PJT Partners Investment Banking Pitch Book
DCF Valuation of Lunar
(US$ mm)
CASH FLOW BUILD
Revenue (Adjusted)
Adj. EBITDA (Post-SBC, Excl. Equity Income)
% Margin
Less: Capex
Less: Unlevered Cash Taxes
Less: Cash Spend on Programming in Excess of Amort.
Less: Change in NWC & Other
Unlevered FCF
Stub Factor
Discount Factor(2)
PV of UFCF
IMPLIED PRICE PER SHARE
Terminal Value
Multiple
14.0x
14.5×
15.0x
15.5x
16.0x
8.00%
$21
21
22
22
23
Q4 2017E
$849
$69
8%
8.25%
$20
21
21
22
23
(2)
(3)
63
5
$133
1.00
0.990
$132
Implied Value per Share
WACC (%)
8.50%
$20
21
21
22
22
2018E
$2,960
$136
5%
8.75%
$20
21
21
22
1.00
0.941
Source: Lunar Management.
(1) Cash taxes estimated based on levered cash taxes adjusted for impact of leverage.
(2) Based on discount rate of 8.5%.
(11)
51
(91)
$76
22
Fiscal Year Ending March 31
2020E
2019E
$3,484
$252
7%
$72
(14)
(34)
(58)
$138
1.00
0.867
$120
9.00%
$20
20
21
21
22
$3,435
$238
7%
(10)
(14)
14
$227
1.00
0.799
$181
2021E
$3,457
$236
7%
Terminal Value
Multiple
(10)
(14)
14
20
$245
1.00
0.736
$181
Normal
$3,457
$236
7%
14.0x
14.5×
15.0x
15.5x
16.0x
(10)
(34)
20
$212
1.00
0.707
VALUATION SUMMARY
Valuation Summary
WACC
Terminal EBITDA
Terminal Multiple
Terminal Value
Implied Perpetuity Growth Rate
PV of Unlevered Cash Flows
IMPLIED PERPETUITY GROWTH RATE
PV of Terminal Value
Terminal Value as % TEV
Implied Enterprise Value
8.00%
1.2%
1.5%
1.7%
1.9%
2.0%
Implied Perpetuity Growth Rate
WACC (%)
8.50%
1.7%
1.9%
2.1%
2.3%
2.5%
8.25%
1.5%
1.7%
1.9%
2.1%
2.3%
8.75%
1.9%
2.1%
2.4%
2.5%
2.7%
Confidential
8.5%
$236
15.0x
$3,536
2.1%
$685
2,500
78.5%
$3,185
9.00%
2.2%
2.4%
2.6%
2.8%
3.0%
PJT Partners
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