Intrinsic value of Liberty Global Cl A - LBTYA

Previous Close

$24.72

  Intrinsic Value

$154.72

stock screener

  Rating & Target

str. buy

+526%

Previous close

$24.72

 
Intrinsic value

$154.72

 
Up/down potential

+526%

 
Rating

str. buy

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 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 5.4

 

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, %
  9.70
  9.23
  8.81
  8.43
  8.08
  7.78
  7.50
  7.25
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.08
  5.97
  5.87
  5.78
  5.71
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
  5.25
  5.22
Revenue, $m
  16,509
  18,032
  19,621
  21,274
  22,993
  24,781
  26,639
  28,570
  30,577
  32,662
  34,831
  37,086
  39,433
  41,875
  44,419
  47,070
  49,833
  52,716
  55,723
  58,863
  62,143
  65,570
  69,152
  72,897
  76,815
  80,915
  85,207
  89,700
  94,406
  99,335
Variable operating expenses, $m
  12,424
  13,438
  14,495
  15,596
  16,740
  17,930
  19,167
  20,452
  21,788
  23,176
  23,184
  24,685
  26,247
  27,873
  29,566
  31,331
  33,170
  35,089
  37,090
  39,180
  41,363
  43,644
  46,028
  48,522
  51,130
  53,859
  56,715
  59,706
  62,838
  66,119
Fixed operating expenses, $m
  1,724
  1,762
  1,801
  1,840
  1,881
  1,922
  1,965
  2,008
  2,052
  2,097
  2,143
  2,190
  2,239
  2,288
  2,338
  2,390
  2,442
  2,496
  2,551
  2,607
  2,664
  2,723
  2,783
  2,844
  2,907
  2,971
  3,036
  3,103
  3,171
  3,241
Total operating expenses, $m
  14,148
  15,200
  16,296
  17,436
  18,621
  19,852
  21,132
  22,460
  23,840
  25,273
  25,327
  26,875
  28,486
  30,161
  31,904
  33,721
  35,612
  37,585
  39,641
  41,787
  44,027
  46,367
  48,811
  51,366
  54,037
  56,830
  59,751
  62,809
  66,009
  69,360
Operating income, $m
  2,361
  2,832
  3,325
  3,838
  4,372
  4,929
  5,508
  6,110
  6,737
  7,389
  9,504
  10,210
  10,947
  11,715
  12,515
  13,350
  14,221
  15,131
  16,082
  17,076
  18,115
  19,202
  20,340
  21,532
  22,779
  24,086
  25,456
  26,891
  28,397
  29,975
EBITDA, $m
  7,761
  8,598
  9,472
  10,382
  11,330
  12,315
  13,341
  14,407
  15,515
  16,668
  17,868
  19,117
  20,417
  21,771
  23,182
  24,654
  26,189
  27,791
  29,464
  31,212
  33,039
  34,949
  36,947
  39,038
  41,226
  43,518
  45,918
  48,433
  51,068
  53,830
Interest expense (income), $m
  0
  1,766
  2,036
  2,314
  2,604
  2,905
  3,219
  3,545
  3,884
  4,237
  4,603
  4,984
  5,379
  5,791
  6,219
  6,665
  7,129
  7,613
  8,117
  8,643
  9,192
  9,765
  10,363
  10,989
  11,642
  12,326
  13,041
  13,789
  14,572
  15,392
  16,251
Earnings before tax, $m
  595
  796
  1,011
  1,234
  1,467
  1,710
  1,962
  2,226
  2,500
  2,786
  4,520
  4,831
  5,156
  5,496
  5,850
  6,221
  6,609
  7,014
  7,439
  7,884
  8,350
  8,839
  9,352
  9,889
  10,453
  11,045
  11,667
  12,319
  13,005
  13,725
Tax expense, $m
  161
  215
  273
  333
  396
  462
  530
  601
  675
  752
  1,220
  1,304
  1,392
  1,484
  1,580
  1,680
  1,784
  1,894
  2,009
  2,129
  2,255
  2,387
  2,525
  2,670
  2,822
  2,982
  3,150
  3,326
  3,511
  3,706
Net income, $m
  434
  581
  738
  901
  1,071
  1,248
  1,433
  1,625
  1,825
  2,034
  3,300
  3,527
  3,764
  4,012
  4,271
  4,541
  4,824
  5,120
  5,431
  5,755
  6,096
  6,453
  6,827
  7,219
  7,631
  8,063
  8,517
  8,993
  9,493
  10,019

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
  63,252
  69,090
  75,174
  81,509
  88,098
  94,948
  102,066
  109,464
  117,152
  125,143
  133,451
  142,092
  151,082
  160,442
  170,189
  180,345
  190,933
  201,976
  213,500
  225,530
  238,096
  251,225
  264,949
  279,300
  294,312
  310,021
  326,463
  343,678
  361,708
  380,594
Adjusted assets (=assets-cash), $m
  63,252
  69,090
  75,174
  81,509
  88,098
  94,948
  102,066
  109,464
  117,152
  125,143
  133,451
  142,092
  151,082
  160,442
  170,189
  180,345
  190,933
  201,976
  213,500
  225,530
  238,096
  251,225
  264,949
  279,300
  294,312
  310,021
  326,463
  343,678
  361,708
  380,594
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
  26,562
  29,014
  31,569
  34,230
  36,997
  39,873
  42,863
  45,969
  49,198
  52,554
  56,043
  59,671
  63,447
  67,377
  71,471
  75,736
  80,182
  84,820
  89,659
  94,711
  99,988
  105,502
  111,265
  117,292
  123,596
  130,193
  137,098
  144,327
  151,899
  159,830
Working capital, $m
  -4,523
  -4,941
  -5,376
  -5,829
  -6,300
  -6,790
  -7,299
  -7,828
  -8,378
  -8,949
  -9,544
  -10,162
  -10,805
  -11,474
  -12,171
  -12,897
  -13,654
  -14,444
  -15,268
  -16,129
  -17,027
  -17,966
  -18,948
  -19,974
  -21,047
  -22,171
  -23,347
  -24,578
  -25,867
  -27,218
Total debt, $m
  37,700
  42,849
  48,215
  53,802
  59,614
  65,655
  71,934
  78,459
  85,240
  92,288
  99,615
  107,237
  115,166
  123,421
  132,018
  140,976
  150,315
  160,055
  170,219
  180,829
  191,912
  203,492
  215,597
  228,254
  241,495
  255,350
  269,852
  285,036
  300,938
  317,596
Total liabilities, $m
  55,788
  60,937
  66,304
  71,891
  77,702
  83,744
  90,023
  96,547
  103,328
  110,376
  117,704
  125,325
  133,255
  141,509
  150,106
  159,064
  168,403
  178,143
  188,307
  198,918
  210,000
  221,580
  233,685
  246,342
  259,583
  273,438
  287,940
  303,124
  319,026
  335,684
Total equity, $m
  7,464
  8,153
  8,871
  9,618
  10,396
  11,204
  12,044
  12,917
  13,824
  14,767
  15,747
  16,767
  17,828
  18,932
  20,082
  21,281
  22,530
  23,833
  25,193
  26,613
  28,095
  29,645
  31,264
  32,957
  34,729
  36,582
  38,523
  40,554
  42,682
  44,910
Total liabilities and equity, $m
  63,252
  69,090
  75,175
  81,509
  88,098
  94,948
  102,067
  109,464
  117,152
  125,143
  133,451
  142,092
  151,083
  160,441
  170,188
  180,345
  190,933
  201,976
  213,500
  225,531
  238,095
  251,225
  264,949
  279,299
  294,312
  310,020
  326,463
  343,678
  361,708
  380,594
Debt-to-equity ratio
  5.050
  5.260
  5.440
  5.590
  5.730
  5.860
  5.970
  6.070
  6.170
  6.250
  6.330
  6.400
  6.460
  6.520
  6.570
  6.620
  6.670
  6.720
  6.760
  6.790
  6.830
  6.860
  6.900
  6.930
  6.950
  6.980
  7.010
  7.030
  7.050
  7.070
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
  434
  581
  738
  901
  1,071
  1,248
  1,433
  1,625
  1,825
  2,034
  3,300
  3,527
  3,764
  4,012
  4,271
  4,541
  4,824
  5,120
  5,431
  5,755
  6,096
  6,453
  6,827
  7,219
  7,631
  8,063
  8,517
  8,993
  9,493
  10,019
Depreciation, amort., depletion, $m
  5,400
  5,766
  6,147
  6,544
  6,957
  7,387
  7,833
  8,297
  8,778
  9,279
  8,365
  8,906
  9,470
  10,056
  10,667
  11,304
  11,967
  12,660
  13,382
  14,136
  14,924
  15,747
  16,607
  17,506
  18,447
  19,432
  20,462
  21,541
  22,671
  23,855
Funds from operations, $m
  5,834
  6,347
  6,885
  7,445
  8,028
  8,635
  9,265
  9,921
  10,603
  11,313
  11,664
  12,433
  13,234
  14,068
  14,938
  15,845
  16,792
  17,780
  18,813
  19,891
  21,019
  22,199
  23,433
  24,725
  26,078
  27,495
  28,979
  30,535
  32,165
  33,874
Change in working capital, $m
  -400
  -418
  -435
  -453
  -471
  -490
  -509
  -529
  -550
  -571
  -594
  -618
  -643
  -669
  -697
  -726
  -757
  -790
  -824
  -860
  -899
  -939
  -981
  -1,026
  -1,074
  -1,123
  -1,176
  -1,231
  -1,289
  -1,351
Cash from operations, $m
  6,234
  6,765
  7,320
  7,898
  8,499
  9,124
  9,774
  10,450
  11,153
  11,885
  12,258
  13,051
  13,877
  14,737
  15,635
  16,571
  17,549
  18,570
  19,637
  20,752
  21,918
  23,138
  24,415
  25,752
  27,152
  28,618
  30,155
  31,766
  33,454
  35,225
Maintenance CAPEX, $m
  -3,613
  -3,965
  -4,330
  -4,712
  -5,109
  -5,522
  -5,951
  -6,397
  -6,861
  -7,343
  -7,844
  -8,365
  -8,906
  -9,470
  -10,056
  -10,667
  -11,304
  -11,967
  -12,660
  -13,382
  -14,136
  -14,924
  -15,747
  -16,607
  -17,506
  -18,447
  -19,432
  -20,462
  -21,541
  -22,671
New CAPEX, $m
  -2,355
  -2,452
  -2,555
  -2,660
  -2,767
  -2,877
  -2,990
  -3,107
  -3,229
  -3,356
  -3,489
  -3,629
  -3,776
  -3,930
  -4,093
  -4,265
  -4,446
  -4,638
  -4,839
  -5,052
  -5,277
  -5,514
  -5,763
  -6,027
  -6,304
  -6,597
  -6,905
  -7,230
  -7,571
  -7,931
Cash from investing activities, $m
  -5,968
  -6,417
  -6,885
  -7,372
  -7,876
  -8,399
  -8,941
  -9,504
  -10,090
  -10,699
  -11,333
  -11,994
  -12,682
  -13,400
  -14,149
  -14,932
  -15,750
  -16,605
  -17,499
  -18,434
  -19,413
  -20,438
  -21,510
  -22,634
  -23,810
  -25,044
  -26,337
  -27,692
  -29,112
  -30,602
Free cash flow, $m
  266
  349
  434
  526
  623
  726
  834
  946
  1,064
  1,186
  926
  1,058
  1,195
  1,337
  1,485
  1,639
  1,799
  1,965
  2,138
  2,318
  2,505
  2,701
  2,905
  3,118
  3,341
  3,574
  3,818
  4,074
  4,342
  4,622
Issuance/(repayment) of debt, $m
  4,996
  5,149
  5,367
  5,587
  5,811
  6,042
  6,279
  6,525
  6,781
  7,048
  7,328
  7,621
  7,930
  8,255
  8,597
  8,958
  9,339
  9,740
  10,164
  10,611
  11,083
  11,580
  12,105
  12,658
  13,241
  13,855
  14,502
  15,184
  15,902
  16,658
Issuance/(repurchase) of shares, $m
  225
  107
  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  
  5,221
  5,256
  5,367
  5,587
  5,811
  6,042
  6,279
  6,525
  6,781
  7,048
  7,328
  7,621
  7,930
  8,255
  8,597
  8,958
  9,339
  9,740
  10,164
  10,611
  11,083
  11,580
  12,105
  12,658
  13,241
  13,855
  14,502
  15,184
  15,902
  16,658
Total cash flow (excl. dividends), $m
  5,487
  5,605
  5,801
  6,113
  6,435
  6,768
  7,113
  7,471
  7,844
  8,234
  8,253
  8,679
  9,125
  9,592
  10,082
  10,597
  11,137
  11,705
  12,302
  12,929
  13,588
  14,281
  15,010
  15,776
  16,582
  17,429
  18,321
  19,258
  20,243
  21,280
Retained Cash Flow (-), $m
  -659
  -689
  -718
  -747
  -777
  -808
  -840
  -873
  -907
  -943
  -980
  -1,020
  -1,061
  -1,104
  -1,150
  -1,198
  -1,249
  -1,303
  -1,360
  -1,420
  -1,483
  -1,549
  -1,619
  -1,693
  -1,771
  -1,854
  -1,940
  -2,031
  -2,127
  -2,229
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
  4,828
  4,916
  5,083
  5,366
  5,657
  5,959
  6,273
  6,598
  6,937
  7,291
  7,273
  7,659
  8,064
  8,488
  8,932
  9,398
  9,888
  10,402
  10,942
  11,509
  12,105
  12,732
  13,390
  14,083
  14,810
  15,576
  16,380
  17,226
  18,116
  19,051
Discount rate, %
  10.40
  10.92
  11.47
  12.04
  12.64
  13.27
  13.94
  14.63
  15.37
  16.13
  16.94
  17.79
  18.68
  19.61
  20.59
  21.62
  22.70
  23.84
  25.03
  26.28
  27.59
  28.97
  30.42
  31.94
  33.54
  35.22
  36.98
  38.83
  40.77
  42.81
PV of cash for distribution, $m
  4,373
  3,996
  3,670
  3,405
  3,120
  2,821
  2,516
  2,213
  1,916
  1,634
  1,300
  1,074
  871
  692
  539
  410
  305
  222
  157
  108
  73
  47
  30
  18
  11
  6
  3
  2
  1
  0
Current shareholders' claim on cash, %
  96.0
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3
  94.3

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 $15048.9 million for the last fiscal year's total revenue generated by Liberty Global Cl A. The default revenue input number comes from 0001 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 9.7% 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 10.4%, 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 $1687 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 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 LBTYA are equal to 160.9%.

Life of production assets of 6.7 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 -27.4%. 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 - $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 216.973 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 $5.4 billion.

COMPANY NEWS

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▶ [$$] Virgin Media trumps BT to run UK telco regulators network   [Nov-11-18 11:48PM  Financial Times]
▶ Inside John Malones World   [Nov-10-18 08:15AM  Barrons.com]
▶ Liberty Global Reports Third Quarter 2018 Results   [Nov-07-18 04:15PM  Business Wire]
▶ [$$] ITV poaches Micro Focus finance chief   [Nov-05-18 02:33AM  Financial Times]
▶ Plume and Samsung Launch OpenSync Open Source Initiative   [Oct-23-18 06:46AM  PR Newswire]
▶ [$$] EU Launches Probe Into Vodafone-Liberty Global Deal   [Oct-22-18 10:09AM  The Wall Street Journal]
▶ Stocks That Fell to 3-Year Lows in the Week of Oct. 5   [Oct-07-18 11:36AM  GuruFocus.com]
▶ [$$] Vodafone raising hybrid bonds to back Liberty deal   [Sep-26-18 07:53AM  Financial Times]
▶ Liberty Global CEO Fries on Comcast and Investment Plans   [Sep-25-18 06:50PM  Bloomberg Video]
▶ 5 Stocks Bill Gates and Warren Buffett Both Own   [Sep-07-18 07:03PM  GuruFocus.com]
▶ MARKETS: Here's precisely why stocks are dropping today   [Aug-30-18 02:14PM  Yahoo Finance Video]
▶ 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]

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