Intrinsic value of Sina - SINA

Previous Close

$111.09

  Intrinsic Value

$306.74

stock screener

  Rating & Target

str. buy

+176%

Previous close

$111.09

 
Intrinsic value

$306.74

 
Up/down potential

+176%

 
Rating

str. buy

We calculate the intrinsic value of SINA 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 7.9

 

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, %
  17.03
  47.10
  42.89
  39.10
  35.69
  32.62
  29.86
  27.37
  25.14
  23.12
  21.31
  19.68
  18.21
  16.89
  15.70
  14.63
  13.67
  12.80
  12.02
  11.32
  10.69
  10.12
  9.61
  9.15
  8.73
  8.36
  8.02
  7.72
  7.45
  7.20
  6.98
Revenue, $m
  1,031
  1,517
  2,167
  3,014
  4,090
  5,425
  7,044
  8,973
  11,228
  13,824
  16,770
  20,071
  23,726
  27,733
  32,088
  36,782
  41,810
  47,162
  52,831
  58,811
  65,097
  71,683
  78,570
  85,755
  93,243
  101,036
  109,142
  117,568
  126,324
  135,424
  144,880
Variable operating expenses, $m
 
  1,263
  1,804
  2,509
  3,404
  4,514
  5,862
  7,467
  9,343
  11,503
  13,954
  16,699
  19,741
  23,075
  26,698
  30,604
  34,787
  39,240
  43,957
  48,933
  54,162
  59,643
  65,372
  71,351
  77,581
  84,065
  90,809
  97,820
  105,106
  112,677
  120,545
Fixed operating expenses, $m
 
  151
  154
  158
  162
  166
  170
  175
  179
  184
  188
  193
  198
  203
  208
  213
  218
  224
  229
  235
  241
  247
  253
  259
  266
  273
  279
  286
  293
  301
  308
Total operating expenses, $m
  1,002
  1,414
  1,958
  2,667
  3,566
  4,680
  6,032
  7,642
  9,522
  11,687
  14,142
  16,892
  19,939
  23,278
  26,906
  30,817
  35,005
  39,464
  44,186
  49,168
  54,403
  59,890
  65,625
  71,610
  77,847
  84,338
  91,088
  98,106
  105,399
  112,978
  120,853
Operating income, $m
  29
  103
  209
  347
  524
  744
  1,012
  1,331
  1,706
  2,137
  2,628
  3,178
  3,788
  4,456
  5,182
  5,965
  6,805
  7,698
  8,645
  9,644
  10,693
  11,794
  12,944
  14,145
  15,396
  16,699
  18,053
  19,462
  20,925
  22,446
  24,027
EBITDA, $m
  58
  139
  259
  417
  619
  870
  1,175
  1,539
  1,965
  2,457
  3,015
  3,640
  4,334
  5,094
  5,921
  6,812
  7,767
  8,784
  9,861
  10,997
  12,192
  13,444
  14,753
  16,119
  17,542
  19,024
  20,565
  22,167
  23,833
  25,563
  27,362
Interest expense (income), $m
  8
  5
  31
  66
  111
  169
  240
  327
  430
  550
  689
  846
  1,023
  1,218
  1,432
  1,665
  1,916
  2,184
  2,470
  2,773
  3,093
  3,428
  3,780
  4,148
  4,532
  4,932
  5,349
  5,782
  6,232
  6,700
  7,186
Earnings before tax, $m
  305
  98
  177
  281
  412
  575
  772
  1,005
  1,276
  1,587
  1,939
  2,332
  2,765
  3,238
  3,750
  4,301
  4,889
  5,514
  6,175
  6,870
  7,601
  8,365
  9,164
  9,997
  10,864
  11,766
  12,705
  13,680
  14,693
  15,746
  16,841
Tax expense, $m
  28
  26
  48
  76
  111
  155
  208
  271
  345
  429
  523
  630
  746
  874
  1,012
  1,161
  1,320
  1,489
  1,667
  1,855
  2,052
  2,259
  2,474
  2,699
  2,933
  3,177
  3,430
  3,694
  3,967
  4,252
  4,547
Net income, $m
  225
  71
  129
  205
  301
  420
  563
  733
  932
  1,159
  1,415
  1,702
  2,018
  2,364
  2,737
  3,139
  3,569
  4,025
  4,507
  5,015
  5,549
  6,107
  6,690
  7,298
  7,931
  8,589
  9,274
  9,986
  10,726
  11,495
  12,294

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,797
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,285
  3,663
  5,234
  7,281
  9,880
  13,103
  17,015
  21,673
  27,121
  33,392
  40,508
  48,480
  57,309
  66,988
  77,506
  88,846
  100,990
  113,918
  127,612
  142,056
  157,238
  173,148
  189,782
  207,139
  225,225
  244,049
  263,628
  283,980
  305,131
  327,111
  349,953
Adjusted assets (=assets-cash), $m
  2,488
  3,663
  5,234
  7,281
  9,880
  13,103
  17,015
  21,673
  27,121
  33,392
  40,508
  48,480
  57,309
  66,988
  77,506
  88,846
  100,990
  113,918
  127,612
  142,056
  157,238
  173,148
  189,782
  207,139
  225,225
  244,049
  263,628
  283,980
  305,131
  327,111
  349,953
Revenue / Adjusted assets
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
Average production assets, $m
  150
  220
  314
  437
  593
  787
  1,021
  1,301
  1,628
  2,005
  2,432
  2,910
  3,440
  4,021
  4,653
  5,333
  6,062
  6,838
  7,661
  8,528
  9,439
  10,394
  11,393
  12,435
  13,520
  14,650
  15,826
  17,047
  18,317
  19,636
  21,008
Working capital, $m
  1,685
  -117
  -167
  -232
  -315
  -418
  -542
  -691
  -865
  -1,064
  -1,291
  -1,545
  -1,827
  -2,135
  -2,471
  -2,832
  -3,219
  -3,631
  -4,068
  -4,528
  -5,012
  -5,520
  -6,050
  -6,603
  -7,180
  -7,780
  -8,404
  -9,053
  -9,727
  -10,428
  -11,156
Total debt, $m
  186
  896
  1,889
  3,183
  4,825
  6,862
  9,335
  12,278
  15,721
  19,685
  24,182
  29,220
  34,800
  40,918
  47,565
  54,732
  62,407
  70,577
  79,232
  88,361
  97,955
  108,011
  118,523
  129,493
  140,923
  152,820
  165,194
  178,056
  191,424
  205,315
  219,751
Total liabilities, $m
  1,605
  2,315
  3,308
  4,602
  6,244
  8,281
  10,754
  13,697
  17,140
  21,104
  25,601
  30,639
  36,219
  42,337
  48,984
  56,151
  63,826
  71,996
  80,651
  89,780
  99,374
  109,430
  119,942
  130,912
  142,342
  154,239
  166,613
  179,475
  192,843
  206,734
  221,170
Total equity, $m
  2,680
  1,348
  1,926
  2,679
  3,636
  4,822
  6,262
  7,976
  9,981
  12,288
  14,907
  17,841
  21,090
  24,652
  28,522
  32,695
  37,164
  41,922
  46,961
  52,277
  57,864
  63,718
  69,840
  76,227
  82,883
  89,810
  97,015
  104,505
  112,288
  120,377
  128,783
Total liabilities and equity, $m
  4,285
  3,663
  5,234
  7,281
  9,880
  13,103
  17,016
  21,673
  27,121
  33,392
  40,508
  48,480
  57,309
  66,989
  77,506
  88,846
  100,990
  113,918
  127,612
  142,057
  157,238
  173,148
  189,782
  207,139
  225,225
  244,049
  263,628
  283,980
  305,131
  327,111
  349,953
Debt-to-equity ratio
  0.069
  0.660
  0.980
  1.190
  1.330
  1.420
  1.490
  1.540
  1.580
  1.600
  1.620
  1.640
  1.650
  1.660
  1.670
  1.670
  1.680
  1.680
  1.690
  1.690
  1.690
  1.700
  1.700
  1.700
  1.700
  1.700
  1.700
  1.700
  1.700
  1.710
  1.710
Adjusted equity ratio
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  225
  71
  129
  205
  301
  420
  563
  733
  932
  1,159
  1,415
  1,702
  2,018
  2,364
  2,737
  3,139
  3,569
  4,025
  4,507
  5,015
  5,549
  6,107
  6,690
  7,298
  7,931
  8,589
  9,274
  9,986
  10,726
  11,495
  12,294
Depreciation, amort., depletion, $m
  29
  36
  51
  70
  95
  126
  163
  208
  259
  319
  387
  462
  546
  638
  739
  847
  962
  1,085
  1,216
  1,354
  1,498
  1,650
  1,808
  1,974
  2,146
  2,325
  2,512
  2,706
  2,907
  3,117
  3,335
Funds from operations, $m
  659
  107
  180
  275
  396
  546
  726
  941
  1,191
  1,478
  1,802
  2,164
  2,564
  3,002
  3,476
  3,986
  4,531
  5,111
  5,723
  6,369
  7,047
  7,757
  8,498
  9,271
  10,077
  10,915
  11,786
  12,692
  13,634
  14,612
  15,629
Change in working capital, $m
  215
  -37
  -50
  -65
  -83
  -103
  -125
  -148
  -174
  -200
  -227
  -254
  -281
  -309
  -335
  -361
  -387
  -412
  -437
  -460
  -484
  -507
  -530
  -553
  -577
  -600
  -624
  -649
  -674
  -701
  -728
Cash from operations, $m
  444
  145
  230
  341
  479
  648
  851
  1,089
  1,365
  1,678
  2,029
  2,418
  2,846
  3,310
  3,811
  4,348
  4,918
  5,523
  6,160
  6,829
  7,531
  8,264
  9,028
  9,825
  10,653
  11,515
  12,410
  13,341
  14,308
  15,312
  16,357
Maintenance CAPEX, $m
  0
  -24
  -35
  -50
  -69
  -94
  -125
  -162
  -207
  -258
  -318
  -386
  -462
  -546
  -638
  -739
  -847
  -962
  -1,085
  -1,216
  -1,354
  -1,498
  -1,650
  -1,808
  -1,974
  -2,146
  -2,325
  -2,512
  -2,706
  -2,907
  -3,117
New CAPEX, $m
  -38
  -70
  -94
  -123
  -156
  -193
  -235
  -280
  -327
  -376
  -427
  -479
  -530
  -581
  -631
  -681
  -729
  -776
  -822
  -867
  -911
  -955
  -999
  -1,042
  -1,086
  -1,130
  -1,175
  -1,222
  -1,270
  -1,319
  -1,371
Cash from investing activities, $m
  845
  -94
  -129
  -173
  -225
  -287
  -360
  -442
  -534
  -634
  -745
  -865
  -992
  -1,127
  -1,269
  -1,420
  -1,576
  -1,738
  -1,907
  -2,083
  -2,265
  -2,453
  -2,649
  -2,850
  -3,060
  -3,276
  -3,500
  -3,734
  -3,976
  -4,226
  -4,488
Free cash flow, $m
  1,289
  51
  101
  168
  254
  361
  491
  648
  831
  1,043
  1,284
  1,554
  1,854
  2,183
  2,542
  2,928
  3,343
  3,784
  4,252
  4,746
  5,266
  5,810
  6,380
  6,974
  7,594
  8,239
  8,910
  9,607
  10,332
  11,086
  11,869
Issuance/(repayment) of debt, $m
  -610
  743
  993
  1,294
  1,642
  2,037
  2,473
  2,944
  3,443
  3,963
  4,497
  5,038
  5,580
  6,118
  6,647
  7,167
  7,675
  8,170
  8,655
  9,129
  9,595
  10,055
  10,512
  10,970
  11,430
  11,897
  12,374
  12,863
  13,368
  13,891
  14,436
Issuance/(repurchase) of shares, $m
  10
  361
  449
  548
  655
  766
  877
  981
  1,073
  1,149
  1,203
  1,231
  1,231
  1,199
  1,133
  1,034
  900
  732
  532
  300
  38
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -603
  1,104
  1,442
  1,842
  2,297
  2,803
  3,350
  3,925
  4,516
  5,112
  5,700
  6,269
  6,811
  7,317
  7,780
  8,201
  8,575
  8,902
  9,187
  9,429
  9,633
  10,055
  10,512
  10,970
  11,430
  11,897
  12,374
  12,863
  13,368
  13,891
  14,436
Total cash flow (excl. dividends), $m
  644
  1,155
  1,543
  2,010
  2,551
  3,164
  3,841
  4,572
  5,347
  6,155
  6,984
  7,823
  8,664
  9,499
  10,322
  11,129
  11,917
  12,687
  13,439
  14,175
  14,899
  15,865
  16,892
  17,944
  19,024
  20,136
  21,283
  22,470
  23,700
  24,977
  26,305
Retained Cash Flow (-), $m
  -115
  -432
  -578
  -753
  -956
  -1,186
  -1,440
  -1,714
  -2,005
  -2,308
  -2,619
  -2,934
  -3,249
  -3,562
  -3,871
  -4,173
  -4,469
  -4,757
  -5,039
  -5,316
  -5,587
  -5,855
  -6,121
  -6,387
  -6,656
  -6,927
  -7,205
  -7,490
  -7,784
  -8,088
  -8,406
Prev. year cash balance distribution, $m
 
  1,764
  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
 
  2,487
  965
  1,256
  1,595
  1,978
  2,401
  2,858
  3,343
  3,848
  4,366
  4,890
  5,415
  5,937
  6,451
  6,956
  7,449
  7,930
  8,400
  8,860
  9,312
  10,011
  10,771
  11,557
  12,369
  13,208
  14,078
  14,980
  15,916
  16,888
  17,899
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
 
  2,384
  883
  1,093
  1,313
  1,533
  1,742
  1,931
  2,089
  2,210
  2,289
  2,322
  2,311
  2,257
  2,166
  2,042
  1,893
  1,725
  1,547
  1,364
  1,183
  1,035
  894
  757
  630
  514
  411
  322
  246
  184
  135
Current shareholders' claim on cash, %
  100
  88.3
  79.4
  72.4
  66.9
  62.4
  58.8
  55.9
  53.5
  51.5
  49.8
  48.5
  47.4
  46.5
  45.8
  45.2
  44.8
  44.5
  44.3
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2
  44.2

Sina Corporation is an online media company serving China and the global Chinese communities. The Company's digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company's segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.

FINANCIAL RATIOS  of  Sina (SINA)

Valuation Ratios
P/E Ratio 35
Price to Sales 7.6
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 17.7
Price to Free Cash Flow 19.4
Growth Rates
Sales Growth Rate 17%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -15.6%
Cap. Spend. - 3 Yr. Gr. Rate -17.3%
Financial Strength
Quick Ratio 54
Current Ratio 0.3
LT Debt to Equity 5.7%
Total Debt to Equity 6.9%
Interest Coverage 39
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 7.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.1%
Return On Equity 8.6%
Return On Equity - 3 Yr. Avg. 6.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 65.6%
Gross Margin - 3 Yr. Avg. 63.2%
EBITDA Margin 33.2%
EBITDA Margin - 3 Yr. Avg. 24.1%
Operating Margin 2.8%
Oper. Margin - 3 Yr. Avg. -1.6%
Pre-Tax Margin 29.6%
Pre-Tax Margin - 3 Yr. Avg. 18.9%
Net Profit Margin 21.8%
Net Profit Margin - 3 Yr. Avg. 15.9%
Effective Tax Rate 9.2%
Eff/ Tax Rate - 3 Yr. Avg. 11.7%
Payout Ratio 0%

SINA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SINA stock intrinsic value calculation we used $1031 million for the last fiscal year's total revenue generated by Sina. The default revenue input number comes from 2016 income statement of Sina. 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 SINA stock valuation model: a) initial revenue growth rate of 47.1% 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 SINA is calculated based on our internal credit rating of Sina, 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 Sina.
    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 SINA stock the variable cost ratio is equal to 83.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $147 million in the base year in the intrinsic value calculation for SINA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Sina.

Corporate tax rate of 27% is the nominal tax rate for Sina. 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 SINA 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 SINA are equal to 14.5%.

Life of production assets of 6.3 years is the average useful life of capital assets used in Sina 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 SINA is equal to -7.7%. 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 - $2680 million for Sina - 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 71.506 million for Sina 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 Sina at the current share price and the inputted number of shares is $7.9 billion.

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Financial statements of SINA
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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