J.P.Morgan Investment Banking
VALUATION SUMMARY
Discounted cash flow analysis
Assumptions
Ten year projection period
■3% revenue growth assumed each year after 2010
until 2015
■ EBITDA margin improvement of 0.25% assumed in
each year after 2010 until 2015
No synergies
$76mm Reethi Rah notes receivable monetized in
2008
Summary results
Equity value per share - Upside Case
WACC:
JPMorgan
9.50%
10.00%
10.50%
Terminal growth rate
3.25%
3.00%
$88.97
82.81
77.43
$90.86
84.37
78.74
3.50%
$92.91
86.05
80.13
Estimate of developable Paradise Island land value
added to enterprise value to derive implied equity
value
64.1 acres of undeveloped land valued at $6
million per acre with 5% annual value appreciation
Perpetuity growth rate of 3.0% -3.5% on terminal
year free cash flow
■WACC of 9.5-10.5%
Equity value per share - Adjusted Upside Case
WACC:
9.50%
10.00%
10.50%
Terminal growth rate
3.25%
3.00%
$95.69
89.05
83.27
$97.74
90.74
84.68
3.50%
$99.96
92.56
86.19
PROJECT PLATO
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