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Final Valuation

Final Valuation. Alysha Zimmerman. Introduction. Comparables. Growth Rate. Industry as a whole is projected to grow only 1 % for 2014 DPS also projects 1% growth the industry giants should eventually recover from this change in consumer preference 2013 sales growth was .03%.

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Final Valuation

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  1. Final Valuation Alysha Zimmerman

  2. Introduction

  3. Comparables

  4. Growth Rate • Industry as a whole is projected to grow only 1% for 2014 • DPS also projects 1% growth • the industry giants should eventually recover from this change in consumer preference • 2013 sales growth was .03% Change in Consumer Preference

  5. Interesting Footnote • The IRS completed a tax audit of DPS’s federal income taxes from 2006-2008 • $33 million non-cash increase in Net Income • Decreased liability for unrecognized tax benefits

  6. IRS Tax Audit Tax Benefit with IRS audit 81 Less: IRS audit 463 Adjusted Tax Benefit (382) EPAT with IRS audit 783 EPAT without IRS Audit 67 EPM with IRS audit 13.06% EPM without IRS audit 1.11%

  7. Forecast Assumptions

  8. Enterprise Valuation – AGR Model

  9. Valuation Adjustments • Current Enterprise Value 8,892.86 • Roll forward date 8892.86*(1.0816)^(4/12) 9,128.55 • Mid-year adjustment 9128.55*1.0816^.5 9,493.86 Final Enterprise Value = $9,493.86 million

  10. Recommendation My Valuation • Final Enterprise Value $ 9,494 • Price per share $33.76 The Market • Enterprise Value $13,182 • Stock price $52.39 SELL

  11. Questions?

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