Company Valuation

1. Discounted cash flow 2. LBO analysis 3. Comparable companies 4. Companies transaction
Fundamental analysis of future cash generation, risk and growth profile Identifies the price an equity provider is willing to pay while achieving sufficient return level Analysis based on market valuation of publicly traded companies Analysis based on comparable transaction valuations
Cash flow analysis based on business plan elaborated with Aquasecurity’s management Cash flow analysis based on Business Plan elaborated with Aquasecurity’s management Equity market multiple applied to 2006A, 2007E operating results Multiples derived from comparable transactions which reflect a change of
Hypothesis concerning valuation parameters like terminal growth, optimal divident policy and WACC Assumptions on exit and entry multiples as well as on suitable debt structure Real comparability with a listed peer group? Multiples paid for similar business are applied to 2006A operating results
Business plan will also assist in a “debt capacity analysis” and LBO valuation analysis Valuation outcome strongly depends on business plan assumptions, maximum leverage capacity and the required IRR

Valuation is relative rather than absolute, serves as sanity-check to DCF.

Trading multiples do not take into account a control premium

Valuation is relative rather than absolute

Limited info available makes objective comparison difficult