...Estimated Exit Value of Equity at 2010 Using EBITDA Multiples | ($millions) | | | | | | | Median1 | Mean2 | DTF/URI3 | Cendant/URI4 | RAC-adjusted EBITDA, case Exhibit 8 | $853.4 | $853.4 | $853.4 | $853.4 | Car rental EBITDA multiple | 6.47 | 7.04 | 6.18 | 8.47 | RAC Operating Company Value | $5,521.5 | $6,007.9 | $5,274.0 | $7,228.3 | | | | | | Net book value of fleet, case Exhibit 9 | $9,455.0 | $9,455.0 | $9,455.0 | $9,455.0 | | | | | | Total RAC value | $14,976.5 | $15,462.9 | $14,729.0 | $16,683.3 | | | | | | HERC EBITDA | $809.4 | $809.4 | $809.4 | $809.4 | Equipment rental EBITDA multiple | 6.37 | 6.55 | 5.37 | 5.37 | HERC value | $5,155.9 | $5,301.6 | $4,346.5 | $4,346.5 | | | | | | Total enterprise value of Hertz, 2010 | $20,132.4 | $20,764.5 | $19,075.5 | $21,029.8 | Less: total debt (Fleet+Operating Company) | $14,769.0 | $14,769.0 | $14,769.0 | $14,769.0 | Equity value of HertzCo., 2010 | $5,363.4 | $5,995.5 | $4,306.5 | $6,260.8 | | | | | | Multiples are from case Exhibit 11. | | | | | 1Based on median segment multiples. | | | | | 2Based on mean segment multiples. | | | | | 3Based on Dollar Thrifty multiple for RAC/United Rental multiple for HERC. | | 4Based on Cendant multiple for RAC/United Rental multiple for HERC. | | | | | | | | | | | | Internal Rate of Return (IRR) to Sponsors | | | | | | | | | 2005 | 2006 | 2007 | 2008 | 2009...
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...Q1. Best comparable companies to DSH and the strengths and weaknesses of decision. Out of the nine comparable companies given for DSH's relative valuation, five have been selected to be in the analysis for relative valuation for their similarities in business operations and risk profiles. These five companies are JB Hi-Fi Limited (JBH), Harvey Norman Holdings Ltd. (HVN), GOME Electrical Appliances Holding Limited (GMELY), Dixons Retail PLC (DXNS) and Hikari Tsushin, Inc. Strengths of decision Business operations: Only companies which operates its business relatively similar to DSH's have been taken selected in this relative valuation. DSH is a major retailer of consumer electronics for offices, mobility and entertainment products. Out of nine comparable companies given, only Myer Holdings Limited (MYR) and Game Stop Corp. (GME) were identified not to be similar to DSH, GME primarily sells products related to electronic games and MYR retails a wide range of merchandise including apparels, cosmetics, electronics and furniture. This suggests that MYR and GME would not be ideal as DSH's comparable companies on the basis that they are exposed to different operating risks from DSH. Furthermore, all 5 selected firms operate on omni-channels of distribution and have very similar products and services with essentially the same target market in their countries of operation, making it ideal to be used in this relative valuation of DSH. Weaknesses of decision Market Capitalisation:...
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...Risks Related to Our Business and Industry Our limited operating history makes evaluating our business and future prospects difficult, and may increase the risk of your investment. You must consider the risks and difficulties we face as an early stage company with a limited operating history. If we do not successfully address these risks, our business, prospects, operating results and financial condition will be materially and adversely harmed. We were formed in July 2003. We began delivering our first performance electric vehicle, the Tesla Roadster, in early 2008, and as of March 31, 2012, we had only sold approximately 2,250 Roadsters to customers, primarily in the United States and Europe. Our revenues for the three months ended March 31, 2012 and 2011, were $30.2 million and $49.0 million, respectively. We have a very limited operating history on which investors can base an evaluation of our business, operating results and prospects. To date, we have derived our revenues principally from sales of the Tesla Roadster and from electric powertrain development services and sales. We intend in the longer term to derive substantial revenues from the sales of Model S, Model X and future electric vehicles. Model S is in development and we plan to commence deliveries in June 2012. We have no operating history with respect to Model S and will continue to negotiate production pricing with our sources of component supply and make adjustments to our component procurement process...
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...Welcome to Week 1! Project Scope Definition and WBS In this course, we will explore project cost and schedule control! The focus of this week is developing the scope and the work breakdown structure (WBS). We will use the WBS to specifically detail the tasks required to complete any project. The scope is the starting document of a project. It defines the project. The WBS is created from the scope and is the basis on which several other project documents, such as the budget and schedule, will be derived from. Because the WBS is one of the foundations to our planning effort, it is critical to know and understand this tool. Shortcomings in the scope or WBS will translate to the rest of our planning documents resulting in real failures during project execution to attain goals in scope, cost, and schedule. It is, therefore, of primary importance that the scope and WBS are inclusive and detailed. Just remember that as a project manager, your family comes first but the project scope and WBS are not far behind. Introduction Cost and schedule form two sides of the iron triangle of project management with the third side being the collection of scope, quality, and performance. This makes cost and schedule paramount concerns to a project manager. Cost and schedule control on a project are vital to a successful project. As you know, this course is named Project Schedule and Cost Control, which may imply that the project is underway and it's time to go to work. However, the process...
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