Intrinsic value of NTT DoCoMo ADR - DCM

Previous Close

$25.34

  Intrinsic Value

$11.62

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  Rating & Target

str. sell

-54%

Previous close

$25.34

 
Intrinsic value

$11.62

 
Up/down potential

-54%

 
Rating

str. sell

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

We calculate the intrinsic value of DCM 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of NTT DoCoMo ADR (DCM) stock.

STOCK VALUATION INPUT DATA

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

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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, %
  1.27
  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
  39,911
  40,709
  41,646
  42,716
  43,917
  45,249
  46,710
  48,301
  50,022
  51,878
  53,869
  55,998
  58,271
  60,691
  63,263
  65,992
  68,884
  71,945
  75,182
  78,603
  82,214
  86,025
  90,044
  94,280
  98,744
  103,445
  108,394
  113,604
  119,086
  124,853
  130,919
Variable operating expenses, $m
 
  33,663
  34,432
  35,312
  36,300
  37,394
  38,595
  39,902
  41,318
  42,842
  44,479
  46,029
  47,897
  49,886
  52,000
  54,243
  56,620
  59,136
  61,797
  64,609
  67,577
  70,710
  74,013
  77,495
  81,164
  85,028
  89,096
  93,378
  97,884
  102,624
  107,611
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
  31,686
  33,663
  34,432
  35,312
  36,300
  37,394
  38,595
  39,902
  41,318
  42,842
  44,479
  46,029
  47,897
  49,886
  52,000
  54,243
  56,620
  59,136
  61,797
  64,609
  67,577
  70,710
  74,013
  77,495
  81,164
  85,028
  89,096
  93,378
  97,884
  102,624
  107,611
Operating income, $m
  8,224
  7,047
  7,213
  7,404
  7,618
  7,855
  8,115
  8,398
  8,705
  9,035
  9,390
  9,970
  10,375
  10,805
  11,263
  11,749
  12,264
  12,809
  13,385
  13,994
  14,637
  15,316
  16,031
  16,786
  17,580
  18,417
  19,298
  20,226
  21,202
  22,229
  23,309
EBITDA, $m
  12,162
  10,972
  11,225
  11,513
  11,837
  12,196
  12,589
  13,018
  13,482
  13,982
  14,519
  15,093
  15,706
  16,358
  17,051
  17,786
  18,566
  19,391
  20,264
  21,185
  22,159
  23,186
  24,269
  25,411
  26,614
  27,881
  29,215
  30,619
  32,097
  33,651
  35,286
Interest expense (income), $m
  0
  49
  61
  74
  89
  106
  125
  146
  168
  193
  219
  248
  278
  310
  345
  381
  420
  461
  505
  551
  599
  651
  705
  762
  822
  886
  952
  1,023
  1,097
  1,175
  1,257
Earnings before tax, $m
  8,266
  6,998
  7,153
  7,330
  7,529
  7,749
  7,990
  8,252
  8,536
  8,842
  9,170
  9,722
  10,097
  10,495
  10,919
  11,368
  11,844
  12,348
  12,881
  13,444
  14,038
  14,665
  15,327
  16,024
  16,758
  17,532
  18,346
  19,203
  20,105
  21,054
  22,052
Tax expense, $m
  2,504
  1,889
  1,931
  1,979
  2,033
  2,092
  2,157
  2,228
  2,305
  2,387
  2,476
  2,625
  2,726
  2,834
  2,948
  3,069
  3,198
  3,334
  3,478
  3,630
  3,790
  3,960
  4,138
  4,326
  4,525
  4,734
  4,953
  5,185
  5,428
  5,685
  5,954
Net income, $m
  5,681
  5,108
  5,222
  5,351
  5,496
  5,657
  5,833
  6,024
  6,232
  6,455
  6,694
  7,097
  7,371
  7,661
  7,971
  8,299
  8,646
  9,014
  9,403
  9,814
  10,248
  10,706
  11,188
  11,697
  12,233
  12,798
  13,393
  14,018
  14,677
  15,369
  16,098

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,512
  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
  64,883
  62,630
  64,070
  65,717
  67,565
  69,614
  71,861
  74,308
  76,958
  79,812
  82,875
  86,152
  89,648
  93,371
  97,327
  101,526
  105,975
  110,685
  115,665
  120,928
  126,484
  132,347
  138,530
  145,047
  151,913
  159,146
  166,760
  174,775
  183,209
  192,082
  201,414
Adjusted assets (=assets-cash), $m
  61,371
  62,630
  64,070
  65,717
  67,565
  69,614
  71,861
  74,308
  76,958
  79,812
  82,875
  86,152
  89,648
  93,371
  97,327
  101,526
  105,975
  110,685
  115,665
  120,928
  126,484
  132,347
  138,530
  145,047
  151,913
  159,146
  166,760
  174,775
  183,209
  192,082
  201,414
Revenue / Adjusted assets
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
  0.650
Average production assets, $m
  27,010
  27,560
  28,194
  28,919
  29,732
  30,633
  31,622
  32,699
  33,865
  35,121
  36,469
  37,911
  39,450
  41,088
  42,829
  44,676
  46,634
  48,707
  50,898
  53,214
  55,659
  58,239
  60,960
  63,828
  66,850
  70,032
  73,383
  76,910
  80,621
  84,526
  88,632
Working capital, $m
  13,591
  10,829
  11,078
  11,362
  11,682
  12,036
  12,425
  12,848
  13,306
  13,799
  14,329
  14,896
  15,500
  16,144
  16,828
  17,554
  18,323
  19,137
  19,998
  20,908
  21,869
  22,883
  23,952
  25,079
  26,266
  27,516
  28,833
  30,219
  31,677
  33,211
  34,825
Total debt, $m
  1,932
  1,730
  2,110
  2,545
  3,033
  3,574
  4,167
  4,813
  5,513
  6,266
  7,075
  7,940
  8,863
  9,846
  10,890
  11,999
  13,173
  14,417
  15,732
  17,121
  18,588
  20,136
  21,768
  23,488
  25,301
  27,210
  29,221
  31,337
  33,563
  35,906
  38,369
Total liabilities, $m
  16,736
  16,534
  16,914
  17,349
  17,837
  18,378
  18,971
  19,617
  20,317
  21,070
  21,879
  22,744
  23,667
  24,650
  25,694
  26,803
  27,977
  29,221
  30,536
  31,925
  33,392
  34,940
  36,572
  38,292
  40,105
  42,014
  44,025
  46,141
  48,367
  50,710
  53,173
Total equity, $m
  48,147
  46,095
  47,156
  48,367
  49,728
  51,236
  52,890
  54,691
  56,641
  58,741
  60,996
  63,408
  65,981
  68,721
  71,633
  74,723
  77,998
  81,464
  85,130
  89,003
  93,092
  97,407
  101,958
  106,754
  111,808
  117,131
  122,735
  128,634
  134,842
  141,372
  148,241
Total liabilities and equity, $m
  64,883
  62,629
  64,070
  65,716
  67,565
  69,614
  71,861
  74,308
  76,958
  79,811
  82,875
  86,152
  89,648
  93,371
  97,327
  101,526
  105,975
  110,685
  115,666
  120,928
  126,484
  132,347
  138,530
  145,046
  151,913
  159,145
  166,760
  174,775
  183,209
  192,082
  201,414
Debt-to-equity ratio
  0.040
  0.040
  0.040
  0.050
  0.060
  0.070
  0.080
  0.090
  0.100
  0.110
  0.120
  0.130
  0.130
  0.140
  0.150
  0.160
  0.170
  0.180
  0.180
  0.190
  0.200
  0.210
  0.210
  0.220
  0.230
  0.230
  0.240
  0.240
  0.250
  0.250
  0.260
Adjusted equity ratio
  0.728
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736
  0.736

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  5,681
  5,108
  5,222
  5,351
  5,496
  5,657
  5,833
  6,024
  6,232
  6,455
  6,694
  7,097
  7,371
  7,661
  7,971
  8,299
  8,646
  9,014
  9,403
  9,814
  10,248
  10,706
  11,188
  11,697
  12,233
  12,798
  13,393
  14,018
  14,677
  15,369
  16,098
Depreciation, amort., depletion, $m
  3,938
  3,925
  4,011
  4,109
  4,219
  4,341
  4,474
  4,620
  4,777
  4,947
  5,129
  5,123
  5,331
  5,552
  5,788
  6,037
  6,302
  6,582
  6,878
  7,191
  7,522
  7,870
  8,238
  8,625
  9,034
  9,464
  9,917
  10,393
  10,895
  11,422
  11,977
Funds from operations, $m
  11,388
  9,034
  9,233
  9,460
  9,715
  9,997
  10,307
  10,644
  11,009
  11,402
  11,824
  12,220
  12,702
  13,214
  13,758
  14,336
  14,948
  15,596
  16,281
  17,005
  17,769
  18,576
  19,426
  20,323
  21,267
  22,262
  23,309
  24,411
  25,571
  26,792
  28,075
Change in working capital, $m
  -37
  212
  249
  285
  320
  354
  389
  423
  458
  493
  530
  567
  605
  644
  684
  726
  769
  814
  861
  910
  961
  1,014
  1,069
  1,127
  1,187
  1,250
  1,317
  1,386
  1,458
  1,534
  1,614
Cash from operations, $m
  11,425
  8,822
  8,984
  9,175
  9,395
  9,643
  9,918
  10,221
  10,551
  10,909
  11,294
  11,654
  12,097
  12,570
  13,074
  13,610
  14,179
  14,782
  15,420
  16,095
  16,809
  17,562
  18,357
  19,196
  20,080
  21,011
  21,993
  23,026
  24,113
  25,258
  26,462
Maintenance CAPEX, $m
  0
  -3,650
  -3,724
  -3,810
  -3,908
  -4,018
  -4,140
  -4,273
  -4,419
  -4,576
  -4,746
  -4,928
  -5,123
  -5,331
  -5,552
  -5,788
  -6,037
  -6,302
  -6,582
  -6,878
  -7,191
  -7,522
  -7,870
  -8,238
  -8,625
  -9,034
  -9,464
  -9,917
  -10,393
  -10,895
  -11,422
New CAPEX, $m
  -5,602
  -551
  -634
  -725
  -813
  -901
  -989
  -1,077
  -1,166
  -1,256
  -1,348
  -1,442
  -1,539
  -1,638
  -1,741
  -1,848
  -1,958
  -2,072
  -2,192
  -2,316
  -2,445
  -2,580
  -2,721
  -2,868
  -3,022
  -3,183
  -3,351
  -3,527
  -3,711
  -3,904
  -4,107
Cash from investing activities, $m
  -8,210
  -4,201
  -4,358
  -4,535
  -4,721
  -4,919
  -5,129
  -5,350
  -5,585
  -5,832
  -6,094
  -6,370
  -6,662
  -6,969
  -7,293
  -7,636
  -7,995
  -8,374
  -8,774
  -9,194
  -9,636
  -10,102
  -10,591
  -11,106
  -11,647
  -12,217
  -12,815
  -13,444
  -14,104
  -14,799
  -15,529
Free cash flow, $m
  3,215
  4,621
  4,625
  4,641
  4,674
  4,724
  4,790
  4,871
  4,966
  5,076
  5,200
  5,284
  5,435
  5,601
  5,781
  5,975
  6,184
  6,407
  6,646
  6,901
  7,173
  7,461
  7,766
  8,090
  8,433
  8,795
  9,178
  9,582
  10,009
  10,458
  10,932
Issuance/(repayment) of debt, $m
  -11
  336
  380
  435
  488
  541
  593
  646
  699
  753
  809
  865
  923
  983
  1,045
  1,108
  1,175
  1,243
  1,315
  1,389
  1,467
  1,548
  1,632
  1,721
  1,813
  1,909
  2,010
  2,116
  2,227
  2,342
  2,464
Issuance/(repurchase) of shares, $m
  -1,302
  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  
  -1,328
  336
  380
  435
  488
  541
  593
  646
  699
  753
  809
  865
  923
  983
  1,045
  1,108
  1,175
  1,243
  1,315
  1,389
  1,467
  1,548
  1,632
  1,721
  1,813
  1,909
  2,010
  2,116
  2,227
  2,342
  2,464
Total cash flow (excl. dividends), $m
  1,878
  4,957
  5,006
  5,075
  5,162
  5,265
  5,383
  5,517
  5,666
  5,830
  6,009
  6,149
  6,358
  6,584
  6,825
  7,083
  7,358
  7,651
  7,961
  8,291
  8,639
  9,008
  9,399
  9,811
  10,246
  10,704
  11,188
  11,698
  12,235
  12,801
  13,396
Retained Cash Flow (-), $m
  -1,988
  -922
  -1,060
  -1,212
  -1,361
  -1,508
  -1,654
  -1,801
  -1,950
  -2,101
  -2,254
  -2,412
  -2,573
  -2,740
  -2,912
  -3,090
  -3,275
  -3,466
  -3,666
  -3,873
  -4,089
  -4,315
  -4,551
  -4,797
  -5,054
  -5,323
  -5,604
  -5,899
  -6,207
  -6,530
  -6,869
Prev. year cash balance distribution, $m
 
  2,974
  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
 
  7,009
  3,945
  3,864
  3,801
  3,757
  3,729
  3,716
  3,716
  3,729
  3,754
  3,737
  3,785
  3,844
  3,913
  3,993
  4,084
  4,184
  4,296
  4,417
  4,550
  4,693
  4,848
  5,014
  5,192
  5,382
  5,584
  5,799
  6,028
  6,270
  6,527
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
 
  6,720
  3,612
  3,362
  3,130
  2,912
  2,706
  2,510
  2,323
  2,142
  1,968
  1,775
  1,615
  1,461
  1,314
  1,172
  1,038
  910
  791
  680
  578
  485
  402
  329
  264
  209
  163
  124
  93
  68
  49
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

NTT DOCOMO, INC. (DOCOMO) is a mobile telecommunications carrier. The Company operates through three segments: telecommunications business, smart life business and other businesses. The telecommunications business segment includes mobile phone services (long-term evolution (LTE) (Xi) services and freedom of mobile multimedia access (FOMA) services), optical-fiber broadband service, satellite mobile communications services, international services and equipment sales related to these services. The smart life business segment includes video and music distribution, electronic books and other services offered through its dmarket portal, as well as finance/payment services, shopping services and various other services to support the Company's customers' daily lives. Its other businesses segment primarily includes Mobile Device Protection Service, as well as the development, sale and maintenance of information technology (IT) systems.

FINANCIAL RATIOS  of  NTT DoCoMo ADR (DCM)

Valuation Ratios
P/E Ratio 16.5
Price to Sales 2.4
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 8.2
Price to Free Cash Flow 16.1
Growth Rates
Sales Growth Rate 1.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.8%
Cap. Spend. - 3 Yr. Gr. Rate -2%
Financial Strength
Quick Ratio 7
Current Ratio 1
LT Debt to Equity 2.9%
Total Debt to Equity 4%
Interest Coverage 0
Management Effectiveness
Return On Assets 8.9%
Ret/ On Assets - 3 Yr. Avg. 7.4%
Return On Total Capital 11.6%
Ret/ On T. Cap. - 3 Yr. Avg. 9.5%
Return On Equity 12%
Return On Equity - 3 Yr. Avg. 9.9%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 53.6%
Gross Margin - 3 Yr. Avg. 53.5%
EBITDA Margin 30.6%
EBITDA Margin - 3 Yr. Avg. 30.5%
Operating Margin 20.6%
Oper. Margin - 3 Yr. Avg. 17.5%
Pre-Tax Margin 20.7%
Pre-Tax Margin - 3 Yr. Avg. 17.5%
Net Profit Margin 14.2%
Net Profit Margin - 3 Yr. Avg. 11.9%
Effective Tax Rate 30.3%
Eff/ Tax Rate - 3 Yr. Avg. 31.5%
Payout Ratio 43%

DCM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DCM stock intrinsic value calculation we used $39911 million for the last fiscal year's total revenue generated by NTT DoCoMo ADR. The default revenue input number comes from 2017 income statement of NTT DoCoMo 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 DCM 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 4.3%, whose default value for DCM is calculated based on our internal credit rating of NTT DoCoMo 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 NTT DoCoMo 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 DCM stock the variable cost ratio is equal to 82.7%.

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 DCM 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 3.5% for NTT DoCoMo ADR.

Corporate tax rate of 27% is the nominal tax rate for NTT DoCoMo 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 DCM 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 DCM are equal to 67.7%.

Life of production assets of 7.4 years is the average useful life of capital assets used in NTT DoCoMo 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 DCM is equal to 26.6%. 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 - $48147 million for NTT DoCoMo 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 3874.63 million for NTT DoCoMo 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 NTT DoCoMo ADR at the current share price and the inputted number of shares is $98.2 billion.

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COMPANY NEWS

▶ ETFs with exposure to NTT DoCoMo, Inc. : November 9, 2017   [Nov-09-17 12:32PM  Capital Cube]
▶ NTT Docomo posts 1Q profit   [Jul-28-17 01:32AM  Associated Press]
▶ ETFs with exposure to NTT DoCoMo, Inc. : July 11, 2017   [Jul-11-17 02:25PM  Capital Cube]
▶ SoftBank partners with ZTE on 5G trials   [Jun-13-17 02:58AM  ZDNet]
▶ Why the next billboard is a flying drone   [11:33AM  TechRepublic]
▶ 5 Stocks to Buy as Japan Revises Q4 GDP Upward   [Mar-10-17 09:46AM  Zacks]
▶ DOCOMO Develops eSIM Platform for Consumer Devices   [Feb-23-17 03:00AM  ACN Newswire]
▶ 4 Cheap Stocks Among Recent Economic Moat Changes   [Jan-10-17 06:00AM  Morningstar]
▶ Is NTT Docomo Inc (ADR) (DCM) A Good Stock To Buy?   [Dec-16-16 12:34AM  Insider Monkey]
▶ Is NTT Docomo Inc (ADR) (DCM) A Good Stock To Buy?   [12:34AM  at Insider Monkey]
▶ Is It Time To Buy BP plc (ADR) (BP)?   [Dec-01-16 12:57PM  at Insider Monkey]
▶ Is Kraft Heinz Co (KHC) a Good Stock To Buy?   [Nov-29-16 02:37PM  at Insider Monkey]
▶ New Faces, a Show of Hands and the Evolution of Emoji   [12:26AM  at The Wall Street Journal]
▶ Apple Promotes A Cashless Society In Japan   [Oct-18-16 10:53AM  at Investopedia]
▶ 4 Fintech Firms Emerging in San Francisco (PYPL, BBVA)   [Aug-23-16 12:00PM  at Investopedia]
▶ NTT Docomo posts 1Q profit   [Jul-29-16 05:15AM  AP]
Financial statements of DCM
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