General Assumptions:

Company Name:
Ticker:
Current Share Price:
Last Historical Year: 2021-12-31

Annual Gross Margin Improvement: 0.30%

Effective Tax Rate: 30.0%
Interest Rate on Debt: 4.0%
Interest Rate on Cash: 0.5%
 Historical Projected
Financial Statement Drivers: Units: FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
Income Statement Drivers:
Revenue Growth: % 2.5% (7.4%) 5.0% 4.0% 4.0% 3.0% 3.0%
Gross Margin: % 39.5% 40.1% 41.2% 41.5% 41.8% 42.1% 42.4% 42.7%
SG&A % Revenue: % 19.9% 18.5% 18.0% 18.0% 17.5% 17.5% 17.0% 17.0%

Amortization of Intangible Assets: $M 217.0 196.0 175.0 153.0 134.0

Impairment of Goodwill: $M - - - - -

Amortization of Debt: % 10.0% 10.0% 10.0% 10.0% 10.0%

Beginning Debt Balance: $M 7,422.0 6,679.8 5,937.6 5,195.4 4,453.2

(-) Amortization: $M (742.2) (742.2) (742.2) (742.2) (742.2)
Ending Debt Balance: $M 6,679.8 5,937.6 5,195.4 4,453.2 3,711.0

Interest Expense: $M 296.9 267.2 237.5 207.8 178.1

Interest Income: $M 15.5 - - - -

Income from Discontinued Operations: $M - - - - -

Balance Sheet Drivers:

Days Sales Outstanding: # Days 61.1 57.8 60.0 59.6 59.6 59.6 59.6 59.6
Days Sales of Inventory: # Days 53.2 49.7 50.3 50.0 49.0 49.0 48.0 48.0
Days Payable Outstanding: # Days 27.1 21.5 20.8 20.0 19.0 19.0 18.0 18.0

Prepaid Expenses & Other % SG&A: % 91.87% 14.97% 14.11% 13.0% 13.0% 12.0% 12.0% 11.0%
Other Long-Term Assets % Revenue: % 11.0% 10.0% 10.7% 10.6% 10.6% 10.6% 10.6% 10.6%
Accrued Expenses % SG&A: % 45.2% 48.1% 47.0% 46.7% 46.7% 46.7% 46.7% 46.7%

Other Current Liabilities % SG&A: s 20.5% 9.3% 10.6% 10.0% 10.0% 10.0% 10.0% 10.0%
Other Long-Term Liabilities % SG&A: % 32.8% 37.4% 40.6% 36.9% 36.9% 36.9% 36.9% 36.9%

Cash Flow Statement Drivers:

Capital Expenditures: $M (285.0) (325.0) (375.0) (425.0) (475.0)
Depreciation % Revenue: % 2.1% 1.8% 1.8% 1.7% 1.8% 1.9% 2.0% 2.1%

Stock-Based Compensation % Revenue: % 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%

Deferred Taxes % Taxes: % 0.8% 6.8% (1.3%) 2.1% 2.1% 2.1% 2.1% 2.1%
Dividends % Net Income: % 31.4% 24.1% 39.1% 31.6% 31.6% 31.6% 31.6% 31.6%

Stock Repurchases: $M 1,900.0 4,198.0 1,943.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0

Other Non-Cash Items: $M - - - - -

Other Investing Items: $M - - - - -
Other Financing Items: $M - - - - -

FX Rate Effects % Revenue: % (0.7%) (3.7%) (3.5%) (2.6%) (2.6%) (2.6%) (2.6%) (2.6%)
 Historical Projected
Income Statement: Units: FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Total Revenue: $M $ 14,135.0 $ 14,484.0 $ 13,405.0

Cost of Goods Sold (COGS): $M 8,554.0 8,673.0 7,888.0

Gross Profit: $M 5,581.0 5,811.0 5,517.0 - - - - -

Operating Expenses:
(+) Selling, General & Administrative: $M 2,815.0 2,678.0 2,417.0
(+) Amortization of Intangible Assets: $M 250.0 242.0 231.0
(+) Impairment of Goodwill: $M 2.0 3.0 2.0
Total Operating Expenses: $M 3,067.0 2,923.0 2,650.0 - - - - -

Operating Income (EBIT): $M 2,514.0 2,888.0 2,867.0 - - - - -

Operating (EBIT) Margin: % 17.8% 19.9% 21.4% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Other Income / (Expense):

(-) Interest Expense: $M (239.0) (250.0) (226.0)
(+) Interest and Other Income: $M 72.0 61.0 78.0
Total Other Income / (Expense): $M (167.0) (189.0) (148.0) - - - - -

Pre-Tax Income: $M 2,347.0 2,699.0 2,719.0 - - - - -

(-) Provision For Income Taxes: $M (717.0) (809.0) (820.0)
Income from Continuing Operations: $M 1,630.0 1,890.0 1,899.0 - - - - - -

(+) Income from Discontinued Operations: $M 49.0 1,056.0 -

Net Income: $M $ 1,679.0 $ 2,946.0 $ 1,899.0

 Historical Projected
Balance Sheet: Units: FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
ASSETS:
Current Assets:
Cash & Equivalents: $M $ 3,618.0 $ 3,990.0 $ 3,090.0
Accounts Receivable: $M 2,365.0 2,293.0 2,203.0
Inventory: $M 1,247.0 1,180.0 1,086.0
Prepaid Expenses & Other Current Assets: $M 2,586.0 401.0 341.0
Total Current Assets: $M 9,816.0 7,864.0 6,720.0 - - - - -

Non-Current Assets:
Net PP&E: $M 1,709.0 1,686.0 1,577.0
Goodwill: $M 4,886.0 4,667.0 4,439.0
Other Intangible Assets: $M 1,999.0 1,799.0 1,560.0
Other Long-Term Assets: $M 1,556.0 1,449.0 1,433.0
Total Non-Current Assets: $M 10,150.0 9,601.0 9,009.0 - - - - -

Total Assets: $M $ 19,966.0 $ 17,465.0 $ 15,729.0 $ - $ - $ - $ - $ -

LIABILITIES AND EQUITY:

Current Liabilities:
Accounts Payable: $M $ 634.0 $ 512.0 $ 449.0
Accrued Expenses: $M 1,272.0 1,287.0 1,136.0
Other Current Liabilities: $M 577.0 250.0 257.0
Total Current Liabilities: $M 2,483.0 2,049.0 1,842.0 - -

Non-Current Liabilities:
Long-Term Debt: $M 6,344.0 7,419.0 7,422.0
Deferred Tax Liability: $M 507.0 171.0 256.0
Other Long-Term Liabilities: $M 923.0 1,002.0 981.0
Total Non-Current Liabilities: $M 7,774.0 8,592.0 8,659.0 - - - - -

Total Liabilities: $M $ 10,257.0 $ 10,641.0 $ 10,501.0 $ - $ - $ - $ - $ -

Equity: $M $ 9,709.0 $ 6,824.0 $ 5,228.0

Total Liabilities & Equity: $M $ 19,966.0 $ 17,465.0 $ 15,729.0 $ - $ - $ - $ - $ -

Balance Check: OK! OK! OK! OK! OK! OK! OK! OK!
 Historical Projected
Cash Flow Statement: Units: FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income: $M $ 1,679.0 $ 2,946.0 $ 1,899.0

Adjustments for Non-Cash Charges:
(+) Depreciation: $M 299.0 262.0 244.0
(+) Impairment of Goodwill: $M 2.0 3.0 2.0
(+) Amortization of Other Intangibles: $M 312.0 242.0 231.0
(+/-) Deferred Taxes: $M 6.0 55.0 (11.0)
(+) Stock-Based Compensation: $M 37.0 39.0 41.0
(+/-) Other Non-Cash Items: $M 76.0 (1,700.0) -
Changes in Operating Assets and Liabilities:
Accounts Receivable: $M (83.0) (70.0) (42.0)
Inventory: $M 24.0 (10.0) 25.0
Prepaid Expenses & Other Assets: $M 226.0 (98.0) 24.0
Accounts Payable: $M 8.0 (20.0) (30.0)
Accrued Expenses: $M 161.0 5.0 (56.0)
Other Liabilities: $M (219.0) (38.0) (28.0)
Net Cash Provided by Operating Activities: $M 2,528.0 1,616.0 2,299.0 - - - - -

CASH FLOWS FROM INVESTING ACTIVITIES:

(-) Capital Expenditures: $M (368.0) (361.0) (284.0)
(+/-) Other Investing Items: $M (88.0) 3,203.0 74.0
Net Cash Used in Investing Activities: $M (456.0) 2,842.0 (210.0) - - - - -

CASH FLOWS FROM FINANCING ACTIVITIES:

(-) Dividends Paid: $M (528.0) (711.0) (742.0)
(-) Stock Repurchases: $M (1,900.0) (4,198.0) (1,943.0)
(+) Debt Issuances / (-) Repayments: $M 1,264.0 1,339.0 151.0
(+) Other Financing Items: $M 24.0 19.0 8.0
Net Cash Provided by Financing Activities: $M (1,140.0) (3,551.0) (2,526.0) - - - - -

FX Rate Effects: $M (93.0) (535.0) (463.0)

Change in Cash & Cash Equivalents: $M 839.0 372.0 (900.0) - - - - -

Beginning Cash: $M 2,779.0 3,618.0 3,990.0
Ending Cash: $M $ 3,618.0 $ 3,990.0 $ 3,090.0 $ - $ - $ - $ - $ - ###
Assumptions
Tax Rate 30.00%
Discount Rate 10.00%
Perpetual Growth Rate 4.00%
EV/EBITDA Mulltiple 14
Transaction Date 6/30/2022
Fiscal Year End 12/31/2022
Current Price 2.5
Shares Outstanding 10000

Discounted Cash Flow entry 2022 2023 2024

Date 6/30/2022 12/31/2022 12/31/2023 12/31/2024
Time periods 0 1 2
Year frac. 0.50 1.00 1.00

EBIT - - -
Less: Cash Taxes - - -
NOPAT - - -
Plus: D&A - - -
EBITDA - - -
Less: Capex - - -
Less: Changes in NWC (2,840) - -
FCFF 2,840 - -

Transaction FCFF (29,332) 1,420 - -

IRR (1.00)

Intrinsic Value Market Value

Enterprise Value (27,979) Market Cap
Plus: Cash 3,090 Plus: Debt
Less: Debt 7,422 Less: Cash
Equity Value (32,311) Enterprise Value

Equity Value/Share -3.23

 ev/ebitda*ebitda

2025 2026 exit Terminal Value

12/31/2025 12/31/2026 12/31/2026 EV/EBITDA
3 4 Perp. Growth
1.00 1.00 1.00 Average

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

- - -

Rate of Return
25,000 Current Price 2.50
7,422 Target Price - 3.23
3,090 TP Upside -229%
29,332 IRR -99.75%
-
-
-
Individual Stock S&P 500 Index
Date Price Return Date Price Return
1/2/2018 15.78 1/2/2018 2,696
1/9/2018 16.38 3.8% 1/9/2018 2,751 2.0%
### 16.67 1.8% ### 2,776 0.9%
### 17.17 3.0% ### 2,839 2.3%
### 17.02 -0.9% ### 2,822 -0.6%
2/6/2018 16.31 -4.2% 2/6/2018 2,695 -4.5%
### 16.00 -1.9% ### 2,663 -1.2%
### 16.43 2.7% ### 2,716 2.0%
### 16.97 3.3% ### 2,765 1.8%

BETA 1.212855

Current yield on U.S. 10-year treasury 6.00%

Average historical annual excess return for U.S. stock 4.00%
Beta of the stock 2

Ke= Rf+(Rm-Rf)*beta 14.00%

WACC 0.114333
 balance sheet figures
Cost of debt 0.09 average debt
tax rate 0.3 she

total
et figures
10000
20000

30000