Intrinsic value of DISH Network Cl A - DISH

Previous Close

$63.02

  Intrinsic Value

$10.16

stock screener

  Rating & Target

str. sell

-84%

  Value-price divergence*

-105%

Previous close

$63.02

 
Intrinsic value

$10.16

 
Up/down potential

-84%

 
Rating

str. sell

 
Value-price divergence*

-105%

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

We calculate the intrinsic value of DISH 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 29.1

 

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, %
  0.17
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  15,095
  15,397
  15,751
  16,156
  16,610
  17,114
  17,666
  18,268
  18,919
  19,621
  20,374
  21,180
  22,039
  22,954
  23,927
  24,959
  26,053
  27,211
  28,435
  29,729
  31,095
  32,536
  34,056
  35,658
  37,347
  39,124
  40,996
  42,967
  45,040
  47,221
  49,516
Variable operating expenses, $m
 
  14,042
  14,365
  14,734
  15,149
  15,608
  16,112
  16,660
  17,254
  17,894
  18,581
  19,316
  20,100
  20,934
  21,821
  22,763
  23,760
  24,816
  25,933
  27,113
  28,359
  29,673
  31,059
  32,520
  34,060
  35,682
  37,389
  39,186
  41,077
  43,066
  45,158
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
  12,883
  14,042
  14,365
  14,734
  15,149
  15,608
  16,112
  16,660
  17,254
  17,894
  18,581
  19,316
  20,100
  20,934
  21,821
  22,763
  23,760
  24,816
  25,933
  27,113
  28,359
  29,673
  31,059
  32,520
  34,060
  35,682
  37,389
  39,186
  41,077
  43,066
  45,158
Operating income, $m
  2,211
  1,355
  1,386
  1,422
  1,462
  1,506
  1,555
  1,608
  1,665
  1,727
  1,793
  1,864
  1,939
  2,020
  2,106
  2,196
  2,293
  2,395
  2,502
  2,616
  2,736
  2,863
  2,997
  3,138
  3,286
  3,443
  3,608
  3,781
  3,964
  4,155
  4,357
EBITDA, $m
  3,164
  2,325
  2,378
  2,439
  2,508
  2,584
  2,667
  2,758
  2,856
  2,962
  3,076
  3,198
  3,327
  3,466
  3,612
  3,768
  3,933
  4,108
  4,293
  4,488
  4,695
  4,912
  5,142
  5,384
  5,639
  5,907
  6,190
  6,487
  6,800
  7,129
  7,476
Interest expense (income), $m
  775
  793
  709
  733
  761
  792
  827
  865
  907
  952
  1,001
  1,053
  1,108
  1,168
  1,231
  1,298
  1,370
  1,445
  1,525
  1,610
  1,699
  1,794
  1,893
  1,998
  2,109
  2,226
  2,349
  2,478
  2,614
  2,758
  2,908
Earnings before tax, $m
  2,306
  562
  678
  689
  701
  714
  727
  742
  758
  775
  792
  811
  831
  852
  875
  898
  923
  949
  977
  1,006
  1,037
  1,069
  1,104
  1,140
  1,177
  1,217
  1,259
  1,303
  1,349
  1,398
  1,449
Tax expense, $m
  837
  152
  183
  186
  189
  193
  196
  200
  205
  209
  214
  219
  224
  230
  236
  243
  249
  256
  264
  272
  280
  289
  298
  308
  318
  329
  340
  352
  364
  377
  391
Net income, $m
  1,450
  411
  495
  503
  512
  521
  531
  542
  553
  565
  578
  592
  607
  622
  638
  656
  674
  693
  713
  735
  757
  781
  806
  832
  859
  888
  919
  951
  985
  1,020
  1,058

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  5,360
  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
  27,914
  23,188
  23,721
  24,331
  25,016
  25,774
  26,606
  27,512
  28,493
  29,550
  30,684
  31,897
  33,191
  34,570
  36,035
  37,589
  39,236
  40,980
  42,824
  44,772
  46,830
  49,000
  51,289
  53,702
  56,245
  58,922
  61,742
  64,709
  67,832
  71,117
  74,572
Adjusted assets (=assets-cash), $m
  22,554
  23,188
  23,721
  24,331
  25,016
  25,774
  26,606
  27,512
  28,493
  29,550
  30,684
  31,897
  33,191
  34,570
  36,035
  37,589
  39,236
  40,980
  42,824
  44,772
  46,830
  49,000
  51,289
  53,702
  56,245
  58,922
  61,742
  64,709
  67,832
  71,117
  74,572
Revenue / Adjusted assets
  0.669
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
  0.664
Average production assets, $m
  18,873
  19,200
  19,642
  20,146
  20,713
  21,341
  22,030
  22,780
  23,592
  24,467
  25,406
  26,411
  27,483
  28,624
  29,837
  31,124
  32,488
  33,932
  35,459
  37,072
  38,775
  40,573
  42,468
  44,466
  46,571
  48,788
  51,123
  53,580
  56,165
  58,885
  61,746
Working capital, $m
  3,687
  -677
  -693
  -711
  -731
  -753
  -777
  -804
  -832
  -863
  -896
  -932
  -970
  -1,010
  -1,053
  -1,098
  -1,146
  -1,197
  -1,251
  -1,308
  -1,368
  -1,432
  -1,498
  -1,569
  -1,643
  -1,721
  -1,804
  -1,891
  -1,982
  -2,078
  -2,179
Total debt, $m
  16,484
  13,893
  14,373
  14,922
  15,538
  16,221
  16,969
  17,785
  18,668
  19,619
  20,639
  21,731
  22,896
  24,137
  25,455
  26,854
  28,337
  29,906
  31,566
  33,319
  35,171
  37,124
  39,185
  41,356
  43,644
  46,054
  48,591
  51,262
  54,072
  57,029
  60,139
Total liabilities, $m
  23,301
  20,869
  21,349
  21,898
  22,514
  23,197
  23,945
  24,761
  25,644
  26,595
  27,615
  28,707
  29,872
  31,113
  32,431
  33,830
  35,313
  36,882
  38,542
  40,295
  42,147
  44,100
  46,161
  48,332
  50,620
  53,030
  55,567
  58,238
  61,048
  64,005
  67,115
Total equity, $m
  4,614
  2,319
  2,372
  2,433
  2,502
  2,577
  2,661
  2,751
  2,849
  2,955
  3,068
  3,190
  3,319
  3,457
  3,603
  3,759
  3,924
  4,098
  4,282
  4,477
  4,683
  4,900
  5,129
  5,370
  5,624
  5,892
  6,174
  6,471
  6,783
  7,112
  7,457
Total liabilities and equity, $m
  27,915
  23,188
  23,721
  24,331
  25,016
  25,774
  26,606
  27,512
  28,493
  29,550
  30,683
  31,897
  33,191
  34,570
  36,034
  37,589
  39,237
  40,980
  42,824
  44,772
  46,830
  49,000
  51,290
  53,702
  56,244
  58,922
  61,741
  64,709
  67,831
  71,117
  74,572
Debt-to-equity ratio
  3.573
  5.990
  6.060
  6.130
  6.210
  6.290
  6.380
  6.460
  6.550
  6.640
  6.730
  6.810
  6.900
  6.980
  7.060
  7.140
  7.220
  7.300
  7.370
  7.440
  7.510
  7.580
  7.640
  7.700
  7.760
  7.820
  7.870
  7.920
  7.970
  8.020
  8.060
Adjusted equity ratio
  -0.033
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,450
  411
  495
  503
  512
  521
  531
  542
  553
  565
  578
  592
  607
  622
  638
  656
  674
  693
  713
  735
  757
  781
  806
  832
  859
  888
  919
  951
  985
  1,020
  1,058
Depreciation, amort., depletion, $m
  953
  970
  992
  1,017
  1,046
  1,078
  1,113
  1,151
  1,192
  1,236
  1,283
  1,334
  1,388
  1,446
  1,507
  1,572
  1,641
  1,714
  1,791
  1,872
  1,958
  2,049
  2,145
  2,246
  2,352
  2,464
  2,582
  2,706
  2,837
  2,974
  3,118
Funds from operations, $m
  2,776
  1,380
  1,487
  1,520
  1,558
  1,599
  1,644
  1,692
  1,745
  1,801
  1,862
  1,926
  1,995
  2,068
  2,145
  2,228
  2,315
  2,407
  2,504
  2,607
  2,715
  2,830
  2,950
  3,078
  3,212
  3,353
  3,501
  3,657
  3,822
  3,994
  4,176
Change in working capital, $m
  -26
  -13
  -16
  -18
  -20
  -22
  -24
  -26
  -29
  -31
  -33
  -35
  -38
  -40
  -43
  -45
  -48
  -51
  -54
  -57
  -60
  -63
  -67
  -70
  -74
  -78
  -82
  -87
  -91
  -96
  -101
Cash from operations, $m
  2,802
  1,625
  1,502
  1,538
  1,578
  1,621
  1,668
  1,719
  1,773
  1,832
  1,895
  1,962
  2,033
  2,108
  2,188
  2,273
  2,363
  2,458
  2,558
  2,664
  2,776
  2,893
  3,017
  3,148
  3,286
  3,431
  3,583
  3,744
  3,913
  4,090
  4,277
Maintenance CAPEX, $m
  0
  -951
  -970
  -992
  -1,017
  -1,046
  -1,078
  -1,113
  -1,151
  -1,192
  -1,236
  -1,283
  -1,334
  -1,388
  -1,446
  -1,507
  -1,572
  -1,641
  -1,714
  -1,791
  -1,872
  -1,958
  -2,049
  -2,145
  -2,246
  -2,352
  -2,464
  -2,582
  -2,706
  -2,837
  -2,974
New CAPEX, $m
  -603
  -375
  -442
  -505
  -567
  -628
  -689
  -750
  -812
  -875
  -939
  -1,005
  -1,072
  -1,141
  -1,213
  -1,287
  -1,364
  -1,444
  -1,527
  -1,613
  -1,703
  -1,797
  -1,895
  -1,998
  -2,105
  -2,217
  -2,334
  -2,457
  -2,586
  -2,720
  -2,861
Cash from investing activities, $m
  -1,729
  -1,326
  -1,412
  -1,497
  -1,584
  -1,674
  -1,767
  -1,863
  -1,963
  -2,067
  -2,175
  -2,288
  -2,406
  -2,529
  -2,659
  -2,794
  -2,936
  -3,085
  -3,241
  -3,404
  -3,575
  -3,755
  -3,944
  -4,143
  -4,351
  -4,569
  -4,798
  -5,039
  -5,292
  -5,557
  -5,835
Free cash flow, $m
  1,073
  300
  91
  41
  -7
  -53
  -99
  -144
  -189
  -234
  -280
  -326
  -373
  -421
  -470
  -521
  -573
  -627
  -683
  -740
  -800
  -862
  -927
  -995
  -1,065
  -1,138
  -1,215
  -1,295
  -1,379
  -1,466
  -1,558
Issuance/(repayment) of debt, $m
  3,465
  -1,648
  480
  549
  616
  683
  749
  816
  883
  951
  1,021
  1,092
  1,165
  1,241
  1,318
  1,399
  1,483
  1,569
  1,660
  1,754
  1,851
  1,954
  2,060
  2,172
  2,288
  2,410
  2,537
  2,671
  2,810
  2,957
  3,110
Issuance/(repurchase) of shares, $m
  394
  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  
  3,197
  -1,648
  480
  549
  616
  683
  749
  816
  883
  951
  1,021
  1,092
  1,165
  1,241
  1,318
  1,399
  1,483
  1,569
  1,660
  1,754
  1,851
  1,954
  2,060
  2,172
  2,288
  2,410
  2,537
  2,671
  2,810
  2,957
  3,110
Total cash flow (excl. dividends), $m
  4,271
  -1,348
  571
  590
  609
  629
  650
  671
  694
  717
  741
  766
  792
  819
  848
  878
  909
  942
  977
  1,013
  1,051
  1,091
  1,133
  1,177
  1,223
  1,271
  1,322
  1,376
  1,432
  1,490
  1,552
Retained Cash Flow (-), $m
  -1,865
  -2,103
  -53
  -61
  -68
  -76
  -83
  -91
  -98
  -106
  -113
  -121
  -129
  -138
  -146
  -155
  -165
  -174
  -184
  -195
  -206
  -217
  -229
  -241
  -254
  -268
  -282
  -297
  -312
  -329
  -346
Prev. year cash balance distribution, $m
 
  4,421
  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
 
  970
  518
  529
  541
  554
  567
  581
  595
  611
  627
  644
  662
  681
  701
  723
  745
  768
  793
  818
  846
  874
  904
  936
  969
  1,004
  1,040
  1,079
  1,119
  1,162
  1,206
Discount rate, %
 
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
 
  900
  442
  413
  383
  352
  321
  290
  259
  229
  200
  173
  147
  124
  103
  84
  67
  53
  41
  31
  23
  17
  12
  8
  6
  4
  2
  1
  1
  1
  0
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

DISH Network Corporation, together with its subsidiaries, provides pay-TV services in the United States. It operates through two segments, DISH and Wireless. The company provides video services under the DISH brand. It also offers programming packages that include programming through national broadcast networks, local broadcast networks, and national and regional cable networks, as well as regional and specialty sports channels, premium movie channels, and Latino and international programming. In addition, the company provides access to movies and TV shows via TV or Internet-connected tablets, smartphones, and computers; and dishanywhere.com and mobile applications for smartphones and tablets to view authorized content, search program listings, and remotely control certain features. Further, it offers Sling TV services, including Sling Orange, Sling Blue, Sling International, and Sling Latino services that require an Internet connection and are available on streaming-capable devices, such as TVs, tablets, computers, game consoles, and smart phones primarily to consumers who do not subscribe to traditional satellite and cable pay-TV services. Additionally, the company satellite broadband and wireline broadband services under the dishNET brand, as well as wireline voice services; and has wireless spectrum licenses and related assets. As of December 31, 2016, it had 13.671 million Pay-TV subscribers. The company offers receiver systems and programming through direct sales channels, small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. DISH Network Corporation was founded in 1980 and is headquartered in Englewood, Colorado.

FINANCIAL RATIOS  of  DISH Network Cl A (DISH)

Valuation Ratios
P/E Ratio 20.2
Price to Sales 1.9
Price to Book 6.4
Price to Tangible Book
Price to Cash Flow 10.5
Price to Free Cash Flow 13.3
Growth Rates
Sales Growth Rate 0.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -93.8%
Cap. Spend. - 3 Yr. Gr. Rate -13.6%
Financial Strength
Quick Ratio 6
Current Ratio 0.4
LT Debt to Equity 336.8%
Total Debt to Equity 357.3%
Interest Coverage 4
Management Effectiveness
Return On Assets 7.7%
Ret/ On Assets - 3 Yr. Avg. 7%
Return On Total Capital 7.7%
Ret/ On T. Cap. - 3 Yr. Avg. 6.1%
Return On Equity 39.4%
Return On Equity - 3 Yr. Avg. 44.7%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 30.1%
Gross Margin - 3 Yr. Avg. 28.2%
EBITDA Margin 26.7%
EBITDA Margin - 3 Yr. Avg. 22.6%
Operating Margin 14.7%
Oper. Margin - 3 Yr. Avg. 12%
Pre-Tax Margin 15.3%
Pre-Tax Margin - 3 Yr. Avg. 10.4%
Net Profit Margin 9.6%
Net Profit Margin - 3 Yr. Avg. 7%
Effective Tax Rate 36.3%
Eff/ Tax Rate - 3 Yr. Avg. 30.5%
Payout Ratio 0%

DISH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DISH stock intrinsic value calculation we used $15095 million for the last fiscal year's total revenue generated by DISH Network Cl A. The default revenue input number comes from 2016 income statement of DISH Network Cl A. 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 DISH stock valuation model: a) initial revenue growth rate of 2% 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 7.8%, whose default value for DISH is calculated based on our internal credit rating of DISH Network Cl A, 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 DISH Network Cl A.
    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 DISH stock the variable cost ratio is equal to 91.2%.

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 DISH 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 5.1% for DISH Network Cl A.

Corporate tax rate of 27% is the nominal tax rate for DISH Network Cl A. 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 DISH 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 DISH are equal to 124.7%.

Life of production assets of 19.8 years is the average useful life of capital assets used in DISH Network Cl A 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 DISH is equal to -4.4%. 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 - $4637 million for DISH Network Cl A - 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 461.365 million for DISH Network Cl A 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 DISH Network Cl A at the current share price and the inputted number of shares is $29.1 billion.

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COMPANY NEWS

▶ Whats Comcasts Understanding of Internet TV?   [Jun-22-17 04:05PM  Market Realist]
▶ [$$] Facebook heads for first base in push for TV hits   [Jun-16-17 12:01AM  Financial Times]
▶ Why AT&Ts DIRECTV NOW Growth Remains Strong   [07:36AM  Market Realist]
▶ Where Dish Could Be Headed with Its Spectrum Holdings   [Jun-14-17 09:07AM  Market Realist]
▶ Could Dish Forge a Deeper Partnership with Amazon?   [Jun-13-17 05:06PM  Market Realist]
▶ The Market In 5 Minutes   [Jun-09-17 09:11AM  Benzinga]
▶ Whats CenturyLink Want with an OTT Video Service?   [Jun-07-17 10:36AM  Market Realist]
▶ Dish Network slammed with record $280M robo-calling fine; vows appeal   [01:10PM  American City Business Journals]
▶ Stocks slip as investors weigh global risks   [09:19AM  Yahoo Finance]
▶ DISH to pay $280M in telemarking lawsuit   [06:42AM  CNBC Videos]
▶ Why Charters Video Subscriber Base Keeps Falling   [Jun-01-17 03:39PM  Market Realist]
▶ Why Did Charters 1Q17 Earnings Miss Estimates?   [May-31-17 09:50AM  Market Realist]
▶ Better Buy: Comcast Corporation vs. DISH Network   [May-30-17 01:09PM  Motley Fool]
▶ 3 Top Cable Stocks to Buy Now   [09:06AM  Motley Fool]
▶ Dish Network announces a few deals with Amazon   [May-25-17 01:00PM  American City Business Journals]
▶ Amazon, Dish Wireless Deal Would Target Internet Of Things: Citi   [May-23-17 04:19PM  Investor's Business Daily]
▶ What Are DISH Networks Valuation Metrics?   [09:06AM  Market Realist]
▶ Judge triples award for people called by Dish Network   [May-22-17 09:40PM  Associated Press]
▶ Dish Implements Amazon Alexa for TV   [02:25PM  TheStreet.com]
▶ DISH Now on Amazon Fire TV   [09:02AM  Business Wire]
▶ Sling Media Releases SlingStudio Nationwide   [08:57AM  Business Wire]
▶ Why We Might See a Shakeup in the Telecom Industry Soon   [May-19-17 07:45PM  Motley Fool]
▶ Why Is DISH Network Betting on Connectivity?   [07:36AM  Market Realist]
▶ T-Mobile sees benefits in merger with Sprint -CFO   [May-18-17 05:14PM  Reuters]
▶ Will DISH Be Able to Build Out Its Spectrum?   [10:36AM  Market Realist]
▶ How Is DISH Progressing on the 5G Front?   [09:06AM  Market Realist]
▶ Why Did DISH Network Buy Spectrum?   [07:36AM  Market Realist]
▶ Amazon, Dish Network In Wireless Partnership Talks: Report   [May-17-17 05:07PM  Investor's Business Daily]
▶ What Factors Are Driving DISHs Sling TV Subscriber Base?   [May-16-17 04:35PM  Market Realist]
▶ John Paulson Takes A Shine To Telecom   [May-15-17 05:59PM  The Wall Street Journal]
▶ As Streaming Services Amp Up, Not all TV Channels Make the Cut   [May-14-17 07:01PM  The Wall Street Journal]
▶ EchoStar posts 1Q profit   [06:20AM  Associated Press]
▶ More People Are Cutting the Cord Than Ever Before   [May-09-17 03:08PM  Motley Fool]
▶ Verizon does not feel pressure to do big deal -CEO   [May-08-17 06:29PM  Reuters]
▶ Analyzing DISH Network's 7% Drop in One Week   [May-05-17 09:50AM  Investopedia]
▶ A Closer Look at Netflix   [07:38AM  Market Realist]
▶ Company News for May 02, 2017   [10:33AM  Zacks]
Stock chart of DISH Financial statements of DISH Annual reports of DISH
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.

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