Question

1 Approved Answer

Posted on Jul 15, 2024

Figure out the implied enterprise value of Whole Foods based on the industry average EBITDA multiple and the implied share price Nomondo Conventional roris coposed

image text in transcribed Figure out the implied enterprise value of Whole Foods based on the industry average EBITDA multiple and the implied share price

Nomondo Conventional roris coposed of Pet The Facal Analysis and Forecasting EXHIBIT 7.51 EXHIBIT 7.4 Selected Operating Data for comparable Companies Average Sales Growth 203 Company Natural & Orga Whole Foods Sprouts Former The Fresh Conventional Kroger Salowy Supervel Supercenter WM Target Costco 10 2011 2013 2010 2012 2008 2009 2007 -30% 2003 2004 2005 2006 ---- Conventional Grocer Whole Foods Market Data Source Supercenters and wholesalers Omer Natural Organic Average EBITDA Margins 45 2% 0% 2003 2004 2005 2006 2007 2009 2009 2010 2013 2011 2012 Whole Foods Market One Natural & Organic ---- Conventional Grocer ........ Supercenters and wholesalers Servu "Superetes wholesalers.com Wort and Costco Source Company SC 2003-2011 Case 7 Whole Foods Market: The Deutsche Bank Report 123 EXHIBIT 7.5 Selected Financial Data for comparable Companies in millions of USD, except percentages, ratios, and per share data; financial statement data as of fiscal year 2013) Market Cap Bond Credit Company Sales EBITDA of Equity Total Debt Beta Rating Natural & Organic Whole Foods Market 12.917 1.222 14,481 0 0.70 NA Sprouts Farmers Market 2.438 187 4,102 304 0.75 B8- The Fresh Market 1.512 138 1,554 25 0.80 NA Conventional Grocers Kroger 98.375 23.679 11,311 0.70 BBB Safeway 36,139 1.579 4,451 0.75 BBB Supervalu 17.155 720 2.531 1.00 Supercenters and Wholesalers Wal-Mart 476.294 35,742 251.747 55.245 0.60 Target 72,596 6,452 36.806 14,089 Costco 105.156 3.999 49,257 4,985 0.75 A+ 4.428 7899 1,876 0.75 Data sources: Value Line, Mergent Online, YCharts, Yahool Finance Standard and Poor's, company SEC rings and author estimates 121 Case Whole Foods Market The Deutsche Bank Report EXHIBIT 7.2 1 Select Market Share Data Actual 2011 2016 Grocery Sales by Channel Traditions Supermarkets Supercenters Convenience Stores Wholesale Clubs Drug Stores Mass Merchandisers Limited Assortment Grocery Stores Dolar Stores Other 40.1 17.25 15.1 8.55 37.4% 18.5 15.6% 90% 279 5.9 2.8% 3.7% 2.3% 4.9% 4.3% Top Grocery Retailers in North America 2012 Revenue i$ billons 1450 963 873 73.1 Wal-Mart Kroger Costco Torget Safeway Loblaw Cos Public Ahold USA Retail 7-Eleven CES Wholesale Grocers Delhaize America H-E-B Grocery Co Soboys Dolls General Corp Mejer, Inc Wakefern Food Corp Metro Inc Whole Foods Market 318 27.5 27.3 22.0 21.4 19.5 17.7 16.1 14.6 136 12.0 11.7 Source: Market Shore Reporter (Farmington Hills, M. 2014 and author analysis EXHIBIT 7.3 | U.S. Store Count Forecast-Natural and Organic Share versus Total Industry 2017 2013 2018 2016 2014 36,092 1,367 36.092 2.079 Conventional Supermarkets Natural and Organic Subtotal Assumed Growth Rete NEO Share of Industry 2015 36,092 1,808 15% 4.8% 36,092 1,572 15% 42% 36,092 2.391 15% 6.2% 36,092 2.750 15% 7.1% 3.6% 5.4% Data source: Deutsche Bank Research Food Marketing Institute 2UNU 2009 2008 Superviu Supercenters and Wholesalers Wal-Mart Target Costco 2200 20 Data sources: Value Line, Mergent On - Oradan Average EBITDA Margins 25 2009 2010 2011 2012 2013 0 2003 2004 2005 2006 2007 2008 Whole Foods Market Conventional Grocer Other Natural & Organic Supercenters and wholesalers Note Oberfuture organie" is composed of Sprouts and Fresh Market. "Conventional grocer" is composed of Kroger, Safeway, and Super Supercenters and wholesalers is composed of art and Costco Source Company SEC fings2003-2013 Cautional Grocer Supercenters and wholesalers Nomondo Conventional roris coposed of Pet The Facal Analysis and Forecasting EXHIBIT 7.51 EXHIBIT 7.4 Selected Operating Data for comparable Companies Average Sales Growth 203 Company Natural & Orga Whole Foods Sprouts Former The Fresh Conventional Kroger Salowy Supervel Supercenter WM Target Costco 10 2011 2013 2010 2012 2008 2009 2007 -30% 2003 2004 2005 2006 ---- Conventional Grocer Whole Foods Market Data Source Supercenters and wholesalers Omer Natural Organic Average EBITDA Margins 45 2% 0% 2003 2004 2005 2006 2007 2009 2009 2010 2013 2011 2012 Whole Foods Market One Natural & Organic ---- Conventional Grocer ........ Supercenters and wholesalers Servu "Superetes wholesalers.com Wort and Costco Source Company SC 2003-2011 Case 7 Whole Foods Market: The Deutsche Bank Report 123 EXHIBIT 7.5 Selected Financial Data for comparable Companies in millions of USD, except percentages, ratios, and per share data; financial statement data as of fiscal year 2013) Market Cap Bond Credit Company Sales EBITDA of Equity Total Debt Beta Rating Natural & Organic Whole Foods Market 12.917 1.222 14,481 0 0.70 NA Sprouts Farmers Market 2.438 187 4,102 304 0.75 B8- The Fresh Market 1.512 138 1,554 25 0.80 NA Conventional Grocers Kroger 98.375 23.679 11,311 0.70 BBB Safeway 36,139 1.579 4,451 0.75 BBB Supervalu 17.155 720 2.531 1.00 Supercenters and Wholesalers Wal-Mart 476.294 35,742 251.747 55.245 0.60 Target 72,596 6,452 36.806 14,089 Costco 105.156 3.999 49,257 4,985 0.75 A+ 4.428 7899 1,876 0.75 Data sources: Value Line, Mergent Online, YCharts, Yahool Finance Standard and Poor's, company SEC rings and author estimates 121 Case Whole Foods Market The Deutsche Bank Report EXHIBIT 7.2 1 Select Market Share Data Actual 2011 2016 Grocery Sales by Channel Traditions Supermarkets Supercenters Convenience Stores Wholesale Clubs Drug Stores Mass Merchandisers Limited Assortment Grocery Stores Dolar Stores Other 40.1 17.25 15.1 8.55 37.4% 18.5 15.6% 90% 279 5.9 2.8% 3.7% 2.3% 4.9% 4.3% Top Grocery Retailers in North America 2012 Revenue i$ billons 1450 963 873 73.1 Wal-Mart Kroger Costco Torget Safeway Loblaw Cos Public Ahold USA Retail 7-Eleven CES Wholesale Grocers Delhaize America H-E-B Grocery Co Soboys Dolls General Corp Mejer, Inc Wakefern Food Corp Metro Inc Whole Foods Market 318 27.5 27.3 22.0 21.4 19.5 17.7 16.1 14.6 136 12.0 11.7 Source: Market Shore Reporter (Farmington Hills, M. 2014 and author analysis EXHIBIT 7.3 | U.S. Store Count Forecast-Natural and Organic Share versus Total Industry 2017 2013 2018 2016 2014 36,092 1,367 36.092 2.079 Conventional Supermarkets Natural and Organic Subtotal Assumed Growth Rete NEO Share of Industry 2015 36,092 1,808 15% 4.8% 36,092 1,572 15% 42% 36,092 2.391 15% 6.2% 36,092 2.750 15% 7.1% 3.6% 5.4% Data source: Deutsche Bank Research Food Marketing Institute 2UNU 2009 2008 Superviu Supercenters and Wholesalers Wal-Mart Target Costco 2200 20 Data sources: Value Line, Mergent On - Oradan Average EBITDA Margins 25 2009 2010 2011 2012 2013 0 2003 2004 2005 2006 2007 2008 Whole Foods Market Conventional Grocer Other Natural & Organic Supercenters and wholesalers Note Oberfuture organie" is composed of Sprouts and Fresh Market. "Conventional grocer" is composed of Kroger, Safeway, and Super Supercenters and wholesalers is composed of art and Costco Source Company SEC fings2003-2013 Cautional Grocer Supercenters and wholesalers