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No. of Recommendations: 10
I promised DutchMark I'd provide my assumptions that lead me to believe WFMI is conservatively valued at around $55-$60 a share. This valuation does not include the impact of the Wild Oats merger.

1. 11% Discount Rate
2. 3% Terminal Growth Rate
3. WFMI will operate 638 stores by 2026 (6% annual growth rate over the next 20 years)
4. My base revenue/store is $31,426,900 M
5. Maintenance Capex will start at 2.46% of revenues in 2007 and slowly ramp up to represent 2.92% of revenues in 2026
6. Comps
Year 1 - 7%
Year 2 - 6%
Year 3 5%
Year 4 5%
Year 5 5%
Years 6-10 4%
Years 11-20 -2%

7. No dilution rate (due to buybacks, reduction in diluted share count over the last few years, decently good stewardship)

If these hold assumptions hold true, WFMI is worth about $57.

Jordan
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