of debt is used as a proxy for market value of debt.Debt Ratio (Book Value)This is the book estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated book value of equity for the entire sector.Debt Ratio (Market Value)This is the market value estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated market value of equity for the entire sector. We assume that the book value of debt is roughly equal to the market value of debt.Debt/Equity Ratio Estimated using cumulated market value of equity for the sector and cumulated debt for the sector:
Debt/Equity Ratio for Sector = Cumulated Debt for Sector/Cumulated Market Value of Equity
Debt is defined as including both short term and long term debt (but not accounts payable or non-interest bearing liabilities), and the book value of debt is used as a proxy for market value of debt.Default spreadThis is the spread added on to the riskfree rate to estimate a pre-tax cost of borrowing.DepreciationIncludes both depreciation and amortization, as reported in the statement of cash flows. For the sector, we use the cumulated value of depreciation and amortization.Dividend PayoutEstimated by dividing the cumulated dividends, for the sector, by the cumulated net income for the sector.Dividend YieldDividend per share divided by the current stock price. We have used the current annualized dividend per share (obtained by quadrupling the last quarterТs dividend per share)Earnings YieldThis is the inverse of the price/earning ratio and is computed by dividing the earnings per share by the price per shareEBITDAEstimated by adding depreciation and amortization back to operating income (EBIT)Effective tax rateThis is the effective tax rate, obtained by dividing the taxes paid by the taxable income as reported to the stockholders. We would rather have used marginal tax rates, but these are not reported.Equity EVA(Return on EquityЦ Cost of Equity) (BV of Equity)
See descriptions of each of these variables for more detail. We use the cumulated book value of equity for the entire sector.EVA(Return on Capital Ц Cost of Capital) (BV of Capital)
See descriptions of each of these variables for more detail.Fixed Assets/Total AssetsEstimated by dividing the cumulated book value of fixed assets, for the sector, by the cumulated total assets, for the sector.Fundamental growth in EPSFundamental Growth in EPS =Retention Ratio * ROE
See descriptions of these variables for more detailHistorical Growth RateObtained using this yearТs earnings per share and earnings per share from 5 years ago:
Historical Growth rate = (EPS (today)/EPS(5 years ago))^(1/5)
If EPS five years ago or today is negative, this number is not estimated.Implied Equity PremiumEstimated using the current level of index, the expected dividends on stock and the expected growth rate in earnings. The expected growth rate from 1960 to 1985 was estimated using historical growth rates. From 1985 onwards, we use the ZackТs consensus estimate of growth for the stocks in the S&P 500.Insider Holdings %Number of shares held by insiders (as defined by the SEC to include corporate officers and directors) as a percent of total stock outstandingInstitutional Holding %Number of shares held by mutual funds, pension funds and trusts as a percent of total stock outstandingInterest coverage ratioEstimated by dividing the after-tax operating income by the interest expense:
Interest coverage ratio = EBIT(1-t) / Interest ExpenseInventory/ SalesEstimated by dividing the cumulated inventory for the sector by the cumulated sales for the sectorMarket CapitalizationEstimated market value of equity, obtained by multiplying the number of shares outstanding by the share price.Market Debt RatioThis is the market value estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated market value of equity for the entire sector. We assume that the book value of debt is roughly equal to the market value of debt.Net Capital ExpendituresEstimated as the difference between capital expenditures and depreciation. For the sector, we use the cumulated values for both variables.Net MarginEstimated by dividing the net income by the total revenues
Net Margin = Net Income / Sales
To estimate the values for the sector, we use the cumulated values of net income and sales for the sector. Non-Cash Working Capital / SalesNon-cash Working Capital = Inventory + Accounts Receivable Ц Accounts Payable
For the sector, we use cumulated values for each of the variables.Operating IncomeUsed interchangeably with EBITOperating MarginEstimated by dividing the after-tax operating income by the total revenues:
Operating Margin = EBIT(1-t) / Sales
To estimate the values for the sector, we use the cumulated values of EBIT(1-t) and sales. The tax rate used is the effective tax rate, averaged across the sector.Reinvestment RateReinvestment Rate = (Net Capital Expenditures + Change in WC) / EBIT (1-t)
For the sector, we use the cumulated values of each of these variables for the sector.Retention RatioEstimated as follows:
Retention Ratio = 1 Ц Dividend Payout RatioROC (Return on Capital)Estimated by dividing the after-tax operating income by the book value of capital. We use the cumulated values for both variables, for the sector, to estimate the sector ROC.
ROC = EBIT (1-t) / (BV of Debt + BV of Equity)ROE (Return on Equity)Estimated by dividing the net income by the book value of equity. We use the cumulated values for both variables, for the sector, to estimate the sector ROE. If book value of equity is negative, this is not estimated.R-squaredEstimated from the monthly return regression of stock returns against market returns, using the last 5 years of data. This is the percent of the variation in stock returns, that is explained by market movements.Standard deviation in firm valueThe standard deviation in firm value is obtained using the following formula:
Variance in firm value = Variance in Equity Value (E/(D+E)2 + Variance in Debt (D/(D+E))2 + 2 (E/(D+E) (D/(D+E) (Std dev in Equity) (Std dev in debt) (Correlation between debt and equity)
Since variance in debt value is tough to obtain, we assume that it is roughly one-third the standard deviation in equity values (based upon the relative volatilities in equity and bond indices) and that the correlation between stock and bond prices is 0.3 (against based upon the correlation between equity and bond indices)Standard deviation in prices (equity)The standard deviation in monthly stock prices, estimated using 5-years of data. The number is annualized.Tax RateThis is the effective tax rate, obtained by dividing the taxes paid by the taxable income as reported to the stockholders. We would rather have used marginal tax rates, but these are not reported.Unlevered BetaThis is the beta for the sector, unlevered by the market value debt to equity ratio for the sector:
Unlevered Beta = Beta / (1 + (1- tax rate) (Debt/Equity Ratio))
See description of debt/equity ratio for more detail.Value/EBITDAEstimated by dividing the market value of debt and equity by the EBITDA
Value/EBITDA = (Market Value of Equity + Value of Debt) / EBITDA
We use the book value of debt as a proxy for the market value, and cumulate the values, across the sector, to estimate the ratio.
%",#,@,A,O1¤√√H*6Б$%=ий╜─239╠<=¤√°°╟°°Ц(°°°Ц(°°°°Ц0$$Цl
t┐╓ ╓0Ф ╚3 0$$Цl
t┐╓ ╓0Ф ╚3 $$%=ий╜─239╠<=L¤■ ╥ ╙ у Я
а
о
+ |}ТЎў№9
:
J
├
XYrС╬2+\СFGOijt╫1∙·╬╧щz╘ЬЭм║╗╦67FЇї}~Е╫╪¤√∙їЄ∙ї∙∙її∙∙їїї∙∙ї∙∙ї∙∙ї∙∙∙∙∙ї∙∙ї∙∙ї∙∙∙∙∙їїї∙∙їїї∙∙ї∙∙їїї∙∙ї∙∙їїї∙∙ї∙∙ї∙∙їїї∙∙ї∙∙ї∙∙ї∙∙ї∙∙ї∙∙∙Є
`=L¤■ ╥ ╙ у Я
а
о
+ |№№╦T№№Ъ4№№╦╪№№╦и№№╦Ї№№0$$Цl
t┐╓ ╓0Ф ╚3 0$$Цl
t┐╓ ╓0Ф ╚3 $|}ТЎў№9
:
J
├
XYrС╬2+\С╬ш╦╦╬╦╦╬|╦╦╦╦╬╦╦╦╦╬╦╦╬м╦╦╦$0$$Цl
t┐╓ ╓0Ф ╚3 СFGOijt╫1∙·╬╧щz╘ЬЭм№╦М№№╦@№№№№╦T№№╦╘№№╦d№№№№╦и№№0$$Цl
t┐╓ ╓0Ф ╚3 $║╗╦67FЇї}~Е╫╪ы░▒╝юlm╬╨╦╦╬Ё╦╦╬°╦╦╬$╦╦╬h╦╦╬d╦╦╬Ё╦╦╦╬р$0$$Цl
t┐╓ ╓0Ф ╚3 ╪ы░▒╝юlmqзфх ~Щ■ їЎ
< = P ▐ ▀ ў _!`!x!╞!¤!■!"r"s"Й"°"∙"#%$&$?$╩$╦$╓$%1%Э%Ю%┐%
&P&Q&b&Б&В&У&▀&'и'й'╗'](^(n(░(▒(╔(x)з)и)┐)Щ*Ъ*д*x+y+Ъ+ш+д,щ-ъ-.{.|.Е.J/K/Z/╛/■/4050B0К0■·■■··ў■··■■·■■■■■■ў■·■■·ў■·■■··■■·■■·■■·■■·■■···■■··■■·■■···■■■ў■■■■··■■·■Ї■ЄЇЇЇЇЄЇЇЄЇЇЄЇЇЇЇЄЇЇ
`mqзфх ~Щ╩■ mлїЎ
< = P ▐ ▀ ў №№№╦h№№╦№№№╦▄№№№№╦№№╦И№№╦№0$$Цl
t┐╓ ╓0Ф ╚3 $ў _!`!x!╞!¤!■!"r"s"Й"°"∙"#%$&$?$╩$╦$╓$%1%Э%Ю%№╦x№№№╦╘№№╦№№╦┤№№╦Ф№№╦L№№№№╦╠0$$Цl
t┐╓ ╓0Ф ╚3 $Ю%┐%
&P&Q&b&Б&В&У&▀&'и'й'╗'(](^(n(Д(░(▒(╔(x)з)№№№╦─№№╦Ь№№№№╦╘№№№╦L№№№╦▄№№№0$$Цl
t┐╓ ╓0Ф ╚3 $з)и)┐)Щ*Ъ*д*x+y+Ъ+ш+д,щ-ъ-.{.|.Е.J/K/Z/╛/■/4050╬╚╦╦╬|╦╦╬─ ╦╦╦╦╬H╦╦╬<╦╦╬и╦╦╦╦╬d$0$$Цl
t┐╓ ╓0Ф ╚3 50B0К0╦0M1N1O1№№№№╦╔0$$Цl
t┐╓ ╓0Ф ╚3 $К0╦0M1N1O1¤¤√
0░р= ░╨/!░а"░а#Р$Р%░|,,№т З }ce(№,,╪(d'`Р
[4@ё 4NormalCJOJPJQJmH <A@Є б<Default Paragraph Font*B`Є* Body Text6Б*>`*Title$5БCJ O-|!|Д! А! Д! А! Д! ╣ X
Y
rx╞¤■'x'y'O-yЛЕ╙O10=|Сmў Ю%з)50O11345689:;<╪К0O127=ыєfnmuчя╧╫─╩∙ г$й$Q'U'](`(q(t(=)I)K+T+{+Д+╛+╟+Q-└╩шЁ:NWJ#O#H'X'Q- Aswath Damodaran-Macintosh HD:New_Home_Page:datafile:variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variables @
АQ'Q' 2Q'0'Ф └{їO-P@GРTimes New Roman5РАSymbol3РArial3РTimes"qИ╨h╬R'ж-S'жZV"$M!е└┤┤А>0d_,╨ Variables used in Data SetAswath DamodaranAswath Damodaran╓
Ф ╝ф!3$'Macintosh HD:Microsoft Office 98:Office Z╜Z&&{618736E0-3C3D-11CF-810C-00AA00389B71}IAccessible\╛\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r┐rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0Z└Z&&{000C0300-0000-0000-C000-000000000046}_IMsoDispObj\┴\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r┬rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0`├`&&{000C0301-0000-0000-C000-000000000046}_IMsoOleAccDispObj\─\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r┼rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0Z╞Z&&{000C0302-0000-0000-C000-000000000046}Comman■
рЕЯЄ∙OhлС+'│┘0АИР┤└▄ш°
<H
T`hpx'Variables used in Data Set0ariAswath Damodaran DaswaNormalDAswath Damodaran Da17aMicrosoft Word 8.0a@ЬжТ@,М]м╜@Ў"м╜V"$&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0`╠`&&{000C0306-0000-0000-C000-000000000046}CommandBarControls\═\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r╬rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0`╧`&&{000C0308-0000-0000-C000-000000000046}CommandBarControl\╨\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r╤rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0^╥^&&{000C030E-0000-0000-C000-000000000046}CommandBarButton\╙\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r╘rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0^╒^&&{000C030A-0000-0000-C000-000000000046}CommandBarPopup\╓\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r╫rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0`╪`&&{000C030C-0000-0000-C000-000000000046}CommandBarComboBox\┘\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r┌rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0^█^&&{000C0313-0000-0000-C000-000000000046}ConnectorFormat\▄\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r▌rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0^▐^&&{000C0315-0000-0000-C000-000000000046}FreeformBuilder\▀\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}rрrTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0ZсZ&&{000C0316-0000-0000-C000-000000000046}GroupShapes\т\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}rуrTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0TфT&&{000C031C-0000-0000-C000-000000000046}Shape\х\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}rцrTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0XчX&&{000C031D-0000-0000-C000-000000000046}
ShapeRange\ш\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}rщrTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0TъT&&{000C031E-0000-0000-C000-000000000046}Shapes\ы\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}rьrTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0XэX&&{000C0320-0000-0000-C000-000000000046}
TextFrame\ю\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}rяrTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0XЁX&■
╒═╒Ь.УЧ+,∙оD╒═╒Ь.УЧ+,∙оThpИРШаи░╕└
╚я'
Stern SchoolusM_,:Variables used in Data SetTitleШ 6>
_PID_GUID'AN{7F6E8780-17E7-11D2-8B7C-82086392B89D}&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0`Ў`&&{000C0326-0000-0000-C000-000000000046}BalloonCheckboxes\ў\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r°rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0^∙^&&{000C0328-0000-0000-C000-000000000046}BalloonCheckbox\·\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r√rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0\№\&&{000C032E-0000-0000-C000-000000000046}
BalloonLabels\¤\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r■rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0F 01B-BDE5-00AA0044DE52}Version2.0 BDGR` ■ `ФPZ Z&&{000C0330-0000-0000-C000-000000000046}BalloonLabel\ \ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0X X&&{000C0331-0000-0000-C000-000000000046}
FoundFiles\ \ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0V V&&{000C0337-0000-0000-C000-000000000046}FileFind\ \ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0Z Z&&{000C0333-0000-0000-C000-000000000046}PropertyTest\
\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0\ \&&{000C0334-0000-0000-C000-000000000046}
PropertyTests\
\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r rTypeLib&&{2DF8D04C-5BFA-101B-BDE5-00AA0044DE52}Version2.0X X&&{000
!"#$%&'()*+,-./0123456789:;<=>■ @ABCDEF■ HIJKLMN■ PQRSTUV■ ¤ Y■ ■ ■ Root EntryьCom └FАхrУм╜[А1TableXObje ? WordDocumentЇАB\лЇ╜ЇАB\лЇ╜0Tab Э| SummaryInformationH·pэ( GDocumentSummaryInformation8 OCompObj X ·э╕■ ■ └FMicrosoft Word Document■ NB6WWord.Document.84
LNKS,1,4,14 *45
LKSD,1,1,16 +$AuxUserTypeJ ,J2 Microsoft Organization Chart 2.06 -63MS Org Chart. .verb4 /40
&Edit,0,2n 0n&&{00041943-0000-0000-C000-000000000Root EntryьCom └FАЙН¤м╜u@1TableXObje ? WordDocumentЇАB\лЇ╜ЇАB\лЇ╜0Tab xА SummaryInformationH·pэ(
░
!"#$%&'()*+,-./Б @ABCDEF■ ^¤ ■ `abcdefghijklmnopqr■ ■ vt■ ■ yz{|}~DocumentSummaryInformation8 ьCompObj X0Table _W& ·э╕
[4@ё 4NormalCJOJPJQJmH <A@Є б<Default Paragraph Font*B@Є* Body Text6Б*>@*Title$5БCJ ╗.|!|Д! А! Ж! А! Д! ╣ X
Y
'JKф&''╗.yО▐$%=ий╜─239╠<=L¤■╥╙уЯао+ |}ТЎў№9 : ├
Y
r
С
╬
2+\СF
G
O
ijt╫1∙·╬╧щz╘ЬЭм║╗╦67FЇї}~Е╫╪ы░▒╝юlmqзфх ~Э№DEeъ6jkВ┘abyий╝JKc╦╠ф2ij{▐▀їd e w С!Т!л!6"7"B"}"Э" #
#+#y#╝#╜#╬#э#ю# #K$p$%%'%r%╔%╩%┌%Ё%&&5&ф&''+'(((ф(х()T)*U+V+|+ч+ш+ё+╢,╖,╞,*-j-а-б-о-Ў-7.╣.║.╜.а2ЬФа2uп\uпl*uпuп\uпl*uпъ^\uп\uпl*uп_\uпl*uпl*uпl*uп╒╜
\uпl*uпъ^\uпl*uпъ^\uпl*uпъ^\uпl*uпuп\uпl*uпъ^\uпl*uпъ^\uпl*uпъ^\uпl*uпuп\uпl*uпl*uп\uпl*uпl*uпl*uп_\uпl*uп_\uпl*uпl*uпl*uп╒╜
\uпl*uп_\uпl*uпl*uпl*uп╒╜
\uпl*uпъ^\uпl*uп_\uпl*uпl*uпl*uп╒╜
\uпl*uпuп\uпl*uпф^\uпl*uпrп\uпl*uпф^\uпl*uпф^\uпl*uпrп\uпl*uпф^\uпl*uпl*uпV\uпl*uпl*uпф^\uпl*uпф^\uпl*uпl*uпф^\uпl*uпl*uпъ^\uпl*uпl*uпl*uп_\uпl*uп_\uпl*uпъ^\uпl*uпф^\uпl*uпl*uпъ^\uпl*uпuп\uпl*uпъ^\uпl*uп_\uпl*uпъ^\uпl*uпl*uпl*uп_\uпl*uпl*uп_\uпl*uпuп\uпl*uпl*uпl*uп╒╜
\uпl*uпl*uпъ^\uпl*uпl*uпъ^\uпl*uпl*uп_\uпl*uпъ^\uпl*uпъ^\uпl*uпl*uпl*uп┐\uпl*uпъ^\uпl*uпъ^\uпl*uпl*uпl*uп_\uпl*uпl*uпl*uп╒╜
а2uпY
r
С
╬
2+\СF
G
O
ijt╫1∙·╬╧щz╘ЬЭм║╗╦67FЇї}~Е╫╪ы░▒╝юlmqзфх ~ЭDEeъы6jkВ┘abyий╝JKc╦╠ф2ij{▐▀їd e w С!Т!л!6"7"B"}"Э" #
#+#y#╝#╜#╬#э#ю# #K$p$%%'%r%╔%╩%┌%Ё%&&5&ф&''+'((╜.ЬААйААйААйААйААЩААйААйААЩААйААйААйААйААЩААйААйААЩААйААйААйААйААЩААйААйААЩААйААйААЩААйААйААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААйААЩААйААйААйААЩААйААйААЩААйААлААЩААйААлААЩААйААйААйААЩААйААйААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААЩААйААйААйААйААЩААйААйААйААЩААйААйААЩААйААйААйААйААЩААйААйААйААЩААйААйААйААЩААйААйААйААЩААйААйААЩААЮААv0=|Сmў Ю%з)50v1345689:;<╪К0O127= UnknownAswath Damodaranыєfnmuчя╧╫─╩тщek&&╔)╠)▌)р)й*╡*╖,└,ч,Ё,*-3-╜.└╩шЁ:NW╢$╗$┤(─(╜. Aswath Damodaran-Macintosh HD:New_Home_Page:datafile:variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variablesAswath Damodaran;Macintosh HD:Temporary Items:AutoRecovery save of variables @Ащщ└0щeФ └{ї┤ЬЭп░▓╟╚╓╫╪р№CEdewxzПРЮЯаи─┼╟╫╪▌щы║.╗.0@1Ю|0╪|1┌|1■|1}1}1.}10}1L}1N}1P}0`}1Ш}0&~1*~0h~1j~1О~1Р~1Ф~1╛~1└~1▄~1▐~1р~1Ё~1(1*1.1N1P1Z0r0■:@0Ьb@GРTimes New Roman5РАSymbol3РArial3РTimes"qИ╨h╬R'жPS'ж\V"$M!е└┤┤А>0d_,╨ Variables used in Data SetAswath DamodaranAswath Damodaran0000-C000-000000000046}r дrTypeLibVersion2.0&&{AC2DE821-36A2-11CF-8053-00AA006009FA}Z еZ&&{79176FB3-B7F2-11CE-97EF-00AA006D2776}ISpinbutton\ ж\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r зrTypeLibVersion2.0&&{AC2DE821-36A2-11CF-8053-00AA0■ ■
■ _PID_GUID'AN{7F6E8780-17E7-11D2-8B7C-82086392B89D}&{5512D113-5CC6-1■
рЕЯЄ∙OhлС+'│┘0АИР┤└▄ш°
<H
T`hpx'Variables used in Data Set0ariAswath Damodaran DaswaNormalDAswath Damodaran Da18aMicrosoft Word 8.0a@(-┌@,М]■ └FMicrosoft Word Document■ NB6WWord.Document.84
LNKS,1,4,14 ■
╒═╒Ь.УЧ+,∙оD╒═╒Ь.УЧ+,∙оThpИРШаи░╕└
╚я'
Stern SchoolusM_,:Variables used in Data SetTitleШ 6>
м╜@ИЫh&м╜V"$ ╕\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r ╣rTypeLibVersion2.0&&{0D452EE1-E08F-101A-852E-02608C4D0BB4}X ║X&&{5512D11B-5CC6-11CF-8D67-00AA00BDCE1D}
IWHTMLText\ ╗\ProxyStubClsid&&{00020424-0000-0000-C000-000000000046}r ╝rTypeLibVersion2.0&&{0D452 for each variable.Free Cash Flow to Equity (FCFE)FCFE = Net Income (Capital Expenditures Depreciation) Change in non-cash working capital (Debt repayments New Debt Issued)ье┴c ┐O1jbjbЁSЁS АЪ1Ъ1╗. ]······╢╘jjjjvTК█"ъЇ Ў Ў Ў Ў Ў Ў ,┼#Ї╣%Ю"!╣·"!:··ц8:::╩··Ї 6Dr····Ї :║:Ї ··Ї ╩ №╦▒КрjшRЇ Variables used in Data Set
For many of the ratios, estimated on a sector basis, we used the cumulated values for the sector. As an example, the PE ratio for the sector is not a simple average of the PE ratios of individual firms in the sector. Instead, it is obtained by dividing the cumulated net income for the sector (obtained by adding up the net income of each firm in the sector) by the cumulated market value of equity of firm in the sector ( obtained by adding up the market values of all of the firms in the sector).
VariablesDescriptionAccounts Payable /SalesEstimated by dividing the cumulated accounts payable for the sector by the cumulated sales for the sector.Accounts Receivable
/SalesEstimated by dividing the cumulated accounts receivable for the sector by the cumulated sales for the sector.AlphaEstimated from the intercept of the monthly return regression of stock returns against market returns, using the last 5 years of data, as follows:
(JensenТs) Alpha = Intercept Ц Riskfree Rate (1 Ц Beta)
The number is annualized by compounding over 12 months.Annual ReturnsThe annual returns on stocks, bonds and bills are estimated by adding the price appreciation during the year to the dividends (or coupons) paid on the security during the year.BetaEstimated by regressing monthly returns on stock against NYSE composite, using 5 years of data or listed period (if less than 5 years). If data is available for less than 2 years, the beta is not estimated)Book Debt RatioThis is the book estimate of the debt ratio, obtained by dividing the cumulated value of debt by the cumulated value of debt plus the cumulated book value of equity for the entire sector.BV of CapitalThis is the book value of debt plus the book value of common equity, as reported on the balance sheet.Cap Ex/ DepreciationEstimated by dividing the capital expenditures by depreciation. For the sector, we estimate the ratio by dividing the cumulated capital expenditures for the sector by the cumulated depreciation and amortization.Capital (Book Value)This is the book value of debt plus the book value of common equity, as reported on the balance sheet.Capital ExpendituresThis is the cumulated capital spending, as reported in the statement of cash flows, for the sector.CashEstimated as the cash balance reported in the balance sheet.Cost of CapitalThe weighted average of the cost of equity and after-tax cost of debt, weighted by the market values of equity and debt:
Cost of Capital = Cost of Equity (E/(D+E)) + After-tax Cost of Debt (D/(D+E))
For the weights, we use cumulated market values for the entire sector.Cost of Debt (After-tax)The after-tax cost of debt is:
After-tax cost of debt = Pre-tax Cost of debt (1 Ц tax rate)
The average effective tax rate for the sector is used for this computation.Cost of Debt (Pre-tax)This is estimated by adding a default spread to the riskfree rate. To estimate the default spread, we use the standard deviation in stock prices over the last 5 years. The higher the standard deviation, the¤ ВГДЕЖЗИЙКЛМНОПw %",#,@,A,O1v¤√√H*6Б$%=ий╜─239╠<=¤√°°╟°°Ц(°°°Ц(°°°°Ц0$$Цl
t┐╓ ╓0Ф ╚3 0$$Цl
t┐╓ ╓0Ф ╚3 $$%=ий╜─239╠<=L¤■ ╥ ╙ у Я
а
о
+ |}ТЎў№9
:
J
├
XYrС╬2+\СFGOijt╫1∙·╬╧щz╘ЬЭм║╗╦67FЇї}~Е╫╪¤√∙їЄ∙ї∙∙її∙∙їїї∙∙ї∙∙ї∙∙ї∙∙∙∙∙ї∙∙ї∙∙ї∙∙∙∙∙їїї∙∙їїї∙∙ї∙∙їїї∙∙ї∙∙їїї∙∙ї∙∙ї∙∙їїї∙∙ї∙∙ї∙∙ї∙∙ї∙∙ї∙∙∙Є
`=L¤■ ╥ ╙ у Я
а
о
+ |№№╦T№№Ъ4№№╦╪№№╦и№№╦Ї№№0$$Цl
t┐╓ ╓0Ф ╚3 0$$Цl
t┐╓ ╓0Ф ╚3 $|}ТЎў№9
:
J
├
XYrС╬2+\С╬ш╦╦╬╦╦╬|╦╦╦╦╬╦╦╦╦╬╦╦╬м╦╦╦$0$$Цl
t┐╓ ╓0Ф ╚3 СFGOijt╫1∙·╬╧щz╘ЬЭм№╦М№№╦@№№№№╦T№№╦╘№№╦d№№№№╦и№№0$$Цl
t┐╓ ╓0Ф ╚3 $║╗╦67FЇї}~Е╫╪ы░▒╝юlm╬╨╦╦╬Ё╦╦╬°╦╦╬$╦╦╬h╦╦╬d╦╦╬Ё╦╦╦╬р$0$$Цl
t┐╓ ╓0Ф ╚3 ╪ы░▒╝юlmqзфх ~Щ■ їЎ
< = P ▐ ▀ ў _!`!x!╞!¤!■!"r"s"Й"°"∙"#%$&$?$╩$╦$╓$%1%Э%Ю%┐%
&P&Q&b&Б&В&У&▀&'и'й'╗'](^(n(░(▒(╔(x)з)и)┐)Щ*Ъ*д*x+y+Ъ+ш+д,щ-ъ-.{.|.Е.J/K/Z/╛/■/4050B0К0■·■■··ў■··■■·■■■■■■ў■·■■·ў■·■■··■■·■■·■■·■■·■■···■■··■■·■■···■■■ў■■■■··■■·■Ї■ЄЇЇЇЇЄЇЇЄЇЇЄЇЇЇЇЄЇЇ
`mqзфх ~Щ╩■ mлїЎ
< = P ▐ ▀ ў №№№╦h№№╦№№№╦▄№№№№╦№№╦И№№╦№0$$Цl
t┐╓ ╓0Ф ╚3 $ў _!`!x!╞!¤!■!"r"s"Й"°"∙"#%$&$?$╩$╦$╓$%1%Э%Ю%№╦x№№№╦╘№№╦№№╦┤№№╦Ф№№╦L№№№№╦╠0$$Цl
t┐╓ ╓0Ф ╚3 $Ю%┐%
&P&Q&b&Б&В&У&▀&'и'й'╗'(](^(n(Д(░(▒(╔(x)з)№№№╦─№№╦Ь№№№№╦╘№№№╦L№№№╦▄№№№0$$Цl
t┐╓ ╓0Ф ╚3 $з)и)┐)Щ*Ъ*д*x+y+Ъ+ш+д,щ-ъ-.{.|.Е.J/K/Z/╛/■/4050╬╚╦╦╬|╦╦╬─ ╦╦╦╦╬H╦╦╬<╦╦╬и╦╦╦╦╬d$0$$Цl
t┐╓ ╓0Ф ╚3 50B0К0╦0M1N1O1┌|Ш}(~*~j~tv№№№№╦╔№№№╦Ш№№╦0$$Цl
t┐╓ ╓0Ф ╚3 $
К0╦0M1N1O1¤¤√
0░р= ░╨/!░а"░а#Р$Р%░|,,№т З }ce(№,,╪(d'`РFree Cash Flow to Firm (FCFF)FCFF = EBIT (1-t) (Capital Expenditures Depreciation) Change in non-cash working capital
For the sector-wide numbers, we use cumulated values