Intrinsic value of Zayo Group Holdings - ZAYO

Previous Close

$37.31

  Intrinsic Value

$47.38

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  Rating & Target

buy

+27%

Previous close

$37.31

 
Intrinsic value

$47.38

 
Up/down potential

+27%

 
Rating

buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ZAYO 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Zayo Group Holdings (ZAYO) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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, %
  27.76
  27.50
  25.25
  23.23
  21.40
  19.76
  18.29
  16.96
  15.76
  14.69
  13.72
  12.85
  12.06
  11.35
  10.72
  10.15
  9.63
  9.17
  8.75
  8.38
  8.04
  7.74
  7.46
  7.22
  6.99
  6.79
  6.62
  6.45
  6.31
  6.18
  6.06
Revenue, $m
  2,200
  2,805
  3,513
  4,329
  5,256
  6,294
  7,445
  8,708
  10,081
  11,561
  13,147
  14,835
  16,625
  18,512
  20,497
  22,577
  24,751
  27,021
  29,386
  31,847
  34,408
  37,069
  39,836
  42,710
  45,697
  48,802
  52,031
  55,388
  58,883
  62,520
  66,309
Variable operating expenses, $m
 
  1,879
  2,307
  2,800
  3,360
  3,988
  4,684
  5,447
  6,276
  7,171
  8,129
  8,966
  10,047
  11,188
  12,387
  13,644
  14,959
  16,330
  17,760
  19,247
  20,795
  22,403
  24,075
  25,812
  27,618
  29,494
  31,445
  33,475
  35,587
  37,785
  40,075
Fixed operating expenses, $m
 
  346
  355
  364
  373
  382
  392
  402
  412
  422
  433
  443
  455
  466
  478
  490
  502
  514
  527
  540
  554
  568
  582
  596
  611
  627
  642
  658
  675
  692
  709
Total operating expenses, $m
  1,844
  2,225
  2,662
  3,164
  3,733
  4,370
  5,076
  5,849
  6,688
  7,593
  8,562
  9,409
  10,502
  11,654
  12,865
  14,134
  15,461
  16,844
  18,287
  19,787
  21,349
  22,971
  24,657
  26,408
  28,229
  30,121
  32,087
  34,133
  36,262
  38,477
  40,784
Operating income, $m
  356
  579
  851
  1,165
  1,522
  1,924
  2,370
  2,859
  3,392
  3,968
  4,585
  5,426
  6,123
  6,858
  7,632
  8,443
  9,291
  10,176
  11,099
  12,060
  13,059
  14,098
  15,178
  16,301
  17,468
  18,681
  19,943
  21,255
  22,621
  24,044
  25,525
EBITDA, $m
  963
  1,369
  1,794
  2,284
  2,842
  3,468
  4,163
  4,925
  5,755
  6,650
  7,610
  8,632
  9,715
  10,859
  12,061
  13,321
  14,640
  16,015
  17,449
  18,942
  20,495
  22,109
  23,787
  25,531
  27,343
  29,228
  31,187
  33,225
  35,346
  37,554
  39,855
Interest expense (income), $m
  196
  225
  306
  400
  509
  632
  771
  924
  1,092
  1,275
  1,472
  1,683
  1,908
  2,146
  2,398
  2,662
  2,939
  3,229
  3,531
  3,846
  4,174
  4,515
  4,869
  5,238
  5,620
  6,018
  6,432
  6,862
  7,309
  7,774
  8,259
Earnings before tax, $m
  104
  354
  545
  764
  1,013
  1,291
  1,599
  1,935
  2,300
  2,693
  3,113
  3,743
  4,215
  4,712
  5,234
  5,780
  6,352
  6,947
  7,568
  8,214
  8,885
  9,584
  10,309
  11,064
  11,848
  12,663
  13,511
  14,394
  15,312
  16,269
  17,266
Tax expense, $m
  18
  96
  147
  206
  274
  349
  432
  523
  621
  727
  840
  1,011
  1,138
  1,272
  1,413
  1,561
  1,715
  1,876
  2,043
  2,218
  2,399
  2,588
  2,783
  2,987
  3,199
  3,419
  3,648
  3,886
  4,134
  4,393
  4,662
Net income, $m
  86
  259
  398
  558
  740
  943
  1,167
  1,413
  1,679
  1,966
  2,272
  2,732
  3,077
  3,440
  3,821
  4,220
  4,637
  5,072
  5,525
  5,996
  6,486
  6,996
  7,526
  8,076
  8,649
  9,244
  9,863
  10,507
  11,178
  11,877
  12,604

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  221
  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
  8,739
  10,872
  13,617
  16,780
  20,371
  24,397
  28,858
  33,752
  39,072
  44,810
  50,956
  57,502
  64,437
  71,753
  79,445
  87,506
  95,935
  104,732
  113,898
  123,440
  133,364
  143,680
  154,401
  165,543
  177,121
  189,156
  201,669
  214,684
  228,227
  242,326
  257,010
Adjusted assets (=assets-cash), $m
  8,518
  10,872
  13,617
  16,780
  20,371
  24,397
  28,858
  33,752
  39,072
  44,810
  50,956
  57,502
  64,437
  71,753
  79,445
  87,506
  95,935
  104,732
  113,898
  123,440
  133,364
  143,680
  154,401
  165,543
  177,121
  189,156
  201,669
  214,684
  228,227
  242,326
  257,010
Revenue / Adjusted assets
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
Average production assets, $m
  5,610
  7,153
  8,959
  11,040
  13,402
  16,051
  18,986
  22,205
  25,705
  29,480
  33,524
  37,830
  42,393
  47,207
  52,267
  57,570
  63,116
  68,903
  74,934
  81,211
  87,740
  94,527
  101,581
  108,910
  116,528
  124,446
  132,678
  141,241
  150,151
  159,426
  169,087
Working capital, $m
  -105
  -398
  -499
  -615
  -746
  -894
  -1,057
  -1,237
  -1,431
  -1,642
  -1,867
  -2,107
  -2,361
  -2,629
  -2,911
  -3,206
  -3,515
  -3,837
  -4,173
  -4,522
  -4,886
  -5,264
  -5,657
  -6,065
  -6,489
  -6,930
  -7,388
  -7,865
  -8,361
  -8,878
  -9,416
Total debt, $m
  5,639
  7,650
  10,008
  12,725
  15,810
  19,268
  23,100
  27,304
  31,874
  36,803
  42,082
  47,705
  53,662
  59,947
  66,554
  73,479
  80,719
  88,276
  96,150
  104,346
  112,870
  121,732
  130,942
  140,512
  150,458
  160,796
  171,545
  182,725
  194,358
  206,469
  219,083
Total liabilities, $m
  7,329
  9,339
  11,697
  14,414
  17,499
  20,957
  24,789
  28,993
  33,563
  38,492
  43,771
  49,394
  55,351
  61,636
  68,243
  75,168
  82,408
  89,965
  97,839
  106,035
  114,559
  123,421
  132,631
  142,201
  152,147
  162,485
  173,234
  184,414
  196,047
  208,158
  220,772
Total equity, $m
  1,411
  1,533
  1,920
  2,366
  2,872
  3,440
  4,069
  4,759
  5,509
  6,318
  7,185
  8,108
  9,086
  10,117
  11,202
  12,338
  13,527
  14,767
  16,060
  17,405
  18,804
  20,259
  21,771
  23,341
  24,974
  26,671
  28,435
  30,270
  32,180
  34,168
  36,238
Total liabilities and equity, $m
  8,740
  10,872
  13,617
  16,780
  20,371
  24,397
  28,858
  33,752
  39,072
  44,810
  50,956
  57,502
  64,437
  71,753
  79,445
  87,506
  95,935
  104,732
  113,899
  123,440
  133,363
  143,680
  154,402
  165,542
  177,121
  189,156
  201,669
  214,684
  228,227
  242,326
  257,010
Debt-to-equity ratio
  3.996
  4.990
  5.210
  5.380
  5.500
  5.600
  5.680
  5.740
  5.790
  5.820
  5.860
  5.880
  5.910
  5.930
  5.940
  5.960
  5.970
  5.980
  5.990
  6.000
  6.000
  6.010
  6.010
  6.020
  6.020
  6.030
  6.030
  6.040
  6.040
  6.040
  6.050
Adjusted equity ratio
  0.140
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141
  0.141

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  86
  259
  398
  558
  740
  943
  1,167
  1,413
  1,679
  1,966
  2,272
  2,732
  3,077
  3,440
  3,821
  4,220
  4,637
  5,072
  5,525
  5,996
  6,486
  6,996
  7,526
  8,076
  8,649
  9,244
  9,863
  10,507
  11,178
  11,877
  12,604
Depreciation, amort., depletion, $m
  607
  790
  943
  1,120
  1,320
  1,544
  1,793
  2,066
  2,362
  2,682
  3,025
  3,206
  3,593
  4,001
  4,429
  4,879
  5,349
  5,839
  6,350
  6,882
  7,436
  8,011
  8,609
  9,230
  9,875
  10,546
  11,244
  11,970
  12,725
  13,511
  14,329
Funds from operations, $m
  875
  1,049
  1,341
  1,678
  2,059
  2,487
  2,960
  3,479
  4,042
  4,648
  5,297
  5,938
  6,669
  7,440
  8,250
  9,099
  9,985
  10,911
  11,875
  12,878
  13,922
  15,007
  16,134
  17,306
  18,524
  19,790
  21,107
  22,477
  23,903
  25,387
  26,934
Change in working capital, $m
  -35
  -86
  -101
  -116
  -132
  -147
  -163
  -179
  -195
  -210
  -225
  -240
  -254
  -268
  -282
  -295
  -309
  -322
  -336
  -350
  -364
  -378
  -393
  -408
  -424
  -441
  -458
  -477
  -496
  -517
  -538
Cash from operations, $m
  910
  1,135
  1,442
  1,793
  2,191
  2,635
  3,124
  3,658
  4,236
  4,858
  5,522
  6,178
  6,923
  7,708
  8,532
  9,394
  10,294
  11,233
  12,211
  13,228
  14,285
  15,385
  16,527
  17,714
  18,948
  20,231
  21,565
  22,954
  24,399
  25,904
  27,472
Maintenance CAPEX, $m
  0
  -475
  -606
  -759
  -936
  -1,136
  -1,360
  -1,609
  -1,882
  -2,178
  -2,498
  -2,841
  -3,206
  -3,593
  -4,001
  -4,429
  -4,879
  -5,349
  -5,839
  -6,350
  -6,882
  -7,436
  -8,011
  -8,609
  -9,230
  -9,875
  -10,546
  -11,244
  -11,970
  -12,725
  -13,511
New CAPEX, $m
  -836
  -1,543
  -1,806
  -2,081
  -2,363
  -2,649
  -2,935
  -3,220
  -3,500
  -3,775
  -4,044
  -4,306
  -4,563
  -4,814
  -5,060
  -5,304
  -5,545
  -5,787
  -6,031
  -6,277
  -6,529
  -6,787
  -7,054
  -7,330
  -7,617
  -7,918
  -8,232
  -8,563
  -8,910
  -9,276
  -9,661
Cash from investing activities, $m
  -2,270
  -2,018
  -2,412
  -2,840
  -3,299
  -3,785
  -4,295
  -4,829
  -5,382
  -5,953
  -6,542
  -7,147
  -7,769
  -8,407
  -9,061
  -9,733
  -10,424
  -11,136
  -11,870
  -12,627
  -13,411
  -14,223
  -15,065
  -15,939
  -16,847
  -17,793
  -18,778
  -19,807
  -20,880
  -22,001
  -23,172
Free cash flow, $m
  -1,360
  -883
  -971
  -1,046
  -1,107
  -1,150
  -1,172
  -1,171
  -1,145
  -1,095
  -1,020
  -969
  -845
  -698
  -529
  -339
  -130
  97
  341
  600
  874
  1,162
  1,463
  1,776
  2,101
  2,438
  2,787
  3,147
  3,519
  3,904
  4,300
Issuance/(repayment) of debt, $m
  1,450
  2,024
  2,358
  2,717
  3,085
  3,458
  3,832
  4,204
  4,570
  4,929
  5,280
  5,623
  5,957
  6,285
  6,607
  6,925
  7,241
  7,556
  7,874
  8,196
  8,525
  8,862
  9,210
  9,570
  9,946
  10,338
  10,749
  11,180
  11,633
  12,111
  12,614
Issuance/(repurchase) of shares, $m
  0
  71
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,411
  2,095
  2,358
  2,717
  3,085
  3,458
  3,832
  4,204
  4,570
  4,929
  5,280
  5,623
  5,957
  6,285
  6,607
  6,925
  7,241
  7,556
  7,874
  8,196
  8,525
  8,862
  9,210
  9,570
  9,946
  10,338
  10,749
  11,180
  11,633
  12,111
  12,614
Total cash flow (excl. dividends), $m
  50
  1,212
  1,387
  1,670
  1,978
  2,308
  2,661
  3,033
  3,425
  3,834
  4,260
  4,653
  5,112
  5,587
  6,078
  6,586
  7,111
  7,653
  8,215
  8,796
  9,399
  10,024
  10,672
  11,346
  12,047
  12,776
  13,536
  14,327
  15,153
  16,014
  16,914
Retained Cash Flow (-), $m
  -192
  -330
  -387
  -446
  -506
  -568
  -629
  -690
  -750
  -809
  -867
  -923
  -978
  -1,032
  -1,084
  -1,137
  -1,189
  -1,240
  -1,292
  -1,345
  -1,399
  -1,455
  -1,512
  -1,571
  -1,633
  -1,697
  -1,764
  -1,835
  -1,910
  -1,988
  -2,071
Prev. year cash balance distribution, $m
 
  208
  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
 
  1,090
  1,000
  1,224
  1,471
  1,741
  2,032
  2,343
  2,674
  3,025
  3,393
  3,730
  4,134
  4,555
  4,994
  5,449
  5,922
  6,413
  6,922
  7,451
  8,000
  8,569
  9,161
  9,775
  10,414
  11,079
  11,771
  12,492
  13,243
  14,026
  14,844
Discount rate, %
 
  10.80
  11.34
  11.91
  12.50
  13.13
  13.78
  14.47
  15.20
  15.96
  16.75
  17.59
  18.47
  19.40
  20.37
  21.38
  22.45
  23.58
  24.75
  25.99
  27.29
  28.66
  30.09
  31.59
  33.17
  34.83
  36.57
  38.40
  40.32
  42.34
  44.45
PV of cash for distribution, $m
 
  984
  807
  874
  918
  939
  936
  910
  862
  798
  721
  627
  541
  455
  373
  298
  232
  175
  129
  92
  64
  43
  28
  18
  11
  6
  4
  2
  1
  1
  0
Current shareholders' claim on cash, %
  100
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1

Zayo Group Holdings, Inc. provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud infrastructure to a range of businesses. The Company operates in five segments: Dark Fiber Solutions, Network Connectivity, Colocation and Cloud Infrastructure, Zayo Canada and Other. Its products include leased dark fiber, fiber to cellular towers and small cell sites, wavelength connections, Ethernet, Internet Protocol (IP) connectivity and cloud services. Its products and services enable high-bandwidth applications, such as cloud-based computing, video, mobile, social media and machine-to-machine connectivity. As of March 1, 2017, the Company operated 8,100 route miles of long haul fiber and 4,000 miles of dense metro fiber across Denver, Minneapolis, Phoenix, Portland, Seattle, Sacramento, San Francisco, San Jose, Salt Lake City, Spokane and Boise, with on-net connectivity to over 3,100 enterprise buildings and 100 data centers.

FINANCIAL RATIOS  of  Zayo Group Holdings (ZAYO)

Valuation Ratios
P/E Ratio 106.9
Price to Sales 4.2
Price to Book 6.5
Price to Tangible Book
Price to Cash Flow 10.1
Price to Free Cash Flow 124.3
Growth Rates
Sales Growth Rate 27.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 18.8%
Cap. Spend. - 3 Yr. Gr. Rate 18.3%
Financial Strength
Quick Ratio 17
Current Ratio 0.1
LT Debt to Equity 398.7%
Total Debt to Equity 399.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 3.2%
Ret/ On Assets - 3 Yr. Avg. 2.2%
Return On Total Capital 1.4%
Ret/ On T. Cap. - 3 Yr. Avg. -1.2%
Return On Equity 6.5%
Return On Equity - 3 Yr. Avg. -6.3%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 64.4%
Gross Margin - 3 Yr. Avg. 66.7%
EBITDA Margin 41.2%
EBITDA Margin - 3 Yr. Avg. 37.6%
Operating Margin 16.2%
Oper. Margin - 3 Yr. Avg. 11.3%
Pre-Tax Margin 4.7%
Pre-Tax Margin - 3 Yr. Avg. -3.8%
Net Profit Margin 3.9%
Net Profit Margin - 3 Yr. Avg. -4%
Effective Tax Rate 17.3%
Eff/ Tax Rate - 3 Yr. Avg. 3.7%
Payout Ratio 0%

ZAYO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ZAYO stock intrinsic value calculation we used $2200 million for the last fiscal year's total revenue generated by Zayo Group Holdings. The default revenue input number comes from 2017 income statement of Zayo Group Holdings. 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 ZAYO stock valuation model: a) initial revenue growth rate of 27.5% 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 10.8%, whose default value for ZAYO is calculated based on our internal credit rating of Zayo Group Holdings, 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 Zayo Group Holdings.
    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 ZAYO stock the variable cost ratio is equal to 68.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $338 million in the base year in the intrinsic value calculation for ZAYO 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 4% for Zayo Group Holdings.

Corporate tax rate of 27% is the nominal tax rate for Zayo Group Holdings. 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 ZAYO 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 ZAYO are equal to 255%.

Life of production assets of 11.8 years is the average useful life of capital assets used in Zayo Group Holdings 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 ZAYO is equal to -14.2%. 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 - $1411 million for Zayo Group Holdings - 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 247.826 million for Zayo Group Holdings 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 Zayo Group Holdings at the current share price and the inputted number of shares is $9.2 billion.

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COMPANY NEWS

▶ Zayo Focuses on Top-Value Clients   [Feb-07-18 08:12PM  Motley Fool]
▶ Zayo Group beats Street 2Q forecasts   [05:37PM  Associated Press]
▶ Zayo Group Revenue Edges Views, Profit Below Estimates   [04:35PM  Investor's Business Daily]
▶ Zayo to Acquire Neutral Path   [Jan-29-18 08:00AM  Business Wire]
▶ Multinational Bank Selects Zayo for Wavelength Solution   [Jan-22-18 08:00AM  Business Wire]
▶ Zayo Acquires Optic Zoo Networks   [Jan-19-18 08:00AM  Business Wire]
▶ Zayo, Alphabet & one US-focused ETF   [Jan-05-18 01:40PM  CNBC Videos]
▶ Zayo Debuts SD-WAN Offering   [Jan-03-18 08:00AM  Business Wire]
▶ Zayo Executives to Present at Citi TMT West Conference   [Jan-02-18 04:10PM  Business Wire]
▶ Ad Tech Company Selects Zayo for Colocation   [08:00AM  Business Wire]
▶ Zayo Executives to Present at December Investor Conferences   [Nov-28-17 04:05PM  Business Wire]
▶ Zayo to Acquire Spread Networks   [Nov-27-17 08:00AM  Business Wire]
▶ Zayo Recognized for Board Diversity   [Nov-20-17 08:00AM  Business Wire]
▶ Zayo Appoints CRO and European Managing Director   [Nov-13-17 08:00AM  Business Wire]
▶ Growth Slows at Zayo Group Holdings   [09:31AM  Motley Fool]
▶ Zayo Group misses 1Q profit forecasts   [Nov-06-17 04:26PM  Associated Press]
▶ Zayo Expands Fiber Network in Indiana   [Nov-02-17 08:00AM  Business Wire]
▶ Zayo to Offer Three Diverse Routes to Marseille   [Oct-23-17 07:00AM  Business Wire]
▶ Major Carrier Selects Zayo for Small Cell Densification   [Oct-12-17 08:00AM  Business Wire]
▶ Global Webscale Company Selects Zayo for Dark Fiber   [Oct-04-17 08:00AM  Business Wire]
▶ Zayo Attracts Activists Jana, Corvex and FrontFour   [Sep-29-17 11:22AM  TheStreet.com]
▶ Data center operator plans 72,000 square foot server farm in Atlanta   [Sep-26-17 07:20AM  American City Business Journals]
▶ Zayo to Expand Atlanta Data Center Presence   [08:00AM  Business Wire]
▶ Is There Now An Opportunity In Zayo Group Holdings Inc (ZAYO)?   [Sep-12-17 09:25PM  Simply Wall St.]
▶ Zayo Announces CFO Transition   [Sep-11-17 04:05PM  Business Wire]
▶ Zayo Acquires Data Center in Colorado   [Sep-06-17 08:00AM  Business Wire]
▶ Zayo Group Reports Bookings Success   [12:14PM  Motley Fool]
▶ Zayo Group meets 4Q profit forecasts   [Aug-21-17 10:01PM  Associated Press]
▶ Consolidated Smart Systems Selects Zayo for Dark Fiber   [Aug-10-17 08:00AM  Business Wire]
▶ Zayo to Enable CloudLink Service in Peak 10 Data Centers   [Jul-31-17 08:00AM  Business Wire]
Financial statements of ZAYO
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