Company: HOUS
Filing Date: 2025-12-02
Form Type: DEFM14A
Source: 0001628280-25-054793
Chunk: 115

Company: Anywhere Real Estate Inc.
Filing Date: 2025-12-02
Form: DEFM14A
Chunk 115
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ed and outstanding cash is added to arrive at an equity value. The equity value is then divided by the number of fully diluted shares of common stock, in order to arrive at an implied equity value per share.

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Morgan Stanley calculated ranges of implied equity values per share of common stock, based on a discounted cash flow analysis utilizing the Anywhere Projections, extrapolated based upon the guidance and direction of Compass management.

The unlevered free cash flows for such periods were discounted to present value using a range of discount rates from 6.9% to 7.3%, which was derived by taking a sensitized range of Anywhere’s weighted average cost of capital determined utilizing the capital asset pricing model to calculate Anywhere’s cost of equity and utilizing Anywhere’s current weighted average interest rate on its current indebtedness and current tax rate to calculate Anywhere’s cost of debt.

Morgan Stanley then calculated a range of implied terminal aggregate values of Anywhere as of December 31, 2025 by applying a range of AV/EBITDA multiples of 8.3x to 11.3x to the forecasted EBITDA of Anywhere for the twelve months ending December 31, 2030, as extrapolated based upon the guidance and direction of Compass management. These analyses resulted in a range of implied terminal values of Anywhere as of December 31, 2029. The implied terminal enterprise value of Anywhere was then discounted to present value as of September 30, 2025 using a range of Anywhere’s weighted average cost of capital as the discount rates. This present value of the implied terminal enterprise value of Anywhere was then added to the implied present value of the unlevered free cash flows as described above, subtracting outstanding debt and non-controlling interests and adding outstanding cash as of September 30, 2025, and dividing by the number of fully diluted shares of common stock as of September 19, 2025, all as provided by Anywhere’s management. This analysis indicated an implied per share equity value reference range for Anywhere of $19.27 to $31.23.

Anywhere with Synergies

Morgan Stanley then conducted an additional DCF analysis designed to provide an implied value of Anywhere inclusive of the value of expected synergies from the transaction by calculating the present value of estimated future unlevered free cash flows and terminal value of Anywhere in the manner described above and adding annual net run-rate synergies