Company: TRUE
Filing Date: 2025-11-13
Form Type: PREM14A
Source: 0001104659-25-111498
Chunk: 116

Company: TrueCar, Inc.
Filing Date: 2025-11-13
Form: PREM14A
Chunk 116
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 | 5.0x – 10.0x    | ​ | ​ | $1.25 – $1.45         | ​ |

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TABLE OF CONTENTS

No company utilized in the selected comparable company analysis is identical to TrueCar. In evaluating comparable companies, Morgan Stanley made judgments and assumptions with regard to industry performance, general business, economic, market and financial conditions and other matters, many of which are beyond the control of TrueCar, such as the impact of competition on the businesses of TrueCar and the industry generally, industry growth and the absence of any adverse material change in the financial condition and prospects of TrueCar or the industry or in the financial markets in general. Mathematical analysis (such as determining the average or median) is not in itself a meaningful method of using comparable company data. Discounted Equity Value Analysis Morgan Stanley performed a discounted equity value analysis, which is designed to provide insight into the potential future equity value of a company as a function of the company’s estimated future earnings. The resulting equity value is subsequently discounted to arrive at an estimate of the implied present value for such company’s potential future equity value. To calculate the discounted equity values for TrueCar, Morgan Stanley utilized the revenue and Adj. EBITDA estimates from the Management Case Projections and the TrueCar Street Consensus Projections for fiscal year 2027. Based upon the application of its professional judgment and experience, Morgan Stanley then applied a range of multiplies of AV to revenue (“ AV/Revenue ”) of 0.5x – 1.0x to TrueCar’s estimated next twelve months (“ NTM ”) revenue and AV/NTM Adj. EBITDA multiples of 5.0x – 10.0x to TrueCar’s estimated NTM Adj. EBITDA to determine a range of implied aggregate values of TrueCar as of December 31, 2026. Morgan Stanley then calculated a range of implied equity values as of such date by adding the amount of TrueCar’s projected cash at December 31, 2026, as reflected in the Management Case Projections and the TrueCar Street Consensus Projections. Morgan Stanley then divided this range of implied equity values by the number of fully diluted shares of Common Stock as of such date, as provided by the management of TrueCar. Morgan Stanley then discounted this range of per share equity values to September 30, 2025, at a discount rate of 23.0%, which rate was