1 / 13

Staples Module 8 Presentation

Staples Module 8 Presentation. Mary Astuno 17 February 2014. Business Segments. North American Commercial segment consists of the U.S. and Canadian business units that sell and deliver office products and services directly to businesses, including Staples Advantage and Quill.com .

duer
Télécharger la présentation

Staples Module 8 Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Staples Module 8 Presentation Mary Astuno 17 February 2014

  2. Business Segments North American Commercial segment consists of the U.S. and Canadian business units that sell and deliver office products and services directly to businesses, including Staples Advantage and Quill.com. International Operations segment consists of businesses in 23 countries in Europe, Australia, South America and Asia] Reported negative NI of $210.7M for FY 2012 Reported NI of $620M for FY 2013

  3. Residual Enterprise Income Residual enterprise income method can be algebraically derived from the free cash flow model and thus the two are equivalent. REI and FCF using 2013 forecasted data:

  4. REI-Forecasted 2013 Sales

  5. DCF-forecasted 2013 Sales

  6. REI-2013 Data

  7. DCF-2013 Data

  8. Abnormal Enterprise Income Growth Model

  9. Abnormal Enterprise Income Growth Model • Mathematically equivalent to the free cash flow model. • FCF=EPAT-Change in NEA • EPAT/r(ent) serves as the starting point-it anchors the valuation • Agr=EPAT+(r(ent)*FCF)Represents Cumulative FCF income - ((1+r(ent))*EPAT)Represents Normal Income

  10. Abnormal Enterprise Income Growth Model • Different accounting methods do not causes a change in the value estimate: • Change in depreciation causes no effect on value calculated • Income shifted between periods causes no effect on value calculated • Ex: LIFO vs FIFO • Capital vs Operating lease • GAAP vs IFRS

  11. Abnormal Enterprise Income Growth Model

  12. Staples Enterprise Value-Ycharts.com

  13. The End Questions, comments?

More Related