CoverInvestment BankingValuation, Leveraged Buyouts,and Mergers & AcquisitionsDCF Analysis - TemplateJOSHUA ROSENBAUMJOSHUA PEARL

DCFValueCo CorporationDiscounted Cash Flow Analysis($ in millions, fiscal year ending December 31)Operating ScenarioBaseOperating Scenario1Mid-Year ConventionYHistorical PeriodCAGRProjection PeriodCAGR200520062007('05 - '07)200820092010201120122013('08 - '13)Sales0.00.00.0-0.00.00.00.00.00.0-% growthNA0.00.00.00.00.00.00.00.0COGS0.00.00.00.00.00.00.00.00.0Gross Profit0.00.00.0-0.00.00.00.00.00.0-% margin0.00.00.00.00.00.00.00.00.0SG&A0.00.00.00.00.00.00.00.00.0EBITDA0.00.00.0-0.00.00.00.00.00.0-% margin0.00.00.00.00.00.00.00.00.0Depreciation & Amortization0.00.00.00.00.00.00.00.00.0EBIT0.00.00.0-0.00.00.00.00.00.0-% margin0.00.00.00.00.00.00.00.00.0Taxes0.00.00.00.00.00.00.00.00.0EBIAT0.00.00.0-0.00.00.00.00.00.0-Plus: Depreciation & Amortization0.00.00.00.00.00.00.00.00.0Less: Capital Expenditures0.00.00.00.00.00.00.00.00.0Less: Increase in Net Working Capital0.00.00.00.00.0Unlevered Free Cash Flow0.00.00.00.00.0WACC0.0Discount Period0.51.52.53.54.5Discount Factor1.001.001.001.001.00Present Value of Free Cash Flow0.00.00.00.00.0Enterprise ValueImplied Equity Value and Share PriceImplied Perpetuity Growth RateCumulative Present Value of FCF0.0Enterprise Value0.0Terminal Year Free Cash Flow (2013E)0.0Less: Total Debt0.0WACC0.0Terminal ValueLess: Preferred Securities0.0Terminal Value0.0Terminal Year EBITDA (2013E)0.0Less: Noncontrolling Interest0.0Exit Multiple0.0Plus: Cash and Cash Equivalents0.0Implied Perpetuity Growth Rate- %Terminal Value0.0Discount Factor1.00Implied Equity Value0.0Implied EV/EBITDAPresent Value of Terminal Value0.0Enterprise Value0.0% of Enterprise Value- %Implied Share Price0.0LTM 9/30/2008 EBITDA0.0Enterprise Value0.0Implied Share PriceNAImplied EV/EBITDA- xEnterprise ValueImplied Perpetuity Growth RateExit MultipleExit Multiple0.0-1.0x-0.5x0.0x0.5x1.0x- %-1.0x-0.5x0.0x0.5x1.0xWACC-1.0%00000WACC-1.0%- %- %- %- %- %-0.5%00000-0.5%- %- %- %- %- %0.0%00$0000.0%- %- %- %- %- %0.5%000000.5%- %- %- %- %- %1.0%000001.0%- %- %- %- %- %AssumptionsSales (% growth)NA0.00.00.00.00.00.00.00.0COGS (% sales)0.00.00.00.00.00.00.00.00.0SG&A (% sales)0.00.00.00.00.00.00.00.00.0Depreciation & Amortization (% sales)0.00.00.00.00.00.00.00.00.0Capital Expenditures (% sales)0.00.00.00.00.00.00.00.00.0Tax Rate0.00.00.00.00.00.00.00.00.0Working Capital (% sales)0.00.00.00.00.0ValueCo CorporationSensitivity Analysis($ in millions)Enterprise ValueImplied Equity ValueExit MultipleExit Multiple0.0-1.0x-0.5x0.0x0.5x1.0x0.0-1.0x-0.5x0.0x0.5x1.0xWACC-1.0%00000WACC-1.0%00000-0.5%00000-0.5%000000.0%00$0000.0%00$0000.5%000000.5%000001.0%000001.0%00000Implied Share PricePV of Terminal Value as % of Enterprise ValueExit MultipleExit MultipleNA-1.0x-0.5x0.0x0.5x1.0x- %-1.0x-0.5x0.0x0.5x1.0xWACC-1.0%NANANANANAWACC-1.0%- %- %- %- %- %-0.5%NANANANANA-0.5%- %- %- %- %- %0.0%NANANANANA0.0%- %- %- %- %- %0.5%NANANANANA0.5%- %- %- %- %- %1.0%NANANANANA1.0%- %- %- %- %- %Implied Perpetuity Growth RateImplied Enterprise Value / LTM EBITDAExit MultipleExit Multiple- %-1.0x-0.5x0.0x0.5x1.0x- x-1.0x-0.5x0.0x0.5x1.0xWACC-1.0%- %- %- %- %- %WACC-1.0%- x- x- x- x- x-0.5%- %- %- %- %- %-0.5%- x- x- x- x- x0.0%- %- %- %- %- %0.0%- x- x- x- x- x0.5%- %- %- %- %- %0.5%- x- x- x- x- x1.0%- %- %- %- %- %1.0%- x- x- x- x- xCalculation of Implied Share PriceEnterprise Value0.0Less: Total Debt0.0Less: Preferred Securities0.0Less: Noncontrolling Interest0.0Plus: Cash and Cash Equivalents0.0Implied Equity Value0.0Options/WarrantsNumber ofExerciseIn-the-MoneyTrancheSharesPriceSharesProceedsOptions 10.00.00.00.0Options 20.00.00.00.0Options 30.00.00.00.0Options 40.00.00.00.0Options 50.00.00.00.0Total0.00.00.0Basic Shares Outstanding0.0Plus: Shares from In-the-Money Options0.0Less: Shares Repurchased0.0Net New Shares from Options0.0Plus: Shares from Convertible Securities0.0Fully Diluted Shares Outstanding0.0Implied Share Price0.0

NWCValueCo CorporationWorking Capital Projections($ in millions)Historical PeriodProjection Period200520062007200820092010201120122013Sales0.00.00.00.00.00.00.00.00.0Cost of Goods Sold0.00.00.00.00.00.00.00.00.0Current AssetsAccounts Receivable0.00.00.00.00.00.00.00.00.0Inventories0.00.00.00.00.00.00.00.00.0Prepaid Expenses and Other0.00.00.00.00.00.00.00.00.0Total Current Assets0.00.00.00.00.00.00.00.00.0Current LiabilitiesAccounts Payable0.00.00.00.00.00.00.00.00.0Accrued Liabilities0.00.00.00.00.00.00.00.00.0Other Current Liabilities0.00.00.00.00.00.00.00.00.0Total Current Liabilities0.00.00.00.00.00.00.00.00.0Net Working Capital0.00.00.00.00.00.00.00.00.0% sales0.00.00.00.00.00.00.00.00.0(Increase) / Decrease in NWC0.00.00.00.00.00.00.00.0AssumptionsDays Sales Outstanding0.00.00.00.00.00.00.00.00.0Days Inventory Held0.00.00.00.00.00.00.00.00.0Prepaids and Other CA (% of sales)0.00.00.00.00.00.00.00.00.0Days Payable Outstanding0.00.00.00.00.00.00.00.00.0Accrued Liabilities (% of sales)0.00.00.00.00.00.00.00.00.0Other Current Liabilities (% of sales)0.00.00.00.00.00.00.00.00.0

WACCValueCo CorporationWeighted Average Cost of Capital Analysis($ in millions)WACC CalculationComparable Companies Unlevered BetaTarget Capital StructurePredictedMarketMarketDebt/MarginalUnleveredDebt-to-Total Capitalization0.0CompanyLevered Beta(4)Value of DebtValue of EquityEquityTax RateBetaEquity-to-Total Capitalization100.0%CompCo10.00.00.00.00.00.0CompCo20.00.00.00.00.00.0CompCo30.00.00.00.00.00.0Cost of DebtCompCo40.00.00.00.00.00.0Cost of Debt0.0CompCo50.00.00.00.00.00.0Tax Rate0.0After-tax Cost of Debt0.0Mean0.00.00.0Median0.00.00.0Cost of EquityValueCo Relevered BetaRisk-free Rate(1)0.0MeanTargetTargetMarket Risk Premium(2)0.0UnleveredDebt/MarginalReleveredLevered Beta0.0BetaEquityTax RateBetaSize Premium(3)0.0Relevered Beta0.00.00.00.0Cost of Equity0.0WACC Sensitivity AnalysisPre-tax Cost of DebtWACC0.0Debt-to-Total Capitalization0.0-1.0%-0.5%0.0%0.5%1.0%-20.0%0.2%0.1%0.0%-0.1%-0.2%-10.0%0.1%0.1%0.0%-0.1%-0.1%0.0%0.0%0.0%0.0%0.0%0.0%10.0%-0.1%-0.1%0.0%0.1%0.1%20.0%-0.2%-0.1%0.0%0.1%0.2%(1) Interpolated yield on 20-year U.S. Treasury(2) Obtained from Ibbotson SBBI Valuation Yearbook(3) Low-Cap Decile size premium based on market capitalization, per Ibbotson(4) Sourced from Barra

A1`Assumptions Page 1 - Income Statement and Cash Flow StatementProjection PeriodYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 102009201020112012201320142015201620172018Income Statement AssumptionsSales (% growth)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Cost of Goods Sold (% sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0SG&A (% sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Depreciation & Amortization (% sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Cash Flow Statement AssumptionsCapital Expenditures (% of sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0

A2Assumptions Page 2 - Balance SheetProjection PeriodYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 102009201020112012201320142015201620172018Current AssetsDays Sales Outstanding (DSO)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Days Inventory Held (DIH)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Prepaid and Other Current Assets (% of sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Current LiabilitiesDays Payable Outstanding (DPO)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Accrued Liabilities (% of sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0Other Current Liabilities (% of sales)0.00.00.00.00.00.00.00.00.00.0Base10.00.00.00.00.00.00.00.00.00.0Management20.00.00.00.00.00.00.00.00.00.0Upside30.00.00.00.00.00.00.00.00.00.0Downside 140.00.00.00.00.00.00.00.00.00.0Downside 250.00.00.00.00.00.00.00.00.00.0

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