Intrinsic value of America Movil Cl A ADR - AMOV

Previous Close

$13.70

  Intrinsic Value

$10,100

stock screener

  Rating & Target

str. buy

+999%

Previous close

$13.70

 
Intrinsic value

$10,100

 
Up/down potential

+999%

 
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 0.1

 

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
  57,340
  62,994
  68,899
  75,056
  81,468
  88,140
  95,076
  102,285
  109,777
  117,563
  125,654
  134,066
  142,814
  151,915
  161,388
  171,252
  181,528
  192,239
  203,409
  215,063
  227,228
  239,932
  253,205
  267,077
  281,581
  296,752
  312,625
  329,238
  346,630
  364,843
Variable operating expenses, $m
  50,762
  55,619
  60,693
  65,982
  71,491
  77,223
  83,182
  89,376
  95,812
  102,501
  107,953
  115,180
  122,695
  130,514
  138,652
  147,126
  155,955
  165,157
  174,754
  184,766
  195,217
  206,132
  217,534
  229,452
  241,913
  254,947
  268,584
  282,856
  297,798
  313,446
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
  50,762
  55,619
  60,693
  65,982
  71,491
  77,223
  83,182
  89,376
  95,812
  102,501
  107,953
  115,180
  122,695
  130,514
  138,652
  147,126
  155,955
  165,157
  174,754
  184,766
  195,217
  206,132
  217,534
  229,452
  241,913
  254,947
  268,584
  282,856
  297,798
  313,446
Operating income, $m
  6,578
  7,375
  8,206
  9,074
  9,977
  10,917
  11,894
  12,910
  13,965
  15,062
  17,702
  18,887
  20,119
  21,401
  22,736
  24,125
  25,573
  27,082
  28,655
  30,297
  32,011
  33,801
  35,670
  37,625
  39,668
  41,805
  44,041
  46,382
  48,832
  51,398
EBITDA, $m
  15,723
  17,274
  18,893
  20,581
  22,339
  24,169
  26,071
  28,048
  30,102
  32,237
  34,456
  36,762
  39,161
  41,657
  44,254
  46,959
  49,777
  52,714
  55,777
  58,972
  62,308
  65,792
  69,431
  73,235
  77,212
  81,372
  85,725
  90,280
  95,049
  100,043
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
  17,602
  18,639
  19,723
  20,858
  22,046
Earnings before tax, $m
  4,662
  5,089
  5,535
  5,999
  6,482
  6,983
  7,505
  8,047
  8,610
  9,195
  11,303
  11,935
  12,593
  13,277
  13,990
  14,733
  15,507
  16,314
  17,156
  18,034
  18,952
  19,911
  20,913
  21,960
  23,056
  24,203
  25,403
  26,659
  27,974
  29,352
Tax expense, $m
  1,259
  1,374
  1,494
  1,620
  1,750
  1,886
  2,026
  2,173
  2,325
  2,483
  3,052
  3,222
  3,400
  3,585
  3,777
  3,978
  4,187
  4,405
  4,632
  4,869
  5,117
  5,376
  5,646
  5,929
  6,225
  6,535
  6,859
  7,198
  7,553
  7,925
Net income, $m
  3,403
  3,715
  4,040
  4,379
  4,732
  5,098
  5,479
  5,874
  6,285
  6,712
  8,251
  8,713
  9,193
  9,692
  10,213
  10,755
  11,320
  11,909
  12,524
  13,165
  13,835
  14,535
  15,266
  16,031
  16,831
  17,668
  18,544
  19,461
  20,421
  21,427

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
  91,694
  100,290
  109,252
  118,586
  128,296
  138,393
  148,887
  159,792
  171,125
  182,903
  195,148
  207,881
  221,129
  234,917
  249,275
  264,233
  279,824
  296,083
  313,047
  330,754
  349,246
  368,566
  388,758
  409,871
  431,953
  455,058
  479,240
  504,556
  531,067
Adjusted assets (=assets-cash), $m
  83,465
  91,694
  100,290
  109,252
  118,586
  128,296
  138,393
  148,887
  159,792
  171,125
  182,903
  195,148
  207,881
  221,129
  234,917
  249,275
  264,233
  279,824
  296,083
  313,047
  330,754
  349,246
  368,566
  388,758
  409,871
  431,953
  455,058
  479,240
  504,556
  531,067
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
  45,872
  50,395
  55,119
  60,045
  65,175
  70,512
  76,061
  81,828
  87,822
  94,050
  100,524
  107,253
  114,252
  121,532
  129,110
  137,001
  145,222
  153,791
  162,727
  172,051
  181,783
  191,946
  202,564
  213,662
  225,265
  237,401
  250,100
  263,390
  277,304
  291,875
Working capital, $m
  -5,791
  -6,362
  -6,959
  -7,581
  -8,228
  -8,902
  -9,603
  -10,331
  -11,087
  -11,874
  -12,691
  -13,541
  -14,424
  -15,343
  -16,300
  -17,296
  -18,334
  -19,416
  -20,544
  -21,721
  -22,950
  -24,233
  -25,574
  -26,975
  -28,440
  -29,972
  -31,575
  -33,253
  -35,010
  -36,849
Total debt, $m
  42,324
  49,476
  56,945
  64,734
  72,844
  81,283
  90,057
  99,176
  108,653
  118,501
  128,736
  139,377
  150,442
  161,954
  173,936
  186,413
  199,412
  212,960
  227,090
  241,831
  257,219
  273,289
  290,077
  307,624
  325,971
  345,161
  365,239
  386,253
  408,253
  431,291
Total liabilities, $m
  72,531
  79,682
  87,152
  94,940
  103,051
  111,489
  120,263
  129,383
  138,859
  148,707
  158,943
  169,583
  180,649
  192,161
  204,143
  216,620
  229,618
  243,167
  257,296
  272,038
  287,426
  303,495
  320,284
  337,831
  356,178
  375,367
  395,445
  416,459
  438,459
  461,497
Total equity, $m
  10,934
  12,012
  13,138
  14,312
  15,535
  16,807
  18,129
  19,504
  20,933
  22,417
  23,960
  25,564
  27,232
  28,968
  30,774
  32,655
  34,614
  36,657
  38,787
  41,009
  43,329
  45,751
  48,282
  50,927
  53,693
  56,586
  59,613
  62,780
  66,097
  69,570
Total liabilities and equity, $m
  83,465
  91,694
  100,290
  109,252
  118,586
  128,296
  138,392
  148,887
  159,792
  171,124
  182,903
  195,147
  207,881
  221,129
  234,917
  249,275
  264,232
  279,824
  296,083
  313,047
  330,755
  349,246
  368,566
  388,758
  409,871
  431,953
  455,058
  479,239
  504,556
  531,067
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
  3,403
  3,715
  4,040
  4,379
  4,732
  5,098
  5,479
  5,874
  6,285
  6,712
  8,251
  8,713
  9,193
  9,692
  10,213
  10,755
  11,320
  11,909
  12,524
  13,165
  13,835
  14,535
  15,266
  16,031
  16,831
  17,668
  18,544
  19,461
  20,421
  21,427
Depreciation, amort., depletion, $m
  9,145
  9,899
  10,686
  11,507
  12,362
  13,252
  14,177
  15,138
  16,137
  17,175
  16,754
  17,876
  19,042
  20,255
  21,518
  22,834
  24,204
  25,632
  27,121
  28,675
  30,297
  31,991
  33,761
  35,610
  37,544
  39,567
  41,683
  43,898
  46,217
  48,646
Funds from operations, $m
  12,549
  13,614
  14,727
  15,886
  17,094
  18,350
  19,655
  21,012
  22,422
  23,887
  25,005
  26,588
  28,235
  29,948
  31,731
  33,588
  35,523
  37,541
  39,645
  41,840
  44,132
  46,526
  49,027
  51,641
  54,375
  57,235
  60,227
  63,359
  66,638
  70,073
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
  13,094
  14,185
  15,323
  16,508
  17,741
  19,023
  20,356
  21,740
  23,178
  24,673
  25,822
  27,438
  29,118
  30,867
  32,688
  34,585
  36,561
  38,623
  40,773
  43,017
  45,361
  47,809
  50,368
  53,042
  55,840
  58,767
  61,830
  65,037
  68,395
  71,912
Maintenance CAPEX, $m
  -6,922
  -7,645
  -8,399
  -9,187
  -10,008
  -10,862
  -11,752
  -12,677
  -13,638
  -14,637
  -15,675
  -16,754
  -17,876
  -19,042
  -20,255
  -21,518
  -22,834
  -24,204
  -25,632
  -27,121
  -28,675
  -30,297
  -31,991
  -33,761
  -35,610
  -37,544
  -39,567
  -41,683
  -43,898
  -46,217
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
  -16,199
  -17,301
  -18,445
  -19,632
  -20,865
  -22,148
  -23,484
  -24,874
  -26,323
  -27,833
  -29,409
  -31,055
  -32,773
  -34,568
  -36,444
  -38,407
  -40,460
  -42,609
  -44,859
  -47,213
  -49,681
  -52,265
  -54,973
  -57,812
  -60,788
Free cash flow, $m
  1,831
  2,017
  2,200
  2,396
  2,604
  2,824
  3,055
  3,296
  3,547
  3,808
  3,674
  3,954
  4,244
  4,544
  4,855
  5,175
  5,507
  5,850
  6,205
  6,573
  6,954
  7,349
  7,759
  8,184
  8,626
  9,086
  9,565
  10,063
  10,583
  11,124
Issuance/(repayment) of debt, $m
  6,845
  7,152
  7,469
  7,788
  8,111
  8,438
  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
  8,438
  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
  8,675
  9,168
  9,669
  10,184
  10,715
  11,262
  11,829
  12,415
  13,024
  13,656
  13,909
  14,595
  15,310
  16,056
  16,836
  17,652
  18,505
  19,399
  20,334
  21,314
  22,341
  23,418
  24,547
  25,731
  26,973
  28,276
  29,643
  31,077
  32,583
  34,162
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
  7,612
  8,090
  8,543
  9,010
  9,492
  9,990
  10,506
  11,040
  11,595
  12,171
  12,366
  12,991
  13,642
  14,321
  15,030
  15,771
  16,546
  17,356
  18,204
  19,092
  20,022
  20,996
  22,016
  23,086
  24,207
  25,383
  26,616
  27,910
  29,266
  30,689
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
  7,049
  6,885
  6,630
  6,322
  5,968
  5,575
  5,150
  4,703
  4,242
  3,778
  3,214
  2,788
  2,382
  2,003
  1,656
  1,345
  1,072
  838
  642
  480
  352
  251
  175
  118
  78
  50
  31
  19
  11
  6
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 1977.3
Price to Sales 17.5
Price to Book 81.8
Price to Tangible Book
Price to Cash Flow 72.5
Price to Free Cash Flow 211.6
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 $51938.6647178 million for the last fiscal year's total revenue generated by America Movil Cl A ADR. The default revenue input number comes from 0001 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 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 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 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 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 80%.

Life of production assets of 6 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 -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 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 7.309 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 $0.1 billion.

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