Intrinsic value of AU Optronics ADR - AUO

Previous Close

$4.11

  Intrinsic Value

$1,732

stock screener

  Rating & Target

str. buy

+999%

Previous close

$4.11

 
Intrinsic value

$1,732

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of AUO 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 0.2

 

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, %
  12.50
  11.75
  11.08
  10.47
  9.92
  9.43
  8.99
  8.59
  8.23
  7.91
  7.62
  7.35
  7.12
  6.91
  6.72
  6.54
  6.39
  6.25
  6.13
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.44
  5.39
  5.35
Revenue, $m
  12,913
  14,430
  16,028
  17,706
  19,462
  21,297
  23,211
  25,204
  27,278
  29,434
  31,676
  34,005
  36,426
  38,941
  41,557
  44,276
  47,105
  50,050
  53,116
  56,310
  59,638
  63,110
  66,731
  70,512
  74,459
  78,583
  82,893
  87,399
  92,112
  97,043
Variable operating expenses, $m
  3,421
  3,822
  4,245
  4,689
  5,153
  5,638
  6,144
  6,671
  7,220
  7,790
  8,377
  8,993
  9,633
  10,298
  10,989
  11,709
  12,457
  13,235
  14,046
  14,891
  15,771
  16,689
  17,647
  18,646
  19,690
  20,781
  21,921
  23,112
  24,359
  25,663
Fixed operating expenses, $m
  7,434
  7,598
  7,765
  7,936
  8,110
  8,289
  8,471
  8,657
  8,848
  9,042
  9,241
  9,445
  9,652
  9,865
  10,082
  10,304
  10,530
  10,762
  10,999
  11,241
  11,488
  11,741
  11,999
  12,263
  12,533
  12,808
  13,090
  13,378
  13,673
  13,973
Total operating expenses, $m
  10,855
  11,420
  12,010
  12,625
  13,263
  13,927
  14,615
  15,328
  16,068
  16,832
  17,618
  18,438
  19,285
  20,163
  21,071
  22,013
  22,987
  23,997
  25,045
  26,132
  27,259
  28,430
  29,646
  30,909
  32,223
  33,589
  35,011
  36,490
  38,032
  39,636
Operating income, $m
  2,057
  3,010
  4,018
  5,081
  6,199
  7,370
  8,596
  9,875
  11,210
  12,602
  14,058
  15,568
  17,141
  18,779
  20,485
  22,264
  24,118
  26,052
  28,071
  30,178
  32,379
  34,680
  37,086
  39,602
  42,236
  44,994
  47,882
  50,908
  54,081
  57,407
EBITDA, $m
  3,428
  4,541
  5,718
  6,959
  8,262
  9,627
  11,055
  12,545
  14,099
  15,718
  17,405
  19,161
  20,990
  22,894
  24,877
  26,942
  29,096
  31,341
  33,683
  36,128
  38,681
  41,349
  44,137
  47,053
  50,104
  53,297
  56,641
  60,144
  63,814
  67,661
Interest expense (income), $m
  68
  207
  259
  314
  372
  432
  495
  561
  630
  702
  777
  855
  936
  1,019
  1,107
  1,197
  1,292
  1,390
  1,492
  1,598
  1,708
  1,823
  1,943
  2,069
  2,199
  2,335
  2,478
  2,626
  2,782
  2,944
  3,114
Earnings before tax, $m
  1,850
  2,751
  3,704
  4,710
  5,767
  6,875
  8,034
  9,245
  10,508
  11,825
  13,203
  14,632
  16,121
  17,672
  19,288
  20,972
  22,729
  24,561
  26,473
  28,470
  30,556
  32,737
  35,017
  37,403
  39,901
  42,516
  45,256
  48,127
  51,137
  54,293
Tax expense, $m
  500
  743
  1,000
  1,272
  1,557
  1,856
  2,169
  2,496
  2,837
  3,193
  3,565
  3,951
  4,353
  4,771
  5,208
  5,663
  6,137
  6,631
  7,148
  7,687
  8,250
  8,839
  9,455
  10,099
  10,773
  11,479
  12,219
  12,994
  13,807
  14,659
Net income, $m
  1,351
  2,008
  2,704
  3,438
  4,210
  5,019
  5,865
  6,749
  7,671
  8,632
  9,638
  10,682
  11,768
  12,901
  14,080
  15,310
  16,592
  17,929
  19,325
  20,783
  22,306
  23,898
  25,562
  27,304
  29,127
  31,037
  33,037
  35,133
  37,330
  39,634

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
  16,020
  17,903
  19,886
  21,967
  24,146
  26,423
  28,798
  31,270
  33,844
  36,519
  39,300
  42,190
  45,193
  48,314
  51,559
  54,933
  58,443
  62,096
  65,900
  69,863
  73,993
  78,300
  82,793
  87,483
  92,381
  97,497
  102,845
  108,435
  114,283
  120,401
Adjusted assets (=assets-cash), $m
  16,020
  17,903
  19,886
  21,967
  24,146
  26,423
  28,798
  31,270
  33,844
  36,519
  39,300
  42,190
  45,193
  48,314
  51,559
  54,933
  58,443
  62,096
  65,900
  69,863
  73,993
  78,300
  82,793
  87,483
  92,381
  97,497
  102,845
  108,435
  114,283
  120,401
Revenue / Adjusted assets
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
  0.806
Average production assets, $m
  8,187
  9,148
  10,162
  11,225
  12,339
  13,502
  14,716
  15,979
  17,294
  18,661
  20,082
  21,559
  23,094
  24,689
  26,347
  28,071
  29,865
  31,732
  33,675
  35,700
  37,811
  40,012
  42,308
  44,704
  47,207
  49,822
  52,554
  55,411
  58,399
  61,525
Working capital, $m
  -917
  -1,025
  -1,138
  -1,257
  -1,382
  -1,512
  -1,648
  -1,789
  -1,937
  -2,090
  -2,249
  -2,414
  -2,586
  -2,765
  -2,951
  -3,144
  -3,344
  -3,554
  -3,771
  -3,998
  -4,234
  -4,481
  -4,738
  -5,006
  -5,287
  -5,579
  -5,885
  -6,205
  -6,540
  -6,890
Total debt, $m
  4,800
  5,813
  6,880
  8,000
  9,172
  10,397
  11,674
  13,005
  14,389
  15,828
  17,325
  18,879
  20,495
  22,174
  23,920
  25,735
  27,624
  29,589
  31,636
  33,767
  35,989
  38,307
  40,724
  43,247
  45,882
  48,635
  51,512
  54,519
  57,665
  60,957
Total liabilities, $m
  8,619
  9,632
  10,698
  11,818
  12,991
  14,216
  15,493
  16,823
  18,208
  19,647
  21,143
  22,698
  24,314
  25,993
  27,739
  29,554
  31,442
  33,408
  35,454
  37,586
  39,808
  42,125
  44,543
  47,066
  49,701
  52,454
  55,330
  58,338
  61,484
  64,776
Total equity, $m
  7,401
  8,271
  9,187
  10,149
  11,156
  12,208
  13,304
  14,447
  15,636
  16,872
  18,157
  19,492
  20,879
  22,321
  23,820
  25,379
  27,001
  28,689
  30,446
  32,277
  34,185
  36,175
  38,251
  40,417
  42,680
  45,044
  47,514
  50,097
  52,799
  55,625
Total liabilities and equity, $m
  16,020
  17,903
  19,885
  21,967
  24,147
  26,424
  28,797
  31,270
  33,844
  36,519
  39,300
  42,190
  45,193
  48,314
  51,559
  54,933
  58,443
  62,097
  65,900
  69,863
  73,993
  78,300
  82,794
  87,483
  92,381
  97,498
  102,844
  108,435
  114,283
  120,401
Debt-to-equity ratio
  0.650
  0.700
  0.750
  0.790
  0.820
  0.850
  0.880
  0.900
  0.920
  0.940
  0.950
  0.970
  0.980
  0.990
  1.000
  1.010
  1.020
  1.030
  1.040
  1.050
  1.050
  1.060
  1.060
  1.070
  1.080
  1.080
  1.080
  1.090
  1.090
  1.100
Adjusted equity ratio
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462
  0.462

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,351
  2,008
  2,704
  3,438
  4,210
  5,019
  5,865
  6,749
  7,671
  8,632
  9,638
  10,682
  11,768
  12,901
  14,080
  15,310
  16,592
  17,929
  19,325
  20,783
  22,306
  23,898
  25,562
  27,304
  29,127
  31,037
  33,037
  35,133
  37,330
  39,634
Depreciation, amort., depletion, $m
  1,371
  1,531
  1,700
  1,877
  2,063
  2,257
  2,459
  2,670
  2,889
  3,117
  3,347
  3,593
  3,849
  4,115
  4,391
  4,679
  4,977
  5,289
  5,613
  5,950
  6,302
  6,669
  7,051
  7,451
  7,868
  8,304
  8,759
  9,235
  9,733
  10,254
Funds from operations, $m
  2,721
  3,539
  4,404
  5,316
  6,273
  7,275
  8,324
  9,418
  10,560
  11,749
  12,985
  14,275
  15,617
  17,015
  18,471
  19,988
  21,569
  23,218
  24,938
  26,733
  28,608
  30,566
  32,614
  34,755
  36,995
  39,340
  41,796
  44,368
  47,063
  49,888
Change in working capital, $m
  -102
  -108
  -113
  -119
  -125
  -130
  -136
  -142
  -147
  -153
  -159
  -165
  -172
  -179
  -186
  -193
  -201
  -209
  -218
  -227
  -236
  -246
  -257
  -268
  -280
  -293
  -306
  -320
  -335
  -350
Cash from operations, $m
  2,823
  3,647
  4,518
  5,435
  6,397
  7,406
  8,460
  9,560
  10,707
  11,902
  13,145
  14,440
  15,789
  17,194
  18,657
  20,181
  21,770
  23,427
  25,155
  26,960
  28,844
  30,813
  32,871
  35,023
  37,276
  39,633
  42,102
  44,688
  47,398
  50,238
Maintenance CAPEX, $m
  -1,212
  -1,364
  -1,525
  -1,694
  -1,871
  -2,056
  -2,250
  -2,453
  -2,663
  -2,882
  -3,110
  -3,347
  -3,593
  -3,849
  -4,115
  -4,391
  -4,679
  -4,977
  -5,289
  -5,613
  -5,950
  -6,302
  -6,669
  -7,051
  -7,451
  -7,868
  -8,304
  -8,759
  -9,235
  -9,733
New CAPEX, $m
  -914
  -962
  -1,013
  -1,064
  -1,114
  -1,163
  -1,213
  -1,264
  -1,315
  -1,367
  -1,421
  -1,477
  -1,535
  -1,595
  -1,658
  -1,724
  -1,794
  -1,867
  -1,944
  -2,025
  -2,111
  -2,201
  -2,296
  -2,397
  -2,503
  -2,615
  -2,733
  -2,857
  -2,988
  -3,126
Cash from investing activities, $m
  -2,126
  -2,326
  -2,538
  -2,758
  -2,985
  -3,219
  -3,463
  -3,717
  -3,978
  -4,249
  -4,531
  -4,824
  -5,128
  -5,444
  -5,773
  -6,115
  -6,473
  -6,844
  -7,233
  -7,638
  -8,061
  -8,503
  -8,965
  -9,448
  -9,954
  -10,483
  -11,037
  -11,616
  -12,223
  -12,859
Free cash flow, $m
  698
  1,321
  1,980
  2,677
  3,413
  4,186
  4,996
  5,844
  6,729
  7,652
  8,613
  9,616
  10,661
  11,750
  12,884
  14,066
  15,298
  16,583
  17,923
  19,322
  20,783
  22,310
  23,906
  25,575
  27,322
  29,151
  31,066
  33,072
  35,174
  37,379
Issuance/(repayment) of debt, $m
  962
  1,013
  1,067
  1,120
  1,172
  1,225
  1,277
  1,330
  1,384
  1,439
  1,496
  1,555
  1,616
  1,679
  1,746
  1,815
  1,888
  1,965
  2,046
  2,132
  2,222
  2,317
  2,417
  2,523
  2,635
  2,753
  2,877
  3,008
  3,146
  3,291
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  
  962
  1,013
  1,067
  1,120
  1,172
  1,225
  1,277
  1,330
  1,384
  1,439
  1,496
  1,555
  1,616
  1,679
  1,746
  1,815
  1,888
  1,965
  2,046
  2,132
  2,222
  2,317
  2,417
  2,523
  2,635
  2,753
  2,877
  3,008
  3,146
  3,291
Total cash flow (excl. dividends), $m
  1,660
  2,333
  3,046
  3,797
  4,585
  5,411
  6,273
  7,174
  8,113
  9,092
  10,109
  11,171
  12,277
  13,429
  14,630
  15,881
  17,186
  18,548
  19,970
  21,454
  23,005
  24,627
  26,324
  28,099
  29,957
  31,903
  33,942
  36,080
  38,320
  40,670
Retained Cash Flow (-), $m
  -813
  -870
  -916
  -962
  -1,007
  -1,052
  -1,097
  -1,142
  -1,189
  -1,236
  -1,285
  -1,335
  -1,387
  -1,442
  -1,499
  -1,559
  -1,622
  -1,688
  -1,757
  -1,831
  -1,908
  -1,990
  -2,076
  -2,167
  -2,263
  -2,364
  -2,470
  -2,583
  -2,701
  -2,826
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
  847
  1,464
  2,130
  2,836
  3,579
  4,359
  5,177
  6,032
  6,924
  7,856
  8,825
  9,836
  10,890
  11,987
  13,131
  14,322
  15,565
  16,860
  18,212
  19,623
  21,097
  22,637
  24,248
  25,932
  27,694
  29,539
  31,472
  33,497
  35,619
  37,844
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
  812
  1,340
  1,854
  2,335
  2,774
  3,163
  3,497
  3,770
  3,978
  4,118
  4,191
  4,197
  4,140
  4,024
  3,855
  3,640
  3,387
  3,105
  2,804
  2,494
  2,182
  1,878
  1,589
  1,321
  1,077
  862
  675
  518
  389
  285
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

AU Optronics Corp. is a thin-film-transistor liquid-crystal display (TFT-LCD) panel provider. The Company operates in two business segments: display business and solar business. Through Display business segment, the Company designs, develops, manufactures, assembles and markets flat panel displays and most of its products are TFT-LCD panels. Its panels are primarily used in televisions, monitors, mobile personal computers (PCs), mobile devices and commercial and other applications (such as displays for automobiles, industrial PCs, automated teller machines, point of sale terminals and pachinko machines). Through Solar business segment, the Company is capable of manufacturing upstream and midstream products, such as ingots, solar wafers and solar cells. Through the Company's subsidiaries AUO Crystal Corp. and M.Setek Co., Ltd. (M.Setek), it mainly focuses on research, production and sales of solar materials, such as ingots and solar wafers.

FINANCIAL RATIOS  of  AU Optronics ADR (AUO)

Valuation Ratios
P/E Ratio 157.6
Price to Sales 3.7
Price to Book 6.8
Price to Tangible Book
Price to Cash Flow 33.5
Price to Free Cash Flow -129.3
Growth Rates
Sales Growth Rate -8.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 38.2%
Cap. Spend. - 3 Yr. Gr. Rate 12.7%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 58.6%
Total Debt to Equity 68.9%
Interest Coverage 6
Management Effectiveness
Return On Assets 2.1%
Ret/ On Assets - 3 Yr. Avg. 2.6%
Return On Total Capital 2.6%
Ret/ On T. Cap. - 3 Yr. Avg. 3.2%
Return On Equity 4.3%
Return On Equity - 3 Yr. Avg. 6.1%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 10.5%
Gross Margin - 3 Yr. Avg. 11.1%
EBITDA Margin 16.1%
EBITDA Margin - 3 Yr. Avg. 17.3%
Operating Margin 3.4%
Oper. Margin - 3 Yr. Avg. 3.3%
Pre-Tax Margin 3.4%
Pre-Tax Margin - 3 Yr. Avg. 3.5%
Net Profit Margin 2.4%
Net Profit Margin - 3 Yr. Avg. 2.6%
Effective Tax Rate 41.1%
Eff/ Tax Rate - 3 Yr. Avg. 31.1%
Payout Ratio 43%

AUO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AUO stock intrinsic value calculation we used $11477.7957391 million for the last fiscal year's total revenue generated by AU Optronics ADR. The default revenue input number comes from 0001 income statement of AU Optronics 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 AUO stock valuation model: a) initial revenue growth rate of 12.5% 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 AUO is calculated based on our internal credit rating of AU Optronics 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 AU Optronics 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 AUO stock the variable cost ratio is equal to 26.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $7274 million in the base year in the intrinsic value calculation for AUO 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 AU Optronics ADR.

Corporate tax rate of 27% is the nominal tax rate for AU Optronics 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 AUO 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 AUO are equal to 63.4%.

Life of production assets of 6 years is the average useful life of capital assets used in AU Optronics 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 AUO is equal to -7.1%. 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 - $6588.22529618 million for AU Optronics 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 43.233 million for AU Optronics 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 AU Optronics ADR at the current share price and the inputted number of shares is $0.2 billion.

RELATED COMPANIES Price Int.Val. Rating
LPL LG Display ADR 7.96 5,362.15  str.buy

COMPANY NEWS

▶ AU Optronics: 3Q Earnings Snapshot   [Oct-31-18 05:02AM  Associated Press]
▶ 7 Fast-Moving Semiconductor Stocks Ready to Blast Higher   [Aug-27-18 03:28PM  InvestorPlace]
▶ AU Optronics: 2Q Earnings Snapshot   [Jul-26-18 05:01AM  Associated Press]
▶ AU Optronics Corp. Files 2017 Annual Report on Form 20-F   [Mar-29-18 07:11AM  PR Newswire]
▶ AU Optronics posts 4Q profit   [Feb-07-18 05:01AM  Associated Press]
▶ Why AU Optronics Stock Popped 14% This Morning   [Jan-24-18 01:41PM  Motley Fool]
▶ 3 Stocks That Could Put Amazon's Returns to Shame   [Oct-30-17 08:49PM  Motley Fool]
▶ 3 Stocks With Starbucks-Like Return Potential   [Aug-12-17 10:35AM  Motley Fool]
▶ ETFs with exposure to AU Optronics Corp. : August 8, 2017   [Aug-08-17 04:00PM  Capital Cube]
▶ AU Optronics posts 2Q profit   [Jul-26-17 09:54PM  Associated Press]
▶ ETFs with exposure to AU Optronics Corp. : June 28, 2017   [Jun-28-17 02:33PM  Capital Cube]
▶ 3 Great Stocks Under $10   [Jun-19-17 12:04PM  Motley Fool]
▶ Top Ranked Value Stocks to Buy for June 16th   [Jun-16-17 11:46AM  Zacks]
▶ 3 Stocks With Electronic Arts-Like Return Potential   [Jun-08-17 04:17PM  Motley Fool]
▶ Flat Panel Display Stocks: Why It's Time to Sell   [Jun-07-17 09:00PM  Barrons.com]
▶ ETFs with exposure to AU Optronics Corp. : June 5, 2017   [Jun-05-17 02:01PM  Capital Cube]
▶ ETFs with exposure to AU Optronics Corp. : May 25, 2017   [May-25-17 12:35PM  Capital Cube]
▶ 3 Top Stocks Under $5   [May-20-17 09:11AM  Motley Fool]
▶ IIROC Trading Resumption - AUO.P   [May-19-17 04:10PM  PR Newswire]
▶ IIROC Trading Resumption - AUO.P   [04:10PM  CNW Group]
▶ IIROC Trading Halt - AUO.P   [07:52AM  CNW Group]
▶ Top Ranked Value Stocks to Buy for May 9th   [May-09-17 11:04AM  Zacks]
▶ AU Optronics posts 1Q profit   [Apr-27-17 05:00AM  Associated Press]
▶ AU Optronics Corp. Files 2016 Annual Report on Form 20-F   [Mar-30-17 08:59AM  PR Newswire]
▶ Top Ranked Momentum Stocks to Buy for March 1st   [Mar-01-17 10:49AM  Zacks]
▶ AU Optronics posts 4Q profit   [Feb-14-17 05:03AM  AP]
▶ JPMorgan Turns Sour On LCD Display   [Feb-12-17 10:57PM  at Barrons.com]
▶ Is AU Optronics Corp (ADR) (AUO) Going to Burn These Hedge Funds?   [Dec-12-16 11:21AM  at Insider Monkey]

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