Intrinsic value of DISH Network Cl A - DISH

Previous Close

$64.44

  Intrinsic Value

$7.58

stock screener

  Rating & Target

str. sell

-88%

  Value-price divergence*

-105%

Previous close

$64.44

 
Intrinsic value

$7.58

 
Up/down potential

-88%

 
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 29.7

 

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
  2,327
  2,380
  2,442
  2,510
  2,586
  2,670
  2,761
  2,859
  2,965
  3,079
  3,201
  3,331
  3,469
  3,616
  3,772
  3,937
  4,112
  4,297
  4,493
  4,699
  4,917
  5,147
  5,389
  5,644
  5,913
  6,196
  6,494
  6,807
  7,137
  7,483
Interest expense (income), $m
  775
  816
  840
  868
  899
  934
  973
  1,015
  1,062
  1,112
  1,166
  1,224
  1,286
  1,353
  1,423
  1,498
  1,578
  1,662
  1,752
  1,846
  1,946
  2,051
  2,163
  2,280
  2,403
  2,534
  2,671
  2,815
  2,967
  3,127
  3,295
Earnings before tax, $m
  2,306
  539
  546
  554
  563
  572
  582
  592
  603
  615
  627
  640
  653
  667
  682
  698
  715
  732
  751
  770
  790
  812
  834
  858
  883
  909
  937
  966
  996
  1,028
  1,062
Tax expense, $m
  837
  146
  147
  150
  152
  154
  157
  160
  163
  166
  169
  173
  176
  180
  184
  188
  193
  198
  203
  208
  213
  219
  225
  232
  238
  246
  253
  261
  269
  278
  287
Net income, $m
  1,450
  394
  398
  405
  411
  418
  425
  432
  440
  449
  458
  467
  477
  487
  498
  510
  522
  535
  548
  562
  577
  593
  609
  626
  645
  664
  684
  705
  727
  751
  775

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
  27,994
  28,638
  29,374
  30,201
  31,116
  32,121
  33,215
  34,399
  35,674
  37,044
  38,508
  40,071
  41,735
  43,504
  45,380
  47,369
  49,474
  51,700
  54,053
  56,536
  59,157
  61,920
  64,833
  67,903
  71,135
  74,539
  78,121
  81,891
  85,857
  90,029
Adjusted assets (=assets-cash), $m
  22,554
  27,994
  28,638
  29,374
  30,201
  31,116
  32,121
  33,215
  34,399
  35,674
  37,044
  38,508
  40,071
  41,735
  43,504
  45,380
  47,369
  49,474
  51,700
  54,053
  56,536
  59,157
  61,920
  64,833
  67,903
  71,135
  74,539
  78,121
  81,891
  85,857
  90,029
Revenue / Adjusted assets
  0.669
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
  0.550
Average production assets, $m
  18,873
  19,246
  19,689
  20,195
  20,763
  21,392
  22,083
  22,835
  23,649
  24,526
  25,467
  26,474
  27,549
  28,693
  29,909
  31,199
  32,566
  34,013
  35,544
  37,161
  38,869
  40,670
  42,570
  44,573
  46,683
  48,906
  51,246
  53,709
  56,300
  59,027
  61,895
Working capital, $m
  3,687
  -739
  -756
  -775
  -797
  -821
  -848
  -877
  -908
  -942
  -978
  -1,017
  -1,058
  -1,102
  -1,148
  -1,198
  -1,251
  -1,306
  -1,365
  -1,427
  -1,493
  -1,562
  -1,635
  -1,712
  -1,793
  -1,878
  -1,968
  -2,062
  -2,162
  -2,267
  -2,377
Total debt, $m
  16,484
  16,475
  17,011
  17,623
  18,311
  19,073
  19,908
  20,819
  21,804
  22,865
  24,004
  25,223
  26,523
  27,908
  29,379
  30,940
  32,595
  34,347
  36,199
  38,156
  40,222
  42,402
  44,702
  47,125
  49,679
  52,369
  55,200
  58,181
  61,318
  64,617
  68,088
Total liabilities, $m
  23,301
  23,291
  23,827
  24,439
  25,127
  25,889
  26,724
  27,635
  28,620
  29,681
  30,820
  32,039
  33,339
  34,724
  36,195
  37,756
  39,411
  41,163
  43,015
  44,972
  47,038
  49,218
  51,518
  53,941
  56,495
  59,185
  62,016
  64,997
  68,134
  71,433
  74,904
Total equity, $m
  4,614
  4,703
  4,811
  4,935
  5,074
  5,228
  5,396
  5,580
  5,779
  5,993
  6,223
  6,469
  6,732
  7,012
  7,309
  7,624
  7,958
  8,312
  8,686
  9,081
  9,498
  9,938
  10,403
  10,892
  11,408
  11,951
  12,523
  13,124
  13,758
  14,424
  15,125
Total liabilities and equity, $m
  27,915
  27,994
  28,638
  29,374
  30,201
  31,117
  32,120
  33,215
  34,399
  35,674
  37,043
  38,508
  40,071
  41,736
  43,504
  45,380
  47,369
  49,475
  51,701
  54,053
  56,536
  59,156
  61,921
  64,833
  67,903
  71,136
  74,539
  78,121
  81,892
  85,857
  90,029
Debt-to-equity ratio
  3.573
  3.500
  3.540
  3.570
  3.610
  3.650
  3.690
  3.730
  3.770
  3.820
  3.860
  3.900
  3.940
  3.980
  4.020
  4.060
  4.100
  4.130
  4.170
  4.200
  4.230
  4.270
  4.300
  4.330
  4.350
  4.380
  4.410
  4.430
  4.460
  4.480
  4.500
Adjusted equity ratio
  -0.033
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168
  0.168

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,450
  394
  398
  405
  411
  418
  425
  432
  440
  449
  458
  467
  477
  487
  498
  510
  522
  535
  548
  562
  577
  593
  609
  626
  645
  664
  684
  705
  727
  751
  775
Depreciation, amort., depletion, $m
  953
  972
  994
  1,020
  1,049
  1,080
  1,115
  1,153
  1,194
  1,239
  1,286
  1,337
  1,391
  1,449
  1,511
  1,576
  1,645
  1,718
  1,795
  1,877
  1,963
  2,054
  2,150
  2,251
  2,358
  2,470
  2,588
  2,713
  2,843
  2,981
  3,126
Funds from operations, $m
  2,776
  1,366
  1,393
  1,424
  1,460
  1,498
  1,540
  1,586
  1,635
  1,687
  1,744
  1,804
  1,868
  1,936
  2,009
  2,085
  2,166
  2,252
  2,343
  2,439
  2,540
  2,647
  2,759
  2,878
  3,002
  3,134
  3,272
  3,418
  3,571
  3,732
  3,901
Change in working capital, $m
  -26
  -14
  -17
  -19
  -22
  -24
  -27
  -29
  -31
  -34
  -36
  -39
  -41
  -44
  -47
  -50
  -53
  -56
  -59
  -62
  -66
  -69
  -73
  -77
  -81
  -85
  -90
  -95
  -100
  -105
  -110
Cash from operations, $m
  2,802
  1,380
  1,410
  1,444
  1,481
  1,522
  1,567
  1,615
  1,666
  1,721
  1,780
  1,843
  1,909
  1,980
  2,055
  2,135
  2,219
  2,308
  2,402
  2,501
  2,606
  2,716
  2,832
  2,955
  3,083
  3,219
  3,362
  3,512
  3,670
  3,837
  4,011
Maintenance CAPEX, $m
  0
  -953
  -972
  -994
  -1,020
  -1,049
  -1,080
  -1,115
  -1,153
  -1,194
  -1,239
  -1,286
  -1,337
  -1,391
  -1,449
  -1,511
  -1,576
  -1,645
  -1,718
  -1,795
  -1,877
  -1,963
  -2,054
  -2,150
  -2,251
  -2,358
  -2,470
  -2,588
  -2,713
  -2,843
  -2,981
New CAPEX, $m
  -603
  -373
  -443
  -506
  -568
  -629
  -691
  -752
  -814
  -877
  -941
  -1,007
  -1,074
  -1,144
  -1,216
  -1,290
  -1,367
  -1,447
  -1,530
  -1,617
  -1,707
  -1,802
  -1,900
  -2,003
  -2,110
  -2,222
  -2,340
  -2,463
  -2,592
  -2,727
  -2,868
Cash from investing activities, $m
  -1,729
  -1,326
  -1,415
  -1,500
  -1,588
  -1,678
  -1,771
  -1,867
  -1,967
  -2,071
  -2,180
  -2,293
  -2,411
  -2,535
  -2,665
  -2,801
  -2,943
  -3,092
  -3,248
  -3,412
  -3,584
  -3,765
  -3,954
  -4,153
  -4,361
  -4,580
  -4,810
  -5,051
  -5,305
  -5,570
  -5,849
Free cash flow, $m
  1,073
  54
  -5
  -56
  -107
  -156
  -204
  -253
  -301
  -350
  -400
  -451
  -502
  -555
  -610
  -666
  -724
  -784
  -846
  -911
  -979
  -1,049
  -1,122
  -1,198
  -1,278
  -1,361
  -1,448
  -1,539
  -1,634
  -1,734
  -1,838
Issuance/(repayment) of debt, $m
  3,465
  484
  536
  612
  687
  762
  836
  910
  985
  1,061
  1,139
  1,219
  1,300
  1,384
  1,471
  1,561
  1,655
  1,751
  1,852
  1,957
  2,066
  2,180
  2,299
  2,424
  2,554
  2,690
  2,832
  2,981
  3,136
  3,300
  3,471
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
  484
  536
  612
  687
  762
  836
  910
  985
  1,061
  1,139
  1,219
  1,300
  1,384
  1,471
  1,561
  1,655
  1,751
  1,852
  1,957
  2,066
  2,180
  2,299
  2,424
  2,554
  2,690
  2,832
  2,981
  3,136
  3,300
  3,471
Total cash flow (excl. dividends), $m
  4,271
  538
  531
  556
  581
  606
  631
  657
  684
  711
  739
  768
  798
  829
  862
  895
  931
  967
  1,006
  1,046
  1,088
  1,132
  1,177
  1,225
  1,276
  1,329
  1,384
  1,442
  1,502
  1,566
  1,633
Retained Cash Flow (-), $m
  -1,865
  -89
  -108
  -124
  -139
  -154
  -169
  -184
  -199
  -214
  -230
  -246
  -263
  -280
  -297
  -315
  -334
  -354
  -374
  -395
  -417
  -440
  -464
  -489
  -516
  -543
  -572
  -602
  -633
  -666
  -701
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
 
  449
  423
  432
  442
  452
  463
  474
  485
  497
  509
  522
  536
  550
  565
  580
  597
  614
  632
  651
  670
  691
  713
  736
  760
  785
  812
  840
  869
  900
  932
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
 
  417
  361
  337
  313
  287
  262
  236
  211
  186
  162
  140
  119
  100
  83
  67
  54
  42
  33
  25
  18
  13
  9
  7
  4
  3
  2
  1
  1
  0
  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 20.7
Price to Sales 2
Price to Book 6.5
Price to Tangible Book
Price to Cash Flow 10.7
Price to Free Cash Flow 13.6
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 125%.

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 -4.8%. 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 - $4614 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 $29.7 billion.

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COMPANY NEWS

▶ Is DISH Networks Partnership with Amazon Imminent?   [Jul-25-17 05:36PM  Market Realist]
▶ This Is Why Alphabet Is a Real Powerhouse   [Jul-13-17 10:27PM  TheStreet.com]
▶ Cord Cutting Is Just Getting Started   [Jul-08-17 01:00PM  Motley Fool]
▶ Sling TV Has Over 2 Million Subscribers   [Jul-07-17 01:00PM  Motley Fool]
▶ [$$] This Dish Could Be Costly, Even for Amazon   [01:09AM  The Wall Street Journal]
▶ [$$] Amazon and Dish Network: A Match in the Making?   [01:08AM  The Wall Street Journal]
▶ [$$] This Dish Could Be Costly, Even for Amazon   [02:28PM  The Wall Street Journal]
▶ [$$] Amazon and Dish Network: A Match in the Making?   [05:30AM  The Wall Street Journal]
▶ How Are Analysts Rating Comcast?   [Jul-04-17 07:39AM  Market Realist]
▶ How A Music App Can Help Dish Network   [Jun-28-17 01:48PM  Forbes]
▶ Could T-Mobile Be Left in the Cold?   [Jun-26-17 10:36AM  Market Realist]
▶ 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]
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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