1998

1,511,000
1,125,884
385,116

1999
2,240,528
1,690,366
550,162

2000
2,393,187
1,780,531
612,656

268,748
13,680
102,688

411,254
12,876
126,032

428,161
12,876
171,619

Non-operating income (expense)

Interest income
Interest expense
Pretax income

(6,299)
2,307
11,521
87,175

(10,173)
4,569
14,325
106,103

(10,783)
5,670
12,987
153,519

Income tax expense

Net Income

38,585
48,590

46,071
60,032

66,659
86,860

Depreciation & Amortization

56,113

87,661

91,786

Net Sales
Cost of Sales
Gross profit
SGA
Amortization of intangibles
Operating income after depreciation

2001
2,509,100
1,862,103
646,997

2002
2,608,385
1,933,387
674,998

446,143
12,876
187,978

460,518
12,876
201,604

(11,430)
7,500
10,286
173,762

(12,116)
9,932
8,134
191,286

75,448
98,314

83,057
108,229

94,593

97,355

Balance Sheet Valuation

deals with tangible assets
assets are quoted at historical cost
does not incorporate risks
Book value/share
adjusted book value
liquidation valuation
Income statement valuation
Earnings multiples
Sales
EBITDA
EBIT
PBT
PAT
Discounted Cash Flow
forward-looking
risk-adjusted
projected fcf ebit(1-t)+dep-capex-net working capital
determination of discount rate
determination of terminal value

Broad Group:
Industry Group:
Basis

S/N Company Name

Market Cap
($mn)

Total Debt

$2,762.90

$2,216.60

$82.00

$12.30

American Standard

American Woodmark

Masco

$5,937.30

$1,341.30

Briggs & Stratton

$1,210.00

$155.40

Cummins Engine

$2,053.60

$686.70

Detroit Diesel

$502.50

$127.30

Tantalizers PLC (NGSE:TANTALIZER)

$8.00

$4.85

Implied valuation - upper range

Implied Enterprise Value - High
Net Debt (Debt Free Cash Free Basis)
Implied Equity Value - High
Implied valuation - Average
Implied Enterprise Value - Average
Net Debt (Debt Free Cash Free Basis)
Implied Equity Value - Average
Implied valuation - lower range
Implied Enterprise Value - Low
Net Debt (Debt Free Cash Free Basis)
Implied Equity Value - Low

Firm Value
($mn)

Cash ($mn)

Enterprise
Value ($mn)

Sales ($mn)

EBIT

Cash Flow

EBITDA

$4,979.50

$0.00

$4,979.50

$5,767.80

$263.50

$420.90

$667.00

$94.30

$0.00

$94.30

$262.70

$13.70

$22.10

$30.70

$7,278.60

$0.00

$7,278.60

$3,414.00

$367.40

$473.60

$721.90

$1,365.40

$0.00

$1,365.40

$1,282.20

$87.10

$132.10

$187.00

$2,740.30

$0.00

$2,740.30

$5,431.00

$221.00

$377.50

$448.30

$629.80

$0.00

$629.80

$2,090.70

$40.50

$78.20

$100.20
High
Mean
Median
Low

$12.85

$0.00

$12.85

$11.21

($0.63)

($0.63)

$1.22

P/Sales

EV/EBIT

EV/EBITDA

EV/Sales

EBITD margin

Cashflow
margin

0.48

18.90

7.47

0.86

11.56%

7.30%

0.31

6.88

3.07

0.36

11.69%

8.41%

1.74

19.81

10.08

2.13

21.15%

13.87%

0.94

15.68

7.30

1.06

14.58%

10.30%

0.38

12.40

6.11

0.50

8.25%

6.95%

0.24

15.55

6.29

0.30

4.79%

3.74%

1.7x

19.8x

10.1x

2.1x

21.1%

13.9%

0.7x

14.9x

6.7x

0.9x

12.0%

8.4%

0.4x

15.6x

6.8x

0.7x

11.6%

7.9%

0.2x

6.9x

3.1x

0.3x

4.8%

3.7%

0.71

(20.39)

10.57

1.15

10.84%

-5.62%

$12.25

$23.90

$19.50

$7.65

$2.69

$0.00

$0.00

$12.25

$23.90

$8.16

$9.76

$0.00

$0.00

$8.16

$9.76

$3.73

$3.38

$0.00

$0.00

$3.73

$3.38