Market price or asking price |
£5,565,670,540 |
Loans from lenders at LTV 70% with interest rate at 5% for 10 years |
£3,895,969,378 |
30% Cash provided from buyer |
£1,669,701,162 |
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 |
£114,948,921 |
Average profit before tax |
£446,112,634 |
- Less corporate income tax at 29% |
£129,372,664 |
Average profit after tax |
£316,739,970 |
+ Add average depreciation over the period |
£483,626,170 |
+ Add average amortization over the period |
£0 |
+ Add average acquisition interest expenses over the period |
£114,948,921 |
Average net cash flow after tax |
£915,315,061 |
- Less average capex over the period |
£260,760,656 |
Average net cash flow before debt service |
£654,554,405 |
- Less cash flow safety cushion required |
£166,970,116 |
Net cash flow available for debt service |
£487,584,289 |
Maximum loan that can be supported by cash flow |
£3,764,996,633 |
Value of company operations (£3,764,996,633 / 70%) |
£5,378,566,619 |
+ Add cash & cash equivalents |
£2,218,000,000 |
- Less total interest-bearing debts |
£5,637,000,000 |
Business intrinsic value |
£1,959,566,619 |
Business intrinsic value per share |
£1.82 |