Intrinsic value of Bitauto Holdings ADR - BITA

Previous Close

$29.77

  Intrinsic Value

$87.73

stock screener

  Rating & Target

str. buy

+195%

Previous close

$29.77

 
Intrinsic value

$87.73

 
Up/down potential

+195%

 
Rating

str. buy

We calculate the intrinsic value of BITA 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 2.1

 

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, %
  35.77
  54.70
  49.73
  45.26
  41.23
  37.61
  34.35
  31.41
  28.77
  26.39
  24.25
  22.33
  20.60
  19.04
  17.63
  16.37
  15.23
  14.21
  13.29
  12.46
  11.71
  11.04
  10.44
  9.89
  9.40
  8.96
  8.57
  8.21
  7.89
  7.60
  7.34
Revenue, $m
  835
  1,292
  1,934
  2,809
  3,968
  5,460
  7,335
  9,640
  12,413
  15,690
  19,495
  23,848
  28,760
  34,235
  40,272
  46,864
  54,003
  61,676
  69,872
  78,578
  87,782
  97,476
  107,650
  118,301
  129,428
  141,030
  153,113
  165,686
  178,758
  192,346
  206,466
Variable operating expenses, $m
 
  1,141
  1,705
  2,474
  3,491
  4,802
  6,449
  8,473
  10,909
  13,787
  17,130
  20,947
  25,261
  30,070
  35,372
  41,162
  47,432
  54,172
  61,371
  69,018
  77,102
  85,616
  94,553
  103,908
  113,681
  123,872
  134,485
  145,528
  157,010
  168,944
  181,346
Fixed operating expenses, $m
 
  123
  126
  129
  132
  136
  139
  143
  146
  150
  154
  157
  161
  165
  170
  174
  178
  183
  187
  192
  197
  202
  207
  212
  217
  222
  228
  234
  240
  246
  252
Total operating expenses, $m
  857
  1,264
  1,831
  2,603
  3,623
  4,938
  6,588
  8,616
  11,055
  13,937
  17,284
  21,104
  25,422
  30,235
  35,542
  41,336
  47,610
  54,355
  61,558
  69,210
  77,299
  85,818
  94,760
  104,120
  113,898
  124,094
  134,713
  145,762
  157,250
  169,190
  181,598
Operating income, $m
  -22
  28
  103
  206
  344
  522
  747
  1,024
  1,358
  1,753
  2,212
  2,744
  3,338
  4,000
  4,730
  5,528
  6,392
  7,321
  8,314
  9,368
  10,483
  11,658
  12,891
  14,181
  15,530
  16,936
  18,400
  19,924
  21,509
  23,156
  24,868
EBITDA, $m
  78
  141
  269
  445
  679
  981
  1,361
  1,828
  2,392
  3,058
  3,832
  4,719
  5,719
  6,834
  8,065
  9,408
  10,863
  12,428
  14,099
  15,875
  17,752
  19,729
  21,804
  23,977
  26,246
  28,613
  31,078
  33,643
  36,310
  39,082
  41,963
Interest expense (income), $m
  19
  54
  104
  176
  273
  402
  568
  777
  1,033
  1,342
  1,706
  2,130
  2,614
  3,160
  3,769
  4,441
  5,174
  5,969
  6,822
  7,734
  8,703
  9,727
  10,805
  11,937
  13,122
  14,360
  15,651
  16,995
  18,394
  19,849
  21,360
Earnings before tax, $m
  -28
  -26
  -1
  30
  71
  120
  179
  247
  325
  411
  506
  614
  724
  839
  961
  1,087
  1,218
  1,353
  1,491
  1,634
  1,781
  1,931
  2,085
  2,244
  2,407
  2,576
  2,749
  2,929
  3,115
  3,308
  3,508
Tax expense, $m
  21
  0
  0
  8
  19
  32
  48
  67
  88
  111
  137
  166
  195
  227
  259
  293
  329
  365
  403
  441
  481
  521
  563
  606
  650
  695
  742
  791
  841
  893
  947
Net income, $m
  -78
  -26
  -1
  22
  52
  88
  131
  180
  237
  300
  369
  449
  528
  613
  701
  793
  889
  987
  1,089
  1,193
  1,300
  1,410
  1,522
  1,638
  1,757
  1,880
  2,007
  2,138
  2,274
  2,415
  2,561

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  293
  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
  4,331
  6,240
  9,344
  13,572
  19,168
  26,377
  35,437
  46,569
  59,967
  75,795
  94,179
  115,208
  138,937
  165,386
  194,549
  226,396
  260,882
  297,953
  337,546
  379,603
  424,069
  470,896
  520,049
  571,505
  625,254
  681,304
  739,678
  800,414
  863,567
  929,207
  997,419
Adjusted assets (=assets-cash), $m
  4,038
  6,240
  9,344
  13,572
  19,168
  26,377
  35,437
  46,569
  59,967
  75,795
  94,179
  115,208
  138,937
  165,386
  194,549
  226,396
  260,882
  297,953
  337,546
  379,603
  424,069
  470,896
  520,049
  571,505
  625,254
  681,304
  739,678
  800,414
  863,567
  929,207
  997,419
Revenue / Adjusted assets
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
Average production assets, $m
  346
  535
  801
  1,163
  1,643
  2,260
  3,037
  3,991
  5,139
  6,495
  8,071
  9,873
  11,907
  14,173
  16,672
  19,402
  22,357
  25,534
  28,927
  32,531
  36,342
  40,355
  44,567
  48,977
  53,583
  58,386
  63,389
  68,594
  74,006
  79,631
  85,477
Working capital, $m
  654
  646
  967
  1,405
  1,984
  2,730
  3,668
  4,820
  6,207
  7,845
  9,748
  11,924
  14,380
  17,117
  20,136
  23,432
  27,001
  30,838
  34,936
  39,289
  43,891
  48,738
  53,825
  59,151
  64,714
  70,515
  76,557
  82,843
  89,379
  96,173
  103,233
Total debt, $m
  1,824
  2,980
  5,022
  7,805
  11,487
  16,230
  22,192
  29,516
  38,332
  48,747
  60,844
  74,681
  90,295
  107,698
  126,887
  147,843
  170,535
  194,927
  220,979
  248,653
  277,912
  308,724
  341,066
  374,924
  410,291
  447,172
  485,582
  525,546
  567,101
  610,292
  655,176
Total liabilities, $m
  2,950
  4,106
  6,148
  8,931
  12,613
  17,356
  23,318
  30,642
  39,458
  49,873
  61,970
  75,807
  91,421
  108,824
  128,013
  148,969
  171,661
  196,053
  222,105
  249,779
  279,038
  309,850
  342,192
  376,050
  411,417
  448,298
  486,708
  526,672
  568,227
  611,418
  656,302
Total equity, $m
  1,381
  2,134
  3,196
  4,642
  6,556
  9,021
  12,119
  15,926
  20,509
  25,922
  32,209
  39,401
  47,516
  56,562
  66,536
  77,427
  89,222
  101,900
  115,441
  129,824
  145,032
  161,047
  177,857
  195,455
  213,837
  233,006
  252,970
  273,742
  295,340
  317,789
  341,117
Total liabilities and equity, $m
  4,331
  6,240
  9,344
  13,573
  19,169
  26,377
  35,437
  46,568
  59,967
  75,795
  94,179
  115,208
  138,937
  165,386
  194,549
  226,396
  260,883
  297,953
  337,546
  379,603
  424,070
  470,897
  520,049
  571,505
  625,254
  681,304
  739,678
  800,414
  863,567
  929,207
  997,419
Debt-to-equity ratio
  1.321
  1.400
  1.570
  1.680
  1.750
  1.800
  1.830
  1.850
  1.870
  1.880
  1.890
  1.900
  1.900
  1.900
  1.910
  1.910
  1.910
  1.910
  1.910
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
  1.920
Adjusted equity ratio
  0.269
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342
  0.342

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -78
  -26
  -1
  22
  52
  88
  131
  180
  237
  300
  369
  449
  528
  613
  701
  793
  889
  987
  1,089
  1,193
  1,300
  1,410
  1,522
  1,638
  1,757
  1,880
  2,007
  2,138
  2,274
  2,415
  2,561
Depreciation, amort., depletion, $m
  100
  113
  167
  239
  335
  458
  614
  805
  1,034
  1,305
  1,621
  1,975
  2,381
  2,835
  3,334
  3,880
  4,471
  5,107
  5,785
  6,506
  7,268
  8,071
  8,913
  9,795
  10,717
  11,677
  12,678
  13,719
  14,801
  15,926
  17,095
Funds from operations, $m
  72
  88
  165
  261
  387
  546
  744
  985
  1,271
  1,606
  1,990
  2,423
  2,910
  3,447
  4,036
  4,674
  5,360
  6,094
  6,874
  7,699
  8,568
  9,481
  10,436
  11,433
  12,474
  13,558
  14,685
  15,857
  17,075
  18,341
  19,656
Change in working capital, $m
  -4
  228
  321
  438
  579
  746
  938
  1,152
  1,387
  1,638
  1,903
  2,177
  2,456
  2,737
  3,018
  3,296
  3,569
  3,837
  4,098
  4,353
  4,602
  4,847
  5,087
  5,326
  5,563
  5,801
  6,042
  6,286
  6,536
  6,794
  7,060
Cash from operations, $m
  76
  -141
  -156
  -176
  -193
  -200
  -193
  -167
  -116
  -33
  87
  247
  454
  710
  1,017
  1,378
  1,791
  2,257
  2,776
  3,346
  3,966
  4,634
  5,348
  6,108
  6,911
  7,756
  8,643
  9,571
  10,539
  11,547
  12,596
Maintenance CAPEX, $m
  0
  -69
  -107
  -160
  -233
  -329
  -452
  -607
  -798
  -1,028
  -1,299
  -1,614
  -1,975
  -2,381
  -2,835
  -3,334
  -3,880
  -4,471
  -5,107
  -5,785
  -6,506
  -7,268
  -8,071
  -8,913
  -9,795
  -10,717
  -11,677
  -12,678
  -13,719
  -14,801
  -15,926
New CAPEX, $m
  -88
  -189
  -266
  -362
  -480
  -618
  -776
  -954
  -1,148
  -1,356
  -1,575
  -1,802
  -2,034
  -2,267
  -2,499
  -2,729
  -2,955
  -3,177
  -3,393
  -3,604
  -3,811
  -4,013
  -4,212
  -4,410
  -4,606
  -4,803
  -5,003
  -5,205
  -5,412
  -5,625
  -5,846
Cash from investing activities, $m
  -2,455
  -258
  -373
  -522
  -713
  -947
  -1,228
  -1,561
  -1,946
  -2,384
  -2,874
  -3,416
  -4,009
  -4,648
  -5,334
  -6,063
  -6,835
  -7,648
  -8,500
  -9,389
  -10,317
  -11,281
  -12,283
  -13,323
  -14,401
  -15,520
  -16,680
  -17,883
  -19,131
  -20,426
  -21,772
Free cash flow, $m
  -2,379
  -399
  -529
  -699
  -905
  -1,146
  -1,422
  -1,729
  -2,062
  -2,417
  -2,788
  -3,170
  -3,554
  -3,938
  -4,316
  -4,686
  -5,045
  -5,391
  -5,724
  -6,043
  -6,351
  -6,647
  -6,935
  -7,215
  -7,491
  -7,764
  -8,037
  -8,312
  -8,592
  -8,879
  -9,176
Issuance/(repayment) of debt, $m
  1,791
  1,449
  2,042
  2,782
  3,682
  4,743
  5,961
  7,325
  8,816
  10,415
  12,097
  13,837
  15,614
  17,404
  19,189
  20,955
  22,692
  24,392
  26,053
  27,674
  29,258
  30,812
  32,343
  33,858
  35,367
  36,881
  38,410
  39,964
  41,555
  43,191
  44,884
Issuance/(repurchase) of shares, $m
  440
  779
  1,063
  1,424
  1,862
  2,378
  2,968
  3,627
  4,345
  5,113
  5,918
  6,744
  7,587
  8,433
  9,272
  10,098
  10,906
  11,691
  12,452
  13,191
  13,908
  14,605
  15,288
  15,960
  16,625
  17,289
  17,957
  18,634
  19,324
  20,034
  20,768
Cash from financing (excl. dividends), $m  
  2,231
  2,228
  3,105
  4,206
  5,544
  7,121
  8,929
  10,952
  13,161
  15,528
  18,015
  20,581
  23,201
  25,837
  28,461
  31,053
  33,598
  36,083
  38,505
  40,865
  43,166
  45,417
  47,631
  49,818
  51,992
  54,170
  56,367
  58,598
  60,879
  63,225
  65,652
Total cash flow (excl. dividends), $m
  -133
  1,829
  2,576
  3,507
  4,640
  5,975
  7,507
  9,223
  11,100
  13,111
  15,227
  17,411
  19,646
  21,898
  24,145
  26,368
  28,553
  30,692
  32,781
  34,821
  36,815
  38,770
  40,696
  42,602
  44,501
  46,406
  48,330
  50,286
  52,287
  54,346
  56,476
Retained Cash Flow (-), $m
  -172
  -779
  -1,063
  -1,446
  -1,914
  -2,465
  -3,098
  -3,807
  -4,582
  -5,413
  -6,287
  -7,192
  -8,115
  -9,046
  -9,974
  -10,892
  -11,794
  -12,678
  -13,541
  -14,384
  -15,207
  -16,015
  -16,810
  -17,598
  -18,382
  -19,169
  -19,964
  -20,772
  -21,598
  -22,449
  -23,329
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
 
  1,050
  1,513
  2,061
  2,726
  3,509
  4,409
  5,416
  6,517
  7,698
  8,940
  10,219
  11,531
  12,853
  14,171
  15,476
  16,758
  18,014
  19,240
  20,437
  21,608
  22,755
  23,885
  25,004
  26,119
  27,237
  28,366
  29,514
  30,689
  31,897
  33,147
Discount rate, %
 
  9.10
  9.56
  10.03
  10.53
  11.06
  11.61
  12.19
  12.80
  13.44
  14.12
  14.82
  15.56
  16.34
  17.16
  18.02
  18.92
  19.86
  20.86
  21.90
  23.00
  24.15
  25.35
  26.62
  27.95
  29.35
  30.82
  32.36
  33.97
  35.67
  37.46
PV of cash for distribution, $m
 
  963
  1,261
  1,547
  1,826
  2,077
  2,280
  2,420
  2,486
  2,473
  2,387
  2,234
  2,032
  1,796
  1,544
  1,290
  1,048
  828
  636
  475
  344
  242
  166
  110
  70
  44
  26
  15
  9
  5
  2
Current shareholders' claim on cash, %
  100
  73.0
  55.0
  42.6
  33.7
  27.3
  22.4
  18.7
  15.9
  13.7
  11.9
  10.5
  9.3
  8.3
  7.5
  6.8
  6.3
  5.8
  5.3
  5.0
  4.6
  4.3
  4.1
  3.9
  3.7
  3.5
  3.3
  3.2
  3.0
  2.9
  2.8

Bitauto Holdings Limited is a provider of Internet content and marketing services for China's automotive industry. The Company's bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

FINANCIAL RATIOS  of  Bitauto Holdings ADR (BITA)

Valuation Ratios
P/E Ratio -26.5
Price to Sales 2.5
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 27.2
Price to Free Cash Flow -172.3
Growth Rates
Sales Growth Rate 35.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 158.8%
Cap. Spend. - 3 Yr. Gr. Rate 77.5%
Financial Strength
Quick Ratio 0
Current Ratio 0.5
LT Debt to Equity 42.7%
Total Debt to Equity 132.1%
Interest Coverage 0
Management Effectiveness
Return On Assets -1.4%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital -3.5%
Ret/ On T. Cap. - 3 Yr. Avg. 4.8%
Return On Equity -6%
Return On Equity - 3 Yr. Avg. 3.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 64.1%
Gross Margin - 3 Yr. Avg. 68.2%
EBITDA Margin 10.9%
EBITDA Margin - 3 Yr. Avg. 15%
Operating Margin -2.6%
Oper. Margin - 3 Yr. Avg. 4%
Pre-Tax Margin -3.4%
Pre-Tax Margin - 3 Yr. Avg. 3.9%
Net Profit Margin -9.3%
Net Profit Margin - 3 Yr. Avg. -0.9%
Effective Tax Rate -75%
Eff/ Tax Rate - 3 Yr. Avg. -26.8%
Payout Ratio 0%

BITA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BITA stock intrinsic value calculation we used $835 million for the last fiscal year's total revenue generated by Bitauto Holdings ADR. The default revenue input number comes from 2016 income statement of Bitauto Holdings 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 BITA stock valuation model: a) initial revenue growth rate of 54.7% 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 9.1%, whose default value for BITA is calculated based on our internal credit rating of Bitauto Holdings 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 Bitauto Holdings 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 BITA stock the variable cost ratio is equal to 88.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $120 million in the base year in the intrinsic value calculation for BITA 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 3.5% for Bitauto Holdings ADR.

Corporate tax rate of 27% is the nominal tax rate for Bitauto Holdings 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 BITA 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 BITA are equal to 41.4%.

Life of production assets of 4 years is the average useful life of capital assets used in Bitauto Holdings 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 BITA is equal to 50%. 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 - $1381 million for Bitauto Holdings 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 70.774 million for Bitauto Holdings 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 Bitauto Holdings ADR at the current share price and the inputted number of shares is $2.1 billion.

RELATED COMPANIES Price Int.Val. Rating
ATHM Autohome ADR 61.23 63.04  hold
SINA Sina 100.90 305.74  str.buy
BIDU Baidu ADR 233.48 214.89  hold
SOHU Sohu.com 44.81 101.97  str.buy
WB Weibo ADR 102.72 459.60  str.buy
JD JD.com ADR 40.32 309.69  str.buy

COMPANY NEWS

▶ A Chinese Growth Stock No One Is Paying Attention To   [Nov-26-17 11:00AM  Motley Fool]
▶ 3 Top Stocks Wall Street Is Overlooking   [Nov-25-17 08:00AM  Motley Fool]
▶ 5 Monster Stocks in the Making to Buy for 2018   [Nov-24-17 08:02AM  Motley Fool]
▶ BitAuto Third-Quarter Results Beat On Revenue, Miss On Earnings   [Nov-20-17 05:31PM  Investor's Business Daily]
▶ Bitauto Holdngs reports 3Q loss   [06:27AM  Associated Press]
▶ Autohome Crashes As Company Announces Management Shake-Up   [Sep-28-17 04:45PM  Investor's Business Daily]
▶ China Stocks Battered As Profit-Taking Kicks In After Long Run-Up   [Aug-28-17 04:31PM  Investor's Business Daily]
▶ Bitauto Holdngs reports 2Q loss   [Aug-15-17 10:18PM  Associated Press]
▶ BitAuto Beats Expectations But Stock Slips   [06:25AM  Investor's Business Daily]
▶ These Hot China-Based Stocks Are Trading At Or Near New All-Time Highs   [Aug-07-17 11:22AM  Investor's Business Daily]
▶ Best Chinese Stocks To Buy And Watch   [Jun-20-17 04:41PM  Investor's Business Daily]
▶ Which Stocks Are Showing Rising Relative Strength?   [04:27PM  Investor's Business Daily]
▶ 3 Stocks Wall Street Hasn't Noticed   [Jun-17-17 07:32AM  Motley Fool]
▶ 3 Mid-Cap Stocks for June   [Jun-15-17 09:04AM  Motley Fool]
▶ My Top Stock to Buy in June   [Jun-03-17 10:49AM  Motley Fool]
▶ IPO Stock News And Analysis: Find Today's Top New Issues   [04:27PM  Investor's Business Daily]
▶ Earnings Calendar, Analyst Estimates And Stocks To Watch   [09:05AM  Investor's Business Daily]
▶ Bitauto Holdngs reports 1Q loss   [07:16AM  Associated Press]
▶ Forget Snap's Bust, Watch These Tech Unicorns: Investing Action Plan   [May-10-17 05:07PM  Investor's Business Daily]
▶ ETFs with exposure to Bitauto Holdings Ltd. : May 3, 2017   [May-03-17 03:40PM  Capital Cube]
▶ 5 Consumer Service Stocks to Buy in 2017   [May-01-17 05:36PM  Motley Fool]
▶ Bitauto Files Annual Report on Form 20-F   [06:00AM  PR Newswire]
▶ Bitauto Raises $1 Billion from Tencent, JD.com and Baidu   [Apr-21-17 12:29AM  Barrons.com]
▶ Can Bitauto Keep Going After Last Week's 13% Pop?   [Mar-13-17 10:00AM  Motley Fool]
▶ Can Bitauto Keep Going After Last Week's 13% Pop?   [Mar-06-17 09:07AM  at Motley Fool]
▶ Bitauto Holdngs reports 4Q loss   [07:03AM  Associated Press]
▶ Is Bitauto Hldg Ltd (ADR) (BITA) Going to Reward Investors?   [Dec-08-16 03:12PM  Insider Monkey]
▶ This Fast-Rising China-Based Tech Stock Is a Must Buy   [Sep-29-16 12:58PM  at TheStreet]
▶ These 3 Stocks Are Surprisingly Cheap   [Sep-26-16 04:16PM  at Motley Fool]
Financial statements of BITA
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.