DCF and LBO

    

  1. Based on the financial information and assumptions in Exhibit 2, undertake a DCF valuation for Bottomline Technologies identifying the intrinsic equity value of a share. Outline the assumptions used and explain your calculations and workings.
     

2. Based on the financial information and assumptions in Exhibit 3, undertake a LBO valuation for Bottomline Technologies, identifying the IRR that will be generated on equity assuming an exit in year 5. Outline the assumptions used in your calculations and explain your workings.