Intrinsic value of Apple Hospitality REIT - APLE

Previous Close

$19.31

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$19.31

 
Intrinsic value

$3.94

 
Up/down potential

-80%

 
Rating

str. sell

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying
Our model is not good at valuating stocks of financial companies, such as APLE.

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

We calculate the intrinsic value of APLE 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 4.3

 

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, %
  15.92
  32.40
  29.66
  27.19
  24.97
  22.98
  21.18
  19.56
  18.11
  16.79
  15.62
  14.55
  13.60
  12.74
  11.96
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
Revenue, $m
  1,041
  1,378
  1,787
  2,273
  2,841
  3,493
  4,233
  5,061
  5,978
  6,982
  8,072
  9,247
  10,504
  11,842
  13,259
  14,753
  16,323
  17,968
  19,688
  21,482
  23,351
  25,297
  27,320
  29,423
  31,609
  33,880
  36,240
  38,694
  41,245
  43,899
  46,660
Variable operating expenses, $m
 
  906
  1,174
  1,493
  1,866
  2,295
  2,781
  3,325
  3,927
  4,587
  5,303
  6,075
  6,901
  7,780
  8,711
  9,693
  10,724
  11,805
  12,935
  14,114
  15,342
  16,620
  17,949
  19,331
  20,767
  22,259
  23,810
  25,422
  27,098
  28,842
  30,656
Fixed operating expenses, $m
 
  180
  185
  190
  194
  199
  204
  209
  214
  220
  225
  231
  237
  243
  249
  255
  261
  268
  274
  281
  288
  296
  303
  311
  318
  326
  334
  343
  351
  360
  369
Total operating expenses, $m
  856
  1,086
  1,359
  1,683
  2,060
  2,494
  2,985
  3,534
  4,141
  4,807
  5,528
  6,306
  7,138
  8,023
  8,960
  9,948
  10,985
  12,073
  13,209
  14,395
  15,630
  16,916
  18,252
  19,642
  21,085
  22,585
  24,144
  25,765
  27,449
  29,202
  31,025
Operating income, $m
  185
  292
  428
  590
  780
  999
  1,248
  1,527
  1,836
  2,175
  2,543
  2,941
  3,366
  3,819
  4,299
  4,806
  5,338
  5,895
  6,478
  7,087
  7,721
  8,381
  9,068
  9,781
  10,523
  11,295
  12,096
  12,929
  13,796
  14,697
  15,635
EBITDA, $m
  333
  488
  682
  913
  1,184
  1,496
  1,850
  2,246
  2,686
  3,168
  3,691
  4,255
  4,860
  5,503
  6,184
  6,903
  7,658
  8,450
  9,277
  10,141
  11,041
  11,977
  12,952
  13,964
  15,017
  16,111
  17,248
  18,430
  19,659
  20,938
  22,269
Interest expense (income), $m
  42
  48
  65
  86
  111
  139
  172
  210
  252
  298
  349
  404
  464
  527
  595
  667
  743
  822
  905
  993
  1,083
  1,178
  1,277
  1,379
  1,486
  1,596
  1,711
  1,831
  1,955
  2,084
  2,219
Earnings before tax, $m
  145
  244
  363
  504
  669
  860
  1,076
  1,317
  1,584
  1,877
  2,194
  2,536
  2,903
  3,292
  3,704
  4,139
  4,595
  5,073
  5,573
  6,094
  6,638
  7,203
  7,791
  8,402
  9,038
  9,698
  10,385
  11,098
  11,841
  12,613
  13,417
Tax expense, $m
  0
  66
  98
  136
  181
  232
  290
  356
  428
  507
  592
  685
  784
  889
  1,000
  1,117
  1,241
  1,370
  1,505
  1,645
  1,792
  1,945
  2,104
  2,269
  2,440
  2,619
  2,804
  2,997
  3,197
  3,405
  3,623
Net income, $m
  145
  178
  265
  368
  489
  628
  785
  961
  1,156
  1,370
  1,602
  1,852
  2,119
  2,403
  2,704
  3,021
  3,354
  3,703
  4,068
  4,449
  4,845
  5,258
  5,688
  6,134
  6,598
  7,080
  7,581
  8,102
  8,644
  9,207
  9,794

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  4,980
  6,595
  8,551
  10,876
  13,592
  16,715
  20,255
  24,218
  28,602
  33,406
  38,622
  44,243
  50,260
  56,662
  63,442
  70,591
  78,102
  85,973
  94,200
  102,784
  111,728
  121,036
  130,717
  140,780
  151,237
  162,105
  173,399
  185,138
  197,345
  210,042
  223,255
Adjusted assets (=assets-cash), $m
  4,980
  6,595
  8,551
  10,876
  13,592
  16,715
  20,255
  24,218
  28,602
  33,406
  38,622
  44,243
  50,260
  56,662
  63,442
  70,591
  78,102
  85,973
  94,200
  102,784
  111,728
  121,036
  130,717
  140,780
  151,237
  162,105
  173,399
  185,138
  197,345
  210,042
  223,255
Revenue / Adjusted assets
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
  0.209
Average production assets, $m
  4,233
  5,604
  7,266
  9,242
  11,550
  14,204
  17,213
  20,580
  24,306
  28,388
  32,821
  37,598
  42,711
  48,151
  53,912
  59,987
  66,371
  73,059
  80,051
  87,345
  94,946
  102,856
  111,082
  119,634
  128,521
  137,756
  147,353
  157,329
  167,703
  178,492
  189,721
Working capital, $m
  0
  357
  463
  589
  736
  905
  1,096
  1,311
  1,548
  1,808
  2,091
  2,395
  2,721
  3,067
  3,434
  3,821
  4,228
  4,654
  5,099
  5,564
  6,048
  6,552
  7,076
  7,621
  8,187
  8,775
  9,386
  10,022
  10,682
  11,370
  12,085
Total debt, $m
  1,338
  1,814
  2,389
  3,073
  3,871
  4,789
  5,830
  6,995
  8,284
  9,696
  11,230
  12,883
  14,651
  16,534
  18,527
  20,629
  22,837
  25,151
  27,570
  30,094
  32,723
  35,460
  38,306
  41,264
  44,339
  47,534
  50,854
  54,306
  57,894
  61,627
  65,512
Total liabilities, $m
  1,463
  1,939
  2,514
  3,198
  3,996
  4,914
  5,955
  7,120
  8,409
  9,821
  11,355
  13,008
  14,776
  16,659
  18,652
  20,754
  22,962
  25,276
  27,695
  30,219
  32,848
  35,585
  38,431
  41,389
  44,464
  47,659
  50,979
  54,431
  58,019
  61,752
  65,637
Total equity, $m
  3,517
  4,656
  6,037
  7,678
  9,596
  11,801
  14,300
  17,098
  20,193
  23,585
  27,267
  31,236
  35,483
  40,004
  44,790
  49,837
  55,140
  60,697
  66,505
  72,566
  78,880
  85,452
  92,286
  99,390
  106,774
  114,446
  122,419
  130,708
  139,326
  148,290
  157,618
Total liabilities and equity, $m
  4,980
  6,595
  8,551
  10,876
  13,592
  16,715
  20,255
  24,218
  28,602
  33,406
  38,622
  44,244
  50,259
  56,663
  63,442
  70,591
  78,102
  85,973
  94,200
  102,785
  111,728
  121,037
  130,717
  140,779
  151,238
  162,105
  173,398
  185,139
  197,345
  210,042
  223,255
Debt-to-equity ratio
  0.380
  0.390
  0.400
  0.400
  0.400
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.410
  0.420
  0.420
  0.420
  0.420
  0.420
  0.420
  0.420
  0.420
  0.420
Adjusted equity ratio
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  145
  178
  265
  368
  489
  628
  785
  961
  1,156
  1,370
  1,602
  1,852
  2,119
  2,403
  2,704
  3,021
  3,354
  3,703
  4,068
  4,449
  4,845
  5,258
  5,688
  6,134
  6,598
  7,080
  7,581
  8,102
  8,644
  9,207
  9,794
Depreciation, amort., depletion, $m
  148
  196
  254
  323
  404
  497
  602
  720
  850
  993
  1,148
  1,315
  1,493
  1,684
  1,885
  2,097
  2,321
  2,555
  2,799
  3,054
  3,320
  3,596
  3,884
  4,183
  4,494
  4,817
  5,152
  5,501
  5,864
  6,241
  6,634
Funds from operations, $m
  359
  374
  519
  691
  893
  1,124
  1,387
  1,681
  2,006
  2,363
  2,749
  3,166
  3,612
  4,087
  4,589
  5,119
  5,675
  6,258
  6,867
  7,503
  8,165
  8,855
  9,572
  10,317
  11,091
  11,896
  12,733
  13,603
  14,507
  15,448
  16,428
Change in working capital, $m
  27
  87
  106
  126
  147
  169
  192
  214
  237
  260
  282
  304
  326
  347
  367
  387
  407
  426
  445
  465
  484
  504
  524
  545
  566
  588
  611
  635
  661
  687
  715
Cash from operations, $m
  332
  877
  413
  565
  746
  955
  1,195
  1,467
  1,769
  2,103
  2,467
  2,862
  3,287
  3,740
  4,222
  4,732
  5,268
  5,832
  6,422
  7,038
  7,681
  8,351
  9,048
  9,772
  10,525
  11,308
  12,122
  12,967
  13,847
  14,761
  15,713
Maintenance CAPEX, $m
  0
  -148
  -196
  -254
  -323
  -404
  -497
  -602
  -720
  -850
  -993
  -1,148
  -1,315
  -1,493
  -1,684
  -1,885
  -2,097
  -2,321
  -2,555
  -2,799
  -3,054
  -3,320
  -3,596
  -3,884
  -4,183
  -4,494
  -4,817
  -5,152
  -5,501
  -5,864
  -6,241
New CAPEX, $m
  -183
  -1,372
  -1,662
  -1,976
  -2,308
  -2,654
  -3,008
  -3,367
  -3,726
  -4,082
  -4,433
  -4,777
  -5,113
  -5,441
  -5,761
  -6,075
  -6,384
  -6,688
  -6,991
  -7,295
  -7,600
  -7,910
  -8,226
  -8,551
  -8,887
  -9,235
  -9,597
  -9,976
  -10,373
  -10,790
  -11,228
Cash from investing activities, $m
  -170
  -1,520
  -1,858
  -2,230
  -2,631
  -3,058
  -3,505
  -3,969
  -4,446
  -4,932
  -5,426
  -5,925
  -6,428
  -6,934
  -7,445
  -7,960
  -8,481
  -9,009
  -9,546
  -10,094
  -10,654
  -11,230
  -11,822
  -12,435
  -13,070
  -13,729
  -14,414
  -15,128
  -15,874
  -16,654
  -17,469
Free cash flow, $m
  162
  -642
  -1,445
  -1,665
  -1,886
  -2,103
  -2,310
  -2,502
  -2,677
  -2,829
  -2,958
  -3,062
  -3,141
  -3,194
  -3,223
  -3,228
  -3,213
  -3,177
  -3,124
  -3,055
  -2,973
  -2,879
  -2,775
  -2,663
  -2,545
  -2,421
  -2,292
  -2,161
  -2,028
  -1,893
  -1,757
Issuance/(repayment) of debt, $m
  80
  476
  575
  684
  799
  918
  1,041
  1,165
  1,289
  1,412
  1,534
  1,653
  1,769
  1,882
  1,993
  2,102
  2,208
  2,314
  2,419
  2,524
  2,629
  2,737
  2,846
  2,959
  3,075
  3,195
  3,320
  3,451
  3,589
  3,733
  3,885
Issuance/(repurchase) of shares, $m
  -9
  1,305
  2,251
  2,623
  3,005
  3,389
  3,768
  4,135
  4,483
  4,809
  5,108
  5,378
  5,620
  5,832
  6,016
  6,174
  6,307
  6,420
  6,514
  6,592
  6,658
  6,714
  6,764
  6,809
  6,853
  6,898
  6,945
  6,998
  7,057
  7,124
  7,200
Cash from financing (excl. dividends), $m  
  67
  1,781
  2,826
  3,307
  3,804
  4,307
  4,809
  5,300
  5,772
  6,221
  6,642
  7,031
  7,389
  7,714
  8,009
  8,276
  8,515
  8,734
  8,933
  9,116
  9,287
  9,451
  9,610
  9,768
  9,928
  10,093
  10,265
  10,449
  10,646
  10,857
  11,085
Total cash flow (excl. dividends), $m
  229
  -166
  -870
  -981
  -1,087
  -1,184
  -1,269
  -1,338
  -1,388
  -1,417
  -1,425
  -1,410
  -1,372
  -1,312
  -1,230
  -1,127
  -1,004
  -863
  -705
  -532
  -344
  -143
  71
  295
  530
  774
  1,028
  1,290
  1,561
  1,840
  2,128
Retained Cash Flow (-), $m
  -870
  -1,139
  -1,381
  -1,642
  -1,918
  -2,205
  -2,499
  -2,797
  -3,096
  -3,391
  -3,683
  -3,968
  -4,248
  -4,520
  -4,786
  -5,047
  -5,303
  -5,557
  -5,808
  -6,060
  -6,314
  -6,572
  -6,834
  -7,104
  -7,383
  -7,672
  -7,973
  -8,288
  -8,618
  -8,964
  -9,328
Prev. year cash balance 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
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, %
 
  6.20
  6.51
  6.84
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.04
  20.00
  21.00
  22.05
  23.15
  24.30
  25.52
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
  76.7
  55.0
  40.6
  30.8
  23.9
  18.9
  15.3
  12.6
  10.6
  9.0
  7.7
  6.7
  5.9
  5.3
  4.8
  4.3
  3.9
  3.6
  3.4
  3.1
  2.9
  2.7
  2.6
  2.4
  2.3
  2.2
  2.1
  2.0
  1.9
  1.9

Apple Hospitality REIT, Inc. is a publicly owned real estate investment trust. It invests in the real estate markets of United States. The firm invests primarily in the lodging industry. It is focused on the acquisition and ownership of income-producing real estate. The firm was formerly known as Apple REIT Nine, Inc. Apple Hospitality REIT, Inc. was founded on November 9, 2007 and is based in Richmond, Virginia. Apple Hospitality REIT, Inc. operates as a subsidiary of Apple REIT Companies.

FINANCIAL RATIOS  of  Apple Hospitality REIT (APLE)

Valuation Ratios
P/E Ratio 29.7
Price to Sales 4.1
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 13
Price to Free Cash Flow 28.9
Growth Rates
Sales Growth Rate 15.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -38%
Cap. Spend. - 3 Yr. Gr. Rate 43.6%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 30.4%
Total Debt to Equity 38%
Interest Coverage 4
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 3.2%
Return On Total Capital 3.4%
Ret/ On T. Cap. - 3 Yr. Avg. 2.3%
Return On Equity 4.7%
Return On Equity - 3 Yr. Avg. 3.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 54.9%
Gross Margin - 3 Yr. Avg. 54.6%
EBITDA Margin 32.2%
EBITDA Margin - 3 Yr. Avg. 27.4%
Operating Margin 17.8%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 13.9%
Pre-Tax Margin - 3 Yr. Avg. 9.4%
Net Profit Margin 13.9%
Net Profit Margin - 3 Yr. Avg. 9.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 7.7%
Payout Ratio 157.9%

APLE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the APLE stock intrinsic value calculation we used $1041 million for the last fiscal year's total revenue generated by Apple Hospitality REIT. The default revenue input number comes from 2016 income statement of Apple Hospitality REIT. 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 APLE stock valuation model: a) initial revenue growth rate of 32.4% 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 6.2%, whose default value for APLE is calculated based on our internal credit rating of Apple Hospitality REIT, 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 Apple Hospitality REIT.
    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 APLE stock the variable cost ratio is equal to 65.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $176 million in the base year in the intrinsic value calculation for APLE 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 Apple Hospitality REIT.

Corporate tax rate of 27% is the nominal tax rate for Apple Hospitality REIT. 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 APLE 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 APLE are equal to 406.6%.

Life of production assets of 28.6 years is the average useful life of capital assets used in Apple Hospitality REIT 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 APLE is equal to 25.9%. 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 - $3517 million for Apple Hospitality REIT - 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 223.037 million for Apple Hospitality REIT 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 Apple Hospitality REIT at the current share price and the inputted number of shares is $4.3 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
SOHO Sotherly Hotel 6.54 4.06  sell
SHO Sunstone Hotel 15.78 2.78  str.sell
FCH Felcor Lodging 8.00 0.40  str.sell
CLDT Chatham Lodgin 19.86 5.65  str.sell
HPT Hospitality Pr 32.31 4.74  str.sell
CHSP Chesapeake Lod 24.41 4.88  str.sell
INN Summit Hotel P 17.20 3.79  str.sell
AHT Ashford Hospit 6.44 19.69  str.buy
RLJ RLJ Lodging Tr 22.43 5.50  str.sell

COMPANY NEWS

▶ Apple Hospitality REIT Announces May 2017 Distribution   [Apr-20-17 09:00AM  Business Wire]
▶ Apple Hospitality Remains a Welcoming Place to Invest   [Apr-05-17 01:00PM  TheStreet.com]
▶ 3 Stocks to Buy with Dividends Yielding More than 5%   [Mar-12-17 09:23AM  Motley Fool]
▶ Apple Hospitality REIT Announces March 2017 Distribution   [Feb-21-17 09:00AM  Business Wire]
▶ 5 Stocks That Cut You a Check Each Month   [Feb-19-17 09:39AM  at Motley Fool]
▶ REIT Risk: The Lodging Sector Series   [Jan-23-17 07:00AM  at Forbes]
▶ Reasons To Be Bullish On Lodging REITs in 2017   [Dec-20-16 09:44AM  at Barrons.com]
▶ This Stock Has a 6.5% Dividend and Room to Grow   [Nov-16-16 01:03PM  at Motley Fool]
▶ Andrew Baird, CPA, Joins Capital Square 1031 as Controller   [Oct-31-16 01:24PM  GlobeNewswire]
▶ 10 Stocks That Pay Monthly Dividends: Are Any Worth Buying?   [Sep-30-16 09:56AM  at Motley Fool]
▶ 2 Great High-Dividend Stocks Youve Never Heard Of   [Sep-17-16 12:13PM  at Motley Fool]
▶ 3 Ignored Dividend Stocks That Crush Realty Income   [Sep-11-16 07:13AM  at Forbes]
▶ 2 REITs That Could Plunge 20% - And 2 To Buy Now   [Aug-14-16 07:19AM  at Forbes]
▶ 3 Overlooked REITs Yielding 6% Or More   [Jul-15-16 10:37AM  at Forbes]
Stock chart of APLE Financial statements of APLE
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.