UPS, Day 2 // Valuation (BAV, Tuesday, Week 7)

Multiples: one methodology
-- Include best-in-breed premium?
-- Only one comparable (FedEx), and not really comparable

Abnormal Earnings Valuation: five basic inputs
-- Sales growth
-- NOPAT growth => operating ROE; separates out operating performance from financing decisions
-- NWC/Sales => how efficiently the company manages short-term assets/liabilities
-- LTA/Sales => how efficiently the company uses long-term assets
-- Leverage

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