Intrinsic value of Unilever ADR - UL

Previous Close

$53.87

  Intrinsic Value

$8,452

stock screener

  Rating & Target

str. buy

+999%

Previous close

$53.87

 
Intrinsic value

$8,452

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of UL 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 7.1

 

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, %
  16.20
  15.08
  14.07
  13.16
  12.35
  11.61
  10.95
  10.36
  9.82
  9.34
  8.91
  8.51
  8.16
  7.85
  7.56
  7.31
  7.08
  6.87
  6.68
  6.51
  6.36
  6.23
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.59
  5.53
Revenue, $m
  74,930
  86,230
  98,364
  111,313
  125,059
  139,582
  154,870
  170,909
  187,695
  205,224
  223,499
  242,529
  262,328
  282,912
  304,307
  326,539
  349,643
  373,656
  398,620
  424,582
  451,593
  479,706
  508,983
  539,484
  571,278
  604,435
  639,031
  675,144
  712,859
  752,263
Variable operating expenses, $m
  -1,451
  -2,185
  -2,972
  -3,812
  -4,704
  -5,646
  -6,637
  -7,678
  -8,767
  -9,904
  -14,499
  -15,734
  -17,018
  -18,354
  -19,741
  -21,184
  -22,683
  -24,240
  -25,860
  -27,544
  -29,296
  -31,120
  -33,019
  -34,998
  -37,061
  -39,212
  -41,456
  -43,799
  -46,246
  -48,802
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
  -1,451
  -2,185
  -2,972
  -3,812
  -4,704
  -5,646
  -6,637
  -7,678
  -8,767
  -9,904
  -14,499
  -15,734
  -17,018
  -18,354
  -19,741
  -21,184
  -22,683
  -24,240
  -25,860
  -27,544
  -29,296
  -31,120
  -33,019
  -34,998
  -37,061
  -39,212
  -41,456
  -43,799
  -46,246
  -48,802
Operating income, $m
  76,382
  88,414
  101,336
  115,125
  129,762
  145,228
  161,507
  178,587
  196,462
  215,128
  237,998
  258,263
  279,346
  301,266
  324,048
  347,723
  372,326
  397,896
  424,480
  452,126
  480,889
  510,827
  542,002
  574,482
  608,339
  643,647
  680,487
  718,943
  759,105
  801,064
EBITDA, $m
  81,164
  93,403
  106,547
  120,574
  135,463
  151,195
  167,754
  185,128
  203,309
  222,297
  242,093
  262,706
  284,151
  306,448
  329,623
  353,705
  378,731
  404,741
  431,783
  459,904
  489,162
  519,615
  551,326
  584,365
  618,804
  654,720
  692,194
  731,312
  772,164
  814,845
Interest expense (income), $m
  498
  2,170
  2,842
  3,569
  4,349
  5,181
  6,065
  6,998
  7,981
  9,012
  10,091
  11,218
  12,393
  13,616
  14,889
  16,212
  17,587
  19,016
  20,502
  22,045
  23,650
  25,319
  27,055
  28,862
  30,744
  32,705
  34,749
  36,880
  39,104
  41,426
  43,850
Earnings before tax, $m
  74,211
  85,572
  97,767
  110,776
  124,581
  139,163
  154,509
  170,606
  187,449
  205,037
  226,780
  245,870
  265,730
  286,377
  307,836
  330,136
  353,309
  377,395
  402,435
  428,476
  455,570
  483,771
  513,140
  543,738
  575,634
  608,898
  643,607
  679,839
  717,679
  757,214
Tax expense, $m
  20,037
  23,104
  26,397
  29,910
  33,637
  37,574
  41,717
  46,064
  50,611
  55,360
  61,231
  66,385
  71,747
  77,322
  83,116
  89,137
  95,393
  101,897
  108,657
  115,689
  123,004
  130,618
  138,548
  146,809
  155,421
  164,403
  173,774
  183,557
  193,773
  204,448
Net income, $m
  54,174
  62,467
  71,370
  80,867
  90,944
  101,589
  112,791
  124,543
  136,838
  149,677
  165,550
  179,485
  193,983
  209,055
  224,720
  240,999
  257,916
  275,498
  293,777
  312,788
  332,566
  353,153
  374,592
  396,929
  420,213
  444,496
  469,833
  496,283
  523,906
  552,766

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
  84,097
  96,778
  110,397
  124,931
  140,358
  156,658
  173,815
  191,817
  210,656
  230,330
  250,841
  272,199
  294,419
  317,522
  341,534
  366,486
  392,416
  419,367
  447,385
  476,523
  506,838
  538,391
  571,249
  605,482
  641,165
  678,379
  717,207
  757,738
  800,066
  844,290
Adjusted assets (=assets-cash), $m
  84,097
  96,778
  110,397
  124,931
  140,358
  156,658
  173,815
  191,817
  210,656
  230,330
  250,841
  272,199
  294,419
  317,522
  341,534
  366,486
  392,416
  419,367
  447,385
  476,523
  506,838
  538,391
  571,249
  605,482
  641,165
  678,379
  717,207
  757,738
  800,066
  844,290
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
  32,670
  37,596
  42,887
  48,533
  54,526
  60,858
  67,523
  74,516
  81,835
  89,478
  97,446
  105,743
  114,375
  123,350
  132,678
  142,371
  152,444
  162,914
  173,798
  185,118
  196,894
  209,152
  221,916
  235,215
  249,077
  263,534
  278,618
  294,363
  310,807
  327,986
Working capital, $m
  -3,222
  -3,708
  -4,230
  -4,786
  -5,378
  -6,002
  -6,659
  -7,349
  -8,071
  -8,825
  -9,610
  -10,429
  -11,280
  -12,165
  -13,085
  -14,041
  -15,035
  -16,067
  -17,141
  -18,257
  -19,418
  -20,627
  -21,886
  -23,198
  -24,565
  -25,991
  -27,478
  -29,031
  -30,653
  -32,347
Total debt, $m
  38,409
  48,225
  58,766
  70,015
  81,955
  94,571
  107,851
  121,785
  136,366
  151,593
  167,469
  184,000
  201,199
  219,080
  237,665
  256,978
  277,048
  297,908
  319,594
  342,147
  365,611
  390,033
  415,465
  441,961
  469,580
  498,383
  528,436
  559,807
  592,569
  626,799
Total liabilities, $m
  65,091
  74,907
  85,447
  96,696
  108,637
  121,253
  134,533
  148,467
  163,048
  178,275
  194,151
  210,682
  227,881
  245,762
  264,347
  283,660
  303,730
  324,590
  346,276
  368,829
  392,293
  416,715
  442,147
  468,643
  496,262
  525,065
  555,118
  586,489
  619,251
  653,481
Total equity, $m
  19,006
  21,872
  24,950
  28,234
  31,721
  35,405
  39,282
  43,351
  47,608
  52,054
  56,690
  61,517
  66,539
  71,760
  77,187
  82,826
  88,686
  94,777
  101,109
  107,694
  114,545
  121,676
  129,102
  136,839
  144,903
  153,314
  162,089
  171,249
  180,815
  190,810
Total liabilities and equity, $m
  84,097
  96,779
  110,397
  124,930
  140,358
  156,658
  173,815
  191,818
  210,656
  230,329
  250,841
  272,199
  294,420
  317,522
  341,534
  366,486
  392,416
  419,367
  447,385
  476,523
  506,838
  538,391
  571,249
  605,482
  641,165
  678,379
  717,207
  757,738
  800,066
  844,291
Debt-to-equity ratio
  2.020
  2.200
  2.360
  2.480
  2.580
  2.670
  2.750
  2.810
  2.860
  2.910
  2.950
  2.990
  3.020
  3.050
  3.080
  3.100
  3.120
  3.140
  3.160
  3.180
  3.190
  3.210
  3.220
  3.230
  3.240
  3.250
  3.260
  3.270
  3.280
  3.280
Adjusted equity ratio
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226
  0.226

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  54,174
  62,467
  71,370
  80,867
  90,944
  101,589
  112,791
  124,543
  136,838
  149,677
  165,550
  179,485
  193,983
  209,055
  224,720
  240,999
  257,916
  275,498
  293,777
  312,788
  332,566
  353,153
  374,592
  396,929
  420,213
  444,496
  469,833
  496,283
  523,906
  552,766
Depreciation, amort., depletion, $m
  4,782
  4,989
  5,211
  5,449
  5,700
  5,967
  6,247
  6,540
  6,848
  7,169
  4,094
  4,443
  4,806
  5,183
  5,575
  5,982
  6,405
  6,845
  7,302
  7,778
  8,273
  8,788
  9,324
  9,883
  10,465
  11,073
  11,707
  12,368
  13,059
  13,781
Funds from operations, $m
  58,956
  67,457
  76,581
  86,315
  96,645
  107,556
  119,038
  131,083
  143,686
  156,846
  169,644
  183,928
  198,788
  214,238
  230,295
  246,981
  264,321
  282,343
  301,080
  320,566
  340,839
  361,941
  383,916
  406,812
  430,678
  455,569
  481,540
  508,651
  536,965
  566,547
Change in working capital, $m
  -449
  -486
  -522
  -557
  -591
  -625
  -657
  -690
  -722
  -754
  -786
  -818
  -851
  -885
  -920
  -956
  -993
  -1,033
  -1,073
  -1,116
  -1,161
  -1,209
  -1,259
  -1,312
  -1,367
  -1,426
  -1,488
  -1,553
  -1,622
  -1,694
Cash from operations, $m
  59,406
  67,943
  77,103
  86,872
  97,236
  108,180
  119,695
  131,773
  144,408
  157,600
  170,430
  184,747
  199,640
  215,123
  231,215
  247,937
  265,314
  283,376
  302,153
  321,682
  342,000
  363,150
  385,175
  408,123
  432,045
  456,994
  483,027
  510,204
  538,586
  568,242
Maintenance CAPEX, $m
  -1,182
  -1,373
  -1,580
  -1,802
  -2,039
  -2,291
  -2,557
  -2,837
  -3,131
  -3,438
  -3,760
  -4,094
  -4,443
  -4,806
  -5,183
  -5,575
  -5,982
  -6,405
  -6,845
  -7,302
  -7,778
  -8,273
  -8,788
  -9,324
  -9,883
  -10,465
  -11,073
  -11,707
  -12,368
  -13,059
New CAPEX, $m
  -4,534
  -4,927
  -5,291
  -5,646
  -5,993
  -6,332
  -6,665
  -6,993
  -7,318
  -7,643
  -7,968
  -8,297
  -8,632
  -8,975
  -9,328
  -9,693
  -10,073
  -10,470
  -10,884
  -11,319
  -11,777
  -12,258
  -12,764
  -13,299
  -13,862
  -14,457
  -15,084
  -15,745
  -16,444
  -17,180
Cash from investing activities, $m
  -5,716
  -6,300
  -6,871
  -7,448
  -8,032
  -8,623
  -9,222
  -9,830
  -10,449
  -11,081
  -11,728
  -12,391
  -13,075
  -13,781
  -14,511
  -15,268
  -16,055
  -16,875
  -17,729
  -18,621
  -19,555
  -20,531
  -21,552
  -22,623
  -23,745
  -24,922
  -26,157
  -27,452
  -28,812
  -30,239
Free cash flow, $m
  53,690
  61,643
  70,233
  79,424
  89,204
  99,557
  110,473
  121,942
  133,958
  146,518
  158,702
  172,355
  186,565
  201,343
  216,704
  232,669
  249,259
  266,501
  284,424
  303,060
  322,446
  342,619
  363,623
  385,500
  408,300
  432,072
  456,871
  482,752
  509,775
  538,003
Issuance/(repayment) of debt, $m
  9,081
  9,816
  10,541
  11,249
  11,940
  12,617
  13,280
  13,933
  14,581
  15,227
  15,876
  16,531
  17,198
  17,882
  18,585
  19,313
  20,070
  20,860
  21,686
  22,553
  23,464
  24,422
  25,432
  26,496
  27,619
  28,803
  30,053
  31,371
  32,762
  34,229
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  
  9,081
  9,816
  10,541
  11,249
  11,940
  12,617
  13,280
  13,933
  14,581
  15,227
  15,876
  16,531
  17,198
  17,882
  18,585
  19,313
  20,070
  20,860
  21,686
  22,553
  23,464
  24,422
  25,432
  26,496
  27,619
  28,803
  30,053
  31,371
  32,762
  34,229
Total cash flow (excl. dividends), $m
  62,771
  71,459
  80,774
  90,673
  101,144
  112,173
  123,753
  135,876
  148,540
  161,746
  174,578
  188,886
  203,763
  219,224
  235,289
  251,982
  269,329
  287,361
  306,110
  325,613
  345,910
  367,042
  389,055
  411,997
  435,919
  460,876
  486,923
  514,123
  542,537
  572,232
Retained Cash Flow (-), $m
  -2,645
  -2,866
  -3,078
  -3,285
  -3,486
  -3,684
  -3,878
  -4,068
  -4,258
  -4,446
  -4,636
  -4,827
  -5,022
  -5,221
  -5,427
  -5,639
  -5,860
  -6,091
  -6,332
  -6,585
  -6,851
  -7,131
  -7,426
  -7,737
  -8,064
  -8,410
  -8,775
  -9,160
  -9,566
  -9,995
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
  60,126
  68,593
  77,696
  87,389
  97,657
  108,490
  119,875
  131,807
  144,282
  157,299
  169,942
  184,060
  198,741
  214,003
  229,863
  246,343
  263,469
  281,270
  299,778
  319,028
  339,058
  359,911
  381,629
  404,260
  427,855
  452,465
  478,148
  504,963
  532,971
  562,237
Discount rate, %
  6.00
  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
PV of cash for distribution, $m
  56,723
  60,703
  64,113
  66,804
  68,683
  69,682
  69,762
  68,919
  67,178
  64,597
  60,931
  56,996
  52,546
  47,723
  42,678
  37,561
  32,512
  27,660
  23,112
  18,953
  15,239
  12,005
  9,255
  6,977
  5,137
  3,690
  2,582
  1,759
  1,165
  749
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

Unilever PLC is a fast-moving consumer goods (FMCG) company. The Company's segments include Personal Care, which primarily includes sales of skin care and hair care products, deodorants and oral care products; Foods, which primarily includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Home Care, which primarily includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products, and Refreshment, which primarily includes sales of ice cream and tea-based beverages. The Company's geographical segments include Asia/AMET/RUB, The Americas and Europe. Its brands include Axe, Dirt is Good (Omo), Dove, Family Goodness (Rama), Heartbrand (Wall's), Hellmann's, Knorr, Lipton, Lux, Magnum, Rexona, Sunsilk and Surf. The Company operates in more than 100 countries, selling its products in more than 190 countries. The Company operates approximately 310 factories in over 70 countries.

FINANCIAL RATIOS  of  Unilever ADR (UL)

Valuation Ratios
P/E Ratio 28
Price to Sales 2.7
Price to Book 8.9
Price to Tangible Book
Price to Cash Flow 20.6
Price to Free Cash Flow 28.9
Growth Rates
Sales Growth Rate -1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -7.5%
Cap. Spend. - 3 Yr. Gr. Rate -1.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 68.1%
Total Debt to Equity 100.3%
Interest Coverage 17
Management Effectiveness
Return On Assets 10.2%
Ret/ On Assets - 3 Yr. Avg. 10.9%
Return On Total Capital 16.5%
Ret/ On T. Cap. - 3 Yr. Avg. 18%
Return On Equity 32.6%
Return On Equity - 3 Yr. Avg. 34.4%
Asset Turnover 1
Profitability Ratios
Gross Margin 48.8%
Gross Margin - 3 Yr. Avg. 46.2%
EBITDA Margin 17.8%
EBITDA Margin - 3 Yr. Avg. 18.3%
Operating Margin 14.8%
Oper. Margin - 3 Yr. Avg. 15.1%
Pre-Tax Margin 14.2%
Pre-Tax Margin - 3 Yr. Avg. 14.5%
Net Profit Margin 9.8%
Net Profit Margin - 3 Yr. Avg. 9.9%
Effective Tax Rate 25.7%
Eff/ Tax Rate - 3 Yr. Avg. 26.9%
Payout Ratio 69.6%

UL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the UL stock intrinsic value calculation we used $64483.7935174 million for the last fiscal year's total revenue generated by Unilever ADR. The default revenue input number comes from 0001 income statement of Unilever 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 UL stock valuation model: a) initial revenue growth rate of 16.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6%, whose default value for UL is calculated based on our internal credit rating of Unilever 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 Unilever 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 UL stock the variable cost ratio is equal to -1.2%.

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 UL 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 7.4% for Unilever ADR.

Corporate tax rate of 27% is the nominal tax rate for Unilever 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 UL 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 UL are equal to 43.6%.

Life of production assets of 23.8 years is the average useful life of capital assets used in Unilever 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 UL is equal to -4.3%. 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 - $16361.3445378 million for Unilever 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 132.209 million for Unilever 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 Unilever ADR at the current share price and the inputted number of shares is $7.1 billion.

RELATED COMPANIES Price Int.Val. Rating
CL Colgate-Palmol 62.47 35.42  sell
UN Unilever ADR 55.05 6,120.85  str.buy
PG Procter&Gamble 93.49 86.63  hold
GIS General Mills 45.30 50.62  hold

COMPANY NEWS

▶ New Strong Sell Stocks for November 9th   [Nov-09-18 08:03AM  Zacks]
▶ [$$] Vice Media to Shrink Workforce by as Much as 15% as Growth Stalls   [Nov-07-18 08:43PM  The Wall Street Journal]
▶ Top 6 Companies Owned by Starbucks (SBUX)   [Nov-01-18 02:23PM  Investopedia]
▶ [$$] Inflation Is Backand Unilever, Nestlé Are Taking Advantage   [Oct-18-18 08:39PM  The Wall Street Journal]
▶ Inflation Is Backand Unilever, Nestlé Are Taking Advantage   [02:26PM  The Wall Street Journal]
▶ Harry's launches 'Flamingo' brand for women's grooming needs   [Oct-16-18 11:14AM  American City Business Journals]
▶ 3 Personal Products Stocks to Buy as the Market Dips   [Oct-11-18 03:19PM  InvestorPlace]
▶ Kirsten Green's Forerunner Ventures raises $350 million   [Oct-08-18 06:02PM  American City Business Journals]
▶ [$$] Unilever Drops Plan to Leave London Amid Shareholder Revolt   [Oct-05-18 07:43PM  The Wall Street Journal]
▶ Unemployment falls to 49-year low   [08:56AM  Yahoo Finance]
▶ [$$] Unilever: Dutch dis-courage   [08:29AM  Financial Times]
▶ [$$] Unilever Scraps Relocation Plan   [02:31AM  The Wall Street Journal]
▶ [$$] To Reach Chinese Consumers, Brands Market in Australia   [Oct-03-18 07:47PM  The Wall Street Journal]
▶ [$$] How to Reach Chinese Consumers? Market in Australia   [05:30AM  The Wall Street Journal]
▶ [$$] Pension fund adviser rejects Unilevers Dutch switch   [Oct-02-18 11:22PM  Financial Times]
▶ High-tech recruitment startup Pymetrics raises $40 million   [Sep-27-18 01:15PM  American City Business Journals]
▶ [$$] Sense and flexibility could keep Unilever in the FTSE 100   [Sep-20-18 08:14AM  Financial Times]
▶ Better Buy: Procter & Gamble vs. Unilever   [Sep-14-18 04:00PM  Motley Fool]
▶ [$$] FTSE 100 Sets Unilevers Departure Date   [Sep-12-18 07:42PM  The Wall Street Journal]
▶ [$$] FTSE 100 Sets Unilever's Departure Date   [05:31PM  The Wall Street Journal]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.