Intrinsic value of America Movil ADR - AMX

Previous Close

$18.32

  Intrinsic Value

$16.00

stock screener

  Rating & Target

hold

-13%

Previous close

$18.32

 
Intrinsic value

$16.00

 
Up/down potential

-13%

 
Rating

hold

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

We calculate the intrinsic value of AMX 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  9.14
  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
  49,421
  50,409
  51,569
  52,894
  54,382
  56,031
  57,840
  59,810
  61,942
  64,239
  66,704
  69,342
  72,156
  75,153
  78,337
  81,716
  85,297
  89,088
  93,097
  97,332
  101,805
  106,523
  111,500
  116,746
  122,272
  128,093
  134,222
  140,673
  147,461
  154,603
  162,115
Variable operating expenses, $m
 
  42,429
  43,387
  44,483
  45,712
  47,074
  48,569
  50,197
  51,959
  53,857
  55,895
  57,301
  59,626
  62,103
  64,734
  67,526
  70,486
  73,618
  76,931
  80,431
  84,126
  88,026
  92,138
  96,473
  101,040
  105,850
  110,915
  116,246
  121,855
  127,757
  133,964
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
  43,867
  42,429
  43,387
  44,483
  45,712
  47,074
  48,569
  50,197
  51,959
  53,857
  55,895
  57,301
  59,626
  62,103
  64,734
  67,526
  70,486
  73,618
  76,931
  80,431
  84,126
  88,026
  92,138
  96,473
  101,040
  105,850
  110,915
  116,246
  121,855
  127,757
  133,964
Operating income, $m
  5,554
  7,980
  8,181
  8,412
  8,670
  8,956
  9,270
  9,612
  9,983
  10,382
  10,810
  12,041
  12,530
  13,050
  13,603
  14,190
  14,812
  15,470
  16,166
  16,901
  17,678
  18,498
  19,362
  20,273
  21,232
  22,243
  23,307
  24,428
  25,606
  26,846
  28,151
EBITDA, $m
  13,079
  15,217
  15,567
  15,967
  16,416
  16,914
  17,460
  18,055
  18,699
  19,392
  20,136
  20,932
  21,782
  22,687
  23,648
  24,668
  25,749
  26,893
  28,103
  29,382
  30,732
  32,157
  33,659
  35,242
  36,911
  38,668
  40,518
  42,465
  44,515
  46,670
  48,938
Interest expense (income), $m
  1,628
  1,468
  1,525
  1,593
  1,669
  1,756
  1,851
  1,956
  2,070
  2,193
  2,326
  2,469
  2,622
  2,785
  2,959
  3,143
  3,339
  3,546
  3,766
  3,998
  4,243
  4,502
  4,776
  5,064
  5,368
  5,688
  6,025
  6,380
  6,754
  7,147
  7,561
Earnings before tax, $m
  1,190
  6,512
  6,656
  6,819
  7,001
  7,201
  7,419
  7,657
  7,913
  8,188
  8,483
  9,572
  9,908
  10,265
  10,644
  11,047
  11,473
  11,924
  12,400
  12,904
  13,435
  13,995
  14,586
  15,209
  15,864
  16,555
  17,282
  18,047
  18,852
  19,699
  20,590
Tax expense, $m
  578
  1,758
  1,797
  1,841
  1,890
  1,944
  2,003
  2,067
  2,136
  2,211
  2,290
  2,584
  2,675
  2,772
  2,874
  2,983
  3,098
  3,219
  3,348
  3,484
  3,627
  3,779
  3,938
  4,106
  4,283
  4,470
  4,666
  4,873
  5,090
  5,319
  5,559
Net income, $m
  438
  4,754
  4,859
  4,978
  5,110
  5,257
  5,416
  5,589
  5,776
  5,977
  6,193
  6,987
  7,233
  7,493
  7,770
  8,064
  8,375
  8,704
  9,052
  9,420
  9,807
  10,216
  10,648
  11,102
  11,581
  12,085
  12,616
  13,175
  13,762
  14,381
  15,031

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,956
  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
  76,762
  74,241
  75,948
  77,900
  80,091
  82,520
  85,184
  88,085
  91,225
  94,608
  98,239
  102,123
  106,268
  110,681
  115,371
  120,348
  125,622
  131,205
  137,109
  143,347
  149,933
  156,883
  164,212
  171,938
  180,077
  188,650
  197,676
  207,177
  217,174
  227,692
  238,755
Adjusted assets (=assets-cash), $m
  72,806
  74,241
  75,948
  77,900
  80,091
  82,520
  85,184
  88,085
  91,225
  94,608
  98,239
  102,123
  106,268
  110,681
  115,371
  120,348
  125,622
  131,205
  137,109
  143,347
  149,933
  156,883
  164,212
  171,938
  180,077
  188,650
  197,676
  207,177
  217,174
  227,692
  238,755
Revenue / Adjusted assets
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
  0.679
Average production assets, $m
  39,313
  40,075
  40,997
  42,051
  43,234
  44,544
  45,983
  47,549
  49,244
  51,070
  53,030
  55,127
  57,364
  59,746
  62,278
  64,964
  67,811
  70,825
  74,012
  77,379
  80,935
  84,686
  88,642
  92,813
  97,207
  101,834
  106,707
  111,835
  117,232
  122,909
  128,881
Working capital, $m
  -6,490
  -6,402
  -6,549
  -6,718
  -6,907
  -7,116
  -7,346
  -7,596
  -7,867
  -8,158
  -8,471
  -8,806
  -9,164
  -9,544
  -9,949
  -10,378
  -10,833
  -11,314
  -11,823
  -12,361
  -12,929
  -13,528
  -14,160
  -14,827
  -15,529
  -16,268
  -17,046
  -17,865
  -18,728
  -19,635
  -20,589
Total debt, $m
  35,862
  33,161
  34,621
  36,290
  38,163
  40,239
  42,517
  44,997
  47,682
  50,575
  53,679
  57,001
  60,544
  64,317
  68,327
  72,583
  77,092
  81,865
  86,913
  92,246
  97,878
  103,820
  110,086
  116,692
  123,651
  130,981
  138,698
  146,821
  155,369
  164,362
  173,821
Total liabilities, $m
  66,177
  63,476
  64,936
  66,605
  68,478
  70,554
  72,832
  75,312
  77,997
  80,890
  83,994
  87,316
  90,859
  94,632
  98,642
  102,898
  107,407
  112,180
  117,228
  122,561
  128,193
  134,135
  140,401
  147,007
  153,966
  161,296
  169,013
  177,136
  185,684
  194,677
  204,136
Total equity, $m
  10,585
  10,765
  11,012
  11,296
  11,613
  11,965
  12,352
  12,772
  13,228
  13,718
  14,245
  14,808
  15,409
  16,049
  16,729
  17,450
  18,215
  19,025
  19,881
  20,785
  21,740
  22,748
  23,811
  24,931
  26,111
  27,354
  28,663
  30,041
  31,490
  33,015
  34,619
Total liabilities and equity, $m
  76,762
  74,241
  75,948
  77,901
  80,091
  82,519
  85,184
  88,084
  91,225
  94,608
  98,239
  102,124
  106,268
  110,681
  115,371
  120,348
  125,622
  131,205
  137,109
  143,346
  149,933
  156,883
  164,212
  171,938
  180,077
  188,650
  197,676
  207,177
  217,174
  227,692
  238,755
Debt-to-equity ratio
  3.388
  3.080
  3.140
  3.210
  3.290
  3.360
  3.440
  3.520
  3.600
  3.690
  3.770
  3.850
  3.930
  4.010
  4.080
  4.160
  4.230
  4.300
  4.370
  4.440
  4.500
  4.560
  4.620
  4.680
  4.740
  4.790
  4.840
  4.890
  4.930
  4.980
  5.020
Adjusted equity ratio
  0.091
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  438
  4,754
  4,859
  4,978
  5,110
  5,257
  5,416
  5,589
  5,776
  5,977
  6,193
  6,987
  7,233
  7,493
  7,770
  8,064
  8,375
  8,704
  9,052
  9,420
  9,807
  10,216
  10,648
  11,102
  11,581
  12,085
  12,616
  13,175
  13,762
  14,381
  15,031
Depreciation, amort., depletion, $m
  7,525
  7,237
  7,386
  7,556
  7,746
  7,958
  8,190
  8,442
  8,716
  9,010
  9,327
  8,891
  9,252
  9,636
  10,045
  10,478
  10,937
  11,423
  11,937
  12,481
  13,054
  13,659
  14,297
  14,970
  15,678
  16,425
  17,211
  18,038
  18,908
  19,824
  20,787
Funds from operations, $m
  11,288
  11,991
  12,245
  12,534
  12,857
  13,214
  13,606
  14,032
  14,492
  14,988
  15,519
  15,879
  16,485
  17,130
  17,815
  18,542
  19,313
  20,128
  20,990
  21,900
  22,861
  23,876
  24,945
  26,072
  27,260
  28,510
  29,827
  31,213
  32,671
  34,205
  35,818
Change in working capital, $m
  -659
  -126
  -147
  -168
  -189
  -209
  -230
  -250
  -271
  -292
  -313
  -335
  -357
  -381
  -404
  -429
  -455
  -481
  -509
  -538
  -568
  -599
  -632
  -666
  -702
  -739
  -778
  -819
  -862
  -907
  -954
Cash from operations, $m
  11,947
  12,117
  12,392
  12,702
  13,046
  13,424
  13,836
  14,282
  14,763
  15,280
  15,832
  16,214
  16,842
  17,510
  18,220
  18,971
  19,767
  20,609
  21,499
  22,438
  23,429
  24,475
  25,577
  26,738
  27,961
  29,249
  30,605
  32,032
  33,533
  35,112
  36,772
Maintenance CAPEX, $m
  0
  -6,341
  -6,464
  -6,612
  -6,782
  -6,973
  -7,185
  -7,417
  -7,669
  -7,943
  -8,237
  -8,553
  -8,891
  -9,252
  -9,636
  -10,045
  -10,478
  -10,937
  -11,423
  -11,937
  -12,481
  -13,054
  -13,659
  -14,297
  -14,970
  -15,678
  -16,425
  -17,211
  -18,038
  -18,908
  -19,824
New CAPEX, $m
  -7,854
  -763
  -922
  -1,054
  -1,183
  -1,311
  -1,438
  -1,566
  -1,695
  -1,826
  -1,960
  -2,097
  -2,237
  -2,382
  -2,532
  -2,686
  -2,847
  -3,014
  -3,187
  -3,367
  -3,555
  -3,752
  -3,956
  -4,170
  -4,394
  -4,628
  -4,872
  -5,129
  -5,397
  -5,678
  -5,972
Cash from investing activities, $m
  -7,650
  -7,104
  -7,386
  -7,666
  -7,965
  -8,284
  -8,623
  -8,983
  -9,364
  -9,769
  -10,197
  -10,650
  -11,128
  -11,634
  -12,168
  -12,731
  -13,325
  -13,951
  -14,610
  -15,304
  -16,036
  -16,806
  -17,615
  -18,467
  -19,364
  -20,306
  -21,297
  -22,340
  -23,435
  -24,586
  -25,796
Free cash flow, $m
  4,297
  5,013
  5,006
  5,036
  5,081
  5,140
  5,213
  5,299
  5,399
  5,511
  5,635
  5,564
  5,714
  5,876
  6,051
  6,240
  6,442
  6,658
  6,888
  7,133
  7,393
  7,669
  7,962
  8,271
  8,598
  8,943
  9,308
  9,693
  10,098
  10,526
  10,976
Issuance/(repayment) of debt, $m
  -3,110
  1,255
  1,460
  1,669
  1,874
  2,076
  2,278
  2,480
  2,685
  2,893
  3,104
  3,321
  3,544
  3,773
  4,010
  4,255
  4,509
  4,773
  5,048
  5,334
  5,631
  5,942
  6,266
  6,605
  6,959
  7,330
  7,717
  8,123
  8,548
  8,993
  9,459
Issuance/(repurchase) of shares, $m
  -356
  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  
  -4,907
  1,255
  1,460
  1,669
  1,874
  2,076
  2,278
  2,480
  2,685
  2,893
  3,104
  3,321
  3,544
  3,773
  4,010
  4,255
  4,509
  4,773
  5,048
  5,334
  5,631
  5,942
  6,266
  6,605
  6,959
  7,330
  7,717
  8,123
  8,548
  8,993
  9,459
Total cash flow (excl. dividends), $m
  -412
  6,268
  6,466
  6,705
  6,954
  7,216
  7,491
  7,780
  8,084
  8,403
  8,740
  8,885
  9,257
  9,649
  10,061
  10,495
  10,952
  11,431
  11,936
  12,467
  13,025
  13,611
  14,228
  14,876
  15,557
  16,273
  17,025
  17,816
  18,646
  19,518
  20,435
Retained Cash Flow (-), $m
  -4,896
  -180
  -248
  -283
  -318
  -352
  -386
  -421
  -455
  -491
  -526
  -563
  -601
  -640
  -680
  -722
  -765
  -810
  -856
  -905
  -955
  -1,008
  -1,063
  -1,120
  -1,180
  -1,243
  -1,309
  -1,378
  -1,450
  -1,525
  -1,604
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
 
  6,088
  6,219
  6,422
  6,636
  6,864
  7,105
  7,359
  7,628
  7,913
  8,213
  8,322
  8,656
  9,009
  9,381
  9,774
  10,187
  10,622
  11,080
  11,562
  12,070
  12,604
  13,165
  13,756
  14,377
  15,030
  15,716
  16,438
  17,196
  17,993
  18,831
Discount rate, %
 
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.42
  17.24
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
  28.09
  29.49
  30.97
  32.52
PV of cash for distribution, $m
 
  5,642
  5,303
  4,999
  4,676
  4,340
  3,992
  3,638
  3,283
  2,930
  2,585
  2,197
  1,892
  1,606
  1,343
  1,105
  894
  711
  554
  423
  317
  232
  166
  115
  78
  52
  33
  21
  12
  7
  4
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

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 ADR (AMX)

Valuation Ratios
P/E Ratio 2644.1
Price to Sales 23.4
Price to Book 109.4
Price to Tangible Book
Price to Cash Flow 96.9
Price to Free Cash Flow 283
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%

AMX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AMX stock intrinsic value calculation we used $49421 million for the last fiscal year's total revenue generated by America Movil ADR. The default revenue input number comes from 2016 income statement of America Movil 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 AMX 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 7.9%, whose default value for AMX is calculated based on our internal credit rating of America Movil 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 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 AMX stock the variable cost ratio is equal to 84.2%.

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 AMX 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 4.6% for America Movil ADR.

Corporate tax rate of 27% is the nominal tax rate for America Movil 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 AMX 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 AMX are equal to 79.5%.

Life of production assets of 6.2 years is the average useful life of capital assets used in America Movil 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 AMX is equal to -12.7%. 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 - $10585 million for America Movil 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 3322.45 million for America Movil 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 ADR at the current share price and the inputted number of shares is $60.9 billion.

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COMPANY NEWS

▶ Whats Unsettling AT&T in Mexico?   [Dec-14-17 12:27PM  Market Realist]
▶ America Movil Sees IBD RS Rating Improve To 71   [Dec-11-17 03:00AM  Investor's Business Daily]
▶ Carlos Slim's Net Worth: How He Built His Wealth   [Nov-20-17 01:23PM  Investopedia]
▶ 5 Hot Stocks In Todays Most Competitive Markets   [Nov-13-17 07:30PM  Oilprice.com]
▶ Stocks To Watch: America Movil Sees RS Rating Jump To 81   [Nov-09-17 03:00AM  Investor's Business Daily]
▶ [$$] Mexico Clears América Móvil to Charge Rival Telecoms   [Nov-02-17 10:50PM  The Wall Street Journal]
▶ 3 Value Stocks Retirees Should Consider Buying Today   [Nov-01-17 09:09PM  Motley Fool]
▶ America Movil's Mexico Telecom Upside   [Oct-20-17 05:22PM  Barrons.com]
▶ New Strong Buy Stocks for October 9th   [Oct-09-17 07:48AM  Zacks]
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▶ Stocks Pare Gains; Amazon.com, Netflix Trim Losses   [01:36PM  Investor's Business Daily]
Financial statements of AMX
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