Intrinsic value of Liberty Global Cl A - LBTYA

Previous Close

$26.54

  Intrinsic Value

$15.81

stock screener

  Rating & Target

sell

-40%

Previous close

$26.54

 
Intrinsic value

$15.81

 
Up/down potential

-40%

 
Rating

sell

We calculate the intrinsic value of LBTYA 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 21.8

 

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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  15,350
  15,703
  16,107
  16,560
  17,062
  17,613
  18,212
  18,862
  19,561
  20,312
  21,115
  21,972
  22,884
  23,854
  24,883
  25,974
  27,128
  28,349
  29,638
  31,000
  32,437
  33,952
  35,550
  37,233
  39,005
  40,872
  42,836
  44,903
  47,078
  49,365
Variable operating expenses, $m
  11,640
  11,861
  12,113
  12,396
  12,710
  13,054
  13,429
  13,835
  14,272
  14,741
  13,195
  13,730
  14,300
  14,906
  15,549
  16,231
  16,952
  17,715
  18,521
  19,372
  20,270
  21,217
  22,215
  23,266
  24,374
  25,540
  26,768
  28,059
  29,418
  30,848
Fixed operating expenses, $m
  1,728
  1,766
  1,805
  1,845
  1,885
  1,927
  1,969
  2,013
  2,057
  2,102
  2,148
  2,196
  2,244
  2,293
  2,344
  2,395
  2,448
  2,502
  2,557
  2,613
  2,671
  2,729
  2,789
  2,851
  2,914
  2,978
  3,043
  3,110
  3,178
  3,248
Total operating expenses, $m
  13,368
  13,627
  13,918
  14,241
  14,595
  14,981
  15,398
  15,848
  16,329
  16,843
  15,343
  15,926
  16,544
  17,199
  17,893
  18,626
  19,400
  20,217
  21,078
  21,985
  22,941
  23,946
  25,004
  26,117
  27,288
  28,518
  29,811
  31,169
  32,596
  34,096
Operating income, $m
  1,981
  2,076
  2,188
  2,319
  2,466
  2,631
  2,814
  3,014
  3,232
  3,469
  5,772
  6,046
  6,340
  6,655
  6,990
  7,348
  7,728
  8,132
  8,561
  9,015
  9,497
  10,006
  10,546
  11,116
  11,718
  12,354
  13,025
  13,733
  14,481
  15,269
EBITDA, $m
  7,944
  8,128
  8,344
  8,590
  8,865
  9,171
  9,507
  9,872
  10,269
  10,697
  11,156
  11,649
  12,176
  12,737
  13,335
  13,971
  14,646
  15,361
  16,118
  16,920
  17,768
  18,664
  19,611
  20,610
  21,664
  22,776
  23,948
  25,184
  26,486
  27,857
Interest expense (income), $m
  0
  2,280
  2,338
  2,402
  2,476
  2,559
  2,650
  2,751
  2,860
  2,979
  3,106
  3,243
  3,390
  3,546
  3,713
  3,890
  4,078
  4,277
  4,487
  4,710
  4,945
  5,194
  5,456
  5,733
  6,024
  6,331
  6,655
  6,995
  7,354
  7,731
  8,128
Earnings before tax, $m
  -298
  -262
  -214
  -157
  -92
  -19
  63
  154
  254
  362
  2,529
  2,656
  2,794
  2,942
  3,100
  3,270
  3,451
  3,645
  3,851
  4,070
  4,303
  4,550
  4,813
  5,091
  5,387
  5,699
  6,030
  6,380
  6,750
  7,141
Tax expense, $m
  0
  0
  0
  0
  0
  0
  17
  42
  68
  98
  683
  717
  754
  794
  837
  883
  932
  984
  1,040
  1,099
  1,162
  1,229
  1,300
  1,375
  1,454
  1,539
  1,628
  1,723
  1,822
  1,928
Net income, $m
  -298
  -262
  -214
  -157
  -92
  -19
  46
  112
  185
  265
  1,846
  1,939
  2,040
  2,147
  2,263
  2,387
  2,519
  2,661
  2,811
  2,971
  3,141
  3,322
  3,514
  3,717
  3,932
  4,160
  4,402
  4,657
  4,927
  5,213

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
  58,812
  60,165
  61,711
  63,447
  65,371
  67,481
  69,779
  72,267
  74,947
  77,823
  80,900
  84,184
  87,680
  91,395
  95,338
  99,516
  103,938
  108,615
  113,557
  118,774
  124,280
  130,086
  136,206
  142,654
  149,445
  156,596
  164,122
  172,042
  180,374
  189,138
Adjusted assets (=assets-cash), $m
  58,812
  60,165
  61,711
  63,447
  65,371
  67,481
  69,779
  72,267
  74,947
  77,823
  80,900
  84,184
  87,680
  91,395
  95,338
  99,516
  103,938
  108,615
  113,557
  118,774
  124,280
  130,086
  136,206
  142,654
  149,445
  156,596
  164,122
  172,042
  180,374
  189,138
Revenue / Adjusted assets
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
Average production assets, $m
  39,142
  40,043
  41,072
  42,227
  43,507
  44,912
  46,442
  48,097
  49,881
  51,795
  53,843
  56,029
  58,355
  60,828
  63,452
  66,233
  69,176
  72,289
  75,578
  79,050
  82,715
  86,579
  90,652
  94,943
  99,463
  104,222
  109,231
  114,502
  120,048
  125,881
Working capital, $m
  -1,074
  -1,099
  -1,127
  -1,159
  -1,194
  -1,233
  -1,275
  -1,320
  -1,369
  -1,422
  -1,478
  -1,538
  -1,602
  -1,670
  -1,742
  -1,818
  -1,899
  -1,984
  -2,075
  -2,170
  -2,271
  -2,377
  -2,488
  -2,606
  -2,730
  -2,861
  -2,999
  -3,143
  -3,295
  -3,456
Total debt, $m
  43,295
  44,489
  45,852
  47,383
  49,080
  50,941
  52,968
  55,163
  57,526
  60,063
  62,777
  65,673
  68,757
  72,034
  75,511
  79,196
  83,097
  87,222
  91,580
  96,182
  101,038
  106,159
  111,557
  117,244
  123,234
  129,541
  136,179
  143,164
  150,513
  158,243
Total liabilities, $m
  51,872
  53,065
  54,429
  55,960
  57,657
  59,518
  61,545
  63,739
  66,103
  68,640
  71,354
  74,250
  77,334
  80,610
  84,088
  87,773
  91,673
  95,799
  100,157
  104,759
  109,615
  114,736
  120,134
  125,821
  131,811
  138,118
  144,756
  151,741
  159,090
  166,819
Total equity, $m
  6,940
  7,099
  7,282
  7,487
  7,714
  7,963
  8,234
  8,528
  8,844
  9,183
  9,546
  9,934
  10,346
  10,785
  11,250
  11,743
  12,265
  12,817
  13,400
  14,015
  14,665
  15,350
  16,072
  16,833
  17,635
  18,478
  19,366
  20,301
  21,284
  22,318
Total liabilities and equity, $m
  58,812
  60,164
  61,711
  63,447
  65,371
  67,481
  69,779
  72,267
  74,947
  77,823
  80,900
  84,184
  87,680
  91,395
  95,338
  99,516
  103,938
  108,616
  113,557
  118,774
  124,280
  130,086
  136,206
  142,654
  149,446
  156,596
  164,122
  172,042
  180,374
  189,137
Debt-to-equity ratio
  6.240
  6.270
  6.300
  6.330
  6.360
  6.400
  6.430
  6.470
  6.500
  6.540
  6.580
  6.610
  6.650
  6.680
  6.710
  6.740
  6.780
  6.810
  6.830
  6.860
  6.890
  6.920
  6.940
  6.970
  6.990
  7.010
  7.030
  7.050
  7.070
  7.090
Adjusted equity ratio
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118
  0.118

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -298
  -262
  -214
  -157
  -92
  -19
  46
  112
  185
  265
  1,846
  1,939
  2,040
  2,147
  2,263
  2,387
  2,519
  2,661
  2,811
  2,971
  3,141
  3,322
  3,514
  3,717
  3,932
  4,160
  4,402
  4,657
  4,927
  5,213
Depreciation, amort., depletion, $m
  5,963
  6,053
  6,155
  6,271
  6,399
  6,540
  6,692
  6,858
  7,036
  7,228
  5,384
  5,603
  5,836
  6,083
  6,345
  6,623
  6,918
  7,229
  7,558
  7,905
  8,271
  8,658
  9,065
  9,494
  9,946
  10,422
  10,923
  11,450
  12,005
  12,588
Funds from operations, $m
  5,664
  5,790
  5,941
  6,114
  6,307
  6,521
  6,739
  6,970
  7,222
  7,492
  7,230
  7,542
  7,875
  8,230
  8,608
  9,010
  9,437
  9,890
  10,369
  10,876
  11,413
  11,980
  12,579
  13,211
  13,879
  14,583
  15,325
  16,107
  16,932
  17,801
Change in working capital, $m
  -21
  -25
  -28
  -32
  -35
  -39
  -42
  -45
  -49
  -53
  -56
  -60
  -64
  -68
  -72
  -76
  -81
  -85
  -90
  -95
  -101
  -106
  -112
  -118
  -124
  -131
  -138
  -145
  -152
  -160
Cash from operations, $m
  5,685
  5,815
  5,970
  6,145
  6,342
  6,559
  6,781
  7,016
  7,271
  7,545
  7,286
  7,602
  7,939
  8,298
  8,680
  9,087
  9,518
  9,975
  10,459
  10,971
  11,513
  12,086
  12,691
  13,329
  14,003
  14,713
  15,462
  16,252
  17,084
  17,961
Maintenance CAPEX, $m
  -3,838
  -3,914
  -4,004
  -4,107
  -4,223
  -4,351
  -4,491
  -4,644
  -4,810
  -4,988
  -5,180
  -5,384
  -5,603
  -5,836
  -6,083
  -6,345
  -6,623
  -6,918
  -7,229
  -7,558
  -7,905
  -8,271
  -8,658
  -9,065
  -9,494
  -9,946
  -10,422
  -10,923
  -11,450
  -12,005
New CAPEX, $m
  -765
  -900
  -1,029
  -1,155
  -1,280
  -1,405
  -1,530
  -1,656
  -1,784
  -1,914
  -2,048
  -2,185
  -2,327
  -2,473
  -2,624
  -2,781
  -2,943
  -3,113
  -3,289
  -3,473
  -3,664
  -3,864
  -4,073
  -4,292
  -4,520
  -4,759
  -5,009
  -5,271
  -5,545
  -5,833
Cash from investing activities, $m
  -4,603
  -4,814
  -5,033
  -5,262
  -5,503
  -5,756
  -6,021
  -6,300
  -6,594
  -6,902
  -7,228
  -7,569
  -7,930
  -8,309
  -8,707
  -9,126
  -9,566
  -10,031
  -10,518
  -11,031
  -11,569
  -12,135
  -12,731
  -13,357
  -14,014
  -14,705
  -15,431
  -16,194
  -16,995
  -17,838
Free cash flow, $m
  1,082
  1,001
  936
  883
  839
  804
  760
  716
  677
  642
  59
  32
  9
  -10
  -26
  -39
  -49
  -55
  -59
  -59
  -56
  -50
  -41
  -28
  -12
  8
  31
  58
  89
  124
Issuance/(repayment) of debt, $m
  1,081
  1,193
  1,364
  1,531
  1,697
  1,861
  2,027
  2,194
  2,364
  2,537
  2,714
  2,896
  3,083
  3,277
  3,477
  3,685
  3,901
  4,125
  4,359
  4,602
  4,856
  5,121
  5,398
  5,687
  5,990
  6,307
  6,638
  6,985
  7,349
  7,730
Issuance/(repurchase) of shares, $m
  433
  422
  396
  362
  319
  268
  225
  181
  131
  75
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,514
  1,615
  1,760
  1,893
  2,016
  2,129
  2,252
  2,375
  2,495
  2,612
  2,714
  2,896
  3,083
  3,277
  3,477
  3,685
  3,901
  4,125
  4,359
  4,602
  4,856
  5,121
  5,398
  5,687
  5,990
  6,307
  6,638
  6,985
  7,349
  7,730
Total cash flow (excl. dividends), $m
  2,596
  2,615
  2,697
  2,776
  2,855
  2,933
  3,012
  3,091
  3,172
  3,254
  2,773
  2,928
  3,093
  3,267
  3,451
  3,646
  3,852
  4,070
  4,300
  4,543
  4,800
  5,071
  5,357
  5,659
  5,978
  6,315
  6,669
  7,043
  7,438
  7,853
Retained Cash Flow (-), $m
  -433
  -422
  -396
  -362
  -319
  -268
  -271
  -294
  -316
  -339
  -363
  -387
  -413
  -438
  -465
  -493
  -522
  -552
  -583
  -616
  -650
  -685
  -722
  -761
  -801
  -844
  -888
  -935
  -983
  -1,034
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
  181
  184
  188
  193
  199
  205
  211
  219
  226
  235
  244
  253
  264
  275
  286
  299
  312
  326
  340
  356
  372
  389
  407
  427
  447
  468
  490
  514
  539
  565
Cash available for distribution, $m
  2,163
  2,194
  2,300
  2,414
  2,535
  2,665
  2,741
  2,798
  2,856
  2,915
  2,410
  2,541
  2,680
  2,828
  2,986
  3,153
  3,330
  3,518
  3,717
  3,927
  4,150
  4,386
  4,635
  4,899
  5,177
  5,471
  5,781
  6,109
  6,454
  6,819
Discount rate, %
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.84
  17.69
  18.57
  19.50
  20.47
  21.50
  22.57
  23.70
  24.88
  26.13
  27.44
  28.81
  30.25
  31.76
  33.35
  35.02
  36.77
  38.60
  40.53
  42.56
  44.69
  46.92
PV of cash for distribution, $m
  1,942
  1,750
  1,612
  1,470
  1,325
  1,180
  1,013
  851
  704
  572
  370
  300
  238
  185
  141
  105
  76
  54
  37
  25
  16
  10
  6
  4
  2
  1
  1
  0
  0
  0
Current shareholders' claim on cash, %
  98.1
  96.2
  94.6
  93.1
  91.9
  90.9
  90.1
  89.5
  89.1
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8
  88.8

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, mobile, and other communications services to residential customers and businesses internationally. It offers video services, including digital video programming and audio services starting with a basic video service, video-on-demand, electronic programming guide, various premium channel packages, digital video recorders, various mobile applications, set-top boxes, and pay-per-view programming. The company provides entertainment, sports, movies, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. It also offers Wi-Fi and Internet services, such as email, address book, and parental controls; security; online storage solutions and Web spaces; and Connect Box, a connectivity device that delivers in-home Wi-Fi coverage. In addition, the company provides multi-featured and circuit-switched telephony services; and mobile services comprising voice, short message service, and Internet access. Further, it offers voice, broadband Internet, data, video, wireless, and cloud services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

FINANCIAL RATIOS  of  Liberty Global Cl A (LBTYA)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

LBTYA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LBTYA stock intrinsic value calculation we used $15049 million for the last fiscal year's total revenue generated by Liberty Global Cl A. The default revenue input number comes from 2017 income statement of Liberty Global Cl 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 LBTYA stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 11.4%, whose default value for LBTYA is calculated based on our internal credit rating of Liberty Global Cl 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 Liberty Global Cl 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 LBTYA stock the variable cost ratio is equal to 76.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1691 million in the base year in the intrinsic value calculation for LBTYA 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 Liberty Global Cl A.

Corporate tax rate of 27% is the nominal tax rate for Liberty Global Cl 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 LBTYA stock is equal to 1.2%.

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 LBTYA are equal to 255%.

Life of production assets of 10 years is the average useful life of capital assets used in Liberty Global Cl 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 LBTYA is equal to -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 - $6805 million for Liberty Global Cl 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 821 million for Liberty Global Cl 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 Liberty Global Cl A at the current share price and the inputted number of shares is $21.8 billion.

COMPANY NEWS

▶ PRESS DIGEST- British Business - Aug 17   [Aug-16-18 08:12PM  Reuters]
▶ NYSE trader: Expect great things from Cisco earnings today   [Aug-15-18 02:46PM  Yahoo Finance Video]
▶ MARKETS: Here's why stocks are selling off right now   [03:01PM  Yahoo Finance Video]
▶ 8 Favorite Media Stocks Investors Should Tune Into Now   [Aug-09-18 03:43PM  TheStreet.com]
▶ Liberty Global Reports Second Quarter 2018 Results   [Aug-08-18 04:30PM  Business Wire]
▶ MARKETS: Are tech stocks overvalued? Goldman vs. Morgan Stanley   [Aug-07-18 03:36PM  Yahoo Finance Video]
▶ MARKETS: Here's why tech stocks are getting whacked again   [Jul-30-18 01:25PM  Yahoo Finance Video]
▶ NYSE trader: These tech giants hurt investors this earnings season   [Jul-27-18 03:46PM  Yahoo Finance Video]
▶ Deals of the day-Mergers and acquisitions   [Jul-09-18 04:00PM  Reuters]
▶ TiVo CEO is bolting after 8 months to join this Denver-based company   [Jul-05-18 03:14PM  American City Business Journals]
▶ [$$] TiVo CEO Enrique Rodriguez Resigns   [11:04AM  The Wall Street Journal]
▶ TiVo CEO leaves after just 8 months on the job   [10:20AM  American City Business Journals]
▶ Unitymedia CEO Schüler appointed Virgin Media COO   [Jun-28-18 10:05AM  Reuters]
▶ BT's Fundamental Value Is Overlooked   [Jun-22-18 07:00AM  Morningstar]
▶ [$$] Vodafone boosts outgoing CEO Colaos pay packet   [Jun-01-18 01:34AM  Financial Times]
▶ Liberty Global CEO Buys $3 Million in Stock   [May-31-18 03:21PM  Barrons.com]
▶ Bill Gates Discloses 5% Stake in Liberty Global   [May-18-18 05:26PM  Barrons.com]
▶ PRESS DIGEST- British Business - May 18   [May-17-18 08:34PM  Reuters]
▶ BT fights back with new consumer strategy   [May-16-18 07:09AM  Reuters]
▶ Vodafone Group Plc Shares Fall as CEO Prepares to Step Down   [May-15-18 11:46AM  InvestorPlace]
▶ [$$] US sellers add to questions over peak Europe   [May-10-18 11:57PM  Financial Times]
▶ [$$] How John Malone Should Use His European Windfall   [09:34AM  The Wall Street Journal]
▶ Liberty Global, Vodafone strike $22.7 billion deal   [08:49AM  American City Business Journals]
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