US Bancorp

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Oppenheimer	Ben Chittenden	kusdin@jefferies.com
Nomura Research	Bill Carcache	bill.carcache@nomura.com
Atlantic Equities	Christopher Wheeler	c.wheeler@atlantic-equities.com
Drexel Hamilton	David Hilder	dhilder@drexelhamilton.com
Raymond James	David Long	david.j.long@raymondjames.com
Susquehanna Financial Group	Jack Micenko	jack.micenko@sig.com
Compass Point Research	Jesus Bueno	jbueno@compasspointllc.com
Bernstein Research	John E. McDonald	john.mcdonald@bernstein.com
Evercore ISI	John Pancari	john.pancari@evercoreisi.com
RBC Capital Markets	Jon Arfstrom	jon.arfstrom@rbccm.com
Jefferies	Kenneth Usdin	benjamin.chittenden@opco.com
Piper Jaffray	Kevin J. Barker	kevin.j.barker@pjc.com
Wells Fargo Securities	Matthew H. Burnell	matt.burnell@wellsfargo.com
Deutsche Bank Research	Matthew O’Connor	matthew.o-connor@db.com
Societe Generale	Murali Gopal	murali.gopal@sgcib.com
FBR Capital Markets & Co	Paul J. Miller	pmiller@fbr.com
CRT Capital Group	Peter J. Winter	pwinter@sterneageecrt.com
Sandler O’Neill & Partners	R. Scott Siefers	ssiefers@sandleroneill.com
Credit Suisse	Susan Roth Katzke	susan.katzke@credit-suisse.com
Stephens Inc	Terry McEvoy	terry.mcevoy@stephens.com

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Income	NI	5,855	5,870	$NI\, =\, EBIT\,\,-\,Interest\,\, Expense\,\, -\,\, Taxes\,\, Paid$
Cash Flow From Equity	CFE	3,206	4,754	$CFE\,=\,\,NI\,\,-\,\,\Delta\,\,TE\,\,+\,\,OCI$
Total Equity	TE	46,817	47,933	$TE\,=\,Total\,\,Assets\,\,-\,\,Total\,\,Long-Term\,\,Debt$
Return on Equity	ROE	12.51%	12.25%	$ROE\,=\,\frac { NI}{TE}$
Net Investment	NetInv	2,649	1,116	$NetInv\,=\,{ {TE}_{1}}-{{TE}_{0}}$
Investment Rate	IR	45.24%	19.01%	$IR\,=\,\frac {NetInv}{NI}$
Cost of Equity	COE	-0.66%	-0.39%	$COE \,=\,R_{F}\,\,+\,\,(R_{M}\,-\,R_{F})\beta$
Enterprise value	EV_Market	104,220	113,323	$EV\,=\,Market\,\,Cap\,\,Equity\,-\,Cash$
Long-Run Growth	g = IR x ROIC	5.66%	2.33%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
PRICE/EARNINGS $\frac {Price}{Book\,\,Value} \,= \,\frac{ROE\, -\, g}{ROE\,(COE\,-\,g)}$
PRICE/CASH EARNINGS $\frac {Price}{Cash\,\,Earnings} \,= \,\frac{ROE\, -\, g}{ROE\,(COE\,-\,g)}\,(\frac{NI}{CE})$
PRICE/BOOK VALUE $\frac {Price}{Book\,\, Value} \,= \,\frac{ROE\, -\, g}{ROIC\,(COE\,-\,g)}\,\,x\,\,ROE\,\,=\,\,\frac{ROE\,\,-\,\,g}{COE\,\,-\,\,g}$