GE Appliances Actual Actual

Projected Income 2013 2014

Revenue (USD, millions) 5,700.00 5814
Revenue growth (%) 2%
Less direct & indirect costs 2% 5345 5451.9
EBITDA 355.00 362.10
EBITDA margin (%) 6.23% 6.23%
Depreciation 175.6 179.4
EBIT $179.40 $182.70
GE Appliances
DCF Valuation
EBIT $179.40 $182.70
Less recalculated taxes 40% $71.76 $73.08
Add back depreciation 175.6 179.4
Net Operating Cash Flow $283.24 $289.02
Present Value factor 10% 1
PV of NOCF $289.02

NPV $1,530.49

Moving beyond 4 years

GE Appliances Actual Actual

Projected Income 2013 2014
Revenue (USD, millions) 5,700.00 5814
Revenue growth (%) 2%
Less direct & indirect costs 2% 5345 5451.9
EBITDA 355.00 362.10
EBITDA margin (%) 6.23% 6.23%
Depreciation 175.6 179.4
EBIT $179.40 $182.70
GE Appliances
DCF Valuation
EBIT $179.40 $182.70
Less recalculated taxes 40% $71.76 $73.08
Add back depreciation 175.6 179.4
Net Operating Cash Flow $283.24 $289.02
Present Value factor 10% 1
PV of NOCF $289.02
 PV $2,474.89 5895.571911
Terminal value 7774.1895552416 3989.388483 4026.754942

Valuation $5,557.24 $6,464.28

at 3% for 4 years at 3% for seven years

Valuation without TV
4 years $1,530.49
7 years $2,474.89
adjusting to the component of TV
TV growth factor
Fixed growth -1% 0% 1% 2%
4 years 2842.4152533805 3158.2391704228 3544.24618 4026.754942
7 years 2816.0389291317 3128.9321434797 3511.357183 3989.388483

adjusting to the component of TV

TV growth factor
Respective valuations -1% 0% 1% 2%
4 years growth $4,372.90 $4,688.73 $5,074.73 $5,557.24
7 years growth $5,290.93 $5,603.83 $5,986.25 $6,464.28
Projected Projected Projected Projected
2015 2016 2017 2018
5988.42 6168.0726 6353.114778 6543.708221
3% 3% 3% 3%
5560.938 5672.15676 5785.599895 5901.311893
427.48 495.92 567.51 642.40
7.14% 8.04% 8.93% 9.82%
190.6 192.4 192.4 192.4
$236.88 $303.52 $375.11 $450.00

$236.88 $303.52 $375.11 $450.00

$94.75 $121.41 $150.05 $180.00
190.6 192.4 192.4 192.4
$332.73 $374.51 $417.47 $462.40
0.909090909 0.826446281 0.751314801 0.683013455
$302.48 $309.51 $313.65 $315.82

Projected Projected Projected Projected Projected Projected Projected

2015 2016 2017 2018 2019 2020 2021
5988.42 6168.0726 6353.114778 6543.708221 6740.019468 6942.220052 7150.486654
3% 3% 3% 3% 3% 3% 3%
5560.938 5672.15676 5785.599895 5901.311893 6019.338131 6139.724894 6262.519391
427.48 495.92 567.51 642.40 720.68 802.50 887.97
7.14% 8.04% 8.93% 9.82% 10.69% 11.56% 12.42%
190.6 192.4 192.4 192.4 192.4 192.4 192.4
$236.88 $303.52 $375.11 $450.00 $528.28 $610.10 $695.57

$236.88 $303.52 $375.11 $450.00 $528.28 $610.10 $695.57

$94.75 $121.41 $150.05 $180.00 $211.31 $244.04 $278.23
190.6 192.4 192.4 192.4 192.4 192.4 192.4
$332.73 $374.51 $417.47 $462.40 $509.37 $558.46 $609.74
0.909090909 0.826446281 0.751314801 0.683013455 0.620921323 0.56447393 0.513158118
$302.48 $309.51 $313.65 $315.82 $316.28 $315.23 $312.89
 3%
4647.123351
4604.000154

3%
$6,177.61
$7,078.89