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"So for EV to be £44bn with tonight's MCap at £11bn then my guess is it's either a report that's several months old, when the SP was much higher. Or if the report is current then the journo has used old figures."
Hi Velo, it is an old report and the share price was higher at the time it was written. BT was in no worse shape when that was written, the only difference is the market forcing the price down. For better, or worse, i'm in this stock until it either goes to nothing, or starts to climb again to previous levels. Just because the market slaps a value of £10 Billion on BT doesn't mean it's worth that, the reality is that BT's assets are worth far more. At some point the market will have to recognise the value. As far as dividends are concerned, i'm not bothered if they restart them in 2022. I'm now focused on 2025/26 when the FTTP and 5G investment will be well baked in and the true value of Telecom assets are realised. People forget that BT was around 80p in 2009 and it then climbed to around £5 in 2015. I'll just wait this out and wait for BT to climb to what I consider fair value, probably above £4.
Was just about to post this late last night, to an earlier thread in the day, when I saw the yellow new posts strap line; so read first in case there were posts that duplicated or negated the content of this post and found instead it was 'that' troll that lives under the hump backed bridge who had been disturbed by some passing Billy goats. So postponed, and posting it today instead.
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" Indeed, the total Enterprise value for BT is assumed to be around £44 Billion, or 4 times the current Market Cap. "
- Far too high Fleccy.
Jansen would have had to stash away half again in net debt, for £44bn to be correct.
(Is that £44bn taken from an older media report when the SP was much higher, I wonder?)
All Enterprise value is - is the Mcap plus Net Debt and that's it more or less. Tonight the MCap for BT (with the SP at 109.5p) lies at £11bn.
The total Enterprise value therefore is given as £30bn (£30.2bn)
Deduct one from the other and you can see circa £19bn has been added to the MCap. The Net Debt showing on my screen for the year just ended is showing as £19.2bn.
Therefore, £30bn is the true, actual Enterprise Value as of tonight's close.
(Three figures for net debt were shown in the finals - that £19bn, as well as £17bn (which got quoted by Jansen and everywhere in the media) and £11bn.
My stuff is locked on to £19.2bn which the system was forecasting all year more or less (£19.6bn).
Here's the accepted textbook definition quote of how Enterprise Value is calculated:
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" Enterprise Value (EV) represents Market Capitalisation plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments. "
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So for EV to be £44bn with tonight's MCap at £11bn then my guess is it's either a report that's several months old, when the SP was much higher. Or if the report is current then the journo has used old figures.
Only explanation I can think of, for them quoting £44bn for EV.
Oh dear. Looks like someone is missing some attention, since his abacuses was taken away because he said it don’t work right.
Nige
“Not exactly Toff, BT were beaten to the post by Carnival who were down 1.94% BT down 1.66%.“
No - the wooden spoon is BT’s
Carnival are now in the ftse 250
Relegated on June 22
Along with Easyjet, Centrica & Meggitt
Toff
Nige
‘Agreed Fleccy, the figures branded around the valuation range from £15bn to £20bn. I can live with either figure.’
But can you live with the smaller figure?
Which is currently 109p
Toff
Toff.... "One hundred horses And the BT nag came in last"
Not exactly Toff, BT were beaten to the post by Carnival who were down 1.94% BT down 1.66%.
Boo
openreach alone is said to be worth 10 billion. 7p dividend next year..‘
What openreach is worth has little relevance - what is relevant is the shareprice - because that’s how much you’ll get if you were to sell.
And currently that’s 109 a share.
7p dividend? Wishful thinking - BT needs so much money to update its infrastructure that it can’t afford to pay dividends The semi-promise the board made to reinstate dividends in 2022 (not 2021) was merely a ploy to soften the dividend cancelation - no dividend will be forthcoming until the 2030s - for those of you who are still living.
So if you believe the board’s promise of jam tomorrow - you’re going to be bitterly disappointed.
Toff
Boo
‘this is defo a long term secure investment.’
Yeah it’s a great investment- and on a day when global stock markets rallied and the ftse 100 BT was the indexes Biggest Loser.
One hundred horses
And the BT nag came in last
Yes that’s right - Last!
Toff
thanks for all the links. this is defo a long term secure investment. no wonder the arabs bought a little stake 2 weeks ago.
But could BT sell part of its stake and who woukd buy it, vodafone?
"Agreed Fleccy, the figures branded around the valuation range from £15bn to £20bn. I can live with either figure."
Indeed, the total Enterprise value for BT is assumed to be around £44 Billion, or 4 times the current Market Cap.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/727872/Redburn_CfE_response.pdf
Fleccy...... "What is Openreach worth? According to the Financial Times, Openreach could be worth up to £20bn if BT sold a stake in it. That would value the division at twice BT's market value."
Agreed Fleccy, the figures branded around the valuation range from £15bn to £20bn. I can live with either figure.
There is a lot of cost savings going forward with BT. Once Fibre is built, BT become a cash cow again, that will be lead to a re-rating in the share price. At this point the national press will move on to the next company to try and destroy.
"What is Openreach worth? According to the Financial Times, Openreach could be worth up to £20bn if BT sold a stake in it. That would value the division at twice BT's market value."
https://www.telegraph.co.uk/technology/2020/05/15/openreach-worth-billions-bt/
"openreach alone is said to be worth 10 billion. 7p dividend next year.. yes all looking gloomy, NOT"
"Deployment to 1m premises per year should deliver RAB growth of £0.7bn per year and blending premium FTTP with lower target returns on other services, percolates through the financial model to a £22.5bn Openreach enterprise value and delivers a 340p sum-of-the-parts value for BT."
https://www.sharecast.com/news/broker-recommendations/jefferies-sees-bt-worth-340p--3745990.html
can see this going back to 125p until results this month.
saw this happen to vod and avoided all the bullsxxxxit scaremongering coming out from this bb.
for those that sold, good luck and bugger off hahha
openreach alone is said to be worth 10 billion. 7p dividend next year.. yes all looking gloomy, NOT