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  "docSlug": "b11f53a9759d",
  "documentTitle": "ADT Corporation (ADT)",
  "authorId": "11_Corvex",
  "authorName": "Keith Meister",
  "documentKindSlug": "conference-presentation",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2012-10-24 00:00:00",
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  "pageNumber": 13,
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  "notes": "The slide argues that ADT's cash flow profile is similar to REITs and should be valued using AFFO multiples.",
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      "kind": "callout",
      "text": "Steady-state free cash flow concept, which debt investors have become comfortable with, is essentially the same as AFFO",
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      "kind": "list",
      "text": "ADT's business model creates an annuitized stream of cash flows. We think about the stability of these cash flows similarly to REITs, utilities, MLPs, and best-in-class consumer staples companies. Investors have gotten comfortable valuing REITs and other capital intensive industries on the basis of free cash flow after maintenance capex, and then applying a multiple based on growth opportunities and return on investment. Steady-state free cash flow concept, which debt investors have become comfortable with, is essentially the same as AFFO",
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      "text": "AFFO Multiple: $83",
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      "text": "Levered Steady-State Free Cash Flow / AFFO Multiples. ADT @ 3.0x 9x, ADT Current 12x, MLPs 15x, Staples 17x, REITs 22x. Price @ Multiple: $61, $67, $83",
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