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FAMOUS DCF VALUE MODEL Ctrl+Page Down repeatedly to see the steps required to complete a FAMOUS DCF valuation analysis

IS INPUT BS INPUT Page 1 SSE INPUT Page 1 NOPAT Page 1 IC Page 1 FCF Page 1 WACC INPUT Page 1 CV INPUT Page 1 VALUE Page 1

Past Future Past Future Past Future Past Future Past Future Past Future Past Future Current Future

IS IS BS BS SSE SSE NOPAT NOPAT IC IC FCF FCF WACC WACC DCF DCF

Values Values

IS INPUT Page 2 BS INPUT Page 2 SSE INPUT Page 2 NOPAT Page 2 IC Page 2 FCF Page 2 WACC INPUT Page 2 CV INPUT Page 2 VALUE Page 2

Past Future Past Future Past Future Past Future Past Future Past Future Past Future Future

IS IS BS BS SSE SSE NOPAT NOPAT IC IC FCF FCF WACC WACC DCF

Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers VA

VALUE Page 3

Past

Market

VA

Assistants pp. 1-2 Assistants pp. 3-4 Assistants pp. 5-6

IS BS SSE

Assistant Assistant Assistant

Pages in green fill are pages in FAMOUS input worksheets comprised mainly of cells in which the analyst must enter data, either past data from reported financial statements or the market, or future driver estimates.

Pages in red fill are pages in FAMOUS input worksheets comprised mainly of cells generated by FAMOUS based on data entered by the analyst elsewhere and/or based on values in other generated cells.

Pages in dark fill are pages in FAMOUS output worksheets comprised of cells generated by FAMOUS based on past years' values in other cells generated by FAMOUS, either in prior worksheets or in the same worksheet.

Pages in blue fill are pages in FAMOUS output worksheets comprised of cells generated by FAMOUS based on future years' values in other cells generated by FAMOUS, either in prior worksheets or in the same worksheet.

Drivers

Continuing

Value

Continuing

Value

FAMOUS DCF STEPS

Step 1 -- Income Statement -- Analyst Enters Past Accounting Data and FAMOUS Generates Past Statements


Past

IS

IS INPUT BS INPUT Page 2 SSE INPUT Page 2 NOPAT Page 2 IC Page 2 FCF Page 2 WACC INPUT Page 2 CV INPUT Page 2 VALUE Page 2

VALUE Page 3


IS

Assistant

Analyst enters data from historical income statements into IS Assistant pages (Assistants Page 1 and Page 2).

FAMOUS uses the past data entered by the analyst (Assistants Page 1 and Page 2) to generate historical GAAP formatted Income Statements.

The result is historical GAAP formatted Income Statements (IS INPUT Page 1).

FAMOUS DCF STEPS

Step 1 -- Balance Sheet -- Analyst Enters Past Accounting Data and FAMOUS Generates Past Statements


Past Past

IS BS


VALUE


IS BS

Assistant Assistant

Analyst enters data from historical balance sheets into BS Assistant pages (Assistants Page 3 and Page 4).

FAMOUS uses the past data entered by the analyst (Assistants Page 3 and Page 4) to generate historical GAAP formatted Balance Sheets.

The result is historical GAAP formatted Balance Sheets (BS INPUT Page 1).

FAMOUS DCF STEPS

Step 1 -- Statement of Stockholders' Equity -- Analyst Enters Past Accounting Data and FAMOUS Generates Past Statements


Past Past Past

IS BS SSE


VALUE Page 3


IS BS SSE


Analyst enters income directly to RE, share-based compensation, common dividends and common shares issued/repurchased data from historical statements of stockholders' equity into Assistants pages (Page 5 & 6).

FAMOUS uses the past data entered by the analyst (Assistants Page 5 and Page 6) to generate historical GAAP formatted Statements of Stockholders' Equity.

The result is historical GAAP formatted Statements of Stockholders' Equity (SSE INPUT Page 1).

FAMOUS DCF STEPS

Step 1 -- Completed -- Must Check Audit


Past Past Past

IS BS SSE


VALUE Page 3


IS BS SSE


Analyst, before proceeding to Step 2, must check for any remaining errors from Step 1 (Audit Page 1; FAMOUS vs. 10K Data and FAMOUS Internal Consistency -- Financial Statements)

FAMOUS DCF STEPS

Step 2 -- NOPAT -- FAMOUS Generates Past Statements


Past Past Past Past

IS BS SSE NOPAT


VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical GAAP formatted Income Statements (IS INPUT Page 1) to generate the historical NOPAT Statements.

The result is the historical NOPAT Statements (NOPAT Page 1).

FAMOUS DCF STEPS

Step 2 -- Invested Capital -- FAMOUS Generates Past Statements


Past Past Past Past Past

IS BS SSE NOPAT IC


VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical GAAP formatted Balance Sheets (BS INPUT Page 1) to generate the historical Invested Capital Statements.

The result is the historical Invested Capital Statements (IC Page 1).

FAMOUS DCF STEPS

Step 2 -- Free Cash Flow -- FAMOUS Generates Past Statements


Past Past Past Past Past Past

IS BS SSE NOPAT IC FCF


VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical NOPAT Statements (NOPAT Page 1) and Invested Capital Statements (IC Page 1) to generate the historical Free Cash Flow Statements.

The result is the historical Free Cash Flow Statements (FCF Page 1).

FAMOUS DCF STEPS

Step 2 -- Completed -- Check Audit





VALUE Page 3


IS BS SSE


Analyst, before proceeding to Step 3, should check for any remaining errors from Step 2 (Audit Page 1; FAMOUS Internal Consistency -- Financial Statements & ROIC Driver Calculations).)

FAMOUS DCF STEPS

Step 3 -- Income Statement -- FAMOUS Calculates and Analyst Analyzes Past Drivers





Past

IS

Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical Income Statements (IS INPUT Page 1) and Balance Sheets (BS INPUT Page 1) to calculate the historical IS drivers.

The results are the IS drivers for past years (IS INPUT Page 2).

In Comments file, analyst summarizes past performance per past IS (IS INPUT Page 1) and past IS drivers (IS INPUT Page 2). [Historical NOPAT performance is more central in DCF analysis than is IS analysis.]

FAMOUS DCF STEPS

Step 3 -- Balance Sheet -- FAMOUS Calculates and Analyst Analyzes Past Drivers





Past Past

IS BS

Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical BS (BS INPUT Page 1) and IS (IS INPUT Page 1) to calculate the historical BS drivers.

The results are the BS drivers for past years (BS INPUT Page 2).

In Comments file, analyst summarizes past performance per past BS (BS INPUT Page 1) and past BS drivers (BS INPUT Page 2). [Historical IC performance is more central in DCF analysis than is BS analysis.]

FAMOUS DCF STEPS

Step 3 -- Statement of Stockholders' Equity -- FAMOUS Calculates and Analyst Analyzes Past Drivers





Past Past Past

IS BS SSE

Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical SSE (SSE INPUT Page 1) and IS (IS INPUT Page 1) to calculate the historical SSE drivers.

The results are the SSE drivers for past years (SSE INPUT Page 2).

In Comments file, analyst summarizes past performance per past SSE (SSE INPUT Page 1) and past SSE drivers (SSE INPUT Page 2). [Historical SSE performance is central to DCF analysis via ending shares.]

FAMOUS DCF STEPS

Step 3 -- NOPAT -- FAMOUS Calculates and Analyst Analyzes Past Drivers





Past Past Past Past

IS BS SSE NOPAT

Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical NOPAT Statements (NOPAT Page 1) to calculate the historical NOPAT drivers.

The results are the NOPAT drivers for past years (NOPAT Page 2).

In Comments file, analyst summarizes past performance as represented by past NOPAT Statements (NOPAT Page 1) and past NOPAT drivers (NOPAT Page 2).

FAMOUS DCF STEPS

Step 3 -- Invested Capital -- FAMOUS Calculates and Analyst Analyzes Past Drivers





Past Past Past Past Past

IS BS SSE NOPAT IC

Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical IC Statements (IC Page 1) and NOPAT Statements (NOPAT Page 1) to calculate the historical IC drivers.

The results are the IC drivers for past years (IC Page 2).

In Comments file, analyst summarizes past performance as represented by past IC Statements (IC Page 1) and past IC drivers (IC Page 2).

FAMOUS DCF STEPS

Step 3 -- Free Cash Flow -- FAMOUS Calculates and Analyst Analyzes Past Drivers







Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the generated historical FCF Statements (FCF Page 1), NOPAT Statements (NOPAT Page 1) and IC Statements (IC Page 1) to calculate the historical FCF drivers.

The results are the FCF drivers for past years (FCF Page 2).

In Comments file, analyst summarizes past performance as represented by past FCF Statements (FCF Page 1) and past FCF drivers (FCF Page 2).

FAMOUS DCF STEPS








Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst, before proceeding to Step 4, should check for errors from Step 3 (Audit Page 1; FAMOUS Internal Consistency -- Financial Statements & ROIC Driver Calculations).

FAMOUS DCF STEPS

Step 4 -- Income Statement -- Analyst Enters and Supports Estimated Future Drivers





Past Future Past Past Past Past Past

IS IS BS SSE NOPAT IC FCF

Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst enters estimated future IS drivers (IS INPUT Page 2).

In Comments file, analyst summarizes support for estimated future IS drivers (IS INPUT Page 3).

FAMOUS DCF STEPS

Step 4 -- Balance Sheet -- Analyst Enters and Supports Estimated Future Drivers





Past Future Past Future Past Past Past Past

IS IS BS BS SSE NOPAT IC FCF

Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst enters estimated future BS drivers (BS INPUT Page 2).

In Comments file, analyst summarizes support for estimated future BS drivers (BS INPUT Page 3).

FAMOUS DCF STEPS

Step 4 -- Statement of Stockholders' Equity -- Analyst Enters and Supports Estimated Future Drivers





Past Future Past Future Past Future Past Past Past

IS IS BS BS SSE SSE NOPAT IC FCF

Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst enters estimated future SSE drivers (SSE INPUT Page 2).

In Comments file, analyst summarizes support for estimated future SSE drivers (SSE INPUT Page 2).

FAMOUS DCF STEPS

Step 5 -- Income Statement -- FAMOUS Generates Future Statements


Past Future Past Past Past Past Past

IS IS BS SSE NOPAT IC FCF





VALUE Page 3


IS BS SSE


FAMOUS uses the estimated future IS drivers entered by the analyst (IS INPUT Page 2) to generate estimated future GAAP formatted Income Statements.

The result is estimated future GAAP formatted Income Statements (IS INPUT Page 1).

CV INPUT Page

FAMOUS DCF STEPS

Step 5 -- Balance Sheet -- FAMOUS Generates Future Statements


Past Future Past Future Past Past Past Past

IS IS BS BS SSE NOPAT IC FCF





VALUE Page 3


IS BS SSE


FAMOUS uses the estimated future BS drivers entered by the analyst (BS INPUT Page 2) and the estimated future IS to generate estimated future GAAP formatted Balance Sheets.

The result is estimated future GAAP formatted Balance Sheets (BS INPUT Page 1).

CV INPUT Page

FAMOUS DCF STEPS

Step 5 -- Statement of Stockholders' Equity -- FAMOUS Generates Future Statements








VALUE Page 3


IS BS SSE


FAMOUS uses the estimated future SSE drivers entered by the analyst (SSE INPUT Page 2) to generate estimated future GAAP formatted Statements of Stockholders' Equity.

The result is estimated future GAAP formatted Statements of Stockholders' Equity (SSE INPUT Page 1).

FAMOUS DCF STEPS









VALUE Page 3


IS BS SSE


Analyst, before proceeding to Step 6, should check for errors from Step 4 and Step 5 (Audit Page 1; FAMOUS Internal Consistency -- Financial Statements).

FAMOUS DCF STEPS

Step 6 -- NOPAT -- FAMOUS Generates and Analyst Analyzes Future Statements


Past Future Past Future Past Future Past Future Past Past

IS IS BS BS SSE SSE NOPAT NOPAT IC FCF


Past Future Past Future Past Future Past Future Past Past

IS IS BS BS SSE SSE NOPAT NOPAT IC FCF

Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the estimated future GAAP formatted Income Statements (IS INPUT Page 1) to generate the estimated future NOPAT Statements.

The result is estimated future NOPAT Statements (NOPAT Page 1), which are then used to calculate estimated future NOPAT drivers (NOPAT Page 2).

In Comments file, analyst summarizes and confirms estimated future performance as represented by estimated future NOPAT Statements (NOPAT Page 1) and by estimated future NOPAT drivers (NOPAT Page 2).

FAMOUS DCF STEPS

Step 6 -- Invested Capital -- FAMOUS Generates and Analyst Analyzes Future Statements


Past Future Past Future Past Future Past Future Past Future Past

IS IS BS BS SSE SSE NOPAT NOPAT IC IC FCF


Past Future Past Future Past Future Past Future Past Future Past

IS IS BS BS SSE SSE NOPAT NOPAT IC IC FCF

Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the estimated future GAAP formatted Balance Sheets (BS INPUT Page 1) to generate the estimated future Invested Capital Statements.

The result is estimated future IC Statements (IC Page 1), which are then used to calculate estimated future IC drivers (IC Page 2).

In Comments file, analyst summarizes and confirms estimated future performance as represented by estimated future IC Statements (IC Page 1) and by estimated future IC drivers (IC Page 2).

FAMOUS DCF STEPS

Step 7 -- Free Cash Flow -- FAMOUS Generates and Analyst Analyzes Future Statements


Past Future Past Future Past Future Past Future Past Future Past Future

IS IS BS BS SSE SSE NOPAT NOPAT IC IC FCF FCF




Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


FAMOUS uses the estimated future NOPAT Statements (NOPAT Page 1) and IC Statements (IC Page 1) to calculate the estimated future FCF Statements (FCF Page 1).

The result is estimated future FCF Statements (FCF Page 1), which are then used to calculate estimated future FCF drivers (FCF Page 2).

In Comments file, analyst summarizes and confirms estimated future performance as represented by estimated future FCF Statements (FCF Page 1) and by estimated future FCF drivers (FCF Page 2).

FAMOUS DCF STEPS








Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst, before proceeding to Step 8, should check for errors from Step 6 and Step 7 (Audit Page 1; FAMOUS Internal Consistency -- Financial Statements & ROIC Driver Calculations).).

FAMOUS DCF STEPS

Step 8 -- WACC -- Analyst Enters and Supports Drivers and FAMOUS Generates Past and Future WACC


Past Future Past Future Past Future Past Future Past Future Past Future Past Future

IS IS BS BS SSE SSE NOPAT NOPAT IC IC FCF FCF WACC WACC




Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst enters current and future WACC drivers (WACC INPUT Page 2).

FAMOUS uses the past and future WACC drivers entered by the analyst (WACC INPUT Page 2) to generate past and future WACC (WACC INPUT Page 1).

The result is past and future WACC (WACC INPUT Page 1).

In Comments file, analyst summarizes support for current and future WACC drivers (WACC INPUT Page 1).

FAMOUS DCF STEPS

Step 9 -- Continuing Value -- Analyst Enters and Supports Drivers and FAMOUS Generates Continuing Value







Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers Drivers

VALUE Page 3


IS BS SSE


Analyst enters CV drivers (CV INPUT Page 2).

FAMOUS uses the CV drivers entered by the analyst (CV INPUT Page 2) to generate CV (WACC INPUT Page 1).

The result is estimated Continuing Value (CV INPUT Page 2).

In Comments file, analyst summarizes support for CV drivers (CV INPUT Page 1).

Drivers

Continuing

Value

Continuing

Value

FAMOUS DCF STEPS

Steps 10-15 -- Values -- FAMOUS Generates Five Current and Future DCF Value Measures




Values Values





VALUE Page 3

Past

Market

VA


IS BS SSE


FAMOUS uses the estimated future FCF (FCF Page 1), WACC (WACC INPUT Page 1) and CV (CV INPUT Page 1) to calculate five current and future DCF VALUE measures (VALUE Page 1).

The result is five calculated current and future DCF value measures (VALUE Page 1), which are then used to calculate past and future DCF value drivers (VALUE Page 2 and Page 3).

Past market values (WACC Page 2) are also used to calculate various past market value added (VA) measures (VALUE Page 3).

In Comments file, analyst summarizes and confirms the four past and future DCF value measures (VALUE Page 1) and past and future DCF performance measures (VALUE Page 3 and Page 2).

Drivers

Continuing

Value

Continuing

Value

FAMOUS DCF STEPS

Steps 10-15 -- Completed -- Check Audit




Values Values





VALUE Page 3

Past

Market

VA


IS BS SSE


Analyst, before proceeding to a conclusion, should check for errors from Step 8 thru Step 15 (Audit Page 1; FAMOUS Internal Consistency -- Valuation Calculations).

Drivers

Continuing

Value

Continuing

Value

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