Based on the provided source material, here is a comprehensive list of all formulas presented in the workbook, formatted in simple line format as requested:
Chapter 2: Financial Basics
- Present Value: PV = FV / (1 + r)^t.
- Future Value: FV = PV * (1 + r)^t.
- Weighted Average Cost of Capital: WACC = (D / TC) * Kd * (1 - t) + (E / TC) * Ke + (P / TC) * Kp.
- Cost of Equity (CAPM): Ke = Rf + β * (Rm - Rf).
- Cost of Equity (Alternative): Ke = Rf + β * (Equity Risk Premium).
- Beta (Statistical): βIM = Covim / σ²m.
- Beta (Correlation): βIM = ρim * (σi / σm).
- Sharpe Ratio (Risk-Adjusted Return): S = (R - Rf) / σ.
Chapter 3: Financial Ratios and Analysis
Liquidity Ratios
- Current Ratio: Current Ratio = Current Assets / Current Liabilities.
- Quick Ratio (Acid-Test): Quick Ratio = (Cash & Equivalents + Short-term Investments + Accounts Receivables) / Current Liabilities.
- Cash Ratio: Cash Ratio = (Cash + Cash & Equivalents + Invested Funds) / Current Liabilities.
Profitability and Return Ratios
- Gross Profit Margin: Gross Profit Margin = Gross Profit / Net Sales.
- Operating Profit Margin: Operating Profit Margin = Operating Profit / Net Sales.
- Pre-tax Profit Margin: Pre-tax Profit Margin = Pretax Profit / Net Sales.
- Net Profit Margin: Net Profit Margin = Net Profit / Net Sales.
- Effective Tax Rate: Effective Tax Rate = Income Tax Expense / Pretax Income.
- Return on Assets (ROA): ROA = Net Income / Average Total Assets.
- Return on Equity (ROE): ROE = Net Income / Average Shareholders’ Equity.
- Return on Capital Employed (ROCE): ROCE = Net Income / (Debt + Equity).
Debt and Leverage Ratios
- Debt Ratio: Debt Ratio = Total Liabilities / Total Assets.
- Debt-Equity Ratio: Debt-Equity Ratio = Total Liabilities / Shareholders Equity.
- Capitalization Ratio: Capitalization Ratio = Long term Debt / (Long term Debt + Shareholders’ Equity).
- Interest Coverage Ratio: Interest Coverage Ratio = EBIT / Interest Expenses.
- Cash Flow to Debt Ratio: Cash Flow to Debt Ratio = Operating Cash Flow / Total Debt.
Operating Performance Ratios
- Fixed-Asset Turnover Ratio: Fixed-Asset Turnover Ratio = Net Sales / Property, Plant & Equipment.
- Sales Per Employee: Sales Per Employee = Net Sales / Average Number of Employees.
DuPont Analysis
- DuPont ROE: ROE = (Net Income / Sales) * (Sales / Average Assets) * (Average Assets / Average Equity).
- Total Asset Turnover (TAT): TAT = Sales / Average Assets.
- Leverage Multiplier: Leverage Multiplier = Average Assets / Average Equity.
- Leverage Multiplier (Alternative 1): Leverage Multiplier = 1 / (1 - (Average Debt / Average Assets)).
- Leverage Multiplier (Alternative 2): Leverage Multiplier = 1 + (Average Debt / Average Equity).
- Extended DuPont Formula: ROE = (Net Income / EBIT) * (EBIT / EBITDA) * (EBITDA / Sales) * (Sales / Average Assets) * (Average Assets / Average Equity).
Cash Conversion Cycle (CCC)
- Cash Conversion Cycle: CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding.
Chapter 4: Valuation Methodologies
Dividend Discount Models (DDM)
- General DDM: Value per share of stock = Σ E(DPSt) / (1 + Ke)^t.
- Gordon Growth Model: Value per share of stock = DPS1 / (Ke - g).
- Expected Growth Rate: Expected Growth = Retention ratio * Return on equity.
- Stable Period Payout Ratio: Stable Payout Ratio = Stable Growth Rate / Stable Period ROE.
- Two-Stage Value: Value of the Stock = PV(Dividends during extraordinary phase) + PV(Terminal Price).
- Terminal Price (at year n): Pn = DPSn+1 / (Ke - gn).
Free Cash Flow Models (FCFF & FCFE)
- FCFF (from Net Income): FCFF = NI + NCC + I(1 - T) - FC - WC.
- FCFF (from EBIT): FCFF = EBIT(1 - T) + NCC - FC - WC.
- FCFF (from CFO): FCFF = CFO - FC + I(1 - t).
- FCFE (from FCFF): FCFE = FCFF + Net Borrowing - I(1 - T).
- FCFE (from Net Income): FCFE = NI + NCC - FC - WC + Net Borrowing.
- FCFE (from CFO): FCFE = CFO + Net Borrowing - FC.
- FCFE Terminal Value: TV = FCFEt / (Ke - g).
- FCFE (Constant Debt Ratio): FCFE = NI - (1 - DR) * (Capital Spending - Depreciation) - (1 - DR) * Change in WC.
Relative Valuation Multiples
- Price / Earnings Ratio: PE = Market Price per Share / Earnings Per Share.
- Price / Book Value Ratio: P/B Ratio = Stock Price / (Total Assets - Intangible Assets and Liabilities).
- Enterprise Value / EBITDA Multiplier: EV/EBITDA = (Market Value of Equity + Market Value of Debt - Cash) / EBITDA.
- Price / Sales Ratio: P/S = Market Cap / Revenues.
- Price / Sales Ratio (Per Share): P/S = Stock Price / Sales per Share.
Banking and Financial Service Ratios
- Net Interest Margin (NIM): NIM = (Interest income - Interest expenses) / Average earning assets.
- Operating Profit Margin (OPM): OPM = (Net Interest Income - Operating Expenses) / Total Interest Income.
- Cost to Income Ratio: Cost to Income Ratio = Operating Expenses / (NII + Non-interest income).
- Capital Adequacy Ratio (CAR): CAR = (Tier I capital + Tier II capital) / Risk weighted assets.
- NPA Ratio: NPA Ratio = Net non-performing assets / Loans given.
- Provision Coverage Ratio: Provision Coverage Ratio = (Cumulative provisions) / Gross NPAS.