Intrinsic value of MakeMyTrip - MMYT

Previous Close

$23.95

  Intrinsic Value

$1.77

stock screener

  Rating & Target

str. sell

-93%

Previous close

$23.95

 
Intrinsic value

$1.77

 
Up/down potential

-93%

 
Rating

str. sell

We calculate the intrinsic value of MMYT 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 1.4

 

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, %
  50.90
  46.31
  42.18
  38.46
  35.11
  32.10
  29.39
  26.95
  24.76
  22.78
  21.00
  19.40
  17.96
  16.67
  15.50
  14.45
  13.51
  12.65
  11.89
  11.20
  10.58
  10.02
  9.52
  9.07
  8.66
  8.30
  7.97
  7.67
  7.40
  7.16
Revenue, $m
  1,019
  1,491
  2,120
  2,935
  3,966
  5,239
  6,778
  8,605
  10,736
  13,182
  15,951
  19,046
  22,467
  26,212
  30,274
  34,649
  39,329
  44,306
  49,573
  55,126
  60,958
  67,068
  73,453
  80,113
  87,052
  94,273
  101,783
  109,589
  117,701
  126,130
Variable operating expenses, $m
  1,270
  1,805
  2,519
  3,443
  4,612
  6,056
  7,802
  9,874
  12,290
  15,064
  18,089
  21,599
  25,479
  29,726
  34,333
  39,294
  44,601
  50,245
  56,219
  62,516
  69,130
  76,059
  83,300
  90,854
  98,723
  106,912
  115,428
  124,280
  133,480
  143,039
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
  1,270
  1,805
  2,519
  3,443
  4,612
  6,056
  7,802
  9,874
  12,290
  15,064
  18,089
  21,599
  25,479
  29,726
  34,333
  39,294
  44,601
  50,245
  56,219
  62,516
  69,130
  76,059
  83,300
  90,854
  98,723
  106,912
  115,428
  124,280
  133,480
  143,039
Operating income, $m
  -251
  -315
  -399
  -508
  -646
  -817
  -1,023
  -1,268
  -1,554
  -1,882
  -2,138
  -2,553
  -3,012
  -3,514
  -4,059
  -4,645
  -5,272
  -5,940
  -6,646
  -7,390
  -8,172
  -8,991
  -9,847
  -10,740
  -11,670
  -12,638
  -13,645
  -14,692
  -15,779
  -16,909
EBITDA, $m
  -107
  -156
  -222
  -307
  -415
  -549
  -710
  -901
  -1,124
  -1,381
  -1,670
  -1,995
  -2,353
  -2,745
  -3,171
  -3,629
  -4,119
  -4,640
  -5,192
  -5,773
  -6,384
  -7,024
  -7,693
  -8,390
  -9,117
  -9,873
  -10,660
  -11,477
  -12,327
  -13,209
Interest expense (income), $m
  4
  4
  590
  1,394
  2,466
  3,856
  5,612
  7,782
  10,407
  13,521
  17,153
  21,322
  26,041
  31,317
  37,149
  43,531
  50,457
  57,914
  65,890
  74,374
  83,352
  92,817
  102,758
  113,172
  124,055
  135,409
  147,236
  159,545
  172,345
  185,650
  199,477
Earnings before tax, $m
  -255
  -905
  -1,793
  -2,974
  -4,502
  -6,429
  -8,806
  -11,675
  -15,075
  -19,035
  -23,460
  -28,595
  -34,329
  -40,663
  -47,590
  -55,102
  -63,186
  -71,830
  -81,019
  -90,743
  -100,989
  -111,750
  -123,019
  -134,796
  -147,079
  -159,875
  -173,190
  -187,037
  -201,429
  -216,387
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
  -255
  -905
  -1,793
  -2,974
  -4,502
  -6,429
  -8,806
  -11,675
  -15,075
  -19,035
  -23,460
  -28,595
  -34,329
  -40,663
  -47,590
  -55,102
  -63,186
  -71,830
  -81,019
  -90,743
  -100,989
  -111,750
  -123,019
  -134,796
  -147,079
  -159,875
  -173,190
  -187,037
  -201,429
  -216,387

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
  2,381
  3,483
  4,952
  6,857
  9,265
  12,240
  15,837
  20,106
  25,084
  30,799
  37,268
  44,499
  52,493
  61,242
  70,735
  80,956
  91,890
  103,518
  115,826
  128,799
  142,426
  156,700
  171,618
  187,181
  203,393
  220,265
  237,810
  256,048
  275,001
  294,697
Adjusted assets (=assets-cash), $m
  2,381
  3,483
  4,952
  6,857
  9,265
  12,240
  15,837
  20,106
  25,084
  30,799
  37,268
  44,499
  52,493
  61,242
  70,735
  80,956
  91,890
  103,518
  115,826
  128,799
  142,426
  156,700
  171,618
  187,181
  203,393
  220,265
  237,810
  256,048
  275,001
  294,697
Revenue / Adjusted assets
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
  0.428
Average production assets, $m
  897
  1,312
  1,865
  2,583
  3,490
  4,610
  5,965
  7,573
  9,448
  11,600
  14,037
  16,760
  19,771
  23,066
  26,642
  30,491
  34,609
  38,989
  43,625
  48,511
  53,643
  59,020
  64,638
  70,500
  76,606
  82,961
  89,569
  96,438
  103,576
  110,995
Working capital, $m
  -74
  -109
  -155
  -214
  -289
  -382
  -495
  -628
  -784
  -962
  -1,164
  -1,390
  -1,640
  -1,913
  -2,210
  -2,529
  -2,871
  -3,234
  -3,619
  -4,024
  -4,450
  -4,896
  -5,362
  -5,848
  -6,355
  -6,882
  -7,430
  -8,000
  -8,592
  -9,208
Total debt, $m
  106
  250
  443
  692
  1,008
  1,397
  1,869
  2,428
  3,080
  3,829
  4,676
  5,623
  6,671
  7,817
  9,060
  10,399
  11,832
  13,355
  14,967
  16,667
  18,452
  20,322
  22,276
  24,315
  26,439
  28,649
  30,947
  33,336
  35,819
  38,399
Total liabilities, $m
  312
  456
  649
  898
  1,214
  1,603
  2,075
  2,634
  3,286
  4,035
  4,882
  5,829
  6,877
  8,023
  9,266
  10,605
  12,038
  13,561
  15,173
  16,873
  18,658
  20,528
  22,482
  24,521
  26,644
  28,855
  31,153
  33,542
  36,025
  38,605
Total equity, $m
  2,069
  3,027
  4,304
  5,959
  8,051
  10,636
  13,763
  17,472
  21,798
  26,764
  32,386
  38,670
  45,616
  53,219
  61,468
  70,351
  79,852
  89,957
  100,652
  111,926
  123,768
  136,173
  149,136
  162,660
  176,749
  191,410
  206,657
  222,506
  238,976
  256,091
Total liabilities and equity, $m
  2,381
  3,483
  4,953
  6,857
  9,265
  12,239
  15,838
  20,106
  25,084
  30,799
  37,268
  44,499
  52,493
  61,242
  70,734
  80,956
  91,890
  103,518
  115,825
  128,799
  142,426
  156,701
  171,618
  187,181
  203,393
  220,265
  237,810
  256,048
  275,001
  294,696
Debt-to-equity ratio
  0.050
  0.080
  0.100
  0.120
  0.130
  0.130
  0.140
  0.140
  0.140
  0.140
  0.140
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
  0.150
Adjusted equity ratio
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869
  0.869

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -255
  -905
  -1,793
  -2,974
  -4,502
  -6,429
  -8,806
  -11,675
  -15,075
  -19,035
  -23,460
  -28,595
  -34,329
  -40,663
  -47,590
  -55,102
  -63,186
  -71,830
  -81,019
  -90,743
  -100,989
  -111,750
  -123,019
  -134,796
  -147,079
  -159,875
  -173,190
  -187,037
  -201,429
  -216,387
Depreciation, amort., depletion, $m
  145
  158
  177
  201
  231
  268
  314
  367
  430
  501
  468
  559
  659
  769
  888
  1,016
  1,154
  1,300
  1,454
  1,617
  1,788
  1,967
  2,155
  2,350
  2,554
  2,765
  2,986
  3,215
  3,453
  3,700
Funds from operations, $m
  -110
  -746
  -1,616
  -2,774
  -4,271
  -6,161
  -8,492
  -11,308
  -14,646
  -18,533
  -22,992
  -28,036
  -33,670
  -39,894
  -46,702
  -54,086
  -62,033
  -70,530
  -79,565
  -89,126
  -99,201
  -109,782
  -120,865
  -132,446
  -144,526
  -157,109
  -170,204
  -183,822
  -197,977
  -212,687
Change in working capital, $m
  -25
  -34
  -46
  -60
  -75
  -93
  -112
  -133
  -156
  -179
  -202
  -226
  -250
  -273
  -297
  -319
  -342
  -363
  -385
  -405
  -426
  -446
  -466
  -486
  -507
  -527
  -548
  -570
  -592
  -615
Cash from operations, $m
  -85
  -712
  -1,570
  -2,714
  -4,196
  -6,068
  -8,380
  -11,175
  -14,490
  -18,355
  -22,790
  -27,810
  -33,420
  -39,620
  -46,405
  -53,766
  -61,691
  -70,167
  -79,181
  -88,720
  -98,775
  -109,336
  -120,399
  -131,959
  -144,019
  -156,582
  -169,656
  -183,252
  -197,385
  -212,071
Maintenance CAPEX, $m
  -20
  -30
  -44
  -62
  -86
  -116
  -154
  -199
  -252
  -315
  -387
  -468
  -559
  -659
  -769
  -888
  -1,016
  -1,154
  -1,300
  -1,454
  -1,617
  -1,788
  -1,967
  -2,155
  -2,350
  -2,554
  -2,765
  -2,986
  -3,215
  -3,453
New CAPEX, $m
  -303
  -415
  -553
  -717
  -907
  -1,120
  -1,355
  -1,608
  -1,875
  -2,152
  -2,437
  -2,724
  -3,011
  -3,295
  -3,575
  -3,850
  -4,118
  -4,380
  -4,636
  -4,886
  -5,133
  -5,376
  -5,619
  -5,861
  -6,106
  -6,355
  -6,608
  -6,869
  -7,138
  -7,418
Cash from investing activities, $m
  -323
  -445
  -597
  -779
  -993
  -1,236
  -1,509
  -1,807
  -2,127
  -2,467
  -2,824
  -3,192
  -3,570
  -3,954
  -4,344
  -4,738
  -5,134
  -5,534
  -5,936
  -6,340
  -6,750
  -7,164
  -7,586
  -8,016
  -8,456
  -8,909
  -9,373
  -9,855
  -10,353
  -10,871
Free cash flow, $m
  -408
  -1,157
  -2,167
  -3,494
  -5,189
  -7,305
  -9,889
  -12,981
  -16,617
  -20,822
  -25,614
  -31,002
  -36,990
  -43,575
  -50,750
  -58,504
  -66,825
  -75,700
  -85,116
  -95,061
  -105,525
  -116,501
  -127,985
  -139,975
  -152,475
  -165,490
  -179,030
  -193,107
  -207,738
  -222,942
Issuance/(repayment) of debt, $m
  105
  144
  192
  250
  315
  390
  471
  559
  652
  749
  847
  947
  1,047
  1,146
  1,244
  1,339
  1,432
  1,523
  1,612
  1,699
  1,785
  1,870
  1,954
  2,039
  2,124
  2,210
  2,298
  2,389
  2,483
  2,580
Issuance/(repurchase) of shares, $m
  955
  1,863
  3,070
  4,630
  6,595
  9,014
  11,932
  15,385
  19,401
  24,001
  29,082
  34,879
  41,275
  48,266
  55,839
  63,984
  72,687
  81,935
  91,715
  102,016
  112,831
  124,154
  135,983
  148,319
  161,168
  174,536
  188,437
  202,885
  217,900
  233,502
Cash from financing (excl. dividends), $m  
  1,060
  2,007
  3,262
  4,880
  6,910
  9,404
  12,403
  15,944
  20,053
  24,750
  29,929
  35,826
  42,322
  49,412
  57,083
  65,323
  74,119
  83,458
  93,327
  103,715
  114,616
  126,024
  137,937
  150,358
  163,292
  176,746
  190,735
  205,274
  220,383
  236,082
Total cash flow (excl. dividends), $m
  653
  850
  1,095
  1,386
  1,721
  2,099
  2,515
  2,963
  3,436
  3,927
  4,316
  4,824
  5,333
  5,837
  6,333
  6,819
  7,294
  7,758
  8,211
  8,655
  9,092
  9,523
  9,953
  10,383
  10,816
  11,256
  11,706
  12,168
  12,645
  13,140
Retained Cash Flow (-), $m
  -955
  -1,863
  -3,070
  -4,630
  -6,595
  -9,014
  -11,932
  -15,385
  -19,401
  -24,001
  -29,082
  -34,879
  -41,275
  -48,266
  -55,839
  -63,984
  -72,687
  -81,935
  -91,715
  -102,016
  -112,831
  -124,154
  -135,983
  -148,319
  -161,168
  -174,536
  -188,437
  -202,885
  -217,900
  -233,502
Prev. year cash balance distribution, $m
  190
  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
  -113
  -1,012
  -1,975
  -3,244
  -4,873
  -6,915
  -9,417
  -12,422
  -15,965
  -20,073
  -24,766
  -30,054
  -35,942
  -42,429
  -49,506
  -57,165
  -65,393
  -74,177
  -83,504
  -93,361
  -103,739
  -114,631
  -126,030
  -137,937
  -150,352
  -163,280
  -176,732
  -190,718
  -205,255
  -220,362
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
  -108
  -927
  -1,719
  -2,671
  -3,777
  -5,019
  -6,362
  -7,764
  -9,171
  -10,524
  -11,761
  -12,825
  -13,666
  -14,244
  -14,534
  -14,527
  -14,228
  -13,660
  -12,857
  -11,863
  -10,730
  -9,511
  -8,260
  -7,025
  -5,849
  -4,764
  -3,793
  -2,951
  -2,241
  -1,659
Current shareholders' claim on cash, %
  56.2
  28.0
  13.1
  6.0
  2.7
  1.2
  0.5
  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

MakeMyTrip Limited is an online travel company in India. The Company's services and products include air ticketing, hotels, packages, rail tickets, bus tickets, car hire and ancillary travel requirements, such as facilitating access to third-party travel insurance and visa processing. Its segments include Air ticketing, which provides the facility to book international and domestic air tickets through an Internet-based platform; Hotels and packages, which provides holiday packages and hotel reservations through an Internet-based platform, call-centers and branch offices, and Others, which include advertisement income from hosting advertisements on its Internet Web-sites, income from sale of rail and bus tickets and income from facilitating Website access to a travel insurance company. Through the Company's Website, www.makemytrip.com, and mobile platforms, travelers can research, plan and book a range of travel services and products in India, as well as overseas.

FINANCIAL RATIOS  of  MakeMyTrip (MMYT)

Valuation Ratios
P/E Ratio -20
Price to Sales 4.9
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow -20.3
Price to Free Cash Flow -17.9
Growth Rates
Sales Growth Rate 33.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 36.4%
Cap. Spend. - 3 Yr. Gr. Rate 20.1%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0.1%
Total Debt to Equity 0.1%
Interest Coverage -27
Management Effectiveness
Return On Assets -10.9%
Ret/ On Assets - 3 Yr. Avg. -14.3%
Return On Total Capital -13%
Ret/ On T. Cap. - 3 Yr. Avg. -21.6%
Return On Equity -14.8%
Return On Equity - 3 Yr. Avg. -34%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 61.2%
Gross Margin - 3 Yr. Avg. 52.6%
EBITDA Margin -20.5%
EBITDA Margin - 3 Yr. Avg. -15.6%
Operating Margin -30.1%
Oper. Margin - 3 Yr. Avg. -18.3%
Pre-Tax Margin -24.6%
Pre-Tax Margin - 3 Yr. Avg. -18.9%
Net Profit Margin -24.6%
Net Profit Margin - 3 Yr. Avg. -19%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. -0.4%
Payout Ratio 0%

MMYT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MMYT stock intrinsic value calculation we used $675.256 million for the last fiscal year's total revenue generated by MakeMyTrip. The default revenue input number comes from 0001 income statement of MakeMyTrip. 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 MMYT stock valuation model: a) initial revenue growth rate of 50.9% 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 MMYT is calculated based on our internal credit rating of MakeMyTrip, 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 MakeMyTrip.
    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 MMYT stock the variable cost ratio is equal to 130.4%.

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 MMYT 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 556.9% for MakeMyTrip.

Corporate tax rate of 27% is the nominal tax rate for MakeMyTrip. 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 MMYT 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 MMYT are equal to 88%.

Life of production assets of 269.4 years is the average useful life of capital assets used in MakeMyTrip 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 MMYT is equal to -7.3%. 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 - $1558.634 million for MakeMyTrip - 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 58.218 million for MakeMyTrip 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 MakeMyTrip at the current share price and the inputted number of shares is $1.4 billion.

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COMPANY NEWS

▶ Game-Changers Ahead of Us, Earnings Behind Us   [Sep-12-18 02:19PM  Motley Fool]
▶ The 3 Stocks on the MFM Team's Radar   [Aug-14-18 03:34PM  Motley Fool]
▶ MakeMyTrip: Fiscal 1Q Earnings Snapshot   [09:35AM  Associated Press]
▶ Log Onto a Huge Internet Delivery Services Boom   [Jun-28-18 11:54AM  Zacks]
▶ MakeMyTrip: Fiscal 4Q Earnings Snapshot   [May-30-18 08:31AM  Associated Press]
▶ BRIEF-MakeMyTrip Announces Partnership With OYO   [Feb-26-18 08:11AM  Reuters]
▶ MakeMyTrip reports 3Q loss   [Feb-08-18 09:40AM  Associated Press]
▶ The Evolution of My Research Process - Part II   [Feb-06-18 12:14PM  GuruFocus.com]
▶ ETFs with exposure to MakeMyTrip Ltd. : December 19, 2017   [Dec-19-17 01:38PM  Capital Cube]
▶ ETFs with exposure to MakeMyTrip Ltd. : November 29, 2017   [Nov-29-17 11:55AM  Capital Cube]
▶ ETFs with exposure to MakeMyTrip Ltd. : November 17, 2017   [Nov-17-17 12:25PM  Capital Cube]
▶ ETFs with exposure to MakeMyTrip Ltd. : November 7, 2017   [Nov-07-17 10:30AM  Capital Cube]
▶ Why MakeMyTrip Shares Plunged Today   [Nov-01-17 04:37PM  Motley Fool]
▶ MakeMyTrip reports 2Q loss   [09:05AM  Associated Press]
▶ ETFs with exposure to MakeMyTrip Ltd. : October 27, 2017   [Oct-27-17 11:04AM  Capital Cube]
▶ ETFs with exposure to MakeMyTrip Ltd. : October 11, 2017   [Oct-11-17 11:49AM  Capital Cube]
▶ Yatra Online Is a Long-Term Value Creator   [Oct-03-17 12:36PM  GuruFocus.com]
▶ MakeMyTrip Limited (MMYT): Financial Strength Analysis   [Sep-19-17 10:57AM  Simply Wall St.]
▶ QVT Financials Investments, Performance, Letters   [Aug-30-17 10:56AM  Insider Monkey]
▶ MakeMyTrip to Use the Travelport Platform   [03:30AM  PR Newswire]
▶ MakeMyTrip reports 1Q loss   [Aug-09-17 11:00PM  Associated Press]
▶ ETFs with exposure to MakeMyTrip Ltd. : August 8, 2017   [Aug-08-17 04:54PM  Capital Cube]
▶ ETFs with exposure to MakeMyTrip Ltd. : July 24, 2017   [Jul-24-17 05:19PM  Capital Cube]
▶ MakeMyTrip Clears Technical Benchmark, Hitting 80-Plus RS Rating   [Jul-21-17 03:00AM  Investor's Business Daily]
▶ George Soros' Best-Performing Stocks of 2017 So Far   [May-13-17 10:41AM  Motley Fool]
▶ Why MakeMyTrip Shares Plunged Today   [May-03-17 05:23PM  Motley Fool]
▶ MakeMyTrip Limited Announces $330 Million Equity Financing   [May-02-17 04:32PM  GlobeNewswire]
▶ ETFs with exposure to MakeMyTrip Ltd. : April 7, 2017   [Apr-07-17 05:04PM  Capital Cube]
▶ Maintaining My Bullish View on MakeMyTrip   [Feb-02-17 11:00AM  GuruFocus.com]
▶ MakeMyTrip posts 3Q profit   [10:27AM  Associated Press]

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