UNDER ARMOUR VALUATION AND FORECASTS

spreadsheet completed on 7/1/2019

Spreadsheet contains explanation
Discounted Cash Flow Model compiles revenue and operating income numbers to forecast growth for five years

Financial Ratios measuring metrics like current ratio, inventory ratio, and debt ratio

Price Ratio Analysis uses sales, cash flow, and earnings per share numbers to find a trading range
 UAA DISCOUNTED CASH FLOW MO
x Historical
Period Ending: 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019
Total Revenue $ 3,963,313 $ 4,833,338 $ 4,989,244 $ 5,193,185 $ 5,383,080
Revenue Growth Rate 21.95% 3.23% 4.09% 3.66%
Operating Income (EBIT) $ 401,313 $ 414,716 $ 24,229 $ (34,220) $ 249,408
Operating Margin 10.13% 8.58% 0.49% -0.66% 4.63%
(-) Tax $ 154,112.00 $ 131,303.00 $ 37,951.00 $ (20,552.00) $ (95,777.36)
(+) Depreciation $ 100,940 $ 144,770 $ 174,001 $ 182,022 $ 168,687.39
% of Revenue 2.55% 3.00% 3.49% 3.51% 3.13%
(-) Capital Expenditures $ (298,928) $ (386,746) $ (281,339) $ (170,385) $ (329,227.25)
% of Revenue -7.54% -8.00% -5.64% -3.28% -6.12%
(-) Change in Net Working Capital $ (107,819) $ 259,384 $ (2,033) $ 347 $ 35,152
% of Revenue -2.72% 5.37% -0.04% 0.01% 0.65%
Free Cash Flow $ 754,888 $ 555,545 $ 443,651 $ 338,392 $ 807,947
PV of Free Cash Flow (discounted) $ 698,324 $ 513,918 $ 410,408 $ 313,036 $ 747,407
 UAA INCOME STATEMENT
Period Ending: 12/31/2015 12/31/2016 12/31/2017 12/31/2018
Total Revenue $ 3,963,313 $ 4,833,338 $ 4,989,244 $ 5,193,185
Cost of Revenue $ 2,057,766 $ 2,584,724 $ 2,737,830 $ 2,852,714
Gross Profit $ 1,905,547 $ 2,248,614 $ 2,251,414 $ 2,340,471
Operating Expenses
Research and Development $ - $ - $ -
Sales, General and Admin. $ 1,497,000 $ 1,831,143 $ 2,099,522 $ 2,182,339
Non-Recurring Items $ - $ - $ 124,049 $ 183,149
Other Operating Items $ - $ - $ - $ -
Operating Income $ 408,547 $ 417,471 $ 27,843 $ (25,017)
Add'l income/expense items $ (7,234) $ (2,755) $ (3,614) $ (9,203)
Earnings Before Interest and Tax $ 401,313 $ 414,716 $ 24,229 $ (34,220)
Interest Expense $ 14,628 $ 26,434 $ 34,538 $ 33,568
Earnings Before Tax $ 386,685 $ 388,282 $ (10,309) $ (67,788)
Income Tax $ 154,112 $ 131,303 $ 37,951 $ (20,552)
Minority Interest $ - $ - $ - $ -
Equity Earnings/Loss Unconsolidated Su $ - $ - $ - $ 934
Net Income-Cont. Operations $ 232,573 $ 256,979 $ (48,260) $ (46,302)
Net Income $ 232,573 $ 256,979 $ (48,260) $ (46,302)
Net Income Applicable to Common Sh $ 232,573 $ 197,979 $ (48,260) $ (46,302)

UAA BALANCE SHEET

Period Ending: 12/31/2015 12/31/2016 12/31/2017 12/31/2018
Current Assets
Cash and Cash Equivalents $ 129,852 $ 250,470 $ 312,483 $ 557,403
Short-Term Investments $ - $ - $ - $ -
Net Receivables $ 433,638 $ 622,685 $ 609,670 $ 652,546
Inventory $ 783,031 $ 917,491 $ 1,158,548 $ 1,019,496
Other Current Assets $ 152,242 $ 174,507 $ 256,978 $ 364,183
Total Current Assets $ 1,498,763 $ 1,965,153 $ 2,337,679 $ 2,593,628
Long-Term Assets
Long-Term Investments $ - $ - $ - $ -
Fixed Assets $ 538,531 $ 804,211 $ 885,774 $ 826,868
Goodwill $ 585,181 $ 563,591 $ 555,674 $ 546,494
Intangible Assets $ 75,686 $ 64,310 $ 46,995 $ 41,793
Other Assets $ 75,652 $ 110,204 $ 97,444 $ 123,819
Deferred Asset Charges $ 92,157 $ 136,862 $ 82,801 $ 112,420
Total Assets $ 2,865,970 $ 3,644,331 $ 4,006,367 $ 4,245,022
Current Liabilities
Accounts Payable $ 393,395 $ 618,429 $ 857,949 $ 901,299
Short-Term Debt / Current Portion of Lo $ 42,000 $ 27,000 $ 152,000 $ 25,000
Other Current Liabilities $ 43,415 $ 40,387 $ 50,426 $ 389,678
Total Current Liabilities $ 478,810 $ 685,816 $ 1,060,375 $ 1,315,977
Long-Term Debt $ 624,070 $ 790,388 $ 765,046 $ 703,834
Other Liabilities $ 94,868 $ 137,227 $ 162,304 $ 208,340
Deferred Liability Charges $ - $ - $ - $ -
Misc. Stocks $ - $ - $ - $ -
Minority Interest $ - $ - $ - $ -
Total Liabilities $ 1,197,748 $ 1,613,431 $ 1,987,725 $ 2,228,151
Stock Holders Equity
Common Stocks $ 144 $ 145 $ 146 $ 148
Capital Surplus $ 636,558 $ 823,484 $ 872,266 $ 916,628
Retained Earnings $ 1,076,533 $ 1,259,414 $ 1,184,441 $ 1,139,082
Treasury Stock $ - $ - $ - $ -
Other Equity $ (45,013) $ (52,143) $ (38,211) $ (38,987)
Total Equity $ 1,668,222 $ 2,030,900 $ 2,018,642 $ 2,016,871
Total Liabilities & Equity $ 2,865,970 $ 3,644,331 $ 4,006,367 $ 4,245,022

UAA STATEMENT OF CASH FLOWS

Period Ending: 12/31/2015 12/31/2016 12/31/2017 12/31/2018
Net Income $ 232,573 $ 256,979 $ (48,260) $ (46,302)
Cash Flows-Operating Activities
Depreciation $ 100,940 $ 144,770 $ 174,001 $ 182,022
Net Income Adjustments $ 176,166 $ 132,323 $ 248,968 $ (203,587)
Changes in Operating Activities
Accounts Receivable $ (191,876) $ (249,853) $ (79,106) $ 186,834
Changes in Inventories $ (278,524) $ (148,055) $ (222,391) $ 109,919
Other Operating Activities $ (76,476) $ (23,029) $ (52,106) $ (107,855)
Liabilities $ 51,738 $ 253,488 $ 216,354 $ 507,199
Net Cash Flow-Operating $ 14,541 $ 366,623 $ 237,460 $ 628,230
Cash Flows-Investing Activities
Capital Expenditures $ (298,928) $ (386,746) $ (281,339) $ (170,385)
Investments $ (6,534) $ 6,482 $ - $ (39,207)
Other Investing Activities $ (542,013) $ (875) $ (1,648) $ 6,688
Net Cash Flows-Investing $ (847,475) $ (381,139) $ (282,987) $ (202,904)
Cash Flows-Financing Activities
Sale and Purchase of Stock $ 10,310 $ 15,485 $ 11,540 $ 2,580
Net Borrowings $ 384,798 $ 156,851 $ 98,000 $ (190,000)
Other Financing Activities $ (12,728) $ (16,603) $ (2,781) $ (2,437)
Net Cash Flows-Financing $ 381,433 $ 146,114 $ 106,759 $ (189,868)
Effect of Exchange Rate $ (11,822) $ (8,725) $ 4,178 $ 12,467
Net Cash Flow $ (463,323) $ 122,873 $ 65,410 $ 247,925

Tax Rate 30% 30% 30% 30%

NTED CASH FLOW MODEL
Forecasts
12/31/2020 12/31/2021 12/31/2022 12/31/2023
DCF ASSUMPTIONS
$ 5,591,520 $ 5,802,005 $ 6,023,540 $ 6,251,911
3.87% 3.76% 3.82% 3.79% Effective Tax Rate 38%
$ 259,065 $ 268,817 $ 279,081 $ 289,662 WACC% 8.10%
4.63% 4.63% 4.63% 4.63%
$ (99,485.97) $ (103,230.99) $ (107,172.61) $ (111,235.85) Terminal EBITDA Multiple: 8.5%
$ 175,219.17 $ 181,815.07 $ 188,757.22 $ 195,913.59
3.13% 3.13% 3.13% 3.13% Terminal Growth Rate: 2%
$ (341,975.32) $ (354,848.55) $ (368,397.54) $ (382,364.63) Terminal Value: $ 24,621.27
-6.12% -6.12% -6.12% -6.12%
$ 36,513.58 $ 37,888.09 $ 39,334.75 $ 40,826.05 PV of Terminal Value: $ 273,433.79
0.65% 0.65% 0.65% 0.65% Sum of PV of Cash Flows: $ 4,360,426
$ 839,232 $ 870,824 $ 904,074 $ 938,350 Enterprise Value $ 4,633,860.16
$ 718,175 $ 689,371 $ 662,066 $ 635,677
PV of FCF ('19-'22) $ 2,817,019
Terminal Value '23 (est) $ 15,382,787
PV Terminal Valve '23 $ 11,265,028
(est) Value of Operations $ 14,082,047
Per Share Price $ 74.90
Period Ending: 12/31/2015 12/31/2016 12/31/2017 12/31/2018
Liquidity
Current Ratio 313% 287% 220% 197%
Quick Ratio 149% 153% 111% 120%
Asset Management
Inventory Turnover Ratio 2.63 2.82 2.36 2.80
Days Sales In Recieveables 39.94 47.02 44.60 45.86
Total Assets Turnover 1.38 1.33 1.25 1.22
Debt Management
Debt Ratio 42% 44% 50% 52%
Times Interest Earned 27.43 15.69 0.70 -1.02
Profitability
Profit Margin 5.87% 4.10% -0.97% -0.89%
Net Return On Assets ROA 8.11% 5.43% -1.20% -1.09%
Return On Common Equity ROE $0.14 $0.10 -$0.02 -$0.02
 UAA PRICE RATIO ANALYSIS
Period Ending: 12/31/2018 12/31/2017 12/31/2016 12/31/2015 Average

Sales Per Share $ 11.58 $ 11.26 $ 11.01 $ 9.17

Price/sps 1.53 1.28 2.64 4.40 2.46

Cash Flow Per Share $ 4.81 $ 4.67 $ 4.78 $ 4.18

Price/cfps 3.67 3.09 6.08 9.65 5.62

Eps $ 5.22 $ 5.06 $ 5.11 $ 4.41

Price/eps 3.39 2.85 5.68 9.14 5.27

Closing Prices $ 17.67 $ 14.43 $ 29.05 $ 40.31

Dep and Amort $ 181,768.00 $ 173,747.00 $ 144,770.00 $ 100,940.00
Shares Outstanding 448,582.28 442,082.50 438,438.96 432,192.94
TRADING RANG

Sales $ 5,193,185.00 $ 4,976,553.00 $ 4,825,335.00 $ 3,963,313.00 low

Cost of Goods Sold $ 2,852,714.00 $ 2,737,830.00 $ 2,584,724.00 $ 2,057,766.00 $27.06
Net Income $ 2,340,471.00 $ 2,238,723.00 $ 2,240,611.00 $ 1,905,547.00
Cash Flow $ 2,158,703.00 $ 2,064,976.00 $ 2,095,841.00 $ 1,804,607.00
 Avg x Most Recent

$28.49

$27.06

$27.47

TRADING RANGE

high
$28.49
 UAA INCOME STATEMENT
Period Ending: 12/31/2018 12/31/2017 12/31/2016 12/31/2015
Total Revenue $ 5,193,185 $ 4,989,244 $ 4,833,338 $ 3,963,313
Cost of Revenue $ 2,852,714 $ 2,737,830 $ 2,584,724 $ 2,057,766
Gross Profit $ 2,340,471 $ 2,251,414 $ 2,248,614 $ 1,905,547
Operating Expenses
Research and Development $ - $ - $ - $ -
Sales, General and Admin. $ 2,182,339 $ 2,099,522 $ 1,831,143 $ 1,497,000
Non-Recurring Items $ 183,149 $ 124,049 $ - $ -
Other Operating Items $ - $ - $ - $ -
Operating Income $ (25,017) $ 27,843 $ 417,471 $ 408,547
Add'l income/expense items $ (9,203) $ (3,614) $ (2,755) $ (7,234)
Earnings Before Interest and Tax $ (34,220) $ 24,229 $ 414,716 $ 401,313
Interest Expense $ 33,568 $ 34,538 $ 26,434 $ 14,628
Earnings Before Tax $ (67,788) $ (10,309) $ 388,282 $ 386,685
Income Tax $ (20,552) $ 37,951 $ 131,303 $ 154,112
Minority Interest $ - $ - $ - $ -
Equity Earnings/Loss Unconsolidated Subsidiary $ 934 $ - $ - $ -
Net Income-Cont. Operations $ (46,302) $ (48,260) $ 256,979 $ 232,573
Net Income $ (46,302) $ (48,260) $ 256,979 $ 232,573
Net Income Applicable to Common Shareholders $ (46,302) $ (48,260) $ 197,979 $ 232,573
 UAA BALANCE SHEET
Period Ending: 12/31/2018 12/31/2017 12/31/2016 12/31/2015
Current Assets
Cash and Cash Equivalents $ 557,403 $ 312,483 $ 250,470 $ 129,852
Short-Term Investments $ - $ - $ - $ -
Net Receivables $ 652,546 $ 609,670 $ 622,685 $ 433,638
Inventory $ 1,019,496 $ 1,158,548 $ 917,491 $ 783,031
Other Current Assets $ 364,183 $ 256,978 $ 174,507 $ 152,242
Total Current Assets $ 2,593,628 $ 2,337,679 $ 1,965,153 $ 1,498,763
Long-Term Assets
Long-Term Investments $ - $ - $ - $ -
Fixed Assets $ 826,868 $ 885,774 $ 804,211 $ 538,531
Goodwill $ 546,494 $ 555,674 $ 563,591 $ 585,181
Intangible Assets $ 41,793 $ 46,995 $ 64,310 $ 75,686
Other Assets $ 123,819 $ 97,444 $ 110,204 $ 75,652
Deferred Asset Charges $ 112,420 $ 82,801 $ 136,862 $ 92,157
Total Assets $ 4,245,022 $ 4,006,367 $ 3,644,331 $ 2,865,970
Current Liabilities
Accounts Payable $ 901,299 $ 857,949 $ 618,429 $ 393,395
Short-Term Debt / Current Portion of Long-T $ 25,000 $ 152,000 $ 27,000 $ 42,000
Other Current Liabilities $ 389,678 $ 50,426 $ 40,387 $ 43,415
Total Current Liabilities $ 1,315,977 $ 1,060,375 $ 685,816 $ 478,810
Long-Term Debt $ 703,834 $ 765,046 $ 790,388 $ 624,070
Other Liabilities $ 208,340 $ 162,304 $ 137,227 $ 94,868
Deferred Liability Charges $ - $ - $ - $ -
Misc. Stocks $ - $ - $ - $ -
Minority Interest $ - $ - $ - $ -
Total Liabilities $ 2,228,151 $ 1,987,725 $ 1,613,431 $ 1,197,748
Stock Holders Equity
Common Stocks $ 148 $ 146 $ 145 $ 144
Capital Surplus $ 916,628 $ 872,266 $ 823,484 $ 636,558
Retained Earnings $ 1,139,082 $ 1,184,441 $ 1,259,414 $ 1,076,533
Treasury Stock $ - $ - $ - $ -
Other Equity $ (38,987) $ (38,211) $ (52,143) $ (45,013)
Total Equity $ 2,016,871 $ 2,018,642 $ 2,030,900 $ 1,668,222
Total Liabilities & Equity $ 4,245,022 $ 4,006,367 $ 3,644,331 $ 2,865,970
 UAA STATEMENT OF CASH FLOWS
Period Ending: 12/31/2018 12/31/2017 12/31/2016 12/31/2015
Net Income $ (46,302) $ (48,260) $ 256,979 $ 232,573
Cash Flows-Operating Activities
Depreciation $ 182,022 $ 174,001 $ 144,770 $ 100,940
Net Income Adjustments $ (203,587) $ 248,968 $ 132,323 $ 176,166
Changes in Operating Activities
Accounts Receivable $ 186,834 $ (79,106) $ (249,853) $ (191,876)
Changes in Inventories $ 109,919 $ (222,391) $ (148,055) $ (278,524)
Other Operating Activities $ (107,855) $ (52,106) $ (23,029) $ (76,476)
Liabilities $ 507,199 $ 216,354 $ 253,488 $ 51,738
Net Cash Flow-Operating $ 628,230 $ 237,460 $ 366,623 $ 14,541
Cash Flows-Investing Activities
Capital Expenditures $ (170,385) $ (281,339) $ (386,746) $ (298,928)
Investments $ (39,207) $ - $ 6,482 $ (6,534)
Other Investing Activities $ 6,688 $ (1,648) $ (875) $ (542,013)
Net Cash Flows-Investing $ (202,904) $ (282,987) $ (381,139) $ (847,475)
Cash Flows-Financing Activities
Sale and Purchase of Stock $ 2,580 $ 11,540 $ 15,485 $ 10,310
Net Borrowings $ (190,000) $ 98,000 $ 156,851 $ 384,798
Other Financing Activities $ (2,437) $ (2,781) $ (16,603) $ (12,728)
Net Cash Flows-Financing $ (189,868) $ 106,759 $ 146,114 $ 381,433
Effect of Exchange Rate $ 12,467 $ 4,178 $ (8,725) $ (11,822)
Net Cash Flow $ 247,925 $ 65,410 $ 122,873 $ (463,323)