The Global Valuation Group has produced a discounted cash flow model that is populated by both UBS analysts’ forecast information and
users’ assumptions. It produces a target share price based on these inputs and can be used, amongst other things, to derive implied market
assumptions (such as the implied medium-term growth rate). The model is split into three stages: stage 1, the explicit cash flows (per the
UBS analysts, although these can be overwritten); stage 2, the medium-term period (which uses the final explicit cash flow forecast and
user input assumptions); and stage 3, the terminal value (based on ROIC, growth and WACC assumptions). This document gives a brief
explanation of how the model works.