Intrinsic value of CBRE Group - CBG

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$34.38

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$34.38

 
Intrinsic value

$27.94

 
Up/down potential

-19%

 
Rating

hold

 
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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 11.6

 

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
  3.40
  3.56
  3.70
  3.83
  3.95
  4.06
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.82
  4.84
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.92
Revenue, $m
  13,072
  13,516
  13,998
  14,516
  15,073
  15,668
  16,303
  16,980
  17,699
  18,462
  19,271
  20,127
  21,032
  21,989
  22,999
  24,064
  25,188
  26,373
  27,621
  28,936
  30,320
  31,777
  33,310
  34,924
  36,620
  38,404
  40,281
  42,253
  44,326
  46,505
  48,796
Variable operating expenses, $m
 
  12,466
  12,899
  13,365
  13,866
  14,402
  14,974
  15,583
  16,231
  16,918
  17,645
  18,118
  18,933
  19,794
  20,703
  21,663
  22,674
  23,741
  24,865
  26,048
  27,294
  28,606
  29,986
  31,438
  32,965
  34,571
  36,260
  38,036
  39,902
  41,864
  43,926
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
  12,466
  12,899
  13,365
  13,866
  14,402
  14,974
  15,583
  16,231
  16,918
  17,645
  18,118
  18,933
  19,794
  20,703
  21,663
  22,674
  23,741
  24,865
  26,048
  27,294
  28,606
  29,986
  31,438
  32,965
  34,571
  36,260
  38,036
  39,902
  41,864
  43,926
Operating income, $m
  815
  1,051
  1,099
  1,151
  1,206
  1,266
  1,329
  1,397
  1,468
  1,544
  1,625
  2,009
  2,099
  2,195
  2,295
  2,402
  2,514
  2,632
  2,757
  2,888
  3,026
  3,172
  3,325
  3,486
  3,655
  3,833
  4,020
  4,217
  4,424
  4,641
  4,870
EBITDA, $m
  1,182
  1,499
  1,552
  1,610
  1,672
  1,738
  1,808
  1,883
  1,963
  2,048
  2,137
  2,232
  2,333
  2,439
  2,551
  2,669
  2,794
  2,925
  3,063
  3,209
  3,363
  3,524
  3,694
  3,873
  4,061
  4,259
  4,467
  4,686
  4,916
  5,158
  5,412
Interest expense (income), $m
  126
  106
  115
  124
  133
  144
  155
  167
  180
  193
  207
  223
  239
  256
  274
  292
  312
  334
  356
  379
  404
  430
  457
  486
  516
  548
  581
  616
  653
  692
  733
Earnings before tax, $m
  881
  945
  984
  1,027
  1,073
  1,122
  1,174
  1,230
  1,289
  1,351
  1,418
  1,786
  1,860
  1,939
  2,022
  2,109
  2,201
  2,299
  2,401
  2,509
  2,622
  2,742
  2,868
  3,000
  3,139
  3,285
  3,439
  3,601
  3,771
  3,949
  4,137
Tax expense, $m
  297
  255
  266
  277
  290
  303
  317
  332
  348
  365
  383
  482
  502
  524
  546
  570
  594
  621
  648
  677
  708
  740
  774
  810
  847
  887
  929
  972
  1,018
  1,066
  1,117
Net income, $m
  572
  689
  718
  750
  783
  819
  857
  898
  941
  987
  1,035
  1,304
  1,358
  1,415
  1,476
  1,540
  1,607
  1,678
  1,753
  1,831
  1,914
  2,002
  2,093
  2,190
  2,291
  2,398
  2,510
  2,628
  2,752
  2,883
  3,020

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
  10,357
  10,726
  11,123
  11,550
  12,006
  12,493
  13,011
  13,562
  14,147
  14,767
  15,423
  16,116
  16,849
  17,623
  18,440
  19,301
  20,209
  21,166
  22,173
  23,234
  24,350
  25,525
  26,761
  28,061
  29,429
  30,866
  32,378
  33,966
  35,636
  37,391
Adjusted assets (=assets-cash), $m
  10,017
  10,357
  10,726
  11,123
  11,550
  12,006
  12,493
  13,011
  13,562
  14,147
  14,767
  15,423
  16,116
  16,849
  17,623
  18,440
  19,301
  20,209
  21,166
  22,173
  23,234
  24,350
  25,525
  26,761
  28,061
  29,429
  30,866
  32,378
  33,966
  35,636
  37,391
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
  2,041
  2,114
  2,192
  2,276
  2,366
  2,462
  2,564
  2,673
  2,788
  2,910
  3,039
  3,176
  3,320
  3,473
  3,634
  3,803
  3,982
  4,171
  4,369
  4,578
  4,798
  5,030
  5,273
  5,530
  5,799
  6,082
  6,380
  6,693
  7,022
  7,368
Working capital, $m
  597
  1,122
  1,162
  1,205
  1,251
  1,300
  1,353
  1,409
  1,469
  1,532
  1,599
  1,671
  1,746
  1,825
  1,909
  1,997
  2,091
  2,189
  2,293
  2,402
  2,517
  2,638
  2,765
  2,899
  3,039
  3,188
  3,343
  3,507
  3,679
  3,860
  4,050
Total debt, $m
  3,803
  3,277
  3,535
  3,812
  4,110
  4,429
  4,770
  5,132
  5,517
  5,926
  6,359
  6,818
  7,302
  7,815
  8,356
  8,927
  9,529
  10,163
  10,832
  11,536
  12,277
  13,058
  13,879
  14,743
  15,652
  16,608
  17,613
  18,669
  19,780
  20,947
  22,174
Total liabilities, $m
  7,765
  7,240
  7,498
  7,775
  8,073
  8,392
  8,733
  9,095
  9,480
  9,889
  10,322
  10,781
  11,265
  11,778
  12,319
  12,890
  13,492
  14,126
  14,795
  15,499
  16,240
  17,021
  17,842
  18,706
  19,615
  20,571
  21,576
  22,632
  23,743
  24,910
  26,137
Total equity, $m
  3,014
  3,118
  3,229
  3,348
  3,477
  3,614
  3,760
  3,916
  4,082
  4,258
  4,445
  4,642
  4,851
  5,072
  5,305
  5,550
  5,810
  6,083
  6,371
  6,674
  6,993
  7,329
  7,683
  8,055
  8,446
  8,858
  9,291
  9,746
  10,224
  10,727
  11,255
Total liabilities and equity, $m
  10,779
  10,358
  10,727
  11,123
  11,550
  12,006
  12,493
  13,011
  13,562
  14,147
  14,767
  15,423
  16,116
  16,850
  17,624
  18,440
  19,302
  20,209
  21,166
  22,173
  23,233
  24,350
  25,525
  26,761
  28,061
  29,429
  30,867
  32,378
  33,967
  35,637
  37,392
Debt-to-equity ratio
  1.262
  1.050
  1.090
  1.140
  1.180
  1.230
  1.270
  1.310
  1.350
  1.390
  1.430
  1.470
  1.510
  1.540
  1.580
  1.610
  1.640
  1.670
  1.700
  1.730
  1.760
  1.780
  1.810
  1.830
  1.850
  1.870
  1.900
  1.920
  1.930
  1.950
  1.970
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
  689
  718
  750
  783
  819
  857
  898
  941
  987
  1,035
  1,304
  1,358
  1,415
  1,476
  1,540
  1,607
  1,678
  1,753
  1,831
  1,914
  2,002
  2,093
  2,190
  2,291
  2,398
  2,510
  2,628
  2,752
  2,883
  3,020
Depreciation, amort., depletion, $m
  367
  448
  454
  459
  465
  472
  479
  487
  495
  503
  512
  223
  234
  244
  255
  267
  280
  293
  307
  321
  337
  353
  370
  388
  407
  426
  447
  469
  492
  516
  542
Funds from operations, $m
  225
  1,138
  1,172
  1,209
  1,249
  1,291
  1,336
  1,384
  1,435
  1,490
  1,547
  1,527
  1,592
  1,660
  1,731
  1,807
  1,887
  1,971
  2,059
  2,153
  2,251
  2,354
  2,463
  2,578
  2,698
  2,825
  2,958
  3,098
  3,245
  3,399
  3,562
Change in working capital, $m
  -225
  37
  40
  43
  46
  49
  53
  56
  60
  63
  67
  71
  75
  79
  84
  88
  93
  98
  104
  109
  115
  121
  127
  134
  141
  148
  156
  164
  172
  181
  190
Cash from operations, $m
  450
  1,097
  1,132
  1,166
  1,202
  1,242
  1,283
  1,328
  1,376
  1,426
  1,480
  1,456
  1,517
  1,580
  1,647
  1,718
  1,793
  1,872
  1,956
  2,044
  2,136
  2,233
  2,336
  2,444
  2,557
  2,676
  2,802
  2,934
  3,073
  3,218
  3,372
Maintenance CAPEX, $m
  0
  -145
  -150
  -155
  -161
  -167
  -174
  -181
  -189
  -197
  -205
  -214
  -223
  -234
  -244
  -255
  -267
  -280
  -293
  -307
  -321
  -337
  -353
  -370
  -388
  -407
  -426
  -447
  -469
  -492
  -516
New CAPEX, $m
  -191
  -65
  -73
  -78
  -84
  -90
  -96
  -102
  -109
  -115
  -122
  -129
  -137
  -144
  -153
  -161
  -170
  -179
  -188
  -199
  -209
  -220
  -232
  -244
  -256
  -269
  -283
  -298
  -313
  -329
  -346
Cash from investing activities, $m
  -7
  -210
  -223
  -233
  -245
  -257
  -270
  -283
  -298
  -312
  -327
  -343
  -360
  -378
  -397
  -416
  -437
  -459
  -481
  -506
  -530
  -557
  -585
  -614
  -644
  -676
  -709
  -745
  -782
  -821
  -862
Free cash flow, $m
  443
  886
  909
  932
  957
  984
  1,014
  1,045
  1,079
  1,115
  1,153
  1,113
  1,156
  1,202
  1,251
  1,302
  1,357
  1,414
  1,475
  1,538
  1,606
  1,677
  1,752
  1,830
  1,913
  2,000
  2,092
  2,189
  2,290
  2,397
  2,509
Issuance/(repayment) of debt, $m
  -149
  237
  258
  278
  298
  319
  340
  362
  385
  409
  433
  459
  485
  512
  541
  571
  602
  635
  669
  704
  741
  780
  821
  864
  909
  956
  1,005
  1,056
  1,111
  1,167
  1,227
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
  237
  258
  278
  298
  319
  340
  362
  385
  409
  433
  459
  485
  512
  541
  571
  602
  635
  669
  704
  741
  780
  821
  864
  909
  956
  1,005
  1,056
  1,111
  1,167
  1,227
Total cash flow (excl. dividends), $m
  222
  1,123
  1,167
  1,210
  1,255
  1,303
  1,354
  1,407
  1,464
  1,523
  1,586
  1,572
  1,641
  1,715
  1,792
  1,873
  1,959
  2,049
  2,143
  2,243
  2,347
  2,457
  2,573
  2,694
  2,822
  2,956
  3,097
  3,245
  3,401
  3,564
  3,736
Retained Cash Flow (-), $m
  -301
  -104
  -111
  -120
  -128
  -137
  -147
  -156
  -166
  -176
  -187
  -197
  -209
  -221
  -233
  -246
  -259
  -273
  -288
  -303
  -319
  -336
  -354
  -372
  -391
  -412
  -433
  -455
  -478
  -503
  -528
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
 
  1,020
  1,056
  1,090
  1,127
  1,166
  1,207
  1,251
  1,298
  1,347
  1,399
  1,374
  1,432
  1,494
  1,559
  1,627
  1,699
  1,775
  1,855
  1,939
  2,028
  2,121
  2,219
  2,322
  2,431
  2,545
  2,664
  2,790
  2,923
  3,062
  3,208
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
 
  949
  909
  862
  811
  758
  703
  646
  588
  530
  472
  393
  343
  295
  250
  209
  172
  139
  111
  86
  66
  49
  36
  26
  18
  12
  8
  5
  3
  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 20.3
Price to Sales 0.9
Price to Book 3.8
Price to Tangible Book
Price to Cash Flow 25.8
Price to Free Cash Flow 44.8
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 3.4% 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 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 338.316 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 $11.6 billion.


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COMPANY NEWS

▶ 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]
▶ HFF hires new director in Carolinas office   [Apr-13-17 03:20PM  American City Business Journals]
▶ Phoenix metro accounted for 8% of all suburban real estate deals in US   [Apr-12-17 12:25AM  American City Business Journals]
▶ Downtown office vacancy continues to plummet   [Apr-11-17 03:30PM  American City Business Journals]
▶ Real estate's tough run   [06:48AM  CNBC Videos]
▶ Chicago prime office space rents rose sharply in 2016   [Mar-20-17 12:15PM  at bizjournals.com]
▶ Sale-leaseback listing puts price on KC Star properties   [Mar-13-17 02:09PM  at bizjournals.com]
▶ Airbnb, Hotels Spar Over Multi-Unit Rentals   [02:05PM  at MarketWatch]
▶ In 2016, CBRE's KC team again moves $400M-plus in apartments   [Mar-03-17 04:10PM  at bizjournals.com]
▶ CBRE recruits tenant rep to lead D.C. tech practice   [12:02PM  at bizjournals.com]
▶ CBRE: DFW leads the nation in office leasing activity   [Feb-28-17 05:25PM  at bizjournals.com]
▶ Introducing OBJs 2017 Coolest Office Spaces honorees   [Feb-22-17 05:45PM  at bizjournals.com]
▶ Check out the newest retailers to move to DFW   [Feb-13-17 03:42PM  at bizjournals.com]
▶ CBRE Group, Inc. Acquires Capstone Financial   [08:00AM  Business Wire]
▶ Newmark Grubb Knight Frank going public   [04:30PM  at bizjournals.com]
▶ Alaskan company buys General Electric building in Longmont   [Feb-06-17 04:10PM  at bizjournals.com]
▶ 4 new tenants join Winter Park retail complex   [Feb-03-17 02:45PM  at bizjournals.com]
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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