This document provides an analysis of Exone and Priceline.com. For Exone, it discusses the company's founding, focus on 3D printing technology, and stock price growth outpacing rivals. It also analyzes Priceline.com's online travel services, revenue growth outpacing industry averages, and improved financial metrics. The document then provides details on valuation methods used for each company, including discussions of profitability, risk factors, and currency exchange rate exposure. Based on the analysis, the document recommends investing in Priceline.com due to it having a better investment outlook compared to Exone.

1. 11277769
JIASHUN HUANG
11466669
TAEHO JOHN KIM
11469653
SO HYUN LEE
11471152
JI YUN PARK
25410 Corporate
Financial Analysis

2. Agenda
 INTRODUCTION
o Exone
o Priceline.com
 VALUATION OF THE COMPANY
 EQUITY VALUATION METHOD
 CONCLUSION

3. •
•
•
•
The Exone was founded in 2005 by Extrude Hone
Corp
The Exone specialised in 3-dimensional printing and
laser micromachining technology
The price of stock for Exone grew by 68% compared
to around 22 % growth of their rivals
Expansion plan in Germany to improve its facilities
with global growth strategies
•
•
•
•
•
American based online travel company, incorporated in
1998
There services such as airline tickets, hotel room
reservations and rental cars were delivered worldwide
through five primary brands
PCLN’s revenue growth has outpaced the industry
average of 17.6%
Current debt-to-equity ratio, 0.38 is low and is below the
industry average
Improved earning per share by 21.9% and net income by
24.1%

4. Valuation of the Company
 Profitability
The net income of Exone has been increasing for the past 3 years, which for year 2010 was 5.5
million, 2011 was 8 million and 2012 was increasing to 10million. From this, we can see that the
profitability of ExOne is increasing significantly year by year. Also, from February 2013, ExOne is listed
on NASDAQ as XONE, for the share price of $18, and within this few months; the share price was up
to $78.80 and now is trading at $52.42, which is 3 times of the IPO price. And the figures show
that, ExOne is performing well with a great profitability
 Credit Risk
It was reported that ExOne (XONE) was underperforming for their share price as at
September 2013 which the BETA of ExOne was -2.477. This means that asset moves in the
opposite direction as compared to the index. And as June 2013, the debt to equity ratio
was 0.027.
 Factor Risk
ExOne is a digital part materialization company with a diversified business models that
provide different services to the clients. So there will always be factor risks.
For example, there will be huge expenses when the services and production lines don’t
maximise their use and as ExOne is newly listed on the share market for just less than a
year, they need to be very careful on their business activities to avoid fluctuations on their
share price.

5. Valuation of the Company
 Profitability
By comparing the income statement of last 3 years, Priceline.com has resulted strong growth over the years. The
group’s net income for the 12 months ending 2011 was around 1 billion USD, which was a 50% increase compared
to previous year. The group continues to operate the growth by 74% through the year 2011 to 2012. The group’s
operating income in the since 2010 has dramatically increased til now. And this shift is expected to be continued
from offline to online bookings, increased penetration of core European and North American market and also
outstanding growth in new markets such as Asia region.
 Factor Risk
Followings are possible factor risks the Priceline.com is facing with:
• Decrease in occupancy
• Higher oil prices
• Terrorist attacks, travel related health concerns
• Unusual weather patterns, natural disasters
 Currency Exchange Rate
Priceline.com is exposed to fluctuations of currency exchange rates since there is a substantial majority of
business operating outside of US while reporting the results in USD. Accordingly, Priceline.com is always exposed
to adverse movements in currency exchange rates.
Some of the European Union countries like Greece, Portugal and etc., with high levels of sovereign debt have
experienced difficulties refinancing their debt. And issues with the sovereign debt in the European Union can
create a significant and long-term devaluation of the Euro against USD.

6. Equity Valuation Method
Income Based Method
 Dividend Discount Method
 Residual Income Method
Cash Flow Based Method
 Free Cash Flow Method
Market Based Method

7. Equity Valuation Method
 Exone
 Cost of Capital -38%, NI Forecasted Growth rate 2%, OE
Forecasted Growth rate 6%

8. Equity Valuation Method
 Priceline.com
 Cost of Capital: 17%, NI Growth rate: 21%, OE Growth rate: 50%
0
1
2
3
4
5
Equity BV
2,574,295
3,869,938
3,869,938
3,869,938
3,869,938
3,869,938
478,071
478,071
478,071
478,071
NI
395,787
Residual earnings =
CSP1 (CSE0*CoC(e))
478,071
30,401.22
- 194,911.04
-
-
194,911.04
7.41
0
Terminal value
- 1,120,822.57
Discounted terminal
value
Discounted residual
earnings
Present value of
residual earnings
Add with OE0, Equity
Value
-
692,856.92
25,897.62
-
861,870.34
1,712,424.66
- 194,911.04
- 194,911.04
- 194,911.04
0
0

9. Conclusion
 We finally decided to investing in Priceline.com
U.S because of it got a better view for investment
option compare to ExOne.