Discounted Cash Flow Analysis. Centerview performed discounted cash flow analyses of Era and Bristow based upon the Era Forecasts and the Bristow Forecasts, respectively. A discounted cash flow analysis is a traditional valuation methodology used to derive a valuation of an asset by calculating the ‘‘present value’’ of estimated future cash flows of the asset. ‘‘Present value’’ refers to the current value of future cash flows and is obtained by discounting those future cash flows by a discount rate that takes into account macroeconomic assumptions and estimates of risk, the opportunity cost of capital, expected returns and other appropriate factors. Era Centerview calculated the estimated present value, as of December 31, 2019, of the unlevered, after-tax free cash flows that Era was forecasted to generate during the year ending December 31, 2020 through the year ending December 31, 2024 based upon the Era Forecasts. Era’s unlevered, after-tax free cash flows were calculated as (i) adjusted non-GAAP earnings before interest and taxes, less (ii) taxes, capital expenditures and increase in net working capital, plus (iii) depreciation & amortization and net proceeds from asset sales. The calculation of unlevered, after-tax free cash flows and the assumptions underlying them are described in the section entitled ‘‘Certain Unaudited Prospective Financial Information-Certain Era Unaudited Prospective Financial Information’’. The terminal value of Era at the end of the forecast period was estimated by using a range of exit multiples of 6.5x to 8.0x NTM Adjusted EBITDA. The range of exit multiples was estimated by Centerview utilizing its professional judgment and experience, taking into account, among other things, the Era Forecasts and considerations discussed in the ‘‘Selected Trading Multiples Analysis’’ section. The cash flows and terminal values were then discounted to present value as of December 31, 2019, using a range of discount rates of 11.75% to 13.00% (reflecting Centerview’s analysis of Era’s weighted average cost of capital using the Capital Asset Pricing Model and based on considerations that Centerview deemed relevant in Centerview’s professional judgment and experience, taking into account certain metrics including yields for U.S. treasury notes, market risk and size premia). Based upon this analysis, Centerview calculated an implied equity value range for Era of $237 million to $292 million and a per share value of $11.14 to $13.70 as of December 31, 2019. Bristow Centerview ...
Discounted Cash Flow Analysis. Lehmxx Xxxthers performed a discounted cash flow analysis on the projected financial information of the Company for the fiscal years 2000 through 2004, based upon operating and financial assumptions, forecasts and other information provided to Lehmxx Xxxthers by the management of the Company. Using this information, Lehmxx Xxxthers discounted to present value the projected stream of unleveraged net income (earnings before interest and after taxes) for the fiscal years 2000 through 2004 as adjusted for: certain projected non-cash items (such as depreciation and amortization); forecasted capital expenditures (including discretionary capital expenditures); and forecasted changes in non-cash working capital (in aggregate, "Free Cash Flow"). To estimate the residual value of the Company at the end of the forecast (the "Terminal Value"), Lehmxx Xxxthers utilized two approaches, applying a range of 5.5x-6.5x multiples to projected fiscal 2004 EBITDA and applying terminal period growth rates of 4.0%-5.0% to projected fiscal 2004 Free Cash Flow, and discounted these Terminal Values to present value. Lehmxx Xxxthers applied a range of discount rates that varied from 11.5% to 12.5%, based on a weighted average cost of capital analysis of the Comparable Public Companies derived from the Capital Asset Pricing Model. To calculate the aggregate net present value of the equity of the Company, Lehmxx Xxxthers subtracted total debt less cash and cash equivalents of the Company as of December 31, 1999, from the sum of the present value of the projected Free Cash Flow and the present value of the Terminal Value. This analysis resulted in a range of equity values of approximately $10.14 to $14.19 per share. LEVERAGED BUYOUT ANALYSIS. Lehmxx Xxxthers performed a leveraged buyout analysis to determine the potential implied equity value per share of Common Stock that might be achieved in an acquisition of the Company in a leveraged buyout transaction based on current market conditions. In conducting this analysis, Lehmxx Xxxthers utilized projected financial information of the Company, based upon operating and financial assumptions, forecasts and other information provided to Lehmxx Xxxthers by the management of the Company for the fiscal years 2000 through 2004, and based upon Lehmxx Xxxthers' estimates for the fiscal years 2005 through 2009, and assumed that merger financing could be obtained in the high yield market and bank finance markets in an amount not in excess of 4.8x 1...
Discounted Cash Flow Analysis. Bear Xxxxxxx performed a discounted cash flow analysis based on a review of the present value of future cash flows potentially realizable from the continuing operation of the Hawaii Commercial segment. This analysis was based on estimates and guidance provided by the Company's management for estimating the Hawaii Commercial segment operating results through the end of fiscal year 2004. Bear Xxxxxxx computed the present value of the free cash flows of the Company's Hawaii Commercial segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 11% to 13% per year. Such discount rates take into account the quality of the Hawaii Commercial segment's underlying properties and the risk associated with attracting tenants to various vacant properties. Bear Xxxxxxx also computed the present value of the terminal value of the Company at the end of fiscal year 2004 by applying a range of NOI multiples of 9.5 times to 10.5 times the Hawaii Commercial segment's estimated fiscal year 2004 NOI and applying these terminal values to a range of discount rates of 11% to 13% per year. The range of terminal NOI multiples was determined by analyzing the current and historical NOI multiples of the Company and comparable companies and transactions and factoring in the stabilized cash flows prospects of the Company at the end of fiscal 2004. Bear Xxxxxxx noted that this segment should be discounted back at a higher rate than the comparables due to the overall softness of the commercial and retail market, the lesser quality of the assets and the above-average risk of the underlying projected cash flows.
Discounted Cash Flow Analysis. As part of its analysis, and in order to estimate the present value of Xxxxx's and Xxxxx's ADSs, respectively, Xxxxxx Xxxxxxx performed an illustrative discounted cash flow analysis for each company using Management Projections. 141 Xxxxxx Xxxxxxx calculated net present values of free cash flows for Tudou and Youku for the years 2012 through 2016 and calculated terminal values in the year 2016 based on a perpetual growth rate range of 4.0% to 6.0%, which range was derived based upon, among other things, the median of perpetual growth rates published by select equity research analysts. These values were discounted at a discount rate ranging from 15.0% to 17.0%, which range was derived taking into account, among other things, a weighted average cost of capital calculation based on factors commonly considered for purposes of calculating an estimated weighted average cost of capital, including the trading volatility of the ADSs of Tudou and Youku relative to the overall market. These analyses resulted in a range of implied present values of US$25.82 to US$36.74 per ADS for Tudou and US$20.75 to US$29.22 per ADS for Youku. Xxxxxx Xxxxxxx then calculated an implied ADS exchange ratio range based on the implied present values per ADS of 0.88x to 1.77x. Xxxxxx Xxxxxxx noted that the ADS Consideration to be paid per Tudou ADS was US$39.89 (based on the ADS Exchange Ratio of 1.595x) as of March 9, 2012.
Discounted Cash Flow Analysis. The Beacon Group performed a discounted cash flow analysis of the projected unlevered free cash flows of Instron, which is defined as cash flow available after changes in working capital, capital spending and tax obligations for the period 1999 through 2003 using the terminal multiple method. The Beacon Group based this analysis on the Instron Projections, without any discounts or adjustments to those projections, and a range of discount rates and terminal values to determine the theoretical present value of the entire company. Applying discount rates ranging from 11.2% to 16.1% and terminal value multiples of estimated Instron EBITDA in 2003 ranging from 6.5x to 8.0x, The Beacon Group calculated the theoretical implied equity per share value of the Instron Common Stock to range from $18.40 to $26.74. The Beacon Group arrived at these discount rates based on its judgment of various factors, including analysis of the estimated cost of capital and capital structures of selected reasonably comparable public companies, and arrived at these terminal multiples based on its review of the trading characteristics of the common stock of selected reasonably comparable public companies and of reasonably comparable acquisitions of selected companies. The Beacon Group noted that the Cash Merger Consideration was within the range of implied equity per share values of Instron Common Stock produced by the discounted cash flow analysis. The Beacon Group noted that a discounted cash flow analysis was generally of more significance to a strategic buyer than a financial buyer such as Kirtland or Bidder A. Strategic buyers often perform a discounted cash flow analysis as part of their evaluation of a potential transaction, whereas financial buyers generally focus on analyzing potential equity returns (and their potential enhancement by using appropriate debt financing) rather than on determining a company's theoretical present value. The Beacon Group also noted the significant degree of dependency of the discounted cash flow analysis on the estimated terminal value and, therefore, on the estimated Instron EBITDA for 2003.
Discounted Cash Flow Analysis. Bear Xxxxxxx performed two discounted cash flow analyses on Indigo: (i) a portfolio run-off scenario and (ii) a going concern scenario. The multiples used in the going concern scenario were based on the current and historical multiples of Indigo and the companies described under AComparable Companies Analysis@ above.
Discounted Cash Flow Analysis. In order to estimate the present values of ONEOK Partners common units, shares of ONEOK common stock and Pro Forma ONEOK Shares, Barclays performed Discounted Cash Flow Analyses for each of ONEOK Partners, ONEOK and Pro Forma ONEOK. A discounted cash flow analysis is a traditional valuation methodology used to derive an intrinsic valuation of an asset by calculating the “present value” of estimated future cash flows of the asset; in this case, the “present value” of the estimated future distributable cash flows (“DCF”) of ONEOK Partners common units and the estimated after-tax CAFD of each of shares of ONEOK common stock and Pro Forma ONEOK Shares, as applicable, plus the estimated value of the ONEOK Partners common units, shares of ONEOK common stock and Pro Forma ONEOK Shares, as applicable, at the end of the forecast period based on the estimated DCF or distributions of the applicable entity in the final year of such period (the “terminal value”). “
Discounted Cash Flow Analysis. S tarwood Ex-Vistana The Starwood financial advisors performed a discounted cash flow analysis for the purpose of determining the implied per share equity value of Starwood Ex-Vistana on a standalone basis. In conducting the discounted cash flow analysis, the Starwood financial advisors utilized the Starwood Forecasts —Base Case and the Starwood Forecasts—Conservative Case. The Starwood financial advisors arithmetically derived the estimated standalone unlevered, after-tax free cash flows that Starwood Ex-Vistana was forecasted to generate from January 1, 2016 through December 31, 2019 based on the Starwood Forecasts—Base Case and Starwood Forecasts—Conservative Case prepared and provided to the Starwood financial advisors by Xxxxxxxx’s management as further described in the section entitled “—Certain Starwood Financial Forecasts,” beginning on page 93. The Starwood financial advisors also calculated a range of terminal values for Starwood Ex-Vistana utilizing the EBITDA multiple method by applying a forward multiple, based on the Starwood financial advisors’ professional judgment given the nature of Starwood and its business and industry, of 12.0x to 13.0x, to the estimated Adjusted EBITDA of Starwood Ex-Vistana in the terminal year ending on December 31, 2020. The unlevered, after-tax free cash flows and the range of terminal values were then discounted to present value using a discount rate of 8.6% to 9.6%, based on an estimate of Starwood’s weighted average cost of capital, to derive a range of implied enterprise values for Starwood Ex-Vistana. A range of implied equity values for Starwood Ex-Vistana was then calculated by reducing the range of implied enterprise values by the amount of Starwood Ex-Vistana’s projected net debt (calculated as debt less cash and cash equivalents) as of December 31, 2015 as provided in the Starwood financial forecasts. The Starwood financial advisors’ analysis indicated an implied per share equity value reference range for Starwood Ex-Vistana on a standalone basis of $78.11 to $87.57 utilizing the Starwood Forecasts—Base Case and of $71.82 to $80.54 utilizing the Starwood Forecasts—Conservative Case. M arriott The Starwood financial advisors performed a discounted cash flow analysis for the purpose of determining the implied per share equity value of Marriott on a standalone basis. In conducting the discounted cash flow analysis, the Starwood financial advisors utilized the Starwood-adjusted Marriott Forecasts—Base Case a...
Discounted Cash Flow Analysis. Baird performed a discounted cash flow analysis by utilizing the Forecasts to calculate the present value of the projected future unlevered free cash flows and terminal value of NSH and the Partnership. Baird calculated ranges of implied equity values per NSH unit and common unit, respectively, based on the Forecasts. In arriving at the estimated equity value range per NSH unit, Baird utilized the Forecasts to calculate projected unlevered free cash flows for calendar years 2018 through 2020, respectively, as set forth in the Forecasts, under each of 1.3x, 1.2x and 1.1x DCF coverage ratios at the Partnership and terminal values as of December 31, 2020 based on a range of terminal cash flow multiples in the terminal year of 13.5x to 15.5x, which midpoint represents a blended multiple based on a multiple of distributions from common units and a multiple based on general partner and incentive distribution rights cash flow. In deriving unlevered free cash flows of NSH, Baird added back interest expense to DCF and, as such, derived the following unlevered free cash flows: $29-$33 million across 1.3x to 1.1x DCF coverage at the Partnership for calendar year 2018; $37-$52 million across 1.3x to 1.1x DCF coverage at the Partnership for calendar year 2019; and $60-$80 million across 1.3x to 1.1x DCF coverage at the Partnership for calendar year 2020. The unlevered free cash flows and the terminal value were discounted to present value using a range of discount rates of 13.0% to 15.0%, with a midpoint based on NSH’s weighted average cost of capital (“WACC”), as estimated by Baird based on the capital asset pricing model (“CAPM”) and weighted average cost of debt with reference to applicable borrowing rates. In arriving at the estimated equity value range per common unit, Baird utilized the Forecasts to calculate projected unlevered free cash flows for calendar years 2018 through 2020, respectively, under each of 1.3x, 1.2x and 1.1x DCF coverage ratios at the Partnership and terminal values as of December 31, 2020 based on a range of terminal EBITDA multiples of 11.5x to 12.5x. In deriving unlevered free cash flows of the Partnership, Baird added back interest expense and preferred unit distributions to DCF, and then deducted growth capital expenditures. As such, Baird derived unlevered free cash flows at the Partnership of $204 million, $354 million and $450 million for calendar years 2018 through 2020, respectively, under each of 1.3x, 1.2x and 1.1x DCF coverage ra...
Discounted Cash Flow Analysis. Xxxxxxxx Xxxxx performed a discounted cash flow analysis of MBI based on the MBI Projections and the Estimated NOL Tax Savings and BIOX based on the BIOX Projections, calculating the net present value of the projected unlevered free cash flows of MBI and BIOX, respectively, and the net present value of the estimated terminal value of MBI and BIOX, respectively. With respect to MBI, Xxxxxxxx Xxxxx applied a range of terminal value multiples of 2.00x to 3.00x to MBI’s estimated CY 2027E total revenue and discount rates ranging from 16.00% to 25.00%. With respect to BIOX, Xxxxxxxx Xxxxx applied a range of terminal value multiples of 9.0x to 11.0x to BIOX’s estimated FY 2027E Adjusted EBITDAO and discount rates ranging from 15.00% to 20.00%. Xxxxxxxx Xxxxx then subtracted from the enterprise value of each of MBI and BIOX implied by such analysis the net debt of each of MBI and BIOX, respectively, to derive an implied equity value reference range for each of MBI and BIOX. The discounted cash flow analysis indicated an implied per share value reference range for MBI of $0.48 to $1.16 and for BIOX of $9.34 to $14.91, and an implied exchange ratio reference range of 0.032 to 0.124 shares of BIOX Ordinary Shares for each Share of MBI Common Stock, as compared to the exchange ratio in the merger pursuant to the merger agreement of 0.088 shares of BIOX Ordinary Shares for each share of MBI Common Stock.
