Title [18/20 mark] SABV Report.pdf ✅

TABLE OF CONTENTS TABLE OF CONTENTS...............................................................................................................2 LIST OF ABBREVIATIONS........................................................................................................4 1. EXECUTIVE SUMMARY........................................................................................................5 2. COMPANY OVERVIEW......................................................................................................... 5 2.1. Business segments.............................................................................................................. 5 2.2. Company’s strategies.......................................................................................................... 6 2.3. Stock Price Movements...................................................................................................... 7 3. INDUSTRY OVERVIEW AND COMPETITIVE ANALYSIS.............................................8 3.1. Industry overview................................................................................................................8 3.2. Competitive positioning....................................................................................................10 4. KEY FINANCIAL ANALYSIS AND PREDICTIONS........................................................12 4.1. Profitability....................................................................................................................... 12 Revenue Projection and Pro-forma Financial Statements....................................................... 14 CAPEX Projection...................................................................................................................17 Levered Cost of Equity and WACC.........................................................................................17 FCF and Terminal Value.......................................................................................................... 18 DCF Valuation......................................................................................................................... 19 5.2. APV Method..................................................................................................................... 20 Unlevered cost of equity and WACC.......................................................................................20 FCF and Terminal Value.......................................................................................................... 21 APV Valuation......................................................................................................................... 22 5.3. EV/EBITDA Multiples...................................................................................................................22 5.4. Residual Income Valuation............................................................................................... 23 5.5. PEG & PEGY Valuation................................................................................................... 23 5.6. Blended Valuation Result..................................................................................................24 5. SCENARIO AND SENSITIVITY ANALYSIS..................................................................... 25 6.1. Scenario analysis...............................................................................................................25 6.2. Sensitivity analysis............................................................................................................26 6. INVESTMENT RISK..............................................................................................................26 7. RECOMMENDATIONS AND CONCLUSIONS.................................................................27 REFERENCES.............................................................................................................................29 APPENDICES..............................................................................................................................33 APPENDIX 1: STOCK PRICE MOVEMENTS.....................................................................35 APPENDIX 2: INCOME STATEMENT.................................................................................37 APPENDIX 3: BALANCE SHEET........................................................................................ 37 APPENDIX 4: CAPEX PROJECTION.................................................................................. 39 APPENDIX 5: PRO-FORMA ASSUMPTIONS.................................................................... 40 2

LIST OF ABBREVIATIONS 4