Intrinsic value of Enel Americas S.A. - ENIA

Previous Close

$8.42

  Intrinsic Value

$155.62

stock screener

  Rating & Target

str. buy

+999%

Previous close

$8.42

 
Intrinsic value

$155.62

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of ENIA 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 9.8

 

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, %
  37.10
  33.89
  31.00
  28.40
  26.06
  23.95
  22.06
  20.35
  18.82
  17.44
  16.19
  15.07
  14.07
  13.16
  12.34
  11.61
  10.95
  10.35
  9.82
  9.34
  8.90
  8.51
  8.16
  7.85
  7.56
  7.30
  7.07
  6.87
  6.68
  6.51
Revenue, $m
  14,450
  19,348
  25,345
  32,544
  41,025
  50,852
  62,070
  74,703
  88,761
  104,238
  121,117
  139,373
  158,977
  179,897
  202,103
  225,565
  250,261
  276,171
  303,286
  331,601
  361,122
  391,862
  423,843
  457,093
  491,652
  527,564
  564,884
  603,672
  643,997
  685,934
Variable operating expenses, $m
  9,071
  11,996
  15,578
  19,878
  24,944
  30,813
  37,514
  45,059
  53,456
  62,700
  72,342
  83,246
  94,956
  107,451
  120,715
  134,728
  149,479
  164,955
  181,150
  198,063
  215,696
  234,056
  253,158
  273,018
  293,660
  315,110
  337,401
  360,569
  384,655
  409,703
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
  9,071
  11,996
  15,578
  19,878
  24,944
  30,813
  37,514
  45,059
  53,456
  62,700
  72,342
  83,246
  94,956
  107,451
  120,715
  134,728
  149,479
  164,955
  181,150
  198,063
  215,696
  234,056
  253,158
  273,018
  293,660
  315,110
  337,401
  360,569
  384,655
  409,703
Operating income, $m
  5,380
  7,352
  9,767
  12,666
  16,082
  20,039
  24,557
  29,644
  35,305
  41,538
  48,775
  56,127
  64,021
  72,446
  81,388
  90,837
  100,782
  111,216
  122,135
  133,538
  145,427
  157,806
  170,685
  184,075
  197,992
  212,454
  227,483
  243,104
  259,343
  276,231
EBITDA, $m
  8,458
  11,324
  14,835
  19,048
  24,012
  29,764
  36,330
  43,725
  51,953
  61,011
  70,890
  81,576
  93,050
  105,295
  118,292
  132,025
  146,479
  161,645
  177,515
  194,089
  211,368
  229,360
  248,078
  267,540
  287,767
  308,787
  330,631
  353,334
  376,937
  401,483
Interest expense (income), $m
  387
  935
  1,868
  3,038
  4,471
  6,190
  8,216
  10,564
  13,244
  16,262
  19,620
  23,317
  27,349
  31,710
  36,393
  41,391
  46,695
  52,300
  58,199
  64,389
  70,866
  77,630
  84,682
  92,026
  99,665
  107,608
  115,864
  124,442
  133,358
  142,623
  152,256
Earnings before tax, $m
  4,445
  5,484
  6,729
  8,195
  9,891
  11,823
  13,993
  16,400
  19,044
  21,918
  25,458
  28,778
  32,311
  36,053
  39,998
  44,142
  48,482
  53,017
  57,747
  62,672
  67,797
  73,124
  78,659
  84,410
  90,384
  96,591
  103,041
  109,746
  116,719
  123,975
Tax expense, $m
  1,200
  1,481
  1,817
  2,213
  2,671
  3,192
  3,778
  4,428
  5,142
  5,918
  6,874
  7,770
  8,724
  9,734
  10,799
  11,918
  13,090
  14,315
  15,592
  16,922
  18,305
  19,743
  21,238
  22,791
  24,404
  26,079
  27,821
  29,631
  31,514
  33,473
Net income, $m
  3,245
  4,003
  4,912
  5,983
  7,220
  8,631
  10,215
  11,972
  13,902
  16,000
  18,584
  21,008
  23,587
  26,319
  29,198
  32,223
  35,392
  38,702
  42,155
  45,751
  49,491
  53,380
  57,421
  61,619
  65,980
  70,511
  75,220
  80,115
  85,205
  90,501

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
  27,630
  36,993
  48,462
  62,225
  78,442
  97,232
  118,681
  142,837
  169,715
  199,307
  231,580
  266,487
  303,971
  343,972
  386,430
  431,291
  478,510
  528,052
  579,896
  634,037
  690,482
  749,259
  810,406
  873,983
  940,060
  1,008,727
  1,080,084
  1,154,249
  1,231,352
  1,311,537
Adjusted assets (=assets-cash), $m
  27,630
  36,993
  48,462
  62,225
  78,442
  97,232
  118,681
  142,837
  169,715
  199,307
  231,580
  266,487
  303,971
  343,972
  386,430
  431,291
  478,510
  528,052
  579,896
  634,037
  690,482
  749,259
  810,406
  873,983
  940,060
  1,008,727
  1,080,084
  1,154,249
  1,231,352
  1,311,537
Revenue / Adjusted assets
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
  0.523
Average production assets, $m
  13,193
  17,664
  23,140
  29,713
  37,456
  46,428
  56,670
  68,204
  81,039
  95,169
  110,579
  127,247
  145,146
  164,246
  184,520
  205,941
  228,488
  252,144
  276,900
  302,752
  329,705
  357,770
  386,968
  417,326
  448,878
  481,666
  515,739
  551,153
  587,969
  626,258
Working capital, $m
  -2,023
  -2,709
  -3,548
  -4,556
  -5,744
  -7,119
  -8,690
  -10,458
  -12,427
  -14,593
  -16,956
  -19,512
  -22,257
  -25,186
  -28,294
  -31,579
  -35,036
  -38,664
  -42,460
  -46,424
  -50,557
  -54,861
  -59,338
  -63,993
  -68,831
  -73,859
  -79,084
  -84,514
  -90,160
  -96,031
Total debt, $m
  10,153
  16,511
  24,298
  33,644
  44,654
  57,413
  71,977
  88,379
  106,629
  126,722
  148,636
  172,337
  197,789
  224,950
  253,779
  284,239
  316,301
  349,940
  385,142
  421,903
  460,230
  500,139
  541,658
  584,827
  629,693
  676,318
  724,770
  775,128
  827,481
  881,926
Total liabilities, $m
  18,761
  25,119
  32,906
  42,251
  53,262
  66,021
  80,584
  96,986
  115,237
  135,330
  157,243
  180,945
  206,397
  233,557
  262,386
  292,847
  324,908
  358,547
  393,749
  430,511
  468,837
  508,747
  550,266
  593,434
  638,301
  684,925
  733,377
  783,735
  836,088
  890,534
Total equity, $m
  8,869
  11,875
  15,556
  19,974
  25,180
  31,212
  38,097
  45,851
  54,479
  63,978
  74,337
  85,542
  97,575
  110,415
  124,044
  138,444
  153,602
  169,505
  186,147
  203,526
  221,645
  240,512
  260,140
  280,548
  301,759
  323,801
  346,707
  370,514
  395,264
  421,003
Total liabilities and equity, $m
  27,630
  36,994
  48,462
  62,225
  78,442
  97,233
  118,681
  142,837
  169,716
  199,308
  231,580
  266,487
  303,972
  343,972
  386,430
  431,291
  478,510
  528,052
  579,896
  634,037
  690,482
  749,259
  810,406
  873,982
  940,060
  1,008,726
  1,080,084
  1,154,249
  1,231,352
  1,311,537
Debt-to-equity ratio
  1.140
  1.390
  1.560
  1.680
  1.770
  1.840
  1.890
  1.930
  1.960
  1.980
  2.000
  2.010
  2.030
  2.040
  2.050
  2.050
  2.060
  2.060
  2.070
  2.070
  2.080
  2.080
  2.080
  2.080
  2.090
  2.090
  2.090
  2.090
  2.090
  2.090
Adjusted equity ratio
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321
  0.321

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,245
  4,003
  4,912
  5,983
  7,220
  8,631
  10,215
  11,972
  13,902
  16,000
  18,584
  21,008
  23,587
  26,319
  29,198
  32,223
  35,392
  38,702
  42,155
  45,751
  49,491
  53,380
  57,421
  61,619
  65,980
  70,511
  75,220
  80,115
  85,205
  90,501
Depreciation, amort., depletion, $m
  3,078
  3,972
  5,068
  6,382
  7,931
  9,725
  11,774
  14,080
  16,647
  19,473
  22,116
  25,449
  29,029
  32,849
  36,904
  41,188
  45,698
  50,429
  55,380
  60,550
  65,941
  71,554
  77,394
  83,465
  89,776
  96,333
  103,148
  110,231
  117,594
  125,252
Funds from operations, $m
  6,323
  7,976
  9,980
  12,365
  15,151
  18,356
  21,988
  26,053
  30,549
  35,474
  40,700
  46,457
  52,616
  59,168
  66,102
  73,412
  81,089
  89,131
  97,535
  106,301
  115,432
  124,934
  134,815
  145,084
  155,756
  166,844
  178,367
  190,345
  202,799
  215,753
Change in working capital, $m
  -547
  -686
  -840
  -1,008
  -1,187
  -1,376
  -1,570
  -1,769
  -1,968
  -2,167
  -2,363
  -2,556
  -2,745
  -2,929
  -3,109
  -3,285
  -3,457
  -3,627
  -3,796
  -3,964
  -4,133
  -4,304
  -4,477
  -4,655
  -4,838
  -5,028
  -5,225
  -5,430
  -5,645
  -5,871
Cash from operations, $m
  6,870
  8,661
  10,820
  13,372
  16,339
  19,732
  23,559
  27,821
  32,517
  37,640
  43,063
  49,013
  55,361
  62,097
  69,211
  76,696
  84,547
  92,759
  101,331
  110,265
  119,565
  129,238
  139,292
  149,739
  160,594
  171,872
  183,592
  195,775
  208,444
  221,624
Maintenance CAPEX, $m
  -1,925
  -2,639
  -3,533
  -4,628
  -5,943
  -7,491
  -9,286
  -11,334
  -13,641
  -16,208
  -19,034
  -22,116
  -25,449
  -29,029
  -32,849
  -36,904
  -41,188
  -45,698
  -50,429
  -55,380
  -60,550
  -65,941
  -71,554
  -77,394
  -83,465
  -89,776
  -96,333
  -103,148
  -110,231
  -117,594
New CAPEX, $m
  -3,570
  -4,471
  -5,476
  -6,572
  -7,743
  -8,972
  -10,242
  -11,534
  -12,835
  -14,130
  -15,410
  -16,668
  -17,899
  -19,100
  -20,274
  -21,421
  -22,547
  -23,656
  -24,756
  -25,852
  -26,953
  -28,066
  -29,198
  -30,358
  -31,552
  -32,788
  -34,073
  -35,414
  -36,817
  -38,288
Cash from investing activities, $m
  -5,495
  -7,110
  -9,009
  -11,200
  -13,686
  -16,463
  -19,528
  -22,868
  -26,476
  -30,338
  -34,444
  -38,784
  -43,348
  -48,129
  -53,123
  -58,325
  -63,735
  -69,354
  -75,185
  -81,232
  -87,503
  -94,007
  -100,752
  -107,752
  -115,017
  -122,564
  -130,406
  -138,562
  -147,048
  -155,882
Free cash flow, $m
  1,376
  1,551
  1,811
  2,172
  2,653
  3,268
  4,031
  4,953
  6,042
  7,302
  8,619
  10,229
  12,013
  13,967
  16,088
  18,371
  20,812
  23,405
  26,147
  29,033
  32,062
  35,231
  38,540
  41,988
  45,577
  49,308
  53,186
  57,214
  61,397
  65,742
Issuance/(repayment) of debt, $m
  5,072
  6,358
  7,787
  9,345
  11,011
  12,759
  14,564
  16,402
  18,251
  20,093
  21,913
  23,702
  25,452
  27,161
  28,829
  30,461
  32,061
  33,639
  35,202
  36,761
  38,327
  39,909
  41,519
  43,168
  44,867
  46,624
  48,452
  50,358
  52,353
  54,446
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  5,072
  6,358
  7,787
  9,345
  11,011
  12,759
  14,564
  16,402
  18,251
  20,093
  21,913
  23,702
  25,452
  27,161
  28,829
  30,461
  32,061
  33,639
  35,202
  36,761
  38,327
  39,909
  41,519
  43,168
  44,867
  46,624
  48,452
  50,358
  52,353
  54,446
Total cash flow (excl. dividends), $m
  6,448
  7,909
  9,598
  11,518
  13,664
  16,027
  18,595
  21,355
  24,293
  27,395
  30,532
  33,931
  37,465
  41,128
  44,917
  48,832
  52,873
  57,044
  61,349
  65,795
  70,389
  75,140
  80,059
  85,156
  90,443
  95,933
  101,638
  107,572
  113,750
  120,188
Retained Cash Flow (-), $m
  -2,389
  -3,006
  -3,681
  -4,418
  -5,205
  -6,032
  -6,885
  -7,754
  -8,628
  -9,499
  -10,360
  -11,205
  -12,032
  -12,840
  -13,629
  -14,400
  -15,157
  -15,903
  -16,642
  -17,379
  -18,119
  -18,867
  -19,628
  -20,408
  -21,211
  -22,042
  -22,906
  -23,807
  -24,750
  -25,739
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  4,059
  4,904
  5,916
  7,100
  8,458
  9,995
  11,710
  13,601
  15,664
  17,896
  20,173
  22,726
  25,432
  28,287
  31,288
  34,431
  37,716
  41,141
  44,707
  48,416
  52,270
  56,273
  60,431
  64,748
  69,233
  73,891
  78,732
  83,765
  89,000
  94,448
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
  3,892
  4,489
  5,149
  5,846
  6,556
  7,254
  7,911
  8,501
  8,998
  9,382
  9,580
  9,698
  9,670
  9,497
  9,186
  8,750
  8,206
  7,576
  6,884
  6,152
  5,406
  4,669
  3,961
  3,298
  2,693
  2,156
  1,690
  1,296
  972
  711
Current shareholders' claim on cash, %
  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

Enel Americas S.A., formerly Enersis Americas S.A., through its subsidiaries and jointly controlled entities, is engaged in the electricity generation, transmission and distribution businesses in Chile, Brazil, Colombia, Peru and Argentina. The Company operates through two segments: Generation and Transmission, and Distribution. The Company's Generation and Transmission segment operates through companies, including Central Comercializadora de Energia S.A. (Cemsa); Central Dock Sud S.A. (Dock Sud); Central Costanera S.A. (Costanera), and Hidroelectrica El Chocon S.A. (El Chocon). The Company's Distribution segment operates through companies, including Empresa Distribuidora Sur S.A. (Edesur); Ampla Energia e Servicos S.A. (Ampla), and Companhia Energetica do Ceara S.A. (Coelce). The Company is engaged in non-electricity business through its subsidiary, Servicios Informaticos e Inmobiliarios Ltda. (SIEI). It holds interest in Yacylec S.A., which is an electricity transmission company.

FINANCIAL RATIOS  of  Enel Americas S.A. (ENIA)

Valuation Ratios
P/E Ratio 795.6
Price to Sales 58.6
Price to Book 78
Price to Tangible Book
Price to Cash Flow 178
Price to Free Cash Flow 346
Growth Rates
Sales Growth Rate -2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -39%
Cap. Spend. - 3 Yr. Gr. Rate 1.5%
Financial Strength
Quick Ratio 4
Current Ratio 0
LT Debt to Equity 57.5%
Total Debt to Equity 69.5%
Interest Coverage 5
Management Effectiveness
Return On Assets 4.4%
Ret/ On Assets - 3 Yr. Avg. 4.9%
Return On Total Capital 5.4%
Ret/ On T. Cap. - 3 Yr. Avg. 6.4%
Return On Equity 8.3%
Return On Equity - 3 Yr. Avg. 9.9%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 50.4%
Gross Margin - 3 Yr. Avg. 49.9%
EBITDA Margin 22.6%
EBITDA Margin - 3 Yr. Avg. 26.4%
Operating Margin 23.4%
Oper. Margin - 3 Yr. Avg. 24.6%
Pre-Tax Margin 17.9%
Pre-Tax Margin - 3 Yr. Avg. 21.6%
Net Profit Margin 7.4%
Net Profit Margin - 3 Yr. Avg. 10.5%
Effective Tax Rate 38.6%
Eff/ Tax Rate - 3 Yr. Avg. 38.7%
Payout Ratio 112.7%

ENIA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ENIA stock intrinsic value calculation we used $10540 million for the last fiscal year's total revenue generated by Enel Americas S.A.. The default revenue input number comes from 0001 income statement of Enel Americas S.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 ENIA stock valuation model: a) initial revenue growth rate of 37.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ENIA is calculated based on our internal credit rating of Enel Americas S.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 Enel Americas S.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 ENIA stock the variable cost ratio is equal to 63.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ENIA 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 18.4% for Enel Americas S.A..

Corporate tax rate of 27% is the nominal tax rate for Enel Americas S.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 ENIA 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 ENIA are equal to 91.3%.

Life of production assets of 0 years is the average useful life of capital assets used in Enel Americas S.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 ENIA is equal to -14%. 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 - $6480.471 million for Enel Americas S.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 1166.486 million for Enel Americas S.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 Enel Americas S.A. at the current share price and the inputted number of shares is $9.8 billion.

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