Intrinsic value of Ryanair Holdings ADR - RYAAY

Previous Close

$85.18

  Intrinsic Value

$224.29

stock screener

  Rating & Target

str. buy

+163%

Previous close

$85.18

 
Intrinsic value

$224.29

 
Up/down potential

+163%

 
Rating

str. buy

We calculate the intrinsic value of RYAAY 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 19.6

 

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, %
  22.50
  20.75
  19.18
  17.76
  16.48
  15.33
  14.30
  13.37
  12.53
  11.78
  11.10
  10.49
  9.94
  9.45
  9.00
  8.60
  8.24
  7.92
  7.63
  7.36
  7.13
  6.91
  6.72
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.82
Revenue, $m
  10,722
  12,947
  15,430
  18,169
  21,164
  24,409
  27,900
  31,630
  35,594
  39,787
  44,205
  48,842
  53,698
  58,772
  64,064
  69,575
  75,310
  81,273
  87,472
  93,913
  100,607
  107,564
  114,796
  122,316
  130,139
  138,281
  146,759
  155,590
  164,795
  174,393
Variable operating expenses, $m
  8,105
  9,785
  11,660
  13,730
  15,992
  18,443
  21,080
  23,897
  26,892
  30,059
  33,390
  36,893
  40,561
  44,393
  48,390
  52,553
  56,885
  61,389
  66,071
  70,937
  75,993
  81,248
  86,710
  92,391
  98,300
  104,450
  110,854
  117,524
  124,477
  131,727
Fixed operating expenses, $m
  99
  101
  104
  106
  108
  111
  113
  115
  118
  121
  123
  126
  129
  132
  134
  137
  140
  144
  147
  150
  153
  157
  160
  164
  167
  171
  175
  178
  182
  186
Total operating expenses, $m
  8,204
  9,886
  11,764
  13,836
  16,100
  18,554
  21,193
  24,012
  27,010
  30,180
  33,513
  37,019
  40,690
  44,525
  48,524
  52,690
  57,025
  61,533
  66,218
  71,087
  76,146
  81,405
  86,870
  92,555
  98,467
  104,621
  111,029
  117,702
  124,659
  131,913
Operating income, $m
  2,518
  3,060
  3,666
  4,334
  5,064
  5,856
  6,707
  7,617
  8,585
  9,608
  10,692
  11,824
  13,009
  14,247
  15,539
  16,884
  18,284
  19,740
  21,254
  22,826
  24,461
  26,159
  27,925
  29,762
  31,672
  33,660
  35,731
  37,887
  40,135
  42,480
EBITDA, $m
  3,360
  4,076
  4,875
  5,757
  6,721
  7,765
  8,889
  10,090
  11,367
  12,717
  14,140
  15,633
  17,197
  18,832
  20,536
  22,311
  24,159
  26,080
  28,076
  30,152
  32,308
  34,549
  36,879
  39,302
  41,823
  44,446
  47,178
  50,023
  52,989
  56,082
Interest expense (income), $m
  0
  262
  373
  499
  639
  793
  962
  1,145
  1,342
  1,552
  1,776
  2,012
  2,261
  2,523
  2,796
  3,082
  3,381
  3,692
  4,015
  4,351
  4,701
  5,064
  5,441
  5,833
  6,241
  6,665
  7,106
  7,565
  8,043
  8,541
  9,060
Earnings before tax, $m
  2,256
  2,687
  3,167
  3,695
  4,271
  4,893
  5,562
  6,275
  7,032
  7,832
  8,679
  9,562
  10,486
  11,451
  12,457
  13,504
  14,593
  15,726
  16,903
  18,126
  19,397
  20,718
  22,092
  23,521
  25,007
  26,554
  28,166
  29,844
  31,594
  33,420
Tax expense, $m
  609
  725
  855
  998
  1,153
  1,321
  1,502
  1,694
  1,899
  2,115
  2,343
  2,582
  2,831
  3,092
  3,363
  3,646
  3,940
  4,246
  4,564
  4,894
  5,237
  5,594
  5,965
  6,351
  6,752
  7,170
  7,605
  8,058
  8,531
  9,023
Net income, $m
  1,647
  1,962
  2,312
  2,697
  3,118
  3,572
  4,060
  4,581
  5,134
  5,717
  6,336
  6,981
  7,655
  8,359
  9,093
  9,858
  10,653
  11,480
  12,339
  13,232
  14,160
  15,124
  16,127
  17,170
  18,255
  19,385
  20,561
  21,786
  23,064
  24,396

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
  17,491
  21,121
  25,171
  29,640
  34,525
  39,819
  45,514
  51,599
  58,066
  64,906
  72,112
  79,678
  87,599
  95,876
  104,508
  113,499
  122,855
  132,583
  142,695
  153,203
  164,122
  175,471
  187,269
  199,537
  212,299
  225,581
  239,411
  253,817
  268,833
  284,490
Adjusted assets (=assets-cash), $m
  17,491
  21,121
  25,171
  29,640
  34,525
  39,819
  45,514
  51,599
  58,066
  64,906
  72,112
  79,678
  87,599
  95,876
  104,508
  113,499
  122,855
  132,583
  142,695
  153,203
  164,122
  175,471
  187,269
  199,537
  212,299
  225,581
  239,411
  253,817
  268,833
  284,490
Revenue / Adjusted assets
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
  0.613
Average production assets, $m
  10,872
  13,128
  15,646
  18,424
  21,460
  24,751
  28,290
  32,073
  36,093
  40,344
  44,823
  49,526
  54,450
  59,595
  64,960
  70,549
  76,364
  82,411
  88,696
  95,228
  102,015
  109,070
  116,403
  124,028
  131,961
  140,217
  148,813
  157,768
  167,102
  176,834
Working capital, $m
  -3,699
  -4,467
  -5,323
  -6,268
  -7,302
  -8,421
  -9,625
  -10,912
  -12,280
  -13,727
  -15,251
  -16,851
  -18,526
  -20,276
  -22,102
  -24,003
  -25,982
  -28,039
  -30,178
  -32,400
  -34,709
  -37,110
  -39,605
  -42,199
  -44,898
  -47,707
  -50,632
  -53,679
  -56,854
  -60,165
Total debt, $m
  6,916
  9,239
  11,831
  14,692
  17,818
  21,206
  24,851
  28,745
  32,884
  37,262
  41,873
  46,715
  51,785
  57,083
  62,607
  68,361
  74,349
  80,575
  87,046
  93,771
  100,760
  108,023
  115,574
  123,425
  131,593
  140,094
  148,945
  158,165
  167,775
  177,796
Total liabilities, $m
  11,194
  13,517
  16,109
  18,970
  22,096
  25,484
  29,129
  33,023
  37,162
  41,540
  46,152
  50,994
  56,064
  61,361
  66,885
  72,640
  78,627
  84,853
  91,325
  98,050
  105,038
  112,301
  119,852
  127,703
  135,871
  144,372
  153,223
  162,443
  172,053
  182,074
Total equity, $m
  6,297
  7,603
  9,061
  10,670
  12,429
  14,335
  16,385
  18,576
  20,904
  23,366
  25,960
  28,684
  31,536
  34,515
  37,623
  40,860
  44,228
  47,730
  51,370
  55,153
  59,084
  63,170
  67,417
  71,833
  76,428
  81,209
  86,188
  91,374
  96,780
  102,417
Total liabilities and equity, $m
  17,491
  21,120
  25,170
  29,640
  34,525
  39,819
  45,514
  51,599
  58,066
  64,906
  72,112
  79,678
  87,600
  95,876
  104,508
  113,500
  122,855
  132,583
  142,695
  153,203
  164,122
  175,471
  187,269
  199,536
  212,299
  225,581
  239,411
  253,817
  268,833
  284,491
Debt-to-equity ratio
  1.100
  1.220
  1.310
  1.380
  1.430
  1.480
  1.520
  1.550
  1.570
  1.590
  1.610
  1.630
  1.640
  1.650
  1.660
  1.670
  1.680
  1.690
  1.690
  1.700
  1.710
  1.710
  1.710
  1.720
  1.720
  1.730
  1.730
  1.730
  1.730
  1.740
Adjusted equity ratio
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,647
  1,962
  2,312
  2,697
  3,118
  3,572
  4,060
  4,581
  5,134
  5,717
  6,336
  6,981
  7,655
  8,359
  9,093
  9,858
  10,653
  11,480
  12,339
  13,232
  14,160
  15,124
  16,127
  17,170
  18,255
  19,385
  20,561
  21,786
  23,064
  24,396
Depreciation, amort., depletion, $m
  842
  1,016
  1,209
  1,423
  1,657
  1,910
  2,182
  2,473
  2,782
  3,109
  3,448
  3,810
  4,188
  4,584
  4,997
  5,427
  5,874
  6,339
  6,823
  7,325
  7,847
  8,390
  8,954
  9,541
  10,151
  10,786
  11,447
  12,136
  12,854
  13,603
Funds from operations, $m
  2,489
  2,977
  3,521
  4,120
  4,774
  5,482
  6,242
  7,054
  7,916
  8,827
  9,784
  10,790
  11,843
  12,943
  14,090
  15,285
  16,527
  17,819
  19,162
  20,557
  22,007
  23,514
  25,081
  26,711
  28,406
  30,171
  32,008
  33,922
  35,918
  37,999
Change in working capital, $m
  -679
  -768
  -856
  -945
  -1,033
  -1,120
  -1,204
  -1,287
  -1,368
  -1,447
  -1,524
  -1,600
  -1,675
  -1,750
  -1,826
  -1,901
  -1,979
  -2,057
  -2,138
  -2,222
  -2,309
  -2,400
  -2,495
  -2,594
  -2,699
  -2,809
  -2,925
  -3,047
  -3,176
  -3,311
Cash from operations, $m
  3,169
  3,745
  4,377
  5,065
  5,807
  6,601
  7,446
  8,341
  9,283
  10,273
  11,308
  12,390
  13,519
  14,694
  15,916
  17,186
  18,506
  19,876
  21,300
  22,779
  24,317
  25,914
  27,576
  29,305
  31,105
  32,979
  34,933
  36,969
  39,093
  41,310
Maintenance CAPEX, $m
  -683
  -836
  -1,010
  -1,204
  -1,417
  -1,651
  -1,904
  -2,176
  -2,467
  -2,776
  -3,103
  -3,448
  -3,810
  -4,188
  -4,584
  -4,997
  -5,427
  -5,874
  -6,339
  -6,823
  -7,325
  -7,847
  -8,390
  -8,954
  -9,541
  -10,151
  -10,786
  -11,447
  -12,136
  -12,854
New CAPEX, $m
  -1,995
  -2,256
  -2,517
  -2,778
  -3,037
  -3,291
  -3,539
  -3,782
  -4,020
  -4,252
  -4,479
  -4,703
  -4,924
  -5,145
  -5,366
  -5,589
  -5,815
  -6,047
  -6,285
  -6,532
  -6,787
  -7,054
  -7,333
  -7,626
  -7,933
  -8,256
  -8,596
  -8,955
  -9,333
  -9,732
Cash from investing activities, $m
  -2,678
  -3,092
  -3,527
  -3,982
  -4,454
  -4,942
  -5,443
  -5,958
  -6,487
  -7,028
  -7,582
  -8,151
  -8,734
  -9,333
  -9,950
  -10,586
  -11,242
  -11,921
  -12,624
  -13,355
  -14,112
  -14,901
  -15,723
  -16,580
  -17,474
  -18,407
  -19,382
  -20,402
  -21,469
  -22,586
Free cash flow, $m
  490
  652
  850
  1,084
  1,353
  1,660
  2,003
  2,382
  2,796
  3,245
  3,725
  4,240
  4,785
  5,361
  5,966
  6,600
  7,264
  7,955
  8,676
  9,425
  10,204
  11,013
  11,853
  12,726
  13,632
  14,573
  15,551
  16,567
  17,624
  18,724
Issuance/(repayment) of debt, $m
  2,066
  2,323
  2,592
  2,861
  3,127
  3,388
  3,644
  3,895
  4,139
  4,378
  4,612
  4,842
  5,070
  5,297
  5,525
  5,754
  5,988
  6,226
  6,471
  6,725
  6,989
  7,263
  7,550
  7,852
  8,168
  8,501
  8,851
  9,220
  9,610
  10,021
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  
  2,066
  2,323
  2,592
  2,861
  3,127
  3,388
  3,644
  3,895
  4,139
  4,378
  4,612
  4,842
  5,070
  5,297
  5,525
  5,754
  5,988
  6,226
  6,471
  6,725
  6,989
  7,263
  7,550
  7,852
  8,168
  8,501
  8,851
  9,220
  9,610
  10,021
Total cash flow (excl. dividends), $m
  2,556
  2,975
  3,442
  3,944
  4,480
  5,048
  5,647
  6,277
  6,935
  7,623
  8,337
  9,082
  9,855
  10,658
  11,491
  12,355
  13,251
  14,181
  15,147
  16,150
  17,192
  18,276
  19,404
  20,577
  21,799
  23,073
  24,402
  25,787
  27,234
  28,745
Retained Cash Flow (-), $m
  -1,154
  -1,307
  -1,458
  -1,609
  -1,759
  -1,906
  -2,050
  -2,191
  -2,328
  -2,462
  -2,594
  -2,724
  -2,852
  -2,980
  -3,108
  -3,237
  -3,368
  -3,502
  -3,640
  -3,783
  -3,931
  -4,086
  -4,247
  -4,416
  -4,594
  -4,782
  -4,979
  -5,186
  -5,406
  -5,637
Prev. year cash balance distribution, $m
  327
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,729
  1,669
  1,984
  2,335
  2,721
  3,142
  3,597
  4,086
  4,607
  5,160
  5,743
  6,358
  7,003
  7,678
  8,383
  9,118
  9,883
  10,679
  11,507
  12,367
  13,261
  14,191
  15,156
  16,161
  17,205
  18,292
  19,423
  20,601
  21,828
  23,108
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
  1,658
  1,528
  1,727
  1,923
  2,109
  2,281
  2,430
  2,554
  2,647
  2,705
  2,727
  2,713
  2,663
  2,578
  2,461
  2,317
  2,150
  1,967
  1,772
  1,572
  1,372
  1,177
  993
  823
  669
  534
  417
  319
  238
  174
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

Ryanair Holdings plc (Ryanair Holdings) is a holding company for Ryanair Limited (Ryanair). Ryanair operates an ultra-low fare, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, Morocco and Israel. Ryanair provides various ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food and merchandise. Ryanair markets accommodation services and travel insurance through its Website. It provides hotel and accommodation services. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. As of June 30, 2016, Ryanair had a principal fleet of over 350 Boeing 737-800 aircraft and offered over 2,000 scheduled short-haul flights per day serving approximately 200 airports throughout Europe.

FINANCIAL RATIOS  of  Ryanair Holdings ADR (RYAAY)

Valuation Ratios
P/E Ratio 74.7
Price to Sales 14.8
Price to Book 22.2
Price to Tangible Book
Price to Cash Flow 51
Price to Free Cash Flow 205.8
Growth Rates
Sales Growth Rate 1.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 19.1%
Cap. Spend. - 3 Yr. Gr. Rate 23.4%
Financial Strength
Quick Ratio 9
Current Ratio 0.1
LT Debt to Equity 88.8%
Total Debt to Equity 99.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 11.3%
Ret/ On Assets - 3 Yr. Avg. 11%
Return On Total Capital 16%
Ret/ On T. Cap. - 3 Yr. Avg. 15.7%
Return On Equity 32.8%
Return On Equity - 3 Yr. Avg. 32.5%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 37.4%
Gross Margin - 3 Yr. Avg. 34.9%
EBITDA Margin 29.6%
EBITDA Margin - 3 Yr. Avg. 28.8%
Operating Margin 23.1%
Oper. Margin - 3 Yr. Avg. 21.3%
Pre-Tax Margin 22.1%
Pre-Tax Margin - 3 Yr. Avg. 21.9%
Net Profit Margin 19.8%
Net Profit Margin - 3 Yr. Avg. 19.7%
Effective Tax Rate 10.5%
Eff/ Tax Rate - 3 Yr. Avg. 10.6%
Payout Ratio 0%

RYAAY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RYAAY stock intrinsic value calculation we used $8752.75397797 million for the last fiscal year's total revenue generated by Ryanair Holdings ADR. The default revenue input number comes from 0001 income statement of Ryanair Holdings ADR. 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 RYAAY stock valuation model: a) initial revenue growth rate of 22.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for RYAAY is calculated based on our internal credit rating of Ryanair Holdings ADR, 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 Ryanair Holdings ADR.
    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 RYAAY stock the variable cost ratio is equal to 75.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $97 million in the base year in the intrinsic value calculation for RYAAY 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 Ryanair Holdings ADR.

Corporate tax rate of 27% is the nominal tax rate for Ryanair Holdings ADR. 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 RYAAY 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 RYAAY are equal to 101.4%.

Life of production assets of 13 years is the average useful life of capital assets used in Ryanair Holdings ADR 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 RYAAY is equal to -34.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5469.88984088 million for Ryanair Holdings ADR - 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 229.898 million for Ryanair Holdings ADR 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 Ryanair Holdings ADR at the current share price and the inputted number of shares is $19.6 billion.

RELATED COMPANIES Price Int.Val. Rating

COMPANY NEWS

▶ [$$] Ryanair pays France 525,000 for impounded jet   [Nov-08-18 11:47PM  Financial Times]
▶ Court bans transfer of Dutch Ryanair pilots   [Nov-01-18 10:48AM  Associated Press]
▶ Ryanair shareholder calls for chairman's ouster   [Oct-29-18 04:09AM  Reuters]
▶ Ryanair shareholder calls for chairman's ouster   [Oct-28-18 11:19AM  Reuters]
▶ Ryanair seeks to deflect criticism of racist incident   [Oct-26-18 09:15AM  Associated Press]
▶ [$$] Ryanair Earnings Hit by Staff and Fuel Costs   [Oct-22-18 07:54PM  The Wall Street Journal]
▶ Strikes begin to weigh on Ryanair's profits   [05:44AM  Associated Press]
▶ [$$] European Equities Market Talk Roundup   [04:30AM  The Wall Street Journal]
▶ [$$] Ryanair Earnings Hit by Staff and Fuel Costs   [01:34AM  The Wall Street Journal]
▶ Ryanair CEO: Brexit is a shambles   [01:10AM  CNBC Videos]
▶ PRESS DIGEST- Financial Times - Oct 22   [Oct-21-18 07:52PM  Reuters]
▶ Brexit: Winners and Losers   [Oct-16-18 10:14AM  Investopedia]
▶ David Herro Comments on Ryanair   [Oct-09-18 06:35PM  GuruFocus.com]
▶ PRESS DIGEST- Financial Times - Oct 9   [Oct-08-18 08:15PM  Reuters]
▶ [$$] Airlines only thrive when they know who to insult   [Oct-06-18 12:00AM  Financial Times]
▶ Why Ryanair Holdings Stock Sank 16.5% Today   [Oct-01-18 05:05PM  Motley Fool]
▶ [$$] A Perfect Storm for Airlines   [10:49AM  The Wall Street Journal]

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