Intrinsic value of Bitauto Holdings ADR - BITA

Previous Close

$19.09

  Intrinsic Value

$85.08

stock screener

  Rating & Target

str. buy

+346%

Previous close

$19.09

 
Intrinsic value

$85.08

 
Up/down potential

+346%

 
Rating

str. buy

We calculate the intrinsic value of BITA 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 0.6

 

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, %
  59.10
  53.69
  48.82
  44.44
  40.50
  36.95
  33.75
  30.88
  28.29
  25.96
  23.86
  21.98
  20.28
  18.75
  17.38
  16.14
  15.02
  14.02
  13.12
  12.31
  11.58
  10.92
  10.33
  9.79
  9.32
  8.88
  8.50
  8.15
  7.83
  7.55
Revenue, $m
  2,104
  3,234
  4,813
  6,952
  9,768
  13,377
  17,891
  23,416
  30,039
  37,837
  46,867
  57,167
  68,760
  81,653
  95,842
  111,309
  128,034
  145,987
  165,140
  185,466
  206,938
  229,535
  253,240
  278,045
  303,946
  330,948
  359,063
  388,312
  418,722
  450,328
Variable operating expenses, $m
  2,124
  3,246
  4,814
  6,939
  9,734
  13,318
  17,802
  23,287
  29,865
  37,609
  46,542
  56,770
  68,283
  81,087
  95,177
  110,537
  127,145
  144,974
  163,995
  184,179
  205,502
  227,942
  251,483
  276,115
  301,837
  328,651
  356,572
  385,618
  415,817
  447,203
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
  2,124
  3,246
  4,814
  6,939
  9,734
  13,318
  17,802
  23,287
  29,865
  37,609
  46,542
  56,770
  68,283
  81,087
  95,177
  110,537
  127,145
  144,974
  163,995
  184,179
  205,502
  227,942
  251,483
  276,115
  301,837
  328,651
  356,572
  385,618
  415,817
  447,203
Operating income, $m
  -20
  -12
  -1
  14
  33
  59
  90
  128
  174
  228
  325
  397
  477
  567
  665
  772
  888
  1,013
  1,146
  1,287
  1,436
  1,593
  1,757
  1,929
  2,109
  2,296
  2,491
  2,694
  2,905
  3,125
EBITDA, $m
  109
  168
  250
  361
  507
  695
  929
  1,216
  1,560
  1,965
  2,434
  2,969
  3,571
  4,241
  4,978
  5,781
  6,650
  7,582
  8,577
  9,633
  10,748
  11,922
  13,153
  14,441
  15,787
  17,189
  18,649
  20,168
  21,748
  23,390
Interest expense (income), $m
  19
  211
  339
  525
  784
  1,135
  1,596
  2,188
  2,929
  3,835
  4,921
  6,200
  7,681
  9,370
  11,272
  13,386
  15,713
  18,250
  20,993
  23,938
  27,079
  30,413
  33,934
  37,640
  41,528
  45,597
  49,845
  54,273
  58,884
  63,682
  68,669
Earnings before tax, $m
  -230
  -351
  -526
  -770
  -1,101
  -1,538
  -2,098
  -2,800
  -3,661
  -4,693
  -5,875
  -7,284
  -8,893
  -10,705
  -12,721
  -14,941
  -17,362
  -19,980
  -22,792
  -25,792
  -28,977
  -32,342
  -35,883
  -39,599
  -43,488
  -47,548
  -51,782
  -56,190
  -60,776
  -65,544
Tax expense, $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
Net income, $m
  -230
  -351
  -526
  -770
  -1,101
  -1,538
  -2,098
  -2,800
  -3,661
  -4,693
  -5,875
  -7,284
  -8,893
  -10,705
  -12,721
  -14,941
  -17,362
  -19,980
  -22,792
  -25,792
  -28,977
  -32,342
  -35,883
  -39,599
  -43,488
  -47,548
  -51,782
  -56,190
  -60,776
  -65,544

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
  11,194
  17,204
  25,603
  36,981
  51,957
  71,152
  95,167
  124,551
  159,784
  201,263
  249,292
  304,079
  365,744
  434,327
  509,797
  592,071
  681,029
  776,526
  878,407
  986,522
  1,100,735
  1,220,930
  1,347,023
  1,478,962
  1,616,732
  1,760,360
  1,909,911
  2,065,490
  2,227,245
  2,395,361
Adjusted assets (=assets-cash), $m
  11,194
  17,204
  25,603
  36,981
  51,957
  71,152
  95,167
  124,551
  159,784
  201,263
  249,292
  304,079
  365,744
  434,327
  509,797
  592,071
  681,029
  776,526
  878,407
  986,522
  1,100,735
  1,220,930
  1,347,023
  1,478,962
  1,616,732
  1,760,360
  1,909,911
  2,065,490
  2,227,245
  2,395,361
Revenue / Adjusted assets
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
  0.188
Average production assets, $m
  474
  728
  1,083
  1,564
  2,198
  3,010
  4,026
  5,268
  6,759
  8,513
  10,545
  12,863
  15,471
  18,372
  21,564
  25,045
  28,808
  32,847
  37,157
  41,730
  46,561
  51,645
  56,979
  62,560
  68,388
  74,463
  80,789
  87,370
  94,212
  101,324
Working capital, $m
  1,052
  1,617
  2,407
  3,476
  4,884
  6,688
  8,946
  11,708
  15,020
  18,919
  23,433
  28,583
  34,380
  40,827
  47,921
  55,655
  64,017
  72,993
  82,570
  92,733
  103,469
  114,767
  126,620
  139,022
  151,973
  165,474
  179,532
  194,156
  209,361
  225,164
Total debt, $m
  6,286
  9,718
  14,514
  21,010
  29,561
  40,522
  54,235
  71,013
  91,131
  114,815
  142,240
  173,523
  208,734
  247,895
  290,988
  337,967
  388,762
  443,290
  501,464
  563,198
  628,414
  697,045
  769,044
  844,381
  923,048
  1,005,060
  1,090,453
  1,179,289
  1,271,651
  1,367,645
Total liabilities, $m
  6,392
  9,824
  14,620
  21,116
  29,667
  40,628
  54,340
  71,119
  91,237
  114,921
  142,345
  173,629
  208,840
  248,001
  291,094
  338,073
  388,868
  443,396
  501,570
  563,304
  628,519
  697,151
  769,150
  844,487
  923,154
  1,005,166
  1,090,559
  1,179,395
  1,271,757
  1,367,751
Total equity, $m
  4,802
  7,381
  10,984
  15,865
  22,289
  30,524
  40,827
  53,432
  68,547
  86,342
  106,946
  130,450
  156,904
  186,326
  218,703
  253,999
  292,162
  333,129
  376,836
  423,218
  472,215
  523,779
  577,873
  634,475
  693,578
  755,195
  819,352
  886,095
  955,488
  1,027,610
Total liabilities and equity, $m
  11,194
  17,205
  25,604
  36,981
  51,956
  71,152
  95,167
  124,551
  159,784
  201,263
  249,291
  304,079
  365,744
  434,327
  509,797
  592,072
  681,030
  776,525
  878,406
  986,522
  1,100,734
  1,220,930
  1,347,023
  1,478,962
  1,616,732
  1,760,361
  1,909,911
  2,065,490
  2,227,245
  2,395,361
Debt-to-equity ratio
  1.310
  1.320
  1.320
  1.320
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
  1.330
Adjusted equity ratio
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -230
  -351
  -526
  -770
  -1,101
  -1,538
  -2,098
  -2,800
  -3,661
  -4,693
  -5,875
  -7,284
  -8,893
  -10,705
  -12,721
  -14,941
  -17,362
  -19,980
  -22,792
  -25,792
  -28,977
  -32,342
  -35,883
  -39,599
  -43,488
  -47,548
  -51,782
  -56,190
  -60,776
  -65,544
Depreciation, amort., depletion, $m
  129
  180
  251
  347
  474
  636
  839
  1,088
  1,386
  1,737
  2,109
  2,573
  3,094
  3,674
  4,313
  5,009
  5,762
  6,569
  7,431
  8,346
  9,312
  10,329
  11,396
  12,512
  13,678
  14,893
  16,158
  17,474
  18,842
  20,265
Funds from operations, $m
  -101
  -171
  -275
  -423
  -627
  -902
  -1,259
  -1,712
  -2,274
  -2,956
  -3,766
  -4,712
  -5,799
  -7,031
  -8,408
  -9,932
  -11,600
  -13,411
  -15,360
  -17,446
  -19,665
  -22,013
  -24,487
  -27,087
  -29,810
  -32,656
  -35,624
  -38,716
  -41,934
  -45,280
Change in working capital, $m
  391
  565
  790
  1,070
  1,408
  1,804
  2,257
  2,762
  3,312
  3,899
  4,515
  5,150
  5,797
  6,447
  7,094
  7,734
  8,362
  8,977
  9,577
  10,163
  10,736
  11,298
  11,853
  12,402
  12,950
  13,501
  14,058
  14,624
  15,205
  15,803
Cash from operations, $m
  -492
  -736
  -1,064
  -1,492
  -2,035
  -2,706
  -3,516
  -4,475
  -5,586
  -6,855
  -8,280
  -9,862
  -11,595
  -13,477
  -15,503
  -17,666
  -19,962
  -22,387
  -24,937
  -27,609
  -30,401
  -33,311
  -36,340
  -39,489
  -42,760
  -46,157
  -49,682
  -53,340
  -57,139
  -61,083
Maintenance CAPEX, $m
  -60
  -95
  -146
  -217
  -313
  -440
  -602
  -805
  -1,054
  -1,352
  -1,703
  -2,109
  -2,573
  -3,094
  -3,674
  -4,313
  -5,009
  -5,762
  -6,569
  -7,431
  -8,346
  -9,312
  -10,329
  -11,396
  -12,512
  -13,678
  -14,893
  -16,158
  -17,474
  -18,842
New CAPEX, $m
  -175
  -254
  -355
  -481
  -633
  -812
  -1,016
  -1,243
  -1,490
  -1,755
  -2,032
  -2,317
  -2,608
  -2,901
  -3,192
  -3,480
  -3,763
  -4,039
  -4,310
  -4,573
  -4,831
  -5,084
  -5,334
  -5,581
  -5,828
  -6,075
  -6,326
  -6,581
  -6,842
  -7,111
Cash from investing activities, $m
  -235
  -349
  -501
  -698
  -946
  -1,252
  -1,618
  -2,048
  -2,544
  -3,107
  -3,735
  -4,426
  -5,181
  -5,995
  -6,866
  -7,793
  -8,772
  -9,801
  -10,879
  -12,004
  -13,177
  -14,396
  -15,663
  -16,977
  -18,340
  -19,753
  -21,219
  -22,739
  -24,316
  -25,953
Free cash flow, $m
  -727
  -1,085
  -1,565
  -2,190
  -2,981
  -3,957
  -5,134
  -6,523
  -8,130
  -9,961
  -12,015
  -14,288
  -16,776
  -19,473
  -22,369
  -25,459
  -28,734
  -32,188
  -35,816
  -39,614
  -43,578
  -47,707
  -52,003
  -56,466
  -61,100
  -65,910
  -70,900
  -76,079
  -81,455
  -87,036
Issuance/(repayment) of debt, $m
  2,386
  3,432
  4,796
  6,497
  8,551
  10,961
  13,712
  16,778
  20,118
  23,685
  27,424
  31,283
  35,211
  39,161
  43,093
  46,979
  50,795
  54,528
  58,174
  61,734
  65,215
  68,632
  71,999
  75,337
  78,667
  82,011
  85,393
  88,836
  92,362
  95,994
Issuance/(repurchase) of shares, $m
  2,019
  2,930
  4,129
  5,651
  7,526
  9,773
  12,401
  15,406
  18,776
  22,487
  26,479
  30,788
  35,348
  40,127
  45,098
  50,237
  55,525
  60,948
  66,499
  72,174
  77,974
  83,905
  89,977
  96,201
  102,591
  109,165
  115,939
  122,934
  130,169
  137,666
Cash from financing (excl. dividends), $m  
  4,405
  6,362
  8,925
  12,148
  16,077
  20,734
  26,113
  32,184
  38,894
  46,172
  53,903
  62,071
  70,559
  79,288
  88,191
  97,216
  106,320
  115,476
  124,673
  133,908
  143,189
  152,537
  161,976
  171,538
  181,258
  191,176
  201,332
  211,770
  222,531
  233,660
Total cash flow (excl. dividends), $m
  3,678
  5,276
  7,360
  9,958
  13,095
  16,776
  20,979
  25,662
  30,763
  36,211
  41,888
  47,783
  53,782
  59,815
  65,822
  71,757
  77,585
  83,288
  88,857
  94,294
  99,612
  104,830
  109,973
  115,072
  120,158
  125,266
  130,432
  135,690
  141,076
  146,624
Retained Cash Flow (-), $m
  -2,019
  -2,930
  -4,129
  -5,651
  -7,526
  -9,773
  -12,401
  -15,406
  -18,776
  -22,487
  -26,479
  -30,788
  -35,348
  -40,127
  -45,098
  -50,237
  -55,525
  -60,948
  -66,499
  -72,174
  -77,974
  -83,905
  -89,977
  -96,201
  -102,591
  -109,165
  -115,939
  -122,934
  -130,169
  -137,666
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
  1,659
  2,346
  3,231
  4,307
  5,570
  7,003
  8,578
  10,255
  11,988
  13,723
  15,409
  16,995
  18,435
  19,688
  20,724
  21,520
  22,061
  22,340
  22,358
  22,120
  21,638
  20,924
  19,996
  18,871
  17,567
  16,102
  14,493
  12,757
  10,907
  8,958
Discount rate, %
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
  1,543
  2,016
  2,546
  3,087
  3,601
  4,047
  4,388
  4,596
  4,656
  4,565
  4,337
  3,993
  3,566
  3,090
  2,597
  2,118
  1,676
  1,285
  955
  688
  479
  322
  209
  130
  78
  45
  25
  13
  6
  3
Current shareholders' claim on cash, %
  51.1
  27.3
  15.2
  8.7
  5.2
  3.2
  2.0
  1.3
  0.9
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Bitauto Holdings Limited is a provider of Internet content and marketing services for China's automotive industry. The Company's bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.

FINANCIAL RATIOS  of  Bitauto Holdings ADR (BITA)

Valuation Ratios
P/E Ratio -17
Price to Sales 1.6
Price to Book 1
Price to Tangible Book
Price to Cash Flow 17.4
Price to Free Cash Flow -110.5
Growth Rates
Sales Growth Rate 35.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 158.8%
Cap. Spend. - 3 Yr. Gr. Rate 77.5%
Financial Strength
Quick Ratio 0
Current Ratio 0.5
LT Debt to Equity 42.7%
Total Debt to Equity 132.1%
Interest Coverage 0
Management Effectiveness
Return On Assets -1.4%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital -3.5%
Ret/ On T. Cap. - 3 Yr. Avg. 4.8%
Return On Equity -6%
Return On Equity - 3 Yr. Avg. 3.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 64.1%
Gross Margin - 3 Yr. Avg. 68.2%
EBITDA Margin 10.9%
EBITDA Margin - 3 Yr. Avg. 15%
Operating Margin -1.9%
Oper. Margin - 3 Yr. Avg. 2.5%
Pre-Tax Margin -3.4%
Pre-Tax Margin - 3 Yr. Avg. 3.9%
Net Profit Margin -9.3%
Net Profit Margin - 3 Yr. Avg. -0.9%
Effective Tax Rate -75%
Eff/ Tax Rate - 3 Yr. Avg. -26.8%
Payout Ratio 0%

BITA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BITA stock intrinsic value calculation we used $1322.74168682 million for the last fiscal year's total revenue generated by Bitauto Holdings ADR. The default revenue input number comes from 0001 income statement of Bitauto Holdings 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 BITA stock valuation model: a) initial revenue growth rate of 59.1% 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 7.5%, whose default value for BITA is calculated based on our internal credit rating of Bitauto Holdings 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 Bitauto Holdings 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 BITA stock the variable cost ratio is equal to 101.9%.

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 BITA 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 Bitauto Holdings ADR.

Corporate tax rate of 27% is the nominal tax rate for Bitauto Holdings 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 BITA 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 BITA are equal to 22.5%.

Life of production assets of 3.7 years is the average useful life of capital assets used in Bitauto Holdings 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 BITA is equal to 50%. 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 - $3013.25846433 million for Bitauto Holdings 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 30.32 million for Bitauto Holdings 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 Bitauto Holdings ADR at the current share price and the inputted number of shares is $0.6 billion.

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COMPANY NEWS

▶ Bitauto Holdngs: 2Q Earnings Snapshot   [05:39AM  Associated Press]
▶ 3 High-Growth Stocks That Could Soar   [Jul-23-18 02:03PM  Motley Fool]
▶ Should Investors Give BitAuto a Chance?   [Jun-22-18 04:14PM  Motley Fool]
▶ Why BitAuto Holdings Stock Plunged Today   [Jun-14-18 03:10PM  Motley Fool]
▶ Why Shares of BitAuto Holdings Are Surging Today   [Jun-13-18 01:50PM  Motley Fool]
▶ Bitauto Holdngs: 1Q Earnings Snapshot   [07:31AM  Associated Press]
▶ 3 Monster Stocks in the Making   [Jun-09-18 10:47AM  Motley Fool]
▶ 5 Market-Beating Stocks for Low-Risk Investors   [Jun-07-18 09:54AM  InvestorPlace]
▶ At $21.31, Is Bitauto Holdings Limited (NYSE:BITA) A Buy?   [May-09-18 11:07AM  Simply Wall St.]
▶ 3 Top Stocks Wall Street Is Overlooking   [May-02-18 08:18PM  Motley Fool]
▶ Bitauto Files Annual Report on Form 20-F   [Apr-30-18 06:00AM  PR Newswire]
▶ Why Bitauto Holdings Limited Stock Lost 25.5% in March   [Apr-13-18 11:49AM  Motley Fool]
▶ 3 Reasons Why I Bought Bitauto Stock Last Month   [Apr-08-18 01:00PM  Motley Fool]
▶ Why Bitauto Holdings Ltd. Shares Fell 14% Today   [Mar-15-18 11:56AM  Motley Fool]
▶ Bitauto Holdngs reports 4Q loss   [06:49AM  Associated Press]
▶ Bitauto Announces Changes to Board of Directors   [Jan-26-18 05:00AM  PR Newswire]
▶ IBD Rating Upgrades: BitAuto Flashes Improved Price Strength   [Jan-17-18 03:00AM  Investor's Business Daily]
▶ BitAuto Trying To Close In On Key Technical Measure   [03:00AM  Investor's Business Daily]
▶ Why Bitauto Holdings Limted Stock Gained 67.9% in 2017   [Jan-09-18 05:27PM  Motley Fool]
▶ 5 Chinese Growth Stocks to Buy in 2018   [Jan-08-18 09:34PM  Motley Fool]
▶ 5 Top Small-Cap Stocks to Buy in 2018   [07:03AM  Motley Fool]
▶ IBD Rating Upgrades: BitAuto Shows Improved Relative Price Strength   [Jan-04-18 03:00AM  Investor's Business Daily]
▶ A Chinese Growth Stock No One Is Paying Attention To   [Nov-26-17 11:00AM  Motley Fool]
▶ 3 Top Stocks Wall Street Is Overlooking   [Nov-25-17 08:00AM  Motley Fool]
▶ 5 Monster Stocks in the Making to Buy for 2018   [Nov-24-17 08:02AM  Motley Fool]
▶ BitAuto Third-Quarter Results Beat On Revenue, Miss On Earnings   [Nov-20-17 05:31PM  Investor's Business Daily]
▶ Bitauto Holdngs reports 3Q loss   [06:27AM  Associated Press]
▶ Autohome Crashes As Company Announces Management Shake-Up   [Sep-28-17 04:45PM  Investor's Business Daily]
▶ China Stocks Battered As Profit-Taking Kicks In After Long Run-Up   [Aug-28-17 04:31PM  Investor's Business Daily]
▶ Bitauto Holdngs reports 2Q loss   [Aug-15-17 10:18PM  Associated Press]
▶ BitAuto Beats Expectations But Stock Slips   [06:25AM  Investor's Business Daily]
▶ These Hot China-Based Stocks Are Trading At Or Near New All-Time Highs   [Aug-07-17 11:22AM  Investor's Business Daily]
▶ Best Chinese Stocks To Buy And Watch   [Jun-20-17 04:41PM  Investor's Business Daily]
▶ Which Stocks Are Showing Rising Relative Strength?   [04:27PM  Investor's Business Daily]
▶ 3 Stocks Wall Street Hasn't Noticed   [Jun-17-17 07:32AM  Motley Fool]
▶ 3 Mid-Cap Stocks for June   [Jun-15-17 09:04AM  Motley Fool]
▶ My Top Stock to Buy in June   [Jun-03-17 10:49AM  Motley Fool]

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