Intrinsic value of Mondelez International Cl A - MDLZ

Previous Close

$43.86

  Intrinsic Value

$43.44

stock screener

  Rating & Target

hold

-1%

Previous close

$43.86

 
Intrinsic value

$43.44

 
Up/down potential

-1%

 
Rating

hold

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of MDLZ 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -12.53
  2.10
  2.39
  2.65
  2.89
  3.10
  3.29
  3.46
  3.61
  3.75
  3.88
  3.99
  4.09
  4.18
  4.26
  4.34
  4.40
  4.46
  4.52
  4.56
  4.61
  4.65
  4.68
  4.71
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
Revenue, $m
  25,923
  26,467
  27,100
  27,818
  28,621
  29,508
  30,478
  31,532
  32,671
  33,897
  35,211
  36,615
  38,113
  39,706
  41,399
  43,194
  45,096
  47,109
  49,236
  51,484
  53,856
  56,359
  58,998
  61,780
  64,710
  67,796
  71,044
  74,463
  78,061
  81,846
  85,826
Variable operating expenses, $m
 
  18,485
  18,878
  19,325
  19,824
  20,375
  20,978
  21,634
  22,342
  23,104
  23,921
  22,767
  23,698
  24,689
  25,741
  26,858
  28,040
  29,291
  30,614
  32,012
  33,487
  35,043
  36,684
  38,414
  40,236
  42,154
  44,174
  46,300
  48,537
  50,890
  53,365
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
  23,781
  18,485
  18,878
  19,325
  19,824
  20,375
  20,978
  21,634
  22,342
  23,104
  23,921
  22,767
  23,698
  24,689
  25,741
  26,858
  28,040
  29,291
  30,614
  32,012
  33,487
  35,043
  36,684
  38,414
  40,236
  42,154
  44,174
  46,300
  48,537
  50,890
  53,365
Operating income, $m
  2,142
  7,983
  8,222
  8,494
  8,797
  9,133
  9,500
  9,898
  10,329
  10,793
  11,290
  13,849
  14,415
  15,018
  15,658
  16,337
  17,056
  17,817
  18,622
  19,472
  20,369
  21,316
  22,314
  23,366
  24,474
  25,641
  26,870
  28,163
  29,524
  30,955
  32,461
EBITDA, $m
  2,965
  10,920
  11,181
  11,477
  11,809
  12,174
  12,575
  13,010
  13,480
  13,985
  14,527
  15,107
  15,725
  16,382
  17,081
  17,821
  18,606
  19,436
  20,314
  21,241
  22,220
  23,253
  24,342
  25,489
  26,698
  27,971
  29,312
  30,722
  32,207
  33,768
  35,410
Interest expense (income), $m
  630
  596
  624
  656
  694
  735
  781
  831
  886
  945
  1,009
  1,077
  1,149
  1,227
  1,310
  1,397
  1,490
  1,589
  1,693
  1,804
  1,920
  2,043
  2,173
  2,309
  2,454
  2,605
  2,765
  2,934
  3,111
  3,297
  3,493
Earnings before tax, $m
  1,454
  7,386
  7,598
  7,837
  8,104
  8,397
  8,718
  9,067
  9,443
  9,848
  10,281
  12,772
  13,265
  13,791
  14,348
  14,939
  15,566
  16,228
  16,929
  17,668
  18,449
  19,273
  20,141
  21,057
  22,021
  23,036
  24,105
  25,230
  26,413
  27,658
  28,967
Tax expense, $m
  129
  1,994
  2,052
  2,116
  2,188
  2,267
  2,354
  2,448
  2,550
  2,659
  2,776
  3,448
  3,582
  3,723
  3,874
  4,034
  4,203
  4,382
  4,571
  4,770
  4,981
  5,204
  5,438
  5,685
  5,946
  6,220
  6,508
  6,812
  7,132
  7,468
  7,821
Net income, $m
  1,659
  5,392
  5,547
  5,721
  5,916
  6,130
  6,364
  6,619
  6,893
  7,189
  7,505
  9,323
  9,684
  10,067
  10,474
  10,906
  11,363
  11,847
  12,358
  12,898
  13,468
  14,069
  14,703
  15,371
  16,075
  16,816
  17,597
  18,418
  19,282
  20,190
  21,146

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,909
  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
  61,538
  60,845
  62,299
  63,950
  65,796
  67,834
  70,064
  72,487
  75,106
  77,924
  80,945
  84,173
  87,616
  91,279
  95,170
  99,297
  103,669
  108,296
  113,187
  118,353
  123,807
  129,561
  135,628
  142,022
  148,758
  155,852
  163,320
  171,180
  179,451
  188,151
  197,301
Adjusted assets (=assets-cash), $m
  59,629
  60,845
  62,299
  63,950
  65,796
  67,834
  70,064
  72,487
  75,106
  77,924
  80,945
  84,173
  87,616
  91,279
  95,170
  99,297
  103,669
  108,296
  113,187
  118,353
  123,807
  129,561
  135,628
  142,022
  148,758
  155,852
  163,320
  171,180
  179,451
  188,151
  197,301
Revenue / Adjusted assets
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
Average production assets, $m
  26,730
  27,288
  27,940
  28,681
  29,508
  30,422
  31,423
  32,509
  33,684
  34,948
  36,302
  37,750
  39,294
  40,937
  42,682
  44,533
  46,494
  48,569
  50,763
  53,080
  55,526
  58,106
  60,827
  63,695
  66,716
  69,897
  73,247
  76,772
  80,481
  84,383
  88,487
Working capital, $m
  -5,937
  -3,944
  -4,038
  -4,145
  -4,265
  -4,397
  -4,541
  -4,698
  -4,868
  -5,051
  -5,246
  -5,456
  -5,679
  -5,916
  -6,168
  -6,436
  -6,719
  -7,019
  -7,336
  -7,671
  -8,025
  -8,398
  -8,791
  -9,205
  -9,642
  -10,102
  -10,586
  -11,095
  -11,631
  -12,195
  -12,788
Total debt, $m
  17,199
  15,990
  16,831
  17,785
  18,852
  20,030
  21,319
  22,720
  24,233
  25,862
  27,608
  29,474
  31,464
  33,581
  35,830
  38,216
  40,743
  43,417
  46,244
  49,230
  52,383
  55,708
  59,215
  62,911
  66,804
  70,905
  75,221
  79,764
  84,544
  89,573
  94,862
Total liabilities, $m
  36,377
  35,168
  36,009
  36,963
  38,030
  39,208
  40,497
  41,898
  43,411
  45,040
  46,786
  48,652
  50,642
  52,759
  55,008
  57,394
  59,921
  62,595
  65,422
  68,408
  71,561
  74,886
  78,393
  82,089
  85,982
  90,083
  94,399
  98,942
  103,722
  108,751
  114,040
Total equity, $m
  25,161
  25,676
  26,290
  26,987
  27,766
  28,626
  29,567
  30,590
  31,695
  32,884
  34,159
  35,521
  36,974
  38,520
  40,162
  41,903
  43,748
  45,701
  47,765
  49,945
  52,247
  54,675
  57,235
  59,933
  62,776
  65,770
  68,921
  72,238
  75,728
  79,400
  83,261
Total liabilities and equity, $m
  61,538
  60,844
  62,299
  63,950
  65,796
  67,834
  70,064
  72,488
  75,106
  77,924
  80,945
  84,173
  87,616
  91,279
  95,170
  99,297
  103,669
  108,296
  113,187
  118,353
  123,808
  129,561
  135,628
  142,022
  148,758
  155,853
  163,320
  171,180
  179,450
  188,151
  197,301
Debt-to-equity ratio
  0.684
  0.620
  0.640
  0.660
  0.680
  0.700
  0.720
  0.740
  0.760
  0.790
  0.810
  0.830
  0.850
  0.870
  0.890
  0.910
  0.930
  0.950
  0.970
  0.990
  1.000
  1.020
  1.030
  1.050
  1.060
  1.080
  1.090
  1.100
  1.120
  1.130
  1.140
Adjusted equity ratio
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,659
  5,392
  5,547
  5,721
  5,916
  6,130
  6,364
  6,619
  6,893
  7,189
  7,505
  9,323
  9,684
  10,067
  10,474
  10,906
  11,363
  11,847
  12,358
  12,898
  13,468
  14,069
  14,703
  15,371
  16,075
  16,816
  17,597
  18,418
  19,282
  20,190
  21,146
Depreciation, amort., depletion, $m
  823
  2,937
  2,959
  2,984
  3,011
  3,042
  3,075
  3,111
  3,150
  3,193
  3,238
  1,258
  1,310
  1,365
  1,423
  1,484
  1,550
  1,619
  1,692
  1,769
  1,851
  1,937
  2,028
  2,123
  2,224
  2,330
  2,442
  2,559
  2,683
  2,813
  2,950
Funds from operations, $m
  2,632
  8,329
  8,506
  8,705
  8,927
  9,172
  9,439
  9,730
  10,044
  10,381
  10,743
  10,582
  10,994
  11,432
  11,897
  12,390
  12,913
  13,466
  14,050
  14,667
  15,319
  16,006
  16,731
  17,495
  18,299
  19,146
  20,038
  20,977
  21,964
  23,003
  24,096
Change in working capital, $m
  -206
  -81
  -94
  -107
  -120
  -132
  -145
  -157
  -170
  -183
  -196
  -209
  -223
  -237
  -252
  -267
  -283
  -300
  -317
  -335
  -354
  -373
  -393
  -414
  -437
  -460
  -484
  -509
  -536
  -564
  -593
Cash from operations, $m
  2,838
  8,410
  8,600
  8,812
  9,047
  9,304
  9,584
  9,887
  10,214
  10,564
  10,939
  10,791
  11,217
  11,669
  12,149
  12,658
  13,196
  13,765
  14,367
  15,002
  15,672
  16,379
  17,124
  17,909
  18,736
  19,606
  20,522
  21,486
  22,500
  23,567
  24,689
Maintenance CAPEX, $m
  0
  -891
  -910
  -931
  -956
  -984
  -1,014
  -1,047
  -1,084
  -1,123
  -1,165
  -1,210
  -1,258
  -1,310
  -1,365
  -1,423
  -1,484
  -1,550
  -1,619
  -1,692
  -1,769
  -1,851
  -1,937
  -2,028
  -2,123
  -2,224
  -2,330
  -2,442
  -2,559
  -2,683
  -2,813
New CAPEX, $m
  -1,224
  -558
  -652
  -741
  -828
  -914
  -1,000
  -1,087
  -1,175
  -1,264
  -1,355
  -1,448
  -1,544
  -1,643
  -1,745
  -1,851
  -1,961
  -2,075
  -2,194
  -2,317
  -2,446
  -2,581
  -2,721
  -2,868
  -3,021
  -3,181
  -3,349
  -3,525
  -3,709
  -3,902
  -4,104
Cash from investing activities, $m
  -1,029
  -1,449
  -1,562
  -1,672
  -1,784
  -1,898
  -2,014
  -2,134
  -2,259
  -2,387
  -2,520
  -2,658
  -2,802
  -2,953
  -3,110
  -3,274
  -3,445
  -3,625
  -3,813
  -4,009
  -4,215
  -4,432
  -4,658
  -4,896
  -5,144
  -5,405
  -5,679
  -5,967
  -6,268
  -6,585
  -6,917
Free cash flow, $m
  1,809
  6,962
  7,038
  7,140
  7,263
  7,406
  7,570
  7,753
  7,955
  8,177
  8,419
  8,133
  8,414
  8,716
  9,039
  9,384
  9,751
  10,141
  10,555
  10,993
  11,457
  11,948
  12,466
  13,014
  13,591
  14,201
  14,843
  15,520
  16,232
  16,982
  17,772
Issuance/(repayment) of debt, $m
  1,704
  700
  841
  955
  1,067
  1,178
  1,289
  1,401
  1,514
  1,629
  1,746
  1,866
  1,990
  2,117
  2,249
  2,385
  2,527
  2,674
  2,827
  2,986
  3,152
  3,326
  3,507
  3,696
  3,893
  4,100
  4,317
  4,543
  4,780
  5,029
  5,289
Issuance/(repurchase) of shares, $m
  -2,601
  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  
  -768
  700
  841
  955
  1,067
  1,178
  1,289
  1,401
  1,514
  1,629
  1,746
  1,866
  1,990
  2,117
  2,249
  2,385
  2,527
  2,674
  2,827
  2,986
  3,152
  3,326
  3,507
  3,696
  3,893
  4,100
  4,317
  4,543
  4,780
  5,029
  5,289
Total cash flow (excl. dividends), $m
  965
  7,662
  7,879
  8,095
  8,330
  8,584
  8,859
  9,154
  9,469
  9,806
  10,165
  9,999
  10,404
  10,834
  11,288
  11,769
  12,278
  12,815
  13,382
  13,979
  14,609
  15,273
  15,973
  16,710
  17,485
  18,301
  19,159
  20,063
  21,012
  22,011
  23,061
Retained Cash Flow (-), $m
  2,851
  -515
  -614
  -697
  -779
  -860
  -941
  -1,023
  -1,105
  -1,189
  -1,275
  -1,363
  -1,453
  -1,546
  -1,642
  -1,742
  -1,845
  -1,952
  -2,064
  -2,180
  -2,302
  -2,428
  -2,560
  -2,698
  -2,843
  -2,994
  -3,152
  -3,317
  -3,490
  -3,671
  -3,862
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
 
  7,146
  7,265
  7,398
  7,551
  7,724
  7,918
  8,131
  8,364
  8,617
  8,890
  8,637
  8,951
  9,288
  9,646
  10,028
  10,433
  10,863
  11,318
  11,799
  12,308
  12,845
  13,413
  14,011
  14,642
  15,307
  16,008
  16,746
  17,522
  18,340
  19,200
Discount rate, %
 
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for distribution, $m
 
  6,685
  6,317
  5,937
  5,553
  5,164
  4,772
  4,378
  3,985
  3,597
  3,216
  2,676
  2,347
  2,034
  1,741
  1,469
  1,222
  1,000
  805
  637
  494
  376
  280
  204
  145
  101
  68
  45
  29
  18
  11
Current shareholders' claim on cash, %
  100
  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

Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.

FINANCIAL RATIOS  of  Mondelez International Cl A (MDLZ)

Valuation Ratios
P/E Ratio 40.4
Price to Sales 2.6
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 23.6
Price to Free Cash Flow 41.5
Growth Rates
Sales Growth Rate -12.5%
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 -5.5%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 52.5%
Total Debt to Equity 68.4%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 3.9%
Ret/ On T. Cap. - 3 Yr. Avg. 8.4%
Return On Equity 6.2%
Return On Equity - 3 Yr. Avg. 13.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 39.1%
Gross Margin - 3 Yr. Avg. 38.2%
EBITDA Margin 11.2%
EBITDA Margin - 3 Yr. Avg. 18.8%
Operating Margin 8.3%
Oper. Margin - 3 Yr. Avg. 15.4%
Pre-Tax Margin 5.6%
Pre-Tax Margin - 3 Yr. Avg. 13.2%
Net Profit Margin 6.4%
Net Profit Margin - 3 Yr. Avg. 12.4%
Effective Tax Rate 8.9%
Eff/ Tax Rate - 3 Yr. Avg. 10.1%
Payout Ratio 65.9%

MDLZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MDLZ stock intrinsic value calculation we used $25923 million for the last fiscal year's total revenue generated by Mondelez International Cl A. The default revenue input number comes from 2016 income statement of Mondelez International 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 MDLZ stock valuation model: a) initial revenue growth rate of 2.1% 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 6.9%, whose default value for MDLZ is calculated based on our internal credit rating of Mondelez International 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 Mondelez International 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 MDLZ stock the variable cost ratio is equal to 70%.

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 MDLZ 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 3.9% for Mondelez International Cl A.

Corporate tax rate of 27% is the nominal tax rate for Mondelez International 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 MDLZ 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 MDLZ are equal to 103.1%.

Life of production assets of 57.4 years is the average useful life of capital assets used in Mondelez International 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 MDLZ is equal to -14.9%. 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 - $25161 million for Mondelez International 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 1503.51 million for Mondelez International 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 Mondelez International Cl A at the current share price and the inputted number of shares is $65.9 billion.

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Financial statements of MDLZ
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