Intrinsic value of Arbor Realty Trust - ABR

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$7.66

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$7.66

 
Intrinsic value

$353.40

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence* premium content

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Our model is not good at valuating stocks of financial companies, such as ABR.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ABR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  48.95
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  213
  229
  353
  529
  767
  1,082
  1,488
  1,997
  2,622
  3,374
  4,262
  5,292
  6,470
  7,799
  9,279
  10,911
  12,692
  14,620
  16,692
  18,904
  21,254
  23,738
  26,353
  29,098
  31,971
  34,973
  38,102
  41,361
  44,752
  48,278
  51,943
Variable operating expenses, $m
 
  190
  294
  440
  638
  900
  1,238
  1,662
  2,182
  2,807
  3,546
  4,403
  5,383
  6,489
  7,720
  9,078
  10,559
  12,164
  13,887
  15,728
  17,683
  19,750
  21,926
  24,210
  26,600
  29,097
  31,701
  34,413
  37,234
  40,167
  43,216
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  175
  190
  294
  440
  638
  900
  1,238
  1,662
  2,182
  2,807
  3,546
  4,403
  5,383
  6,489
  7,720
  9,078
  10,559
  12,164
  13,887
  15,728
  17,683
  19,750
  21,926
  24,210
  26,600
  29,097
  31,701
  34,413
  37,234
  40,167
  43,216
Operating income, $m
  39
  38
  59
  89
  129
  182
  250
  335
  441
  567
  716
  889
  1,087
  1,310
  1,559
  1,833
  2,132
  2,456
  2,804
  3,176
  3,571
  3,988
  4,427
  4,888
  5,371
  5,875
  6,401
  6,949
  7,518
  8,111
  8,726
EBITDA, $m
  44
  46
  72
  107
  156
  220
  302
  405
  532
  685
  865
  1,074
  1,313
  1,583
  1,883
  2,214
  2,576
  2,967
  3,387
  3,836
  4,313
  4,817
  5,348
  5,905
  6,488
  7,097
  7,732
  8,394
  9,082
  9,797
  10,541
Interest expense (income), $m
  53
  42
  70
  109
  165
  241
  342
  471
  633
  832
  1,072
  1,355
  1,683
  2,058
  2,482
  2,953
  3,473
  4,041
  4,655
  5,315
  6,020
  6,769
  7,560
  8,393
  9,268
  10,184
  11,140
  12,137
  13,175
  14,256
  15,379
Earnings before tax, $m
  63
  -4
  -10
  -21
  -36
  -59
  -92
  -135
  -193
  -265
  -356
  -466
  -596
  -748
  -923
  -1,120
  -1,341
  -1,584
  -1,851
  -2,139
  -2,449
  -2,781
  -3,133
  -3,505
  -3,897
  -4,308
  -4,739
  -5,188
  -5,657
  -6,145
  -6,653
Tax expense, $m
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  50
  -4
  -10
  -21
  -36
  -59
  -92
  -135
  -193
  -265
  -356
  -466
  -596
  -748
  -923
  -1,120
  -1,341
  -1,584
  -1,851
  -2,139
  -2,449
  -2,781
  -3,133
  -3,505
  -3,897
  -4,308
  -4,739
  -5,188
  -5,657
  -6,145
  -6,653

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  139
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,971
  2,630
  4,063
  6,076
  8,817
  12,439
  17,101
  22,954
  30,140
  38,783
  48,987
  60,830
  74,371
  89,642
  106,656
  125,409
  145,880
  168,042
  191,857
  217,289
  244,297
  272,847
  302,909
  334,461
  367,488
  401,985
  437,956
  475,417
  514,393
  554,919
  597,040
Adjusted assets (=assets-cash), $m
  2,832
  2,630
  4,063
  6,076
  8,817
  12,439
  17,101
  22,954
  30,140
  38,783
  48,987
  60,830
  74,371
  89,642
  106,656
  125,409
  145,880
  168,042
  191,857
  217,289
  244,297
  272,847
  302,909
  334,461
  367,488
  401,985
  437,956
  475,417
  514,393
  554,919
  597,040
Revenue / Adjusted assets
  0.075
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
  0.087
Average production assets, $m
  76
  117
  180
  270
  391
  552
  759
  1,018
  1,337
  1,721
  2,174
  2,699
  3,300
  3,977
  4,732
  5,564
  6,473
  7,456
  8,513
  9,641
  10,839
  12,106
  13,440
  14,840
  16,305
  17,836
  19,432
  21,094
  22,824
  24,622
  26,491
Working capital, $m
  0
  -302
  -467
  -699
  -1,014
  -1,431
  -1,967
  -2,640
  -3,467
  -4,461
  -5,634
  -6,996
  -8,554
  -10,310
  -12,267
  -14,424
  -16,778
  -19,327
  -22,066
  -24,991
  -28,098
  -31,381
  -34,839
  -38,468
  -42,266
  -46,234
  -50,371
  -54,680
  -59,162
  -63,823
  -68,668
Total debt, $m
  2,018
  1,936
  3,040
  4,590
  6,700
  9,489
  13,079
  17,586
  23,119
  29,774
  37,631
  46,750
  57,176
  68,935
  82,036
  96,476
  112,239
  129,303
  147,641
  167,223
  188,020
  210,003
  233,151
  257,446
  282,877
  309,439
  337,137
  365,982
  395,993
  427,199
  459,632
Total liabilities, $m
  2,384
  2,025
  3,129
  4,679
  6,789
  9,578
  13,168
  17,675
  23,208
  29,863
  37,720
  46,839
  57,265
  69,024
  82,125
  96,565
  112,328
  129,392
  147,730
  167,312
  188,109
  210,092
  233,240
  257,535
  282,966
  309,528
  337,226
  366,071
  396,082
  427,288
  459,721
Total equity, $m
  587
  605
  935
  1,398
  2,028
  2,861
  3,933
  5,279
  6,932
  8,920
  11,267
  13,991
  17,105
  20,618
  24,531
  28,844
  33,552
  38,650
  44,127
  49,976
  56,188
  62,755
  69,669
  76,926
  84,522
  92,456
  100,730
  109,346
  118,310
  127,631
  137,319
Total liabilities and equity, $m
  2,971
  2,630
  4,064
  6,077
  8,817
  12,439
  17,101
  22,954
  30,140
  38,783
  48,987
  60,830
  74,370
  89,642
  106,656
  125,409
  145,880
  168,042
  191,857
  217,288
  244,297
  272,847
  302,909
  334,461
  367,488
  401,984
  437,956
  475,417
  514,392
  554,919
  597,040
Debt-to-equity ratio
  3.438
  3.200
  3.250
  3.280
  3.300
  3.320
  3.330
  3.330
  3.330
  3.340
  3.340
  3.340
  3.340
  3.340
  3.340
  3.340
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
  3.350
Adjusted equity ratio
  0.158
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  50
  -4
  -10
  -21
  -36
  -59
  -92
  -135
  -193
  -265
  -356
  -466
  -596
  -748
  -923
  -1,120
  -1,341
  -1,584
  -1,851
  -2,139
  -2,449
  -2,781
  -3,133
  -3,505
  -3,897
  -4,308
  -4,739
  -5,188
  -5,657
  -6,145
  -6,653
Depreciation, amort., depletion, $m
  5
  8
  12
  18
  27
  38
  52
  70
  92
  118
  149
  185
  226
  272
  324
  381
  443
  511
  583
  660
  742
  829
  921
  1,016
  1,117
  1,222
  1,331
  1,445
  1,563
  1,686
  1,814
Funds from operations, $m
  -202
  4
  2
  -2
  -10
  -22
  -40
  -66
  -101
  -148
  -207
  -281
  -370
  -476
  -599
  -739
  -898
  -1,074
  -1,268
  -1,479
  -1,707
  -1,952
  -2,212
  -2,489
  -2,780
  -3,087
  -3,408
  -3,743
  -4,094
  -4,459
  -4,838
Change in working capital, $m
  -4
  -113
  -165
  -232
  -315
  -417
  -536
  -673
  -827
  -994
  -1,174
  -1,362
  -1,557
  -1,756
  -1,957
  -2,157
  -2,355
  -2,549
  -2,739
  -2,925
  -3,106
  -3,284
  -3,458
  -3,629
  -3,799
  -3,968
  -4,137
  -4,309
  -4,483
  -4,661
  -4,845
Cash from operations, $m
  -198
  106
  167
  229
  306
  395
  496
  608
  726
  846
  966
  1,081
  1,187
  1,281
  1,358
  1,418
  1,457
  1,475
  1,471
  1,446
  1,399
  1,332
  1,245
  1,140
  1,018
  881
  730
  565
  389
  202
  6
Maintenance CAPEX, $m
  0
  -5
  -8
  -12
  -18
  -27
  -38
  -52
  -70
  -92
  -118
  -149
  -185
  -226
  -272
  -324
  -381
  -443
  -511
  -583
  -660
  -742
  -829
  -921
  -1,016
  -1,117
  -1,222
  -1,331
  -1,445
  -1,563
  -1,686
New CAPEX, $m
  0
  -44
  -64
  -89
  -122
  -161
  -207
  -260
  -319
  -383
  -453
  -526
  -601
  -678
  -755
  -832
  -908
  -983
  -1,057
  -1,128
  -1,198
  -1,267
  -1,334
  -1,400
  -1,465
  -1,531
  -1,596
  -1,662
  -1,729
  -1,798
  -1,869
Cash from investing activities, $m
  -202
  -49
  -72
  -101
  -140
  -188
  -245
  -312
  -389
  -475
  -571
  -675
  -786
  -904
  -1,027
  -1,156
  -1,289
  -1,426
  -1,568
  -1,711
  -1,858
  -2,009
  -2,163
  -2,321
  -2,481
  -2,648
  -2,818
  -2,993
  -3,174
  -3,361
  -3,555
Free cash flow, $m
  -400
  57
  95
  128
  166
  208
  252
  296
  337
  371
  396
  407
  402
  377
  331
  261
  167
  48
  -96
  -265
  -459
  -677
  -918
  -1,180
  -1,463
  -1,766
  -2,088
  -2,428
  -2,785
  -3,159
  -3,549
Issuance/(repayment) of debt, $m
  379
  763
  1,104
  1,550
  2,110
  2,789
  3,590
  4,507
  5,533
  6,655
  7,856
  9,120
  10,426
  11,759
  13,101
  14,439
  15,763
  17,064
  18,338
  19,582
  20,796
  21,984
  23,148
  24,295
  25,431
  26,562
  27,698
  28,845
  30,011
  31,205
  32,434
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  388
  763
  1,104
  1,550
  2,110
  2,789
  3,590
  4,507
  5,533
  6,655
  7,856
  9,120
  10,426
  11,759
  13,101
  14,439
  15,763
  17,064
  18,338
  19,582
  20,796
  21,984
  23,148
  24,295
  25,431
  26,562
  27,698
  28,845
  30,011
  31,205
  32,434
Total cash flow (excl. dividends), $m
  -11
  820
  1,199
  1,678
  2,275
  2,997
  3,841
  4,803
  5,870
  7,027
  8,252
  9,527
  10,828
  12,136
  13,432
  14,701
  15,931
  17,113
  18,242
  19,317
  20,337
  21,307
  22,230
  23,115
  23,967
  24,796
  25,610
  26,417
  27,226
  28,046
  28,884
Retained Cash Flow (-), $m
  -22
  -229
  -330
  -463
  -630
  -833
  -1,072
  -1,346
  -1,653
  -1,988
  -2,347
  -2,724
  -3,114
  -3,512
  -3,913
  -4,313
  -4,708
  -5,097
  -5,478
  -5,849
  -6,212
  -6,567
  -6,914
  -7,257
  -7,596
  -7,934
  -8,273
  -8,616
  -8,964
  -9,321
  -9,688
Prev. year cash balance distribution, $m
 
  189
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  780
  869
  1,215
  1,645
  2,164
  2,769
  3,457
  4,217
  5,039
  5,906
  6,803
  7,714
  8,623
  9,519
  10,388
  11,222
  12,016
  12,765
  13,467
  14,125
  14,740
  15,316
  15,858
  16,371
  16,862
  17,336
  17,801
  18,262
  18,725
  19,196
Discount rate, %
 
  10.20
  10.71
  11.25
  11.81
  12.40
  13.02
  13.67
  14.35
  15.07
  15.82
  16.61
  17.45
  18.32
  19.23
  20.20
  21.21
  22.27
  23.38
  24.55
  25.77
  27.06
  28.42
  29.84
  31.33
  32.90
  34.54
  36.27
  38.08
  39.99
  41.98
PV of cash for distribution, $m
 
  708
  709
  882
  1,053
  1,206
  1,329
  1,410
  1,442
  1,424
  1,359
  1,254
  1,120
  968
  811
  658
  517
  394
  291
  208
  144
  96
  62
  39
  24
  14
  8
  4
  2
  1
  1
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Arbor Realty Trust, Inc., a real estate finance company, invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company primarily invests in real estate-related bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity, discounted mortgage notes, and other real estate-related assets. It offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing by making preferred equity investments in entities that directly or indirectly own real property. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2003 and is based in Uniondale, New York.

FINANCIAL RATIOS  of  Arbor Realty Trust (ABR)

Valuation Ratios
P/E Ratio 7.9
Price to Sales 1.8
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow -2
Price to Free Cash Flow -2
Growth Rates
Sales Growth Rate 49%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 343.8%
Total Debt to Equity 343.8%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 5.6%
Return On Total Capital 2.3%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 8.7%
Return On Equity - 3 Yr. Avg. 12.5%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 64.3%
Gross Margin - 3 Yr. Avg. 60.2%
EBITDA Margin 56.8%
EBITDA Margin - 3 Yr. Avg. 76.5%
Operating Margin 17.8%
Oper. Margin - 3 Yr. Avg. 20.5%
Pre-Tax Margin 29.6%
Pre-Tax Margin - 3 Yr. Avg. 44.2%
Net Profit Margin 23.5%
Net Profit Margin - 3 Yr. Avg. 42.2%
Effective Tax Rate 1.6%
Eff/ Tax Rate - 3 Yr. Avg. 0.5%
Payout Ratio 78%

ABR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ABR stock intrinsic value calculation we used $143 million for the last fiscal year's total revenue generated by Arbor Realty Trust. The default revenue input number comes from 2016 income statement of Arbor Realty Trust. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ABR stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.2%, whose default value for ABR is calculated based on our internal credit rating of Arbor Realty Trust, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Arbor Realty Trust.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ABR stock the variable cost ratio is equal to 83.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ABR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.6% for Arbor Realty Trust.

Corporate tax rate of 27% is the nominal tax rate for Arbor Realty Trust. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ABR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ABR are equal to 51%.

Life of production assets of 14.6 years is the average useful life of capital assets used in Arbor Realty Trust operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ABR is equal to -132.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $565 million for Arbor Realty Trust - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 51.331 million for Arbor Realty Trust is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Arbor Realty Trust at the current share price and the inputted number of shares is $0.4 billion.


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COMPANY NEWS

▶ Arbor Realty Trust reports 1Q results   [May-05-17 08:14AM  Associated Press]
▶ Arbor Realty Trust Declares Preferred Stock Dividends   [May-03-17 04:05PM  GlobeNewswire]
▶ Top Ranked Income Stocks to Buy for May 1st   [May-01-17 07:23AM  Zacks]
▶ How to Uncover Institutional Buying   [Apr-19-17 02:06PM  Zacks]
▶ Top Ranked Income Stocks to Buy for April 17th   [Apr-17-17 11:37AM  Zacks]
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▶ New Strong Buy Stocks for April 3rd   [Apr-03-17 09:26AM  Zacks]
▶ Strong Buys at New Highs   [Mar-29-17 06:47PM  Zacks]
▶ Strong Buys at New Highs   [06:47PM  at Investopedia]
▶ New Strong Buy Stocks for March 23rd   [Mar-23-17 09:45AM  Zacks]
▶ Arbor Realty Trust Declares Preferred Stock Dividends   [Feb-03-17 10:00AM  GlobeNewswire]
▶ How Arbor Realty Trust, Inc. (ABR) Stacks Up Against Its Peers   [Dec-13-16 01:42AM  at Insider Monkey]
▶ Arbor Realty Trust Declares Preferred Stock Dividends   [Nov-04-16 09:31AM  GlobeNewswire]
Stock chart of ABR Financial statements of ABR Annual reports of ABR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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