Risk Free 5.98%Risk premium 7.20%Beta 1.5Ke / Wacc 16.78%

10%Net incomeDepriciationEAT

Number of shares 1440000 (Cash Dividents)Closing share price 39.75 CFValue 57240000 (Capex)Value by DCF valuation 20300.512104144 (Working capital needs)Difference -57219699.4879 FCFF

39.750.0140975778501

Growth rate (Curtis right corporation with same PE

value)

1999 2000 2001 2002 2003 20045575 8347 8634 9792 11106 125761508 1660 1828 2012 2212 24327083 10007 10462 11804 13318 150082304 2304 2880 3456 4320 51844779 7703 7582 8348 8998 98242433 1826 2011 2213 2433 26754757 3492 3867 4289 4757 5273

-2411 2385 1704 1846 1808 1876

period1 2385 16.78% 2042.3017642 1704 16.78% 1249.48960843 1846 16.78% 1159.11435394 1808 16.78% 972.130440485 1876 16.78% 863.75481123

NPV of FCFF 6286.790978

Terminalvalue FCFF*(1+g)/WACC-gTV 30436.58Pv of TV 14013.72Value of the firm 20300.51

EPS 0.014098*1000 14.09758

30900000150000000119100000

Risk Free 5.98%Risk premium 7.20%Beta 1.5Ke / Wacc 16.78%

10% Net incomeDepriciation

Number of shares 1440000 EATClosing share price 39.75 (Cash Dividents)Value 57240000 CFValue by DCF valuation 69989.417988847 (Capex)Difference -57170010.58201 (Working capital needs)

FCFF

39.750.0486037624923

Growth rate (Curtis right corporation with same PE

value)

1999 2000 2001 2002 2003 20045575 8347 8634 9792 11106 125761508 1660 1828 2012 2212 24327083 10007 10462 11804 13318 15008

7083 10007 10462 11804 13318 150082433 1826 2011 2213 2433 26754757 3492 3867 4289 4757 5273-107 4689 4584 5302 6128 7060

period1 4689 16.78% 4015.2423362 4584 16.78% 3361.30303113 5302 16.78% 3329.15726134 6128 16.78% 3294.91998855 7060 16.78% 3250.5911339

NPV of FCFF 17251.213751

Terminalvalue FCFF*(1+g)/WACC-gTV 114542.8Pv of TV 52738.2Value of the firm 69989.42

EPS 0.048604*1000 48.60376

30900000150000000119100000

Risk Free 5.98%Risk premium 5.50%Beta 1.5Ke / Wacc 14.23%

10%Net incomeDepriciationEAT

Number of shares 1440000 (Cash Dividents)Closing share price 39.75 CFValue 57240000 (Capex)Value by DCF valuation #REF! (Working capital needs)Difference #REF! FCFF

Growth rate (Curtis right corporation with same PE

value)

1999 2000 2001 2002 2003 20045575 8347 8634 9792 11106 125761508 1660 1828 2012 2212 24327083 10007 10462 11804 13318 150082304 2304 2880 3456 4320 51844779 7703 7582 8348 8998 98242433 1826 2011 2213 2433 26754757 3492 3867 4289 4757 5273

-2411 2385 1704 1846 1808 1876

period1 2385 14.23% 2087.89284782 1704 14.23% 1305.89794013 1846 14.23% 1238.48618444 1808 14.23% 1061.88556945 1876 14.23% 964.56600148

NPV of FCFF 6658.7285432

Terminalvalue FCFF*(1+g)/WACC-gTV 48784.87Pv of TV 25083.28Value of the firm 31742.01

Fair value 0.022043*1000 22.04306

#REF!

83471660

10007182634924689

30900000150000000119100000

Risk Free 5.98%Risk premium 5.50%Beta 1.5Ke / Wacc 14.23%

10%Net incomeDepriciationEAT

Number of shares 1440000 (Cash Dividents)Closing share price 39.75 CFValue 57240000 (Capex)Value by DCF valuation 190804599.54 Working capital needsDifference 133564599.54 (Change in WCM)

FCFF

Growth rate (Curtis right corporation with same PE

value)

1999 2000 2001 2002 2003 2004 geo mean5575 8347 8634 9792 11106 12576 9971.0941508 1660 1828 2012 2212 24327083 10007 10462 11804 13318 15008

7083 10007 10462 11804 13318 150082433 1826 2011 2213 2433 26754757 3492 3867 4289 4757 5273

-1265 375 422 468 5169446 8076 9169 10417 11817

period1 9446 14.23% 8269.28127462 8076 14.23% 6189.22051913 9169 14.23% 6151.50586414 10417 14.23% 6118.1758725 11817 14.23% 6075.8403196

NPV of FCFF 32804.023849

Terminalvalue FCFF*(1+g)/WACC-gTV 307297.9Pv of TV 158000.6Value of the firm 190804.6

190804.6

1999 2000 2001 2002 2003 2004Net income 5575 8347 8634 9792 11106 12576Depriciation 1508 1660 1828 2012 2212 2432EAT 7083 10007 10462 11804 13318 15008(Cash Dividents)CF 7083 10007 10462 11804 13318 15008(Capex) 2433 1826 2011 2213 2433 2675(Working capital needs) 4757 3492 3867 4289 4757 5273FCFF -107 4689 4584 5302 6128 7060

period1 4689 14.23% 4104.8762 4584 14.23% 3513.0493 5302 14.23% 3557.1264 6128 14.23% 3599.1345 7060 14.23% 3629.977

NPV of FCFF 18404.16

Terminalvalue FCFF*(1+g)/WACC-gTV 183593.4Pv of TV 94396.55Value of the firm 112800.7

Fair value 0.078334*1000 78.33383

83471660

10007182634924689

30900000150000000119100000

Tax rate 40.00%Risk Free 5.98%Risk premium 5.50%Beta 0.85Ke 10.65500%Kd 51.00% SalesShare price 21.98 Net incomeeps 2.39 DepriciationPE ratio 9.19665272 EATGrwth rate 7.00% (Cash Dividents)no of shares 62694361 CFdebt 119100 (Capex)

(Working capital needs)CF

flowerserve corp with simmilar PE and beta

1999 2000 2001 2002 2003 2004 geo mean2187208 2329373 2480785 2642037 2813769 2996658

164041 176101 189036 201323 216097 230143 201636.526800 27950 29770 31700 33170 35960

190841 204051 218806 233023 249267 266103 0.064998

190841 204051 218806 233023 249267 266103 0.07351829480 30745 32747 34870 36487 39556

45165.81 48101.58 51228.22 54558.06 58104.27128140.19 137957.42 146924.78 158221.9 168442.7

period1 128140.19 10.66% 115801.5362 137957.42 10.66% 112668.6213 146924.78 10.66% 108438.10554 158221.94 10.66% 105531.6035 168442.73 10.66% 101530.6248

NPV of FCFF 543970.4907

Terminalvalue FCFF*(1+g)/WACC-gTV 4931155.16Pv of TV 2972305.57value of firm 3516276.061debt 119100Value of the firm 3397176.061

Face value 0.05418631*1000 54.18630969

0.06500118 0.06500039 0.065 0.0649978736%

0.07345217 0.0649982 0.073385 0.0649985897%

CompanyArvin 7.5Tristar Aerospace 10 9.9 Net income (GM)Detriot diesel 12.2 Industry multipleSundstrand Corp 16.7 Equity valueWalbro 19.8 no of sharesHoneywel 24.7

39.76666667Face value shares

hussmann 27.3 *1000Bridgeport machines 29Moore 63

Equity value/Target net income

Yeats TSE0 201636.5

9.9 39.766670 8018413

1440000 626943610 0.1278970 127.8969

Arithmatic meanCompany Value share face value No of sharesYeats 20300.5121041443 14.0975778501 1440000Tse 3397176.06085912 54.186309688349 62694361Ratio 167.344352863178 3.8436609653454

No. Of TSE exchange 374642.82437579 Entry Price

Relative valuationCompany Value share face value No of sharesYeats 0 0 1440000Tse 8018413.29463037 127.89688205978 62694361Ratio #DIV/0!

No. Of TSE exchange #DIV/0!

Minimum stock pricevalue weights

DCF 14.0975778501002 50%Relative 0 25%Market price 39.75 25%total

Geometric meanCompany Value share face value No of sharesYeats 31742.005177479 22.043059151027 1440000Tse 3397176.06085912 54.186309688349 62694361

107.024620589169 2.4582027983091No. Of TSE exchange 585793.81692613 Walk away

1 3.8436609653450 0

Walk away

Minimum stock price Maximum stock priceweighted value value weights

7.04878892505 DCF 22.04305915103 50%0 Relative 0 25%

9.9375 Market price 39.75 25%16.98628892505 total

Maximum stock priceweighted value11.02152957551

09.9375

20.95902957551