Intrinsic value of AstraZeneca ADR - AZN

Previous Close

$33.93

  Intrinsic Value

$26.66

stock screener

  Rating & Target

sell

-21%

Previous close

$33.93

 
Intrinsic value

$26.66

 
Up/down potential

-21%

 
Rating

sell

We calculate the intrinsic value of AZN 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -6.90
  9.40
  8.96
  8.56
  8.21
  7.89
  7.60
  7.34
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
Revenue, $m
  23,002
  25,164
  27,419
  29,767
  32,210
  34,751
  37,391
  40,135
  42,986
  45,950
  49,031
  52,234
  55,567
  59,036
  62,648
  66,411
  70,333
  74,423
  78,691
  83,145
  87,796
  92,656
  97,735
  103,045
  108,599
  114,410
  120,492
  126,859
  133,527
  140,511
  147,827
Variable operating expenses, $m
 
  20,852
  22,616
  24,453
  26,364
  28,352
  30,417
  32,564
  34,795
  37,113
  39,523
  40,864
  43,471
  46,185
  49,011
  51,955
  55,023
  58,223
  61,561
  65,046
  68,685
  72,486
  76,460
  80,614
  84,959
  89,505
  94,263
  99,244
  104,460
  109,924
  115,648
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
  18,100
  20,852
  22,616
  24,453
  26,364
  28,352
  30,417
  32,564
  34,795
  37,113
  39,523
  40,864
  43,471
  46,185
  49,011
  51,955
  55,023
  58,223
  61,561
  65,046
  68,685
  72,486
  76,460
  80,614
  84,959
  89,505
  94,263
  99,244
  104,460
  109,924
  115,648
Operating income, $m
  4,902
  4,312
  4,803
  5,314
  5,846
  6,399
  6,974
  7,571
  8,192
  8,837
  9,507
  11,370
  12,096
  12,851
  13,637
  14,457
  15,310
  16,201
  17,130
  18,099
  19,112
  20,170
  21,275
  22,431
  23,640
  24,905
  26,229
  27,615
  29,066
  30,587
  32,179
EBITDA, $m
  7,259
  7,365
  8,025
  8,712
  9,427
  10,171
  10,944
  11,747
  12,581
  13,449
  14,350
  15,288
  16,264
  17,279
  18,336
  19,437
  20,585
  21,782
  23,031
  24,335
  25,696
  27,119
  28,605
  30,159
  31,785
  33,486
  35,266
  37,130
  39,081
  41,125
  43,266
Interest expense (income), $m
  677
  609
  789
  976
  1,170
  1,373
  1,583
  1,802
  2,029
  2,266
  2,511
  2,766
  3,032
  3,308
  3,596
  3,895
  4,207
  4,532
  4,871
  5,224
  5,593
  5,979
  6,381
  6,802
  7,242
  7,702
  8,184
  8,688
  9,216
  9,768
  10,347
Earnings before tax, $m
  3,552
  3,703
  4,014
  4,338
  4,676
  5,026
  5,390
  5,769
  6,162
  6,571
  6,996
  8,604
  9,064
  9,543
  10,042
  10,562
  11,104
  11,669
  12,259
  12,875
  13,518
  14,191
  14,894
  15,629
  16,398
  17,203
  18,045
  18,927
  19,851
  20,819
  21,833
Tax expense, $m
  146
  1,000
  1,084
  1,171
  1,262
  1,357
  1,455
  1,558
  1,664
  1,774
  1,889
  2,323
  2,447
  2,577
  2,711
  2,852
  2,998
  3,151
  3,310
  3,476
  3,650
  3,832
  4,021
  4,220
  4,427
  4,645
  4,872
  5,110
  5,360
  5,621
  5,895
Net income, $m
  3,499
  2,703
  2,930
  3,167
  3,413
  3,669
  3,935
  4,211
  4,498
  4,797
  5,107
  6,281
  6,617
  6,966
  7,331
  7,710
  8,106
  8,518
  8,949
  9,399
  9,868
  10,359
  10,872
  11,409
  11,970
  12,558
  13,173
  13,817
  14,491
  15,198
  15,938

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  5,902
  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
  62,526
  61,981
  67,534
  73,318
  79,336
  85,593
  92,096
  98,854
  105,877
  113,177
  120,765
  128,656
  136,865
  145,409
  154,306
  163,574
  173,235
  183,309
  193,820
  204,791
  216,247
  228,217
  240,726
  253,806
  267,486
  281,799
  296,779
  312,461
  328,884
  346,085
  364,107
Adjusted assets (=assets-cash), $m
  56,624
  61,981
  67,534
  73,318
  79,336
  85,593
  92,096
  98,854
  105,877
  113,177
  120,765
  128,656
  136,865
  145,409
  154,306
  163,574
  173,235
  183,309
  193,820
  204,791
  216,247
  228,217
  240,726
  253,806
  267,486
  281,799
  296,779
  312,461
  328,884
  346,085
  364,107
Revenue / Adjusted assets
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
  0.406
Average production assets, $m
  31,747
  34,727
  37,838
  41,079
  44,450
  47,956
  51,600
  55,386
  59,321
  63,411
  67,662
  72,083
  76,683
  81,470
  86,454
  91,647
  97,060
  102,704
  108,593
  114,740
  121,159
  127,865
  134,874
  142,202
  149,867
  157,886
  166,279
  175,066
  184,267
  193,905
  204,002
Working capital, $m
  -1,994
  -6,115
  -6,663
  -7,233
  -7,827
  -8,444
  -9,086
  -9,753
  -10,446
  -11,166
  -11,914
  -12,693
  -13,503
  -14,346
  -15,224
  -16,138
  -17,091
  -18,085
  -19,122
  -20,204
  -21,335
  -22,515
  -23,750
  -25,040
  -26,390
  -27,802
  -29,280
  -30,827
  -32,447
  -34,144
  -35,922
Total debt, $m
  16,808
  18,783
  23,231
  27,864
  32,684
  37,696
  42,905
  48,318
  53,944
  59,791
  65,869
  72,189
  78,765
  85,609
  92,735
  100,159
  107,897
  115,967
  124,386
  133,173
  142,350
  151,937
  161,958
  172,434
  183,392
  194,857
  206,856
  219,418
  232,572
  246,350
  260,786
Total liabilities, $m
  47,672
  49,647
  54,095
  58,728
  63,548
  68,560
  73,769
  79,182
  84,808
  90,655
  96,733
  103,053
  109,629
  116,473
  123,599
  131,023
  138,761
  146,831
  155,250
  164,037
  173,214
  182,801
  192,822
  203,298
  214,256
  225,721
  237,720
  250,282
  263,436
  277,214
  291,650
Total equity, $m
  14,854
  12,334
  13,439
  14,590
  15,788
  17,033
  18,327
  19,672
  21,070
  22,522
  24,032
  25,603
  27,236
  28,936
  30,707
  32,551
  34,474
  36,479
  38,570
  40,753
  43,033
  45,415
  47,905
  50,507
  53,230
  56,078
  59,059
  62,180
  65,448
  68,871
  72,457
Total liabilities and equity, $m
  62,526
  61,981
  67,534
  73,318
  79,336
  85,593
  92,096
  98,854
  105,878
  113,177
  120,765
  128,656
  136,865
  145,409
  154,306
  163,574
  173,235
  183,310
  193,820
  204,790
  216,247
  228,216
  240,727
  253,805
  267,486
  281,799
  296,779
  312,462
  328,884
  346,085
  364,107
Debt-to-equity ratio
  1.132
  1.520
  1.730
  1.910
  2.070
  2.210
  2.340
  2.460
  2.560
  2.650
  2.740
  2.820
  2.890
  2.960
  3.020
  3.080
  3.130
  3.180
  3.220
  3.270
  3.310
  3.350
  3.380
  3.410
  3.450
  3.470
  3.500
  3.530
  3.550
  3.580
  3.600
Adjusted equity ratio
  0.160
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199
  0.199

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,499
  2,703
  2,930
  3,167
  3,413
  3,669
  3,935
  4,211
  4,498
  4,797
  5,107
  6,281
  6,617
  6,966
  7,331
  7,710
  8,106
  8,518
  8,949
  9,399
  9,868
  10,359
  10,872
  11,409
  11,970
  12,558
  13,173
  13,817
  14,491
  15,198
  15,938
Depreciation, amort., depletion, $m
  2,357
  3,053
  3,222
  3,398
  3,582
  3,772
  3,970
  4,176
  4,390
  4,612
  4,843
  3,918
  4,168
  4,428
  4,699
  4,981
  5,275
  5,582
  5,902
  6,236
  6,585
  6,949
  7,330
  7,728
  8,145
  8,581
  9,037
  9,514
  10,015
  10,538
  11,087
Funds from operations, $m
  3,982
  5,756
  6,152
  6,565
  6,995
  7,441
  7,905
  8,387
  8,888
  9,409
  9,950
  10,198
  10,784
  11,394
  12,029
  12,691
  13,381
  14,100
  14,851
  15,635
  16,453
  17,309
  18,203
  19,137
  20,115
  21,139
  22,210
  23,331
  24,506
  25,736
  27,025
Change in working capital, $m
  -163
  -525
  -548
  -571
  -594
  -617
  -642
  -667
  -693
  -720
  -749
  -779
  -810
  -843
  -878
  -914
  -953
  -994
  -1,037
  -1,082
  -1,130
  -1,181
  -1,234
  -1,290
  -1,350
  -1,412
  -1,478
  -1,547
  -1,620
  -1,697
  -1,778
Cash from operations, $m
  4,145
  6,282
  6,700
  7,136
  7,588
  8,058
  8,547
  9,054
  9,581
  10,129
  10,699
  10,977
  11,594
  12,237
  12,907
  13,605
  14,334
  15,094
  15,888
  16,717
  17,584
  18,489
  19,437
  20,428
  21,465
  22,551
  23,688
  24,878
  26,126
  27,433
  28,803
Maintenance CAPEX, $m
  0
  -1,725
  -1,887
  -2,056
  -2,233
  -2,416
  -2,606
  -2,804
  -3,010
  -3,224
  -3,446
  -3,677
  -3,918
  -4,168
  -4,428
  -4,699
  -4,981
  -5,275
  -5,582
  -5,902
  -6,236
  -6,585
  -6,949
  -7,330
  -7,728
  -8,145
  -8,581
  -9,037
  -9,514
  -10,015
  -10,538
New CAPEX, $m
  -2,314
  -2,980
  -3,112
  -3,240
  -3,372
  -3,506
  -3,644
  -3,787
  -3,935
  -4,090
  -4,251
  -4,421
  -4,599
  -4,787
  -4,985
  -5,193
  -5,413
  -5,644
  -5,889
  -6,147
  -6,419
  -6,706
  -7,009
  -7,328
  -7,665
  -8,019
  -8,393
  -8,787
  -9,201
  -9,638
  -10,097
Cash from investing activities, $m
  -3,969
  -4,705
  -4,999
  -5,296
  -5,605
  -5,922
  -6,250
  -6,591
  -6,945
  -7,314
  -7,697
  -8,098
  -8,517
  -8,955
  -9,413
  -9,892
  -10,394
  -10,919
  -11,471
  -12,049
  -12,655
  -13,291
  -13,958
  -14,658
  -15,393
  -16,164
  -16,974
  -17,824
  -18,715
  -19,653
  -20,635
Free cash flow, $m
  176
  1,576
  1,701
  1,839
  1,984
  2,137
  2,297
  2,463
  2,636
  2,815
  3,001
  2,879
  3,077
  3,282
  3,495
  3,714
  3,940
  4,175
  4,417
  4,668
  4,929
  5,199
  5,479
  5,770
  6,072
  6,387
  6,714
  7,055
  7,410
  7,781
  8,168
Issuance/(repayment) of debt, $m
  2,172
  4,282
  4,448
  4,633
  4,820
  5,012
  5,209
  5,413
  5,626
  5,847
  6,078
  6,321
  6,576
  6,844
  7,126
  7,424
  7,738
  8,069
  8,419
  8,788
  9,177
  9,587
  10,020
  10,477
  10,958
  11,465
  11,999
  12,562
  13,154
  13,778
  14,435
Issuance/(repurchase) of shares, $m
  47
  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  
  2,237
  4,282
  4,448
  4,633
  4,820
  5,012
  5,209
  5,413
  5,626
  5,847
  6,078
  6,321
  6,576
  6,844
  7,126
  7,424
  7,738
  8,069
  8,419
  8,788
  9,177
  9,587
  10,020
  10,477
  10,958
  11,465
  11,999
  12,562
  13,154
  13,778
  14,435
Total cash flow (excl. dividends), $m
  2,434
  5,858
  6,150
  6,472
  6,804
  7,149
  7,506
  7,876
  8,262
  8,662
  9,079
  9,199
  9,653
  10,126
  10,621
  11,138
  11,678
  12,244
  12,836
  13,456
  14,106
  14,786
  15,499
  16,246
  17,030
  17,851
  18,713
  19,617
  20,565
  21,559
  22,603
Retained Cash Flow (-), $m
  3,636
  -1,075
  -1,105
  -1,151
  -1,198
  -1,245
  -1,294
  -1,345
  -1,398
  -1,453
  -1,510
  -1,570
  -1,634
  -1,700
  -1,770
  -1,844
  -1,922
  -2,005
  -2,092
  -2,183
  -2,280
  -2,382
  -2,489
  -2,603
  -2,722
  -2,848
  -2,981
  -3,121
  -3,268
  -3,423
  -3,586
Prev. year cash balance distribution, $m
 
  3,595
  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
 
  8,378
  5,045
  5,321
  5,607
  5,904
  6,212
  6,532
  6,864
  7,210
  7,569
  7,629
  8,019
  8,426
  8,850
  9,293
  9,756
  10,239
  10,745
  11,273
  11,826
  12,404
  13,009
  13,643
  14,307
  15,003
  15,732
  16,496
  17,297
  18,136
  19,016
Discount rate, %
 
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
 
  7,933
  4,500
  4,445
  4,361
  4,247
  4,105
  3,936
  3,742
  3,525
  3,290
  2,920
  2,676
  2,424
  2,171
  1,919
  1,675
  1,441
  1,222
  1,020
  838
  676
  536
  416
  317
  236
  172
  122
  85
  57
  38
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

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.

FINANCIAL RATIOS  of  AstraZeneca ADR (AZN)

Valuation Ratios
P/E Ratio 12.3
Price to Sales 1.9
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 10.4
Price to Free Cash Flow 23.4
Growth Rates
Sales Growth Rate -6.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -17%
Cap. Spend. - 3 Yr. Gr. Rate -12.9%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 97.6%
Total Debt to Equity 113.2%
Interest Coverage 6
Management Effectiveness
Return On Assets 6.8%
Ret/ On Assets - 3 Yr. Avg. 5.1%
Return On Total Capital 10.7%
Ret/ On T. Cap. - 3 Yr. Avg. 7.8%
Return On Equity 21%
Return On Equity - 3 Yr. Avg. 13.9%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 82.6%
Gross Margin - 3 Yr. Avg. 81.1%
EBITDA Margin 28.6%
EBITDA Margin - 3 Yr. Avg. 26.1%
Operating Margin 21.3%
Oper. Margin - 3 Yr. Avg. 15.3%
Pre-Tax Margin 15.4%
Pre-Tax Margin - 3 Yr. Avg. 10.9%
Net Profit Margin 15.2%
Net Profit Margin - 3 Yr. Avg. 10.4%
Effective Tax Rate 4.1%
Eff/ Tax Rate - 3 Yr. Avg. 4.3%
Payout Ratio 101.8%

AZN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AZN stock intrinsic value calculation we used $23002 million for the last fiscal year's total revenue generated by AstraZeneca ADR. The default revenue input number comes from 2016 income statement of AstraZeneca 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 AZN stock valuation model: a) initial revenue growth rate of 9.4% 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 5.6%, whose default value for AZN is calculated based on our internal credit rating of AstraZeneca 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 AstraZeneca 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 AZN stock the variable cost ratio is equal to 83.3%.

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 AZN 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 4.2% for AstraZeneca ADR.

Corporate tax rate of 27% is the nominal tax rate for AstraZeneca 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 AZN 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 AZN are equal to 138%.

Life of production assets of 18.4 years is the average useful life of capital assets used in AstraZeneca 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 AZN is equal to -24.3%. 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 - $14854 million for AstraZeneca 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 2442.65 million for AstraZeneca 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 AstraZeneca ADR at the current share price and the inputted number of shares is $82.9 billion.

RELATED COMPANIES Price Int.Val. Rating
PFE Pfizer 36.26 28.29  sell
ABBV AbbVie 118.60 30.60  str.sell
TEVA Teva Pharmaceu 20.90 42.97  str.buy
GSK GlaxoSmithKlin 37.70 42.07  hold
CELG Celgene 95.26 35.78  str.sell
LLY Eli Lilly 78.97 111.38  buy
MRK Merck&Co 56.29 30.23  sell

COMPANY NEWS

▶ 3 High-Yield Stocks Still Worth Buying   [Feb-19-18 07:46PM  Motley Fool]
▶ [$$] AstraZeneca: hoist the sales   [12:29AM  Financial Times]
▶ Is AstraZeneca PLC (LON:AZN) An Attractive Dividend Stock?   [Feb-03-18 02:39AM  Simply Wall St.]
▶ AstraZeneca's Lynparza Now 'King' Of Its Class Triumphing Over Tesaro   [Feb-02-18 04:12PM  Investor's Business Daily]
▶ Astrazeneca beats 4Q profit forecasts   [06:23AM  Associated Press]
▶ AstraZeneca reports boost in cancer drug sales   [05:01AM  Associated Press]
▶ Nektars Deals: AstraZeneca, Amgen, Bayer   [Jan-23-18 02:40PM  Market Realist]
▶ Top Picks For Pharma And Biotech Dividend Rockstars   [Jan-20-18 03:02AM  Simply Wall St.]
▶ Dow's Merck Does An About-Face, Releases Cancer Trial Results   [Jan-16-18 04:14PM  Investor's Business Daily]
▶ US OKs 1st drug aimed at women with inherited breast cancer   [Jan-12-18 02:49PM  Associated Press]
▶ Mylans Valuation in January 2018   [Jan-10-18 12:03PM  Market Realist]
▶ How Did Novo Nordisks Victoza and Saxendra Perform in 3Q17?   [Jan-05-18 09:05AM  Market Realist]
▶ Top Analyst Reports for Apple, Mastercard & 3M   [Jan-03-18 02:12PM  Zacks]
▶ Biotech Dives After Analyst Slashes Expectations For Cancer Drug   [Jan-02-18 04:21PM  Investor's Business Daily]
▶ These 2 European Pharmas Grabbed Upgrades Ahead Of 2018 News   [Dec-29-17 04:20PM  Investor's Business Daily]
▶ Heres Why Pfizer Inc. Stock Is a Great Tax Plan Play   [Dec-26-17 11:13AM  InvestorPlace]
▶ What Analysts Recommend for AstraZeneca in December 2017   [Dec-25-17 10:30AM  Market Realist]
▶ What Analysts Predict for AstraZeneca   [09:00AM  Market Realist]
▶ How AstraZenecas CVMD Products Performed in 3Q17   [Dec-22-17 10:30AM  Market Realist]
▶ How AstraZenecas Revenues Trended in 3Q17   [07:33AM  Market Realist]
▶ 3 Dividend Stocks That Pay You More Than IBM Does   [Dec-20-17 06:00PM  Motley Fool]
Financial statements of AZN
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

ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2018. All rigths reserved.