yeats and control

year 2000 no of shares price

book value 1,440,000 0.5 720000
market value 1,440,000 39.75 57240000
enterprise value 56520000
ev multiple 17.2632865
ebitda 3,274,000

tse
year 2000 no of shares price
book value 64,083,521 2.39 153159615.19
market value 64,083,521 22 1409837462
enterprise value 1256677847
ev multiple 4.2816816529
ebitda 293,501,000
wacc 14.2300%
beta 1.5
risk free rate 5.98%
market risk of premium 5.50%

wacc 10.65500%
beta 0.85
risk free rate 5.98%
market risk of premium 5.50%
year 1999 2000 2001 2002 2003
net income 5575 8347 8634 9792 11106
dep 1508 1660 1828 2012 2212
capital exp 1826 2011 2213 2433
working capital needs 3492 3867 4289 4757
fcf 7083 4689 4584 5302 6128
perpetuity cash flow
net cash flow 7083 4689 4584 5302 6128
npv $50,593.56
value per share 74.0411222439

year 1999 2000 2001 2002 2003

net income 164041 176101 189036 201323 216097
dep 26800 27950 29770 31700 33170
capital exp 38524.07 41016.81 43670.84 46496.6
working capital needs 73672.54 78872.2 84438.84 90398.36
fcf 190841 91854.39 98916.99 104913.3 112372
perpetuity cash flow
net cash flow 190841 91854.39 98916.99 104913.3 112372
npv $1,543,430.71
value per share $40.43
 2004 growth rate assumed 4%
12576
2432
2675 0.218761 0.2329163771 1.064706
5273 0.418354 0.4478804726 1.070578
7060
71773.22
7060 71773.22

2004 growth rate assumed 4%

230143
35960
49505.2
96778.5
119819.3
1872458
1992277
 yeats tse average triangulation
closing share prices 39.75 22 30.875 0.1505969185
dcf 74.04112 $40.43 57.2379 0.2791854496
enterprise value 39.25 19.61 29.43 0.1435487388
book value 25.53 13.98 19.755 0.0963576397
peer p/e 42.57 24.53 33.55 0.1636445867
average 44.22822 24.11093 34.16958 0.1666666667
205.0175
simple average

yeats should negotiate 1.83 shares of tse per share of

 exchange ratios weighted average
1.8068181818 0.2721012505
1.8311296416 0.5112247522
2.0015298317 0.2873170831
1.8261802575 0.1759664192
1.735426009 0.2839930721
1.8343638018 0.3057273003
11.0354477234
1.8392412872 weighted average 1.8363298774

ate 1.83 shares of tse per share of yeats.