Intrinsic value of Discovery Series A - DISCA

Previous Close

$26.95

  Intrinsic Value

$37.31

stock screener

  Rating & Target

buy

+38%

Previous close

$26.95

 
Intrinsic value

$37.31

 
Up/down potential

+38%

 
Rating

buy

We calculate the intrinsic value of DISCA 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 10.3

 

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, %
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
Revenue, $m
  7,272
  7,688
  8,122
  8,575
  9,049
  9,544
  10,062
  10,604
  11,170
  11,763
  12,384
  13,035
  13,716
  14,430
  15,177
  15,961
  16,783
  17,645
  18,548
  19,495
  20,489
  21,532
  22,625
  23,772
  24,976
  26,239
  27,565
  28,956
  30,416
  31,948
Variable operating expenses, $m
  4,973
  5,192
  5,420
  5,659
  5,908
  6,168
  6,441
  6,726
  7,024
  7,336
  6,516
  6,859
  7,217
  7,592
  7,986
  8,398
  8,831
  9,284
  9,759
  10,258
  10,781
  11,329
  11,905
  12,508
  13,142
  13,806
  14,504
  15,236
  16,004
  16,810
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
  4,973
  5,192
  5,420
  5,659
  5,908
  6,168
  6,441
  6,726
  7,024
  7,336
  6,516
  6,859
  7,217
  7,592
  7,986
  8,398
  8,831
  9,284
  9,759
  10,258
  10,781
  11,329
  11,905
  12,508
  13,142
  13,806
  14,504
  15,236
  16,004
  16,810
Operating income, $m
  2,299
  2,496
  2,702
  2,917
  3,141
  3,376
  3,621
  3,878
  4,146
  4,427
  5,868
  6,176
  6,499
  6,837
  7,191
  7,563
  7,952
  8,360
  8,789
  9,237
  9,708
  10,202
  10,720
  11,264
  11,834
  12,433
  13,061
  13,720
  14,412
  15,138
EBITDA, $m
  4,741
  5,013
  5,296
  5,591
  5,900
  6,223
  6,561
  6,914
  7,283
  7,670
  8,075
  8,499
  8,943
  9,408
  9,896
  10,407
  10,943
  11,505
  12,094
  12,712
  13,360
  14,039
  14,752
  15,500
  16,285
  17,109
  17,973
  18,880
  19,832
  20,831
Interest expense (income), $m
  343
  797
  708
  759
  811
  866
  923
  983
  1,046
  1,111
  1,180
  1,252
  1,327
  1,405
  1,488
  1,574
  1,664
  1,759
  1,858
  1,963
  2,072
  2,186
  2,306
  2,432
  2,565
  2,703
  2,849
  3,002
  3,162
  3,330
  3,507
Earnings before tax, $m
  1,502
  1,788
  1,943
  2,105
  2,275
  2,452
  2,638
  2,832
  3,035
  3,247
  4,617
  4,850
  5,094
  5,350
  5,618
  5,899
  6,193
  6,502
  6,826
  7,166
  7,522
  7,896
  8,288
  8,699
  9,131
  9,584
  10,059
  10,558
  11,082
  11,631
Tax expense, $m
  406
  483
  525
  568
  614
  662
  712
  765
  819
  877
  1,246
  1,309
  1,375
  1,444
  1,517
  1,593
  1,672
  1,756
  1,843
  1,935
  2,031
  2,132
  2,238
  2,349
  2,465
  2,588
  2,716
  2,851
  2,992
  3,140
Net income, $m
  1,097
  1,305
  1,418
  1,537
  1,661
  1,790
  1,926
  2,067
  2,215
  2,371
  3,370
  3,540
  3,718
  3,905
  4,101
  4,306
  4,521
  4,747
  4,983
  5,231
  5,491
  5,764
  6,050
  6,351
  6,666
  6,996
  7,343
  7,708
  8,090
  8,491

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
  18,089
  19,123
  20,203
  21,331
  22,510
  23,742
  25,030
  26,377
  27,787
  29,262
  30,807
  32,425
  34,119
  35,894
  37,755
  39,705
  41,749
  43,892
  46,139
  48,496
  50,968
  53,561
  56,281
  59,135
  62,130
  65,272
  68,569
  72,030
  75,661
  79,473
Adjusted assets (=assets-cash), $m
  18,089
  19,123
  20,203
  21,331
  22,510
  23,742
  25,030
  26,377
  27,787
  29,262
  30,807
  32,425
  34,119
  35,894
  37,755
  39,705
  41,749
  43,892
  46,139
  48,496
  50,968
  53,561
  56,281
  59,135
  62,130
  65,272
  68,569
  72,030
  75,661
  79,473
Revenue / Adjusted assets
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
Average production assets, $m
  12,958
  13,699
  14,473
  15,281
  16,125
  17,008
  17,930
  18,896
  19,905
  20,962
  22,069
  23,228
  24,442
  25,713
  27,046
  28,443
  29,907
  31,443
  33,053
  34,741
  36,512
  38,369
  40,318
  42,362
  44,508
  46,759
  49,121
  51,600
  54,201
  56,932
Working capital, $m
  -291
  -308
  -325
  -343
  -362
  -382
  -402
  -424
  -447
  -471
  -495
  -521
  -549
  -577
  -607
  -638
  -671
  -706
  -742
  -780
  -820
  -861
  -905
  -951
  -999
  -1,050
  -1,103
  -1,158
  -1,217
  -1,278
Total debt, $m
  13,120
  14,051
  15,023
  16,038
  17,099
  18,208
  19,367
  20,579
  21,848
  23,176
  24,566
  26,022
  27,547
  29,145
  30,819
  32,574
  34,414
  36,343
  38,365
  40,487
  42,711
  45,045
  47,493
  50,062
  52,757
  55,585
  58,552
  61,667
  64,935
  68,366
Total liabilities, $m
  16,280
  17,211
  18,183
  19,198
  20,259
  21,368
  22,527
  23,739
  25,008
  26,336
  27,726
  29,182
  30,707
  32,305
  33,979
  35,734
  37,574
  39,503
  41,525
  43,647
  45,871
  48,205
  50,653
  53,222
  55,917
  58,745
  61,712
  64,827
  68,095
  71,526
Total equity, $m
  1,809
  1,912
  2,020
  2,133
  2,251
  2,374
  2,503
  2,638
  2,779
  2,926
  3,081
  3,242
  3,412
  3,589
  3,775
  3,970
  4,175
  4,389
  4,614
  4,850
  5,097
  5,356
  5,628
  5,914
  6,213
  6,527
  6,857
  7,203
  7,566
  7,947
Total liabilities and equity, $m
  18,089
  19,123
  20,203
  21,331
  22,510
  23,742
  25,030
  26,377
  27,787
  29,262
  30,807
  32,424
  34,119
  35,894
  37,754
  39,704
  41,749
  43,892
  46,139
  48,497
  50,968
  53,561
  56,281
  59,136
  62,130
  65,272
  68,569
  72,030
  75,661
  79,473
Debt-to-equity ratio
  7.250
  7.350
  7.440
  7.520
  7.600
  7.670
  7.740
  7.800
  7.860
  7.920
  7.970
  8.030
  8.070
  8.120
  8.160
  8.200
  8.240
  8.280
  8.320
  8.350
  8.380
  8.410
  8.440
  8.470
  8.490
  8.520
  8.540
  8.560
  8.580
  8.600
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,097
  1,305
  1,418
  1,537
  1,661
  1,790
  1,926
  2,067
  2,215
  2,371
  3,370
  3,540
  3,718
  3,905
  4,101
  4,306
  4,521
  4,747
  4,983
  5,231
  5,491
  5,764
  6,050
  6,351
  6,666
  6,996
  7,343
  7,708
  8,090
  8,491
Depreciation, amort., depletion, $m
  2,442
  2,517
  2,594
  2,675
  2,759
  2,847
  2,940
  3,036
  3,137
  3,243
  2,207
  2,323
  2,444
  2,571
  2,705
  2,844
  2,991
  3,144
  3,305
  3,474
  3,651
  3,837
  4,032
  4,236
  4,451
  4,676
  4,912
  5,160
  5,420
  5,693
Funds from operations, $m
  3,539
  3,821
  4,012
  4,212
  4,420
  4,638
  4,865
  5,103
  5,353
  5,613
  5,577
  5,863
  6,163
  6,477
  6,806
  7,150
  7,512
  7,891
  8,288
  8,705
  9,142
  9,601
  10,082
  10,587
  11,116
  11,672
  12,255
  12,867
  13,510
  14,184
Change in working capital, $m
  -16
  -17
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -29
  -30
  -31
  -33
  -34
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -51
  -53
  -56
  -58
  -61
Cash from operations, $m
  3,555
  3,838
  4,030
  4,230
  4,439
  4,657
  4,886
  5,125
  5,375
  5,637
  5,602
  5,889
  6,190
  6,505
  6,835
  7,182
  7,545
  7,925
  8,324
  8,743
  9,182
  9,643
  10,126
  10,633
  11,165
  11,723
  12,308
  12,923
  13,568
  14,245
Maintenance CAPEX, $m
  -1,225
  -1,296
  -1,370
  -1,447
  -1,528
  -1,613
  -1,701
  -1,793
  -1,890
  -1,991
  -2,096
  -2,207
  -2,323
  -2,444
  -2,571
  -2,705
  -2,844
  -2,991
  -3,144
  -3,305
  -3,474
  -3,651
  -3,837
  -4,032
  -4,236
  -4,451
  -4,676
  -4,912
  -5,160
  -5,420
New CAPEX, $m
  -710
  -741
  -774
  -808
  -844
  -882
  -923
  -965
  -1,010
  -1,057
  -1,107
  -1,159
  -1,214
  -1,272
  -1,333
  -1,397
  -1,464
  -1,535
  -1,610
  -1,688
  -1,771
  -1,858
  -1,949
  -2,044
  -2,145
  -2,251
  -2,362
  -2,479
  -2,602
  -2,730
Cash from investing activities, $m
  -1,935
  -2,037
  -2,144
  -2,255
  -2,372
  -2,495
  -2,624
  -2,758
  -2,900
  -3,048
  -3,203
  -3,366
  -3,537
  -3,716
  -3,904
  -4,102
  -4,308
  -4,526
  -4,754
  -4,993
  -5,245
  -5,509
  -5,786
  -6,076
  -6,381
  -6,702
  -7,038
  -7,391
  -7,762
  -8,150
Free cash flow, $m
  1,620
  1,801
  1,886
  1,974
  2,066
  2,162
  2,262
  2,367
  2,476
  2,590
  2,399
  2,523
  2,653
  2,789
  2,931
  3,080
  3,236
  3,399
  3,570
  3,749
  3,937
  4,134
  4,340
  4,556
  4,783
  5,021
  5,271
  5,532
  5,807
  6,095
Issuance/(repayment) of debt, $m
  -1,635
  931
  972
  1,015
  1,061
  1,109
  1,159
  1,213
  1,269
  1,328
  1,390
  1,456
  1,525
  1,598
  1,674
  1,755
  1,840
  1,929
  2,023
  2,121
  2,225
  2,334
  2,448
  2,569
  2,695
  2,828
  2,968
  3,114
  3,268
  3,430
Issuance/(repurchase) of shares, $m
  1,510
  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  
  -125
  931
  972
  1,015
  1,061
  1,109
  1,159
  1,213
  1,269
  1,328
  1,390
  1,456
  1,525
  1,598
  1,674
  1,755
  1,840
  1,929
  2,023
  2,121
  2,225
  2,334
  2,448
  2,569
  2,695
  2,828
  2,968
  3,114
  3,268
  3,430
Total cash flow (excl. dividends), $m
  1,495
  2,732
  2,858
  2,990
  3,127
  3,271
  3,422
  3,579
  3,745
  3,918
  3,789
  3,979
  4,178
  4,387
  4,606
  4,835
  5,076
  5,328
  5,593
  5,871
  6,162
  6,468
  6,788
  7,125
  7,478
  7,849
  8,238
  8,647
  9,075
  9,525
Retained Cash Flow (-), $m
  -2,607
  -103
  -108
  -113
  -118
  -123
  -129
  -135
  -141
  -148
  -154
  -162
  -169
  -178
  -186
  -195
  -204
  -214
  -225
  -236
  -247
  -259
  -272
  -285
  -299
  -314
  -330
  -346
  -363
  -381
Prev. year cash balance distribution, $m
  5,408
  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
  41
  44
  46
  49
  51
  54
  57
  60
  64
  67
  71
  74
  78
  82
  87
  91
  96
  101
  106
  111
  117
  123
  129
  136
  143
  150
  157
  165
  174
  182
Cash available for distribution, $m
  4,296
  2,629
  2,750
  2,877
  3,009
  3,148
  3,293
  3,445
  3,604
  3,770
  3,635
  3,817
  4,009
  4,209
  4,420
  4,640
  4,871
  5,114
  5,368
  5,635
  5,915
  6,208
  6,516
  6,840
  7,179
  7,535
  7,908
  8,300
  8,712
  9,144
Discount rate, %
  6.60
  6.93
  7.28
  7.64
  8.02
  8.42
  8.84
  9.29
  9.75
  10.24
  10.75
  11.29
  11.85
  12.45
  13.07
  13.72
  14.41
  15.13
  15.88
  16.68
  17.51
  18.39
  19.31
  20.27
  21.29
  22.35
  23.47
  24.64
  25.87
  27.17
PV of cash for distribution, $m
  4,030
  2,299
  2,228
  2,143
  2,046
  1,938
  1,819
  1,693
  1,560
  1,422
  1,182
  1,058
  935
  815
  700
  593
  494
  405
  326
  258
  200
  151
  112
  81
  58
  40
  27
  17
  11
  7
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Discovery Communications, Inc. (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments include U.S. Networks, which consists principally of domestic television networks and digital content services; International Networks, consisting primarily of international television networks and digital content services, and Education and Other, which consists principally of curriculum-based product and service offerings, and production studios. The Company's portfolio of networks includes television brands, such as Discovery Channel, Animal Planet, ID, Velocity (known as Turbo outside of the United States) and Eurosport. It is also engaged in extending content distribution across various platforms, including brand-aligned Websites, Web-native networks and online streaming.

FINANCIAL RATIOS  of  Discovery Series A (DISCA)

Valuation Ratios
P/E Ratio 8.8
Price to Sales 1.6
Price to Book 2
Price to Tangible Book
Price to Cash Flow 7.7
Price to Free Cash Flow 8.2
Growth Rates
Sales Growth Rate 1.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -14.6%
Cap. Spend. - 3 Yr. Gr. Rate -5.2%
Financial Strength
Quick Ratio 4
Current Ratio 0.2
LT Debt to Equity 151.8%
Total Debt to Equity 153.3%
Interest Coverage 6
Management Effectiveness
Return On Assets 9.2%
Ret/ On Assets - 3 Yr. Avg. 8.6%
Return On Total Capital 9.1%
Ret/ On T. Cap. - 3 Yr. Avg. 8.7%
Return On Equity 22.5%
Return On Equity - 3 Yr. Avg. 20.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 62.6%
Gross Margin - 3 Yr. Avg. 64%
EBITDA Margin 63.2%
EBITDA Margin - 3 Yr. Avg. 62.5%
Operating Margin 30.7%
Oper. Margin - 3 Yr. Avg. 31.6%
Pre-Tax Margin 25.7%
Pre-Tax Margin - 3 Yr. Avg. 26%
Net Profit Margin 18.4%
Net Profit Margin - 3 Yr. Avg. 17.6%
Effective Tax Rate 27.1%
Eff/ Tax Rate - 3 Yr. Avg. 31.6%
Payout Ratio 0%

DISCA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DISCA stock intrinsic value calculation we used $6873 million for the last fiscal year's total revenue generated by Discovery Series A. The default revenue input number comes from 2017 income statement of Discovery Series A. 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 DISCA stock valuation model: a) initial revenue growth rate of 5.8% 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 6.6%, whose default value for DISCA is calculated based on our internal credit rating of Discovery Series A, 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 Discovery Series A.
    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 DISCA stock the variable cost ratio is equal to 69.3%.

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 DISCA 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 Discovery Series A.

Corporate tax rate of 27% is the nominal tax rate for Discovery Series A. 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 DISCA 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 DISCA are equal to 178.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Discovery Series A 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 DISCA is equal to -4%. 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 - $4610 million for Discovery Series A - 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 384 million for Discovery Series A 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 Discovery Series A at the current share price and the inputted number of shares is $10.3 billion.

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AMCX AMC Networks C 60.45 62.27  buy

COMPANY NEWS

▶ [$$] Disney Says Bye-Bye to Buybacks for Now   [Aug-10-18 08:00PM  Barrons.com]
▶ Company News For Aug 8, 2018   [Aug-08-18 10:45AM  Zacks]
▶ Discovery: 2Q Earnings Snapshot   [10:13AM  Associated Press]
▶ Discovery: 2Q Earnings Snapshot   [07:28AM  Associated Press]
▶ Discovery may launch its own streaming service, too   [Jul-27-18 11:34AM  TechCrunch]
▶ Discovery moving some operations to Virginia from Tennessee   [Jul-25-18 08:28AM  American City Business Journals]
▶ Exclusive: Discovery down to two bidders for Silver Spring headquarters   [Jul-20-18 02:56PM  American City Business Journals]
▶ Options Traders: Watch These Stocks   [Jul-19-18 01:48PM  CNBC Videos]
▶ Discovery extends CEO David Zaslav's contract   [08:06AM  American City Business Journals]
▶ Why Discovery, Inc. Stock Gained 30.4% in June   [Jul-11-18 01:31PM  Motley Fool]
▶ Philo adds $40 million for live-TV skinny bundle   [Jul-10-18 02:43PM  American City Business Journals]
▶ [$$] What brands can learn from religion   [Jul-09-18 12:00AM  Financial Times]
▶ Who will buy Fox's 22 regional sports networks?   [Jun-29-18 09:29AM  Yahoo Finance]
▶ Discovery Inc. Bets Big on Golf   [Jun-22-18 11:07AM  Motley Fool]
▶ Media Stocks, Techs Boost S&P; Nasdaq Hits Record High   [Jun-20-18 02:28PM  Investopedia]
▶ Dow closes lower for fourth day in a row   [04:20PM  CNBC Videos]
▶ Discovery selects Park Avenue address for new global HQ   [Jun-14-18 01:27PM  American City Business Journals]
▶ Discovery to expand its Sterling hub, add 240 jobs   [12:04PM  American City Business Journals]
▶ Comcast Launches Bid For Fox, Can All-Out War With Disney Be Avoided?   [Jun-13-18 04:58PM  Investor's Business Daily]
▶ [$$] Jaguar Land Rover to shed jobs, move work to Slovakia   [Jun-10-18 10:21PM  Financial Times]
▶ [$$] Discovery/PGA Tour: green machine   [08:41AM  Financial Times]
▶ Bechtel already has a huge presence here. So why does its HQ move matter?   [Jun-08-18 02:09PM  American City Business Journals]
▶ Fixer Upper stars fined by the EPA over lead paint problems   [Jun-07-18 02:02PM  Yahoo Finance Video]
▶ Philo adds Tastemade, PeopleTV, Cheddar to skinny bundle   [May-31-18 01:15PM  American City Business Journals]
▶ Baltimore-area companies fall short of Fortune 500 list   [May-29-18 02:11PM  American City Business Journals]
▶ Broadcom's Tan, CBS's Moonves among highest-paid CEOs   [May-26-18 10:01AM  Associated Press]
▶ Univision Is Planning to Name Vincent Sadusky as CEO   [May-22-18 05:04PM  Bloomberg]
▶ Discovery: 1Q Earnings Snapshot   [10:21AM  Associated Press]
▶ Discovery: 1Q Earnings Snapshot   [07:26AM  Associated Press]
▶ Why Discovery Communications Stock Gained 10% in April   [May-07-18 10:56AM  Motley Fool]
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