Kosmos Energy Ltd.

KOS ·Energy, Oil & Gas E&P, United States

Basic DCF — Fair Value

For mature companies with a steady growth rate. Typically not a useful model for financial companies (banks, insurers, etc).

FCF per share ($) Market Price ($) Projection Years Discount Rate (%) CAGR (%)

Fair Value —

Market Value —

vs. Fair Value —

Formula: Fair Value = Average( Per-Share Figure × (1 + CAGR)ⁿ, for n = 1…Years ) ÷ Discount Rate

In the short run, the market is a voting machine but in the long run, it is a weighing machine.