Market price or asking price |
£5,498,352,892 |
Loans from lenders at LTV 70% with interest rate at 5% for 10 years |
£3,848,847,025 |
30% Cash provided from buyer |
£1,649,505,868 |
Average revenue over the period |
£17,533,173,565 |
Estimated operating profit margin (%) |
3.2 |
Average operating profit over the period |
£561,061,554 |
- Less average acquisition interest expenses over the period |
£113,558,596 |
Average profit before tax |
£447,502,959 |
- Less corporate income tax at 29% |
£129,775,858 |
Average profit after tax |
£317,727,101 |
+ Add average depreciation over the period |
£483,626,170 |
+ Add average amortization over the period |
£0 |
+ Add average acquisition interest expenses over the period |
£113,558,596 |
Average net cash flow after tax |
£914,911,866 |
- Less average capex over the period |
£260,760,656 |
Average net cash flow before debt service |
£654,151,211 |
- Less cash flow safety cushion required |
£164,950,587 |
Net cash flow available for debt service |
£489,200,624 |
Maximum loan that can be supported by cash flow |
£3,777,477,545 |
Value of company operations (£3,777,477,545 / 70%) |
£5,396,396,493 |
+ Add cash & cash equivalents |
£2,218,000,000 |
- Less total interest-bearing debts |
£5,637,000,000 |
Business intrinsic value |
£1,977,396,493 |
Business intrinsic value per share |
£1.84 |