Intrinsic value of Sina Corporation - SINA

Previous Close

$65.11

  Intrinsic Value

$3,453

stock screener

  Rating & Target

str. buy

+999%

Previous close

$65.11

 
Intrinsic value

$3,453

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of SINA 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 4.7

 

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, %
  53.60
  48.74
  44.37
  40.43
  36.89
  33.70
  30.83
  28.25
  25.92
  23.83
  21.95
  20.25
  18.73
  17.35
  16.12
  15.01
  14.01
  13.11
  12.29
  11.57
  10.91
  10.32
  9.79
  9.31
  8.88
  8.49
  8.14
  7.83
  7.54
  7.29
Revenue, $m
  2,433
  3,619
  5,224
  7,337
  10,043
  13,427
  17,566
  22,528
  28,368
  35,127
  42,836
  51,511
  61,157
  71,770
  83,337
  95,843
  109,267
  123,586
  138,781
  154,831
  171,721
  189,439
  207,977
  227,334
  247,514
  268,526
  290,384
  313,110
  336,729
  361,273
Variable operating expenses, $m
  1,041
  1,543
  2,223
  3,117
  4,263
  5,696
  7,449
  9,550
  12,022
  14,884
  18,138
  21,811
  25,896
  30,390
  35,288
  40,583
  46,267
  52,331
  58,765
  65,561
  72,713
  80,215
  88,065
  96,261
  104,806
  113,703
  122,958
  132,581
  142,583
  152,976
Fixed operating expenses, $m
  538
  549
  561
  574
  586
  599
  613
  626
  640
  654
  668
  683
  698
  713
  729
  745
  761
  778
  795
  813
  831
  849
  868
  887
  906
  926
  947
  967
  989
  1,010
Total operating expenses, $m
  1,579
  2,092
  2,784
  3,691
  4,849
  6,295
  8,062
  10,176
  12,662
  15,538
  18,806
  22,494
  26,594
  31,103
  36,017
  41,328
  47,028
  53,109
  59,560
  66,374
  73,544
  81,064
  88,933
  97,148
  105,712
  114,629
  123,905
  133,548
  143,572
  153,986
Operating income, $m
  855
  1,527
  2,440
  3,646
  5,194
  7,132
  9,505
  12,352
  15,706
  19,589
  24,030
  29,016
  34,563
  40,667
  47,320
  54,515
  62,238
  70,477
  79,221
  88,457
  98,178
  108,375
  119,045
  130,187
  141,802
  153,896
  166,479
  179,561
  193,158
  207,287
EBITDA, $m
  912
  1,606
  2,551
  3,797
  5,396
  7,399
  9,852
  12,794
  16,259
  20,272
  24,849
  30,002
  35,733
  42,040
  48,916
  56,349
  64,329
  72,843
  81,877
  91,421
  101,464
  112,001
  123,026
  134,538
  146,539
  159,036
  172,037
  185,554
  199,602
  214,202
Interest expense (income), $m
  8
  61
  140
  250
  399
  596
  847
  1,162
  1,547
  2,009
  2,552
  3,180
  3,897
  4,704
  5,601
  6,588
  7,664
  8,827
  10,075
  11,407
  12,820
  14,313
  15,883
  17,531
  19,255
  21,056
  22,932
  24,886
  26,919
  29,033
  31,229
Earnings before tax, $m
  794
  1,387
  2,190
  3,247
  4,598
  6,284
  8,343
  10,805
  13,697
  17,037
  20,849
  25,119
  29,859
  35,066
  40,733
  46,851
  53,411
  60,402
  67,814
  75,637
  83,865
  92,491
  101,514
  110,931
  120,746
  130,964
  141,592
  152,642
  164,125
  176,058
Tax expense, $m
  214
  375
  591
  877
  1,241
  1,697
  2,253
  2,917
  3,698
  4,600
  5,629
  6,782
  8,062
  9,468
  10,998
  12,650
  14,421
  16,309
  18,310
  20,422
  22,644
  24,973
  27,409
  29,951
  32,602
  35,360
  38,230
  41,213
  44,314
  47,536
Net income, $m
  580
  1,013
  1,599
  2,370
  3,356
  4,588
  6,090
  7,888
  9,999
  12,437
  15,220
  18,337
  21,797
  25,598
  29,735
  34,201
  38,990
  44,094
  49,504
  55,215
  61,221
  67,519
  74,105
  80,980
  88,145
  95,604
  103,363
  111,428
  119,811
  128,522

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
  5,006
  7,446
  10,750
  15,096
  20,664
  27,628
  36,145
  46,354
  58,369
  72,278
  88,140
  105,989
  125,837
  147,674
  171,476
  197,209
  224,829
  254,293
  285,557
  318,582
  353,335
  389,792
  427,937
  467,766
  509,288
  552,522
  597,498
  644,258
  692,858
  743,361
Adjusted assets (=assets-cash), $m
  5,006
  7,446
  10,750
  15,096
  20,664
  27,628
  36,145
  46,354
  58,369
  72,278
  88,140
  105,989
  125,837
  147,674
  171,476
  197,209
  224,829
  254,293
  285,557
  318,582
  353,335
  389,792
  427,937
  467,766
  509,288
  552,522
  597,498
  644,258
  692,858
  743,361
Revenue / Adjusted assets
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
  0.486
Average production assets, $m
  433
  644
  930
  1,306
  1,788
  2,390
  3,127
  4,010
  5,049
  6,253
  7,625
  9,169
  10,886
  12,775
  14,834
  17,060
  19,450
  21,998
  24,703
  27,560
  30,566
  33,720
  37,020
  40,466
  44,058
  47,798
  51,688
  55,733
  59,938
  64,307
Working capital, $m
  -793
  -1,180
  -1,703
  -2,392
  -3,274
  -4,377
  -5,727
  -7,344
  -9,248
  -11,451
  -13,965
  -16,793
  -19,937
  -23,397
  -27,168
  -31,245
  -35,621
  -40,289
  -45,243
  -50,475
  -55,981
  -61,757
  -67,801
  -74,111
  -80,690
  -87,539
  -94,665
  -102,074
  -109,774
  -117,775
Total debt, $m
  2,586
  4,629
  7,394
  11,032
  15,692
  21,521
  28,649
  37,195
  47,251
  58,893
  72,169
  87,109
  103,722
  121,999
  141,922
  163,460
  186,578
  211,240
  237,408
  265,050
  294,138
  324,652
  356,579
  389,917
  424,671
  460,857
  498,502
  537,640
  578,318
  620,589
Total liabilities, $m
  4,190
  6,233
  8,998
  12,635
  17,296
  23,124
  30,253
  38,798
  48,855
  60,497
  73,773
  88,713
  105,326
  123,603
  143,526
  165,064
  188,182
  212,843
  239,012
  266,654
  295,742
  326,256
  358,183
  391,521
  426,274
  462,461
  500,105
  539,244
  579,922
  622,193
Total equity, $m
  816
  1,214
  1,752
  2,461
  3,368
  4,503
  5,892
  7,556
  9,514
  11,781
  14,367
  17,276
  20,511
  24,071
  27,951
  32,145
  36,647
  41,450
  46,546
  51,929
  57,594
  63,536
  69,754
  76,246
  83,014
  90,061
  97,392
  105,014
  112,936
  121,168
Total liabilities and equity, $m
  5,006
  7,447
  10,750
  15,096
  20,664
  27,627
  36,145
  46,354
  58,369
  72,278
  88,140
  105,989
  125,837
  147,674
  171,477
  197,209
  224,829
  254,293
  285,558
  318,583
  353,336
  389,792
  427,937
  467,767
  509,288
  552,522
  597,497
  644,258
  692,858
  743,361
Debt-to-equity ratio
  3.170
  3.810
  4.220
  4.480
  4.660
  4.780
  4.860
  4.920
  4.970
  5.000
  5.020
  5.040
  5.060
  5.070
  5.080
  5.090
  5.090
  5.100
  5.100
  5.100
  5.110
  5.110
  5.110
  5.110
  5.120
  5.120
  5.120
  5.120
  5.120
  5.120
Adjusted equity ratio
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163
  0.163

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  580
  1,013
  1,599
  2,370
  3,356
  4,588
  6,090
  7,888
  9,999
  12,437
  15,220
  18,337
  21,797
  25,598
  29,735
  34,201
  38,990
  44,094
  49,504
  55,215
  61,221
  67,519
  74,105
  80,980
  88,145
  95,604
  103,363
  111,428
  119,811
  128,522
Depreciation, amort., depletion, $m
  57
  80
  110
  151
  203
  267
  347
  442
  553
  683
  820
  986
  1,171
  1,374
  1,595
  1,834
  2,091
  2,365
  2,656
  2,963
  3,287
  3,626
  3,981
  4,351
  4,737
  5,140
  5,558
  5,993
  6,445
  6,915
Funds from operations, $m
  637
  1,092
  1,709
  2,521
  3,559
  4,855
  6,437
  8,330
  10,552
  13,120
  16,040
  19,323
  22,968
  26,972
  31,330
  36,036
  41,082
  46,459
  52,160
  58,179
  64,508
  71,145
  78,086
  85,331
  92,882
  100,743
  108,920
  117,421
  126,256
  135,437
Change in working capital, $m
  -277
  -387
  -523
  -689
  -882
  -1,103
  -1,349
  -1,618
  -1,904
  -2,204
  -2,513
  -2,828
  -3,145
  -3,460
  -3,771
  -4,077
  -4,376
  -4,668
  -4,953
  -5,232
  -5,506
  -5,776
  -6,044
  -6,310
  -6,579
  -6,850
  -7,126
  -7,409
  -7,700
  -8,002
Cash from operations, $m
  914
  1,479
  2,233
  3,209
  4,441
  5,958
  7,787
  9,947
  12,456
  15,324
  18,553
  22,151
  26,112
  30,431
  35,101
  40,113
  45,458
  51,127
  57,114
  63,411
  70,014
  76,921
  84,129
  91,641
  99,461
  107,593
  116,046
  124,830
  133,956
  143,439
Maintenance CAPEX, $m
  -30
  -47
  -69
  -100
  -140
  -192
  -257
  -336
  -431
  -543
  -672
  -820
  -986
  -1,171
  -1,374
  -1,595
  -1,834
  -2,091
  -2,365
  -2,656
  -2,963
  -3,287
  -3,626
  -3,981
  -4,351
  -4,737
  -5,140
  -5,558
  -5,993
  -6,445
New CAPEX, $m
  -152
  -211
  -286
  -376
  -482
  -602
  -737
  -883
  -1,039
  -1,203
  -1,372
  -1,544
  -1,717
  -1,889
  -2,059
  -2,226
  -2,389
  -2,549
  -2,705
  -2,857
  -3,006
  -3,154
  -3,300
  -3,446
  -3,592
  -3,740
  -3,891
  -4,045
  -4,204
  -4,369
Cash from investing activities, $m
  -182
  -258
  -355
  -476
  -622
  -794
  -994
  -1,219
  -1,470
  -1,746
  -2,044
  -2,364
  -2,703
  -3,060
  -3,433
  -3,821
  -4,223
  -4,640
  -5,070
  -5,513
  -5,969
  -6,441
  -6,926
  -7,427
  -7,943
  -8,477
  -9,031
  -9,603
  -10,197
  -10,814
Free cash flow, $m
  731
  1,221
  1,878
  2,733
  3,819
  5,164
  6,793
  8,728
  10,985
  13,577
  16,508
  19,787
  23,409
  27,372
  31,668
  36,292
  41,234
  46,487
  52,044
  57,898
  64,044
  70,480
  77,203
  84,215
  91,518
  99,116
  107,016
  115,227
  123,759
  132,625
Issuance/(repayment) of debt, $m
  1,464
  2,042
  2,765
  3,638
  4,661
  5,828
  7,129
  8,545
  10,057
  11,642
  13,276
  14,940
  16,612
  18,278
  19,923
  21,538
  23,118
  24,661
  26,168
  27,642
  29,088
  30,514
  31,927
  33,337
  34,754
  36,186
  37,645
  39,139
  40,678
  42,271
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  
  1,464
  2,042
  2,765
  3,638
  4,661
  5,828
  7,129
  8,545
  10,057
  11,642
  13,276
  14,940
  16,612
  18,278
  19,923
  21,538
  23,118
  24,661
  26,168
  27,642
  29,088
  30,514
  31,927
  33,337
  34,754
  36,186
  37,645
  39,139
  40,678
  42,271
Total cash flow (excl. dividends), $m
  2,195
  3,263
  4,643
  6,371
  8,480
  10,992
  13,922
  17,273
  21,042
  25,219
  29,785
  34,727
  40,022
  45,649
  51,591
  57,829
  64,352
  71,148
  78,212
  85,540
  93,133
  100,994
  109,131
  117,553
  126,272
  135,302
  144,661
  154,365
  164,437
  174,896
Retained Cash Flow (-), $m
  -285
  -398
  -538
  -708
  -908
  -1,135
  -1,388
  -1,664
  -1,958
  -2,267
  -2,585
  -2,909
  -3,235
  -3,559
  -3,880
  -4,194
  -4,502
  -4,803
  -5,096
  -5,383
  -5,665
  -5,942
  -6,218
  -6,492
  -6,768
  -7,047
  -7,331
  -7,622
  -7,922
  -8,232
Prev. year cash balance distribution, $m
  2,316
  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
  4,226
  2,866
  4,104
  5,663
  7,572
  9,857
  12,533
  15,609
  19,084
  22,952
  27,199
  31,817
  36,787
  42,090
  47,711
  53,635
  59,850
  66,346
  73,116
  80,157
  87,468
  95,052
  102,913
  111,060
  119,504
  128,255
  137,330
  146,743
  156,515
  166,664
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
  4,052
  2,623
  3,572
  4,663
  5,869
  7,154
  8,467
  9,756
  10,962
  12,033
  12,917
  13,578
  13,987
  14,130
  14,007
  13,630
  13,022
  12,218
  11,258
  10,185
  9,047
  7,887
  6,745
  5,657
  4,649
  3,742
  2,947
  2,270
  1,709
  1,255
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

Sina Corporation is an online media company serving China and the global Chinese communities. The Company's digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company's segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.

FINANCIAL RATIOS  of  Sina Corporation (SINA)

Valuation Ratios
P/E Ratio 20.5
Price to Sales 4.5
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 10.4
Price to Free Cash Flow 11.4
Growth Rates
Sales Growth Rate 17%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -15.6%
Cap. Spend. - 3 Yr. Gr. Rate -17.3%
Financial Strength
Quick Ratio 54
Current Ratio 0.3
LT Debt to Equity 5.7%
Total Debt to Equity 6.9%
Interest Coverage 39
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital 7.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.1%
Return On Equity 8.6%
Return On Equity - 3 Yr. Avg. 6.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 65.6%
Gross Margin - 3 Yr. Avg. 63.2%
EBITDA Margin 33.2%
EBITDA Margin - 3 Yr. Avg. 24.1%
Operating Margin 2.8%
Oper. Margin - 3 Yr. Avg. -1.6%
Pre-Tax Margin 29.6%
Pre-Tax Margin - 3 Yr. Avg. 18.9%
Net Profit Margin 21.8%
Net Profit Margin - 3 Yr. Avg. 15.9%
Effective Tax Rate 9.2%
Eff/ Tax Rate - 3 Yr. Avg. 11.7%
Payout Ratio 0%

SINA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SINA stock intrinsic value calculation we used $1584 million for the last fiscal year's total revenue generated by Sina Corporation. The default revenue input number comes from 0001 income statement of Sina Corporation. 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 SINA stock valuation model: a) initial revenue growth rate of 53.6% 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 4.3%, whose default value for SINA is calculated based on our internal credit rating of Sina Corporation, 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 Sina Corporation.
    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 SINA stock the variable cost ratio is equal to 43%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $526 million in the base year in the intrinsic value calculation for SINA 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 Sina Corporation.

Corporate tax rate of 27% is the nominal tax rate for Sina Corporation. 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 SINA 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 SINA are equal to 17.8%.

Life of production assets of 9.3 years is the average useful life of capital assets used in Sina Corporation 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 SINA is equal to -32.6%. 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 - $2846.842 million for Sina Corporation - 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 71.441 million for Sina Corporation 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 Sina Corporation at the current share price and the inputted number of shares is $4.7 billion.

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