Intrinsic value of Nielsen Holdings - NLSN

Previous Close

$31.17

  Intrinsic Value

$43.11

stock screener

  Rating & Target

buy

+38%

Previous close

$31.17

 
Intrinsic value

$43.11

 
Up/down potential

+38%

 
Rating

buy

We calculate the intrinsic value of NLSN 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
(a)
   1
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -100.00
  4.20
  4.28
  4.35
  4.42
  4.48
  4.53
  4.57
  4.62
  4.66
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
Revenue, $m
  0
  6,848
  7,141
  7,452
  7,781
  8,129
  8,497
  8,886
  9,296
  9,729
  10,185
  10,666
  11,173
  11,706
  12,268
  12,859
  13,480
  14,134
  14,822
  15,546
  16,306
  17,106
  17,946
  18,829
  19,757
  20,732
  21,757
  22,834
  23,965
  25,153
  26,401
Variable operating expenses, $m
 
  4,654
  4,796
  4,945
  5,104
  5,271
  5,449
  5,636
  5,833
  6,042
  6,261
  5,136
  5,380
  5,636
  5,907
  6,191
  6,491
  6,806
  7,137
  7,485
  7,851
  8,236
  8,641
  9,066
  9,513
  9,982
  10,476
  10,994
  11,539
  12,111
  12,712
Fixed operating expenses, $m
 
  862
  881
  900
  920
  940
  961
  982
  1,003
  1,025
  1,048
  1,071
  1,095
  1,119
  1,143
  1,168
  1,194
  1,220
  1,247
  1,275
  1,303
  1,331
  1,361
  1,391
  1,421
  1,452
  1,484
  1,517
  1,550
  1,585
  1,619
Total operating expenses, $m
  0
  5,516
  5,677
  5,845
  6,024
  6,211
  6,410
  6,618
  6,836
  7,067
  7,309
  6,207
  6,475
  6,755
  7,050
  7,359
  7,685
  8,026
  8,384
  8,760
  9,154
  9,567
  10,002
  10,457
  10,934
  11,434
  11,960
  12,511
  13,089
  13,696
  14,331
Operating income, $m
  0
  1,332
  1,465
  1,607
  1,758
  1,918
  2,088
  2,269
  2,460
  2,662
  2,876
  4,460
  4,699
  4,951
  5,218
  5,499
  5,796
  6,109
  6,438
  6,786
  7,152
  7,538
  7,945
  8,373
  8,823
  9,298
  9,797
  10,323
  10,876
  11,458
  12,070
EBITDA, $m
  0
  4,101
  4,295
  4,501
  4,719
  4,951
  5,198
  5,458
  5,734
  6,025
  6,334
  6,659
  7,003
  7,365
  7,747
  8,150
  8,575
  9,023
  9,495
  9,991
  10,515
  11,065
  11,645
  12,255
  12,897
  13,573
  14,283
  15,031
  15,817
  16,644
  17,514
Interest expense (income), $m
  0
  456
  484
  514
  546
  580
  616
  654
  695
  737
  782
  829
  879
  931
  987
  1,045
  1,106
  1,170
  1,238
  1,309
  1,384
  1,463
  1,546
  1,633
  1,724
  1,821
  1,922
  2,028
  2,139
  2,256
  2,379
Earnings before tax, $m
  0
  876
  982
  1,093
  1,212
  1,338
  1,472
  1,614
  1,765
  1,925
  2,094
  3,630
  3,820
  4,020
  4,231
  4,454
  4,690
  4,938
  5,200
  5,477
  5,768
  6,075
  6,399
  6,740
  7,099
  7,477
  7,875
  8,295
  8,736
  9,201
  9,691
Tax expense, $m
  0
  237
  265
  295
  327
  361
  397
  436
  477
  520
  565
  980
  1,031
  1,085
  1,142
  1,203
  1,266
  1,333
  1,404
  1,479
  1,557
  1,640
  1,728
  1,820
  1,917
  2,019
  2,126
  2,240
  2,359
  2,484
  2,616
Net income, $m
  0
  640
  717
  798
  884
  977
  1,075
  1,178
  1,289
  1,405
  1,529
  2,650
  2,788
  2,934
  3,089
  3,252
  3,423
  3,605
  3,796
  3,998
  4,211
  4,435
  4,671
  4,920
  5,182
  5,458
  5,749
  6,055
  6,378
  6,717
  7,074

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
  0
Total assets, $m
  0
  17,559
  18,311
  19,107
  19,951
  20,844
  21,788
  22,785
  23,837
  24,947
  26,117
  27,350
  28,648
  30,016
  31,456
  32,971
  34,565
  36,242
  38,006
  39,861
  41,811
  43,861
  46,015
  48,280
  50,659
  53,160
  55,788
  58,548
  61,448
  64,495
  67,695
Adjusted assets (=assets-cash), $m
  0
  17,559
  18,311
  19,107
  19,951
  20,844
  21,788
  22,785
  23,837
  24,947
  26,117
  27,350
  28,648
  30,016
  31,456
  32,971
  34,565
  36,242
  38,006
  39,861
  41,811
  43,861
  46,015
  48,280
  50,659
  53,160
  55,788
  58,548
  61,448
  64,495
  67,695
Revenue / Adjusted assets
  0.000
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
Average production assets, $m
  0
  14,121
  14,725
  15,366
  16,044
  16,763
  17,521
  18,323
  19,169
  20,062
  21,002
  21,994
  23,038
  24,138
  25,296
  26,515
  27,797
  29,145
  30,564
  32,055
  33,623
  35,272
  37,004
  38,826
  40,739
  42,750
  44,863
  47,083
  49,415
  51,866
  54,439
Working capital, $m
  0
  -1,192
  -1,243
  -1,297
  -1,354
  -1,414
  -1,479
  -1,546
  -1,618
  -1,693
  -1,772
  -1,856
  -1,944
  -2,037
  -2,135
  -2,237
  -2,346
  -2,459
  -2,579
  -2,705
  -2,837
  -2,976
  -3,123
  -3,276
  -3,438
  -3,607
  -3,786
  -3,973
  -4,170
  -4,377
  -4,594
Total debt, $m
  0
  8,954
  9,516
  10,112
  10,744
  11,411
  12,117
  12,863
  13,650
  14,480
  15,355
  16,277
  17,249
  18,272
  19,349
  20,482
  21,675
  22,929
  24,249
  25,636
  27,094
  28,628
  30,239
  31,933
  33,713
  35,584
  37,549
  39,614
  41,783
  44,062
  46,456
Total liabilities, $m
  0
  13,134
  13,696
  14,292
  14,924
  15,591
  16,297
  17,043
  17,830
  18,660
  19,535
  20,457
  21,429
  22,452
  23,529
  24,662
  25,855
  27,109
  28,429
  29,816
  31,274
  32,808
  34,419
  36,113
  37,893
  39,764
  41,729
  43,794
  45,963
  48,242
  50,636
Total equity, $m
  0
  4,425
  4,614
  4,815
  5,028
  5,253
  5,491
  5,742
  6,007
  6,287
  6,581
  6,892
  7,219
  7,564
  7,927
  8,309
  8,710
  9,133
  9,578
  10,045
  10,536
  11,053
  11,596
  12,166
  12,766
  13,396
  14,058
  14,754
  15,485
  16,253
  17,059
Total liabilities and equity, $m
  0
  17,559
  18,310
  19,107
  19,952
  20,844
  21,788
  22,785
  23,837
  24,947
  26,116
  27,349
  28,648
  30,016
  31,456
  32,971
  34,565
  36,242
  38,007
  39,861
  41,810
  43,861
  46,015
  48,279
  50,659
  53,160
  55,787
  58,548
  61,448
  64,495
  67,695
Debt-to-equity ratio
  0.000
  2.020
  2.060
  2.100
  2.140
  2.170
  2.210
  2.240
  2.270
  2.300
  2.330
  2.360
  2.390
  2.420
  2.440
  2.470
  2.490
  2.510
  2.530
  2.550
  2.570
  2.590
  2.610
  2.620
  2.640
  2.660
  2.670
  2.680
  2.700
  2.710
  2.720
Adjusted equity ratio
  0.000
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252
  0.252

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  0
  640
  717
  798
  884
  977
  1,075
  1,178
  1,289
  1,405
  1,529
  2,650
  2,788
  2,934
  3,089
  3,252
  3,423
  3,605
  3,796
  3,998
  4,211
  4,435
  4,671
  4,920
  5,182
  5,458
  5,749
  6,055
  6,378
  6,717
  7,074
Depreciation, amort., depletion, $m
  0
  2,769
  2,830
  2,894
  2,962
  3,033
  3,109
  3,190
  3,274
  3,363
  3,457
  2,199
  2,304
  2,414
  2,530
  2,651
  2,780
  2,915
  3,056
  3,206
  3,362
  3,527
  3,700
  3,883
  4,074
  4,275
  4,486
  4,708
  4,942
  5,187
  5,444
Funds from operations, $m
  0
  3,409
  3,546
  3,692
  3,846
  4,010
  4,184
  4,368
  4,563
  4,769
  4,986
  4,850
  5,092
  5,348
  5,618
  5,903
  6,203
  6,519
  6,852
  7,203
  7,573
  7,962
  8,371
  8,802
  9,256
  9,733
  10,235
  10,764
  11,319
  11,904
  12,518
Change in working capital, $m
  0
  -48
  -51
  -54
  -57
  -61
  -64
  -68
  -71
  -75
  -79
  -84
  -88
  -93
  -98
  -103
  -108
  -114
  -120
  -126
  -132
  -139
  -146
  -154
  -161
  -170
  -178
  -187
  -197
  -207
  -217
Cash from operations, $m
  0
  3,457
  3,597
  3,746
  3,903
  4,071
  4,248
  4,436
  4,634
  4,844
  5,066
  4,933
  5,180
  5,441
  5,716
  6,006
  6,311
  6,633
  6,972
  7,329
  7,705
  8,101
  8,518
  8,956
  9,418
  9,903
  10,414
  10,951
  11,516
  12,110
  12,735
Maintenance CAPEX, $m
  0
  -1,355
  -1,412
  -1,472
  -1,537
  -1,604
  -1,676
  -1,752
  -1,832
  -1,917
  -2,006
  -2,100
  -2,199
  -2,304
  -2,414
  -2,530
  -2,651
  -2,780
  -2,915
  -3,056
  -3,206
  -3,362
  -3,527
  -3,700
  -3,883
  -4,074
  -4,275
  -4,486
  -4,708
  -4,942
  -5,187
New CAPEX, $m
  0
  -568
  -604
  -641
  -679
  -718
  -759
  -802
  -846
  -892
  -941
  -992
  -1,044
  -1,100
  -1,158
  -1,219
  -1,282
  -1,349
  -1,418
  -1,491
  -1,568
  -1,648
  -1,733
  -1,821
  -1,914
  -2,011
  -2,113
  -2,220
  -2,332
  -2,450
  -2,574
Cash from investing activities, $m
  0
  -1,923
  -2,016
  -2,113
  -2,216
  -2,322
  -2,435
  -2,554
  -2,678
  -2,809
  -2,947
  -3,092
  -3,243
  -3,404
  -3,572
  -3,749
  -3,933
  -4,129
  -4,333
  -4,547
  -4,774
  -5,010
  -5,260
  -5,521
  -5,797
  -6,085
  -6,388
  -6,706
  -7,040
  -7,392
  -7,761
Free cash flow, $m
  0
  1,534
  1,581
  1,632
  1,688
  1,748
  1,813
  1,882
  1,956
  2,035
  2,119
  1,842
  1,937
  2,037
  2,144
  2,258
  2,378
  2,505
  2,639
  2,781
  2,932
  3,090
  3,258
  3,435
  3,621
  3,818
  4,026
  4,245
  4,475
  4,719
  4,975
Issuance/(repayment) of debt, $m
  0
  513
  562
  596
  631
  668
  706
  746
  787
  830
  875
  922
  972
  1,023
  1,077
  1,133
  1,192
  1,254
  1,319
  1,387
  1,459
  1,533
  1,612
  1,694
  1,780
  1,870
  1,965
  2,065
  2,169
  2,279
  2,394
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  0
  513
  562
  596
  631
  668
  706
  746
  787
  830
  875
  922
  972
  1,023
  1,077
  1,133
  1,192
  1,254
  1,319
  1,387
  1,459
  1,533
  1,612
  1,694
  1,780
  1,870
  1,965
  2,065
  2,169
  2,279
  2,394
Total cash flow (excl. dividends), $m
  0
  2,047
  2,143
  2,228
  2,319
  2,416
  2,519
  2,627
  2,743
  2,865
  2,994
  2,764
  2,908
  3,060
  3,221
  3,391
  3,570
  3,759
  3,959
  4,169
  4,390
  4,624
  4,869
  5,128
  5,401
  5,689
  5,991
  6,310
  6,645
  6,998
  7,369
Retained Cash Flow (-), $m
  0
  -180
  -189
  -201
  -213
  -225
  -238
  -251
  -265
  -280
  -295
  -311
  -327
  -345
  -363
  -382
  -402
  -423
  -444
  -467
  -491
  -517
  -543
  -571
  -600
  -630
  -662
  -696
  -731
  -768
  -807
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
 
  46
  48
  50
  52
  54
  57
  59
  62
  65
  68
  71
  75
  78
  82
  86
  90
  94
  99
  104
  109
  114
  120
  126
  132
  138
  145
  152
  160
  168
  176
Cash available for distribution, $m
 
  1,867
  1,954
  2,028
  2,107
  2,191
  2,281
  2,376
  2,478
  2,585
  2,699
  2,453
  2,581
  2,716
  2,858
  3,009
  3,169
  3,337
  3,514
  3,701
  3,899
  4,107
  4,326
  4,558
  4,802
  5,058
  5,329
  5,614
  5,914
  6,230
  6,562
Discount rate, %
 
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.18
  22.24
  23.35
  24.52
  25.74
  27.03
  28.38
  29.80
  31.29
  32.85
  34.50
  36.22
PV of cash for distribution, $m
 
  1,716
  1,637
  1,536
  1,429
  1,318
  1,204
  1,089
  974
  860
  751
  562
  480
  403
  333
  270
  215
  168
  129
  96
  70
  50
  35
  23
  15
  10
  6
  4
  2
  1
  1
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

Nielsen Holdings plc operates as an information and measurement company. It operates through two segments: Buy and Watch. The company provides media and marketing information, analytics, and manufacturer and retailer expertise about what and where consumers buy, read, watch and listen. The Buy segment provides retail transactional measurement data, consumer behavior information, and analytics primarily to businesses in the consumer packaged goods industry. This segment provides data on retail measurement services, such as market share, and competitive sales volumes; insights into distribution, pricing, merchandising, and promotion; consumer panel measurement, which offers insight into shopper behavior and customer segmentation; and consumer intelligence and analytical services for decision making in product development and marketing cycles. The Watch segment provides viewership and listening data, and analytics primarily to the media and advertising industries for television, radio, print, online, and mobile viewing, and listening platforms. This segment offers television audience measurement services; audio audience measurement services; digital audience measurement services, such as digital media and market research, audience analytics, and social media measurement; mobile measurement services comprising measurement and consumer research for telecom and media companies; and total audience measurement services, as well as advertising solutions. The company was formerly known as Nielsen N.V. and changed its name to Nielsen Holdings plc in August 2015. Nielsen Holdings plc was founded in 1923 and is headquartered in Oxford, the United Kingdom.

FINANCIAL RATIOS  of  Nielsen Holdings (NLSN)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

NLSN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NLSN stock intrinsic value calculation we used $6572 million for the last fiscal year's total revenue generated by Nielsen Holdings. The default revenue input number comes from income statement of Nielsen Holdings. 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 NLSN stock valuation model: a) initial revenue growth rate of 4.2% 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 8.8%, whose default value for NLSN is calculated based on our internal credit rating of Nielsen Holdings, 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 Nielsen Holdings.
    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 NLSN stock the variable cost ratio is equal to 68.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $843 million in the base year in the intrinsic value calculation for NLSN 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 5.4% for Nielsen Holdings.

Corporate tax rate of 27% is the nominal tax rate for Nielsen Holdings. 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 NLSN stock is equal to 0.7%.

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 NLSN are equal to 206.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Nielsen Holdings 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 NLSN is equal to -17.4%. 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 - $4245 million for Nielsen Holdings - 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 357 million for Nielsen Holdings 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 Nielsen Holdings at the current share price and the inputted number of shares is $11.1 billion.

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COMPANY NEWS

▶ Snapchat Integrates Nielsen Premium Audience Segments   [Jul-18-18 08:44AM  PR Newswire]
▶ Nielsen to Report Second Quarter 2018 Results   [Jul-12-18 04:10PM  Business Wire]
▶ What Bubba The Love Sponge said in settling the ratings tampering case with Nielsen   [Jul-09-18 07:27AM  American City Business Journals]
▶ Activision Blizzard Wades Deeper Into the E-Sports Waters   [Jun-26-18 02:17PM  InvestorPlace]
▶ How to Find the Best Dividend Stocks   [Jun-24-18 12:30PM  Motley Fool]
▶ Nielsen's ratings tampering case against Bubba the Love Sponge gets new trial date   [Jun-15-18 02:06PM  American City Business Journals]
▶ Dont Let Reality TV Scare You Away from Netflix, Inc. Stock   [Jun-01-18 10:41AM  InvestorPlace]
▶ 3 Unknown but Amazing Dividend Stocks   [May-29-18 10:20AM  Motley Fool]
▶ Nielsen to Present at Upcoming Conferences in May and June   [May-24-18 04:10PM  Business Wire]
▶ ComScore knocks down another obstacle, this time a lawsuit from a much larger rival   [May-21-18 03:14PM  American City Business Journals]
▶ Hong Kong Consumer Embraces Ecommerce Development   [May-14-18 11:00PM  PR Newswire]
▶ 9 Great Income Investments Youve Never Heard Of   [May-08-18 03:11PM  InvestorPlace]
▶ Nielsen to Present at Barclays Americas Select Conference   [May-07-18 04:10PM  Business Wire]
▶ Nielsen Media Index: Take-up of Mobile-first   [Apr-30-18 03:12AM  PR Newswire]
▶ 3 Top Dividend Stocks With Yields Over 4%   [Apr-27-18 07:49PM  Motley Fool]
▶ Nielsen Reports 1st Quarter 2018 Results   [06:30AM  Business Wire]
▶ ComScore Names New CEO   [Apr-23-18 02:46PM  Investopedia]
▶ 3 Unknown but Amazing Dividend Stocks   [09:28AM  Motley Fool]
▶ Nielsen Increases Quarterly Dividend   [Apr-19-18 04:10PM  Business Wire]
▶ Local connection brings Xbox co-founder Otto Berkes to Tampa Bay tech festival   [Apr-18-18 02:41PM  American City Business Journals]
▶ Activision Blizzard teams with Nielsen to measure value of its esports brands   [Apr-16-18 03:46PM  American City Business Journals]
▶ Why BMO Is Positive On Nielsen   [02:46PM  Benzinga]
▶ Del Monte Foods and Nielsen Grow Multi-Year Relationship   [Apr-13-18 01:50PM  PR Newswire]
▶ Nielsen to Report First Quarter 2018 Results   [Apr-12-18 04:10PM  Business Wire]
▶ Nielsen cuts 724 jobs in Oldsmar, North Venice   [Apr-04-18 05:42PM  American City Business Journals]
▶ CNN en Espa├▒ol Taps Nielsen For National TV Ratings   [Mar-29-18 11:44AM  PR Newswire]
▶ 3 High-Yield Tech Stocks That May Tempt Income Investors   [Mar-09-18 08:41PM  Motley Fool]
▶ Nielsen Declares Quarterly Dividend   [08:00AM  Business Wire]
▶ Why Nielsen Holdings Stock Dropped 10% Today   [Feb-08-18 07:38PM  Motley Fool]
▶ The Conference Board Consumer Confidence Index Improved   [Jan-30-18 10:00AM  PR Newswire]
▶ Nielsen to Report Fourth Quarter and Full Year 2017 Results   [Jan-25-18 04:15PM  Business Wire]
▶ John Rogers Comments on Nielsen Holdings   [Jan-18-18 05:59PM  GuruFocus.com]
Financial statements of NLSN
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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