J.P.Morgan Software Investment Banking

Preliminary Inovalon valuation summary For illustrative purposes only 52-week range Analyst price targets $31.00 $15.25 $35.00 $22.00 Trading multiples $44.75 $35.00 22E EBITDA (Smm) $321 '22E FV / EBITDA 20.0-25.0x Discounted equity value¹ $54.25 $39.75 23E-24E EBITDA (Smm) $382-$431 *22E FV/ EBITDA 20.0-25.0x Discounted cash flow $55.00 $35.25 Discou rate 7.5%-8.5% Terminal growth 2.5%-3.5% Metrics Transaction multiples $53.75 Multiples (x) $34.25 NTM Revenue (Smm) $789 FV / NTM Revenue 8.0-12.0x Sponsor ability to pay² $48.50 $34.50 Revenue CAGR (20A-26E) 11.0%-15.0% EBITDA margin ('26E) 40.0%-45.0% Current share price: $29.78 At 22.5x exit multiple and 20% required IRR Premiums paid J.P.Morgan Note: Share prices rounded to the nearest $0.25: Current share price reflects as of 4/29/21; Based on adjusted street case: Assumes 8.0% discount rate; Assumes transaction entry date of 12/31/21 and exit of 12/31/26, 7.5x max pro forma net debt $47.75 $38.75 Current share price $29.78 1-day premiums paid 30%-60% to current 30

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