Intrinsic value of Sprint - S

Previous Close

$6.01

  Intrinsic Value

$8.62

stock screener

  Rating & Target

buy

+43%

Previous close

$6.01

 
Intrinsic value

$8.62

 
Up/down potential

+43%

 
Rating

buy

We calculate the intrinsic value of S 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 24.5

 

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, %
  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
  33,054
  33,814
  34,683
  35,659
  36,740
  37,926
  39,218
  40,616
  42,122
  43,739
  45,468
  47,314
  49,279
  51,367
  53,582
  55,931
  58,416
  61,045
  63,822
  66,755
  69,849
  73,112
  76,552
  80,176
  83,993
  88,011
  92,241
  96,692
  101,375
  106,301
Variable operating expenses, $m
  31,235
  31,837
  32,526
  33,299
  34,156
  35,096
  36,120
  37,228
  38,422
  39,703
  36,038
  37,501
  39,058
  40,713
  42,469
  44,330
  46,301
  48,384
  50,585
  52,909
  55,362
  57,948
  60,675
  63,547
  66,572
  69,757
  73,110
  76,638
  80,350
  84,254
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
  31,235
  31,837
  32,526
  33,299
  34,156
  35,096
  36,120
  37,228
  38,422
  39,703
  36,038
  37,501
  39,058
  40,713
  42,469
  44,330
  46,301
  48,384
  50,585
  52,909
  55,362
  57,948
  60,675
  63,547
  66,572
  69,757
  73,110
  76,638
  80,350
  84,254
Operating income, $m
  1,820
  1,977
  2,157
  2,360
  2,584
  2,830
  3,098
  3,388
  3,700
  4,036
  9,430
  9,813
  10,221
  10,654
  11,113
  11,600
  12,116
  12,661
  13,237
  13,845
  14,487
  15,164
  15,877
  16,629
  17,420
  18,254
  19,131
  20,054
  21,026
  22,047
EBITDA, $m
  12,426
  12,712
  13,039
  13,406
  13,812
  14,258
  14,744
  15,269
  15,835
  16,443
  17,093
  17,787
  18,526
  19,311
  20,144
  21,027
  21,961
  22,949
  23,993
  25,096
  26,259
  27,486
  28,779
  30,141
  31,576
  33,087
  34,677
  36,351
  38,111
  39,963
Interest expense (income), $m
  0
  2,372
  2,443
  2,522
  2,611
  2,712
  2,823
  2,946
  3,079
  3,223
  3,378
  3,545
  3,723
  3,913
  4,116
  4,331
  4,559
  4,801
  5,058
  5,329
  5,615
  5,917
  6,236
  6,572
  6,927
  7,300
  7,694
  8,108
  8,544
  9,003
  9,486
Earnings before tax, $m
  -552
  -466
  -364
  -251
  -128
  7
  152
  309
  478
  658
  5,886
  6,090
  6,307
  6,538
  6,782
  7,041
  7,314
  7,603
  7,908
  8,230
  8,570
  8,928
  9,305
  9,702
  10,120
  10,560
  11,023
  11,510
  12,023
  12,561
Tax expense, $m
  0
  0
  0
  0
  0
  2
  41
  84
  129
  178
  1,589
  1,644
  1,703
  1,765
  1,831
  1,901
  1,975
  2,053
  2,135
  2,222
  2,314
  2,410
  2,512
  2,619
  2,732
  2,851
  2,976
  3,108
  3,246
  3,392
Net income, $m
  -552
  -466
  -364
  -251
  -128
  5
  111
  226
  349
  480
  4,297
  4,446
  4,604
  4,773
  4,951
  5,140
  5,339
  5,550
  5,773
  6,008
  6,256
  6,517
  6,792
  7,082
  7,387
  7,709
  8,047
  8,402
  8,776
  9,170

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
  85,632
  87,602
  89,853
  92,381
  95,182
  98,255
  101,601
  105,223
  109,125
  113,313
  117,794
  122,574
  127,665
  133,074
  138,815
  144,898
  151,337
  158,147
  165,342
  172,939
  180,956
  189,409
  198,320
  207,709
  217,597
  228,009
  238,967
  250,499
  262,630
  275,391
Adjusted assets (=assets-cash), $m
  85,632
  87,602
  89,853
  92,381
  95,182
  98,255
  101,601
  105,223
  109,125
  113,313
  117,794
  122,574
  127,665
  133,074
  138,815
  144,898
  151,337
  158,147
  165,342
  172,939
  180,956
  189,409
  198,320
  207,709
  217,597
  228,009
  238,967
  250,499
  262,630
  275,391
Revenue / Adjusted assets
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
Average production assets, $m
  45,681
  46,731
  47,932
  49,281
  50,775
  52,414
  54,199
  56,131
  58,213
  60,447
  62,837
  65,388
  68,103
  70,989
  74,051
  77,296
  80,731
  84,364
  88,202
  92,255
  96,531
  101,041
  105,794
  110,803
  116,078
  121,632
  127,477
  133,629
  140,101
  146,908
Working capital, $m
  -2,115
  -2,164
  -2,220
  -2,282
  -2,351
  -2,427
  -2,510
  -2,599
  -2,696
  -2,799
  -2,910
  -3,028
  -3,154
  -3,287
  -3,429
  -3,580
  -3,739
  -3,907
  -4,085
  -4,272
  -4,470
  -4,679
  -4,899
  -5,131
  -5,376
  -5,633
  -5,903
  -6,188
  -6,488
  -6,803
Total debt, $m
  42,126
  43,477
  45,021
  46,755
  48,677
  50,785
  53,080
  55,565
  58,242
  61,115
  64,188
  67,468
  70,960
  74,671
  78,609
  82,782
  87,199
  91,871
  96,807
  102,018
  107,518
  113,317
  119,430
  125,870
  132,654
  139,796
  147,313
  155,224
  163,546
  172,300
Total liabilities, $m
  58,744
  60,095
  61,639
  63,373
  65,295
  67,403
  69,698
  72,183
  74,860
  77,733
  80,806
  84,086
  87,578
  91,289
  95,227
  99,400
  103,817
  108,489
  113,425
  118,636
  124,136
  129,935
  136,048
  142,488
  149,272
  156,414
  163,931
  171,842
  180,164
  188,918
Total equity, $m
  26,889
  27,507
  28,214
  29,008
  29,887
  30,852
  31,903
  33,040
  34,265
  35,580
  36,987
  38,488
  40,087
  41,785
  43,588
  45,498
  47,520
  49,658
  51,917
  54,303
  56,820
  59,475
  62,273
  65,221
  68,326
  71,595
  75,036
  78,657
  82,466
  86,473
Total liabilities and equity, $m
  85,633
  87,602
  89,853
  92,381
  95,182
  98,255
  101,601
  105,223
  109,125
  113,313
  117,793
  122,574
  127,665
  133,074
  138,815
  144,898
  151,337
  158,147
  165,342
  172,939
  180,956
  189,410
  198,321
  207,709
  217,598
  228,009
  238,967
  250,499
  262,630
  275,391
Debt-to-equity ratio
  1.570
  1.580
  1.600
  1.610
  1.630
  1.650
  1.660
  1.680
  1.700
  1.720
  1.740
  1.750
  1.770
  1.790
  1.800
  1.820
  1.840
  1.850
  1.860
  1.880
  1.890
  1.910
  1.920
  1.930
  1.940
  1.950
  1.960
  1.970
  1.980
  1.990
Adjusted equity ratio
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314
  0.314

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -552
  -466
  -364
  -251
  -128
  5
  111
  226
  349
  480
  4,297
  4,446
  4,604
  4,773
  4,951
  5,140
  5,339
  5,550
  5,773
  6,008
  6,256
  6,517
  6,792
  7,082
  7,387
  7,709
  8,047
  8,402
  8,776
  9,170
Depreciation, amort., depletion, $m
  10,607
  10,735
  10,881
  11,046
  11,228
  11,428
  11,646
  11,881
  12,135
  12,408
  7,663
  7,974
  8,305
  8,657
  9,031
  9,426
  9,845
  10,288
  10,756
  11,251
  11,772
  12,322
  12,902
  13,513
  14,156
  14,833
  15,546
  16,296
  17,085
  17,916
Funds from operations, $m
  10,055
  10,269
  10,517
  10,794
  11,100
  11,433
  11,757
  12,107
  12,484
  12,888
  11,960
  12,420
  12,910
  13,430
  13,982
  14,566
  15,185
  15,839
  16,530
  17,259
  18,028
  18,839
  19,694
  20,595
  21,543
  22,542
  23,593
  24,699
  25,862
  27,085
Change in working capital, $m
  -41
  -49
  -56
  -62
  -69
  -76
  -83
  -89
  -96
  -103
  -111
  -118
  -126
  -134
  -142
  -150
  -159
  -168
  -178
  -188
  -198
  -209
  -220
  -232
  -244
  -257
  -271
  -285
  -300
  -315
Cash from operations, $m
  10,096
  10,318
  10,573
  10,857
  11,169
  11,509
  11,840
  12,197
  12,580
  12,991
  12,070
  12,538
  13,035
  13,564
  14,123
  14,716
  15,344
  16,007
  16,707
  17,446
  18,226
  19,048
  19,914
  20,827
  21,788
  22,799
  23,864
  24,983
  26,162
  27,401
Maintenance CAPEX, $m
  -5,461
  -5,571
  -5,699
  -5,845
  -6,010
  -6,192
  -6,392
  -6,610
  -6,845
  -7,099
  -7,372
  -7,663
  -7,974
  -8,305
  -8,657
  -9,031
  -9,426
  -9,845
  -10,288
  -10,756
  -11,251
  -11,772
  -12,322
  -12,902
  -13,513
  -14,156
  -14,833
  -15,546
  -16,296
  -17,085
New CAPEX, $m
  -903
  -1,051
  -1,201
  -1,348
  -1,494
  -1,639
  -1,785
  -1,932
  -2,082
  -2,234
  -2,390
  -2,550
  -2,715
  -2,886
  -3,062
  -3,245
  -3,435
  -3,633
  -3,838
  -4,053
  -4,276
  -4,510
  -4,754
  -5,008
  -5,275
  -5,554
  -5,846
  -6,151
  -6,472
  -6,807
Cash from investing activities, $m
  -6,364
  -6,622
  -6,900
  -7,193
  -7,504
  -7,831
  -8,177
  -8,542
  -8,927
  -9,333
  -9,762
  -10,213
  -10,689
  -11,191
  -11,719
  -12,276
  -12,861
  -13,478
  -14,126
  -14,809
  -15,527
  -16,282
  -17,076
  -17,910
  -18,788
  -19,710
  -20,679
  -21,697
  -22,768
  -23,892
Free cash flow, $m
  3,733
  3,696
  3,673
  3,663
  3,666
  3,678
  3,663
  3,655
  3,653
  3,658
  2,309
  2,325
  2,346
  2,372
  2,404
  2,441
  2,482
  2,529
  2,581
  2,637
  2,699
  2,766
  2,839
  2,917
  3,000
  3,089
  3,185
  3,286
  3,394
  3,508
Issuance/(repayment) of debt, $m
  1,234
  1,351
  1,544
  1,734
  1,921
  2,108
  2,296
  2,485
  2,677
  2,873
  3,074
  3,280
  3,492
  3,711
  3,938
  4,173
  4,417
  4,671
  4,936
  5,212
  5,499
  5,799
  6,113
  6,441
  6,783
  7,142
  7,518
  7,911
  8,322
  8,754
Issuance/(repurchase) of shares, $m
  1,085
  1,085
  1,071
  1,045
  1,007
  960
  939
  912
  877
  835
  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  
  2,319
  2,436
  2,615
  2,779
  2,928
  3,068
  3,235
  3,397
  3,554
  3,708
  3,074
  3,280
  3,492
  3,711
  3,938
  4,173
  4,417
  4,671
  4,936
  5,212
  5,499
  5,799
  6,113
  6,441
  6,783
  7,142
  7,518
  7,911
  8,322
  8,754
Total cash flow (excl. dividends), $m
  6,051
  6,132
  6,288
  6,442
  6,594
  6,746
  6,898
  7,051
  7,207
  7,366
  5,382
  5,604
  5,838
  6,084
  6,342
  6,614
  6,900
  7,200
  7,517
  7,849
  8,198
  8,566
  8,952
  9,357
  9,784
  10,231
  10,702
  11,197
  11,716
  12,262
Retained Cash Flow (-), $m
  -1,085
  -1,085
  -1,071
  -1,045
  -1,007
  -965
  -1,051
  -1,137
  -1,225
  -1,315
  -1,407
  -1,501
  -1,598
  -1,699
  -1,802
  -1,910
  -2,022
  -2,138
  -2,259
  -2,385
  -2,517
  -2,654
  -2,798
  -2,948
  -3,105
  -3,269
  -3,441
  -3,621
  -3,809
  -4,007
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  4,966
  5,047
  5,217
  5,397
  5,587
  5,781
  5,847
  5,914
  5,982
  6,051
  3,975
  4,103
  4,239
  4,385
  4,540
  4,704
  4,878
  5,062
  5,257
  5,463
  5,681
  5,911
  6,154
  6,409
  6,679
  6,962
  7,261
  7,576
  7,907
  8,255
Discount rate, %
  6.60
  6.93
  7.28
  7.64
  8.02
  8.42
  8.84
  9.29
  9.75
  10.24
  10.75
  11.29
  11.85
  12.45
  13.07
  13.72
  14.41
  15.13
  15.88
  16.68
  17.51
  18.39
  19.31
  20.27
  21.29
  22.35
  23.47
  24.64
  25.87
  27.17
PV of cash for distribution, $m
  4,659
  4,414
  4,226
  4,020
  3,798
  3,558
  3,231
  2,906
  2,589
  2,283
  1,293
  1,137
  988
  849
  719
  601
  495
  401
  319
  250
  192
  144
  106
  76
  54
  37
  24
  16
  10
  6
Current shareholders' claim on cash, %
  95.8
  91.8
  88.1
  84.7
  81.6
  78.9
  76.4
  74.1
  72.0
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2
  70.2

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

FINANCIAL RATIOS  of  Sprint (S)

Valuation Ratios
P/E Ratio -19.9
Price to Sales 0.7
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 5.8
Price to Free Cash Flow 114.2
Growth Rates
Sales Growth Rate 3.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -44%
Cap. Spend. - 3 Yr. Gr. Rate 19.3%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 190.8%
Total Debt to Equity 217.5%
Interest Coverage 0
Management Effectiveness
Return On Assets -1.5%
Ret/ On Assets - 3 Yr. Avg. -2.6%
Return On Total Capital -2.1%
Ret/ On T. Cap. - 3 Yr. Avg. -3.9%
Return On Equity -6.3%
Return On Equity - 3 Yr. Avg. -10%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 55.2%
Gross Margin - 3 Yr. Avg. 51%
EBITDA Margin 22.1%
EBITDA Margin - 3 Yr. Avg. 14.2%
Operating Margin 5.3%
Oper. Margin - 3 Yr. Avg. 0.3%
Pre-Tax Margin -2.3%
Pre-Tax Margin - 3 Yr. Avg. -6.5%
Net Profit Margin -3.6%
Net Profit Margin - 3 Yr. Avg. -6.5%
Effective Tax Rate -56.4%
Eff/ Tax Rate - 3 Yr. Avg. -16.5%
Payout Ratio 0%

S stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the S stock intrinsic value calculation we used $32406 million for the last fiscal year's total revenue generated by Sprint. The default revenue input number comes from 0001 income statement of Sprint. 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 S 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 6.6%, whose default value for S is calculated based on our internal credit rating of Sprint, 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 Sprint.
    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 S stock the variable cost ratio is equal to 94.8%.

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 S 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 5.8% for Sprint.

Corporate tax rate of 27% is the nominal tax rate for Sprint. 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 S 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 S are equal to 138.2%.

Life of production assets of 8.2 years is the average useful life of capital assets used in Sprint 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 S is equal to -6.4%. 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 - $26356 million for Sprint - 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 4068.42 million for Sprint 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 Sprint at the current share price and the inputted number of shares is $24.5 billion.

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COMPANY NEWS

▶ T-Mobile exec reveals takeover strategy: Shut down Sprint network and extract assets   [Dec-10-18 04:26PM  American City Business Journals]
▶ Sprint will lose C-level exec by year's end   [Dec-06-18 03:48PM  American City Business Journals]
▶ T-Mobile is hiring a team to help decide the fate of retail stores post-Sprint merger   [Dec-05-18 05:09PM  American City Business Journals]
▶ What Does SoftBank Do?   [Dec-04-18 10:33AM  Investopedia]
▶ FCC's 'shot clock' on Sprint/T-Mobile resumes; Sprint CFO optimistic deal will close   [Dec-03-18 03:18PM  American City Business Journals]
▶ Better Buy: AT&T vs. Sprint   [Nov-29-18 08:00PM  Motley Fool]
▶ Sprint CEO: Program will provide internet access to 6,400 area students   [03:20PM  American City Business Journals]
▶ The Top 5G Stocks to Watch Now   [02:06PM  InvestorPlace]
▶ Don't expect T-Mobile CEO to be house hunting in Kansas City   [09:05AM  American City Business Journals]
▶ Black Friday items you shouldnt buy   [Nov-22-18 06:41AM  Yahoo Finance]
▶ IBD Stock Of The Day: Wireless Firm Looks Good With Or Without Merger   [Nov-19-18 04:37PM  Investor's Business Daily]
▶ Merger confidence? Sprint's top execs put side-by-side mansions up for sale [PHOTOS]   [Nov-18-18 01:12PM  American City Business Journals]
▶ Nvidia, Nordstrom fall; PG&E, Sprint rise   [Nov-16-18 04:36PM  Associated Press]
▶ T-Mobile CFO: Merger with Sprint could close earlier than expected   [09:43AM  American City Business Journals]
▶ Masayoshi Son's Mission Hills mansion joins Claure's on the market   [02:05PM  American City Business Journals]
▶ Will Verizon Stock Continue to Outperform?   [01:56PM  InvestorPlace]
▶ 1HUDDLE reveals new job training game   [Nov-09-18 03:28PM  Yahoo Finance Video]
▶ Dish Stock Falls As Pay-TV Subscriber Losses Accelerate, Profit Beats   [Nov-07-18 04:11PM  Investor's Business Daily]
▶ Sprint makes a retail push into tablets, wearables   [03:35PM  American City Business Journals]
▶ Don't Forget About Sprint   [Nov-06-18 12:57PM  GuruFocus.com]
▶ Where Will Sprint Corporation Be in 1 Year?   [Nov-04-18 12:11PM  Motley Fool]
▶ 5 good reads: Behind the stories of Walmart, Polsinelli, Pinsight   [10:30AM  American City Business Journals]
▶ Sprint and T-Mobile sign a big deal (no, not that one)   [Nov-02-18 09:35AM  American City Business Journals]
▶ Sprint CEO: Sale of KC marketing unit was in the works for a year   [01:14PM  American City Business Journals]
▶ Why Sprint Stock Jumped Today   [01:12PM  Motley Fool]
▶ T-Mobile receives shareholder approval for Sprint merger plans   [10:28AM  American City Business Journals]
▶ Sprint Earnings: Trick or Treat?   [09:45AM  Bloomberg]
▶ T-Mobile, Sprint receive shareholder approval for merger plans   [09:27AM  American City Business Journals]

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