2001

Revenue € 320.4
Cash expenses -€ 283.1
Depreciation -€ 10.0
EBIT € 27.3
Tax 34% € 9.3
NOPAT € 18.0
Capital Expenditure € 234.0
Depreciation -€ 10.0
Net Working Capital € 33.9
Change in NWC
FCFF
Growth Percentage

cost of capital
Discount factor 1.00
PV € 0.00
NPV € 695.47

Terminal Value € 1,353.68

NPV € 695.47
Long Term Debt 291
Value of Equity € 404.80
Shares Outstanding 35.1
Price/ Share € 26.65
EBIT
Depreciation
EBITDA

Enterprise Value
cost of capital
Discount factor
PV
Price/Share

Enterprise Value
cost of capital
Discount factor
PV
Price/Share

Price/ Share in 2003

Price/ Share in 2003
 2002 2003 2004 2005 2006 2007
€ 599.7 € 883.9 € 1,191.9 € 1,485.2 € 1,802.0 ###
-€ 502.2 -€ 723.3 -€ 975.1 -€ 1,214.8 -€ 1,473.6 ###
-€ 18.0 -€ 26.0 -€ 36.0 -€ 45.0 -€ 54.0 -€ 65.0
€ 79.5 € 134.6 € 180.8 € 225.4 € 274.3 € 326.0
€ 27.0 € 45.8 € 61.5 € 76.6 € 93.3 € 110.8
€ 52.4 € 88.8 € 119.3 € 148.7 € 181.1 € 215.2
€ 290.4 € 328.3 € 344.8 € 310.3 € 325.8 € 342.1
-€ 18.0 -€ 26.0 -€ 36.0 -€ 45.0 -€ 54.0 -€ 65.0
€ 63.5 € 93.5 € 126.1 € 157.2 € 190.7 € 226.9
€ 29.6 € 30.1 € 32.6 € 31.0 € 33.5 € 36.2
-€ 249.5 -€ 243.6 -€ 222.1 -€ 147.6 -€ 124.3 -€ 98.1
-2.36% -8.84% -33.54% -15.80% -21.05%

9.87% 9.87% 9.87% 9.87% 9.87% 9.87%

0.91 0.83 0.75 0.69 0.62 0.57
-€ 227.07 -€ 201.78 -€ 167.42 -€ 101.28 -€ 77.61 -€ 55.77

IPO Shares Number

Number Share IPO 5,500,000.00
Over-allotment 825,000.00
total Share after IPO 41,425,000.00

Multiple Evaluation
 Low Cost industries

EBITDA
Company Price/Shar Book
EBITDA/Share EBIT/Share Multiple
- Trailing e Debt/Share
- Trailing

AirTran 6.6 4 1.2 0.8 8.6

ATA 15 32.9 8.5 -6.4 5.6
Frontier 17 0 3.2 0.6 5.3
Ryanair 32.1 3.3 1.3 1.2 26.4
Southwest 18.5 1.8 1.5 1.4 13.4
WestJet 15.9 1 2.1 1.6 8.1
Average 17.52 7.17 2.97 -0.13 11.23
Median 16.45 2.55 1.80 1.00 8.35

2001 2002 2003 2004 2005

27.3 79.5 134.6 180.8 225.4
-€ 10.0 -€ 18.0 -€ 26.0 -€ 36.0 -€ 45.0
€ 37.3 € 97.5 € 160.6 € 216.8 € 270.4

Based on EBIT
0 0 1729.6115566209 2322.9292896317 2895.975
€ 0.00 0.00% 9.87% 9.87% 9.87%
0.00 0.00 0.83 0.75 0.69
€ 0.00 € 0.00 € 1,432.80 € 1,751.43 € 1,987.33
€ - € - € 34.59 € 42.28 € 47.97
Based on EBIDTA
€ 0.00 € 0.00 € 1,341.01 € 1,810.05 ###
0.00% 9.87% 9.87% 9.87%
0.00 0.00 0.83 0.75 0.69
€ 0.00 € 1,110.89 € 1,364.73 € 1,549.23
€ - € 26.82 € 32.94 € 37.40

€ 34.59
€ 26.82 @
 2008 2009 2010 Terminal
€ 2,466.5 € 2,694.2 € 2,912.3
-€ 2,016.2 -€ 2,201.9 -€ 2,379.6
-€ 75.0 -€ 83.0 -€ 90.0
€ 375.3 € 409.3 € 442.7
€ 127.6 € 139.2 € 150.5
€ 247.7 € 270.2 € 292.2
€ 299.3 € 157.1 € 132.0
-€ 75.0 -€ 83.0 -€ 90.0
€ 261.0 € 285.1 € 308.2
€ 34.2 € 24.1 € 23.1
-€ 10.8 € 171.9 € 227.1 € 3,158.2
-89.00% -1693.04% 32.10%

9.87% 9.87% 9.87% 9.87%

0.52 0.47 0.43 0.43
-€ 5.58 € 80.96 € 97.34 € 1,353.68
 EBIT
EBIT
Leading
Multiple -
Multiple -
Trailing
Leading
13 13.9
-23.8 -7.5
5.7 26.6
38.5 30.3
18.6 14.3
12.7 10.6
10.78 14.70
12.85 14.10

2006 2007 2008 2009 2010

274.3 326.0 375.3 409.3 442.7
-€ 54.0 -€ 65.0 -€ 75.0 -€ 83.0 -€ 90.0
€ 328.3 € 391.0 € 450.3 € 492.3 € 532.7

d on EBIT
3525.36627 4189.0867 4822.4384 5259.97758 5688.8075
9.87% 9.87% 9.87% 9.87% 9.87%
0.62 0.57 0.52 0.47 0.43
€ 2,201.91 € 2,381.40 € 2,495.16 € 2,477.05 € 2,438.32
€ 53.15 € 57.49 € 60.23 € 59.80 € 58.86
on EBIDTA
€ 2,741.70 € 3,264.84 € 3,759.90 € 4,111.01 € 4,448.12
9.87% 9.87% 9.87% 9.87% 9.87%
0.62 0.57 0.52 0.47 0.43
€ 1,712.44 € 1,855.99 € 1,945.40 € 1,935.98 € 1,906.54
€ 41.34 € 44.80 € 46.96 € 46.73 € 46.02
Equity
Risk Free Rate 5%
Market Risk Premium 5%
Beta (Proxy SWA) 1.1

CAPM 10.5%

Weight
Stock Price 20.69
Shares Outstanding 776,800,000
Market value of Equity 16,071,992,000

Equity Weight 89.01%

WACC 9.87%
Growth Rate 2.5%
Shares Outstanding (In mil 35.1
ADD YOUR CALCULATIONS DONT FORGET FOR MARKET
 Debt
Cost of Debt 6.91%
Tax 31%
Years to Maturity 10
Coupon 8%
After Tax Cost of Debt 4.77%

ht
Total Debt 1,842,000,000
Market Value 1,983,465,600
Debt Weight 10.99%

Enterprise Value 18,055,457,600

S DONT FORGET FOR MARKET EQUITY!!