Jake Dalpiaz | 631.

27

Apple (AAPL)
LBO Model
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)

jake.dalpiaz@stayingsh

x Transaction Assumptions
Current Share Price
Offer Premium
Offer Price Per Share
Leverage Ratio

$266.70
20.0%
$320.04
6.0 x

Purchase Price Calculations

Basic Shares Outstanding
Basic Equity Value
Diluted Shares Outstanding
Diluted Equity Value
Less: Cash & Investments
Plus: Debt
Plus: Minority Interest
Plus: Preferred Stock
Plus: Other Liabilities
Enterprise Value

Equity Purchase Price

Enterprise Value
EBITDA Purchase Multiple
Debt Required
Equity Used
EBITDA Exit Multiple

909,938
$291,217
929,471
$297,468
$41,704
$0
$0
$0
$0
$255,764

Advisory Fee %
Financing Fee %
Legal & Misc. Fees

6.0 x
10,000
40.0%
30.0%
20.0%
10.0%

Debt Required
Revolver
Term Loan A
Term Loan B
Subordinated Note
PIK Loan

L + 250
L + 350
L + 500
11.00%
13.00%

Revolver
Term Loan A
Term Loan B
Subordinated Note
PIK Loan

Options Calculations - Purchase Price

Name
Tranche A
Tranche B
Total

26,675

$85.69

x Debt Assumptions
Leverage Ratio
Units for LIBOR
Term Loan A %
Term Loan B %
Subordinated Note %
PIK Loan %
Interest Rates
Revolver
Term Loan A
Term Loan B
Subordinated Note
PIK Loan

Principal Repayment %

x Sources & Uses

Sources
Excess Cash
Term Loan A
Term Loan B
Subordinated Note
PIK Loan
Investor Equity
Total Sources

Uses
$1,559
$31,642
$23,731
$15,821
$7,910
$216,923
$297,586

Equity Value of Company

Advisory Fees
Capitalized Financing Fees
Legal & Misc. Fees
Total Uses

x Goodwill Creation & Balance Sheet Adjustments

Goodwill Calculation
Equity Purchase Price
Less: Seller Book Value
Plus: Write-Off of Existing Goodwill
Total Allocable Purchase Premium

$297,468
($31,905)
$207
$265,770

Fixed Asset Write-Up

PP&E Write-Up %
PP&E Write-Up Amount
Depreciation Period (Years)

Less: Write-Up of PP&E

Less: Write-Up of Intangibles
Less: Write-Down of DTL
Plus: New Deferred Tax Liability
Total Goodwill Created

Intangible Asset Write-Up

Purchase Price to Allocate
% Allocated to Intangibles
Intangibles Write-Up Amount
Amortization Period (Years)

($284)
($53,154)
$0
$16,031
$228,363

Financing Fees Amortization Period

New Deferred Tax Liability

x Operating Assumptions
Initial Cash Balance
Minimum Cash Balance

$6,559
$5,000

FY 2007
Revenue Growth %
COGS % Revenue
R&D % Revenue
SG&A % Revenue
Stock-Based Compensation % Revenue
Depreciation & Amortization % Revenue
Effective Cash Interest Rate
Effective Tax Rate

FY 2009

27.2%
66.2%
2.4%
11.1%

52.5%
64.1%
2.0%
8.9%

14.4%
59.0%
1.9%
8.3%

1.0%
1.3%
5.3%
0.0%

1.4%
1.3%
3.4%
0.0%

1.7%
1.7%
1.4%
0.0%

6.5%
23.3
2.1%

7.8%
28.2
1.8%

23.0%
82.6
102.9%
4.3%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

2.9%

2.7%

Accounts Receivable % Revenue

Accounts Receivable Days
Inventory % COGS
Amortization of Intangibles
Accounts Payable % COGS
Accounts Payable Days
Accrued Expenses % Operating Expenses
Short-Term Deferred Revenue % Revenue
Long-Term Deferred Revenue % Revenue
CapEx % Revenue

Historical
FY 2008

3.0%

Transaction Adjustments
Debit
Credit

x Income Statement

FY 2007
Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses
Research & Development
Selling, General & Administrative
Total Operating Expenses
Depreciation & Amortization of PP&E
Depreciation of PP&E Write-Up
New Intangibles Amortization
Amortization of Financing Fees
Amortization of Intangibles
Stock-Based Compensation

Historical
FY 2008

FY 2009

$24,578
$16,282
$8,296

$37,491
$24,049
$13,442

$42,905
$25,324
$17,581

$596
$2,724
$3,320

$759
$3,345
$4,103

$830
$3,566
$4,397

$327

$496

$734

$0
$242

$0
$516

$0
$710

Transaction Adjustments
Debit
Credit

Operating Income
Interest Income / (Expense)
Pre-Tax Income
Income Tax Provision

$4,407
$599
$5,006
$1,511

$8,327
$620
$8,947
$2,828

$11,740
$326
$12,066
$3,831

Net Income
EBITDA

$3,495
$4,976

$6,119
$9,339

$8,235
$13,184

x Balance Sheet
Historical
FY 2008
FY 2009

Transaction Adjustments
Debit
Credit

Assets:
Current Assets
Cash & Cash-Equivalents
Short-Term Securities
Accounts Receivable
Inventory
Deferred Tax Assets
Other Current Assets
Total Current Assets

$11,875
$10,236
$2,422
$509
$1,044
$3,920
$30,006

$6,559
$26,282
$3,361
$455
$4
$3,140
$39,801

$0
$0
$0
$0
$0
$0

$1,559
$0
$0
$0
$0
$0

Long-Term Assets
Long-Term Securities
Plants, Property & Equipment
Goodwill
Other Intangible Assets
Capitalized Financing Fees
Other Assets
Total Assets

$2,379
$2,455
$207
$285
$0
$839
$36,171

$2,554
$2,839
$207
$354
$0
$2,011
$47,766

$0
$284
$228,363
$53,154
$49
$0

$0
$0
$207
$0
$0
$0

Liabilities & Shareholders' Equity

Current Liabilities
Revolver
Accounts Payable
Accrued Expenses
Deferred Revenue
Total Current Liabilities

$0
$5,520
$4,224
$1,617
$11,361

$0
$5,601
$3,852
$2,053
$11,506

$0
$0
$0
$0

$0
$0
$0
$0

Long-Term Liabilities
Deferred Revenue
Existing Long-Term Debt
Term Loan A
Term Loan B
Subordinated Note
PIK Loan:
Deferred Tax Liability
Other Long-Term Liabilities
Total Liabilities

$768
$0
$0
$0
$0
$0
$0
$1,745
$13,874

$853
$0
$0
$0
$0
$0
$0
$3,502
$15,861

$0
$0
$0
$0
$0
$0
$0
$0

$0
$0
$31,642
$23,731
$15,821
$7,910
$16,031
$0

Shareholders' Equity
Common Stock
Additional Paid-In Capital
Treasury Stock
Sponsor Common Equity
Retained Earnings
Accumulated Other Comprehensive Income
Total Shareholders' Equity

$7,177
$0
$0
$0
$15,129
($9)
$22,297

$7,177
$1,185
$0
$0
$23,364
$179
$31,905

$7,177
$1,185
$0
$0
$23,433
$179

$0
$0
$0
$216,923
$0
$0

Total Liabilities & SE

Balance Check

$36,171

$47,766

Balanced!

Balanced!

x Cash Flow Statement

FY 2007

Historical
FY 2008

Net Income:
Depreciation & Amortization of PP&E:
Depreciation of PP&E Write-Up:
New Intangibles Amortization:
Amortization of Financing Fees:
Accrual of PIK Note:
Amortization of Intangibles:
Stock-Based Compensation:
Changes in Operating Assets & Liabilities:
Accounts Receivable:
Inventory:
Other Current Assets:
Other Assets:
Accounts Payable:
Deferred Revenue:
Other Liabilities:
Cash Flow from Operations:
Capital Expenditures:
Cash Flow Available for Debt Repayment:
Revolver:
Term Loan A:
Term Loan B:
Subordinated Note:
PIK Loan:
Total Cash Flow Used to Repay Debt:
Net Change in Cash & Cash Equivalents:
Beginning Cash Balance:
Ending Cash Balance:
x Debt & Interest Schedules

LIBOR Curve
Interest Rate Assumptions
Revolver
Term Loan A
Term Loan B
Subordinated Note
PIK Loan
Interest Income / (Expense) Calculations
Revolver

LIBOR +
2.50%
3.50%
5.00%

Fixed
Interest

11.00%
13.00%

FY 2009

Transaction Adjustments
Debit
Credit

Term Loan A
Term Loan B
Subordinated Note
PIK Loan
Cash
Net Interest Income / (Expense)
Sources of Funds
Beginning Cash Balance
Less: Minimum Cash Balance
Plus: Cash Flow Available for Debt Repayment
Subtotal Before Revolver
Revolver Borrowing Required
Total Sources of Funds
Uses of Funds
Mandatory Debt Repayment
Term Loan A
Term Loan B
Subordinated Note
PIK Loan
Mandatory Repayment Total
Optional Debt Repayment
Revolver
Term Loan A
Term Loan B
Subordinated Note
PIK Loan
Optional Repayment Total
Cash Generated on Balance Sheet
Total Uses of Funds
x Investor Returns

EBITDA
EBITDA Multiple
Enterprise Value
Investor Equity
IRR

Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Exit Multiple

Purchase Premium / PerShare Price

x
$
$
$
$
$
$
$
$
$
$

386.72
373.38
360.05
346.71
333.38
320.04
306.71
293.37
280.04
266.70

17.9%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

6.0 x
3.4%
4.3%
5.3%
6.3%
7.4%
8.5%
9.7%
11.1%
12.5%
14.1%

7.0 x
5.9%
6.8%
7.8%
8.9%
10.0%
11.2%
12.4%
13.8%
15.3%
16.9%

8.0 x
8.2%
9.2%
10.2%
11.2%
12.4%
13.6%
14.9%
16.3%
17.9%
19.5%

Exit Multiple
9.0 x
10.0 x
10.3%
12.3%
11.3%
13.3%
12.3%
14.3%
13.4%
15.4%
14.6%
16.6%
15.8%
17.9%
17.2%
19.3%
18.6%
20.8%
20.2%
22.4%
21.9%
24.1%

11.0 x
14.1%
15.1%
16.2%
17.3%
18.6%
19.9%
21.2%
22.7%
24.4%
26.1%

Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Leverage Ratio:

Purchase Premium / PerShare Price

x
$
$
$
$
$
$
$
$
$
$

386.72
373.38
360.05
346.71
333.38
320.04
306.71
293.37
280.04
266.70

17.9%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

2.0 x
11.2%
12.1%
12.9%
13.8%
14.8%
15.8%
16.9%
18.0%
19.2%
20.5%

3.0 x
11.5%
12.3%
13.2%
14.2%
15.2%
16.3%
17.4%
18.6%
19.9%
21.3%

4.0 x
11.7%
12.6%
13.6%
14.6%
15.7%
16.8%
18.0%
19.3%
20.7%
22.1%

Leverage Ratio
5.0 x
6.0 x
12.0%
12.3%
12.9%
13.3%
13.9%
14.3%
15.0%
15.4%
16.1%
16.6%
17.3%
17.9%
18.6%
19.3%
20.0%
20.8%
21.5%
22.4%
23.1%
24.1%

7.0 x
12.6%
13.6%
14.7%
15.9%
17.2%
18.6%
20.0%
21.6%
23.3%
25.2%

Jake Dalpiaz | 631.275.5761

jake.dalpiaz@stayingsharpe.com
www.stayingsharpe.com

$297,468
$255,764
19.4 x
$79,104
$218,364
10.0 x
0.02%
0.06%
$10

ons - Purchase Price

19,533
19,533

$79,104
$2,000
$31,642
$23,731
$15,821
$7,910

ncipal Repayment %
NA
10.0%
5.0%
0.0%
0.0%

Uses

$297,468
$59
$49
$10
$297,586

10.0%
$284
8

saction Adjustments
FY 2009

saction Adjustments
FY 2009

$265,770
20.0%
$53,154
5

$16,031

FY 2010E

FY 2011E

Projections
FY 2012E

FY 2013E

FY 2014E

45.0%
57.5%
1.9%
8.3%

30.0%
56.0%
1.9%
8.3%

15.0%
54.5%
1.9%
8.3%

10.0%
53.0%
1.9%
8.3%

7.5%
51.5%
1.9%
8.3%

1.7%
1.7%
1.0%
30.0%

1.7%
1.7%
1.0%
30.0%

1.7%
1.7%
2.0%
30.0%

1.7%
1.7%
2.0%
30.0%

1.7%
1.7%
3.0%
30.0%

7.8%
28.2
1.8%
$40

7.8%
28.2
1.8%
$37

7.8%
28.2
1.8%
$28

7.8%
28.2
1.8%
$13

7.8%
28.2
1.8%
$10

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

2.7%

2.7%

2.7%

2.7%

2.7%

FY 2010E

FY 2011E

Projections
FY 2012E

FY 2013E

FY 2014E

$62,212
$35,787
$26,425

$80,876
$45,310
$35,566

$93,007
$50,711
$42,296

$102,308
$54,248
$48,060

$109,981
$56,667
$53,314

$1,204
$5,171
$6,375

$1,565
$6,723
$8,288

$1,800
$7,731
$9,531

$1,980
$8,504
$10,484

$2,128
$9,142
$11,270

$1,064
$35
$10,631
$10
$40
$1,030

$1,384
$35
$10,631
$10
$37
$1,338

$1,591
$35
$10,631
$10
$28
$1,539

$1,750
$35
$10,631
$10
$13
$1,693

$1,882
$35
$10,631
$10
$10
$1,820

saction Adjustments
FY 2009

$7,240
($6,650)
$591
$177

$13,843
($5,277)
$8,566
$2,570

$18,931
($3,254)
$15,677
$4,703

$23,444
($2,222)
$21,222
$6,367

$27,656
($939)
$26,718
$8,015

$413
$20,050

$5,996
$27,278

$10,974
$32,765

$14,856
$37,576

$18,702
$42,044

FY 2010E

FY 2011E

Projections
FY 2012E

FY 2013E

FY 2014E

$5,000
$26,282
$3,361
$455
$4
$3,140
$38,242

$5,000
$26,282
$4,873
$643
$4
$3,140
$39,942

$5,000
$26,282
$6,335
$814
$4
$3,140
$41,576

$13,699
$26,282
$7,286
$911
$4
$3,140
$51,322

$43,040
$26,282
$8,014
$975
$4
$3,140
$81,455

$76,147
$26,282
$8,615
$1,018
$4
$3,140
$115,207

$2,554
$3,123
$228,363
$53,508
$49
$2,011
$327,850

$2,554
$3,682
$228,363
$42,837
$39
$2,011
$319,429

$2,554
$4,419
$228,363
$32,169
$29
$2,011
$311,122

$2,554
$5,273
$228,363
$21,511
$19
$2,011
$311,053

$2,554
$6,215
$228,363
$10,867
$10
$2,011
$331,474

$2,554
$7,230
$228,363
$226
$0
$2,011
$355,592

$0
$5,601
$3,852
$2,053
$11,506

$0
$7,915
$5,585
$2,977
$16,477

$0
$10,021
$7,261
$3,870
$21,152

$0
$11,216
$8,350
$4,450
$24,016

$0
$11,998
$9,185
$4,895
$26,079

$0
$12,533
$9,874
$5,263
$27,670

$853
$0
$31,642
$23,731
$15,821
$7,910
$16,031
$3,502
$110,996

$1,237
$0
$16,509
$22,545
$15,821
$9,010
$16,031
$3,502
$101,132

$1,608
$0
$0
$17,114
$15,821
$10,263
$16,031
$3,502
$85,491

$1,849
$0
$0
$0
$15,821
$11,690
$16,031
$3,502
$72,910

$2,034
$0
$0
$0
$15,821
$13,315
$16,031
$3,502
$76,782

$2,187
$0
$0
$0
$15,821
$15,167
$16,031
$3,502
$80,377

$0
$0
$0
$216,923
($69)
$0
$216,854

$0
$1,030
$0
$216,923
$344
$0
$218,297

$0
$2,368
$0
$216,923
$6,340
$0
$225,631

$0
$3,907
$0
$216,923
$17,314
$0
$238,144

$0
$5,600
$0
$216,923
$32,169
$0
$254,692

$0
$7,420
$0
$216,923
$50,872
$0
$275,215

$327,850

$319,429

$311,122

$311,053

$331,474

$355,592

Balanced!

Balanced!

Balanced!

Balanced!

Balanced!

Balanced!

saction Adjustments
FY 2009

FY 2010E

FY 2011E

Projections
FY 2012E

FY 2013E

FY 2014E

$413
$1,064
$35
$10,631
$10
$1,100
$40
$1,030

$5,996
$1,384
$35
$10,631
$10
$1,253
$37
$1,338

$10,974
$1,591
$35
$10,631
$10
$1,427
$28
$1,539

$14,856
$1,750
$35
$10,631
$10
$1,625
$13
$1,693

$18,702
$1,882
$35
$10,631
$10
$1,851
$10
$1,820

($1,512)
($188)
$0
$0
$2,314
$1,308
$1,733
$17,978

($1,462)
($171)
$0
$0
$2,106
$1,264
$1,676
$24,097

($950)
($97)
$0
$0
$1,195
$822
$1,089
$28,293

($729)
($64)
$0
$0
$782
$630
$835
$32,068

($601)
($43)
$0
$0
$535
$520
$689
$36,040

($1,659)

($2,156)

($2,480)

($2,728)

($2,932)

$16,319

$21,940

$25,813

$29,340

$33,108

$0
($15,132)
($1,187)
$0
$0
($16,319)

$0
($16,509)
($5,431)
$0
$0
($21,940)

$0
$0
($17,114)
$0
$0
($17,114)

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0

$0

$8,699

$29,340

$33,108

$5,000
$5,000

$5,000
$5,000

$5,000
$13,699

$13,699
$43,040

$43,040
$76,147

FY 2010E

FY 2011E

Projections
FY 2012E

FY 2013E

FY 2014E

4.55%

4.78%

4.94%

4.75%

4.40%

7.05%
8.05%
9.55%
11.00%
13.00%

7.28%
8.28%
9.78%
11.00%
13.00%

7.44%
8.44%
9.94%
11.00%
13.00%

7.25%
8.25%
9.75%
11.00%
13.00%

6.90%
7.90%
9.40%
11.00%
13.00%

$0

$0

$0

$0

$0

FY 2009
$13,184
19.4 x
$255,764
($216,923)

($1,938)
($2,210)
($1,740)
($1,100)
$338
($6,650)

($683)
($1,939)
($1,740)
($1,253)
$338
($5,277)

$0
($851)
($1,740)
($1,427)
$764
($3,254)

$0
$0
($1,740)
($1,625)
$1,144
($2,222)

$0
$0
($1,740)
($1,851)
$2,653
($939)

$5,000
($5,000)
$16,319
$16,319
$0
$16,319

$5,000
($5,000)
$21,940
$21,940
$0
$21,940

$5,000
($5,000)
$25,813
$25,813
$0
$25,813

$13,699
($5,000)
$29,340
$38,040
$0
$38,040

$43,040
($5,000)
$33,108
$71,147
$0
$71,147

$3,164
$1,187
$0
$0
$4,351

$3,164
$1,187
$0
$0
$4,351

$0
$1,187
$0
$0
$1,187

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$11,968
$0
$0
$0
$11,968

$0
$13,345
$4,244
$0
$0
$17,589

$0
$0
$15,927
$0
$0
$15,927

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$16,319

$0
$21,940

$8,699
$25,813

$38,040
$38,040

$71,147
$71,147

FY 2010E

$0

FY 2011E

$0

17.9%

12.0 x
15.8%
16.9%
18.0%
19.1%
20.4%
21.7%
23.1%
24.6%
26.3%
28.1%

13.0 x
17.5%
18.5%
19.6%
20.8%
22.1%
23.4%
24.8%
26.4%
28.1%
29.9%

14.0 x
19.0%
20.1%
21.2%
22.4%
23.7%
25.0%
26.5%
28.1%
29.8%
31.6%

FY 2012E

$0

FY 2013E

$0

FY 2014E
$42,044
10.0 x
$420,440
$494,436

o
8.0 x
12.9%
14.0%
15.2%
16.4%
17.8%
19.2%
20.8%
22.6%
24.4%
26.5%

9.0 x
13.2%
14.4%
15.6%
17.0%
18.4%
20.0%
21.7%
23.6%
25.7%
28.0%

10.0 x
13.5%
14.8%
16.1%
17.6%
19.1%
20.9%
22.7%
24.8%
27.1%
29.7%

Jake Dalpiaz | 631.275.5761

Apple (AAPL)
Summary Model
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)

jake.dalpiaz@stayingsharpe.com
www.stayingsharpe.com

Share Prices

Circular Reference Note

Current Share Price (As of 6/25/2010)

$266.70

Price Target

$323.90

Implied Growth

Model Inputs and Assumptions

This model contains circular references. To

ensure accurate calculation, click
Tools>Options>Calculations>Iterations.

21.4%
Multiples and Valuations

Revenue
y-o-y growth%
EBIT
y-o-y growth%
EBITDA
y-o-y growth%
Net Income
y-o-y growth%
EPS (Diluted)
y-o-y growth%

FY 2008

FY 2009

FY 2010E

FY 2011E

FY 2012E

FY 2013E

37,491

42,905

62,212

80,876

93,007

102,308

52.5%

14.4%

45.0%

30.0%

15.0%

10.0%

8,843

12,450

18,946

25,858

31,146

35,813

Selected Return Scenario

Base Case

Assumes: Strong demand for iPad and iPhone 4, no effect on

Upside:
costs due to refunds and free cases, falling costs starting in 2H 2010, iPhone will be
offered on Verizon network starting in 2011 with heavy demand, and continued
market penetration and high growth in China.

Base Case: Assumes: Moderate demand for iPad and iPhone 4, Neglible effect
on costs in 2010 due to refund policy and free cases, falling costs starting in 2011,
and iPhone will be offered on Verizon network starting in 2011 with moderate
demand.

90.2%

40.8%

52.2%

36.5%

20.5%

15.0%

9,339

13,184

20,050

27,278

32,765

37,576

87.7%

41.2%

52.1%

36.1%

20.1%

14.7%

6,119

8,235

12,849

17,606

21,933

25,459

75.1%

34.6%

56.0%

37.0%

24.6%

16.1%

$6.78

$9.08

$14.17

$19.41

$24.18

$28.07

72.6%

33.9%

56.0%

37.0%

24.6%

16.1%

39.3 x

29.4 x

18.8 x

13.7 x

11.0 x

9.5 x

Terminal Value Valuation Method

NA

11.0 x

7.7 x

5.3 x

3.8 x

2.8 x

For WACC:

29.1 x

24.0 x

14.6 x

11.4 x

10.0 x

9.0 x

Cost of Equity Methodology

Assumes: Less than expected demand for iPad, low demand for
Downside:
iPhone 4 given antenna problems, increased costs due to free cases and refund
policy, no Verizon contract, and smaller costs reductions.

For DCF:
P / E:
P / BV:
Eq. Value / Levered FCF:
EV / Revenue:

5.5 x

4.8 x

3.3 x

2.5 x

2.2 x

2.0 x

EV / EBIT:

23.3 x

16.5 x

10.9 x

8.0 x

6.6 x

5.7 x

EV / EBITDA:

22.0 x

15.6 x

10.3 x

7.5 x

6.3 x

5.5 x

Enterprise Value

Go To

Options Calculations

Basic Shares Outstanding:

909,938

Basic Equity Value:

242,681

Name

Diluted Shares Outstanding:

928,043

Tranche A

Diluted Equity Value:

247,509

Tranche B

M&A Comps
Discounted Cash Flow

Less: Cash & Investments

Exercise

41,704

Tranche C

Plus: Debt

---

Tranche D

Plus: Minority Interest

---

Tranche E

Plus: Preferred Stock

---

Total

Plus: Other Liabilities

---

Enterprise Value:

205,805

Number
26,675

Price
$

85.69

Dilution
18,104

Valuation Summary

Cash Flows

Public Comps

Disclosures

WACC
Income Statement
18,104

Balance Sheet

change

Multiple Method

change

Historical Beta

Apple (AAPL)
Valuation Summary
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)

Implied Per Share Values

Public Company Comparables
2009 EV / Revenue:
2010E EV / Revenue:
2009 EV / EBITDA:
2010E EV / EBITDA:

Min to 25th

2009 P / E:
2010E P / E:

25th to Median

Precedent Transactions

Median to 75th

Trailing EV / Revenue:

75th to Max

Forward EV / Revenue:

Trailing EV / EBITDA:
Forward EV / EBITDA:

Discounted Cash Flow Analysis

11-15% Discount Rate, 5-9x Terminal Multiple:

$0

$200

$400

$600

$800

Valuation Statistics
Range of Valuation Multiples / Premiums

Methodology Name
Public Company Comparables
2009 EV / Revenue
2010E EV / Revenue
2009 EV / EBITDA
2010E EV / EBITDA
2009 P / E
2010E P / E
Precedent Transactions
Trailing EV / Revenue
Forward EV / Revenue
Trailing EV / EBITDA
Forward EV / EBITDA
Discounted Cash Flow Analysis
11-15% Discount Rate, 5-9x Terminal Multiple

Minimum
Multiple

25th
Pecentile
Multiple

0.4 x
0.3 x
5.6 x
4.5 x
14.6 x
10.7 x

0.4 x
0.4 x
8.7 x
9.6 x

Implied Per Share Value Range

Median
Multiple

75th
Pecentile
Multiple

Applicable
Apple Inc.
Figure

Maximum
Multiple

0.5 x
0.6 x
7.4 x
5.1 x
16.0 x
11.3 x

1.1 x
1.0 x
8.0 x
6.4 x
19.6 x
12.0 x

3.1 x
2.3 x
10.6 x
6.6 x
29.2 x
16.6 x

3.1 x
2.7 x
13.2 x
8.4 x
48.7 x
27.7 x

42,905
62,212
13,184
20,050
9.08
14.17

1.9 x
2.1 x
11.5 x
13.4 x

2.7 x
2.7 x
14.4 x
19.1 x

6.0 x
5.0 x
17.3 x
23.9 x

8.3 x
7.5 x
39.7 x
32.8 x

42,905
62,212
13,184
20,050

25th
Pecentile
Multiple

Median
Multiple

75th
Pecentile
Multiple

Maximum
Multiple

62.28
65.87
124.92
141.76
132.78
151.73

68.96
82.15
149.82
155.09
145.20
160.06

93.90
110.24
158.08
183.38
178.02
170.07

186.18
202.47
194.86
186.93
265.56
234.65

187.66
222.88
231.95
227.22
442.15
392.76

63.74
73.94
167.88
253.39

134.83
188.60
208.15
333.66

171.27
228.56
249.11
456.82

323.83
378.86
290.02
560.60

427.68
544.76
608.28
753.51

244.36

274.82

307.75

343.33

381.78

Minimum
Multiple

Apple (AAPL)
Public Comparables
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)
Share Price Data as of 6/25/2010
US-Based Hardware & Networking Companies with Over $20 Billion Revenue
Operating Statistics
Capitalization
Share
Equity
Enterprise
Revenue
Company Name
Price
Value
Value
2009
2010E
Hewlett-Packard Company
45.92
110,484
121,320
114,552
124,533
Dell Inc.
12.93
25,511
19,290
51,430
61,781
Cisco Systems, Inc.
22.18
130,174
106,336
34,807
40,059
Intel Corporation
20.03
113,790
101,207
32,784
43,069
Motorola, Inc.
7.07
16,553
12,190
23,457
21,961
Maximum
75th Percentile
Median
25th Percentile
Minimum
Apple, Inc

45.92
22.18
20.03
12.93
7.07

130,174
113,790
110,484
25,511
16,553

121,320
106,336
101,207
19,290
12,190

114,552
51,430
34,807
32,784
23,457

124,533
61,781
43,069
40,059
21,961

16,433
12,708
10,076
3,426
926

266.70

247,509

205,805

42,905

62,212

13,184

US-Based Hardware & Networking Companies with Over $20 Billion Revenue
Valuation Statistics
Capitalization
Enterprise Value /
Share
Equity
Enterprise
Revenue
Company Name
Price
Value
Value
2009
2010E
Hewlett-Packard Company
45.92
110,484
121,320
1.1 x
1.0 x
Dell Inc.
12.93
25,511
19,290
0.4 x
0.3 x
Cisco Systems, Inc.
22.18
130,174
106,336
3.1 x
2.7 x
Intel Corporation
20.03
113,790
101,207
3.1 x
2.3 x
Motorola, Inc.
7.07
16,553
12,190
0.5 x
0.6 x
Maximum
75th Percentile
Median
25th Percentile
Minimum
Apple, Inc

EBITDA
2009
16,433
3,426
10,076
12,708
926

Enterprise Value /
EBITDA
2009
7.4 x
5.6 x
10.6 x
8.0 x
13.2 x

45.92
22.18
20.03
12.93
7.07

130,174
113,790
110,484
25,511
16,553

121,320
106,336
101,207
19,290
12,190

3.1 x
3.1 x
1.1 x
0.5 x
0.4 x

2.7 x
2.3 x
1.0 x
0.6 x
0.3 x

13.2 x
10.6 x
8.0 x
7.4 x
5.6 x

266.70

247,509

205,805

4.8 x

3.3 x

15.6 x

6782

2010E
18,460
4,304
12,603
19,849
1,902

2009
3.14
0.79
0.97
0.41
(1.70)

2010E
4.06
1.08
1.34
1.87
0.26

Projected
Revenue
Growth
8.7%
20.1%
15.1%
31.4%
(6.4%)

19,849
18,460
12,603
4,304
1,902

3.14
0.97
0.79
0.41
(1.70)

4.06
1.87
1.34
1.08
0.26

31.4%
20.1%
15.1%
8.7%
(6.4%)

38.8%
28.9%
14.3%
6.7%
3.9%

46.1%
31.5%
14.8%
8.7%
7.0%

20,050

9.08

14.17

45.0%

30.7%

32.2%

EBITDA

EPS

Enterprise Value /
EBITDA
2010E
6.6 x
4.5 x
8.4 x
5.1 x
6.4 x

P / E Multiple
2009
2010E
14.6 x
11.3 x
16.4 x
12.0 x
22.8 x
16.6 x
48.7 x
10.7 x
NM
27.7 x

8.4 x
6.6 x
6.4 x
5.1 x
4.5 x

48.7 x
29.2 x
19.6 x
16.0 x
14.6 x

27.7 x
16.6 x
12.0 x
11.3 x
10.7 x

10.3 x

29.4 x

18.8 x

EBITDA Margin
2009
2010E
14.3%
14.8%
6.7%
7.0%
28.9%
31.5%
38.8%
46.1%
3.9%
8.7%

Apple (AAPL)
Comparable M&A Transactions
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)
Networking & Hardware M&A Transactions Over $1 Billion with US-Based Sellers Since 1/1/2008

Op

Acquirer Name
Hewlett-Packard Company
Cisco Systems, Inc.
Emerson Electric Co.
EMC Corporation
Oracle Corporation
Brocade Communication Systems, Inc.

Target Name
3Com
Starent Networks
Avocent
Data Domain
Sun Microsystems
Foundry Networks
Maximum
75th Percentile
Median
25th Percentile
Minimum

Date
11/11/2009
10/13/2009
10/6/2009
7/8/2009
4/20/2009
7/21/2008

Equity
Value
3,180
2,777
1,114
2,362
7,075
2,899
7,075
3,110
2,838
2,466
1,114

Enterprise
Value
2,714
2,386
1,147
2,085
5,392
2,063
5,392
2,632
2,235
2,068
1,147

Operating Metrics
Trailing
Revenue
1,265
288
611
301
13,256
621

Forward
Revenue
1,223
320
542
375
12,462
633

Trailing
EBITDA
152
154
105
53
623
156

Forward
EBITDA
110
110
93
64
559
125

EV /
Trailing
Revenue
2.1 x
8.3 x
1.9 x
6.9 x
0.4 x
3.3 x

13,256
1,104
616
378
288

12,462
1,075
587
417
320

623
155
153
117
53

559
121
110
97
64

8.3 x
6.0 x
2.7 x
1.9 x
0.4 x

Valuation Multiples
EV /
EV /
Forward
Trailing
Revenue
EBITDA
2.2 x
17.8 x
7.5 x
15.5 x
2.1 x
10.9 x
5.6 x
39.7 x
0.4 x
8.7 x
3.3 x
13.2 x
7.5 x
5.0 x
2.7 x
2.1 x
0.4 x

39.7 x
17.3 x
14.4 x
11.5 x
8.7 x

EV /
Forward
EBITDA
24.6 x
21.6 x
12.3 x
32.8 x
9.6 x
16.5 x
32.8 x
23.9 x
19.1 x
13.4 x
9.6 x

Apple (AAPL)
Discounted Cash Flow Analysis
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)

Cash Flow Projections

FY 2010E

FY 2011E

FY 2012E

FY 2013E

FY 2014E

Revenue
EBITDA
Operating Income

62,212
20,050
17,916

80,876
27,278
24,519

93,007
32,765
29,607

102,308
37,576
34,120

109,981
42,044
38,332

Less: Taxes

(5,375)

(7,356)

(8,882)

(10,236)

(11,500)

Plus: Depreciation
Plus: Amortization
Plus: Stock-Based Compensation

1,064
40
1,030

1,384
37
1,338

1,591
28
1,539

1,750
13
1,693

1,882
10
1,820

Less: Increase in Working Capital

Less: Capital Expenditures

3,655
(1,659)

3,413
(2,156)

2,058
(2,480)

1,455
(2,728)

1,099
(2,932)

Unlevered Free Cash Flow

Present Value of Free Cash Flow

16,671
15,796

21,179
18,015

23,461
17,916

26,067
17,870

28,711
17,670

1.000
0.500

2.000
1.500

3.000
2.500

4.000
3.500

5.000
4.500

27.0%

10.8%

11.1%

10.1%

Normal Discount Period:

Mid-Year Discount:
Free Cash Flow Growth Rate:
Net Present Value Sensitivity - Terminal Growth Rates

Discount Rate
Terminal Growth
Rate

323.90

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

0.0%

338.95

328.01

317.62

307.75

298.35

289.40

280.89

1.0%

338.95

328.01

317.62

307.75

298.35

289.40

280.89

2.0%

338.95

328.01

317.62

307.75

298.35

289.40

280.89

3.0%

338.95

328.01

317.62

307.75

298.35

289.40

280.89

4.0%

338.95

328.01

317.62

307.75

298.35

289.40

280.89

5.0%

338.95

328.01

317.62

307.75

298.35

289.40

280.89

Net Present Value Sensitivity - Terminal EBITDA Multiples

Discount Rate
Terminal EBITDA
Multiple

323.90

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

4.0 x

254.56

247.36

240.50

233.98

227.76

221.83

216.18

5.0 x

282.69

274.24

266.21

258.57

251.29

244.36

237.75

6.0 x

310.82

301.13

291.92

283.16

274.82

266.88

259.32

7.0 x

338.95

328.01

317.62

307.75

298.35

289.40

280.89

8.0 x

367.08

354.90

343.33

332.33

321.88

311.93

302.46

9.0 x

395.21

381.78

369.04

356.92

345.41

334.45

324.03

DCF Assumptions & Output

Choose TV Valuation Method:
Discount Rate:
Terminal EBITDA Multiple:
Terminal Growth Rate:
Terminal Value:
PV of Terminal Value:
Sum of PV of Cash Flows:
Enterprise Value:
Terminal Value % EV:
Enterprise Value:
Balance Sheet Adjustment:
Implied Equity Value:
Implied Price Per Share:
Implied Growth

Multiple Method
11.4%
7.0 x
3.0%
294,308
171,621
87,267
258,888
66.3%
258,888
41,704
300,592
$323.90
21.4%

Apple (AAPL)
WACC Analysis
($ millions, Except Per Share Amounts in $s and Share Counts in $000s)
Beta and Risk Free Data as of 6/25/2010
Discount Rate Calculation - Assumptions
Risk-Free Rate:
Equity Risk Premium:
Interest Rate on Debt:

3.89%
5.00%
0.00%

Comparable Companies - Unlevered Beta Calculation

Levered
Name
Beta
1.04
1.34
Company Name
1.24
Hewlett-Packard Company
1.13
Dell Inc.
1.76
Median

1.24

Apple Inc.

1.50

Debt
17,662
4,661
15,246
2,382
3,904

Equity
Value
110,484
25,511
130,174
113,790
16,553

Tax Rate
20.0%
27.0%
22.0%
33.0%
34.0%

Unlevered
Beta
0.92
1.18
1.14
1.11
1.52
1.14

Levered Beta & WACC Calculation

Apple Inc.

Unlevered
Beta

Debt

Equity
Value

Tax Rate

Levered
Beta

1.14

---

247,509

30%

1.14

Cost of Equity Based on Comparables:

Cost of Equity Based on Historical Beta:

9.57%
11.39%
Choose Cost of Equity Methodology:

WACC

Historical Beta
11.39%

Apple (AAPL)
Income Statement
($ millions, except per share data in $000s)
Fiscal Years
2006A
x Revenue
Cost of Goods Sold
Gross Profit

2007A

2008A

2009A

2010E

24,578

37,491

42,905

62,212

16,282

24,049

25,324

35,787

8,296

13,442

17,581

26,425

Operating Expenses
Research & Development
Selling, General & Administrative
Total Operating Expenses
Depreciation & Amortization of PP&E
Amortization of Intangibles
Stock-Based Compensation
Operating Income
Interest Income
Interest Expense
Other Income & Expense

596

759

830

1,204

2,724

3,345

3,566

5,171

3,320

4,103

4,397

6,375

327

496

734

1,064

---

---

---

40

242

516

710

1,030

4,407

8,327

11,740

17,916

647

653

407

439

---

---

(48)

---

(33)

---

(81)

---

Pre-Tax Income

5,006

8,947

12,066

18,355

Income Tax Provision

1,511

2,828

3,831

5,507

Net Income

3,495

6,119

8,235

12,849

Diluted Earnings Per Share

$3.93

$6.78

$9.08

$14.17

889,292

902,139

907,005

907,005

EBIT

4,649

8,843

12,450

18,946

EBITDA

4,976

9,339

13,184

20,050

Levered Free Cash Flow

4,735

8,505

10,311

Diluted Shares Outstanding

Book Value Per Share (BV)

24.17

34.56

16,978
$

49.90

x Drivers & Growth Assumptions

Revenue Growth %

27.2%

52.5%

14.4%

45.0%

COGS % Revenue

66.2%

64.1%

59.0%

57.5%

2.4%

2.0%

1.9%

1.9%

11.1%

8.9%

8.3%

8.3%

Stock-Based Compensation % Revenue

1.0%

1.4%

1.7%

1.7%

Depreciation & Amortization % Revenue

1.3%

1.3%

1.7%

1.7%

Effective Cash Interest Rate

5.3%

3.4%

1.4%

1.0%

Debt Interest Rate

---

---

---

0.0%

Effective Tax Rate

30.2%

31.6%

31.8%

30.0%

R&D % Revenue
SG&A % Revenue

x Scenarios

Revenues
1 Upside
2 Base Case
3 Downside
2

50.0%
45.0%
27.5%
45.0%

Costs
1 Upside
2 Base Case
3 Downside
2

57.5%
59.0%
62.5%
59.0%

Fiscal Years
2011E

2012E

2014E

80,876

93,007

102,308

109,981

45,310

50,711

54,248

56,667

35,566

42,296

48,060

53,314

1,565

1,800

1,980

2,128

6,723

7,731

8,504

9,142

8,288

9,531

10,484

11,270

1,384

1,591

1,750

1,882

37

28

13

10

1,338

1,539

1,693

1,820

24,519

29,607

34,120

38,332

632

1,727

2,250

4,265

---

---

---

2013E

---

---

---

---

---

25,151

31,333

36,370

42,597

7,545

9,400

10,911

12,779

17,606

21,933

25,459

29,818

$19.41

$24.18

$28.07

$32.88

907,005

907,005

907,005

907,005

25,858

31,146

35,813

40,152

27,278

32,765

37,576

42,044

21,621

24,670

27,642

70.83

96.74

126.69

31,696
$

161.58

30.0%

15.0%

10.0%

7.5%

56.0%

54.5%

53.0%

51.5%

1.9%

1.9%

1.9%

1.9%

8.3%

8.3%

8.3%

8.3%

1.7%

1.7%

1.7%

1.7%

1.7%

1.7%

1.7%

1.7%

1.0%

2.0%

2.0%

3.0%

0.0%

0.0%

0.0%

0.0%

30.0%

30.0%

30.0%

30.0%

35.0%
30.0%
18.0%
30.0%

25.0%
15.0%
12.0%
15.0%

17.5%
10.0%
8.0%
10.0%

10.0%
7.5%
5.0%
7.5%

56.0%
57.5%
58.0%
57.5%

54.5%
56.0%
58.0%
56.0%

53.0%
54.5%
57.0%
54.5%

51.5%
53.0%
57.0%
53.0%

Apple (AAPL)
Balance Sheet
($ millions, except per share data in $000s)
Balance Sheet Check

Balanced!

Balanced!

2006A

2007A

Balanced!

Balanced!

2008A

2009A

Balanced!
Fiscal Years
2010E

x Assets
Current Assets
Cash & Cash-Equivalents

11,875

6,559

23,537

Short-Term Securities

10,236

26,282

26,282

Accounts Receivable

2,422

3,361

4,873

509

455

643

Deferred Tax Assets

1,044

Other Current Assets

3,920

3,140

3,140

30,006

39,801

58,480

Long-Term Securities

2,379

2,554

2,554

Plants, Property & Equipment

2,455

2,839

3,434

Goodwill

207

207

207

Other Intangible Assets

285

354

314

Other Assets

839

2,011

2,011

36,171

47,766

66,999

Accounts Payable

5,520

5,601

7,915

Accrued Expenses

4,224

3,852

5,585

Deferred Revenue

1,617

2,053

2,977

11,361

11,506

16,477

768

853

1,237

Inventory

Total Current Assets

Long-Term Assets

Total Assets:
Liabilities & Shareholders' Equity
Current Liabilities

Total Current Liabilities

Long-Term Liabilities
Deferred Revenue
Long-Term Debt
Other Long-Term Liabilities
Total Liabilities

---

---

---

1,745

3,502

3,502

13,874

15,861

21,216

7,177

7,177

7,177

1,185

2,215

Shareholders' Equity
Common Stock
Additional Paid-In Capital

---

Treasury Stock

---

Retained Earnings
Accumulated Other Comprehensive Income

15,129
(9)

--23,364

--36,213

179

179

Total Shareholders' Equity

22,297

31,905

45,783

Total Liabilities & SE

36,171

47,766

66,999

x Accounts Receivable % Revenue

Accounts Receivable Days
Inventory % COGS
Amortization of Intangibles
Accounts Payable % COGS
Accounts Payable Days
Accrued Expenses % Operating Expenses
Short-Term Deferred Revenue % Revenue
Long-Term Deferred Revenue % Revenue

Days per Year

6.5%
23.3
2.1%

360
7.8%
28.2
1.8%

7.8%
28.2
1.8%

23.0%
82.6
102.9%
4.3%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

Balanced!

Balanced!

Balanced!

Balanced!

2011E

2012E

2013E

2014E

Fiscal Years

45,158

69,828

97,470

129,166

26,282

26,282

26,282

26,282

6,335

7,286

8,014

8,615

814

911

975

1,018

3,140

3,140

3,140

3,140

81,734

107,451

135,885

168,226

2,554

2,554

2,554

2,554

4,206

5,095

6,073

7,124

207

207

207

207

277

249

236

226

2,011

2,011

2,011

2,011

90,989

117,567

146,966

180,347

10,021

11,216

11,998

12,533

7,261

8,350

9,185

9,874

3,870

4,450

4,895

5,263

21,152

24,016

26,079

27,670

1,608

1,849

2,034

2,187

---

---

---

---

3,502

3,502

3,502

3,502

26,262

29,368

31,615

33,358

7,177

7,177

7,177

7,177

3,553

5,092

6,785

8,605

---

---

---

---

53,818

75,752

101,210

179

179

179

131,028
179

64,727

88,199

115,351

146,989

90,989

117,567

146,966

180,347

7.8%
28.2
1.8%

7.8%
28.2
1.8%

7.8%
28.2
1.8%

7.8%
28.2
1.8%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

22.1%
79.6
87.6%
4.8%
2.0%

Apple (AAPL)
Cash Flows
($ millions, except per share data in $000s)

2006A

2007A

2008A

Fiscal Years
2010E

2009A

x Operating Activities
Net Income
Depreciation & Amortization of PP&E
Amortization of Intangibles

3,495

6,119

8,235

12,849

327

496

734

1,064

---

---

---

40

242

516

710

1,030

Deferred Income Tax Expense

73

398

1,040

---

Loss on PP&E

12

22

26

---

(385)

(785)

(939)

(1,512)

(76)

(163)

54

(188)

(1,279)

(274)

780

---

285

289

(1,172)

---

Accounts Payable

1,494

596

81

2,314

Deferred Revenue

566

718

521

1,308

Stock-Based Compensation

Changes in Operating Assets & Liabilities

Accounts Receivable
Inventory
Other Current Assets
Other Assets

Other Liabilities

716

1,664

1,385

1,733

5,470

9,596

11,455

18,637

(11,719)

(22,965)

(46,724)

---

9,424

16,243

30,678

---

(17)

(38)

(101)

---

Capital Expenditures

(735)

(1,091)

(1,144)

(1,659)

Acquisition of Intangibles

(251)

(108)

(69)

---

49

(230)

(74)

---

(3,249)

(8,189)

(17,434)

(1,659)

Cash Flow from Operations

Investing Activities
Purchases of Securities
Proceeds from Maturities & Sales
Purchases of LT Investments

Other
Cash Flow from Investing
Financing Activities
Proceeds from Common Stock

365

483

475

---

Common Stock Repurchased

---

---

---

---

Dividends Issued

---

---

---

---

377

757

270

---

Raise / (Pay Off) Long-Term Debt

---

---

---

---

Cash Used for Equity Awards

(3)

(124)

(82)

---

Cash Flow from Financing

739

1,116

663

---

2,960

2,523

(5,316)

16,978

Beginning Cash
x Ending Cash

6,392
9,352

9,352
11,875

11,875
6,559

6,559
23,537

x CapEx % Revenue

3.0%

2.9%

2.7%

2.7%

Tax Benefits from Stock-Based Comp

Increase / Decrease in Cash

Fiscal Years
2011E

2012E

2013E

2014E

17,606

21,933

25,459

29,818

1,384

1,591

1,750

1,882

37

28

13

10

1,338

1,539

1,693

1,820

---

---

---

---

---

---

---

---

(1,462)

(950)

(729)

(601)

(171)

(97)

(64)

(43)

---

---

---

---

---

---

---

---

2,106

1,195

782

535

1,264

822

630

520

1,676

1,089

835

689

23,777

27,150

30,370

34,629

---

---

---

---

---

---

---

---

---

---

---

---

(2,156)

(2,480)

(2,728)

(2,932)

---

---

---

---

---

---

---

---

(2,156)

(2,480)

(2,728)

(2,932)

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

21,621

24,670

27,642

31,696

23,537
45,158

45,158
69,828

69,828
97,470

97,470
129,166

2.7%

2.7%

2.7%

2.7%

Apple (AAPL)
Disclosures

The author of www.stayingsharpe.com ("the site") is not a registered investment advisor.

The material in this model should not be viewed as an offer to sell or buy securities. Investments in the securities mentioned in
this model may lose value. The author of the site is not liable for any losses or entitled to any gains incurred on securities
discussed in this model.
The author of this site does not receive compensation for any of the research in this model.
The author is not an investor in any of the securities named in this model.