Selection & justification of Methods chosen for valuation estimate of Starbucks/Dunkin Donuts Company's Market Share Market share=24.6%
Question:
Selection & justification of Methods chosen for valuation estimate of Starbucks/Dunkin Donuts
Company's Market Share
Market share=24.6%
Market share opportunity=60%
Sales in 2019= $1.37billion
Net Income=$242.02million
Gross profits= $708.5million
Gross margin=gross profit/sales
$708.5million/1.37billion=0.52
Operating income=$242.02million
Operating margins=operation income/sales
Operating margin= $242.02million/1.37billion=0.177
Horizontal analysis
Percentage change= {(new value-previous)/previous value}*100%
Net sales in 2019=$0.2422billion, 2020=$1.25billion
Difference=$1.00798billion
Percentage change = {($1.25billion-$0.24202billion)/$0.24202billion}*100%=416%
please explain the valuation computation on that figures of dinkin doughnut.
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw