Under Armour Analysis

Table of Contents

Written Report

Executive Summary…….............................................................................. 2

Company Profile………………………………………………………..…..3

Industry Analysis…………………………………………………………...4

SWOT Analysis………………………………………………………….....8

Valuation…………………………………………………………………..12

Conclusion……………………………………………………………..…..13

Historical Ratio Analysis

Valuation ratios………………………………………………………........17

Dividends………………………………………………………………….17

Growth rates……………………………………………………………….18

Financial strength………………………………………………………….18

Profitability ratios………………………………………………………….19

Management effectiveness…………………………………………….......19

Efficiency………………………………………………………………….19

Valuation Tables

Pro Forma Income Statement……………………………………………..21

Pro Forma Balance Sheet…………………………………………………23

Free Cash Flow……………………………………………….…………...25

Free cash flow valuation summary……………………………..……...….26

WACC calculation………………………………………………………...27

Sensitivity analysis………………………………………………………...27

Graphs/ Plots

Net income (loss) by year……………………………………………….…28

Free cash flow by year……………………………………………………..28

Written Report

Executive Summary

Executive Summary

Introduction of the Firm

Under Armour (UA) was incorporated on July 1, 1996; producing and distributing performance apparel and footwear for athletes of all ages. The brand engineered a fabric that enhances performance and comfort through its “moisture wicking” fabrications that helps athlete’s performance no matter the weather at hand. UA operates in North America, Europe, the Middle East, Africa, and Asia and Latin America. UA generates most of their revenues through wholesalers, planning to grow business operations by expanding their network of wholesalers and direct customers in more than 13 countries outside of the US.

Stock price valuation

In order to value Under Armour, our group collected financial information from Under Armour’s 2014 annual report as well as Thomson One. Under Armour is growing above...