ratio than GAP. However the difference between both companies’ Operating Income Margin is decreased apparently in 2008.
(2) Additional Measures of Efficiency
Calculation
Sales / Long Term Assets
Abercrombie 2006 2007 2008
3,318,158 / 1,155,989 3,749,847 / 1,427,343 3,540,276 / 1,763,356
2.87040 2.62715 2.00769
GAP 2006 2007 2008
15,923 / 3,515 15,763 / 3,752 14,526 / 3,559
3. Ratio analysis
Test of Profitability
1) Return on Equity (ROE)
Return on equity relates income earned to the investment made by owner. This ratio reflects the simple fact that investors expect to earn more money if they invest more money. SK Energy’s ROE in 2008 is 13.1% (I already explained this measure above). As a result, SK Energy earned 13.1 percent on the owner’s investment. By co
of condition of assets.
This approach coincides ‘Matching Principle’ well.
F.PER & PBR of DSME
Valuation based on price-earnings multiple
Valuation based on theratioof
market price to book value of Equity
As you see the table, we can suggest to buy the DSME’s stock because the table shows us this stock is undervalued. But we, theinvestors have to recognize the limitations of mul
the Korean market. They note that Korean customers tend to prefer foreign brands so they can convey a sense of having a high social status.
2. Analysis of ZARA
1) Introduction of ZARA
① The history of ZARA
1963~1974 Foundation of Amancio Ortega Gaona INTITEX
1975 Open the first ZARA store in Spain
1976~1984 Spreading the ZARA store in the main cuties of Spain
1985 Overseas expan
Ratios>
Solvency Ratios
2007
2008
2009
2010
Debt Ratio
0.779
0.762
0.745
0.692
Debt to Equity Ratio
3.519
3.194
2.919
2.247
Long Term Debt to Total Capitalization Ratio
0.562
0.402
0.209
0.433
Numger of Time Interest Earned Ratio
3.555
1.089
0.959
2.053
Operating Cash Flow to Interest Expenses
7.053
3.291
3.099
5.129
① Debt RatioTheratioofThe coff
두산건설
두산건설의 재무제표를 살펴보면 2008년을 제외하고 EPS가 꾸준히 성장하는 것을 볼 수 있는데 이것은 두산이 꾸준한 성장을 하고 있다는 것을 알 수 있고 이것을 뒷받침하는 두산의 최근 동향을 살펴보면 2010년 8월 두산건설이 두산 메카텍을 흡수합병을 하기로 동의하고 11월 합병을 통해 201
GDP = GNP(Gross National Product) - Net income from abroad.
This is used as an indicator of purely domestic economic activity of one country.
Byucksan Construction makes a contract Workout memorandum of understanding (MOU)
Byucksan Construction suffered from long period of real estate market stagnation.
Respite amortization of Byucksan Construction with bank creditor until the end of
ratio given, text book suggests using APV method instead of using WACC and NPV.
APV = Base-case NPV + PV of financing effect
※Base-case NPV : NPV without debt financing
※Financing effect : Effect of using debt financing
However, APV method needs information about the size of debt financing.
For now, we will use given Market ratio for calculation.
Market ratio : 34.4
Ⅱ. Analysis & Valuation process
Cost of Equity
The cost of equity is a key ingredient of every discounted cash flow model. It is difficult to estimate because it is an implicit cost and can vary widely across different investors in the same company.
① Risk Free Rate
There can be no default risk, which generally implies that the security has to be issued by a government. Note, though,
(3) Company history
Jan 2010 Inauguration of Sang-tae Park, Incumbent CEO
Jun 2009 Acquire license ofthe business and the patent right from DYVill
Sep 2008 HQ relocation from Yeoido-dong to Ahyoen-dong
Oct 2007 Certified for ISO 9001:2000
Jul 2006 Registered at KOSDAQ
APL 2004 Forged a strategic alliance with Wincor-Nixdorf, world-famous CD/ATM manufa