Intrinsic value of CalAtlantic Group - CAA

Previous Close

$38.91

  Intrinsic Value

$211.29

stock screener

  Rating & Target

str. buy

+443%

Previous close

$38.91

 
Intrinsic value

$211.29

 
Up/down potential

+443%

 
Rating

str. buy

We calculate the intrinsic value of CAA 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, %
  82.97
  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
  6,477
  10,363
  16,011
  23,945
  34,743
  49,017
  67,387
  90,453
  118,770
  152,828
  193,034
  239,705
  293,062
  353,238
  420,284
  494,179
  574,849
  662,177
  756,024
  856,237
  962,664
  1,075,168
  1,193,631
  1,317,962
  1,448,106
  1,584,042
  1,725,789
  1,873,406
  2,026,992
  2,186,687
  2,352,669
Variable operating expenses, $m
 
  8,854
  13,627
  20,331
  29,455
  41,517
  57,040
  76,532
  100,460
  129,240
  163,215
  202,556
  247,644
  298,495
  355,150
  417,593
  485,761
  559,556
  638,859
  723,541
  813,474
  908,543
  1,008,647
  1,113,710
  1,223,684
  1,338,553
  1,458,333
  1,583,073
  1,712,857
  1,847,803
  1,988,061
Fixed operating expenses, $m
 
  161
  165
  169
  173
  178
  182
  187
  191
  196
  201
  206
  211
  216
  222
  227
  233
  239
  245
  251
  257
  264
  270
  277
  284
  291
  298
  306
  313
  321
  329
Total operating expenses, $m
  5,724
  9,015
  13,792
  20,500
  29,628
  41,695
  57,222
  76,719
  100,651
  129,436
  163,416
  202,762
  247,855
  298,711
  355,372
  417,820
  485,994
  559,795
  639,104
  723,792
  813,731
  908,807
  1,008,917
  1,113,987
  1,223,968
  1,338,844
  1,458,631
  1,583,379
  1,713,170
  1,848,124
  1,988,390
Operating income, $m
  753
  1,348
  2,219
  3,445
  5,114
  7,322
  10,164
  13,734
  18,118
  23,392
  29,618
  36,942
  45,206
  54,527
  64,912
  76,359
  88,855
  102,383
  116,921
  132,445
  148,933
  166,362
  184,714
  203,976
  224,138
  245,198
  267,158
  290,027
  313,822
  338,563
  364,278
EBITDA, $m
  815
  1,445
  2,316
  3,542
  5,211
  7,419
  10,261
  13,831
  18,215
  23,489
  29,715
  36,942
  45,206
  54,527
  64,912
  76,359
  88,855
  102,383
  116,921
  132,445
  148,933
  166,362
  184,714
  203,976
  224,138
  245,198
  267,158
  290,027
  313,822
  338,563
  364,278
Interest expense (income), $m
  220
  204
  356
  577
  887
  1,309
  1,867
  2,586
  3,488
  4,595
  5,927
  7,499
  9,323
  11,410
  13,763
  16,384
  19,274
  22,428
  25,843
  29,512
  33,431
  37,592
  41,991
  46,623
  51,484
  56,573
  61,888
  67,431
  73,203
  79,208
  85,453
Earnings before tax, $m
  753
  1,144
  1,863
  2,868
  4,227
  6,013
  8,297
  11,149
  14,631
  18,797
  23,691
  29,444
  35,883
  43,117
  51,149
  59,974
  69,581
  79,955
  91,078
  102,933
  115,502
  128,770
  142,723
  157,353
  172,653
  188,624
  205,269
  222,596
  240,619
  259,355
  278,826
Tax expense, $m
  268
  309
  503
  774
  1,141
  1,623
  2,240
  3,010
  3,950
  5,075
  6,397
  7,950
  9,688
  11,642
  13,810
  16,193
  18,787
  21,588
  24,591
  27,792
  31,186
  34,768
  38,535
  42,485
  46,616
  50,929
  55,423
  60,101
  64,967
  70,026
  75,283
Net income, $m
  485
  835
  1,360
  2,094
  3,086
  4,389
  6,057
  8,139
  10,680
  13,722
  17,295
  21,494
  26,195
  31,476
  37,339
  43,781
  50,794
  58,367
  66,487
  75,141
  84,317
  94,002
  104,188
  114,867
  126,037
  137,696
  149,846
  162,495
  175,652
  189,329
  203,543

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  208
  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
  8,709
  13,600
  21,012
  31,423
  45,594
  64,326
  88,434
  118,704
  155,866
  200,562
  253,326
  314,573
  384,596
  463,567
  551,553
  648,529
  754,395
  868,999
  992,158
  1,123,670
  1,263,339
  1,410,982
  1,566,445
  1,729,609
  1,900,401
  2,078,795
  2,264,815
  2,458,538
  2,660,095
  2,869,668
  3,087,492
Adjusted assets (=assets-cash), $m
  8,501
  13,600
  21,012
  31,423
  45,594
  64,326
  88,434
  118,704
  155,866
  200,562
  253,326
  314,573
  384,596
  463,567
  551,553
  648,529
  754,395
  868,999
  992,158
  1,123,670
  1,263,339
  1,410,982
  1,566,445
  1,729,609
  1,900,401
  2,078,795
  2,264,815
  2,458,538
  2,660,095
  2,869,668
  3,087,492
Revenue / Adjusted assets
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
  0.762
Average production assets, $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
Working capital, $m
  0
  62
  96
  144
  208
  294
  404
  543
  713
  917
  1,158
  1,438
  1,758
  2,119
  2,522
  2,965
  3,449
  3,973
  4,536
  5,137
  5,776
  6,451
  7,162
  7,908
  8,689
  9,504
  10,355
  11,240
  12,162
  13,120
  14,116
Total debt, $m
  3,667
  6,034
  9,777
  15,035
  22,191
  31,651
  43,825
  59,112
  77,878
  100,450
  127,095
  158,025
  193,387
  233,267
  277,700
  326,673
  380,135
  438,011
  500,206
  566,620
  637,152
  711,712
  790,220
  872,619
  958,869
  1,048,957
  1,142,897
  1,240,728
  1,342,514
  1,448,348
  1,558,349
Total liabilities, $m
  4,501
  6,868
  10,611
  15,869
  23,025
  32,485
  44,659
  59,946
  78,712
  101,284
  127,929
  158,859
  194,221
  234,101
  278,534
  327,507
  380,969
  438,845
  501,040
  567,454
  637,986
  712,546
  791,054
  873,453
  959,703
  1,049,791
  1,143,731
  1,241,562
  1,343,348
  1,449,182
  1,559,183
Total equity, $m
  4,208
  6,732
  10,401
  15,555
  22,569
  31,842
  43,775
  58,759
  77,154
  99,278
  125,396
  155,714
  190,375
  229,466
  273,019
  321,022
  373,425
  430,155
  491,118
  556,217
  625,353
  698,436
  775,390
  856,157
  940,699
  1,029,004
  1,121,083
  1,216,976
  1,316,747
  1,420,486
  1,528,308
Total liabilities and equity, $m
  8,709
  13,600
  21,012
  31,424
  45,594
  64,327
  88,434
  118,705
  155,866
  200,562
  253,325
  314,573
  384,596
  463,567
  551,553
  648,529
  754,394
  869,000
  992,158
  1,123,671
  1,263,339
  1,410,982
  1,566,444
  1,729,610
  1,900,402
  2,078,795
  2,264,814
  2,458,538
  2,660,095
  2,869,668
  3,087,491
Debt-to-equity ratio
  0.871
  0.900
  0.940
  0.970
  0.980
  0.990
  1.000
  1.010
  1.010
  1.010
  1.010
  1.010
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
  1.020
Adjusted equity ratio
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495
  0.495

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  485
  835
  1,360
  2,094
  3,086
  4,389
  6,057
  8,139
  10,680
  13,722
  17,295
  21,494
  26,195
  31,476
  37,339
  43,781
  50,794
  58,367
  66,487
  75,141
  84,317
  94,002
  104,188
  114,867
  126,037
  137,696
  149,846
  162,495
  175,652
  189,329
  203,543
Depreciation, amort., depletion, $m
  62
  97
  97
  97
  97
  97
  97
  97
  97
  97
  97
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Funds from operations, $m
  88
  932
  1,457
  2,191
  3,183
  4,486
  6,154
  8,236
  10,777
  13,819
  17,392
  21,494
  26,195
  31,476
  37,339
  43,781
  50,794
  58,367
  66,487
  75,141
  84,317
  94,002
  104,188
  114,867
  126,037
  137,696
  149,846
  162,495
  175,652
  189,329
  203,543
Change in working capital, $m
  -234
  23
  34
  48
  65
  86
  110
  138
  170
  204
  241
  280
  320
  361
  402
  443
  484
  524
  563
  601
  639
  675
  711
  746
  781
  816
  850
  886
  922
  958
  996
Cash from operations, $m
  322
  909
  1,423
  2,143
  3,118
  4,400
  6,043
  8,097
  10,607
  13,614
  17,150
  21,214
  25,874
  31,115
  36,937
  43,338
  50,310
  57,843
  65,924
  74,540
  83,678
  93,327
  103,477
  114,121
  125,256
  136,880
  148,996
  161,610
  174,730
  188,371
  202,547
Maintenance CAPEX, $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
New CAPEX, $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 investing activities, $m
  3
  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
Free cash flow, $m
  325
  909
  1,423
  2,143
  3,118
  4,400
  6,043
  8,097
  10,607
  13,614
  17,150
  21,214
  25,874
  31,115
  36,937
  43,338
  50,310
  57,843
  65,924
  74,540
  83,678
  93,327
  103,477
  114,121
  125,256
  136,880
  148,996
  161,610
  174,730
  188,371
  202,547
Issuance/(repayment) of debt, $m
  -59
  2,575
  3,743
  5,258
  7,156
  9,460
  12,174
  15,286
  18,767
  22,571
  26,646
  30,930
  35,361
  39,881
  44,433
  48,973
  53,462
  57,875
  62,195
  66,414
  70,533
  74,560
  78,509
  82,398
  86,250
  90,089
  93,940
  97,830
  101,786
  105,834
  110,001
Issuance/(repurchase) of shares, $m
  -231
  1,689
  2,309
  3,060
  3,929
  4,883
  5,877
  6,845
  7,715
  8,403
  8,824
  8,823
  8,467
  7,615
  6,214
  4,222
  1,609
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -285
  4,264
  6,052
  8,318
  11,085
  14,343
  18,051
  22,131
  26,482
  30,974
  35,470
  39,753
  43,828
  47,496
  50,647
  53,195
  55,071
  57,875
  62,195
  66,414
  70,533
  74,560
  78,509
  82,398
  86,250
  90,089
  93,940
  97,830
  101,786
  105,834
  110,001
Total cash flow (excl. dividends), $m
  41
  5,173
  7,475
  10,461
  14,203
  18,744
  24,094
  30,229
  37,089
  44,588
  52,620
  60,967
  69,702
  78,610
  87,584
  96,532
  105,382
  115,718
  128,119
  140,954
  154,211
  167,886
  181,986
  196,520
  211,506
  226,969
  242,936
  259,440
  276,516
  294,205
  312,548
Retained Cash Flow (-), $m
  -347
  -2,524
  -3,669
  -5,154
  -7,014
  -9,273
  -11,933
  -14,984
  -18,395
  -22,124
  -26,118
  -30,317
  -34,661
  -39,091
  -43,553
  -48,003
  -52,404
  -56,729
  -60,963
  -65,099
  -69,136
  -73,083
  -76,954
  -80,766
  -84,542
  -88,305
  -92,080
  -95,893
  -99,771
  -103,739
  -107,823
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
 
  2,649
  3,806
  5,307
  7,188
  9,471
  12,161
  15,245
  18,694
  22,464
  26,502
  30,650
  35,041
  39,520
  44,031
  48,529
  52,978
  58,989
  67,156
  75,855
  85,075
  94,803
  105,032
  115,753
  126,964
  138,664
  150,856
  163,547
  176,746
  190,466
  204,725
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
 
  2,457
  3,252
  4,144
  5,087
  6,022
  6,881
  7,601
  8,126
  8,417
  8,457
  8,223
  7,797
  7,189
  6,448
  5,629
  4,785
  4,073
  3,478
  2,887
  2,329
  1,825
  1,388
  1,025
  733
  508
  340
  220
  138
  83
  48
Current shareholders' claim on cash, %
  100
  71.8
  53.7
  41.7
  33.4
  27.5
  23.3
  20.2
  17.9
  16.2
  14.9
  13.9
  13.2
  12.7
  12.4
  12.2
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1
  12.1

CalAtlantic Group, Inc. is a diversified builder of single-family attached and detached homes. The Company operates through two segments: homebuilding and financial services. The homebuilding segment operations include acquiring and developing land, and constructing and selling single-family attached and detached homes. The Financial Services segment includes mortgage financing operation, which provides mortgage financing to its homebuyers in the markets, in which it operates, and sells all of the loans it originates in the secondary mortgage market. As of December 31, 2016, the Company built homes in communities that meet the desires of customers across the homebuilding spectrum, from entry level to luxury, in over 40 metropolitan statistical areas spanning 17 states and the District of Columbia. The Company also provides mortgage, title and escrow services. The Company provides mortgage loans to its homebuyers through its mortgage financing subsidiary, CalAtlantic Mortgage.

FINANCIAL RATIOS  of  CalAtlantic Group (CAA)

Valuation Ratios
P/E Ratio 9.2
Price to Sales 0.7
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 13.8
Price to Free Cash Flow 13.8
Growth Rates
Sales Growth Rate 83%
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 1
Current Ratio NaN
LT Debt to Equity 81.3%
Total Debt to Equity 87.1%
Interest Coverage 4
Management Effectiveness
Return On Assets 7.3%
Ret/ On Assets - 3 Yr. Avg. 6.8%
Return On Total Capital 6.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.3%
Return On Equity 12%
Return On Equity - 3 Yr. Avg. 11.2%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 22.8%
Gross Margin - 3 Yr. Avg. 24.1%
EBITDA Margin 16%
EBITDA Margin - 3 Yr. Avg. 17.7%
Operating Margin 11.6%
Oper. Margin - 3 Yr. Avg. 11.9%
Pre-Tax Margin 11.6%
Pre-Tax Margin - 3 Yr. Avg. 11.9%
Net Profit Margin 7.5%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 35.6%
Eff/ Tax Rate - 3 Yr. Avg. 37.1%
Payout Ratio 3.9%

CAA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CAA stock intrinsic value calculation we used $6477 million for the last fiscal year's total revenue generated by CalAtlantic Group. The default revenue input number comes from 2016 income statement of CalAtlantic Group. 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 CAA 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 7.8%, whose default value for CAA is calculated based on our internal credit rating of CalAtlantic Group, 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 CalAtlantic Group.
    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 CAA stock the variable cost ratio is equal to 86%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $157 million in the base year in the intrinsic value calculation for CAA 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 5.9% for CalAtlantic Group.

Corporate tax rate of 27% is the nominal tax rate for CalAtlantic Group. 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 CAA 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 CAA are equal to 0%.

Life of production assets of 15.3 years is the average useful life of capital assets used in CalAtlantic Group 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 CAA is equal to 0.6%. 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 - $4208 million for CalAtlantic Group - 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 110.254 million for CalAtlantic Group 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 CalAtlantic Group at the current share price and the inputted number of shares is $4.3 billion.

RELATED COMPANIES Price Int.Val. Rating
MDC M.D.C. Holding 36.34 52.79  buy
LGIH LGI Homes 55.92 378.59  str.buy
TOL Toll Brothers 44.21 68.38  str.buy
LEN Lennar Cl A 57.50 104.44  str.buy
KBH KB Home 27.05 85.04  str.buy
NVR NVR 3,223.25 3,047.27  hold
DHI D.R. Horton 42.67 112.28  str.buy
HOV Hovnanian Ente 2.26 0.99  str.sell
MHO M/I Homes 28.79 51.14  str.buy

COMPANY NEWS

▶ CalAtlantic Homes Now Selling At Saint John's Lake   [Oct-20-17 11:20AM  PR Newswire]
▶ CalAtlantic Homes Debuts Trellis   [Oct-11-17 04:43PM  PR Newswire]
▶ What Texas Can Tell Us About The Housing Market   [Aug-23-17 12:08PM  Barrons.com]
▶ CalAtlantic Group, Inc. Declares Quarterly Dividend   [Jul-28-17 04:21PM  PR Newswire]
▶ CalAtlantic misses 2Q profit forecasts   [Jul-27-17 09:54PM  Associated Press]
▶ We're going to see home sales growth: Analyst   [Jul-05-17 01:38PM  CNBC Videos]
▶ CalAtlantic Homes Enters Seattle Market   [Jun-13-17 09:00AM  PR Newswire]
▶ [$$] Preferred Stock for the Long Run   [Jun-10-17 12:14AM  Barrons.com]
▶ CalAtlantic Homes Enters Utah Market   [May-04-17 09:00AM  PR Newswire]
▶ CalAtlantic beats Street 1Q forecasts   [Apr-27-17 06:56PM  Associated Press]
▶ CalAtlantic Homes Introduces Summit Bridge Estates   [Mar-31-17 11:56PM  PR Newswire]
▶ CalAtlantic Homes Introduces Whispering Pines Estates   [Mar-28-17 10:00AM  PR Newswire]
▶ CalAtlantic Homes Breaks Ground On Solana Heights   [Mar-22-17 02:00PM  PR Newswire]
▶ IIROC Trading Halt - CAA   [Mar-21-17 03:36PM  PR Newswire]
Financial statements of CAA
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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