1. Nelson – BUS 4922 – Valuation Project – Page I Business Description: GPRO develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing, and enjoying engaging content. Known for their high-definition personal cameras, GPRO is often associated with extreme-action video photography. As of 2014, GPRO is a publically traded company. News (ReferenceUSA)  The coalition for drones (18-24 months)  Yi Action Camera – a top 5 gadget at Mobile World Congress  President, Tony Bates, new eBay board member Industry: Consumer Goods Sector: Electronics Founded: 2004 Headquartered: San Mateo, CA Key Financials12/31/14 Revenue1,394,205,000 Operating Profit187,000,000 Net Income128,088,000 Assets917,700,000 Outstanding shares129,100,000 Earnings per share0.99 Dividend per sharen/a Capital Structure* % Debt128,240,28020% Equity512,961,12080% D/E Ratio0.25 DuPont Analysis Profit Margin0.09 Asset Turnover1.52 Equity Multiplier1.79 ROE3.4% Market Pricing Price per share$40.40 Market Cap5,220,000,000 Price/Earnings$40.72 Price/Sales3.74 Price/Book10.17 Cost of Capital Beta0.61 Ke5.55% ROE3.4% Credit RatingA- Kdt2.5% WACC4.94% ROI1.29% *Since debt for 2014 is zero, a stable capital structure is estimated. Kdt and WACC are therefore estimated figures for 2015

2. Relative Valuation Methods CompanyMarket Cap $BP/EPEGP/SalesP/Book GoPro (GPRO) $5.22040.71.633.7410.17 Sony (SNE) $30.74042.30.760.481.49 Eastman Kodiak (KODK) $0.8180.680.030.331.22 Garmin (GRMN) $9.21025.653.903.202.71 Orbotech Lmt. (ORBK) $0.68119.700.801.171.37 Parrot SA (PARRO.PA) $0.25989.215.951.051.41 Hewlett-Packard Co. (HPQ) $58.53012.414.260.542.23 Digital Ally Inc. (DGLY) $0.053-2.67-0.172.315.26 Median3.019122.71.631.111.86 Range*0.053 - 58.530.68 - 89.210.03 - 5.950.33 - 3.21.22 - 5.26 Nelson – BUS 4922 – Valuation Project – Page II P/EPEGP/SalesP/Book Base for GPRO0.9925%1.111.86 Estimated Multiples121.632.31.5 Relative Valution Estimate$5 B11.90.42.5532.79 *Negative P/E and PEG are not included because data is not valid and GPRO is not included P/S Multiple is used in final valuation

3. Nelson – BUS 4922 – Valuation Project – Page III Intrinsic Valuation Methods, Summery Valuation & Recommendations Actual Forecast (in millions)12/31/1420152016201720182019 Revenue1,394.201,730.002,050.002,296.002,479.682,603.66 Gross Profit627.2136.8236.7409.6708.51225.8 Operating Expense1,207.201,448.641,680.421,848.461,996.342,096.16 EBIT187232.04269.172422.5014534.9815116.38 Tax Rate29%35% NOPAT132.4150.8175.01574.69447.79825.6 Total Capital111.0125.1641.2367.0374.1381.4 Change in Total Capital516.1-274.27.17.37.47.6 Free Cash Flow-383.7400.6124.3129.4134.8140.3 Return on Operating Capital1.191.010.210.370.380.39 ROI1.191.010.210.370.380.39 WACC4.94% Terminal Growth3% Terminal Value7449.296352 FCF + Terminal Value-383.7400.6124.3129.4134.87589.6 Value of operations $6,681.46 Add Short Term Investments 1.023 Less Debt 0 Intrinsic Value Estimation $6,682.49 Summary Relative Valuation ($M)3,559,405,365 Intrinsic Valuation ($M)6,994,600,000 Valuation estimate ($M)5,277,002,683 Fully-dilluted Shares129,100,000 Value per Share40.88 Current Price per Share$40.40 Value relative to Price1.18% At the current price, GoPro looks overvalued. GoPro is in a critical period where its next steps determine the fate of this company. GoPro should acquire some debt, diversify its products, and have a plan for the upcoming drone market. Investors are advised to revisit the stock in about 1 ½ years to make buy/sell decision. Recommendation: Hold

4. Sources Nelson – BUS 4922 – Valuation Project – Page IV SLIDE I FinancialsReference USA Analyst Recommendations BetaYahoo Finance: 0.66 NASDAQ: 0.55 MorningStar: 0.0 Google Finance: - Average: 0.61 Credit Rating (estimated)A- Spreads (Reuters)89bps NewsReference USA SLIDE II Comparables MarketWatch & NASDAQ Ratios (comparables) Yahoo Finance & Ref USA