The document provides a business valuation report for Orbitz Worldwide Inc. as of March 13, 2015. It was prepared for Dr. Simone Varotto by Gabriela Zoldova. Using the discounted cash flow method, the report estimates the value of Orbitz Worldwide Inc. is $8.42 per share, compared to its current market price of $11.67 per share. Tables in the report provide details on the Expedia Inc. and Orbitz Worldwide merger deal, the companies' strengths, weaknesses, opportunities, and threats, Orbitz's weighted average cost of capital, income tax expense, continuing value, and share price history.
Harvard style essay tourism leisure and hospitality revisedCustomEssayOrder
1) The document analyzes the tourism, leisure, and hospitality industry using Porter's five forces model of competitive analysis.
2) The five forces include the bargaining power of consumers and suppliers, the threat of new entrants and substitute products, and the rivalry among existing competitors.
3) Porter's model is well-suited for analyzing this industry due to factors like the bargaining power of consumers, the threat of new firms entering the market, and the intense competition among existing competitors.
A strategic analysis of the European tour operating industry according to the Porter business model. TO's competitiveness, strategy matrix and value chain.
Indian hotel industry competetion and benchmarkingAnmol Sharma
The document contains analysis of the Indian hotel industry from all the major aspects. Comparison between 3 major Indian hotel chains show the level of competition and the benchmarks that are set by them to maintain their strategic advantage.
Maximising Value from Airport Investments – Adopting a Truly Active ApproachL.E.K. Consulting
Leading airports are now transforming into customer-led organizations, with real financial benefits and implications for their business models. L.E.K. experience has shown significant benefits from taking this kind of approach. This presentation looks at Australian and New Zealand airports in the context of this transformation - most have begun the journey, but there is further to go.
Global Business Travelers' Airport Retail Trends, 2012-2013ReportsnReports
This 280-page report by Canadean analyzes trends in airport retail for business travelers in 2012-2013. It provides an overview of visits and spending at airport stores as well as average expenditures on food and beverages. The report identifies popular products and purchasing trends. It also examines drivers of purchases and business travelers' concerns. Data is categorized by age, gender, income, and travel frequency. Key findings include that European travelers spend an average of $76 per visit to duty-free stores and $51 to duty-paid, while Asian travelers made 46% of purchases at duty-free stores pre-planned and 54% impulsively.
Industrial Characteristics of the Tourism Industries | Factors Inhibiting & E...Kelly Joannides
It has often been claimed that the distinctive industrial characteristics of the tourism industries creates a peculiar set of challenges for tourism innovation. With specific emphasis on a particular sub-sector(s) and/or destination, identify and evaluate the factors which may inhibit or enable innovation in tourism.
Today’s air, rail and cruise/ferry passengers, conditioned by their interactions with retailers, have different expectations from those held in the past. They expect options during travel, require flexible pricing alternatives and value personalized experiences.
While passengers have idle time during transit, they each have different needs based on who they are, the purpose of their travel, and where they are in their journey. This gives transport providers the unique opportunity to leverage retailer best practices and provide a consistent, personalized customer experience.
In this Executive Insights Spotlight on Transport, L.E.K. examines the changing behaviors of passengers and reveals how transport providers must act and think differently to implement a differentiated merchandising strategy — one that truly captivates their passengers with personalized, bundled content and connectivity offerings and makes the most of their time on board.
Harvard style essay tourism leisure and hospitality revisedCustomEssayOrder
1) The document analyzes the tourism, leisure, and hospitality industry using Porter's five forces model of competitive analysis.
2) The five forces include the bargaining power of consumers and suppliers, the threat of new entrants and substitute products, and the rivalry among existing competitors.
3) Porter's model is well-suited for analyzing this industry due to factors like the bargaining power of consumers, the threat of new firms entering the market, and the intense competition among existing competitors.
A strategic analysis of the European tour operating industry according to the Porter business model. TO's competitiveness, strategy matrix and value chain.
Indian hotel industry competetion and benchmarkingAnmol Sharma
The document contains analysis of the Indian hotel industry from all the major aspects. Comparison between 3 major Indian hotel chains show the level of competition and the benchmarks that are set by them to maintain their strategic advantage.
Maximising Value from Airport Investments – Adopting a Truly Active ApproachL.E.K. Consulting
Leading airports are now transforming into customer-led organizations, with real financial benefits and implications for their business models. L.E.K. experience has shown significant benefits from taking this kind of approach. This presentation looks at Australian and New Zealand airports in the context of this transformation - most have begun the journey, but there is further to go.
Global Business Travelers' Airport Retail Trends, 2012-2013ReportsnReports
This 280-page report by Canadean analyzes trends in airport retail for business travelers in 2012-2013. It provides an overview of visits and spending at airport stores as well as average expenditures on food and beverages. The report identifies popular products and purchasing trends. It also examines drivers of purchases and business travelers' concerns. Data is categorized by age, gender, income, and travel frequency. Key findings include that European travelers spend an average of $76 per visit to duty-free stores and $51 to duty-paid, while Asian travelers made 46% of purchases at duty-free stores pre-planned and 54% impulsively.
Industrial Characteristics of the Tourism Industries | Factors Inhibiting & E...Kelly Joannides
It has often been claimed that the distinctive industrial characteristics of the tourism industries creates a peculiar set of challenges for tourism innovation. With specific emphasis on a particular sub-sector(s) and/or destination, identify and evaluate the factors which may inhibit or enable innovation in tourism.
Today’s air, rail and cruise/ferry passengers, conditioned by their interactions with retailers, have different expectations from those held in the past. They expect options during travel, require flexible pricing alternatives and value personalized experiences.
While passengers have idle time during transit, they each have different needs based on who they are, the purpose of their travel, and where they are in their journey. This gives transport providers the unique opportunity to leverage retailer best practices and provide a consistent, personalized customer experience.
In this Executive Insights Spotlight on Transport, L.E.K. examines the changing behaviors of passengers and reveals how transport providers must act and think differently to implement a differentiated merchandising strategy — one that truly captivates their passengers with personalized, bundled content and connectivity offerings and makes the most of their time on board.
Social Listening for the Travel & Hospitality IndustryBrandwatch
This report details the changes, challenges and opportunities facing the travel and hospitality industry, including:
- How airlines can justify price premiums and boost brand reputation
- What leading hotel and booking brands are doing to better understand and respond to user reviews
- Which metrics marketers can use to measure their campaigns and ROI
More info available here: http://www.brandwatch.com/report-travel-2014/
Insignia Tourism Marketing is an Indian company that specializes in customized outbound tourism experiences. It entered the market in 1998 with a focus on unique, personalized vacations for independent travelers ("FITs") under its brand "Mosaic Holidays". The company operates through a network of travel agents but faces gaps in its service model including a limited geographic footprint and lack of exclusivity and product knowledge among distributors. To address these issues, the company plans to adopt a "mass through niche" direct marketing approach with a wider range of specialized package types to appeal to different customer segments.
This document discusses three companies - Google, Tripadvisor, and Orbitz. It analyzes their business models, target markets, strengths/weaknesses, and competitive strategies. For Google, most profits come from AdWords and their target market includes businesses and individuals under 35. Tripadvisor is a leading travel website that allows users to research and post reviews for free, supported by advertising. Orbitz is an online travel agency that allows customers to search and book flights and hotels on their site. The document recommends that Google acquire Tripadvisor due to its large market share and growth potential in the travel industry.
Mountain High Balloons is proposing a hot air balloon tour business in Gatlinburg, Tennessee to take advantage of the large number of tourists visiting the Great Smoky Mountains National Park each year. The document provides an overview of the tourism industry, analyzes the local competition and market, and details the business concept of Mountain High Balloons. It discusses the target market, location, services, pricing, equipment, technology, and employees. Financial projections and demand scenarios indicate the business would be feasible and receive a significant number of customers.
- Expedia is the largest online travel company in the world with a global presence in over 70 countries. It generates over $30 billion in annual gross bookings.
- The presentation outlines Expedia's competitive advantages including its global scale, diverse demand sources, extensive travel supply footprint, and investment in technology.
- Expedia is pursuing significant growth opportunities through expanding in key markets like hotels and mobile, while also benefiting from the ongoing shift from offline to online travel booking.
This document provides a marketing report for EasyJet Airlines. It includes an analysis of EasyJet's external environment through a PEST analysis and competitive environment through Porter's Five Forces. An internal analysis of EasyJet's strengths, weaknesses, opportunities, and threats is also presented using a SWOT analysis. The document then discusses EasyJet's market segmentation, objectives, and marketing mix (7Ps) including digital communication strategies. It aims to thoroughly analyze EasyJet's marketing plan and brand strategy.
Air Taxi Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opportun...IMARC Group
According to the latest report by IMARC Group, the global air taxi market size reached US$ 817.5 Million in 2021. Air taxi refers to an energy-saving, lightweight aircraft designed to travel shorter distances. It operates on a scheduled or non-scheduled basis and covers short routes which are not usually served by other commercial airlines. The compact size of these aircraft assists in landing and taking off from shorter runways.
Make My Trip is a leading online travel company in India that has revolutionized travel booking. It provides flights, hotels, packages and other travel services through its website and app. The company has consistent revenues, global presence and strong profitability ratios. However, it faces challenges from competition, regulatory changes, and maintaining customer trust and safety. Overall, Make My Trip has shown financial stability but needs to keep innovating to stay ahead.
Business Jet Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Oppo...IMARC Group
The global business jet market size reached US$ 18.4 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 23.7 Billion by 2028, exhibiting a growth rate (CAGR) of 4.3% during 2023-2028.
More Info:- https://www.imarcgroup.com/business-jet-market
The document provides an investor presentation for Expedia Group that outlines the company's transformation. It discusses how Expedia grew large but without scale benefits due to high complexity, siloed operations, and an inefficient cost structure. The company simplified its business, divested non-core assets, streamlined costs to save $1 billion, and built a single technology platform. This platform allows Expedia to optimize marketing, improve unit economics, deliver innovation, and accelerate growth including expanding its $16 billion B2B business. The presentation shares Expedia's roadmap to continued transformation and more profitable growth going forward.
EasyJet is a low-cost airline that focuses on operational efficiency through standardization, online booking, and point-to-point routes to keep costs low. It prioritizes low fares, on-time performance, and convenience through primary airports to attract price-sensitive customers. An important operational decision is fleet commonality, where EasyJet operates an all-Airbus fleet to reduce training and maintenance costs.
City Air Intl is a travel agency that has been operating in Bangladesh since 2000. It provides various travel services including domestic and international airline ticketing, hotel reservations, tour packages, and other travel related facilities. The company aims to offer high quality, customized travel solutions through reliable service and competitive pricing. Its vision is to promote world heritage, culture and enjoyment through travel. City Air Intl seeks to satisfy customers, develop its workforce, ensure helpful service, and be the employer of choice in the industry.
A database management project conducted by NYU students. Using crosstab analysis and other data analytic tools to categorize current customers of Emirates into different value groups and create customized marketing strategy to address each of the segmentation.
This document provides an overview of key performance indicators (KPIs) for travel and hospitality websites. It discusses top trends in the industry, including alternative distribution channels, focus on differentiation, and social networking. The document then outlines essential KPIs for travel sites, such as revenue per booking, look-to-book ratio, sales cycle analysis, and campaign affinity variance. For each KPI, it describes how to measure the metric using analytics tools and quick wins for improving performance.
Deloitte: Charting a course for renewed airline consumer loyaltyRafat Ali
- Only 44% of airline travelers fly more than 75% of their miles on their preferred airline, indicating low brand loyalty. This is a concern for airlines who rely on loyal customers.
- Business travelers are even less loyal, with only 40% concentrating most of their miles on one airline. Leisure travelers are only slightly more loyal.
- Survey respondents only agreed with statements about recommending the airline or being a brand ambassador around 40% of the time on average, showing tepid endorsement of their preferred airline.
- Airlines have an opportunity to boost loyalty by better understanding different traveler segments and their unique needs from an airline. One-size-fits-all approaches will not be effective.
The document describes plans for vertically integrated B2B and B2C tourism booking platforms offering low-cost, high-quality tourist products and services. It will have two phases, with the first launching tourist products and the second adding local geolocated products. Suppliers and individuals can access the proprietary technology and applications. The platforms aim to provide the best available prices and enhanced dynamic packaging options.
U.S. Travel and Hospitality: Embracing a SMAC-Driven FutureCognizant
Airlines, hotels and travel agents are driven to holistically embrace social, mobile, advanced analytics and cloud to boost business performance and retain share of wallet.
The global low cost airlines market size reached US$ 189.1 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 315.4 Billion by 2028, exhibiting growth rate (CAGR) of 8.7% during 2023-2028.
More info:- https://www.imarcgroup.com/low-cost-airlines-market
Social Listening for the Travel & Hospitality IndustryBrandwatch
This report details the changes, challenges and opportunities facing the travel and hospitality industry, including:
- How airlines can justify price premiums and boost brand reputation
- What leading hotel and booking brands are doing to better understand and respond to user reviews
- Which metrics marketers can use to measure their campaigns and ROI
More info available here: http://www.brandwatch.com/report-travel-2014/
Insignia Tourism Marketing is an Indian company that specializes in customized outbound tourism experiences. It entered the market in 1998 with a focus on unique, personalized vacations for independent travelers ("FITs") under its brand "Mosaic Holidays". The company operates through a network of travel agents but faces gaps in its service model including a limited geographic footprint and lack of exclusivity and product knowledge among distributors. To address these issues, the company plans to adopt a "mass through niche" direct marketing approach with a wider range of specialized package types to appeal to different customer segments.
This document discusses three companies - Google, Tripadvisor, and Orbitz. It analyzes their business models, target markets, strengths/weaknesses, and competitive strategies. For Google, most profits come from AdWords and their target market includes businesses and individuals under 35. Tripadvisor is a leading travel website that allows users to research and post reviews for free, supported by advertising. Orbitz is an online travel agency that allows customers to search and book flights and hotels on their site. The document recommends that Google acquire Tripadvisor due to its large market share and growth potential in the travel industry.
Mountain High Balloons is proposing a hot air balloon tour business in Gatlinburg, Tennessee to take advantage of the large number of tourists visiting the Great Smoky Mountains National Park each year. The document provides an overview of the tourism industry, analyzes the local competition and market, and details the business concept of Mountain High Balloons. It discusses the target market, location, services, pricing, equipment, technology, and employees. Financial projections and demand scenarios indicate the business would be feasible and receive a significant number of customers.
- Expedia is the largest online travel company in the world with a global presence in over 70 countries. It generates over $30 billion in annual gross bookings.
- The presentation outlines Expedia's competitive advantages including its global scale, diverse demand sources, extensive travel supply footprint, and investment in technology.
- Expedia is pursuing significant growth opportunities through expanding in key markets like hotels and mobile, while also benefiting from the ongoing shift from offline to online travel booking.
This document provides a marketing report for EasyJet Airlines. It includes an analysis of EasyJet's external environment through a PEST analysis and competitive environment through Porter's Five Forces. An internal analysis of EasyJet's strengths, weaknesses, opportunities, and threats is also presented using a SWOT analysis. The document then discusses EasyJet's market segmentation, objectives, and marketing mix (7Ps) including digital communication strategies. It aims to thoroughly analyze EasyJet's marketing plan and brand strategy.
Air Taxi Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opportun...IMARC Group
According to the latest report by IMARC Group, the global air taxi market size reached US$ 817.5 Million in 2021. Air taxi refers to an energy-saving, lightweight aircraft designed to travel shorter distances. It operates on a scheduled or non-scheduled basis and covers short routes which are not usually served by other commercial airlines. The compact size of these aircraft assists in landing and taking off from shorter runways.
Make My Trip is a leading online travel company in India that has revolutionized travel booking. It provides flights, hotels, packages and other travel services through its website and app. The company has consistent revenues, global presence and strong profitability ratios. However, it faces challenges from competition, regulatory changes, and maintaining customer trust and safety. Overall, Make My Trip has shown financial stability but needs to keep innovating to stay ahead.
Business Jet Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Oppo...IMARC Group
The global business jet market size reached US$ 18.4 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 23.7 Billion by 2028, exhibiting a growth rate (CAGR) of 4.3% during 2023-2028.
More Info:- https://www.imarcgroup.com/business-jet-market
The document provides an investor presentation for Expedia Group that outlines the company's transformation. It discusses how Expedia grew large but without scale benefits due to high complexity, siloed operations, and an inefficient cost structure. The company simplified its business, divested non-core assets, streamlined costs to save $1 billion, and built a single technology platform. This platform allows Expedia to optimize marketing, improve unit economics, deliver innovation, and accelerate growth including expanding its $16 billion B2B business. The presentation shares Expedia's roadmap to continued transformation and more profitable growth going forward.
EasyJet is a low-cost airline that focuses on operational efficiency through standardization, online booking, and point-to-point routes to keep costs low. It prioritizes low fares, on-time performance, and convenience through primary airports to attract price-sensitive customers. An important operational decision is fleet commonality, where EasyJet operates an all-Airbus fleet to reduce training and maintenance costs.
City Air Intl is a travel agency that has been operating in Bangladesh since 2000. It provides various travel services including domestic and international airline ticketing, hotel reservations, tour packages, and other travel related facilities. The company aims to offer high quality, customized travel solutions through reliable service and competitive pricing. Its vision is to promote world heritage, culture and enjoyment through travel. City Air Intl seeks to satisfy customers, develop its workforce, ensure helpful service, and be the employer of choice in the industry.
A database management project conducted by NYU students. Using crosstab analysis and other data analytic tools to categorize current customers of Emirates into different value groups and create customized marketing strategy to address each of the segmentation.
This document provides an overview of key performance indicators (KPIs) for travel and hospitality websites. It discusses top trends in the industry, including alternative distribution channels, focus on differentiation, and social networking. The document then outlines essential KPIs for travel sites, such as revenue per booking, look-to-book ratio, sales cycle analysis, and campaign affinity variance. For each KPI, it describes how to measure the metric using analytics tools and quick wins for improving performance.
Deloitte: Charting a course for renewed airline consumer loyaltyRafat Ali
- Only 44% of airline travelers fly more than 75% of their miles on their preferred airline, indicating low brand loyalty. This is a concern for airlines who rely on loyal customers.
- Business travelers are even less loyal, with only 40% concentrating most of their miles on one airline. Leisure travelers are only slightly more loyal.
- Survey respondents only agreed with statements about recommending the airline or being a brand ambassador around 40% of the time on average, showing tepid endorsement of their preferred airline.
- Airlines have an opportunity to boost loyalty by better understanding different traveler segments and their unique needs from an airline. One-size-fits-all approaches will not be effective.
The document describes plans for vertically integrated B2B and B2C tourism booking platforms offering low-cost, high-quality tourist products and services. It will have two phases, with the first launching tourist products and the second adding local geolocated products. Suppliers and individuals can access the proprietary technology and applications. The platforms aim to provide the best available prices and enhanced dynamic packaging options.
U.S. Travel and Hospitality: Embracing a SMAC-Driven FutureCognizant
Airlines, hotels and travel agents are driven to holistically embrace social, mobile, advanced analytics and cloud to boost business performance and retain share of wallet.
The global low cost airlines market size reached US$ 189.1 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 315.4 Billion by 2028, exhibiting growth rate (CAGR) of 8.7% during 2023-2028.
More info:- https://www.imarcgroup.com/low-cost-airlines-market
1. ICMA227: Mergers & Acquisitions
BUSINESS VALUATION REPORT
Orbitz Worldwide Inc.
As of March 13, 2015
Prepared for: Dr Simone Varotto
Prepared by: Gabriela Zoldova (19022331)
2. Business Valuation Report for Orbitz Worldwide Inc.
Contents:
Page
Section 1: Valuation Summary
Description of Valuation Assignment 3
Table 1-1: Expedia Inc. & Orbitz Worldwide Inc. M&A Deal 3
Table 1-2: Bidder and Target Information 4
Short Summary of Valuation Findings 4
Table 1-3: Valuation Summary for Orbitz Worldwide Inc. 5
Section 2: Valuation Assignment
Description of the Entity Being Valued 5
Table 1-4: Bidder and Target SWOT Analyses 7
Valuation Purpose 8
Information Source 8
Table 1-5: Orbitz’s WACC 9
Valuation Assumptions 9
Table 1-6: Income Tax Expense 9
Table 1-7: Continuing Value 10
Section 3: Empirical Results
Table 1-8: Orbitz’s Share Price May 2014 - March 2-15 11
References 13
Appendices 14
Page ! of !2 14
3. Business Valuation Report for Orbitz Worldwide Inc.
SECTION 1: VALUATION SUMMARY
DESCRIPTION OF VALUATION ASSIGNENT
A recently announced merger between Expedia Inc. and Orbitz Worldwide Inc. has been chosen form
the list of pending transactions in Bloomberg. The deal satisfy all five given conditions:
1. Single acquirer/target
2. The accord has been publicly declared but not yet completed
3. Both the target firm and the acquirer are not operating within the financial industry
4. Both the bidder and the target are publicly-traded organizations (ltd.)
5. The buyer (Expedia Inc.) acquires 100 % control of the target (Orbitz Worldwide Inc.)
Table 1-1: Expedia Inc. & Orbitz Worldwide Inc. M&A Deal
Source: Bloomberg
Page ! of !3 14
4. Business Valuation Report for Orbitz Worldwide Inc.
Table 1-2: Bidder and Target Information
Source: Bloomberg
SHORT SUMMARY OF VALUATION FINDINGS
Using the discounted free cashflow method, an estimate of $ 8.42 per share has been obtained. When
compared to the current market price of $ 11.67, Orbitz Worldwide Inc. appears to be notably
overvalued. One reason for that may be a surge in demand driven primarily by investor perception.
Furthermore, it could be due to overestimation of synergies. Alternatively, the difference in the value of
equity may be explained by rising levels of inflation. These and possible other reasons will be considered
in detail further on in the report.
Page ! of !4 14
5. Business Valuation Report for Orbitz Worldwide Inc.
Table 1-3: Valuation Summary for Orbitz Worldwide Inc.
Source: Prepared by the Student
SECTION 2: VALUATION ASSIGNMENT
DESCRIPTION OF THE ENTITY BEING VALUED
Orbitz Worldwide Inc. is a leading global online travel company with focus on using innovative
technology to meet their clients’ ever-changing needs . Their services enable both leisure and business1
travellers to arrange and search for a broad variety of travel-related products ranging from airline tickets,
accommodation, car rental as well as all-inclusive vacation packages. Orbitz Worldwide owns and
operates a portfolio of several consumer brands including HotelClub (www.hotelclub.com), Ebookers
(www.ebookers.com), CheapTickets (www.cheaptickets.com) and Orbitz (www.orbitz.com) . In2
addition, the Orbitz Worldwide Family and Orbitz Partner Network offer a mixture of private label
travel solutions to global airline companies. Lastly, Orbitz for business is particularly designed to help
corporations in managing their travel program throughout the year.
Orbitz Worldwide Inc. was incorporated in 2001 and has been listed on New York Stock Exchange since
July 2007. The company is headquartered in Chicago, Illinois and currently sells its products/services on
an international scale.
Orbitz’s 2014 annual financial report outlines a marginally improved results when examined in contrast
with the period 2005 - 2013. Throughout 2008 - 2012 the organization proved unable to generate profits
from day-to-day operations, resulting in large losses. It is crucial to understand that beyond cyclical
economic crisis, air travel is also confronted with highly volatile commodity prices as well as the future
prospect of the world’s oil supply. The economic slowdown in the US during the Subprime crisis had an
http://corp.orbitz.com/1
http://corp.orbitz.com/2
Page ! of !5 14
Enterprise value at 1st March 2015 11,141.85
less Debt 259.27
Equity Value 10,882.58
Number of shares 1,293.01
Value per Share (DCF) 8.42
Current Price 11.67
6. Business Valuation Report for Orbitz Worldwide Inc.
immense impact on Orbitz’s business. The company’s profitability was negatively influenced by fierce
rivalry and local economic conditions (i.e. financial markets liquidity and the availability of credit). Any
changes in the US regulations could adversely affect Orbitz as huge proportion of the organisation’s
revenue is still derived from the US market. Despite the fact that the firm has been seeking to establish
itself outside North America, this continuous over-reliance increases its exposure to regional factors. In
addition, the macro economic environment just described determines the competitive climate within the
highly fragmented travel industry. The latest will be discussed in more detail in the following paragraph.
Turning our attention to the micro environment, the buyers’ power is relatively high. Clients are no
longer concerned whom they are buying from. In other words, brand awareness is not imperative to the
success of a firm, it is the price that matters. We live in a technological era where consumers have the
ability to instantly compare prices and change with virtually zero switching costs. Likewise, suppliers
have an excessive bargaining power. Over the past few years Orbitz has suffered pressure on
remuneration from major airline companies as well as a sharp reduction in the number of hotel travel
suppliers. Also, despite the decrease among online travel intermediaries, large number of players are
currently seeking to penetrate into the industry given its low barriers to entry. Still, it would be difficult
for newcomers to compete with well-established rivals. Finally, the sector has been adversely hit by a
rapidly chaining consumer needs. There has been a growing popularity of domestic tourism. In addition,
the wide-spread use of video-conferencing means less need for professionals to travel. To summarise, the
online travel industry appears unattractive as the above combination of buyer’s power, supplier’s power,
barriers to entry, availability of substitutes and competition drive down overall profitability. Yet, some of
the risks the two companies are facing can be mitigated through generating valuable synergies.
Greater market share will allow both Expedia and Orbitz to take immediate advantage of a stronger
position in the chain of distribution, enabling them to achieve better terms with travel service providers.
Larger bargaining power will give them the opportunity to negotiate lower pricing with airlines and
hotels and thus reduce their costs. As a consequence, travellers will benefit from substantially lower fares
and the merged organization will be able to strengthen its position on the market. Providing that the US
online travel market has almost reached its saturation, Expedia will need to relocate its concentration on
rising opportunities in Asia as well as revising its current position in Europe. The process can be
simplified using Orbitz’s already-established channels in the Far East. Also, Expedia’s strong brandname
can help Orbitz further expand its activities in Asia-Pacific. This would be very difficult for the firm to do
given its weak financial position. Moreover, the acquirer could exploit Orbitz’ innovative technology and
further expand the variety of products and services to sustain its long-term competitive advantage. The
table below summaries both companies’ strengths, weaknesses, opportunities and threats.
Page ! of !6 14
7. Business Valuation Report for Orbitz Worldwide Inc.
Table 1-4: Bidder & Targe SWOT Analyses
Expedia Ltd. Orbitz Worldwide Inc.
Strengths
• The company has very strong position in the
US - the third largest for online travel and
retail services
• Expedia is pursuing low cost strategy -
minimum threats to its direct costs (e.i.
increase in fuel price)
• Expanding its business through acquisitions
of well-known brands; by doing so Expedia is
hoped to grow its retail potential
• Expedia has considerably increased its
investments in Expedia Corporate Travel
associated with business travel service - an
opportunity to penetrate a growing segment
of the travel industry
• The corporation is better prepared to face
severe economic crisis; this has been enabled
by the mixed price platform - Expedia’s
brands range from budget to luxury
• Strong complementary resources (e.i. solid
social media presence)
• Through its innovative technology, Orbitz takes
their business one “step ahead” -OrbitzTLC
Mobile Access, Orbitz Insider Podcasts, RSS
Feeds and OrbitzTLC Alert system (informs its
clients about departure/arrival delays, flights
cancellation, gate change etc.)
• Clients are able to customise their travel plans
according to their needs (e.i. air, hotel packages at
one bundle price)
• Through CheapTickets, a wholly owned
subsidiary of Orbit, customers can purchase
tickets to various sport events, concerts, museums
or transportation
• Orbitz guarantees lowest hotel rates through their
Merchant Hotel Program; deals concluded using
the merchant model result in higher revenues for
Orbitz
• Clients enjoy the availability of economical travel
insurance and flexible search
Weaknesses
• Expedia relies heavily on the US market
which accounts for more than 80% of the
firm’s revenues; in order to survive the
company will need to alter its strategy as the
North America online travel market has
nearly reached its saturation point
• The company is highly dependant on internet
search engines; a negative change in price of
these services may result in revenue loss
• Lower commissions from supplier
• External threats such as terrorism, economic
uncertainty, unexpected increase in fuel price
etc.
• Contract termination between American Airlines
and Orbitz; AA represented 5 % of the total
revenue
• The travel industry commonly suffers from
seasonal fluctuations in demand; the latest has
been worsen by the prolonged recession which
left Orbitz Worldwide in a weak financial position
Opportunities
• Increasing investments in new technology
which will bring about long-term competitive
advantage
• Business expansion in Asia - increasing
number of travellers and the need for a strong
brand able to provide efficiency, safety (i.e.
Malaysian Airlines disasters; information
safety); Expedia has already acquired eLong
- the second largest mainland China-focused
travel agency
• New, rising opportunities in Europe
• Strong value of dollar benefits its total
revenue
• Nowadays consumers seek good quality for
lower price which fits with the firm’s low-cost
business model
• Orbitz has established itself in the USA, Europe
and Asia Pacific; currently it is looking to expand
its activities in the Asia Pacific market. Both
There is a rapidly increasing number of clients
involved in online vacation planning and booking
services
• Opportunity to expand their CheapTickets
subsidiary as well as RatesToGo (designed for last
minute traveller) and the Away Network (trip
plan through the use of travel guides)
• ebookers@ - Orbitz’s European Version
Page ! of !7 14
8. Business Valuation Report for Orbitz Worldwide Inc.
Source: Prepared by the Student
VALUATION PURPOSE
• To examine in contrast the value of equity per share derived from DCF with the current market price
of the target firm.
• To understand and explain potential differences in the two values.
INFORMATION SOURCE
The financial information used in the valuation is based on Orbitz’s financial statements for FYE 2005
through FYE 2014, including the analyst forecast for FYE 2015 - 2016. The available data has been
extracted from Bloomberg and can be found in the Appendix section of this report.
The expected real growth rate has been computed as the long term average of the US’ real growth rate
and average of the expected inflation for the period 1980 - 2019 (including the analyst forecast):
gL = expected real growth rate of economy + expected inflation
The data has been obtained form the International Monetary Fund Website.
http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/
weorept.aspxsy=1980&ey=2019&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=67&pr1.y=9&c=111&s=NGDP_RPCH%2CPCPIPCH&grp=0&a=
Lastly, providing that the Weighted Average Cost of Capital (WACC) can often be determined in
different ways, I have decided to rely on Bloomberg.
Threats
• Consolidation of travel industry due to
economic uncertainty - Expedia is a target for
a likely purchaser
• Direct sales through the internet
• Increasing rivalry and growing bargaining
power of suppliers (supplier consolidation)
• Decline in business travel due to financial
crisis - Expedia Corporate Travel
• Orbitz Worldwide is characterised by a highly
concentrated ownership - Travelport is the major
shareholder; Orbitz has only very little control
over the company. For instance Travelport
regularly issues letters of credit on behalf of
Orbitz which at the end of 2010 had outstanding
borrowings of more than 400 mil dollars
• Travelport has access to Orbitz’s innovative
intellectual property; this poses several threats to
Orbitz as Travelport is slowly turning into its
dominant rival
Expedia Ltd. Orbitz Worldwide Inc.
Page ! of !8 14
9. Business Valuation Report for Orbitz Worldwide Inc.
Table 1-5: Orbitz’s WACC
Source: Bloomberg
VALUATION ASSUMPTIONS
Statutory Tax Rate:
When scrutinising Orbitz’s Profit & Loss Account, I have realized that the company’s tax expense has
been very low and largely negative. In some situations, revenue losses and tax overpayments may result
in a negative tax liability. Due to lack of information about the precise tax rate the organization has
adopted, I have decided to adjust for the latest by re-stating their income tax expense using the highest
available US Statutory Tax Rate (40 %).
Table 1-6: Income Tax Expense as Stated in Orbitz’s P&L
Source: Orbitz P & L Account, Bloomberg
Page ! of !9 14
Pretax Income PRETA
X_INC
-430.0 -144.0 -41.0 -301.0 -328.0 -55.9 -35.2 -298.6 0.1 44.6
Income Tax Expense IS_INC_
TAX_EX
-42.0 2.0 43.0 -2.0 9.0 2.4 2.1 3.2 -165.0 27.3
10. Business Valuation Report for Orbitz Worldwide Inc.
Forecast Period:
Given the limited future projections and the danger that the model would be overdependent on the
terminal value, I have estimated the sales for the period 2017 - 2019 using the average sales growth rate
for 2015 - 2016. All other items are calculated as proportion of sales. The crucial consequence of a too-
short forecast period is that modeler has to heap the value burden on the continuing value estimate in
order to have any consonance with the market price. As a consequence, the model fails to reflect a clear
sense of the company’s pattern or timing of value creation.
Table 1-7: Continuing Value
Source: LMCM Analyses
Change in Working Capital:
Change in WC has been calculated as a percentage of sales.
SECTION 3: EMPIRICAL RESULTS
According to the results derived from the DCF, the intrinsic value of the target company turns out to be
noticeably low when set side by side its current market price. One reason for such a great alteration is
market overreaction to good news. As we have seen, Orbitz’s results for the past 9 years have not be
overly positive. The recent announcement of the M&A deal may have been perceived by many investors
as a positive way of how to overcome both current and future difficulties and a very promising
opportunity to further grow the business. When markets become euphoric, share price is send skyward,
Page ! of !10 14
11. Business Valuation Report for Orbitz Worldwide Inc.
resulting in highly overvalued stock. The latest represents a risk-free arbitrage opportunity for skilled
investors.
From the chart below we can clearly see that our DCF result of $ 8.42 per share corresponds to the pre-
announcement price. Thus we conclude that investors overreaction is a logical rationale for the
substantial difference in the two quantities.
Table 1-8: Orbitz’s Share Price May 2014 - March 2015
Source: Yahoo Finance
Secondly, it has been widely recognized that overestimation of synergies is likely to result in stock
overvaluation. Yet, the latest is highly dependant on the payment method. Whereas stock financing
results in an instantaneous relationship amid acquirer’s and target’s share price lasting throughout the
whole bid period, a deal settled using cash inhibits the link between bidder’s and target’s stock price once
the initial announcement impact is over. In other words, the shareholders of the target firm gain from the
transaction solely via the premium paid by the bidder. Taking into consideration that Expedia has agreed
to pay $ 12 mil in cash, the latest may not be a plausible reason for a substantial difference in the DCF
and the current market value of Orbitz’s stock.
A more credible justification for the variation is the expected rise in inflation in the US. Inflation has
proved to have an insidious impact on businesses: increasing prices of inputs, reduction in consumer
spending, sizeable decline in revenues and profits, and slowdown in economic activity. If the latest is true,
Page ! of !11 14
12. Business Valuation Report for Orbitz Worldwide Inc.
then the current Orbitz’s share price which reflects fully the implications of the future stream of growing
earnings is greatly overpriced. Cyclical stocks tend to perform worse during periods of high inflation.
Moreover, Expedia’s and Orbitz’s long-term over-dependence on the US market must be offset by
establishing strong channels outside North America in order to justify the growth in future earnings.
Lastly, there is a danger that the equity value derived using the DCF model is subject to wrong
assumptions regarding the short-term forecast period 2017 - 2019. As already mentioned earlier in the
report, the lack of analyst forecast has brought me to estimate the target’s sales. This has been done in
order to prevent an over-reliance on the continuing (terminal value). The average sales growth rate for
2016 - 2017 has been adopted. Yet, the results may vary significantly when a different measure (i.e.
average sales growth rate for 2005 - 2017) is used in the calculation. In conclusion, although the
difference between the two quantities seem plausible given the explanations above, alternative valuation
methods (i.e. multiples, book value etc.) shall be applied in line with the DCF in order to check the
soundness of our result.
Page ! of !12 14
13. Business Valuation Report for Orbitz Worldwide Inc.
SECTION 4: REFERENCES
Vernimmen, P. et al (2014) “Corporate Finance: Theory and Practice, 4e”, John Wiley and Sons.
Online Sources:
http://www.imf.org/external/pubs/ft/weo/2014/02/weodata/weoselgr.aspx
http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates
http://corp.orbitz.com/
http://www.expediainc.com/
Other Sources:
Bloomberg
Yahoo Finance
Page ! of !13 14
14. Business Valuation Report for Orbitz Worldwide Inc.
SECTION 5: APPENDENCIES
ORBITZ’S WORLDWIDE FINANCIAL STATEMENTS
Page ! of !14 14
21. Financial Statement Analysis
Ticker: OWW US Equity Periodicity: Annuals Currency: USD Note: Years shown on the report are Fiscal Years Company: Orbitz Worldwide Inc
Filing: Most Recent
The format and content of this report may not be modified or altered (including, but not limited to, via deletion or addition) in any way.The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance L.P. (“BFLP”) and its subsidiaries in all jurisdictions
other than Argentina, Bermuda, China, India, Japan and Korea (the “BLP Countries”). BFLP is a wholly-owned subsidiary of Bloomberg L.P. (“BLP”). BLP provides BFLP with all global marketing and operational support and service for the Services and distributes the Services either directly or through a non-
BFLP subsidiary in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice or guarantee the accuracy of prices or information in the Services. Nothing on the Services shall constitute an offering of financial instruments by BFLP, BLP or their affiliates.
Bloomberg ® 03/09/2015 13:53:13 1
Standardized
Original:2005 A Original:2006 A Restated:2007 A Original:2008 A Original:2009 A Restated:2010 A Original:2011 A Original:2012 A Original:2013 A Preliminary:2014 A
For the period ending 2005-12-31 2006-12-31 2007-12-31 2008-12-31 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-12-31 2014-12-31
Total Assets
+ Cash, Cash
Equivalents & STI
33.00 28.00 25.00 31.00 89.00 97.22 136.17 130.26 117.39 188.48
+ Cash & Cash
Equivalents
33.00 28.00 25.00 31.00 89.00 97.22 136.17 130.26 117.39 188.48
+ ST Investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Accounts & Notes
Receiv
55.00 51.00 60.00 58.00 55.00 54.70 62.38 75.79 82.60 117.44
+ Accounts
Receivable, Net
55.00 51.00 60.00 58.00 55.00 54.70 62.38 75.79 82.60 117.44
+ Notes Receivable,
Net
0.00 0.00 0.00 0.00 0.00 0.00
+ Inventories 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Raw Materials 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Work In Process 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Finished Goods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Other Inventory 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Other ST Assets 20.00 25.00 36.00 39.00 25.00 36.50 22.22 19.71 43.32 43.11
+ Prepaid Expenses 17.00 17.43 15.92 11.02 17.11 10.04
+ Derivative &
Hedging Assets
0.00 0.00 0.00 0.00 0.00
+ Deferred Tax
Assets
0.05 0.00 0.01 11.15
+ Misc ST Assets 8.00 19.03 6.30 8.68 15.06 33.07
Total Current Assets 108.00 104.00 121.00 128.00 169.00 188.43 220.76 225.76 243.30 349.03
+ Property, Plant &
Equip, Net
126.00 166.00 184.00 190.00 181.00 158.06 141.70 132.54 116.15 111.83
+ Property, Plant &
Equip
221.00 177.00 231.00 276.00 317.00 353.57 390.95 430.16 450.87 413.86
- Accumulated
Depreciation
95.00 11.00 47.00 86.00 136.00 195.51 249.25 297.62 334.72 302.03
+ LT Investments &
Receivables
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Other LT Assets 1,826.00 1,791.00 1,620.00 1,272.00 944.00 870.22 783.32 476.01 748.24 715.11
+ Total Intangible
Assets
1,675.00 1,589.00 1,494.00 1,215.00 887.00 814.04 759.66 437.01 435.88 442.29
+ Goodwill 1,395.00 1,190.00 1,181.00 949.00 713.00 677.96 647.30 345.39 345.39 351.10
+ Other Intangible
Assets
280.00 399.00 313.00 266.00 174.00 136.08 112.36 91.62 90.49 91.19
+ Deferred Tax
Assets
10.00 8.15 7.31 6.77 160.64 135.81
+ Derivative &
Hedging Assets
0.00 0.00 0.00 0.00 0.00
+ Misc LT Assets 151.00 202.00 126.00 57.00 47.00 48.02 16.35 32.23 151.73 137.01
Total Noncurrent
Assets
1,952.00 1,957.00 1,804.00 1,462.00 1,125.00 1,028.28 925.02 608.56 864.38 826.94
Total Assets 2,060.00 2,061.00 1,925.00 1,590.00 1,294.00 1,216.70 1,145.79 834.31 1,107.69 1,175.97
Liabilities &
Shareholders' Equity
+ Payables & Accruals 105.00 123.00 37.00 37.00 362.00 366.14 390.59 408.40 499.52 538.77
+ Accounts Payable 105.00 123.00 37.00 37.00 30.00 26.49 30.94 21.49 16.43 13.95
22. Financial Statement Analysis
Ticker: OWW US Equity Periodicity: Annuals Currency: USD Note: Years shown on the report are Fiscal Years Company: Orbitz Worldwide Inc
Filing: Most Recent
The format and content of this report may not be modified or altered (including, but not limited to, via deletion or addition) in any way.The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance L.P. (“BFLP”) and its subsidiaries in all jurisdictions
other than Argentina, Bermuda, China, India, Japan and Korea (the “BLP Countries”). BFLP is a wholly-owned subsidiary of Bloomberg L.P. (“BLP”). BLP provides BFLP with all global marketing and operational support and service for the Services and distributes the Services either directly or through a non-
BFLP subsidiary in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice or guarantee the accuracy of prices or information in the Services. Nothing on the Services shall constitute an offering of financial instruments by BFLP, BLP or their affiliates.
Bloomberg ® 03/09/2015 13:53:13 2
Original:2005 A Original:2006 A Restated:2007 A Original:2008 A Original:2009 A Restated:2010 A Original:2011 A Original:2012 A Original:2013 A Preliminary:2014 A
For the period ending 2005-12-31 2006-12-31 2007-12-31 2008-12-31 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-12-31 2014-12-31
+ Accrued Income
Taxes
0.00 0.00 0.00 0.00 0.00
+ Interest &
Dividends Payable
0.00 0.00 0.00 0.00 0.00
+ Other Accrued
Liabilities
332.00 339.65 359.66 386.92 483.09 524.82
+ ST Debt 0.00 0.00 6.00 6.00 21.00 19.81 32.18 24.71 13.50 25.87
+ ST Borrowings 0.00 0.00 0.00 0.00 0.00 0.00
+ ST Capital Leases 0.00 0.00 0.00 0.00 0.00 0.00
+ Current Portion of
LT Debt
21.00 19.81 32.18 24.71 13.50 25.87
+ Other ST Liabilities 262.00 264.00 379.00 343.00 36.00 36.84 30.99 40.31 44.94 42.36
+ Deferred Revenue 31.00 30.85 28.95 34.95 40.62 40.82
+ Derivatives &
Hedging
2.00 1.29 0.28 2.67 1.41 0.00
+ Misc ST Liabilities 262.00 264.00 379.00 343.00 3.00 4.71 1.76 2.69 2.91 1.54
Total Current Liabilities 367.00 387.00 422.00 386.00 419.00 422.79 453.76 473.42 557.96 607.00
+ LT Debt 0.00 0.00 594.00 608.00 598.00 472.21 440.03 415.32 429.75 421.88
+ LT Borrowings 0.00 0.00 594.00 608.00 598.00 472.21 440.03 415.32 429.75 421.88
+ LT Capital Leases 0.00 0.00 0.00 0.00 0.00 0.00
+ Other LT Liabilities 269.00 407.00 171.00 158.00 147.00 131.85 91.47 88.23 78.26 75.99
+ Accrued Liabilities 0.00 0.00 0.00 0.00 0.00 0.00
+ Pension Liabilities 0.00 0.00 0.00 0.00 0.00 0.00
+ Pensions 0.00 0.00 0.00 0.00 0.00
+ Other Post-Ret
Benefits
0.00 0.00 0.00 0.00 0.00
+ Deferred Revenue 0.00 0.00 0.00 0.00 0.00
+ Derivatives &
Hedging
4.00 1.63 0.31 0.00 1.21
+ Misc LT Liabilities 269.00 407.00 171.00 158.00 143.00 130.22 91.16 88.23 77.05 75.99
Total Noncurrent
Liabilities
269.00 407.00 765.00 766.00 745.00 604.06 531.50 503.55 508.01 497.87
Total Liabilities 636.00 794.00 1,187.00 1,152.00 1,164.00 1,026.85 985.26 976.98 1,065.96 1,104.87
+ Preferred Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
+ Share Capital &
APIC
0.00 0.00 895.00 909.00 923.00 1,030.24 1,037.13 1,042.52 1,056.30 1,061.74
+ Common Stock 1.00 1.02 1.04 1.05 1.08 1.11
+ Additional Paid in
Capital
922.00 1,029.21 1,036.09 1,041.47 1,055.21 1,060.64
- Treasury Stock 0.00 0.00 0.05 0.05 0.05 0.05 0.05
+ Retained Earnings 6.00 2.00 -151.00 -450.00 -787.00 -843.61 -880.89 -1,182.62 -1,017.54 -1,000.26
+ Other Equity 1,418.00 1,265.00 -6.00 -21.00 -6.00 3.28 4.33 -2.50 3.02 9.67
Equity Before Minority
Interest
1,424.00 1,267.00 738.00 438.00 130.00 189.85 160.53 -142.66 41.72 71.10
+ Minority Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Equity 1,424.00 1,267.00 738.00 438.00 130.00 189.85 160.53 -142.66 41.72 71.10
Total Liabilities &
Equity
2,060.00 2,061.00 1,925.00 1,590.00 1,294.00 1,216.70 1,145.79 834.31 1,107.69 1,175.97
Reference Items
Accounting Standard US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP US GAAP
Shares Outstanding 83.11 83.35 83.83 102.34 103.79 105.09 108.37 110.73
Number of Treasury
Shares
0.00 0.00 0.02 0.03 0.03 0.03 0.03 0.03
Pension Obligations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
23. Financial Statement Analysis
Ticker: OWW US Equity Periodicity: Annuals Currency: USD Note: Years shown on the report are Fiscal Years Company: Orbitz Worldwide Inc
Filing: Most Recent
The format and content of this report may not be modified or altered (including, but not limited to, via deletion or addition) in any way.The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance L.P. (“BFLP”) and its subsidiaries in all jurisdictions
other than Argentina, Bermuda, China, India, Japan and Korea (the “BLP Countries”). BFLP is a wholly-owned subsidiary of Bloomberg L.P. (“BLP”). BLP provides BFLP with all global marketing and operational support and service for the Services and distributes the Services either directly or through a non-
BFLP subsidiary in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice or guarantee the accuracy of prices or information in the Services. Nothing on the Services shall constitute an offering of financial instruments by BFLP, BLP or their affiliates.
Bloomberg ® 03/09/2015 13:53:13 3
Original:2005 A Original:2006 A Restated:2007 A Original:2008 A Original:2009 A Restated:2010 A Original:2011 A Original:2012 A Original:2013 A Preliminary:2014 A
For the period ending 2005-12-31 2006-12-31 2007-12-31 2008-12-31 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-12-31 2014-12-31
Operating Leases 83.00 73.00 50.00 48.00 42.59 40.20 37.26 33.26
Capital Leases - Total 0.00 0.00 0.00 0.00 0.00 0.00
Options Granted During
Period
2.73 2.13 1.00 1.05 0.20 0.00
Options Outstanding at
Period End
2.56 4.22 4.24 3.74 3.27 2.72 1.23
Net Debt -33.00 -28.00 575.00 583.00 530.00 394.80 336.04 309.77 325.87 259.27
Net Debt to Equity -2.32 -2.21 77.91 133.11 407.69 207.95 209.34 781.04 364.66
Tangible Common
Equity Ratio
-65.19 -68.22 -175.41 -207.20 -186.00 -155.02 -155.16 -145.90 -58.67 -50.59
Current Ratio 0.29 0.27 0.29 0.33 0.40 0.45 0.49 0.48 0.44 0.58
Number of Employees 1,600.00 1,600.00 1,590.00 1,500.00 1,300.00
24. Financial Statement Analysis
Ticker: OWW US Equity Periodicity: Annuals Currency: USD Note: Years shown on the report are Fiscal Years Company: Orbitz Worldwide Inc
Filing: Most Recent
The format and content of this report may not be modified or altered (including, but not limited to, via deletion or addition) in any way.The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance L.P. (“BFLP”) and its subsidiaries in all jurisdictions
other than Argentina, Bermuda, China, India, Japan and Korea (the “BLP Countries”). BFLP is a wholly-owned subsidiary of Bloomberg L.P. (“BLP”). BLP provides BFLP with all global marketing and operational support and service for the Services and distributes the Services either directly or through a non-
BFLP subsidiary in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice or guarantee the accuracy of prices or information in the Services. Nothing on the Services shall constitute an offering of financial instruments by BFLP, BLP or their affiliates.
Bloomberg ® 03/09/2015 13:42:13 1
Stock Value
Restated:2007 A Original:2008 A Original:2009 A Restated:2010 A Original:2011 A Original:2012 A Original:2013 A Preliminary:2014 A Current
For the period ending 2007-12-31 2008-12-31 2009-12-31 2010-12-31 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-3-9
Last Price 8.50 3.88 7.34 5.59 3.76 2.72 7.18 8.23 11.67
Period-over-Period %
Change
-54.35 89.18 -23.84 -32.74 -27.66 163.97 14.62
Open Price 15.00 8.51 3.88 7.48 5.35 3.85 2.80 7.11 11.69
High Price 15.00 8.99 8.11 7.86 5.75 4.75 13.26 9.96 11.69
Low Price 7.53 2.00 1.10 3.56 1.57 2.07 2.60 6.49 11.65
Market Capitalization 706.42 323.38 615.32 572.10 390.25 285.86 778.11 911.33 1,293.01
Current Shares
Outstanding
83.03 83.29 83.75 102.31 103.74 105.05 108.20 110.71 110.80
Equity Float 34.12 82.50 82.70 45.57 46.58 47.13 54.83 104.40 104.63