Intrinsic value of Liberty Latin America Cl A - LILA

Previous Close

$19.49

  Intrinsic Value

$15.24

stock screener

  Rating & Target

sell

-22%

Previous close

$19.49

 
Intrinsic value

$15.24

 
Up/down potential

-22%

 
Rating

sell

We calculate the intrinsic value of LILA 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 3.3

 

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, %
  31.80
  29.12
  26.71
  24.54
  22.58
  20.83
  19.24
  17.82
  16.54
  15.38
  14.34
  13.41
  12.57
  11.81
  11.13
  10.52
  9.97
  9.47
  9.02
  8.62
  8.26
  7.93
  7.64
  7.38
  7.14
  6.92
  6.73
  6.56
  6.40
  6.26
Revenue, $m
  4,732
  6,109
  7,741
  9,641
  11,818
  14,279
  17,027
  20,060
  23,378
  26,974
  30,843
  34,979
  39,376
  44,027
  48,928
  54,074
  59,463
  65,094
  70,967
  77,084
  83,450
  90,070
  96,950
  104,101
  111,531
  119,254
  127,281
  135,629
  144,313
  153,350
Variable operating expenses, $m
  3,938
  4,864
  5,962
  7,239
  8,704
  10,359
  12,207
  14,247
  16,478
  18,897
  20,744
  23,525
  26,482
  29,611
  32,907
  36,368
  39,992
  43,779
  47,729
  51,843
  56,125
  60,577
  65,204
  70,013
  75,011
  80,205
  85,604
  91,218
  97,058
  103,136
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
  3,938
  4,864
  5,962
  7,239
  8,704
  10,359
  12,207
  14,247
  16,478
  18,897
  20,744
  23,525
  26,482
  29,611
  32,907
  36,368
  39,992
  43,779
  47,729
  51,843
  56,125
  60,577
  65,204
  70,013
  75,011
  80,205
  85,604
  91,218
  97,058
  103,136
Operating income, $m
  794
  1,245
  1,779
  2,401
  3,114
  3,920
  4,820
  5,813
  6,899
  8,077
  10,099
  11,454
  12,893
  14,416
  16,021
  17,706
  19,471
  21,315
  23,238
  25,241
  27,325
  29,493
  31,746
  34,087
  36,520
  39,049
  41,678
  44,411
  47,255
  50,214
EBITDA, $m
  3,116
  4,024
  5,099
  6,350
  7,784
  9,405
  11,214
  13,213
  15,398
  17,766
  20,315
  23,039
  25,935
  28,998
  32,226
  35,615
  39,165
  42,874
  46,742
  50,771
  54,964
  59,324
  63,856
  68,566
  73,460
  78,546
  83,833
  89,331
  95,051
  101,003
Interest expense (income), $m
  0
  389
  587
  827
  1,112
  1,443
  1,823
  2,252
  2,731
  3,261
  3,839
  4,467
  5,142
  5,863
  6,630
  7,442
  8,297
  9,194
  10,135
  11,117
  12,141
  13,209
  14,319
  15,474
  16,674
  17,922
  19,218
  20,565
  21,965
  23,422
  24,937
Earnings before tax, $m
  405
  658
  952
  1,290
  1,671
  2,097
  2,568
  3,082
  3,639
  4,238
  5,633
  6,312
  7,030
  7,786
  8,579
  9,410
  10,276
  11,180
  12,121
  13,100
  14,117
  15,174
  16,272
  17,413
  18,599
  19,831
  21,113
  22,446
  23,833
  25,277
Tax expense, $m
  109
  178
  257
  348
  451
  566
  693
  832
  982
  1,144
  1,521
  1,704
  1,898
  2,102
  2,316
  2,541
  2,775
  3,019
  3,273
  3,537
  3,812
  4,097
  4,393
  4,702
  5,022
  5,354
  5,700
  6,060
  6,435
  6,825
Net income, $m
  296
  481
  695
  941
  1,220
  1,531
  1,874
  2,250
  2,656
  3,093
  4,112
  4,608
  5,132
  5,684
  6,263
  6,869
  7,502
  8,162
  8,848
  9,563
  10,305
  11,077
  11,879
  12,712
  13,577
  14,477
  15,412
  16,385
  17,398
  18,452

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
  17,923
  23,142
  29,323
  36,518
  44,765
  54,087
  64,495
  75,986
  88,552
  102,174
  116,830
  132,497
  149,151
  166,769
  185,332
  204,825
  225,238
  246,567
  268,814
  291,986
  316,099
  341,173
  367,236
  394,321
  422,467
  451,718
  482,126
  513,746
  546,639
  580,871
Adjusted assets (=assets-cash), $m
  17,923
  23,142
  29,323
  36,518
  44,765
  54,087
  64,495
  75,986
  88,552
  102,174
  116,830
  132,497
  149,151
  166,769
  185,332
  204,825
  225,238
  246,567
  268,814
  291,986
  316,099
  341,173
  367,236
  394,321
  422,467
  451,718
  482,126
  513,746
  546,639
  580,871
Revenue / Adjusted assets
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
Average production assets, $m
  15,671
  20,235
  25,639
  31,930
  39,141
  47,292
  56,392
  66,440
  77,427
  89,338
  102,153
  115,851
  130,413
  145,818
  162,048
  179,093
  196,941
  215,590
  235,042
  255,303
  276,387
  298,311
  321,100
  344,782
  369,391
  394,968
  421,555
  449,203
  477,963
  507,895
Working capital, $m
  -379
  -489
  -619
  -771
  -945
  -1,142
  -1,362
  -1,605
  -1,870
  -2,158
  -2,467
  -2,798
  -3,150
  -3,522
  -3,914
  -4,326
  -4,757
  -5,207
  -5,677
  -6,167
  -6,676
  -7,206
  -7,756
  -8,328
  -8,922
  -9,540
  -10,182
  -10,850
  -11,545
  -12,268
Total debt, $m
  9,616
  13,557
  18,223
  23,655
  29,882
  36,920
  44,778
  53,454
  62,941
  73,226
  84,291
  96,120
  108,694
  121,995
  136,010
  150,728
  166,139
  182,243
  199,039
  216,534
  234,739
  253,671
  273,348
  293,797
  315,047
  337,132
  360,090
  383,963
  408,797
  434,642
Total liabilities, $m
  13,532
  17,472
  22,139
  27,571
  33,797
  40,836
  48,693
  57,370
  66,857
  77,141
  88,207
  100,035
  112,609
  125,911
  139,926
  154,643
  170,055
  186,158
  202,954
  220,450
  238,655
  257,586
  277,263
  297,712
  318,962
  341,047
  364,005
  387,878
  412,712
  438,557
Total equity, $m
  4,391
  5,670
  7,184
  8,947
  10,967
  13,251
  15,801
  18,617
  21,695
  25,033
  28,623
  32,462
  36,542
  40,858
  45,406
  50,182
  55,183
  60,409
  65,859
  71,537
  77,444
  83,588
  89,973
  96,609
  103,504
  110,671
  118,121
  125,868
  133,926
  142,313
Total liabilities and equity, $m
  17,923
  23,142
  29,323
  36,518
  44,764
  54,087
  64,494
  75,987
  88,552
  102,174
  116,830
  132,497
  149,151
  166,769
  185,332
  204,825
  225,238
  246,567
  268,813
  291,987
  316,099
  341,174
  367,236
  394,321
  422,466
  451,718
  482,126
  513,746
  546,638
  580,870
Debt-to-equity ratio
  2.190
  2.390
  2.540
  2.640
  2.720
  2.790
  2.830
  2.870
  2.900
  2.930
  2.940
  2.960
  2.970
  2.990
  3.000
  3.000
  3.010
  3.020
  3.020
  3.030
  3.030
  3.030
  3.040
  3.040
  3.040
  3.050
  3.050
  3.050
  3.050
  3.050
Adjusted equity ratio
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245
  0.245

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  296
  481
  695
  941
  1,220
  1,531
  1,874
  2,250
  2,656
  3,093
  4,112
  4,608
  5,132
  5,684
  6,263
  6,869
  7,502
  8,162
  8,848
  9,563
  10,305
  11,077
  11,879
  12,712
  13,577
  14,477
  15,412
  16,385
  17,398
  18,452
Depreciation, amort., depletion, $m
  2,323
  2,779
  3,319
  3,948
  4,670
  5,485
  6,395
  7,400
  8,498
  9,689
  10,215
  11,585
  13,041
  14,582
  16,205
  17,909
  19,694
  21,559
  23,504
  25,530
  27,639
  29,831
  32,110
  34,478
  36,939
  39,497
  42,156
  44,920
  47,796
  50,789
Funds from operations, $m
  2,618
  3,260
  4,015
  4,890
  5,890
  7,016
  8,269
  9,649
  11,154
  12,783
  14,327
  16,193
  18,173
  20,266
  22,468
  24,778
  27,196
  29,721
  32,353
  35,093
  37,944
  40,908
  43,989
  47,190
  50,516
  53,974
  57,568
  61,306
  65,194
  69,242
Change in working capital, $m
  -91
  -110
  -131
  -152
  -174
  -197
  -220
  -243
  -265
  -288
  -310
  -331
  -352
  -372
  -392
  -412
  -431
  -450
  -470
  -489
  -509
  -530
  -550
  -572
  -594
  -618
  -642
  -668
  -695
  -723
Cash from operations, $m
  2,710
  3,370
  4,145
  5,042
  6,064
  7,213
  8,489
  9,892
  11,420
  13,070
  14,637
  16,524
  18,525
  20,638
  22,860
  25,190
  27,627
  30,171
  32,822
  35,582
  38,453
  41,438
  44,539
  47,762
  51,111
  54,591
  58,210
  61,973
  65,889
  69,965
Maintenance CAPEX, $m
  -1,189
  -1,567
  -2,023
  -2,564
  -3,193
  -3,914
  -4,729
  -5,639
  -6,644
  -7,743
  -8,934
  -10,215
  -11,585
  -13,041
  -14,582
  -16,205
  -17,909
  -19,694
  -21,559
  -23,504
  -25,530
  -27,639
  -29,831
  -32,110
  -34,478
  -36,939
  -39,497
  -42,156
  -44,920
  -47,796
New CAPEX, $m
  -3,781
  -4,563
  -5,404
  -6,291
  -7,211
  -8,151
  -9,100
  -10,048
  -10,987
  -11,910
  -12,815
  -13,699
  -14,561
  -15,405
  -16,231
  -17,044
  -17,849
  -18,649
  -19,452
  -20,261
  -21,084
  -21,924
  -22,789
  -23,682
  -24,610
  -25,577
  -26,588
  -27,647
  -28,761
  -29,932
Cash from investing activities, $m
  -4,970
  -6,130
  -7,427
  -8,855
  -10,404
  -12,065
  -13,829
  -15,687
  -17,631
  -19,653
  -21,749
  -23,914
  -26,146
  -28,446
  -30,813
  -33,249
  -35,758
  -38,343
  -41,011
  -43,765
  -46,614
  -49,563
  -52,620
  -55,792
  -59,088
  -62,516
  -66,085
  -69,803
  -73,681
  -77,728
Free cash flow, $m
  -2,260
  -2,761
  -3,283
  -3,813
  -4,340
  -4,853
  -5,340
  -5,795
  -6,211
  -6,583
  -7,112
  -7,390
  -7,622
  -7,808
  -7,953
  -8,059
  -8,131
  -8,172
  -8,188
  -8,183
  -8,161
  -8,125
  -8,081
  -8,030
  -7,977
  -7,924
  -7,874
  -7,829
  -7,792
  -7,763
Issuance/(repayment) of debt, $m
  3,245
  3,940
  4,666
  5,432
  6,226
  7,038
  7,858
  8,676
  9,487
  10,284
  11,066
  11,829
  12,574
  13,302
  14,015
  14,717
  15,412
  16,103
  16,796
  17,495
  18,205
  18,931
  19,677
  20,449
  21,250
  22,085
  22,958
  23,873
  24,834
  25,845
Issuance/(repurchase) of shares, $m
  765
  798
  819
  821
  801
  753
  676
  566
  422
  244
  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  
  4,010
  4,738
  5,485
  6,253
  7,027
  7,791
  8,534
  9,242
  9,909
  10,528
  11,066
  11,829
  12,574
  13,302
  14,015
  14,717
  15,412
  16,103
  16,796
  17,495
  18,205
  18,931
  19,677
  20,449
  21,250
  22,085
  22,958
  23,873
  24,834
  25,845
Total cash flow (excl. dividends), $m
  1,750
  1,978
  2,203
  2,440
  2,687
  2,939
  3,193
  3,447
  3,698
  3,946
  3,953
  4,438
  4,952
  5,493
  6,062
  6,658
  7,281
  7,931
  8,608
  9,312
  10,045
  10,806
  11,597
  12,419
  13,273
  14,161
  15,083
  16,043
  17,042
  18,082
Retained Cash Flow (-), $m
  -1,061
  -1,279
  -1,514
  -1,763
  -2,021
  -2,284
  -2,550
  -2,816
  -3,079
  -3,337
  -3,591
  -3,838
  -4,080
  -4,316
  -4,548
  -4,776
  -5,001
  -5,226
  -5,450
  -5,677
  -5,908
  -6,143
  -6,385
  -6,636
  -6,896
  -7,167
  -7,450
  -7,747
  -8,059
  -8,387
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
  14
  19
  24
  31
  39
  47
  57
  68
  80
  94
  108
  123
  140
  158
  176
  196
  216
  238
  260
  284
  308
  334
  360
  388
  416
  446
  477
  509
  543
  577
Cash available for distribution, $m
  689
  699
  689
  678
  666
  655
  643
  631
  620
  608
  363
  600
  872
  1,177
  1,514
  1,882
  2,280
  2,705
  3,157
  3,635
  4,137
  4,663
  5,211
  5,783
  6,377
  6,994
  7,634
  8,297
  8,984
  9,695
Discount rate, %
  9.40
  9.87
  10.36
  10.88
  11.43
  12.00
  12.60
  13.23
  13.89
  14.58
  15.31
  16.08
  16.88
  17.73
  18.61
  19.54
  20.52
  21.54
  22.62
  23.75
  24.94
  26.19
  27.50
  28.87
  30.32
  31.83
  33.42
  35.09
  36.85
  38.69
PV of cash for distribution, $m
  630
  579
  512
  448
  388
  332
  280
  234
  192
  156
  76
  100
  115
  120
  117
  108
  95
  81
  66
  51
  39
  28
  20
  13
  9
  5
  3
  2
  1
  1
Current shareholders' claim on cash, %
  81.3
  68.8
  60.1
  54.0
  49.6
  46.4
  44.1
  42.6
  41.7
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2
  41.2

LiLAC Group provides various broadband services over cable distribution systems, and mobile services in Chile and Puerto Rico. It offers triple-play services consisting of video, broadband Internet, and fixed-line telephony services in 34 communities within Santiago; and 42 communities outside Santiago, including Iquique, Antofagasta, Concepción, Viña del Mar, Valparaiso, and Rancagua, as well as smaller cities across Chile. The company also carries domestic Chilean cable programming, which includes local events, such as football (soccer) matches and regional content; and provides a range of digital video services and video on demand services, including catch-up television. In addition, it offers digital broadband services in the San Juan metropolitan area and other municipalities in Puerto Rico; and video services, including digital programming and video on demand services. LiLAC Group is based in London, the United Kingdom. LiLAC Group is a subsidiary of Liberty Global plc.

FINANCIAL RATIOS  of  Liberty Latin America Cl A (LILA)

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%

LILA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LILA stock intrinsic value calculation we used $3590 million for the last fiscal year's total revenue generated by Liberty Latin America Cl A. The default revenue input number comes from 2017 income statement of Liberty Latin America 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 LILA stock valuation model: a) initial revenue growth rate of 31.8% 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 9.4%, whose default value for LILA is calculated based on our internal credit rating of Liberty Latin America 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 Latin America 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 LILA stock the variable cost ratio is equal to 88.3%.

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 LILA 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 6.1% for Liberty Latin America Cl A.

Corporate tax rate of 27% is the nominal tax rate for Liberty Latin America 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 LILA stock is equal to 0.4%.

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 LILA are equal to 331.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Liberty Latin America 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 LILA is equal to -8%. 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 - $3330 million for Liberty Latin America 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 171 million for Liberty Latin America 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 Latin America Cl A at the current share price and the inputted number of shares is $3.3 billion.

COMPANY NEWS

▶ [$$] TiVo CEO Enrique Rodriguez Resigns   [Jul-05-18 11:04AM  The Wall Street Journal]
▶ Unitymedia CEO Schüler appointed Virgin Media COO   [Jun-28-18 10:05AM  Reuters]
▶ BT's Fundamental Value Is Overlooked   [Jun-22-18 07:00AM  Morningstar]
▶ Liberty Global CEO Buys $3 Million in Stock   [May-31-18 03:21PM  Barrons.com]
▶ Bill Gates Discloses 5% Stake in Liberty Global   [May-18-18 05:26PM  Barrons.com]
▶ [$$] US sellers add to questions over peak Europe   [May-10-18 11:57PM  Financial Times]
▶ [$$] How John Malone Should Use His European Windfall   [09:34AM  The Wall Street Journal]
▶ [$$] Vodafone/Liberty Global: chain gang   [08:01AM  Financial Times]
▶ PRESS DIGEST- Financial Times - May 9   [May-08-18 08:15PM  Reuters]
▶ [$$] Vodafone to Buy Liberty Global's European Assets   [03:40PM  The Wall Street Journal]
▶ [$$] Head of TalkTalk ultrafast broadband joins Virgin Media   [Mar-18-18 12:24AM  Financial Times]
▶ Cable & Wireless Reports Preliminary 2017 Results¹   [Feb-15-18 05:50PM  GlobeNewswire]
▶ Liberty Latin America Reports Fiscal 2017 Results   [Feb-14-18 05:15PM  Business Wire]
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