Intrinsic value of Turkcell Iletisim Hizmetleri ADR - TKC

Previous Close

$5.44

  Intrinsic Value

$28,645

stock screener

  Rating & Target

str. buy

+999%

Previous close

$5.44

 
Intrinsic value

$28,645

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of TKC 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 0.2

 

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, %
  15.00
  14.00
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
Revenue, $m
  53,501
  60,991
  68,981
  77,459
  86,414
  95,837
  105,722
  116,065
  126,864
  138,122
  149,845
  162,039
  174,718
  187,895
  201,588
  215,818
  230,608
  245,984
  261,975
  278,613
  295,931
  313,965
  332,755
  352,342
  372,770
  394,085
  416,335
  439,573
  463,852
  489,229
Variable operating expenses, $m
  -23,551
  -26,859
  -30,386
  -34,130
  -38,084
  -42,245
  -46,610
  -51,177
  -55,945
  -60,916
  -66,164
  -71,549
  -77,147
  -82,965
  -89,012
  -95,295
  -101,825
  -108,615
  -115,676
  -123,022
  -130,669
  -138,632
  -146,929
  -155,578
  -164,598
  -174,009
  -183,834
  -194,095
  -204,815
  -216,021
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
  -23,551
  -26,859
  -30,386
  -34,130
  -38,084
  -42,245
  -46,610
  -51,177
  -55,945
  -60,916
  -66,164
  -71,549
  -77,147
  -82,965
  -89,012
  -95,295
  -101,825
  -108,615
  -115,676
  -123,022
  -130,669
  -138,632
  -146,929
  -155,578
  -164,598
  -174,009
  -183,834
  -194,095
  -204,815
  -216,021
Operating income, $m
  77,052
  87,850
  99,367
  111,589
  124,498
  138,082
  152,332
  167,241
  182,809
  199,039
  216,009
  233,588
  251,865
  270,860
  290,599
  311,112
  332,433
  354,599
  377,651
  401,635
  426,600
  452,598
  479,685
  507,920
  537,368
  568,094
  600,169
  633,667
  668,667
  705,250
EBITDA, $m
  82,806
  94,399
  106,765
  119,887
  133,747
  148,332
  163,632
  179,640
  196,355
  213,779
  231,922
  250,797
  270,420
  290,814
  312,008
  334,032
  356,924
  380,722
  405,473
  431,224
  458,028
  485,941
  515,023
  545,339
  576,956
  609,946
  644,384
  680,350
  717,928
  757,206
Interest expense (income), $m
  115
  4,068
  4,992
  5,984
  7,043
  8,166
  9,352
  10,601
  11,910
  13,281
  14,711
  16,203
  17,756
  19,371
  21,051
  22,797
  24,611
  26,496
  28,455
  30,492
  32,611
  34,815
  37,109
  39,498
  41,988
  44,583
  47,289
  50,113
  53,060
  56,139
  59,355
Earnings before tax, $m
  72,984
  82,857
  93,383
  104,546
  116,332
  128,729
  141,731
  155,331
  169,529
  184,327
  199,806
  215,832
  232,493
  249,809
  267,803
  286,502
  305,937
  326,143
  347,159
  369,024
  391,785
  415,488
  440,186
  465,932
  492,785
  520,805
  550,056
  580,607
  612,528
  645,894
Tax expense, $m
  19,706
  22,372
  25,213
  28,227
  31,410
  34,757
  38,267
  41,939
  45,773
  49,768
  53,948
  58,275
  62,773
  67,448
  72,307
  77,355
  82,603
  88,059
  93,733
  99,637
  105,782
  112,182
  118,850
  125,802
  133,052
  140,617
  148,515
  156,764
  165,383
  174,392
Net income, $m
  53,278
  60,486
  68,170
  76,318
  84,922
  93,973
  103,464
  113,392
  123,756
  134,559
  145,858
  157,558
  169,720
  182,361
  195,496
  209,146
  223,334
  238,085
  253,426
  269,388
  286,003
  303,306
  321,336
  340,131
  359,733
  380,188
  401,541
  423,843
  447,146
  471,503

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
  103,085
  117,517
  132,911
  149,246
  166,500
  184,657
  203,703
  223,632
  244,440
  266,132
  288,718
  312,214
  336,643
  362,032
  388,416
  415,834
  444,331
  473,957
  504,769
  536,826
  570,194
  604,943
  641,147
  678,887
  718,247
  759,315
  802,187
  846,961
  893,742
  942,638
Adjusted assets (=assets-cash), $m
  103,085
  117,517
  132,911
  149,246
  166,500
  184,657
  203,703
  223,632
  244,440
  266,132
  288,718
  312,214
  336,643
  362,032
  388,416
  415,834
  444,331
  473,957
  504,769
  536,826
  570,194
  604,943
  641,147
  678,887
  718,247
  759,315
  802,187
  846,961
  893,742
  942,638
Revenue / Adjusted assets
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
  0.519
Average production assets, $m
  28,409
  32,386
  36,629
  41,131
  45,886
  50,889
  56,138
  61,630
  67,365
  73,343
  79,568
  86,043
  92,775
  99,772
  107,043
  114,599
  122,453
  130,617
  139,109
  147,943
  157,139
  166,716
  176,693
  187,094
  197,941
  209,259
  221,074
  233,413
  246,305
  259,781
Working capital, $m
  13,375
  15,248
  17,245
  19,365
  21,603
  23,959
  26,431
  29,016
  31,716
  34,531
  37,461
  40,510
  43,679
  46,974
  50,397
  53,954
  57,652
  61,496
  65,494
  69,653
  73,983
  78,491
  83,189
  88,086
  93,193
  98,521
  104,084
  109,893
  115,963
  122,307
Total debt, $m
  40,587
  48,654
  57,260
  66,391
  76,036
  86,186
  96,833
  107,973
  119,605
  131,730
  144,356
  157,490
  171,146
  185,338
  200,087
  215,414
  231,343
  247,905
  265,129
  283,049
  301,701
  321,126
  341,364
  362,461
  384,463
  407,420
  431,385
  456,414
  482,564
  509,898
Total liabilities, $m
  57,624
  65,692
  74,297
  83,429
  93,074
  103,223
  113,870
  125,010
  136,642
  148,768
  161,393
  174,528
  188,183
  202,376
  217,124
  232,451
  248,381
  264,942
  282,166
  300,086
  318,739
  338,163
  358,401
  379,498
  401,500
  424,457
  448,423
  473,451
  499,602
  526,935
Total equity, $m
  45,460
  51,825
  58,614
  65,818
  73,427
  81,434
  89,833
  98,622
  107,798
  117,364
  127,325
  137,686
  148,459
  159,656
  171,291
  183,383
  195,950
  209,015
  222,603
  236,740
  251,456
  266,780
  282,746
  299,389
  316,747
  334,858
  353,764
  373,510
  394,140
  415,704
Total liabilities and equity, $m
  103,084
  117,517
  132,911
  149,247
  166,501
  184,657
  203,703
  223,632
  244,440
  266,132
  288,718
  312,214
  336,642
  362,032
  388,415
  415,834
  444,331
  473,957
  504,769
  536,826
  570,195
  604,943
  641,147
  678,887
  718,247
  759,315
  802,187
  846,961
  893,742
  942,639
Debt-to-equity ratio
  0.890
  0.940
  0.980
  1.010
  1.040
  1.060
  1.080
  1.090
  1.110
  1.120
  1.130
  1.140
  1.150
  1.160
  1.170
  1.170
  1.180
  1.190
  1.190
  1.200
  1.200
  1.200
  1.210
  1.210
  1.210
  1.220
  1.220
  1.220
  1.220
  1.230
Adjusted equity ratio
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441
  0.441

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  53,278
  60,486
  68,170
  76,318
  84,922
  93,973
  103,464
  113,392
  123,756
  134,559
  145,858
  157,558
  169,720
  182,361
  195,496
  209,146
  223,334
  238,085
  253,426
  269,388
  286,003
  303,306
  321,336
  340,131
  359,733
  380,188
  401,541
  423,843
  447,146
  471,503
Depreciation, amort., depletion, $m
  5,754
  6,549
  7,398
  8,298
  9,249
  10,250
  11,300
  12,398
  13,545
  14,741
  15,914
  17,209
  18,555
  19,954
  21,409
  22,920
  24,491
  26,123
  27,822
  29,589
  31,428
  33,343
  35,339
  37,419
  39,588
  41,852
  44,215
  46,683
  49,261
  51,956
Funds from operations, $m
  59,032
  67,035
  75,568
  84,617
  94,171
  104,223
  114,763
  125,790
  137,301
  149,300
  161,772
  174,766
  188,275
  202,315
  216,905
  232,066
  247,825
  264,208
  281,248
  298,976
  317,431
  336,650
  356,674
  377,549
  399,321
  422,039
  445,756
  470,526
  496,407
  523,459
Change in working capital, $m
  1,745
  1,873
  1,997
  2,119
  2,239
  2,356
  2,471
  2,586
  2,700
  2,815
  2,931
  3,049
  3,170
  3,294
  3,423
  3,557
  3,698
  3,844
  3,998
  4,159
  4,329
  4,509
  4,698
  4,897
  5,107
  5,329
  5,563
  5,809
  6,070
  6,344
Cash from operations, $m
  57,288
  65,163
  73,570
  82,497
  91,933
  101,867
  112,292
  123,204
  134,601
  146,485
  158,841
  171,717
  185,106
  199,021
  213,481
  228,509
  244,127
  260,364
  277,250
  294,817
  313,101
  332,141
  351,977
  372,653
  394,214
  416,711
  440,193
  464,716
  490,337
  517,115
Maintenance CAPEX, $m
  -4,942
  -5,682
  -6,477
  -7,326
  -8,226
  -9,177
  -10,178
  -11,228
  -12,326
  -13,473
  -14,669
  -15,914
  -17,209
  -18,555
  -19,954
  -21,409
  -22,920
  -24,491
  -26,123
  -27,822
  -29,589
  -31,428
  -33,343
  -35,339
  -37,419
  -39,588
  -41,852
  -44,215
  -46,683
  -49,261
New CAPEX, $m
  -3,701
  -3,977
  -4,243
  -4,502
  -4,755
  -5,004
  -5,249
  -5,492
  -5,735
  -5,978
  -6,224
  -6,475
  -6,732
  -6,997
  -7,271
  -7,556
  -7,854
  -8,165
  -8,491
  -8,835
  -9,196
  -9,576
  -9,978
  -10,401
  -10,847
  -11,318
  -11,815
  -12,339
  -12,892
  -13,475
Cash from investing activities, $m
  -8,643
  -9,659
  -10,720
  -11,828
  -12,981
  -14,181
  -15,427
  -16,720
  -18,061
  -19,451
  -20,893
  -22,389
  -23,941
  -25,552
  -27,225
  -28,965
  -30,774
  -32,656
  -34,614
  -36,657
  -38,785
  -41,004
  -43,321
  -45,740
  -48,266
  -50,906
  -53,667
  -56,554
  -59,575
  -62,736
Free cash flow, $m
  48,645
  55,504
  62,850
  70,670
  78,951
  87,686
  96,865
  106,485
  116,541
  127,034
  137,948
  149,329
  161,165
  173,469
  186,256
  199,544
  213,354
  227,709
  242,635
  258,161
  274,317
  291,137
  308,656
  326,913
  345,948
  365,804
  386,527
  408,162
  430,762
  454,378
Issuance/(repayment) of debt, $m
  7,510
  8,067
  8,606
  9,131
  9,645
  10,150
  10,647
  11,140
  11,632
  12,126
  12,626
  13,134
  13,656
  14,193
  14,749
  15,327
  15,930
  16,561
  17,224
  17,920
  18,653
  19,425
  20,238
  21,097
  22,002
  22,957
  23,965
  25,029
  26,150
  27,333
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  
  7,510
  8,067
  8,606
  9,131
  9,645
  10,150
  10,647
  11,140
  11,632
  12,126
  12,626
  13,134
  13,656
  14,193
  14,749
  15,327
  15,930
  16,561
  17,224
  17,920
  18,653
  19,425
  20,238
  21,097
  22,002
  22,957
  23,965
  25,029
  26,150
  27,333
Total cash flow (excl. dividends), $m
  56,155
  63,571
  71,456
  79,801
  88,597
  97,835
  107,512
  117,624
  128,172
  139,160
  150,574
  162,463
  174,820
  187,661
  201,004
  214,871
  229,284
  244,270
  259,859
  276,081
  292,969
  310,561
  328,895
  348,010
  367,951
  388,762
  410,492
  433,191
  456,912
  481,712
Retained Cash Flow (-), $m
  -5,911
  -6,364
  -6,789
  -7,204
  -7,609
  -8,007
  -8,399
  -8,788
  -9,176
  -9,566
  -9,960
  -10,362
  -10,773
  -11,197
  -11,635
  -12,091
  -12,567
  -13,065
  -13,588
  -14,137
  -14,715
  -15,324
  -15,966
  -16,643
  -17,358
  -18,111
  -18,906
  -19,745
  -20,630
  -21,563
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
  50,244
  57,207
  64,667
  72,597
  80,987
  89,828
  99,113
  108,836
  118,996
  129,594
  140,614
  152,101
  164,047
  176,465
  189,369
  202,779
  216,716
  231,205
  246,271
  261,943
  278,254
  295,237
  312,928
  331,367
  350,593
  370,651
  391,585
  413,446
  436,282
  460,148
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
  48,173
  52,371
  56,277
  59,776
  62,775
  65,192
  66,959
  68,025
  68,357
  67,941
  66,775
  64,907
  62,374
  59,242
  55,596
  51,531
  47,154
  42,579
  37,919
  33,285
  28,781
  24,497
  20,510
  16,877
  13,639
  10,814
  8,405
  6,397
  4,762
  3,465
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

Turkcell Iletisim Hizmetleri AS is engaged in establishing and operating a Global System for Mobile Communications (GSM) network in Turkey and regional states. The Company's segments include Turkcell Turkey, which includes the operations of Turkcell Superonline, Turkcell Satis ve Dagitim Hizmetleri A.S., group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S., Turktell Bilisim Servisleri A.S., Kule Hizmet ve Isletmecilik A.S., Turkcell Odeme Hizmetleri A.S. and Turkcell Gayrimenkul Hizmetleri A.S; Turkcell International, which includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi, Eastasian Consortium BV, lifecell LLC, UkrTower LLC, LLC Global Bilgi, Turkcell Europe GmbH, Lifetech LLC, Beltower LLC and Fintur Holdings BV, and Other, which comprises the information and entertainment services in Turkey and Azerbaijan, and non-group call center operations of Turkcell Global Bilgi and Turkcell Finansman AS.

FINANCIAL RATIOS  of  Turkcell Iletisim Hizmetleri ADR (TKC)

Valuation Ratios
P/E Ratio 29.8
Price to Sales 3.1
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 36.9
Price to Free Cash Flow -20.3
Growth Rates
Sales Growth Rate 11.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -25.4%
Cap. Spend. - 3 Yr. Gr. Rate 0.9%
Financial Strength
Quick Ratio 2
Current Ratio 0.2
LT Debt to Equity 43.3%
Total Debt to Equity 61.1%
Interest Coverage 6
Management Effectiveness
Return On Assets 6.4%
Ret/ On Assets - 3 Yr. Avg. 7.3%
Return On Total Capital 6.8%
Ret/ On T. Cap. - 3 Yr. Avg. 8.2%
Return On Equity 10%
Return On Equity - 3 Yr. Avg. 10.6%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 35.5%
Gross Margin - 3 Yr. Avg. 37.8%
EBITDA Margin 32.2%
EBITDA Margin - 3 Yr. Avg. 32.1%
Operating Margin 24.2%
Oper. Margin - 3 Yr. Avg. 22.6%
Pre-Tax Margin 14.2%
Pre-Tax Margin - 3 Yr. Avg. 16.6%
Net Profit Margin 10.6%
Net Profit Margin - 3 Yr. Avg. 14.2%
Effective Tax Rate 21.1%
Eff/ Tax Rate - 3 Yr. Avg. 28.3%
Payout Ratio 3.5%

TKC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TKC stock intrinsic value calculation we used $46522.5963061 million for the last fiscal year's total revenue generated by Turkcell Iletisim Hizmetleri ADR. The default revenue input number comes from 0001 income statement of Turkcell Iletisim Hizmetleri 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 TKC stock valuation model: a) initial revenue growth rate of 15% 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 TKC is calculated based on our internal credit rating of Turkcell Iletisim Hizmetleri 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 Turkcell Iletisim Hizmetleri 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 TKC stock the variable cost ratio is equal to -44%.

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 TKC 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 12.3% for Turkcell Iletisim Hizmetleri ADR.

Corporate tax rate of 27% is the nominal tax rate for Turkcell Iletisim Hizmetleri 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 TKC 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 TKC are equal to 53.1%.

Life of production assets of 3.7 years is the average useful life of capital assets used in Turkcell Iletisim Hizmetleri 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 TKC is equal to 25%. 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 - $39549.237467 million for Turkcell Iletisim Hizmetleri 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 44.775 million for Turkcell Iletisim Hizmetleri 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 Turkcell Iletisim Hizmetleri ADR at the current share price and the inputted number of shares is $0.2 billion.

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COMPANY NEWS

▶ Turkcell Foundation Inaugurated   [Nov-16-18 11:48AM  Business Wire]
▶ Turkcell Iletisim Hizmetleri: Third Quarter 2018 Results   [Oct-24-18 11:29AM  Business Wire]
▶ 7 High-Value, High-Yield Growth Stocks to Buy   [Oct-16-18 03:05PM  InvestorPlace]
▶ Square: The Best Stock to Buy on This Weeks Dip   [Oct-12-18 09:58AM  InvestorPlace]
▶ Why Turkcell Iletisim Hizmetleri Stock Dropped 10% Today   [Oct-04-18 08:19PM  Motley Fool]
▶ Why Turkcell Iletisim Hizmetleri Stock Popped 11% Today   [Sep-13-18 06:26PM  Motley Fool]
▶ 3 Dividend Stocks That Pay You Better Than Ford Does   [Sep-09-18 06:16AM  Motley Fool]
▶ Why Turkcell Iletisim Hizmetleri Stock Just Dropped 13%   [Aug-10-18 12:39PM  Motley Fool]
▶ Turkcell Iletisim Hizmetleri: Second Quarter 2018 Results   [Jul-25-18 11:40AM  Business Wire]
▶ Turkcell Opens Next-Generation Data Center in Izmir   [Jun-22-18 12:16PM  Business Wire]
▶ Turkcell Iletisim Hizmetleri: First Quarter 2018 Results   [Apr-24-18 11:22AM  Business Wire]
▶ CORRECTING and REPLACING Future of 5G Discussed in Istanbul   [Apr-06-18 01:28PM  Business Wire]
▶ Future of 5G Discussed in Istanbul   [Apr-05-18 03:36PM  Business Wire]
▶ Turkcells Investment Grade Status Affirmed Twice in a Week   [Apr-02-18 08:45AM  Business Wire]
▶ lifecell Becomes First to Launch 4.5G in Ukraine   [Mar-30-18 11:48AM  Business Wire]
▶ Turkcell Files Its 2017 Annual Report on Form 20-F   [Mar-22-18 05:35PM  Business Wire]
▶ Lifecell to Provide the Best LTE Experience in Ukraine   [Mar-19-18 07:04AM  Business Wire]
▶ Lifecell Ventures Marks a New Era for Telecom Industry   [Feb-26-18 07:55AM  Business Wire]
▶ Top Ranked Value Stocks to Buy for December 13th   [Dec-13-17 03:50PM  InvestorPlace]
▶ Turkcell Launches Turkeys Search Engine Yaani   [Oct-26-17 12:44PM  Business Wire]
▶ Turkcell Iletisim Hizmetleri: Third Quarter 2017 Results   [Oct-25-17 11:24AM  Business Wire]
▶ Turkcell Rolls Out NarrowBand-IoT Network across Turkey   [Aug-24-17 03:41AM  Business Wire]
▶ [$$] 2 Steady Stocks in a Volatile Post-Coup Turkey   [Jul-29-17 12:01AM  Barrons.com]
▶ Turkcell Iletisim Hizmetleri: Second Quarter 2017 Results   [Jul-27-17 11:46AM  Business Wire]
▶ Turkcell Moving Fast on the Way To 5G   [Jun-16-17 10:28AM  Business Wire]
▶ 12 Emerging Market Headlines: Earnings, Oil & Risk   [Apr-26-17 07:04PM  Barrons.com]
▶ Turkcell Files Its 2016 Annual Report on Form 20-F   [Mar-20-17 05:15PM  Business Wire]

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