1 2 Company Risk Free Rate Childrens Place PLCE shares price horizon growth LT growth (CV) 3 Beta 4 Market Risk Premium 5 Cost of Equity 6 7 1 2 3 5 6 8 Dividends to Common Equity 9 10 Present Value Factors 11 Present Value Net Dividends 12 Sum of Present Value Net Dividends 13 Present Value of Continuing Value 14 Total 15 Adjust to midyear discounting 16 Total Present Value Dividends 17 Shares Outstanding 18 Estimated Value per Share 19 20 Current share price 21 Percent difference 22 23 CV Dividends-Based Valuation Comprehensive Income (Net Income) Beginning BV Ending BV Dividends to Common Equity Average Dividend Year 2022 Year 2021 Year 2020 Year 2019 Year 2018 1 Company 2 Risk Free Rate 3 Beta 4 Market Risk Premium 5 Cost of Equity 6 7 8 9 10 Free Cash Flows for Common Equity 11 12 13 14 Present Value Factors 15 Present Value FCF 16 Sum of Present Value FCF 17 Continuing value at time 5 18 Present Value of Continuing Value 19 Total 20 Adjust to midyear discounting 21 Total Present Value FCF 22 Shares Outstanding 23 Estimated Value per Share 24 25 Current share price 26 Percent difference 27 Childrens Place PLCE shares price horizon growth LT growth (CV) FCF valuation 1 2 Year +1 Year +2 3 Year +3 4 5 6 Year +4 Year +5 Year +6 Net Cash Flows from Operations Net Cash Flows from Investing Net Cash Flows from Debt Net Cash Flows into Financial Assets Net Cash flows Pfd Stock and NCI FCF to Equity Year 2022 Year 2021 Year 2020 Year 2019 Year 2018 Average FCF 1 Company Childrens Place PLCE shares price horizon growth LT growth (CV) 2 Risk Free Rate 3 Beta 4 Market Risk Premium 5 Cost of Equity 6 7 8 9 10 11 1 2 12 13 14 234567 RESIDUAL INCOME VALUATION Year +1 Year +2 Year +3 3 4 Year +4 Year +5 5 Value Year +6 Residual Income 15 16 17 18 19 20 21 22 23 24 25 26 27 Present Value Factors Present Value Residual Income Sum of Present Value Residual Income Present Value of Continuing Value Total Add: Beginning Book Value of Equity Present Value of Equity Adjust to midyear discounting Total Present Value of Equity Shares Outstanding Estimated Value per Share Current share price 28 Percent difference 29 Continuing Value RESIDUAL INCOME VALUATION Comprehensive Income Available (NI) for Common Shareholders Lagged Book Value of Common Shareholders' Equity (at t-1) Required Earnings Residual Income Year 2022 Year 2021 Year 2020 Year 2019 Year 2018