Intrinsic value of Enel Americas ADR - ENIA

Previous Close

$11.58

  Intrinsic Value

$105.47

stock screener

  Rating & Target

str. buy

+811%

Previous close

$11.58

 
Intrinsic value

$105.47

 
Up/down potential

+811%

 
Rating

str. buy

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

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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Enel Americas ADR (ENIA) 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
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -1.96
  45.20
  41.18
  37.56
  34.31
  31.38
  28.74
  26.36
  24.23
  22.30
  20.57
  19.02
  17.62
  16.35
  15.22
  14.20
  13.28
  12.45
  11.70
  11.03
  10.43
  9.89
  9.40
  8.96
  8.56
  8.21
  7.89
  7.60
  7.34
  7.10
  6.89
Revenue, $m
  8,251
  11,980
  16,914
  23,267
  31,249
  41,054
  52,852
  66,785
  82,966
  101,471
  122,348
  145,615
  171,266
  199,274
  229,600
  262,195
  297,006
  333,981
  373,071
  414,234
  457,441
  502,670
  549,914
  599,179
  650,487
  703,870
  759,376
  817,069
  877,022
  939,325
  1,004,077
Variable operating expenses, $m
 
  7,659
  10,784
  14,807
  19,863
  26,072
  33,544
  42,369
  52,617
  64,337
  77,559
  92,223
  108,468
  126,207
  145,413
  166,057
  188,104
  211,521
  236,278
  262,349
  289,713
  318,358
  348,279
  379,481
  411,976
  445,785
  480,939
  517,478
  555,448
  594,907
  635,916
Fixed operating expenses, $m
 
  1,068
  1,095
  1,122
  1,150
  1,179
  1,208
  1,239
  1,270
  1,301
  1,334
  1,367
  1,401
  1,436
  1,472
  1,509
  1,547
  1,586
  1,625
  1,666
  1,707
  1,750
  1,794
  1,839
  1,885
  1,932
  1,980
  2,030
  2,080
  2,132
  2,186
Total operating expenses, $m
  6,318
  8,727
  11,879
  15,929
  21,013
  27,251
  34,752
  43,608
  53,887
  65,638
  78,893
  93,590
  109,869
  127,643
  146,885
  167,566
  189,651
  213,107
  237,903
  264,015
  291,420
  320,108
  350,073
  381,320
  413,861
  447,717
  482,919
  519,508
  557,528
  597,039
  638,102
Operating income, $m
  1,932
  3,253
  5,036
  7,338
  10,236
  13,803
  18,099
  23,178
  29,080
  35,833
  43,456
  52,025
  61,396
  71,630
  82,714
  94,629
  107,355
  120,874
  135,167
  150,220
  166,020
  182,562
  199,841
  217,860
  236,626
  256,153
  276,457
  297,561
  319,494
  342,286
  365,975
EBITDA, $m
  1,932
  4,627
  6,946
  9,938
  13,705
  18,337
  23,915
  30,509
  38,170
  46,935
  56,826
  67,853
  80,012
  93,291
  107,672
  123,129
  139,640
  157,177
  175,720
  195,247
  215,744
  237,202
  259,616
  282,991
  307,334
  332,664
  359,001
  386,377
  414,826
  444,390
  475,118
Interest expense (income), $m
  387
  356
  804
  1,397
  2,159
  3,118
  4,295
  5,711
  7,384
  9,327
  11,549
  14,056
  16,849
  19,929
  23,292
  26,933
  30,847
  35,027
  39,466
  44,160
  49,102
  54,290
  59,720
  65,393
  71,308
  77,468
  83,878
  90,543
  97,470
  104,668
  112,149
Earnings before tax, $m
  1,477
  2,897
  4,231
  5,941
  8,077
  10,685
  13,804
  17,466
  21,695
  26,506
  31,906
  37,969
  44,546
  51,701
  59,422
  67,695
  76,508
  85,847
  95,701
  106,060
  116,918
  128,272
  140,120
  152,467
  165,318
  178,685
  192,579
  207,019
  222,024
  237,618
  253,826
Tax expense, $m
  570
  782
  1,142
  1,604
  2,181
  2,885
  3,727
  4,716
  5,858
  7,157
  8,615
  10,252
  12,028
  13,959
  16,044
  18,278
  20,657
  23,179
  25,839
  28,636
  31,568
  34,633
  37,833
  41,166
  44,636
  48,245
  51,996
  55,895
  59,946
  64,157
  68,533
Net income, $m
  608
  2,115
  3,089
  4,337
  5,896
  7,800
  10,077
  12,750
  15,837
  19,349
  23,292
  27,717
  32,519
  37,742
  43,378
  49,418
  55,851
  62,668
  69,862
  77,424
  85,350
  93,638
  102,288
  111,301
  120,682
  130,440
  140,583
  151,124
  162,078
  173,461
  185,293

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,825
  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
  16,851
  20,375
  28,765
  39,570
  53,145
  69,819
  89,884
  113,581
  141,099
  172,570
  208,075
  247,645
  291,268
  338,901
  390,476
  445,910
  505,112
  567,994
  634,474
  704,480
  777,961
  854,881
  935,228
  1,019,013
  1,106,270
  1,197,057
  1,291,456
  1,389,573
  1,491,534
  1,597,491
  1,707,614
Adjusted assets (=assets-cash), $m
  14,026
  20,375
  28,765
  39,570
  53,145
  69,819
  89,884
  113,581
  141,099
  172,570
  208,075
  247,645
  291,268
  338,901
  390,476
  445,910
  505,112
  567,994
  634,474
  704,480
  777,961
  854,881
  935,228
  1,019,013
  1,106,270
  1,197,057
  1,291,456
  1,389,573
  1,491,534
  1,597,491
  1,707,614
Revenue / Adjusted assets
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
Average production assets, $m
  8,966
  13,023
  18,386
  25,291
  33,968
  44,625
  57,450
  72,596
  90,184
  110,299
  132,993
  158,284
  186,166
  216,611
  249,575
  285,006
  322,846
  363,037
  405,528
  450,273
  497,238
  546,402
  597,756
  651,308
  707,079
  765,106
  825,442
  888,154
  953,323
  1,021,046
  1,091,431
Working capital, $m
  954
  -1,641
  -2,317
  -3,188
  -4,281
  -5,624
  -7,241
  -9,150
  -11,366
  -13,902
  -16,762
  -19,949
  -23,463
  -27,300
  -31,455
  -35,921
  -40,690
  -45,755
  -51,111
  -56,750
  -62,669
  -68,866
  -75,338
  -82,088
  -89,117
  -96,430
  -104,035
  -111,938
  -120,152
  -128,687
  -137,559
Total debt, $m
  4,308
  8,042
  13,965
  21,594
  31,177
  42,949
  57,115
  73,845
  93,273
  115,492
  140,558
  168,494
  199,292
  232,921
  269,333
  308,469
  350,266
  394,661
  441,595
  491,020
  542,897
  597,203
  653,928
  713,080
  774,683
  838,779
  905,425
  974,695
  1,046,680
  1,121,486
  1,199,232
Total liabilities, $m
  10,652
  14,385
  20,308
  27,937
  37,520
  49,292
  63,458
  80,188
  99,616
  121,835
  146,901
  174,837
  205,635
  239,264
  275,676
  314,812
  356,609
  401,004
  447,938
  497,363
  549,240
  603,546
  660,271
  719,423
  781,026
  845,122
  911,768
  981,038
  1,053,023
  1,127,829
  1,205,575
Total equity, $m
  6,200
  5,990
  8,457
  11,634
  15,625
  20,527
  26,426
  33,393
  41,483
  50,736
  61,174
  72,808
  85,633
  99,637
  114,800
  131,097
  148,503
  166,990
  186,535
  207,117
  228,720
  251,335
  274,957
  299,590
  325,243
  351,935
  379,688
  408,534
  438,511
  469,662
  502,038
Total liabilities and equity, $m
  16,852
  20,375
  28,765
  39,571
  53,145
  69,819
  89,884
  113,581
  141,099
  172,571
  208,075
  247,645
  291,268
  338,901
  390,476
  445,909
  505,112
  567,994
  634,473
  704,480
  777,960
  854,881
  935,228
  1,019,013
  1,106,269
  1,197,057
  1,291,456
  1,389,572
  1,491,534
  1,597,491
  1,707,613
Debt-to-equity ratio
  0.695
  1.340
  1.650
  1.860
  2.000
  2.090
  2.160
  2.210
  2.250
  2.280
  2.300
  2.310
  2.330
  2.340
  2.350
  2.350
  2.360
  2.360
  2.370
  2.370
  2.370
  2.380
  2.380
  2.380
  2.380
  2.380
  2.380
  2.390
  2.390
  2.390
  2.390
Adjusted equity ratio
  0.241
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  608
  2,115
  3,089
  4,337
  5,896
  7,800
  10,077
  12,750
  15,837
  19,349
  23,292
  27,717
  32,519
  37,742
  43,378
  49,418
  55,851
  62,668
  69,862
  77,424
  85,350
  93,638
  102,288
  111,301
  120,682
  130,440
  140,583
  151,124
  162,078
  173,461
  185,293
Depreciation, amort., depletion, $m
  0
  1,374
  1,910
  2,601
  3,468
  4,534
  5,816
  7,331
  9,090
  11,101
  13,371
  15,828
  18,617
  21,661
  24,957
  28,501
  32,285
  36,304
  40,553
  45,027
  49,724
  54,640
  59,776
  65,131
  70,708
  76,511
  82,544
  88,815
  95,332
  102,105
  109,143
Funds from operations, $m
  5,436
  3,488
  4,999
  6,938
  9,365
  12,334
  15,893
  20,081
  24,927
  30,451
  36,662
  43,546
  51,135
  59,403
  68,336
  77,918
  88,135
  98,972
  110,414
  122,451
  135,074
  148,279
  162,064
  176,432
  191,390
  206,950
  223,127
  239,939
  257,410
  275,565
  294,436
Change in working capital, $m
  2,718
  -511
  -676
  -870
  -1,094
  -1,343
  -1,616
  -1,909
  -2,217
  -2,535
  -2,860
  -3,188
  -3,514
  -3,837
  -4,155
  -4,466
  -4,769
  -5,066
  -5,355
  -5,639
  -5,919
  -6,196
  -6,472
  -6,749
  -7,029
  -7,313
  -7,604
  -7,904
  -8,214
  -8,535
  -8,871
Cash from operations, $m
  2,718
  3,999
  5,675
  7,808
  10,458
  13,677
  17,510
  21,990
  27,144
  32,986
  39,523
  46,733
  54,650
  63,240
  72,490
  82,384
  92,905
  104,038
  115,770
  128,091
  140,994
  154,475
  168,536
  183,181
  198,419
  214,264
  230,731
  247,843
  265,623
  284,101
  303,307
Maintenance CAPEX, $m
  0
  -897
  -1,302
  -1,839
  -2,529
  -3,397
  -4,463
  -5,745
  -7,260
  -9,018
  -11,030
  -13,299
  -15,828
  -18,617
  -21,661
  -24,957
  -28,501
  -32,285
  -36,304
  -40,553
  -45,027
  -49,724
  -54,640
  -59,776
  -65,131
  -70,708
  -76,511
  -82,544
  -88,815
  -95,332
  -102,105
New CAPEX, $m
  -1,320
  -4,057
  -5,363
  -6,906
  -8,676
  -10,658
  -12,824
  -15,146
  -17,588
  -20,115
  -22,693
  -25,291
  -27,882
  -30,445
  -32,964
  -35,431
  -37,840
  -40,191
  -42,491
  -44,745
  -46,965
  -49,164
  -51,354
  -53,552
  -55,771
  -58,027
  -60,336
  -62,712
  -65,169
  -67,723
  -70,386
Cash from investing activities, $m
  -789
  -4,954
  -6,665
  -8,745
  -11,205
  -14,055
  -17,287
  -20,891
  -24,848
  -29,133
  -33,723
  -38,590
  -43,710
  -49,062
  -54,625
  -60,388
  -66,341
  -72,476
  -78,795
  -85,298
  -91,992
  -98,888
  -105,994
  -113,328
  -120,902
  -128,735
  -136,847
  -145,256
  -153,984
  -163,055
  -172,491
Free cash flow, $m
  1,929
  -954
  -990
  -936
  -748
  -377
  223
  1,099
  2,296
  3,852
  5,799
  8,143
  10,939
  14,179
  17,865
  21,995
  26,564
  31,562
  36,975
  42,793
  49,001
  55,587
  62,541
  69,854
  77,518
  85,529
  93,885
  102,587
  111,639
  121,046
  130,817
Issuance/(repayment) of debt, $m
  436
  4,478
  5,924
  7,628
  9,584
  11,772
  14,166
  16,730
  19,428
  22,219
  25,067
  27,936
  30,798
  33,629
  36,412
  39,136
  41,797
  44,395
  46,934
  49,425
  51,877
  54,305
  56,725
  59,152
  61,603
  64,096
  66,646
  69,270
  71,985
  74,805
  77,747
Issuance/(repurchase) of shares, $m
  -149
  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  
  -489
  4,478
  5,924
  7,628
  9,584
  11,772
  14,166
  16,730
  19,428
  22,219
  25,067
  27,936
  30,798
  33,629
  36,412
  39,136
  41,797
  44,395
  46,934
  49,425
  51,877
  54,305
  56,725
  59,152
  61,603
  64,096
  66,646
  69,270
  71,985
  74,805
  77,747
Total cash flow (excl. dividends), $m
  1,433
  3,523
  4,933
  6,692
  8,836
  11,395
  14,388
  17,829
  21,724
  26,071
  30,866
  36,079
  41,737
  47,807
  54,277
  61,132
  68,361
  75,956
  83,910
  92,217
  100,878
  109,893
  119,266
  129,006
  139,121
  149,625
  160,531
  171,857
  183,624
  195,851
  208,564
Retained Cash Flow (-), $m
  2,286
  -1,871
  -2,467
  -3,177
  -3,991
  -4,902
  -5,899
  -6,967
  -8,090
  -9,253
  -10,439
  -11,633
  -12,825
  -14,004
  -15,163
  -16,298
  -17,406
  -18,487
  -19,545
  -20,582
  -21,603
  -22,614
  -23,622
  -24,633
  -25,654
  -26,691
  -27,753
  -28,846
  -29,977
  -31,151
  -32,376
Prev. year cash balance distribution, $m
 
  2,081
  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
 
  3,733
  2,467
  3,515
  4,845
  6,493
  8,489
  10,863
  13,634
  16,819
  20,427
  24,446
  28,912
  33,803
  39,114
  44,834
  50,956
  57,469
  64,365
  71,635
  79,275
  87,278
  95,644
  104,373
  113,468
  122,933
  132,777
  143,011
  153,647
  164,700
  176,188
Discount rate, %
 
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
 
  3,495
  2,149
  2,830
  3,578
  4,365
  5,152
  5,899
  6,563
  7,106
  7,493
  7,698
  7,721
  7,559
  7,224
  6,742
  6,143
  5,465
  4,746
  4,023
  3,325
  2,680
  2,104
  1,609
  1,196
  865
  607
  413
  273
  174
  107
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

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 ADR (ENIA)

Valuation Ratios
P/E Ratio 1094.2
Price to Sales 80.6
Price to Book 107.3
Price to Tangible Book
Price to Cash Flow 244.8
Price to Free Cash Flow 475.9
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 $8251 million for the last fiscal year's total revenue generated by Enel Americas ADR. The default revenue input number comes from 2016 income statement of Enel Americas 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 ENIA stock valuation model: a) initial revenue growth rate of 45.2% 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 6.8%, whose default value for ENIA is calculated based on our internal credit rating of Enel Americas 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 Enel Americas 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 ENIA stock the variable cost ratio is equal to 64.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1042 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 10% for Enel Americas ADR.

Corporate tax rate of 27% is the nominal tax rate for Enel Americas 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 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 108.7%.

Life of production assets of 10 years is the average useful life of capital assets used in Enel Americas 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 ENIA is equal to -13.7%. 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 - $6200 million for Enel Americas 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 1132.5 million for Enel Americas 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 Enel Americas ADR at the current share price and the inputted number of shares is $13.1 billion.

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COMPANY NEWS

▶ IBD Rating Upgrades: Enel Americas Flashes Improved Price Strength   [Dec-26-17 03:00AM  Investor's Business Daily]
▶ ETFs with exposure to Enel Americas SA : October 23, 2017   [Oct-23-17 10:34AM  Capital Cube]
▶ The Next Big Innovation In Solar Is Here   [Jul-11-17 02:30PM  Oilprice.com]
▶ Do Hedge Funds Love Enel Americas SA (ADR) (ENIA)?   [Dec-09-16 10:33AM  Insider Monkey]
▶ Do Hedge Funds Love Enel Americas SA (ADR) (ENIA)?   [10:33AM  at Insider Monkey]
Financial statements of ENIA
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