Intrinsic value of Grupo Aeroportuario del Pacifico ADR - PAC

Previous Close

$102.89

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$102.89

 
Intrinsic value

$466.09

 
Up/down potential

+353%

 
Rating

str. buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of PAC 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 5.7

 

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, %
  36.98
  55.60
  50.54
  45.99
  41.89
  38.20
  34.88
  31.89
  29.20
  26.78
  24.60
  22.64
  20.88
  19.29
  17.86
  16.58
  15.42
  14.38
  13.44
  12.59
  11.84
  11.15
  10.54
  9.98
  9.48
  9.04
  8.63
  8.27
  7.94
  7.65
  7.38
Revenue, $m
  563
  876
  1,319
  1,925
  2,732
  3,775
  5,092
  6,716
  8,677
  11,000
  13,707
  16,811
  20,321
  24,241
  28,570
  33,306
  38,441
  43,968
  49,876
  56,158
  62,805
  69,809
  77,164
  84,867
  92,917
  101,313
  110,059
  119,160
  128,624
  138,461
  148,684
Variable operating expenses, $m
 
  435
  654
  955
  1,355
  1,872
  2,526
  3,331
  4,304
  5,456
  6,799
  8,338
  10,079
  12,023
  14,171
  16,520
  19,067
  21,808
  24,739
  27,854
  31,151
  34,625
  38,273
  42,094
  46,087
  50,251
  54,589
  59,103
  63,797
  68,677
  73,747
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
  298
  435
  654
  955
  1,355
  1,872
  2,526
  3,331
  4,304
  5,456
  6,799
  8,338
  10,079
  12,023
  14,171
  16,520
  19,067
  21,808
  24,739
  27,854
  31,151
  34,625
  38,273
  42,094
  46,087
  50,251
  54,589
  59,103
  63,797
  68,677
  73,747
Operating income, $m
  265
  442
  665
  970
  1,377
  1,903
  2,566
  3,385
  4,373
  5,544
  6,908
  8,473
  10,242
  12,217
  14,399
  16,786
  19,374
  22,160
  25,138
  28,304
  31,654
  35,184
  38,891
  42,773
  46,830
  51,062
  55,470
  60,057
  64,826
  69,784
  74,937
EBITDA, $m
  333
  547
  824
  1,202
  1,706
  2,357
  3,180
  4,194
  5,418
  6,870
  8,560
  10,498
  12,690
  15,138
  17,842
  20,799
  24,006
  27,457
  31,147
  35,070
  39,220
  43,594
  48,187
  52,998
  58,025
  63,268
  68,730
  74,413
  80,323
  86,466
  92,850
Interest expense (income), $m
  18
  22
  40
  65
  101
  147
  208
  284
  378
  492
  626
  783
  963
  1,166
  1,393
  1,644
  1,919
  2,216
  2,536
  2,879
  3,242
  3,628
  4,033
  4,459
  4,906
  5,372
  5,858
  6,365
  6,892
  7,441
  8,011
Earnings before tax, $m
  234
  420
  625
  905
  1,276
  1,755
  2,359
  3,101
  3,995
  5,053
  6,282
  7,689
  9,279
  11,051
  13,006
  15,142
  17,456
  19,944
  22,601
  25,425
  28,411
  31,556
  34,857
  38,314
  41,924
  45,690
  49,611
  53,691
  57,934
  62,344
  66,926
Tax expense, $m
  64
  113
  169
  244
  345
  474
  637
  837
  1,079
  1,364
  1,696
  2,076
  2,505
  2,984
  3,512
  4,088
  4,713
  5,385
  6,102
  6,865
  7,671
  8,520
  9,411
  10,345
  11,320
  12,336
  13,395
  14,497
  15,642
  16,833
  18,070
Net income, $m
  166
  306
  456
  661
  932
  1,281
  1,722
  2,263
  2,916
  3,688
  4,586
  5,613
  6,773
  8,067
  9,494
  11,054
  12,743
  14,559
  16,499
  18,560
  20,740
  23,036
  25,446
  27,969
  30,605
  33,353
  36,216
  39,195
  42,292
  45,511
  48,856

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  263
  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
  1,827
  2,433
  3,663
  5,348
  7,588
  10,486
  14,144
  18,655
  24,102
  30,557
  38,075
  46,696
  56,446
  67,335
  79,362
  92,517
  106,781
  122,133
  138,546
  155,995
  174,458
  193,913
  214,345
  235,743
  258,102
  281,424
  305,719
  330,999
  357,289
  384,615
  413,012
Adjusted assets (=assets-cash), $m
  1,564
  2,433
  3,663
  5,348
  7,588
  10,486
  14,144
  18,655
  24,102
  30,557
  38,075
  46,696
  56,446
  67,335
  79,362
  92,517
  106,781
  122,133
  138,546
  155,995
  174,458
  193,913
  214,345
  235,743
  258,102
  281,424
  305,719
  330,999
  357,289
  384,615
  413,012
Revenue / Adjusted assets
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
Average production assets, $m
  706
  1,098
  1,652
  2,412
  3,423
  4,730
  6,380
  8,415
  10,872
  13,784
  17,175
  21,064
  25,462
  30,373
  35,799
  41,733
  48,167
  55,092
  62,495
  70,366
  78,694
  87,470
  96,687
  106,339
  116,425
  126,945
  137,904
  149,307
  161,166
  173,492
  186,301
Working capital, $m
  206
  -82
  -124
  -181
  -257
  -355
  -479
  -631
  -816
  -1,034
  -1,288
  -1,580
  -1,910
  -2,279
  -2,686
  -3,131
  -3,613
  -4,133
  -4,688
  -5,279
  -5,904
  -6,562
  -7,253
  -7,978
  -8,734
  -9,523
  -10,346
  -11,201
  -12,091
  -13,015
  -13,976
Total debt, $m
  497
  904
  1,487
  2,286
  3,348
  4,722
  6,455
  8,593
  11,175
  14,235
  17,799
  21,885
  26,506
  31,668
  37,369
  43,604
  50,365
  57,642
  65,422
  73,693
  82,444
  91,666
  101,350
  111,493
  122,091
  133,146
  144,662
  156,645
  169,106
  182,058
  195,519
Total liabilities, $m
  746
  1,153
  1,736
  2,535
  3,597
  4,971
  6,704
  8,842
  11,424
  14,484
  18,048
  22,134
  26,755
  31,917
  37,618
  43,853
  50,614
  57,891
  65,671
  73,942
  82,693
  91,915
  101,599
  111,742
  122,340
  133,395
  144,911
  156,894
  169,355
  182,307
  195,768
Total equity, $m
  1,081
  1,280
  1,927
  2,813
  3,991
  5,516
  7,440
  9,812
  12,678
  16,073
  20,027
  24,562
  29,691
  35,418
  41,745
  48,664
  56,167
  64,242
  72,875
  82,053
  91,765
  101,998
  112,745
  124,001
  135,762
  148,029
  160,808
  174,106
  187,934
  202,307
  217,244
Total liabilities and equity, $m
  1,827
  2,433
  3,663
  5,348
  7,588
  10,487
  14,144
  18,654
  24,102
  30,557
  38,075
  46,696
  56,446
  67,335
  79,363
  92,517
  106,781
  122,133
  138,546
  155,995
  174,458
  193,913
  214,344
  235,743
  258,102
  281,424
  305,719
  331,000
  357,289
  384,614
  413,012
Debt-to-equity ratio
  0.460
  0.710
  0.770
  0.810
  0.840
  0.860
  0.870
  0.880
  0.880
  0.890
  0.890
  0.890
  0.890
  0.890
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
  0.900
Adjusted equity ratio
  0.523
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526
  0.526

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  166
  306
  456
  661
  932
  1,281
  1,722
  2,263
  2,916
  3,688
  4,586
  5,613
  6,773
  8,067
  9,494
  11,054
  12,743
  14,559
  16,499
  18,560
  20,740
  23,036
  25,446
  27,969
  30,605
  33,353
  36,216
  39,195
  42,292
  45,511
  48,856
Depreciation, amort., depletion, $m
  68
  106
  159
  232
  329
  455
  613
  809
  1,045
  1,325
  1,651
  2,025
  2,448
  2,921
  3,442
  4,013
  4,631
  5,297
  6,009
  6,766
  7,567
  8,411
  9,297
  10,225
  11,195
  12,206
  13,260
  14,356
  15,497
  16,682
  17,914
Funds from operations, $m
  231
  412
  615
  893
  1,261
  1,736
  2,335
  3,073
  3,962
  5,014
  6,237
  7,639
  9,222
  10,988
  12,937
  15,066
  17,374
  19,856
  22,508
  25,326
  28,307
  31,446
  34,743
  38,194
  41,799
  45,560
  49,476
  53,551
  57,789
  62,193
  66,770
Change in working capital, $m
  -61
  -29
  -42
  -57
  -76
  -98
  -124
  -153
  -184
  -218
  -254
  -292
  -330
  -368
  -407
  -445
  -483
  -519
  -555
  -590
  -625
  -658
  -691
  -724
  -757
  -789
  -822
  -856
  -890
  -925
  -961
Cash from operations, $m
  292
  443
  657
  950
  1,337
  1,834
  2,459
  3,225
  4,146
  5,232
  6,492
  7,930
  9,552
  11,356
  13,344
  15,512
  17,857
  20,376
  23,064
  25,917
  28,932
  32,105
  35,434
  38,918
  42,556
  46,349
  50,298
  54,407
  58,678
  63,118
  67,731
Maintenance CAPEX, $m
  0
  -68
  -106
  -159
  -232
  -329
  -455
  -613
  -809
  -1,045
  -1,325
  -1,651
  -2,025
  -2,448
  -2,921
  -3,442
  -4,013
  -4,631
  -5,297
  -6,009
  -6,766
  -7,567
  -8,411
  -9,297
  -10,225
  -11,195
  -12,206
  -13,260
  -14,356
  -15,497
  -16,682
New CAPEX, $m
  -94
  -392
  -555
  -760
  -1,010
  -1,307
  -1,650
  -2,035
  -2,457
  -2,912
  -3,391
  -3,889
  -4,398
  -4,912
  -5,425
  -5,934
  -6,434
  -6,925
  -7,404
  -7,871
  -8,328
  -8,776
  -9,216
  -9,652
  -10,086
  -10,520
  -10,959
  -11,404
  -11,859
  -12,326
  -12,809
Cash from investing activities, $m
  -92
  -460
  -661
  -919
  -1,242
  -1,636
  -2,105
  -2,648
  -3,266
  -3,957
  -4,716
  -5,540
  -6,423
  -7,360
  -8,346
  -9,376
  -10,447
  -11,556
  -12,701
  -13,880
  -15,094
  -16,343
  -17,627
  -18,949
  -20,311
  -21,715
  -23,165
  -24,664
  -26,215
  -27,823
  -29,491
Free cash flow, $m
  200
  -17
  -4
  31
  94
  198
  354
  577
  880
  1,275
  1,775
  2,390
  3,128
  3,996
  4,998
  6,136
  7,410
  8,820
  10,363
  12,037
  13,838
  15,762
  17,807
  19,969
  22,245
  24,634
  27,133
  29,743
  32,463
  35,295
  38,239
Issuance/(repayment) of debt, $m
  125
  411
  583
  798
  1,062
  1,374
  1,734
  2,138
  2,582
  3,060
  3,564
  4,087
  4,621
  5,161
  5,701
  6,235
  6,761
  7,276
  7,780
  8,271
  8,751
  9,222
  9,685
  10,143
  10,598
  11,055
  11,515
  11,983
  12,461
  12,952
  13,460
Issuance/(repurchase) of shares, $m
  -89
  0
  68
  57
  22
  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  
  18
  411
  651
  855
  1,084
  1,374
  1,734
  2,138
  2,582
  3,060
  3,564
  4,087
  4,621
  5,161
  5,701
  6,235
  6,761
  7,276
  7,780
  8,271
  8,751
  9,222
  9,685
  10,143
  10,598
  11,055
  11,515
  11,983
  12,461
  12,952
  13,460
Total cash flow (excl. dividends), $m
  219
  394
  579
  829
  1,156
  1,572
  2,088
  2,715
  3,462
  4,335
  5,339
  6,477
  7,750
  9,158
  10,699
  12,371
  14,171
  16,096
  18,143
  20,308
  22,589
  24,984
  27,492
  30,112
  32,844
  35,689
  38,649
  41,726
  44,924
  48,247
  51,700
Retained Cash Flow (-), $m
  -3
  -458
  -647
  -886
  -1,178
  -1,525
  -1,924
  -2,373
  -2,865
  -3,395
  -3,955
  -4,535
  -5,128
  -5,728
  -6,326
  -6,919
  -7,503
  -8,075
  -8,633
  -9,178
  -9,711
  -10,233
  -10,747
  -11,255
  -11,761
  -12,268
  -12,779
  -13,298
  -13,828
  -14,373
  -14,937
Prev. year cash balance distribution, $m
 
  259
  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
 
  195
  0
  0
  0
  47
  164
  343
  596
  939
  1,384
  1,942
  2,621
  3,430
  4,372
  5,452
  6,668
  8,021
  9,509
  11,129
  12,878
  14,751
  16,745
  18,856
  21,083
  23,421
  25,870
  28,428
  31,096
  33,874
  36,763
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  187
  0
  0
  0
  36
  119
  231
  373
  540
  726
  922
  1,119
  1,304
  1,468
  1,600
  1,694
  1,745
  1,751
  1,714
  1,636
  1,526
  1,389
  1,236
  1,074
  911
  755
  610
  481
  370
  277
Current shareholders' claim on cash, %
  100
  100.0
  99.0
  98.5
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3
  98.3

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. operates airports in Mexico’s Pacific region. It has 12 airports in Guadalajara, Tijuana, Puerto Vallarta, Los Cabos, La Paz, Manzanillo, Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

FINANCIAL RATIOS  of  Grupo Aeroportuario del Pacifico ADR (PAC)

Valuation Ratios
P/E Ratio 325.8
Price to Sales 96.1
Price to Book 50
Price to Tangible Book
Price to Cash Flow 185.2
Price to Free Cash Flow 273.1
Growth Rates
Sales Growth Rate 37%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 64.9%
Cap. Spend. - 3 Yr. Gr. Rate 21.8%
Financial Strength
Quick Ratio 66
Current Ratio 0
LT Debt to Equity 45.6%
Total Debt to Equity 46%
Interest Coverage 14
Management Effectiveness
Return On Assets 10.5%
Ret/ On Assets - 3 Yr. Avg. 10%
Return On Total Capital 11.1%
Ret/ On T. Cap. - 3 Yr. Avg. 10.5%
Return On Equity 15.4%
Return On Equity - 3 Yr. Avg. 12.8%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 48.1%
EBITDA Margin 56.8%
EBITDA Margin - 3 Yr. Avg. 62.1%
Operating Margin 47.1%
Oper. Margin - 3 Yr. Avg. 49.1%
Pre-Tax Margin 41.6%
Pre-Tax Margin - 3 Yr. Avg. 45.3%
Net Profit Margin 29.5%
Net Profit Margin - 3 Yr. Avg. 34.5%
Effective Tax Rate 27.4%
Eff/ Tax Rate - 3 Yr. Avg. 23.1%
Payout Ratio 65.1%

PAC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PAC stock intrinsic value calculation we used $563 million for the last fiscal year's total revenue generated by Grupo Aeroportuario del Pacifico ADR. The default revenue input number comes from 2016 income statement of Grupo Aeroportuario del Pacifico 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 PAC stock valuation model: a) initial revenue growth rate of 55.6% 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 4.3%, whose default value for PAC is calculated based on our internal credit rating of Grupo Aeroportuario del Pacifico 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 Grupo Aeroportuario del Pacifico 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 PAC stock the variable cost ratio is equal to 49.6%.

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 PAC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.4% for Grupo Aeroportuario del Pacifico ADR.

Corporate tax rate of 27% is the nominal tax rate for Grupo Aeroportuario del Pacifico 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 PAC 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 PAC are equal to 125.3%.

Life of production assets of 10.4 years is the average useful life of capital assets used in Grupo Aeroportuario del Pacifico 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 PAC is equal to -9.4%. 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 - $1081 million for Grupo Aeroportuario del Pacifico 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 55.716 million for Grupo Aeroportuario del Pacifico 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 Grupo Aeroportuario del Pacifico ADR at the current share price and the inputted number of shares is $5.7 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
OMAB Grupo Aeroport 44.36 152.48  str.buy
ASR Grupo Aeroport 189.40 48.99  str.sell

COMPANY NEWS

▶ Is Erie Indemnity Company (ERIE) a Good Stock to Buy?   [Dec-13-16 06:54AM  at Insider Monkey]
▶ Is Frontier Communications Corp (FTR) A Good Stock to Sell?   [Nov-27-16 02:23PM  at Insider Monkey]
Stock chart of PAC Financial statements of PAC
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.