How use multiples from comparable regulated utilities

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Unformatted text preview: rable regulated utilities as Use in Exhibit 10… Question 2: Valuation of PacifiCorp Question Summary of PacifiCorp valuation estimates from Exhibit 10: Enterprise Value as Multiple of: Rev. EBIT EBITDA MV Equity as Multiple of: EPS Book Value Median multiple of comparables 6,252 8,775 9,023 4,277 5,904 Mean multiple of comparables 6,584 9,289 9,076 4,308 5,678 How does Berkshire’s offer compare to the range of How values? Question 2: Valuation of PacifiCorp Valuation But it will take 12 to 18 months for the deal to close… What is the present value of Berkshire Hathaway’s cash What present payment (assume $4.3B in securities is the present value) ? What is the appropriate discount rate? What discount Is there sufficient information to calculate the cost of equity capital? Is Is there sufficient information to calculate the cost of debt capital? Is Berkshire has very little debt – how risky is it? Questions 2 and 3: Valuation of PacifiCorp Questions What is an appropriate discount rate? What The PV of $5.1B one year hence is The $5.1B Es...
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