Intrinsic value of MakeMyTrip Limited - MMYT

Previous Close

$27.61

  Intrinsic Value

$1.01

stock screener

  Rating & Target

str. sell

-96%

Previous close

$27.61

 
Intrinsic value

$1.01

 
Up/down potential

-96%

 
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 2.8

 

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
  1,490
  2,119
  2,934
  3,964
  5,237
  6,776
  8,602
  10,732
  13,177
  15,945
  19,038
  22,458
  26,202
  30,263
  34,636
  39,314
  44,289
  49,555
  55,105
  60,935
  67,042
  73,425
  80,083
  87,019
  94,238
  101,744
  109,547
  117,656
  126,082
Variable operating expenses, $m
  1,270
  1,805
  2,517
  3,442
  4,610
  6,053
  7,798
  9,869
  12,284
  15,056
  18,080
  21,588
  25,466
  29,711
  34,316
  39,275
  44,579
  50,220
  56,191
  62,485
  69,096
  76,021
  83,258
  90,808
  98,673
  106,858
  115,370
  124,218
  133,413
  142,968
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
  2,517
  3,442
  4,610
  6,053
  7,798
  9,869
  12,284
  15,056
  18,080
  21,588
  25,466
  29,711
  34,316
  39,275
  44,579
  50,220
  56,191
  62,485
  69,096
  76,021
  83,258
  90,808
  98,673
  106,858
  115,370
  124,218
  133,413
  142,968
Operating income, $m
  -251
  -314
  -399
  -508
  -646
  -816
  -1,022
  -1,267
  -1,552
  -1,880
  -2,135
  -2,550
  -3,008
  -3,509
  -4,053
  -4,639
  -5,265
  -5,931
  -6,637
  -7,380
  -8,161
  -8,979
  -9,833
  -10,725
  -11,654
  -12,621
  -13,626
  -14,671
  -15,757
  -16,886
EBITDA, $m
  -107
  -156
  -222
  -307
  -415
  -548
  -709
  -900
  -1,122
  -1,378
  -1,668
  -1,991
  -2,349
  -2,740
  -3,165
  -3,623
  -4,112
  -4,632
  -5,183
  -5,764
  -6,373
  -7,012
  -7,680
  -8,376
  -9,102
  -9,857
  -10,642
  -11,458
  -12,306
  -13,187
Interest expense (income), $m
  4
  4
  589
  1,393
  2,465
  3,854
  5,610
  7,779
  10,403
  13,516
  17,146
  21,313
  26,031
  31,305
  37,134
  43,515
  50,437
  57,891
  65,865
  74,345
  83,320
  92,781
  102,719
  113,129
  124,008
  135,357
  147,180
  159,484
  172,279
  185,579
  199,401
Earnings before tax, $m
  -255
  -904
  -1,792
  -2,972
  -4,500
  -6,426
  -8,801
  -11,669
  -15,068
  -19,025
  -23,449
  -28,581
  -34,312
  -40,643
  -47,568
  -55,076
  -63,156
  -71,796
  -80,982
  -90,700
  -100,942
  -111,698
  -122,962
  -134,733
  -147,011
  -159,801
  -173,110
  -186,950
  -201,337
  -216,287
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
  -904
  -1,792
  -2,972
  -4,500
  -6,426
  -8,801
  -11,669
  -15,068
  -19,025
  -23,449
  -28,581
  -34,312
  -40,643
  -47,568
  -55,076
  -63,156
  -71,796
  -80,982
  -90,700
  -100,942
  -111,698
  -122,962
  -134,733
  -147,011
  -159,801
  -173,110
  -186,950
  -201,337
  -216,287

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
  2,380
  3,482
  4,951
  6,855
  9,262
  12,235
  15,831
  20,098
  25,074
  30,787
  37,254
  44,482
  52,473
  61,219
  70,708
  80,925
  91,855
  103,479
  115,782
  128,750
  142,372
  156,641
  171,553
  187,110
  203,316
  220,181
  237,720
  255,951
  274,897
  294,585
Adjusted assets (=assets-cash), $m
  2,380
  3,482
  4,951
  6,855
  9,262
  12,235
  15,831
  20,098
  25,074
  30,787
  37,254
  44,482
  52,473
  61,219
  70,708
  80,925
  91,855
  103,479
  115,782
  128,750
  142,372
  156,641
  171,553
  187,110
  203,316
  220,181
  237,720
  255,951
  274,897
  294,585
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
  896
  1,311
  1,865
  2,582
  3,488
  4,608
  5,963
  7,570
  9,444
  11,596
  14,031
  16,754
  19,763
  23,057
  26,631
  30,480
  34,596
  38,974
  43,608
  48,492
  53,623
  58,997
  64,614
  70,473
  76,577
  82,929
  89,535
  96,401
  103,537
  110,953
Working capital, $m
  -74
  -109
  -155
  -214
  -289
  -382
  -495
  -628
  -783
  -962
  -1,164
  -1,390
  -1,639
  -1,913
  -2,209
  -2,528
  -2,870
  -3,233
  -3,617
  -4,023
  -4,448
  -4,894
  -5,360
  -5,846
  -6,352
  -6,879
  -7,427
  -7,997
  -8,589
  -9,204
Total debt, $m
  106
  250
  443
  692
  1,007
  1,397
  1,868
  2,427
  3,079
  3,827
  4,674
  5,621
  6,668
  7,814
  9,057
  10,395
  11,827
  13,350
  14,961
  16,660
  18,445
  20,314
  22,268
  24,305
  26,428
  28,638
  30,935
  33,324
  35,806
  38,385
Total liabilities, $m
  312
  456
  649
  898
  1,213
  1,603
  2,074
  2,633
  3,285
  4,033
  4,880
  5,827
  6,874
  8,020
  9,263
  10,601
  12,033
  13,556
  15,167
  16,866
  18,651
  20,520
  22,473
  24,511
  26,634
  28,844
  31,141
  33,530
  36,012
  38,591
Total equity, $m
  2,068
  3,026
  4,302
  5,957
  8,048
  10,632
  13,757
  17,466
  21,790
  26,754
  32,373
  38,655
  45,599
  53,199
  61,445
  70,324
  79,822
  89,923
  100,614
  111,884
  123,721
  136,121
  149,080
  162,598
  176,682
  191,338
  206,579
  222,422
  238,886
  255,994
Total liabilities and equity, $m
  2,380
  3,482
  4,951
  6,855
  9,261
  12,235
  15,831
  20,099
  25,075
  30,787
  37,253
  44,482
  52,473
  61,219
  70,708
  80,925
  91,855
  103,479
  115,781
  128,750
  142,372
  156,641
  171,553
  187,109
  203,316
  220,182
  237,720
  255,952
  274,898
  294,585
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
  -904
  -1,792
  -2,972
  -4,500
  -6,426
  -8,801
  -11,669
  -15,068
  -19,025
  -23,449
  -28,581
  -34,312
  -40,643
  -47,568
  -55,076
  -63,156
  -71,796
  -80,982
  -90,700
  -100,942
  -111,698
  -122,962
  -134,733
  -147,011
  -159,801
  -173,110
  -186,950
  -201,337
  -216,287
Depreciation, amort., depletion, $m
  145
  159
  177
  201
  231
  268
  314
  367
  430
  501
  468
  558
  659
  769
  888
  1,016
  1,153
  1,299
  1,454
  1,616
  1,787
  1,967
  2,154
  2,349
  2,553
  2,764
  2,984
  3,213
  3,451
  3,698
Funds from operations, $m
  -110
  -745
  -1,615
  -2,772
  -4,268
  -6,158
  -8,488
  -11,302
  -14,638
  -18,524
  -22,981
  -28,022
  -33,654
  -39,875
  -46,680
  -54,060
  -62,003
  -70,497
  -79,528
  -89,084
  -99,154
  -109,731
  -120,808
  -132,384
  -144,459
  -157,037
  -170,126
  -183,737
  -197,885
  -212,589
Change in working capital, $m
  -25
  -34
  -46
  -59
  -75
  -93
  -112
  -133
  -155
  -178
  -202
  -226
  -250
  -273
  -296
  -319
  -341
  -363
  -384
  -405
  -426
  -446
  -466
  -486
  -506
  -527
  -548
  -570
  -592
  -615
Cash from operations, $m
  -85
  -711
  -1,569
  -2,712
  -4,193
  -6,065
  -8,375
  -11,169
  -14,483
  -18,346
  -22,779
  -27,797
  -33,404
  -39,601
  -46,383
  -53,741
  -61,662
  -70,134
  -79,144
  -88,679
  -98,729
  -109,285
  -120,343
  -131,898
  -143,952
  -156,510
  -169,578
  -183,167
  -197,293
  -211,973
Maintenance CAPEX, $m
  -20
  -30
  -44
  -62
  -86
  -116
  -154
  -199
  -252
  -315
  -387
  -468
  -558
  -659
  -769
  -888
  -1,016
  -1,153
  -1,299
  -1,454
  -1,616
  -1,787
  -1,967
  -2,154
  -2,349
  -2,553
  -2,764
  -2,984
  -3,213
  -3,451
New CAPEX, $m
  -302
  -415
  -553
  -717
  -907
  -1,120
  -1,354
  -1,607
  -1,874
  -2,152
  -2,436
  -2,723
  -3,010
  -3,294
  -3,574
  -3,848
  -4,116
  -4,378
  -4,634
  -4,884
  -5,131
  -5,374
  -5,617
  -5,859
  -6,104
  -6,352
  -6,606
  -6,866
  -7,136
  -7,415
Cash from investing activities, $m
  -322
  -445
  -597
  -779
  -993
  -1,236
  -1,508
  -1,806
  -2,126
  -2,467
  -2,823
  -3,191
  -3,568
  -3,953
  -4,343
  -4,736
  -5,132
  -5,531
  -5,933
  -6,338
  -6,747
  -7,161
  -7,584
  -8,013
  -8,453
  -8,905
  -9,370
  -9,850
  -10,349
  -10,866
Free cash flow, $m
  -407
  -1,156
  -2,166
  -3,491
  -5,186
  -7,301
  -9,883
  -12,975
  -16,609
  -20,812
  -25,601
  -30,987
  -36,972
  -43,554
  -50,726
  -58,477
  -66,794
  -75,665
  -85,076
  -95,017
  -105,476
  -116,447
  -127,926
  -139,911
  -152,405
  -165,414
  -178,948
  -193,018
  -207,643
  -222,840
Issuance/(repayment) of debt, $m
  105
  144
  192
  249
  315
  390
  471
  559
  652
  748
  847
  947
  1,047
  1,146
  1,243
  1,339
  1,432
  1,523
  1,612
  1,699
  1,785
  1,869
  1,954
  2,038
  2,123
  2,209
  2,298
  2,388
  2,482
  2,579
Issuance/(repurchase) of shares, $m
  954
  1,861
  3,068
  4,627
  6,591
  9,010
  11,926
  15,378
  19,392
  23,990
  29,068
  34,863
  41,256
  48,243
  55,814
  63,955
  72,654
  81,897
  91,673
  101,970
  112,780
  124,097
  135,921
  148,252
  161,094
  174,457
  188,351
  202,793
  217,801
  233,396
Cash from financing (excl. dividends), $m  
  1,059
  2,005
  3,260
  4,876
  6,906
  9,400
  12,397
  15,937
  20,044
  24,738
  29,915
  35,810
  42,303
  49,389
  57,057
  65,294
  74,086
  83,420
  93,285
  103,669
  114,565
  125,966
  137,875
  150,290
  163,217
  176,666
  190,649
  205,181
  220,283
  235,975
Total cash flow (excl. dividends), $m
  652
  850
  1,095
  1,385
  1,721
  2,098
  2,514
  2,962
  3,435
  3,926
  4,314
  4,823
  5,331
  5,835
  6,331
  6,817
  7,292
  7,755
  8,208
  8,652
  9,088
  9,520
  9,949
  10,379
  10,812
  11,252
  11,701
  12,163
  12,640
  13,135
Retained Cash Flow (-), $m
  -954
  -1,861
  -3,068
  -4,627
  -6,591
  -9,010
  -11,926
  -15,378
  -19,392
  -23,990
  -29,068
  -34,863
  -41,256
  -48,243
  -55,814
  -63,955
  -72,654
  -81,897
  -91,673
  -101,970
  -112,780
  -124,097
  -135,921
  -148,252
  -161,094
  -174,457
  -188,351
  -202,793
  -217,801
  -233,396
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
  -112
  -1,011
  -1,974
  -3,242
  -4,871
  -6,911
  -9,412
  -12,416
  -15,957
  -20,064
  -24,754
  -30,040
  -35,925
  -42,408
  -49,483
  -57,138
  -65,362
  -74,142
  -83,465
  -93,318
  -103,691
  -114,578
  -125,972
  -137,873
  -150,282
  -163,205
  -176,650
  -190,630
  -205,161
  -220,261
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
  -926
  -1,718
  -2,669
  -3,775
  -5,016
  -6,359
  -7,760
  -9,167
  -10,519
  -11,755
  -12,819
  -13,659
  -14,237
  -14,527
  -14,520
  -14,222
  -13,654
  -12,851
  -11,858
  -10,725
  -9,507
  -8,256
  -7,022
  -5,846
  -4,762
  -3,791
  -2,949
  -2,240
  -1,658
Current shareholders' claim on cash, %
  72.1
  48.1
  30.8
  19.3
  12.0
  7.4
  4.6
  2.8
  1.7
  1.1
  0.7
  0.4
  0.3
  0.2
  0.1
  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

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 Limited (MMYT)

Valuation Ratios
P/E Ratio -23
Price to Sales 5.7
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow -23.4
Price to Free Cash Flow -20.6
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 million for the last fiscal year's total revenue generated by MakeMyTrip Limited. The default revenue input number comes from 0001 income statement of MakeMyTrip Limited. 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 Limited, 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 Limited.
    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 Limited.

Corporate tax rate of 27% is the nominal tax rate for MakeMyTrip Limited. 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 Limited 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 Limited - 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 101.900 million for MakeMyTrip Limited 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 Limited at the current share price and the inputted number of shares is $2.8 billion.

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