DCE Holdings — Columbia Model

Company Profile

Name—

Ticker / Exchange—

Sector (GICS)—

Business Model—

Fiscal Year End—

CEO—

HQ—

Employees—

Valuation Date—

Market Data

Current Price

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Diluted Shares (M)

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Market Cap

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Enterprise Value

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Total Debt

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Lease Liabilities

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Cash + STI

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Net Debt

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Key Financial Metrics

Net Revenue—

Operating Income—

Operating Margin—

EBITDA—

Net Income—

EPS Diluted—

CFO—

CapEx—

FCF—

FCF Margin—

D&A—

SBC—

Growth YoY

Revenue—

EBITDA—

FCF—

Valuation MultiplesSnapshot vs Live

Multiple	Snapshot (val date)	Live (now)	Δ Re-rating

Market Context5Y · daily closes

Stock Price (5Y) vs EPV & BUY Zone

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Historical P/E (TTM proxy, 5Y)

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Historical Trends

Revenue & NOPAT (DCE Adj)

Operating & Net Margins (%)

CFO vs FCF vs Buybacks

Capital Deployment (Latest FY)

Income Statement

Balance Sheet

Cash Flow Statement

Revenue & Operating Income

Net Income / NOPAT / FCF

Margins (%)

CFO / CapEx / FCF

Revenue Mix — FY2025 Snapshot

Revenue by Segment

Revenue by Geography

Sales by Segment

Sales by Geography

Distribution by Channel (FY2025)

Manufacturing Sourcing (FY2025)

Notas

From GAAP to Economic Earnings — FY —

NOPAT Bridge (Waterfall)

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Headline Adjustment

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Adjusted NOPAT

GAAP Operating Income—

(+) S&M Growth Add-back—

(+) Non-Recurring Add-back—

Pre-Tax Adjusted OI—

(−) Tax—

NOPAT after tax—

Capitalization Parameters & Methodology

S&M Capitalization — Brand Building

S&M Total Expense (LTM)—

3-Year Rolling Average—

Useful Life (years)—

Growth Expense (Add-back)—

Growth % of S&M—

Unamortized Asset—

Formula: Growth_t = S&M_t − Avg(S&M_{t−2}..t). The recurring portion (3-yr avg) is treated as economic amortization of brand asset; the incremental spend is reclassified to investment and added back to NOPAT.

R&D Capitalization — Intellectual Asset

Capitalization Status—

Useful Life (years)—

Growth Expense (Add-back)—

Unamortized Asset—

R&D is capitalized only when (i) it represents recurring product/technology investment and (ii) revenue durability is dependent on the cumulative knowledge stock. Useful life calibrated to product cycle (typically 3–5 years for consumer hardware, 7–10 for capital goods).

Normalization & Tax Treatment

Non-Recurring Items (Pre-Tax)—

Type—

Normalized Tax Rate—

5-yr ETR Median—

Adjusted NOPAT—

Non-recurring items (impairments, restructuring, litigation) are added back pre-tax. Tax rate normalized to the 5-yr historical median to dampen one-time distortions (TCJA, deferred reversals, regional mix).

S&M Cohort Matrix — Vintage Amortization View

Each cohort year's marketing spend is depreciated 1/L per period across L = — years. Column totals reproduce the economic amortization charge embedded in adjusted operating income. Source: build-up implicit in the Columbia model.

NOPAT Build-up — Historical Series

GAAP Operating Income vs. Adjusted NOPAT — Economic Earnings Gap

Reported OI vs. Adjusted NOPAT (USD M)

Effective Tax Rate History (%)

Sensitivity Panel — NOPAT Normalizado (EPV Input)

El NOPAT que alimenta el EPV se construye aplicando un margen operativo normalizado sobre un Revenue Base sostenible, no sobre la OI del último año. Estos sliders son los 4 drivers clave (mapeo directo con la columna J "Normalizado" del modelo Excel). Los cambios se propagan en vivo al EPV.

Revenue Base $—M

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Ventas sostenibles en escenario no-growth (default: FY más reciente)

Margen Op Normalizado —%

10%40%

Margen sostenible en steady-state (chosen after reviewing Margen Op Limpio series)

S&M Useful Life 3 yrs

3 yrs7 yrs

Vida útil de cohorts de marketing (Greenwald cohort amortization)

Normalized Tax Rate 28%

15%40%

Default = 5-yr ETR median

Live Recalculation — NOPAT Normalizado

Revenue Base—

× Margen Op Normalizado—

= GAAP OI Normalizado—

(+) S&M Growth (net, cohort L)—

(+) Non-Recurring—

= Pre-Tax Adjusted OI—

× (1 − Tax Rate)—

NOPAT Normalizado (EPV Input)—

Δ vs published: —

Methodology — Columbia / Greenwald Framework

1. From accounting earnings to economic earnings. GAAP operating income understates true profitability for businesses that fund growth through expensed line items (S&M, R&D, customer acquisition). The DCE adjustment isolates the maintenance portion of these expenses — which should remain in opex — from the growth portion, which is reclassified as investment.

2. Greenwald rolling-average method. The 3-year (or L-year) rolling average of marketing/R&D spend approximates the recurring expense required to maintain existing revenue and brand equity. Any spend above this baseline is treated as growth capex and added back pre-tax.

3. Cohort-based asset reconstruction. Each year's spend creates an intangible asset that depreciates linearly over L years. The unamortized stock at any point in time equals the sum of remaining book value across active cohorts and is added to the EPV asset base.

4. Non-recurring normalization. Items unlikely to repeat (impairments, restructuring, litigation settlements, gains on dispositions) are removed pre-tax. The threshold for inclusion is materiality (>1% of revenue) and infrequency (not in the prior 3 years).

5. Tax normalization. The applied rate is the 5-yr historical median ETR, which smooths one-off effects from TCJA timing, deferred tax reversals, audit settlements, and geographic mix changes. Reference: Greenwald, Kahn, Sonkin & van Biema (2001), Value Investing: From Graham to Buffett and Beyond; Damodaran (2009), Research and Development Expenses: Implications for Profitability.

Reproduction Value — Estimated Cost to Replicate Assets From Scratch

Tangible Assets

Intangible Assets (Reconstructed)

Other Assets

Liabilities — Reproduction Adjustment (default 100% at par; adjust where applicable)

Reproduction Value Build-up — From Assets to Per-Share Value

Step	Book Value	Reproduction Cost
Total Assets	—	—
(−) Total Liabilities	—	—
= Equity Value ($M)	—	—
÷ Diluted Shares Outstanding	—	—
= Value per Share	—	—

Earnings Power Value — Sustainable Earnings Power

EPV Operations ($M)

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NOPAT ÷ WACC

EPV Equity ($M)

—

Post financial bridge

EPV / Share

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Price / EPV

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EPV Assumptions

Normalized NOPAT ($M) —

Set in Adjustments → via Revenue Base × Op Margin Normalizado × (1−t). Change any of those sliders and this value updates automatically.

WACC —

— —

—

Effective Tax Rate —

Set in Adjustments →. Long-run effective tax rate used for NOPAT normalization.

No growth assumed — EPV is pure steady-state value

Bridge EPV — EBIT → Equity

EPV Build ($M)

EPV bridge. Starts from normalised EBIT, taxes it at the long-run effective rate, and capitalises NOPAT at WACC. Bridge to equity adjusts for cash, non-operating assets, debt and lease liabilities. No growth assumed.

WACC — Components

Risk-Free Rate (Rf)—

Beta (β)—

Equity Risk Premium—

→ Ke = Rf + β·ERP—

Ke (CAPM)—

Kd after-tax—

Debt Weight D/(D+E)—

Equity Weight E/(D+E)—

WACC Final—

WACC Validation — Cross-Check

DCE WACC (CAPM)—

Damodaran Sector Implied—

Peer Avg (top 3 comps)—

Implied Cost (price = EPV)—

Item EPV. EPV assumes current earnings persist indefinitely with no growth — it is the valuation floor for a moated business. A Price > EPV implies the market is pricing in future growth (franchise value).

Sensitivity Table — P/EPV by NOPAT × WACC

ROIC & Invested Capital

ROIC —

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ROIC 3yr Avg —

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WACC

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ROIC − WACC Spread

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Creates economic value ✓

Adjusted ROIC vs WACC — History (%)

Invested Capital — Latest FY Composition ($M)

Marginal ROIC — Reinvestment Returns

Marginal ROIC (1yr Δ)

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Marginal ROIC 2yr (Acc. Growth)

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Cleaner read — avoids buyback noise

Marginal ROIC 2yr — 3yr Avg

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Feeds Implied IRR reinvestment growth

Growth CapEx 2yr

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Scale of reinvestment ($M)

—

Invested Capital — Historical Build-up ($M)

Implied IRR — Total Shareholder Return

Price basis

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Total Equity Return

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Recalculated in real time

Margin of Safety

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vs. Hurdle Rate —

EV / NOPAT Actual

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Assumptions — Edit & See Impact in Real Time

Selected ROIC (Reinvestment) —

——

—

Organic Growth —

——

—

Exit Multiple (EV/NOPAT) —

——

—

Sustainable Buybacks ($M) —

——

—

Horizon (years) —

——

Investment horizon

DCE Hurdle Rate —

——

Minimum return required

Base assumptions correspond to the latest CIO-approved model.

Return Decomposition

Distribution Yield

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Organic Growth

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Reinvestment Growth

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Multiple Adjustment

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Leverage Equity

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Total Equity Return

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Enterprise-First Return Framework (Modigliani–Miller Lever-up)

Enterprise Value Build

Market Cap—

(+) Total Debt—

(+) Lease Liabilities—

(−) Cash & STI—

Enterprise Value—

EV / NOPAT Multiple—

Distributions ($M)

Dividends Paid (Latest FY)—

Sustainable Buybacks—

Interest Expense (pre-tax)—

Total Distributions—

Distribution Yield (Dist/EV)—

Payout Rate (Dist/NOPAT)—

Reinvestment ($M)

Growth CapEx (CapEx − D&A)—

Δ Working Capital (est.)—

S&M Growth Expense—

R&D Growth (N/A)—

Total Reinvestment—

Reinvestment Rate—

Growth Decomposition

Selected ROIC (3yr avg)—

× Reinvestment Rate—

= Reinvestment Growth—

(+) Organic Growth—

Total Growth—

Cash Sanity Check

Normalized NOPAT—

(−) Total Reinvestment—

(−) Total Distributions—

NOPAT − Reinv. − Dist.—

% of NOPAT—

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Health Check — Quality & Financial Fitness Scorecard

Pass

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Monitor

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Fail

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Metric	Value	Threshold	Status	Rationale

Quality Radar

PASS (≥ 90) MONITOR (60–89) FAIL (< 60)

Thesis Health — Tier-1 KPIs (per IPS §4.7)

CIO Decision Points — Model Assumptions Audit Trail

Probability Worksheet — CIO weight assignment to IRR scenarios

Summary — Columbia Synthesis

Thesis Narrative

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Identity

Valuation

Operations

Key Model Inputs — Single Source of Truth

Valuation Inputs

Normalized NOPAT—

Revenue Base—

Normalized Op Margin—

Tax Rate (Normalized)—

WACC—

Diluted Shares (M)—

IRR Assumptions

Selected ROIC (reinv. growth)—

Organic Growth (DP17)—

Reinvestment Growth—

Exit Multiple (DP15)—

Sustainable Buybacks / Divs—

Investment Horizon—

Capital & Adjustments

S&M Capitalization—

R&D Capitalization—

SBC Treatment—

Normalization Window—

Items Normalized—

Goodwill in RV (DP12)—

Columbia Valuation Ladder

Open Decision Journal →

Research Documents