Intrinsic value of Ctrip.com International, Ltd. - CTRP

Previous Close

$33.53

  Intrinsic Value

$79.32

stock screener

  Rating & Target

str. buy

+137%

Previous close

$33.53

 
Intrinsic value

$79.32

 
Up/down potential

+137%

 
Rating

str. buy

We calculate the intrinsic value of CTRP 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 18.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  46.20
  42.08
  38.37
  35.03
  32.03
  29.33
  26.90
  24.71
  22.74
  20.96
  19.37
  17.93
  16.64
  15.47
  14.43
  13.48
  12.63
  11.87
  11.18
  10.57
  10.01
  9.51
  9.06
  8.65
  8.29
  7.96
  7.66
  7.40
  7.16
  6.94
Revenue, $m
  5,918
  8,409
  11,635
  15,711
  20,744
  26,828
  34,043
  42,454
  52,106
  63,028
  75,234
  88,723
  103,483
  119,494
  136,731
  155,166
  174,771
  195,518
  217,384
  240,352
  264,409
  289,549
  315,774
  343,093
  371,523
  401,088
  431,819
  463,756
  496,943
  531,434
Variable operating expenses, $m
  2,790
  3,928
  5,402
  7,265
  9,565
  12,346
  15,644
  19,487
  23,899
  28,890
  34,384
  40,549
  47,294
  54,612
  62,490
  70,915
  79,875
  89,357
  99,350
  109,847
  120,842
  132,332
  144,317
  156,803
  169,796
  183,308
  197,353
  211,949
  227,116
  242,879
Fixed operating expenses, $m
  1,748
  1,786
  1,825
  1,866
  1,907
  1,949
  1,991
  2,035
  2,080
  2,126
  2,172
  2,220
  2,269
  2,319
  2,370
  2,422
  2,475
  2,530
  2,586
  2,642
  2,701
  2,760
  2,821
  2,883
  2,946
  3,011
  3,077
  3,145
  3,214
  3,285
Total operating expenses, $m
  4,538
  5,714
  7,227
  9,131
  11,472
  14,295
  17,635
  21,522
  25,979
  31,016
  36,556
  42,769
  49,563
  56,931
  64,860
  73,337
  82,350
  91,887
  101,936
  112,489
  123,543
  135,092
  147,138
  159,686
  172,742
  186,319
  200,430
  215,094
  230,330
  246,164
Operating income, $m
  1,381
  2,695
  4,407
  6,580
  9,272
  12,533
  16,408
  20,931
  26,127
  32,012
  38,678
  45,954
  53,919
  62,563
  71,871
  81,829
  92,420
  103,631
  115,448
  127,862
  140,866
  154,457
  168,636
  183,408
  198,781
  214,769
  231,389
  248,662
  266,613
  285,269
EBITDA, $m
  1,758
  3,195
  5,067
  7,441
  10,381
  13,943
  18,174
  23,112
  28,784
  35,208
  42,392
  50,334
  59,028
  68,462
  78,621
  89,489
  101,048
  113,283
  126,180
  139,728
  153,919
  168,751
  184,225
  200,345
  217,122
  234,569
  252,707
  271,556
  291,145
  311,505
Interest expense (income), $m
  86
  372
  601
  907
  1,303
  1,805
  2,423
  3,171
  4,058
  5,091
  6,278
  7,620
  9,120
  10,778
  12,592
  14,560
  16,679
  18,944
  21,354
  23,904
  26,591
  29,414
  32,371
  35,461
  38,684
  42,042
  45,536
  49,170
  52,947
  56,872
  60,951
Earnings before tax, $m
  1,009
  2,094
  3,500
  5,277
  7,467
  10,110
  13,238
  16,874
  21,036
  25,734
  31,058
  36,834
  43,141
  49,971
  57,311
  65,150
  73,476
  82,277
  91,544
  101,271
  111,452
  122,086
  133,175
  144,724
  156,739
  169,233
  182,219
  195,715
  209,741
  224,319
Tax expense, $m
  272
  565
  945
  1,425
  2,016
  2,730
  3,574
  4,556
  5,680
  6,948
  8,386
  9,945
  11,648
  13,492
  15,474
  17,591
  19,839
  22,215
  24,717
  27,343
  30,092
  32,963
  35,957
  39,075
  42,320
  45,693
  49,199
  52,843
  56,630
  60,566
Net income, $m
  737
  1,528
  2,555
  3,852
  5,451
  7,381
  9,663
  12,318
  15,356
  18,786
  22,672
  26,888
  31,493
  36,479
  41,837
  47,560
  53,637
  60,062
  66,827
  73,928
  81,360
  89,123
  97,218
  105,648
  114,420
  123,540
  133,020
  142,872
  153,111
  163,753

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
  30,824
  43,795
  60,599
  81,830
  108,041
  139,728
  177,308
  221,114
  271,385
  328,272
  391,843
  462,097
  538,972
  622,364
  712,142
  808,158
  910,264
  1,018,321
  1,132,209
  1,251,833
  1,377,129
  1,508,067
  1,644,656
  1,786,944
  1,935,017
  2,089,001
  2,249,059
  2,415,395
  2,588,245
  2,767,884
Adjusted assets (=assets-cash), $m
  30,824
  43,795
  60,599
  81,830
  108,041
  139,728
  177,308
  221,114
  271,385
  328,272
  391,843
  462,097
  538,972
  622,364
  712,142
  808,158
  910,264
  1,018,321
  1,132,209
  1,251,833
  1,377,129
  1,508,067
  1,644,656
  1,786,944
  1,935,017
  2,089,001
  2,249,059
  2,415,395
  2,588,245
  2,767,884
Revenue / Adjusted assets
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
  0.192
Average production assets, $m
  8,765
  12,453
  17,232
  23,269
  30,722
  39,732
  50,418
  62,874
  77,169
  93,345
  111,421
  131,398
  153,258
  176,971
  202,499
  229,801
  258,835
  289,562
  321,946
  355,961
  391,589
  428,822
  467,661
  508,121
  550,226
  594,012
  639,525
  686,822
  735,973
  787,053
Working capital, $m
  -3,255
  -4,625
  -6,399
  -8,641
  -11,409
  -14,755
  -18,724
  -23,350
  -28,658
  -34,665
  -41,379
  -48,797
  -56,915
  -65,722
  -75,202
  -85,341
  -96,124
  -107,535
  -119,561
  -132,194
  -145,425
  -159,252
  -173,676
  -188,701
  -204,338
  -220,598
  -237,501
  -255,066
  -273,319
  -292,289
Total debt, $m
  11,127
  16,795
  24,139
  33,417
  44,871
  58,718
  75,141
  94,284
  116,252
  141,112
  168,892
  199,593
  233,188
  269,630
  308,863
  350,822
  395,442
  442,663
  492,432
  544,708
  599,462
  656,682
  716,372
  778,552
  843,259
  910,550
  980,496
  1,053,184
  1,128,720
  1,207,222
Total liabilities, $m
  13,470
  19,138
  26,482
  35,760
  47,214
  61,061
  77,484
  96,627
  118,595
  143,455
  171,236
  201,936
  235,531
  271,973
  311,206
  353,165
  397,785
  445,006
  494,776
  547,051
  601,805
  659,025
  718,715
  780,895
  845,603
  912,893
  982,839
  1,055,527
  1,131,063
  1,209,565
Total equity, $m
  17,354
  24,656
  34,117
  46,070
  60,827
  78,667
  99,825
  124,487
  152,790
  184,817
  220,608
  260,161
  303,441
  350,391
  400,936
  454,993
  512,479
  573,315
  637,434
  704,782
  775,323
  849,042
  925,942
  1,006,050
  1,089,415
  1,176,107
  1,266,220
  1,359,867
  1,457,182
  1,558,319
Total liabilities and equity, $m
  30,824
  43,794
  60,599
  81,830
  108,041
  139,728
  177,309
  221,114
  271,385
  328,272
  391,844
  462,097
  538,972
  622,364
  712,142
  808,158
  910,264
  1,018,321
  1,132,210
  1,251,833
  1,377,128
  1,508,067
  1,644,657
  1,786,945
  1,935,018
  2,089,000
  2,249,059
  2,415,394
  2,588,245
  2,767,884
Debt-to-equity ratio
  0.640
  0.680
  0.710
  0.730
  0.740
  0.750
  0.750
  0.760
  0.760
  0.760
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
Adjusted equity ratio
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  737
  1,528
  2,555
  3,852
  5,451
  7,381
  9,663
  12,318
  15,356
  18,786
  22,672
  26,888
  31,493
  36,479
  41,837
  47,560
  53,637
  60,062
  66,827
  73,928
  81,360
  89,123
  97,218
  105,648
  114,420
  123,540
  133,020
  142,872
  153,111
  163,753
Depreciation, amort., depletion, $m
  377
  500
  659
  861
  1,109
  1,409
  1,766
  2,181
  2,657
  3,196
  3,714
  4,380
  5,109
  5,899
  6,750
  7,660
  8,628
  9,652
  10,732
  11,865
  13,053
  14,294
  15,589
  16,937
  18,341
  19,800
  21,317
  22,894
  24,532
  26,235
Funds from operations, $m
  1,114
  2,028
  3,215
  4,713
  6,560
  8,790
  11,429
  14,498
  18,013
  21,982
  26,386
  31,268
  36,602
  42,378
  48,587
  55,220
  62,265
  69,714
  77,559
  85,793
  94,413
  103,417
  112,807
  122,586
  132,760
  143,341
  154,338
  165,766
  177,643
  189,988
Change in working capital, $m
  -1,029
  -1,370
  -1,775
  -2,242
  -2,768
  -3,346
  -3,968
  -4,626
  -5,309
  -6,007
  -6,713
  -7,419
  -8,118
  -8,806
  -9,481
  -10,139
  -10,782
  -11,411
  -12,027
  -12,632
  -13,231
  -13,827
  -14,424
  -15,026
  -15,637
  -16,261
  -16,902
  -17,565
  -18,253
  -18,970
Cash from operations, $m
  2,142
  3,398
  4,989
  6,955
  9,328
  12,136
  15,397
  19,124
  23,322
  27,990
  33,099
  38,687
  44,720
  51,184
  58,068
  65,359
  73,048
  81,125
  89,586
  98,425
  107,644
  117,244
  127,231
  137,611
  148,397
  159,601
  171,240
  183,331
  195,896
  208,958
Maintenance CAPEX, $m
  -200
  -292
  -415
  -574
  -776
  -1,024
  -1,324
  -1,681
  -2,096
  -2,572
  -3,111
  -3,714
  -4,380
  -5,109
  -5,899
  -6,750
  -7,660
  -8,628
  -9,652
  -10,732
  -11,865
  -13,053
  -14,294
  -15,589
  -16,937
  -18,341
  -19,800
  -21,317
  -22,894
  -24,532
New CAPEX, $m
  -2,768
  -3,688
  -4,778
  -6,037
  -7,453
  -9,010
  -10,686
  -12,456
  -14,295
  -16,176
  -18,077
  -19,977
  -21,860
  -23,713
  -25,528
  -27,302
  -29,034
  -30,726
  -32,384
  -34,015
  -35,628
  -37,233
  -38,839
  -40,460
  -42,105
  -43,786
  -45,513
  -47,298
  -49,150
  -51,081
Cash from investing activities, $m
  -2,968
  -3,980
  -5,193
  -6,611
  -8,229
  -10,034
  -12,010
  -14,137
  -16,391
  -18,748
  -21,188
  -23,691
  -26,240
  -28,822
  -31,427
  -34,052
  -36,694
  -39,354
  -42,036
  -44,747
  -47,493
  -50,286
  -53,133
  -56,049
  -59,042
  -62,127
  -65,313
  -68,615
  -72,044
  -75,613
Free cash flow, $m
  -826
  -582
  -204
  343
  1,099
  2,102
  3,387
  4,988
  6,932
  9,242
  11,911
  14,996
  18,480
  22,363
  26,640
  31,307
  36,354
  41,771
  47,549
  53,679
  60,151
  66,959
  74,097
  81,563
  89,355
  97,475
  105,926
  114,716
  123,852
  133,344
Issuance/(repayment) of debt, $m
  4,244
  5,668
  7,344
  9,278
  11,454
  13,847
  16,423
  19,143
  21,968
  24,860
  27,781
  30,701
  33,594
  36,442
  39,233
  41,959
  44,620
  47,221
  49,769
  52,276
  54,754
  57,220
  59,690
  62,180
  64,708
  67,291
  69,946
  72,689
  75,536
  78,502
Issuance/(repurchase) of shares, $m
  4,717
  5,774
  6,906
  8,101
  9,306
  10,459
  11,494
  12,345
  12,946
  13,241
  13,119
  12,664
  11,788
  10,471
  8,707
  6,497
  3,848
  774
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  8,961
  11,442
  14,250
  17,379
  20,760
  24,306
  27,917
  31,488
  34,914
  38,101
  40,900
  43,365
  45,382
  46,913
  47,940
  48,456
  48,468
  47,995
  49,769
  52,276
  54,754
  57,220
  59,690
  62,180
  64,708
  67,291
  69,946
  72,689
  75,536
  78,502
Total cash flow (excl. dividends), $m
  8,136
  10,860
  14,045
  17,722
  21,859
  26,408
  31,304
  36,475
  41,846
  47,342
  52,811
  58,362
  63,862
  69,276
  74,581
  79,763
  84,822
  89,766
  97,318
  105,954
  114,905
  124,179
  133,787
  143,742
  154,063
  164,766
  175,872
  187,404
  199,387
  211,847
Retained Cash Flow (-), $m
  -5,454
  -7,302
  -9,461
  -11,953
  -14,757
  -17,840
  -21,158
  -24,663
  -28,302
  -32,027
  -35,791
  -39,553
  -43,281
  -46,950
  -50,545
  -54,057
  -57,486
  -60,836
  -64,119
  -67,348
  -70,541
  -73,718
  -76,900
  -80,108
  -83,365
  -86,693
  -90,113
  -93,647
  -97,315
  -101,137
Prev. year cash balance distribution, $m
  901
  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
  3,583
  3,557
  4,584
  5,769
  7,102
  8,568
  10,146
  11,813
  13,544
  15,315
  17,020
  18,809
  20,581
  22,326
  24,036
  25,706
  27,337
  28,930
  33,199
  38,606
  44,364
  50,460
  56,887
  63,634
  70,698
  78,073
  85,759
  93,758
  102,073
  110,710
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
  3,435
  3,257
  3,989
  4,750
  5,505
  6,218
  6,855
  7,383
  7,780
  8,029
  8,082
  8,026
  7,825
  7,495
  7,057
  6,532
  5,948
  5,328
  5,112
  4,906
  4,589
  4,187
  3,728
  3,241
  2,750
  2,278
  1,841
  1,451
  1,114
  834
Current shareholders' claim on cash, %
  78.1
  63.3
  52.8
  45.3
  39.6
  35.3
  32.0
  29.4
  27.4
  25.9
  24.6
  23.7
  22.9
  22.4
  22.0
  21.7
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6
  21.6

Ctrip.com International, Ltd. (Ctrip) is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers' reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours and private tours or packaged tours with different transportation arrangements, such as cruise, bus or self-driving.

FINANCIAL RATIOS  of  Ctrip.com International, Ltd. (CTRP)

Valuation Ratios
P/E Ratio -10.4
Price to Sales 0.8
Price to Book 0.2
Price to Tangible Book
Price to Cash Flow 2.8
Price to Free Cash Flow 3.2
Growth Rates
Sales Growth Rate 76.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 5.3%
Cap. Spend. - 3 Yr. Gr. Rate 1.2%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 48.4%
Total Debt to Equity 58.1%
Interest Coverage -2
Management Effectiveness
Return On Assets -0.5%
Ret/ On Assets - 3 Yr. Avg. 1.3%
Return On Total Capital -1.5%
Ret/ On T. Cap. - 3 Yr. Avg. 1.7%
Return On Equity -2.5%
Return On Equity - 3 Yr. Avg. 3.2%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 75.4%
Gross Margin - 3 Yr. Avg. 73%
EBITDA Margin -2.3%
EBITDA Margin - 3 Yr. Avg. 11.7%
Operating Margin -8.4%
Oper. Margin - 3 Yr. Avg. -2.5%
Pre-Tax Margin -9.2%
Pre-Tax Margin - 3 Yr. Avg. 6.8%
Net Profit Margin -7.4%
Net Profit Margin - 3 Yr. Avg. 6.3%
Effective Tax Rate -27.1%
Eff/ Tax Rate - 3 Yr. Avg. 27.9%
Payout Ratio 0%

CTRP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CTRP stock intrinsic value calculation we used $4048 million for the last fiscal year's total revenue generated by Ctrip.com International, Ltd.. The default revenue input number comes from 0001 income statement of Ctrip.com International, Ltd.. 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 CTRP stock valuation model: a) initial revenue growth rate of 46.2% 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 4.3%, whose default value for CTRP is calculated based on our internal credit rating of Ctrip.com International, Ltd., 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 Ctrip.com International, Ltd..
    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 CTRP stock the variable cost ratio is equal to 47.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1710 million in the base year in the intrinsic value calculation for CTRP 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 Ctrip.com International, Ltd..

Corporate tax rate of 27% is the nominal tax rate for Ctrip.com International, Ltd.. 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 CTRP 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 CTRP are equal to 148.1%.

Life of production assets of 150.8 years is the average useful life of capital assets used in Ctrip.com International, Ltd. 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 CTRP is equal to -55%. 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 - $12801.3623869 million for Ctrip.com International, Ltd. - 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 540.917 million for Ctrip.com International, Ltd. 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 Ctrip.com International, Ltd. at the current share price and the inputted number of shares is $18.1 billion.

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