PJT Partners Investment Banking Pitch Book
Solar Broker Estimates
TARGET
PRICE
BROKER
Macquarie
Deutsche Bank
Morgan Stanley
FBN
Pivotal Research
Group
Evercore ISI
Goldman Sachs
FBR
Drexel Hamilton
DATE
5/01/16
4/29/16
4/29/16
4/29/16
4/29/16
4/29/16
4/29/16
4/29/16
4/29/16
$28.00
$47.00
$27.00
$35.38
$32.00
$33.00
$30.00
$26.00
$27.50
MULTIPLE
6.8x '17E EBITDA
N/A
10.5x 2020E FCF/shr
8.5x '16E OIBDA of
$509mm
8.5x '16E EBITDA of
$486mm
N/A
N/A
N/A
N/A
Source: Company Filings, Bloomberg, Wall Street Research, Thomson One and CapitallQ.
METHODOLOGY/COMMENTARY
> Price catalysts include original programming, positive video net adds, and M&A
> Increase from previous target of $27.00 due to subscriber ramp and
programming cost stabilization
> $43/share in stand-alone value, derived from DCF assuming 8.1% WACC
"$4 per share in value for estimated synergies in a hypothetical deal with LGF"
> Discounted back to '16 at 10% cost of equity
> "Due to the scarcity value of a premium network with the growth opportunity
Starz has, we can argue the equity is worth a solid double digit multiple"
> N/A
Confidential
> Target based on DCF valuation, which excludes a possible sale transaction
> N/A
> N/A
> N/A
PJT Partners
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