Intrinsic value of Air Lease - AL

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$37.86

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$37.86

 
Intrinsic value

$12.13

 
Up/down potential

-68%

 
Rating

str. sell

 
Value-price divergence* premium content

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

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

We calculate the intrinsic value of AL 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 3.9

 

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, %
  16.03
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
Revenue, $m
  1,419
  1,605
  1,802
  2,010
  2,230
  2,460
  2,700
  2,952
  3,214
  3,486
  3,770
  4,065
  4,371
  4,690
  5,021
  5,365
  5,723
  6,095
  6,482
  6,885
  7,305
  7,742
  8,197
  8,673
  9,169
  9,686
  10,227
  10,792
  11,382
  12,000
  12,645
Variable operating expenses, $m
 
  740
  831
  927
  1,028
  1,134
  1,245
  1,361
  1,481
  1,607
  1,738
  1,874
  2,015
  2,162
  2,315
  2,473
  2,638
  2,810
  2,988
  3,174
  3,367
  3,569
  3,779
  3,998
  4,227
  4,465
  4,715
  4,975
  5,247
  5,532
  5,830
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
  553
  740
  831
  927
  1,028
  1,134
  1,245
  1,361
  1,481
  1,607
  1,738
  1,874
  2,015
  2,162
  2,315
  2,473
  2,638
  2,810
  2,988
  3,174
  3,367
  3,569
  3,779
  3,998
  4,227
  4,465
  4,715
  4,975
  5,247
  5,532
  5,830
Operating income, $m
  866
  865
  971
  1,084
  1,202
  1,326
  1,455
  1,591
  1,732
  1,879
  2,032
  2,191
  2,356
  2,528
  2,706
  2,892
  3,085
  3,285
  3,494
  3,711
  3,937
  4,173
  4,418
  4,675
  4,942
  5,221
  5,512
  5,817
  6,135
  6,468
  6,816
EBITDA, $m
  1,319
  1,378
  1,547
  1,726
  1,914
  2,112
  2,319
  2,534
  2,759
  2,993
  3,237
  3,490
  3,753
  4,027
  4,311
  4,607
  4,914
  5,233
  5,566
  5,912
  6,272
  6,647
  7,038
  7,446
  7,872
  8,317
  8,781
  9,266
  9,773
  10,303
  10,857
Interest expense (income), $m
  294
  314
  362
  415
  470
  529
  590
  655
  722
  792
  865
  941
  1,020
  1,102
  1,187
  1,276
  1,368
  1,464
  1,563
  1,667
  1,775
  1,887
  2,004
  2,126
  2,253
  2,386
  2,524
  2,669
  2,820
  2,978
  3,143
Earnings before tax, $m
  580
  551
  610
  669
  732
  797
  865
  936
  1,010
  1,087
  1,167
  1,250
  1,336
  1,426
  1,519
  1,616
  1,717
  1,822
  1,931
  2,044
  2,163
  2,286
  2,415
  2,549
  2,689
  2,835
  2,988
  3,148
  3,315
  3,490
  3,673
Tax expense, $m
  205
  149
  165
  181
  198
  215
  234
  253
  273
  293
  315
  337
  361
  385
  410
  436
  464
  492
  521
  552
  584
  617
  652
  688
  726
  766
  807
  850
  895
  942
  992
Net income, $m
  375
  402
  445
  488
  534
  582
  631
  683
  737
  793
  852
  912
  975
  1,041
  1,109
  1,180
  1,253
  1,330
  1,409
  1,492
  1,579
  1,669
  1,763
  1,861
  1,963
  2,070
  2,181
  2,298
  2,420
  2,548
  2,681

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  275
  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
  13,976
  15,432
  17,328
  19,331
  21,440
  23,651
  25,965
  28,381
  30,899
  33,522
  36,250
  39,086
  42,034
  45,097
  48,280
  51,589
  55,029
  58,606
  62,328
  66,202
  70,237
  74,440
  78,822
  83,392
  88,160
  93,138
  98,336
  103,768
  109,445
  115,381
  121,590
Adjusted assets (=assets-cash), $m
  13,701
  15,432
  17,328
  19,331
  21,440
  23,651
  25,965
  28,381
  30,899
  33,522
  36,250
  39,086
  42,034
  45,097
  48,280
  51,589
  55,029
  58,606
  62,328
  66,202
  70,237
  74,440
  78,822
  83,392
  88,160
  93,138
  98,336
  103,768
  109,445
  115,381
  121,590
Revenue / Adjusted assets
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
  0.104
Average production assets, $m
  11,428
  12,926
  14,514
  16,192
  17,958
  19,810
  21,748
  23,772
  25,882
  28,078
  30,363
  32,739
  35,208
  37,774
  40,440
  43,212
  46,093
  49,089
  52,207
  55,452
  58,831
  62,352
  66,023
  69,850
  73,844
  78,014
  82,368
  86,917
  91,673
  96,645
  101,846
Working capital, $m
  0
  -311
  -350
  -390
  -433
  -477
  -524
  -573
  -623
  -676
  -731
  -789
  -848
  -910
  -974
  -1,041
  -1,110
  -1,182
  -1,258
  -1,336
  -1,417
  -1,502
  -1,590
  -1,683
  -1,779
  -1,879
  -1,984
  -2,094
  -2,208
  -2,328
  -2,453
Total debt, $m
  8,714
  10,049
  11,515
  13,063
  14,693
  16,402
  18,191
  20,058
  22,005
  24,032
  26,141
  28,333
  30,612
  32,980
  35,441
  37,998
  40,657
  43,422
  46,300
  49,294
  52,413
  55,662
  59,049
  62,582
  66,268
  70,115
  74,134
  78,332
  82,721
  87,309
  92,109
Total liabilities, $m
  10,593
  11,929
  13,395
  14,943
  16,573
  18,282
  20,071
  21,938
  23,885
  25,912
  28,021
  30,213
  32,492
  34,860
  37,321
  39,878
  42,537
  45,302
  48,180
  51,174
  54,293
  57,542
  60,929
  64,462
  68,148
  71,995
  76,014
  80,212
  84,601
  89,189
  93,989
Total equity, $m
  3,382
  3,503
  3,933
  4,388
  4,867
  5,369
  5,894
  6,442
  7,014
  7,609
  8,229
  8,872
  9,542
  10,237
  10,960
  11,711
  12,492
  13,304
  14,148
  15,028
  15,944
  16,898
  17,893
  18,930
  20,012
  21,142
  22,322
  23,555
  24,844
  26,191
  27,601
Total liabilities and equity, $m
  13,975
  15,432
  17,328
  19,331
  21,440
  23,651
  25,965
  28,380
  30,899
  33,521
  36,250
  39,085
  42,034
  45,097
  48,281
  51,589
  55,029
  58,606
  62,328
  66,202
  70,237
  74,440
  78,822
  83,392
  88,160
  93,137
  98,336
  103,767
  109,445
  115,380
  121,590
Debt-to-equity ratio
  2.577
  2.870
  2.930
  2.980
  3.020
  3.060
  3.090
  3.110
  3.140
  3.160
  3.180
  3.190
  3.210
  3.220
  3.230
  3.240
  3.250
  3.260
  3.270
  3.280
  3.290
  3.290
  3.300
  3.310
  3.310
  3.320
  3.320
  3.330
  3.330
  3.330
  3.340
Adjusted equity ratio
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227
  0.227

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  375
  402
  445
  488
  534
  582
  631
  683
  737
  793
  852
  912
  975
  1,041
  1,109
  1,180
  1,253
  1,330
  1,409
  1,492
  1,579
  1,669
  1,763
  1,861
  1,963
  2,070
  2,181
  2,298
  2,420
  2,548
  2,681
Depreciation, amort., depletion, $m
  453
  513
  576
  643
  713
  786
  863
  943
  1,027
  1,114
  1,205
  1,299
  1,397
  1,499
  1,605
  1,715
  1,829
  1,948
  2,072
  2,200
  2,335
  2,474
  2,620
  2,772
  2,930
  3,096
  3,269
  3,449
  3,638
  3,835
  4,042
Funds from operations, $m
  1,021
  915
  1,021
  1,131
  1,247
  1,368
  1,494
  1,627
  1,764
  1,908
  2,057
  2,212
  2,373
  2,540
  2,714
  2,894
  3,082
  3,278
  3,481
  3,693
  3,913
  4,143
  4,383
  4,632
  4,893
  5,166
  5,450
  5,747
  6,058
  6,383
  6,723
Change in working capital, $m
  1
  -36
  -38
  -40
  -43
  -45
  -47
  -49
  -51
  -53
  -55
  -57
  -59
  -62
  -64
  -67
  -69
  -72
  -75
  -78
  -81
  -85
  -88
  -92
  -96
  -100
  -105
  -110
  -115
  -120
  -125
Cash from operations, $m
  1,020
  1,565
  1,059
  1,171
  1,289
  1,412
  1,541
  1,675
  1,815
  1,961
  2,112
  2,269
  2,432
  2,602
  2,778
  2,961
  3,152
  3,350
  3,556
  3,771
  3,995
  4,228
  4,471
  4,725
  4,989
  5,266
  5,555
  5,857
  6,172
  6,502
  6,848
Maintenance CAPEX, $m
  0
  -453
  -513
  -576
  -643
  -713
  -786
  -863
  -943
  -1,027
  -1,114
  -1,205
  -1,299
  -1,397
  -1,499
  -1,605
  -1,715
  -1,829
  -1,948
  -2,072
  -2,200
  -2,335
  -2,474
  -2,620
  -2,772
  -2,930
  -3,096
  -3,269
  -3,449
  -3,638
  -3,835
New CAPEX, $m
  -2,125
  -1,498
  -1,589
  -1,678
  -1,766
  -1,852
  -1,938
  -2,024
  -2,110
  -2,197
  -2,285
  -2,376
  -2,469
  -2,566
  -2,666
  -2,771
  -2,881
  -2,996
  -3,118
  -3,245
  -3,379
  -3,521
  -3,670
  -3,828
  -3,994
  -4,169
  -4,354
  -4,549
  -4,755
  -4,972
  -5,201
Cash from investing activities, $m
  -2,006
  -1,951
  -2,102
  -2,254
  -2,409
  -2,565
  -2,724
  -2,887
  -3,053
  -3,224
  -3,399
  -3,581
  -3,768
  -3,963
  -4,165
  -4,376
  -4,596
  -4,825
  -5,066
  -5,317
  -5,579
  -5,856
  -6,144
  -6,448
  -6,766
  -7,099
  -7,450
  -7,818
  -8,204
  -8,610
  -9,036
Free cash flow, $m
  -986
  -386
  -1,042
  -1,083
  -1,119
  -1,152
  -1,183
  -1,211
  -1,238
  -1,263
  -1,288
  -1,312
  -1,336
  -1,361
  -1,387
  -1,415
  -1,444
  -1,476
  -1,509
  -1,546
  -1,585
  -1,628
  -1,674
  -1,723
  -1,776
  -1,834
  -1,895
  -1,961
  -2,032
  -2,108
  -2,188
Issuance/(repayment) of debt, $m
  974
  1,335
  1,466
  1,549
  1,630
  1,709
  1,789
  1,868
  1,947
  2,027
  2,109
  2,192
  2,279
  2,368
  2,461
  2,558
  2,659
  2,765
  2,877
  2,995
  3,119
  3,249
  3,387
  3,532
  3,686
  3,848
  4,018
  4,199
  4,388
  4,589
  4,800
Issuance/(repurchase) of shares, $m
  0
  0
  7
  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  
  1,125
  1,335
  1,473
  1,549
  1,630
  1,709
  1,789
  1,868
  1,947
  2,027
  2,109
  2,192
  2,279
  2,368
  2,461
  2,558
  2,659
  2,765
  2,877
  2,995
  3,119
  3,249
  3,387
  3,532
  3,686
  3,848
  4,018
  4,199
  4,388
  4,589
  4,800
Total cash flow (excl. dividends), $m
  139
  949
  424
  466
  510
  557
  606
  656
  709
  764
  821
  881
  942
  1,007
  1,073
  1,143
  1,215
  1,290
  1,368
  1,449
  1,534
  1,622
  1,714
  1,809
  1,910
  2,014
  2,123
  2,237
  2,356
  2,481
  2,612
Retained Cash Flow (-), $m
  -362
  -396
  -431
  -455
  -479
  -502
  -525
  -548
  -572
  -595
  -619
  -644
  -669
  -695
  -723
  -751
  -781
  -812
  -845
  -879
  -916
  -954
  -995
  -1,037
  -1,082
  -1,130
  -1,180
  -1,233
  -1,289
  -1,348
  -1,409
Prev. year cash balance distribution, $m
 
  275
  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
 
  828
  0
  11
  32
  55
  80
  108
  137
  169
  202
  237
  273
  311
  351
  392
  434
  478
  523
  569
  618
  667
  719
  772
  827
  884
  943
  1,004
  1,068
  1,134
  1,202
Discount rate, %
 
  10.60
  11.13
  11.69
  12.27
  12.88
  13.53
  14.21
  14.92
  15.66
  16.44
  17.27
  18.13
  19.04
  19.99
  20.99
  22.04
  23.14
  24.30
  25.51
  26.79
  28.12
  29.53
  31.01
  32.56
  34.19
  35.90
  37.69
  39.57
  41.55
  43.63
PV of cash for distribution, $m
 
  749
  0
  8
  20
  30
  38
  43
  45
  46
  44
  41
  37
  32
  27
  22
  18
  14
  10
  8
  5
  4
  2
  2
  1
  1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  100.0
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines in Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa, and North America. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2016, the company owned a fleet of 237 aircraft, including 188 single-aisle narrowbody jet aircraft and 49 twin-aisle widebody jet aircraft. Air Lease Corporation was founded in 2010 and is based in Los Angeles, California.

FINANCIAL RATIOS  of  Air Lease (AL)

Valuation Ratios
P/E Ratio 10.4
Price to Sales 2.7
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 3.8
Price to Free Cash Flow -3.5
Growth Rates
Sales Growth Rate 16%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -7.9%
Cap. Spend. - 3 Yr. Gr. Rate 7.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 257.7%
Total Debt to Equity 257.7%
Interest Coverage 3
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 4%
Return On Total Capital 3.3%
Ret/ On T. Cap. - 3 Yr. Avg. 2.9%
Return On Equity 11.7%
Return On Equity - 3 Yr. Avg. 10%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 93.5%
EBITDA Margin - 3 Yr. Avg. 89.8%
Operating Margin 61%
Oper. Margin - 3 Yr. Avg. 57.8%
Pre-Tax Margin 40.9%
Pre-Tax Margin - 3 Yr. Avg. 36.9%
Net Profit Margin 26.4%
Net Profit Margin - 3 Yr. Avg. 23.8%
Effective Tax Rate 35.3%
Eff/ Tax Rate - 3 Yr. Avg. 35.4%
Payout Ratio 5.6%

AL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AL stock intrinsic value calculation we used $1419 million for the last fiscal year's total revenue generated by Air Lease. The default revenue input number comes from 2016 income statement of Air Lease. 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 AL stock valuation model: a) initial revenue growth rate of 13.1% 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 10.6%, whose default value for AL is calculated based on our internal credit rating of Air Lease, 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 Air Lease.
    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 AL stock the variable cost ratio is equal to 46.1%.

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 AL 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 Air Lease.

Corporate tax rate of 27% is the nominal tax rate for Air Lease. 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 AL 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 AL are equal to 805.4%.

Life of production assets of 25.2 years is the average useful life of capital assets used in Air Lease 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 AL is equal to -19.4%. 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 - $3382 million for Air Lease - 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 102.71 million for Air Lease 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 Air Lease at the current share price and the inputted number of shares is $3.9 billion.


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COMPANY NEWS

▶ Air Lease Corp. Value Analysis (NYSE:AL) : April 28, 2017   [Apr-28-17 04:35PM  Capital Cube]
▶ Which Stocks Benefit As Air Carriers Trend Toward Lease Vs. Own?   [Apr-27-17 05:16PM  Investor's Business Daily]
▶ 2 Asset Classes That Are Arguably Still Cheap   [Mar-24-17 01:13PM  Motley Fool]
▶ 2 Asset Classes That Are Arguably Still Cheap   [01:13PM  at Motley Fool]
▶ How Much Does a Boeing 737 Cost?   [Mar-13-17 10:30AM  24/7 Wall St.]
▶ Boeing Shops New Midrange Aircraft Design To Potential Customers   [Mar-08-17 04:06PM  Investor's Business Daily]
▶ Three Value Stocks With Turnaround Potential In 2017   [Feb-01-17 06:12PM  at Forbes]
▶ Hedge Funds Are Torn On Air Lease Corp (AL)   [Dec-01-16 04:44PM  at Insider Monkey]
▶ 3 Cheap Growth Stocks You Can Buy Right Now   [Sep-23-16 03:02PM  at Motley Fool]
Stock chart of AL Financial statements of AL
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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