1. CALCULATION OF EVA, MVA & EV
Name of Company AstraZeneca Year 2013
Short-Term Debt $1,788,000,000.00 From Balance Sheet - End of Previous Year
Long-Term Debt $8,588,000,000.00
Preferred Dividend $ per
share
Preferred Stock Price
per share
From Balance Sheet -
End of Previous Year
Preferred Stock $0.00 $0.00 $0.00
From Balance Sheet -
End of Previous Year
Common Stock $315,000,000.00 From Balance Sheet - End of Previous Year
Paid-In Capital $3,983,000,000.00 From Balance Sheet - End of Previous Year
Retained Earnings $16,960,000,000.00 From Balance Sheet - End of Previous Year
Total Invested Capital $31,634,000,000.00 Computer Calculates
Price of Stock $81.98 Current Market Data
Number of Shares Outstanding 1,257,000,000.00 On Reuters' Balance Sheet Data - Current Year
EBIT $3,712,000,000.00 Calculate from Income Statement - Current Year
Less: Taxes $696,000,000.00 Computer Calculates
Equals NOPAT $3,016,000,000.00 Computer Calculates
Rate on Short-Term Debt 5.31% Before Tax Rate From Bloomberg WACC - Current Year
Rate on Long-Term Debt 5.70% Before Tax Rate From Bloomberg WACC - Current Year
Market Risk Premium 6.00% Normally 5% - 6%
Risk-Free Rate (L/T Treasury bond) 5.00% Current Rate on 10yr. Treasury Bond
Debt to Equity Ratio 0.49 Computer Calculates
Beta of Stock 0.5 From Reuters' Ratio Data - Current
Cost of Preferred Stock 0.00% Computer Calculates
Cost of Equity Capital 8.000% % S-T Debt % L-T Debt % Equity % Preferred Stock
WACC 7.22% 5.65% 27.15% 67.20% 0.00%
Analysis is Computer Generated
CALCULATION OF EVA - ECONOMIC VALUE ADDED
EBIT Less: Taxes
Equals: NOPAT (Net
Operating Profit After
Tax) Invested Capital WACC Capital Charge
EVA (NOPAT -
Capital Charge)
$3,712,000,000.00 $696,000,000.00 $3,016,000,000.00 $31,634,000,000.00 7.22% $2,285,098,800.00 $730,901,200.00
Return on Invested Capital 9.53% NOPAT/Inv. Capital
Firm is Creating Shareholder Wealth
CALCULATION OF MVA - MARKET VALUE ADDED
Less: Cash & Cash Equiv
*Market Value of
Equity
**Plus: Market Value
of Debt
Equals: Market Value of
Firm
***Minus: Total Invested
Capital Equals: MVA
9,297,000,000.00$ $103,048,860,000.00 $10,376,000,000.00 $113,424,860,000.00 $31,634,000,000.00 $81,790,860,000.00
Plus: Minority Interest Firm is Creating Shareholder Wealth
15,000,000.00$ Enterprise Value (EV) $104,142,860,000.00
*=P0 * Shares Outstanding EBITDA 5,660,000,000.00$
**=ST Debt + LT Debt EV/EBITDA 18.39979859
***=Common Stock + Paid-In Capital + Retained Earnings
****MVA =Mkt Value of Firm - Total Invested Capital