Intrinsic value of America Movil Cl A ADR - AMOV

Previous Close

$18.08

  Intrinsic Value

$21.45

stock screener

  Rating & Target

hold

+19%

  Value-price divergence*

-152%

Previous close

$18.08

 
Intrinsic value

$21.45

 
Up/down potential

+19%

 
Rating

hold

 
Value-price divergence*

-152%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AMOV stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 60.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.14
  6.90
  6.71
  6.54
  6.39
  6.25
  6.12
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
Revenue, $m
  49,421
  52,831
  56,376
  60,062
  63,897
  67,889
  72,045
  76,375
  80,888
  85,593
  90,503
  95,628
  100,980
  106,570
  112,414
  118,523
  124,913
  131,598
  138,595
  145,920
  153,590
  161,625
  170,042
  178,862
  188,107
  197,797
  207,957
  218,610
  229,782
  241,499
  253,790
Variable operating expenses, $m
 
  44,430
  47,360
  50,406
  53,575
  56,873
  60,308
  63,886
  67,615
  71,504
  75,561
  79,022
  83,445
  88,065
  92,893
  97,942
  103,222
  108,746
  114,528
  120,581
  126,920
  133,559
  140,515
  147,803
  155,442
  163,450
  171,846
  180,649
  189,881
  199,564
  209,720
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  43,867
  44,430
  47,360
  50,406
  53,575
  56,873
  60,308
  63,886
  67,615
  71,504
  75,561
  79,022
  83,445
  88,065
  92,893
  97,942
  103,222
  108,746
  114,528
  120,581
  126,920
  133,559
  140,515
  147,803
  155,442
  163,450
  171,846
  180,649
  189,881
  199,564
  209,720
Operating income, $m
  5,554
  8,401
  9,016
  9,656
  10,322
  11,015
  11,737
  12,489
  13,273
  14,090
  14,942
  16,606
  17,535
  18,506
  19,520
  20,581
  21,691
  22,852
  24,067
  25,339
  26,671
  28,066
  29,527
  31,059
  32,664
  34,347
  36,111
  37,961
  39,901
  41,936
  44,070
EBITDA, $m
  13,079
  15,948
  17,018
  18,131
  19,289
  20,494
  21,748
  23,055
  24,418
  25,838
  27,320
  28,867
  30,483
  32,171
  33,935
  35,779
  37,708
  39,726
  41,838
  44,049
  46,365
  48,790
  51,331
  53,994
  56,784
  59,710
  62,777
  65,992
  69,365
  72,902
  76,612
Interest expense (income), $m
  1,628
  1,468
  1,666
  1,871
  2,085
  2,307
  2,538
  2,779
  3,029
  3,291
  3,563
  3,848
  4,145
  4,455
  4,778
  5,117
  5,471
  5,841
  6,228
  6,633
  7,058
  7,502
  7,967
  8,455
  8,966
  9,501
  10,063
  10,651
  11,268
  11,915
  12,594
Earnings before tax, $m
  1,190
  6,933
  7,351
  7,785
  8,238
  8,709
  9,199
  9,710
  10,243
  10,799
  11,379
  12,758
  13,390
  14,051
  14,742
  15,464
  16,220
  17,011
  17,839
  18,705
  19,613
  20,564
  21,560
  22,604
  23,698
  24,846
  26,049
  27,310
  28,633
  30,020
  31,476
Tax expense, $m
  578
  1,872
  1,985
  2,102
  2,224
  2,351
  2,484
  2,622
  2,766
  2,916
  3,072
  3,445
  3,615
  3,794
  3,980
  4,175
  4,379
  4,593
  4,816
  5,050
  5,295
  5,552
  5,821
  6,103
  6,399
  6,708
  7,033
  7,374
  7,731
  8,106
  8,499
Net income, $m
  438
  5,061
  5,366
  5,683
  6,014
  6,357
  6,715
  7,089
  7,478
  7,883
  8,307
  9,313
  9,775
  10,257
  10,762
  11,289
  11,841
  12,418
  13,022
  13,655
  14,317
  15,011
  15,739
  16,501
  17,300
  18,137
  19,015
  19,936
  20,902
  21,915
  22,977

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,956
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  76,762
  77,807
  83,028
  88,457
  94,105
  99,984
  106,105
  112,481
  119,127
  126,058
  133,289
  140,836
  148,718
  156,952
  165,558
  174,555
  183,966
  193,812
  204,116
  214,904
  226,201
  238,034
  250,430
  263,420
  277,035
  291,306
  306,269
  321,958
  338,412
  355,669
  373,771
Adjusted assets (=assets-cash), $m
  72,806
  77,807
  83,028
  88,457
  94,105
  99,984
  106,105
  112,481
  119,127
  126,058
  133,289
  140,836
  148,718
  156,952
  165,558
  174,555
  183,966
  193,812
  204,116
  214,904
  226,201
  238,034
  250,430
  263,420
  277,035
  291,306
  306,269
  321,958
  338,412
  355,669
  373,771
Revenue / Adjusted assets
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
Average production assets, $m
  39,313
  42,001
  44,819
  47,750
  50,799
  53,972
  57,276
  60,718
  64,306
  68,047
  71,950
  76,024
  80,279
  84,723
  89,369
  94,226
  99,306
  104,620
  110,183
  116,006
  122,104
  128,492
  135,183
  142,196
  149,545
  157,249
  165,326
  173,795
  182,677
  191,992
  201,763
Working capital, $m
  -6,490
  -6,710
  -7,160
  -7,628
  -8,115
  -8,622
  -9,150
  -9,700
  -10,273
  -10,870
  -11,494
  -12,145
  -12,824
  -13,534
  -14,277
  -15,052
  -15,864
  -16,713
  -17,602
  -18,532
  -19,506
  -20,526
  -21,595
  -22,716
  -23,890
  -25,120
  -26,410
  -27,763
  -29,182
  -30,670
  -32,231
Total debt, $m
  35,862
  36,210
  40,674
  45,316
  50,145
  55,171
  60,404
  65,856
  71,539
  77,465
  83,647
  90,100
  96,839
  103,879
  111,237
  118,930
  126,976
  135,394
  144,204
  153,428
  163,087
  173,204
  183,803
  194,909
  206,550
  218,752
  231,545
  244,959
  259,027
  273,782
  289,259
Total liabilities, $m
  66,177
  66,525
  70,989
  75,631
  80,460
  85,486
  90,719
  96,171
  101,854
  107,780
  113,962
  120,415
  127,154
  134,194
  141,552
  149,245
  157,291
  165,709
  174,519
  183,743
  193,402
  203,519
  214,118
  225,224
  236,865
  249,067
  261,860
  275,274
  289,342
  304,097
  319,574
Total equity, $m
  10,585
  11,282
  12,039
  12,826
  13,645
  14,498
  15,385
  16,310
  17,273
  18,278
  19,327
  20,421
  21,564
  22,758
  24,006
  25,310
  26,675
  28,103
  29,597
  31,161
  32,799
  34,515
  36,312
  38,196
  40,170
  42,239
  44,409
  46,684
  49,070
  51,572
  54,197
Total liabilities and equity, $m
  76,762
  77,807
  83,028
  88,457
  94,105
  99,984
  106,104
  112,481
  119,127
  126,058
  133,289
  140,836
  148,718
  156,952
  165,558
  174,555
  183,966
  193,812
  204,116
  214,904
  226,201
  238,034
  250,430
  263,420
  277,035
  291,306
  306,269
  321,958
  338,412
  355,669
  373,771
Debt-to-equity ratio
  3.388
  3.210
  3.380
  3.530
  3.670
  3.810
  3.930
  4.040
  4.140
  4.240
  4.330
  4.410
  4.490
  4.560
  4.630
  4.700
  4.760
  4.820
  4.870
  4.920
  4.970
  5.020
  5.060
  5.100
  5.140
  5.180
  5.210
  5.250
  5.280
  5.310
  5.340
Adjusted equity ratio
  0.091
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  438
  5,061
  5,366
  5,683
  6,014
  6,357
  6,715
  7,089
  7,478
  7,883
  8,307
  9,313
  9,775
  10,257
  10,762
  11,289
  11,841
  12,418
  13,022
  13,655
  14,317
  15,011
  15,739
  16,501
  17,300
  18,137
  19,015
  19,936
  20,902
  21,915
  22,977
Depreciation, amort., depletion, $m
  7,525
  7,548
  8,002
  8,475
  8,967
  9,478
  10,011
  10,567
  11,145
  11,749
  12,378
  12,262
  12,948
  13,665
  14,414
  15,198
  16,017
  16,874
  17,771
  18,711
  19,694
  20,724
  21,804
  22,935
  24,120
  25,363
  26,665
  28,031
  29,464
  30,966
  32,542
Funds from operations, $m
  11,288
  12,609
  13,368
  14,158
  14,980
  15,836
  16,727
  17,655
  18,623
  19,632
  20,685
  21,575
  22,723
  23,922
  25,176
  26,487
  27,858
  29,292
  30,794
  32,365
  34,012
  35,736
  37,543
  39,436
  41,420
  43,500
  45,681
  47,968
  50,366
  52,881
  55,520
Change in working capital, $m
  -659
  -433
  -450
  -468
  -487
  -507
  -528
  -550
  -573
  -598
  -624
  -651
  -680
  -710
  -742
  -776
  -812
  -849
  -889
  -930
  -974
  -1,020
  -1,069
  -1,120
  -1,174
  -1,231
  -1,290
  -1,353
  -1,419
  -1,488
  -1,561
Cash from operations, $m
  11,947
  13,042
  13,818
  14,626
  15,467
  16,343
  17,255
  18,205
  19,196
  20,229
  21,308
  22,226
  23,403
  24,632
  25,918
  27,262
  28,669
  30,141
  31,682
  33,296
  34,986
  36,756
  38,612
  40,556
  42,594
  44,731
  46,971
  49,321
  51,785
  54,370
  57,081
Maintenance CAPEX, $m
  0
  -6,341
  -6,774
  -7,229
  -7,702
  -8,193
  -8,705
  -9,238
  -9,793
  -10,372
  -10,975
  -11,605
  -12,262
  -12,948
  -13,665
  -14,414
  -15,198
  -16,017
  -16,874
  -17,771
  -18,711
  -19,694
  -20,724
  -21,804
  -22,935
  -24,120
  -25,363
  -26,665
  -28,031
  -29,464
  -30,966
New CAPEX, $m
  -7,854
  -2,688
  -2,818
  -2,931
  -3,049
  -3,173
  -3,304
  -3,442
  -3,588
  -3,741
  -3,903
  -4,074
  -4,254
  -4,445
  -4,645
  -4,857
  -5,080
  -5,315
  -5,563
  -5,823
  -6,098
  -6,387
  -6,692
  -7,012
  -7,349
  -7,704
  -8,077
  -8,469
  -8,882
  -9,315
  -9,771
Cash from investing activities, $m
  -7,650
  -9,029
  -9,592
  -10,160
  -10,751
  -11,366
  -12,009
  -12,680
  -13,381
  -14,113
  -14,878
  -15,679
  -16,516
  -17,393
  -18,310
  -19,271
  -20,278
  -21,332
  -22,437
  -23,594
  -24,809
  -26,081
  -27,416
  -28,816
  -30,284
  -31,824
  -33,440
  -35,134
  -36,913
  -38,779
  -40,737
Free cash flow, $m
  4,297
  4,013
  4,226
  4,467
  4,717
  4,976
  5,245
  5,525
  5,815
  6,116
  6,430
  6,547
  6,886
  7,239
  7,608
  7,991
  8,392
  8,809
  9,245
  9,701
  10,177
  10,675
  11,195
  11,740
  12,310
  12,907
  13,531
  14,186
  14,872
  15,590
  16,343
Issuance/(repayment) of debt, $m
  -3,110
  4,304
  4,464
  4,642
  4,829
  5,026
  5,233
  5,452
  5,683
  5,926
  6,182
  6,453
  6,739
  7,040
  7,358
  7,693
  8,046
  8,418
  8,811
  9,224
  9,659
  10,117
  10,599
  11,107
  11,640
  12,202
  12,793
  13,414
  14,068
  14,755
  15,477
Issuance/(repurchase) of shares, $m
  -356
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -4,907
  4,304
  4,464
  4,642
  4,829
  5,026
  5,233
  5,452
  5,683
  5,926
  6,182
  6,453
  6,739
  7,040
  7,358
  7,693
  8,046
  8,418
  8,811
  9,224
  9,659
  10,117
  10,599
  11,107
  11,640
  12,202
  12,793
  13,414
  14,068
  14,755
  15,477
Total cash flow (excl. dividends), $m
  -412
  8,317
  8,690
  9,109
  9,546
  10,002
  10,479
  10,977
  11,497
  12,042
  12,612
  13,000
  13,625
  14,279
  14,965
  15,684
  16,438
  17,228
  18,056
  18,925
  19,836
  20,792
  21,794
  22,846
  23,950
  25,109
  26,325
  27,600
  28,939
  30,345
  31,820
Retained Cash Flow (-), $m
  -4,896
  -697
  -757
  -787
  -819
  -852
  -888
  -925
  -964
  -1,005
  -1,048
  -1,094
  -1,143
  -1,194
  -1,248
  -1,305
  -1,365
  -1,428
  -1,494
  -1,564
  -1,638
  -1,716
  -1,797
  -1,884
  -1,974
  -2,069
  -2,170
  -2,275
  -2,386
  -2,502
  -2,625
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  7,620
  7,933
  8,322
  8,727
  9,150
  9,591
  10,052
  10,534
  11,037
  11,564
  11,906
  12,482
  13,086
  13,718
  14,379
  15,073
  15,800
  16,562
  17,360
  18,198
  19,076
  19,997
  20,963
  21,976
  23,039
  24,155
  25,325
  26,554
  27,843
  29,195
Discount rate, %
 
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.42
  17.24
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
  28.09
  29.49
  30.97
  32.52
PV of cash for distribution, $m
 
  7,062
  6,764
  6,477
  6,150
  5,785
  5,390
  4,970
  4,533
  4,087
  3,639
  3,144
  2,728
  2,332
  1,963
  1,626
  1,323
  1,057
  828
  636
  478
  351
  251
  176
  120
  79
  51
  32
  19
  11
  6
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

FINANCIAL RATIOS  of  America Movil Cl A ADR (AMOV)

Valuation Ratios
P/E Ratio 2609.5
Price to Sales 23.1
Price to Book 108
Price to Tangible Book
Price to Cash Flow 95.7
Price to Free Cash Flow 279.2
Growth Rates
Sales Growth Rate 9.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2.3%
Cap. Spend. - 3 Yr. Gr. Rate 4.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 299.3%
Total Debt to Equity 338.8%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.8%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 1%
Ret/ On T. Cap. - 3 Yr. Avg. 3.9%
Return On Equity 5.4%
Return On Equity - 3 Yr. Avg. 17.6%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 50.3%
Gross Margin - 3 Yr. Avg. 52.6%
EBITDA Margin 20.9%
EBITDA Margin - 3 Yr. Avg. 24.2%
Operating Margin 11.2%
Oper. Margin - 3 Yr. Avg. 15.2%
Pre-Tax Margin 2.4%
Pre-Tax Margin - 3 Yr. Avg. 6.3%
Net Profit Margin 0.9%
Net Profit Margin - 3 Yr. Avg. 3.4%
Effective Tax Rate 48.6%
Eff/ Tax Rate - 3 Yr. Avg. 42.7%
Payout Ratio 159.8%

AMOV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AMOV stock intrinsic value calculation we used $49421 million for the last fiscal year's total revenue generated by America Movil Cl A ADR. The default revenue input number comes from 2016 income statement of America Movil Cl A ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AMOV stock valuation model: a) initial revenue growth rate of 6.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.9%, whose default value for AMOV is calculated based on our internal credit rating of America Movil Cl A ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of America Movil Cl A ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AMOV stock the variable cost ratio is equal to 84.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AMOV stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.6% for America Movil Cl A ADR.

Corporate tax rate of 27% is the nominal tax rate for America Movil Cl A ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AMOV stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AMOV are equal to 79.5%.

Life of production assets of 6.2 years is the average useful life of capital assets used in America Movil Cl A ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AMOV is equal to -12.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10585 million for America Movil Cl A ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 3360.68 million for America Movil Cl A ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of America Movil Cl A ADR at the current share price and the inputted number of shares is $60.8 billion.

RELATED COMPANIES Price Int.Val. Rating
TEO Telecom Argent 31.69 69.66  str.buy
TEF Telefonica ADR 10.52 8.04  sell
T AT&T 35.71 38.33  hold
VIV Telefonica Bra 16.11 10.15  sell
TSU TIM Participac 19.22 19.04  hold
Financial statements of AMOV
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.