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Can any tutor help me write the answer about comparable companies about this project? Please look up the price/earnings ratios for companies comparable to Intel

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Can any tutor help me write the answer about "comparable companies" about this project?

"Please look up the price/earnings ratios for companies comparable to Intel and Mobileye and utilize these figures. Please include a list of the comparable companies that you used.) "

image text in transcribed Mgt. 181 Merger Project Valuation Intel and Mobileye You are a Managing Director of Goldman Sachs and your phone rings. It is Intel. The merger talks between his company and Mobileye are ongoing and they want to know what Mobileye is worth. Paper Calculate the value of Mobileye. Estimate the next 5 years revenues and expenses and arrive at an EBITDA for each year. (You can do this on an annual basis.) Determine an appropriate discount rate and termination multiple. (Please look up the price/earnings ratios for companies comparable to Intel and Mobileye and utilize these figures. Please include a list of the comparable companies that you used.) Calculate the value. Divide the value by the number of shares outstanding to determine the price per share and determine the value per share of Mobileye. Please list all of your assumptions. Base growth rates, margins, etc. on prior years' performance. You must turn in an excel spreadsheet outlining your valuation with the project. In a separate paper please outline any operational issues, cultural issues and how Mobileye should be integrated into Intel. If you were a senior executive of Intel what would you be worried about. This is a group project and you can have up to 6 people in your group. Due Date MARCH 20, 2017 AT 5:00 PM Please read the instructions. To get a 100 you need to complete all the tasks. If there are any questions, please do not hesitate to contact me. Prof Dunn 760 703 2153 ljdunn@roadrunner.com Technology News | Mon Mar 13, 2017 | 11:29am EDT Intel to buy Israeli driverless car-tech firm Mobileye for $15 billion By Tova Cohen and Ari Rabinovitch | JERUSALEM JERUSALEM U.S. chipmaker Intel (INTC.O) agreed to buy Israeli driverless car-technology firm Mobileye (MBLY.N) for $15.3 billion on Monday, positioning itself for a dominant role in the fast-moving autonomous-driving sector. The $63.54-per-share cash deal marks the largest purchase of a company solely focused on the self-driving sector and could significantly alter the competitive landscape among key technology and systems suppliers, including chipmakers Nvidia Corp (NVDA.O) and Qualcomm Inc (QCOM.O) and systems integrator Delphi Automotive PLC (DLPH.N). Mobileye's shares jumped 30 percent to $61.30 in late morning U.S. trading, while Intel's shares were down 2 percent. Shares of Delphi, which has partnerships with both companies, were up 3 percent. The deal underscores the expanding alliances between automakers and their suppliers as they race to develop self-driving cars, a concept that once seemed a science-fiction dream but is drawing closer to reality. While Intel is known for hardware chips and Mobileye for collision detection and mapping software, the merger promises to create an expanded portfolio of technologies needed for driverless vehicles. It also strengthens Intel's position in the sector against rival chipmakers Nvidia and Qualcomm. The Intel-Mobileye portfolio includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management. "It's an area where (Intel) has had very little presence - the automotive market, and so this is a tremendous opportunity for them to get into a market that has significant growth opportunities," said Betsy Van Hees, an analyst at Loop Capital Markets. "Mobileye's technology is very critical... The price seems fair," she added. The offer represents a premium of about 33 percent to Mobileye's closing price of $47 on Friday. MERGING 'EYES' AND 'BRAIN' Intel will integrate its automated driving group with Mobileye's operations, with the combined entity being run by Mobileye Chairman Amnon Shashua from Israel. Intel Chief Executive Brian Krzanich said the acquisition was akin to merging the "eyes of the autonomous car with the intelligent brain that actually drives the car." Mobileye supplies integrated cameras, chips and software for driver-assist systems - the building blocks for self-driving cars - to more than two dozen vehicle manufacturers. In an interview in January, Shashua told Reuters: "If you want to build a truly autonomous car, this is a task for more than one player... The idea is to have a number of partners to share resources and data." Mobileye was an early supplier of vision systems to Tesla, but the two companies had an acrimonious and public break-up last summer after the driver of a Tesla Model S was killed while operating the vehicle using Tesla's Autopilot system. Intel said it expects the vehicle systems, data and services market to rise to $70 billion by 2030. Mobileye, founded in 1999, accounts for 70 percent of the global market for driver-assistance and anti-collision systems. It employs 660 people and had adjusted net income of $173.3 million last year. Analysts said that mounting a counter-bid would be difficult as Mobileye's Shashua would remain in charge and the combined entity would be based in Israel. Shashua and two other senior Mobileye executives stand to do well by the deal: together they own nearly 7 percent of the company. Shmuel Harlap, Israel's biggest car importer and one of Mobileye's earliest investors, also holds a 7 percent stake. BATTLE FOR SELF-CONTROL Mobileye and Intel are already collaborating with German automaker BMW (BMWG.DE) on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year. At the same time, Mobileye has teamed up with Intel for its fifth-generation of chips that will be used in fully autonomous vehicles that are scheduled for delivery around 2021. Mobileye also has partnered with Delphi on a self-driving platform that is being shopped to smaller car companies that may not have the resources to develop their own systems. Last October, Qualcomm announced a $47 billion deal to acquire the Netherlands' NXP, the largest automotive chip supplier, putting pressure on other chipmakers seeking to make inroads in the market, including Intel, Mobileye and Nvidia. The Qualcomm-NXP deal, which will create the industry's largest portfolio of sensors, networking and other elements vital to autonomous driving, is expected to close later in 2017. For a dozen years, Mobileye has relied on Franco-Italian chipmaker STMicroelectronics to produce chips that the Israeli company sells to many of the world's top automakers for its current, third-generation of driver-assistance systems. Mobileye's relationships with automakers, leading suppliers and STMicroelectronics will continue uninterrupted, the companies said in their statement, and Mobileye's current product roadmap will not be affected. Intel buys Mobileye for $15 billion to challenge Nvidia for the future of selfdriving cars Intel wants to be inside self-driving cars. Intel buys Mobiley http:/ /www.pcwo Send By Ian Paul Contributor, PCWorld | Mar 13, 2017 7:03 AM PT Intel is no longer satisfied just partnering with other companies to create self-driving cars: it wants to own the whole stack. Well, at least as far as the autonomous hardware and software go. The chip maker just announced it intends to purchase Jerusalem-based Mobileye for $15.3 billion. The two companies were already working together on various projects. The pair announced a partnership with BMW in July 2016 with the aim of putting an autonomous car on the streets by 2021. Then in November, the two companies partnered with auto parts maker Delphi to create the Automated Driving Group, which will create a self-driving car system that can be sold to automakers. Mobileye is best known for supplying car maker Tesla with hardware for its semi-autonomous system, Autopilot. That relationship ended last fall over a disagreement about Tesla's development of Autopilot and the various controversies surrounding it, according to Bloomberg. Tesla has since partnered with Nvidia, which, like Intel, is developing computing hardware for cars. In September, Nvidia announced the Xavier supercomputer chip powered by the 512-core Volta GPU intended for use in self-driving cars. Prior to that, in January 2016, Nvidia announced the PX 2 watercooled \"supercomputer for cars,\" which is used by Tesla. ADVERTISING Intel, meanwhile, recently announced its Go computer for self-driving cars that can hold up to 28 Xeon chips. The story behind the story: Self-driving car technology appears to be the next frontier where Nvidia and Intel will face-off. The two companies are also rivals in the data center with Nvidia steadily making gains with its coprocessors, as well as artificial intelligence and deep learning applications. Interestingly, there may not be that much difference for Intel between self-driving cars and data centers. \"As cars progress from assisted driving to fully autonomous, they are increasingly becoming data centers on wheels,\" Intel said in a statement announcing the Mobileye deal. Intel expects self-driving cars will \"generate 4,000 GB of data per day\" by 2020. To comment on this article and other PCWorld content, visit our Facebook page or our Twitter

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