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 an analysis of the present value of future cash flows potentially realizable from the continuing operation of the Xxxx'i segment. This analysis was based on estimates and guidance provided by the Company's management for estimating the Xxxx'i 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 Xxxx'i segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 11% to 13% per year. These discount rates were based on the WACC for both the Residential segment and the Xxxx'i segment's comparable companies. As noted previously, the Residential segment comparable companies have such low betas, Bear Xxxxxxx calculated the Residential segment comparable companies WACC assuming a market beta. Bear Xxxxxxx also computed the present value of the terminal value of the Xxxx'i segment at the end of fiscal year 2004 by applying a range of unlevered free cash flow multiples of 5 times to 7 times the Xxxx'i segment's estimated fiscal year 2004 EBITDA and applying these terminal values to a range of discount rates of 11% to 13% per year. The range of terminal unlevered free cash flow multiples was determined by analyzing the current and historical unlevered free cash flow multiples of the Company and comparable homebuilder companies and transactions and factoring in the extremely long-term aspect of this asset and the limited near-term cash flows. SUMMARY OF ANALYSES REGARDING XXXX'I SEGMENT The table below sets forth the enterprise value ranges for each of the analyses performed:
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. KPMG Corporate Finance performed a discounted cash flow analysis for existing business, new business, potential business from acquisitions and incremental synergies, based upon certain operating and other financial assumptions, projections and other information provided by the management of the Company. A discussion of certain financial projections prepared by the Company is set forth in "Item 16--Additional Information-- Certain Financial Projections of the Company". KPMG Corporate Finance primarily relied upon the projections, restated to reflect anticipated results from certain Hong Kong-based projects at or near completion and the projected improvement in operating results of the Company's Italian subsidiaries following a restructuring which was not taken into account in the original projections, in forming its opinion on the fairness to the Scheme Shareholders of the Ordinary Shares Consideration. For purposes of the analysis, KPMG Corporate Finance used discount rates ranging from nine percent to 11 percent and perpetuity growth rates for cash flows of around three percent, which resulted in an enterprise value of (Pounds)1.03 billion to (Pounds)1.56 billion, and a per Ordinary Share value of 274p to 415p. KPMG Corporate Finance subtracted aggregate estimated net debt as of April 30, 1998 (consisting of interest bearing debt net of cash balances) of (Pounds)80 million, equivalent to net debt per Ordinary Share of 21p, from the enterprise value in arriving at an equity value for the Company. KPMG Corporate Finance selected a representative range of (Pounds)0.95 billion to (Pounds)1.48 billion implied by this analysis, equating to 253p to 393p per share for the Ordinary Shares to be acquired. Comparison with Selected Companies and Transactions. KPMG Corporate Finance analyzed a range of values based on applying market multiples derived from companies principally involved in waste activities to the Company's revenue and earnings stream. KPMG Corporate Finance commenced the analysis with a review of material distorting items within the Company's historic and projected earnings in order to determine appropriate figures for adjusted maintainable earnings. The financial measures used in the analysis comprised sales of (Pounds)1.1 billion for 1997 (historic), (Pounds)0.9 billion for 1998 (prospective) and (Pounds)1.1 billion for 1999 (prospective+1) and earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted to exclude exceptional...
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. KBW performed a discounted cash flow analysis of MainSource to estimate a range for the implied equity value of MainSource. In this analysis, KBW used publicly available consensus “street estimates” of MainSource and assumed long-term growth rates for MainSource provided by MainSource management, and assumed discount rates ranging from 10.0% to 14.0%. The ranges of values were derived by adding (i) the present value of the estimated excess cash flows that MainSource could generate over the period from June 30, 2017 through December 31, 2021 as a stand alone company, and (ii) the present value of MainSource’s implied terminal value at the end of such period. KBW assumed that MainSource would maintain a tangible common equity to tangible asset ratio of 8.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value of MainSource, KBW applied a range of 13.5x to 17.5x estimated 2022 net income. This discounted cash flow analysis resulted in a range of implied values per share of MainSource common stock of $29.85 per share to $42.67 per share. The discounted cash flow analysis is a widely used valuation methodology, but the results of such methodology are highly dependent on the assumptions that must be made, including asset and earnings growth rates, terminal values, dividend payout rates, and discount rates. The foregoing discounted cash flow analyses did not purport to be indicative of the actual values or expected values of MainSource.
Discounted Cash Flow Analysis. KBW performed a discounted cash flow analysis of First Financial to estimate a range for the implied equity value of First Financial. In this analysis, KBW used publicly available consensus “street estimates” of First Financial and assumed long-term growth rates for First Financial provided by First Financial management, and assumed discount rates ranging from 10.0% to 14.0%. The ranges of values were derived by adding (i) the present value of the estimated excess cash flows that First Financial could generate over the period from June 30, 2017 through December 31, 2021 as a stand alone company, and (ii) the present value of First Financial’s implied terminal value at the end of such period. KBW assumed that First Financial would maintain a tangible common equity to tangible asset ratio of 8.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value of First Financial, KBW applied a 76 TABLE OF CONTENTS range of 13.5x to 17.5x estimated 2022 net income. This discounted cash flow analysis resulted in a range of implied values per share of First Financial common stock of $21.45 per share to $30.54 per share. The discounted cash flow analysis is a widely used valuation methodology, but the results of such methodology are highly dependent on the assumptions that must be made, including asset and earnings growth rates, terminal values, dividend payout rates, and discount rates. The foregoing discounted cash flow analyses did not purport to be indicative of the actual values or expected values of First Financial or the pro forma combined company.
Discounted Cash Flow Analysis. MPI performed a discounted cash flow analysis to determine the present value of Helix’s projected cash flows and determine a range of estimated enterprise values for the Company.
Discounted Cash Flow Analysis. Griffin performed a discounted cash flow analysis to estimate a range of the present value of estimated free cash flows that Metro could generate on a stand-alone basis, assuming certain cost savings and one-time charge. In performing this analysis, Griffin utilized the following assumptions, among others: • earnings assumptions based on forward earnings estimates for Metro and discussions with F.N.B.’s and Metro’s management, with subsequent earnings for Metro developed based upon historical trends and assumptions and inputs that Griffin considered reasonable; • a range of discount rates of 11% to 14% based on a normalized risk free interest rate as recommended by Duff & Phelps, the latest published Duff & Phelps U.S. Equity Risk Premium recommendation, a size premium, also published by Duff & Phelps, and a three-year beta as calculated by SNL Financial; and • a projected terminal values range of 11 to 15 times earnings based on the observable Mid-Atlantic companies identified by Griffin as part of its “Selected Companies Analysis” above who, at June 30, 2015, are comparable to Metro at the end of the terminal period, industry practice, and Griffin’s professional judgment. These calculations resulted in a range of implied per share values of between $37.04 to $53.79 with cost- savings of $37.7 million and a one-time pre-tax transaction charge of $49.5 million estimated by F.N.B.’s management. The discounted cash flow present value analysis is a widely used valuation methodology that relies on numerous assumptions, including asset and earnings growth rates, terminal values and discount rates and is not necessarily indicative of the actual value or expected value of Metro. The summary set forth above is not a complete description of the analyses and procedures performed by Griffin in the course of arriving at its opinion.
