Intrinsic value of Tata Motors ADR - TTM

Previous Close

$12.57

  Intrinsic Value

$20.66

stock screener

  Rating & Target

str. buy

+64%

Previous close

$12.57

 
Intrinsic value

$20.66

 
Up/down potential

+64%

 
Rating

str. buy

We calculate the intrinsic value of TTM 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 1.0

 

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, %
  8.30
  7.97
  7.67
  7.41
  7.17
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.50
  5.45
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.16
Revenue, $m
  47,961
  51,783
  55,756
  59,886
  64,176
  68,636
  73,271
  78,091
  83,105
  88,323
  93,755
  99,414
  105,311
  111,460
  117,875
  124,569
  131,560
  138,862
  146,492
  154,470
  162,813
  171,542
  180,677
  190,239
  200,251
  210,738
  221,725
  233,236
  245,301
  257,947
Variable operating expenses, $m
  49,216
  53,054
  57,044
  61,191
  65,500
  69,978
  74,633
  79,473
  84,508
  89,748
  94,149
  99,831
  105,753
  111,928
  118,369
  125,092
  132,111
  139,444
  147,107
  155,118
  163,496
  172,261
  181,434
  191,037
  201,091
  211,622
  222,655
  234,214
  246,330
  259,029
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
  49,216
  53,054
  57,044
  61,191
  65,500
  69,978
  74,633
  79,473
  84,508
  89,748
  94,149
  99,831
  105,753
  111,928
  118,369
  125,092
  132,111
  139,444
  147,107
  155,118
  163,496
  172,261
  181,434
  191,037
  201,091
  211,622
  222,655
  234,214
  246,330
  259,029
Operating income, $m
  -1,255
  -1,271
  -1,288
  -1,305
  -1,323
  -1,342
  -1,362
  -1,382
  -1,403
  -1,425
  -393
  -417
  -442
  -467
  -494
  -522
  -552
  -582
  -614
  -648
  -683
  -719
  -758
  -798
  -840
  -884
  -930
  -978
  -1,029
  -1,082
EBITDA, $m
  2,495
  2,694
  2,900
  3,115
  3,338
  3,570
  3,811
  4,062
  4,323
  4,594
  4,877
  5,171
  5,478
  5,798
  6,132
  6,480
  6,844
  7,223
  7,620
  8,035
  8,469
  8,923
  9,399
  9,896
  10,417
  10,962
  11,534
  12,133
  12,760
  13,418
Interest expense (income), $m
  782
  900
  1,059
  1,226
  1,399
  1,579
  1,766
  1,960
  2,162
  2,372
  2,591
  2,818
  3,055
  3,301
  3,558
  3,826
  4,106
  4,397
  4,702
  5,020
  5,353
  5,700
  6,064
  6,444
  6,842
  7,259
  7,695
  8,152
  8,631
  9,133
  9,658
Earnings before tax, $m
  -2,155
  -2,331
  -2,514
  -2,704
  -2,902
  -3,108
  -3,322
  -3,544
  -3,775
  -4,015
  -3,211
  -3,472
  -3,743
  -4,026
  -4,321
  -4,628
  -4,949
  -5,284
  -5,635
  -6,001
  -6,383
  -6,783
  -7,202
  -7,640
  -8,099
  -8,579
  -9,082
  -9,609
  -10,161
  -10,740
Tax expense, $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
Net income, $m
  -2,155
  -2,331
  -2,514
  -2,704
  -2,902
  -3,108
  -3,322
  -3,544
  -3,775
  -4,015
  -3,211
  -3,472
  -3,743
  -4,026
  -4,321
  -4,628
  -4,949
  -5,284
  -5,635
  -6,001
  -6,383
  -6,783
  -7,202
  -7,640
  -8,099
  -8,579
  -9,082
  -9,609
  -10,161
  -10,740

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
  53,828
  58,118
  62,577
  67,212
  72,027
  77,032
  82,235
  87,645
  93,272
  99,128
  105,225
  111,576
  118,195
  125,096
  132,295
  139,809
  147,654
  155,849
  164,414
  173,367
  182,731
  192,527
  202,779
  213,512
  224,749
  236,519
  248,849
  261,769
  275,310
  289,503
Adjusted assets (=assets-cash), $m
  53,828
  58,118
  62,577
  67,212
  72,027
  77,032
  82,235
  87,645
  93,272
  99,128
  105,225
  111,576
  118,195
  125,096
  132,295
  139,809
  147,654
  155,849
  164,414
  173,367
  182,731
  192,527
  202,779
  213,512
  224,749
  236,519
  248,849
  261,769
  275,310
  289,503
Revenue / Adjusted assets
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
  0.891
Average production assets, $m
  17,793
  19,212
  20,686
  22,218
  23,809
  25,464
  27,184
  28,972
  30,832
  32,768
  34,783
  36,883
  39,071
  41,352
  43,732
  46,215
  48,809
  51,518
  54,349
  57,308
  60,404
  63,642
  67,031
  70,579
  74,293
  78,184
  82,260
  86,531
  91,007
  95,698
Working capital, $m
  -2,830
  -3,055
  -3,290
  -3,533
  -3,786
  -4,050
  -4,323
  -4,607
  -4,903
  -5,211
  -5,532
  -5,865
  -6,213
  -6,576
  -6,955
  -7,350
  -7,762
  -8,193
  -8,643
  -9,114
  -9,606
  -10,121
  -10,660
  -11,224
  -11,815
  -12,434
  -13,082
  -13,761
  -14,473
  -15,219
Total debt, $m
  19,614
  22,699
  25,905
  29,237
  32,700
  36,298
  40,039
  43,929
  47,975
  52,185
  56,569
  61,135
  65,894
  70,856
  76,032
  81,434
  87,075
  92,968
  99,125
  105,563
  112,296
  119,339
  126,711
  134,427
  142,507
  150,969
  159,835
  169,124
  178,860
  189,065
Total liabilities, $m
  38,702
  41,787
  44,993
  48,325
  51,788
  55,386
  59,127
  63,016
  67,062
  71,273
  75,657
  80,223
  84,982
  89,944
  95,120
  100,522
  106,163
  112,056
  118,213
  124,651
  131,384
  138,427
  145,798
  153,515
  161,595
  170,057
  178,923
  188,212
  197,948
  208,153
Total equity, $m
  15,126
  16,331
  17,584
  18,886
  20,240
  21,646
  23,108
  24,628
  26,209
  27,855
  29,568
  31,353
  33,213
  35,152
  37,175
  39,286
  41,491
  43,794
  46,200
  48,716
  51,347
  54,100
  56,981
  59,997
  63,155
  66,462
  69,927
  73,557
  77,362
  81,350
Total liabilities and equity, $m
  53,828
  58,118
  62,577
  67,211
  72,028
  77,032
  82,235
  87,644
  93,271
  99,128
  105,225
  111,576
  118,195
  125,096
  132,295
  139,808
  147,654
  155,850
  164,413
  173,367
  182,731
  192,527
  202,779
  213,512
  224,750
  236,519
  248,850
  261,769
  275,310
  289,503
Debt-to-equity ratio
  1.300
  1.390
  1.470
  1.550
  1.620
  1.680
  1.730
  1.780
  1.830
  1.870
  1.910
  1.950
  1.980
  2.020
  2.050
  2.070
  2.100
  2.120
  2.150
  2.170
  2.190
  2.210
  2.220
  2.240
  2.260
  2.270
  2.290
  2.300
  2.310
  2.320
Adjusted equity ratio
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,155
  -2,331
  -2,514
  -2,704
  -2,902
  -3,108
  -3,322
  -3,544
  -3,775
  -4,015
  -3,211
  -3,472
  -3,743
  -4,026
  -4,321
  -4,628
  -4,949
  -5,284
  -5,635
  -6,001
  -6,383
  -6,783
  -7,202
  -7,640
  -8,099
  -8,579
  -9,082
  -9,609
  -10,161
  -10,740
Depreciation, amort., depletion, $m
  3,750
  3,965
  4,188
  4,421
  4,662
  4,912
  5,173
  5,444
  5,726
  6,019
  5,270
  5,588
  5,920
  6,265
  6,626
  7,002
  7,395
  7,806
  8,235
  8,683
  9,152
  9,643
  10,156
  10,694
  11,257
  11,846
  12,464
  13,111
  13,789
  14,500
Funds from operations, $m
  1,595
  1,635
  1,675
  1,716
  1,760
  1,805
  1,851
  1,900
  1,951
  2,004
  2,059
  2,117
  2,177
  2,240
  2,305
  2,374
  2,446
  2,521
  2,600
  2,683
  2,769
  2,859
  2,954
  3,054
  3,158
  3,267
  3,381
  3,502
  3,628
  3,760
Change in working capital, $m
  -217
  -226
  -234
  -244
  -253
  -263
  -273
  -284
  -296
  -308
  -321
  -334
  -348
  -363
  -378
  -395
  -412
  -431
  -450
  -471
  -492
  -515
  -539
  -564
  -591
  -619
  -648
  -679
  -712
  -746
Cash from operations, $m
  1,812
  1,860
  1,909
  1,960
  2,013
  2,068
  2,125
  2,184
  2,247
  2,312
  2,380
  2,451
  2,525
  2,603
  2,684
  2,769
  2,859
  2,952
  3,050
  3,153
  3,261
  3,374
  3,493
  3,618
  3,749
  3,886
  4,030
  4,181
  4,339
  4,506
Maintenance CAPEX, $m
  -2,486
  -2,696
  -2,911
  -3,134
  -3,366
  -3,607
  -3,858
  -4,119
  -4,390
  -4,672
  -4,965
  -5,270
  -5,588
  -5,920
  -6,265
  -6,626
  -7,002
  -7,395
  -7,806
  -8,235
  -8,683
  -9,152
  -9,643
  -10,156
  -10,694
  -11,257
  -11,846
  -12,464
  -13,111
  -13,789
New CAPEX, $m
  -1,385
  -1,418
  -1,474
  -1,532
  -1,592
  -1,654
  -1,720
  -1,788
  -1,860
  -1,936
  -2,015
  -2,099
  -2,188
  -2,281
  -2,380
  -2,484
  -2,593
  -2,709
  -2,831
  -2,960
  -3,095
  -3,238
  -3,389
  -3,548
  -3,715
  -3,891
  -4,076
  -4,271
  -4,476
  -4,692
Cash from investing activities, $m
  -3,871
  -4,114
  -4,385
  -4,666
  -4,958
  -5,261
  -5,578
  -5,907
  -6,250
  -6,608
  -6,980
  -7,369
  -7,776
  -8,201
  -8,645
  -9,110
  -9,595
  -10,104
  -10,637
  -11,195
  -11,778
  -12,390
  -13,032
  -13,704
  -14,409
  -15,148
  -15,922
  -16,735
  -17,587
  -18,481
Free cash flow, $m
  -2,060
  -2,254
  -2,476
  -2,706
  -2,945
  -3,194
  -3,453
  -3,722
  -4,003
  -4,296
  -4,601
  -4,919
  -5,251
  -5,598
  -5,961
  -6,341
  -6,737
  -7,152
  -7,586
  -8,041
  -8,517
  -9,016
  -9,538
  -10,086
  -10,660
  -11,262
  -11,892
  -12,554
  -13,247
  -13,975
Issuance/(repayment) of debt, $m
  2,952
  3,085
  3,206
  3,332
  3,463
  3,599
  3,741
  3,890
  4,046
  4,211
  4,384
  4,566
  4,759
  4,962
  5,176
  5,402
  5,641
  5,892
  6,158
  6,438
  6,733
  7,044
  7,371
  7,716
  8,080
  8,463
  8,865
  9,289
  9,736
  10,205
Issuance/(repurchase) of shares, $m
  3,324
  3,536
  3,767
  4,007
  4,255
  4,514
  4,784
  5,064
  5,356
  5,661
  4,924
  5,256
  5,603
  5,965
  6,343
  6,739
  7,154
  7,587
  8,041
  8,516
  9,014
  9,536
  10,083
  10,656
  11,257
  11,886
  12,547
  13,240
  13,966
  14,728
Cash from financing (excl. dividends), $m  
  6,276
  6,621
  6,973
  7,339
  7,718
  8,113
  8,525
  8,954
  9,402
  9,872
  9,308
  9,822
  10,362
  10,927
  11,519
  12,141
  12,795
  13,479
  14,199
  14,954
  15,747
  16,580
  17,454
  18,372
  19,337
  20,349
  21,412
  22,529
  23,702
  24,933
Total cash flow (excl. dividends), $m
  4,216
  4,367
  4,497
  4,632
  4,773
  4,919
  5,071
  5,231
  5,399
  5,576
  4,707
  4,904
  5,110
  5,328
  5,558
  5,801
  6,057
  6,328
  6,613
  6,913
  7,230
  7,564
  7,916
  8,286
  8,676
  9,087
  9,520
  9,975
  10,455
  10,959
Retained Cash Flow (-), $m
  -3,324
  -3,536
  -3,767
  -4,007
  -4,255
  -4,514
  -4,784
  -5,064
  -5,356
  -5,661
  -4,924
  -5,256
  -5,603
  -5,965
  -6,343
  -6,739
  -7,154
  -7,587
  -8,041
  -8,516
  -9,014
  -9,536
  -10,083
  -10,656
  -11,257
  -11,886
  -12,547
  -13,240
  -13,966
  -14,728
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
  892
  831
  730
  626
  517
  404
  288
  167
  43
  -85
  -217
  -353
  -493
  -637
  -785
  -938
  -1,096
  -1,260
  -1,429
  -1,603
  -1,785
  -1,972
  -2,167
  -2,370
  -2,580
  -2,799
  -3,027
  -3,264
  -3,512
  -3,770
Discount rate, %
  4.50
  4.73
  4.96
  5.21
  5.47
  5.74
  6.03
  6.33
  6.65
  6.98
  7.33
  7.70
  8.08
  8.49
  8.91
  9.36
  9.82
  10.31
  10.83
  11.37
  11.94
  12.54
  13.16
  13.82
  14.51
  15.24
  16.00
  16.80
  17.64
  18.52
PV of cash for distribution, $m
  854
  757
  632
  511
  396
  289
  191
  102
  24
  -43
  -100
  -145
  -179
  -204
  -218
  -224
  -223
  -215
  -203
  -186
  -167
  -147
  -126
  -106
  -87
  -70
  -55
  -42
  -32
  -23
Current shareholders' claim on cash, %
  74.6
  55.9
  42.1
  31.7
  24.0
  18.2
  13.8
  10.5
  8.0
  6.1
  4.9
  3.9
  3.1
  2.5
  2.0
  1.6
  1.2
  1.0
  0.8
  0.6
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1

Tata Motors Limited is an automobile company. The Company is engaged in manufacture of motor vehicles. The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's segments include automotive operations and all other operations. The Company's automotive segment operations include all activities relating to the development, design, manufacture, assembly and sale of vehicles, including vehicle financing, as well as sale of related parts and accessories. In the automotive segment, the Company manufactures and sells passenger cars, utility vehicles, light commercial vehicles, and medium and heavy commercial vehicles. The Company's all other operations segment mainly includes information technology (IT) services, and machine tools and factory automation services. The Company operates in over 160 countries across the world.

FINANCIAL RATIOS  of  Tata Motors ADR (TTM)

Valuation Ratios
P/E Ratio 7
Price to Sales 0.2
Price to Book 0.8
Price to Tangible Book
Price to Cash Flow 1.4
Price to Free Cash Flow -122.9
Growth Rates
Sales Growth Rate -1.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -1.6%
Cap. Spend. - 3 Yr. Gr. Rate 3.4%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 113.8%
Total Debt to Equity 153%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 5.6%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 6.9%
Return On Equity 9.4%
Return On Equity - 3 Yr. Avg. 15.4%
Asset Turnover 1
Profitability Ratios
Gross Margin 36.2%
Gross Margin - 3 Yr. Avg. 37.4%
EBITDA Margin 12.5%
EBITDA Margin - 3 Yr. Avg. 13.5%
Operating Margin 5%
Oper. Margin - 3 Yr. Avg. 7.5%
Pre-Tax Margin 3.7%
Pre-Tax Margin - 3 Yr. Avg. 5.3%
Net Profit Margin 2.3%
Net Profit Margin - 3 Yr. Avg. 3.6%
Effective Tax Rate 36.4%
Eff/ Tax Rate - 3 Yr. Avg. 31.1%
Payout Ratio 1.2%

TTM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TTM stock intrinsic value calculation we used $44284.9631336 million for the last fiscal year's total revenue generated by Tata Motors ADR. The default revenue input number comes from 0001 income statement of Tata Motors 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 TTM stock valuation model: a) initial revenue growth rate of 8.3% 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 4.5%, whose default value for TTM is calculated based on our internal credit rating of Tata Motors 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 Tata Motors 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 TTM stock the variable cost ratio is equal to 102.8%.

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 TTM 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 Tata Motors ADR.

Corporate tax rate of 27% is the nominal tax rate for Tata Motors 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 TTM 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 TTM are equal to 37.1%.

Life of production assets of 6.6 years is the average useful life of capital assets used in Tata Motors 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 TTM is equal to -5.9%. 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 - $13956.8325653 million for Tata Motors 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 79.062 million for Tata Motors 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 Tata Motors ADR at the current share price and the inputted number of shares is $1.0 billion.

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