comparable companies analysis (2)

Instructions

Inputs are colored blue. In general, these are the only values you need to change. To add comparable companies, simply copy down the last row in the Comps tab and add a corresponding options table to the Options tab. Modify the output pages as necessary to show the multiples and operating metrics that are relevant to you.

To add comparable companies, simply copy down the last row in the Comps tab and add a corresponding options table to the Options tab. Modify the output pages as necessary to show the multiples and operating metrics that are relevant to you.

Comparable Companies Analysis - Operating Metrics

Stock 08E/09EPrice Diluted Market Net Enterprise Revenue

Company 8/20/08 Shares Cap. Debt Value Growth

Company A $34.25 72.674 $2,489.1 $271.8 $2,760.9 18.6% Company B $12.84 212.476 $2,728.2 $259.2 $2,987.4 8.3% Company C $27.59 45.389 $1,252.3 ($56.4) $1,195.9 23.8%

High 23.8% Mean 16.9%

Median 18.6% Low 8.3%

($ in millions, except per share amounts)

EBITDA Margin Net MarginLTM CY08E CY09E LTM CY08E CY09E

29.5% 27.7% 26.1% 16.2% 15.6% 14.8% 20.6% 20.4% 21.2% 12.3% 12.0% 12.8% 16.4% 19.4% 19.4% 12.4% 14.0% 14.0%

29.5% 27.7% 26.1% 16.2% 15.6% 14.8% 22.1% 22.5% 22.2% 13.7% 13.9% 13.9% 20.6% 20.4% 21.2% 12.4% 14.0% 14.0% 16.4% 19.4% 19.4% 12.3% 12.0% 12.8%

Comparable Companies Analysis - Valuation Multiples

Stock Enterprise Value MultiplesPrice Diluted Market Net Enterprise LTM

Company 8/20/08 Shares Cap. Debt Value Revenue

Company A $34.25 72.674 $2,489.1 $271.8 $2,760.9 1.91x Company B $12.84 212.476 $2,728.2 $259.2 $2,987.4 1.99x Company C $27.59 45.389 $1,252.3 ($56.4) $1,195.9 1.70x

High 1.99x Mean 1.87x

Median 1.91x Low 1.70x

AI8

EV/EBITDA multiples are expressed to 2 decimal places.

($ in millions, except per share amounts)

Enterprise Value Multiples Equity Value MultiplesCY08E CY09E LTM CY08E CY09E CY08E CY09E CY08E

Revenue Revenue EBITDA EBITDA EBITDA P/E P/E P/E/G

1.67x 1.41x 6.5x 6.0x 5.4x 10.6x 9.6x 1.28x 1.88x 1.74x 9.7x 9.2x 8.2x 16.3x 15.3x 2.54x 1.79x 1.45x 10.3x 9.2x 7.4x 13.9x 12.5x 1.30x

1.88x 1.74x 10.3x 9.2x 8.2x 16.3x 15.3x 2.54x 1.78x 1.53x 8.8x 8.2x 7.0x 13.6x 12.5x 1.71x 1.79x 1.45x 9.7x 9.2x 7.4x 13.9x 12.5x 1.30x 1.67x 1.41x 6.5x 6.0x 5.4x 10.6x 9.6x 1.28x

AY8

PEG ratios are expressed to 2 decimal places.

Comparable Companies Inputs10 12 14

8/20/2008LTM Stock Basic Diluted

Company Ticker Date Price Shrs. Out. Shrs. Out.

1 Company A AAA 6/30/2008 $34.25 69.220 72.674 2 Company B BBB 6/30/2008 12.84 212.476 212.476 3 Company C CCC 6/30/2008 27.59 45.335 45.389

H6

This is the date of the most recent 10-K, 10-Q, or 8-K earnings release.

J6

This is the current stock price.

L6

Basic shares outstanding can be found on the cover of the latest 10-K or 10-Q.

N6

Diluted shares outstanding should include share equivalents from options, convertible debt, and convertible preferred stock.

16 18 20 22 24 26 28

Market Convertible Conversion Preferred Non-Conv. MinorityCap. Cash Debt Price Stock Debt Interest

$2,489.1 $259.3 $0.0 $0.00 $0.0 $531.1 $0.0 $2,728.2 $302.8 $450.0 $15.00 $0.0 $0.0 $112.0 $1,252.3 $123.6 $0.0 $0.00 $0.0 $67.2 $0.0

T6

This is the face value of convertible debt. Any in-the-money (ITM) convertible securities produce share equivalents that are added to the diluted shares calculation.

V6

The conversion price can be found in the latest 10-K, if not the latest 10-Q.

30 32 34 36 38 40 42

Net Enterprise Revenue EBITDADebt Value CY07A LTM CY08E CY09E CY07A

$271.8 $2,760.9 $1,333.6 $1,445.2 $1,652.5 $1,960.0 $406.3 $259.2 $2,987.4 $1,445.1 $1,500.8 $1,589.0 $1,721.3 $295.3 ($56.4) $1,195.9 $539.8 $705.5 $668.2 $827.1 $97.6

AL6

Obtain estimates from individual equity research reports or consensus estimates from FactSet, Bloomberg, IBES, CapitalIQ, etc. When using a single research report, annotate

AN10

No 2009 estimates are available for this company, so assume the growth rate from 2007 to 2008.

44 46 48 50 52 54 56

EBITDA Net IncomeLTM CY08E CY09E CY07A LTM CY08E CY09E

$425.9 $457.1 $511.0 $223.8 $234.7 $257.5 $289.9 $308.6 $324.4 $365.0 $163.3 $185.2 $190.9 $221.1 $115.6 $129.8 $160.7 $80.4 $87.5 $93.7 $116.0

AV10

No 2009 estimates are available for this company, so assume the same EBITDA margin as in the previous year.

BD10

No 2009 estimates are available for this company, so assume the same net margin as in the previous year.

58 60 62 64

EPS 5-YearCY07A CY08E CY09E EPS CAGR

$3.01 $3.23 $3.55 8.3% $0.74 $0.79 $0.84 6.4% $1.79 $1.98 $2.20 10.7%

Options Tables

Tranche 1 Tranche 2 Tranche 3

1 Company A Number of Options (mm) 8.350 7.561 0.391 $34.25 Weighted-Average Strike $24.13 $29.78 $35.11

Treasury Shares 2.467 0.987 0.000

2 Company B Number of Options (mm)$12.84 Weighted-Average Strike


3 Company C Number of Options (mm) 0.042 0.037 2.775 $27.59 Weighted-Average Strike $18.67 $26.33 $27.20


G5

Most companies only report detailed options tables in their 10-Ks, but some do so in their 10-Qs as well. Use the most recent data available.

G6

Tranches are listed in ascending order of weighted-average strike price.

Tranche 4 Tranche 5 Tranche 6 Tranche 7 Tranche 8 Tranche 9 Tranche 10

1.313 0.000 $46.21 $0.00

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

3.780 3.313 2.007 1.000 $36.11 $42.57 $47.20 $55.00

0.000 0.000 0.000 0.000 0.000 0.000 0.000

Total

3.454

0.000

0.054

comparable companies analysis (2)

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