Market price or asking price |
£7,280,063,008 |
Loans from lenders at LTV 70% with interest rate at 5% for 10 years |
£5,096,044,106 |
30% Cash provided from buyer |
£2,184,018,903 |
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 |
£150,356,615 |
Average profit before tax |
£813,200,845 |
- Less corporate income tax at 34% |
£276,488,287 |
Average profit after tax |
£536,712,558 |
+ Add average depreciation over the period |
£450,232,414 |
+ Add average amortization over the period |
£0 |
+ Add average acquisition interest expenses over the period |
£150,356,615 |
Average net cash flow after tax |
£1,137,301,587 |
- Less average capex over the period |
£248,601,679 |
Average net cash flow before debt service |
£888,699,908 |
- Less cash flow safety cushion required |
£218,401,890 |
Net cash flow available for debt service |
£670,298,018 |
Maximum loan that can be supported by cash flow |
£5,175,863,615 |
Value of company operations (£5,175,863,615 / 70%) |
£7,394,090,878 |
+ Add cash & cash equivalents |
£2,638,000,000 |
- Less total interest-bearing debts |
£5,524,000,000 |
Business intrinsic value |
£4,508,090,878 |
Business intrinsic value per share |
£4.18 |