Intrinsic value of Liberty Expedia Holdings, Inc. - LEXEB

Previous Close

$42.56

  Intrinsic Value

$2.92

stock screener

  Rating & Target

str. sell

-93%

Previous close

$42.56

 
Intrinsic value

$2.92

 
Up/down potential

-93%

 
Rating

str. sell

We calculate the intrinsic value of LEXEB 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 2.4

 

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, %
  9.40
  8.96
  8.56
  8.21
  7.89
  7.60
  7.34
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
Revenue, $m
  12,525
  13,647
  14,816
  16,032
  17,297
  18,611
  19,977
  21,396
  22,871
  24,404
  25,999
  27,658
  29,385
  31,182
  33,055
  35,008
  37,043
  39,167
  41,385
  43,700
  46,118
  48,646
  51,290
  54,054
  56,946
  59,974
  63,143
  66,462
  69,938
  73,580
Variable operating expenses, $m
  15,937
  17,143
  18,399
  19,706
  21,065
  22,477
  23,945
  25,470
  27,055
  28,703
  27,940
  29,723
  31,578
  33,510
  35,523
  37,621
  39,809
  42,092
  44,474
  46,962
  49,562
  52,278
  55,119
  58,090
  61,198
  64,451
  67,857
  71,423
  75,159
  79,073
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
  15,937
  17,143
  18,399
  19,706
  21,065
  22,477
  23,945
  25,470
  27,055
  28,703
  27,940
  29,723
  31,578
  33,510
  35,523
  37,621
  39,809
  42,092
  44,474
  46,962
  49,562
  52,278
  55,119
  58,090
  61,198
  64,451
  67,857
  71,423
  75,159
  79,073
Operating income, $m
  -3,412
  -3,496
  -3,583
  -3,674
  -3,768
  -3,866
  -3,968
  -4,074
  -4,184
  -4,299
  -1,941
  -2,065
  -2,194
  -2,328
  -2,468
  -2,614
  -2,766
  -2,924
  -3,090
  -3,263
  -3,443
  -3,632
  -3,829
  -4,036
  -4,252
  -4,478
  -4,714
  -4,962
  -5,221
  -5,493
EBITDA, $m
  160
  175
  190
  205
  221
  238
  256
  274
  293
  313
  333
  354
  376
  399
  423
  448
  474
  502
  530
  560
  591
  623
  657
  692
  729
  768
  809
  851
  896
  942
Interest expense (income), $m
  0
  229
  332
  484
  642
  807
  978
  1,156
  1,341
  1,533
  1,733
  1,940
  2,156
  2,381
  2,614
  2,858
  3,111
  3,376
  3,651
  3,939
  4,239
  4,552
  4,880
  5,222
  5,580
  5,954
  6,346
  6,755
  7,184
  7,634
  8,104
Earnings before tax, $m
  -3,641
  -3,828
  -4,067
  -4,316
  -4,575
  -4,844
  -5,124
  -5,415
  -5,717
  -6,031
  -3,881
  -4,221
  -4,574
  -4,942
  -5,326
  -5,725
  -6,141
  -6,575
  -7,028
  -7,501
  -7,995
  -8,512
  -9,051
  -9,615
  -10,205
  -10,823
  -11,469
  -12,146
  -12,855
  -13,598
Tax expense, $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
Net income, $m
  -3,641
  -3,828
  -4,067
  -4,316
  -4,575
  -4,844
  -5,124
  -5,415
  -5,717
  -6,031
  -3,881
  -4,221
  -4,574
  -4,942
  -5,326
  -5,725
  -6,141
  -6,575
  -7,028
  -7,501
  -7,995
  -8,512
  -9,051
  -9,615
  -10,205
  -10,823
  -11,469
  -12,146
  -12,855
  -13,598

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
  34,889
  38,015
  41,271
  44,658
  48,180
  51,841
  55,645
  59,599
  63,708
  67,979
  72,421
  77,042
  81,851
  86,859
  92,076
  97,514
  103,185
  109,102
  115,277
  121,726
  128,464
  135,505
  142,868
  150,568
  158,625
  167,058
  175,885
  185,130
  194,812
  204,957
Adjusted assets (=assets-cash), $m
  34,889
  38,015
  41,271
  44,658
  48,180
  51,841
  55,645
  59,599
  63,708
  67,979
  72,421
  77,042
  81,851
  86,859
  92,076
  97,514
  103,185
  109,102
  115,277
  121,726
  128,464
  135,505
  142,868
  150,568
  158,625
  167,058
  175,885
  185,130
  194,812
  204,957
Revenue / Adjusted assets
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
  0.359
Average production assets, $m
  15,118
  16,472
  17,883
  19,351
  20,877
  22,463
  24,112
  25,825
  27,605
  29,456
  31,381
  33,383
  35,467
  37,637
  39,898
  42,254
  44,712
  47,275
  49,951
  52,746
  55,665
  58,716
  61,907
  65,243
  68,734
  72,388
  76,213
  80,219
  84,415
  88,810
Working capital, $m
  -5,837
  -6,360
  -6,904
  -7,471
  -8,060
  -8,673
  -9,309
  -9,971
  -10,658
  -11,372
  -12,116
  -12,889
  -13,693
  -14,531
  -15,404
  -16,314
  -17,262
  -18,252
  -19,285
  -20,364
  -21,491
  -22,669
  -23,901
  -25,189
  -26,537
  -27,948
  -29,425
  -30,971
  -32,591
  -34,288
Total debt, $m
  6,147
  8,961
  11,891
  14,939
  18,109
  21,404
  24,828
  28,386
  32,084
  35,928
  39,926
  44,085
  48,413
  52,920
  57,616
  62,510
  67,614
  72,938
  78,497
  84,301
  90,364
  96,702
  103,328
  110,259
  117,510
  125,099
  133,044
  141,364
  150,078
  159,208
Total liabilities, $m
  31,400
  34,214
  37,144
  40,192
  43,362
  46,657
  50,081
  53,639
  57,337
  61,181
  65,179
  69,338
  73,666
  78,173
  82,869
  87,763
  92,867
  98,191
  103,750
  109,554
  115,617
  121,955
  128,581
  135,512
  142,763
  150,352
  158,297
  166,617
  175,331
  184,461
Total equity, $m
  3,489
  3,802
  4,127
  4,466
  4,818
  5,184
  5,565
  5,960
  6,371
  6,798
  7,242
  7,704
  8,185
  8,686
  9,208
  9,751
  10,319
  10,910
  11,528
  12,173
  12,846
  13,551
  14,287
  15,057
  15,863
  16,706
  17,589
  18,513
  19,481
  20,496
Total liabilities and equity, $m
  34,889
  38,016
  41,271
  44,658
  48,180
  51,841
  55,646
  59,599
  63,708
  67,979
  72,421
  77,042
  81,851
  86,859
  92,077
  97,514
  103,186
  109,101
  115,278
  121,727
  128,463
  135,506
  142,868
  150,569
  158,626
  167,058
  175,886
  185,130
  194,812
  204,957
Debt-to-equity ratio
  1.760
  2.360
  2.880
  3.350
  3.760
  4.130
  4.460
  4.760
  5.040
  5.290
  5.510
  5.720
  5.910
  6.090
  6.260
  6.410
  6.550
  6.690
  6.810
  6.930
  7.030
  7.140
  7.230
  7.320
  7.410
  7.490
  7.560
  7.640
  7.700
  7.770
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -3,641
  -3,828
  -4,067
  -4,316
  -4,575
  -4,844
  -5,124
  -5,415
  -5,717
  -6,031
  -3,881
  -4,221
  -4,574
  -4,942
  -5,326
  -5,725
  -6,141
  -6,575
  -7,028
  -7,501
  -7,995
  -8,512
  -9,051
  -9,615
  -10,205
  -10,823
  -11,469
  -12,146
  -12,855
  -13,598
Depreciation, amort., depletion, $m
  3,572
  3,671
  3,773
  3,879
  3,990
  4,105
  4,224
  4,348
  4,477
  4,611
  2,274
  2,419
  2,570
  2,727
  2,891
  3,062
  3,240
  3,426
  3,620
  3,822
  4,034
  4,255
  4,486
  4,728
  4,981
  5,246
  5,523
  5,813
  6,117
  6,436
Funds from operations, $m
  -69
  -157
  -294
  -437
  -585
  -740
  -900
  -1,067
  -1,240
  -1,420
  -1,607
  -1,802
  -2,004
  -2,215
  -2,434
  -2,663
  -2,901
  -3,150
  -3,409
  -3,679
  -3,962
  -4,257
  -4,565
  -4,888
  -5,225
  -5,578
  -5,947
  -6,333
  -6,738
  -7,162
Change in working capital, $m
  -502
  -523
  -545
  -567
  -589
  -612
  -636
  -661
  -687
  -715
  -743
  -773
  -805
  -838
  -873
  -910
  -949
  -990
  -1,033
  -1,079
  -1,127
  -1,178
  -1,232
  -1,288
  -1,348
  -1,411
  -1,477
  -1,547
  -1,620
  -1,697
Cash from operations, $m
  433
  366
  251
  130
  4
  -127
  -264
  -405
  -553
  -705
  -864
  -1,029
  -1,200
  -1,377
  -1,562
  -1,753
  -1,952
  -2,160
  -2,376
  -2,600
  -2,835
  -3,079
  -3,333
  -3,599
  -3,877
  -4,167
  -4,470
  -4,787
  -5,118
  -5,465
Maintenance CAPEX, $m
  -1,001
  -1,096
  -1,194
  -1,296
  -1,402
  -1,513
  -1,628
  -1,747
  -1,871
  -2,000
  -2,135
  -2,274
  -2,419
  -2,570
  -2,727
  -2,891
  -3,062
  -3,240
  -3,426
  -3,620
  -3,822
  -4,034
  -4,255
  -4,486
  -4,728
  -4,981
  -5,246
  -5,523
  -5,813
  -6,117
New CAPEX, $m
  -1,299
  -1,355
  -1,411
  -1,468
  -1,526
  -1,586
  -1,648
  -1,713
  -1,780
  -1,851
  -1,925
  -2,002
  -2,084
  -2,170
  -2,261
  -2,356
  -2,457
  -2,564
  -2,676
  -2,794
  -2,919
  -3,051
  -3,190
  -3,337
  -3,491
  -3,654
  -3,825
  -4,006
  -4,196
  -4,396
Cash from investing activities, $m
  -2,300
  -2,451
  -2,605
  -2,764
  -2,928
  -3,099
  -3,276
  -3,460
  -3,651
  -3,851
  -4,060
  -4,276
  -4,503
  -4,740
  -4,988
  -5,247
  -5,519
  -5,804
  -6,102
  -6,414
  -6,741
  -7,085
  -7,445
  -7,823
  -8,219
  -8,635
  -9,071
  -9,529
  -10,009
  -10,513
Free cash flow, $m
  -1,868
  -2,084
  -2,354
  -2,634
  -2,924
  -3,226
  -3,540
  -3,866
  -4,204
  -4,557
  -4,923
  -5,305
  -5,703
  -6,117
  -6,550
  -7,001
  -7,472
  -7,963
  -8,477
  -9,014
  -9,576
  -10,164
  -10,778
  -11,422
  -12,096
  -12,801
  -13,541
  -14,315
  -15,127
  -15,978
Issuance/(repayment) of debt, $m
  1,904
  2,813
  2,930
  3,049
  3,170
  3,295
  3,424
  3,558
  3,698
  3,844
  3,998
  4,159
  4,329
  4,507
  4,696
  4,894
  5,104
  5,325
  5,558
  5,804
  6,064
  6,338
  6,626
  6,930
  7,251
  7,589
  7,945
  8,320
  8,715
  9,130
Issuance/(repurchase) of shares, $m
  4,729
  4,140
  4,392
  4,655
  4,927
  5,210
  5,505
  5,810
  6,128
  6,459
  4,325
  4,683
  5,055
  5,443
  5,847
  6,269
  6,708
  7,167
  7,646
  8,146
  8,669
  9,216
  9,787
  10,385
  11,011
  11,666
  12,352
  13,071
  13,823
  14,612
Cash from financing (excl. dividends), $m  
  6,633
  6,953
  7,322
  7,704
  8,097
  8,505
  8,929
  9,368
  9,826
  10,303
  8,323
  8,842
  9,384
  9,950
  10,543
  11,163
  11,812
  12,492
  13,204
  13,950
  14,733
  15,554
  16,413
  17,315
  18,262
  19,255
  20,297
  21,391
  22,538
  23,742
Total cash flow (excl. dividends), $m
  4,765
  4,870
  4,969
  5,070
  5,173
  5,279
  5,389
  5,503
  5,622
  5,746
  3,400
  3,537
  3,681
  3,833
  3,993
  4,162
  4,340
  4,528
  4,727
  4,936
  5,157
  5,390
  5,635
  5,894
  6,167
  6,454
  6,757
  7,075
  7,411
  7,764
Retained Cash Flow (-), $m
  -4,729
  -4,140
  -4,392
  -4,655
  -4,927
  -5,210
  -5,505
  -5,810
  -6,128
  -6,459
  -4,325
  -4,683
  -5,055
  -5,443
  -5,847
  -6,269
  -6,708
  -7,167
  -7,646
  -8,146
  -8,669
  -9,216
  -9,787
  -10,385
  -11,011
  -11,666
  -12,352
  -13,071
  -13,823
  -14,612
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
  36
  729
  576
  415
  245
  68
  -116
  -308
  -506
  -712
  -926
  -1,146
  -1,374
  -1,610
  -1,854
  -2,107
  -2,368
  -2,639
  -2,919
  -3,210
  -3,512
  -3,826
  -4,152
  -4,491
  -4,845
  -5,212
  -5,596
  -5,995
  -6,412
  -6,848
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  35
  668
  501
  342
  190
  50
  -78
  -192
  -291
  -373
  -440
  -489
  -523
  -541
  -544
  -535
  -515
  -486
  -449
  -408
  -363
  -317
  -272
  -229
  -188
  -152
  -120
  -93
  -70
  -52
Current shareholders' claim on cash, %
  34.0
  15.7
  7.3
  3.5
  1.7
  0.8
  0.4
  0.2
  0.1
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Liberty Expedia Holdings, Inc. is a holding company. The Company holds interests in Expedia, Inc. (Expedia) and Bodybuilding.com, LLC (Bodybuilding). The Company's segments include Bodybuilding and Expedia. Bodybuilding is an Internet retailer of sports, fitness and nutritional supplements. Expedia provides travel and services to leisure and corporate travelers in the United States and abroad, as well as various media and advertising offerings to travel and non-travel advertisers. Bodybuilding hosts an online health-and-fitness publication, offering free fitness content, workout programs, video trainers, recipes, health advice and motivational stories. Expedia has a portfolio of travel brands, including its subsidiaries, which feature a supply portfolio. As of September 30, 2016, its portfolio included over 321,000 properties in approximately 200 countries, 475 airlines, packages, rental cars and cruises, as well as destination services and activities.

FINANCIAL RATIOS  of  Liberty Expedia Holdings, Inc. (LEXEB)

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%

LEXEB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LEXEB stock intrinsic value calculation we used $11449 million for the last fiscal year's total revenue generated by Liberty Expedia Holdings, Inc.. The default revenue input number comes from 0001 income statement of Liberty Expedia Holdings, Inc.. 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 LEXEB stock valuation model: a) initial revenue growth rate of 9.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for LEXEB is calculated based on our internal credit rating of Liberty Expedia Holdings, Inc., 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 Expedia Holdings, Inc..
    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 LEXEB stock the variable cost ratio is equal to 129.1%.

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 LEXEB 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 Expedia Holdings, Inc..

Corporate tax rate of 27% is the nominal tax rate for Liberty Expedia Holdings, Inc.. 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 LEXEB 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 LEXEB are equal to 120.7%.

Life of production assets of 13.8 years is the average useful life of capital assets used in Liberty Expedia Holdings, Inc. 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 LEXEB is equal to -46.6%. 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 - $2401 million for Liberty Expedia Holdings, Inc. - 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 57.227 million for Liberty Expedia Holdings, Inc. 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 Expedia Holdings, Inc. at the current share price and the inputted number of shares is $2.4 billion.

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