The presentation written and delivered by myself and a team of Marquette AIM Seniors at the America\'s Regional of the CFA Global Investment Research Challange in March, 2009
Value Proposition canvas- Customer needs and pains
Marquette Bmi
1. Badger Meter, Inc. CFA Global Investment Research Challenge 2009 Marquette University
2. Recommendation SELL Target Price $2 5 Per Share Current Price $ 29 Per Share Source: Bloomberg, Team Projections Market Cap (Mil): $428.17 52 WK H-L: $62.74-17.58 FY Dec 2008A 2009E 2010E Shares Out (Mil): 14.81 Institutional Holdings 72.99% Revenue (Mil) $279.55 $258.19 $259.28 Float (Mil): 13.84 Insider Holdings 5.28% Net Income (Mil) $25.08 $19.18 $19.76 Avg. Daily Volume: 239,884 Return On Equity 24.71% EPS $1.72 $1.32 $1.36 TTM Dividend: $0.40 Debt To Common Equity 22.67% P/E 17x 22x 21x Dividend Yield: 1.38%
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7. Increased Funding Costs Source: Bloomberg Revenue Assumptions AA 5yr Municipal Bonds Over 5yr Treasury Bonds
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11. Margin Analysis Spot Copper Price Per Metric Ton vs. Company Margins Source: Bloomberg, BMI Data Copper Price Margin As % Of Revenue
12. Discounted Cash Flow Model Valuation Methodology Valuation $ In Millions Terminal EBITDA Multiple 7.5x Projected EBITDA, 2013 $59,771 Terminal Value $448,279 Discounted Terminal Value $302,702 Sum Of PV FCF $80,902 Net Debt $18,957 Value Of Equity $364,472 Target Price Per Share $24.61