Escolar Documentos
Profissional Documentos
Cultura Documentos
- Financial Statements
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Assumptions & Valuation Overview
Valuation Date:
Company Name:
Share Price:
1/29/2010
Apple Inc.
$192.06
900,678
$172,984
920,526
$176,796
$35,395
$0
$0
$0
$0
$141,401
Name
Tranche A
Tranche B
Tranche C
Tranche D
Tranche E
Total
FY 2007
Number
34,375
2009
2010
1000
Exercise
Price
$81.17
Dilution
19,847
19,847
Historical
FY 2008
FY 2009
Projection
FY 2010E
FY 2011E
EV / Revenue:
EV / EBIT:
EV / EBITDA:
5.8 x
30.4 x
28.4 x
3.8 x
16.0 x
15.1 x
3.3 x
11.4 x
10.7 x
2.6 x
9.1 x
8.6 x
2.3 x
7.8 x
7.3 x
37.3 x
48.9 x
20.8 x
28.3 x
7.9 x
17.1 x
21.2 x
5.6 x
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Operating Assumptions
FY 2007
Historical
FY 2008
FY 2009
Projection
FY 2010E
FY 2011E
Revenue Growth %:
COGS % Revenue:
R&D % Revenue:
SG&A % Revenue:
27.2%
66.2%
2.4%
11.1%
52.5%
64.1%
2.0%
8.9%
14.4%
59.0%
1.9%
8.3%
25.0%
59.0%
1.9%
8.3%
17.0%
59.0%
1.9%
8.3%
1.0%
1.3%
5.3%
0.0%
30.2%
1.4%
1.3%
3.4%
0.0%
31.6%
1.7%
1.7%
1.4%
0.0%
31.8%
1.7%
1.7%
1.0%
9.0%
30.0%
1.7%
1.7%
1.0%
9.0%
30.0%
6.5%
23.3
2.1%
7.8%
28.2
1.8%
7.8%
28.2
1.8%
$40
7.8%
28.2
1.8%
$37
23.0%
82.6
102.9%
4.3%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
2.9%
2.7%
2.7%
2.7%
3.0%
Income Statement
Revenue:
Cost of Goods Sold:
FY 2007
FY 2008
$24,578
$16,282
$37,491
$24,049
FY 2009
$42,905
$25,324
FY 2010E
$53,631
$31,655
FY 2011E
$62,749
$37,037
Gross Profit:
Operating Expenses:
Research & Development:
Selling, General & Administrative:
Total Operating Expenses:
Depreciation & Amortization of PP&E:
Amortization of Intangibles:
Stock-Based Compensation:
$8,296
$13,442
$17,581
$21,976
$25,712
$596
$2,724
$3,320
$759
$3,345
$4,103
$830
$3,566
$4,397
$1,038
$4,458
$5,496
$1,214
$5,216
$6,430
$327
$0
$242
$496
$0
$516
$734
$0
$710
$918
$40
$888
$1,073
$37
$1,038
Operating Income:
Interest Income:
Interest Expense:
Other Income & Expense:
Pre-Tax Income:
Income Tax Provision:
$4,407
$647
$0
($48)
$5,006
$1,511
$8,327
$653
$0
($33)
$8,947
$2,828
$11,740
$407
$0
($81)
$12,066
$3,831
Net Income:
$3,495
$6,119
$3.93
889,292
$6.78
902,139
$4,649
$4,976
$4,735
$8,843
$9,339
$8,505
$24.17
EBIT:
EBITDA:
Levered Free Cash Flow:
Book Value Per Share (BV):
$14,635
Err:522
($45)
$0
Err:522
Err:522
$17,133
Err:522
($90)
$0
Err:522
Err:522
$8,235
Err:522
Err:522
$9.08
907,005
Err:522
907,005
Err:522
907,005
$15,523
$16,480
Err:522
Err:522
$18,171
$19,282
Err:522
Err:522
$12,450
$13,184
$10,311
$34.56
Balance Sheet
FY 2008
Assets:
Current Assets:
Cash & Cash-Equivalents:
Short-Term Securities:
$11,875
$10,236
FY 2009
$6,559
$26,282
FY 2010E
Err:522
$26,282
FY 2011E
Err:522
$26,282
Accounts Receivable:
Inventory:
Deferred Tax Assets:
Other Current Assets:
Total Current Assets:
$2,422
$509
$1,044
$3,920
$30,006
$3,361
$455
$4
$3,140
$39,801
$4,201
$569
$4
$3,140
Err:522
$4,915
$665
$4
$3,140
Err:522
Long-Term Assets:
Long-Term Securities:
Plants, Property & Equipment:
Goodwill:
Other Intangible Assets:
Other Assets:
Total Assets:
$2,379
$2,455
$207
$285
$839
$36,171
$2,554
$2,839
$207
$354
$2,011
$47,766
$2,554
$3,352
$207
$314
$2,011
Err:522
$2,554
$3,951
$207
$277
$2,011
Err:522
$5,520
$4,224
$1,617
$11,361
$5,601
$3,852
$2,053
$11,506
$7,001
$4,815
$2,566
$14,383
$8,191
$5,634
$3,003
$16,828
Long-Term Liabilities:
Deferred Revenue:
Long-Term Debt:
Other Long-Term Liabilities:
Total Liabilities:
$768
$0
$1,745
$13,874
$853
$0
$3,502
$15,861
$1,066
$1,000
$3,502
$19,951
$1,248
$1,000
$3,502
$22,577
Shareholders' Equity:
Common Stock:
Additional Paid-In Capital:
Treasury Stock:
Retained Earnings:
Accumulated Other Comprehensive Income:
$7,177
$0
$0
$15,129
($9)
$7,177
$1,185
$0
$23,364
$179
$7,177
$2,073
$0
Err:522
$179
$7,177
$3,111
$0
Err:522
$179
$22,297
$31,905
Err:522
Err:522
$36,171
$47,766
Err:522
Err:522
$0.000
$0.000
Err:522
Err:522
BALANCE CHECK:
Cash Flow Statement
Operating Activities:
Net Income:
Depreciation & Amortization of PP&E:
Amortization of Intangibles:
Stock-Based Compensation:
Deferred Income Tax Expense:
Loss on PP&E:
Changes in Operating Assets & Liabilities:
Accounts Receivable:
Inventory:
Other Current Assets:
Other Assets:
Accounts Payable:
Deferred Revenue:
Other Liabilities:
Cash Flow from Operations:
Investing Activities:
Purchases of Securities:
Proceeds from Maturities & Sales:
Purchases of LT Investments:
Capital Expenditures:
Acquisition of Intangibles:
Other:
Cash Flow from Investing:
FY 2007
FY 2008
FY 2009
FY 2010E
FY 2011E
$3,495
$327
$0
$242
$73
$12
$6,119
$496
$0
$516
$398
$22
$8,235
$734
$0
$710
$1,040
$26
Err:522
$918
$40
$888
$0
$0
Err:522
$1,073
$37
$1,038
$0
$0
($385)
($76)
($1,279)
$285
$1,494
$566
$716
$5,470
($785)
($163)
($274)
$289
$596
$718
$1,664
$9,596
($939)
$54
$780
($1,172)
$81
$521
$1,385
$11,455
($840)
($114)
$0
$0
$1,400
$727
$963
Err:522
($714)
($97)
$0
$0
$1,190
$618
$819
Err:522
($11,719) ($22,965)
$9,424
$16,243
($17)
($38)
($735)
($1,091)
($251)
($108)
$49
($230)
($3,249) ($8,189)
($46,724)
$30,678
($101)
($1,144)
($69)
($74)
($17,434)
$0
$0
$0
($1,430)
$0
$0
($1,430)
$0
$0
$0
($1,673)
$0
$0
($1,673)
Financing Activities:
Proceeds from Common Stock:
Common Stock Repurchased:
Dividends Issued:
Tax Benefits from Stock-Based Comp:
Raise / (Pay Off) Long-Term Debt
Cash Used for Equity Awards:
Cash Flow from Financing:
Increase / Decrease in Cash:
Cash & Cash Equivalents:
$365
$0
$0
$377
$0
($3)
$739
$2,960
$9,352
$483
$0
$0
$757
$0
($124)
$1,116
$2,523
$11,875
$475
$0
$0
$270
$0
($82)
$663
($5,316)
$6,559
$0
$0
$0
$0
$1,000
$0
$1,000
Err:522
Err:522
$0
$0
$0
$0
$0
$0
$0
Err:522
Err:522
Days in Year:
Debt Amount:
Tax Rate:
360
$1,000
30%
pt Exercise Price):
Projections
FY 2012E
FY 2013E
FY 2014E
2.0 x
7.0 x
6.6 x
1.9 x
6.4 x
6.1 x
1.7 x
6.0 x
5.7 x
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Projections
FY 2012E
FY 2013E
FY 2014E
11.0%
59.0%
1.9%
8.3%
9.0%
59.0%
1.9%
8.3%
7.0%
59.0%
1.9%
8.3%
1.7%
1.7%
2.0%
9.0%
30.0%
1.7%
1.7%
2.0%
9.0%
30.0%
1.7%
1.7%
3.0%
9.0%
30.0%
7.8%
28.2
1.8%
$28
7.8%
28.2
1.8%
$13
7.8%
28.2
1.8%
$10
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
2.7%
2.7%
2.7%
FY 2012E
$69,651
$41,111
FY 2013E
$75,919
$44,811
FY 2014E
$81,234
$47,948
$28,540
$31,109
$33,286
$1,348
$5,789
$7,137
$1,469
$6,311
$7,780
$1,572
$6,752
$8,324
$1,192
$28
$1,153
$1,299
$13
$1,256
$1,390
$10
$1,344
$19,030
Err:522
($90)
$0
Err:522
Err:522
$20,761
Err:522
($90)
$0
Err:522
Err:522
$22,218
Err:522
($90)
$0
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
907,005
Err:522
907,005
Err:522
907,005
$20,183
$21,403
Err:522
Err:522
$22,017
$23,329
Err:522
Err:522
$23,562
$24,962
Err:522
Err:522
FY 2012E
Err:522
$26,282
FY 2013E
Err:522
$26,282
FY 2014E
Err:522
$26,282
$5,456
$739
$4
$3,140
Err:522
$5,947
$805
$4
$3,140
Err:522
$6,364
$861
$4
$3,140
Err:522
$2,554
$4,617
$207
$249
$2,011
Err:522
$2,554
$5,342
$207
$236
$2,011
Err:522
$2,554
$6,118
$207
$226
$2,011
Err:522
$9,093
$6,253
$3,333
$18,679
$9,911
$6,816
$3,633
$20,360
$10,605
$7,293
$3,887
$21,785
$1,385
$1,000
$3,502
$24,565
$1,509
$1,000
$3,502
$26,371
$1,615
$1,000
$3,502
$27,902
$7,177
$4,263
$0
Err:522
$179
$7,177
$5,520
$0
Err:522
$179
$7,177
$6,864
$0
Err:522
$179
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
FY 2012E
FY 2013E
FY 2014E
Err:522
$1,192
$28
$1,153
$0
$0
Err:522
$1,299
$13
$1,256
$0
$0
Err:522
$1,390
$10
$1,344
$0
$0
($541)
($73)
$0
$0
$901
$468
$620
Err:522
($491)
($66)
$0
$0
$818
$425
$563
Err:522
($416)
($56)
$0
$0
$694
$360
$477
Err:522
$0
$0
$0
($1,857)
$0
$0
($1,857)
$0
$0
$0
($2,024)
$0
$0
($2,024)
$0
$0
$0
($2,166)
$0
$0
($2,166)
$0
$0
$0
$0
$0
$0
$0
Err:522
Err:522
$0
$0
$0
$0
$0
$0
$0
Err:522
Err:522
$0
$0
$0
$0
$0
$0
$0
Err:522
Err:522
Err:502
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Err:502
Methodology Name
Public Company Comparables:
2009 EV / Revenue:
2010E EV / Revenue:
2009 EV / EBITDA:
2010E EV / EBITDA:
2009 P / E:
2010E P / E:
Precedent Transactions:
Trailing EV / Revenue:
Forward EV / Revenue:
Trailing EV / EBITDA:
Forward EV / EBITDA:
Discounted Cash Flow Analysis:
11-15% Discount Rate, 5-9x Terminal Multiple:
Err:502
25th
Pecentile
Multiple
Minimum
Multiple
0.3
0.3
4.4
3.7
15.0
10.9
x
x
x
x
x
x
0.5
0.5
7.3
5.1
16.1
12.2
x
x
x
x
x
x
0.4
0.4
8.7
9.6
x
x
x
x
1.9
2.1
11.5
13.4
x
x
x
x
Thousands)
Err:502
Err:502
75th
Pecentile
Multiple
Median
Multiple
Maximum
Multiple
Applicable
Err:502
Figure
Minimum
Multiple
25th
Pecentile
Multiple
1.1
1.0
7.6
5.5
19.7
16.3
x
x
x
x
x
x
2.8
2.3
10.6
6.8
29.1
16.6
x
x
x
x
x
x
3.1
2.6
11.5
8.4
47.2
44.6
x
x
x
x
x
x
$42,905 $
$53,631
$13,184
$16,480
$9.08
Err:522
52.12 $
54.32
101.49
103.84
136.10
Err:522
59.64
66.62
143.02
129.06
145.77
Err:522
2.7
2.7
14.4
19.1
x
x
x
x
6.0
5.0
17.3
23.9
x
x
x
x
8.3
7.5
39.7
32.8
x
x
x
x
$42,905
$53,631
$13,184
$16,480
57.41
63.66
162.40
211.19
129.08
163.31
202.99
277.70
163.88
182.19
Err:502
Median
Multiple
75th
Pecentile
Multiple
Maximum
Multiple
89.08 $
96.83
146.90
137.54
179.19
Err:522
170.37 $
173.80
190.08
160.94
264.11
Err:522
181.29
189.43
203.41
187.95
428.24
Err:522
165.82
198.04
244.29
379.76
319.62
328.66
285.53
465.76
424.32
472.85
606.40
625.62
201.98
223.36
246.46
$35,395
Precedent Transactions
Trailing EV / Revenue:
Forward EV / Revenue:
Trailing EV / EBITDA:
Forward EV / EBITDA:
$100.00
$200.00
Min.
$
163.88
Forward EV / EBITDA:
Trailing EV / EBITDA:
Forward EV / Revenue:
Trailing EV / Revenue:
$
$
$
$
211.19
162.40
63.66
57.41
2010E P / E:
2009 P / E:
2010E EV / EBITDA:
2009 EV / EBITDA:
2010E EV / Revenue:
2009 EV / Revenue:
$
$
$
$
$
Err:522
136.10
103.84
101.49
54.32
52.12
$300.00
75th to Max
Median to
75th
25th to
Median
Min to 25th
.00
$300.00
$400.00
$500.00
25th
Median
75th
Max
$
182.19 $
201.98 $
223.36 $
$600.00
246.46
$700.00
Min Point
25 Point
$
163.88 $
18.31
$
$
$
$
277.70
202.99
163.31
129.08
$
$
$
$
379.76
244.29
198.04
165.82
$
$
$
$
465.76
285.53
328.66
319.62
$
$
$
$
625.62
606.40
472.85
424.32
$
$
$
$
211.19
162.40
63.66
57.41
$
$
$
$
66.51
40.59
99.65
71.67
$
$
$
$
$
Err:522
145.77
129.06
143.02
66.62
59.64
$
$
$
$
$
Err:522
179.19
137.54
146.90
96.83
89.08
$
$
$
$
$
Err:522
264.11
160.94
190.08
173.80
170.37
$
$
$
$
$
Err:522
428.24
187.95
203.41
189.43
181.29
$
$
$
$
$
Err:522
136.10
103.84
101.49
54.32
52.12
$
$
$
$
$
Err:522
9.67
25.23
41.53
12.31
7.53
75th to Max
Median to
75th
25th to
Median
Min to 25th
0.00
Med Point
75 Point
Max Point
$
19.79 $
21.38 $
23.10
$
$
$
$
102.06
41.30
34.73
36.74
$
$
$
$
86.00
41.24
130.62
153.80
$
$
$
$
159.85
320.86
144.19
104.70
$
$
$
$
$
Err:522
33.43
8.47
3.87
30.21
29.44
$
$
$
$
$
Err:522
84.92
23.41
43.18
76.97
81.29
$
$
$
$
$
Err:522
164.13
27.01
13.33
15.63
10.93
Comparable Companies - US-Based Hardware & Networking Companies with Over $20
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Operating Statistics
Company Name
Hewlett-Packard Company
Dell Inc.
Cisco Systems, Inc.
Intel Corporation
Motorola, Inc.
Share
Price
$ 47.07
12.90
22.47
19.40
6.15
Capitalization
Equity
Enterprise
Revenue
Value
Value
2009
$ 114,779 $ 124,430 $ 114,552
25,241
15,080
51,430
131,739
106,671
34,807
107,224
92,786
32,784
14,239
10,665
23,457
Maximum
75th Percentile
Median
25th Percentile
Minimum
$ 47.07
22.47
$ 19.40
12.90
6.15
$ 131,739
114,779
$107,224
25,241
14,239
$ 124,430
106,671
$ 92,786
15,080
10,665
$ 114,552
51,430
$ 34,807
32,784
23,457
Apple Inc.
$192.06
$176,796
$141,401
$42,905
Company Name
Hewlett-Packard Company
Dell Inc.
Cisco Systems, Inc.
Intel Corporation
Motorola, Inc.
Share
Price
$ 47.07
12.90
22.47
19.40
6.15
Capitalization
Equity
Enterprise
Value
Value
$ 114,779 $ 124,430
25,241
15,080
131,739
106,671
107,224
92,786
14,239
10,665
Maximum
75th Percentile
Median
25th Percentile
Minimum
$ 47.07
22.47
$ 19.40
12.90
6.15
$ 131,739
114,779
$107,224
25,241
14,239
$ 124,430
106,671
$ 92,786
15,080
10,665
3.1 x
2.8 x
1.1 x
0.5 x
0.3 x
Apple Inc.
$192.06
$176,796
$141,401
3.3 x
Valuation Statistics
Enterprise Value /
Revenue
2009
1.1 x
0.3 x
3.1 x
2.8 x
0.5 x
Revenue
2010E
$ 124,179
55,380
41,163
39,941
22,056
$ 124,179
55,380
$ 41,163
39,941
22,056
$ 53,631
Enterprise Value /
Revenue
2010E
1.0
0.3
2.6
2.3
0.5
x
x
x
x
x
EBITDA
2009
2010E
$ 16,433 $ 18,186
3,426
4,129
10,076
12,774
12,708
18,332
926
1,927
2009
2010E
$
3.14 $
3.87
0.79
1.18
0.97
1.38
0.41
1.17
(1.70)
0.14
16,433
12,708
$ 10,076
3,426
926
$13,184
18,332
18,186
$ 12,774
4,129
1,927
$16,480
Enterprise Value /
EBITDA
2009
2010E
7.6 x
6.8
4.4 x
3.7
10.6 x
8.4
7.3 x
5.1
11.5 x
5.5
x
x
x
x
x
EPS
3.14 $
0.97
0.79 $
0.41
(1.70)
$9.08
3.87
1.38
1.18
1.17
0.14
Err:522
P / E Multiple
2009
2010E
15.0 x
12.2
16.4 x
10.9
23.1 x
16.3
47.2 x
16.6
NM
44.6
x
x
x
x
x
2.6 x
2.3 x
1.0 x
0.5 x
0.3 x
11.5 x
10.6 x
7.6 x
7.3 x
4.4 x
8.4 x
6.8 x
5.5 x
5.1 x
3.7 x
47.2 x
29.1 x
19.7 x
16.1 x
15.0 x
44.6 x
16.6 x
16.3 x
12.2 x
10.9 x
2.6 x
10.7 x
8.6 x
21.2 x
Err:522
Projected
Revenue
Growth
8.4%
7.7%
18.3%
21.8%
(6.0%)
EBITDA Margin
2009
14.3%
6.7%
28.9%
38.8%
3.9%
21.8%
18.3%
8.4%
7.7%
(6.0%)
38.8%
28.9%
14.3%
6.7%
3.9%
25.0%
30.7%
EBITDA Margin
2010E
14.6%
7.5%
31.0%
45.9%
8.7%
45.9%
31.0%
14.6%
8.7%
7.5%
30.7%
Networking & Hardware M&A Transactions Over $1 Billion with US-Based Sellers Since
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Err:502
Acquirer Name
Hewlett-Packard Company
Cisco Systems, Inc.
Emerson Electric Co.
EMC Corporation
Oracle Corporation
Brocade Communication Systems, Inc.
Target Name
3Com
Starent Networks
Avocent
Data Domain
Sun Microsystems
Foundry Networks
Maximum
75th Percentile
Median
25th Percentile
Minimum
Date
11/11/2009
10/13/2009
10/6/2009
7/8/2009
4/20/2009
7/21/2008
Valuatio
Equity
Enterprise Trailing
Value
Value
Revenue
$
3,180 $
2,714 $
1,265
2,777
2,386
288
1,114
1,147
611
2,362
2,085
301
7,075
5,392
13,256
2,899
2,063
621
Forward
Revenue
$
1,223
320
542
375
12,462
633
Trailing
EBITDA
$
152
154
105
53
623
156
Forward
EBITDA
$
110
110
93
64
559
125
7,075
3,110
2,838
2,466
1,114
$
$
5,392
2,632
2,235
2,068
1,147
$
$
13,256
1,104
616
378
288
12,462
1,075
587
417
320
623
155
153
117
53
559
121
110
97
64
EV /
Trailing
Revenue
2.1 x
8.3 x
1.9 x
6.9 x
0.4 x
3.3 x
8.3 x
6.0 x
2.7 x
1.9 x
0.4 x
Valuation Multiples
EV /
EV /
Forward
Trailing
Revenue
EBITDA
2.2 x
17.8 x
7.5 x
15.5 x
2.1 x
10.9 x
5.6 x
39.7 x
0.4 x
8.7 x
3.3 x
13.2 x
7.5 x
5.0 x
2.7 x
2.1 x
0.4 x
39.7 x
17.3 x
14.4 x
11.5 x
8.7 x
EV /
Forward
EBITDA
24.6 x
21.6 x
12.3 x
32.8 x
9.6 x
16.5 x
32.8 x
23.9 x
19.1 x
13.4 x
9.6 x
Err:502
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Err:502
FY 2010E FY 2011E FY 2012E
Revenue:
EBITDA:
Operating Income:
$53,631
$16,480
$14,635
Less: Taxes
($4,391)
Plus: Depreciation
Plus: Amortization
Plus: Stock-Based Compensation
Less: Increase in Working Capital:
Less: Capital Expenditures
Unlevered Free Cash Flow
Present Value of Free Cash Flow
Normal Discount Period:
Mid-Year Discount:
$918
$40
$888
$2,136
($1,430)
$12,795
$12,064
1.000
0.500
$62,749
$ 19,282
$ 17,133
$69,651
$ 21,403
$ 19,030
($5,140)
($5,709)
$1,073
$37
$1,038
$1,192
$28
$1,153
$1,815
($1,673)
$1,374
($1,857)
$14,284
$11,971
$15,211
$11,332
2.000
1.500
3.000
2.500
11.6%
6.5%
Terminal
Growth Rate
Err:502
10.0%
$ 220.90
$ 220.90
$ 220.90
$220.90
$ 220.90
$ 220.90
11.0%
$ 214.27
$ 214.27
$ 214.27
$214.27
$ 214.27
$ 214.27
Discount Rate
12.0%
13.0%
14.0%
$ 207.97 $201.98 $ 196.28
$ 207.97 $201.98 $ 196.28
$ 207.97 $201.98 $ 196.28
$207.97 $201.98 $196.28
$ 207.97 $201.98 $ 196.28
$ 207.97 $201.98 $ 196.28
$ 204.96
10.0%
4.0 x $ 170.39
5.0 x $ 187.23
11.0%
$ 165.99
$ 182.09
Discount Rate
12.0%
13.0%
14.0%
$ 161.81 $157.83 $ 154.03
$ 177.20 $172.54 $ 168.11
$ 204.96
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Terminal
EBITDA
Multiple
Err:502
Terminal
EBITDA
Multiple
6.0 x
7.0 x
8.0 x
9.0 x
$ 204.06
$220.90
$ 237.74
$ 254.58
$ 198.18
$214.27
$ 230.37
$ 246.46
$ 192.59
$207.97
$ 223.36
$ 238.75
$187.26
$201.98
$216.70
$231.42
$ 182.19
$196.28
$ 210.36
$ 224.44
n Thousands)
Err:502
FY 2013E FY 2014E
$75,919
$ 23,329
$ 20,761
$81,234
$ 24,962
$ 22,218
($6,228)
($6,665)
$1,299
$13
$1,256
$1,390
$10
$1,344
$1,248
($2,024)
$1,058
($2,166)
$16,324
$10,811
$17,189
$10,119
4.000
3.500
5.000
4.500
7.3%
5.3%
e
15.0%
$ 190.85
$ 190.85
$ 190.85
$190.85
$ 190.85
$ 190.85
16.0%
$ 185.68
$ 185.68
$ 185.68
$185.68
$ 185.68
$ 185.68
15.0%
$ 150.40
$ 163.88
16.0%
$ 146.95
$ 159.86
Yes
12.5%
7.0 x
3.0%
$ 174,733
PV of Terminal Value:
Sum of PV of Cash Flows:
Enterprise Value:
$96,980
$56,296
$153,276
63.3%
Enterprise Value:
Balance Sheet Adjustment:
Implied Equity Value:
$153,276
$35,395
$188,671
$ 204.96
$ 177.37
$190.85
$ 204.33
$ 217.81
$ 172.77
$185.68
$ 198.59
$ 211.50
Err:502
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Discount Rate Calculation - Assumptions
Risk-Free Rate:
Equity Risk Premium:
Interest Rate on Debt:
4.38%
7.00%
9.00%
1.23
Apple Inc.
1.57
Tax Rate
20.0%
27.0%
22.0%
33.0%
34.0%
Err:502
Unlevered
Beta
Apple Inc.
1.16
Debt
$0
Equity
Value
$176,796
Tax Rate
30%
WACC = Cost of Equity * % Equity + Cost of Debt * % Debt * (1 - Tax Rate) + Cost of Preferred Sto
WACC
Unlevered
Beta
0.94
1.18
1.16
1.15
1.58
1.16
Levered
Beta
1.16
12.50%
15.37%
Err:502
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Transaction Assumptions
Per Share Purchase Price:
% Cash:
% Debt:
% Stock:
Foregone Cash Interest Rate:
$75.00
33.3%
33.3%
33.3%
1.0%
Revenue Synergy %:
Cost Synergies % OpEx:
10.0%
10.0%
$43,049
($6,987)
$147
$36,209
($174)
($7,242)
($43)
$2,225
$30,975
Apple Inc.
$192.06
920,526
$176,796
$141,401
30%
Revenue:
Cost of Goods Sold:
Gross Profit:
FY 2010E FY 2011E
$53,631 $62,749
$31,655
$37,037
$21,976 $25,712
Operating Expenses:
Depreciation of PP&E:
Amortization of Intangibles:
Stock-Based Compensation:
Operating Income:
Interest Income / (Expense):
Pre-Tax Income:
Income Tax Provision:
$5,496
$6,430
$918
$40
$888
$1,073
$37
$1,038
$14,635 $17,133
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Net Income:
Err:522
Err:522
Err:522
907,005
Err:522
907,005
Combined Revenue:
Revenue Synergies:
Cost of Goods Sold:
Revenue Synergy COGS:
Gross Profit:
Operating Expenses:
OpEx Synergies:
Depreciation of PP&E:
Depr. of PP&E Write-Up:
Amortization of Intangibles:
Amort. of New Intangibles:
Stock-Based Compensation:
Operating Income:
Interest Income / (Expense):
Foregone Interest on Cash:
Interest Paid on New Debt:
Pre-Tax Income:
Income Tax Provision:
FY 2010E FY 2011E
$70,862 $83,617
$1,723
$2,087
$41,410
$48,905
$862
$1,043
$30,313 $35,755
$8,193
$270
$9,689
$326
$1,348
$22
$399
$1,448
$939
$1,637
$22
$470
$1,448
$1,101
$18,233 $21,713
Err:522
Err:522
($143)
($143)
($1,291)
($1,291)
Err:522
Err:522
Err:522
Err:522
Net Income:
Err:522
Err:522
Err:522
Err:522
981,719
981,719
Accretion / Dilution:
Accretion / Dilution %:
Err:522
Err:522
Err:522
Err:522
Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Operating Ex
Expense Synergies % S
Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Revenue Syn
Revenue Synergies % Se
$43,049
$14,350
$14,350
74,714
9.0%
50.0%
10.0%
$174
8
$36,209
20.0%
$7,242
5
$2,225
Revenue:
Cost of Goods Sold:
Gross Profit:
FY 2010E
$17,231
$9,755
$7,476
FY 2011E
$20,868
$11,869
$9,000
Operating Expenses:
$2,698
$3,259
Depreciation of PP&E:
Amortization of Intangibles:
Stock-Based Compensation:
$431
$359
$52
$563
$433
$63
Operating Income:
Interest Income / (Expense):
Pre-Tax Income:
Income Tax Provision:
$3,937
$25
$3,962
$1,148
$4,682
$33
$4,714
$1,343
Net Income:
$2,814
$3,371
$5.03
560,000
$6.02
560,000
Merger Model - Seller Diluted Share Count & Combined Balance Sheets
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Diluted Share & Enterprise Value Calculations - Seller
Company Name:
Share Price:
Offer Price Per Share:
Current Share Price:
Basic Shares Outstanding:
Basic Equity Value:
Diluted Shares Outstanding:
Diluted Equity Value:
Less: Cash & Investments
Plus: Debt
Plus: Minority Interest
Plus: Preferred Stock
Plus: Other Liabilities
Enterprise Value:
568,900
$35,789
572,951
$36,044
$2,498
$0
$0
$0
$0
$33,547
Purchase Price:
Basic Shares Outstanding:
Basic Equity Value:
Diluted Shares Outstanding:
Diluted Equity Value:
Less: Cash & Investments
Plus: Debt
Plus: Minority Interest
Plus: Preferred Stock
Plus: Other Liabilities
Enterprise Value:
Buyer
$32,841
$3,361
$455
$4
$3,140
$39,801
Long-Term Assets:
Long-Term Securities:
Plants, Property & Equipment:
Goodwill:
Other Intangible Assets:
Other Assets:
Total Assets:
$2,554
$2,839
$207
$354
$2,011
$47,766
$5,601
$3,852
$2,053
$11,506
Long-Term Liabilities:
Deferred Revenue:
Long-Term Debt:
Deferred Income Tax Liability:
Other Long-Term Liabilities:
Total Liabilities:
$853
$0
$0
$3,502
$15,861
Shareholders' Equity:
Common Stock:
Additional Paid-In Capital:
Treasury Stock:
Retained Earnings:
Accumulated Other Comprehensive Income:
Total Shareholders' Equity:
$7,177
$1,185
$0
$23,364
$179
$31,905
$47,766
ice:
568,900
$42,668
573,986
$43,049
$2,498
$0
$0
$0
$0
$40,551
Seller
$1,664
$2,613
$573
$176
$190
$5,215
Name
Tranche A
Tranche B
Total
Number
10,470
Exercise
Price
$38.57
Dilution
4,051
4,051
Name
Tranche A
Tranche B
Total
Adjustments
($14,350)
$0
$0
$0
$0
###
Number
10,470
Exercise
Price
$38.57
Dilution
5,086
5,086
Combined
$20,156
$5,974
$1,028
$180
$3,330
$30,667
$834
$1,737
$147
$1,291
$0
$9,224
$0
$174
$30,828
$7,242
$0
$23,894
$3,388
$4,750
$31,182
$8,887
$2,011
$80,884
$496
$1,604
$67
$2,167
$0
$0
$0
$0
$6,097
$5,456
$2,120
$13,673
$0
$0
$43
$28
$2,238
$0
$14,350
$2,181
$0
$16,531
$853
$14,350
$2,225
$3,530
$34,630
$2,236
$139
($45)
$4,664
($8)
$6,987
$9,224
($2,236)
$14,211
$45
($4,664)
$8
$7,363
$23,894
$7,177
$15,535
$0
$23,364
$179
$46,255
$80,884