Instructions Submit your financial analysis and planning report. Your report should be a complete, polished artifact

Instructions

Submit your financial analysis and planning report. Your report should be a complete, polished artifact containing all of the sections.

Your financial analysis and planning report should be approximately 15–20 pages long (excluding graphs, tables, references, and appendices) and should include a title page and table of contents. The report should be double-spaced, with one-inch margins and 12-point Times New Roman font, and conform to the most recent APA format and citation style.

To complete this assignment, review the Final Report Rubric document, specially the content in the graph of rubric.

I have uploaded the final rubric and my milestone draft 1-4 and data 1-3. You need follow the rubric to provide a revised and completed final milestone.

Do not only copy the draft and do not make any adjustment, even plagiarism. I will check it by turnitin.

By the way, the following requirement in rubric must be followed:

* The present Financial Condition with analysis.
* Major strengths and weaknesses.
* Identify what you believe should be the major goals and objectives for the next three years.
* Based on the major goals and objectives that you identified present a set of Major Financial projections that you believe Disney will accomplish for years one and three.


Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a financial analysis and planning report.
Sound financial decisions are the foundation of business success. Financial managers, analysts, and consultants must continually adjust to changing market
conditions and make well-informed, strategic choices regarding where and how to best allocate companies’ resources to produce and position products and
increase value. As the final step in your journey toward your Master of Finance degree, your capstone project will highlight the knowledge and skills you have
developed throughout your coursework that allow you to effectively perform these functions.
The capstone will develop a financial analysis and planning report for the executive management team at a large, publicly traded, multinational company where
you will assume that you work. You will examine market conditions, the financial performance of the organization, and its projected growth, and then, based on
your analysis, recommend strategies for risk management and potential investment over a three-year time horizon.
Evaluation of Capstone
In this assignment you will demonstrate your mastery of the following course outcomes:





Analyze and evaluate long-term corporate investment opportunities to increase shareholder value
Implement theories of asset allocation, security analysis, and portfolio diversification to efficiently manage an investment portfolio
Formulate testable hypotheses and conduct statistical tests using financial data to inform strategic corporate decision-making
Evaluate and interpret the effect of macroeconomic events and financial market conditions on the firm’s strategic objectives
Utilize the tools of risk management in corporate management and portfolio management to effectively balance the relationship between risk and return
Prompt
Financial Analysis and Planning Report
For your capstone, you will develop a comprehensive financial analysis and planning report that lays out your firm’s current and projected financial
performance in light of market conditions. Your report should also suggest potential investment opportunities and strategies for managing risk for the
executive management team to discuss in strategic planning.
In order to provide an appropriate context for your analysis and recommendations, you should look at your company’s financial performance over the past three
years. (You may also include historical information prior to this time horizon if relevant. However, keep in mind that the report is not intended as a historical
analysis of the company, but rather as a tool for strategic planning.) You should also project forward at least three years in your modeling and recommendations
for the future.
Remember that you are communicating to the executive leadership team, so your report should be succinct, clear, and well supported throughout by credible
research and evidence, including relevant spreadsheets, charts, and graphs.
Specifically, the following critical elements must be addressed:
I.
Executive Summary: Briefly provide the “bottom line” of your financial analysis and key recommendations to a busy executive audience.
II. Current Financial Status: Analyze the position of the firm and whether the company regressed or improved financially over the past three years. Be sure
to situate your company within the broader economy and its specific industry, particularly with respect to major competitors and industry and market
trends. Your analysis, supported by relevant spreadsheets and graphs, must include, but need not be limited to, the following:
A. Liquidity
B. Efficiency
C. Profitability
D. Market Value
E. Leverage
III. Projections: Based on the company’s financial statements, your analysis, and any additional evidence, project the company’s performance for the next
three years. Are there any areas of concern? Is the company in good financial shape for moving forward? Discuss a best-case, worst-case, and most likely
scenario, including a sustainable growth rate for sales based on existing financial statements and any macroeconomic and financial market conditions
that might impact the firm’s strategic objectives. You must thoroughly address the assumptions behind your predictions, supported by spreadsheet
calculations. At a minimum, your analysis must cover:
A. Weight of equity
B. Weight of debt
C. Cost of debt
D. Cost of equity
E. Tax rate
F. Value of the company’s stock compared to your forecasted value and free cash flow
IV. International Market Analysis: Articulate the company’s position with respect to at least one of the foreign markets in which it operates. Use statistical
regression to predict the exchange rates for the next year. How does the company manage foreign exchange risks, and what, if anything, might it do
differently?
V. Recommendations: Provide high-level, strategic recommendations for your company for the upcoming three years, based on your analysis and
interpretations. Where are there opportunities for growth? What risks does the company face, and how might it mitigate them? Apply relevant
principles of asset allocation and portfolio diversification in making your suggestions, and assess the risks and returns for each individually, as well as the
group of suggestions as a whole. You should also consider how changing market conditions might affect your recommendations and how the
recommendations fit with the company’s investment needs and priorities.
Final Project Rubric
This rubric will be applied to both components as a whole and neither component will be assessed on its own. The “Possible Indicators of Success” are examples
for you and the instructor of the types of concepts to look for to demonstrate proficiency. They are neither exhaustive nor proscriptive and should be used as guides
for illustrating how your capstone embodies the outcome. All outcomes are weighted equally.
Your financial analysis and planning report should be approximately 15–20 pages long (excluding graphs, tables, references, and appendices) and should include
a title page and table of contents. The report should be double-spaced, with one-inch margins and 12-point Times New Roman font, and conform to the most
recent APA format and citation style.
FIN-700-01: Analyze and evaluate long-term corporate investment opportunities to increase shareholder value
Proficient
100%
Not Proficient
0%
Possible Indicators of Success
Does the student demonstrate the ability to apply appropriate financial ratio analysis in evaluating the financial performance of a publicly traded company?
Does the student demonstrate the ability to analyze current and predicted market value ratios of a company and evaluate whether the shareholder’s value is
maximized?
Does the student demonstrate the ability to analyze the company’s cost of capital and its relationship to shareholder value?
Does the student demonstrate the ability to evaluate whether a company is over- or undervalued and how that affects investment opportunities and
shareholder value?
Does the student demonstrate the ability to propose investment options using financial data, graphs, and arguments that are convincing to a business
audience?
Does the student demonstrate the ability to effectively use the cost of capital as a benchmark for making investment decisions?
FIN-700-02: Implement theories of asset allocation, security analysis, and portfolio diversification to efficiently manage an
Proficient
Not Proficient
investment portfolio
100%
0%
Possible Indicators of Success
Does the student demonstrate the ability to recommend specific investment opportunities based on appropriate principles of asset allocation and portfolio
diversification?
Does the student demonstrate the ability to incorporate the sensitivity of investments to changing market conditions in analyzing investment opportunities?
Does the student demonstrate the ability to analyze portfolio decisions specific to operations in different global markets?
Does the student demonstrate the ability to allocate assets according to a company’s strategic investment needs and priorities?
FIN-700-03: Formulate testable hypotheses and conduct statistical tests using financial data to inform strategic corporate
Proficient
Not Proficient
decision-making
100%
0%
Possible Indicators of Success
Does the student demonstrate the ability to project the future value of a publicly traded company based on current financial performance and reasonable
assumptions for informing strategic decisions?
Does the student demonstrate the ability to forecast future cash flows based on current financial data, including how forecasts may change given different
market assumptions and how that impacts company choices?
Does the student demonstrate the ability to test hypotheses regarding future exchange rates using appropriate statistical methods for informing companies’
strategic decisions?
FIN-700-04: Evaluate and interpret the effect of macroeconomic events and financial market conditions on the firm’s
Proficient
Not Proficient
strategic objectives
100%
0%
Possible Indicators of Success
Does the student demonstrate the ability to analyze the market position of the company with respect to the foreign market(s) in which it operates for making
decisions aligned with the firm’s strategic objectives?
Does the student demonstrate the ability to evaluate whether the company is well positioned with respect to industry trends and major competitors?
Does the student demonstrate the ability to analyze external risks and opportunities for growth that can help future corporate decisions?
Does the student demonstrate the ability to evaluate the macroeconomic and market conditions that might impact a company’s strategic objectives?
FIN-700-05: Utilize the tools of risk management in corporate management and portfolio management to effectively
Proficient
Not Proficient
balance the relationship between risk and return
100%
0%
Possible Indicators of Success
Does the student demonstrate the ability to evaluate the foreign exchange risk management strategies of a publicly traded company?
Does the student demonstrate the ability to appropriately mitigate risk through portfolio diversification?
Does the student demonstrate the ability to recommend other risk management strategies to the executive management team that balance risk and return?
Does the student demonstrate the ability to balance acceptable risk and needed returns for generating capital over designated time frames?
The Walt Disney Company
Cash and cash equivalents
Short term investments
Net receivables
Current assets
Inventory
Other current assets
Total current assets
Long term investments
Property Plant and Equipment
Goodwill
Non current
Intangible assets
assets
Other assets
Deferred long term asset charges
Total assets
Accounts payable
Current
Short/current long term debt
liabilities
Other current liabilities
Total current liabilities
Long term debt
Other liabilities
Non current
Deferred long term liability charges
liabilities
Minority interest
Total liabilities
Common stock
Retained earnings
Stockholders’
Treasury stock
equity
Other stockholder equity
Total stockholder equity
Net tangible assets
#
2018
2017
4.150.000.000 $ 4.017.000.000
9.334.000.000 $ 8.633.000.000
2.706.000.000 $ 2.651.000.000
159.000.000 $
143.000.000
16.825.000.000 $ 15.889.000.000
2.899.000.000 $ 3.202.000.000
29.540.000.000 $ 28.406.000.000
31.269.000.000 $ 31.426.000.000
6.812.000.000 $ 6.995.000.000
11.253.000.000 $ 9.871.000.000
98.598.000.000 $ 95.789.000.000
6.503.000.000 $ 6.305.000.000
2.785.000.000 $ 3.400.000.000
5.378.000.000 $ 5.299.000.000
17.860.000.000 $ 19.595.000.000
17.084.000.000 $ 19.119.000.000
9.699.000.000 $ 10.923.000.000
5.182.000.000 $ 4.837.000.000
44.643.000.000 $ 49.637.000.000
36.779.000.000
36.248.000.000
$ 82.679.000.000 $ 72.606.000.000
$ (70.685.000.000) $ (67.539.000.000)
$ (3.097.000.000) $ (3.528.000.000)
$ 48.773.000.000 $ 41.315.000.000
$ 10.692.000.000 $ 2.894.000.000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Schlumberger-Private
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2016
4.610.000.000
9.065.000.000
2.598.000.000
244.000.000
16.966.000.000
4.258.000.000
27.349.000.000
27.810.000.000
6.949.000.000
8.701.000.000
92.033.000.000
6.860.000.000
2.166.000.000
4.548.000.000
16.842.000.000
16.483.000.000
11.385.000.000
4.058.000.000
44.710.000.000
35.859.000.000
$ 66.088.000.000
$ (58.682.000.000)
$ (3.979.000.000)
$ 43.265.000.000
$ 8.506.000.000
#
Schlumberger-Private
The Walt Disney Company
Total revenue
Revenue
Cost of revenue
Gross profit
Reseach and Development
Selling General and Administrative
Operating expenses Others
Total operating expenses
Operating income or loss
Total other income/expenses net
Earnings before interest and taxes
Income from
Interest expense
continuing
Income before tax
operations
Income tax expense
Minority interest
Net income from continuing operations
Net income
Net income
Net income applicable to common shares
#
2018
$ 59.434.000.000
$ 32.726.000.000
$ 26.708.000.000
$ 8.860.000.000
$ 44.597.000.000
$ 14.837.000.000
$ (108.000.000)
$ 14.837.000.000
$ (682.000.000)
$ 14.729.000.000
$ 1.663.000.000
$ 5.182.000.000
$ 13.066.000.000
$ 12.598.000.000
$ 12.598.000.000
Schlumberger-Private
2017
$ 55.137.000.000
$ 30.191.000.000
$ 24.946.000.000
$ 8.176.000.000
$ 41.149.000.000
$ 13.988.000.000
$ (200.000.000)
$ 13.988.000.000
$ (507.000.000)
$ 13.788.000.000
$ 4.422.000.000
$ 4.837.000.000
$ 9.366.000.000
$ 8.980.000.000
$ 8.980.000.000
2016
$ 55.632.000.000
$ 29.864.000.000
$ 25.768.000.000
$ 8.754.000.000
$ 41.145.000.000
$ 14.487.000.000
$ 381.000.000
$ 14.487.000.000
$ (354.000.000)
$ 14.868.000.000
$ 5.078.000.000
$ 4.058.000.000
$ 9.790.000.000
$ 9.391.000.000
$ 9.391.000.000
#
Schlumberger-Private
The Walt Disney Company
Net income
Operating activities,
cash flows provided
by or used in
Investment
activities, cash
flows provided by
or used in
Financing activities,
cash flows provided
by or used in
Net income
Depreciation
Adjustments to net income
Changes in account receivables
Changes in liabilities
Changes in inventories
Changes in other operating activities
Total cash flow from operating activities
Capital expenditures
Investments
Other cash flows from investing activities
Total cash flows from investing activities
Dividends paid
Net borrowings
Other cash flows from financing activities
Total cash flows from financing activities
Effect of exchange rate changes
Change in cash and cash equivalents
2018
$ 12.598.000.000
$ 3.011.000.000
$ (477.000.000)
$ (720.000.000)
$ 235.000.000
$
(17.000.000)
$ (927.000.000)
$ 14.295.000.000
$ (4.465.000.000)
$ 710.000.000
$ (5.336.000.000)
$ (2.515.000.000)
$ (2.583.000.000)
$ (378.000.000)
$ (8.843.000.000)
$
(25.000.000)
$
91.000.000
2017
$ 8.080.000.000
$ 2.782.000.000
$ 691.000.000
$ 107.000.000
$ (368.000.000)
$
(5.000.000)
$
(52.000.000)
$ 12.343.000.000
$ (3.623.000.000)
$
(71.000.000)
$ (4.111.000.000)
$ (2.445.000.000)
$ 3.703.000.000
$ (1.125.000.000)
$ (8.959.000.000)
$
31.000.000
$ (696.000.000)
2016
$ 9.391.000.000
$ 2.527.000.000
$ 2.426.000.000
$ (393.000.000)
$
40.000.000
$ 186.000.000
$ (443.000.000)
$ 13.136.000.000
$ (4.773.000.000)
$ (850.000.000)
$ (135.000.000)
$ (5.758.000.000)
$ (2.313.000.000)
$ 2.940.000.000
$ (607.000.000)
$ (7.220.000.000)
$ (123.000.000)
$
35.000.000
The Walt Disney Company
2018
Stock price on September 30 (end of fiscal year)
Earnings per share
Outstanding shares
Sales per share
Market capitalization value at year end
Book value per share
$
$
$
$
$
113,95
8,36
1.490.000.000
39.888,59
169.785.500.000
32.733,56
2017
$
$
$
$
$
95,51
5,73
1.568.000.000
35.163,90
149.759.680.000
26.348,85
2016
$
$
$
$
$
89,16
5,76
1.629.000.000
34.151,01
145.241.640.000
26.559,24
Financial ratio
Current Ratio
Quick Ratio
Inventory Turnover
Days Sales in Inventory
Receivables Turnover
Payables Turnover
Efficiency
Days Sales in Receivables
Days Sales in Payables
Total Asset Turnover
Capital Intensity
Profit margin
Profitability
Retun on Assets
Return on Equity
Price-earnings ratio
Market value ratios Price-sales ratio
Market to book ratio
Total Debt Ratio
Debt to Equity Ratio
Leverage
Equity Multiplier
Times Interest Earned Ratio
Liquidity
#
2016
2017
1,007
0,853
11,495
31,753
6,137
4,353
59,475
83,843
0,604
1,654
0,169
0,102
0,217
15,479
0,003
0,003
0,530
0,431
2,127
40,924
0,811
0,676
11,389
32,050
6,387
4,788
57,149
76,226
0,576
1,737
0,163
0,094
0,217
16,668
0,003
0,004
0,569
0,545
2,319
27,590
Schlumberger-Private
2018
0,942
0,791
12,094
30,181
6,367
5,032
57,323
72,529
0,603
1,659
0,212
0,128
0,258
13,630
0,003
0,003
0,505
0,407
2,022
21,755
Trend
% change 2016 to
2018
-6,48%
-7,33%
5,21%
-4,95%
3,76%
15,60%
-3,62%
-13,49%
-0,28%
0,28%
25,57%
25,22%
19,00%
-11,94%
9,42%
3,70%
-4,64%
-5,49%
-4,97%
-46,84%
#
% change 2017
to 2018
16,18%
17,02%
6,19%
-5,83%
-0,30%
5,10%
0,30%
-4,85%
4,72%
-4,51%
30,15%
36,29%
18,84%
-18,23%
5,18%
-3,96%
-11,14%
-25,26%
-12,81%
-21,15%
Schlumberger-Private
Financial ratio
Current Ratio
Quick Ratio
Inventory Turnover
Days Sales in Inventory
Receivables Turnover
Payables Turnover
Efficiency
Days Sales in Receivables
Days Sales in Payables
Total Asset Turnover
Capital Intensity
Profit margin
Profitability Retun on Assets
Return on Equity
Price-earnings ratio
Market
Price-sales ratio
value ratios
Market to book ratio
Total Debt Ratio
Debt to Equity Ratio
Leverage
Equity Multiplier
Times Interest Earned Ratio
Liquidity
Walt Disney
Company
0,811
0,676
11,389
32,050
6,387
4,788
57,149
76,226
0,576
1,737
0,163
0,094
0,217
16,668
0,003
0,004
0,569
0,545
2,319
27,590
Industry
average
2,330
2,000
16,890
51,850
8,100
64,840
75,000
0,430
-0,149
-0,972
0,785
5,620
2,940

Industry average taken as the average from 16 companies operating in the same industry as
the Walt Disney company. The financial ratios for the industry average were retrieved from
Plunkett et al. (2018).
Yahoo Finance. (2018, December 25). The Walt Disney Company. Retrieved December 26, 2018, from https://financ
018, from https://finance.yahoo.com/quote/DIS?p=DIS
The Walt Disney Company
Cash and cash equivalents
Short term investments
Net receivables
Current assets
Inventory
Other current assets
Total current assets
Long term investments
Property Plant and Equipment
Goodwill
Non current
Intangible assets
assets
Other assets
Deferred long term asset charges
Total assets
Accounts payable
Current
Short/current long term debt
liabilities
Other current liabilities
Total current liabilities
Long term debt
Other liabilities
Non current
Deferred long term liability charges
liabilities
Minority interest
Total liabilities
Common stock
Retained earnings
Stockholders’
Treasury stock
equity
Other stockholder equity
Total stockholder equity
Net tangible assets
#
2018
2017
4,150,000,000 $ 4,017,000,000
9,334,000,000 $ 8,633,000,000
2,706,000,000 $ 2,651,000,000
159,000,000 $
143,000,000
16,825,000,000 $ 15,889,000,000
2,899,000,000 $ 3,202,000,000
29,540,000,000 $ 28,406,000,000
31,269,000,000 $ 31,426,000,000
6,812,000,000 $ 6,995,000,000
11,253,000,000 $ 9,871,000,000
98,598,000,000 $ 95,789,000,000
6,503,000,000 $ 6,305,000,000
2,785,000,000 $ 3,400,000,000
5,378,000,000 $ 5,299,000,000
17,860,000,000 $ 19,595,000,000
17,084,000,000 $ 19,119,000,000
9,699,000,000 $ 10,923,000,000
5,182,000,000 $ 4,837,000,000
44,643,000,000 $ 49,637,000,000
36,779,000,000
36,248,000,000
$ 82,679,000,000 $ 72,606,000,000
$ (70,685,000,000) $ (67,539,000,000)
$ (3,097,000,000) $ (3,528,000,000)
$ 48,773,000,000 $ 41,315,000,000
$ 10,692,000,000 $ 2,894,000,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Schlumberger-Private
ny
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2016
4,610,000,000
Trend (2016-2018)
-9.98%
9,065,000,000
2,598,000,000
244,000,000
16,966,000,000
4,258,000,000
27,349,000,000
27,810,000,000
6,949,000,000
8,701,000,000
2.97%
4.16%
-34.84%
-0.83%
-31.92%
8.01%
12.44%
-1.97%
29.33%
92,033,000,000
6,860,000,000
2,166,000,000
4,548,000,000
16,842,000,000
16,483,000,000
11,385,000,000
7.13%
-5.20%
28.58%
18.25%
6.04%
3.65%
-14.81%
4,058,000,000
44,710,000,000
35,859,000,000
$ 66,088,000,000
$ (58,682,000,000)
$ (3,979,000,000)
$ 43,265,000,000
$ 8,506,000,000
27.70%
-0.15%
2.57%
25.10%
20.45%
-22.17%
12.73%
25.70%
#
Schlumberger-Private
Income statement
Total revenue
Revenue
Cost of revenue
Gross profit
Reseach and Development
Selling General and Administrative
Operating expenses Others
Total operating expenses
Operating income or loss
Total other income/expenses net
Earnings before interest and taxes
Income from
Interest expense
continuing
Income before tax
operations
Income tax expense
Minority interest
Net income from continuing operations
Net income
Net income
Net income applicable to common shares
2018
$ 59,434,000,000
$ 32,726,000,000
$ 26,708,000,000
$ 8,860,000,000
$ 44,597,000,000
$ 14,837,000,000
$ (108,000,000)
$ 14,837,000,000
$ (682,000,000)
$ 14,729,000,000
$ 1,663,000,000
$ 5,182,000,000
$ 13,066,000,000
$ 12,598,000,000
$ 12,598,000,000
2017
$ 55,137,000,000
$ 30,191,000,000
$ 24,946,000,000
$ 8,176,000,000
$ 41,149,000,000
$ 13,988,000,000
$ (200,000,000)
$ 13,988,000,000
$ (507,000,000)
$ 13,788,000,000
$ 4,422,000,000
$ 4,837,000,000
$ 9,366,000,000
$ 8,980,000,000
$ 8,980,000,000
11.29%
32.07%
Tax rate paid by the company
#
Schlumberger-Private
2016
Trend (2016-2018) Increase 2016-2017 Increase 2017-2018
$ 55,632,000,000
6.83%
-0.89%
7.79%
$ 29,864,000,000
9.58%
1.09%
8.40%
$ 25,768,000,000
3.65%
-3.19%
7.06%
$ 8,754,000,000
1.21%
-6.60%
8.37%
$ 41,145,000,000
8.39%
0.01%
8.38%
$ 14,487,000,000
2.42%
-3.44%
6.07%
$ 381,000,000
-128.35%
-152.49% -46.00%
$ 14,487,000,000
2.42%
-3.44%
6.07%
$ (354,000,000)
92.66%
43.22%
34.52%
$ 14,868,000,000
-0.93%
-7.26%
6.82%
$ 5,078,000,000
-67.25%
-12.92% -62.39%
$ 4,058,000,000
27.70%
19.20%
7.13%
$ 9,790,000,000
33.46%
-4.33%
39.50%
$ 9,391,000,000
34.15%
-4.38%
40.29%
$ 9,391,000,000
34.15%
-4.38%
40.29%
34.15%
#
Schlumberger-Private
The Walt Disney Company
Net income
Operating activities,
cash flows provided
by or used in
Investment
activities, cash
flows provided by
or used in
Financing activities,
cash flows provided
by or used in
Net income
Depreciation
Adjustments to net income
Changes in account receivables
Changes in liabilities
Changes in inventories
Changes in other operating activities
Total cash flow from operating activities
Capital expenditures
Investments
Other cash flows from investing activities
Total cash flows from investing activities
Dividends paid
Net borrowings
Other cash flows from financing activities
Total cash flows from financing activities
Effect of exchange rate changes
Change in cash and cash equivalents
2018
$ 12,598,000,000
$ 3,011,000,000
$ (477,000,000)
$ (720,000,000)
$ 235,000,000
$
(17,000,000)
$ (927,000,000)
$ 14,295,000,000
$ (4,465,000,000)
$ 710,000,000
$ (5,336,000,000)
$ (2,515,000,000)
$ (2,583,000,000)
$ (378,000,000)
$ (8,843,000,000)
$
(25,000,000)
$
91,000,000
2017
$ 8,080,000,000
$ 2,782,000,000
$ 691,000,000
$ 107,000,000
$ (368,000,000)
$
(5,000,000)
$
(52,000,000)
$ 12,343,000,000
$ (3,623,000,000)
$
(71,000,000)
$ (4,111,000,000)
$ (2,445,000,000)
$ 3,703,000,000
$ (1,125,000,000)
$ (8,959,000,000)
$
31,000,000
$ (696,000,000)
2016
Trend (2016-2018)
$ 9,391,000,000
34.15%
$ 2,527,000,000
19.15%
$ 2,426,000,000
-119.66%
$ (393,000,000)
83.21%
$
40,000,000
487.50%
$ 186,000,000
-109.14%
$ (443,000,000)
109.26%
$ 13,136,000,000
8.82%
$ (4,773,000,000)
-6.45%
$ (850,000,000)
$ (135,000,000)
-625.93%
$ (5,758,000,000)
-7.33%
$ (2,313,000,000)
8.73%
$ 2,940,000,000
-187.86%
$ (607,000,000)
-37.73%
$ (7,220,000,000)
22.48%
$ (123,000,000)
-79.67%
$
35,000,000
160.00%
The Walt Disney Company
2018
Stock price on September 30 (end of fiscal year)
Earnings per share
Outstanding shares
Sales per share
Market capitalization value at year end
Book value per share
$
$
$
$
$
113.95
8.36
1,490,000,000
39,888.59
169,785,500,000
32.73
2017
$
$
$
$
$
95.51
5.73
1,568,000,000
35,163.90
149,759,680,000
26.35
2016
$
$
$
$
$
89.16
5.76
1,629,000,000
34,151.01
145,241,640,000
26.56
Most likely scenario
Total revenue
Cost of revenue
Gross profit
Reseach and Development
Selling General and Administrative
Operating expenses Others
Total operating expenses
Operating income or loss
Total other income/expenses net
Earnings before interest and taxes
Interest expense
Income from
Income before tax
continuing
Tax rate (%)
operations
Income tax expense
Minority interest
Net income from continuing operations
Net income
Net income
Net income applicable to common shares
Revenue
2018
$ 59,434,000,000
$ 32,726,000,000
$ 26,708,000,000
$ 8,860,000,000
$ 44,597,000,000
$ 14,837,000,000
$ (108,000,000)
$ 14,837,000,000
$ (682,000,000)
$ 14,729,000,000
$ 1,663,000,000
$ 5,182,000,000
$ 13,066,000,000
$ 12,598,000,000
$ 12,598,000,000
2019
$ 61,466,642,800
$ 34,293,575,400
$ 27,173,067,400
$ 8,914,046,000
$ 43,207,621,400
$ 18,259,021,400
$ (108,000,000)
$ 18,259,021,400
$ (682,000,000)
$ 18,367,021,400
25.84%
$ 4,746,038,330
$ 5,182,000,000
$ 13,620,983,070
$ 13,620,983,070
$ 13,620,983,070
Best case scenario
Total revenue
Revenue
Cost of revenue
Gross profit
Reseach and Development
Selling General and Administrative
Operating expenses Others
Total operating expenses
Operating income or loss
Total other income/expenses net
Earnings before interest and taxes
Interest expense
Income from
Income before tax
continuing
Tax rate (%)
operations
Income tax expense
Minority interest
Net income from continuing operations
Net income
Net income
Net income applicable to common shares
2018
$ 59,434,000,000
$ 32,726,000,000
$ 26,708,000,000
$ 8,860,000,000
$ 44,597,000,000
$ 14,837,000,000
$ (108,000,000)
$ 14,837,000,000
$ (682,000,000)
$ 14,729,000,000
$ 1,663,000,000
$ 5,182,000,000
$ 13,066,000,000
$ 12,598,000,000
$ 12,598,000,000
Worst case scenario
2019
$ 64,063,908,600
$ 33,082,713,400
$ 30,981,195,200
$ 8,275,240,000
$ 41,357,953,400
$ 22,705,955,200
$ (108,000,000)
$ 22,705,955,200
$ (682,000,000)
$ 22,813,955,200
11.29%
$ 2,575,695,542
$ 5,182,000,000
$ 20,238,259,658
$ 20,238,259,658
$ 20,238,259,658
Total revenue
Cost of revenue
Gross profit
Reseach and Development
Selling General and Administrative
Operating expenses Others
Total operating expenses
Operating income or loss
Total other income/expenses net
Earnings before interest and taxes
Interest expense
Income from
Income before tax
continuing
Tax rate (%)
operations
Income tax expense
Minority interest
Net income from continuing operations
Net income
Net income
Net income applicable to common shares
Revenue
2018
$ 59,434,000,000
$ 32,726,000,000
$ 26,708,000,000
$ 8,860,000,000
$ 44,597,000,000
$ 14,837,000,000
$ (108,000,000)
$ 14,837,000,000
$ (682,000,000)
$ 14,729,000,000
$ 1,663,000,000
$ 5,182,000,000
$ 13,066,000,000
$ 12,598,000,000
$ 12,598,000,000
2019
$ 58,905,037,400
$ 35,474,984,000
$ 23,430,053,400
$ 9,601,582,000
$ 45,076,566,000
$ 13,828,471,400
$ (108,000,000)
$ 13,828,471,400
$ (682,000,000)
$ 13,936,471,400
34.15%
$ 4,759,304,983
$ 5,182,000,000
$ 9,177,166,417
$ 9,177,166,417
$ 9,177,166,417
2020
$ 63,568,801,984
$ 35,936,237,662
$ 27,632,564,322
$ 8,968,421,681
$ 44,904,659,342
$ 18,664,142,642
$ (108,000,000)
$ 18,664,142,642
$ (682,000,000)
$ 18,772,142,642
25.84%
$ 4,850,721,659
$ 5,182,000,000
$ 13,921,420,983
$ 13,921,420,983
$ 13,921,420,983
2021
$ 65,742,855,012
$ 37,657,583,446
$ 28,085,271,566
$ 9,023,129,053
$ 46,680,712,499
$ 19,062,142,513
$ (108,000,000)
$ 19,062,142,513
$ (682,000,000)
$ 19,170,142,513
25.84%
$ 4,953,564,825
$ 5,182,000,000
$ 14,216,577,688
$ 14,216,577,688
$ 14,216,577,688
2020
$ 69,054,487,080
$ 33,443,314,976
$ 35,611,172,104
$ 7,729,074,160
$ 41,172,389,136
$ 27,882,097,944
$ (108,000,000)
$ 27,882,097,944
$ (682,000,000)
$ 27,990,097,944
11.29%
$ 3,160,082,058
$ 5,182,000,000
$ 24,830,015,886
$ 24,830,015,886
$ 24,830,015,886
2021
$ 74,433,831,623
$ 33,807,847,109
$ 40,625,984,514
$ 7,218,955,265
$ 41,026,802,375
$ 33,407,029,249
$ (108,000,000)
$ 33,407,029,249
$ (682,000,000)
$ 33,515,029,249
11.29%
$ 3,783,846,802
$ 5,182,000,000
$ 29,731,182,447
$ 29,731,182,447
$ 29,731,182,447
2020
$ 58,380,782,567
$ 38,454,882,656
$ 19,925,899,911
$ 10,405,234,413
$ 48,860,117,069
$ 9,520,665,498
$ (108,000,000)
$ 9,520,665,498
$ (682,000,000)
$ 9,628,665,498
34.15%
$ 3,288,189,267
$ 5,182,000,000
$ 6,340,476,230
$ 6,340,476,230
$ 6,340,476,230
2021
$ 57,861,193,602
$ 41,685,092,799
$ 16,176,100,803
$ 11,276,152,534
$ 52,961,245,333
$ 4,899,948,269
$ (108,000,000)
$ 4,899,948,269
$ (682,000,000)
$ 5,007,948,269
34.15%
$ 1,710,214,334
$ 5,182,000,000
$ 3,297,733,935
$ 3,297,733,935
$ 3,297,733,935
Assumptions
Annual increase in sales
Annual increase in cost of goods sold
Annual increase in selling, general and administrative expenses
Tax rate
3.42%
4.79%
0.61%
25.84%
Assumptions
Annual increase in sales
Annual increase in cost of goods sold
Annual increase in selling, general and administrative expenses
Tax rate
7.79%
1.09%
-6.60%
11.29%
Assumptions
Annual increase in sales
Annual increase in cost of goods sold
Annual increase in selling, general and administrative expenses
Tax rate
-0.89%
8.40%
8.37%
34.15%
WACC estimation
Market value of equity
Share price (Sep 30, 2018)
Number of shares
Market value of equity
$
Market value of debt
Two year average current long term debt
Two year average noncurrent long term debt
Market value of debt
$
113.95
1,490,000,000
169,785,500,000
$
$
$
3,092,500,000
18,101,500,000
21,194,000,000
Weight of equity
Weight of debt
88.90%
11.10%
Cost of equity
Risk free rate
Beta
Market premium
Cost of equity
2.71%
0.81
6%
7.572%
Cost of debt
Interest expense
Market value of debt
Cost of debt
$
$
682,000,000
21,194,000,000
3.218%
$
$
1,663,000,000
14,729,000,000
11.291%
Tax rate
Tax expense
Taxable income
Tax rate
WACC
Year
2018
2019
2020
2021
7.048%
Forecasted net income
$
$
$
$
Rate
NPV
Equity
Number of shares
Discount factor
12,598,000,000
13,620,983,070
13,921,420,983
14,216,577,688
PV
1
0.93415617
0.87264775
0.815189279
12598000000
12724125374
12148496693
11589201721
7.05%
$
$
49,059,823,788
27,865,823,788
1,490,000,000
Price per share
$
18.70
USD/Yuan
7,1
7
6,9
6,8
USD/CYN
Date
Month
USD/Yuan
2/1/2018
1,00
6,2882
3/1/2018
2,00
6,3309
4/1/2018
3,00
6,2822
5/1/2018
4,00
6,3321
6/1/2018
5,00
6,4093
7/1/2018
6,00
6,6243
8/1/2018
7,00
6,8117
9/1/2018
8,00
6,8346
10/1/2018
9,00
6,8679
11/1/2018
10,00
6,9747
12/1/2018
11,00
6,958
1/1/2019
12,00
6,8776
24,00
7,92
6,7
6,6
6,5
6,4
6,3
6,2
6,1

2
4
6
Month
USD/Yuan
y = 0,0738x + 6,1527
8
Month
10
12

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