OREGON STATE |"Investment"Group ANALYSTS’ GUIDE Taking'investing'out'of'the'classroom'and'into'the'real'world'Oregon'State'University'200'Bexell'Hall'Corvallis,'Oregon'97331'541‐737‐2551'|'Fax:'541‐737‐6023'Oregon State Investment Group Analyst Guide www.OregonStateIG.com TTTaaabbbllleee ooofff CCCooonnnttteeennntttsss Letter from the President......................................................................................... 1 Code of Ethics........................................................................................................... 2 Organizational Structure .......................................................................................... 4 Presentation Guidelines ........................................................................................... 7 Presentation Format ................................................................................................. 8 Discounted Cash Flow Model................................................................................. 9 Relative Valuation Model....................................................................................... 13 EBITDA Multiple Valuation................................................................................. 15 Yearly Schedule ....................................................................................................... 17Oregon'State'Investment'Group'Analyst'Guide'www.OregonStateIG.com LLLeeetttttteeerrr fffrrrooommm ttthhheee PPPrrreeesssiiidddeeennnttt Dear Members, Alumni and Friends: As an analyst in the Oregon State Investment Group, a culture of excellence, passion and dedication is at the heart of everything we do. Coming into a culture of high-achieving students in a competitive university environment, the expectations to perform are high. The year of 2007-2008, can be characterized by nothing else than the word “hunger.” The creation of this group has been a dream of mine that has developed over the past four years and has culminated in its present form. Our year began with the excitement of recruiting with our first annual analyst class as a newly formed student organization. With that our year has been marked by many successes that have set the foundation of the group as it is passed down to generations of Oregon State students. A few of the most notable successes for the year have been: outperforming our S&P 500 benchmark by over ten percent points, competing in the RISE Conference portfolio competition, in June visiting the world’s top investment banks in their New York City offices, taking under management a million dollar portfolio for OSU Foundation, and having created an organizational structure that can ensure the sustainability of our group’s bright future. The vast amount of progress that we have accomplished in just one short year is a true testament to outstanding quality of men and women that are involved with our organization. As I leave Oregon State and finish my term of leadership in the Investment Group, I will always hold a special place in my heart for this school and organization. I will always remember the passion I see in the eyes of every analyst. I will always remember the hunger our members have towards the never ending pursuit of knowledge in and outside the classroom. Mostly, I will always remember the excellence we spur each other towards, while still keeping an intimate family environment of love and respect that bonds us together. We are truly uncommon, in a common world. Going forward, I see the future of the Oregon State Investment Group not only as being the face of the College of Business, Oregon State University, but also being distinguished on a national level as one of the premier investment group’s in the country. Hunger, passion and dedication are the heartbeat of this organization and will propel us towards our future achievements. We will be known for striving for excellence and continual improvement. The Oregon State Investment Group can be summed up by saying, “if we’re not growing, we’re dying!” Go Beavs! Justin Shanks Founder and President, 2007-08Oregon State Investment Group Analyst Guide www.OregonStateIG.com CCCooodddeee ooofff EEEttthhhiiicccsss Our code of ethics applies at both the organizational level and individual level. As one of the top organizations in the College of Business we are a role model for others to follow. As an analyst in the Oregon State Investment Group you are held to the highest standards in ethical conduct. Outlined below are our four core values: Accountability, Collaboration, Integrity, and Professionalism. Our Core values are underlined by one key principle: Discipline. We want to provide an equal opportunity for learning for all of our analysts. This requires self-discipline from all of our analysts to meet all deadlines and attend all meetings. Jim Collins said it perfectly in his book, “Good to Great;” “When you have disciplined people, you don’t need hierarchy. When you have disciplined thought, you don’t need bureaucracy. When you have disciplined action you don’t need excessive controls” " PPPrrrooofffeeessssssiiiooonnnaaallliiisssmmm AAAccccccooouuunnntttaaabbbiiillliiitttyyy CCCooollllllaaabbbooorrraaatttiiiooonnn IIInnnttteeegggrrriiitttyyy DDDiiisssccciiipppllliiinnneeeOregon'State'Investment'Group'Analyst'Guide'www.OregonStateIG.com Accountability Collectively, we are accountable for our investment decisions and investment strategy. We are to act in the best interest of our clients by maximizing their wealth through the utilization of proper diversification and portfolio management techniques. Individually, you are accountable for being an active member of the group. You are held accountable for your actions and how they reflect on the group as a whole. This includes our formal and informal meetings, as well as any trips and tours we go on as a group. As an Investment Group Analyst you are representing the best and the brightest of the College of Business and Oregon State University. 'Collaboration As a group we collaborate with other organizations and clubs here at Oregon