Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 118

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 118
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 based on Morgan Stanley’s professional judgment and experience).

To calculate the implied equity value from the discounted cash flow analysis, Morgan Stanley then added the estimated amount of TrueCar’s cash as of September 30, 2025, as set forth in the Management Case Projections. To calculate the implied per share equity value, Morgan Stanley then divided the implied equity value by the number of fully diluted outstanding shares of Common Stock as of September 30, 2025, as provided by the management of TrueCar and calculated using the treasury stock method. Using the Management Case Projections, this analysis indicated a range of implied equity values per share of Common Stock of $2.35 to $2.80, rounded to the nearest $0.05.

Other Information

Morgan Stanley observed additional factors that were not considered part of Morgan Stanley’s financial analysis with respect to its opinion but were noted as reference data for the Board, including the following information described under the sections entitled “— Historical Trading Range”, “— Broker Price Targets” and “— Precedent Premiums Paid Analysis”.

Historical Trading Range

For reference only, Morgan Stanley reviewed the historical trading data of shares of Common Stock for the 52-week period ending October 13, 2025, and noted that the highest intraday trading price per share of Common Stock was $4.62 and the lowest intraday trading price per share of Common Stock was $1.05 during such period.

Broker Price Targets

For reference only, Morgan Stanley reviewed and analyzed future public market trading price targets for shares of Common Stock prepared and published by four brokers. These forward targets reflected each broker’s estimate of the 12-month future public market trading price of shares of Common Stock. The range of undiscounted broker price targets was $2.00 to $3.25 per share of Common Stock. Morgan Stanley then discounted the range of broker price targets at a discount rate of 23.0%, which was selected by Morgan Stanley based on TrueCar’s estimated cost of equity (estimated using the capital asset pricing model method and based on Morgan Stanley’s professional judgment and experience), to arrive at a range of implied equity values per share of Common Stock of $1.63 to $2.64.

The public market trading price targets published by equity research analysts do not necessarily reflect current market trading prices for shares of Common Stock, and these estimates are subject to uncertainties, including the future financial performance of TrueCar and future financial market conditions.

Precedent Premiums Paid Analysis

For reference only,