Intrinsic value of CBRE Group - CBG

Previous Close

$35.24

  Intrinsic Value

$29.90

stock screener

  Rating & Target

hold

-15%

  Value-price divergence*

-86%

Previous close

$35.24

 
Intrinsic value

$29.90

 
Up/down potential

-15%

 
Rating

hold

 
Value-price divergence*

-86%

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

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

We calculate the intrinsic value of CBG 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 11.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  20.41
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
Revenue, $m
  13,072
  13,686
  14,334
  15,016
  15,734
  16,489
  17,285
  18,121
  19,001
  19,927
  20,900
  21,923
  22,999
  24,129
  25,317
  26,566
  27,877
  29,256
  30,704
  32,225
  33,824
  35,502
  37,266
  39,118
  41,064
  43,107
  45,253
  47,507
  49,874
  52,360
  54,970
Variable operating expenses, $m
 
  12,619
  13,201
  13,815
  14,461
  15,142
  15,858
  16,611
  17,403
  18,236
  19,112
  19,735
  20,703
  21,721
  22,790
  23,914
  25,095
  26,336
  27,640
  29,009
  30,448
  31,959
  33,547
  35,214
  36,965
  38,805
  40,737
  42,766
  44,896
  47,134
  49,484
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  12,256
  12,619
  13,201
  13,815
  14,461
  15,142
  15,858
  16,611
  17,403
  18,236
  19,112
  19,735
  20,703
  21,721
  22,790
  23,914
  25,095
  26,336
  27,640
  29,009
  30,448
  31,959
  33,547
  35,214
  36,965
  38,805
  40,737
  42,766
  44,896
  47,134
  49,484
Operating income, $m
  815
  1,068
  1,132
  1,201
  1,272
  1,348
  1,427
  1,510
  1,598
  1,691
  1,788
  2,188
  2,295
  2,408
  2,527
  2,651
  2,782
  2,920
  3,064
  3,216
  3,376
  3,543
  3,719
  3,904
  4,098
  4,302
  4,516
  4,741
  4,978
  5,226
  5,486
EBITDA, $m
  1,182
  1,518
  1,590
  1,665
  1,745
  1,829
  1,917
  2,010
  2,107
  2,210
  2,318
  2,431
  2,551
  2,676
  2,808
  2,946
  3,092
  3,245
  3,405
  3,574
  3,751
  3,937
  4,133
  4,338
  4,554
  4,781
  5,019
  5,269
  5,531
  5,807
  6,097
Interest expense (income), $m
  126
  106
  118
  130
  143
  156
  170
  185
  201
  218
  235
  253
  272
  292
  314
  336
  359
  384
  410
  437
  465
  495
  527
  560
  595
  631
  669
  710
  752
  796
  843
Earnings before tax, $m
  881
  961
  1,015
  1,071
  1,129
  1,191
  1,257
  1,325
  1,397
  1,473
  1,553
  1,935
  2,023
  2,116
  2,213
  2,315
  2,423
  2,536
  2,655
  2,779
  2,910
  3,048
  3,192
  3,344
  3,504
  3,671
  3,847
  4,032
  4,226
  4,429
  4,643
Tax expense, $m
  297
  260
  274
  289
  305
  322
  339
  358
  377
  398
  419
  522
  546
  571
  598
  625
  654
  685
  717
  750
  786
  823
  862
  903
  946
  991
  1,039
  1,089
  1,141
  1,196
  1,254
Net income, $m
  572
  702
  741
  781
  824
  870
  917
  967
  1,020
  1,075
  1,134
  1,412
  1,477
  1,544
  1,616
  1,690
  1,769
  1,851
  1,938
  2,029
  2,125
  2,225
  2,330
  2,441
  2,558
  2,680
  2,808
  2,943
  3,085
  3,234
  3,390

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  763
  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
  10,780
  10,488
  10,984
  11,506
  12,056
  12,635
  13,245
  13,886
  14,560
  15,270
  16,015
  16,799
  17,623
  18,490
  19,400
  20,357
  21,362
  22,418
  23,528
  24,694
  25,918
  27,205
  28,556
  29,976
  31,466
  33,032
  34,677
  36,404
  38,218
  40,122
  42,123
Adjusted assets (=assets-cash), $m
  10,017
  10,488
  10,984
  11,506
  12,056
  12,635
  13,245
  13,886
  14,560
  15,270
  16,015
  16,799
  17,623
  18,490
  19,400
  20,357
  21,362
  22,418
  23,528
  24,694
  25,918
  27,205
  28,556
  29,976
  31,466
  33,032
  34,677
  36,404
  38,218
  40,122
  42,123
Revenue / Adjusted assets
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
  1.305
Average production assets, $m
  1,976
  2,067
  2,164
  2,267
  2,376
  2,490
  2,610
  2,736
  2,869
  3,009
  3,156
  3,310
  3,473
  3,643
  3,823
  4,011
  4,209
  4,418
  4,636
  4,866
  5,107
  5,361
  5,627
  5,907
  6,201
  6,509
  6,833
  7,174
  7,531
  7,906
  8,301
Working capital, $m
  597
  1,136
  1,190
  1,246
  1,306
  1,369
  1,435
  1,504
  1,577
  1,654
  1,735
  1,820
  1,909
  2,003
  2,101
  2,205
  2,314
  2,428
  2,548
  2,675
  2,807
  2,947
  3,093
  3,247
  3,408
  3,578
  3,756
  3,943
  4,140
  4,346
  4,563
Total debt, $m
  3,803
  3,368
  3,715
  4,080
  4,464
  4,869
  5,295
  5,743
  6,215
  6,710
  7,232
  7,780
  8,356
  8,961
  9,598
  10,266
  10,969
  11,707
  12,483
  13,298
  14,154
  15,053
  15,998
  16,990
  18,032
  19,126
  20,276
  21,483
  22,751
  24,083
  25,481
Total liabilities, $m
  7,765
  7,331
  7,678
  8,043
  8,427
  8,832
  9,258
  9,706
  10,178
  10,673
  11,195
  11,743
  12,319
  12,924
  13,561
  14,229
  14,932
  15,670
  16,446
  17,261
  18,117
  19,016
  19,961
  20,953
  21,995
  23,089
  24,239
  25,446
  26,714
  28,046
  29,444
Total equity, $m
  3,014
  3,157
  3,306
  3,463
  3,629
  3,803
  3,987
  4,180
  4,383
  4,596
  4,821
  5,057
  5,305
  5,565
  5,839
  6,127
  6,430
  6,748
  7,082
  7,433
  7,801
  8,189
  8,595
  9,023
  9,471
  9,943
  10,438
  10,958
  11,504
  12,077
  12,679
Total liabilities and equity, $m
  10,779
  10,488
  10,984
  11,506
  12,056
  12,635
  13,245
  13,886
  14,561
  15,269
  16,016
  16,800
  17,624
  18,489
  19,400
  20,356
  21,362
  22,418
  23,528
  24,694
  25,918
  27,205
  28,556
  29,976
  31,466
  33,032
  34,677
  36,404
  38,218
  40,123
  42,123
Debt-to-equity ratio
  1.262
  1.070
  1.120
  1.180
  1.230
  1.280
  1.330
  1.370
  1.420
  1.460
  1.500
  1.540
  1.580
  1.610
  1.640
  1.680
  1.710
  1.730
  1.760
  1.790
  1.810
  1.840
  1.860
  1.880
  1.900
  1.920
  1.940
  1.960
  1.980
  1.990
  2.010
Adjusted equity ratio
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  572
  702
  741
  781
  824
  870
  917
  967
  1,020
  1,075
  1,134
  1,412
  1,477
  1,544
  1,616
  1,690
  1,769
  1,851
  1,938
  2,029
  2,125
  2,225
  2,330
  2,441
  2,558
  2,680
  2,808
  2,943
  3,085
  3,234
  3,390
Depreciation, amort., depletion, $m
  367
  450
  457
  465
  473
  481
  490
  499
  509
  519
  530
  243
  255
  268
  281
  295
  310
  325
  341
  358
  376
  394
  414
  434
  456
  479
  502
  527
  554
  581
  610
Funds from operations, $m
  225
  1,152
  1,198
  1,246
  1,297
  1,351
  1,407
  1,467
  1,529
  1,595
  1,664
  1,656
  1,732
  1,812
  1,897
  1,985
  2,078
  2,176
  2,279
  2,387
  2,500
  2,619
  2,744
  2,876
  3,014
  3,159
  3,311
  3,471
  3,639
  3,815
  4,000
Change in working capital, $m
  -225
  51
  54
  57
  60
  63
  66
  69
  73
  77
  81
  85
  89
  94
  99
  104
  109
  114
  120
  126
  133
  139
  146
  154
  161
  170
  178
  187
  196
  206
  217
Cash from operations, $m
  450
  1,101
  1,144
  1,190
  1,238
  1,288
  1,341
  1,397
  1,456
  1,518
  1,583
  1,571
  1,643
  1,719
  1,798
  1,882
  1,969
  2,062
  2,159
  2,260
  2,367
  2,480
  2,598
  2,722
  2,852
  2,989
  3,133
  3,284
  3,442
  3,609
  3,783
Maintenance CAPEX, $m
  0
  -145
  -152
  -159
  -167
  -175
  -183
  -192
  -201
  -211
  -221
  -232
  -243
  -255
  -268
  -281
  -295
  -310
  -325
  -341
  -358
  -376
  -394
  -414
  -434
  -456
  -479
  -502
  -527
  -554
  -581
New CAPEX, $m
  -191
  -91
  -98
  -103
  -108
  -114
  -120
  -126
  -133
  -140
  -147
  -154
  -162
  -171
  -179
  -189
  -198
  -208
  -219
  -230
  -241
  -254
  -266
  -280
  -294
  -309
  -324
  -340
  -357
  -375
  -394
Cash from investing activities, $m
  -7
  -236
  -250
  -262
  -275
  -289
  -303
  -318
  -334
  -351
  -368
  -386
  -405
  -426
  -447
  -470
  -493
  -518
  -544
  -571
  -599
  -630
  -660
  -694
  -728
  -765
  -803
  -842
  -884
  -929
  -975
Free cash flow, $m
  443
  865
  894
  928
  963
  999
  1,038
  1,079
  1,122
  1,167
  1,215
  1,184
  1,237
  1,293
  1,351
  1,412
  1,476
  1,544
  1,615
  1,690
  1,768
  1,851
  1,937
  2,028
  2,124
  2,224
  2,330
  2,441
  2,557
  2,679
  2,808
Issuance/(repayment) of debt, $m
  -149
  328
  347
  365
  385
  405
  426
  448
  471
  496
  521
  548
  576
  606
  636
  669
  703
  738
  776
  815
  856
  899
  945
  992
  1,042
  1,094
  1,150
  1,207
  1,268
  1,332
  1,398
Issuance/(repurchase) of shares, $m
  -27
  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  
  -200
  328
  347
  365
  385
  405
  426
  448
  471
  496
  521
  548
  576
  606
  636
  669
  703
  738
  776
  815
  856
  899
  945
  992
  1,042
  1,094
  1,150
  1,207
  1,268
  1,332
  1,398
Total cash flow (excl. dividends), $m
  222
  1,193
  1,241
  1,293
  1,347
  1,404
  1,464
  1,527
  1,593
  1,663
  1,736
  1,732
  1,813
  1,898
  1,987
  2,081
  2,179
  2,282
  2,391
  2,505
  2,624
  2,750
  2,882
  3,021
  3,166
  3,319
  3,479
  3,648
  3,825
  4,011
  4,206
Retained Cash Flow (-), $m
  -301
  -143
  -149
  -157
  -166
  -174
  -183
  -193
  -203
  -213
  -224
  -236
  -248
  -261
  -274
  -288
  -303
  -318
  -334
  -351
  -369
  -387
  -407
  -427
  -449
  -471
  -495
  -520
  -546
  -573
  -602
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
 
  1,050
  1,092
  1,136
  1,181
  1,230
  1,281
  1,334
  1,390
  1,449
  1,512
  1,496
  1,565
  1,637
  1,713
  1,793
  1,876
  1,964
  2,057
  2,154
  2,256
  2,363
  2,475
  2,593
  2,717
  2,848
  2,984
  3,128
  3,279
  3,438
  3,604
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  978
  940
  897
  850
  799
  745
  688
  629
  570
  510
  428
  375
  323
  275
  231
  190
  154
  123
  96
  73
  55
  40
  29
  20
  14
  9
  6
  4
  2
  1
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

CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through Americas; Europe, Middle East and Africa; Asia Pacific; Global Investment Management; and Development Services segments. The company offers advisory services, such as strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing, disposition, and acquisition of property; integrated investment sales and debt/structured financing services under the CBRE Capital Markets brand; and valuation services, including market value appraisals, litigation support, discounted cash flow analyses, feasibility and fairness opinions, property condition reports, hotel advisory, and environmental consulting, as well as originates and services commercial mortgage loans. It also provides outsourcing services comprising facilities management, project management, advisory and transaction, and strategic consulting services to occupiers of real estate; and property management services consisting of construction management, marketing, building engineering, accounting, and financial services for owners/investors in office, industrial, and retail properties. In addition, the company offers investment management services to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors seeking to generate returns and diversification through investment in real estate. Further, the company develops and invests in commercial real estate, including industrial, office, and retail properties; healthcare facilities; and residential/mixed-use projects. CBRE Group, Inc. offers its commercial real estate services under the CBRE brand name; investment management services under the CBRE Global Investors brand name; and development services under the Trammell Crow brand name. The company was founded in 1906 and is headquartered in Los Angeles, California.

FINANCIAL RATIOS  of  CBRE Group (CBG)

Valuation Ratios
P/E Ratio 20.8
Price to Sales 0.9
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 26.4
Price to Free Cash Flow 45.9
Growth Rates
Sales Growth Rate 20.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 37.4%
Cap. Spend. - 3 Yr. Gr. Rate 4.1%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 84.5%
Total Debt to Equity 126.2%
Interest Coverage 8
Management Effectiveness
Return On Assets 6%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 8.2%
Ret/ On T. Cap. - 3 Yr. Avg. 9.4%
Return On Equity 20%
Return On Equity - 3 Yr. Avg. 21.8%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 30.2%
Gross Margin - 3 Yr. Avg. 34.3%
EBITDA Margin 10.5%
EBITDA Margin - 3 Yr. Avg. 11.7%
Operating Margin 6.2%
Oper. Margin - 3 Yr. Avg. 7.5%
Pre-Tax Margin 6.7%
Pre-Tax Margin - 3 Yr. Avg. 7.8%
Net Profit Margin 4.4%
Net Profit Margin - 3 Yr. Avg. 4.9%
Effective Tax Rate 33.7%
Eff/ Tax Rate - 3 Yr. Avg. 34.7%
Payout Ratio 0%

CBG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CBG stock intrinsic value calculation we used $13072 million for the last fiscal year's total revenue generated by CBRE Group. The default revenue input number comes from 2016 income statement of CBRE 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 CBG stock valuation model: a) initial revenue growth rate of 4.7% 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 7.4%, whose default value for CBG is calculated based on our internal credit rating of CBRE 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 CBRE 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 CBG stock the variable cost ratio is equal to 92.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CBG 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 3.5% for CBRE Group.

Corporate tax rate of 27% is the nominal tax rate for CBRE 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 CBG 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 CBG are equal to 15.1%.

Life of production assets of 13.6 years is the average useful life of capital assets used in CBRE 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 CBG is equal to 8.3%. 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 - $3014 million for CBRE 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 336.283 million for CBRE 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 CBRE Group at the current share price and the inputted number of shares is $11.9 billion.

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COMPANY NEWS

▶ Another Tysons auto dealership being primed for redevelopment   [Aug-17-17 01:23PM  American City Business Journals]
▶ CBRE Buys Medical Buildings in a Bid for Safety   [12:28AM  The Wall Street Journal]
▶ National Association of Broadcasters seeking buyers for longtime home   [Aug-08-17 09:45AM  American City Business Journals]
▶ CBRE Group: Cramer's Top Takeaways   [06:29AM  TheStreet.com]
▶ New Jersey Has a Millennials Problem   [Jul-31-17 12:40AM  The Wall Street Journal]
▶ New Jersey Has a Millennials Problem   [Jul-30-17 11:00AM  The Wall Street Journal]
▶ CBRE beats 2Q profit forecasts   [Jul-28-17 01:24AM  Associated Press]
▶ Cutting-edge shipping container apartments for sale   [Jul-25-17 04:25PM  American City Business Journals]
▶ [$$] Drop in Manhattan Retail Rents Has Retailers Looking   [Jul-24-17 12:11AM  The Wall Street Journal]
▶ See how Phoenix ranks in latest CBRE Scoring Tech Talent report   [Jul-19-17 03:20AM  American City Business Journals]
▶ CBRE Group, Inc. Acquires Convergences-CVL   [Jul-13-17 08:00AM  Business Wire]
▶ Memphis industrial market poised for accelerated growth due to e-commerce   [Jul-10-17 10:55AM  American City Business Journals]
▶ Hiring surge: Big job announcements up 71 percent   [Jul-09-17 09:41PM  American City Business Journals]
▶ Chicago Named Nations Greenest City in CBRE Study   [Jul-06-17 04:15PM  Business Wire]
▶ CBRE poaches veteran Oakland office brokers   [Jun-29-17 05:57PM  American City Business Journals]
▶ Austin real estate investment firm buys large 3M campus   [09:23AM  American City Business Journals]
▶ CBREs Smart Building Solutions Garners Realcomm Digie Award   [Jun-27-17 08:15AM  Business Wire]
▶ [$$] CBRE Group to Buy Majority Stake in Caledon Capital Management   [Jun-09-17 11:53AM  The Wall Street Journal]
▶ ETFs with exposure to CBRE Group, Inc. : June 8, 2017   [Jun-08-17 01:28PM  Capital Cube]
▶ CBRE Group, Inc. Rises to #214 on the Fortune 500   [Jun-07-17 04:30PM  Business Wire]
▶ Exclusive: Salesforce, WeWork in talks for big leases at Salesforce Tower   [May-24-17 05:15PM  American City Business Journals]
▶ CBRE Group, Inc. Named to LinkedIn Top Companies List   [May-22-17 08:40AM  Business Wire]
▶ CBRE Group, Inc. Acquires Brenner Real Estate Group   [May-15-17 04:15PM  Business Wire]
▶ Former AT&T building to be converted into office space   [May-11-17 04:57PM  American City Business Journals]
▶ CBRE Group: Cramer's Top Takeaways   [06:29AM  TheStreet.com]
▶ Investor Slams Real-Estate Services Company JLL's Pay Practices   [May-09-17 08:08PM  The Wall Street Journal]
▶ SABJ announces 2017 Best in Commercial Real Estate Awards Top Brokers winners   [May-08-17 12:25PM  American City Business Journals]
▶ BY THE NUMBERS: Central Ohio industrial market cools after record year   [May-03-17 04:20PM  American City Business Journals]
▶ CBRE Group, Inc. Value Analysis (NYSE:CBG) : May 1, 2017   [May-01-17 04:50PM  Capital Cube]
▶ Gated Millenia-area apartment complex sold   [Apr-28-17 01:45PM  American City Business Journals]
▶ CBRE beats Street 1Q forecasts   [07:24AM  Associated Press]
▶ [$$] Concern Over Manhattan's One Vanderbilt Project Grows   [05:49PM  The Wall Street Journal]
▶ Industrial goes 3-D: KC ranks 7th in new cubic feet of warehouse   [Apr-17-17 03:50PM  American City Business Journals]
▶ More good than bad news in suburban office market, says CBRE   [Apr-14-17 02:42PM  American City Business Journals]
Stock chart of CBG Financial statements of CBG
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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