Market Approach. The Market Approach to valuation is a general way of determining a value indication of a business or an equity interest therein using one or more methods that compare the subject entity to similar businesses, business ownership interests and securities (investments) that have been sold. Examples of methods applied under this approach include, as appropriate: • The Guideline Public Company Method, • The Merger and Acquisition Method; and • Analyses of prior transactions of ownership interests in the subject entity. The Guideline Public Company Method is a method whereby market multiples are derived from market prices of actively traded stocks of companies that are engaged in the same or similar lines of business. Under this method, guideline company data is gathered in order to develop value measures that can be applied to the subject company’s financial data, in order to reach an indication of value for the issued shares of the subject entity. To the extent that the risk associated with an investment in the subject entity is different from that of the guideline companies, subjective adjustments are made to the market-based ratios to reflect such differences.
Market Approach it considers to determinate the cost to acquire a property similar to the Leased Property, at the same market area. The characteristics of the identified operations shall be compared to the Leased Property under conditions of location, size, quality, purchase expenses, market conditions on the sale date, physical characteristics, etc.
Market Approach. Good sales data was obtained involving comparable properties within the market. Seven sales of similar apartment developments within the Tampa/St. Petersburg Metropolitan Area were reviewed which were considered to provide a good indication of market value for the subject property. Therefore, recognizing the good market data which was available for utilization within the Market Approach, this approach to value has been heavily weighted when estimating a correlated value for the subject property. Summary Comments and Conclusions: -------------------------------- The Cost Approach to value is generally well supported with adequate data being available to develop replacement cost and depreciation estimates. However, the subject is significantly effected by external obsolescence and limited land sales data was available upon which to estimate the land value of the subject site. The Cost Approach to value has produced a value indication at the middle of the range reflected by the three approaches reviewed herein, but has ultimately been given little consideration when correlating a value estimate for the subject property. Both the Income and Market Approaches to value appear well supported and good market data was available for utilization when developing these approaches to value. In addition, both of these approaches are currently considered by most buyers and sellers to be most relevant when analyzing or valuing income producing properties like the subject. Therefore, these approaches to value have been given equal weight and consideration when estimating a correlated market value for the subject property. Based upon this data, it was the Appraiser's opinion that the market value of the subject property, based upon market conditions existing on January 22, 1998, and subject to the limiting conditions and contingencies set out herein, was: EIGHT MILLION FOUR HUNDRED FIFTY THOUSAND DOLLARS ($8,450,000) ----------------------------------------------------------------------------- DEFINITION OF MARKET VALUE ----------------------------------------------------------------------------- The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer unde...
Market Approach. Guideline Public Company Method In the Guideline Public Company Method, PwC considered the trading multiples of the selected Guideline Companies. A brief description of selected Guideline Companies are included in Appendix 1. There are no exact comparables as a result of differences in size, financial composition, market coverage, product offerings, etc. This is particularly true of companies in the forest and paper industry, where public companies are generally large integrated producers with large variations in product mix. PwC analyzed EV to TTM EBITDA multiples for the Guideline Companies, EV to fiscal year ("FY") 2016 EBITDA multiples where forecast data was available for the Guideline Companies. 15 To arrive at the gross debt balance, net of cash, of approximately $524 million used to calculate the FMV of the Shares, PwC added back deferred financing costs (which were netted against debt for accounting purposes) of approximately $5.0 million and deducted the cash balance of $6.5 million. The Guideline Companies and related trading multiples are shown below: Company16 Currency17 Market Cap ($Millions) 18 EV ($Millions) TTM EBITDA Margin19 TTM EBITDA FY 2016 EBITDA20 Canfor Pulp Products Inc. CAD 675.7 693.8 15.8% 3.7x 4.1x Cascades Inc. CAD 1,205.8 2,961.8 11.5% 6.4x 6.8x Clearwater Paper Corp. USD 899.5 1,481.7 12.4% 6.9x 7.0x Domtar Corp. USD 2,261.7 3,465.7 13.2% 5.1x 5.2x International Paper Co. USD 18,508.2 26,867.2 17.3% 7.4x 7.3x Mxxxxx International Inc. USD 511.1 994.4 20.0% 5.2x 5.6x Neenah Paper Inc. USD 1,338.1 1,552.8 16.1% 10.1x 9.7x PH Gxxxxxxxxx Co. USD 941.8 1,250.7 10.3% 7.4x 7.3x Resolute Forest Products Inc. USD 425.1 1,012.1 6.2% 4.6x 3.2x Tembec Inc. CAD 104.0 798.0 8.6% 6.3x 6.0x Verso Corp. USD 195.4 623.4 7.2% 3.0x nmf. Mean excluding high and low 12.5% 5. x 6.2x Median 12.4% 6. x 6.4x Low 6.2% 3.0x 3.3x High 20.0% 10.1x 9.11x The EV to TTM EBITDA multiples for the Guideline Companies is in the range of 3.0 times to 10.1 times with a mean (excluding the high and low) of 5.9 times and a median of 6.3 times.
Market Approach. PFM will also consider the market approach to valuing Park. However, we note that there are few comparable utility acquisition transactions similar to Client’s proposed acquisition. Nevertheless, we believe it is prudent to consider this approach and to utilize the available sales in the valuation process.
Market Approach. Pay-to-Trade Ratio Analysis. As part of its analysis, using the publicly available information, Xxxxx compared the Pay-to-Trade Ratio of the merger with that of the median of the precedent merger and acquisition transactions from both the Regional and Nationwide Groups. The Pay-to-Trade Ratio is calculated by dividing the price to tangible book multiple paid to the seller at announcement by the public market quoted price to tangible book multiple of the buyer.
