A. In 2014, Grubhub IPOed at a total equity valuation of $2 billion. Calculate Grubhubs Price/Sales, Price/Earnings and Price/FCF multiples based on the $2 billion total equity valuation and 2013s financial results. (Show numbers and basic equations)

B. In 2014, the e-commerce industry (which includes many more mature companies) average for Price/Sales ratios was around 4 and the Price/Earnings average was around 40. Was Grubhub expensive or cheap relative to the industry averages?

C. Would you invest in Grubhubs IPO? Why / Why not?

GrubHub Inc (NYSE: GRUB) E-commeree Industry 34.00 + +34.00 unch Today's Close | 34.14 +0.14 +0.41% Atter hours 1ORE ON GRUB SUMMARY Quote 2013 12/31/2013 N/A 12/31/2013 Original USI) ou pro apo Equely P/sales ~ 3.0 Grubhub. IPO 2012 12/31/2012 S-1/A 03/24/2014 Updated USD Period End Dale Strnt Source Sumt Source Date Sumt Update Type Currency Code Options Historical Prices CHARTS Interactive Chat 86.5 = Assots Cash, Equiv and Short ler Investments Receivables Prepaid Assets and Others Deterred Current Assets Deferred Taxes Current Assets Total Current Assets = $2b $ 19.4 29.3 2.6 3.7 0.0 UD 122.2 62.0 NEWS Headlines Key Developments FUNDAMENTALS Financial Highlights Profile Key Ratios 10-Year Summary Earnings SEC Filings 17.1 15.3 621.2 130.9 Net Property Plant and Equipment Goodwill and Other Intangible Assets Other Non-Current Assets Total Non-Current Assets 2.3 0.0 640.7 144.3 Total Assets 762.8 206.3 5.1 19 RATINGSIANALYSIS StockScouter Report Analyst Ratings INSIDER ACTION Insider Trades Owilership Liabilities and Shareholders' Equity Payables Accrued Expenses Current Provisions Current Deferred Liabilities Current Other Current Liabilities Total Current Liabilities 0.2 8.9 0.2 0.2 78.2 92.6 0.1 48.6 58.2 FINANCIALS Income Statement Balance Sheet Cash Flow 1.2 92.1 1.- RH Provisions Long Term Deferred Liabilities. Non current Accrued Expenses Non-Current Other Non-Current Liabilities Total Non.Current Liabilities and MI 1.1 00 00 18.4 112.8 10.2 Total Liabilities 205.4 68.4 56.9 500.4 0.0 52.0 86./ 00 Related Ears Additional Paid in Capital Treasury Stock Accum Gains/Losses Not Alfuctug RE Total Equity 0.1 00 557.4 137.9 Total Liabilities and Equity 762.8 206.3 GrubHub Inc (NYSE: GRUB) 34.00 + +34.00 unch Today's Close 34.14 +0.14 +0.41% After hours MORE ON GRUB 2013 2012 SUMMARY Period End Date 12/31/2013 12/31/2012 Quote Stmt Source N/A S-1/A Options Stint Source Date 12/31/2013 09/24/2014 Sunt Update Type Historical Prices Original Updated Currency Code USD CHARTS 2011 12/31/2011 S-1/A 03/24/2014 Updated USD) USD Interactive Chart Total Revenue 137.1 82.3 60.6 49.5 Cost of Revenue Gross Profit 28.3 196 87.6 54.0 41.0 59.3 39.1 270 Sellmy. General and Administrative Depreciation Amortization and Depletion Operating Expenses 13.5 6.1 4.0 72.7 45.2 31.0 Oporating Income 14.9 8.7 10.0 Protax Income 14.9 8.7 10.0 NEWS Headlines Key Developments FUNDAMENTALS Financial Highlights Profile Key Ratios 10-Year Summary Earnings SEC Filings RATINGSIANALYSIS StockScouter Report Analyst Ratings INSIDER ACTION Insider Trades Ownership FINANCIALS income Statement Balance Sheet Cash Flow Provision for Income Tax Net Income (..) 8 (0.8) + 52 6.7 7.9 15.2 Tax Rate 0.350000 0.093106 0.350000 Financial data in USD Values in Millions (lExcept for per share items) Business Type: Industry Financial statements are prepared in this standard format to allow direct companions of all cap across multiple time frames See 10K and 100 SEC Filings for as reported statements DATA PROVIDERS Period End Dale Stmt Source Simt Source Dale Simt Update Type Currency Code 2013 12/31/2013 N/A 12/31/2013 Original USD 2012 12/31/2012 S-1/A 03/24/2014 Updated USD 2011 12/31/2011 S-1/A 03/24/2014 Updated USD 6.7 7.9 15.2 0.0 0.1 0.0 13.5 6.1 4.0 0.0 1.7 5.1 81 3.8 3.1 Net Income Operating Gains/Losses Depreciation Amortization and Depletion Deferred Taxes Other Non-Cash Items Change in Receivables Change in Prepaid Assets Change in Pay/Accrued Exp Change in Other Current Liabilities Change in Other Working Capital Cash Flow from Operating Activities 8.3 (05) (06) 0.3 (0) 0.7 MORE ON GRUB SUMMARY Quote Options Historical Prices CHARTS Interactive Chart NEWS Headlines Key Developments FUNDAMENTALS Financial Highlights Profile Key Ratios 10-Year Summary Earnings SEC Filings RATINGSIANALYSIS StockScouter Report Analyst Ratings INSIDER ACTION Insider Trades Ownership FINANCIALS Income Statement Balance Sheet Cash Flow 8.6 26.5 12.9 8.5 (0) 0 40.8 0.0 29.6 0.0 32.1 (14) 64) Purchase/Sale of Prop. Plant Equip: Net Purchase/Sale of Business, Net Other Investing Changes, Nel Cash Flow from Investing Activities 13.3 0.0 (64) (122) (160) 16.0 0.0 6.2 10.3 -36.9 0.0 (20) 0.0 0.9 0.0 Issuance/Payments of Debt.Net Issuance/Payments of Common Stock, Net Cash Dividends Paid Proceeds from Stock Option Exercised Other Financing Changes. Net Cash Flow from Financing Activities (14) (19) (167) 1.4 0.1 2.1 0.0 0.0 24.0 7.3 (18) (2.2) . 11.2 3.4 1.0 Cash, Equivalents, Start of Period Cash, Equivalents. End of Period Change in Cash 86.5 41.2 37.7 45.2 2.5 GrubHub Inc (NYSE: GRUB) E-commeree Industry 34.00 + +34.00 unch Today's Close | 34.14 +0.14 +0.41% Atter hours 1ORE ON GRUB SUMMARY Quote 2013 12/31/2013 N/A 12/31/2013 Original USI) ou pro apo Equely P/sales ~ 3.0 Grubhub. IPO 2012 12/31/2012 S-1/A 03/24/2014 Updated USD Period End Dale Strnt Source Sumt Source Date Sumt Update Type Currency Code Options Historical Prices CHARTS Interactive Chat 86.5 = Assots Cash, Equiv and Short ler Investments Receivables Prepaid Assets and Others Deterred Current Assets Deferred Taxes Current Assets Total Current Assets = $2b $ 19.4 29.3 2.6 3.7 0.0 UD 122.2 62.0 NEWS Headlines Key Developments FUNDAMENTALS Financial Highlights Profile Key Ratios 10-Year Summary Earnings SEC Filings 17.1 15.3 621.2 130.9 Net Property Plant and Equipment Goodwill and Other Intangible Assets Other Non-Current Assets Total Non-Current Assets 2.3 0.0 640.7 144.3 Total Assets 762.8 206.3 5.1 19 RATINGSIANALYSIS StockScouter Report Analyst Ratings INSIDER ACTION Insider Trades Owilership Liabilities and Shareholders' Equity Payables Accrued Expenses Current Provisions Current Deferred Liabilities Current Other Current Liabilities Total Current Liabilities 0.2 8.9 0.2 0.2 78.2 92.6 0.1 48.6 58.2 FINANCIALS Income Statement Balance Sheet Cash Flow 1.2 92.1 1.- RH Provisions Long Term Deferred Liabilities. Non current Accrued Expenses Non-Current Other Non-Current Liabilities Total Non.Current Liabilities and MI 1.1 00 00 18.4 112.8 10.2 Total Liabilities 205.4 68.4 56.9 500.4 0.0 52.0 86./ 00 Related Ears Additional Paid in Capital Treasury Stock Accum Gains/Losses Not Alfuctug RE Total Equity 0.1 00 557.4 137.9 Total Liabilities and Equity 762.8 206.3 GrubHub Inc (NYSE: GRUB) 34.00 + +34.00 unch Today's Close 34.14 +0.14 +0.41% After hours MORE ON GRUB 2013 2012 SUMMARY Period End Date 12/31/2013 12/31/2012 Quote Stmt Source N/A S-1/A Options Stint Source Date 12/31/2013 09/24/2014 Sunt Update Type Historical Prices Original Updated Currency Code USD CHARTS 2011 12/31/2011 S-1/A 03/24/2014 Updated USD) USD Interactive Chart Total Revenue 137.1 82.3 60.6 49.5 Cost of Revenue Gross Profit 28.3 196 87.6 54.0 41.0 59.3 39.1 270 Sellmy. General and Administrative Depreciation Amortization and Depletion Operating Expenses 13.5 6.1 4.0 72.7 45.2 31.0 Oporating Income 14.9 8.7 10.0 Protax Income 14.9 8.7 10.0 NEWS Headlines Key Developments FUNDAMENTALS Financial Highlights Profile Key Ratios 10-Year Summary Earnings SEC Filings RATINGSIANALYSIS StockScouter Report Analyst Ratings INSIDER ACTION Insider Trades Ownership FINANCIALS income Statement Balance Sheet Cash Flow Provision for Income Tax Net Income (..) 8 (0.8) + 52 6.7 7.9 15.2 Tax Rate 0.350000 0.093106 0.350000 Financial data in USD Values in Millions (lExcept for per share items) Business Type: Industry Financial statements are prepared in this standard format to allow direct companions of all cap across multiple time frames See 10K and 100 SEC Filings for as reported statements DATA PROVIDERS Period End Dale Stmt Source Simt Source Dale Simt Update Type Currency Code 2013 12/31/2013 N/A 12/31/2013 Original USD 2012 12/31/2012 S-1/A 03/24/2014 Updated USD 2011 12/31/2011 S-1/A 03/24/2014 Updated USD 6.7 7.9 15.2 0.0 0.1 0.0 13.5 6.1 4.0 0.0 1.7 5.1 81 3.8 3.1 Net Income Operating Gains/Losses Depreciation Amortization and Depletion Deferred Taxes Other Non-Cash Items Change in Receivables Change in Prepaid Assets Change in Pay/Accrued Exp Change in Other Current Liabilities Change in Other Working Capital Cash Flow from Operating Activities 8.3 (05) (06) 0.3 (0) 0.7 MORE ON GRUB SUMMARY Quote Options Historical Prices CHARTS Interactive Chart NEWS Headlines Key Developments FUNDAMENTALS Financial Highlights Profile Key Ratios 10-Year Summary Earnings SEC Filings RATINGSIANALYSIS StockScouter Report Analyst Ratings INSIDER ACTION Insider Trades Ownership FINANCIALS Income Statement Balance Sheet Cash Flow 8.6 26.5 12.9 8.5 (0) 0 40.8 0.0 29.6 0.0 32.1 (14) 64) Purchase/Sale of Prop. Plant Equip: Net Purchase/Sale of Business, Net Other Investing Changes, Nel Cash Flow from Investing Activities 13.3 0.0 (64) (122) (160) 16.0 0.0 6.2 10.3 -36.9 0.0 (20) 0.0 0.9 0.0 Issuance/Payments of Debt.Net Issuance/Payments of Common Stock, Net Cash Dividends Paid Proceeds from Stock Option Exercised Other Financing Changes. Net Cash Flow from Financing Activities (14) (19) (167) 1.4 0.1 2.1 0.0 0.0 24.0 7.3 (18) (2.2) . 11.2 3.4 1.0 Cash, Equivalents, Start of Period Cash, Equivalents. End of Period Change in Cash 86.5 41.2 37.7 45.2 2.5