Table of Contents

1 Income Statement Assumptions

2 Balance Sheet Assumptions

3 Cash Flow Statement Assumptions

4 Income Statement

5 Balance Sheet

6 Cash Flow Statement

7 Common Size Income Statement

8 Common Size Balance Sheet

9 Common Size Cash Flow Statement

10 Trend Income Statement

11 Trend Balance Sheet

= Cells you need to complete with formulas

= Cells with the assumptions from Morningstar (you use these, do not change them)
se, do not change them)
WAYFAIR INC
FORECAST ASSUMPTIONS
(in $ millions)

Fiscal Year 2017 2018 2019 2020

Net revenue and COGS

Orders delivered (millions) 19.4 28.1 37.6 57.9
% Change in orders delivered 44.7% 34.0% 53.9%
Average order value (in $ per order) 239 239 241.4 237.3
% Change in average order value 0.0% 0.9% -1.7%
Direct revenue 4,643.2 6,718.1 9,088.3 13,740.8
YoY Growth 42.2% 44.7% 35.3% 51.2%

Other revenue 77.7 61.1 38.8 14.4

YoY Growth -21.3% -36.5% -62.7%

Total net revenue 4,720.9 6,779.2 9,127.1 13,755.2

YoY Growth 43.6% 34.6% 50.7%

Cost of goods sold (% of sales) 76.3% 76.6% 76.5% 71.2%

Operating Expenses (as % of Sales)

Customer service and merchant fees 3.6% 3.8% 3.9% 3.7%
Advertising 11.6% 11.4% 12.0% 10.7%
Selling, operations, technology, general and administrative 13.4% 15.1% 17.8% 13.7%

Interest expense and income and other

Interest rate on debt (%) 3.0%
Interest rate on cash and marketable securities (%) 1.0%

Other income (expense) ($ millions) -

Income taxes
Statutory tax rate 35.0% 21.0% 21.0% 21.0%
NOL at beginning of year 1,400.0
Profits (losses) before income tax 65.4
NOL at end of year 1,400.0 1,334.6
Taxable income -
Provision for income taxes, net -
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

66.6 75.9 85.0 93.5 101.0 107.1 113.5 119.8 126.3 133.3
15.0% 14.0% 12.0% 10.0% 8.0% 6.0% 6.0% 5.5% 5.5% 5.5%
231.6 226.1 220.7 215.41 210.3 205.3 200.4 195.6 190.9 186.4
-2.4% -2.4% -2.4% -2.4% -2.4% -2.4% -2.4% -2.4% -2.4% -2.4%
15,424.8 17,164.8 18,765.8 20,149.9 21,242.6 21,979.9 22,742.8 23,421.2 24,119.8 24,839.2
12.3% 11.3% 9.3% 7.4% 5.4% 3.5% 3.5% 3.0% 3.0% 3.0%

7.5 7.8 8.2 8.6 8.6 8.6 8.6 8.6 8.6 8.6
-48.3% 5.0% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

15,432.3 17,172.6 18,774.1 20,158.5 21,251.3 21,988.6 22,751.5 23,429.8 24,128.4 24,847.9
12.2% 11.3% 9.3% 7.4% 5.4% 3.5% 3.5% 3.0% 3.0% 3.0%

73.0% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5%

3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8%
10.4% 10.4% 10.2% 10.0% 9.8% 9.6% 9.4% 9.2% 9.0% 9.0%
13.5% 13.4% 13.3% 13.0% 12.0% 11.0% 9.0% 8.5% 7.0% 7.0%

3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

- - - - - - - - - -

21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%
1,334.6 1,491.1 1,723.0 1,913.9 2,013.9 1,859.8 1,430.9 478.8 - -
(156.5) (231.9) (190.9) (100.0) 154.1 428.9 952.1 1,156.2 1,615.0 1,678.6
1,491.1 1,723.0 1,913.9 2,013.9 1,859.8 1,430.9 478.8 - - -
- - - - - - - 677.4 1,615.0 1,678.6
- - - - - - - 142.2 339.2 352.5
<-- Jaime assumed Biden increase to 28% starting in 2023; however, we will not make this change because it seems hard to predict.

<-- Jaime did not adjust for NOL asset, so let tax expenses/benefits flow through income statement. We will adjust this and let NOLs have va
 t seems hard to predict.

adjust this and let NOLs have value to offset tax expense until used.
WAYFAIR INC
FORECAST ASSUMPTIONS
(in $ millions)

Fiscal Year 2017 2018 2019 2020

Working capital - assets

Days sales outstanding (DSO - end of year) 2.9 2.7 4.0 3.2
Days inventory outstanding (DIO - end of year) 2.8 3.2 3.2 3.1
Prepaid expenses and other (% of Sales) 2.8% 2.9% 2.5% 1.7%
Deferred income taxes, net - - - -

Working capital - liabilities

Days payables outstanding (DPO - end of year) 44.5 45.5 47.4 45.8
Accrued expenses (% growth) 2.0%
Deferred revenue (% growth) 2.0%
Other current liabilities (% growth) 2.0%

Fixed assets
Gross PPE 545.3 897.1 1,080.4 1,380.4
Accumulated depreciation (184.1) (290.2) (455.8) (744.3)
Net PPE (including capitalized site & software dev costs) 361.1 607.0 624.5 636.1
Fixed asset turnover (end of year) 13.1 11.2 14.6 21.6
Average useful life of PPE 4.4 4.7 3.7
Depreciation 288.4
CAPEX 300.0

Operating leases
Operating lease right-of-use assets (% of OPEX) 24.8% 24.8%
Operating lease right-of-use assets ($ millions) - - 763.4 956.7
Operating lease right-of-use assets ($ growth millions) 193.3
Operating lease liabilities ($ growth millions) 193.3
Net change in operating asset and liability -

Other long-term assets and liabilities

Goodwill and intangible assets, net ($ millions) 3.1 2.6 18.8 18.8
Other noncurrent assets (% of sales) 0.2% 0.3% 0.1% 0.1%
Other liabilities (% of sales) 2.3% 2.4% 0.1% 0.1%

Financial assets and liabilities (other than cash)

Short-term investments (% growth) 0.0%
Long-term investments (% growth) 0.0%
Current portion of long-term debt ($ millions) - - - -
New borrowings ($ millions) 535.0
Lease financing ($ millions) 82.6 183.1 - -
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

3.3 3.5 3.3 3.4 3.4 3.4 3.4 3.4 3.4 3.4
3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2
1.5% 1.3% 1.2% 1.1% 1.1% 1.0% 1.0% 1.0% 0.9% 0.9%
- - - - - - - - - -

46.2 46.5 46.2 46.3 46.3 46.3 46.3 46.3 46.3 46.3
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

1,797.1 2,260.7 2,748.8 3,252.8 3,762.8 4,312.6 4,835.9 5,351.3 5,858.0 6,417.9
(1,114.7) (1,526.8) (1,977.4) (2,461.2) (2,950.0) (3,389.8) (3,844.8) (4,313.4) (4,796.0) (5,324.2)
682.4 733.9 771.5 791.6 812.9 922.8 991.1 1,037.9 1,062.1 1,093.7
22.6 23.4 24.3 25.5 26.1 23.8 23.0 22.6 22.7 22.7
3.7 4.4 5.0 5.7 6.7 8.6 9.5 10.3 11.1 11.1
370.4 412.1 450.6 483.8 488.8 439.8 455.0 468.6 482.6 528.3
416.7 463.7 488.1 504.0 510.0 549.7 523.3 515.5 506.7 559.9

24.8% 24.8% 24.8% 24.8% 24.8% 24.8% 24.8% 24.8% 24.8% 24.8%
1,060.7 1,176.1 1,271.5 1,340.2 1,349.6 1,331.0 1,253.0 1,249.7 1,185.2 1,220.5
104.0 115.4 95.4 68.8 9.4 (18.6) (78.0) (3.3) (64.5) 35.3
104.0 115.4 95.4 68.8 9.4 (18.6) (78.0) (3.3) (64.5) 35.3
- - - - - - - - - -

18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8
0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
<-- Implied % of Sales based on Jaime's forecast of no change in this account.I prefer to forecast this as a % of Sales.
<-- Jaime assumed this stayed at zero. This implies that NOL is fully reserved.

<-- Jaime forecasted CAPEX as % of Sales. I prefer forecasting Net PPE using the productivity measure fixed asset turnover. This is the fixe
<-- Jaime forecasted Depr as % of Sales. I prefer to use the estimated life of the assets. This is the implied estimated life of the assets using

<-- Jaime assumed that this account grows with sales growth, but probably more internally consistent to model as a % of OPEX since rent ex

<-- Jaime assumed that this account would not change, however, to simplify the forecast, will grow at same $ as ROU asset.
<-- Will assume both operating lease assets and operating lease liabilities are operating assets and liabilites, so this is the net investment.

<-- Assume no acquisitions or write-offs. Amortization immaterial and so classified with depreciation expense.
<-- Jaime assumed same growth as sales, we will assume $ value as a % of sales
<-- Jaime assumed same growth as sales + $685.489 in 2020

<-- Jaime assumed no change

<-- Jaime had this growing at same rate as revenue growth. This account is just financial assets, so will leave flat.
<-- Based on Jaime's assumptions.
<-- Jaime assumed these new borrowings.
<-- Jaime assumed no financial leases.
d asset turnover. This is the fixed asset turnover implied by Jaime's forecast of Net PPE.
stimated life of the assets using Jaime's forecasted depreciation.

el as a % of OPEX since rent expense is included in this account.

as ROU asset.
so this is the net investment.
WAYFAIR INC
FORECAST ASSUMPTIONS
(in $ millions)

Fiscal Year 2017 2018 2019 2020

Operating
Equity-based compensation (% of OPEX) 5.0% 6.2% 7.4% 7.4%

Investing
Sales and maturities of available-for-sale securities ($ millions) -
Amortization of discount and issuance costs on convertible notes 81.1
Other non-cash adjustments ($ millions) -
Proceeds from sale of property and equipment ($ millions) -
Site and software development costs ($ millions) -

Financing
Premiums paid for capped call confirmations -
Taxes paid related to net share settlement of equity awards -
Deferred financing costs -
Cash dividends paid -
Net proceeds from exercise of stock options -
Issuance (buyback) of stock and dividends -

Effect of exchange rate changes on cash and cash equivalents -

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

7.4% 7.4% 7.4% 7.4% 7.4% 7.4% 7.4% 7.4% 7.4% 7.4%

- - - - - - - - - -
85.7 83.0 70.7 76.2 40.3 61.7 - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -

- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -

- - - - - - - - - -
<-- Jaime assume % of advertising. Makes more sense to do % of OPEX. Will leave as flat %.

<-- Assume all net changes will be included in "Purchases" line item
<-- Amortization schedule based on footnotes.
<-- Assume zero
<-- Assume no sales of PPE
<-- Historically, W reportts this investment is separate from CAPEX. However, the balance is rolled into PPE and Jaime does not separate it.

<-- Assume no financing activity except debt issuance and retirement

<-- Assume no financing activity except debt issuance and retirement
<-- Assume no financing activity except debt issuance and retirement
<-- Assume no financing activity except debt issuance and retirement
<-- Assume no financing activity except debt issuance and retirement
<-- Assume no financing activity except debt issuance and retirement
and Jaime does not separate it. So, will assume this amount is in PPE.
WAYFAIR INC
CONSOLIDATED INCOME STATEMENT
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Net revenue 4,720.9 6,779.2 9,127.1 13,755.2 15,432.3 17,172.6 18,774.1 20,158.5 21,251.3 21,988.6 22,751.5 23,429.8 24,128.4 24,847.9
YoY Growth 39.7% 43.6% 34.6% 50.7% 12.2% 11.3% 9.3% 7.4% 5.4% 3.5% 3.5% 3.0% 3.0% 3.0%

Cost of goods sold 3,602.1 5,192.5 6,979.7 9,790.1 11,265.6 12,621.9 13,798.9 14,816.5 15,619.7 16,161.6 16,722.3 17,220.9 17,734.4 18,263.2
Gross profit 1,118.8 1,586.7 2,147.3 3,965.1 4,166.7 4,550.7 4,975.1 5,342.0 5,631.6 5,827.0 6,029.1 6,208.9 6,394.0 6,584.7
% of Sales 23.7% 23.4% 23.5% 28.8% 27.0% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5%

Operating expenses:
Customer service and merchant fees 169.5 260.0 356.7 503.8 586.4 652.6 713.4 766.0 807.5 835.6 864.6 890.3 916.9 944.2
Advertising 550.0 774.2 1,095.8 1,472.8 1,606.1 1,787.2 1,915.0 2,015.9 2,082.6 2,110.9 2,138.6 2,155.5 2,171.6 2,236.3
Selling, operations, technology, general and administrative 634.8 1,025.8 1,624.7 1,879.9 2,083.4 2,301.1 2,497.0 2,620.6 2,550.2 2,418.7 2,047.6 1,991.5 1,689.0 1,739.4
Total operating expenses 1,354.3 2,060.0 3,077.3 3,856.5 4,275.8 4,740.9 5,125.3 5,402.5 5,440.3 5,365.2 5,050.8 5,037.4 4,777.4 4,919.9
% of Sales 28.7% 30.4% 33.7% 28.0% 27.7% 27.6% 27.3% 26.8% 25.6% 24.4% 22.2% 21.5% 19.8% 19.8%

Profit (Loss) from operations (235.45) (473.28) (929.94) 108.58 (109.12) (190.11) (150.19) (60.48) 191.26 461.76 978.31 1,171.49 1,616.61 1,664.81
-112% -200% 74% -21% -60% -416% 141% 112% 20% 38% 3%
Interest (expense), net (9.4) (28.6) (54.5) (43.2) (47.4) (41.8) (40.7) (39.6) (37.1) (32.9) (26.2) (15.3) (1.6) 13.8
Other income (expense), net 0.8 (0.2) 2.9 - - - - - - - - - - -

Profit (loss) before income taxes (244.1) (502.0) (981.6) 65.4 (156.5) (231.9) (190.9) (100.0) 154.1 428.9 952.1 1,156.2 1,615.0 1,678.6

Provision for income taxes, net 0.5 2.0 3.0 - - - - - - - - 142.2 339.2 352.5
% of Profit before tax -0.2% -0.4% -0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12.3% 21.0% 21.0%

Net income (loss) (244.6) (504.1) (984.6) 65.4 (156.5) (231.9) (190.9) (100.0) 154.1 428.9 952.1 1,013.9 1,275.9 1,326.1
% of Sales -5.2% -7.4% -10.8% 0.5% -1.0% -1.4% -1.0% -0.5% 0.7% 2.0% 4.2% 4.3% 5.3% 5.3%

4,778.2
4,778.2
WAYFAIR INC
CONSOLIDATED BALANCE SHEETS
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

ASSETS
Current Assets

Cash and equivalents 559.0 849.5 582.8 1,826.1 2,202.9 2,510.0 2,866.8 3,345.5 4,019.9 4,869.2 6,201.6 7,609.4 9,284.7 11,015.3
Short-term investments 61.0 114.3 404.3 404.3 404.3 404.3 404.3 404.3 404.3 404.3 404.3 404.3 404.3 404.3
Accounts receivable 37.9 50.6 99.7 121.2 139.9 164.9 171.9 187.0 198.6 203.6 211.4 217.9 224.0 230.9
Inventory 28.0 46.2 61.7 83.3 98.5 109.8 119.3 128.9 135.6 140.2 145.2 149.5 153.9 158.5
Prepaid expenses and other 130.8 195.4 228.7 228.7 228.7 228.7 228.7 228.7 228.7 228.7 228.7 228.7 228.7 228.7
Deferred income taxes, net - - - - - - - - - - - - - -

Total Current Assets 816.8 1,255.9 1,377.1 2,663.5 3,074.3 3,417.6 3,791.0 4,294.3 4,987.0 5,846.0 7,191.2 8,609.8 10,295.6 12,037.7

Gross PPE 545.3 897.1 1,080.4 1,380.4 1,797.1 2,260.7 2,748.8 3,252.8 3,762.8 4,312.6 4,835.9 5,351.3 5,858.0 6,417.9
Accumulated depreciation (184.1) (290.2) (455.8) (744.3) (1,114.7) (1,526.8) (1,977.4) (2,461.2) (2,950.0) (3,389.8) (3,844.8) (4,313.4) (4,796.0) (5,324.2)
Net PPE (including capitalized site & software dev costs) 361.1 607.0 624.5 636.1 682.4 733.9 771.5 791.6 812.9 922.8 991.1 1,037.9 1,062.1 1,093.7

Long-term investments 21.6 6.5 155.7 155.7 155.7 155.7 155.7 155.7 155.7 155.7 155.7 155.7 155.7 155.7
Operating lease right-of-use assets - - 763.4 956.7 1,060.7 1,176.1 1,271.5 1,340.2 1,349.6 1,331.0 1,253.0 1,249.7 1,185.2 1,220.5
Goodwill and intangible assets, net 3.1 2.6 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8
Other noncurrent assets 10.8 18.8 13.5 20.3 22.8 25.3 27.7 29.7 31.4 32.4 33.6 34.6 35.6 36.7

Total Assets $ 1,213.4 $ 1,890.9 $ 2,953.0 $ 4,451.2 $ 5,014.7 $ 5,527.5 $ 6,036.2 $ 6,630.4 $ 7,355.4 $ 8,306.7 $ 9,643.3 $11,106.4 $12,752.9 $14,563.1

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable 440.4 650.2 908.1 1,228.8 1,427.4 1,607.3 1,745.8 1,879.5 1,982.2 2,048.6 2,121.0 2,184.2 2,248.9 2,316.3
Accrued expenses 120.2 213.0 298.9 304.9 311.0 317.2 323.6 330.0 336.6 343.4 350.2 357.2 364.4 371.7
Deferred revenue 94.1 148.1 167.6 171.0 174.4 177.9 181.5 185.1 188.8 192.6 196.4 200.3 204.4 208.4
Current portion of long-term debt - - - - - - - - - - - - - -
Other current liabilities 85.0 128.0 236.9 241.6 246.4 251.4 256.4 261.5 266.7 272.1 277.5 283.1 288.7 294.5

Total Current Liabilities 739.8 1,139.2 1,611.5 1,946.2 2,159.2 2,353.8 2,507.2 2,656.2 2,774.4 2,856.6 2,945.2 3,024.9 3,106.4 3,190.9

Long-Term Liabilities

Long-term debt 332.9 738.9 1,456.2 2,072.3 2,158.0 2,241.0 2,311.7 2,388.0 2,428.3 2,490.0 2,490.0 2,490.0 2,490.0 2,490.0
Operating lease liabilities - - 822.6 1,015.9 1,119.9 1,235.3 1,330.7 1,399.4 1,408.8 1,390.2 1,312.2 1,308.9 1,244.4 1,279.7
Lease financing 82.6 183.1 - - - - - - - - - - - -
Other liabilities 106.5 160.4 6.9 10.5 11.7 13.1 14.3 15.3 16.2 16.7 17.3 17.8 18.3 18.9

Total Long-term liabilities 522.0 1,082.3 2,285.7 3,098.7 3,289.7 3,489.4 3,656.7 3,802.7 3,853.2 3,896.9 3,819.5 3,816.7 3,752.7 3,788.6

Total Stockholders' Equity (48.3) (330.7) (944.2) (593.8) (434.2) (315.7) (127.7) 171.5 727.8 1,553.2 2,878.6 4,264.9 5,893.8 7,583.6

Total Liabilities and Shareholders' Equity $ 1,213.4 $ 1,890.9 $ 2,953.0 $ 4,451.2 $ 5,014.7 $ 5,527.5 $ 6,036.2 $ 6,630.4 $ 7,355.4 $ 8,306.7 $ 9,643.3 $11,106.4 $12,752.9 $14,563.1
(Balance check) - - - - - - - - - - - - - -
WAYFAIR INC
STATEMENT OF CASH FLOWS
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Cash Flows from Operating Activities

Net earnings including noncontrolling interests (244.6) (504.1) (984.6) 65.4 (156.5) (231.9) (190.9) (100.0) 154.1 428.9 952.1 1,013.9 1,275.9 1,326.1

Adjustments to reconcile net earnings to net cash provided

by operating activities:
Depreciation and amortization on PPE and intangible assets 87.0 123.5 192.4 288.4 370.4 412.1 450.6 483.8 488.8 439.8 455.0 468.6 482.6 528.3
Equity based compensation 67.8 127.6 227.5 285.0 316.0 350.4 378.8 399.3 402.1 396.6 373.3 372.3 353.1 363.6
Amortization of discount and issuance costs on convertible notes 5.8 22.6 62.1 81.1 85.7 83.0 70.7 76.2 40.3 61.7 - - - -
Other non-cash adjustments 1.2 (0.1) (1.7) - - - - - - - - - - -

Change in operating assets and liabilities

Accounts receivable (18.2) (12.8) (49.2) (21.5) (18.7) (24.9) (7.1) (15.0) (11.6) (5.0) (7.8) (6.4) (6.1) (6.9)
Inventory (9.5) (18.3) (15.6) (21.6) (15.3) (11.2) (9.6) (9.5) (6.7) (4.6) (5.0) (4.3) (4.5) (4.6)
Prepaid expenses and other (39.1) (65.2) (32.6) - - - - - - - - - - -
Deferred income taxes, net and other current assets (2.4) (8.2) (1.3) - - - - - - - - - - -
Accounts payable and accrued expenses 104.2 285.1 330.3 326.6 204.7 186.1 144.9 140.2 109.3 73.1 79.3 70.2 71.9 74.7
Deferred revenue and other liabilities 81.4 134.7 75.9 3.4 3.4 3.5 3.6 3.6 3.7 3.8 3.9 3.9 4.0 4.1
Other current liabilities - - - 4.7 4.8 4.9 5.0 5.1 5.2 5.3 5.4 5.6 5.7 5.8
Net cash provided by operating activities 33.6 84.9 (196.8) 1,011.7 794.6 772.1 846.0 983.7 1,185.2 1,399.6 1,856.2 1,923.8 2,182.5 2,291.0

Cash Flows from Investing Activities

Purchase of available-for-sale securities (54.6) (99.0) (553.9) - - - - - - - - - - -
Sales and maturities of available-for-sale securities 71.1 61.1 115.5 - - - - - - - - - - -
Purchase of property and equipment (CAPEX) (100.5) (159.2) (271.7) (300.0) (416.7) (463.7) (488.1) (504.0) (510.0) (549.7) (523.3) (515.5) (506.7) (559.9)
Proceeds from sale of property and equipment - - - - - - - - - - - - - -
Site and software development costs (46.4) (62.8) (129.1) - - - - - - - - - - -
Other investing activities, net - (0.4) (15.6) (3.3) (1.2) (1.2) (1.1) (1.0) (0.8) (0.5) (0.5) (0.5) (0.5) (0.5)
Net cash used by investing activities (130.3) (260.3) (854.8) (303.3) (417.9) (464.9) (489.3) (505.0) (510.8) (550.2) (523.8) (515.9) (507.2) (560.4)

Cash Flows from Financing Activities

Debt issuance (retirement) 420.4 562.0 935.1 535.0 0.0 - - - (0.0) 0.0 - - - -
Premiums paid for capped call confirmations (44.2) (93.4) (145.7) - - - - - - - - - - -
Taxes paid related to net share settlement of equity awards (1.6) (1.3) (2.2) - - - - - - - - - - -
Deferred financing costs - - (0.8) - - - - - - - - - - -
Equity transactions, net (includes stock issuance (buybacks) and dividends) - - - - - - - - - - - - - -
Net proceeds from exercise of stock options 0.2 0.1 0.1 - - - - - - - - - - -
Net cash used by financing activities 375.0 467.5 786.5 535.0 0.0 - - - (0.0) 0.0 - - - -

Effect of exchange rate changes on cash and cash equivalents 0.9 (1.5) (1.6) - - - - - - - - - - -
Net increase/(decrease) in cash and cash equivalents 279.1 290.5 (266.7) 1,243.4 376.7 307.1 356.7 478.7 674.4 849.3 1,332.4 1,407.9 1,675.3 1,730.6

Cash and Cash Equivalents

Beginning of period 279.8 559.0 849.5 582.8 1,826.1 2,202.9 2,510.0 2,866.8 3,345.5 4,019.9 4,869.2 6,201.6 7,609.4 9,284.7
End of period 559.0 849.5 582.8 1,826.1 2,202.9 2,510.0 2,866.8 3,345.5 4,019.9 4,869.2 6,201.6 7,609.4 9,284.7 11,015.3
check on change in cash - - - - - - - - - - - - - -
WAYFAIR INC
CONSOLIDATED INCOME STATEMENT
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Net revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cost of goods sold 76.3% 76.6% 76.5% 71.2% 73.0% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5% 73.5%
Gross profit 23.7% 23.4% 23.5% 28.8% 27.0% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5%

Operating expenses:
Customer service and merchant fees 3.6% 3.8% 3.9% 3.7% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8% 3.8%
Advertising 11.6% 11.4% 12.0% 10.7% 10.4% 10.4% 10.2% 10.0% 9.8% 9.6% 9.4% 9.2% 9.0% 9.0%
Selling, operations, technology, general and administrative 13.4% 15.1% 17.8% 13.7% 13.5% 13.4% 13.3% 13.0% 12.0% 11.0% 9.0% 8.5% 7.0% 7.0%
Total operating expenses 28.7% 30.4% 33.7% 28.0% 27.7% 27.6% 27.3% 26.8% 25.6% 24.4% 22.2% 21.5% 19.8% 19.8%

Profit (Loss) from operations -5.0% -7.0% -10.2% 0.8% -0.7% -1.1% -0.8% -0.3% 0.9% 2.1% 4.3% 5.0% 6.7% 6.7%

Interest (expense), net -0.2% -0.4% -0.6% -0.3% -0.3% -0.2% -0.2% -0.2% -0.2% -0.1% -0.1% -0.1% 0.0% 0.1%
Other income (expense), net 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Profit (loss) before income taxes -5.2% -7.4% -10.8% 0.5% -1.0% -1.4% -1.0% -0.5% 0.7% 2.0% 4.2% 4.9% 6.7% 6.8%

Provision for income taxes, net 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.6% 1.4% 1.4%

Net income (loss) -5.2% -7.4% -10.8% 0.5% -1.0% -1.4% -1.0% -0.5% 0.7% 2.0% 4.2% 4.3% 5.3% 5.3%
WAYFAIR INC
CONSOLIDATED BALANCE SHEETS
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

ASSETS
Current Assets

Cash and equivalents 46.1% 44.9% 19.7% 41.0% 43.9% 45.4% 47.5% 50.5% 54.7% 58.6% 64.3% 68.5% 72.8% 75.6%
Short-term investments 5.0% 6.0% 13.7% 9.1% 8.1% 7.3% 6.7% 6.1% 5.5% 4.9% 4.2% 3.6% 3.2% 2.8%
Accounts receivable 3.1% 2.7% 3.4% 2.7% 2.8% 3.0% 2.8% 2.8% 2.7% 2.5% 2.2% 2.0% 1.8% 1.6%
Inventory 2.3% 2.4% 2.1% 1.9% 2.0% 2.0% 2.0% 1.9% 1.8% 1.7% 1.5% 1.3% 1.2% 1.1%
Prepaid expenses and other 10.8% 10.3% 7.7% 5.1% 4.6% 4.1% 3.8% 3.4% 3.1% 2.8% 2.4% 2.1% 1.8% 1.6%
Deferred income taxes, net 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total Current Assets 67.3% 66.4% 46.6% 59.8% 61.3% 61.8% 62.8% 64.8% 67.8% 70.4% 74.6% 77.5% 80.7% 82.7%

Gross PPE 44.9% 47.4% 36.6% 31.0% 35.8% 40.9% 45.5% 49.1% 51.2% 51.9% 50.1% 48.2% 45.9% 44.1%
Accumulated depreciation -15.2% -15.3% -15.4% -16.7% -22.2% -27.6% -32.8% -37.1% -40.1% -40.8% -39.9% -38.8% -37.6% -36.6%
Net PPE (including capitalized site & software dev costs) 29.8% 32.1% 21.1% 14.3% 13.6% 13.3% 12.8% 11.9% 11.1% 11.1% 10.3% 9.3% 8.3% 7.5%

Long-term investments 1.8% 0.3% 5.3% 3.5% 3.1% 2.8% 2.6% 2.3% 2.1% 1.9% 1.6% 1.4% 1.2% 1.1%
Operating lease right-of-use assets 0.0% 0.0% 25.9% 21.5% 21.2% 21.3% 21.1% 20.2% 18.3% 16.0% 13.0% 11.3% 9.3% 8.4%
Goodwill and intangible assets, net 0.3% 0.1% 0.6% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1%
Other noncurrent assets 0.9% 1.0% 0.5% 0.5% 0.5% 0.5% 0.5% 0.4% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3%

Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable 36.3% 34.4% 30.8% 27.6% 28.5% 29.1% 28.9% 28.3% 26.9% 24.7% 22.0% 19.7% 17.6% 15.9%
Accrued expenses 9.9% 11.3% 10.1% 6.8% 6.2% 5.7% 5.4% 5.0% 4.6% 4.1% 3.6% 3.2% 2.9% 2.6%
Deferred revenue 7.8% 7.8% 5.7% 3.8% 3.5% 3.2% 3.0% 2.8% 2.6% 2.3% 2.0% 1.8% 1.6% 1.4%
Current portion of long-term debt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other current liabilities 7.0% 6.8% 8.0% 5.4% 4.9% 4.5% 4.2% 3.9% 3.6% 3.3% 2.9% 2.5% 2.3% 2.0%

Total Current Liabilities 61.0% 60.2% 54.6% 43.7% 43.1% 42.6% 41.5% 40.1% 37.7% 34.4% 30.5% 27.2% 24.4% 21.9%

Long-Term Liabilities

Long-term debt 27.4% 39.1% 49.3% 46.6% 43.0% 40.5% 38.3% 36.0% 33.0% 30.0% 25.8% 22.4% 19.5% 17.1%
Operating lease liabilities 0.0% 0.0% 27.9% 22.8% 22.3% 22.3% 22.0% 21.1% 19.2% 16.7% 13.6% 11.8% 9.8% 8.8%
Lease financing 6.8% 9.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other liabilities 8.8% 8.5% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1%

Total Long-term liabilities 43.0% 57.2% 77.4% 69.6% 65.6% 63.1% 60.6% 57.4% 52.4% 46.9% 39.6% 34.4% 29.4% 26.0%

Total Stockholders' Equity -4.0% -17.5% -32.0% -13.3% -8.7% -5.7% -2.1% 2.6% 9.9% 18.7% 29.9% 38.4% 46.2% 52.1%

Total Liabilities and Shareholders' Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
(Balance check) - - - - - - - - - - - - - -
WAYFAIR INC
STATEMENT OF CASH FLOWS
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Cash Flows from Operating Activities

Net earnings including noncontrolling interests -727.3% -594.0% 500.3% 6.5% -19.7% -30.0% -22.6% -10.2% 13.0% 30.6% 51.3% 52.7% 58.5% 57.9%

Adjustments to reconcile net earnings to net cash provided

by operating activities:
Depreciation and amortization on PPE and intangible assets 258.7% 145.6% -97.8% 28.5% 46.6% 53.4% 53.3% 49.2% 41.2% 31.4% 24.5% 24.4% 22.1% 23.1%
Equity based compensation 201.7% 150.3% -115.6% 28.2% 39.8% 45.4% 44.8% 40.6% 33.9% 28.3% 20.1% 19.4% 16.2% 15.9%
Amortization of discount and issuance costs on convertible notes 17.3% 26.6% -31.6% 8.0% 10.8% 10.8% 8.4% 7.7% 3.4% 4.4% 0.0% 0.0% 0.0% 0.0%
Other non-cash adjustments 3.6% -0.1% 0.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Change in operating assets and liabilities

Accounts receivable -54.0% -15.1% 25.0% -2.1% -2.4% -3.2% -0.8% -1.5% -1.0% -0.4% -0.4% -0.3% -0.3% -0.3%
Inventory -28.1% -21.6% 7.9% -2.1% -1.9% -1.5% -1.1% -1.0% -0.6% -0.3% -0.3% -0.2% -0.2% -0.2%
Prepaid expenses and other -116.3% -76.8% 16.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Deferred income taxes, net and other current assets -7.2% -9.6% 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Accounts payable and accrued expenses 309.8% 335.9% -167.8% 32.3% 25.8% 24.1% 17.1% 14.3% 9.2% 5.2% 4.3% 3.6% 3.3% 3.3%
Deferred revenue and other liabilities 241.9% 158.7% -38.6% 0.3% 0.4% 0.5% 0.4% 0.4% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2%
Other current liabilities 0.0% 0.0% 0.0% 0.5% 0.6% 0.6% 0.6% 0.5% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3%
Net cash provided by operating activities 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash Flows from Investing Activities

Purchase of available-for-sale securities -162.2% -116.7% 281.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Sales and maturities of available-for-sale securities 211.4% 72.0% -58.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Purchase of property and equipment (CAPEX) -298.7% -187.6% 138.1% -29.7% -52.4% -60.1% -57.7% -51.2% -43.0% -39.3% -28.2% -26.8% -23.2% -24.4%
Proceeds from sale of property and equipment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Site and software development costs -138.0% -73.9% 65.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other investing activities, net 0.0% -0.5% 7.9% -0.3% -0.2% -0.2% -0.1% -0.1% -0.1% 0.0% 0.0% 0.0% 0.0% 0.0%
Net cash used by investing activities -387.5% -306.7% 434.3% -30.0% -52.6% -60.2% -57.8% -51.3% -43.1% -39.3% -28.2% -26.8% -23.2% -24.5%

Cash Flows from Financing Activities

Debt issuance (retirement) 1250.1% 662.3% -475.1% 52.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Premiums paid for capped call confirmations -131.3% -110.1% 74.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Taxes paid related to net share settlement of equity awards -4.6% -1.5% 1.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Deferred financing costs 0.0% 0.0% 0.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Equity transactions, net (stock (purchases) sales and dividends) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net proceeds from exercise of stock options 0.7% 0.2% -0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net cash used by financing activities 1114.9% 550.9% -399.6% 52.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Effect of exchange rate changes on cash and cash equivalents 2.5% -1.8% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net increase/(decrease) in cash and cash equivalents 829.9% 342.3% 135.5% 122.9% 47.4% 39.8% 42.2% 48.7% 56.9% 60.7% 71.8% 73.2% 76.8% 75.5%
WAYFAIR INC
CONSOLIDATED INCOME STATEMENT
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Net revenue 51.7% 74.3% 100.0% 150.7% 169.1% 188.2% 205.7% 220.9% 232.8% 240.9% 249.3% 256.7% 264.4% 272.2%

Cost of goods sold 51.6% 74.4% 100.0% 140.3% 161.4% 180.8% 197.7% 212.3% 223.8% 231.6% 239.6% 246.7% 254.1% 261.7%
Gross profit 52.1% 73.9% 100.0% 184.7% 194.0% 211.9% 231.7% 248.8% 262.3% 271.4% 280.8% 289.1% 297.8% 306.6%

Operating expenses:
Customer service and merchant fees 47.5% 72.9% 100.0% 141.2% 164.4% 182.9% 200.0% 214.7% 226.4% 234.2% 242.4% 249.6% 257.0% 264.7%
Advertising 50.2% 70.6% 100.0% 134.4% 146.6% 163.1% 174.7% 184.0% 190.0% 192.6% 195.2% 196.7% 198.2% 204.1%
Selling, operations, technology, general and administrative 39.1% 63.1% 100.0% 115.7% 128.2% 141.6% 153.7% 161.3% 157.0% 148.9% 126.0% 122.6% 104.0% 107.1%
Total operating expenses 44.0% 66.9% 100.0% 125.3% 138.9% 154.1% 166.6% 175.6% 176.8% 174.3% 164.1% 163.7% 155.2% 159.9%

Profit (Loss) from operations 25.3% 50.9% 100.0% -11.7% 11.7% 20.4% 16.2% 6.5% -20.6% -49.7% -105.2% -126.0% -173.8% -179.0%

Interest (expense), net 17.3% 52.4% 100.0% 79.2% 86.9% 76.7% 74.6% 72.6% 68.1% 60.4% 48.1% 28.1% 2.9% -25.3%
Other income (expense), net 26.3% -7.1% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Profit (loss) before income taxes 24.9% 51.1% 100.0% -6.7% 15.9% 23.6% 19.4% 10.2% -15.7% -43.7% -97.0% -117.8% -164.5% -171.0%

Provision for income taxes, net 16.1% 67.7% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4725.7% 11267.5% 11711.3%

Net income (loss) 24.8% 51.2% 100.0% -6.6% 15.9% 23.6% 19.4% 10.2% -15.7% -43.6% -96.7% -103.0% -129.6% -134.7%
WAYFAIR INC
CONSOLIDATED BALANCE SHEETS
(in $ millions, except per share amounts)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

ASSETS
Current Assets

Cash and equivalents 95.9% 145.8% 100.0% 313.4% 378.0% 430.7% 491.9% 574.1% 689.8% 835.5% 1064.2% 1305.8% 1593.2% 1890.2%
Short-term investments 15.1% 28.3% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Accounts receivable 38.1% 50.7% 100.0% 121.5% 140.3% 165.3% 172.4% 187.5% 199.2% 204.2% 212.0% 218.5% 224.6% 231.5%
Inventory 45.5% 74.8% 100.0% 135.0% 159.7% 177.9% 193.4% 208.9% 219.8% 227.3% 235.4% 242.3% 249.5% 257.0%
Prepaid expenses and other 57.2% 85.4% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Deferred income taxes, net

Total Current Assets 59.3% 91.2% 100.0% 193.4% 223.2% 248.2% 275.3% 311.8% 362.1% 424.5% 522.2% 625.2% 747.6% 874.1%

Gross PPE 50.5% 83.0% 100.0% 127.8% 166.3% 209.3% 254.4% 301.1% 348.3% 399.2% 447.6% 495.3% 542.2% 594.0%
Accumulated depreciation 40.4% 63.7% 100.0% 163.3% 244.5% 334.9% 433.8% 539.9% 647.1% 743.6% 843.4% 946.2% 1052.1% 1168.0%
Net PPE (including capitalized site & software dev costs) 57.8% 97.2% 100.0% 101.9% 109.3% 117.5% 123.5% 126.8% 130.2% 147.8% 158.7% 166.2% 170.1% 175.1%

Long-term investments 13.8% 4.2% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Operating lease right-of-use assets 0.0% 0.0% 100.0% 125.3% 138.9% 154.1% 166.6% 175.6% 176.8% 174.3% 164.1% 163.7% 155.2% 159.9%
Goodwill and intangible assets, net 16.5% 13.7% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Other noncurrent assets 80.0% 139.8% 100.0% 150.7% 169.1% 188.2% 205.7% 220.9% 232.8% 240.9% 249.3% 256.7% 264.4% 272.2%

Total Assets 41.1% 64.0% 100.0% 150.7% 169.8% 187.2% 204.4% 224.5% 249.1% 281.3% 326.6% 376.1% 431.9% 493.2%

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable 48.5% 71.6% 100.0% 135.3% 157.2% 177.0% 192.2% 207.0% 218.3% 225.6% 233.6% 240.5% 247.7% 255.1%
Accrued expenses 40.2% 71.3% 100.0% 102.0% 104.0% 106.1% 108.2% 110.4% 112.6% 114.9% 117.2% 119.5% 121.9% 124.3%
Deferred revenue 56.1% 88.3% 100.0% 102.0% 104.0% 106.1% 108.2% 110.4% 112.6% 114.9% 117.2% 119.5% 121.9% 124.3%
Current portion of long-term debt
Other current liabilities 35.9% 54.0% 100.0% 102.0% 104.0% 106.1% 108.2% 110.4% 112.6% 114.9% 117.2% 119.5% 121.9% 124.3%

Total Current Liabilities 45.9% 70.7% 100.0% 120.8% 134.0% 146.1% 155.6% 164.8% 172.2% 177.3% 182.8% 187.7% 192.8% 198.0%

Long-Term Liabilities

Long-term debt 22.9% 50.7% 100.0% 142.3% 148.2% 153.9% 158.8% 164.0% 166.8% 171.0% 171.0% 171.0% 171.0% 171.0%
Operating lease liabilities 0.0% 0.0% 100.0% 123.5% 136.1% 150.2% 161.8% 170.1% 171.3% 169.0% 159.5% 159.1% 151.3% 155.6%
Lease financing
Other liabilities 1534.5% 2311.1% 100.0% 150.7% 169.1% 188.2% 205.7% 220.9% 232.8% 240.9% 249.3% 256.7% 264.4% 272.2%

Total Long-term liabilities 22.8% 47.4% 100.0% 135.6% 143.9% 152.7% 160.0% 166.4% 168.6% 170.5% 167.1% 167.0% 164.2% 165.7%

Total Stockholders' Equity 5.1% 35.0% 100.0% 62.9% 46.0% 33.4% 13.5% -18.2% -77.1% -164.5% -304.9% -451.7% -624.2% -803.2%

Total Liabilities and Shareholders' Equity 41.1% 64.0% 100.0% 150.7% 169.8% 187.2% 204.4% 224.5% 249.1% 281.3% 326.6% 376.1% 431.9% 493.2%
(Balance check) - - - - - - - - - - - - - -
WAYFAIR INC
NOPAT AND NOA CALCULATIONS
(in $ millions, except per share amounts)

Calculate NOPAT 2017 2018 2019 2020 2021 2022 2023

Operating revenues 4,643.2 6,718.1 9,088.3 13,740.8 15,424.8 17,164.8 18,765.8
Cost of goods sold 3,602.1 5,192.5 6,979.7 9,790.1 11,265.6 12,621.9 13,798.9
Gross margin 1,041.2 1,525.6 2,108.5 3,950.6 4,159.3 4,542.9 4,966.9
Operating expenses 1,354.3 2,060.0 3,077.3 3,856.5 4,275.8 4,740.9 5,125.3
Other operating income (expense) - - - - - - -
EBIT (313.1) (534.4) (968.7) 94.1 (116.6) (198.0) (158.4)
Tax on EBIT (65.8) (112.2) (203.4) 19.8 (24.5) (41.6) (33.3)
NOPAT (247.4) (422.2) (765.3) 74.4 (92.1) (156.4) (125.2)

Calculate NOA
Operating assets 593.4 927.1 1,966.0 2,220.8 2,407.6 2,613.2 2,765.1
Operating liabilities 846.2 1,299.6 2,441.1 2,972.6 3,290.9 3,602.1 3,852.2
Net operating assets (NOA) (252.8) (372.5) (475.0) (751.9) (883.3) (988.9) (1,087.0)

Investment (change in NOA) (119.7) (102.5) (276.8) (131.5) (105.6) (98.1)

ROIC 135.0% 180.6% -12.1% 11.3% 16.7% 12.1%
RONIC 286.7% -819.0% 60.1% 48.9% -29.6%
g(Sales) 44.7% 35.3% 51.2% 12.3% 11.3% 9.3%
g(NOPAT) 70.7% 81.3% -109.7% -223.9% 69.8% -20.0%
 2024 2025 2026 2027 2028 2029 2030
20,149.9 21,242.6 21,979.9 22,742.8 23,421.2 24,119.8 24,839.2
14,816.5 15,619.7 16,161.6 16,722.3 17,220.9 17,734.4 18,263.2
5,333.4 5,622.9 5,818.3 6,020.5 6,200.3 6,385.4 6,576.0
5,402.5 5,440.3 5,365.2 5,050.8 5,037.4 4,777.4 4,919.9
- - - - - - -
(69.1) 182.6 453.1 969.7 1,162.8 1,608.0 1,656.2
(14.5) 38.3 95.2 203.6 244.2 337.7 347.8
(54.6) 144.3 358.0 766.0 918.6 1,270.3 1,308.4

2,880.6 2,931.2 3,033.3 3,037.5 3,092.7 3,064.0 3,143.6

4,070.9 4,199.4 4,263.5 4,274.7 4,351.5 4,369.1 4,489.5
(1,190.3) (1,268.1) (1,230.3) (1,237.2) (1,258.8) (1,305.1) (1,346.0)

(103.3) (77.8) 37.8 (6.9) (21.6) (46.3) (40.8)

4.8% -11.7% -28.7% -62.1% -73.6% -99.1% -98.7%
-71.9% -192.6% -274.6% 1078.2% -2199.5% -1628.5% -82.2%
7.4% 5.4% 3.5% 3.5% 3.0% 3.0% 3.0%
-56.4% -364.2% 148.1% 114.0% 19.9% 38.3% 3.0%
WAYFAIR INC
DISCOUNTED CASH FLOW VALUATION
(in $ millions, except per share amounts)

Method I
NOPAT

Add back non-cash operating expenses

Depreciation and amortization

Gross cash flow

Less net investments in working capital

(-) Change in current operating assets
(+) Change in current operating liabilities

Less net investment in fixed assets and other noncurrent assets

(-) Capital expenditures for PPE
(-) Other net changes in long-term operating assets and liabilities

Free cash flow

Method II
NOPAT
(-) Net change in NOA

Free cash flow

Check difference between methods

DCF Valuation
Free Cash Flows (2020-2029)
Discount Factor = 1/(1+WACC)t
PV of FCFt

Sum of PV of FCF over forecast horizon

Free Cash Flows Beyond 2029 (i.e., Continuing or Terminal Value) =

[FCF2030 / (WACC-g)] / [1+WACC]T
Terminal growth rate, g =
Terminal value year (i.e., # of years forecast), T =

OPERATING VALUE: PV of all future Free Cash Flows

Add financial assets:

(+) Value of Cash and ST Investments2019
(+) Value of LT Investments2019
(+) Other
ENTERPRISE VALUE:

Subtract other financial claims:

(-) Notes Payable2019
(-) Value of stock options outstanding2019 * (1-tax rate) (see note 1)
(-) Value of restricted stock outstanding2019 * (1-tax rate) (see note 2)

EQUITY VALUE at 12/31/2019:

# shares outstanding 12/31/2019 (millions)

Value per share = Value of Equity / # of shares 12/31/2019

Value per share at 8/11/2020 8/11/2020 224

Morningstar estimated price per share closing price on 8/11/2020

Actual per share closing price around 8/11/2020

Note 1: Per footnote 10, the value of these outstanding claims is immaterial.
Note 2: Per footnote 10, most of the value of these outstanding claims will be expensed starting in the year 2020.
2020 2021 2022 2023 2024 2025 2026 2027 2028
74.4 (92.1) (156.4) (125.2) (54.6) 144.3 358.0 766.0 918.6

369.5 456.1 495.2 521.3 560.0 529.1 501.5 455.0 468.6

443.9 364.0 338.8 396.1 505.4 673.4 859.5 1,221.1 1,387.2

(254.7) (186.8) (205.6) (152.0) (115.5) (50.6) (102.0) (4.2) (55.2)

531.6 318.3 311.2 250.0 218.8 128.4 64.2 11.2 76.8

(300.0) (416.7) (463.7) (488.1) (504.0) (510.0) (549.7) (523.3) (515.5)

(3.3) (1.2) (1.2) (1.1) (1.0) (0.8) (0.5) (0.5) (0.5)

417.4 77.6 (20.5) 4.9 103.7 240.4 271.4 704.2 892.9

2020 2021 2022 2023 2024 2025 2026 2027 2028

74.4 (92.1) (156.4) (125.2) (54.6) 144.3 358.0 766.0 918.6
276.8 131.5 105.6 98.1 103.3 77.8 (37.8) 6.9 21.6

351.2 39.4 (50.8) (27.1) 48.7 222.1 320.1 773.0 940.2

66.2 38.2 30.3 32.0 55.1 18.3 (48.7) (68.8) (47.3)

417.4 77.6 (20.5) 4.9 103.7 240.4 271.4 704.2 892.9

0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91 0.91
378.5 70.3 (18.6) 4.5 94.0 217.9 246.1 638.5 809.6

3,612.1

6,943.7
3.0%
10

10,555.9

2,230.4
155.7
-
12,941.9

1,456.2
-
-

14,398.1
93.6

$ 153.83
$ 298.00

$ 87.00
$ 298.00
2029 2030
1,270.3 1,308.4

482.6 528.3

1,752.9 1,836.6

28.8 (79.6)
17.6 120.4

(506.7) (559.9)
(0.5) (0.5)

1,292.0 1,317.0

2029 2030
1,270.3 1,308.4
46.3 40.8

1,316.6 1,349.2

(24.6) (32.2)

1,292.0
0.91
1,171.4
WAYFAIR INC
COST OF CAPITAL
(in $ millions, except per share amounts)

Cost of Capital

WD 11.0%
RD 5.8%
WE 89.0%
RE 11.0%
t 21.0%

WACC = [WD * RD * (1-t)] + [WE * RE] 10.3%