R 6 0.11 1.11 Scenario 1: Change of WACC in the first 5 years to meet advertism R34 A 15 DCF (Scenario 1) fx 1587 B C D 2010 2011 2012 E F G 2013 2014 J H 2015 2016 2017 2018 K L M N 0 P 2019 2020 2021 Terminal Year WACC in Years 16 Assumptions: 17 Revenue Growth Rate 40% 40% 40% 40% 40% 32% 25% 17% 10% 2% 2% 18 EBIT Margin 51% 45.70% 45% 43.50% 42.50% 41.40% 40.30% 39.30% 38.20% 37.10% 36.10% 35% 35% 19 Tax Rate 40% 40% 40% 40% 40% 40% 40% 39% 38% 37% 36% 35% 35% 20 Increase in CAPEX + WC 67% 67% 67% 67% 67% 67% 67% 67% 67% 67% 67% 67% 100% 11.67% 11.67% 11.67% 11.67% 11.67% 11.00% 10.00% 9.50% 8.60% 8.00% 8% 21 Cost of Capital 22 23 24 Free Cash Flow WACC (2012 0.1167 1.167 11.67 25 Revenues 26 EBIT 1974 3711 5196 7274 10183 14256 19959 26425 32979 38651 42362 43209 44073 1008 1695 2318 3167 4325 5903 8051 10377 12599 14353 15279 15123 15426 27 EBIT (1-Tax) 604.8 1017 1391 1900 2596 3542 4830 6330 7811 9042 9778 9830 10027 28 Increase in CAPEX + WC 995 1392 1949 2729 3821 4333 4391 3800 2486 568 864 29 FCEF 396 508 646 813 1010 1997 3420 5242 7292 9262 9162 Consolidated balance sheet March 31st 2012 152707 Cash and marketable secu $ 3,910.00 30 Terminal Value working capital $ 3,655.00 31 32 Present Value: 33 Cumulative Discount Factor 34 PV of FCFF and TV property & Equipment, Ne $ 1,855.00 0.8569 0.7343 0.6292 339 373 406 0.5392 438 0.4620 0.5352 0.4872 467 1069 1667 0.4461 2338 0.4107 2995 0.3802 3522 0.3802 Total assets $ 6,859.00 58066 Total Liabilities $ 1,587.00 35 36 37 38 SUM of PV of FCFF 39 Terminal Value 40 Value of firm $13,614.76 $58,066.00 $71,680.76 41 Less: Debt $1,088.90 42 Add: Cash 1512 43 Value of Equity $72,103.86 44 Less: Cost of Equity Options 3088.5 45 Value of Common equity $69,015.36 46 Number of Shares 2138.1 47 Price Talk 48 Price Talk 49 Price Talk as % $32.28 $38 118% 50 51 52 Sheet1 + 8 cibility: Investigate + + 100%