Based in North Palm Beach, Florida Bankrate (proposed RATE) is scheduling a $300 million IPO with a market capitalization of $1.5 billion at the price range mid-point of $15 for Friday June 17, 2011.

SUMMARY

35-year old company that provides financial rate information through its own web sites and through distribution agreements.

Was public for 10 years and then was taken private in August 2009, then loaded up with debt where the proceeds likely went out to the new owners as dividends.

VALUATION

	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
Annualizing March '11 qtr	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Bankrate (RATE)	$1,500	3.8	74	2.0	-12.0	20%

CONCLUSION

This is a mature Internet company where advertising generates most of the revenue, targeting a mature market.

Even though there is apparent demand for RATE pre-IPO, it seems that a P/E of 74 times annualized March 2011 quarter results leaves little room for error.

CONTENT DISTRIBUTION

. Owned and operated websites, online co-brands, and print partners. . RATE owns a network of content-rich, proprietary websites focused on specific vertical categories, including mortgages, deposits, insurance, credit cards and other personal finance categories.

RATE also develops and provides web services to over 75 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC and Bloomberg. In addition, RATE licenses editorial content to over 100 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times and The Boston Globe.

MAJOR SHAREHOLDER

Apax Holdinga advises the fund Ben Holders S. à r.l. which owns 88% pre-IPO http://www.apax.com/inside-apax/our-company/our-history.aspx Ben Holding S.à r.l. selling 10% of stock, which is over half of the selling shareholder’s stock

USE OF PROCEEDS

Shareholders intend to sell 7.5 million shares. RATE expects to sell 12.5 million shares to net $167 million. . $117 million to repay debt . $38 million for ‘advisory’ fees

Bankrate	RATE, C+, 7					Post IPO shares: 78mm
Financial web aggregator				March 3 mos '10	Mrch 3 mos '11
North Palm Beach, FL	2008	2009	2010	2010	2011	IPO Mkt
Revenues ($mm)	$166	$130	$300	$35	$99	Cap (mm)
Gross profit %	61%	58%	62%	57%	62%	$1,500
Operating income ($mm)	$33	-$44	$42	$0.6	$19	@$15
Operating income ($mm) %	20%	-31%	14%	2%	19%
Interest			$28	$9	$9
Interest % of operating inc			67%	1500%	51%
Net income (loss)	$20	-$43	$5	-$5	$5
Net income (loss) %	12%	-33%	2%	-15%	5%
Adj EBITDA	$58	$37	$93	$9	$31
Adj EBITDA % of revenue	35%	28%	31%	26%	31%
Source: June 6 S-1, page 10
Valuation Ratios	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
Annualizing March '11 qtr	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Bankrate (RATE)	$1,500	3.8	74	2.0	-12.0	20%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7