On the EBITDA forecast tab, provide an EBITDA forecast for FYE Feb 2008. Use the Adjusted 2007 column results as a basis for the forecast. Assume Sales grow 6%. Carry forward the gross profit margin percentage and operating income margin percentage from the Adjusted 2007 column. Use these to find the dollar amounts for COGS and SG&A. For example, calculate $COGS as 100% minus Adjusted 2007 gross profit percentage, times the sales amount (you will not have the adjustment items like inventory impairment in the forecast year). Hold the depreciation percentage constant. Use the resulting EBITDA to calculate a forward EV/EBITDA multiple, using the $7.3B transaction value as enterprise value. Record this as the base case value. Next, assume the gross margin reaches its 2005 high of 29.5% and SGA% of sales declines back to 22%. Calculate this best-case multiple.

EBITDA forecast
Net Income (in thousands of $)
Fiscal years ended February 2,	2008 Forecast			Adjusted 2007				2007			2006				2005
				(52 weeks)				(52 weeks)			(53 weeks)				(52 weeks)
Net sales				$9,169,822		100%		$9,169,822	100%	100%	$8,582,237		100%		$7,660,927		100%
Cost of goods sold				6,801,617		74.2		6,801,617	74.2	74.2	6,117,413		71.3		5,397,735		70.5
				(70,200)		-0.8
				(42,650)		-0.5
Gross profit				2,481,055		27.1		2,368,205	25.8	25.8	2,464,824		28.7		2,263,192		29.5
Selling, general & administrative expense				2,119,929		23.1		2,119,929	23.1	23.1	1,902,957		22.2		1,706,216		22.3
				-33,400		-0.4
				-1,400		0.0
				13,000		0.1
Operating income				382,926		4.2		248,276	2.7	2.7	561,867		6.5		556,976		7.3
Depreciation				200,608		2.2		200,608	2.2	2.2	186,824		2.2		164,478		2.1
EBITDA				583,534		6.4		448,884	4.9	4.9	748,691		8.7		721,454		9.4
EV/EBITDA base case
EV/EBITDA best case