Solid Convex Update, FRE Remains Weak

Research evidence excerpt

Solid Convex Update, FRE Remains Weak

TD Cowen Onex Corporation

Global Research May 15, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Asset Managers

Our valuation methodology is primarily based on 4QF EV/EBITDA multiple. We apply multiples

based on our expectations for organic growth, scale, and competitive positioning. We factor in

historical and current multiples from the company's, and peers', when establishing our target

price multiples. In several cases we apply a SOTP approach to capture the value of individual

segments, or significant balance sheet holdings. We may also use a DCF analysis to value a

more longer-term earnings stream.

Mortgage Companies

Our valuation methodology is primarily based on 4QF P/B or P/E multiples. We apply multiples

based on our expectations for loan growth, earnings growth, capital returns, credit risk, and

access to funding. We factor in historical and current multiples from the company's, and peers',

when establishing our target price multiples. For some names where dividend returns are a

key component of the investment thesis, we apply a dividend yield spread based on expected

dividend income (base and special) and interest rates.

Diversified Financials

Our valuation methodology is primarily based on 4QF multiple on EPS or EBITDA. We apply

multiples based on our expectations for organic revenue and earnings growth, capital returns,

access to funding, and execution against guidance. We factor in historical and current

multiples from the company's, and peers', when establishing our target price multiples. For

some names we also factor in a projected discount to NAV in deriving our target price.

Investment Risks

Key risks to our target prices include: 1) meaningful declines in equity markets; 2) significant net