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. 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$39.89 (based on the ADS Exchange Ratio of 1.595x) as of March 9, 2012.
Discounted Cash Flow Analysis. Bear Xxxxxxx performed a discounted cash flow analysis based on an analysis of the present value of future cash flows potentially realizable from the continuing operation of the Hawaii Residential segment. This analysis was based on estimates and guidance provided by the Company's management for estimating the Hawaii Residential segment operating results through the end of fiscal year 2004. Bear Xxxxxxx computed the present value of the free cash flows of the Company's Hawaii Residential segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 12% to 14% per year. These discount rates were based on the WACC for homebuilders using the CAPM. However, Bear Xxxxxxx noted that over the past several years, homebuilders have significantly underperformed the market and have very low betas. Therefore, Bear Xxxxxxx calculated the Hawaii Residential segment's WACC, assuming a market beta. Bear Xxxxxxx also computed the present value of the terminal value of the Hawaii Residential segment at the end of fiscal year 2004 by applying a range of EBITDA multiples of 5 times to 7 times the Hawaii Residential segment's estimated fiscal year 2004 EBITDA and applying these terminal values to a range of discount rates of 12% to 14% per year. The range of terminal EBITDA multiples was determined by analyzing the current and historical EBITDA multiples of the Company and comparable companies and transactions and factoring in the expected growth prospects of the Company at the end of fiscal 2004. SUMMARY OF ANALYSES REGARDING CURRENT DEVELOPMENT PROJECTS OF HAWAII RESIDENTIAL SEGMENT The table below sets forth the enterprise value ranges for each of the analyses performed on the current development projects of the Hawaii Residential segment: ENTERPRISE VALUE ------------------- LOW HIGH -------- -------- ($ IN MILLIONS) Discounted Cash Flow Analysis............................... $155 $194 Comparable Companies Analysis............................... $ 51 $130 M&A Comparable Transactions Analysis........................ $ 64 $109 In examining each of the comparable company, merger and acquisition transactions and discounted cash flow analyses, Bear Xxxxxxx noted the very high level of growth in management's forecasts and therefore weighted the discounted cash flow more heavily. As stated above, the comparable companies and transactions analysis was relied on to determine the terminal value of the Hawaii Residential segment. However, Xxxx Xxx...
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. 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. 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. 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:
Discounted Cash Flow Analysis. DLJ performed a discounted cash flow analysis of the projected cash flows of the Company for the years 2000 through 2002, using the Management Projections for the years 2000 through 2002 and assuming a 5% revenue growth rate thereafter, which is consistent with the Company's historical growth rate for the period 1996 through 1999 (treating all acquisitions as if they occurred on
