Intrinsic value of Brunswick - BC

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$58.91

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$58.91

 
Intrinsic value

$109.78

 
Up/down potential

+86%

 
Rating

str. buy

 
Value-price divergence* premium content

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

We calculate the intrinsic value of BC 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 5.3

 

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, %
  9.33
  9.80
  9.32
  8.89
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
Revenue, $m
  4,489
  4,929
  5,388
  5,867
  6,366
  6,885
  7,424
  7,985
  8,567
  9,173
  9,802
  10,456
  11,136
  11,844
  12,581
  13,348
  14,147
  14,980
  15,849
  16,756
  17,702
  18,691
  19,723
  20,803
  21,931
  23,112
  24,347
  25,640
  26,994
  28,411
  29,896
Variable operating expenses, $m
 
  3,934
  4,297
  4,675
  5,069
  5,479
  5,905
  6,347
  6,808
  7,286
  7,783
  8,258
  8,795
  9,354
  9,936
  10,542
  11,173
  11,831
  12,517
  13,233
  13,981
  14,762
  15,577
  16,430
  17,321
  18,253
  19,229
  20,250
  21,319
  22,439
  23,611
Fixed operating expenses, $m
 
  518
  531
  544
  557
  571
  586
  600
  615
  631
  646
  663
  679
  696
  714
  731
  750
  768
  788
  807
  828
  848
  869
  891
  913
  936
  960
  984
  1,008
  1,033
  1,059
Total operating expenses, $m
  4,080
  4,452
  4,828
  5,219
  5,626
  6,050
  6,491
  6,947
  7,423
  7,917
  8,429
  8,921
  9,474
  10,050
  10,650
  11,273
  11,923
  12,599
  13,305
  14,040
  14,809
  15,610
  16,446
  17,321
  18,234
  19,189
  20,189
  21,234
  22,327
  23,472
  24,670
Operating income, $m
  409
  477
  561
  648
  739
  835
  934
  1,037
  1,144
  1,256
  1,373
  1,535
  1,662
  1,794
  1,931
  2,075
  2,224
  2,381
  2,544
  2,715
  2,894
  3,081
  3,277
  3,482
  3,697
  3,922
  4,159
  4,406
  4,666
  4,939
  5,226
EBITDA, $m
  513
  589
  679
  773
  872
  974
  1,081
  1,192
  1,308
  1,428
  1,554
  1,685
  1,821
  1,963
  2,111
  2,265
  2,426
  2,595
  2,770
  2,954
  3,147
  3,348
  3,558
  3,779
  4,010
  4,252
  4,506
  4,772
  5,052
  5,345
  5,652
Interest expense (income), $m
  30
  29
  41
  54
  67
  81
  95
  110
  125
  141
  158
  175
  193
  212
  231
  252
  273
  295
  317
  341
  366
  392
  419
  448
  477
  508
  541
  575
  610
  647
  686
Earnings before tax, $m
  390
  448
  519
  594
  672
  754
  839
  927
  1,019
  1,115
  1,215
  1,360
  1,469
  1,582
  1,700
  1,823
  1,952
  2,086
  2,227
  2,374
  2,528
  2,689
  2,858
  3,034
  3,220
  3,414
  3,618
  3,832
  4,056
  4,292
  4,539
Tax expense, $m
  116
  121
  140
  160
  182
  203
  226
  250
  275
  301
  328
  367
  397
  427
  459
  492
  527
  563
  601
  641
  682
  726
  772
  819
  869
  922
  977
  1,035
  1,095
  1,159
  1,226
Net income, $m
  276
  327
  379
  434
  491
  550
  612
  677
  744
  814
  887
  993
  1,072
  1,155
  1,241
  1,331
  1,425
  1,523
  1,626
  1,733
  1,845
  1,963
  2,086
  2,215
  2,350
  2,492
  2,641
  2,797
  2,961
  3,133
  3,314

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  458
  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
  3,285
  3,104
  3,393
  3,695
  4,009
  4,335
  4,675
  5,028
  5,395
  5,776
  6,172
  6,584
  7,013
  7,458
  7,922
  8,405
  8,909
  9,433
  9,981
  10,552
  11,148
  11,770
  12,420
  13,100
  13,811
  14,554
  15,332
  16,146
  16,999
  17,891
  18,826
Adjusted assets (=assets-cash), $m
  2,827
  3,104
  3,393
  3,695
  4,009
  4,335
  4,675
  5,028
  5,395
  5,776
  6,172
  6,584
  7,013
  7,458
  7,922
  8,405
  8,909
  9,433
  9,981
  10,552
  11,148
  11,770
  12,420
  13,100
  13,811
  14,554
  15,332
  16,146
  16,999
  17,891
  18,826
Revenue / Adjusted assets
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
  1.588
Average production assets, $m
  570
  626
  684
  745
  808
  874
  943
  1,014
  1,088
  1,165
  1,245
  1,328
  1,414
  1,504
  1,598
  1,695
  1,797
  1,902
  2,013
  2,128
  2,248
  2,374
  2,505
  2,642
  2,785
  2,935
  3,092
  3,256
  3,428
  3,608
  3,797
Working capital, $m
  724
  301
  329
  358
  388
  420
  453
  487
  523
  560
  598
  638
  679
  722
  767
  814
  863
  914
  967
  1,022
  1,080
  1,140
  1,203
  1,269
  1,338
  1,410
  1,485
  1,564
  1,647
  1,733
  1,824
Total debt, $m
  442
  618
  806
  1,002
  1,207
  1,419
  1,640
  1,870
  2,109
  2,357
  2,615
  2,883
  3,162
  3,452
  3,754
  4,069
  4,397
  4,738
  5,094
  5,466
  5,854
  6,259
  6,683
  7,125
  7,588
  8,072
  8,578
  9,108
  9,663
  10,244
  10,853
Total liabilities, $m
  1,845
  2,021
  2,209
  2,405
  2,610
  2,822
  3,043
  3,273
  3,512
  3,760
  4,018
  4,286
  4,565
  4,855
  5,157
  5,472
  5,800
  6,141
  6,497
  6,869
  7,257
  7,662
  8,086
  8,528
  8,991
  9,475
  9,981
  10,511
  11,066
  11,647
  12,256
Total equity, $m
  1,440
  1,083
  1,184
  1,289
  1,399
  1,513
  1,632
  1,755
  1,883
  2,016
  2,154
  2,298
  2,447
  2,603
  2,765
  2,933
  3,109
  3,292
  3,483
  3,682
  3,890
  4,108
  4,335
  4,572
  4,820
  5,079
  5,351
  5,635
  5,932
  6,244
  6,570
Total liabilities and equity, $m
  3,285
  3,104
  3,393
  3,694
  4,009
  4,335
  4,675
  5,028
  5,395
  5,776
  6,172
  6,584
  7,012
  7,458
  7,922
  8,405
  8,909
  9,433
  9,980
  10,551
  11,147
  11,770
  12,421
  13,100
  13,811
  14,554
  15,332
  16,146
  16,998
  17,891
  18,826
Debt-to-equity ratio
  0.307
  0.570
  0.680
  0.780
  0.860
  0.940
  1.010
  1.070
  1.120
  1.170
  1.210
  1.250
  1.290
  1.330
  1.360
  1.390
  1.410
  1.440
  1.460
  1.480
  1.500
  1.520
  1.540
  1.560
  1.570
  1.590
  1.600
  1.620
  1.630
  1.640
  1.650
Adjusted equity ratio
  0.347
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  276
  327
  379
  434
  491
  550
  612
  677
  744
  814
  887
  993
  1,072
  1,155
  1,241
  1,331
  1,425
  1,523
  1,626
  1,733
  1,845
  1,963
  2,086
  2,215
  2,350
  2,492
  2,641
  2,797
  2,961
  3,133
  3,314
Depreciation, amort., depletion, $m
  104
  112
  118
  125
  132
  140
  147
  155
  164
  172
  181
  149
  159
  169
  180
  190
  202
  214
  226
  239
  253
  267
  281
  297
  313
  330
  347
  366
  385
  405
  427
Funds from operations, $m
  428
  439
  497
  559
  623
  690
  759
  832
  908
  986
  1,068
  1,142
  1,231
  1,324
  1,420
  1,521
  1,627
  1,737
  1,852
  1,972
  2,098
  2,230
  2,367
  2,512
  2,663
  2,822
  2,988
  3,163
  3,346
  3,538
  3,740
Change in working capital, $m
  6
  27
  28
  29
  30
  32
  33
  34
  36
  37
  38
  40
  41
  43
  45
  47
  49
  51
  53
  55
  58
  60
  63
  66
  69
  72
  75
  79
  83
  86
  91
Cash from operations, $m
  422
  525
  469
  530
  593
  658
  727
  798
  872
  949
  1,030
  1,102
  1,190
  1,281
  1,375
  1,475
  1,578
  1,686
  1,799
  1,917
  2,040
  2,169
  2,304
  2,446
  2,594
  2,750
  2,913
  3,084
  3,264
  3,452
  3,650
Maintenance CAPEX, $m
  0
  -64
  -70
  -77
  -84
  -91
  -98
  -106
  -114
  -122
  -131
  -140
  -149
  -159
  -169
  -180
  -190
  -202
  -214
  -226
  -239
  -253
  -267
  -281
  -297
  -313
  -330
  -347
  -366
  -385
  -405
New CAPEX, $m
  -194
  -56
  -58
  -61
  -63
  -66
  -68
  -71
  -74
  -77
  -80
  -83
  -86
  -90
  -94
  -97
  -102
  -106
  -110
  -115
  -120
  -126
  -131
  -137
  -143
  -150
  -157
  -164
  -172
  -180
  -189
Cash from investing activities, $m
  -485
  -120
  -128
  -138
  -147
  -157
  -166
  -177
  -188
  -199
  -211
  -223
  -235
  -249
  -263
  -277
  -292
  -308
  -324
  -341
  -359
  -379
  -398
  -418
  -440
  -463
  -487
  -511
  -538
  -565
  -594
Free cash flow, $m
  -63
  405
  341
  392
  446
  501
  560
  621
  684
  750
  819
  879
  954
  1,032
  1,113
  1,198
  1,286
  1,378
  1,475
  1,575
  1,681
  1,791
  1,907
  2,028
  2,154
  2,287
  2,426
  2,573
  2,726
  2,887
  3,056
Issuance/(repayment) of debt, $m
  -2
  182
  188
  196
  204
  213
  221
  230
  239
  248
  258
  268
  279
  290
  302
  315
  328
  342
  356
  372
  388
  405
  423
  443
  463
  484
  506
  530
  555
  581
  609
Issuance/(repurchase) of shares, $m
  -120
  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  
  -117
  182
  188
  196
  204
  213
  221
  230
  239
  248
  258
  268
  279
  290
  302
  315
  328
  342
  356
  372
  388
  405
  423
  443
  463
  484
  506
  530
  555
  581
  609
Total cash flow (excl. dividends), $m
  -180
  586
  529
  588
  650
  714
  781
  850
  923
  998
  1,077
  1,147
  1,233
  1,322
  1,415
  1,512
  1,614
  1,720
  1,831
  1,947
  2,069
  2,196
  2,330
  2,470
  2,617
  2,771
  2,933
  3,103
  3,281
  3,468
  3,664
Retained Cash Flow (-), $m
  -159
  -95
  -101
  -105
  -110
  -114
  -119
  -123
  -128
  -133
  -138
  -144
  -150
  -156
  -162
  -169
  -176
  -183
  -191
  -199
  -208
  -217
  -227
  -237
  -248
  -259
  -271
  -284
  -297
  -312
  -326
Prev. year cash balance distribution, $m
 
  452
  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
 
  943
  428
  483
  540
  600
  662
  727
  795
  865
  939
  1,004
  1,083
  1,166
  1,253
  1,343
  1,438
  1,537
  1,640
  1,748
  1,861
  1,979
  2,103
  2,233
  2,369
  2,512
  2,661
  2,818
  2,983
  3,156
  3,338
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  904
  392
  420
  445
  465
  481
  491
  497
  497
  492
  477
  462
  443
  421
  394
  365
  334
  302
  269
  236
  205
  174
  146
  121
  98
  78
  60
  46
  34
  25
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

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. The company’s Marine Engine segment offers outboard, sterndrive, and inboard engine and propulsion systems; marine electronics and control integration systems, steering systems, instruments, controls, propellers, trolling motors, fuel systems, service parts, and lubricants; and diesel propulsion systems to the recreational and commercial marine markets. It serves independent boat builders and end users, as well as local, state, and foreign governments through marine dealers and distributors, specialty marine retailers, and marine service centers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Sport Jet, Mercury Jet Drive, Mercury Diesel, Sea Pro, Axius, Zeus, Quicksilver, Mercury Precision Parts, Mercury Propellers, Attwood, Garelick, Whale, Land 'N' Sea, Kellogg Marine Supply, Payne's Marine Group, BLA, Seachoice, and MotorGuide brand names. The company’s Boat segment offers fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; and utility boats; deck and inflatable boats; and heavy-gauge aluminum boats under the Sea Ray L-Class, Bayliner, Heyday, Meridian, Boston Whaler, Lund, Crestliner, Cypress Cay, Harris, Lowe, Princecraft, Thunder Jet, Quicksilver, Rayglass, Uttern, Protector, and Legend brands. Its Fitness segment provides cardiovascular fitness equipment; and strength-training equipment, as well as engages in the billiards business. This segment serves health clubs, corporations, schools and universities, hotels, professional sports teams, retirement and assisted living facilities, and the military and governmental agencies under the Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group, SCIFIT, InMovement, Air Hockey, Brunswick, and Contender brands. The company was founded in 1845 and is headquartered in Lake Forest, Illinois.

FINANCIAL RATIOS  of  Brunswick (BC)

Valuation Ratios
P/E Ratio 19.1
Price to Sales 1.2
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow 12.5
Price to Free Cash Flow 23.1
Growth Rates
Sales Growth Rate 9.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 45.9%
Cap. Spend. - 3 Yr. Gr. Rate 8.8%
Financial Strength
Quick Ratio 76
Current Ratio 0
LT Debt to Equity 30.3%
Total Debt to Equity 30.7%
Interest Coverage 14
Management Effectiveness
Return On Assets 9.2%
Ret/ On Assets - 3 Yr. Avg. 8.8%
Return On Total Capital 15.3%
Ret/ On T. Cap. - 3 Yr. Avg. 15.1%
Return On Equity 20.3%
Return On Equity - 3 Yr. Avg. 20.7%
Asset Turnover 1.4
Profitability Ratios
Gross Margin 27.4%
Gross Margin - 3 Yr. Avg. 27.2%
EBITDA Margin 11.7%
EBITDA Margin - 3 Yr. Avg. 10.9%
Operating Margin 9.1%
Oper. Margin - 3 Yr. Avg. 8.4%
Pre-Tax Margin 8.7%
Pre-Tax Margin - 3 Yr. Avg. 8%
Net Profit Margin 6.1%
Net Profit Margin - 3 Yr. Avg. 6.1%
Effective Tax Rate 29.7%
Eff/ Tax Rate - 3 Yr. Avg. 30%
Payout Ratio 19.9%

BC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BC stock intrinsic value calculation we used $4489 million for the last fiscal year's total revenue generated by Brunswick. The default revenue input number comes from 2016 income statement of Brunswick. 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 BC stock valuation model: a) initial revenue growth rate of 9.8% 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 4.3%, whose default value for BC is calculated based on our internal credit rating of Brunswick, 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 Brunswick.
    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 BC stock the variable cost ratio is equal to 79.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $505 million in the base year in the intrinsic value calculation for BC 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 6.7% for Brunswick.

Corporate tax rate of 27% is the nominal tax rate for Brunswick. 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 BC 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 BC are equal to 12.7%.

Life of production assets of 8.9 years is the average useful life of capital assets used in Brunswick 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 BC is equal to 6.1%. 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 - $1440 million for Brunswick - 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 89.542 million for Brunswick 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 Brunswick at the current share price and the inputted number of shares is $5.3 billion.


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COMPANY NEWS

▶ Mercury Marine awarded five dozen patents in 2016   [Feb-14-17 12:45PM  at bizjournals.com]
▶ Brunswick's New CIO Targets Tech-Enabled Boats and Fitness Equipment   [Dec-01-16 03:09PM  at The Wall Street Journal]
▶ Smart Money Is Going Crazy for CoreCivic Inc (CXW)   [Nov-26-16 09:29PM  at Insider Monkey]
▶ Brunswick Corporation : Brunswick Acquires Payne's Marine   [Nov-18-16 04:06PM  GlobeNewswire]
▶ Mercury Marine sales, profits grow in third quarter   [12:05PM  at bizjournals.com]
Stock chart of BC Financial statements of BC
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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