booz allen hamilton - 2016 cleveland research company stock pitch competition

Booz Allen Hamilton (NYSE: BAH)Brian Etienne | Cianan Moore | Manav Sarkaria | Matt Thomas

Cleveland Research Company Stock Pitch | 2016

Investment Thesis & Overview 3Industry Dynamics 7Growth Opportunities & Drivers 10Valuation 14Final Thoughts 17Appendix 18

2

Investment Thesis

3Investment Thesis

& Overview Industry Dynamics Growth Opportunities & Drivers

Valuation & Final Thoughts Appendix

Booz Allen Hamilton is positioned to take advantage of growing threats facing both the United States government and private sector

Booz Allen Hamilton is a non-cyclical company as a result of its primary focus on government contracts

Growing demand for cyber security expertise due to increasing global cyber attack activity

Anticipated future margin growth led by a shift to fixed-price contracts and growth in commercial markets

We recommend Booz Allen Hamilton as a Buy with a 12 month price target of $35.10, which is an upside of 25.99% from the current share price of $27.86

Company OverviewCompany Description Headquartered in Tysons Corner, Virginia NYSE: BAH Management consulting firm serving as a

security and defense contractor Operations in 12 countries

4

Key Statistics

Sources of Revenue Revenue derived from contracts and task

orders with the U.S. government Revenue generated under 3 contract types:

Cost-reimbursable Time-and-materials Fixed-price

Investment Thesis & Overview Industry Dynamics Growth Opportunities

& DriversValuation & Final

Thoughts Appendix

55%

25%

20%

Cost-reimbursableTime-and-materialsFixed-price

Marke

t Dat

a

Current Price $27.86

Market Cap. 4.15B

P/E Ratio 15.56x

Price/Book 11.09x

Operations

TTM Revenue 5.27B

Profit Margin 5.11%

Diluted EPS $1.79

Capital Structur

e

Net Debt 1.59B

Cash – Cash Equiv. 207.2M

Current Ratio 1.43x

Quick Ratio 1.43x

Value

EV/Revenue 1.06x

EV/EBITDA 12.15x

EV/FCF 21.41x

Source: Company 10-K, Bloomberg

Company Overview52-Week Stock Performance

5

Client Relationship Length (Years)

U.S. Navy 70+U.S. Army 65+U.S. Air Force 35+Dept. of Energy 35+National Security Agency 30+Dept. of Homeland Security 30+Federal Bureau of Investigation 20+National Reconnaissance Office 15+

Long-Term Client Relationships Long standing and extensive relationship

with U.S. government Deep understanding of clients’ problems

and strategies



Thoughts Appendix

Company Structure Parent company split in 2008

Booz Allen Hamilton half focusing on U.S. government contracts

Non-compete provision expired in 2011, allowing Booz Allen Hamilton to build out commercial consulting practice

4/6/2015 7/6/2015 10/6/2015 1/6/20160mm

1000000mm2000000mm3000000mm4000000mm5000000mm6000000mm

$20$25$30$35$40$45$50$55


6

Company Overview3.2%

24.9%

23.5%

48.4%Commercial/ In-ternational

Intelligence

Civil

Defense

Contract Win Rate

Revenue By Market FY15

Breakdown Historically successful in receiving and

retaining contracts

Resistant to market cycles due to high percentage of revenue from the government



Thoughts AppendixSource: Investor Relations

Re-competes New Business0%

50%

100%

88%55%

Historical Contract Mix

FY2013 FY2014 FY20150%

50%

100%

28% 28% 25%

57% 55% 55%

15% 17% 20%

Time & Materials Cost Reimbursable Fixed Price

7

Industry OutlookGovernment Defense Spending

Cyber Security Global Growth

IT Market Growth

Industry Success Factors Competitive pricing and services Well developed internal processes Access to niche markets Long lasting customer relationships Adaptability to market preference changes



Thoughts Appendix

2014 2015 2016 20170.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025$0B

$100B

$200B

$300B

Source: TechTarget, Defense.gov

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020$B

$100B$200B$300B$400B$500B$600B$700B$800B

$mm$500mm$1000mm$1500mm$2000mm$2500mm$3000mm$3500mm$4000mm$4500mm

Government Defense Spending Net Income

Cyber Security Industry Attack Surface Expansion Expected device expansion (2015-2020)

Global public cloud computing market: 63.9% Wearable technology: 290.0% Tablets: 8.5%

Growing trend in connected vehicles Increased use of cryptocurrencies

8

Rising Cost of Data Breaches

History of Chinese Intrusions

2013 2014 2015$4mm

$5mm

$6mm

$7mm

$5mm$6mm

$7mm

Average Organizational Breach Cost



Thoughts AppendixSource: IBISWorld, McAfee

Titan RainState Dept

US BISUS NWC

US Sec DefEnfal

US Rep Frank WolfPOTUS Campaign

Ghost NetF-35 JSF

AuroraShadows in the Cloud

Byzantine HaydesNight Dragon

RSAShady RAT

LuridNitro

TaidoorLuckycat

IxesheVOHO

ElderwoodCyber-Sitter

HeartBeatUS News Media

ATP1/CommentCrewBeebus, Mutter

Bit9TelventQinetiQ

SafeASIO

SCADA HoneypotATP12: G-20Hidden Lynx

Icefog

2002 2004 2006 2008 2010 2012 2014

Government Mixed Commercial

9

Government Consulting Market Highly concentrated segment of consulting

management Advancements in technology have led to a

more competitive market Smaller firms now able to succeed in niche

markets

Commercial Markets Focused on cyber security and analytics market Becoming increasingly fragmented due to

number of products and services in the industry Industry's sheer size prevents any one company

from dominating the industry

Industry Landscape



Thoughts Appendix

Towers Watson & Co.

Booz Allen Hamilton

CEB Inc.

WageWorks Inc.

Fit Consulting Inc.

$0B $5000000000B $10000000000B

$8500000000B

$4500000000B

$2100000000B

$1800000000B

$1400000000B

Key Players by Revenue19%

81%

Industry Market Share

Top 4 FirmsOther

Source: IBISWorld, ControlRisks

10

Areas of Focus for GrowthEngineering First began building engineering portfolio in

2012 Purchased Defense Systems Engineering and

Support division of Annapolis-based Arinc Inc.

3,000 engineers and applied scientists Access to engineering-focused firms

U.S. Air Force Space Command

Innovation Broken up into four areas:

Digital Next-generation analytics and data science Predictive intelligence Innovation services

Cyber Security Devise cyber strategies for clients

Rising cost of data breaches

Increased cyber attack activity

Commercial and International Looking to re-establish commercial markets Grown commercial revenue to 3% since 2011 Emerging markets for IT Consulting

Brazil, Russia, India, China, Middle-East



Thoughts AppendixSource: Company 10-K

11

Margin AnalysisCompetitor MarginsMargin Growth

Margin Outlook Increased focus towards software vs. hardware

will lead to higher margins Targeting the commercial consulting market,

leading to higher margins relative to government contracts



Thoughts Appendix

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15$0mm

$200mm

$400mm

$600mm

5.0%

7.0%

9.0%

11.0%

Adj. EBITDA Margin

Variable Contracts Increasing fixed price contract mix resulting in

higher margin Hedge high risk of fixed price contracts with

time-and-material and cost-reimbursable contract mixes

Booz Alle

n Hamilton

Leidos Holdings

Maximus I

nc

Science

Applications I

ntl.

Mantech In

ternational Corp

Caci International

0.00%2.00%4.00%6.00%

Avg.

12

40499 40633 40999 41364 41729 42094$0

$50

$100

$150

$200

$250

$300

$350

Comparison of Cumulative Total Returns Since IPO

Booz Allen Hamilton Holding Corp Russell 1000 Index DJ US Computer Services

Return on Investment Assumes a $100 investment

Source: Company 10-K, Google Finance



Thoughts Appendix

13

SWOT Analysis



Thoughts Appendix

Long lasting customer relationships

72% of employees have classified clearances

Large backlog provides realizable revenues

S

Changes in U.S. government’s budget process

Upcoming U.S. Presidential election

Contract modifications

T

Relatively new to commercial market

Beginning to build international presence

Lack of consulting headcount to fulfill demand

W

Higher margins in commercial markets

International expansion

Increasing cyber attack activity

OSource: Company 10-K

Valuation Summary

14Investment Thesis




Public Comparables - EV/EBITDA

DCF - Bear Case

DCF - Base Case

Public Comparables - P/E

DCF - Bull Case

$10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00

Implied Price Target of $35.10

15

Valuation Historical Earnings Performance

Comparables

WACC Calculation

Comparable Analysis Low P/E ratio compared to its peers indicates

that the stock is currently undervalued

Capital structure causes its EV/EBITDA multiple to be slightly higher than average



Thoughts AppendixSource: Company 10-K, Bloomberg

WACC AnalysisMarket Value of Debt $1,590Market Value of Equity 4,330 Total Capital $5,920 Beta 1.24Market Risk Premium 5.75%Risk Free Rate 1.73%Cost of Equity 8.86%Cost of Debt 4.52%

WACC 7.29%

Implied ValuationEV/EBITDA

Low Average HighImplied Share Price $20.94 $26.50 $34.63

Upside (25.8%) (6.1%) 22.7% P/E

Implied Share Price $30.85 $36.47 $43.17 Upside 9.3% 29.2% 52.9%

Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 Q2 - 2016 Q3 - 20160

0.1

0.2

0.3

0.4

0.5

0.6

Consesus EPS Actual EPS

16

Discounted Cash Flow AnalysisPerpetuity Growth Method @ 2.25%

PV of Projection Period $ 1,698,178

2020 FCF 355,667

Perpetuity Growth Rate 2.25%

Terminal Value $ 7,217,842

Years 5.0

PV of Terminal Value $ 5,077,406

Total Enterprise Value $ 6,775,584

Equity Value 5,188,384

Shares Outstanding 147,196

Price Per Share $35.25

ValuationSensitivity Analysis



Thoughts AppendixSource: Company 10-K, Bloomberg

Variance of Perpetuity Growth Rate - Bull Case

WACC

1.75% 2.00% 2.25% 2.50% 2.75%6.50% $47.56 $50.20 $53.15 $56.47 $60.246.75% $44.20 $46.52 $49.11 $52.00 $55.257.00% $41.17 $43.23 $45.51 $48.04 $50.877.29% $38.04 $39.84 $41.82 $44.01 $46.447.50% $35.95 $37.59 $39.39 $41.36 $43.557.75% $33.68 $35.16 $36.77 $38.53 $40.468.00% $31.61 $32.94 $34.38 $35.96 $37.68

Variance of Perpetuity Growth Rate - Bear Case

WACC

1.75% 2.00% 2.25% 2.50% 2.75%6.50% $32.74 $34.70 $36.88 $39.34 $42.126.75% $30.25 $31.97 $33.89 $36.03 $38.437.00% $28.01 $29.54 $31.22 $33.10 $35.197.29% $25.69 $27.02 $28.49 $30.11 $31.917.50% $24.14 $25.36 $26.69 $28.15 $29.777.75% $22.47 $23.56 $24.75 $26.05 $27.488.00% $20.93 $21.91 $22.98 $24.15 $25.42

Variance of Perpetuity Growth Rate - Base Case

WACC

1.75% 2.00% 2.25% 2.50% 2.75%6.50% $40.21 $42.49 $45.04 $47.90 $51.156.75% $37.30 $39.31 $41.54 $44.04 $46.847.00% $34.69 $36.47 $38.44 $40.62 $43.067.29% $31.98 $33.54 $35.25 $37.14 $39.247.50% $30.18 $31.59 $33.15 $34.85 $36.747.75% $28.22 $29.49 $30.88 $32.40 $34.078.00% $26.43 $27.58 $28.82 $30.18 $31.67

Final Thoughts

17Investment Thesis



Booz Allen Hamilton is positioned to take advantage of growing threats facing both the United States government and private sector

Booz Allen Hamilton is a non-cyclical company as a result of its primary focus on government contracts

Growing demand for cyber security expertise due to increasing global cyber attack activity

Anticipated future margin growth led by a shift to fixed-price contracts and growth in commercial markets

We recommend Booz Allen Hamilton as a Buy with a 12 month price target of $35.10, which is an upside of 25.99% from the current share price of $27.86

Appendix

18Investment Thesis



19

Pro Forma Income Statement

Pro Forma Balance Sheet

Pro Forma Statement of Cash Flows

Discounted Cash flow

Comparables

United States Office Locations

International Office Locations

Notable Contract Awards

Appendix Table of Contents



Thoughts Appendix

20

Fiscal Year Ended March 31, 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E

Revenue $5,591,296 $5,859,218 $5,758,059 $5,478,693 $5,274,770 $5,353,892 $5,471,677 $5,608,469 $5,759,898 $5,915,415 % Growth 1.50% 2.20% 2.50% 2.70% 2.70%

Cost of revenue 2,836,955 2,934,378 2,871,240 2,716,113 2,593,849

2,611,341

2,646,904

2,690,643

2,740,250

2,790,576 % of Revenue 48.77% 48.37% 47.97% 47.57% 47.17%

Billable expenses 1,473,266 1,542,822 1,532,590 1,487,115 1,406,527

3,076,230

3,123,126

3,179,904

3,243,887

3,309,006

General and administrative expenses 881,028 903,721 833,986 742,527 752,912

1,646,702

1,671,805

1,702,198

1,736,448

1,771,306

Depreciation and amortization 80,603 75,205 74,009 72,327 62,660

137,044

139,134

141,663

144,513

147,414 Restructuring Charge 0 15,660 0 0 0 0 0 0 0 0

Total operating costs and expenses 5,271,852 5,471,786 5,311,825 5,018,082 4,815,948

4,859,976

4,934,065

5,023,766

5,124,848

5,227,727 % of Revenue 42.00% 41.80% 41.60% 41.40% 41.20%

Operating income 319,444 387,432 446,234 460,611 458,822 493,916 537,612 584,703 635,050 687,688

Interest expense (131,892) (48,078) (70,284) (78,030) (71,832)

(77,326)

(84,167)

(91,540)

(99,422)

(107,663)

Other, net (59,488) 4,520 (7,639) (1,794) (1,072) (1,154)

(1,256)

(1,366)

(1,484)

(1,607)

Income before income taxes 128,064 343,874 368,311 380,787 385,918 415,436 452,189 491,798 534,144 578,419

Income tax expense 43,370 103,919 149,253 148,599 153,349

138,848

151,132

164,370

178,523

193,321 Net income $84,694 $239,955 $219,058 $232,188 $232,569 $276,587 $301,057 $327,427 $355,621 $385,098

Earnings per common share (Note 3): Basic 0.74 1.83 1.56 1.62 1.58 $1.88 $2.05 $2.22 $2.42 $2.62

Pro Forma Income Statement



Thoughts AppendixSource: Bloomberg

21

Fiscal Year Ended March 31, 2011 2012 2013 2014 2015 x Assets

Cash and cash equivalents $192,631 $484,368 $350,384 $259,994 $207,217 Accounts receivable, net of allowance 1,111,004 1,077,315 1,029,586 916,737 857,310 Deferred income taxes 0 0 0 29,687 14,539 Prepaid expenses and other current assets 56,808 45,180 44,382 49,559 84,142 Income taxes receivable 0 46,794 0 0 0

Total current assets 1,360,443 1,653,657 1,424,352 1,255,977 1,163,208 Property and equipment, net of accumulated depreciation 173,430 191,079 166,570 129,427 111,367 Deferred income taxes 41,409 7,790 10,032 0 14,758 Intangible assets, net of accumulated amortization 240,238 223,834 236,220 220,887 219,382 Goodwill 1,163,549 1,188,004 1,277,369 1,273,789 1,304,231 Other long-term assets 44,954 50,427 62,985 60,738 64,547

Total assets$3,024,02

3 $3,314,79

1 $3,177,52

8 $2,940,81

8 $2,877,49

3

x Liabilities & Shareholder's Equity Current portion of long-term debt $30,000 $42,500 $55,562 $73,688 $57,063 Accounts payable and other accrued expenses 406,310 443,951 451,065 488,807 481,815 Accrued compensation and benefits 396,996 357,872 385,433 331,440 279,239 Deferred income taxes 21,231 59,493 10,286 0 0 Other current liabilities 11,598 10,630 62,300 23,169 30,877

Total current liabilities 866,135 914,446 964,646 917,104 848,994 Long-term debt, net of current portion 964,328 922,925 1,659,611 1,585,231 1,569,272 Income tax reserve 90,474 55,282 57,018 57,406 58,444 Deferred income taxes 0 0 0 8,231 0 Other long-term liabilities 195,836 236,953 269,460 201,210 214,285

Total liabilities$2,116,77

3 $2,129,60

6 $2,950,73

5 $2,769,18

2 $2,690,99

5

Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares; issued, 150,237,675 shares at March 31, 2015 and 143,962,073 shares at March 31, 2014; outstanding, 147,238,282 shares at March 31, 2015 and 143,352,448 shares at March 31, 2014 1,227 1,287 1,364 1,440 1,502 Non-voting common stock, Class B — $0.01 par value — authorized, 16,000,000 shares; issued and outstanding, 0 shares at March 31, 2015 and 582,080 shares at March 31, 2014 31 25 15 6 0 Restricted common stock, Class C — $0.01 par value — authorized, 5,000,000 shares; issued and outstanding, 0 shares at March 31, 2015 and 935,871 shares at March 31, 2014 20 15 12 9 0 Special voting common stock, Class E — $0.003 par value — authorized, 25,000,000 shares; issued and outstanding, 1,851,589 shares at March 31, 2015 and 4,424,814 shares at March 31, 2014 37 30 22 13 6 Treasury stock, at cost — 2,999,393 shares at March 31, 2015 and 609,625 shares at March 31, 2014 0 (5,377) (6,444) (10,153) (72,293)Additional paid-in capital 840,058 898,541 120,836 144,269 174,985 Retained earnings 71,330 299,379 124,775 42,688 104,457 Accumulated other comprehensive loss (5,453) (8,715) (13,787) (6,636) (22,159)

Total stockholders’ equity 907,250 1,185,185 226,793 171,636 186,498

Total liabilities and stockholders’ equity$3,024,02

3 $3,314,79

1 $3,177,52

8 $2,940,81

8 $2,877,49

3

Pro Forma Balance Sheet




22

Pro Forma Statement of Cash Flows



Thoughts Appendix

Fiscal Year Ended March 31, 2011 2012 2013 2014 2015 Assets

Cash and cash equivalents $192,631 $484,368 $350,384 $259,994 $207,217 Accounts receivable, net of allowance 1,111,004 1,077,315 1,029,586 916,737 857,310 Deferred income taxes 0 0 0 29,687 14,539 Prepaid expenses and other current assets 56,808 45,180 44,382 49,559 84,142 Income taxes receivable 0 46,794 0 0 0

Total current assets 1,360,443 1,653,657 1,424,352 1,255,977 1,163,208 Property and equipment, net of accumulated depreciation 173,430 191,079 166,570 129,427 111,367 Deferred income taxes 41,409 7,790 10,032 0 14,758 Intangible assets, net of accumulated amortization 240,238 223,834 236,220 220,887 219,382 Goodwill 1,163,549 1,188,004 1,277,369 1,273,789 1,304,231 Other long-term assets 44,954 50,427 62,985 60,738 64,547

Total assets$3,024,02

3 $3,314,79

1 $3,177,52

8 $2,940,81

8 $2,877,49

3

Liabilities & Shareholder's Equity Current portion of long-term debt $30,000 $42,500 $55,562 $73,688 $57,063 Accounts payable and other accrued expenses 406,310 443,951 451,065 488,807 481,815 Accrued compensation and benefits 396,996 357,872 385,433 331,440 279,239 Deferred income taxes 21,231 59,493 10,286 0 0 Other current liabilities 11,598 10,630 62,300 23,169 30,877

Total current liabilities 866,135 914,446 964,646 917,104 848,994 Long-term debt, net of current portion 964,328 922,925 1,659,611 1,585,231 1,569,272 Income tax reserve 90,474 55,282 57,018 57,406 58,444 Deferred income taxes 0 0 0 8,231 0 Other long-term liabilities 195,836 236,953 269,460 201,210 214,285

Total liabilities$2,116,77

3 $2,129,60

6 $2,950,73

5 $2,769,18

2 $2,690,99

5

Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares; issued, 150,237,675 shares at March 31, 2015 and 143,962,073 shares at March 31, 2014; outstanding, 147,238,282 shares at March 31, 2015 and 143,352,448 shares at March 31, 2014 1,227 1,287 1,364 1,440 1,502 Non-voting common stock, Class B — $0.01 par value — authorized, 16,000,000 shares; issued and outstanding, 0 shares at March 31, 2015 and 582,080 shares at March 31, 2014 31 25 15 6 0 Restricted common stock, Class C — $0.01 par value — authorized, 5,000,000 shares; issued and outstanding, 0 shares at March 31, 2015 and 935,871 shares at March 31, 2014 20 15 12 9 0 Special voting common stock, Class E — $0.003 par value — authorized, 25,000,000 shares; issued and outstanding, 1,851,589 shares at March 31, 2015 and 4,424,814 shares at March 31, 2014 37 30 22 13 6 Treasury stock, at cost — 2,999,393 shares at March 31, 2015 and 609,625 shares at March 31, 2014 0 (5,377) (6,444) (10,153) (72,293)Additional paid-in capital 840,058 898,541 120,836 144,269 174,985 Retained earnings 71,330 299,379 124,775 42,688 104,457 Accumulated other comprehensive loss (5,453) (8,715) (13,787) (6,636) (22,159)

Total stockholders’ equity 907,250 1,185,185 226,793 171,636 186,498

Total liabilities and stockholders’ equity$3,024,02

3 $3,314,79

1 $3,177,52

8 $2,940,81

8 $2,877,49

3

Source: Bloomberg

23

2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020EYear 1.0 2.0 3.0 4.0 5.0Revenue $5,591,296 $5,859,218 $5,758,059 $5,478,693 $5,274,770 $5,353,892 $5,471,677 $5,608,469 $5,759,898 $5,915,415

% Growth 4.8% (1.7%) (4.9%) (3.7%) 1.5% 2.2% 2.5% 2.7% 2.7%

Less: Cost of Goods Sold 2,836,955 2,934,378 2,871,240 2,716,113 2,593,849 $2,611,341 $2,646,904 $2,690,643 $2,740,250 $2,790,576

Gross Profit 2,754,341 2,924,840 2,886,819 2,762,580 2,680,921 2,742,550 2,824,773 2,917,826 3,019,647 3,124,839

Less: Operating Expenses 2,434,897 2,537,408 2,440,585 2,301,969 2,222,099 $2,248,634 $2,287,161 $2,333,123 $2,384,598 $2,437,151

Operating Income 319,444 387,432 446,234 460,611 458,822 493,916 537,612 584,703 635,050 687,688

Less: Taxes 43,370 103,919 149,253 148,599 153,349 165,078 179,683 195,421 212,248 229,842 Tax Rate 13.6% 26.8% 33.4% 32.3% 33.4% 33% 33% 33% 33% 33%NOPAT 276,074 283,513 296,981 312,012 305,473 328,838 357,930 389,282 422,801 457,847

Add: D&A 80,603 75,205 74,009 72,327 62,660 69,601 71,132 72,910 74,879 76,900 Less: Capex 87,400 53,593 190,452 13,556 60,575 53,539 76,603 128,995 57,599 59,154 Less: Change in W/C ($34,334) ($132,459) ($12,317) $11,493 (57,141) (22,559) (25,175) (26,053) (30,009)

Unlevered FCF $269,277 $339,459 $312,997 $383,100 $296,065 $402,040 $375,017 $358,373 $466,134 $505,603

PV of FCF @ Discount Rate 7.29% 374,728 325,795 290,185 351,802 355,667 PV of Projection Period 1,698,178

Discounted Cash Flow




24

Name Ticker Mkt. Cap EV/EBITDA T12M Net Sales T12M P/E

Booz Allen BAH $4,395.20 12.15x $5,324.37 16.52x

Leidos Holdings LDOS $3,658.66 9.25x $5,086.00 16.86x

Maximus Inc MMS $3,107.13 12.77x $2,189.50 21.70x

Science Applications SAIC $2,345.34 8.92x $4,315.00 18.69x

Mantech International Corp MANT $1,173.55 9.71x $1,550.12 23.59x

Caci International CACI $2,537.07 10.10x $3,336.18 18.81x

Average $2,869.49 10.48x $3,633.53 19.93x

Comparables




25

United States Office Locations

Source: Company 10-K



Thoughts Appendix

Corporate Headquarters

Major U.S. Military Installment

Office Location

26

International Office Locations

Corporate Headquarters

Major U.S. Military Installment

Office Location

Source: Company 10-K



Thoughts Appendix

27

March 2016: $5B IDIQ Cybersecurity and Information Systems Contract by Department of Defense

October 2015: $937M Threat Intelligence Contract with Department of Defense

August 2015: $500M Support Contract with Department of Health and Human Services

June 2015: $3.5B Research and Development Task Order with U.S. Army

June 2015: $7.9B Information Technology Contract with U.S. Air Force

May 2015: $39M Cyber Security Task with Department of Homeland Security

Notable Contract Awards

Source: Company 10-K, Google Finance



Thoughts Appendix