Market price or asking price |
£5,597,055,900 |
Loans from lenders at LTV 70% with interest rate at 5% for 10 years |
£3,917,939,130 |
30% Cash provided from buyer |
£1,679,116,770 |
Average revenue over the period |
£17,533,173,565 |
Estimated operating profit margin (%) |
3.3 |
Average operating profit over the period |
£578,594,728 |
- Less average acquisition interest expenses over the period |
£115,597,129 |
Average profit before tax |
£462,997,599 |
- Less corporate income tax at 29% |
£134,269,304 |
Average profit after tax |
£328,728,295 |
+ Add average depreciation over the period |
£483,626,170 |
+ Add average amortization over the period |
£0 |
+ Add average acquisition interest expenses over the period |
£115,597,129 |
Average net cash flow after tax |
£927,951,594 |
- Less average capex over the period |
£260,760,656 |
Average net cash flow before debt service |
£667,190,939 |
- Less cash flow safety cushion required |
£167,911,677 |
Net cash flow available for debt service |
£499,279,262 |
Maximum loan that can be supported by cash flow |
£3,855,302,113 |
Value of company operations (£3,855,302,113 / 70%) |
£5,507,574,448 |
+ Add cash & cash equivalents |
£2,218,000,000 |
- Less total interest-bearing debts |
£5,995,000,000 |
Business intrinsic value |
£1,730,574,448 |
Business intrinsic value per share |
£1.61 |