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 |