Credit Suisse Investment Banking Pitch Book
CONFIDENTIAL
Overview of Alternatives
(2)
(3)
Solar
Revenue CAGR (05-'09)
EPS CAGR (05-'09)
Future Value (1/1/09)
Present Value (1/1/05)*
Sell
(Pre-Spin)
Spin-Off
16.5x P/E
19.6x P/E
16.5x P/E
19.6x P/E
Downside
Case
(-2% EPS CAGR)
$35.00
(Current Offer)
5.0%
7.3%
$35.02
$41.56
$22.26
$26.41
Sell A & I
(Post-Spin)
Hold
Base
Case
6.4%
9.3%
$37.71
$44.74
$23.96
$28.44
$30.01-$37.56
(Implied Sale Value (¹))
$25.31-$31.84
(Implied Trading Value)
Upside
Case
(+2% EPS CAGR)
7.8%
11.3%
$40.55
$48.11
$25.77
$30,57
Growth Required for
a PV of $35.00 per Share
16.5x P/E
19.6x P/E
14.4%
20.1%
$55.07
$35.00
Revenue will need to grow
at an implied CAGR of at
least 10.7% over the next
four years to reach a
present value of $35.00
per share
Based on Solar preliminary comparable transaction analysis
Based on Solar preliminary comparable company analysis
Future values calculated using the current 1-year forward calendar P/E of 16.5x and the current 3-year average 1-year forward P/E of 19.6x
Present Value discounted at 12.0%. Solar's current cost of equity
10.7%
15.1%
$55.07
$35.00
This analysis is not CSFB's view on the future value of the stock as there are many factors that contribute or affect its value.
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