Pinkerton (a)

net rev cogs gross proft % o rev

1987 408.3 381.7 26.6 6.51%

     

operating exp % o rev

 page 3  4 % sales sales  page 3

 

1987 408.3 17.6

net revenue net PPE delta net ppe NWC (% changes) NWC delta NWC NWC (% changes) NWC delta NWC

    37.7     37.7   1987 408.3 26.6 27 -0.4

Net revenue gross proft margin operating expenses EBI EBI! " #$ % tax less delta net ppe delta NWC C delta NWC C discounted C discounted C &iscount 'ate euit *eta levered assume ris+ premium C,E   ater tax C,& de*t   euit   &-.   E-.  

6.51%

               

 

 

1988 367.47 14.6988 -2.9012 8.60% 31.60242 -6.09758 9.50% 34.90965 -2.79035 1988 367.47 31.23495 22.0482 9.18675 6.063255 -2.9012 -6.09758 15.062035 -2.79035 11.754805 13.4269300469 10.4787264436

0.89 5% using exh 5 13.03% assume bond is 6.53% 10.6 exh 4 70.2 0.13118812 0.86881188

/acc &-E unleverd *eta

     

CPP de*t0 euit

12.18% 0.15099715 0.80934245

3.1 18

Pin+erton interest expense 0.4 long term de*t at *eginning o r 4.1 cost o de*t 9.80% levered *eta Cost o euit

 positive scenario

   

0.90133771 13.09% 1988 0 0 0 0

EBI EBI! #$ % tax less C ad1usted C discounted C  TV PV E.

inal E.

28.9642986 16.3052847 19.584187

   

137.529014

1988

6.61%  page 3

'evenue   operating expense   op exp pro1 pro1 op0 exp   saving   ater tax saving   dsicounted ater tax saving

367.47 24.3 6% 22.0482 2.2518 1.486188 1.3248503481

 

P'ICIN2

revenue current 2P3 revised 2P3 revised 2P3 increased 2P

408.3 6.51%      

sales rev sales rev

1988 449.13 29.238363 8.50% 31.23495 1.996587

408.3 408.3

449.13 367.47

1987 408.3 37.7 9.23%

1988 367.47

Non cash Wor+ing capital

4ales revenue NWC   NWC % o 4' revised NWC   'evised NWC   delta NWC delta NWC in positive scenario decrease in delta NWC &iscounted NWC  

Particulars Cash !-'

   

33.93 8.60% 31.60242 -3.77 -6.09758 2.32758 2.0749024842

 

1989 326.64 13.0656 -1.6332 7.40% 24.17136 -7.43106 9.50% 31.0308 -3.87885

1990 285.81 11.4324 -1.6332 6.20% 17.72022 -6.45114 9.50% 27.15195 -3.87885

1991 300.1005 12.00402 0.57162 6.20% 18.606231 0.886011 9.50% 28.509548 1.3575975

1992 315.10553 gro/th 12.604221 0.600201 6.20% 19.536543 positive scenario 0.9303116 9.50% 29.935025 negative scenario 1.4254774

1989 326.64 29.3976 19.27176 10.12584 6.6830544 -1.6332 -7.43106 15.747314 -3.87885 12.195104 14.037817 9.6910687

1990 1991 1992 285.81 300.1005 315.10553 27.15195 30.760301 32.298316 16.57698 17.405829 18.27612 10.57497 13.354472 14.022196 6.9794802 8.8139517 9.2546493 -1.6332 0.57162 0.600201 -6.45114 0.886011 0.9303116 positive scenario 15.06382 7.3563207 7.7241367 -3.87885 1.3575975 1.4254774 negative scenario 12.49153 6.8847342 7.2289709 13.428521 6.557733 6.8856196 8.8490136 4.347699 4.0695074

rated  no0 o shares outstanding 5 share price

assuming data for Pinkerton same as PP

assume !"# same as pinkerton

1989 1.2 0.792 0 0.792 0.6293777

1990 1.5 0.99 0 0.99 0.7013171

1991 2 1.32 0 1.32 0.833578

1992 3 1.98 0 1.98 1.1146296

1989

1990

1991

1992

326.64 21.6 5.90% 19.27176 2.32824 1.5366384 1.2211186  TV PV EV

285.81 18.9 5.80% 16.57698 2.32302 1.5331932 1.0861157 24.727107 13.919982 19.520257

300.1005 315.10553 19.845 20.83725 5.80% 5.80% 17.405829 18.27612 2.439171 2.5611296 1.6098529 1.6903455 1.0166196 0.9515702

1989 489.5517 31.869816 9% 29.3976 -2.472216

1990 1991 1992 528.71584 565.72594 599.6695 34.419401 36.828759 39.038485 9.50% 10.25% 10.25% in positive scenario 27.15195 30.760301 32.298316 -7.267451 -6.068458 -6.740168

489.5517 326.64

528.71584 565.72594 599.6695 285.81 300.1005 315.10553

1989 326.64

1990 285.81

1991 300.1005

30.16 7.40% 24.17136 -3.77 -7.43106 3.66106 2.9093301

26.39 6.20% 17.72022 -3.77 -6.45114 2.68114 1.8993225

27.7095 29.094975 6.20% 6.20% 18.606231 19.536543 1.3195 1.385475 0.886011 0.9303115 0.433489 0.4551635 0.2737476 0.2562316

1992 315.10553

dierence

!P" operating e#p gro$t

5%

$acc

1988 8.50% 8.50% 6%

1989 9.00% 8.75% 5.90%

&ot canging sa'es reven(e operating e#pense ta# rate net ppe

canging !P" &)*

12.18%

 TV disco(nted TV EV

112.9920214794 63.6082061015 117.9448270089

 TV disco(nted TV EV

105.748521064 59.530519365 96.9665345456

1990 9.50% 9% 5.80%

1991 10.25% 9.50% 5.80%

selling price $ selling volume  sales rve

 TV PV

6.656290007 3.7471200275

1992 10.25% 9.50% 5.80%

d e value

75 25 100

1 value o Va'(e o+ +ri, - T 2

/*/E  1 PTdepr-de'ta cape#-de'ta &)*  'oan - '

6ength o 2 stage ,ode' 3 stage sta'e

an repa,ent  1en