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Whole Foods Market Assignment Build a range of Whole Foods intrinsic value using Conventional grocer peers Supercenters and Wholesalers Compute the WACC for Whole Foods
Whole Foods Market Assignment
- Build a range of Whole Foods intrinsic value using
- Conventional grocer peers
- Supercenters and Wholesalers
- Compute the WACC for Whole Foods using peer betas of
- Organic grocer peers
- Conventional & Supercenters/Wholesaler peers.
Make sure to label your variables clearly and add comments or textbox when appropriate so that your work can easily be followed. Turn in your spreadsheet on Blackboard.
Exhibit 7 | ||||||||||||||||||
WHOLE FOODS MARKET | ||||||||||||||||||
Deutsche Bank Model (millions of USD, except per share figures) | ||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | ||||||||||||
Actual | Actual | Actual | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | |||||||||
At Fiscal Year End | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||
Store Growth | 4.0% | 7.7% | 8.1% | |||||||||||||||
Sales Growth | 12.2% | 15.7% | 10.4% | |||||||||||||||
EBITDA Margin | 8.5% | 9.0% | 9.5% | |||||||||||||||
Tax Rate | 38.1% | 38.4% | 38.8% | |||||||||||||||
NFA @% of sales | 19.8% | 18.7% | 18.8% | |||||||||||||||
Nowc as % of sales | 5.7% | 9.6% | 6.9% | |||||||||||||||
dep+am | 3.1% | 2.7% | 2.6% | |||||||||||||||
Current Asset Turnover | 7.0 | 5.6 | 6.5 | |||||||||||||||
Current Liabilities Turnover | 10.5 | 10.9 | 10.7 | |||||||||||||||
Net PP&E / Store | 6.4 | 6.5 | 6.7 | |||||||||||||||
Annual Dep. & Amort. / Store | 1.00 | 0.93 | 0.94 | |||||||||||||||
Stores | 311 | 335 | 362 | |||||||||||||||
Sales | 10,108 | 11,699 | 12,917 | |||||||||||||||
EBITDA | 859 | 1,055 | 1,222 | |||||||||||||||
Dep. & Amort. | 311 | 311 | 339 | |||||||||||||||
EBIT | 548 | 744 | 883 | |||||||||||||||
Taxes | 209 | 286 | 343 | |||||||||||||||
Net Income | 339 | 458 | 540 | |||||||||||||||
Shares Outstanding | 350 | 364 | 372 | |||||||||||||||
Earnings per Share | 0.97 | 1.26 | 1.45 | |||||||||||||||
Current Assets | 1,453 | 2,103 | 1,980 | |||||||||||||||
Current Liabilities | 880 | 977 | 1,088 | |||||||||||||||
Net Working Capital | 573 | 1,126 | 892 | |||||||||||||||
changes in nowc | ||||||||||||||||||
Net PP&E | 1,997 | 2,193 | 2,428 | |||||||||||||||
changes in pp&E | ||||||||||||||||||
Return on Capital | 13.2% | 13.8% | 16.3% | |||||||||||||||
Source: Company Financial Reports, Deutsche Bank Analyst report and casewriter estimates | ||||||||||||||||||
fcf=ebit*(1-t)-(change in nfa+change in nowc) |
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