FCFF STABLE GROWTH MODEL

Inputs
CF from Operative Activities 6,730,300
Net Income 4,757,800
Current EBIT 7,372,000
Current tax rate 35.5%

Capital Expenditures - 2,583,400

Depreciation 1,664,500
Change in Working Capital 1,437,600
Do you want to change the capital expenditure/depreciation ratio?
If so, enter capital expenditures as a percent of depreciation
Total Debt 1.79E+07
Current Share Price $ 98.81
Total Equity $ 93,060,246.10
Debt-to-equity Ratio 16.13%
Equity-to-debt ratio 83.87%
Cash 2.08E+06

Are you directly entering the cost of equity? (Yes or No)

If yes, enter cost of equity
If no, enter the inputs for the CAPM
Beta of the stock 0.70
Riskfree rate 2.81%
Risk Premium 6.25%

Cost of debt 3.67%

Expected Growth Rate 2.0%

Output
Firm details from prior inputs
EBIT (1- tax rate)
- (Capital Spending - Depreciation)
- Change in Working Capital
Free Cash Flow to Firm (FCFF)

Cost of Equity = 7.19%

Cost of Debt = 2.37%
Cost of Capital (WACC) = 6.41%
Expected Growth rate = 2.00%

Value of Firm

Net Debt
Value of Equity
Number of diluted shares outstanding
Price per share =
Stance
Value of Equity

Growth rate Value

4.00% $326,766,562.18
Equ

0.8
 Value of Equity
3.00% $228,658,435.66 Equ
2.00% $175,066,108.22
1.00% $141,294,201.52
1
0.00% $118,063,186.94
-1.00% $101,104,223.13 0.8
-2.00% $88,179,367.13
0.6

0.4

0.2

0
 FCFF STABLE GROWTH MODEL

(in thousands)
(in thousands)
(in thousands) WEN
SBUX
YUM
(in thousands) DRI
(in thousands) EAT
(in thousands) If negative, enter zero. Average
No
125%
(in thousands) MCD
MCD EV
(in thousands)
( in percent) Avg EV

$/share

No
(in percent)

Avg EV
(in percent)
(in percent) $/share

(in percent)

$4,754,940.00 (in thousands)

-$ 4,247,900.00 (in thousands)
$ 1,437,600.00 (in thousands)
$7,565,240.00 (in thousands)

$175,066,108.22 (in thousands)

$15,822,100.00 (in thousands)

$159,244,008.22 (in thousands)
941,810 (in thousands)
$169.08 (actual)
Undervalued by 71%

Equity Value vs. Expected Growth Rate

0.8
 Equity Value vs. Expected Growth Rate

0.8

0.6

0.4

0.2

Expected Long-Term Growth Rate

 Comparable Company Analysis

EV/EBITDA EV/Revenue Forward P/E

10.83 2.04 28.54
20.9 4.57 30.15
15.07 3.11 19.73
12.84 1.47 20.03
9.35 1.44 13.98
13.798 2.526 22.486

Total EBITDA Total Rev EPS (For P/E Value)

$ 9,030,000,000.00 $ 26,020,000,000.00 $ 4.30
$ 124,595,940,000.00 $ 65,726,520,000.00 $ 91,063,420,538.00

$ 114,112,997,188.43

$ 121.14
Undervalued by 23%

IF DCF Excluded

$ 93,795,293,512.67

$ 99.57
Undervalued by 1%

te
te

Growth Rate
DCF
(actual)
$175,066,108,215.71 (actual)