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AirThread's Value Using EV/Revenue Ratio (2007)AirThread's Value Using Mean $8,396.31 AirThread's Value Using Median $7,419.04 AirThread's Value Using Universal Mobile $11,271.17 AirThread's Value Using Neuberger Wireless $11,602.22 AirThread's Value Using Agile Communications $5,355.22 AirThread's Value Using Big Country Communicati $6,322.54 AirThread's Value Using Rocky Mountain Wireless $7,430.39 Average $8,256.70 Average of Companies Without Outlier (Agile) $9,156.58
AirThread's Value Using EV/EBIT Ratio (2007)AirThread's Value Using Mean $7,368.62 AirThread's Value Using Median $6,766.50 AirThread's Value Using Universal Mobile $4,793.36 AirThread's Value Using Neuberger Wireless $8,064.02 AirThread's Value Using Agile Communications $13,022.99 AirThread's Value Using Big Country Communicati $4,194.45 AirThread's Value Using Rocky Mountain Wireless $6,768.27
Average $7,282.60 Average of Companies Without Outlier (Agile) $5,955.03
Agile Communications is an Outlier
Enterprise Value of AirThread $7,170.47 (using averages without Agile)
EV/Revenue EV/EBITAirThread's Ratios Using Enterprise Value $1.82 $15.90
AirThread's Value Using EV/EBITDA Ratio (2007)AirThread's Value Using Mean $3,893.12 AirThread's Value Using Median $4,303.20 AirThread's Value Using Universal Mobile $4,305.94 AirThread's Value Using Neuberger Wireless $5,182.92 AirThread's Value Using Agile Communications $2,765.60 AirThread's Value Using Big Country Communications $2,876.74 AirThread's Value Using Rocky Mountain Wireless $4,334.40 Average $3,951.70 Average of Companies Without Outlier (Agile & Big Count $4,607.75
AirThread's Value Using EV/Net Income (2007)AirThread's Value Using Mean ($91,616.40)AirThread's Value Using Median $9,626.67 AirThread's Value Using Universal Mobile $10,395.97 AirThread's Value Using Neuberger Wireless $9,625.23 AirThread's Value Using Agile Communications ($493,932.14)AirThread's Value Using Big Country Communications $5,795.26 AirThread's Value Using Rocky Mountain Wireless $10,033.69
Average ($77,153.10)Average of Companies Without Outlier (Agile) $8,962.54
EV/EBITDA EV/Net Income$12.31 $22.79
EBITDA Net Income582.3 314.71,028 240
Income Statement
Operating Results 2005 2006 2007Service Revenue 2827.0 3214.4 3679.2Plus: Equipment Sales 203.7 258.7 267Total Revenue 3030.7 3473.1 3946.2Less: System Operating Expenses 604.1 639.7 717.1Less: Cost of Equipment Sold 511.9 568.9 640.2Less: Selling, General & Administrative 1217.7 1399.6 1555.6EBITDA 697.0 864.9 1033.3Less: Depreciation & Amortization 490.1 555.5 582.3EBIT 206.9 309.4 451.0Less: Interest Expense 84.9 93.7 84.7Plus: Equity in Earnings of Affiliates 66.7 93.1 90.0Plus: Gains (Losses) on Investments 18.1 50.8 83.1Plus: Other Income 54.5 -46.6 7.0EBT 261.3 313.0 546.4Less: Taxes 95.9 120.6 216.7Income Before Minority Interest 165.4 192.4 329.7Less: Minority Interest 10.5 13.0 15.1Net Income 154.9 179.4 314.6
Total Debt 2372.2Total Equity 3239.6Total Liabilities and Equity 5611.9Calculated Ratios:D/E 0.73225089517D/V 0.42270888647E/V 0.57727329425
Growth Rate Calculation
Reinvestment Rate = (CAPEX + Working Capital - Depreciation)/NOPAT
Return on Capital = NOPAT/BV Assets
Growth = Reinvestment Rate x ROC
DATA of Airthread:EBIT 451.1 Reinvestment Rate 0.72378630016NOPAT 270.66CAPEX 548.6 Return on Capital 0.04822965484Working Capital 229.6Depreciation 582.3 Growth 0.03490796343BV Assets 5611.9
Working Capital = Current Assets - Current Liabilities
451 560.9 744.9882PPE 2595.1 3226.4 3946.1Capital Expenditures 548.6 631.3 719.7Depreciation 582.3 705.2 804Working Capital (w/o Synergies) 229.6 262.35096 299.075789Change in Working Capital (w/o Synergies 231.3 32.7509604 36.7248289Working Capital with Synergies 229.6 271.427439 314.726897Change in Working Capital with Synergies 231.3 41.8274391 43.2994577
Before Synergies 2007 2008 2009EBIT 451 404.9 462.6Less: Taxes 180.4 161.96 185.04NOPAT 270.6 242.94 277.56Plus: Deprectiation & Amortization 582.3 705.2 804Less: Capital Expenditures 548.6 631.3 719.7Less: Change in Working Capital 231.3 32.7509604 36.7248289Free Cash Flow 73 284.08904 325.135171
PV's 265.55341 284.09184
NPV $7,733.61 $1,244.63
After Synergies 2007 2008 2009451 560.9 744.9882
Less: Taxes 180.4 224.36 297.99528NOPAT 270.6 336.54 446.99292Plus: Deprectiation & Amortization 582.3 705.2 804Less: Capital Expenditures 548.6 631.3 719.7Less: Change in Working Capital 231.3 41.8274391 43.2994577Free Cash Flow 73 368.612561 487.993462
PV's 344.56212 426.39177
NPV $13,848.97 $2,268.10
Increase in ATC Value after buyout $6,115.36
EBIT (With Synergies)
EBIT (With Synergies)
2010 2011 20125782.9 6361.3 6806.6 Enterprise Value
451 560.9 744.9882PPE 2595.1 3226.4 3946.1Capital Expenditures 548.6 631.3 719.7Depreciation 582.3 705.2 804Working Capital (w/o Synergies) 229.6 262.35096 299.075789Change in Working Capital (w/o Synergies 231.3 32.7509604 36.7248289Working Capital with Synergies 229.6 271.427439 314.726897Change in Working Capital with Synergies 231.3 41.8274391 43.2994577
Before Synergies 2007 2008 2009EBIT 451 404.9 462.6Less: Taxes 180.4 161.96 185.04NOPAT 270.6 242.94 277.56Plus: Deprectiation & Amortization 582.3 705.2 804Less: Capital Expenditures 548.6 631.3 719.7Less: Change in Working Capital 231.3 32.7509604 36.7248289Free Cash Flow 73.0000000000002 284.08904 325.135171
PV's 263.02738 278.71281
NPV $5,990.14 $1,210.90 PV of Tax Shield $1,503.20
Enterprise Value $7,493.34
After Synergies 2007 2008 2009451 560.9 744.9882
Less: Taxes 180.4 224.36 297.99528NOPAT 270.6 336.54 446.99292Plus: Deprectiation & Amortization 582.3 705.2 804Less: Capital Expenditures 548.6 631.3 719.7Less: Change in Working Capital 231.3 41.8274391 43.2994577Free Cash Flow 73.0000000000002 368.612561 487.993462
PV's 341.28454 418.31841
NPV $10,331.11 $2,199.64 PV of Tax Shield $1,503.20
Enterprise Value $11,834.31 Increase in ATC Value after buyout $4,340.97