Intrinsic value of Tata Motors ADR - TTM

Previous Close

$29.44

  Intrinsic Value

$89.54

stock screener

  Rating & Target

str. buy

+204%

  Value-price divergence*

+4629%

Previous close

$29.44

 
Intrinsic value

$89.54

 
Up/down potential

+204%

 
Rating

str. buy

 
Value-price divergence*

+4629%

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

We calculate the intrinsic value of TTM 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 18.9

 

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, %
  2.75
  9.50
  9.05
  8.64
  8.28
  7.95
  7.66
  7.39
  7.15
  6.94
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.93
  5.83
  5.75
  5.68
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
Revenue, $m
  40,385
  44,222
  48,224
  52,393
  56,731
  61,242
  65,932
  70,805
  75,869
  81,133
  86,604
  92,293
  98,211
  104,369
  110,782
  117,461
  124,423
  131,681
  139,254
  147,157
  155,409
  164,030
  173,039
  182,458
  192,308
  202,614
  213,399
  224,690
  236,512
  248,895
  261,867
Variable operating expenses, $m
 
  39,843
  43,447
  47,202
  51,110
  55,174
  59,397
  63,787
  68,348
  73,089
  78,017
  83,130
  88,460
  94,007
  99,783
  105,799
  112,070
  118,608
  125,428
  132,547
  139,980
  147,745
  155,859
  164,343
  173,215
  182,498
  192,212
  202,382
  213,031
  224,184
  235,868
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
  37,142
  39,843
  43,447
  47,202
  51,110
  55,174
  59,397
  63,787
  68,348
  73,089
  78,017
  83,130
  88,460
  94,007
  99,783
  105,799
  112,070
  118,608
  125,428
  132,547
  139,980
  147,745
  155,859
  164,343
  173,215
  182,498
  192,212
  202,382
  213,031
  224,184
  235,868
Operating income, $m
  3,242
  4,379
  4,776
  5,190
  5,621
  6,069
  6,534
  7,018
  7,521
  8,044
  8,587
  9,163
  9,751
  10,362
  10,999
  11,662
  12,353
  13,074
  13,825
  14,610
  15,429
  16,285
  17,180
  18,115
  19,093
  20,116
  21,187
  22,308
  23,481
  24,711
  25,999
EBITDA, $m
  5,758
  6,349
  6,924
  7,523
  8,146
  8,793
  9,467
  10,166
  10,894
  11,649
  12,435
  13,252
  14,101
  14,986
  15,906
  16,865
  17,865
  18,907
  19,994
  21,129
  22,314
  23,552
  24,845
  26,198
  27,612
  29,092
  30,640
  32,261
  33,959
  35,737
  37,599
Interest expense (income), $m
  839
  547
  716
  891
  1,074
  1,264
  1,462
  1,668
  1,881
  2,103
  2,334
  2,574
  2,823
  3,083
  3,353
  3,634
  3,927
  4,232
  4,550
  4,882
  5,228
  5,590
  5,968
  6,363
  6,776
  7,208
  7,659
  8,132
  8,627
  9,145
  9,688
Earnings before tax, $m
  1,862
  3,832
  4,060
  4,299
  4,547
  4,805
  5,072
  5,351
  5,640
  5,940
  6,253
  6,589
  6,927
  7,279
  7,646
  8,028
  8,426
  8,842
  9,276
  9,728
  10,201
  10,695
  11,212
  11,752
  12,317
  12,908
  13,527
  14,176
  14,854
  15,566
  16,311
Tax expense, $m
  412
  1,035
  1,096
  1,161
  1,228
  1,297
  1,370
  1,445
  1,523
  1,604
  1,688
  1,779
  1,870
  1,965
  2,064
  2,168
  2,275
  2,387
  2,504
  2,627
  2,754
  2,888
  3,027
  3,173
  3,326
  3,485
  3,652
  3,827
  4,011
  4,203
  4,404
Net income, $m
  1,436
  2,798
  2,964
  3,138
  3,319
  3,507
  3,703
  3,906
  4,117
  4,336
  4,565
  4,810
  5,057
  5,314
  5,582
  5,861
  6,151
  6,455
  6,771
  7,102
  7,447
  7,808
  8,185
  8,579
  8,991
  9,423
  9,875
  10,348
  10,844
  11,363
  11,907

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  7,381
  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
  39,225
  34,875
  38,031
  41,319
  44,740
  48,298
  51,997
  55,840
  59,834
  63,985
  68,299
  72,786
  77,453
  82,310
  87,367
  92,635
  98,125
  103,850
  109,821
  116,054
  122,562
  129,361
  136,466
  143,894
  151,663
  159,790
  168,296
  177,200
  186,524
  196,289
  206,520
Adjusted assets (=assets-cash), $m
  31,844
  34,875
  38,031
  41,319
  44,740
  48,298
  51,997
  55,840
  59,834
  63,985
  68,299
  72,786
  77,453
  82,310
  87,367
  92,635
  98,125
  103,850
  109,821
  116,054
  122,562
  129,361
  136,466
  143,894
  151,663
  159,790
  168,296
  177,200
  186,524
  196,289
  206,520
Revenue / Adjusted assets
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
  1.268
Average production assets, $m
  17,878
  19,590
  21,363
  23,210
  25,132
  27,130
  29,208
  31,367
  33,610
  35,942
  38,365
  40,886
  43,507
  46,236
  49,076
  52,035
  55,119
  58,335
  61,689
  65,190
  68,846
  72,665
  76,656
  80,829
  85,193
  89,758
  94,536
  99,538
  104,775
  110,260
  116,007
Working capital, $m
  475
  -4,024
  -4,388
  -4,768
  -5,163
  -5,573
  -6,000
  -6,443
  -6,904
  -7,383
  -7,881
  -8,399
  -8,937
  -9,498
  -10,081
  -10,689
  -11,322
  -11,983
  -12,672
  -13,391
  -14,142
  -14,927
  -15,747
  -16,604
  -17,500
  -18,438
  -19,419
  -20,447
  -21,523
  -22,649
  -23,830
Total debt, $m
  10,814
  9,945
  12,381
  14,919
  17,561
  20,307
  23,162
  26,130
  29,213
  32,417
  35,748
  39,212
  42,815
  46,565
  50,469
  54,535
  58,774
  63,193
  67,803
  72,615
  77,639
  82,888
  88,373
  94,107
  100,105
  106,379
  112,945
  119,819
  127,017
  134,556
  142,454
Total liabilities, $m
  27,793
  26,924
  29,360
  31,898
  34,540
  37,286
  40,141
  43,109
  46,192
  49,396
  52,727
  56,191
  59,794
  63,544
  67,448
  71,514
  75,753
  80,172
  84,782
  89,594
  94,618
  99,867
  105,352
  111,086
  117,084
  123,358
  129,924
  136,798
  143,996
  151,535
  159,433
Total equity, $m
  11,432
  7,952
  8,671
  9,421
  10,201
  11,012
  11,855
  12,732
  13,642
  14,589
  15,572
  16,595
  17,659
  18,767
  19,920
  21,121
  22,373
  23,678
  25,039
  26,460
  27,944
  29,494
  31,114
  32,808
  34,579
  36,432
  38,371
  40,402
  42,527
  44,754
  47,086
Total liabilities and equity, $m
  39,225
  34,876
  38,031
  41,319
  44,741
  48,298
  51,996
  55,841
  59,834
  63,985
  68,299
  72,786
  77,453
  82,311
  87,368
  92,635
  98,126
  103,850
  109,821
  116,054
  122,562
  129,361
  136,466
  143,894
  151,663
  159,790
  168,295
  177,200
  186,523
  196,289
  206,519
Debt-to-equity ratio
  0.946
  1.250
  1.430
  1.580
  1.720
  1.840
  1.950
  2.050
  2.140
  2.220
  2.300
  2.360
  2.420
  2.480
  2.530
  2.580
  2.630
  2.670
  2.710
  2.740
  2.780
  2.810
  2.840
  2.870
  2.890
  2.920
  2.940
  2.970
  2.990
  3.010
  3.030
Adjusted equity ratio
  0.181
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,436
  2,798
  2,964
  3,138
  3,319
  3,507
  3,703
  3,906
  4,117
  4,336
  4,565
  4,810
  5,057
  5,314
  5,582
  5,861
  6,151
  6,455
  6,771
  7,102
  7,447
  7,808
  8,185
  8,579
  8,991
  9,423
  9,875
  10,348
  10,844
  11,363
  11,907
Depreciation, amort., depletion, $m
  2,516
  1,970
  2,148
  2,332
  2,525
  2,724
  2,932
  3,148
  3,372
  3,606
  3,848
  4,089
  4,351
  4,624
  4,908
  5,204
  5,512
  5,833
  6,169
  6,519
  6,885
  7,267
  7,666
  8,083
  8,519
  8,976
  9,454
  9,954
  10,477
  11,026
  11,601
Funds from operations, $m
  6,633
  4,768
  5,112
  5,471
  5,844
  6,232
  6,635
  7,054
  7,489
  7,942
  8,412
  8,899
  9,408
  9,937
  10,489
  11,064
  11,663
  12,288
  12,940
  13,621
  14,331
  15,074
  15,850
  16,662
  17,511
  18,399
  19,329
  20,302
  21,321
  22,389
  23,508
Change in working capital, $m
  1,023
  -349
  -364
  -379
  -395
  -411
  -427
  -443
  -461
  -479
  -498
  -518
  -539
  -560
  -584
  -608
  -633
  -661
  -689
  -719
  -751
  -784
  -820
  -857
  -896
  -938
  -981
  -1,027
  -1,076
  -1,127
  -1,180
Cash from operations, $m
  5,610
  5,117
  5,476
  5,850
  6,239
  6,642
  7,062
  7,497
  7,950
  8,421
  8,910
  9,416
  9,946
  10,498
  11,073
  11,672
  12,297
  12,949
  13,629
  14,340
  15,082
  15,859
  16,670
  17,519
  18,407
  19,337
  20,310
  21,329
  22,397
  23,516
  24,688
Maintenance CAPEX, $m
  0
  -1,788
  -1,959
  -2,136
  -2,321
  -2,513
  -2,713
  -2,921
  -3,137
  -3,361
  -3,594
  -3,837
  -4,089
  -4,351
  -4,624
  -4,908
  -5,204
  -5,512
  -5,833
  -6,169
  -6,519
  -6,885
  -7,267
  -7,666
  -8,083
  -8,519
  -8,976
  -9,454
  -9,954
  -10,477
  -11,026
New CAPEX, $m
  -4,665
  -1,713
  -1,773
  -1,847
  -1,922
  -1,999
  -2,077
  -2,159
  -2,243
  -2,332
  -2,424
  -2,520
  -2,622
  -2,728
  -2,841
  -2,959
  -3,084
  -3,216
  -3,355
  -3,501
  -3,656
  -3,819
  -3,991
  -4,173
  -4,364
  -4,565
  -4,778
  -5,002
  -5,237
  -5,485
  -5,747
Cash from investing activities, $m
  -5,547
  -3,501
  -3,732
  -3,983
  -4,243
  -4,512
  -4,790
  -5,080
  -5,380
  -5,693
  -6,018
  -6,357
  -6,711
  -7,079
  -7,465
  -7,867
  -8,288
  -8,728
  -9,188
  -9,670
  -10,175
  -10,704
  -11,258
  -11,839
  -12,447
  -13,084
  -13,754
  -14,456
  -15,191
  -15,962
  -16,773
Free cash flow, $m
  63
  1,617
  1,744
  1,867
  1,996
  2,131
  2,271
  2,418
  2,570
  2,728
  2,892
  3,060
  3,236
  3,419
  3,609
  3,805
  4,009
  4,221
  4,441
  4,670
  4,908
  5,155
  5,412
  5,681
  5,960
  6,252
  6,556
  6,874
  7,206
  7,553
  7,915
Issuance/(repayment) of debt, $m
  -809
  2,352
  2,437
  2,538
  2,641
  2,747
  2,855
  2,967
  3,083
  3,204
  3,331
  3,464
  3,603
  3,750
  3,904
  4,067
  4,238
  4,419
  4,610
  4,812
  5,024
  5,249
  5,485
  5,734
  5,997
  6,274
  6,566
  6,874
  7,198
  7,539
  7,898
Issuance/(repurchase) of shares, $m
  1,121
  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  
  -568
  2,352
  2,437
  2,538
  2,641
  2,747
  2,855
  2,967
  3,083
  3,204
  3,331
  3,464
  3,603
  3,750
  3,904
  4,067
  4,238
  4,419
  4,610
  4,812
  5,024
  5,249
  5,485
  5,734
  5,997
  6,274
  6,566
  6,874
  7,198
  7,539
  7,898
Total cash flow (excl. dividends), $m
  -388
  3,968
  4,181
  4,405
  4,637
  4,877
  5,126
  5,385
  5,653
  5,933
  6,223
  6,523
  6,839
  7,169
  7,513
  7,872
  8,248
  8,640
  9,051
  9,482
  9,932
  10,403
  10,898
  11,415
  11,958
  12,527
  13,123
  13,748
  14,404
  15,092
  15,813
Retained Cash Flow (-), $m
  -3,423
  -680
  -720
  -750
  -780
  -811
  -843
  -876
  -911
  -946
  -984
  -1,023
  -1,064
  -1,107
  -1,153
  -1,201
  -1,252
  -1,305
  -1,362
  -1,421
  -1,484
  -1,550
  -1,620
  -1,694
  -1,771
  -1,853
  -1,939
  -2,030
  -2,126
  -2,227
  -2,333
Prev. year cash balance distribution, $m
 
  4,160
  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
 
  7,449
  3,461
  3,655
  3,857
  4,066
  4,283
  4,509
  4,743
  4,986
  5,240
  5,500
  5,775
  6,061
  6,360
  6,671
  6,996
  7,335
  7,690
  8,060
  8,448
  8,853
  9,278
  9,722
  10,187
  10,673
  11,184
  11,718
  12,278
  12,865
  13,481
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
 
  7,142
  3,168
  3,181
  3,176
  3,152
  3,108
  3,046
  2,964
  2,864
  2,747
  2,612
  2,464
  2,305
  2,135
  1,958
  1,778
  1,596
  1,416
  1,241
  1,073
  916
  770
  637
  519
  415
  326
  252
  190
  140
  102
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

FINANCIAL RATIOS  of  Tata Motors ADR (TTM)

Valuation Ratios
P/E Ratio 10.4
Price to Sales 0.4
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 2.7
Price to Free Cash Flow 15.8
Growth Rates
Sales Growth Rate 2.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 3.3%
Cap. Spend. - 3 Yr. Gr. Rate 10.8%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 66.4%
Total Debt to Equity 94.6%
Interest Coverage 3
Management Effectiveness
Return On Assets 5.6%
Ret/ On Assets - 3 Yr. Avg. 7.5%
Return On Total Capital 6.7%
Ret/ On T. Cap. - 3 Yr. Avg. 9.4%
Return On Equity 14.8%
Return On Equity - 3 Yr. Avg. 21%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 39.1%
Gross Margin - 3 Yr. Avg. 38%
EBITDA Margin 12.9%
EBITDA Margin - 3 Yr. Avg. 14.5%
Operating Margin 8%
Oper. Margin - 3 Yr. Avg. 9%
Pre-Tax Margin 4.6%
Pre-Tax Margin - 3 Yr. Avg. 6.6%
Net Profit Margin 3.6%
Net Profit Margin - 3 Yr. Avg. 4.7%
Effective Tax Rate 22.1%
Eff/ Tax Rate - 3 Yr. Avg. 28%
Payout Ratio 0%

TTM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TTM stock intrinsic value calculation we used $40385 million for the last fiscal year's total revenue generated by Tata Motors ADR. The default revenue input number comes from 2016 income statement of Tata Motors 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 TTM stock valuation model: a) initial revenue growth rate of 9.5% 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 TTM is calculated based on our internal credit rating of Tata Motors 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 Tata Motors 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 TTM stock the variable cost ratio is equal to 90.1%.

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 TTM 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 7.2% for Tata Motors ADR.

Corporate tax rate of 27% is the nominal tax rate for Tata Motors 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 TTM 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 TTM are equal to 44.3%.

Life of production assets of 10 years is the average useful life of capital assets used in Tata Motors 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 TTM is equal to -9.1%. 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 - $11432 million for Tata Motors 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 643.322 million for Tata Motors 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 Tata Motors ADR at the current share price and the inputted number of shares is $18.9 billion.

RELATED COMPANIES Price Int.Val. Rating
F Ford Motor 10.64 14.53  buy
TM Toyota Motor A 111.45 171.57  str.buy
MGA Magna Internat 46.62 97.78  str.buy

COMPANY NEWS

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▶ [$$] Jaguar-Maker Tata Motors Fights Fires at Home   [Jul-19-17 04:41AM  The Wall Street Journal]
▶ Inside Indias Inflation in May 2017   [Jun-29-17 09:08AM  Market Realist]
▶ Land a job with Jaguar playing this Gorillaz app   [Jun-20-17 01:55PM  Yahoo Finance Video]
▶ Jaguar Must Work for That Second Look   [01:25AM  Bloomberg]
▶ Morning News Call - India, June 20   [Jun-19-17 11:24PM  Reuters]
▶ 10 High-Quality Foreign-Stock Bargains   [Jun-14-17 06:00AM  Morningstar]
▶ Why Jaguar Land Rover Took a Stake in Lyft: Self-Driving   [Jun-13-17 07:15PM  Motley Fool]
▶ International Moat Index: France Impacted Its Performance   [May-31-17 10:48AM  Market Realist]
▶ Is Inflation in India Approaching Its Target Range in 2017?   [May-25-17 07:36AM  Market Realist]
▶ [$$] Tata Motors/JLR: the English revenant   [May-24-17 11:10AM  Financial Times]
▶ Top Ranked Value Stocks to Buy for May 1st   [May-01-17 09:50AM  Zacks]
▶ Tata Motors Unit Unveils Indian-Built Manufacturing Robot   [Apr-12-17 12:00PM  TheStreet.com]
▶ Politics Isn't Fazing Tata Motors   [11:41AM  Motley Fool]
▶ Could International Laggards Come Out as Winners?   [Mar-28-17 09:07AM  Market Realist]
▶ Volkswagen, Tata Motors plan to cooperate in India   [Mar-10-17 06:21AM  Reuters]
▶ Range Rover Velar Debuts at the Geneva Motor Show   [Mar-07-17 12:02PM  MarketWatch]
▶ Tata's New Chairman's To-Do List: Growth and Growth   [Feb-20-17 04:00PM  Bloomberg]
▶ Weak British Pound Sinks Tata Motors' Earnings: Buy On Dip?   [Feb-14-17 10:29PM  at Barrons.com]
▶ India's Tata Motors Rises As Sales Slip   [Feb-01-17 10:02AM  at Barrons.com]
▶ Tata Motors Looks to Bounce Back in 2017   [Jan-31-17 09:28AM  at Motley Fool]
▶ Why Ford Is Giving Its Best-Selling F-150 an Overhaul   [Jan-09-17 10:10AM  at Motley Fool]
▶ Why Tata Motors Can Keep Climbing In 2017   [Dec-29-16 10:29AM  at Barrons.com]
▶ Tata Motors Shaping Up as Key Battle in Proxy Fight   [Dec-15-16 10:17PM  at Bloomberg]
▶ Morning News Call - India, December 15   [Dec-14-16 10:17PM  Reuters]
▶ Mistry's End Game   [03:00PM  at Bloomberg]
▶ India: Industrial Production & Demonetization Weigh On GDP   [Dec-09-16 12:13PM  at Barrons.com]
▶ Is DTE Energy Co (DTE) Worthy of Your Portfolio?   [Dec-01-16 05:48PM  at Insider Monkey]
Stock chart of TTM Financial statements of TTM
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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