Intrinsic value of CenturyLink - CTL

Previous Close

$23.33

  Intrinsic Value

$43.81

stock screener

  Rating & Target

str. buy

+88%

Previous close

$23.33

 
Intrinsic value

$43.81

 
Up/down potential

+88%

 
Rating

str. buy

We calculate the intrinsic value of CTL 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 2017), $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 14.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  18,009
  18,423
  18,897
  19,428
  20,017
  20,664
  21,367
  22,129
  22,950
  23,831
  24,773
  25,778
  26,849
  27,986
  29,194
  30,473
  31,827
  33,259
  34,773
  36,370
  38,056
  39,834
  41,708
  43,683
  45,762
  47,952
  50,256
  52,682
  55,233
  57,917
Variable operating expenses, $m
  15,509
  15,767
  16,061
  16,391
  16,757
  17,158
  17,595
  18,068
  18,578
  19,125
  15,385
  16,010
  16,674
  17,381
  18,131
  18,925
  19,766
  20,656
  21,596
  22,588
  23,635
  24,739
  25,903
  27,129
  28,421
  29,781
  31,212
  32,718
  34,303
  35,969
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
  15,509
  15,767
  16,061
  16,391
  16,757
  17,158
  17,595
  18,068
  18,578
  19,125
  15,385
  16,010
  16,674
  17,381
  18,131
  18,925
  19,766
  20,656
  21,596
  22,588
  23,635
  24,739
  25,903
  27,129
  28,421
  29,781
  31,212
  32,718
  34,303
  35,969
Operating income, $m
  2,500
  2,657
  2,836
  3,038
  3,261
  3,506
  3,772
  4,061
  4,372
  4,706
  9,388
  9,769
  10,174
  10,605
  11,063
  11,548
  12,061
  12,604
  13,177
  13,782
  14,421
  15,095
  15,805
  16,553
  17,342
  18,171
  19,045
  19,964
  20,930
  21,947
EBITDA, $m
  12,492
  12,779
  13,108
  13,476
  13,885
  14,333
  14,821
  15,350
  15,919
  16,530
  17,184
  17,881
  18,624
  19,413
  20,250
  21,138
  22,077
  23,070
  24,120
  25,228
  26,398
  27,631
  28,931
  30,300
  31,743
  33,262
  34,860
  36,543
  38,312
  40,174
Interest expense (income), $m
  1,301
  2,037
  2,086
  2,152
  2,227
  2,312
  2,405
  2,508
  2,620
  2,741
  2,872
  3,012
  3,162
  3,321
  3,492
  3,673
  3,865
  4,068
  4,283
  4,511
  4,752
  5,006
  5,274
  5,556
  5,854
  6,168
  6,499
  6,847
  7,214
  7,599
  8,005
Earnings before tax, $m
  463
  571
  684
  810
  949
  1,100
  1,264
  1,441
  1,631
  1,834
  6,376
  6,607
  6,853
  7,114
  7,390
  7,683
  7,993
  8,320
  8,666
  9,031
  9,416
  9,821
  10,249
  10,699
  11,173
  11,672
  12,198
  12,750
  13,331
  13,943
Tax expense, $m
  125
  154
  185
  219
  256
  297
  341
  389
  440
  495
  1,721
  1,784
  1,850
  1,921
  1,995
  2,074
  2,158
  2,246
  2,340
  2,438
  2,542
  2,652
  2,767
  2,889
  3,017
  3,152
  3,293
  3,443
  3,599
  3,765
Net income, $m
  338
  416
  499
  591
  693
  803
  923
  1,052
  1,190
  1,339
  4,654
  4,823
  5,003
  5,193
  5,395
  5,609
  5,835
  6,074
  6,326
  6,593
  6,873
  7,170
  7,482
  7,810
  8,156
  8,521
  8,904
  9,308
  9,732
  10,178

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
  76,962
  78,732
  80,756
  83,027
  85,544
  88,306
  91,314
  94,569
  98,076
  101,840
  105,867
  110,164
  114,738
  119,600
  124,760
  130,227
  136,014
  142,134
  148,601
  155,429
  162,634
  170,231
  178,240
  186,678
  195,565
  204,922
  214,771
  225,135
  236,039
  247,507
Adjusted assets (=assets-cash), $m
  76,962
  78,732
  80,756
  83,027
  85,544
  88,306
  91,314
  94,569
  98,076
  101,840
  105,867
  110,164
  114,738
  119,600
  124,760
  130,227
  136,014
  142,134
  148,601
  155,429
  162,634
  170,231
  178,240
  186,678
  195,565
  204,922
  214,771
  225,135
  236,039
  247,507
Revenue / Adjusted assets
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
  0.234
Average production assets, $m
  56,675
  57,978
  59,468
  61,141
  62,995
  65,029
  67,243
  69,640
  72,223
  74,995
  77,960
  81,124
  84,493
  88,073
  91,873
  95,899
  100,161
  104,668
  109,430
  114,458
  119,763
  125,358
  131,256
  137,469
  144,014
  150,904
  158,157
  165,789
  173,818
  182,264
Working capital, $m
  -1,585
  -1,621
  -1,663
  -1,710
  -1,762
  -1,818
  -1,880
  -1,947
  -2,020
  -2,097
  -2,180
  -2,268
  -2,363
  -2,463
  -2,569
  -2,682
  -2,801
  -2,927
  -3,060
  -3,201
  -3,349
  -3,505
  -3,670
  -3,844
  -4,027
  -4,220
  -4,423
  -4,636
  -4,861
  -5,097
Total debt, $m
  38,633
  39,852
  41,247
  42,812
  44,546
  46,449
  48,521
  50,764
  53,181
  55,774
  58,548
  61,509
  64,661
  68,011
  71,565
  75,332
  79,320
  83,537
  87,992
  92,697
  97,661
  102,895
  108,413
  114,227
  120,351
  126,798
  133,583
  140,724
  148,237
  156,138
Total liabilities, $m
  53,027
  54,246
  55,641
  57,206
  58,940
  60,843
  62,915
  65,158
  67,575
  70,168
  72,942
  75,903
  79,055
  82,405
  85,959
  89,726
  93,714
  97,931
  102,386
  107,091
  112,055
  117,289
  122,807
  128,621
  134,745
  141,192
  147,977
  155,118
  162,631
  170,532
Total equity, $m
  23,935
  24,486
  25,115
  25,821
  26,604
  27,463
  28,399
  29,411
  30,502
  31,672
  32,925
  34,261
  35,684
  37,196
  38,800
  40,501
  42,300
  44,204
  46,215
  48,338
  50,579
  52,942
  55,433
  58,057
  60,821
  63,731
  66,794
  70,017
  73,408
  76,975
Total liabilities and equity, $m
  76,962
  78,732
  80,756
  83,027
  85,544
  88,306
  91,314
  94,569
  98,077
  101,840
  105,867
  110,164
  114,739
  119,601
  124,759
  130,227
  136,014
  142,135
  148,601
  155,429
  162,634
  170,231
  178,240
  186,678
  195,566
  204,923
  214,771
  225,135
  236,039
  247,507
Debt-to-equity ratio
  1.610
  1.630
  1.640
  1.660
  1.670
  1.690
  1.710
  1.730
  1.740
  1.760
  1.780
  1.800
  1.810
  1.830
  1.840
  1.860
  1.880
  1.890
  1.900
  1.920
  1.930
  1.940
  1.960
  1.970
  1.980
  1.990
  2.000
  2.010
  2.020
  2.030
Adjusted equity ratio
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  338
  416
  499
  591
  693
  803
  923
  1,052
  1,190
  1,339
  4,654
  4,823
  5,003
  5,193
  5,395
  5,609
  5,835
  6,074
  6,326
  6,593
  6,873
  7,170
  7,482
  7,810
  8,156
  8,521
  8,904
  9,308
  9,732
  10,178
Depreciation, amort., depletion, $m
  9,992
  10,123
  10,272
  10,439
  10,624
  10,828
  11,049
  11,289
  11,547
  11,824
  7,796
  8,112
  8,449
  8,807
  9,187
  9,590
  10,016
  10,467
  10,943
  11,446
  11,976
  12,536
  13,126
  13,747
  14,401
  15,090
  15,816
  16,579
  17,382
  18,226
Funds from operations, $m
  10,330
  10,539
  10,771
  11,030
  11,317
  11,631
  11,972
  12,341
  12,738
  13,163
  12,450
  12,936
  13,452
  14,000
  14,582
  15,199
  15,851
  16,541
  17,269
  18,038
  18,850
  19,705
  20,607
  21,557
  22,558
  23,611
  24,720
  25,886
  27,114
  28,404
Change in working capital, $m
  -31
  -36
  -42
  -47
  -52
  -57
  -62
  -67
  -72
  -78
  -83
  -88
  -94
  -100
  -106
  -113
  -119
  -126
  -133
  -141
  -148
  -156
  -165
  -174
  -183
  -193
  -203
  -213
  -225
  -236
Cash from operations, $m
  10,361
  10,576
  10,813
  11,077
  11,369
  11,688
  12,034
  12,408
  12,810
  13,241
  12,533
  13,024
  13,546
  14,100
  14,688
  15,311
  15,970
  16,667
  17,402
  18,179
  18,998
  19,862
  20,772
  21,731
  22,741
  23,804
  24,923
  26,100
  27,338
  28,641
Maintenance CAPEX, $m
  -5,556
  -5,667
  -5,798
  -5,947
  -6,114
  -6,299
  -6,503
  -6,724
  -6,964
  -7,222
  -7,499
  -7,796
  -8,112
  -8,449
  -8,807
  -9,187
  -9,590
  -10,016
  -10,467
  -10,943
  -11,446
  -11,976
  -12,536
  -13,126
  -13,747
  -14,401
  -15,090
  -15,816
  -16,579
  -17,382
New CAPEX, $m
  -1,116
  -1,304
  -1,490
  -1,673
  -1,854
  -2,034
  -2,215
  -2,397
  -2,583
  -2,772
  -2,965
  -3,164
  -3,369
  -3,580
  -3,799
  -4,026
  -4,262
  -4,507
  -4,762
  -5,028
  -5,305
  -5,595
  -5,898
  -6,214
  -6,545
  -6,891
  -7,253
  -7,632
  -8,029
  -8,445
Cash from investing activities, $m
  -6,672
  -6,971
  -7,288
  -7,620
  -7,968
  -8,333
  -8,718
  -9,121
  -9,547
  -9,994
  -10,464
  -10,960
  -11,481
  -12,029
  -12,606
  -13,213
  -13,852
  -14,523
  -15,229
  -15,971
  -16,751
  -17,571
  -18,434
  -19,340
  -20,292
  -21,292
  -22,343
  -23,448
  -24,608
  -25,827
Free cash flow, $m
  3,689
  3,605
  3,525
  3,457
  3,401
  3,354
  3,316
  3,286
  3,263
  3,247
  2,069
  2,064
  2,065
  2,071
  2,082
  2,098
  2,118
  2,144
  2,174
  2,208
  2,247
  2,291
  2,339
  2,392
  2,449
  2,512
  2,580
  2,652
  2,730
  2,813
Issuance/(repayment) of debt, $m
  907
  1,220
  1,394
  1,565
  1,734
  1,903
  2,072
  2,243
  2,416
  2,593
  2,774
  2,960
  3,152
  3,350
  3,555
  3,767
  3,988
  4,217
  4,456
  4,704
  4,964
  5,235
  5,518
  5,814
  6,123
  6,447
  6,786
  7,141
  7,512
  7,902
Issuance/(repurchase) of shares, $m
  107
  134
  130
  115
  90
  56
  13
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,014
  1,354
  1,524
  1,680
  1,824
  1,959
  2,085
  2,243
  2,416
  2,593
  2,774
  2,960
  3,152
  3,350
  3,555
  3,767
  3,988
  4,217
  4,456
  4,704
  4,964
  5,235
  5,518
  5,814
  6,123
  6,447
  6,786
  7,141
  7,512
  7,902
Total cash flow (excl. dividends), $m
  4,702
  4,958
  5,049
  5,138
  5,226
  5,313
  5,401
  5,529
  5,679
  5,840
  4,843
  5,024
  5,217
  5,421
  5,637
  5,865
  6,106
  6,360
  6,629
  6,912
  7,211
  7,525
  7,857
  8,206
  8,573
  8,959
  9,365
  9,793
  10,243
  10,715
Retained Cash Flow (-), $m
  -444
  -551
  -629
  -706
  -783
  -859
  -935
  -1,012
  -1,091
  -1,171
  -1,252
  -1,336
  -1,423
  -1,512
  -1,605
  -1,700
  -1,800
  -1,903
  -2,011
  -2,123
  -2,241
  -2,363
  -2,491
  -2,624
  -2,764
  -2,910
  -3,063
  -3,223
  -3,391
  -3,567
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
  106
  108
  111
  113
  117
  120
  124
  128
  133
  138
  143
  149
  155
  161
  168
  175
  183
  191
  200
  209
  218
  228
  239
  250
  262
  275
  288
  302
  316
  331
Cash available for distribution, $m
  4,258
  4,408
  4,420
  4,431
  4,443
  4,454
  4,466
  4,517
  4,589
  4,669
  3,591
  3,688
  3,794
  3,909
  4,032
  4,164
  4,306
  4,457
  4,618
  4,789
  4,970
  5,163
  5,366
  5,581
  5,809
  6,049
  6,302
  6,570
  6,852
  7,149
Discount rate, %
  9.40
  9.87
  10.36
  10.88
  11.43
  12.00
  12.60
  13.23
  13.89
  14.58
  15.31
  16.08
  16.88
  17.73
  18.61
  19.54
  20.52
  21.54
  22.62
  23.75
  24.94
  26.19
  27.50
  28.87
  30.32
  31.83
  33.42
  35.09
  36.85
  38.69
PV of cash for distribution, $m
  3,892
  3,651
  3,288
  2,931
  2,587
  2,257
  1,946
  1,672
  1,424
  1,197
  749
  616
  499
  398
  312
  239
  180
  133
  96
  67
  46
  31
  20
  13
  8
  5
  3
  1
  1
  0
Current shareholders' claim on cash, %
  99.4
  98.6
  97.8
  97.2
  96.7
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4
  96.4

CenturyLink, Inc. is an integrated communications company. The Company is engaged in providing an array of communications services to its residential and business customers. Its segments include Enterprise, which provides strategic, legacy and data integration products and services to small, medium and enterprise business, wholesale and governmental customers, including other communication providers, and Consumer, which provides strategic and legacy products and services to residential customers. Its communications services include local and long-distance voice, broadband, Multi-Protocol Label Switching (MPLS), private line (including special access), Ethernet, colocation, hosting (including cloud hosting and managed hosting), data integration, video, network, public access, Voice over Internet Protocol (VoIP), information technology and other ancillary services.

FINANCIAL RATIOS  of  CenturyLink (CTL)

Valuation Ratios
P/E Ratio 20.4
Price to Sales 0.7
Price to Book 1
Price to Tangible Book
Price to Cash Flow 2.8
Price to Free Cash Flow 7.8
Growth Rates
Sales Growth Rate -2.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 3.8%
Cap. Spend. - 3 Yr. Gr. Rate -0.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.5
LT Debt to Equity 135.7%
Total Debt to Equity 146.9%
Interest Coverage 2
Management Effectiveness
Return On Assets 3%
Ret/ On Assets - 3 Yr. Avg. 3.3%
Return On Total Capital 1.9%
Ret/ On T. Cap. - 3 Yr. Avg. 2.2%
Return On Equity 4.6%
Return On Equity - 3 Yr. Avg. 5.1%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 55.5%
Gross Margin - 3 Yr. Avg. 56.2%
EBITDA Margin 35.7%
EBITDA Margin - 3 Yr. Avg. 37.3%
Operating Margin 13.3%
Oper. Margin - 3 Yr. Avg. 13.8%
Pre-Tax Margin 5.8%
Pre-Tax Margin - 3 Yr. Avg. 6.4%
Net Profit Margin 3.6%
Net Profit Margin - 3 Yr. Avg. 4.3%
Effective Tax Rate 38.6%
Eff/ Tax Rate - 3 Yr. Avg. 34.1%
Payout Ratio 186.4%

CTL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CTL stock intrinsic value calculation we used $17656 million for the last fiscal year's total revenue generated by CenturyLink. The default revenue input number comes from 2017 income statement of CenturyLink. 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 CTL 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 9.4%, whose default value for CTL is calculated based on our internal credit rating of CenturyLink, 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 CenturyLink.
    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 CTL stock the variable cost ratio is equal to 86.6%.

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 CTL 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 CenturyLink.

Corporate tax rate of 27% is the nominal tax rate for CenturyLink. 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 CTL stock is equal to 0.6%.

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 CTL are equal to 314.7%.

Life of production assets of 10 years is the average useful life of capital assets used in CenturyLink 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 CTL is equal to -8.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $23491 million for CenturyLink - 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 628 million for CenturyLink 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 CenturyLink at the current share price and the inputted number of shares is $14.7 billion.

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COMPANY NEWS

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▶ CenturyLink's Earnings Steal the Show   [12:58PM  Barrons.com]
▶ CenturyLink: 2Q Earnings Snapshot   [04:23PM  Associated Press]
▶ CenturyLink, Inc. to Host Earnings Call   [03:00PM  ACCESSWIRE]
▶ 3 Dividend Investing Tips That Could Earn You Thousands   [Aug-02-18 10:00AM  Motley Fool]
▶ CenturyLink Connects Enterprises to IBM Cloud   [Aug-01-18 09:00AM  PR Newswire]
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▶ Comcast says services being restored after outage   [Jun-29-18 06:36PM  Reuters]
▶ CenturyLink Sets Second Quarter 2018 Earnings Call Date   [Jun-28-18 09:00AM  PR Newswire]
▶ CenturyLink Can Connect With More Gains   [12:08PM  Barrons.com]
▶ SkySong nears lease capacity   [Jun-15-18 03:01AM  American City Business Journals]
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▶ CenturyLink Bears Have It Wrong   [Jun-08-18 09:07PM  Motley Fool]
▶ 3 Dividend Stocks I'd Never Buy   [07:33AM  Motley Fool]
▶ Is CenturyLink Inc (NYSE:CTL) A Buy At Its Current PE Ratio?   [May-28-18 06:57AM  Simply Wall St.]
▶ 4 Reasons Why BofA Is Bullish On Zayo Group   [May-18-18 12:45PM  Benzinga]
▶ CenturyLink Downgrade: Why The Worst Isn't Over Yet   [May-16-18 11:43AM  Barrons.com]
▶ CenturyLink (CTL) Catches Eye: Stock Jumps 7.5%   [May-11-18 08:59AM  Zacks]
▶ Centurylink Inc Stock Rises on Y2Y Revenue Growth   [May-09-18 04:47PM  InvestorPlace]
▶ CenturyLink: 1Q Earnings Snapshot   [04:28PM  Associated Press]
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