### DCF Method with LTG & EBITDA Multiple

The DCF with long-term growth (1) method is one of the most widespread models to value public companies. This method assumes that the company is going to survive and grow at a steady and constant rate. This widely applied Discounted Cash Flow is based on discounting future cash flows for an array of risk factors, for which the formula is illustrated below: The difference between the 2 DCF(LTG & Exit Multiple) that are to be used lies on the computation of the Terminal Value (TV), explained as below.

Y1*SR/(1+DR) ^1 + Y2*SR/(1+DR)^2 + Yn*SR/(1+DR)^n +TV/(1+DR)^ n   X(1-ID)

Where: Where= n= number of projected years, SR=Survival Rate, ID=Liquidity Discount and DR= Discount Rate. Y1= Free Cash Flows to equity of the respective year

TV with LTG:

TERMINAL VALUE COMPUTATION=: (Yn * SR) * (1+Growth Rate)/(DR-Growth Rate)

Where: Yn= Free cash flow to Equity of the final projected year, DR= Discount Rate, SR=Survival Rate:

Growth Rate: The growth rate assumes the company will grow at that pace in perpetuity, and it can not be higher than the GDP growth rate of a certain country, as this would mean that the company will outpace the country and eventually become bigger than the country itself. It is safe to apply a fixed range that spans from 0.1% to 2.5%, based on the industry of belonging and the region/country where it is operating and other macroeconomic indicators.

TV with Exit Multiple:

TERMINAL VALUE COMPUTATION= EBITDA of Last Projected Year X Industry Multiple X Survival Rate of Lat Projected Year.

Survival Rate Being the nature of private companies riskier than the public one, one needs to apply a survival rate discount to the estimated cash flows.