Intrinsic value of America Movil, S.A.B. de C.V. - AMOV

Previous Close

$13.16

  Intrinsic Value

$28.82

stock screener

  Rating & Target

str. buy

+119%

Previous close

$13.16

 
Intrinsic value

$28.82

 
Up/down potential

+119%

 
Rating

str. buy

We calculate the intrinsic value of AMOV 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 0001), $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 43.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.40
  9.86
  9.37
  8.94
  8.54
  8.19
  7.87
  7.58
  7.32
  7.09
  6.88
  6.69
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
  5.25
Revenue, $m
  57,341
  62,994
  68,900
  75,057
  81,469
  88,140
  95,077
  102,286
  109,778
  117,563
  125,655
  134,067
  142,815
  151,916
  161,389
  171,253
  181,529
  192,240
  203,410
  215,065
  227,230
  239,934
  253,206
  267,079
  281,583
  296,754
  312,627
  329,240
  346,632
  364,846
Variable operating expenses, $m
  50,561
  55,207
  60,060
  65,120
  70,389
  75,872
  81,572
  87,497
  93,654
  100,052
  103,263
  110,176
  117,365
  124,844
  132,629
  140,735
  149,180
  157,982
  167,162
  176,740
  186,737
  197,177
  208,084
  219,485
  231,404
  243,871
  256,916
  270,568
  284,861
  299,829
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
  50,561
  55,207
  60,060
  65,120
  70,389
  75,872
  81,572
  87,497
  93,654
  100,052
  103,263
  110,176
  117,365
  124,844
  132,629
  140,735
  149,180
  157,982
  167,162
  176,740
  186,737
  197,177
  208,084
  219,485
  231,404
  243,871
  256,916
  270,568
  284,861
  299,829
Operating income, $m
  6,780
  7,787
  8,840
  9,937
  11,079
  12,268
  13,504
  14,789
  16,124
  17,512
  22,392
  23,891
  25,450
  27,072
  28,760
  30,518
  32,349
  34,258
  36,248
  38,325
  40,493
  42,757
  45,122
  47,594
  50,179
  52,882
  55,711
  58,671
  61,771
  65,016
EBITDA, $m
  17,864
  19,625
  21,465
  23,383
  25,380
  27,459
  29,620
  31,866
  34,200
  36,625
  39,146
  41,767
  44,492
  47,327
  50,278
  53,351
  56,553
  59,890
  63,370
  67,000
  70,790
  74,748
  78,883
  83,205
  87,723
  92,449
  97,395
  102,570
  107,988
  113,663
Interest expense (income), $m
  1,628
  1,916
  2,286
  2,672
  3,075
  3,496
  3,934
  4,389
  4,863
  5,356
  5,867
  6,399
  6,952
  7,526
  8,124
  8,746
  9,393
  10,066
  10,768
  11,500
  12,263
  13,059
  13,890
  14,758
  15,664
  16,612
  17,603
  18,639
  19,723
  20,858
  22,046
Earnings before tax, $m
  4,864
  5,502
  6,168
  6,862
  7,584
  8,335
  9,115
  9,926
  10,769
  11,644
  15,993
  16,939
  17,924
  18,948
  20,014
  21,125
  22,283
  23,489
  24,748
  26,062
  27,434
  28,867
  30,364
  31,930
  33,567
  35,280
  37,072
  38,948
  40,913
  42,971
Tax expense, $m
  1,313
  1,485
  1,665
  1,853
  2,048
  2,250
  2,461
  2,680
  2,908
  3,144
  4,318
  4,574
  4,839
  5,116
  5,404
  5,704
  6,016
  6,342
  6,682
  7,037
  7,407
  7,794
  8,198
  8,621
  9,063
  9,526
  10,009
  10,516
  11,047
  11,602
Net income, $m
  3,551
  4,016
  4,503
  5,009
  5,536
  6,084
  6,654
  7,246
  7,861
  8,500
  11,675
  12,366
  13,084
  13,832
  14,610
  15,421
  16,266
  17,147
  18,066
  19,025
  20,027
  21,073
  22,166
  23,309
  24,504
  25,754
  27,063
  28,432
  29,866
  31,369

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  83,465
  91,695
  100,290
  109,253
  118,586
  128,297
  138,394
  148,888
  159,793
  171,126
  182,904
  195,149
  207,883
  221,130
  234,918
  249,276
  264,234
  279,826
  296,085
  313,049
  330,757
  349,249
  368,568
  388,761
  409,873
  431,956
  455,061
  479,243
  504,559
  531,071
Adjusted assets (=assets-cash), $m
  83,465
  91,695
  100,290
  109,253
  118,586
  128,297
  138,394
  148,888
  159,793
  171,126
  182,904
  195,149
  207,883
  221,130
  234,918
  249,276
  264,234
  279,826
  296,085
  313,049
  330,757
  349,249
  368,568
  388,761
  409,873
  431,956
  455,061
  479,243
  504,559
  531,071
Revenue / Adjusted assets
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
  0.687
Average production assets, $m
  45,873
  50,396
  55,120
  60,045
  65,175
  70,512
  76,061
  81,829
  87,822
  94,051
  100,524
  107,254
  114,252
  121,533
  129,111
  137,002
  145,223
  153,792
  162,728
  172,052
  181,784
  191,947
  202,565
  213,663
  225,266
  237,403
  250,101
  263,392
  277,306
  291,876
Working capital, $m
  -5,791
  -6,362
  -6,959
  -7,581
  -8,228
  -8,902
  -9,603
  -10,331
  -11,088
  -11,874
  -12,691
  -13,541
  -14,424
  -15,344
  -16,300
  -17,297
  -18,334
  -19,416
  -20,544
  -21,722
  -22,950
  -24,233
  -25,574
  -26,975
  -28,440
  -29,972
  -31,575
  -33,253
  -35,010
  -36,849
Total debt, $m
  42,325
  49,476
  56,946
  64,734
  72,845
  81,284
  90,058
  99,177
  108,654
  118,502
  128,737
  139,378
  150,443
  161,956
  173,938
  186,414
  199,413
  212,962
  227,091
  241,833
  257,221
  273,291
  290,079
  307,627
  325,973
  345,163
  365,241
  386,255
  408,256
  431,294
Total liabilities, $m
  72,531
  79,683
  87,152
  94,941
  103,052
  111,490
  120,264
  129,384
  138,860
  148,708
  158,944
  169,584
  180,650
  192,162
  204,144
  216,621
  229,620
  243,168
  257,298
  272,040
  287,427
  303,497
  320,286
  337,833
  356,180
  375,370
  395,448
  416,462
  438,462
  461,500
Total equity, $m
  10,934
  12,012
  13,138
  14,312
  15,535
  16,807
  18,130
  19,504
  20,933
  22,417
  23,960
  25,565
  27,233
  28,968
  30,774
  32,655
  34,615
  36,657
  38,787
  41,009
  43,329
  45,752
  48,282
  50,928
  53,693
  56,586
  59,613
  62,781
  66,097
  69,570
Total liabilities and equity, $m
  83,465
  91,695
  100,290
  109,253
  118,587
  128,297
  138,394
  148,888
  159,793
  171,125
  182,904
  195,149
  207,883
  221,130
  234,918
  249,276
  264,235
  279,825
  296,085
  313,049
  330,756
  349,249
  368,568
  388,761
  409,873
  431,956
  455,061
  479,243
  504,559
  531,070
Debt-to-equity ratio
  3.870
  4.120
  4.330
  4.520
  4.690
  4.840
  4.970
  5.080
  5.190
  5.290
  5.370
  5.450
  5.520
  5.590
  5.650
  5.710
  5.760
  5.810
  5.850
  5.900
  5.940
  5.970
  6.010
  6.040
  6.070
  6.100
  6.130
  6.150
  6.180
  6.200
Adjusted equity ratio
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,551
  4,016
  4,503
  5,009
  5,536
  6,084
  6,654
  7,246
  7,861
  8,500
  11,675
  12,366
  13,084
  13,832
  14,610
  15,421
  16,266
  17,147
  18,066
  19,025
  20,027
  21,073
  22,166
  23,309
  24,504
  25,754
  27,063
  28,432
  29,866
  31,369
Depreciation, amort., depletion, $m
  11,084
  11,838
  12,625
  13,446
  14,301
  15,191
  16,115
  17,077
  18,076
  19,114
  16,754
  17,876
  19,042
  20,256
  21,519
  22,834
  24,204
  25,632
  27,121
  28,675
  30,297
  31,991
  33,761
  35,610
  37,544
  39,567
  41,684
  43,899
  46,218
  48,646
Funds from operations, $m
  14,635
  15,854
  17,128
  18,455
  19,837
  21,275
  22,769
  24,323
  25,937
  27,614
  28,429
  30,241
  32,126
  34,088
  36,129
  38,255
  40,470
  42,779
  45,188
  47,701
  50,324
  53,064
  55,927
  58,919
  62,048
  65,321
  68,746
  72,331
  76,084
  80,015
Change in working capital, $m
  -546
  -571
  -596
  -622
  -648
  -674
  -701
  -728
  -757
  -786
  -817
  -850
  -884
  -919
  -957
  -996
  -1,038
  -1,082
  -1,128
  -1,177
  -1,229
  -1,283
  -1,341
  -1,401
  -1,465
  -1,532
  -1,603
  -1,678
  -1,757
  -1,840
Cash from operations, $m
  15,180
  16,425
  17,724
  19,077
  20,485
  21,949
  23,470
  25,051
  26,693
  28,400
  29,246
  31,091
  33,010
  35,007
  37,086
  39,251
  41,508
  43,861
  46,316
  48,878
  51,553
  54,347
  57,267
  60,320
  63,513
  66,854
  70,349
  74,009
  77,841
  81,854
Maintenance CAPEX, $m
  -6,922
  -7,645
  -8,399
  -9,187
  -10,008
  -10,863
  -11,752
  -12,677
  -13,638
  -14,637
  -15,675
  -16,754
  -17,876
  -19,042
  -20,256
  -21,519
  -22,834
  -24,204
  -25,632
  -27,121
  -28,675
  -30,297
  -31,991
  -33,761
  -35,610
  -37,544
  -39,567
  -41,684
  -43,899
  -46,218
New CAPEX, $m
  -4,342
  -4,523
  -4,724
  -4,926
  -5,130
  -5,337
  -5,549
  -5,768
  -5,994
  -6,228
  -6,473
  -6,730
  -6,998
  -7,281
  -7,578
  -7,891
  -8,221
  -8,569
  -8,936
  -9,323
  -9,732
  -10,163
  -10,618
  -11,098
  -11,603
  -12,137
  -12,698
  -13,290
  -13,914
  -14,571
Cash from investing activities, $m
  -11,264
  -12,168
  -13,123
  -14,113
  -15,138
  -16,200
  -17,301
  -18,445
  -19,632
  -20,865
  -22,148
  -23,484
  -24,874
  -26,323
  -27,834
  -29,410
  -31,055
  -32,773
  -34,568
  -36,444
  -38,407
  -40,460
  -42,609
  -44,859
  -47,213
  -49,681
  -52,265
  -54,974
  -57,813
  -60,789
Free cash flow, $m
  3,916
  4,257
  4,601
  4,965
  5,348
  5,749
  6,169
  6,606
  7,062
  7,535
  7,098
  7,607
  8,136
  8,684
  9,252
  9,842
  10,453
  11,088
  11,748
  12,433
  13,145
  13,887
  14,658
  15,462
  16,299
  17,173
  18,084
  19,035
  20,028
  21,066
Issuance/(repayment) of debt, $m
  6,845
  7,152
  7,469
  7,788
  8,111
  8,439
  8,774
  9,119
  9,477
  9,848
  10,235
  10,641
  11,066
  11,512
  11,982
  12,477
  12,999
  13,549
  14,129
  14,742
  15,388
  16,070
  16,789
  17,547
  18,347
  19,190
  20,078
  21,014
  22,000
  23,038
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  6,845
  7,152
  7,469
  7,788
  8,111
  8,439
  8,774
  9,119
  9,477
  9,848
  10,235
  10,641
  11,066
  11,512
  11,982
  12,477
  12,999
  13,549
  14,129
  14,742
  15,388
  16,070
  16,789
  17,547
  18,347
  19,190
  20,078
  21,014
  22,000
  23,038
Total cash flow (excl. dividends), $m
  10,761
  11,408
  12,070
  12,753
  13,458
  14,188
  14,943
  15,726
  16,538
  17,383
  17,333
  18,248
  19,201
  20,196
  21,234
  22,319
  23,452
  24,637
  25,877
  27,175
  28,533
  29,956
  31,447
  33,009
  34,646
  36,362
  38,162
  40,049
  42,028
  44,104
Retained Cash Flow (-), $m
  -1,063
  -1,078
  -1,126
  -1,174
  -1,223
  -1,272
  -1,323
  -1,375
  -1,429
  -1,485
  -1,543
  -1,604
  -1,668
  -1,735
  -1,806
  -1,881
  -1,960
  -2,042
  -2,130
  -2,222
  -2,320
  -2,422
  -2,531
  -2,645
  -2,766
  -2,893
  -3,027
  -3,168
  -3,316
  -3,473
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  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
  9,699
  10,330
  10,944
  11,579
  12,236
  12,916
  13,620
  14,351
  15,110
  15,898
  15,790
  16,644
  17,533
  18,461
  19,428
  20,438
  21,492
  22,595
  23,747
  24,952
  26,214
  27,534
  28,916
  30,364
  31,880
  33,470
  35,135
  36,881
  38,712
  40,631
Discount rate, %
  8.00
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
PV of cash for distribution, $m
  8,980
  8,791
  8,493
  8,125
  7,693
  7,207
  6,677
  6,113
  5,528
  4,935
  4,104
  3,572
  3,062
  2,582
  2,141
  1,743
  1,393
  1,091
  837
  628
  460
  329
  229
  156
  103
  66
  41
  24
  14
  8
Current shareholders' claim on cash, %
  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

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

FINANCIAL RATIOS  of  America Movil, S.A.B. de C.V. (AMOV)

Valuation Ratios
P/E Ratio 1899.4
Price to Sales 16.8
Price to Book 78.6
Price to Tangible Book
Price to Cash Flow 69.6
Price to Free Cash Flow 203.3
Growth Rates
Sales Growth Rate 9.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2.3%
Cap. Spend. - 3 Yr. Gr. Rate 4.9%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 299.3%
Total Debt to Equity 338.8%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.8%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 1%
Ret/ On T. Cap. - 3 Yr. Avg. 3.9%
Return On Equity 5.4%
Return On Equity - 3 Yr. Avg. 17.6%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 50.3%
Gross Margin - 3 Yr. Avg. 52.6%
EBITDA Margin 20.9%
EBITDA Margin - 3 Yr. Avg. 24.2%
Operating Margin 11.2%
Oper. Margin - 3 Yr. Avg. 15.2%
Pre-Tax Margin 2.4%
Pre-Tax Margin - 3 Yr. Avg. 6.3%
Net Profit Margin 0.9%
Net Profit Margin - 3 Yr. Avg. 3.4%
Effective Tax Rate 48.6%
Eff/ Tax Rate - 3 Yr. Avg. 42.7%
Payout Ratio 159.8%

AMOV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AMOV stock intrinsic value calculation we used $51939 million for the last fiscal year's total revenue generated by America Movil, S.A.B. de C.V.. The default revenue input number comes from 0001 income statement of America Movil, S.A.B. de C.V.. 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 AMOV stock valuation model: a) initial revenue growth rate of 10.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8%, whose default value for AMOV is calculated based on our internal credit rating of America Movil, S.A.B. de C.V., 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 America Movil, S.A.B. de C.V..
    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 AMOV stock the variable cost ratio is equal to 88.8%.

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

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for America Movil, S.A.B. de C.V..

Corporate tax rate of 27% is the nominal tax rate for America Movil, S.A.B. de C.V.. 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 AMOV 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 AMOV are equal to 80%.

Life of production assets of 6 years is the average useful life of capital assets used in America Movil, S.A.B. de C.V. 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 AMOV is equal to -10.1%. 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 - $9871.08856126 million for America Movil, S.A.B. de C.V. - 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 3301.488 million for America Movil, S.A.B. de C.V. 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 America Movil, S.A.B. de C.V. at the current share price and the inputted number of shares is $43.4 billion.

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