Intrinsic value of Coca-Cola Femsa ADR - KOF

Previous Close

$61.33

  Intrinsic Value

$1,200

stock screener

  Rating & Target

str. buy

+999%

Previous close

$61.33

 
Intrinsic value

$1,200

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of KOF 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 1.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  20.90
  19.31
  17.88
  16.59
  15.43
  14.39
  13.45
  12.60
  11.84
  11.16
  10.54
  9.99
  9.49
  9.04
  8.64
  8.27
  7.95
  7.65
  7.39
  7.15
  6.93
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.92
  5.83
  5.75
Revenue, $m
  12,525
  14,944
  17,616
  20,538
  23,708
  27,119
  30,766
  34,644
  38,748
  43,072
  47,614
  52,370
  57,340
  62,525
  67,925
  73,545
  79,389
  85,464
  91,777
  98,337
  105,155
  112,242
  119,611
  127,277
  135,255
  143,562
  152,215
  161,233
  170,637
  180,446
Variable operating expenses, $m
  10,690
  12,632
  14,777
  17,124
  19,670
  22,409
  25,338
  28,452
  31,747
  35,220
  38,235
  42,055
  46,046
  50,209
  54,546
  59,059
  63,752
  68,630
  73,700
  78,967
  84,442
  90,134
  96,052
  102,208
  108,614
  115,285
  122,233
  129,475
  137,026
  144,904
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
  10,690
  12,632
  14,777
  17,124
  19,670
  22,409
  25,338
  28,452
  31,747
  35,220
  38,235
  42,055
  46,046
  50,209
  54,546
  59,059
  63,752
  68,630
  73,700
  78,967
  84,442
  90,134
  96,052
  102,208
  108,614
  115,285
  122,233
  129,475
  137,026
  144,904
Operating income, $m
  1,835
  2,312
  2,838
  3,414
  4,038
  4,710
  5,428
  6,192
  7,000
  7,852
  9,378
  10,315
  11,294
  12,315
  13,379
  14,486
  15,637
  16,834
  18,077
  19,369
  20,712
  22,108
  23,560
  25,070
  26,641
  28,277
  29,982
  31,758
  33,610
  35,542
EBITDA, $m
  2,955
  3,526
  4,156
  4,845
  5,593
  6,398
  7,259
  8,174
  9,142
  10,162
  11,233
  12,355
  13,528
  14,751
  16,025
  17,351
  18,730
  20,163
  21,653
  23,200
  24,809
  26,481
  28,219
  30,028
  31,910
  33,870
  35,912
  38,039
  40,258
  42,572
Interest expense (income), $m
  209
  444
  614
  804
  1,013
  1,243
  1,492
  1,759
  2,046
  2,350
  2,672
  3,011
  3,368
  3,741
  4,131
  4,538
  4,962
  5,403
  5,862
  6,338
  6,834
  7,349
  7,884
  8,440
  9,018
  9,620
  10,246
  10,898
  11,577
  12,285
  13,023
Earnings before tax, $m
  1,392
  1,698
  2,034
  2,400
  2,795
  3,218
  3,669
  4,147
  4,651
  5,180
  6,367
  6,947
  7,553
  8,184
  8,841
  9,524
  10,234
  10,972
  11,739
  12,535
  13,364
  14,224
  15,120
  16,051
  17,021
  18,031
  19,084
  20,181
  21,325
  22,519
Tax expense, $m
  376
  458
  549
  648
  755
  869
  991
  1,120
  1,256
  1,399
  1,719
  1,876
  2,039
  2,210
  2,387
  2,572
  2,763
  2,962
  3,169
  3,385
  3,608
  3,841
  4,082
  4,334
  4,596
  4,868
  5,153
  5,449
  5,758
  6,080
Net income, $m
  1,016
  1,239
  1,485
  1,752
  2,040
  2,349
  2,678
  3,027
  3,395
  3,782
  4,648
  5,072
  5,514
  5,975
  6,454
  6,953
  7,471
  8,010
  8,569
  9,151
  9,755
  10,384
  11,037
  11,717
  12,425
  13,163
  13,931
  14,732
  15,567
  16,439

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
  17,567
  20,959
  24,706
  28,805
  33,251
  38,035
  43,151
  48,590
  54,345
  60,410
  66,779
  73,450
  80,421
  87,692
  95,267
  103,149
  111,345
  119,865
  128,719
  137,920
  147,482
  157,422
  167,758
  178,510
  189,699
  201,349
  213,485
  226,133
  239,322
  253,080
Adjusted assets (=assets-cash), $m
  17,567
  20,959
  24,706
  28,805
  33,251
  38,035
  43,151
  48,590
  54,345
  60,410
  66,779
  73,450
  80,421
  87,692
  95,267
  103,149
  111,345
  119,865
  128,719
  137,920
  147,482
  157,422
  167,758
  178,510
  189,699
  201,349
  213,485
  226,133
  239,322
  253,080
Revenue / Adjusted assets
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
  0.713
Average production assets, $m
  7,953
  9,489
  11,186
  13,042
  15,054
  17,220
  19,537
  21,999
  24,605
  27,351
  30,235
  33,255
  36,411
  39,703
  43,133
  46,701
  50,412
  54,270
  58,278
  62,444
  66,773
  71,273
  75,953
  80,821
  85,887
  91,162
  96,657
  102,383
  108,354
  114,583
Working capital, $m
  -175
  -209
  -247
  -288
  -332
  -380
  -431
  -485
  -542
  -603
  -667
  -733
  -803
  -875
  -951
  -1,030
  -1,111
  -1,196
  -1,285
  -1,377
  -1,472
  -1,571
  -1,675
  -1,782
  -1,894
  -2,010
  -2,131
  -2,257
  -2,389
  -2,526
Total debt, $m
  6,265
  8,202
  10,342
  12,682
  15,220
  17,952
  20,873
  23,979
  27,265
  30,728
  34,365
  38,174
  42,155
  46,307
  50,632
  55,132
  59,813
  64,677
  69,733
  74,987
  80,446
  86,122
  92,024
  98,163
  104,553
  111,205
  118,135
  125,357
  132,887
  140,743
Total liabilities, $m
  10,031
  11,968
  14,107
  16,448
  18,986
  21,718
  24,639
  27,745
  31,031
  34,494
  38,131
  41,940
  45,920
  50,072
  54,397
  58,898
  63,578
  68,443
  73,499
  78,752
  84,212
  89,888
  95,790
  101,929
  108,318
  114,971
  121,900
  129,122
  136,653
  144,509
Total equity, $m
  7,536
  8,991
  10,599
  12,357
  14,264
  16,317
  18,512
  20,845
  23,314
  25,916
  28,648
  31,510
  34,501
  37,620
  40,869
  44,251
  47,767
  51,422
  55,220
  59,168
  63,270
  67,534
  71,968
  76,581
  81,381
  86,379
  91,585
  97,011
  102,669
  108,571
Total liabilities and equity, $m
  17,567
  20,959
  24,706
  28,805
  33,250
  38,035
  43,151
  48,590
  54,345
  60,410
  66,779
  73,450
  80,421
  87,692
  95,266
  103,149
  111,345
  119,865
  128,719
  137,920
  147,482
  157,422
  167,758
  178,510
  189,699
  201,350
  213,485
  226,133
  239,322
  253,080
Debt-to-equity ratio
  0.830
  0.910
  0.980
  1.030
  1.070
  1.100
  1.130
  1.150
  1.170
  1.190
  1.200
  1.210
  1.220
  1.230
  1.240
  1.250
  1.250
  1.260
  1.260
  1.270
  1.270
  1.280
  1.280
  1.280
  1.280
  1.290
  1.290
  1.290
  1.290
  1.300
Adjusted equity ratio
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,016
  1,239
  1,485
  1,752
  2,040
  2,349
  2,678
  3,027
  3,395
  3,782
  4,648
  5,072
  5,514
  5,975
  6,454
  6,953
  7,471
  8,010
  8,569
  9,151
  9,755
  10,384
  11,037
  11,717
  12,425
  13,163
  13,931
  14,732
  15,567
  16,439
Depreciation, amort., depletion, $m
  1,120
  1,214
  1,318
  1,432
  1,555
  1,688
  1,830
  1,981
  2,141
  2,310
  1,855
  2,040
  2,234
  2,436
  2,646
  2,865
  3,093
  3,329
  3,575
  3,831
  4,097
  4,373
  4,660
  4,958
  5,269
  5,593
  5,930
  6,281
  6,647
  7,030
Funds from operations, $m
  2,136
  2,453
  2,803
  3,184
  3,596
  4,038
  4,509
  5,008
  5,536
  6,091
  6,503
  7,112
  7,748
  8,410
  9,100
  9,818
  10,564
  11,339
  12,145
  12,982
  13,852
  14,756
  15,697
  16,676
  17,695
  18,756
  19,861
  21,013
  22,215
  23,469
Change in working capital, $m
  -30
  -34
  -37
  -41
  -44
  -48
  -51
  -54
  -57
  -61
  -64
  -67
  -70
  -73
  -76
  -79
  -82
  -85
  -88
  -92
  -95
  -99
  -103
  -107
  -112
  -116
  -121
  -126
  -132
  -137
Cash from operations, $m
  2,166
  2,487
  2,840
  3,225
  3,640
  4,085
  4,560
  5,063
  5,593
  6,152
  6,566
  7,178
  7,817
  8,483
  9,176
  9,896
  10,646
  11,424
  12,233
  13,074
  13,947
  14,856
  15,800
  16,783
  17,806
  18,872
  19,982
  21,139
  22,347
  23,606
Maintenance CAPEX, $m
  -403
  -488
  -582
  -686
  -800
  -924
  -1,056
  -1,199
  -1,350
  -1,510
  -1,678
  -1,855
  -2,040
  -2,234
  -2,436
  -2,646
  -2,865
  -3,093
  -3,329
  -3,575
  -3,831
  -4,097
  -4,373
  -4,660
  -4,958
  -5,269
  -5,593
  -5,930
  -6,281
  -6,647
New CAPEX, $m
  -1,378
  -1,536
  -1,697
  -1,856
  -2,013
  -2,166
  -2,316
  -2,463
  -2,606
  -2,746
  -2,884
  -3,020
  -3,156
  -3,292
  -3,429
  -3,569
  -3,711
  -3,857
  -4,009
  -4,166
  -4,329
  -4,500
  -4,680
  -4,868
  -5,066
  -5,275
  -5,495
  -5,726
  -5,971
  -6,229
Cash from investing activities, $m
  -1,781
  -2,024
  -2,279
  -2,542
  -2,813
  -3,090
  -3,372
  -3,662
  -3,956
  -4,256
  -4,562
  -4,875
  -5,196
  -5,526
  -5,865
  -6,215
  -6,576
  -6,950
  -7,338
  -7,741
  -8,160
  -8,597
  -9,053
  -9,528
  -10,024
  -10,544
  -11,088
  -11,656
  -12,252
  -12,876
Free cash flow, $m
  385
  463
  562
  683
  827
  996
  1,187
  1,401
  1,638
  1,896
  2,005
  2,303
  2,621
  2,957
  3,311
  3,682
  4,069
  4,474
  4,895
  5,333
  5,787
  6,259
  6,748
  7,255
  7,782
  8,328
  8,895
  9,483
  10,094
  10,729
Issuance/(repayment) of debt, $m
  1,738
  1,937
  2,140
  2,341
  2,538
  2,732
  2,921
  3,106
  3,286
  3,463
  3,637
  3,809
  3,980
  4,152
  4,325
  4,501
  4,680
  4,865
  5,056
  5,254
  5,460
  5,676
  5,902
  6,139
  6,389
  6,652
  6,930
  7,222
  7,531
  7,856
Issuance/(repurchase) of shares, $m
  289
  216
  123
  6
  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  
  2,027
  2,153
  2,263
  2,347
  2,538
  2,732
  2,921
  3,106
  3,286
  3,463
  3,637
  3,809
  3,980
  4,152
  4,325
  4,501
  4,680
  4,865
  5,056
  5,254
  5,460
  5,676
  5,902
  6,139
  6,389
  6,652
  6,930
  7,222
  7,531
  7,856
Total cash flow (excl. dividends), $m
  2,412
  2,616
  2,824
  3,030
  3,366
  3,727
  4,108
  4,507
  4,924
  5,359
  5,642
  6,112
  6,601
  7,109
  7,636
  8,182
  8,750
  9,339
  9,951
  10,586
  11,247
  11,934
  12,650
  13,395
  14,171
  14,980
  15,824
  16,705
  17,625
  18,586
Retained Cash Flow (-), $m
  -1,305
  -1,455
  -1,608
  -1,758
  -1,907
  -2,052
  -2,195
  -2,333
  -2,469
  -2,602
  -2,733
  -2,862
  -2,991
  -3,119
  -3,249
  -3,381
  -3,516
  -3,655
  -3,798
  -3,947
  -4,102
  -4,264
  -4,434
  -4,613
  -4,800
  -4,998
  -5,206
  -5,426
  -5,658
  -5,902
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
  1,107
  1,161
  1,216
  1,271
  1,459
  1,675
  1,913
  2,174
  2,455
  2,758
  2,909
  3,251
  3,611
  3,989
  4,386
  4,801
  5,233
  5,684
  6,152
  6,639
  7,145
  7,670
  8,216
  8,782
  9,371
  9,982
  10,618
  11,279
  11,967
  12,683
Discount rate, %
  4.80
  5.04
  5.29
  5.56
  5.83
  6.13
  6.43
  6.75
  7.09
  7.45
  7.82
  8.21
  8.62
  9.05
  9.50
  9.98
  10.48
  11.00
  11.55
  12.13
  12.74
  13.37
  14.04
  14.74
  15.48
  16.25
  17.07
  17.92
  18.82
  19.76
PV of cash for distribution, $m
  1,057
  1,052
  1,042
  1,024
  1,098
  1,172
  1,237
  1,289
  1,325
  1,345
  1,271
  1,261
  1,232
  1,186
  1,124
  1,048
  962
  868
  771
  673
  576
  485
  400
  324
  256
  199
  151
  112
  81
  57
Current shareholders' claim on cash, %
  93.8
  90.1
  88.4
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3

Coca-Cola FEMSA, S.A.B. de C.V. is a franchise bottler of Coca-Cola trademark beverages across the world. The Company and its subsidiaries are engaged in the production, distribution and marketing of certain Coca-Cola beverages. It is also engaged in acquiring, holding and transferring all types of bonds, shares and marketable securities. The Company's segments include Mexico and Central America division, which comprises Mexico (including corporate operations), Guatemala, Nicaragua, Costa Rica and Panama; the South America division, which consists of Brazil, Argentina and Colombia; Venezuela, which operates in an economy with exchange control and hyper-inflation, and the Asian division, which consists of the Company's equity method investment in Coca-Cola FEMSA Philippines, Inc. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), waters and still beverages (including juice drinks, coffee, teas, milk, dairy and isotonic drinks).

FINANCIAL RATIOS  of  Coca-Cola Femsa ADR (KOF)

Valuation Ratios
P/E Ratio 249.3
Price to Sales 14.1
Price to Book 20.5
Price to Tangible Book
Price to Cash Flow 77.3
Price to Free Cash Flow 127
Growth Rates
Sales Growth Rate 16.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 10.3%
Cap. Spend. - 3 Yr. Gr. Rate 1.4%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 70.5%
Total Debt to Equity 73%
Interest Coverage 5
Management Effectiveness
Return On Assets 5.3%
Ret/ On Assets - 3 Yr. Avg. 5.8%
Return On Total Capital 5.3%
Ret/ On T. Cap. - 3 Yr. Avg. 5.8%
Return On Equity 8.9%
Return On Equity - 3 Yr. Avg. 9.4%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 44.8%
Gross Margin - 3 Yr. Avg. 46.2%
EBITDA Margin 15.3%
EBITDA Margin - 3 Yr. Avg. 16.4%
Operating Margin 11.6%
Oper. Margin - 3 Yr. Avg. 13.5%
Pre-Tax Margin 8.1%
Pre-Tax Margin - 3 Yr. Avg. 9.3%
Net Profit Margin 5.7%
Net Profit Margin - 3 Yr. Avg. 6.5%
Effective Tax Rate 27.2%
Eff/ Tax Rate - 3 Yr. Avg. 27.9%
Payout Ratio 69.6%

KOF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KOF stock intrinsic value calculation we used $10359.9389934 million for the last fiscal year's total revenue generated by Coca-Cola Femsa ADR. The default revenue input number comes from 0001 income statement of Coca-Cola Femsa 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 KOF stock valuation model: a) initial revenue growth rate of 20.9% 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 4.8%, whose default value for KOF is calculated based on our internal credit rating of Coca-Cola Femsa 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 Coca-Cola Femsa 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 KOF stock the variable cost ratio is equal to 86.4%.

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 KOF 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 9.8% for Coca-Cola Femsa ADR.

Corporate tax rate of 27% is the nominal tax rate for Coca-Cola Femsa 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 KOF 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 KOF are equal to 63.5%.

Life of production assets of 16.3 years is the average useful life of capital assets used in Coca-Cola Femsa 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 KOF is equal to -1.4%. 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 - $6231.26588714 million for Coca-Cola Femsa 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 18.296 million for Coca-Cola Femsa 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 Coca-Cola Femsa ADR at the current share price and the inputted number of shares is $1.1 billion.

RELATED COMPANIES Price Int.Val. Rating
FMX Fomento Econom 95.56 392.08  str.buy
PEP PepsiCo 105.63 118.49  hold
KO Coca-Cola 44.91 17.04  str.sell
COKE Coca-Cola Bott 162.27 303.09  str.buy

COMPANY NEWS

▶ Should You Buy Coca-Cola FEMSA SAB de CV (NYSE:KOF) Now?   [Jun-26-18 09:26AM  Simply Wall St.]
▶ PepsiCo Bottler Halts Operations in Mexican Town   [Jun-11-18 06:43PM  Bloomberg]
▶ Coca-Cola FEMSA: 1Q Earnings Snapshot   [Apr-26-18 11:24AM  Associated Press]
▶ New Strong Sell Stocks for April 4th   [Apr-04-18 09:18AM  Zacks]
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▶ New Strong Sell Stocks for January 23rd   [Jan-23-18 07:59AM  Zacks]
▶ Mexico's Femsa third-quarter profit jumps 385 pct   [Oct-26-17 06:04PM  Reuters]
▶ How To Invest In Mexican Stocks   [Sep-09-17 10:32AM  Motley Fool]
▶ 5 Discounted PEG Stocks for GARP Investors   [Aug-14-17 09:05AM  Zacks]
▶ New Strong Buy Stocks for August 9th   [Aug-09-17 07:50AM  Zacks]
▶ New Strong Buy Stocks for August 7th   [Aug-07-17 09:34AM  Zacks]
▶ Coca-Cola FEMSA posts 2Q profit   [Jul-24-17 07:37PM  Associated Press]
▶ Coca-Cola FEMSA Second Quarter 2017 Conference Call   [Jul-06-17 04:12PM  Marketwired]
▶ Coca-Cola FEMSA Scraps Plans for US Operations   [May-16-17 06:18PM  Investopedia]
▶ Coca-Cola FEMSA CEO: Tax sugar, not soft drinks   [May-10-17 09:41AM  American City Business Journals]
▶ 2017 First Quarter Results   [09:10AM  Marketwired]
▶ 3 Mexico Experts: Peso Rises, Week In Review   [Feb-24-17 06:13PM  Barrons.com]
▶ 3 Mexico Experts: Peso Rises, Week In Review   [06:13PM  at Barrons.com]
▶ 2016 Fourth Quarter and Full Year Results   [08:30AM  Marketwired]
▶ Unilever Stock Rises: Would It Spin Off EU Assets?   [Feb-22-17 03:56PM  at Barrons.com]

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