CFA_TEAMF_Finalreport

CFA Institute Research Challenge
Hosted in
Local Challenge CFA Society of Vancouver
Team F

Team F - Student Research
This report is published for educational purposes only by
students competing in the CFA Institute Research Challenge.
Services Sector, Resorts Industry
Whistler Blackcomb Holdings Inc.
Source: Team Calculations
Ticker: WB Recommendation: Hold
Price as of January 27, 2016: $22.60 Price Target: $22.00 CAD
Highlights
We issue a Hold recommendation on Whistler Blackcomb Holdings Incorporated; our one-year
target price is $22 per share, offering a 3% discount relative to its closing price of $22.60 on January
27, 2016. This recommendation is based off of the following rational:
Recent Expansion and Replacement Projects - Recent developments by Whistler Blackcomb
(WB) include upgrades to the Whistler Village Gondola cabins, renovations on the Rendezvous
Lodge, and acquisitions in the retail and rental department. WB has also spent $5.9 million on
technological advancements on a Radio Frequency Identification (RFID); this will reduce ski lift
wait time and enhance efficiency of future operations.
Hosting 2010 Winter Olympic Games - During the 2010 Winter Olympic Games, Whistler
Blackcomb realized a five-decade long dream by hosting the Olympic and Paralympic Winter
Olympics. This event put Whistler on the map with over 3.5 billion worldwide viewers.
Positive EBITDA During Off-Season - WB has experienced positive EBITDA during summer
operations. As of 2015, 18% of total revenue is contributable to the summer season, which includes
activities such as: sightseeing, biking, hiking, and glacier skiing. This allows Whistler Blackcomb
to reinvest free cash flows or redistribute earnings to investors throughout the entire year.
Moreover, this makes WB a superior investment for investors compared to their regional
competitors in the industry, who suffer from negative EBITDA for three quarters of the year.
Consistent Dividend Payouts - Whistler Blackcomb has paid out consistent quarterly dividends
of $0.244 per share since 2012, earning investors a dividends yeild of 4.32% annually. This high
level of dividends has helped to attract investment during a period of oil price decline and downturn
in the Canadian equity market.
Recent News
Whistler Blackcomb Opens Early - Whistler Blackcomb opened it’s resort operations a week
early on November 19, 2015 due to favorable weather conditions.
CAD & USD Exchange Rate – With the recent drop in oil prices, the Canadian dollar has fallen
to a twelve year low against the US dollar. During the recent depreciation of the Canadian dollar,
Whistler Blackcomb has seen an increase in destinational customers.
Strong 2016 Visitor Metrics – As of the beginning of January, 2016, WB reported strong visitor
metrics that are on track to break the companies previous records. Total visits from September 30
2015 to January 3 in the current 2015/2016 season were 604,000 compared to 514,000 in the same
time period in the 2014/2015 season.
Ranked #1 Ski Resort Overall by SKI Magazine – For the second time in two years,
Whistler Blackcomb was ranked as the #1 overall ski resort in the world by Ski Magazine.
Market Profile
Closing Price $22.60
52-Week Price Range $17.36-$25.00
Average Volume 37,100
Share Outstanding 38,052,000
Market Cap 859,975
Dividends Yield 4.32%
Trailing P/E 40.40x
Beta 0.102
EV/EBITDA 12.19x
Insider Holdings 34.33%
Institutional Investors 63.47%
Target Price Breakdown
Valuation Price Weight
DCF Model $21.81 80%
Multiples $22.60 20%
Target Price $22.00
Key Financial Ratios 2014 2015 2016F 2017F 2018F 2019F
Total Revenue* 254,517 262,254 283,964 292,470 300,297 308,038
EBIT* 51,421 50,790 52,449 56,442 53,832 51,319
Net Profit Margin 7.09% 8.12% 8.53% 9.27% 8.39% 7.52%
Operating Margin 20.20% 19.37% 18.47% 19.30% 17.93% 16.66%
Debt to Equity 0.72 0.77 0.78 0.79 0.81 0.82
Interest Coverage 2.80 3.12 3.32 3.58 3.42 3.21
ROE 4.28% 5.31% 6.30% 7.26% 7.03% 6.67%
ROIC 6.07% 5.87% 6.34% 7.01% 6.94% 6.84%
*In CAD 000s as of January 27th
, 2016
Date: 27/01/2016
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5,000
10,000
15,000
20,000
0
5
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WBSharePrice
Share Price Movement
WB.TO TSX
0.55
0.42
0.35
0.47
0.56
0.00
0.10
0.20
0.30
0.40
0.50
0.60
2011 2012 2013 2014 2015
WB Earnings Per Share
*rounded from $21.97

2
Business Description
Whistler Blackcomb (WB) is a four-season mountain resort located in Whistler, British Columbia.
It is currently the largest ski resort in North America with over 8,000 acres of skiable terrain. The
resort includes two adjacent mountains: Whistler Mountain and Blackcomb Mountain. Combined,
both mountains include 200 runs, 14 alpine bowls, 3 glaciers, 17 restaurants, and 37 lifts. WB also
offers the PEAK 2 PEAK, a gondola ride that links the two mountains; this is the longest and
highest unsupported lift span in the world at 1.88 miles and an elevation of 1427ft.
Whistler Blackcomb attracts people from across the world during their peak season for the ultimate
skiing/snowboarding experience. WB has activities for all levels of skiers, which include beginner
bunny hill lessons to extreme heli-skiing. During the summer, visitors have access to over 50kms
of alpine trails, the PEAK 2 PEAK, Whistler Mountain Bike Park, and riding on Horstman
Glacier. In recent years, WB has increased their summer activities by offering guide-lead tours
such as: bear viewing, photography, hiking, geology and ecology, and jeep rides through the
mountains.
Whistler Blackcomb was formed in 1997 when Intrawest purchased Whistler Mountain Resort and
partnered it with their resort, Blackcomb Mountain. The merger was completed in 1998 and was
available for public use by the 1998/1999 ski season. In 2010, WB hosted the alpine skiing events
for the 2010 Olympic Winter Games, which put Whistler on the map with over 3.5 billion
worldwide viewers. On November 9, 2010, an IPO was launched at $12 a share, which left
Intrawest with a remaining 25% interest in Whistler Blackcomb Holdings Inc. (WBHI). Intrawest
sold off the remainder of their shares in 2012. WBHI holds a 75% interest in the Partnerships of
Whistler Blackcomb and Nippon Cable holds the remaining 25%.
Mission
“To create memories as the best mountain experience again and again”
Vision
“To be the #1 mountain resort in the world… to play, to work, and to invest.”
Culture
“Founded on the passion, honesty, and integrity of our people.”
Management and Governance
Whistler Blackcomb has been based upon a resilient and effective management team; this, along
with the Board of Directors, is the main reason why WB remains a successful company. The
executive management team (Appendix B), Dave Brownlie, Jeremy Black, and Stuart Rempel not
only maintain active roles by pointing the company in the right direction, but they also embody
Whistler Blackcomb’s mission and vision. The Board of Directors (Appendix C) consists of 8
directors, 7 of who are independent, with an ample range of experience in business. We believe
there will be stable management for WB moving forward, due to the fact of established corporate
structure and leadership.
Partnership: Nippon Cable owns 25% minority interest, while Whistler Blackcomb Holdings Inc.
retains the other 75% controlling interest in Whistler Blackcomb (Figure 6). Nippon Cable owns
100% of outstanding Class A units and the class B units are held by individual and institutional
investors (Appendix F).
0
50,000
100,000
150,000
200,000
250,000
300,000
2011 2012 2013 2014 2015
Source: Company Reports
Figure 1: Revenue per Category ($'s
in 000's)
Lift Retail and Rental
Snow School Food and Beverage
Other
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Lift Retail
and
Rentals
Snow
School
Food
and
Beverage
Other
Resort
Revenue
Figure 2: 5 Year CAGR per
Category
0
1
2
3
Disclosure and
Transparency
Executive
Management
Board of Directors
Rights and
Obligations of
Shareholders
Takeover Defense
Figure 5: Corporate Governance
Source: Whistlerpinnacle.com Source: Scribblemaps.com
Figure 3: Whistler Blackcomb Trail and Lift Map Figure 4: Proximity of Whistler

3
Corporate Governance: Whistler Blackcomb is responsible for the corporate governance. WB
was incorporated on October 4, 2010. Some of the key corporate governance factors are as follows
For a full description of Corporate Governance refer to Appendix G.
Code of Ethics: The objective of the code of ethics is to provide guidelines for maintaining the
integrity of the corporation, its subsidiaries and business units. The code of ethics is applied and
followed by all directors, officers, management and employees including those employed by
subsidiaries.
Shareholder Rights: Whistler Blackcomb has a one-share one-vote policy for all its common n
shareholders and does not have any preferred shares outstanding. Shareholders have the rights to
receive dividends on quarterly basis (Appendix G).
Auditors & Audit Committee: The auditing entity for the company is KPMG, responsible for
taxes, auditing, and preparation of the financial statements for the company following the
company’s year-end on September 30 (Appendix E).
Industry Overview and Competitive Positioning
Demand Factors
The major forces that drive demand for Whistler Blackcomb revolve around the fundamental
factors that create EBITDA and generate free cash flows for the company. Major factors that
influence these are:
Tourism Sector Growth and Canadian GDP
Revenues generated from hospitality and tourism account for a large portion of the services
industry. In the fiscal year ended September 30, 2015, 49% of customers for WB were
destinational. The BC tourism revenue is highly correlated with the Canadian GDP, making the
industry dependant on tourism growth to generate cash flows (Appendix I). Based on forecasts
from the Bank of Canada, the GDP is expected to grow steadily above two percent until 2017
(Appendix J).
Exchange Rate
A major factor affecting foreign travel decisions to Canada is the effective exchange rate of the
Canadian dollar relative to other currencies. As the Canadian dollar weakens, foreign travelers
receive higher purchasing power relative to their domestic currencies. Therefore, the recent
weakening of the Canadian dollar has led to increased destinational travel to Canada (Figure 8).
Non-residential travel to Canada has increased; however, strengthening of the Canadian dollar may
pose a threat to Whistler Blackcomb and other firms in the Resorts and Casinos Industry if the
Canadian dollar appreciates. Whistler Blackcomb’s customer mix has increased from 34%
destinational visitors in 2011 to 49% in 2015 while the Canadian Dollar has depreciated.
Unemployment
The unemployment rate has a high level of impact on the resorts and services industry. As the level
of unemployment changes, so does the ability for customers to purchase goods and services. As of
2015, 51% of customers are regional within a close proximity of Blackcomb Mountain. Since 2010
there has been a downwards trend in the BC unemployment rate (Figure 9) and an uptrend in
Whistler Blackcomb’s EBITDA.
Customer Demographics
Whistler Blackcomb profits primarily from being attached to Vancouver’s popular tourism sector
as 8 million people live within a 5 hour driving distance of Whistler. The Whistler community sees
2.14 million visitors each year and has a 60% average occupancy rate for hotels. WB, which
consistently records the most skier visits in North America, was ranked 9th most visited ski area
globally in the 2012/2013 ski season. The proportion of regional guests to destinational guests, as
estimated by management, has been steadily declining year over year, with 51%/49% in fiscal 2015
(Figure 10), as compared to 66%/34% in 2011. This is advantageous for the company as the
destinational guests contribute a higher level of sales than regional guests. Throughout the 2015
season, 55% of regional guests were from B.C. and Washington State. Out of the remaining 45%,
29% came from the rest of the United States, 27% from Europe, 21% from Canada and the
remaining 23% from the rest of the world.
Skier Classifications
Whistler Blackcomb’s world-class resort and landscape makes it ideal for skiers. 22.6% of their ski
runs are classified as “high intermediate” in skill and WB sees the highest skier density per acre in
this bracket. The majority of the company’s ski area is “low intermediate” (20.8%), “intermediate”
(28.8%) and “advanced” (7.4%). Only a small proportion of this area is in the “beginner” (0.4%)
and “novice” (8.8%) brackets. Whistler Blackcomb has stated they would like to attract more
novice skiers to increase the skier density of this run classification.
25%
75%
Figure 6: Partnership Structure
Nipton Cable Whistler Blackcomb
0
50
100
150
0
5
10
15
Travelers(Millions)
Revenue(Billions)
Figure 7: BC Tourism Revenue
and Foreign Travel
BC Tourism Revenue
Foreign Travel to Canada
Source: Destination BC & Statistics Canada
-15%
-10%
-5%
0%
5%
10%
15%
PercentageChange
Figure 8: Exchange Rate Effect on
Foriegn Travel
Canadian-Dollar Exchange Rate Index
Non-Residential Travellers entering
Canada
Source: Bank of Canada, Statistics Canada
0%
2%
4%
6%
8%
10%
Figure 9: BC Unemployment Rate
Source: Statistics Canada

4
Supply Factors
Major supply factors selected are related to Whistler Blackcomb’s main revenue sources. These
supply factors are essential for WB’s revenue and free cash flow for investors.
Skiable Acreage and Market Share
The total number of skiable acreage available in North America is 59,861 acres. Of this, Whistler
Blackcomb supplies 8,171 acres, with the opportunity to expand to 10,000 acres in total. WB
currently holds 10.6% of the Canadian market share and 2.6% of the North American market share;
this percentage is expected to increase (Figure 11).
Snowfall
Snowfall is a significant supply factor for the mountain resorts and services industry, the longer the
snowfall remains, the more profitable the season for Whistler Blackcomb. In response, WB has
installed numerous snowmaking machines covering 697 acres in the event of unfavourable snow
conditions. Whistler Blackcomb has had an average snowfall of 1,118cm per year since 2002
(Figure 12). When comparing against skier visitation, there was no significant statistical
relationship between skier visitation and snowfall and a 34.5% correlation since 2002 (Appendix
H). However, we feel if there continues to be low snowfall seasons, such as 2014/2015, it will have
a large impact towards WB’s winter operations. Due to the unpredictability of snowfall, we chose
to not factor this impact into our valuation, and assumed an average snowfall amount of 1,118cm.
Competitive Position
High Barriers to Entry
The Mountain Resorts and Services Industry has significant barriers to entry due to large capital
requirements, infrastructure, extensive land permit process and favorable mountain conditions.
Within the scope of managing a mountain resort operation, the average annual operating costs for
Whistler Blackcomb is far lower than the majority of competitors. Whistler Blackcomb has an
average cost of $80,332 per skiable acre, not including initial capital expenditures. With high
barriers to entry, competition has enhanced within the existing companies.
Premium Product
The threat of substitution is minor for Whistler Blackcomb as they are offering a premium
and unique product. Visitors have access to 8,171 skiable, which is accessed by 37 lifts with a
capacity for 70,000 skiers per hour, making it the largest ski resort in terms of acreage and operating
capacity in North America (Figure 14). WB’s slopes are also world renowned for their intermediate
to advanced skill levelled slopes and overall superior environment which allows the company to
charge a premium for lift tickets (Appendix P).
Global Brand Awareness
During the 2010 Winter Olympics, Whistler Blackcomb gained worldwide exposure as the winter
games held on Whistler Mountain massed an audience of over 3.5 billion people. As a result, in
combination with extensive marketing, WB retains it’s customer base and has grown faster than
the industry (Appendix K). Whistler Blackcomb is taking the global brand awareness gained from
the 2010 Olympics and focusing efforts on marketing, locally and internationally.
Elevation and Longest Ski Season
In terms of regional competition in the Greater Vancouver area, WB’s summit is situated well
above the competition at 7,494ft, allowing the company to sustain a longer ski season than the
average regional competitor. The resort also includes The Horseman, a glacier bowl which allows
the company to sustain the ski season for 250 days (Figure 13) of the year. The resort with the
second longest ski season in North America is Kirkwood ski resort, at 200 days.
Summer Operations
In addition to WB’s well-known winter operations, WB has utilized their infrastructure to build a
year-round revenue stream. WB offers mountain biking, off-roading, hiking and many other
popular activities during the off-season months. This focus has translated to positive EBITDA
during the summer, which strengthens their competitive advantage and financial health. It also
allows for more opportunity for reinvestment as compared to other competitors who’ve reported
negative EBITDA during the off-season. Summer operations accounted for 18% of total revenue
during fiscal 2015. This creates diversified revenue streams and bargaining power for WB.
51%
14.2%
10.3%
24.5%
Figure 10: Customer Base
Regional
USA
Rest of Canada
Rest of World
Source: 2015 Annual Report
0
50
100
150
200
250
300
Figure 13: Days Open 2014
7%
8%
9%
10%
11%
12%
Figure 11: Canadian Market Share
0
200
400
600
800
1000
1200
1400
1600
1800
2002 2007 2012
Figure 12: Annual Snow Fall (in CM)
Source: Team Calculations, Jan 2016 / Onthesnow.com
Source: Onthesnow.com
Figure 14: Operation Metrics with
Key Competitors

5
Investment Summary
We recommend a hold decision for Whistler Blackcomb based on our one-year target price of
$22.00. This results in a 3% discount from WB’s market price of $22.60 as of January 27, 2016.
We believe WB is fairly priced based our on our five year discounted cash flow model, further
supported by our multiples analysis. Since this was our base case price we conducted further
sensitivity analysis and a monte carlo simulation to test our price variability.
Strong Management
Whistler Blackcomb’s core management team has proven to be strong and resilient in the past and
moving forward. This has been demonstrated by showing consistent commitment to their stable
business model, along with providing an experience of a lifetime for customers. Recently,
management has invested heavily into the business with various replacement projects for the resort,
along with technology upgrades. This reinvestment, combined with their established competitive
position contributes to WB’s stable platform for growth. Whistler Blackcomb’s strong management
team will continue to increase revenue, and maximize shareholder wealth through equity and
dividends.
Diversified Revenue
Whistler Blackcomb continues to be a leader in the Mountain Resort and Services Industry through
diversified revenue streams. Management has been able to expand revenues on an international
level, along with seasonal operations. A shift has occurred with 49% of customers being
destinational from 34% in 2011. For seasonal operations, WB continues to expand their summer
operations of 18% revenue source. This is attributed to unique visitor increases, therefore, positive
EBITDA in summer months. All these factors compliment Whistler Blackcomb’s 6% CAGR in
ticket price.
Strong Free Cash Flows and Consistent Dividends
After recent capital expenditures, Whistler Blackcomb is set to provide steady free cash flows to
investors. Through diversified revenues, and controlled expenses, WB will continue to grow their
EBITDA. With a decrease in capital expenditures, and maintenance in non cash net operating
working capital, it will provide a consistent increase of free cash flow for investors. Their current
dividend policy is set to remain constant, providing an approximate yield of 4.32% on January
27, 2016.
Risks to Valuation
A myriad of risk factors surround the company, the plurality of which are native to the Ski and
Resort Industry. Internal risk factors include Whistler Blackcomb’s 25% non-controlling
partnership with Nippon Cable, management departures, seasonal employment levels or a lawsuit.
External factors WB can not control for investors are climat changes, government policies, interest
rate exposure, currency fluctuations, and Crown Land negotiations. These topics, and more, are
elaborated on in the Risks to Valuation section.
14%
13%
52% 21%
Figure 15: Percentage of Revenue
Jul-Sep
Oct-Dec
Jan-Mar
Apr-Jun
Source: Company Financials
$-
$5
$10
$15
$20
$25
$30
Whistler Blackcomb Share Price
Two new lifts added
Season extended until
May 22nd
18 Skiers die on mountain
Season ends one month early
Bike park opens
Record breaking earnings release
$0.960
$0.965
$0.970
$0.975
$0.980
$0.985
$0.990
$0.995
$1.000
Figure 16: Dividends Per Share

6
Valuation
Growth Rates
In 2015, Whistler Blackcomb experienced revenue growth of 3.04%, well below the company's 5-
year average of 5.5%. Indications from historical analysis has shown that WB is not dependant
solely on skier visitation to drive revenue as the number of these visits have been slightly declining
year-to-year since 2012. In the 2014/2015 ski season, WB achieved a 16.18% increase in retail and
rental revenue, largely attributed to WB destination visitor increase to 49% and acquisition of
Summit Ski Limited. With a weakening Canadian Dollar, and growing BC Tourism industry, we
strongly expect that destination visitors will exceed local skiers in 2016. We anticipate that this
strong boost in destination visitors will provide large growth in the company's retail and food
revenue streams Therefore, valued WB’s terminal growth rate to slightly outpace B.C. Tourism
GDP and arrived at 3.25%.
Weighted Average Cost Of Capital (WACC)
Whistler Blackcomb’s WACC was calculated to be 8.74% in derivation from the company's after-
tax cost of debt of 2.46% and cost of equity of 10.44% (Figure 18). Cost of equity was found as the
effective interest rate that WB is liable to pay it’s minority interest partner, Nippon Cable. The cost
of equity was calculated as the effective interest rate WB paid Nippon in 2012 as that was the year
the interest payments began and we believed best reflected the true cost of equity investment. As
stated by the company, this amount is 9% of the limited partner’s capital contributions, plus,
anticipated interest income tax the partner would incur on the interest income. The book value of
debt was used as WB has no bonds outstanding and the companies credit facility was established
fairly recently in 2013. (Appendix N).
Stabilizing Changes in CAPEX
In 2015, Whistler Blackcomb made large capital expenditures that followed the Company's
previous trends of continually reinvesting into various operations of it’s mountain resort. The net
total was $56,871 million, with $6.4 million allocated to the Rendezvous Lodge on Blackcomb
Mountain; the remaining to technology upgrades and replacement projects. We forecast that
Whistler Blackcomb’s change in capital expenditures will decrease due to heavy prior replacement
and renovation projects from previous years (Figure 19). However, Whistler needs, and has stated,
that they will continuously reinvest in capital assets in order to sustain growth and maintain a
competitive advantage with a minimum reinvestment rate of 5%.
Seasonal Non-Cash NOWC
Whistler Blackcomb’s Non-Cash Net Operating Working Capital varies from year-to-year due to
the seasonality of operations. In the future, they expect the same trend to continue as confirmed by
the CFO. We expect both the accounts receivable and accounts payable to rise symmetrically with
growth in operations. Inventory is also expected to increase, with a large growth in the retail, rental
and food service revenue stream.
Discounted Cash Flow Model
To valuate Whistler Blackcomb’s intrinsic share price value, most of the emphasis was placed on
a 5-year discounted cash flow model. Our calculations arrived us to a intrinsic value of $21.81,
therefore, a hold recommendation. After recent large capital expenditures by WB, we expect an
increase in free cash flow to be available to shareholder with a large decrease in CAPEX
forthcoming (Figure 20). Stable revenue growth is projected for Whistler Blackcomb, and with
effective management, we believe their costs will be controlled. As aforementioned, a terminal
growth rate of 3.25% was used. This is a base case for WB. Further sensitivity analysis was
conducted on cost of cost of equity and terminal growth rate to view the vital changes to our
valuation.
Multiples
To further analyze WB we chose to compare two multiples: EV/EBITDA and P/E. Both multiples
support our hold recommendation.
WB MTN SNOW SKIS
EV/EBITDA 12.19x 14.01x 8.87x 6.77x
P/E Trailing 40.40x 37.53x -118.27x -91.52x
Since 2012, WB has seen stable growth in their EV/EBITDA multiple, which was 12.19x as of
January 27, 2016 (Figure 21). The three competitors we analyzed have an average of 9.88x. We
believe WB is fairly priced based off their EV/EBITDA multiple from it’s constant growth and
the higher multiple compared to it’s compeititors. Therefore, this supports our DCF model and
our hold recommendation.
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
$CAD(,000's)
Figure 19: CAPEX
8.73
9.81
11.06
12.19
8.00
9.00
10.00
11.00
12.00
13.00
2012 2013 2014 2015
Figure X: EV/EBITDA
200,000
220,000
240,000
260,000
280,000
300,000
320,000
340,000
$CAD(,000's)
0
20,000
40,000
60,000
80,000
100,000
2012
2013
2014
2015
2016F
2017F
2018F
2019F
2020F
Figure 20: FCFE - DCF Model
Forecasts
Figure 17: Revenue
Figure 18: WACC
Figure 21: EV/EBITDA Multiple

7
WB’s trailing P/E multiple as of January 27, 2016 was 40.40x. To compare this value we used the
industry average of 38.44x (Source: Thompson Reuters), since IntraWest Resorts (SNOW) and
Peak Resorts (SKIS) both report negative values. The P/E multiple for WB suggests they are faily
valued since they are slightly above industry average. This indicates WB’s earnings will grow
relative to the industry. Moreover, WB has a trailing P/E average of 39.95x effective October 1,
2012. Both indicators suggest WB is fairly priced.
Sensitivity
A sensitivy analysis was conducted on key variables our team felt that any prospective investor
should place emphasis on due to its importance in the valuation of the company. When analyizing
the variables included in the DCF model, cost of equity and the terminal growth rate were found
to be particularily sensitive and are subsequently placed in Figure 22.1 and Figure 22.2. Holding
all else constant, a 10% change in the cost of equity resulted in an approximately 13% change in
the intrinsic value, where a 10% change in the terminal growth rate resulted in an approximately
3.15% change in the price. Further details on the sensitivity of these two variables is given in the
appendix Q.
Monte Carlo
A Monte Carlo simulation was conducted to assess the inherent volatility in the discounted cash
flow valuation aforementioned. The purpose was to add an extra dimension of “what-if” as
compared to traditional scenario and sensitivity analysis. Best and worst case scenarios were
inputed into the model for the company's revenue streams, operating expenses, capital
expenditures, net operating working capital and effective tax rates which were based off of
historical movement and estimated future volatility (Figure 23.1).
500,000 random simulations were then run on these volatilities to fully encompass the ranges of
fluctuations to the intrinsic value of the stock in our model. The end result (Figure 23.2) was a
distribution heavily centered around the base DCF price of $21.81 and prodominated by our hold
range. Further statistics are provided in (Appendix R).
Financial Analysis
Consistent and Stable Revenue Growth
Despite recent declines in temperature, WB has managed to see growth in resort operations due to
consistent capital expenditures, increased marketing tactics towards destination guests and summer
visitation, and increases in effective ticket prices. 2015 lift revenue decreased due to the decline in
the number of regional skier visits WB is accustomed to; however, this loss was offset by the
acquisition of Summit Ski Limited, which increased sales in the retail and rental department. Other
revenues have also increased in 2015, this is attributable to the growth WB is seeing in summer
visitation. From 2011 to 2015, WB has experienced a CAGR of 4.3%. in total revenue.
We expect to see a similar pattern for Whistler Blackcomb moving forward in the next five years.
Skier visitation is forecasted to continue to decline slightly from year-to-year, 2016 being the
exception, which WB will counter by continuing to increase the ETP. Substantial growth is
expected for food revenue as a by-product of the large renovation investment the company
undertook on the Rendezvous Lodge and Christine’s Restaurant in 2015. We have also forecasted
that destination guests will be increasing over the next few years, which will also lead to higher
revenues in the food category, as well as the retail and rental, due to the larger portion of income
this customer segment contributes to these departments. Overall, we expect to see a CAGR of 2%
over the next five years.
0%
20%
40%
60%
80%
100%
Whistler Vail Peak Intra
Source: Team Calcualtions
Figure 24: Revenue Category
Comparison
Lift Retail and Rentals
Snow School Food and Beverage
Other Resort Revenue
Cost of Equity DCF Price
8.35% 30.55$
9.40% 25.44$
10.44% 21.81$
11.48% 19.12$
12.53% 17.03$
Terminal Growth DCF Price
2.60% 20.54$
2.93% 21.15$
3.25% 21.81$
3.58% 22.54$
3.90% 23.34$
Figure 23.2: Monte Carlo Simulation
Figure 22.1: Cost of Equity Sensitivity
Figure 22.2: Cost of Equity Sensitivity
Figure 23.1: Monte Carlo Statistics

8
Ticket Pricing
Due to the higher quality terrain and amenities offered by Whistler Blackcomb, the company has
been able to charge considerably higher prices than it’s regional and international competitors
(Figure 25). With conservative consideration taken in our forecast, we expect ticket price growth
to follow inflation at roughly 2% per year as the winter and summer lift tickets are already priced
considerably higher than most other resorts. 2015’s ETP was $59.88 CAD, compared to the
industry average of $46.70 USD ($65.77CAD at 0.71CAD/USD). However, the recent depreciation
of the Canadian dollar has created a significant competitive pricing advantage for WB, relative to
US competitors in the short term.
High Operating and S,G,A Expenses
Operating expenses have grown at a CAGR of 5.1% over the past five years and selling, general,
& administrative expenses have grown at 7.3%. The main contributor of these high expenses has
to do with recent acquisitions Whistler Blackcomb has made in the previous few years. Also
increased marketing costs, minimum wage changes, increased difficulty in attracting employees,
and costs attributed to WB creating their own IT infrastructure.
We expect to see a continuation of high growth rates for expenses moving forward, which will
constrain WB’s earnings. In order to sustain the large revenue growth in fiscal 2016, WB will have
to support with additional spending in operating expenses. As a percentage, we have forecasted
operating expense growth rates to closely mimic revenue growth rates largely due to the expected
increase in labour costs and other expenses associated with increased traffic in 2016. We also
expect utilities, property taxes, rent and insurance to grow approximately 5% per year due to the
increase in destination visitors and the overall increases in these cost sectors. Afterwards, expenses
are expected to increase relative to CPI, as mentioned by the CFO.
Liquidity
Whistler Blackcomb’s liquidity has declined in the past two years due to a significant portion of
cash used to pay off long-term debt in 2014 and 2015, as well as, higher taxes due to lower interest
payments, movements in non-cash working capital, and capital expenditures. The current ratio was
1.19 in 2011 which decreased to .63 in 2015 (Figure 26), and the quick ratio decreased from .88 to
Ratios Ex Post Ex Ante
Year End September 30 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Profitability
EBITDA 38.5% 33.2% 32.0% 29.5% 30.2% 29.3% 30.0% 28.5% 27.2% 25.9%
Operating Profit Margin 19.8% 19.6% 19.2% 20.2% 19.4% 18.5% 19.3% 17.9% 16.7% 15.5%
Net Profit Margin 9.8% 6.7% 5.5% 7.1% 8.1% 8.5% 9.3% 8.4% 7.5% 6.7%
Return on Assets 2.4% 1.8% 1.6% 2.2% 2.7% 3.1% 3.5% 3.4% 3.2% 3.0%
Return on Equity 3.6% 3.4% 3.0% 4.3% 5.3% 6.3% 7.3% 7.0% 6.7% 6.3%
Liquidity
Current Ratio 1.19 1.35 1.23 0.62 0.63 0.63 0.63 0.65 0.70 0.68
Quick Ratio 0.88 1.06 0.92 0.29 0.24 0.24 0.24 0.26 0.30 0.28
Cash Ratio 0.71 0.92 0.80 0.15 0.10 0.10 0.10 0.12 0.16 0.14
Activity
Total Asset Turnover 0.24 0.27 0.28 0.32 0.33 0.37 0.38 0.40 0.42 0.45
Fixed Asset Turnover 0.62 0.72 0.75 0.80 0.83 0.94 0.97 1.03 1.12 1.21
Financial Leverage
Long-Term Debt to Equity 0.45 0.54 0.58 0.55 0.58 0.58 0.58 0.59 0.60 0.60
Long-Term Debt to Assets 0.29 0.30 0.30 0.29 0.29 0.29 0.28 0.28 0.28 0.29
Debt to Equity 0.45 0.70 0.75 0.72 0.77 0.78 0.79 0.81 0.82 0.82
Times Interest Earned 2.63 1.54 1.54 1.84 2.27 2.55 2.79 2.60 2.38 2.18
Debt Service Coverage 1.00 0.83 0.71 0.58 0.63 0.63 0.66 0.60 0.55 0.50
Shareholder Ratios
EPS Attributable to WBHI 0.35 0.41 0.37 0.47 0.54 - - - - -
EPS Attributable to WB 0.55 0.42 0.35 0.47 0.56 0.64 0.71 0.66 0.61 0.55
Dividend Payout Ratio 115% 233% 278% 205% 174% 153% 137% 148% 161% 176%
$47.06
$49.28
$51.65
$55.77
$59.88
$40.00
$45.00
$50.00
$55.00
$60.00
$65.00
2011 2012 2013 2014 2015
Figure 25: Effective Ticket Price
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Figure 26: Liquidity Ratios
Current Ratio
Quick Ratio

9
.24 in the same period. We expect to see similar liquidity in future years as WB’s primary way of
funding expenditures is through cash from operations, and debt.
Earnings
ROE and ROA has had an average of 4.0% and 2.1%, respectively, from 2012 to 2015. We
excluded 2011 due to the change in 2013 that required WB to make annual payments to Nippon
Cable; these payments are equal to 9% of Nippon’s capital contributions and the estimated portion
of their income taxes payable; this amount was retroactively attributed to 2012. While ROE has
averaged 4.0%, it has been increasing per year due to revenue growth and we project 2016 to have
an ROE of 6.3%. ROA started at 1.8% in 2012 and has increased to 2.7% by 2015 (Figure 27).
This is not just attributable to earnings growth but to an overall decrease in total assets per year.
ROA is expected to increase to 3.1% in 2016.
Capital Structure
Debt to equity was trending upwards until 2014, which decreased from .75 to .72, and then
increased again in 2015 to .77 (Figure 28). The decline in 2014 is attributable to WB paying off a
significant portion of debt and 2015’s incline is due to the interest rate swap the partnerships entered
into in fiscal 2015. There have not been any notable increases in equity contributable to Whistler
Blackcomb Holdings Inc.; the slight increase year-to-year is due to share-based incentive plans and
share options exercised. The CEO has expressed that the current capital structure will remain
relatively consistent moving forward, therefore taken into consideration for forecasting.
Strategy
Whistler Blackcomb has defined three strategic initiatives towards driving growth and revenue.
Upgrading/Expanding Facilities and Infrastructure
Whistler Blackcomb has accomplished a substantial amount of upgrading and expansion to their
ski operations in the past few years. Areas of focus were building new lifts, adding to their
snowmaking fleet, and improving terrain; all of which is expected to continue in the future. WB
also has over 2,000 unused acres that it can use for future expansion.
Expanding Non-Ski Business
Non-ski business includes all-season and summer activities, such as the PEAK 2 PEAK, mountain
biking, sightseeing, hiking, and a bike park. Continued expansion is expected in these activities,
which may include adding mountain coasters, an indoor adventure facility, ziplining, rock
climbing, tree canopy adventures, obstacle courses, and cross-country mountain biking trails. A
large portion of this strategy revolves around the expansion of the already popular Crankworks
mountain biking festival held at Whistler every summer (Figure 29).
Other Strategic Investments
WB has made a number of small, resort-related acquisitions over the years, such as restaurants,
equipment rentals, and retail shops. Two recent acquisitions were Affinity Sports in fiscal year
2014 and Summit Ski Ltd. in fiscal year 2015. Other investments include upgrades and
improvements to facilities such as restaurants and lodges. Management has expressed continuous
growth in these areas in the foreseeable future.
Financial Risk to Target Price
Systemic Risks:
Rise in Employment Expenses: Operating Risk 1
As the majority of Whistler Blackcomb’s employees are seasonal, fulfilling the required
employment requirements for the company's operations is, and will continue to be, a large
challenge. In addition, employment wages and benefits costs continue to rise in the B.C. wage
market as demand and coverage costs continue to increase. Therefore, we see employment costs as
one of the major risks to the company's gross margin.
Insurance Claims: Legal Risk 1
As is inherent in any company involved in recreational activities, large safety issues revolve around
WB’s skiing, biking and other outdoor operations. Dotted moments in the company's history have
illustrated the negative impact of major injuries and casualties, which include negative press and
lawsuits.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Figure 27: ROA - ROE Comparison
ROA ROE
Figure 30: Risk Matrix
0.6
0.65
0.7
0.75
0.8
0.85
Figure 28: Capital Structure
Figure 29: Crankworks Festival 2015
Source: Bloggersclub.com

10
Discontinuation of Land Contract: Operating Risk 3
Whistler Blackcomb Holdings Inc.’s tenure on the Crown Land of both Whistler Mountain and
Blackcomb Mountain is currently set to last until September 30, 2032. Extension of this tenure is
subject to agreements with the Province of British Columbia, which could become increasingly
problematic pending the conditions of the company's operations on the mountain, as well as, the
political environment present in the province at the time. Disbandment of the agreement before the
contract's expiration, or discontinuation afterwards would render the company's operations on the
mountain inoperable and likely lead to liquidation.
Environmental Regulations: Legal Risk 2
As the company operates on 8,000 acres of crown land, it is subject to a large array of
environmental regulations including emissions, water discharges and waste management. Violation
of these regulations could result in significant fines and lawsuits, which in the extreme case could
lead to the termination of WB’s tenure on the land as aforementioned in the previous paragraph.
Unsystematic Risks:
Increase in Competition: Market Risk 1
While the Mountain Resort and Services Industry is extremely capital intensive and not ubiquitous
in nature, increased competition is a likely scenario for WB in it’s regional market. On January 29,
2016, the B.C. government approved an environmental assessment on a proposed plan to build a
world-class all-season ski resort near Squamish, approximiatley 30 minutes closer to Vancouver
than Whistler. While the project still lacks full consent, we feel that based on current momentum it
is likely the project will be accepted which we expect will severely dampen Whistler Blackcomb’s
ability to attract visitors.
Regional Economic Downturn (B.C. & Washington State): Market Risk 2
Half of the company's revenues are dependant on regional visitors who travel from the Greater
Vancouver Area and Washington State. Decreases in disposable incomes caused by economic
downturns in these regions will deter the populus from traveling to Whistler and paying the
premium prices the company demands.
Rise in Interest Rates: Market Risk 3
Whistler Blackcomb, like most Canadian corporations, is enjoying low costs of debt with low
interest rates. A sudden and dramatic increase in the costs of debt for highly levered companies like
WB could severely increase it’s cost of capital and could hinder the company's ability to finance
existing projects while maintaining dividend payouts (Figure 31).
Unfavourable Ski Seasons (Global Warming): Weather Risk 1
As 80% of the company's revenues are obtained from Winter operations, a weak snowfall year
would have a strong negative impact on the company's revenues. Global warming has created a
serious threat to the ski industry as a whole in increasing the volatility of weather conditions (Figure
32), and Whistler Blackcomb is by no means immune to it. Although WB and our team were unable
to find a significant statistical relationship between skier visitation and snowfall, we strongly
believe that the unfavourable winter conditions create a lasting, negative experience to visiting
customers which is very likely to decrease destinational customer return visits.
Canadian Currency Appreciation (Against Major International Currencies): Market Risk 3
A major spearhead in the reasoning for large expected growth in destination visitors is the
devaluation of the Canadian Dollar against other major international currencies. Sharp increases in
the CAD can be expected to result in a strong slowdown in revenue streams that depend largely on
destination visitor growth such as retail and snow schooling. Additionally, a strong decrease in the
USD will deter Whistler Blackcomb’s potential customers to it’s competitors in the United States,
such as, Vail Resorts and Intrawest Resorts.
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
Anomaly(°c)
Figure 32: Global Land and Ocean
Temperature Anomalies
Source: National Climate Data Center
16,500
17,000
17,500
18,000
18,500
19,000
19,500
20,000
20,500
21,000
Visits(,000's)
Figure 33: Canada Skier Visits
Source: National Ski Association: Kottke Report &
CanadianSki Council
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
2011 2012 2013 2014 2015
Figure 31: WB Historical Interest
Rates
Interest Rate After Tax Interest Rate

11
Appendices
Appendix A: Projected Financial Statements
Income Statement
Year Ended September 30
Ex Post Ex Ante
($ in Thousands) CAD 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Resort Revenue:
Lift 110,500 121,093 123,289 128,098 127,066 135,961 138,680 141,453 144,282 147,168
Retail and Rentals 34,708 39,747 40,332 46,894 54,480 62,107 65,213 68,473 71,897 75,492
Snow School 20,433 24,899 25,536 27,755 29,595 31,963 33,880 34,897 35,595 36,307
Food and Beverage 26,631 29,815 30,155 30,944 30,178 32,894 33,552 34,223 34,907 35,606
Other Resort Revenue 19,793 20,818 21,468 20,826 20,935 21,040 21,145 21,251 21,357 21,464
Total Revenue 212,065 236,372 240,780 254,517 262,254 283,964 292,470 300,297 308,038 316,036
Operating Expenses:
Operating Labour and
Benefits
52,809 59,089 61,092 64,659 67,873 73,303 77,701 82,363 87,305 92,543
Retail, Rental, and food
services cost of sales
22,955 26,409 26,756 28,823 31,747 35,557 37,334 39,201 41,161 43,219
Property Taxes, Utilities,
Rent and Insurance
16,262 18,682 18,956 19,327 20,280 21,294 22,359 23,477 24,650 25,883
Supplies, Maintenance, and
Other
17,433 20,045 19,869 21,272 20,222 20,424 20,628 20,835 21,043 21,254
Total Operating Expenses 109,459 124,225 126,673 134,081 140,122 150,578 158,023 165,876 174,160 182,899
Depreciation and
Amortization
38,969 38,803 40,249 41,254 42,168 43,011 43,872 44,749 45,644 46,557
Selling, General, and
Administrative
20,527 26,938 27,673 27,761 29,174 37,926 34,134 35,840 36,915 37,654
Acquisition-Related Costs 1,070
Total Expenses 170,025 189,966 194,595 203,096 211,464 231,515 236,028 246,465 256,719 267,110
Earnings from Operations 42,040 46,406 46,185 51,421 50,790 52,449 56,442 53,832 51,319 48,926
Disposal Gains (Losses) 56 (26) (1,257) (2,143) (1,119) (1,141) (1,164) (1,187) (1,211) (1,235)
Other Icome and Expenses:
Insurance Recoveries 3,068 329
Non-Capital Expenditures (1,637) (130)
Finance Income (Expense) -
Excluding Interest Expense
508 714 (455) (8,546) (4,259) (2,130) (2,151) (2,172) (2,194) (2,216)
Finance Expense - Limited
Partner's Interest
(7,500) (7,600) (8,340) (8,581) (8,880) (9,190) (9,511) (9,843) (10,187)
Earnings Before Interest
and Tax
42,604 39,594 36,873 33,823 37,030 40,298 43,936 40,961 38,071 35,288
Finance Expense - Interest
Expense
16,208 18,172 16,295 10,046 7,696 6,926 6,580 6,251 6,126 6,004
Net Earnings Before
Income Tax
26,396 21,422 20,578 23,777 29,334 33,371 37,356 34,710 31,945 29,284
Income Tax Expense 5,704 5,560 7,248 5,737 8,049 9,157 10,250 9,524 8,765 8,035
Net Earnings and
Comprehensive Income
20,692 15,862 13,330 18,040 21,285 24,214 27,106 25,186 23,179 21,249
Earning Attributable to
Whistler Blackcomb
Holdings Inc.
13,161 15,676 14,101 17,891 20,375

12
Income Statement Ex Post Ex Ante
Common Size 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Resort Revenue:
Lift 52.1% 51.2% 51.2% 50.3% 48.5% 51.8% 52.9% 53.9% 55.0% 56.1%
Retail and Rentals 16.4% 16.8% 16.8% 18.4% 20.8% 23.7% 24.9% 26.1% 27.4% 28.8%
Snow School 9.6% 10.5% 10.6% 10.9% 11.3% 12.2% 12.9% 13.3% 13.6% 13.8%
Food and Beverage 12.6% 12.6% 12.5% 12.2% 11.5% 12.5% 12.8% 13.0% 13.3% 13.6%
Other Resort Revenue 9.3% 8.8% 8.9% 8.2% 8.0% 8.0% 8.1% 8.1% 8.1% 8.2%
Total Revenue 100.0% 100.0% 100% 100% 100% 100% 100% 100% 100% 100%
Operating Expenses:
Operating Labour and
Benefits
31.1% 31.1% 31.4% 31.8% 32.1% 34.7% 36.7% 38.9% 41.3% 43.8%
Retail, Rental, and food
services cost of sales
13.5% 13.9% 13.7% 14.2% 15.0% 16.8% 17.7% 18.5% 19.5% 20.4%
Property Taxes, Utilities,
Rent and Insurance
9.6% 9.8% 9.7% 9.5% 9.6% 10.1% 10.6% 11.1% 11.7% 12.2%
Supplies, Maintenance, and
Other
10.3% 10.6% 10.2% 10.5% 9.6% 9.7% 9.8% 9.9% 10.0% 10.1%
Depreciation and
Amortization
22.9% 20.4% 20.7% 20.3% 19.9% 20.3% 20.7% 21.2% 21.6% 22.0%
Selling, General, and
Administrative
12.1% 14.2% 14.2% 13.7% 13.8% 17.9% 16.1% 16.9% 17.5% 17.8%
Acquisition-Related Costs 0.6%
Total Expenses 80.2% 80.4% 80.8% 79.8% 80.6% 81.5% 80.7% 82.1% 83.3% 84.5%
Earnings from Operations 19.8% 19.6% 19.2% 20.2% 19.4% 18.5% 19.3% 17.9% 16.7% 15.5%
Disposal Gains (Losses) 0.03% -0.01% -0.5% -0.8% -0.4% -0.4% -0.4% -0.5% -0.5% -0.5%
Other Icome and Expenses:
Insurance Recoveries 1.2%
Non-Capital Expenditures -0.6%
Finance Income (Expense) -
Excluding Interest Expense
0.2% 0.3% -0.2% -3.4% -1.6% -0.8% -0.8% -0.8% -0.8% -0.8%
Finance Expense - Limited
Partner's Interest
-3.2% -3.2% -3.3% -3.3% -3.4% -3.5% -3.6% -3.8% -3.9%
Earnings Before Interest
and Tax
20.1% 16.8% 15.3% 13.3% 14.1% 14.2% 15.0% 13.6% 12.4% 11.2%
Finance Expense - Interest
Expense
7.6% 7.7% 6.8% 3.9% 2.9% 2.4% 2.2% 2.1% 2.0% 1.9%
Net Earnings Before
Income Tax
12.4% 9.1% 8.5% 9.3% 11.2% 11.8% 12.8% 11.6% 10.4% 9.3%
Income Tax Expense 2.7% 2.4% 3.0% 2.3% 3.1% 3.2% 3.5% 3.2% 2.8% 2.5%
Net Earnings and
9.8% 6.7% 5.5% 7.1% 8.1% 8.5% 9.3% 8.4% 7.5% 6.7%

13
Balance Sheet
Ex Post Ex Ante
Assets
Current Assets:
Cash and Cash Equivalents 30,023 43,634 41,353 8,410 5,682 6,362 6,829 8,004 10,844 9,806
Accounts Receivable 3,204 3,481 3,323 4,496 3,783 4,161 4,369 4,457 4,546 4,637
Income Taxes Receivable 240 210 231 233 229 233 229
Inventory 13,314 13,788 15,856 18,633 22,590 24,849 26,091 26,874 27,680 28,511
Prepaid Expenses 3,922 3,104 2,727 3,985 4,215 4,637 4,776 4,919 5,066 5,218
Notes Receivable 296 303 311 145 153 151 150 148 147 146
Total Current Assets 50,759 64,550 63,570 35,669 36,633 40,391 42,449 44,631 48,517 48,546
Non-Current Assets
Notes Receivable 2,946 2,792 2,636 777 624 593 563 535 508 483
Property, Plant, and
Equipment
343,108 328,414 322,316 319,897 315,312 301,626 301,894 292,556 275,286 260,640
Intangible Assets 337,933 324,028 311,428 300,778 290,009 281,309 270,056 259,254 248,884 238,929
Goodwill 135,574 135,574 137,259 137,354 142,343 142,699 143,056 143,413 145,959 149,995
Property Held for
Development
9,244 9,244 9,244 9,244 9,244 9,244 9,244 9,244 9,244 9,244
Non-Current Assets 828,805 800,052 782,883 768,050 757,532 735,470 724,813 705,003 679,881 659,291
Total Assets 879,564 864,602 846,453 803,719 794,165 775,862 767,262 749,633 728,398 707,837
Liabilities and
Shareholders' Equity
Current Liabilities:
Accounts Payable and
Accrued Liabilities
20,642 24,060 24,927 25,715 28,793 31,672 33,256 33,921 34,599 35,291
Income Taxes Payable 603 153 1,645 2,403 - - - - -
Provisions 2,710 2,903 2,858 2,139 1,701 1,531 1,454 1,425 1,397 1,369
Deferred Revenue 18,804 20,718 22,347 27,610 27,974 30,771 32,310 32,956 33,615 34,288
Total Current Liabilities 42,759 47,834 51,777 57,867 58,468 63,975 67,020 68,302 69,612 70,948
Other Liabilities 3,691 3,691 3,691 3,691 3,691
Long-Term Debt 255,812 256,800 258,042 229,855 232,436 222,436 217,436 212,436 207,436 202,436
Deferred Income Tax
Liability
10,225 15,489 20,690 21,974 26,089 28,698 33,107 34,346 27,092 24,648
Limited Partner's Interest 72,796 72,796 72,796 72,796 72,796 72,796 72,796 72,796 72,796
Total Liabilities 308,796 392,919 403,305 382,492 393,480 391,596 394,050 391,571 380,627 370,828
Equity
Common Shares 440,994 441,476 442,080 442,879 443,290 443,955 444,621 445,288 445,956 446,625
Additional Paid-In Capital 654 721 913 919 1,485 1,728 1,901 1,996 2,096 2,200
Retained Earnings (Deficit) (10,613) (31,887) (54,781) (73,949) (90,666) (104,266) (111,565) (122,721) (128,857) (135,300)
Total WBHI
431,035 410,310 388,212 369,849 354,109 341,417 334,957 324,563 319,194 313,525
Limited Partner's Non-
Controlling Interest
139,733 61,373 54,936 51,378 46,576 42,850 38,255 33,499 28,578 23,484
Total Shareholders' Equity 570,768 471,683 443,148 421,227 400,685 384,267 373,212 358,062 347,772 337,010
Total Liabilities and
879,564 864,602 846,453 803,719 794,165 775,862 767,262 749,633 728,398 707,837

14
Balance Sheet Ex Post Ex Ante
Common Size 2011 2012 2013 2014 2015 2016F 2017F 2018F 2019F 2020F
Assets
Current Assets:
Cash and Cash
Equivalents
59.1% 67.6% 65.1% 23.6% 15.5% 15.8% 16.1% 17.9% 22.4% 20.2%
Accounts Receivable 6.3% 5.4% 5.2% 12.6% 10.3% 10.3% 10.3% 10.0% 9.4% 9.6%
Income Taxes
Receivable
0.4% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5%
Inventory 26.2% 21.4% 24.9% 52.2% 61.7% 61.5% 61.5% 60.2% 57.1% 58.7%
Prepaid Expenses 7.7% 4.8% 4.3% 11.2% 11.5% 11.5% 11.3% 11.0% 10.4% 10.7%
Notes Receivable 0.6% 0.5% 0.5% 0.4% 0.4% 0.4% 0.4% 0.3% 0.3% 0.3%
Total Current Assets 5.8% 7.5% 7.5% 4.4% 4.6% 5.2% 5.5% 6.0% 6.7% 6.9%
Non-Current Assets
Notes Receivable 0.4% 0.3% 0.3% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Property, Plant, and
Equipment
41.4% 41.0% 41.2% 41.7% 41.6% 41.0% 41.7% 41.5% 40.5% 39.5%
Intangible Assets 40.8% 40.5% 39.8% 39.2% 38.3% 38.2% 37.3% 36.8% 36.6% 36.2%
Goodwill 16.4% 16.9% 17.5% 17.9% 18.8% 19.4% 19.7% 20.3% 21.5% 22.8%
Property Held for
Development
1.1% 1.2% 1.2% 1.2% 1.2% 1.3% 1.3% 1.3% 1.4% 1.4%
Non-Current Assets 94.2% 92.5% 92.5% 95.6% 95.4% 94.8% 94.5% 94.0% 93.3% 93.1%
Total Assets 100.0% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Liabilities and
Current Liabilities:
Accounts Payable and
Accrued Liabilities
48.3% 50.3% 48.1% 44.4% 49.2% 49.5% 49.6% 49.7% 49.7% 49.7%
Income Taxes Payable 1.4% 0.3% 3.2% 4.2%
Provisions 6.3% 6.1% 5.5% 3.7% 2.9% 2.4% 2.2% 2.1% 2.0% 1.9%
Deferred Revenue 44.0% 43.3% 43.2% 47.7% 47.8% 48.1% 48.2% 48.3% 48.3% 48.3%
Total Current
Liabilities
13.8% 14.9% 12.8% 15.1% 14.9% 16.3% 17.0% 17.4% 18.3% 19.1%
Long-Term Debt 82.8% 80.2% 64.0% 60.1% 59.1% 56.8% 55.2% 54.3% 54.5% 54.6%
Deferred Income Tax
Liability
3.3% 4.8% 5.1% 5.7% 6.6% 7.3% 8.4% 8.8% 7.1% 6.6%
Limited Partner's
Interest
18.0% 19.0% 18.5% 18.6% 18.5% 18.6% 19.1% 19.6%
Total Liabilities 35.1% 37.1% 47.6% 47.6% 49.5% 50.5% 51.4% 52.2% 52.3% 52.4%
Equity
Common Shares 77.3% 81.1% 99.8% 105.1% 110.6% 115.5% 119.1% 124.4% 128.2% 132.5%
Additional Paid-In
Capital
0.1% 0.1% 0.2% 0.2% 0.4% 0.4% 0.5% 0.6% 0.6% 0.7%
Retained Earnings
(Deficit)
-1.9% -5.9% -12.4% -17.6% -22.6% -27.1% -29.9% -34.3% -37.1% -40.1%
Total WBHI
Shareholder's Equity
75.5% 87.0% 87.6% 87.8% 88.4% 88.8% 89.7% 90.6% 91.8% 93.0%
Limited Partner's Non-
Controlling Interest
24.5% 24.6% 12.4% 12.2% 11.6% 11.2% 10.3% 9.4% 8.2% 7.0%
Total Shareholder's
Equity
64.9% 63.0% 52.4% 52.4% 50.5% 49.5% 48.6% 47.8% 47.7% 47.6%
Total Liabilities and
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

15
Cash Flow Statement
Ex Post Ex Ante
Operations
Net Earnings and
20,692 15862 13330 18040 21285 24214 27106 25186 23179 21249
Adjustments for:
Income Tax Expense 4709 5560 7248 5737 8,049 9,157 10,250 9,524 8,765 8,035
Interest Expense on LT
Debt
1181 18172 16750 18592 11,955 9,056 8,731 8,423 8,320 8,219
Finance Expense on LP
Interest
7500 7600 8340 8,581 8,880 9,190 9,511 9,843 10,187
Depreciation and
Amortization
38969 38803 40249 41254 42,168 43,011 43,872 44,749 45,644 46,557
Disposal Losses (56) 26 1257 2143 1,119 1,141 1,164 1,187 1,211 1,235
Share-Based
Compensation
954 549 796 805 933 933 933 933 933 933
Interest Paid on LT Debt (16,425) (16,065) (9,652) (8,688) (6,926) (6,580) (6,251) (6,126) (6,004)
Prepayment Penalty (5,500)
Finance Expense Paid on
Limited Partner's Interest
(7,500) (7,600) (6,025) (8,653) (8,880) (9,190) (9,511) (9,843) (10,187)
Income Taxes Paid (786) (546) (3,695) (6,699) (7,621) (8,531) (7,927) (7,295) (6,688)
Changes in Non-Cash
Operating Working Capital
(7,804) 4902 1706 (2,191) (397) 2,448 1,456 269 266 263
Net Cash from Operating
Activities
58645 66663 64725 67848 69,653 75,413 78,401 76,094 74,898 73,801
Investing
Expenditures on PPE and
Intangibles
(7,217) (10,617) (24,656) (30,650) (32,086) (22,568) (31,030) (28,209) (25,389) (28,209)
Proceeds from Sale of
Property and Equipment
387 163 227 201 205 209 213 218 222
Repayment of Notes
Receivable
191 147 148 2025 145 31 30 28 27 25
Business Acquisition, Net
of Cash Acquired
(451,007)
Net Cash from Investing
Activities
(458,033) (10,083) (24,345) (28,398) (31,740) (22,331) (30,792) (27,968) (25,144) (27,962)
Financing
Dividends Paid on Common
Shares
(23,774) (36,950) (36,995) (37,059) (37,092) (37,148) (37,203) (37,259) (37,315) (37,371)
Distributions to Limited
Partner's NCI
(72,898) (5,750) (5,666) (3,707) (5,711) (5,254) (4,939) (4,692) (4,598) (4,506)
Repayment of LT Debt (318,000) (38,610) (10,000) (5,000) (5,000) (5,000) (5,000)
Draws on Revolving Credit
Facility
289000 41,110
Debt Issuance Costs (6,369) (269) (2,627) (382)
Proceeds on Issuance of
Common Shares
300000 44
Share Issuance Costs (17,887)
Due to Partner (10,661)
Proceeds on Issuance of LT
Debt
261,000
Net Cash from Financing
Activities
429,411 (42,969) (42,661) (72,393) (40,641) (52,402) (47,142) (46,951) (46,913) (46,877)
Opening Balance 30023 43634 41353 8,410 5,682 6,362 6,829 8,004 10,844
Closing Balance 30,023 43634 41353 8410 5,682 6,362 6,829 8,004 10,844 9,806
Net Change in Cash 30023 13611 (2,281) (32,943) (2,728) 680 467 1,175 2,841 (1,038)

16
Appendix B: Executive Management
The executive management profiles for WB are summed up as follows:
Name Title Responsibilities
Dave
Brownlie
President &
CEO
● Responsible for overseeing the strategic vision of the Corporation and the day-to-day management
and operations of Whistler Blackcomb. Joined the corporation in 1989.
Jeremy
Black
Senior VP &
CFO
● Leads Whistler Blackcomb’s finance, investor relations, information technology and lodging
operations. Joined the corporation in 2013.
Stuart
Rempel
Senior VP,
Marketing &
Sales
● Responsible for the development, implementation and delivery of Whistler Blackcomb’s strategic
marketing and sales programs. His executive leadership role includes overseeing the Whistler
Blackcomb Guest Services Division, Whistler Heli Skiing Operations, Marketing and Sales Division,
andCentral Reservations. Joined the corporation in 2000.
Source: Company Website
Appendix C: Board of Directors
The Board of Directors for WB are summed up as follows:
Name Career Highlights
Graham Savage Lead independent director.
● Retired as Chairman and Founding Partner of Callisto Capital.
● Senior officer at Rogers Communications Inc. for 21 years. CFO from 1989 to 1996.
● Currently a director of Canadian Tire Corp., Canadian Tire Bank, Cott Corporation and Postmedia Network Inc.
Dave Brownlie ● See Management Appendix
John Furlong
● CEO of VANOC and led the team that organized and delivered the Olympic Winter Games. President and Chief
Operating Officer for the Vancouver 2010 Olympic Bid Committee.
● Long-time member of the Canadian Olympic Committee, led many high profile sports organizations in Canada,
including Sport BC, the BC Summer and Winter Games and the Northern BC Winter Games.
Russell
Goodman
Chairs the audit and compensation committees.
● Board of director at Gildan Activewear & Forth Ports Limited;he is also a member of the audit and governance
committees.
● Member of the Investment Review Committee of Investors Group Inc.
● Former partner of PricewaterhouseCoopers LLP in Canada (“PwC Canada”)
Scott
Hutcheson
● Chairman & CEO of Aspen Properties Ltd.
● Served as President of a real estate partnership in Florida that included a major university endowment fund.
● Previous investment banker for Goldman, Sachs & Co. in New York and San Francisco.
● Skied on the Canadian National Alpine Ski Team from 1978 to 1982 and competed in the World Cup and the
World Championships for Canada.
Eric Resnick ● Managing Director of KSL Capital. CFO & Treasurer since January 2001.
● Serves on the Board of Directors of KSL Resorts, ClubCorp, Western Athletic Clubs, Squaw Valley, Orion
Expeditions, The United States Ski Team Foundation, Rocketship, The Denver Museum of Nature and Science, and
The Vail Valley Foundation.
Peter
McDermott ● Partner at KSL Capital since July 2003, serving as Director of Acquisitions and Corporate Finance at KSL
Recreation through April 2004. He served in the same position at KSL Resorts following the sale of KSL Recreation.
● Investment Banking Analyst at Alex. Brown & Sons from 1997 to 1999, an Associate at J.H. Whitney & Co. from
1999 to 2001.
Michelle
Romanow
.
● Senior marketing executive with Snap by Groupon and the co-founder of Buytopia.ca and SnapSaves.
● Former Director, Corporate Strategy & Business Improvement for Sears Canada.
● Also a Director of SHAD, a registered Canadian charity that empowers exceptional high school students.
Source: Company Website
Appendix D: Cash Bonuses and Total Compensation
The follow are cash bonus incentives for management performance.
Name Actual Cash Bonus Percentage of Base Salary Total Compensation
Dave Brownlie $263,002 57.9% $1,093,172
Jeremy Black $115,739 36.6% $608,028
Stuart Rempel $79,205 34.7% $402,712
Robert Dufour $48,470 26.5% $325,723
Robert McSkimming $55,478 30.8% $329,589

17
Appendix E: The Audit Committee
The audit committee consists of four Directors including Graham Savage, Russell Goodman, Scott Hutcheson, and Peter McDermott. Each director
is independent, financially literate and knowledgeable in the accounting principles used to prepare financial statements. The committee is
responsible for reviewing and/or investigating the financial statements prepared by Whistler Blackcomb, as well as, any public disclosure
documents containing financial information. They will also monitor the integrity of reporting, disclosures, and internal controls WB has
established. The committee has been given full authority to do what they deem necessary in order to fulfill their duties.
Appendix F: Corporate Structure
Source: Annual Information Forms
Incorporated Oct 4, 2010
As previous mentioned, Whistler Blackcomb and Nippon Cable are in a partnership agreement. The partnership agreement states WB distribute
75% to Whistler Blackcomb Holding Inc. (WBHI) and 25% to Nippon Cable, the non-controlling interest partner. The primary purpose of WBHI
is to fund public company expenses, income taxes on it’s share of the partnership, and distribute dividends payable to common shareholders.
WBHI also receives earnings and losses for other subsidiaries.
Nippon Cable owns all of WB Class A Shares. Class B shares are owned by individual and institutional investors;no individual owns more than
10% of the outstanding shares. The share structure can be described as pictured below:
23.90%
11.79%
9.93%
5.70%3.57%
45.1%
Class B Sharehold Structure
KSL Advisors, LLC
Manulife Asset Management
CI Investments Inc.
1832 Asset Management L.P.
Baron Capital Group, Inc.
OtherSource: QTrade Investor

18
Appendix G: Corporate Governence
Discosure and Transparancy: 1- Insignificant threat to shareholders: Whistler Blackcomb provides annual and quarterly financial reports
outlining the current health of the business. The reports are in accordance with International Financial Reporting Standards (IFRS) and audited in
accordance with Canadian Generally Accepted Accounting Principles (GAAP). Such reports are available to the public on a quarterly basis, which
ensures the transparency of WB.
Executive Management: 1- Insignificant threat to shareholders:Whistler Blackcomb’s executive management does not pose a significant threat
to shareholders due the experience level of each person and the effectiveness they’ve had in leading WB towards continued success.
Board of Directors: 2 - Low threat to shareholders: The Board of Directors consists of 8 members, 7 of which are independent. A high level of
outside directors allows the Board to remain objective and act solely in the interest of maximizing shareholder value; therefore, posing little threat.
Rights and obligations of shareholders: 3- Moderate threat to shareholders: Whistler Blackcomb has implemented the majority vote policy
in relation to electing/terminating members of the Board. A registered shareholder is entitled to one vote per share and may vote in person or via
proxy. KSL Capital Partners is the only entity that holds more than 10% of voting shares. Based off these findings, we feel that the rights and
oligations poses a moderate threat to shareholders.
Takeover defence: 2- Low threat to shareholders: We believe there to be a low level of threat in regards to a hostile takeover. Whistler
Blackcomb has a liquidation value of $400.685M and the cost to purchse all outstanding shares would be in excess of $761.04M at $20 share,
making it a costly venture to pursue. In addition, the competence of the Board of Directors and the executive management team makes WB an
unlikely target, as well as, their means to issue more shares in the likelihood of a hostile bid. Canadian legislation also requires disclosure on the
purchase of shares exceeding 10% in a given day, which would allow Whistler Blackcomb ample time to strategize.
Total Score: 1.8 – Insignificant – Low threat to shareholders, good corporate governance.
Appendix H: Chi-Square Testing for Skier and Snowfall Relationship
Hypotheses
Ho: No relationship between skier visits and annual snowfall at Whistler Blackcomb
Ha: Relationship exists between skier visits and annual snowfall at Whistler Blackcomb
Decision Rule: If significance level is less than or equal to 0.1, reject Ho. If significance level is greater than 0.1, do not reject Ho.
Result: Significance level of Chi-Squared Test is 0.234 > 0.1 or equal to alpha; therefore, we cannot reject Ho at this time. We can conclude there
is no relationship exists between snowfall and skier visitation at this time.
0
1
2
3
Disclosure and Transparency
Executive Management
Board of Directors
Rights and Obligations of
Shareholders
Takeover Defense

19
Appendix I: Regression of BC Tourism GDP against Canadian GDP
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.953167
R Square 0.908528
Adjusted R
Square 0.895461
Standard Error 0.258027
Observations 9
ANOVA
df SS MS F
Significance
F
Regression 1 4.628926 4.628926 69.52631 6.99E-05
Residual 7 0.466046 0.066578
Total 8 5.094972
Coefficients
Standard
Error t Stat P-value Lower 95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 4.926306 0.944082 5.218091 0.001228 2.693906 7.158705 2.693906 7.158705
Canada GDP 0.004756 0.00057 8.338244 6.99E-05 0.003407 0.006105 0.003407 0.006105
Appendix J: Macroeconomic Projections GDP and EBITDA
Seasonality and economic growth are major contributing factors to EBITDA of Whistler Blackcomb. If the Bank of Canada’s estimations prove
accurate, we can expect to see continued growth of EBITDA.
Source: Bank of Canada
Appendix K: Marketing
Whistler Blackcomb Holdings Inc. has partnered with multiple companies for the purpose of marketing Whister Blackcomb. These include,
Tourism Whistler, Whistler.com, Four Seasons, Fairmont, the Westin, Pan Pacific, and Hilton. Dave Brownlieand Stuart Rempel sit on the Board
of Directors for Tourism Whistler, which is the biggest marketing partner for WB.
The main objectives of Whistler Blackcomb’s marketing techniques and partnerships are to:
● increase awareness and market share among North American, European, Asian and Australian ski and mountain resort visitors
● build demand for visits to WB during peak and non-peak periods
● increase customer loyalty and repeat visitation
● expand the summer and non-ski businesses of WB
● increase total share of visitor spending

20
Appendix L: Porter’s Five Forces
Threat of new entrants: 3 - Moderate Threat to the business: While the ski resort industry has high barriers of entry, including attrative
mountain location, cost, customer base and regulations to develop a ski resort, as of January 29, 2016, the B.C. government has given environmental
approval to open up an all-season ski resort on Mount Garibaldi, roughly 30km from Whistler, B.C., and 30km closer to Vancouver. However,
there are 40 legally binding conditions that must be executed before construction can occur
Threat of substitutes: 1- Insignificant threat to the business: At this time there is an insignificant level of threat of substitution for Whistler
Blackcomb. WB is known world-wide and and has attracted repeat and loyal guests who return year-after-year.
Bargaining power of customers: 4- Significant threat to the business: In spite of WB’s ETP increasing year-to-year and their ability to continue
to attract visitation, we do feel that the bargaining power of customers poses a significant threat to Whistler Blackcomb. The reason being is that
WB has one of the highest lift ticket prices and with the Canadian dollar depreciating, regional guests may seek other, less expensive resorts.
Bargaining power of suppliers: 2- Low threat to the business: Supplier power is of little threat to Whistler Blackcomb. Nippon Cable, WB’s
Limited Partner, is the Company’s largest supplier. As for the remaining suppliers, Whistler Blackcomb is a leading resort; therefore, they are able
to enter into contracts with competitive pricing.
Competitive Rivalry within the industry: 3- Moderate threat to the business: The ski resort industry is highly competitive; however, we have
estimated a moderate threat due to the premium product Whistler Blackcomb offers, as well as, their ability to sustain a positive EBITDA during
off-season.
Total Score: 2.6 – Low to moderate threat to shareholders, good business model.
Appendix M: Competitive Advantage
0
1
2
3
4
Threat of New
Entrants
Threat of
Substitutes
Bargaining Power
of Customers
Bargaining Power
of Suppliers
Competitive
Rivalry within the
Industry
Porter's Five Forces

21
Appendix N: Beta Calculation
Beta
WB MTN SNOW SKIS
Weekly T-Bill 0.225 0.353 0.864 0.324
Daily T-Bill 0.102
Yahoo Finance -0.067 0.490 N/A N/A
Sector 0.650
Industry 1.170
*used $CAD T-bill for WB and USD T-bill for others
*used S&P500 for all stocks
To calculate Beta for Whistler Blackcomb we used the S&P500TSX index as a benchmark and a 1 Month Canadian Treasury Bill. Weekly excess
returns were calculated and then regressed, with WB being the dependant variable. Returns were taken from February 13, 2012-December 31,
2015. The slope (Beta) equated to a value of 0.225, with the value being statistically significant (critical value=0.1). However, the adjusted R-
Squared had a value of 0.003. With a low model fit, we also regressed daily excess returns for WB. This value was statistically significant and had
a slope of 0.102. Similar to monthly returns, the adjusted R-Squared value was 0.003. Similar results were also found using a Canadian 5 Year
Bond. This led us to conclude our beta calculations were not a statically reliable source. It is also important to note on January 22, 2016, Yahoo
Finance WB beta was -.067. We therefore concluded all conventional models used to calculate cost of equity were nullified (CAPM, Market
Model, Jensen). For example, when using the CAPM with a beta of 0.225, the cost of equity was 2.42%, therefore produced a WACC of 2.43%.
This value is considerably less compared to WB stated WACC of 8-8.5%, which was confirmed by the CFO.
To further test our beta calculations we also benchmarked WB against its competitors. WB biggest rival, Vail Resorts (MTN) had a beta of 0.353.
For this calculation we regressed the weekly excess returns against a US 1 Month Treasury Bill, since MTN is US based. To compare against WB
we took the returns since February 13th, 2012-December 31st, 2015. The slope was statistically significant, however the adjusted R-Squared was
0.03. Similar adjusted R-Squared results were also produced for SNOW and SKIS. Reuters Canada, reported an beta sector average of 0.65 industry
average of 1.170.
Appendix O: Constant Growth Dividend Discount Model
Whistler Blackcomb has shown consistent payment of dividends since 2012. In 2015, WB paid $0.975 dividends per share, therefore produced a
dividend yield of 3.91% on December 31, 2015. Our team, and CFO of WB, Jeremy Black believes dividends will continue to remain constant in
the future. Therefore, we believe our Constant Growth Dividend Discount Model is reliable moving forward.
Using a cost of equity value of 10.44% and stable growth rate of 0.25%, we calculated an intrinsic value of $13.31 using the CGDDM method.
WB currently dividend payout ratio is at 175%, therefore a plowback ratio of -75%. These values are reflected in WB increasing negative retained
earnings account. Since 2012, WB R/E has negatively decreased by 82% on average. This value is also supported by the fact WB current ROE is
less than the cost of equity value. Therefore, to increase equity value there is incentive to payout earnings as dividends. This supports our hold
recommendation.
$0.960
$0.965
$0.970
$0.975
$0.980
$0.985
$0.990
$0.995
$1.000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Dividends Per Share

22
Appendix P: Competitive Positioning Between Public Competitors
Appendix Q: Sensitivity Analysis
Cost of Equity Δ in Rate DCF Price Δ in Price Recommendation
8.35% -20.00% 30.55$ 40.04% BUY
9.396% -10.00% 25.44$ 16.60% BUY
10.440% 0.00% 21.81$ 0.00% BUY
11.48% 10.00% 19.12$ -12.37% BUY
12.53% 20.00% 17.03$ -21.93% SELL
Terminal Growth Δ in Rate DCF Price Δ in Price Recommendation
2.60% -20.00% 20.54$ -5.83% BUY
2.925% -10.00% 21.15$ -3.04% BUY
3.250% 0.00% 21.81$ 0.00% BUY
3.58% 10.00% 22.54$ 3.33% BUY
3.90% 20.00% 23.34$ 6.99% BUY

23
Appendix R: Monte Carlo
The Monte Carlo
consisted of
variability in
each of the main
inputs in the
discounted cash
flow model as
listed to the left.
While traditional
Monte Carlo
simulations on a
discounted cash flow model would inherint each
variables risk from its historical movement, the limited
history range of the company’s financials and abnormally
low volatility left our team to believe that this method
would be an unrealistic measurement of future
fluctuations in the price. Therefore, in order to provide a
reasonable range of price distributions, our team created
“worst case” and “best case” scenarios for each variable
based both on their historical volatility and potential
movements by management and the market. Our team
felt that this provides a more systemic, comprehensive
volatility insight compared to the traditional sensitivity
and scenario analysis as it adds the extra dimension of
probability to the model.
In order to create more accurate data distributions using
a “best-case, worst-case” or “low and max”, we utilized
beta distributuons in order to ensure that the probability
for the lowest and highest values were the same when the
ranges between them and the mean were not symmetric.
This allowed the monte carlo model to follow our
assumptions more accurately when we believed, for
example, that a variable was currently at the high range
of where it will be in the future.

24
Appendix S: Locations of Key Public Comptetitors

25
Disclosures:
Ownership and material conflicts of interest:
The author(s), or a member of their household, of this report does not hold a financial interest in the securities of this company.
The author(s), or a member of their household, of this report does not know of the existence of any conflicts of interest that might bias the content or publication of
this report.
Receipt of compensation:
Compensation of the author(s) of this report is not based on investment banking revenue.
Position as a officer or director:
The author(s), or a member of their household, does not serve as an officer, director or advisory board member of the subject company.
Market making:
The author(s) does not act as a market maker in the subject company’s securities.
Ratings guide:
Banks rate companies as either a BUY, HOLD or SELL. A BUY rating is given when the security is expected to deliver absolute returns of 15% or greater over the
next twelve month period, and recommends that investors take a position above the security’s weight in the S&P 500, TSX, or any other relevant index. A SELL
rating is given when the security is expected to deliver negative returns over the next twelve months, while a HOLD rating implies flat returns over the next twelve
months.
Disclaimer:
The information set forth herein has been obtained or derived from sources generally available to the public and believed by the author(s) to be reliable, but the
author(s) does not make any representation or warranty, express or implied, as to its accuracy or completeness. The information is not intended to be used as the
basis of any investment decisions by any person or entity. This information does not constitute investment advice, nor is it an offer or a solicitation of an offer to
buy or sell any security. This report should not be considered to be a recommendation by any individual affiliated with CFA Society of Vancouver, CFA Institute or
the CFA Institute Research Challenge with regard to this company’s stock.

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