Intrinsic value of Telekomunikasi Indonesia ADR - TLK

Previous Close

$31.12

  Intrinsic Value

$62.71

stock screener

  Rating & Target

str. buy

+102%

Previous close

$31.12

 
Intrinsic value

$62.71

 
Up/down potential

+102%

 
Rating

str. buy

We calculate the intrinsic value of TLK 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 31.3

 

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, %
  13.53
  14.10
  13.19
  12.37
  11.63
  10.97
  10.37
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
  5.81
  5.73
  5.65
  5.59
  5.53
  5.48
  5.43
Revenue, $m
  8,686
  9,911
  11,218
  12,606
  14,072
  15,616
  17,236
  18,931
  20,702
  22,548
  24,470
  26,470
  28,550
  30,711
  32,957
  35,291
  37,716
  40,238
  42,861
  45,589
  48,429
  51,386
  54,467
  57,679
  61,028
  64,522
  68,170
  71,979
  75,959
  80,119
  84,468
Variable operating expenses, $m
 
  5,044
  5,709
  6,415
  7,161
  7,946
  8,770
  9,632
  10,533
  11,472
  12,450
  13,464
  14,521
  15,621
  16,763
  17,950
  19,184
  20,466
  21,800
  23,188
  24,633
  26,137
  27,704
  29,337
  31,041
  32,818
  34,673
  36,611
  38,635
  40,751
  42,963
Fixed operating expenses, $m
 
  1,405
  1,440
  1,476
  1,513
  1,551
  1,590
  1,630
  1,670
  1,712
  1,755
  1,799
  1,844
  1,890
  1,937
  1,986
  2,035
  2,086
  2,138
  2,192
  2,247
  2,303
  2,360
  2,419
  2,480
  2,542
  2,605
  2,670
  2,737
  2,806
  2,876
Total operating expenses, $m
  5,761
  6,449
  7,149
  7,891
  8,674
  9,497
  10,360
  11,262
  12,203
  13,184
  14,205
  15,263
  16,365
  17,511
  18,700
  19,936
  21,219
  22,552
  23,938
  25,380
  26,880
  28,440
  30,064
  31,756
  33,521
  35,360
  37,278
  39,281
  41,372
  43,557
  45,839
Operating income, $m
  2,925
  3,461
  4,069
  4,714
  5,398
  6,119
  6,876
  7,669
  8,499
  9,364
  10,266
  11,208
  12,185
  13,200
  14,257
  15,355
  16,497
  17,686
  18,922
  20,209
  21,550
  22,947
  24,403
  25,922
  27,507
  29,163
  30,891
  32,698
  34,587
  36,562
  38,629
EBITDA, $m
  2,925
  4,454
  5,191
  5,976
  6,806
  7,681
  8,599
  9,562
  10,568
  11,617
  12,711
  13,849
  15,034
  16,265
  17,546
  18,877
  20,262
  21,701
  23,200
  24,759
  26,383
  28,075
  29,839
  31,679
  33,598
  35,602
  37,695
  39,882
  42,168
  44,558
  47,059
Interest expense (income), $m
  -258
  69
  102
  137
  175
  215
  256
  300
  346
  394
  444
  496
  550
  606
  664
  725
  788
  853
  922
  992
  1,066
  1,143
  1,223
  1,306
  1,393
  1,483
  1,578
  1,676
  1,779
  1,887
  1,999
Earnings before tax, $m
  2,850
  3,392
  3,966
  4,577
  5,223
  5,904
  6,620
  7,369
  8,153
  8,970
  9,822
  10,712
  11,635
  12,595
  13,593
  14,630
  15,710
  16,832
  18,001
  19,217
  20,484
  21,804
  23,181
  24,616
  26,115
  27,679
  29,314
  31,022
  32,808
  34,676
  36,630
Tax expense, $m
  674
  916
  1,071
  1,236
  1,410
  1,594
  1,787
  1,990
  2,201
  2,422
  2,652
  2,892
  3,141
  3,401
  3,670
  3,950
  4,242
  4,545
  4,860
  5,189
  5,531
  5,887
  6,259
  6,646
  7,051
  7,473
  7,915
  8,376
  8,858
  9,362
  9,890
Net income, $m
  1,443
  2,476
  2,895
  3,341
  3,813
  4,310
  4,832
  5,380
  5,952
  6,548
  7,170
  7,820
  8,494
  9,194
  9,923
  10,680
  11,468
  12,288
  13,140
  14,028
  14,953
  15,917
  16,922
  17,970
  19,064
  20,206
  21,399
  22,646
  23,950
  25,313
  26,740

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,332
  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
  13,391
  12,625
  14,290
  16,058
  17,926
  19,893
  21,957
  24,116
  26,372
  28,723
  31,172
  33,720
  36,369
  39,122
  41,983
  44,956
  48,046
  51,259
  54,600
  58,076
  61,693
  65,460
  69,385
  73,476
  77,743
  82,194
  86,841
  91,693
  96,763
  102,062
  107,603
Adjusted assets (=assets-cash), $m
  11,059
  12,625
  14,290
  16,058
  17,926
  19,893
  21,957
  24,116
  26,372
  28,723
  31,172
  33,720
  36,369
  39,122
  41,983
  44,956
  48,046
  51,259
  54,600
  58,076
  61,693
  65,460
  69,385
  73,476
  77,743
  82,194
  86,841
  91,693
  96,763
  102,062
  107,603
Revenue / Adjusted assets
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
  0.785
Average production assets, $m
  8,668
  9,891
  11,196
  12,581
  14,044
  15,585
  17,202
  18,893
  20,660
  22,503
  24,421
  26,417
  28,493
  30,649
  32,891
  35,220
  37,641
  40,158
  42,775
  45,498
  48,332
  51,284
  54,358
  57,564
  60,906
  64,393
  68,034
  71,835
  75,807
  79,959
  84,299
Working capital, $m
  593
  -1,516
  -1,716
  -1,929
  -2,153
  -2,389
  -2,637
  -2,896
  -3,167
  -3,450
  -3,744
  -4,050
  -4,368
  -4,699
  -5,042
  -5,399
  -5,771
  -6,156
  -6,558
  -6,975
  -7,410
  -7,862
  -8,334
  -8,825
  -9,337
  -9,872
  -10,430
  -11,013
  -11,622
  -12,258
  -12,924
Total debt, $m
  2,374
  2,918
  3,927
  4,998
  6,130
  7,322
  8,573
  9,882
  11,248
  12,673
  14,157
  15,701
  17,307
  18,975
  20,709
  22,511
  24,383
  26,330
  28,354
  30,461
  32,653
  34,936
  37,314
  39,794
  42,379
  45,077
  47,893
  50,833
  53,906
  57,117
  60,474
Total liabilities, $m
  7,107
  7,651
  8,660
  9,731
  10,863
  12,055
  13,306
  14,615
  15,981
  17,406
  18,890
  20,434
  22,040
  23,708
  25,442
  27,244
  29,116
  31,063
  33,087
  35,194
  37,386
  39,669
  42,047
  44,527
  47,112
  49,810
  52,626
  55,566
  58,639
  61,850
  65,207
Total equity, $m
  6,284
  4,974
  5,630
  6,327
  7,063
  7,838
  8,651
  9,502
  10,391
  11,317
  12,282
  13,286
  14,329
  15,414
  16,541
  17,713
  18,930
  20,196
  21,512
  22,882
  24,307
  25,791
  27,338
  28,950
  30,631
  32,385
  34,215
  36,127
  38,125
  40,213
  42,396
Total liabilities and equity, $m
  13,391
  12,625
  14,290
  16,058
  17,926
  19,893
  21,957
  24,117
  26,372
  28,723
  31,172
  33,720
  36,369
  39,122
  41,983
  44,957
  48,046
  51,259
  54,599
  58,076
  61,693
  65,460
  69,385
  73,477
  77,743
  82,195
  86,841
  91,693
  96,764
  102,063
  107,603
Debt-to-equity ratio
  0.378
  0.590
  0.700
  0.790
  0.870
  0.930
  0.990
  1.040
  1.080
  1.120
  1.150
  1.180
  1.210
  1.230
  1.250
  1.270
  1.290
  1.300
  1.320
  1.330
  1.340
  1.350
  1.360
  1.370
  1.380
  1.390
  1.400
  1.410
  1.410
  1.420
  1.430
Adjusted equity ratio
  0.364
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,443
  2,476
  2,895
  3,341
  3,813
  4,310
  4,832
  5,380
  5,952
  6,548
  7,170
  7,820
  8,494
  9,194
  9,923
  10,680
  11,468
  12,288
  13,140
  14,028
  14,953
  15,917
  16,922
  17,970
  19,064
  20,206
  21,399
  22,646
  23,950
  25,313
  26,740
Depreciation, amort., depletion, $m
  0
  992
  1,123
  1,261
  1,408
  1,562
  1,723
  1,893
  2,069
  2,253
  2,445
  2,642
  2,849
  3,065
  3,289
  3,522
  3,764
  4,016
  4,278
  4,550
  4,833
  5,128
  5,436
  5,756
  6,091
  6,439
  6,803
  7,184
  7,581
  7,996
  8,430
Funds from operations, $m
  2,646
  3,469
  4,018
  4,602
  5,221
  5,872
  6,556
  7,272
  8,021
  8,802
  9,615
  10,462
  11,343
  12,259
  13,212
  14,202
  15,232
  16,303
  17,418
  18,578
  19,786
  21,045
  22,358
  23,726
  25,154
  26,645
  28,202
  29,829
  31,530
  33,309
  35,170
Change in working capital, $m
  -880
  -187
  -200
  -212
  -224
  -236
  -248
  -259
  -271
  -282
  -294
  -306
  -318
  -331
  -344
  -357
  -371
  -386
  -401
  -417
  -435
  -452
  -471
  -491
  -512
  -535
  -558
  -583
  -609
  -636
  -665
Cash from operations, $m
  3,526
  3,656
  4,218
  4,815
  5,445
  6,108
  6,804
  7,532
  8,292
  9,084
  9,910
  10,768
  11,661
  12,590
  13,555
  14,559
  15,603
  16,689
  17,819
  18,996
  20,221
  21,498
  22,829
  24,218
  25,667
  27,180
  28,760
  30,412
  32,139
  33,945
  35,835
Maintenance CAPEX, $m
  0
  -867
  -989
  -1,120
  -1,258
  -1,404
  -1,558
  -1,720
  -1,889
  -2,066
  -2,250
  -2,442
  -2,642
  -2,849
  -3,065
  -3,289
  -3,522
  -3,764
  -4,016
  -4,278
  -4,550
  -4,833
  -5,128
  -5,436
  -5,756
  -6,091
  -6,439
  -6,803
  -7,184
  -7,581
  -7,996
New CAPEX, $m
  -2,182
  -1,223
  -1,305
  -1,385
  -1,464
  -1,541
  -1,617
  -1,692
  -1,767
  -1,842
  -1,918
  -1,996
  -2,075
  -2,157
  -2,241
  -2,329
  -2,421
  -2,517
  -2,617
  -2,723
  -2,834
  -2,951
  -3,075
  -3,205
  -3,342
  -3,487
  -3,640
  -3,802
  -3,972
  -4,151
  -4,341
Cash from investing activities, $m
  -2,058
  -2,090
  -2,294
  -2,505
  -2,722
  -2,945
  -3,175
  -3,412
  -3,656
  -3,908
  -4,168
  -4,438
  -4,717
  -5,006
  -5,306
  -5,618
  -5,943
  -6,281
  -6,633
  -7,001
  -7,384
  -7,784
  -8,203
  -8,641
  -9,098
  -9,578
  -10,079
  -10,605
  -11,156
  -11,732
  -12,337
Free cash flow, $m
  1,468
  1,566
  1,925
  2,310
  2,723
  3,163
  3,628
  4,119
  4,635
  5,176
  5,741
  6,330
  6,944
  7,584
  8,249
  8,941
  9,660
  10,408
  11,186
  11,995
  12,837
  13,713
  14,626
  15,577
  16,568
  17,602
  18,681
  19,807
  20,984
  22,213
  23,499
Issuance/(repayment) of debt, $m
  -230
  950
  1,009
  1,071
  1,132
  1,192
  1,251
  1,309
  1,367
  1,425
  1,484
  1,544
  1,605
  1,668
  1,734
  1,802
  1,873
  1,947
  2,025
  2,106
  2,192
  2,283
  2,378
  2,479
  2,585
  2,698
  2,816
  2,941
  3,072
  3,211
  3,358
Issuance/(repurchase) of shares, $m
  243
  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  
  -500
  950
  1,009
  1,071
  1,132
  1,192
  1,251
  1,309
  1,367
  1,425
  1,484
  1,544
  1,605
  1,668
  1,734
  1,802
  1,873
  1,947
  2,025
  2,106
  2,192
  2,283
  2,378
  2,479
  2,585
  2,698
  2,816
  2,941
  3,072
  3,211
  3,358
Total cash flow (excl. dividends), $m
  960
  2,516
  2,934
  3,382
  3,855
  4,355
  4,879
  5,428
  6,002
  6,601
  7,225
  7,873
  8,549
  9,252
  9,983
  10,743
  11,533
  12,355
  13,211
  14,101
  15,029
  15,996
  17,004
  18,056
  19,153
  20,299
  21,497
  22,748
  24,056
  25,425
  26,857
Retained Cash Flow (-), $m
  -689
  -616
  -656
  -697
  -736
  -775
  -813
  -851
  -889
  -927
  -965
  -1,004
  -1,044
  -1,085
  -1,127
  -1,171
  -1,218
  -1,266
  -1,316
  -1,369
  -1,425
  -1,484
  -1,546
  -1,612
  -1,681
  -1,754
  -1,831
  -1,912
  -1,998
  -2,088
  -2,183
Prev. year cash balance distribution, $m
 
  1,926
  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
 
  3,826
  2,278
  2,685
  3,119
  3,580
  4,066
  4,577
  5,113
  5,674
  6,260
  6,870
  7,506
  8,167
  8,855
  9,571
  10,315
  11,089
  11,894
  12,732
  13,604
  14,512
  15,458
  16,444
  17,472
  18,546
  19,666
  20,836
  22,059
  23,337
  24,674
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
 
  3,668
  2,085
  2,337
  2,568
  2,775
  2,951
  3,092
  3,196
  3,260
  3,282
  3,262
  3,203
  3,105
  2,973
  2,810
  2,621
  2,413
  2,190
  1,960
  1,729
  1,501
  1,283
  1,078
  890
  721
  574
  447
  341
  255
  186
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

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk offers telecommunications and network services. The Company's segments include Corporate, Home, Personal and Others. The Corporate segment provides telecommunications services, including interconnection, leased lines, satellite, contact center, broadband access, information technology services, and data and Internet services to companies and institutions. The Home segment provides fixed wireline telecommunications services, pay television, and data and Internet services to home customers. The Personal segment provides mobile cellular and fixed wireless telecommunications services to individual customers. The Others segment provides building management services. The Company's postpaid mobile services are marketed under the kartuHalo brand, and its prepaid services are marketed under the simPATI, Kartu As and Loop brands. The Company operates its e-money business under the T-cash brand name.

FINANCIAL RATIOS  of  Telekomunikasi Indonesia ADR (TLK)

Valuation Ratios
P/E Ratio 2136.4
Price to Sales 354.9
Price to Book 490.6
Price to Tangible Book
Price to Cash Flow 874.3
Price to Free Cash Flow 2293.8
Growth Rates
Sales Growth Rate 13.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.4%
Cap. Spend. - 3 Yr. Gr. Rate 6.8%
Financial Strength
Quick Ratio 6
Current Ratio 0
LT Debt to Equity 31.3%
Total Debt to Equity 37.8%
Interest Coverage -10
Management Effectiveness
Return On Assets 9.7%
Ret/ On Assets - 3 Yr. Avg. 9.4%
Return On Total Capital 17.1%
Ret/ On T. Cap. - 3 Yr. Avg. 16.5%
Return On Equity 24.3%
Return On Equity - 3 Yr. Avg. 22.9%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 70.4%
Gross Margin - 3 Yr. Avg. 69.7%
EBITDA Margin 29.8%
EBITDA Margin - 3 Yr. Avg. 29.2%
Operating Margin 33.7%
Oper. Margin - 3 Yr. Avg. 32.6%
Pre-Tax Margin 32.8%
Pre-Tax Margin - 3 Yr. Avg. 31.7%
Net Profit Margin 16.6%
Net Profit Margin - 3 Yr. Avg. 15.9%
Effective Tax Rate 23.6%
Eff/ Tax Rate - 3 Yr. Avg. 25%
Payout Ratio 58%

TLK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TLK stock intrinsic value calculation we used $8686 million for the last fiscal year's total revenue generated by Telekomunikasi Indonesia ADR. The default revenue input number comes from 2016 income statement of Telekomunikasi Indonesia 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 TLK stock valuation model: a) initial revenue growth rate of 14.1% 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 TLK is calculated based on our internal credit rating of Telekomunikasi Indonesia 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 Telekomunikasi Indonesia 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 TLK stock the variable cost ratio is equal to 50.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1371 million in the base year in the intrinsic value calculation for TLK 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 Telekomunikasi Indonesia ADR.

Corporate tax rate of 27% is the nominal tax rate for Telekomunikasi Indonesia 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 TLK 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 TLK are equal to 99.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Telekomunikasi Indonesia 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 TLK is equal to -15.3%. 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 - $6284 million for Telekomunikasi Indonesia 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 1006.96 million for Telekomunikasi Indonesia 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 Telekomunikasi Indonesia ADR at the current share price and the inputted number of shares is $31.3 billion.

RELATED COMPANIES Price Int.Val. Rating
SKM SK Telecom ADR 28.20 15.75  sell
PHI PLDT ADR 30.00 113.13  str.buy
CHT Chunghwa Telec 35.13 11.73  str.sell

COMPANY NEWS

▶ Where the Bulls Run Fastest: Emerging Stock Markets   [Jun-02-17 06:00AM  Investopedia]
▶ Telkom Indonesia Earnings: It's All About the Data Customer   [Nov-14-16 04:28PM  at Motley Fool]
▶ VICE Media Announces Launch of VICE Indonesia   [Nov-08-16 03:48PM  ACN Newswire]
▶ [$$] BlackBerry Juices Indonesia's Plans to Grow Smartphone Supply Chain   [Oct-16-16 06:46AM  at The Wall Street Journal]
▶ [$$] If You're Hot for Pokemon Go Then Look Over Here   [Jul-28-16 12:01AM  at Barrons.com]
▶ Telkom Indonesia's 2015 Annual Report on Form 20-F   [Jun-17-16 11:37AM  PR Newswire]
▶ How Did Telkom Indonesia Do in 2015?   [Apr-14-16 03:49PM  at Motley Fool]
▶ Can Netflix, Inc. Overcome This New Threat in Indonesia?   [Apr-01-16 03:41PM  at Motley Fool]
▶ [$$] Indonesia Puts Squeeze on Foreign Tech Companies   [07:54AM  at The Wall Street Journal]
▶ Uzone.id Launches Newly Redesigned Web Interface   [Feb-19-16 07:27PM  ACN Newswire]
▶ Why Facebook Just Crushed Earnings Tech Roundup   [Jan-27-16 06:15PM  at TheStreet]
▶ Netflix in Indonesia just hit a major barrier   [07:32AM  at MarketWatch]
▶ Here is What Hedge Funds Think About Analog Devices, Inc. (ADI)   [Dec-01  10:41AM  at Insider Monkey]
▶ Here Is What Hedge Funds Think About Tyson Foods, Inc. (TSN)   [Nov-27  03:14AM  at Insider Monkey]
▶ Hedge Funds Turning The Lights Out On Spectra Energy Corp. (SE)   [Nov-21  03:16PM  at Insider Monkey]
▶ Syniverse Extends LTE Roaming Reach for Telin   [Oct-01  04:00AM  Business Wire]
▶ A Telecom Stock That Can Rise 30% in the Next Year   [Jul-29  09:40PM  at Barrons.com]
▶ Profit From Smartphone Boom in Indonesia   [Feb-25  12:01AM  at Barrons.com]
Financial statements of TLK
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.