Question: 14. Exhibit 11 provides several multiples based on peers. What is the enterprise value of PCP based on the EBITDA multiple for ThyssenKrupp? Use CY
14. Exhibit 11 provides several multiples based on peers. What is the enterprise value of PCP based on the EBITDA multiple for ThyssenKrupp? Use CY 14 values.
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$ 16,508 Billion
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$ 19,055 Billion
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$ 21,718 Billion
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$ 37,755 Billion
15. Did Buffett overpay/underpay for PCP based on the enterprise and market values implied by
the median multiples given in Exhibit 11 Line 8.
A. Overpay B. Underpay
Company Line Name MV Equity Enterprise Value Book Value CY '14 EBITDA EBIT Enterprise Value as Multiple of: Revenue EBITDA EBIT MV of Equity as Multiple of: Net Income Book Value Net Income $2,043 $81 Alcoa LISI ThyssenKrupp Allegheny Technologies Carpenter Technology Median Mean $13,637 $1,332 $9,460 $1,804 $1,627 $23,164 $1,517 $12,924 $3,193 $2,220 $10,599 $709 $3,182 $2,598 $1,326 Rev $23,906 $1,307 $41,304 $4,223 $2,173 $4,223 $14,583 $10,005 $3,556 $193 $2,290 $283 $382 $382 $1,341 $2,927 $2,185 $131 $1,314 $106 $212 $210 ($3) 0.97x 1.16x 0.31x 0.76x 1.02x 6.51% 7.86x 5.64x 11.28x 5.81% 6.51% 7.42% 10.60x 11.56x 9.84x 30.09x 10.47x 6.68x 16.36x 45.05x NM 12.25x 1.29x 1.88x 2.97x 0.69x 1.23x $133 $133 $1,804 $5,572 $3,193 $8,603 $2,598 $3,683 $10,929 $212 $790 $2,602 0.97x 0.84x 10.60x 14.51x 14.31x 20.08x 1.29x 1.61x $493 $1,530 Precision Castparts Implied Value - Median | Implied Value - Mean1 $9,705 $8,404 $19,055 $21,718 $27,581 $37,755 $21,894 $30,722 $14,098 $17,596 Company Line Name MV Equity Enterprise Value Book Value CY '14 EBITDA EBIT Enterprise Value as Multiple of: Revenue EBITDA EBIT MV of Equity as Multiple of: Net Income Book Value Net Income $2,043 $81 Alcoa LISI ThyssenKrupp Allegheny Technologies Carpenter Technology Median Mean $13,637 $1,332 $9,460 $1,804 $1,627 $23,164 $1,517 $12,924 $3,193 $2,220 $10,599 $709 $3,182 $2,598 $1,326 Rev $23,906 $1,307 $41,304 $4,223 $2,173 $4,223 $14,583 $10,005 $3,556 $193 $2,290 $283 $382 $382 $1,341 $2,927 $2,185 $131 $1,314 $106 $212 $210 ($3) 0.97x 1.16x 0.31x 0.76x 1.02x 6.51% 7.86x 5.64x 11.28x 5.81% 6.51% 7.42% 10.60x 11.56x 9.84x 30.09x 10.47x 6.68x 16.36x 45.05x NM 12.25x 1.29x 1.88x 2.97x 0.69x 1.23x $133 $133 $1,804 $5,572 $3,193 $8,603 $2,598 $3,683 $10,929 $212 $790 $2,602 0.97x 0.84x 10.60x 14.51x 14.31x 20.08x 1.29x 1.61x $493 $1,530 Precision Castparts Implied Value - Median | Implied Value - Mean1 $9,705 $8,404 $19,055 $21,718 $27,581 $37,755 $21,894 $30,722 $14,098 $17,596
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