1. Technology & Media Companies
Wednesday, February 08, 2012
Richard Chan
*EDUCATIONAL USE ONLY!

2. Capital Management Overview
Finance Strategically Establish
Communicate
determine right Corporate
Planning Plan Formally
mix Targets
Business Ensure Assets
Plan Technical Think Financial
Idea Generation are Tactically
Units Requirements Value
Deployed
Finance Support Review Ensure Accurate
Provide Strong
Business Financial Financial
Capital Oversight
Partners Impacts Reporting
Staged Review Sponsorship Ensure
Strategic Fit of from Begin to Substantial
Gatekeepers Projects End Value is Created

3. Gatekeepers/Level of Effort
Network
Legal
IT
Project
Leader
(Prod Mgr)
Finance
Device
Marketing

4. Effective Capital Processes
Plan High Set Communicate
Finance
Level Yearly to Business
Planning Capital Targets Units
2
Sponsor/Budget
Determine Business
Business Units Idea Y Proceed with
Feasibility OK? Unit
Generation plan requests
& Scope Review
N
Recycle
Idea
Finance
Consolidate FY 1
Finance Review
Capital
Capital Prelim. List
requirements
Staged
Gatekeepers

5. Effective Capital Processes (Continued)
Finance
Planning
Business Units 2
Push to Recycle /
Business Unit Kill
N
Prepare Review Y Consolidate/ 3
Finance 1 Initial Financial Complete? Coordinate
Capital List document Presentation
N
Staged Review Y
Gatekeepers Capital Approve?
requirements

6. Effective Capital Processes (Continued)
Finance
Planning
Denied/
Hold 4
Business Units N Y
Requisitioner
Workflows Y PO
creates PO
Approval Approved? Generated Modification?
against
Authority via Sourcing
budgets
N
Provide Monthly
Establish Implement Support
Finance 3 Review Reporting,
Project Sound Future Plan/
Capital Data Analysis, Forecast
Funds/PS Policies Target Setting
Staged
Gatekeepers

7. Effective Capital Processes (Continued)
Finance
Planning
Business Units Receive 3-Way
4 Post to Paid, ‘Credit
Goods/ Match
Cash’ out the door
Services Process
Finance
Capital
Staged
Gatekeepers

8. Why does it matter?
 Capital Management is a function that provides
continuous transparency in product development Higher Value
Projects
and capital deployment to optimize resource Transparency
allocation through clear prioritization
 Some Key Objectives: Risk Based
Decisions
 Transparency to the Whole
 Holistic, risk-managed investment decisions
 Optimization for improved ROI
 Higher value product and capital implemented
 Objective and timely Approve/Recycle/Kill Decisions
Improved ROI
Ultimately you want to ensure value is added to a
business!

9. MODEL

10. SWOT Summary - Google
 Strengths include:
 Economies of scale, brand name, innovation, business structure, strong management,
innovative, unique product, advanced technology, loyalty, adwords, adsense, and
navigation.
 Weakness include:
 Poor corporate investments, search engine reliant, data center costs, weak social
media, YouTube profitability, and not quick to market.
 Opportunities:
 Acquisitions for growth, regulation in China/Emerging markets, new products, global
internet, wireless technology, and web media.
 Threats:
 Search engine substitutes, anti-trust laws, online security, technology margins,
Microsoft, and browser standard changes.

11. Model Summary - Google
 Assumes Risk Free Rate of 2.00% via Treasury 10-yr
bonds
 Assumes weighted cost of debt borrowings at 7.1%
 Assumes Equity Risk premium of 7.5%
 Model only as fluid as timing on daily share price
 Overall ROIC is roughly 21.7% and 19.3% in
2010/2011 vs. industry WACC of 9.3%
 $911.56 per share based on DCF estimates

12. Financial Ratios - Google
2007-12 2008-12 2009-12 2010-12 2011-12
Current Ratio 8.49 8.77 10.62 4.16 5.92
Acid Test/Quick Ratio 8.05 8.03 10.07 3.92 5.62
Liquidity
Receiveables Turnover 7.67 9.07 8.13 7.89 7.83
Average Collection Period 47.6 40.2 44.9 46.2 46.6
Inventory Turnover - - - - -
Days in Inventory - - - - -
Profit Margin 25.3% 19.4% 27.6% 29.0% 25.7%
Asset Turnover 65.5% 76.3% 65.5% 59.6% 58.1%
Profitability
Return on Assets 16.6% 14.8% 18.0% 17.3% 14.9%
Return on Equity 18.5% 16.6% 20.3% 20.7% 18.7%
Earnings per share ($) $ 13.53 $ 13.46 $ 20.62 $ 26.69 $ 30.17
Price Earnings Ratio 44.85 45.08 29.43 22.73 20.11
Payout Ratio - - - - -
Debt to Assets 10.4% 11.1% 11.1% 20.1% 19.9%
Solvency
Interest Coverage Ratio - - - - -
Free Cash Flow ($MM) $ 3,372 $ 5,495 $ 8,506 $ 7,063 $ 11,127
*SEC 10K filings / Annual Reports

13. Google - Share Price
675
625
575
525
475 GOOG
425
375
325
275
1/2/2009 4/2/2009 7/2/2009 10/2/2009 1/2/2010 4/2/2010 7/2/2010 10/2/2010 1/2/2011 4/2/2011 7/2/2011 10/2/2011 1/2/2012
Working with Intel/Sony on TV YouTube defeats Viacom Larry Page becomes CEO
Stops censoring web searches (China) ITA Software Acquisition Acquisition of beatthatquote
Nintendo/Google to jointly develop web-game Yahoo Japan switches search Working on Mobile payments
Acquisition of Slide Verifone/Sprint partners mobile pay
Acquisition of Jambool Google labs winds down
DTV and Google Ad sale partnership Acquisition of Zagat
Acquisition of Like.com Visa/Google partnership
Acquisition of Angstro Acquires Motorola Mobility

14. 09-10’ Google EPS Walk
$14.02
($3.89) $0.86 $0.10 $26.69
$0.32
$20.62 ($5.33)
$6.5B $8.5B
2009
2010
Revenue
Depreciation
COGS
SG&A
Corp/Tax/BTL
Interest Net
*SEC 10K filings / Annual Reports

15. Google - Discounted Cash Flow Analysis
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 10,605 $ 16,594 $ 21,796 $ 23,651 $ 29,321 $ 37,905 $ 45,486 $ 52,309 $ 57,540 $ 60,417 $ 63,438 $ 66,610 $ 69,940 $ 73,437 $ 77,109
% growth rate n/a 56.5% 31.3% 8.5% 24.0% 29.3% 20.0% 15.0% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
- COGS $ 4,225 $ 6,649 $ 8,622 $ 8,844 $ 10,417 $ 13,188 $ 15,826 $ 18,199 $ 20,019 $ 21,020 $ 22,071 $ 23,175 $ 24,334 $ 25,550 $ 26,828
% of revenue 39.8% 40.1% 39.6% 37.4% 35.5% 34.8% 34.8% 34.8% 34.8% 34.8% 34.8% 34.8% 34.8% 34.8% 34.8%
Gross Profit $ 6,380 $ 9,945 $ 13,174 $ 14,806 $ 18,904 $ 24,717 $ 29,660 $ 34,109 $ 37,520 $ 39,396 $ 41,366 $ 43,435 $ 45,606 $ 47,887 $ 50,281
% of revenue 60.2% 59.9% 60.4% 62.6% 64.5% 65.2% 65.2% 65.2% 65.2% 65.2% 65.2% 65.2% 65.2% 65.2% 65.2%
- Operating Exp $ 3,104 $ 5,134 $ 6,816 $ 6,768 $ 8,523 $ 12,475 $ 13,803 $ 15,873 $ 17,461 $ 18,334 $ 19,250 $ 20,213 $ 21,224 $ 22,285 $ 23,399
% of revenue 29.3% 30.9% 31.3% 28.6% 29.1% 32.9% 30.3% 30.3% 30.3% 30.3% 30.3% 30.3% 30.3% 30.3% 30.3%
- SG&A (Op Ex) $ 2,532 $ 4,167 $ 5,316 $ 5,244 $ 7,127 $ 10,624 $ 11,364 $ 12,818 $ 13,824 $ 14,226 $ 14,634 $ 15,047 $ 15,464 $ 15,886 $ 16,405
% of revenue 23.9% 25.1% 24.4% 22.2% 24.3% 28.0% 25.0% 24.5% 24.0% 23.5% 23.1% 22.6% 22.1% 21.6% 21.3%
EBITDA $ 3,848 $ 5,778 $ 7,858 $ 9,563 $ 11,777 $ 14,093 $ 18,296 $ 21,291 $ 23,696 $ 25,170 $ 26,732 $ 28,388 $ 30,142 $ 32,001 $ 33,876
% of revenue 36.3% 34.8% 36.1% 40.4% 40.2% 37.2% 40.2% 40.7% 41.2% 41.7% 42.1% 42.6% 43.1% 43.6% 43.9%
- D & A (Op Ex) $ 572 $ 968 $ 1,500 $ 1,524 $ 1,396 $ 1,851 $ 2,439 $ 3,055 $ 3,636 $ 4,107 $ 4,616 $ 5,166 $ 5,759 $ 6,399 $ 6,994
% of revenue 5.4% 5.8% 6.9% 6.4% 4.8% 4.9% 5.4% 5.8% 6.3% 6.8% 7.3% 7.8% 8.2% 8.7% 9.1%
EBIT (oper profits) $ 3,276 $ 4,811 $ 6,358 $ 8,038 $ 10,381 $ 12,242 $ 15,857 $ 18,236 $ 20,060 $ 21,063 $ 22,116 $ 23,222 $ 24,383 $ 25,602 $ 26,882
% of revenue 30.9% 29.0% 29.2% 34.0% 35.4% 32.3% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9% 34.9%
- Taxes $ 934 $ 1,470 $ 1,627 $ 1,861 $ 2,291 $ 2,589 $ 3,991 $ 4,590 $ 5,049 $ 5,301 $ 5,566 $ 5,844 $ 6,137 $ 6,443 $ 6,766
% of EBIT 28.5% 30.6% 25.6% 23.1% 22.1% 21.1% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2% 25.2%
NOPAT $ 2,343 $ 3,340 $ 4,732 $ 6,178 $ 8,090 $ 9,653 $ 11,866 $ 13,646 $ 15,011 $ 15,762 $ 16,550 $ 17,377 $ 18,246 $ 19,158 $ 20,116
% of revenue 22.1% 20.1% 21.7% 26.1% 27.6% 25.5% 26.1% 26.1% 26.1% 26.1% 26.1% 26.1% 26.1% 26.1% 26.1%
*SEC 10K filings / Annual Reports/Estimates

16. Google - Free Cash Flow to the Firm
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 572 $ 968 $ 1,500 $ 1,524 $ 1,396 $ 1,851 $ 2,439 $ 3,055 $ 3,636 $ 4,107 $ 4,616 $ 5,166 $ 5,759 $ 6,399 $ 6,994
% of revenue 5.4% 5.8% 6.9% 6.4% 4.8% 4.9% 5.4% 5.8% 6.3% 6.8% 7.3% 7.8% 8.2% 8.7% 9.1%
- CapEx $ 1,903 $ 2,403 $ 2,358 $ 810 $ 4,018 $ 3,438 $ 4,126 $ 4,744 $ 5,219 $ 5,480 $ 5,754 $ 6,042 $ 6,344 $ 6,661 $ 6,994
% of revenue 17.9% 14.5% 10.8% 3.4% 13.7% 9.1% 9.1% 9.1% 9.1% 9.1% 9.1% 9.1% 9.1% 9.1% 9.1%
Working Capital $ 491 $ 1,035 $ 2,030 $ 1,935 $ 56 $ 72 $ 87 $ 100 $ 110 $ 115 $ 121 $ 127 $ 134 $ 140
% of revenue 4.6% 6.2% 9.3% 8.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
- WC Investment n/a $ 544 $ 995 $ (96) $ (1,879) $ 16 $ 14 $ 13 $ 10 $ 5 $ 6 $ 6 $ 6 $ 7 $ 7
% of revenue n/a 3.3% 4.6% -0.4% -6.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
FCF n/a $ 1,362 $ 2,878 $ 6,988 $ 7,347 $ 8,050 $ 10,165 $ 11,944 $ 13,418 $ 14,384 $ 15,407 $ 16,496 $ 17,655 $ 18,890 $ 20,109
% of revenue n/a 8.2% 13.2% 29.5% 25.1% 21.2% 22.3% 22.8% 23.3% 23.8% 24.3% 24.8% 25.2% 25.7% 26.1%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) 5.0% $ 7,364 $ 8,507 $ 9,144 $ 9,397 $ 9,215 $ 9,029 $ 8,844 $ 8,659 $ 8,475 $ 209,137
Per Share Value Working Capital 2006 2007 2008 2009 2010
Est. Price Invested Capital (Equity and Debt) Value $ 287,771 Current Assets $ 13,040 $ 17,289 $ 20,178 $ 29,167 $ 41,562
+ Excess Cash $ 34,975 - Excess Cash $ 11,244 $ 14,219 $ 15,846 $ 24,485 $ 34,975
- Interest Bearing Debt, Preferred and Minority Interest $ 3,465 - Current Liabilities $ 1,305 $ 2,036 $ 2,302 $ 2,747 $ 9,996
$ 991.56 + Short Term Debt $ - $ - $ - $ - $ 3,465
Equity Value (Net Present Value) $ 319,281 Working Capital $ 491 $ 1,035 $ 2,030 $ 1,935 $ 56
Last Stock Price % of revenue 4.6% 6.2% 9.3% 8.2% 0.2%
Divide: Shares Outstanding 322
Interest Exp (net) $ 412 $ 560 $ 390 $ 230 $ (579)
$ 606.77 Fair Value/Share $ 991.56 Total Debt $ - $ - $ - $ 1,392 $ 3,465
*SEC 10K filings / Annual Reports/Estimates

17. WACC Google Discount Rate
Industry Average Estimates for the WACC Calculation (Millions USD)
WACC 9.3%
Beta Debt Debt Beta
WACC Assumptions Company Price levered Debt Shares Equity Capital Equity Capital Tax % unlever
Risk Free Rate (10yr) 2.00%
Cost of Debt (est.) 7.10% Google $ 606.77 0.970 $ 3,465 322 $ 195,380 $ 198,845 1.77% 1.74% 21.15% 0.957
Equity Risk Prem* 7.5% Yahoo! $ 15.83 0.650 $ 181 1,283 $ 20,310 $ 20,491 0.89% 0.88% 21.71% 0.645
Alpha 0.0% Microsoft $ 30.35 0.970 $ 5,939 8,593 $ 260,798 $ 266,737 2.28% 2.23% 7.08% 0.950
Country Risk Premium 0.0% Time Warner $ 38.10 1.240 $ 16,554 1,145 $ 43,636 $ 60,190 37.94% 27.50% 24.68% 0.964
Baidu.com $ 129.49 1.520 $ 13 349 $ 45,192 $ 45,205 0.03% 0.03% 12.13% 1.520
Industry WACC Oracle $ 28.95 1.210 $ 15,056 5,128 $ 148,456 $ 163,512 10.14% 9.21% 22.72% 1.122
Beta (unlevered) 0.96 IBM $ 192.60 0.520 $ 28,750 1,214 $ 233,778 $ 262,528 12.30% 10.95% 26.07% 0.477
Industry D/E 6.1% Apple $ 468.83 0.920 $ - 937 $ 439,125 $ 439,125 0.00% 0.00% 24.51% 0.920
Tax Rate (5 yrs) 22.2% News Corp $ 19.50 1.450 $ 13,748 2,633 $ 51,344 $ 65,092 26.78% 21.12% 22.68% 1.201
Beta (relevered) 1.01 Nokia $ 5.13 1.840 $ 10,160 3,710 $ 19,032 $ 29,192 53.38% 34.80% 16.11% 1.271
Cost of Debt (after-tax) 5.52% Median 1.090 $ 8,049 1,248 $ 99,900 $ 114,302 6.21% 5.72% 22.20% 0.961
Debt / Capital 5.72%
WAC (debt) 0.32%
Cost of Equity (capm) 9.54%
Equity / Capital 94.28%
WAC (equity) 9.00%
Industry Level WACC 9.3%

18. Google Comparative Enterprise Value
Ent Value Revenue Growth EBITDA Margin EBIT Margin Cash Flow Margin
Current -1yr -5yr +5yr -1yr -5yr +5yr -1yr -5yr +5yr -1yr -5yr +5yr
Google $ 163,870 24.0% 30.1% 15.9% 37.2% 37.6% 40.2% 32.3% 31.7% 34.3% 21.2% 31.7% 22.7%
Yahoo! $ 17,607 -2.1% -0.1% -7.7% 33.1% 20.6% 25.3% 22.3% 10.4% 14.7% 15.4% 5.7% 8.5%
Microsoft $ 229,949 6.9% 9.3% 5.1% 42.7% 40.6% 41.2% 38.5% 37.3% 37.3% 33.2% 24.8% 29.9%
Time Warner $ 56,527 4.3% -8.8% 2.0% 46.9% 37.2% 46.1% 19.1% 12.8% 19.1% 39.9% 26.9% 38.4%
Baidu.com $ 43,961 84.4% 85.5% 56.1% 56.3% 41.8% 57.8% 50.0% 33.8% 50.0% 49.4% 33.8% 48.1%
Oracle $ 145,043 15.3% 17.2% 13.6% 43.0% 38.2% 41.4% 35.4% 35.5% 35.4% 36.5% 28.8% 32.9%
IBM $ 250,877 4.3% 2.4% 6.2% 23.2% 20.8% 21.5% 18.5% 15.6% 17.0% 14.4% 12.1% 13.1%
Apple $ 413,505 78.5% 37.6% 25.6% 33.4% 21.9% 31.3% 31.2% 20.4% 28.0% 26.3% 16.7% 19.2%
News Corp $ 56,383 7.7% 7.1% 3.2% 17.4% 17.4% 18.4% 13.6% 14.0% 14.7% 13.9% 8.4% 10.6%
Nokia $ 12,217 -3.2% 3.1% 1.6% 4.8% 10.6% 5.2% 4.6% 9.1% 4.6% 2.5% 7.5% 2.8%
Low Value $ 12,217 -3.2% -8.8% -7.7% 4.8% 10.6% 5.2% 4.6% 9.1% 4.6% 2.5% 5.7% 2.8%
High Value $ 413,505 84.4% 85.5% 56.1% 56.3% 41.8% 57.8% 50.0% 37.3% 50.0% 49.4% 33.8% 48.1%
Average Value $ 136,230 21.8% 17.0% 11.7% 33.4% 27.7% 32.0% 25.9% 21.0% 24.5% 25.7% 18.3% 22.6%
Median Value $ 56,527 6.9% 7.1% 5.1% 33.4% 21.9% 31.3% 22.3% 15.6% 19.1% 26.3% 16.7% 19.2%
Google vs. Competitors
Ent Value Revenue Growth EBITDA Margin EBIT Margin Cash Flow Margin
Low Value + + + + + + + + + + + + +
High Value
Average Value + + + + + + + + + + + +
Median Value + + + + + + + + + + + +
Advantages v. Competitors 75% 75% = Average 75% = Average 75% = Average 63% = Average

19. BACKUP
(News Corp.)

20. Model Summary – News Corp Parent
 Assumes Risk Free Rate of 2.00% via Treasury 10-yr bonds
 Assumes weighted cost of debt borrowings at 7.1%
 Assumes Equity Risk premium of 7.5%
 Model only as fluid as timing on daily share price
 2009 restructuring costs normalized for DCF analysis
 2010 used as a base year to compare similar industries
 Overall ROIC is roughly 8.9% and 9.4% in 2010/2011 vs. industry
WACC of 9.7%
 $17.79 per share based on DCF estimates

21. Financial Ratios – News Corp
2007-12 2008-12 2009-12 2010-12 2011-12
Current Ratio 2.12 1.56 1.49 2.03 2.28
Acid Test/Quick Ratio 1.80 1.27 1.21 1.71 1.99
Liquidity
Receiveables Turnover 4.90 5.14 4.58 5.15 5.24
Average Collection Period 74.4 70.9 79.6 70.8 69.7
Inventory Turnover 9.14 9.56 8.27 8.63 8.92
Days in Inventory 39.9 38.2 44.1 42.3 40.9
Profit Margin 12.0% 16.3% -11.1% 7.7% 8.2%
Asset Turnover 46.0% 52.9% 52.7% 61.0% 57.4%
Profitability
Return on Assets 5.5% 8.6% -5.9% 4.7% 4.7%
Return on Equity 10.4% 17.5% -13.0% 10.5% 10.0%
Earnings per share ($) $ 1.14 $ 1.82 $ (1.29) $ 0.97 $ 1.04
Price Earnings Ratio 17.11 10.71 -15.12 20.10 18.75
Payout Ratio 10.8% 6.9% 10.8% 16.5% 18.3%
Debt to Assets 47.2% 54.1% 56.3% 53.8% 52.4%
Solvency
Interest Coverage Ratio 13.7% 11.2% -20.1% 23.0% 18.8%
Free Cash Flow ($MM) $ 2,802 $ 2,482 $ 1,147 $ 2,940 $ 3,300
*SEC 10K filings / Annual Reports

22. News Corp - Share Price
$20.00
$18.00
$16.00
$14.00
NWSA
$12.00
$10.00
$8.00
$6.00
$4.00
1/2/2009 4/2/2009 7/2/2009 10/2/2009 1/2/2010 4/2/2010 7/2/2010 10/2/2010 1/2/2011 4/2/2011 7/2/2011 10/2/2011 1/2/2012
News Corp Sells BTV and Indexes Acquires SmartMoney Reaffirms FY2011 EBIT 2Q tops estimates
Acquires Stake in Rotana Group DJ Investment Banker Sale of Myspace
Raises EBIT Guidance Withdraws offer on BskyB
Launch of FX Dollar Index Announces $5B buyback
Acquires Skiff eReading Hulu drawing bids
Yahoo buyout talks

23. 09-10’ News Corp EPS Walk
$0.23
$2.71 ($0.02)
($0.36)
$0.97
($0.43)
$2.5B
$0.71
2009
2010
Revenue
Depreciation
COGS
SG&A
Restructuring
Corp/Tax/BTL
Other Net
Affliate Equity
Interest Net
-$3.5B
($0.44)
($0.14) ($0.01)
($1.29)
*SEC 10K filings / Annual Reports

24. 10-11’ News Corp EPS Walk
$0.09 $0.02
$0.18 ($0.02) ($0.01)
($0.01)
$1.04
$0.97 ($0.17)
$2.5B $2.7B
-$3.5B
2010
2011
Revenue
COGS
Restructuring
SG&A
Corp/Tax/BTL
Other Net
Interest Net
*SEC 10K filings / Annual Reports

25. 09-10’ News Corp Segment Level Operating Income Mix
$615M
$29M ($163M) $64M $71M
$501M
($504M) ($212M)
$3.6B $4.0B
2009
2010
Other
Television
Broadcast Satellite
Integrated Marketing
News & Information
Book Publishing
Cable Network
Filmed Entertainment
-$3.5B
*SEC 10K filings / Annual Reports

26. 10-11’ News Corp Segment Level Operating Income Mix
$397M
$492M $2M ($39M)
$461M
($422M)
$4.9B
$4.0B
2010
2011
Publishing
Other
Television
Broadcast Satellite
Cable Network
Filmed Entertainment
-$3.5B
*SEC 10K filings / Annual Reports

27. News Corp - Discounted Cash Flow Analysis
Millions USD Actuals Actuals Best View Estimates
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Assump.
Total Revenue $ 25,327 $ 28,665 $ 32,996 $ 30,423 $ 32,778 $ 33,405 $ 34,574 $ 35,784 $ 37,037 $ 38,333 $ 39,675 $ 41,063 $ 42,500 $ 43,988 $ 45,528
% growth rate n/a 13.2% 15.1% -7.8% 7.7% 1.9% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%
- COGS $ 16,593 $ 18,645 $ 20,531 $ 19,563 $ 21,015 $ 21,058 $ 21,795 $ 22,558 $ 23,347 $ 24,165 $ 25,010 $ 25,886 $ 26,792 $ 27,729 $ 28,700
% of revenue 65.5% 65.0% 62.2% 64.3% 64.1% 63.0% 63.0% 63.0% 63.0% 63.0% 63.0% 63.0% 63.0% 63.0% 63.0%
Gross Profit $ 8,734 $ 10,020 $ 12,465 $ 10,860 $ 11,763 $ 12,347 $ 12,779 $ 13,226 $ 13,689 $ 14,168 $ 14,664 $ 15,178 $ 15,709 $ 16,259 $ 16,828
% of revenue 34.5% 35.0% 37.8% 35.7% 35.9% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0%
- Operating Exp $ 4,866 $ 5,568 $ 7,084 $ 7,302 $ 8,057 $ 7,810 $ 7,610 $ 7,877 $ 8,152 $ 8,438 $ 8,733 $ 9,039 $ 9,355 $ 9,682 $ 10,021
% of revenue 19.2% 19.4% 21.5% 24.0% 24.6% 23.4% 22.0% 22.0% 22.0% 22.0% 22.0% 22.0% 22.0% 22.0% 22.0%
- SG&A (Op Ex) $ 4,190 $ 4,689 $ 6,075 $ 6,076 $ 6,788 $ 6,527 $ 6,300 $ 6,538 $ 6,785 $ 7,042 $ 7,308 $ 7,584 $ 7,871 $ 8,168 $ 8,463
% of revenue 16.5% 16.4% 18.4% 20.0% 20.7% 19.5% 18.2% 18.3% 18.3% 18.4% 18.4% 18.5% 18.5% 18.6% 18.6%
EBITDA $ 4,544 $ 5,331 $ 6,390 $ 4,784 $ 4,975 $ 5,820 $ 6,480 $ 6,688 $ 6,904 $ 7,127 $ 7,356 $ 7,593 $ 7,838 $ 8,090 $ 8,365
% of revenue 17.9% 18.6% 19.4% 15.7% 15.2% 17.4% 18.7% 18.7% 18.6% 18.6% 18.5% 18.5% 18.4% 18.4% 18.4%
- D & A (Op Ex) $ 676 $ 879 $ 1,009 $ 1,226 $ 1,269 $ 1,283 $ 1,311 $ 1,339 $ 1,367 $ 1,396 $ 1,425 $ 1,454 $ 1,484 $ 1,514 $ 1,558
% of revenue 2.7% 3.1% 3.1% 4.0% 3.9% 3.8% 3.8% 3.7% 3.7% 3.6% 3.6% 3.5% 3.5% 3.4% 3.4%
EBIT (oper profits) $ 3,868 $ 4,452 $ 5,381 $ 3,558 $ 3,706 $ 4,537 $ 5,169 $ 5,350 $ 5,537 $ 5,731 $ 5,931 $ 6,139 $ 6,354 $ 6,576 $ 6,806
% of revenue 15.3% 15.5% 16.3% 11.7% 11.3% 13.6% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0%
- Taxes $ 1,526 $ 1,814 $ 1,803 $ 2,229 $ 679 $ 1,029 $ 1,872 $ 1,938 $ 2,006 $ 2,076 $ 2,149 $ 2,224 $ 2,302 $ 2,382 $ 2,466
% of EBIT 39.5% 40.7% 33.5% 62.6% 18.3% 22.7% 36.2% 36.2% 36.2% 36.2% 36.2% 36.2% 36.2% 36.2% 36.2%
NOPAT $ 2,342 $ 2,638 $ 3,578 $ 1,329 $ 3,027 $ 3,508 $ 3,296 $ 3,412 $ 3,531 $ 3,655 $ 3,783 $ 3,915 $ 4,052 $ 4,194 $ 4,341
% of revenue 9.2% 9.2% 10.8% 4.4% 9.2% 10.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5% 9.5%
*SEC 10K filings / Annual Reports/Estimates

28. News Corp - Free Cash Flow to the Firm
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 676 $ 879 $ 1,009 $ 1,226 $ 1,269 $ 1,283 $ 1,311 $ 1,339 $ 1,367 $ 1,396 $ 1,425 $ 1,454 $ 1,484 $ 1,514 $ 1,558
% of revenue 2.7% 3.1% 3.1% 4.0% 3.9% 3.8% 3.8% 3.7% 3.7% 3.6% 3.6% 3.5% 3.5% 3.4% 3.4%
- CapEx $ 976 $ 1,308 $ 1,443 $ 1,101 $ 914 $ 1,171 $ 1,212 $ 1,254 $ 1,298 $ 1,344 $ 1,391 $ 1,439 $ 1,490 $ 1,542 $ 1,723
% of revenue 3.9% 4.6% 4.4% 3.6% 2.8% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.8%
Working Capital $ 1,009 $ 1,113 $ 799 $ 742 $ 582 $ (438) $ (453) $ (469) $ (486) $ (503) $ (520) $ (538) $ (557) $ (577)
% of revenue 4.0% 3.9% 2.4% 2.4% 1.8% -1.3% -1.3% -1.3% -1.3% -1.3% -1.3% -1.3% -1.3% -1.3%
- WC Investment n/a $ 104 $ (314) $ (57) $ (160) $ (1,020) $ (15) $ (16) $ (16) $ (17) $ (18) $ (18) $ (19) $ (20) $ (20)
% of revenue n/a 0.4% -1.0% -0.2% -0.5% -3.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
FCF n/a $ 2,105 $ 3,458 $ 1,511 $ 3,542 $ 4,640 $ 3,410 $ 3,512 $ 3,616 $ 3,724 $ 3,834 $ 3,948 $ 4,065 $ 4,185 $ 4,197
% of revenue n/a 7.3% 10.5% 5.0% 10.8% 13.9% 9.9% 9.8% 9.8% 9.7% 9.7% 9.6% 9.6% 9.5% 9.2%
Present Value factor Industry WACC 9.7% 91.1% 83.0% 75.7% 68.9% 62.8% 57.2% 52.2% 47.5% 43.3% 43.3%
Present Value of FCF LTG (est) 3.5% $ 4,228 $ 2,832 $ 2,657 $ 2,493 $ 2,339 $ 2,195 $ 2,059 $ 1,932 $ 1,813 $ 29,111
Per Share Value Working Capital 2007 2008 2009 2010 2011
Est. Price Invested Capital (Equity and Debt) Value $ 51,660 Current Assets $ 13,123 $ 15,906 $ 14,362 $ 15,836 $ 18,024
+ Excess Cash $ 8,709 - Excess Cash $ 5,783 $ 7,654 $ 4,662 $ 6,540 $ 8,709
- Interest Bearing Debt, Preferred and Minority Interest $ 13,748 - Current Liabilities $ 6,373 $ 7,494 $ 9,182 $ 10,639 $ 8,862
$ 17.76 + Short Term Debt $ 42 $ 355 $ 281 $ 2,085 $ 129
Equity Value (Net Present Value) $ 46,621 Working Capital $ 1,009 $ 1,113 $ 799 $ 742 $ 582
Last Stock Price % of revenue 4.0% 3.9% 2.4% 2.4% 1.8%
Divide: Shares Outstanding 2,625
Interest Exp (net) $ 1,037 $ 1,162 $ 1,172 $ 1,018 $ 900
$ 19.50 Fair Value/Share $ 17.76 Total Debt $ 11,708 $ 13,064 $ 14,505 $ 15,040 $ 13,748
*SEC 10K filings / Annual Reports/Estimates

29. WACC News Corp Discount Rate
Industry Average Estimates for the WACC Calculation (Millions USD)
WACC 9.7%
Beta Debt Debt Beta
WACC Assumptions Company Price levered Debt Shares Equity Capital Equity Capital Tax % unlever
Risk Free Rate (10yr) 2.00%
Cost of Debt 7.10% News Corp $ 19.50 1.470 $ 13,748 2,625 $ 51,187 $ 64,935 26.86% 21.17% 22.68% 1.217
Equity Risk Prem* 7.5% Time Warner $ 38.10 1.120 $ 16,554 1,082 $ 41,229 $ 57,783 40.15% 28.65% 24.68% 0.860
Alpha 0.0% CBS $ 29.90 2.210 $ 6,001 675 $ 20,174 $ 26,175 29.74% 22.93% 21.50% 1.792
Country Risk Premium 0.0% Walt Disney $ 40.98 1.120 $ 14,527 1,899 $ 77,824 $ 92,351 18.67% 15.73% 35.53% 1.000
General Electric $ 19.18 1.630 $ 5,262 10,619 $ 203,679 $ 208,941 2.58% 2.52% 15.00% 1.595
Industry WACC New York Times $ 7.49 1.450 $ 1,001 146 $ 1,096 $ 2,097 91.28% 47.72% 25.00% 0.861
Beta (unlevered) 1.00 Washington Post $ 383.30 0.940 $ 400 8 $ 3,112 $ 3,512 12.84% 11.38% 36.12% 0.869
Industry D/E 20.4% Yahoo! $ 15.83 0.880 $ 181 1,309 $ 20,728 $ 20,909 0.87% 0.87% 38.82% 0.875
Tax Rate (5 yrs) 25.0% Viacom $ 54.28 1.150 $ 6,728 608 $ 33,002 $ 39,730 20.39% 16.93% 26.76% 1.001
Beta (relevered) 1.15
Cost of Debt (after-tax) 5.33% Median 1.150 $ 6,001 1,082 $ 33,002 $ 39,730 20.39% 16.93% 25.00% 1.000
Debt / Capital 16.93%
WAC (debt) 0.90%
Cost of Equity (capm) 10.64%
Equity / Capital 83.07%
WAC (equity) 8.84%
Industry Level WACC 9.7%

30. News Corp Comparative Enterprise Value
Ent Value Revenue Growth EBITDA Margin EBIT Margin Cash Flow Margin
Current -1yr -5yr +5yr -1yr -5yr +5yr -1yr -5yr +5yr -1yr -5yr +5yr
News Corp $ 56,226 7.7% 7.1% 3.2% 17.4% 17.4% 18.4% 13.6% 14.0% 14.7% 13.9% 14.0% 10.6%
Time Warner $ 54,120 4.3% -8.8% 2.0% 46.9% 37.2% 46.1% 19.1% 12.8% 19.1% 39.9% 26.9% 38.4%
CBS $ 25,695 8.0% -0.3% 3.0% 18.7% 18.4% 18.7% 14.7% 14.7% 14.7% 13.4% 13.7% 13.2%
Walt Disney $ 89,629 5.3% 2.7% 2.7% 22.7% 22.5% 22.6% 18.2% 18.2% 18.2% 11.0% 10.9% 11.1%
General Electric $ 208,941 -4.1% 0.3% 0.3% 18.2% 17.2% 17.9% 11.6% 11.6% 11.6% 10.4% 7.7% 9.8%
New York Times $ 1,697 -1.9% -7.4% 0.8% 14.7% 5.8% 14.8% 9.6% 0.5% 9.6% 10.6% 3.3% 10.3%
Washington Post $ 2,669 3.4% 4.9% 2.9% 17.0% 15.1% 17.1% 11.1% 8.9% 11.1% 7.9% 6.9% 7.8%
Yahoo! $ 18,025 -2.1% -0.1% -0.1% 21.2% 20.6% 21.0% 10.4% 10.4% 10.4% 7.7% 5.7% 7.9%
Viacom $ 38,893 -31.4% -3.1% 2.0% 53.5% 30.9% 47.8% 21.6% 21.6% 21.6% 46.6% 22.4% 40.8%
Low Value $ 1,697 -31.4% -8.8% -0.1% 14.7% 5.8% 14.8% 9.6% 0.5% 9.6% 7.7% 3.3% 7.8%
High Value $ 208,941 8.0% 4.9% 3.0% 53.5% 37.2% 47.8% 21.6% 21.6% 21.6% 46.6% 26.9% 40.8%
Average Value $ 54,959 -2.3% -1.5% 1.7% 26.6% 21.0% 25.8% 14.5% 12.3% 14.5% 18.4% 12.2% 17.4%
Median Value $ 32,294 0.7% -0.2% 2.0% 19.9% 19.5% 19.8% 13.1% 12.2% 13.1% 10.8% 9.3% 10.7%
News Corp vs. Competitors
Ent Value Revenue Growth EBITDA Margin EBIT Margin Cash Flow Margin
Low Value + + + + + + + + + + + + +
High Value + +
Average Value + + + + + + +
Median Value + + + + + + + + +
Advantages v. Competitors 75% 88% = High 38% = Average 69% = Average 56% = Average

31. BACKUP
(additional competitors)

32. Time Warner - NOPAT
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 43,690 $ 46,482 $ 26,516 $ 25,785 $ 26,888 $ 27,426 $ 27,974 $ 28,534 $ 29,104 $ 29,687 $ 30,280 $ 30,886 $ 31,504 $ 32,134 $ 32,134
% growth rate n/a 6.4% -43.0% -2.8% 4.3% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 0.0%
- COGS $ 24,876 $ 27,426 $ 14,911 $ 14,235 $ 15,023 $ 15,358 $ 15,666 $ 15,979 $ 16,298 $ 16,624 $ 16,957 $ 17,296 $ 17,642 $ 17,995 $ 17,995
% of revenue 56.9% 59.0% 56.2% 55.2% 55.9% 56.0% 56.0% 56.0% 56.0% 56.0% 56.0% 56.0% 56.0% 56.0% 56.0%
Gross Profit $ 18,814 $ 19,056 $ 11,605 $ 11,550 $ 11,865 $ 12,067 $ 12,309 $ 12,555 $ 12,806 $ 13,062 $ 13,323 $ 13,590 $ 13,862 $ 14,139 $ 14,139
% of revenue 43.1% 41.0% 43.8% 44.8% 44.1% 44.0% 44.0% 44.0% 44.0% 44.0% 44.0% 44.0% 44.0% 44.0% 44.0%
- Operating Exp $ 11,511 $ 10,107 $ 14,567 $ 6,683 $ 6,437 $ 6,837 $ 6,974 $ 7,113 $ 7,255 $ 7,401 $ 7,549 $ 7,700 $ 7,854 $ 8,011 $ 8,011
% of revenue 26.3% 21.7% 54.9% 25.9% 23.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9% 24.9%
- SG&A (Op Ex) $ 4,558 $ (381) $ 7,650 $ (938) $ (1,164) $ (800) $ (699) $ (592) $ (482) $ (366) $ (246) $ (121) $ 9 $ 145 $ 145
% of revenue 10.4% -0.8% 28.9% -3.6% -4.3% -2.9% -2.5% -2.1% -1.7% -1.2% -0.8% -0.4% 0.0% 0.5% 0.5%
EBITDA $ 14,256 $ 19,437 $ 3,955 $ 12,488 $ 13,029 $ 12,868 $ 13,007 $ 13,147 $ 13,288 $ 13,428 $ 13,569 $ 13,711 $ 13,852 $ 13,994 $ 13,994
% of revenue 32.6% 41.8% 14.9% 48.4% 48.5% 46.9% 46.5% 46.1% 45.7% 45.2% 44.8% 44.4% 44.0% 43.5% 43.5%
- D & A (Op Ex) $ 6,953 $ 10,488 $ 6,917 $ 7,621 $ 7,601 $ 7,637 $ 7,672 $ 7,706 $ 7,737 $ 7,767 $ 7,795 $ 7,820 $ 7,844 $ 7,866 $ 7,866
% of revenue 15.9% 22.6% 26.1% 29.6% 28.3% 27.8% 27.4% 27.0% 26.6% 26.2% 25.7% 25.3% 24.9% 24.5% 24.5%
EBIT (oper profits) $ 7,303 $ 8,949 $ (2,962) $ 4,867 $ 5,428 $ 5,230 $ 5,335 $ 5,442 $ 5,550 $ 5,661 $ 5,775 $ 5,890 $ 6,008 $ 6,128 $ 6,128
% of revenue 16.7% 19.3% -11.2% 18.9% 20.2% 19.1% 19.1% 19.1% 19.1% 19.1% 19.1% 19.1% 19.1% 19.1% 19.1%
- Taxes $ 1,308 $ 2,336 $ 692 $ 1,194 $ 1,348 $ 1,291 $ 1,317 $ 1,343 $ 1,370 $ 1,397 $ 1,425 $ 1,454 $ 1,483 $ 1,513 $ 1,513
% of EBIT 17.9% 26.1% -23.4% 24.5% 24.8% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7%
NOPAT $ 5,995 $ 6,613 $ (3,654) $ 3,673 $ 4,080 $ 3,939 $ 4,018 $ 4,098 $ 4,180 $ 4,264 $ 4,349 $ 4,436 $ 4,525 $ 4,616 $ 4,616
% of revenue 13.7% 14.2% -13.8% 14.2% 15.2% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4% 14.4%
*SEC 10K filings / Annual Reports/Estimates

33. Time Warner – FCF
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 6,953 $ 10,488 $ 6,917 $ 7,621 $ 7,601 $ 7,637 $ 7,672 $ 7,706 $ 7,737 $ 7,767 $ 7,795 $ 7,820 $ 7,844 $ 7,866 $ 7,866
% of revenue 15.9% 22.6% 26.1% 29.6% 28.3% 27.8% 27.4% 27.0% 26.6% 26.2% 25.7% 25.3% 24.9% 24.5% 24.5%
- CapEx $ 4,141 $ 4,430 $ 684 $ 561 $ 631 $ 620 $ 722 $ 828 $ 937 $ 1,051 $ 1,168 $ 1,290 $ 1,417 $ 1,548 $ 1,678
% of revenue 9.5% 9.5% 2.6% 2.2% 2.3% 2.3% 2.6% 2.9% 3.2% 3.5% 3.9% 4.2% 4.5% 4.8% 5.2%
Working Capital $ (3,443) $ (1,132) $ 3,425 $ (499) $ 858 $ 875 $ 893 $ 911 $ 929 $ 947 $ 966 $ 986 $ 1,005 $ 1,025
% of revenue -7.9% -2.4% 12.9% -1.9% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2%
- WC Investment n/a $ 2,311 $ 4,557 $ (3,924) $ 1,357 $ 17 $ 18 $ 18 $ 18 $ 19 $ 19 $ 19 $ 20 $ 20 $ 20
% of revenue n/a 5.0% 17.2% -15.2% 5.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
FCF n/a $ 10,360 $ (1,978) $ 14,657 $ 9,693 $ 10,939 $ 10,951 $ 10,959 $ 10,962 $ 10,962 $ 10,957 $ 10,947 $ 10,933 $ 10,913 $ 10,783
% of revenue n/a 22.3% -7.5% 56.8% 36.0% 39.9% 39.1% 38.4% 37.7% 36.9% 36.2% 35.4% 34.7% 34.0% 33.6%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) 0.0% $ 10,007 $ 9,164 $ 8,389 $ 7,677 $ 7,023 $ 6,421 $ 5,869 $ 5,362 $ 4,896 $ 51,942
*SEC 10K filings / Annual Reports/Estimates

34. Yahoo! - NOPAT
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 6,426 $ 6,969 $ 7,209 $ 6,460 $ 6,325 $ 4,984 $ 4,767 $ 4,559 $ 4,360 $ 4,170 $ 3,989 $ 3,815 $ 3,649 $ 3,490 $ 3,338
% growth rate n/a 8.5% 3.4% -10.4% -2.1% -21.2% -4.4% -4.4% -4.4% -4.4% -4.4% -4.4% -4.4% -4.4% -4.4%
- COGS $ 2,676 $ 2,839 $ 3,023 $ 2,872 $ 2,628 $ 1,503 $ 1,896 $ 1,813 $ 1,734 $ 1,658 $ 1,586 $ 1,517 $ 1,451 $ 1,388 $ 1,327
% of revenue 41.6% 40.7% 41.9% 44.5% 41.5% 30.2% 39.8% 39.8% 39.8% 39.8% 39.8% 39.8% 39.8% 39.8% 39.8%
Gross Profit $ 3,750 $ 4,131 $ 4,185 $ 3,589 $ 3,697 $ 3,481 $ 2,871 $ 2,746 $ 2,627 $ 2,512 $ 2,403 $ 2,298 $ 2,198 $ 2,102 $ 2,010
% of revenue 58.4% 59.3% 58.1% 55.5% 58.5% 69.8% 60.2% 60.2% 60.2% 60.2% 60.2% 60.2% 60.2% 60.2% 60.2%
- Operating Exp $ 2,807 $ 3,450 $ 3,613 $ 3,158 $ 2,867 $ 2,367 $ 2,264 $ 2,166 $ 2,071 $ 1,981 $ 1,895 $ 1,812 $ 1,733 $ 1,658 $ 1,586
% of revenue 43.7% 49.5% 50.1% 48.9% 45.3% 47.5% 47.5% 47.5% 47.5% 47.5% 47.5% 47.5% 47.5% 47.5% 47.5%
- SG&A (Op Ex) $ 2,267 $ 2,791 $ 2,823 $ 2,419 $ 2,184 $ 1,833 $ 1,756 $ 1,683 $ 1,612 $ 1,544 $ 1,480 $ 1,418 $ 1,358 $ 1,301 $ 1,245
% of revenue 35.3% 40.0% 39.2% 37.4% 34.5% 36.8% 36.8% 36.9% 37.0% 37.0% 37.1% 37.2% 37.2% 37.3% 37.3%
EBITDA $ 1,483 $ 1,339 $ 1,363 $ 1,169 $ 1,513 $ 1,648 $ 1,115 $ 1,064 $ 1,014 $ 968 $ 923 $ 880 $ 839 $ 801 $ 766
% of revenue 23.1% 19.2% 18.9% 18.1% 23.9% 33.1% 23.4% 23.3% 23.3% 23.2% 23.1% 23.1% 23.0% 22.9% 22.9%
- D & A (Op Ex) $ 540 $ 659 $ 790 $ 739 $ 683 $ 535 $ 508 $ 483 $ 459 $ 437 $ 415 $ 394 $ 375 $ 356 $ 341
% of revenue 8.4% 9.5% 11.0% 11.4% 10.8% 10.7% 10.7% 10.6% 10.5% 10.5% 10.4% 10.3% 10.3% 10.2% 10.2%
EBIT (oper profits) $ 943 $ 680 $ 573 $ 430 $ 830 $ 1,113 $ 607 $ 580 $ 555 $ 531 $ 508 $ 486 $ 465 $ 444 $ 425
% of revenue 14.7% 9.8% 7.9% 6.7% 13.1% 22.3% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7% 12.7%
- Taxes $ 458 $ 337 $ 259 $ 219 $ 222 $ 242 $ 219 $ 210 $ 201 $ 192 $ 184 $ 176 $ 168 $ 161 $ 154
% of EBIT 48.5% 49.6% 45.2% 51.0% 26.7% 21.7% 36.1% 36.1% 36.1% 36.1% 36.1% 36.1% 36.1% 36.1% 36.1%
NOPAT $ 485 $ 343 $ 314 $ 211 $ 609 $ 872 $ 388 $ 371 $ 355 $ 339 $ 324 $ 310 $ 297 $ 284 $ 271
% of revenue 7.6% 4.9% 4.4% 3.3% 9.6% 17.5% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1% 8.1%
*SEC 10K filings / Annual Reports/Estimates

35. Yahoo! - FCF
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 540 $ 659 $ 790 $ 739 $ 683 $ 535 $ 508 $ 483 $ 459 $ 437 $ 415 $ 394 $ 375 $ 356 $ 341
% of revenue 8.4% 9.5% 11.0% 11.4% 10.8% 10.7% 10.7% 10.6% 10.5% 10.5% 10.4% 10.3% 10.3% 10.2% 10.2%
- CapEx $ 689 $ 713 $ 746 $ 466 $ 736 $ 605 $ 572 $ 541 $ 511 $ 483 $ 457 $ 431 $ 408 $ 385 $ 346
% of revenue 10.7% 10.2% 10.4% 7.2% 11.6% 12.1% 12.0% 11.9% 11.7% 11.6% 11.4% 11.3% 11.2% 11.0% 10.4%
Working Capital $ (325) $ (315) $ (412) $ (414) $ (164) $ (130) $ (124) $ (119) $ (113) $ (108) $ (104) $ (99) $ (95) $ (91)
% of revenue -5.1% -4.5% -5.7% -6.4% -2.6% -2.6% -2.6% -2.6% -2.6% -2.6% -2.6% -2.6% -2.6% -2.6%
- WC Investment n/a $ 11 $ (97) $ (3) $ 250 $ 35 $ 6 $ 5 $ 5 $ 5 $ 5 $ 5 $ 4 $ 4 $ 4
% of revenue n/a 0.2% -1.3% 0.0% 3.9% 0.7% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
FCF n/a $ 279 $ 454 $ 486 $ 306 $ 766 $ 318 $ 308 $ 297 $ 288 $ 278 $ 269 $ 260 $ 251 $ 262
% of revenue n/a 4.0% 6.3% 7.5% 4.8% 15.4% 6.7% 6.7% 6.8% 6.9% 7.0% 7.0% 7.1% 7.2% 7.8%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) -4.4% $ 701 $ 266 $ 235 $ 208 $ 184 $ 163 $ 144 $ 127 $ 113 $ 859
*SEC 10K filings / Annual Reports/Estimates

36. Microsoft - NOPAT
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 44,282 $ 51,122 $ 60,420 $ 58,437 $ 62,484 $ 69,538 $ 73,015 $ 75,205 $ 77,461 $ 79,785 $ 82,179 $ 84,644 $ 87,183 $ 89,799 $ 92,493
% growth rate n/a 15.4% 18.2% -3.3% 6.9% 11.3% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
- COGS $ 7,650 $ 10,693 $ 11,598 $ 12,155 $ 12,395 $ 15,577 $ 15,063 $ 15,515 $ 15,980 $ 16,460 $ 16,954 $ 17,462 $ 17,986 $ 18,526 $ 19,081
% of revenue 17.3% 20.9% 19.2% 20.8% 19.8% 22.4% 20.6% 20.6% 20.6% 20.6% 20.6% 20.6% 20.6% 20.6% 20.6%
Gross Profit $ 36,632 $ 40,429 $ 48,822 $ 46,282 $ 50,089 $ 53,961 $ 57,952 $ 59,690 $ 61,481 $ 63,326 $ 65,225 $ 67,182 $ 69,197 $ 71,273 $ 73,412
% of revenue 82.7% 79.1% 80.8% 79.2% 80.2% 77.6% 79.4% 79.4% 79.4% 79.4% 79.4% 79.4% 79.4% 79.4% 79.4%
- Operating Exp $ 18,840 $ 21,905 $ 26,642 $ 25,919 $ 25,991 $ 27,205 $ 30,961 $ 31,889 $ 32,846 $ 33,831 $ 34,846 $ 35,892 $ 36,969 $ 38,078 $ 39,220
% of revenue 42.5% 42.8% 44.1% 44.4% 41.6% 39.1% 42.4% 42.4% 42.4% 42.4% 42.4% 42.4% 42.4% 42.4% 42.4%
- SG&A (Op Ex) $ 17,977 $ 20,735 $ 24,586 $ 23,357 $ 23,318 $ 24,299 $ 27,982 $ 28,896 $ 29,839 $ 30,813 $ 31,819 $ 32,858 $ 33,930 $ 35,036 $ 36,088
% of revenue 40.6% 40.6% 40.7% 40.0% 37.3% 34.9% 38.3% 38.4% 38.5% 38.6% 38.7% 38.8% 38.9% 39.0% 39.0%
EBITDA $ 18,655 $ 19,694 $ 24,236 $ 22,925 $ 26,771 $ 29,662 $ 29,970 $ 30,795 $ 31,642 $ 32,512 $ 33,406 $ 34,324 $ 35,268 $ 36,237 $ 37,324
% of revenue 42.1% 38.5% 40.1% 39.2% 42.8% 42.7% 41.0% 40.9% 40.8% 40.7% 40.7% 40.6% 40.5% 40.4% 40.4%
- D & A (Op Ex) $ 863 $ 1,170 $ 2,056 $ 2,562 $ 2,673 $ 2,906 $ 2,979 $ 2,994 $ 3,007 $ 3,018 $ 3,027 $ 3,034 $ 3,039 $ 3,041 $ 3,132
% of revenue 1.9% 2.3% 3.4% 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 3.7% 3.6% 3.5% 3.4% 3.4%
EBIT (oper profits) $ 17,792 $ 18,524 $ 22,180 $ 20,363 $ 24,098 $ 26,756 $ 26,991 $ 27,801 $ 28,635 $ 29,494 $ 30,379 $ 31,290 $ 32,229 $ 33,196 $ 34,192
% of revenue 40.2% 36.2% 36.7% 34.8% 38.6% 38.5% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0% 37.0%
- Taxes $ 5,663 $ 6,036 $ 6,133 $ 5,252 $ 6,253 $ 4,921 $ 6,427 $ 6,620 $ 6,818 $ 7,023 $ 7,233 $ 7,450 $ 7,674 $ 7,904 $ 8,141
% of EBIT 31.8% 32.6% 27.7% 25.8% 25.9% 7.1% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8%
NOPAT $ 12,129 $ 12,488 $ 16,047 $ 15,111 $ 17,845 $ 21,835 $ 20,564 $ 21,181 $ 21,817 $ 22,471 $ 23,146 $ 23,840 $ 24,555 $ 25,292 $ 26,050
% of revenue 27.4% 24.4% 26.6% 25.9% 28.6% 31.4% 28.2% 28.2% 28.2% 28.2% 28.2% 28.2% 28.2% 28.2% 28.2%
*SEC 10K filings / Annual Reports/Estimates

37. Microsoft - FCF
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 863 $ 1,170 $ 2,056 $ 2,562 $ 2,673 $ 2,906 $ 2,979 $ 2,994 $ 3,007 $ 3,018 $ 3,027 $ 3,034 $ 3,039 $ 3,041 $ 3,132
% of revenue 1.9% 2.3% 3.4% 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 3.7% 3.6% 3.5% 3.4% 3.4%
- CapEx $ 1,578 $ 2,264 $ 3,182 $ 3,119 $ 1,977 $ 2,355 $ 2,473 $ 2,547 $ 2,623 $ 2,702 $ 2,783 $ 2,867 $ 2,953 $ 3,041 $ 3,132
% of revenue 3.6% 4.4% 5.3% 5.3% 3.2% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4%
Working Capital $ (7,593) $ (6,997) $ (10,306) $ (7,201) $ (6,259) $ (6,966) $ (7,314) $ (7,533) $ (7,759) $ (7,992) $ (8,232) $ (8,479) $ (8,733) $ (8,995)
% of revenue -17.1% -13.7% -17.1% -12.3% -10.0% -10.0% -10.0% -10.0% -10.0% -10.0% -10.0% -10.0% -10.0% -10.0%
- WC Investment n/a $ 596 $ (3,309) $ 3,105 $ 942 $ (707) $ (348) $ (219) $ (226) $ (233) $ (240) $ (247) $ (254) $ (262) $ (270)
% of revenue n/a 1.2% -5.5% 5.3% 1.5% -1.0% -0.5% -0.3% -0.3% -0.3% -0.3% -0.3% -0.3% -0.3% -0.3%
FCF n/a $ 10,798 $ 18,230 $ 11,449 $ 17,599 $ 23,092 $ 21,419 $ 21,848 $ 22,426 $ 23,020 $ 23,629 $ 24,254 $ 24,896 $ 25,554 $ 26,320
% of revenue n/a 21.1% 30.2% 19.6% 28.2% 33.2% 29.3% 29.1% 29.0% 28.9% 28.8% 28.7% 28.6% 28.5% 28.5%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) 3.0% $ 21,125 $ 17,924 $ 16,725 $ 15,706 $ 14,748 $ 13,848 $ 13,004 $ 12,210 $ 11,465 $ 187,026
*SEC 10K filings / Annual Reports/Estimates

38. Nokia (pre-spin) - NOPAT
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 54,271 $ 74,560 $ 70,761 $ 58,801 $ 56,943 $ 58,684 $ 59,858 $ 60,456 $ 61,061 $ 61,671 $ 62,288 $ 62,911 $ 63,540 $ 64,175 $ 64,817
% growth rate n/a 37.4% -5.1% -16.9% -3.2% 3.1% 2.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
- COGS $ 36,614 $ 49,330 $ 46,518 $ 39,771 $ 39,749 $ 40,964 $ 41,783 $ 42,201 $ 42,623 $ 43,049 $ 43,480 $ 43,914 $ 44,353 $ 44,797 $ 45,245
% of revenue 67.5% 66.2% 65.7% 67.6% 69.8% 69.8% 69.8% 69.8% 69.8% 69.8% 69.8% 69.8% 69.8% 69.8% 69.8%
Gross Profit $ 17,657 $ 25,230 $ 24,243 $ 19,030 $ 17,195 $ 17,720 $ 18,075 $ 18,255 $ 18,438 $ 18,622 $ 18,809 $ 18,997 $ 19,187 $ 19,378 $ 19,572
% of revenue 32.5% 33.8% 34.3% 32.4% 30.2% 30.2% 30.2% 30.2% 30.2% 30.2% 30.2% 30.2% 30.2% 30.2% 30.2%
- Operating Exp $ 10,600 $ 16,530 $ 16,436 $ 15,968 $ 14,562 $ 15,008 $ 15,308 $ 15,461 $ 15,615 $ 15,772 $ 15,929 $ 16,089 $ 16,250 $ 16,412 $ 16,576
% of revenue 19.5% 22.2% 23.2% 27.2% 25.6% 25.6% 25.6% 25.6% 25.6% 25.6% 25.6% 25.6% 25.6% 25.6% 25.6%
- SG&A (Op Ex) $ 9,660 $ 14,769 $ 14,180 $ 15,968 $ 14,562 $ 14,896 $ 15,080 $ 15,116 $ 15,150 $ 15,184 $ 15,218 $ 15,250 $ 15,282 $ 15,312 $ 15,465
% of revenue 17.8% 19.8% 20.0% 27.2% 25.6% 25.4% 25.2% 25.0% 24.8% 24.6% 24.4% 24.2% 24.1% 23.9% 23.9%
EBITDA $ 7,997 $ 10,461 $ 10,063 $ 3,062 $ 2,632 $ 2,824 $ 2,995 $ 3,140 $ 3,287 $ 3,438 $ 3,591 $ 3,746 $ 3,905 $ 4,066 $ 4,107
% of revenue 14.7% 14.0% 14.2% 5.2% 4.6% 4.8% 5.0% 5.2% 5.4% 5.6% 5.8% 6.0% 6.1% 6.3% 6.3%
- D & A (Op Ex) $ 940 $ 1,761 $ 2,256 $ - $ - $ 112 $ 228 $ 345 $ 465 $ 587 $ 712 $ 838 $ 968 $ 1,100 $ 1,111
% of revenue 1.7% 2.4% 3.2% 0.0% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.1% 1.3% 1.5% 1.7% 1.7%
EBIT (oper profits) $ 7,057 $ 8,700 $ 7,807 $ 3,062 $ 2,632 $ 2,713 $ 2,767 $ 2,794 $ 2,822 $ 2,851 $ 2,879 $ 2,908 $ 2,937 $ 2,966 $ 2,996
% of revenue 13.0% 11.7% 11.0% 5.2% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6%
- Taxes $ 1,791 $ 2,223 $ 1,508 $ 1,007 $ (594) $ 437 $ 446 $ 450 $ 455 $ 459 $ 464 $ 469 $ 473 $ 478 $ 483
% of EBIT 25.4% 25.6% 19.3% 32.9% -22.6% 16.1% 16.1% 16.1% 16.1% 16.1% 16.1% 16.1% 16.1% 16.1% 16.1%
NOPAT $ 5,266 $ 6,477 $ 6,299 $ 2,055 $ 3,226 $ 2,276 $ 2,321 $ 2,344 $ 2,368 $ 2,391 $ 2,415 $ 2,439 $ 2,464 $ 2,488 $ 2,513
% of revenue 9.7% 8.7% 8.9% 3.5% 5.7% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%
*SEC 10K filings / Annual Reports/Estimates

39. Nokia - FCF
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 940 $ 1,761 $ 2,256 $ - $ - $ 112 $ 228 $ 345 $ 465 $ 587 $ 712 $ 838 $ 968 $ 1,100 $ 1,111
% of revenue 1.7% 2.4% 3.2% 0.0% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.1% 1.3% 1.5% 1.7% 1.7%
- CapEx $ 1,025 $ 1,273 $ 1,423 $ 801 $ 911 $ 1,006 $ 1,026 $ 1,036 $ 1,046 $ 1,057 $ 1,067 $ 1,078 $ 1,089 $ 1,100 $ 1,111
% of revenue 1.9% 1.7% 2.0% 1.4% 1.6% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%
Working Capital $ 179 $ (801) $ 1,236 $ 343 $ (2,098) $ (2,162) $ (2,206) $ (2,228) $ (2,250) $ (2,272) $ (2,295) $ (2,318) $ (2,341) $ (2,365)
% of revenue 0.3% -1.1% 1.7% 0.6% -3.7% -3.7% -3.7% -3.7% -3.7% -3.7% -3.7% -3.7% -3.7% -3.7%
- WC Investment n/a $ (980) $ 2,037 $ (893) $ (2,441) $ (64) $ (43) $ (22) $ (22) $ (22) $ (23) $ (23) $ (23) $ (23) $ (24)
% of revenue n/a -1.3% 2.9% -1.5% -4.3% -0.1% -0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
FCF n/a $ 7,945 $ 5,095 $ 2,148 $ 4,757 $ 1,446 $ 1,566 $ 1,676 $ 1,809 $ 1,944 $ 2,082 $ 2,223 $ 2,366 $ 2,512 $ 2,537
% of revenue n/a 10.7% 7.2% 3.7% 8.4% 2.5% 2.6% 2.8% 3.0% 3.2% 3.3% 3.5% 3.7% 3.9% 3.9%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) 1.0% $ 1,323 $ 1,311 $ 1,283 $ 1,267 $ 1,246 $ 1,220 $ 1,192 $ 1,160 $ 1,127 $ 13,691
*SEC 10K filings / Annual Reports/Estimates

40. Baidu – NOPAT
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 107 $ 239 $ 469 $ 652 $ 1,201 $ 2,228 $ 3,788 $ 6,061 $ 8,486 $ 10,607 $ 11,138 $ 11,695 $ 12,279 $ 12,893 $ 13,538
% growth rate n/a 122.7% 96.0% 39.0% 84.4% 85.5% 70.0% 60.0% 40.0% 25.0% 5.0% 5.0% 5.0% 5.0% 5.0%
- COGS $ 36 $ 94 $ 169 $ 237 $ 326 $ 605 $ 1,029 $ 1,646 $ 2,304 $ 2,880 $ 3,024 $ 3,176 $ 3,334 $ 3,501 $ 3,676
% of revenue 33.5% 39.5% 36.1% 36.3% 27.2% 27.2% 27.2% 27.2% 27.2% 27.2% 27.2% 27.2% 27.2% 27.2% 27.2%
Gross Profit $ 71 $ 145 $ 300 $ 415 $ 875 $ 1,623 $ 2,760 $ 4,415 $ 6,182 $ 7,727 $ 8,113 $ 8,519 $ 8,945 $ 9,392 $ 9,862
% of revenue 66.5% 60.5% 63.9% 63.7% 72.8% 72.8% 72.8% 72.8% 72.8% 72.8% 72.8% 72.8% 72.8% 72.8% 72.8%
- Operating Exp $ 48 $ 81 $ 138 $ 180 $ 274 $ 509 $ 865 $ 1,384 $ 1,937 $ 2,422 $ 2,543 $ 2,670 $ 2,803 $ 2,943 $ 3,091
% of revenue 44.8% 33.8% 29.5% 27.6% 22.8% 22.8% 22.8% 22.8% 22.8% 22.8% 22.8% 22.8% 22.8% 22.8% 22.8%
- SG&A (Op Ex) $ 39 $ 56 $ 100 $ 133 $ 207 $ 368 $ 597 $ 909 $ 1,209 $ 1,432 $ 1,420 $ 1,403 $ 1,381 $ 1,353 $ 1,421
% of revenue 36.0% 23.4% 21.4% 20.5% 17.3% 16.5% 15.8% 15.0% 14.3% 13.5% 12.7% 12.0% 11.2% 10.5% 10.5%
EBITDA $ 33 $ 89 $ 199 $ 282 $ 668 $ 1,256 $ 2,163 $ 3,506 $ 4,972 $ 6,295 $ 6,693 $ 7,116 $ 7,564 $ 8,039 $ 8,441
% of revenue 30.4% 37.1% 42.5% 43.2% 55.6% 56.3% 57.1% 57.8% 58.6% 59.3% 60.1% 60.8% 61.6% 62.3% 62.3%
- D & A (Op Ex) $ 9 $ 25 $ 38 $ 46 $ 67 $ 141 $ 268 $ 475 $ 728 $ 990 $ 1,123 $ 1,267 $ 1,422 $ 1,590 $ 1,670
% of revenue 8.8% 10.4% 8.1% 7.1% 5.6% 6.3% 7.1% 7.8% 8.6% 9.3% 10.1% 10.8% 11.6% 12.3% 12.3%
EBIT (oper profits) $ 23 $ 64 $ 161 $ 235 $ 601 $ 1,115 $ 1,895 $ 3,032 $ 4,244 $ 5,305 $ 5,571 $ 5,849 $ 6,142 $ 6,449 $ 6,771
% of revenue 21.7% 26.7% 34.4% 36.1% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
- Taxes $ 2 $ (2) $ 17 $ 29 $ 81 $ 135 $ 230 $ 368 $ 515 $ 644 $ 676 $ 710 $ 745 $ 782 $ 822
% of EBIT 7.7% -2.9% 10.5% 12.3% 13.5% 12.1% 12.1% 12.1% 12.1% 12.1% 12.1% 12.1% 12.1% 12.1% 12.1%
NOPAT $ 21 $ 66 $ 144 $ 206 $ 519 $ 979 $ 1,665 $ 2,664 $ 3,729 $ 4,662 $ 4,895 $ 5,140 $ 5,396 $ 5,666 $ 5,950
% of revenue 20.0% 27.5% 30.8% 31.6% 43.2% 43.9% 43.9% 43.9% 43.9% 43.9% 43.9% 43.9% 43.9% 43.9% 43.9%
*SEC 10K filings / Annual Reports/Estimates

41. Baidu - FCF
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 9 $ 25 $ 38 $ 46 $ 67 $ 141 $ 268 $ 475 $ 728 $ 990 $ 1,123 $ 1,267 $ 1,422 $ 1,590 $ 1,670
% of revenue 8.8% 10.4% 8.1% 7.1% 5.6% 6.3% 7.1% 7.8% 8.6% 9.3% 10.1% 10.8% 11.6% 12.3% 12.3%
- CapEx $ 22 $ 84 $ 67 $ 66 $ 148 $ 275 $ 467 $ 748 $ 1,047 $ 1,308 $ 1,374 $ 1,442 $ 1,514 $ 1,590 $ 1,670
% of revenue 20.3% 35.0% 14.3% 10.1% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3% 12.3%
Working Capital $ (36) $ (74) $ (98) $ (167) $ (298) $ (554) $ (941) $ (1,506) $ (2,108) $ (2,635) $ (2,767) $ (2,905) $ (3,050) $ (3,203)
% of revenue -33.8% -31.0% -20.9% -25.6% -24.8% -24.8% -24.8% -24.8% -24.8% -24.8% -24.8% -24.8% -24.8% -24.8%
- WC Investment n/a $ (38) $ (24) $ (69) $ (132) $ (255) $ (387) $ (565) $ (602) $ (527) $ (132) $ (138) $ (145) $ (153) $ (160)
% of revenue n/a -15.9% -5.1% -10.5% -11.0% -11.5% -10.2% -9.3% -7.1% -5.0% -1.2% -1.2% -1.2% -1.2% -1.2%
FCF n/a $ 45 $ 139 $ 255 $ 570 $ 1,101 $ 1,853 $ 2,955 $ 4,013 $ 4,870 $ 4,776 $ 5,102 $ 5,450 $ 5,819 $ 6,110
% of revenue n/a 18.8% 29.6% 39.2% 47.5% 49.4% 48.9% 48.8% 47.3% 45.9% 42.9% 43.6% 44.4% 45.1% 45.1%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) 5.0% $ 1,007 $ 1,551 $ 2,263 $ 2,810 $ 3,120 $ 2,799 $ 2,735 $ 2,673 $ 2,611 $ 63,542
*SEC 10K filings / Annual Reports/Estimates

42. Oracle – NOPAT
Millions USD Actuals Best View Estimates
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
Total Revenue $ 14,380 $ 17,996 $ 22,430 $ 23,252 $ 26,820 $ 35,622 $ 40,965 $ 45,062 $ 47,315 $ 49,681 $ 52,165 $ 54,773 $ 57,512 $ 60,387 $ 63,407
% growth rate n/a 25.1% 24.6% 3.7% 15.3% 32.8% 15.0% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
- COGS $ 3,225 $ 4,165 $ 4,191 $ 4,794 $ 5,764 $ 8,398 $ 8,872 $ 9,759 $ 10,247 $ 10,759 $ 11,297 $ 11,862 $ 12,455 $ 13,078 $ 13,732
% of revenue 22.4% 23.1% 18.7% 20.6% 21.5% 23.6% 21.7% 21.7% 21.7% 21.7% 21.7% 21.7% 21.7% 21.7% 21.7%
Gross Profit $ 11,155 $ 13,831 $ 18,239 $ 18,458 $ 21,056 $ 27,224 $ 32,094 $ 35,303 $ 37,068 $ 38,921 $ 40,868 $ 42,911 $ 45,056 $ 47,309 $ 49,675
% of revenue 77.6% 76.9% 81.3% 79.4% 78.5% 76.4% 78.3% 78.3% 78.3% 78.3% 78.3% 78.3% 78.3% 78.3% 78.3%
- Operating Exp $ 6,409 $ 7,831 $ 9,605 $ 10,137 $ 11,218 $ 14,616 $ 17,571 $ 19,329 $ 20,295 $ 21,310 $ 22,375 $ 23,494 $ 24,669 $ 25,902 $ 27,197
% of revenue 44.6% 43.5% 42.8% 43.6% 41.8% 41.0% 42.9% 42.9% 42.9% 42.9% 42.9% 42.9% 42.9% 42.9% 42.9%
- SG&A (Op Ex) $ 6,186 $ 7,582 $ 9,337 $ 9,874 $ 8,947 $ 11,901 $ 14,795 $ 16,656 $ 17,889 $ 19,203 $ 20,605 $ 22,098 $ 23,689 $ 25,384 $ 26,653
% of revenue 43.0% 42.1% 41.6% 42.5% 33.4% 33.4% 36.1% 37.0% 37.8% 38.7% 39.5% 40.3% 41.2% 42.0% 42.0%
EBITDA $ 4,969 $ 6,249 $ 8,902 $ 8,584 $ 12,109 $ 15,323 $ 17,298 $ 18,647 $ 19,179 $ 19,718 $ 20,263 $ 20,813 $ 21,367 $ 21,925 $ 23,021
% of revenue 34.6% 34.7% 39.7% 36.9% 45.1% 43.0% 42.2% 41.4% 40.5% 39.7% 38.8% 38.0% 37.2% 36.3% 36.3%
- D & A (Op Ex) $ 223 $ 249 $ 268 $ 263 $ 2,271 $ 2,715 $ 2,776 $ 2,673 $ 2,406 $ 2,106 $ 1,771 $ 1,396 $ 979 $ 518 $ 544
% of revenue 1.6% 1.4% 1.2% 1.1% 8.5% 7.6% 6.8% 5.9% 5.1% 4.2% 3.4% 2.5% 1.7% 0.9% 0.9%
EBIT (oper profits) $ 4,746 $ 6,000 $ 8,634 $ 8,321 $ 9,838 $ 12,608 $ 14,522 $ 15,974 $ 16,773 $ 17,612 $ 18,492 $ 19,417 $ 20,388 $ 21,407 $ 22,478
% of revenue 33.0% 33.3% 38.5% 35.8% 36.7% 35.4% 35.4% 35.4% 35.4% 35.4% 35.4% 35.4% 35.4% 35.4% 35.4%
- Taxes $ 1,429 $ 1,712 $ 2,313 $ 2,241 $ 2,108 $ 2,864 $ 3,671 $ 4,038 $ 4,240 $ 4,452 $ 4,675 $ 4,909 $ 5,154 $ 5,412 $ 5,682
% of EBIT 30.1% 28.5% 26.8% 26.9% 21.4% 22.7% 25.3% 25.3% 25.3% 25.3% 25.3% 25.3% 25.3% 25.3% 25.3%
NOPAT $ 3,317 $ 4,288 $ 6,321 $ 6,080 $ 7,730 $ 9,744 $ 10,851 $ 11,936 $ 12,533 $ 13,160 $ 13,818 $ 14,508 $ 15,234 $ 15,996 $ 16,795
% of revenue 23.1% 23.8% 28.2% 26.1% 28.8% 27.4% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5% 26.5%
*SEC 10K filings / Annual Reports/Estimates

43. Oracle - FCF
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assump.
+D&A $ 223 $ 249 $ 268 $ 263 $ 2,271 $ 2,715 $ 2,776 $ 2,673 $ 2,406 $ 2,106 $ 1,771 $ 1,396 $ 979 $ 518 $ 544
% of revenue 1.6% 1.4% 1.2% 1.1% 8.5% 7.6% 6.8% 5.9% 5.1% 4.2% 3.4% 2.5% 1.7% 0.9% 0.9%
- CapEx $ 236 $ 319 $ 243 $ 529 $ 230 $ 450 $ 351 $ 386 $ 406 $ 426 $ 447 $ 470 $ 493 $ 518 $ 544
% of revenue 1.6% 1.8% 1.1% 2.3% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9%
Working Capital $ (2,402) $ (2,166) $ (2,166) $ (2,191) $ (3,011) $ (3,999) $ (4,599) $ (5,059) $ (5,312) $ (5,577) $ (5,856) $ (6,149) $ (6,457) $ (6,779)
% of revenue -16.7% -12.0% -9.7% -9.4% -11.2% -11.2% -11.2% -11.2% -11.2% -11.2% -11.2% -11.2% -11.2% -11.2%
- WC Investment n/a $ 236 $ - $ (25) $ (820) $ (988) $ (600) $ (460) $ (253) $ (266) $ (279) $ (293) $ (307) $ (323) $ (339)
% of revenue n/a 1.3% 0.0% -0.1% -3.1% -2.8% -1.5% -1.0% -0.5% -0.5% -0.5% -0.5% -0.5% -0.5% -0.5%
FCF n/a $ 3,982 $ 6,346 $ 5,839 $ 10,591 $ 12,997 $ 13,876 $ 14,682 $ 14,786 $ 15,106 $ 15,420 $ 15,728 $ 16,028 $ 16,318 $ 17,134
% of revenue n/a 22.1% 28.3% 25.1% 39.5% 36.5% 33.9% 32.6% 31.3% 30.4% 29.6% 28.7% 27.9% 27.0% 27.0%
Present Value factor Industry WACC 9.3% 91.5% 83.7% 76.6% 70.0% 64.1% 58.6% 53.6% 49.0% 44.9% 44.9%
Present Value of FCF LTG (est) 5.0% $ 11,890 $ 11,612 $ 11,240 $ 10,355 $ 9,677 $ 9,037 $ 8,432 $ 7,861 $ 7,321 $ 178,197
*SEC 10K filings / Annual Reports/Estimates