Q1

What are the average of the multiples for the 6 companies that you have calculated(Q3 in Assigment)?
EV/Sales
#REF!
EV/EBITDA
#REF!
EV/EBIT
#REF!
PER
#REF!

Q2
What do you think are reasonable ranges for EV/EBITDA multiples to be used for valuation of Eskimo(Q4 in Assig
(Required field)to(Required field)
#REF!

Q3
What is your estimate of the equity value of Eskimo based on comparable company (mutilples)analysis(Q5 in A
(Required field)
81
Q4
What is the average of the asset betas of the comparable companies(Q6 of Assignment)?
(Required field)
0.30x
Q5
What is the WACC that you used in your DCF valuation(Q7 of Assginment)?
(Required field)
9.66%
Q6
What is your valuation of the equity value of Eskimo based on your DCF analysis(Q8 of assignment)?
(Required field)
105.05

Assigment)?

of Eskimo(Q4 in Assignment)?

ples)analysis(Q5 in Assignment)?

ignment)?

Exhibit 6.2

Free cash flow forecast

($ 000)
Net Sales
Growth

Actual
1991

Year Ended December 31,

Forecast
1992
1993
1994

1995

60,955
29.1%

66,441
9.0%

71,092
7.0%

75,357
6.0%

79,125
5.0%

EBIT
Margin
EBIT Growth%

5,597
9.2%

6,644
10.0%

7,109
10.0%
7.00%

7,913
10.5%
11.30%

8,308
10.5%
5.00%

Income taxes
Tax rate

2,239
40.0%

2,658
40.0%

2,844
40.0%

3,165
40.0%

3,323
40.0%

3,358
5.5%

3,986
6.0%

4,266
6.0%

4,748
6.3%

4,985
6.3%

0
1,300
1,100

0
1,200
1,200

0
1,200
1,200

0
###
###

4,266
1.89%

4,748
11.30%

4,985
5.00%

8,309
1,200

9,113
1,200

9,508
1,200

NOPAT (or Net Income)

Margin
Less: Changes in Working Capital
Plus: Depreciation & Amortization
Less: Capital Expenditures
Un-Levered Free Cash Flow
Growth %
EBITDA
Depreciation & Amortization

4,186

6,997
1,400

7,944
1,300

1,
1996
83,081
5.0%
8,724
10.5%
5.00%
3,489
40.0%
5,234
6.3%
0
1,200
1,200
5,234
5.00%
9,924
1,200

Exhibit 8.2

Information about Comparable Companies

Company

Ticker Switch

Share Price

N. of Shares
(m)

Debt ($m)

Revenue
Growth %

Income
Growth %

PER =
Price/EPS
2008

2009
EV/ EBITDA

1
1
1
1
1
1
1
1
1
1
1

63.81
37.56
16.88
21.05
50.34
168.01
42.47
101.60
15.29
14.72
50.33

160.15
18.06
86.45
90.09
16.69
13.88
71.64
38.56
28.86
45.47
149.19

31.9
1.7
20.0
150.0
13.7
32.1
-

15%
55%
16%
-2%
20%
25%
17%
17%
61%
62%
43%

491%
54%
78%
9%
32%
24%
33%
45%
44%
126%
-3%

19.2x
42.4x
28.7x
19.5x
31.5x
33.2x
23.2x
19.0x
18.3x
NA
32.9x

14.5x
29.3x
18.1x
20.0x
23.4x
25.8x
17.5x
13.6x
35.4x
24.3x
24.5x

1
1
1
1
1
1
1
1
1
1
1

10.03
74.71
3.20
1.30
14.32
379.50
14.93
2.38
25.58
19.96
14.02

1,359.00
429.00
62.21
97.36
1,287.81
315.25
47.93
41.75
57.58
322.00
1,393.35

74.0
60.2
2.1
195.9
-

124%
29%
9%
8%
11%
31%
29%
20%
15%
15%
3%

340%
24%
2%
63%
-22%
9%
-2%
-117%
114%
55%
-78%

18.5x
53.8x
12.3x
NA
12.8x
23.6x
NA
NA
45.8x
NA
32.6x

17.2x
47.9x
25.7x
NA
17.1x
20.7x
NA
NA
46.0x
24.1x
37.3x

For Profit Companies

Apollo Group Inc

American Public Education Inc
Corinthian Colleges Inc.
Career Education Corp.
Capella Education
Strayer Education
DeVry Inc.
ITT Educational Services Inc.
K12 Inc.
Grand Canyon Education Inc.
New Oriental Ed & Tech Group I
Total - For Profit Companies
Internet Companies
Activision Blizard Inc.
Amazon.com
Dice Holding Inc.
Drugstore.com Inc
eBay
Google
GSI Commerce
TechTarget Inc.
MD Health Corp.
Electronic Arts Inc,

Yahoo Inc.
Total - Internet Companies

Software Companies
Adobe Systems
ArcSight Inc.
Intuit
Microsoft
Omniture
Salesforce.com
Symantec
Mcafee Inc.
Vmware Inc.

Total - Software Companies

1
1
1
1
1
1
1
1
1

23.64
14.15
25.35
18.83
13.54
37.36
16.47
34.49
29.60

524.27
31.50
320.53
8,891.00
75.05
122.43
819.92
153.72
389.86

350.0
998.1
13.2
1,766.0
450.0

13%
34%
15%
18%
107%
44%
5%
22%
42%

-41%
509%
9%
-32%
37%
93%
-234%
77%
62%

14.9x
NA
19.5x
10.2x
NA
NA
9.4x
26.1x
27.1x

22.9x
52.8x
16.2x
12.0x
NA
57.7x
9.5x
24.1x
33.9x

2008
EV/ EBITDA

EV ($m)

2009 EBITDA

EPS

Net Income

Beta

E/(E+D)

Beta
(Asset)

9.7x
20.5x
11.6x
6.8x
13.4x
17.8x
12.5x
10.1x
13.4x
30.2x
23.8x

10,219.2
678.3
1,491.2
1,898.1
840.2
2,332.0
3,062.6
4,067.7
455.0
701.4
7,508.7

704.8
23.2
82.4
94.9
35.9
90.4
175.0
299.1
12.9
28.9
306.5

3.3
0.9
0.6
1.1
1.6
5.1
1.8
5.3
0.8
1.5

532.2
16.0
50.8
97.3
26.7
70.2
131.1
206.2
24.1
228.2

0.6
NA
0.75
0.7
0.55
0.55
0.55
0.6
NA
NA
1.2

0.60
0.59
0.61
0.75
0.64
0.59
0.58
0.57
0.73
0.45
0.51

0.36
0.00
0.46
0.52
0.35
0.33
0.32
0.34
0.61
0.30

6.9x
27.1x
4.5x
NA
7.0x
13.2x
12.2x
8.8x
18.1x
NA
10.2x

13,630.8
32,124.6
259.3
128.7
18,441.4
119,637.4
911.5
99.4
1,472.9
6,427.1
19,534.8

792.5
670.7
10.1
1,078.4
5,779.6
32.0
266.7
523.7

0.5
1.4
0.3
0.0
1.1
16.1
0.0
0.0
0.6
0.4

736.8
595.7
16.2
1,440.7
5,069.4
32.2
599.2

NA
1.1
NA
1.65
1.15
0.9
1.15
1.45
0.85
0.9
1

0.71
0.64
0.85
0.00
0.71
0.61

0.00
0.70
0.00
0.00
0.82
0.55

8.6x
39.2x
9.2x
5.9x
16.4x
35.0x
4.7x
12.3x
21.0x

12,743.7
445.7
9,123.5
167,417.5
1,029.4
4,574.0
15,270.1
5,301.8
11,989.9

556.5
8.4
563.2
13,951.5
79.3
1,607.4
220.0
353.7

1.6
0.0
1.3
1.8
0.0
0.0
1.8
1.3
1.1

831.8
416.7
16,413.5
1,436.6
203.1
425.8

1.2
NA
0.9
0.8
1.3
1.2
0.9
1
NA

0.73
0.57
0.64
0.67
0.00
0.62

0.87
0.00
0.57
0.54
0.00
0.75

Eskimo Pie Valuation

Metric ($m)
DCF

92

EV/Sales
EV/EBITDA
EV/EBIT
PER

61.0
7.0
5.6
3.4

Average

Multiple
Low
High

1.0x
8.0x
10.0x
22.5x

1.5x
9.0x
11.0x
23.5x

Debt

Cash

Equity Value

13

Low
100.0

13
13
13
13

74.0
69.0
69.0
88.6
75.1
87.6

73.146

Equity Value
High
110.0

Mid
105

104.4
76.0
74.6
91.9

89
72
72
90

86.7
98.4

80.9
93.0

286
0.67933

Particulars

Source

Risk Free Rate

Ten year Treasury Yields
Equity Risk Premium
Assignment Documents
Average Asset Beta of Comparable Compmparable Companies data
Eskimo Pie's WACC

Value
7.42%
7.50%
0.30x
9.66%

Eskimo Pie Valuation

Valuation
Year Ending
Financial Year

Units

Source

DCF
Ungeared FCF

$m

Discount Factor
Period
% attributable

%
x
x

DCF

$m

FCF in Terminal Year

Terminal Value
Present Value of TV

$m
$m
$m

5 year DCF
TV

$m
$m

18
74

Enterprise Value
Add: Cash
Equity Value

$m

92
13
105.0

5
118
74.3

30-Dec-91
1991A

1.00x

30-Dec-92
1992F

30-Dec-93
1993F

30-Dec-94
1994F

30-Dec-95
1995F

30-Dec-96
1996F

4.2

4.3

4.7

5.0

5.2

0.91x
1
100%

0.83x
2
100%

0.76x
3
100%

0.69x
4
100%

0.63x
5
100%

3.8

3.5

3.6

3.4

3.3

WACC
TGR

9.7%
5.0%