Intrinsic value of Mobile TeleSystems OJSC - MBT

Previous Close

$8.21

  Intrinsic Value

$25.55

stock screener

  Rating & Target

str. buy

+211%

Previous close

$8.21

 
Intrinsic value

$25.55

 
Up/down potential

+211%

 
Rating

str. buy

We calculate the intrinsic value of MBT 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 7.7

 

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, %
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
Revenue, $m
  8,327
  9,006
  9,712
  10,445
  11,207
  11,999
  12,822
  13,678
  14,568
  15,494
  16,458
  17,461
  18,507
  19,597
  20,734
  21,920
  23,158
  24,451
  25,802
  27,214
  28,691
  30,235
  31,851
  33,543
  35,313
  37,168
  39,110
  41,145
  43,278
  45,513
Variable operating expenses, $m
  5,196
  5,604
  6,027
  6,468
  6,925
  7,400
  7,895
  8,408
  8,943
  9,499
  9,880
  10,483
  11,110
  11,765
  12,447
  13,159
  13,903
  14,679
  15,490
  16,338
  17,224
  18,151
  19,121
  20,137
  21,200
  22,313
  23,479
  24,701
  25,981
  27,323
Fixed operating expenses, $m
  1,334
  1,363
  1,393
  1,424
  1,455
  1,487
  1,520
  1,553
  1,587
  1,622
  1,658
  1,694
  1,732
  1,770
  1,809
  1,849
  1,889
  1,931
  1,973
  2,017
  2,061
  2,106
  2,153
  2,200
  2,248
  2,298
  2,348
  2,400
  2,453
  2,507
Total operating expenses, $m
  6,530
  6,967
  7,420
  7,892
  8,380
  8,887
  9,415
  9,961
  10,530
  11,121
  11,538
  12,177
  12,842
  13,535
  14,256
  15,008
  15,792
  16,610
  17,463
  18,355
  19,285
  20,257
  21,274
  22,337
  23,448
  24,611
  25,827
  27,101
  28,434
  29,830
Operating income, $m
  1,797
  2,039
  2,291
  2,554
  2,827
  3,112
  3,408
  3,717
  4,038
  4,373
  4,920
  5,284
  5,665
  6,063
  6,478
  6,912
  7,366
  7,842
  8,339
  8,860
  9,406
  9,978
  10,577
  11,206
  11,865
  12,557
  13,283
  14,044
  14,844
  15,683
EBITDA, $m
  3,172
  3,510
  3,862
  4,228
  4,609
  5,005
  5,418
  5,848
  6,295
  6,761
  7,247
  7,753
  8,282
  8,834
  9,410
  10,012
  10,641
  11,299
  11,988
  12,708
  13,463
  14,253
  15,081
  15,949
  16,858
  17,812
  18,813
  19,862
  20,963
  22,119
Interest expense (income), $m
  456
  480
  537
  596
  658
  722
  789
  858
  930
  1,005
  1,083
  1,164
  1,248
  1,336
  1,428
  1,523
  1,623
  1,727
  1,835
  1,948
  2,066
  2,190
  2,319
  2,454
  2,596
  2,744
  2,899
  3,061
  3,231
  3,409
  3,596
Earnings before tax, $m
  1,318
  1,503
  1,695
  1,896
  2,105
  2,323
  2,550
  2,786
  3,033
  3,290
  3,756
  4,036
  4,329
  4,635
  4,955
  5,289
  5,640
  6,007
  6,391
  6,794
  7,216
  7,658
  8,123
  8,610
  9,121
  9,658
  10,221
  10,813
  11,434
  12,087
Tax expense, $m
  356
  406
  458
  512
  568
  627
  688
  752
  819
  888
  1,014
  1,090
  1,169
  1,251
  1,338
  1,428
  1,523
  1,622
  1,726
  1,834
  1,948
  2,068
  2,193
  2,325
  2,463
  2,608
  2,760
  2,920
  3,087
  3,264
Net income, $m
  962
  1,097
  1,238
  1,384
  1,537
  1,696
  1,861
  2,034
  2,214
  2,402
  2,742
  2,946
  3,160
  3,383
  3,617
  3,861
  4,117
  4,385
  4,665
  4,959
  5,268
  5,591
  5,930
  6,285
  6,658
  7,050
  7,462
  7,893
  8,347
  8,824

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
  10,357
  11,202
  12,079
  12,991
  13,939
  14,924
  15,948
  17,013
  18,119
  19,271
  20,470
  21,718
  23,019
  24,374
  25,788
  27,264
  28,804
  30,412
  32,092
  33,849
  35,685
  37,606
  39,616
  41,720
  43,922
  46,229
  48,645
  51,176
  53,828
  56,608
Adjusted assets (=assets-cash), $m
  10,357
  11,202
  12,079
  12,991
  13,939
  14,924
  15,948
  17,013
  18,119
  19,271
  20,470
  21,718
  23,019
  24,374
  25,788
  27,264
  28,804
  30,412
  32,092
  33,849
  35,685
  37,606
  39,616
  41,720
  43,922
  46,229
  48,645
  51,176
  53,828
  56,608
Revenue / Adjusted assets
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
  0.804
Average production assets, $m
  5,887
  6,367
  6,866
  7,385
  7,923
  8,483
  9,065
  9,670
  10,300
  10,954
  11,636
  12,345
  13,085
  13,855
  14,659
  15,497
  16,373
  17,287
  18,242
  19,241
  20,284
  21,376
  22,519
  23,715
  24,967
  26,278
  27,651
  29,090
  30,598
  32,178
Working capital, $m
  -458
  -495
  -534
  -574
  -616
  -660
  -705
  -752
  -801
  -852
  -905
  -960
  -1,018
  -1,078
  -1,140
  -1,206
  -1,274
  -1,345
  -1,419
  -1,497
  -1,578
  -1,663
  -1,752
  -1,845
  -1,942
  -2,044
  -2,151
  -2,263
  -2,380
  -2,503
Total debt, $m
  5,963
  6,623
  7,310
  8,023
  8,764
  9,534
  10,335
  11,167
  12,033
  12,934
  13,871
  14,847
  15,864
  16,924
  18,030
  19,184
  20,388
  21,646
  22,960
  24,333
  25,769
  27,272
  28,843
  30,488
  32,211
  34,014
  35,904
  37,883
  39,957
  42,131
Total liabilities, $m
  8,100
  8,760
  9,446
  10,159
  10,901
  11,671
  12,471
  13,304
  14,169
  15,070
  16,007
  16,984
  18,001
  19,061
  20,167
  21,320
  22,524
  23,782
  25,096
  26,470
  27,906
  29,408
  30,980
  32,625
  34,347
  36,151
  38,040
  40,019
  42,094
  44,268
Total equity, $m
  2,258
  2,442
  2,633
  2,832
  3,039
  3,253
  3,477
  3,709
  3,950
  4,201
  4,462
  4,735
  5,018
  5,314
  5,622
  5,943
  6,279
  6,630
  6,996
  7,379
  7,779
  8,198
  8,636
  9,095
  9,575
  10,078
  10,605
  11,156
  11,735
  12,341
Total liabilities and equity, $m
  10,358
  11,202
  12,079
  12,991
  13,940
  14,924
  15,948
  17,013
  18,119
  19,271
  20,469
  21,719
  23,019
  24,375
  25,789
  27,263
  28,803
  30,412
  32,092
  33,849
  35,685
  37,606
  39,616
  41,720
  43,922
  46,229
  48,645
  51,175
  53,829
  56,609
Debt-to-equity ratio
  2.640
  2.710
  2.780
  2.830
  2.880
  2.930
  2.970
  3.010
  3.050
  3.080
  3.110
  3.140
  3.160
  3.190
  3.210
  3.230
  3.250
  3.260
  3.280
  3.300
  3.310
  3.330
  3.340
  3.350
  3.360
  3.380
  3.390
  3.400
  3.410
  3.410
Adjusted equity ratio
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  962
  1,097
  1,238
  1,384
  1,537
  1,696
  1,861
  2,034
  2,214
  2,402
  2,742
  2,946
  3,160
  3,383
  3,617
  3,861
  4,117
  4,385
  4,665
  4,959
  5,268
  5,591
  5,930
  6,285
  6,658
  7,050
  7,462
  7,893
  8,347
  8,824
Depreciation, amort., depletion, $m
  1,374
  1,470
  1,570
  1,674
  1,782
  1,894
  2,010
  2,131
  2,257
  2,388
  2,327
  2,469
  2,617
  2,771
  2,932
  3,099
  3,275
  3,457
  3,648
  3,848
  4,057
  4,275
  4,504
  4,743
  4,993
  5,256
  5,530
  5,818
  6,120
  6,436
Funds from operations, $m
  2,336
  2,567
  2,808
  3,058
  3,318
  3,589
  3,871
  4,165
  4,471
  4,790
  5,069
  5,415
  5,777
  6,154
  6,549
  6,961
  7,392
  7,842
  8,314
  8,807
  9,324
  9,866
  10,433
  11,028
  11,652
  12,306
  12,992
  13,711
  14,467
  15,259
Change in working capital, $m
  -36
  -37
  -39
  -40
  -42
  -44
  -45
  -47
  -49
  -51
  -53
  -55
  -58
  -60
  -63
  -65
  -68
  -71
  -74
  -78
  -81
  -85
  -89
  -93
  -97
  -102
  -107
  -112
  -117
  -123
Cash from operations, $m
  2,372
  2,605
  2,847
  3,098
  3,360
  3,633
  3,917
  4,212
  4,520
  4,841
  5,122
  5,470
  5,834
  6,214
  6,611
  7,026
  7,460
  7,913
  8,388
  8,885
  9,406
  9,951
  10,522
  11,121
  11,749
  12,408
  13,099
  13,823
  14,584
  15,382
Maintenance CAPEX, $m
  -1,086
  -1,177
  -1,273
  -1,373
  -1,477
  -1,585
  -1,697
  -1,813
  -1,934
  -2,060
  -2,191
  -2,327
  -2,469
  -2,617
  -2,771
  -2,932
  -3,099
  -3,275
  -3,457
  -3,648
  -3,848
  -4,057
  -4,275
  -4,504
  -4,743
  -4,993
  -5,256
  -5,530
  -5,818
  -6,120
New CAPEX, $m
  -460
  -480
  -499
  -518
  -539
  -560
  -582
  -605
  -629
  -655
  -681
  -710
  -739
  -771
  -804
  -839
  -875
  -914
  -955
  -998
  -1,044
  -1,092
  -1,142
  -1,196
  -1,252
  -1,311
  -1,373
  -1,439
  -1,508
  -1,580
Cash from investing activities, $m
  -1,546
  -1,657
  -1,772
  -1,891
  -2,016
  -2,145
  -2,279
  -2,418
  -2,563
  -2,715
  -2,872
  -3,037
  -3,208
  -3,388
  -3,575
  -3,771
  -3,974
  -4,189
  -4,412
  -4,646
  -4,892
  -5,149
  -5,417
  -5,700
  -5,995
  -6,304
  -6,629
  -6,969
  -7,326
  -7,700
Free cash flow, $m
  827
  947
  1,074
  1,207
  1,345
  1,488
  1,638
  1,794
  1,957
  2,126
  2,250
  2,434
  2,626
  2,827
  3,037
  3,256
  3,485
  3,725
  3,976
  4,238
  4,514
  4,802
  5,105
  5,422
  5,754
  6,103
  6,470
  6,854
  7,258
  7,682
Issuance/(repayment) of debt, $m
  632
  660
  686
  713
  741
  770
  801
  832
  866
  901
  937
  976
  1,017
  1,060
  1,106
  1,154
  1,204
  1,258
  1,314
  1,373
  1,436
  1,502
  1,572
  1,645
  1,722
  1,804
  1,889
  1,979
  2,074
  2,174
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  632
  660
  686
  713
  741
  770
  801
  832
  866
  901
  937
  976
  1,017
  1,060
  1,106
  1,154
  1,204
  1,258
  1,314
  1,373
  1,436
  1,502
  1,572
  1,645
  1,722
  1,804
  1,889
  1,979
  2,074
  2,174
Total cash flow (excl. dividends), $m
  1,459
  1,608
  1,761
  1,920
  2,086
  2,259
  2,439
  2,626
  2,822
  3,027
  3,187
  3,410
  3,643
  3,887
  4,142
  4,409
  4,689
  4,982
  5,290
  5,612
  5,950
  6,304
  6,676
  7,067
  7,477
  7,907
  8,359
  8,834
  9,332
  9,856
Retained Cash Flow (-), $m
  -176
  -184
  -191
  -199
  -207
  -215
  -223
  -232
  -241
  -251
  -261
  -272
  -284
  -296
  -308
  -322
  -336
  -351
  -366
  -383
  -400
  -419
  -438
  -459
  -480
  -503
  -527
  -552
  -578
  -606
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,283
  1,424
  1,569
  1,721
  1,879
  2,044
  2,216
  2,394
  2,581
  2,776
  2,926
  3,138
  3,360
  3,591
  3,834
  4,088
  4,353
  4,632
  4,923
  5,229
  5,549
  5,885
  6,238
  6,608
  6,997
  7,404
  7,832
  8,282
  8,754
  9,250
Discount rate, %
  5.00
  5.25
  5.51
  5.79
  6.08
  6.38
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.13
  16.93
  17.78
  18.67
  19.60
  20.58
PV of cash for distribution, $m
  1,222
  1,285
  1,336
  1,374
  1,399
  1,410
  1,407
  1,390
  1,359
  1,315
  1,236
  1,172
  1,099
  1,017
  930
  840
  748
  657
  568
  484
  406
  334
  270
  214
  167
  127
  94
  69
  49
  34
Current shareholders' claim on cash, %
  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
  100.0

Mobil'nye Telesistemy PAO is a Russia-based provider of telecommunications services. The Company provides mobile and fixed-line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed-line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed-line segment includes fixed-line operations carried out in Moscow by the Company's subsidiary MGTS. Its Ukraine segment includes mobile and fixed-line operations carried out across multiple regions of Ukraine. The Company also offers software solutions, such as LiteBox, a cloud-based tool for online cash operations.

FINANCIAL RATIOS  of  Mobile TeleSystems OJSC (MBT)

Valuation Ratios
P/E Ratio 19.8
Price to Sales 2.2
Price to Book 6.9
Price to Tangible Book
Price to Cash Flow 7.3
Price to Free Cash Flow 21.6
Growth Rates
Sales Growth Rate 2.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -19.2%
Cap. Spend. - 3 Yr. Gr. Rate 1.1%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 172.3%
Total Debt to Equity 208.4%
Interest Coverage 4
Management Effectiveness
Return On Assets 11.6%
Ret/ On Assets - 3 Yr. Avg. 11.5%
Return On Total Capital 10.2%
Ret/ On T. Cap. - 3 Yr. Avg. 10.9%
Return On Equity 32.4%
Return On Equity - 3 Yr. Avg. 31.5%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 59.3%
Gross Margin - 3 Yr. Avg. 61.6%
EBITDA Margin 40.8%
EBITDA Margin - 3 Yr. Avg. 39.6%
Operating Margin 20.1%
Oper. Margin - 3 Yr. Avg. 22.1%
Pre-Tax Margin 15.5%
Pre-Tax Margin - 3 Yr. Avg. 15.4%
Net Profit Margin 11.1%
Net Profit Margin - 3 Yr. Avg. 11.7%
Effective Tax Rate 22.4%
Eff/ Tax Rate - 3 Yr. Avg. 23%
Payout Ratio 109%

MBT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MBT stock intrinsic value calculation we used $7675 million for the last fiscal year's total revenue generated by Mobile TeleSystems OJSC. The default revenue input number comes from 0001 income statement of Mobile TeleSystems OJSC. 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 MBT stock valuation model: a) initial revenue growth rate of 8.5% 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 5%, whose default value for MBT is calculated based on our internal credit rating of Mobile TeleSystems OJSC, 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 Mobile TeleSystems OJSC.
    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 MBT stock the variable cost ratio is equal to 62.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1305 million in the base year in the intrinsic value calculation for MBT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 9% for Mobile TeleSystems OJSC.

Corporate tax rate of 27% is the nominal tax rate for Mobile TeleSystems OJSC. 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 MBT 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 MBT are equal to 70.7%.

Life of production assets of 4.6 years is the average useful life of capital assets used in Mobile TeleSystems OJSC 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 MBT is equal to -5.5%. 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 - $2081.54565933 million for Mobile TeleSystems OJSC - 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 942.189 million for Mobile TeleSystems OJSC 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 Mobile TeleSystems OJSC at the current share price and the inputted number of shares is $7.7 billion.

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