Intrinsic value of Unilever ADR - UN

Previous Close

$56.06

  Intrinsic Value

$385.96

stock screener

  Rating & Target

str. buy

+588%

Previous close

$56.06

 
Intrinsic value

$385.96

 
Up/down potential

+588%

 
Rating

str. buy

We calculate the intrinsic value of UN 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 2017), $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 169.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

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
  111,314
  125,059
  139,583
  154,870
  170,910
  187,695
  205,224
  223,500
  242,530
  262,328
  282,913
  304,308
  326,540
  349,644
  373,657
  398,621
  424,583
  451,594
  479,708
  508,984
  539,486
  571,280
  604,437
  639,033
  675,147
  712,861
  752,265
Variable operating expenses, $m
  -1,452
  -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
  -19,742
  -21,184
  -22,683
  -24,240
  -25,860
  -27,544
  -29,297
  -31,120
  -33,020
  -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
  -1,452
  -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
  -19,742
  -21,184
  -22,683
  -24,240
  -25,860
  -27,544
  -29,297
  -31,120
  -33,020
  -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
  129,763
  145,228
  161,507
  178,588
  196,462
  215,128
  237,999
  258,264
  279,347
  301,267
  324,049
  347,724
  372,327
  397,898
  424,481
  452,128
  480,891
  510,828
  542,004
  574,484
  608,341
  643,649
  680,489
  718,946
  759,107
  801,067
EBITDA, $m
  84,887
  97,688
  111,434
  126,104
  141,676
  158,130
  175,448
  193,619
  212,635
  232,493
  253,197
  274,756
  297,185
  320,505
  344,742
  369,929
  396,103
  423,306
  451,588
  480,999
  511,599
  543,448
  576,615
  611,169
  647,188
  684,751
  723,944
  764,856
  807,582
  852,221
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
  28,863
  30,744
  32,705
  34,749
  36,880
  39,104
  41,426
  43,850
Earnings before tax, $m
  74,212
  85,572
  97,767
  110,777
  124,581
  139,164
  154,509
  170,607
  187,450
  205,037
  226,781
  245,871
  265,731
  286,378
  307,837
  330,137
  353,310
  377,396
  402,436
  428,478
  455,572
  483,773
  513,141
  543,740
  575,636
  608,900
  643,609
  679,841
  717,681
  757,217
Tax expense, $m
  20,037
  23,104
  26,397
  29,910
  33,637
  37,574
  41,717
  46,064
  50,612
  55,360
  61,231
  66,385
  71,747
  77,322
  83,116
  89,137
  95,394
  101,897
  108,658
  115,689
  123,004
  130,619
  138,548
  146,810
  155,422
  164,403
  173,774
  183,557
  193,774
  204,449
Net income, $m
  54,175
  62,468
  71,370
  80,867
  90,944
  101,590
  112,792
  124,543
  136,839
  149,677
  165,550
  179,486
  193,983
  209,056
  224,721
  241,000
  257,917
  275,499
  293,778
  312,789
  332,567
  353,154
  374,593
  396,930
  420,214
  444,497
  469,835
  496,284
  523,907
  552,768

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
  96,779
  110,398
  124,931
  140,358
  156,658
  173,816
  191,818
  210,657
  230,330
  250,842
  272,200
  294,420
  317,523
  341,535
  366,487
  392,418
  419,368
  447,387
  476,525
  506,840
  538,393
  571,251
  605,484
  641,167
  678,381
  717,209
  757,740
  800,069
  844,293
Adjusted assets (=assets-cash), $m
  84,097
  96,779
  110,398
  124,931
  140,358
  156,658
  173,816
  191,818
  210,657
  230,330
  250,842
  272,200
  294,420
  317,523
  341,535
  366,487
  392,418
  419,368
  447,387
  476,525
  506,840
  538,393
  571,251
  605,484
  641,167
  678,381
  717,209
  757,740
  800,069
  844,293
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
  50,953
  58,636
  66,888
  75,693
  85,040
  94,916
  105,312
  116,219
  127,633
  139,553
  151,980
  164,921
  178,383
  192,381
  206,929
  222,047
  237,758
  254,087
  271,063
  288,717
  307,084
  326,201
  346,109
  366,850
  388,470
  411,017
  434,542
  459,100
  484,746
  511,540
Working capital, $m
  -13,188
  -15,176
  -17,312
  -19,591
  -22,010
  -24,567
  -27,257
  -30,080
  -33,034
  -36,119
  -39,336
  -42,685
  -46,170
  -49,793
  -53,558
  -57,471
  -61,537
  -65,764
  -70,157
  -74,727
  -79,481
  -84,429
  -89,581
  -94,950
  -100,545
  -106,381
  -112,470
  -118,826
  -125,464
  -132,399
Total debt, $m
  38,409
  48,225
  58,765
  70,014
  81,955
  94,571
  107,851
  121,785
  136,366
  151,593
  167,469
  184,001
  201,199
  219,081
  237,666
  256,979
  277,049
  297,909
  319,595
  342,148
  365,612
  390,034
  415,466
  441,962
  469,581
  498,384
  528,437
  559,809
  592,571
  626,800
Total liabilities, $m
  65,091
  74,907
  85,448
  96,697
  108,637
  121,254
  134,534
  148,467
  163,048
  178,276
  194,151
  210,683
  227,881
  245,763
  264,348
  283,661
  303,731
  324,591
  346,277
  368,830
  392,294
  416,716
  442,148
  468,644
  496,263
  525,067
  555,120
  586,491
  619,253
  653,483
Total equity, $m
  19,006
  21,872
  24,950
  28,234
  31,721
  35,405
  39,282
  43,351
  47,608
  52,055
  56,690
  61,517
  66,539
  71,760
  77,187
  82,826
  88,686
  94,777
  101,109
  107,695
  114,546
  121,677
  129,103
  136,839
  144,904
  153,314
  162,089
  171,249
  180,816
  190,810
Total liabilities and equity, $m
  84,097
  96,779
  110,398
  124,931
  140,358
  156,659
  173,816
  191,818
  210,656
  230,331
  250,841
  272,200
  294,420
  317,523
  341,535
  366,487
  392,417
  419,368
  447,386
  476,525
  506,840
  538,393
  571,251
  605,483
  641,167
  678,381
  717,209
  757,740
  800,069
  844,293
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
  54,175
  62,468
  71,370
  80,867
  90,944
  101,590
  112,792
  124,543
  136,839
  149,677
  165,550
  179,486
  193,983
  209,056
  224,721
  241,000
  257,917
  275,499
  293,778
  312,789
  332,567
  353,154
  374,593
  396,930
  420,214
  444,497
  469,835
  496,284
  523,907
  552,768
Depreciation, amort., depletion, $m
  8,505
  9,273
  10,098
  10,979
  11,914
  12,901
  13,941
  15,031
  16,173
  17,365
  15,198
  16,492
  17,838
  19,238
  20,693
  22,205
  23,776
  25,409
  27,106
  28,872
  30,708
  32,620
  34,611
  36,685
  38,847
  41,102
  43,454
  45,910
  48,475
  51,154
Funds from operations, $m
  62,679
  71,741
  81,468
  91,846
  102,858
  114,491
  126,732
  139,574
  153,011
  167,042
  180,748
  195,978
  211,822
  228,294
  245,414
  263,205
  281,692
  300,908
  320,885
  341,660
  363,276
  385,775
  409,204
  433,615
  459,061
  485,599
  513,289
  542,194
  572,382
  603,922
Change in working capital, $m
  -1,839
  -1,989
  -2,136
  -2,279
  -2,419
  -2,556
  -2,691
  -2,823
  -2,954
  -3,085
  -3,217
  -3,349
  -3,484
  -3,623
  -3,765
  -3,913
  -4,066
  -4,226
  -4,394
  -4,569
  -4,754
  -4,948
  -5,153
  -5,368
  -5,596
  -5,836
  -6,089
  -6,356
  -6,638
  -6,935
Cash from operations, $m
  64,518
  73,730
  83,604
  94,125
  105,277
  117,047
  129,423
  142,397
  155,966
  170,127
  183,965
  199,327
  215,306
  231,917
  249,179
  267,118
  285,759
  305,134
  325,278
  346,230
  368,030
  390,723
  414,357
  438,983
  464,657
  491,435
  519,378
  548,550
  579,020
  610,857
Maintenance CAPEX, $m
  -4,388
  -5,095
  -5,864
  -6,689
  -7,569
  -8,504
  -9,492
  -10,531
  -11,622
  -12,763
  -13,955
  -15,198
  -16,492
  -17,838
  -19,238
  -20,693
  -22,205
  -23,776
  -25,409
  -27,106
  -28,872
  -30,708
  -32,620
  -34,611
  -36,685
  -38,847
  -41,102
  -43,454
  -45,910
  -48,475
New CAPEX, $m
  -7,074
  -7,684
  -8,251
  -8,806
  -9,347
  -9,876
  -10,395
  -10,907
  -11,414
  -11,920
  -12,427
  -12,941
  -13,463
  -13,998
  -14,548
  -15,118
  -15,711
  -16,329
  -16,976
  -17,654
  -18,367
  -19,117
  -19,908
  -20,741
  -21,620
  -22,547
  -23,525
  -24,557
  -25,646
  -26,794
Cash from investing activities, $m
  -11,462
  -12,779
  -14,115
  -15,495
  -16,916
  -18,380
  -19,887
  -21,438
  -23,036
  -24,683
  -26,382
  -28,139
  -29,955
  -31,836
  -33,786
  -35,811
  -37,916
  -40,105
  -42,385
  -44,760
  -47,239
  -49,825
  -52,528
  -55,352
  -58,305
  -61,394
  -64,627
  -68,011
  -71,556
  -75,269
Free cash flow, $m
  53,056
  60,951
  69,489
  78,631
  88,361
  98,667
  109,536
  120,959
  132,930
  145,444
  157,582
  171,189
  185,351
  200,081
  215,393
  231,306
  247,843
  265,029
  282,894
  301,469
  320,791
  340,897
  361,829
  383,631
  406,352
  430,041
  454,751
  480,539
  507,464
  535,588
Issuance/(repayment) of debt, $m
  9,081
  9,816
  10,541
  11,249
  11,940
  12,617
  13,280
  13,934
  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
  13,934
  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
  62,137
  70,766
  80,030
  89,880
  100,301
  111,283
  122,816
  134,893
  147,511
  160,671
  173,458
  187,720
  202,550
  217,963
  233,978
  250,620
  267,913
  285,889
  304,580
  324,022
  344,254
  365,319
  387,261
  410,128
  433,971
  458,844
  484,804
  511,910
  540,226
  569,818
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
  322
  375
  431
  492
  557
  625
  698
  774
  855
  938
  1,026
  1,117
  1,213
  1,312
  1,415
  1,522
  1,633
  1,748
  1,868
  1,993
  2,123
  2,258
  2,399
  2,545
  2,697
  2,856
  3,022
  3,195
  3,376
  3,564
Cash available for distribution, $m
  59,492
  67,900
  76,952
  86,595
  96,815
  107,599
  118,938
  130,824
  143,253
  156,225
  168,822
  182,893
  197,528
  212,741
  228,552
  244,980
  262,053
  279,798
  298,248
  317,437
  337,403
  358,188
  379,835
  402,391
  425,906
  450,434
  476,029
  502,750
  530,660
  559,823
Discount rate, %
  5.70
  5.99
  6.28
  6.60
  6.93
  7.27
  7.64
  8.02
  8.42
  8.84
  9.28
  9.75
  10.24
  10.75
  11.29
  11.85
  12.44
  13.06
  13.72
  14.40
  15.12
  15.88
  16.67
  17.51
  18.38
  19.30
  20.27
  21.28
  22.34
  23.46
PV of cash for distribution, $m
  56,284
  60,448
  64,094
  67,064
  69,259
  70,603
  71,047
  70,573
  69,194
  66,952
  63,574
  59,895
  55,642
  50,949
  45,962
  40,828
  35,693
  30,688
  25,932
  21,521
  17,526
  13,993
  10,944
  8,376
  6,267
  4,579
  3,263
  2,266
  1,531
  1,005
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 N.V. 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 (UN)

Valuation Ratios
P/E Ratio 29.1
Price to Sales 2.9
Price to Book 9.2
Price to Tangible Book
Price to Cash Flow 21.4
Price to Free Cash Flow 30.1
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%

UN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the UN stock intrinsic value calculation we used $64484 million for the last fiscal year's total revenue generated by Unilever ADR. The default revenue input number comes from 2017 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 UN 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 5.7%, whose default value for UN 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 UN 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 UN 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 UN stock is equal to 0.5%.

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 UN are equal to 68%.

Life of production assets of 10 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 UN is equal to -17.6%. 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 - $16361 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 3025 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 $169.6 billion.

RELATED COMPANIES Price Int.Val. Rating
CL Colgate-Palmol 65.62 32.52  str.sell
PG Procter&Gamble 79.53 67.31  hold
PEP PepsiCo 112.96 101.62  hold
UL Unilever ADR 55.44 385.96  str.buy
KHC Kraft Heinz 62.64 69.53  hold

COMPANY NEWS

▶ Defensive shares keep FTSE aloft   [Jul-20-18 05:32AM  Reuters]
▶ [$$] Price War Eats Into Unilever Profit   [Jul-19-18 08:28PM  The Wall Street Journal]
▶ [$$] Unilever shareholders warn on HQ move to Netherlands   [Jul-12-18 12:00AM  Financial Times]
▶ M&A Deals in Consumer Goods Hit 15-Year High   [Jul-09-18 11:45AM  Investopedia]
▶ [$$] Unilever plc shareholders need to defeat unification plan   [Jun-22-18 12:00AM  Financial Times]
▶ Will Kraft Heinz Buy Pepsico or Mondelez?   [Jun-19-18 07:02PM  TheStreet.com]
▶ JD.com surges, Unilever drops, Chevron on the rise   [Jun-18-18 01:00PM  Yahoo Finance]
▶ Unilever Demands Influencer Marketing Business Clean Up Its Act   [Jun-17-18 06:48PM  The Wall Street Journal]
▶ [$$] Goodbye London: Unilever Set to Lose Its Place in the FTSE 100   [Jun-14-18 08:01PM  The Wall Street Journal]
▶ Unilever's Expensive PowerPoint Moment   [07:46AM  Bloomberg]
▶ [$$] Unilever looks to be stepping up its beauty regime   [Jun-04-18 12:00AM  Financial Times]
▶ Is Unilever PLCs (LON:ULVR) ROE Of 45.08% Sustainable?   [Jun-01-18 12:10PM  Simply Wall St.]
▶ For Now Its Best to Avoid Colgate-Palmolive Company Stock   [May-30-18 11:14PM  InvestorPlace]
▶ The Lid on Unilever's Pricing Basket   [06:41PM  Motley Fool]
▶ The 7 Best Long-Term Stocks for Risk-Off Investors   [May-29-18 10:24AM  InvestorPlace]
▶ Should You Buy Unilever PLC (LON:ULVR)?   [May-22-18 05:51AM  Simply Wall St.]
▶ World Health Organization targets Trans Fats   [May-14-18 01:19PM  Yahoo Finance Video]
▶ [$$] Unilever credit initiative aims to drive Africa revenues   [May-05-18 11:40PM  Financial Times]
▶ PRESS DIGEST- Financial Times - May 3   [May-02-18 07:49PM  Reuters]
▶ Dollar Shave Club grows C-suite with first chief digital, tech hires   [May-01-18 09:00AM  American City Business Journals]
▶ [$$] Big Consumer Brands Like Raising Prices, but It Is Getting Harder   [Apr-20-18 12:49AM  The Wall Street Journal]
▶ [$$] Unilever showers cash on investors   [08:21AM  Financial Times]
▶ Unilever announces share buyback, dividend boost   [03:56AM  Associated Press]
▶ [$$] Unilever Announces 6 Billion Buyback   [02:56AM  The Wall Street Journal]
▶ [$$] Unilever: the Rotters club   [Apr-18-18 04:33AM  Financial Times]
▶ 1 Key Metric for Unilever Investors to Focus On   [Apr-11-18 09:05PM  Motley Fool]
▶ [$$] Its not too late to rethink Unilever going Dutch   [Apr-06-18 12:01AM  Financial Times]
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