Intrinsic value of Mondelez International Cl A - MDLZ

Previous Close

$42.45

  Intrinsic Value

$24.60

stock screener

  Rating & Target

sell

-42%

Previous close

$42.45

 
Intrinsic value

$24.60

 
Up/down potential

-42%

 
Rating

sell

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

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 63.4

 

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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  26,414
  27,021
  27,716
  28,496
  29,359
  30,307
  31,339
  32,457
  33,660
  34,952
  36,334
  37,809
  39,379
  41,048
  42,818
  44,695
  46,681
  48,782
  51,001
  53,344
  55,817
  58,425
  61,173
  64,069
  67,119
  70,331
  73,711
  77,268
  81,010
  84,946
Variable operating expenses, $m
  23,719
  24,174
  24,693
  25,276
  25,922
  26,630
  27,402
  28,237
  29,137
  30,103
  27,164
  28,266
  29,440
  30,687
  32,011
  33,414
  34,899
  36,469
  38,128
  39,880
  41,729
  43,678
  45,733
  47,898
  50,179
  52,579
  55,107
  57,766
  60,563
  63,506
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
  23,719
  24,174
  24,693
  25,276
  25,922
  26,630
  27,402
  28,237
  29,137
  30,103
  27,164
  28,266
  29,440
  30,687
  32,011
  33,414
  34,899
  36,469
  38,128
  39,880
  41,729
  43,678
  45,733
  47,898
  50,179
  52,579
  55,107
  57,766
  60,563
  63,506
Operating income, $m
  2,694
  2,848
  3,023
  3,220
  3,438
  3,677
  3,938
  4,220
  4,523
  4,849
  9,171
  9,543
  9,939
  10,360
  10,807
  11,281
  11,782
  12,312
  12,873
  13,464
  14,088
  14,746
  15,440
  16,171
  16,941
  17,751
  18,605
  19,502
  20,447
  21,440
EBITDA, $m
  11,511
  11,776
  12,079
  12,418
  12,795
  13,208
  13,658
  14,145
  14,669
  15,232
  15,834
  16,477
  17,161
  17,889
  18,660
  19,478
  20,344
  21,259
  22,226
  23,247
  24,325
  25,461
  26,659
  27,921
  29,251
  30,650
  32,123
  33,673
  35,304
  37,019
Interest expense (income), $m
  630
  953
  994
  1,041
  1,094
  1,155
  1,221
  1,294
  1,374
  1,460
  1,553
  1,653
  1,760
  1,873
  1,995
  2,123
  2,260
  2,405
  2,558
  2,720
  2,892
  3,072
  3,263
  3,465
  3,677
  3,900
  4,136
  4,383
  4,644
  4,919
  5,208
Earnings before tax, $m
  1,741
  1,854
  1,982
  2,125
  2,283
  2,456
  2,643
  2,846
  3,063
  3,296
  7,518
  7,783
  8,066
  8,366
  8,684
  9,021
  9,377
  9,754
  10,152
  10,572
  11,016
  11,483
  11,975
  12,494
  13,041
  13,616
  14,221
  14,858
  15,528
  16,233
Tax expense, $m
  470
  501
  535
  574
  616
  663
  714
  768
  827
  890
  2,030
  2,101
  2,178
  2,259
  2,345
  2,436
  2,532
  2,634
  2,741
  2,855
  2,974
  3,100
  3,233
  3,373
  3,521
  3,676
  3,840
  4,012
  4,193
  4,383
Net income, $m
  1,271
  1,353
  1,447
  1,552
  1,667
  1,793
  1,930
  2,077
  2,236
  2,406
  5,488
  5,682
  5,888
  6,107
  6,339
  6,585
  6,845
  7,121
  7,411
  7,718
  8,041
  8,383
  8,742
  9,121
  9,520
  9,939
  10,381
  10,846
  11,335
  11,850

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
  64,424
  65,906
  67,600
  69,501
  71,608
  73,920
  76,438
  79,163
  82,099
  85,249
  88,620
  92,217
  96,046
  100,116
  104,435
  109,012
  113,856
  118,979
  124,393
  130,108
  136,139
  142,499
  149,203
  156,267
  163,706
  171,539
  179,783
  188,459
  197,586
  207,186
Adjusted assets (=assets-cash), $m
  64,424
  65,906
  67,600
  69,501
  71,608
  73,920
  76,438
  79,163
  82,099
  85,249
  88,620
  92,217
  96,046
  100,116
  104,435
  109,012
  113,856
  118,979
  124,393
  130,108
  136,139
  142,499
  149,203
  156,267
  163,706
  171,539
  179,783
  188,459
  197,586
  207,186
Revenue / Adjusted assets
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
Average production assets, $m
  48,443
  49,557
  50,831
  52,261
  53,845
  55,584
  57,477
  59,526
  61,733
  64,102
  66,637
  69,342
  72,221
  75,281
  78,529
  81,970
  85,613
  89,465
  93,536
  97,834
  102,368
  107,151
  112,192
  117,503
  123,097
  128,987
  135,186
  141,710
  148,573
  155,791
Working capital, $m
  -3,222
  -3,297
  -3,381
  -3,476
  -3,582
  -3,697
  -3,823
  -3,960
  -4,107
  -4,264
  -4,433
  -4,613
  -4,804
  -5,008
  -5,224
  -5,453
  -5,695
  -5,951
  -6,222
  -6,508
  -6,810
  -7,128
  -7,463
  -7,816
  -8,189
  -8,580
  -8,993
  -9,427
  -9,883
  -10,363
Total debt, $m
  18,407
  19,275
  20,267
  21,382
  22,617
  23,971
  25,447
  27,043
  28,764
  30,610
  32,585
  34,693
  36,937
  39,322
  41,853
  44,535
  47,374
  50,376
  53,548
  56,897
  60,431
  64,158
  68,087
  72,226
  76,586
  81,176
  86,007
  91,091
  96,439
  102,065
Total liabilities, $m
  37,753
  38,621
  39,613
  40,728
  41,963
  43,317
  44,793
  46,389
  48,110
  49,956
  51,931
  54,039
  56,283
  58,668
  61,199
  63,881
  66,720
  69,722
  72,894
  76,243
  79,777
  83,504
  87,433
  91,572
  95,932
  100,522
  105,353
  110,437
  115,785
  121,411
Total equity, $m
  26,672
  27,285
  27,986
  28,774
  29,646
  30,603
  31,645
  32,773
  33,989
  35,293
  36,689
  38,178
  39,763
  41,448
  43,236
  45,131
  47,136
  49,257
  51,499
  53,865
  56,362
  58,995
  61,770
  64,694
  67,774
  71,017
  74,430
  78,022
  81,800
  85,775
Total liabilities and equity, $m
  64,425
  65,906
  67,599
  69,502
  71,609
  73,920
  76,438
  79,162
  82,099
  85,249
  88,620
  92,217
  96,046
  100,116
  104,435
  109,012
  113,856
  118,979
  124,393
  130,108
  136,139
  142,499
  149,203
  156,266
  163,706
  171,539
  179,783
  188,459
  197,585
  207,186
Debt-to-equity ratio
  0.690
  0.710
  0.720
  0.740
  0.760
  0.780
  0.800
  0.830
  0.850
  0.870
  0.890
  0.910
  0.930
  0.950
  0.970
  0.990
  1.010
  1.020
  1.040
  1.060
  1.070
  1.090
  1.100
  1.120
  1.130
  1.140
  1.160
  1.170
  1.180
  1.190
Adjusted equity ratio
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414
  0.414

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,271
  1,353
  1,447
  1,552
  1,667
  1,793
  1,930
  2,077
  2,236
  2,406
  5,488
  5,682
  5,888
  6,107
  6,339
  6,585
  6,845
  7,121
  7,411
  7,718
  8,041
  8,383
  8,742
  9,121
  9,520
  9,939
  10,381
  10,846
  11,335
  11,850
Depreciation, amort., depletion, $m
  8,817
  8,928
  9,055
  9,198
  9,357
  9,531
  9,720
  9,925
  10,146
  10,383
  6,664
  6,934
  7,222
  7,528
  7,853
  8,197
  8,561
  8,947
  9,354
  9,783
  10,237
  10,715
  11,219
  11,750
  12,310
  12,899
  13,519
  14,171
  14,857
  15,579
Funds from operations, $m
  10,088
  10,281
  10,502
  10,750
  11,024
  11,324
  11,650
  12,002
  12,382
  12,789
  12,152
  12,616
  13,110
  13,635
  14,192
  14,782
  15,407
  16,067
  16,765
  17,501
  18,278
  19,098
  19,961
  20,871
  21,829
  22,838
  23,900
  25,017
  26,193
  27,429
Change in working capital, $m
  -63
  -74
  -85
  -95
  -105
  -116
  -126
  -136
  -147
  -158
  -169
  -180
  -192
  -204
  -216
  -229
  -242
  -256
  -271
  -286
  -302
  -318
  -335
  -353
  -372
  -392
  -412
  -434
  -457
  -480
Cash from operations, $m
  10,151
  10,356
  10,587
  10,845
  11,129
  11,439
  11,776
  12,139
  12,529
  12,947
  12,320
  12,796
  13,302
  13,839
  14,408
  15,011
  15,649
  16,323
  17,035
  17,787
  18,580
  19,416
  20,297
  21,224
  22,201
  23,230
  24,312
  25,451
  26,649
  27,909
Maintenance CAPEX, $m
  -4,750
  -4,844
  -4,956
  -5,083
  -5,226
  -5,385
  -5,558
  -5,748
  -5,953
  -6,173
  -6,410
  -6,664
  -6,934
  -7,222
  -7,528
  -7,853
  -8,197
  -8,561
  -8,947
  -9,354
  -9,783
  -10,237
  -10,715
  -11,219
  -11,750
  -12,310
  -12,899
  -13,519
  -14,171
  -14,857
New CAPEX, $m
  -940
  -1,114
  -1,274
  -1,430
  -1,584
  -1,738
  -1,893
  -2,049
  -2,208
  -2,369
  -2,535
  -2,705
  -2,880
  -3,060
  -3,247
  -3,441
  -3,643
  -3,852
  -4,070
  -4,298
  -4,535
  -4,782
  -5,041
  -5,311
  -5,594
  -5,890
  -6,199
  -6,523
  -6,863
  -7,219
Cash from investing activities, $m
  -5,690
  -5,958
  -6,230
  -6,513
  -6,810
  -7,123
  -7,451
  -7,797
  -8,161
  -8,542
  -8,945
  -9,369
  -9,814
  -10,282
  -10,775
  -11,294
  -11,840
  -12,413
  -13,017
  -13,652
  -14,318
  -15,019
  -15,756
  -16,530
  -17,344
  -18,200
  -19,098
  -20,042
  -21,034
  -22,076
Free cash flow, $m
  4,461
  4,397
  4,358
  4,332
  4,319
  4,316
  4,324
  4,342
  4,368
  4,404
  3,375
  3,428
  3,488
  3,556
  3,633
  3,717
  3,809
  3,910
  4,019
  4,136
  4,262
  4,397
  4,541
  4,694
  4,857
  5,031
  5,214
  5,409
  5,615
  5,833
Issuance/(repayment) of debt, $m
  755
  868
  993
  1,114
  1,235
  1,355
  1,475
  1,597
  1,720
  1,846
  1,975
  2,108
  2,244
  2,385
  2,531
  2,682
  2,839
  3,002
  3,172
  3,349
  3,534
  3,727
  3,929
  4,139
  4,359
  4,590
  4,831
  5,084
  5,348
  5,626
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  
  755
  868
  993
  1,114
  1,235
  1,355
  1,475
  1,597
  1,720
  1,846
  1,975
  2,108
  2,244
  2,385
  2,531
  2,682
  2,839
  3,002
  3,172
  3,349
  3,534
  3,727
  3,929
  4,139
  4,359
  4,590
  4,831
  5,084
  5,348
  5,626
Total cash flow (excl. dividends), $m
  5,216
  5,265
  5,350
  5,446
  5,553
  5,671
  5,799
  5,939
  6,089
  6,250
  5,351
  5,535
  5,732
  5,941
  6,163
  6,399
  6,648
  6,912
  7,191
  7,485
  7,796
  8,124
  8,469
  8,833
  9,217
  9,621
  10,046
  10,493
  10,964
  11,459
Retained Cash Flow (-), $m
  -561
  -613
  -701
  -787
  -872
  -957
  -1,042
  -1,128
  -1,215
  -1,304
  -1,395
  -1,489
  -1,585
  -1,685
  -1,788
  -1,895
  -2,006
  -2,121
  -2,241
  -2,366
  -2,497
  -2,633
  -2,775
  -2,924
  -3,080
  -3,243
  -3,413
  -3,592
  -3,779
  -3,974
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
  129
  132
  135
  139
  142
  147
  152
  157
  162
  168
  175
  182
  189
  197
  205
  214
  223
  233
  244
  255
  267
  279
  292
  306
  320
  336
  352
  369
  386
  405
Cash available for distribution, $m
  4,655
  4,652
  4,649
  4,659
  4,681
  4,714
  4,757
  4,810
  4,873
  4,946
  3,955
  4,046
  4,147
  4,256
  4,375
  4,504
  4,642
  4,791
  4,950
  5,119
  5,299
  5,490
  5,694
  5,909
  6,137
  6,378
  6,632
  6,901
  7,185
  7,484
Discount rate, %
  7.00
  7.35
  7.72
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.86
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.70
  24.89
  26.13
  27.44
  28.81
PV of cash for distribution, $m
  4,350
  4,037
  3,720
  3,412
  3,112
  2,821
  2,540
  2,269
  2,010
  1,764
  1,206
  1,042
  890
  750
  624
  512
  414
  329
  257
  197
  148
  109
  78
  55
  38
  25
  16
  10
  6
  4
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

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 39.1
Price to Sales 2.5
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 22.9
Price to Free Cash Flow 40.2
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 $25896 million for the last fiscal year's total revenue generated by Mondelez International Cl A. The default revenue input number comes from 2017 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% 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 7%, 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 90.1%.

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 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 5.4% 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 0.5%.

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 183.4%.

Life of production assets of 10 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 -12.2%. 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 - $26111 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 1494 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 $63.4 billion.

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COMPANY NEWS

▶ [$$] Mondelez Recalls Ritz Crackers on Salmonella Concern   [04:50PM  The Wall Street Journal]
▶ 3 Values in Consumer Staples Stocks   [Jul-06-18 04:54PM  Kiplinger]
▶ 3 Second-Derivative Pot Stocks for Conservative Investors   [Jul-02-18 02:59PM  InvestorPlace]
▶ Throwing Cold Water on a Campbell-Kraft Deal   [Jun-26-18 02:01PM  Barrons.com]
▶ Will Kraft Heinz Buy Pepsico or Mondelez?   [Jun-19-18 07:02PM  TheStreet.com]
▶ [$$] How to Bet on Resurgent Consumer-Staples Shares   [Jun-14-18 02:43PM  Barrons.com]
▶ 3 Food Stocks to Please Investors' Palate   [Jun-06-18 09:31AM  Zacks]
▶ Charles Schwab: Consumer Staples Sell-Off Overdone   [May-25-18 11:44AM  Investopedia]
▶ How MKM's Jim Strugger Is Playing Mondelez   [May-14-18 04:33PM  Bloomberg Video]
▶ World Health Organization targets Trans Fats   [01:19PM  Yahoo Finance Video]
▶ The Late Morning Rundown: May 7, 2018   [12:22PM  CNBC Videos]
▶ Heres the 411 on Elon Musks sweet, new business   [10:44AM  Yahoo Finance Video]
▶ Mondelez Gobbles Up Cookie Maker Tates Bake Shop   [01:12AM  The Wall Street Journal]
▶ [$$] Mondelez Nears Deal to Buy Tates Bake Shop   [12:15AM  The Wall Street Journal]
▶ [$$] Mondelez Gobbles Up Cookie Maker Tates Bake Shop   [12:15AM  The Wall Street Journal]
▶ Whats News: Business & Finance   [May-06-18 11:37PM  The Wall Street Journal]
▶ [$$] Mondelez Nears Deal to Buy Tate's Bake Shop   [08:44PM  The Wall Street Journal]
▶ Hershey Co Stock Looks Delicious at $90 a Share   [May-04-18 01:07AM  InvestorPlace]
▶ Cupcake entrepreneur shares her secrets for success   [10:47AM  Yahoo Finance Video]
▶ Mondelez: 1Q Earnings Snapshot   [04:28PM  Associated Press]
▶ Mondelez beats the Street   [04:13PM  CNBC Videos]
▶ Mondelz International Reports Q1 Results   [04:06PM  GlobeNewswire]
▶ [$$] Mondelez bags sales, profit beat   [04:21AM  Financial Times]
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