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. 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. Centerview calculated t...
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. 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. 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 Mainland Commercial segment. This analysis was based on estimates and guidance provided by the Company's management for estimated Mainland 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 Mainland Commercial segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 10% to 12% per year. Such discount rates take into account the quality of the Mainland Commercial segment's underlying properties and the risk associated with attracting tenants to various new properties. Bear Xxxxxxx also computed the present value of the terminal value of the Mainland Commercial segment at the end of fiscal year 2004 by applying a range of Adjusted Net Operating Income ("NOI") multiples of 9.5 times to 10.5 times the Mainland Commercial segment's estimated fiscal year 2004 NOI and applying these terminal values to a range of discount rates of 10% to 12% 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.
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 Mainland Residential segment. This analysis was based on estimates and guidance provided by the Company's management for estimated Mainland Residential 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 Mainland Residential segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 12% to 14% per year. These discount rates were based on the weighted average cost of capital ("WACC") for homebuilders using the Capital Asset Pricing Model ("CAPM"). However, Bear Xxxxxxx noted that over the past several years, homebuilders have significantly underperformed the market and have very low betas. Therefore, Bear Xxxxxxx calculated the Mainland Residential segment's WACC, assuming a market beta. Bear Xxxxxxx also computed the present value of the terminal value of the Mainland Residential segment at the end of fiscal year 2004 by applying a range of EBITDA multiples of 5 times to 7 times the Mainland Residential segment's estimated fiscal year 2004 EBITDA and applying these terminal values to a range of discount rates of 12% to 14% per year. The range of terminal EBITDA multiples was determined by analyzing the current and historical EBITDA multiples of the Company and comparable companies and transactions and factoring in the expected growth prospects of the Company at the end of fiscal 2004. Because the Mainland Residential segment shows no EBITDA growth from 2002 to 2004, the terminal value multiple was in line with comparable homebuilder average EBITDA multiples. SUMMARY OF ANALYSES REGARDING MAINLAND RESIDENTIAL SEGMENT The table below displays the enterprise value ranges for each of the analyses performed: ENTERPRISE VALUE ------------------- LOW HIGH -------- -------- ($ IN MILLIONS) Discounted Cash Flow Analysis............................... $106 $137 Comparable Companies Analysis............................... $ 72 $183 M&A Comparable Transactions Analysis........................ $ 70 $121 In examining each of the comparable companies, merger and acquisition comparable transactions and discounted cash flow analyses, Bear Xxxxxxx noted that the mainland homebuilding segment was expecting moderate growth over the next several years and therefore weighted ...
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. For purposes of this analysis, “unlevered free cash flow” is calculated as EBITDA attributable to Enable less maintenance capital expenditures, growth capital expenditures and changes in net working capital and other. Intrepid performed discounted cash flow analyses to calculate the estimated present value of: (i) the unlevered free cash flow that Enable is projected to generate for the five year period beginning with the twelve months ending December 31, 2021, based on the Enable unaudited prospective financial information prepared by Enable General Partner’s management, and (ii) an implied terminal enterprise value. Using an estimated weighted average cost of capital ranging from 7.3% to 9.0%, Intrepid discounted: (i) Enable’s estimated unlevered free cash flow, and (ii) a range of illustrative terminal enterprise values, calculated by applying a range of terminal EBITDA multiples of 7.0x to 9.0x to terminal year EBITDA. Intrepid derived such weighted average cost of capital range by application of the Capital Asset Pricing Model and such terminal multiple range using its professional judgment and experience, taking into account, among other things, an analysis of Enable and Enable selected comparable companies. Intrepid then subtracted Enable estimated net debt as of December 31, 2020, Enable’s Series A Preferred Units valued at 106% of face value multiplied by the market price of the 7.125% Series G Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units of ETO (the “ETO Series G Preferred Units”), each of which, upon the completion of the Pre-Closing Transactions, will convert into the right to receive a newly issued Energy Transfer Series G Preferred Unit having the same preferences, rights, powers and duties as the ETO Series G Preferred Units, and $10 million attributable to Enable’s general partner interest to arrive at an implied equity value for Enable. Intrepid divided the implied equity value for Enable by the Enable fully diluted common units outstanding as of December 31, 2020 to compute the implied equity value per Enable common unit. The analysis resulted in an implied equity value per Enable common unit range of $4.27 to $8.21. Intrepid evaluated certain financial information with respect to the following midstream precedent transactions, each of which was announced during the period between January 2018 and August 2020: The transactions listed in the table above are referred to in this section as the “selected comparable transac...
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. 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. CSCA performed separate discounted cash flow analyses for each of MNR and EQC on a stand-alone basis.
Discounted Cash Flow Analysis. DBAB performed a discounted cash flow analysis of Prodigy under a number of scenarios. For each scenario, DBAB calculated the discounted cash flow value of Prodigy as a sum of the net present value of (i) the estimated future unlevered free cash flow of Prodigy for the fiscal years 2001 through 2010, and (ii) the terminal value of Prodigy at the end of such period and derived the implied equity value per share of Class A Common Stock. The estimated future unlevered free cash flow was based on the financial projections for the years 2001 through 2010 prepared by Prodigy's management. The terminal value was calculated based on unlevered free cash flow projections for 2010 prepared by Prodigy's management and an assumed perpetual growth rate beginning in 2020. Prodigy's management informed DBAB that the scenarios assuming that, at the expiration of Prodigy's Strategic and Marketing Agreement with SBC (the "SMA") at the end of 2009, Prodigy and SBC would renegotiate the SMA at a reduced monthly wholesale fee of $2.00 and $3.00 per subscriber are the most likely cases. DBAB used these cases for purposes of rendering its opinion. DBAB used varying weighted average costs of capital (between 18.5% and 22.5%) and perpetuity growth rates (between 2% and 4%) to derive a high, mid and low implied equity valuation for each case. This analysis resulted in the following ranges of implied equity valuation per share of Class A Common Stock:
