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This document provides an in-depth analysis of discount stores, focusing on the reformulation of financial statements and adjustments to accounting methods. It includes a detailed review of adjusted balance sheets, income statements, and ratio calculations. Key computations such as EPAT and FEAT are explored, alongside growth rate changes and revenue valuation forecasts. The recommendation is to buy at the current stock price of $77.56, based on strong future growth potential and positive financial metrics.
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Discount, Variety Stores Module 12: Reformulation Revisited and More Complete Analysis Claire (Lan) Lin
Adjusted Financial Statements Three Accounting Method Adjustments
Reformulation – EPAT Computation
Valuation: FCF Growth rate changes to 1.5% after 2018
Valuation: REI Growth rate changes to 1.5% after 2018
Valuation: AGR Growth rate changes to 1.5% after 2018
Recommendation Current Stock price=$77.56 BUY!!!