Google Admob
Google-AdMob Deal
| Google Inc | |||||
| Risk Free Rate, 1-year Treasury Note: Average for May, 2010 | 0.35% | ||||
| Risk Free Rate, 10-year Treasury Note: Average for May, 2010 | 3.42% | ||||
| Required Market Risk Premium relative to 10-year Treasury Note | 5% - 6% | ||||
| Beta | 1.12 | ||||
| Google's estimated ke (based on case Exhibit 18) | |||||
| Adjustment for Size, Liquidity | 15% | ||||
| Admobs Cost of Equity Capital | ? | ||||
| Admob's FCF Estimates (in millions) | 12/30/09 | 12/30/08 | 12/30/07 | 12/30/06 | 12/30/05 |
| Net Revenues | $146.48 | $107.04 | $77.93 | $55.68 | |
| EBIT(1-T) | $31.29 | $13.97 | $11.83 | $15.35 | |
| Depreciation | $10.10 | $7.31 | $5.32 | $2.57 | |
| Capex | $23.18 | $10.67 | $11.91 | $11.37 | |
| Change in NWC | $137.24 | $28.45 | $7.56 | $11.34 | |
| Free Cash Flows | ? | ? | ? | ? | |
| AdMob's Terminal Value estimates | 12/30/09 | 12/30/08 | 12/30/07 | 12/30/06 | 12/30/05 |
| Warranted MV firm / EBIT (1-tax rate), using Google's 2009 multiple | |||||
| Warranted MV firm / Sales, using Googles's 2009 multiple | |||||
| Value of AdMob | |||||
| Using, Warranted MV Firm / EBIT (1-tax rate); as multiple | |||||
| Using, Warranted MV Firm / Sales; as multiple |
&"Arial,Bold"Exhibit xx: Google Inc. Capital Market Data
Sheet1
| Google + Admob | $ 68.00 | 24% |
| Millenia Media | $ 51.00 | 18% |
| Yahoo | $ 32.00 | 11% |
| Microsoft | $ 23.00 | 8% |
| Quattro Wireless | $ 21.00 | 8% |
| JumpTap | $ 11.00 | 4% |
| AOL | $ 7.00 | 3% |
| Others | $ 65.93 | 26% |
| $ 278.93 | ||
| $ 28.00 | 10% | |
| Millenia Media | $ 51.00 | 18% |
| Admob | $ 40.00 | 14% |
| Yahoo | $ 32.00 | 11% |
| Microsoft | $ 23.00 | 8% |
| Quattro Wireless | $ 21.00 | 8% |
| JumpTap | $ 11.00 | 4% |
| AOL | $ 7.00 | 3% |
| Others | $ 65.93 | 26% |
| $ 278.93 | ||
| http://www.mediapost.com/publications/?art_aid=117926&fa=Articles.showArticle |
http://www.mediapost.com/publications/?art_aid=117926&fa=Articles.showArticle