Market price or asking price |
£7,254,405,851 |
Loans from lenders at LTV 70% with interest rate at 5% for 10 years |
£5,078,084,096 |
30% Cash provided from buyer |
£2,176,321,755 |
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 |
£149,826,713 |
Average profit before tax |
£813,730,747 |
- Less corporate income tax at 34% |
£276,668,454 |
Average profit after tax |
£537,062,293 |
+ Add average depreciation over the period |
£450,232,414 |
+ Add average amortization over the period |
£0 |
+ Add average acquisition interest expenses over the period |
£149,826,713 |
Average net cash flow after tax |
£1,137,121,420 |
- Less average capex over the period |
£248,601,679 |
Average net cash flow before debt service |
£888,519,741 |
- Less cash flow safety cushion required |
£217,632,176 |
Net cash flow available for debt service |
£670,887,565 |
Maximum loan that can be supported by cash flow |
£5,180,415,947 |
Value of company operations (£5,180,415,947 / 70%) |
£7,400,594,210 |
+ Add cash & cash equivalents |
£2,638,000,000 |
- Less total interest-bearing debts |
£5,524,000,000 |
Business intrinsic value |
£4,514,594,210 |
Business intrinsic value per share |
£4.18 |