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In his expert witness report, Mr. Much stated that the
valuation of decedent's holdings in J.R. Simplot Co. on a per-share
basis requires an initial determination of the enterprise and net
equity value of J.R. Simplot Co. In this regard, he considered the
value of J.R. Simplot Co.'s business operations and the value of
its nonoperating assets (its 13.36-percent ownership in Micron
Technology), as well as whether any difference exists, on a per-
share basis, between the class A voting and class B nonvoting
shares.
In determining a value for J.R. Simplot Co., Mr. Much examined
the following factors: The Company's history, economic growth,
financial condition, and earning capacity; the amount (if any) of
dividends paid; the value of the Company's tangible and intangible
assets; prior sales of the Company's stock to similar companies;
and restrictions placed on the stock of the Company. He considered
both historical and projected earnings of J.R. Simplot Co.'s
operating divisions, using a market capitalization approach (which
applies market-related pricing ratios of comparable publicly traded
companies to the performance measures of each of the Company's
operating divisions) and by doing so arrived at an enterprise value
for J.R. Simplot Co. of $1,066,740,000. He also used a discounted
cash-flow approach (DCF) (which estimates the present value of the
projected future operating cash-flows generated from the business
of the Company) and by doing so arrived at an $1,079,900,000
enterprise value. (In arriving at J.R. Simplot Co.'s enterprise
value through the use of both these approaches, Mr. Much gave no
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