Exhibit 11 provides the implied PCP enterprise value using the mean multiples of the competitors Enterprise Value (share price multiplied by shares outstanding plus value of debt). The chart uses the EV/EBITDA ratio discussed earlier this semester, as well as the multiples of other metrics compared to EV. Using the data in the case exhibits 10 and 11, which multiple supports (is at or above) Buffetts $37.2 billion valuation of PCP:

A. All of these

B. implied valuation using the 14.51x mean EV/EBIT multiple of the peer group

C. implied valuation using the mean 7.42x EV/EBITDA multiple of the peer group

D. implied valuation using the mean 0.84x EV/Sales multiple of the peer group

I might be reading this wrong... is it B, or A?

Exhibit 10 Warren E. Buffett, 2015 Comparable Firms Price Per Share (dollars in millions) Company Shares 0/S Low High Total Assets Total Liabilities Cash and Equiv ST Debt LT Debt Net Debt Rev EBITDA EBIT Net Income Alcoa LISI ThyssenKrupp Allegheny Technologies Carpenter Technology Precision Castparts 1,216.7 $15.77 $16.03 54.0 $21.30 $21.50 565.9 $20.64 $20.85 108.7 $34.59 $35.41 53.1 $61.75 $63.35 141.8 $209.61 $211.36 Div. Per Share $0.12 $0.37 $0.11 $0.72 $0.72 $0.12 $37,399 $1,387 $41,547 $6,583 $3,058 $19,428 $22,605 $677 $38,348 $3,861 $1,553 $8,471 $1,877 $111 $4,122 $270 $120 $474 $83 $46 $1,071 $18 $0 $1,093 $8,769 $246 $6,651 $1,509 $604 $3,493 $6,975 $23,906 $181 $1,307 $3,600 $41,304 $1,257 $4,223 $484 $2,173 $4,112 $10,005 $3,556 $193 $2,290 $283 $382 $2,927 $2,185 $131 $1,314 $106 $212 $2,602 $2,043 $81 $210 ($3) $133 $1,530 Exhibit 11 Warren E. Buffett, 2015 Valuation of PCP Based on Multiples for Comparable Firms Company Line Name Enterprise Value Book Value Alcoa LISI ThyssenKrupp Allegheny Technologies Carpenter Technology Median Mean MV Equity $13,637 $1,332 $9,460 $1,804 $1,627 $1,804 $5,572 $23,164 $1,517 $12,924 $3,193 $2,220 Rev $23,906 $1,307 $41,304 $4,223 $2,173 $4,223 $14,583 $10,005 $10,599 $709 $3,182 $2,598 $1,326 $2,598 $3,683 $10,929 CY '14 EBITDA EBIT $3,556 $2,185 $193 $131 $2,290 $1,314 $283 $106 $382 $212 $382 $212 $1,341 $790 $2,927 $2,602 Net Income $2,043 $81 $210 ($3) $133 $133 $493 $1,530 Enterprise Value as Multiple of: Revenue EBITDA EBIT 0.97x 6.51x 10.60% 1.16x 7.86% 11.56x 0.31x 5.64x 9.84x 0.76x 11.28% 30.09x 1.02x 5.81% 10.47x 0.97x 6.51x 10.60x 0.84x 7.42x 14.51x MV of Equity as Multiple of: Net Income Book Value 6.68% 1.29x 16.36x 1.88x 45.05x 2.97% 0.69% 12.25x 1.23x 14.31% 1.29x 20.08x 1.61x NM $3,193 $8,603 Precision Castparts Implied Value - Median Implied Value - Mean' $9,705 $8,404 $19,055 $21,718 $27,581 $37,755 $21,894 $30,722 $14,098 $17,596 Exhibit 10 Warren E. Buffett, 2015 Comparable Firms Price Per Share (dollars in millions) Company Shares 0/S Low High Total Assets Total Liabilities Cash and Equiv ST Debt LT Debt Net Debt Rev EBITDA EBIT Net Income Alcoa LISI ThyssenKrupp Allegheny Technologies Carpenter Technology Precision Castparts 1,216.7 $15.77 $16.03 54.0 $21.30 $21.50 565.9 $20.64 $20.85 108.7 $34.59 $35.41 53.1 $61.75 $63.35 141.8 $209.61 $211.36 Div. Per Share $0.12 $0.37 $0.11 $0.72 $0.72 $0.12 $37,399 $1,387 $41,547 $6,583 $3,058 $19,428 $22,605 $677 $38,348 $3,861 $1,553 $8,471 $1,877 $111 $4,122 $270 $120 $474 $83 $46 $1,071 $18 $0 $1,093 $8,769 $246 $6,651 $1,509 $604 $3,493 $6,975 $23,906 $181 $1,307 $3,600 $41,304 $1,257 $4,223 $484 $2,173 $4,112 $10,005 $3,556 $193 $2,290 $283 $382 $2,927 $2,185 $131 $1,314 $106 $212 $2,602 $2,043 $81 $210 ($3) $133 $1,530 Exhibit 11 Warren E. Buffett, 2015 Valuation of PCP Based on Multiples for Comparable Firms Company Line Name Enterprise Value Book Value Alcoa LISI ThyssenKrupp Allegheny Technologies Carpenter Technology Median Mean MV Equity $13,637 $1,332 $9,460 $1,804 $1,627 $1,804 $5,572 $23,164 $1,517 $12,924 $3,193 $2,220 Rev $23,906 $1,307 $41,304 $4,223 $2,173 $4,223 $14,583 $10,005 $10,599 $709 $3,182 $2,598 $1,326 $2,598 $3,683 $10,929 CY '14 EBITDA EBIT $3,556 $2,185 $193 $131 $2,290 $1,314 $283 $106 $382 $212 $382 $212 $1,341 $790 $2,927 $2,602 Net Income $2,043 $81 $210 ($3) $133 $133 $493 $1,530 Enterprise Value as Multiple of: Revenue EBITDA EBIT 0.97x 6.51x 10.60% 1.16x 7.86% 11.56x 0.31x 5.64x 9.84x 0.76x 11.28% 30.09x 1.02x 5.81% 10.47x 0.97x 6.51x 10.60x 0.84x 7.42x 14.51x MV of Equity as Multiple of: Net Income Book Value 6.68% 1.29x 16.36x 1.88x 45.05x 2.97% 0.69% 12.25x 1.23x 14.31% 1.29x 20.08x 1.61x NM $3,193 $8,603 Precision Castparts Implied Value - Median Implied Value - Mean' $9,705 $8,404 $19,055 $21,718 $27,581 $37,755 $21,894 $30,722 $14,098 $17,596