Market price or asking price |
£7,202,323,187 |
Loans from lenders at LTV 70% with interest rate at 5% for 10 years |
£5,041,626,231 |
30% Cash provided from buyer |
£2,160,696,956 |
Average revenue over the period |
£17,206,383,221 |
Estimated operating profit margin (%) |
5.6 |
Average operating profit over the period |
£963,557,460 |
- Less average acquisition interest expenses over the period |
£148,751,039 |
Average profit before tax |
£814,806,421 |
- Less corporate income tax at 34% |
£277,034,183 |
Average profit after tax |
£537,772,238 |
+ Add average depreciation over the period |
£450,232,414 |
+ Add average amortization over the period |
£0 |
+ Add average acquisition interest expenses over the period |
£148,751,039 |
Average net cash flow after tax |
£1,136,755,691 |
- Less average capex over the period |
£248,601,679 |
Average net cash flow before debt service |
£888,154,012 |
- Less cash flow safety cushion required |
£216,069,696 |
Net cash flow available for debt service |
£672,084,316 |
Maximum loan that can be supported by cash flow |
£5,189,656,940 |
Value of company operations (£5,189,656,940 / 70%) |
£7,413,795,628 |
+ Add cash & cash equivalents |
£2,638,000,000 |
- Less total interest-bearing debts |
£5,524,000,000 |
Business intrinsic value |
£4,527,795,628 |
Business intrinsic value per share |
£4.20 |