Intrinsic value of America Movil Cl A ADR - AMOV

Previous Close

$16.20

  Intrinsic Value

$64.84

stock screener

  Rating & Target

str. buy

+300%

Previous close

$16.20

 
Intrinsic value

$64.84

 
Up/down potential

+300%

 
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 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 11.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  47,990
  49,094
  50,355
  51,772
  53,342
  55,064
  56,939
  58,969
  61,156
  63,503
  66,014
  68,693
  71,546
  74,577
  77,794
  81,203
  84,812
  88,629
  92,661
  96,918
  101,411
  106,148
  111,142
  116,404
  121,946
  127,780
  133,922
  140,384
  147,183
  154,334
Variable operating expenses, $m
  18,783
  19,181
  19,636
  20,147
  20,713
  21,334
  22,011
  22,743
  23,532
  24,379
  23,813
  24,780
  25,809
  26,902
  28,063
  29,293
  30,594
  31,971
  33,426
  34,961
  36,582
  38,291
  40,092
  41,990
  43,989
  46,094
  48,310
  50,641
  53,093
  55,673
Fixed operating expenses, $m
  24,334
  24,869
  25,416
  25,975
  26,547
  27,131
  27,728
  28,338
  28,961
  29,598
  30,250
  30,915
  31,595
  32,290
  33,001
  33,727
  34,469
  35,227
  36,002
  36,794
  37,603
  38,431
  39,276
  40,140
  41,023
  41,926
  42,848
  43,791
  44,754
  45,739
Total operating expenses, $m
  43,117
  44,050
  45,052
  46,122
  47,260
  48,465
  49,739
  51,081
  52,493
  53,977
  54,063
  55,695
  57,404
  59,192
  61,064
  63,020
  65,063
  67,198
  69,428
  71,755
  74,185
  76,722
  79,368
  82,130
  85,012
  88,020
  91,158
  94,432
  97,847
  101,412
Operating income, $m
  4,874
  5,044
  5,303
  5,650
  6,082
  6,598
  7,200
  7,888
  8,663
  9,526
  11,951
  12,998
  14,142
  15,385
  16,731
  18,184
  19,749
  21,431
  23,233
  25,163
  27,225
  29,427
  31,774
  34,273
  36,933
  39,760
  42,764
  45,952
  49,335
  52,922
EBITDA, $m
  11,292
  11,577
  11,966
  12,458
  13,052
  13,747
  14,542
  15,439
  16,439
  17,544
  18,757
  20,080
  21,518
  23,074
  24,751
  26,556
  28,493
  30,568
  32,787
  35,155
  37,681
  40,371
  43,232
  46,274
  49,505
  52,934
  56,571
  60,426
  64,510
  68,834
Interest expense (income), $m
  1,628
  1,844
  1,910
  1,990
  2,081
  2,184
  2,297
  2,422
  2,557
  2,704
  2,862
  3,032
  3,213
  3,407
  3,613
  3,832
  4,064
  4,311
  4,572
  4,848
  5,139
  5,447
  5,771
  6,114
  6,475
  6,855
  7,256
  7,677
  8,121
  8,588
  9,080
Earnings before tax, $m
  3,030
  3,134
  3,313
  3,568
  3,898
  4,301
  4,779
  5,331
  5,959
  6,664
  8,919
  9,785
  10,735
  11,772
  12,899
  14,120
  15,438
  16,859
  18,386
  20,024
  21,779
  23,655
  25,660
  27,798
  30,077
  32,504
  35,086
  37,831
  40,747
  43,842
Tax expense, $m
  818
  846
  895
  963
  1,052
  1,161
  1,290
  1,439
  1,609
  1,799
  2,408
  2,642
  2,898
  3,178
  3,483
  3,812
  4,168
  4,552
  4,964
  5,406
  5,880
  6,387
  6,928
  7,506
  8,121
  8,776
  9,473
  10,214
  11,002
  11,837
Net income, $m
  2,212
  2,287
  2,419
  2,605
  2,845
  3,140
  3,489
  3,892
  4,350
  4,865
  6,511
  7,143
  7,837
  8,593
  9,416
  10,307
  11,270
  12,307
  13,422
  14,617
  15,898
  17,268
  18,732
  20,293
  21,957
  23,728
  25,613
  27,617
  29,745
  32,005

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
  74,519
  76,233
  78,192
  80,391
  82,828
  85,503
  88,415
  91,567
  94,962
  98,607
  102,506
  106,666
  111,096
  115,803
  120,799
  126,092
  131,696
  137,622
  143,883
  150,494
  157,470
  164,827
  172,581
  180,751
  189,356
  198,416
  207,953
  217,988
  228,545
  239,649
Adjusted assets (=assets-cash), $m
  74,519
  76,233
  78,192
  80,391
  82,828
  85,503
  88,415
  91,567
  94,962
  98,607
  102,506
  106,666
  111,096
  115,803
  120,799
  126,092
  131,696
  137,622
  143,883
  150,494
  157,470
  164,827
  172,581
  180,751
  189,356
  198,416
  207,953
  217,988
  228,545
  239,649
Revenue / Adjusted assets
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
  0.644
Average production assets, $m
  49,478
  50,616
  51,916
  53,377
  54,995
  56,771
  58,704
  60,797
  63,052
  65,471
  68,060
  70,822
  73,763
  76,889
  80,206
  83,721
  87,441
  91,376
  95,533
  99,923
  104,555
  109,439
  114,588
  120,012
  125,726
  131,741
  138,073
  144,736
  151,745
  159,118
Working capital, $m
  -9,982
  -10,211
  -10,474
  -10,769
  -11,095
  -11,453
  -11,843
  -12,266
  -12,720
  -13,209
  -13,731
  -14,288
  -14,881
  -15,512
  -16,181
  -16,890
  -17,641
  -18,435
  -19,273
  -20,159
  -21,093
  -22,079
  -23,118
  -24,212
  -25,365
  -26,578
  -27,856
  -29,200
  -30,614
  -32,101
Total debt, $m
  35,375
  36,852
  38,541
  40,437
  42,538
  44,843
  47,353
  50,070
  52,998
  56,139
  59,500
  63,086
  66,904
  70,962
  75,268
  79,832
  84,662
  89,770
  95,167
  100,866
  106,879
  113,221
  119,905
  126,948
  134,365
  142,175
  150,395
  159,045
  168,146
  177,717
Total liabilities, $m
  64,235
  65,712
  67,401
  69,297
  71,398
  73,703
  76,213
  78,930
  81,858
  84,999
  88,360
  91,946
  95,764
  99,822
  104,128
  108,692
  113,522
  118,630
  124,027
  129,726
  135,739
  142,081
  148,765
  155,808
  163,225
  171,035
  179,255
  187,905
  197,005
  206,577
Total equity, $m
  10,284
  10,520
  10,790
  11,094
  11,430
  11,799
  12,201
  12,636
  13,105
  13,608
  14,146
  14,720
  15,331
  15,981
  16,670
  17,401
  18,174
  18,992
  19,856
  20,768
  21,731
  22,746
  23,816
  24,944
  26,131
  27,381
  28,697
  30,082
  31,539
  33,072
Total liabilities and equity, $m
  74,519
  76,232
  78,191
  80,391
  82,828
  85,502
  88,414
  91,566
  94,963
  98,607
  102,506
  106,666
  111,095
  115,803
  120,798
  126,093
  131,696
  137,622
  143,883
  150,494
  157,470
  164,827
  172,581
  180,752
  189,356
  198,416
  207,952
  217,987
  228,544
  239,649
Debt-to-equity ratio
  3.440
  3.500
  3.570
  3.640
  3.720
  3.800
  3.880
  3.960
  4.040
  4.130
  4.210
  4.290
  4.360
  4.440
  4.520
  4.590
  4.660
  4.730
  4.790
  4.860
  4.920
  4.980
  5.030
  5.090
  5.140
  5.190
  5.240
  5.290
  5.330
  5.370
Adjusted equity ratio
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,212
  2,287
  2,419
  2,605
  2,845
  3,140
  3,489
  3,892
  4,350
  4,865
  6,511
  7,143
  7,837
  8,593
  9,416
  10,307
  11,270
  12,307
  13,422
  14,617
  15,898
  17,268
  18,732
  20,293
  21,957
  23,728
  25,613
  27,617
  29,745
  32,005
Depreciation, amort., depletion, $m
  6,419
  6,533
  6,663
  6,809
  6,971
  7,148
  7,342
  7,551
  7,776
  8,018
  6,806
  7,082
  7,376
  7,689
  8,021
  8,372
  8,744
  9,138
  9,553
  9,992
  10,455
  10,944
  11,459
  12,001
  12,573
  13,174
  13,807
  14,474
  15,175
  15,912
Funds from operations, $m
  8,631
  8,820
  9,081
  9,414
  9,816
  10,288
  10,830
  11,442
  12,126
  12,883
  13,317
  14,225
  15,213
  16,282
  17,437
  18,679
  20,014
  21,444
  22,975
  24,610
  26,354
  28,212
  30,190
  32,294
  34,529
  36,902
  39,420
  42,090
  44,920
  47,917
Change in working capital, $m
  -196
  -230
  -262
  -295
  -326
  -358
  -390
  -422
  -455
  -488
  -522
  -557
  -593
  -631
  -669
  -709
  -751
  -794
  -839
  -886
  -934
  -985
  -1,039
  -1,094
  -1,153
  -1,214
  -1,277
  -1,344
  -1,414
  -1,487
Cash from operations, $m
  8,827
  9,050
  9,344
  9,708
  10,143
  10,646
  11,220
  11,865
  12,581
  13,371
  13,839
  14,783
  15,806
  16,913
  18,106
  19,389
  20,765
  22,238
  23,814
  25,495
  27,288
  29,198
  31,229
  33,388
  35,682
  38,116
  40,698
  43,434
  46,334
  49,404
Maintenance CAPEX, $m
  -4,850
  -4,948
  -5,062
  -5,192
  -5,338
  -5,500
  -5,677
  -5,870
  -6,080
  -6,305
  -6,547
  -6,806
  -7,082
  -7,376
  -7,689
  -8,021
  -8,372
  -8,744
  -9,138
  -9,553
  -9,992
  -10,455
  -10,944
  -11,459
  -12,001
  -12,573
  -13,174
  -13,807
  -14,474
  -15,175
New CAPEX, $m
  -979
  -1,138
  -1,301
  -1,460
  -1,618
  -1,776
  -1,933
  -2,093
  -2,255
  -2,420
  -2,589
  -2,762
  -2,941
  -3,126
  -3,317
  -3,515
  -3,721
  -3,935
  -4,157
  -4,390
  -4,632
  -4,885
  -5,149
  -5,425
  -5,713
  -6,016
  -6,332
  -6,663
  -7,010
  -7,373
Cash from investing activities, $m
  -5,829
  -6,086
  -6,363
  -6,652
  -6,956
  -7,276
  -7,610
  -7,963
  -8,335
  -8,725
  -9,136
  -9,568
  -10,023
  -10,502
  -11,006
  -11,536
  -12,093
  -12,679
  -13,295
  -13,943
  -14,624
  -15,340
  -16,093
  -16,884
  -17,714
  -18,589
  -19,506
  -20,470
  -21,484
  -22,548
Free cash flow, $m
  2,998
  2,964
  2,982
  3,056
  3,187
  3,371
  3,610
  3,901
  4,247
  4,646
  4,704
  5,214
  5,783
  6,411
  7,100
  7,853
  8,672
  9,560
  10,519
  11,552
  12,664
  13,858
  15,137
  16,505
  17,967
  19,528
  21,192
  22,964
  24,851
  26,857
Issuance/(repayment) of debt, $m
  1,235
  1,477
  1,689
  1,896
  2,101
  2,305
  2,510
  2,717
  2,927
  3,141
  3,361
  3,586
  3,818
  4,058
  4,306
  4,563
  4,830
  5,108
  5,397
  5,699
  6,013
  6,341
  6,684
  7,043
  7,418
  7,810
  8,220
  8,650
  9,100
  9,572
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  
  1,235
  1,477
  1,689
  1,896
  2,101
  2,305
  2,510
  2,717
  2,927
  3,141
  3,361
  3,586
  3,818
  4,058
  4,306
  4,563
  4,830
  5,108
  5,397
  5,699
  6,013
  6,341
  6,684
  7,043
  7,418
  7,810
  8,220
  8,650
  9,100
  9,572
Total cash flow (excl. dividends), $m
  4,233
  4,441
  4,670
  4,952
  5,288
  5,677
  6,120
  6,619
  7,174
  7,788
  8,064
  8,801
  9,601
  10,469
  11,406
  12,416
  13,502
  14,668
  15,916
  17,251
  18,677
  20,199
  21,821
  23,548
  25,385
  27,338
  29,412
  31,614
  33,951
  36,429
Retained Cash Flow (-), $m
  -207
  -237
  -270
  -304
  -336
  -369
  -402
  -435
  -469
  -503
  -538
  -574
  -611
  -650
  -689
  -731
  -773
  -818
  -864
  -912
  -963
  -1,015
  -1,070
  -1,127
  -1,187
  -1,250
  -1,316
  -1,385
  -1,457
  -1,532
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
  4,026
  4,205
  4,400
  4,649
  4,951
  5,307
  5,718
  6,184
  6,705
  7,285
  7,526
  8,226
  8,990
  9,819
  10,717
  11,686
  12,729
  13,850
  15,052
  16,339
  17,715
  19,184
  20,751
  22,420
  24,197
  26,087
  28,096
  30,229
  32,494
  34,896
Discount rate, %
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.18
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
PV of cash for distribution, $m
  3,742
  3,606
  3,456
  3,318
  3,183
  3,045
  2,900
  2,743
  2,573
  2,390
  2,085
  1,898
  1,704
  1,506
  1,309
  1,118
  937
  769
  619
  487
  374
  281
  205
  146
  101
  68
  44
  28
  17
  10
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 Cl A ADR (AMOV)

Valuation Ratios
P/E Ratio 2338.2
Price to Sales 20.7
Price to Book 96.8
Price to Tangible Book
Price to Cash Flow 85.7
Price to Free Cash Flow 250.2
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 $47049 million for the last fiscal year's total revenue generated by America Movil Cl A ADR. The default revenue input number comes from 2016 income statement of America Movil Cl A 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 AMOV stock valuation model: a) initial revenue growth rate of 2% 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 7.6%, whose default value for AMOV is calculated based on our internal credit rating of America Movil Cl A 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 America Movil Cl A 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 AMOV stock the variable cost ratio is equal to 39.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $23810 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 Cl A ADR.

Corporate tax rate of 27% is the nominal tax rate for America Movil Cl A 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 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 103.1%.

Life of production assets of 10 years is the average useful life of capital assets used in America Movil Cl A 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 AMOV is equal to -20.8%. 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 - $10077 million for America Movil Cl A 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 689 million for America Movil Cl A 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 America Movil Cl A ADR at the current share price and the inputted number of shares is $11.2 billion.

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