Company: TRUE
Filing Date: 2025-11-24
Form Type: DEFM14A
Source: 0001104659-25-115451
Chunk: 119

Company: TrueCar, Inc.
Filing Date: 2025-11-24
Form: DEFM14A
Chunk 119
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2025 through fiscal year 2029 contained in the Management Case Projections. For the purposes of this analysis, unlevered free cash flows were calculated as consolidated Adj. EBITDA less taxes and capital expenditures and plus or minus changes in net working capital and certain other adjustments.

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TABLE OF CONTENTS

Morgan Stanley calculated a range of terminal values for TrueCar based on a perpetuity growth rate range of 2.0% to 4.0% which was selected based on Morgan Stanley’s professional judgment and experience. The estimated unlevered free cash flows and the range of terminal values were then discounted to present value as of September 30, 2025 using mid-year discounting convention by applying a discount rate range of 21.0% to 25.0%, 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 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