Based on the financial information and assumptions in Exhibit 2, undertake a DCF valuation for Bottomline Technologies identifying the intrinsic equity value of a share. Outline the assumptions used and explain your calculations and workings

Bottomline Technologies Case Study - Financials Bottomline Technologies Income Statement (in millions) 2018 $'m 15,516 9,876 5,640 4,449 1,191 75 2017 $'m 15,797 10,077 5,720 4,196 1,524 59 -6 1,471 551 920 411 413 2.24 2.23 Net sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net income Weighted-average number of shares-basic Weighted average number of shares-diluted Earnings per share-basic Earnings per share-diluted 2016 $'m 16,435 10,146 6,289 4,206 2,083 75 -5 2,013 751 1,262 435 440 2.9 2.87 -8 1,124 448 676 399 400 1.69 1.69 Bottomline Technologies Case Study - Financials Bottomline Technologies Income Statement (in millions) 2018 $'m 15,516 9,876 5,640 4,449 1,191 75 2017 $'m 15,797 10,077 5,720 4,196 1,524 59 -6 1,471 551 920 411 413 2.24 2.23 Net sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net income Weighted-average number of shares-basic Weighted average number of shares-diluted Earnings per share-basic Earnings per share-diluted 2016 $'m 16,435 10,146 6,289 4,206 2,083 75 -5 2,013 751 1,262 435 440 2.9 2.87 -8 1,124 448 676 399 400 1.69 1.69