Executive Summary on Fundamentals

Based on the data collected on Value Line before for Toyota and Honda, together using the JLG FCF "patch" for two-stage FCF Valuation Model, we can come out with numbers more specified, which would support the analysis on stock prices we did last time, since we will be able to tell the consistency in ratios of each data on a company's financial statement, such growth rate in a row for 3 to 5 years, meanwhile with the ratios on stock prices, whether a potential in increasing or decreasing in the long run, will help us have a clear look into the future of each company we analyze.

In the table above, shows the data of Toyota of year 2013 and 2016 we input from VL, by calculating the growth rate from 2013 to 2016, we are able to generate the implied sales, EBITD, EBIT and finally to get the NOPAT in year 2014 and 2015, which are needed for further analysis. For Toyota, Sales has a 5.15% growth rate , while a 3.34% in OM, and a 6.98% in Depreciation, by which we have the NOPAT for each year from 2013 to 2016, starts from $18248.75 and grows to $23972.

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