Intrinsic value of Shire ADR - SHPG

Previous Close

$170.41

  Intrinsic Value

$166.54

stock screener

  Rating & Target

hold

-2%

Previous close

$170.41

 
Intrinsic value

$166.54

 
Up/down potential

-2%

 
Rating

hold

We calculate the intrinsic value of SHPG 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 52.3

 

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, %
  4.60
  4.64
  4.68
  4.71
  4.74
  4.76
  4.79
  4.81
  4.83
  4.85
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
Revenue, $m
  15,858
  16,594
  17,370
  18,188
  19,049
  19,957
  20,912
  21,918
  22,976
  24,089
  25,260
  26,491
  27,786
  29,147
  30,577
  32,081
  33,661
  35,322
  37,067
  38,900
  40,826
  42,850
  44,975
  47,208
  49,554
  52,017
  54,604
  57,322
  60,176
  63,174
Variable operating expenses, $m
  9,319
  9,506
  9,703
  9,911
  10,130
  10,361
  10,604
  10,860
  11,129
  11,412
  6,421
  6,734
  7,064
  7,410
  7,773
  8,156
  8,557
  8,979
  9,423
  9,889
  10,379
  10,893
  11,433
  12,001
  12,597
  13,224
  13,881
  14,572
  15,298
  16,060
Fixed operating expenses, $m
  3,715
  3,797
  3,880
  3,966
  4,053
  4,142
  4,233
  4,326
  4,421
  4,519
  4,618
  4,720
  4,824
  4,930
  5,038
  5,149
  5,262
  5,378
  5,496
  5,617
  5,741
  5,867
  5,996
  6,128
  6,263
  6,401
  6,542
  6,685
  6,833
  6,983
Total operating expenses, $m
  13,034
  13,303
  13,583
  13,877
  14,183
  14,503
  14,837
  15,186
  15,550
  15,931
  11,039
  11,454
  11,888
  12,340
  12,811
  13,305
  13,819
  14,357
  14,919
  15,506
  16,120
  16,760
  17,429
  18,129
  18,860
  19,625
  20,423
  21,257
  22,131
  23,043
Operating income, $m
  2,824
  3,291
  3,786
  4,311
  4,866
  5,454
  6,075
  6,732
  7,426
  8,159
  14,220
  15,037
  15,899
  16,808
  17,766
  18,777
  19,842
  20,965
  22,148
  23,394
  24,707
  26,090
  27,546
  29,079
  30,693
  32,393
  34,182
  36,064
  38,046
  40,131
EBITDA, $m
  9,426
  9,954
  10,513
  11,105
  11,732
  12,395
  13,096
  13,836
  14,617
  15,443
  16,313
  17,232
  18,201
  19,223
  20,300
  21,435
  22,631
  23,892
  25,219
  26,617
  28,090
  29,640
  31,273
  32,991
  34,800
  36,703
  38,706
  40,814
  43,032
  45,366
Interest expense (income), $m
  284
  1,055
  1,131
  1,214
  1,301
  1,393
  1,490
  1,592
  1,699
  1,812
  1,931
  2,056
  2,188
  2,326
  2,471
  2,624
  2,785
  2,954
  3,131
  3,318
  3,514
  3,720
  3,936
  4,164
  4,402
  4,653
  4,917
  5,193
  5,484
  5,789
  6,110
Earnings before tax, $m
  1,769
  2,160
  2,572
  3,009
  3,473
  3,964
  4,483
  5,033
  5,614
  6,228
  12,164
  12,849
  13,573
  14,336
  15,142
  15,992
  16,888
  17,833
  18,830
  19,880
  20,987
  22,153
  23,382
  24,677
  26,040
  27,476
  28,988
  30,580
  32,257
  34,021
Tax expense, $m
  478
  583
  694
  813
  938
  1,070
  1,210
  1,359
  1,516
  1,681
  3,284
  3,469
  3,665
  3,871
  4,088
  4,318
  4,560
  4,815
  5,084
  5,368
  5,666
  5,981
  6,313
  6,663
  7,031
  7,419
  7,827
  8,257
  8,709
  9,186
Net income, $m
  1,291
  1,576
  1,878
  2,197
  2,535
  2,894
  3,273
  3,674
  4,098
  4,546
  8,880
  9,380
  9,908
  10,465
  11,054
  11,674
  12,328
  13,018
  13,746
  14,512
  15,320
  16,172
  17,069
  18,014
  19,009
  20,058
  21,161
  22,324
  23,547
  24,835

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
  70,795
  74,079
  77,543
  81,194
  85,041
  89,092
  93,358
  97,847
  102,571
  107,540
  112,767
  118,264
  124,044
  130,120
  136,507
  143,220
  150,274
  157,688
  165,478
  173,662
  182,261
  191,294
  200,783
  210,751
  221,222
  232,219
  243,770
  255,902
  268,643
  282,025
Adjusted assets (=assets-cash), $m
  70,795
  74,079
  77,543
  81,194
  85,041
  89,092
  93,358
  97,847
  102,571
  107,540
  112,767
  118,264
  124,044
  130,120
  136,507
  143,220
  150,274
  157,688
  165,478
  173,662
  182,261
  191,294
  200,783
  210,751
  221,222
  232,219
  243,770
  255,902
  268,643
  282,025
Revenue / Adjusted assets
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
  0.224
Average production assets, $m
  34,428
  36,025
  37,710
  39,485
  41,356
  43,326
  45,400
  47,583
  49,881
  52,297
  54,839
  57,512
  60,323
  63,278
  66,384
  69,648
  73,079
  76,684
  80,472
  84,453
  88,634
  93,027
  97,642
  102,489
  107,581
  112,929
  118,546
  124,446
  130,642
  137,150
Working capital, $m
  2,093
  2,190
  2,293
  2,401
  2,514
  2,634
  2,760
  2,893
  3,033
  3,180
  3,334
  3,497
  3,668
  3,847
  4,036
  4,235
  4,443
  4,663
  4,893
  5,135
  5,389
  5,656
  5,937
  6,231
  6,541
  6,866
  7,208
  7,567
  7,943
  8,339
Total debt, $m
  20,951
  22,482
  24,096
  25,797
  27,590
  29,478
  31,465
  33,557
  35,759
  38,074
  40,510
  43,072
  45,765
  48,596
  51,573
  54,701
  57,988
  61,443
  65,073
  68,887
  72,894
  77,104
  81,526
  86,171
  91,050
  96,175
  101,557
  107,211
  113,148
  119,384
Total liabilities, $m
  32,990
  34,521
  36,135
  37,837
  39,629
  41,517
  43,505
  45,597
  47,798
  50,114
  52,550
  55,111
  57,804
  60,636
  63,612
  66,740
  70,028
  73,483
  77,113
  80,927
  84,933
  89,143
  93,565
  98,210
  103,089
  108,214
  113,597
  119,250
  125,188
  131,424
Total equity, $m
  37,804
  39,558
  41,408
  43,358
  45,412
  47,575
  49,853
  52,250
  54,773
  57,426
  60,218
  63,153
  66,239
  69,484
  72,895
  76,479
  80,247
  84,205
  88,365
  92,736
  97,327
  102,151
  107,218
  112,541
  118,132
  124,005
  130,173
  136,652
  143,456
  150,601
Total liabilities and equity, $m
  70,794
  74,079
  77,543
  81,195
  85,041
  89,092
  93,358
  97,847
  102,571
  107,540
  112,768
  118,264
  124,043
  130,120
  136,507
  143,219
  150,275
  157,688
  165,478
  173,663
  182,260
  191,294
  200,783
  210,751
  221,221
  232,219
  243,770
  255,902
  268,644
  282,025
Debt-to-equity ratio
  0.550
  0.570
  0.580
  0.590
  0.610
  0.620
  0.630
  0.640
  0.650
  0.660
  0.670
  0.680
  0.690
  0.700
  0.710
  0.720
  0.720
  0.730
  0.740
  0.740
  0.750
  0.750
  0.760
  0.770
  0.770
  0.780
  0.780
  0.780
  0.790
  0.790
Adjusted equity ratio
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,291
  1,576
  1,878
  2,197
  2,535
  2,894
  3,273
  3,674
  4,098
  4,546
  8,880
  9,380
  9,908
  10,465
  11,054
  11,674
  12,328
  13,018
  13,746
  14,512
  15,320
  16,172
  17,069
  18,014
  19,009
  20,058
  21,161
  22,324
  23,547
  24,835
Depreciation, amort., depletion, $m
  6,602
  6,663
  6,727
  6,795
  6,866
  6,941
  7,021
  7,104
  7,192
  7,284
  2,093
  2,195
  2,302
  2,415
  2,534
  2,658
  2,789
  2,927
  3,071
  3,223
  3,383
  3,551
  3,727
  3,912
  4,106
  4,310
  4,525
  4,750
  4,986
  5,235
Funds from operations, $m
  7,893
  8,239
  8,605
  8,992
  9,401
  9,835
  10,293
  10,778
  11,290
  11,830
  10,973
  11,575
  12,211
  12,881
  13,587
  14,332
  15,118
  15,945
  16,817
  17,736
  18,703
  19,723
  20,796
  21,926
  23,115
  24,368
  25,686
  27,073
  28,534
  30,070
Change in working capital, $m
  92
  97
  102
  108
  114
  120
  126
  133
  140
  147
  155
  163
  171
  180
  189
  198
  209
  219
  230
  242
  254
  267
  281
  295
  310
  325
  342
  359
  377
  396
Cash from operations, $m
  7,801
  8,142
  8,502
  8,884
  9,288
  9,715
  10,167
  10,645
  11,150
  11,683
  10,818
  11,413
  12,040
  12,701
  13,398
  14,134
  14,909
  15,726
  16,587
  17,494
  18,449
  19,456
  20,515
  21,631
  22,806
  24,043
  25,345
  26,715
  28,157
  29,674
Maintenance CAPEX, $m
  -1,256
  -1,314
  -1,375
  -1,439
  -1,507
  -1,578
  -1,654
  -1,733
  -1,816
  -1,904
  -1,996
  -2,093
  -2,195
  -2,302
  -2,415
  -2,534
  -2,658
  -2,789
  -2,927
  -3,071
  -3,223
  -3,383
  -3,551
  -3,727
  -3,912
  -4,106
  -4,310
  -4,525
  -4,750
  -4,986
New CAPEX, $m
  -1,509
  -1,597
  -1,685
  -1,776
  -1,871
  -1,970
  -2,074
  -2,183
  -2,297
  -2,417
  -2,542
  -2,673
  -2,811
  -2,955
  -3,106
  -3,265
  -3,431
  -3,605
  -3,788
  -3,980
  -4,182
  -4,393
  -4,615
  -4,847
  -5,092
  -5,348
  -5,617
  -5,900
  -6,196
  -6,508
Cash from investing activities, $m
  -2,765
  -2,911
  -3,060
  -3,215
  -3,378
  -3,548
  -3,728
  -3,916
  -4,113
  -4,321
  -4,538
  -4,766
  -5,006
  -5,257
  -5,521
  -5,799
  -6,089
  -6,394
  -6,715
  -7,051
  -7,405
  -7,776
  -8,166
  -8,574
  -9,004
  -9,454
  -9,927
  -10,425
  -10,946
  -11,494
Free cash flow, $m
  5,035
  5,231
  5,443
  5,669
  5,910
  6,167
  6,439
  6,729
  7,037
  7,363
  6,280
  6,646
  7,034
  7,444
  7,877
  8,336
  8,820
  9,331
  9,872
  10,442
  11,044
  11,680
  12,350
  13,057
  13,802
  14,588
  15,417
  16,290
  17,211
  18,181
Issuance/(repayment) of debt, $m
  1,410
  1,531
  1,614
  1,701
  1,793
  1,888
  1,988
  2,092
  2,201
  2,316
  2,436
  2,562
  2,693
  2,831
  2,976
  3,128
  3,288
  3,455
  3,630
  3,814
  4,007
  4,210
  4,422
  4,645
  4,879
  5,125
  5,383
  5,653
  5,938
  6,236
Issuance/(repurchase) of shares, $m
  337
  178
  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  
  1,747
  1,709
  1,614
  1,701
  1,793
  1,888
  1,988
  2,092
  2,201
  2,316
  2,436
  2,562
  2,693
  2,831
  2,976
  3,128
  3,288
  3,455
  3,630
  3,814
  4,007
  4,210
  4,422
  4,645
  4,879
  5,125
  5,383
  5,653
  5,938
  6,236
Total cash flow (excl. dividends), $m
  6,782
  6,939
  7,057
  7,370
  7,703
  8,054
  8,427
  8,821
  9,238
  9,678
  8,716
  9,208
  9,727
  10,275
  10,854
  11,464
  12,107
  12,786
  13,502
  14,256
  15,051
  15,889
  16,772
  17,702
  18,682
  19,713
  20,800
  21,944
  23,148
  24,416
Retained Cash Flow (-), $m
  -1,628
  -1,754
  -1,850
  -1,950
  -2,054
  -2,163
  -2,278
  -2,397
  -2,523
  -2,654
  -2,791
  -2,935
  -3,086
  -3,245
  -3,411
  -3,585
  -3,767
  -3,959
  -4,160
  -4,371
  -4,592
  -4,824
  -5,067
  -5,323
  -5,591
  -5,873
  -6,168
  -6,478
  -6,804
  -7,146
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
  5,154
  5,185
  5,207
  5,421
  5,648
  5,891
  6,149
  6,424
  6,715
  7,025
  5,925
  6,273
  6,641
  7,031
  7,443
  7,879
  8,340
  8,827
  9,342
  9,886
  10,460
  11,065
  11,705
  12,379
  13,090
  13,841
  14,632
  15,465
  16,344
  17,271
Discount rate, %
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
  25.93
PV of cash for distribution, $m
  4,848
  4,561
  4,257
  4,090
  3,906
  3,704
  3,487
  3,256
  3,014
  2,765
  2,023
  1,837
  1,648
  1,460
  1,276
  1,100
  933
  779
  639
  515
  407
  315
  239
  177
  128
  91
  62
  42
  27
  17
Current shareholders' claim on cash, %
  99.4
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0
  99.0

Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company's segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).

FINANCIAL RATIOS  of  Shire ADR (SHPG)

Valuation Ratios
P/E Ratio 475.4
Price to Sales 13.6
Price to Book 5.4
Price to Tangible Book
Price to Cash Flow 58.5
Price to Free Cash Flow 77.3
Growth Rates
Sales Growth Rate 77.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 464.3%
Cap. Spend. - 3 Yr. Gr. Rate 32.8%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 68.7%
Total Debt to Equity 79.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 1.6%
Ret/ On Assets - 3 Yr. Avg. 13.8%
Return On Total Capital 1%
Ret/ On T. Cap. - 3 Yr. Avg. 19.8%
Return On Equity 1.7%
Return On Equity - 3 Yr. Avg. 21.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 66.5%
Gross Margin - 3 Yr. Avg. 78.9%
EBITDA Margin 19.6%
EBITDA Margin - 3 Yr. Avg. 38%
Operating Margin 8.4%
Oper. Margin - 3 Yr. Avg. 28.6%
Pre-Tax Margin 4.3%
Pre-Tax Margin - 3 Yr. Avg. 27.1%
Net Profit Margin 2.9%
Net Profit Margin - 3 Yr. Avg. 26.6%
Effective Tax Rate -25.9%
Eff/ Tax Rate - 3 Yr. Avg. -7%
Payout Ratio 52.3%

SHPG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SHPG stock intrinsic value calculation we used $15160.6 million for the last fiscal year's total revenue generated by Shire ADR. The default revenue input number comes from 0001 income statement of Shire 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 SHPG stock valuation model: a) initial revenue growth rate of 4.6% 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 6.3%, whose default value for SHPG is calculated based on our internal credit rating of Shire 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 Shire 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 SHPG stock the variable cost ratio is equal to 60.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3635 million in the base year in the intrinsic value calculation for SHPG 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 Shire ADR.

Corporate tax rate of 27% is the nominal tax rate for Shire 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 SHPG 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 SHPG are equal to 217.1%.

Life of production assets of 26.2 years is the average useful life of capital assets used in Shire 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 SHPG is equal to 13.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $36176.4 million for Shire 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 307.133 million for Shire 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 Shire ADR at the current share price and the inputted number of shares is $52.3 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Rule 2.9 Announcement   [Oct-16-18 02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Oct-15-18 02:00AM  GlobeNewswire]
▶ Irish bioscience company opens new $1.2 billion Georgia plant   [Oct-12-18 04:00AM  American City Business Journals]
▶ Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Oct-11-18 02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Oct-08-18 02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Oct-05-18 02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Oct-04-18 02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Oct-03-18 02:00AM  GlobeNewswire]
▶ Director/PDMR Shareholding   [Oct-02-18 09:30AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Director/PDMR Shareholding   [Oct-01-18 07:00AM  GlobeNewswire]
▶ Form 8 (DD) - Susan Kilsby   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - Steven Gillis   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - Sara Mathew   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - Olivier Bohuon   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - Ian Clark   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - Gail Fosler   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - David Ginsburg   [06:45AM  GlobeNewswire]
▶ Form 8 (DD) - Albert Stroucken   [06:45AM  GlobeNewswire]
▶ Total voting rights   [05:30AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Sep-26-18 02:00AM  GlobeNewswire]
▶ Japan Is Asias M&A King While China Gets the Pushback   [Sep-24-18 05:00PM  Bloomberg]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ 4 Stocks John Paulson and Paul Tudor Jones Agree On   [Sep-21-18 01:56PM  GuruFocus.com]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Sep-19-18 02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Sep-18-18 02:00AM  GlobeNewswire]
▶ Company News For Sep 17, 2018   [Sep-17-18 10:08AM  Zacks]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire backs out of deal to lease iconic Genzyme building in Cambridge   [Sep-11-18 04:17PM  American City Business Journals]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Sep-04-18 04:45AM  GlobeNewswire]
▶ Shire plc: Total voting rights   [Sep-03-18 05:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire Completes Sale of Oncology Franchise   [Aug-31-18 02:30AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Aug-30-18 02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Aug-29-18 02:00AM  GlobeNewswire]
▶ Shire wins FDA approval for potential blockbuster rare disease drug   [Aug-24-18 02:56PM  American City Business Journals]
▶ Shire plc: Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Aug-21-18 02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Aug-17-18 02:00AM  GlobeNewswire]
▶ Rule 2.9 Announcement   [Aug-15-18 02:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [Aug-10-18 02:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [Aug-09-18 02:00AM  GlobeNewswire]
▶ Shire plc: Rule 2.9 Announcement   [Aug-08-18 02:00AM  GlobeNewswire]
▶ Shire plc : Director/PDMR Shareholding   [Aug-07-18 06:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [02:00AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [Aug-02-18 02:02AM  GlobeNewswire]
▶ Shire plc : Total voting rights   [05:01AM  GlobeNewswire]
▶ Shire plc : Rule 2.9 Announcement   [02:01AM  GlobeNewswire]

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