This case is based on the Under Armour, Inc., consolidated financial statements in Appendix B and online in the filings section of www.sec.gov.

Requirements

1. Focus on the company's Consolidated Statements of Income for the three years ended December 31, 2014, as well as Note 2 summarizing the company's significant accounting policies. What is your evaluation of the quality of Under Armour, Inc.'s, earnings? Explain how you formed your opinion.

2. Refer to Note 16 to the Consolidated Financial Statements. How does Under Armour, Inc.'s, management define its operating regions? Which financial statement information does the company report by operating region? Which region appears to be the largest? What does this tell you about the international nature of Under Armour, Inc.'s, business?

3. At the end of 2014, how much would you have been willing to pay for one share of Under Armour, Inc.'s, stock if you had rated the investment as high risk? As low risk? Use even-numbered investment capitalization rates in the range of 4%-10% for your analysis, and use basic earnings per share for continuing operations.

4. Go to Under Armour, Inc.'s, website and get the current price of a share of its common stock. Which value that you estimated in requirement 3 is closest to the company's actual stock price?