Intrinsic value of American Homes 4 Rent Cl A - AMH

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$23.33

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$23.33

 
Intrinsic value

$3.97

 
Up/down potential

-83%

 
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 AMH.

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

We calculate the intrinsic value of AMH 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 6.0

 

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, %
  39.30
  31.80
  29.12
  26.71
  24.54
  22.58
  20.83
  19.24
  17.82
  16.54
  15.38
  14.34
  13.41
  12.57
  11.81
  11.13
  10.52
  9.97
  9.47
  9.02
  8.62
  8.26
  7.93
  7.64
  7.38
  7.14
  6.92
  6.73
  6.56
  6.40
  6.26
Revenue, $m
  879
  1,159
  1,496
  1,895
  2,360
  2,894
  3,496
  4,169
  4,912
  5,724
  6,604
  7,552
  8,565
  9,641
  10,780
  11,980
  13,240
  14,559
  15,938
  17,376
  18,874
  20,433
  22,053
  23,738
  25,489
  27,308
  29,199
  31,164
  33,208
  35,334
  37,547
Variable operating expenses, $m
 
  982
  1,265
  1,599
  1,989
  2,435
  2,939
  3,503
  4,125
  4,805
  5,542
  6,324
  7,172
  8,073
  9,027
  10,031
  11,086
  12,191
  13,346
  14,550
  15,804
  17,109
  18,466
  19,877
  21,343
  22,866
  24,450
  26,095
  27,807
  29,587
  31,440
Fixed operating expenses, $m
 
  146
  149
  153
  157
  161
  165
  169
  173
  177
  182
  186
  191
  196
  201
  206
  211
  216
  221
  227
  233
  239
  244
  251
  257
  263
  270
  277
  284
  291
  298
Total operating expenses, $m
  887
  1,128
  1,414
  1,752
  2,146
  2,596
  3,104
  3,672
  4,298
  4,982
  5,724
  6,510
  7,363
  8,269
  9,228
  10,237
  11,297
  12,407
  13,567
  14,777
  16,037
  17,348
  18,710
  20,128
  21,600
  23,129
  24,720
  26,372
  28,091
  29,878
  31,738
Operating income, $m
  -9
  31
  82
  143
  215
  298
  392
  497
  614
  742
  880
  1,042
  1,202
  1,372
  1,553
  1,743
  1,943
  2,152
  2,371
  2,599
  2,837
  3,085
  3,343
  3,610
  3,889
  4,178
  4,479
  4,792
  5,118
  5,457
  5,809
EBITDA, $m
  290
  430
  594
  788
  1,015
  1,276
  1,571
  1,901
  2,266
  2,665
  3,098
  3,564
  4,062
  4,592
  5,152
  5,743
  6,363
  7,013
  7,693
  8,401
  9,139
  9,907
  10,706
  11,537
  12,400
  13,297
  14,229
  15,198
  16,206
  17,255
  18,346
Interest expense (income), $m
  116
  126
  179
  244
  320
  410
  512
  627
  756
  898
  1,054
  1,222
  1,404
  1,598
  1,804
  2,022
  2,252
  2,493
  2,746
  3,010
  3,286
  3,573
  3,871
  4,182
  4,504
  4,840
  5,188
  5,550
  5,927
  6,318
  6,726
Earnings before tax, $m
  10
  -95
  -97
  -101
  -105
  -112
  -120
  -130
  -142
  -157
  -173
  -180
  -202
  -226
  -251
  -279
  -309
  -341
  -375
  -411
  -448
  -488
  -529
  -571
  -615
  -661
  -709
  -758
  -809
  -862
  -916
Tax expense, $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
Net income, $m
  7
  -95
  -97
  -101
  -105
  -112
  -120
  -130
  -142
  -157
  -173
  -180
  -202
  -226
  -251
  -279
  -309
  -341
  -375
  -411
  -448
  -488
  -529
  -571
  -615
  -661
  -709
  -758
  -809
  -862
  -916

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  119
  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
  8,107
  10,532
  13,599
  17,231
  21,459
  26,305
  31,783
  37,899
  44,652
  52,036
  60,041
  68,653
  77,860
  87,646
  97,999
  108,907
  120,362
  132,357
  144,891
  157,964
  171,581
  185,750
  200,485
  215,800
  231,716
  248,255
  265,444
  283,313
  301,894
  321,222
  341,338
Adjusted assets (=assets-cash), $m
  7,988
  10,532
  13,599
  17,231
  21,459
  26,305
  31,783
  37,899
  44,652
  52,036
  60,041
  68,653
  77,860
  87,646
  97,999
  108,907
  120,362
  132,357
  144,891
  157,964
  171,581
  185,750
  200,485
  215,800
  231,716
  248,255
  265,444
  283,313
  301,894
  321,222
  341,338
Revenue / Adjusted assets
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
Average production assets, $m
  6,927
  9,129
  11,788
  14,936
  18,601
  22,801
  27,550
  32,851
  38,704
  45,105
  52,043
  59,509
  67,489
  75,972
  84,945
  94,401
  104,330
  114,727
  125,591
  136,923
  148,726
  161,008
  173,780
  187,055
  200,851
  215,187
  230,087
  245,575
  261,681
  278,436
  295,872
Working capital, $m
  0
  -156
  -202
  -256
  -319
  -391
  -472
  -563
  -663
  -773
  -892
  -1,020
  -1,156
  -1,302
  -1,455
  -1,617
  -1,787
  -1,966
  -2,152
  -2,346
  -2,548
  -2,758
  -2,977
  -3,205
  -3,441
  -3,687
  -3,942
  -4,207
  -4,483
  -4,770
  -5,069
Total debt, $m
  2,923
  4,170
  5,672
  7,452
  9,524
  11,899
  14,583
  17,580
  20,889
  24,507
  28,429
  32,649
  37,160
  41,956
  47,028
  52,373
  57,986
  63,864
  70,005
  76,411
  83,083
  90,027
  97,246
  104,751
  112,550
  120,654
  129,077
  137,832
  146,937
  156,408
  166,265
Total liabilities, $m
  3,914
  5,161
  6,663
  8,443
  10,515
  12,890
  15,574
  18,571
  21,880
  25,498
  29,420
  33,640
  38,151
  42,947
  48,019
  53,364
  58,977
  64,855
  70,996
  77,402
  84,074
  91,018
  98,237
  105,742
  113,541
  121,645
  130,068
  138,823
  147,928
  157,399
  167,256
Total equity, $m
  4,193
  5,371
  6,935
  8,788
  10,944
  13,416
  16,209
  19,329
  22,773
  26,538
  30,621
  35,013
  39,708
  44,699
  49,979
  55,543
  61,385
  67,502
  73,894
  80,561
  87,506
  94,733
  102,247
  110,058
  118,175
  126,610
  135,377
  144,489
  153,966
  163,823
  174,083
Total liabilities and equity, $m
  8,107
  10,532
  13,598
  17,231
  21,459
  26,306
  31,783
  37,900
  44,653
  52,036
  60,041
  68,653
  77,859
  87,646
  97,998
  108,907
  120,362
  132,357
  144,890
  157,963
  171,580
  185,751
  200,484
  215,800
  231,716
  248,255
  265,445
  283,312
  301,894
  321,222
  341,339
Debt-to-equity ratio
  0.697
  0.780
  0.820
  0.850
  0.870
  0.890
  0.900
  0.910
  0.920
  0.920
  0.930
  0.930
  0.940
  0.940
  0.940
  0.940
  0.940
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.960
Adjusted equity ratio
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  7
  -95
  -97
  -101
  -105
  -112
  -120
  -130
  -142
  -157
  -173
  -180
  -202
  -226
  -251
  -279
  -309
  -341
  -375
  -411
  -448
  -488
  -529
  -571
  -615
  -661
  -709
  -758
  -809
  -862
  -916
Depreciation, amort., depletion, $m
  299
  399
  511
  645
  800
  978
  1,179
  1,404
  1,652
  1,923
  2,217
  2,522
  2,860
  3,219
  3,599
  4,000
  4,421
  4,861
  5,322
  5,802
  6,302
  6,822
  7,364
  7,926
  8,511
  9,118
  9,749
  10,406
  11,088
  11,798
  12,537
Funds from operations, $m
  233
  304
  414
  544
  695
  867
  1,060
  1,274
  1,510
  1,767
  2,044
  2,341
  2,658
  2,994
  3,348
  3,721
  4,111
  4,520
  4,946
  5,391
  5,853
  6,335
  6,835
  7,355
  7,895
  8,457
  9,041
  9,648
  10,279
  10,936
  11,621
Change in working capital, $m
  -46
  -38
  -46
  -54
  -63
  -72
  -81
  -91
  -100
  -110
  -119
  -128
  -137
  -145
  -154
  -162
  -170
  -178
  -186
  -194
  -202
  -210
  -219
  -227
  -236
  -246
  -255
  -265
  -276
  -287
  -299
Cash from operations, $m
  279
  973
  460
  598
  758
  939
  1,141
  1,365
  1,610
  1,876
  2,163
  2,469
  2,795
  3,139
  3,502
  3,883
  4,281
  4,698
  5,133
  5,585
  6,056
  6,545
  7,054
  7,582
  8,132
  8,703
  9,296
  9,913
  10,555
  11,223
  11,919
Maintenance CAPEX, $m
  0
  -293
  -387
  -499
  -633
  -788
  -966
  -1,167
  -1,392
  -1,640
  -1,911
  -2,205
  -2,522
  -2,860
  -3,219
  -3,599
  -4,000
  -4,421
  -4,861
  -5,322
  -5,802
  -6,302
  -6,822
  -7,364
  -7,926
  -8,511
  -9,118
  -9,749
  -10,406
  -11,088
  -11,798
New CAPEX, $m
  -68
  -2,203
  -2,658
  -3,148
  -3,665
  -4,201
  -4,748
  -5,301
  -5,853
  -6,400
  -6,938
  -7,465
  -7,980
  -8,483
  -8,974
  -9,455
  -9,929
  -10,398
  -10,864
  -11,332
  -11,803
  -12,282
  -12,772
  -13,275
  -13,796
  -14,336
  -14,900
  -15,488
  -16,106
  -16,754
  -17,437
Cash from investing activities, $m
  -522
  -2,496
  -3,045
  -3,647
  -4,298
  -4,989
  -5,714
  -6,468
  -7,245
  -8,040
  -8,849
  -9,670
  -10,502
  -11,343
  -12,193
  -13,054
  -13,929
  -14,819
  -15,725
  -16,654
  -17,605
  -18,584
  -19,594
  -20,639
  -21,722
  -22,847
  -24,018
  -25,237
  -26,512
  -27,842
  -29,235
Free cash flow, $m
  -243
  -1,523
  -2,585
  -3,049
  -3,540
  -4,050
  -4,573
  -5,104
  -5,635
  -6,164
  -6,687
  -7,202
  -7,707
  -8,203
  -8,691
  -9,172
  -9,648
  -10,120
  -10,593
  -11,068
  -11,549
  -12,039
  -12,540
  -13,057
  -13,590
  -14,144
  -14,722
  -15,325
  -15,956
  -16,619
  -17,315
Issuance/(repayment) of debt, $m
  -57
  1,247
  1,503
  1,780
  2,072
  2,375
  2,684
  2,997
  3,309
  3,618
  3,922
  4,220
  4,511
  4,795
  5,073
  5,345
  5,613
  5,878
  6,141
  6,406
  6,672
  6,943
  7,220
  7,505
  7,799
  8,104
  8,423
  8,756
  9,105
  9,471
  9,857
Issuance/(repurchase) of shares, $m
  509
  1,455
  2,647
  3,122
  3,625
  4,147
  4,683
  5,226
  5,770
  6,312
  6,847
  7,374
  7,891
  8,399
  8,898
  9,390
  9,877
  10,360
  10,844
  11,330
  11,822
  12,322
  12,835
  13,363
  13,909
  14,475
  15,065
  15,682
  16,328
  17,006
  17,718
Cash from financing (excl. dividends), $m  
  413
  2,702
  4,150
  4,902
  5,697
  6,522
  7,367
  8,223
  9,079
  9,930
  10,769
  11,594
  12,402
  13,194
  13,971
  14,735
  15,490
  16,238
  16,985
  17,736
  18,494
  19,265
  20,055
  20,868
  21,708
  22,579
  23,488
  24,438
  25,433
  26,477
  27,575
Total cash flow (excl. dividends), $m
  169
  -276
  -1,083
  -1,270
  -1,468
  -1,676
  -1,889
  -2,107
  -2,326
  -2,546
  -2,765
  -2,981
  -3,196
  -3,408
  -3,618
  -3,827
  -4,035
  -4,243
  -4,451
  -4,663
  -4,877
  -5,096
  -5,321
  -5,552
  -5,792
  -6,040
  -6,299
  -6,569
  -6,852
  -7,148
  -7,458
Retained Cash Flow (-), $m
  -934
  -1,297
  -1,564
  -1,852
  -2,156
  -2,472
  -2,794
  -3,119
  -3,444
  -3,766
  -4,082
  -4,392
  -4,695
  -4,991
  -5,280
  -5,563
  -5,842
  -6,118
  -6,392
  -6,667
  -6,945
  -7,226
  -7,515
  -7,811
  -8,117
  -8,435
  -8,766
  -9,113
  -9,476
  -9,858
  -10,259
Prev. year cash balance distribution, $m
 
  119
  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
 
  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
Discount rate, %
 
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $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
Current shareholders' claim on cash, %
  100
  80.0
  59.5
  45.2
  35.1
  27.7
  22.3
  18.2
  15.0
  12.6
  10.7
  9.1
  7.9
  6.9
  6.0
  5.3
  4.7
  4.2
  3.8
  3.4
  3.1
  2.8
  2.6
  2.4
  2.2
  2.0
  1.9
  1.7
  1.6
  1.5
  1.4

American Homes 4 Rent is a real estate investment trust. The firm engages in the acquisition, renovation, leasing, and operating single-family home rental properties in the United States. American Homes 4 Rent was founded in 2012 and is based in Malibu, California.

FINANCIAL RATIOS  of  American Homes 4 Rent Cl A (AMH)

Valuation Ratios
P/E Ratio 811.2
Price to Sales 6.5
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 20.4
Price to Free Cash Flow 26.9
Growth Rates
Sales Growth Rate 39.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 151.9%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 69.7%
Total Debt to Equity 69.7%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.7%
Ret/ On Assets - 3 Yr. Avg. 0.5%
Return On Total Capital 0.1%
Ret/ On T. Cap. - 3 Yr. Avg. -0.7%
Return On Equity 0.2%
Return On Equity - 3 Yr. Avg. -1.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 56%
Gross Margin - 3 Yr. Avg. 54%
EBITDA Margin 48.4%
EBITDA Margin - 3 Yr. Avg. 43.7%
Operating Margin -0.9%
Oper. Margin - 3 Yr. Avg. -4.5%
Pre-Tax Margin 1.1%
Pre-Tax Margin - 3 Yr. Avg. -4.9%
Net Profit Margin 0.8%
Net Profit Margin - 3 Yr. Avg. -7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 1257.1%

AMH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AMH stock intrinsic value calculation we used $879 million for the last fiscal year's total revenue generated by American Homes 4 Rent Cl A. The default revenue input number comes from 2016 income statement of American Homes 4 Rent Cl A. 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 AMH stock valuation model: a) initial revenue growth rate of 31.8% 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 7.8%, whose default value for AMH is calculated based on our internal credit rating of American Homes 4 Rent Cl A, 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 American Homes 4 Rent Cl A.
    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 AMH stock the variable cost ratio is equal to 85.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $142 million in the base year in the intrinsic value calculation for AMH 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 4.3% for American Homes 4 Rent Cl A.

Corporate tax rate of 27% is the nominal tax rate for American Homes 4 Rent Cl A. 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 AMH 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 AMH are equal to 788%.

Life of production assets of 23.6 years is the average useful life of capital assets used in American Homes 4 Rent Cl A 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 AMH is equal to -13.5%. 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 - $4193 million for American Homes 4 Rent Cl A - 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 256.533 million for American Homes 4 Rent Cl A 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 American Homes 4 Rent Cl A at the current share price and the inputted number of shares is $6.0 billion.


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Stock chart of AMH Financial statements of AMH
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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