Financial Report Adidas
Student number: 0880732
Term paper
Handelshøyskolen BI
- Adidas AG -
Exam code and name
EXC 25093 Financial Statements and Valuation
Hand-in date:
15.04.2011
Place of study:
BI Oslo
Program:
Bachelor in Business and Administration
Table of contents
Summary ii
Adidas 1
Sports Apparel Industry 1
Economic Situation 2 - Financial Statement Evaluation 2 - Profitability ratios 3 - Efficiency ratios 4 - Liquidity and cash flow ratios 5 - Investment ratios 5
Multiple Comparisons Valuation Model 6
Forecasting Fiscal Years 2011-2014 7 - Sales growth 7 - EBIT margin 7 - Inflation 7 - Capital Expenditures 8 - Depreciation 8 - Amortization 8 - Net operating working capital 8 - Tax and interest income/expense 8
Free Cash Flow Valuation Model 9 - FCFNOA 10 - Beta Equity 10 - Cost of equity 11 - Weighted average cost of capital 12 - Value of equity 12
Conclusion 13
References 14
Appendix 1: Reformulated Balance Sheet Adidas € mill 15
Appendix 2: Reformulated Balance Sheet PUMA € mill 16
Appendix 3: Reformulated Income Statement 17
Appendix 4: Ratios for Adidas 18
Appendix 5: Ratios for Puma 19
Appendix 6: Multiple analyses 21
Appendix 7: FCF Valuation Model: Economic Balance Sheet 22
Summary
The purpose of this report is to evaluate how the Adidas Group did during the recent three years in respect of financial statements ratio. Furthermore, it will provide an assessment of the intrinsic value of the shares of Adidas AG.
The first part of this report will briefly describe Adidas and the industry it’s competing in. Further on, there will be used a cross-sectional analyses to evaluate the performance and to compare Adidas to a competing company. The chosen company is Puma, due to equal fiscal years.
The second part
Term paper
Handelshøyskolen BI
- Adidas AG -
Exam code and name
EXC 25093 Financial Statements and Valuation
Hand-in date:
15.04.2011
Place of study:
BI Oslo
Program:
Bachelor in Business and Administration
Table of contents
Summary ii
Adidas 1
Sports Apparel Industry 1
Economic Situation 2 - Financial Statement Evaluation 2 - Profitability ratios 3 - Efficiency ratios 4 - Liquidity and cash flow ratios 5 - Investment ratios 5
Multiple Comparisons Valuation Model 6
Forecasting Fiscal Years 2011-2014 7 - Sales growth 7 - EBIT margin 7 - Inflation 7 - Capital Expenditures 8 - Depreciation 8 - Amortization 8 - Net operating working capital 8 - Tax and interest income/expense 8
Free Cash Flow Valuation Model 9 - FCFNOA 10 - Beta Equity 10 - Cost of equity 11 - Weighted average cost of capital 12 - Value of equity 12
Conclusion 13
References 14
Appendix 1: Reformulated Balance Sheet Adidas € mill 15
Appendix 2: Reformulated Balance Sheet PUMA € mill 16
Appendix 3: Reformulated Income Statement 17
Appendix 4: Ratios for Adidas 18
Appendix 5: Ratios for Puma 19
Appendix 6: Multiple analyses 21
Appendix 7: FCF Valuation Model: Economic Balance Sheet 22
Summary
The purpose of this report is to evaluate how the Adidas Group did during the recent three years in respect of financial statements ratio. Furthermore, it will provide an assessment of the intrinsic value of the shares of Adidas AG.
The first part of this report will briefly describe Adidas and the industry it’s competing in. Further on, there will be used a cross-sectional analyses to evaluate the performance and to compare Adidas to a competing company. The chosen company is Puma, due to equal fiscal years.
The second part
References: - Sutton, Tim. 2004. Corporate Financial Accounting and Reporting. 2nd ed. Essex, England: Prentice Hall - Garrisons, Ray., Noreen, Eric., and Brewer, Peter