Intrinsic value of Consolidated-Tomoka Land - CTO

Previous Close

$54.46

  Intrinsic Value

$6.52

stock screener

  Rating & Target

str. sell

-88%

  Value-price divergence*

-22%

Previous close

$54.46

 
Intrinsic value

$6.52

 
Up/down potential

-88%

 
Rating

str. sell

 
Value-price divergence*

-22%

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

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

We calculate the intrinsic value of CTO 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 0.3

 

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, %
  65.12
  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
  71
  114
  176
  262
  381
  537
  739
  992
  1,302
  1,675
  2,116
  2,628
  3,213
  3,872
  4,607
  5,417
  6,301
  7,259
  8,287
  9,386
  10,553
  11,786
  13,084
  14,447
  15,874
  17,364
  18,918
  20,536
  22,220
  23,970
  25,790
Variable operating expenses, $m
 
  45
  69
  103
  150
  212
  291
  391
  513
  660
  834
  1,035
  1,266
  1,526
  1,815
  2,134
  2,483
  2,860
  3,265
  3,698
  4,158
  4,644
  5,155
  5,692
  6,254
  6,841
  7,454
  8,091
  8,755
  9,444
  10,161
Fixed operating expenses, $m
 
  6
  6
  6
  7
  7
  7
  7
  7
  7
  8
  8
  8
  8
  8
  9
  9
  9
  9
  10
  10
  10
  10
  11
  11
  11
  11
  12
  12
  12
  13
Total operating expenses, $m
  34
  51
  75
  109
  157
  219
  298
  398
  520
  667
  842
  1,043
  1,274
  1,534
  1,823
  2,143
  2,492
  2,869
  3,274
  3,708
  4,168
  4,654
  5,165
  5,703
  6,265
  6,852
  7,465
  8,103
  8,767
  9,456
  10,174
Operating income, $m
  37
  63
  100
  153
  224
  319
  441
  594
  782
  1,008
  1,275
  1,584
  1,939
  2,338
  2,783
  3,274
  3,810
  4,390
  5,013
  5,678
  6,385
  7,132
  7,919
  8,744
  9,609
  10,511
  11,453
  12,433
  13,453
  14,514
  15,616
EBITDA, $m
  45
  81
  128
  195
  285
  405
  559
  753
  991
  1,277
  1,615
  2,007
  2,455
  2,961
  3,524
  4,145
  4,823
  5,557
  6,345
  7,188
  8,082
  9,027
  10,023
  11,068
  12,161
  13,304
  14,495
  15,735
  17,026
  18,368
  19,763
Interest expense (income), $m
  7
  7
  14
  23
  37
  55
  79
  110
  149
  197
  255
  323
  402
  492
  594
  708
  833
  969
  1,117
  1,276
  1,446
  1,626
  1,817
  2,017
  2,228
  2,448
  2,678
  2,918
  3,168
  3,428
  3,699
Earnings before tax, $m
  28
  56
  86
  129
  188
  264
  362
  484
  632
  811
  1,020
  1,262
  1,537
  1,846
  2,189
  2,566
  2,977
  3,420
  3,896
  4,402
  4,939
  5,506
  6,102
  6,727
  7,381
  8,063
  8,775
  9,515
  10,285
  11,085
  11,917
Tax expense, $m
  12
  15
  23
  35
  51
  71
  98
  131
  171
  219
  275
  341
  415
  498
  591
  693
  804
  923
  1,052
  1,189
  1,334
  1,487
  1,648
  1,816
  1,993
  2,177
  2,369
  2,569
  2,777
  2,993
  3,218
Net income, $m
  16
  41
  63
  95
  137
  193
  264
  353
  462
  592
  744
  921
  1,122
  1,348
  1,598
  1,873
  2,173
  2,497
  2,844
  3,214
  3,606
  4,019
  4,455
  4,911
  5,388
  5,886
  6,405
  6,946
  7,508
  8,092
  8,700

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  8
  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
  409
  642
  992
  1,483
  2,152
  3,036
  4,173
  5,602
  7,356
  9,465
  11,955
  14,845
  18,150
  21,877
  26,029
  30,605
  35,601
  41,010
  46,822
  53,028
  59,619
  66,587
  73,923
  81,623
  89,683
  98,102
  106,881
  116,023
  125,535
  135,425
  145,704
Adjusted assets (=assets-cash), $m
  401
  642
  992
  1,483
  2,152
  3,036
  4,173
  5,602
  7,356
  9,465
  11,955
  14,845
  18,150
  21,877
  26,029
  30,605
  35,601
  41,010
  46,822
  53,028
  59,619
  66,587
  73,923
  81,623
  89,683
  98,102
  106,881
  116,023
  125,535
  135,425
  145,704
Revenue / Adjusted assets
  0.177
  0.178
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
Average production assets, $m
  343
  548
  847
  1,266
  1,837
  2,592
  3,563
  4,783
  6,281
  8,082
  10,208
  12,676
  15,497
  18,679
  22,225
  26,132
  30,398
  35,016
  39,979
  45,278
  50,906
  56,855
  63,119
  69,694
  76,576
  83,764
  91,260
  99,066
  107,187
  115,632
  124,409
Working capital, $m
  0
  -11
  -18
  -26
  -38
  -54
  -74
  -99
  -130
  -168
  -212
  -263
  -321
  -387
  -461
  -542
  -630
  -726
  -829
  -939
  -1,055
  -1,179
  -1,308
  -1,445
  -1,587
  -1,736
  -1,892
  -2,054
  -2,222
  -2,397
  -2,579
Total debt, $m
  166
  323
  551
  870
  1,306
  1,881
  2,622
  3,552
  4,693
  6,067
  7,688
  9,569
  11,720
  14,147
  16,850
  19,829
  23,081
  26,602
  30,386
  34,426
  38,717
  43,253
  48,029
  53,042
  58,289
  63,769
  69,484
  75,436
  81,628
  88,066
  94,758
Total liabilities, $m
  260
  418
  646
  965
  1,401
  1,976
  2,717
  3,647
  4,788
  6,162
  7,783
  9,664
  11,815
  14,242
  16,945
  19,924
  23,176
  26,697
  30,481
  34,521
  38,812
  43,348
  48,124
  53,137
  58,384
  63,864
  69,579
  75,531
  81,723
  88,161
  94,853
Total equity, $m
  148
  224
  346
  518
  751
  1,059
  1,456
  1,955
  2,567
  3,303
  4,172
  5,181
  6,334
  7,635
  9,084
  10,681
  12,425
  14,312
  16,341
  18,507
  20,807
  23,239
  25,799
  28,487
  31,299
  34,238
  37,301
  40,492
  43,812
  47,263
  50,851
Total liabilities and equity, $m
  408
  642
  992
  1,483
  2,152
  3,035
  4,173
  5,602
  7,355
  9,465
  11,955
  14,845
  18,149
  21,877
  26,029
  30,605
  35,601
  41,009
  46,822
  53,028
  59,619
  66,587
  73,923
  81,624
  89,683
  98,102
  106,880
  116,023
  125,535
  135,424
  145,704
Debt-to-equity ratio
  1.122
  1.440
  1.590
  1.680
  1.740
  1.780
  1.800
  1.820
  1.830
  1.840
  1.840
  1.850
  1.850
  1.850
  1.850
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
  1.860
Adjusted equity ratio
  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
  0.349

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  16
  41
  63
  95
  137
  193
  264
  353
  462
  592
  744
  921
  1,122
  1,348
  1,598
  1,873
  2,173
  2,497
  2,844
  3,214
  3,606
  4,019
  4,455
  4,911
  5,388
  5,886
  6,405
  6,946
  7,508
  8,092
  8,700
Depreciation, amort., depletion, $m
  8
  18
  28
  42
  61
  86
  119
  159
  209
  269
  340
  423
  517
  623
  741
  871
  1,013
  1,167
  1,333
  1,509
  1,697
  1,895
  2,104
  2,323
  2,553
  2,792
  3,042
  3,302
  3,573
  3,854
  4,147
Funds from operations, $m
  -1
  59
  91
  137
  198
  279
  383
  512
  671
  861
  1,085
  1,343
  1,638
  1,970
  2,339
  2,745
  3,186
  3,664
  4,176
  4,723
  5,302
  5,915
  6,559
  7,234
  7,941
  8,678
  9,447
  10,248
  11,081
  11,947
  12,846
Change in working capital, $m
  -15
  -4
  -6
  -9
  -12
  -16
  -20
  -25
  -31
  -37
  -44
  -51
  -58
  -66
  -73
  -81
  -88
  -96
  -103
  -110
  -117
  -123
  -130
  -136
  -143
  -149
  -155
  -162
  -168
  -175
  -182
Cash from operations, $m
  14
  63
  98
  145
  210
  295
  403
  538
  702
  898
  1,129
  1,395
  1,697
  2,036
  2,412
  2,826
  3,275
  3,760
  4,279
  4,833
  5,419
  6,038
  6,688
  7,370
  8,083
  8,827
  9,603
  10,410
  11,249
  12,122
  13,028
Maintenance CAPEX, $m
  0
  -11
  -18
  -28
  -42
  -61
  -86
  -119
  -159
  -209
  -269
  -340
  -423
  -517
  -623
  -741
  -871
  -1,013
  -1,167
  -1,333
  -1,509
  -1,697
  -1,895
  -2,104
  -2,323
  -2,553
  -2,792
  -3,042
  -3,302
  -3,573
  -3,854
New CAPEX, $m
  -97
  -206
  -299
  -420
  -571
  -755
  -971
  -1,220
  -1,497
  -1,801
  -2,126
  -2,468
  -2,822
  -3,182
  -3,545
  -3,908
  -4,266
  -4,618
  -4,963
  -5,299
  -5,628
  -5,949
  -6,264
  -6,575
  -6,882
  -7,188
  -7,496
  -7,806
  -8,122
  -8,445
  -8,777
Cash from investing activities, $m
  -23
  -217
  -317
  -448
  -613
  -816
  -1,057
  -1,339
  -1,656
  -2,010
  -2,395
  -2,808
  -3,245
  -3,699
  -4,168
  -4,649
  -5,137
  -5,631
  -6,130
  -6,632
  -7,137
  -7,646
  -8,159
  -8,679
  -9,205
  -9,741
  -10,288
  -10,848
  -11,424
  -12,018
  -12,631
Free cash flow, $m
  -9
  -154
  -219
  -302
  -403
  -521
  -655
  -801
  -955
  -1,112
  -1,267
  -1,414
  -1,547
  -1,663
  -1,756
  -1,823
  -1,862
  -1,872
  -1,851
  -1,799
  -1,718
  -1,608
  -1,471
  -1,308
  -1,122
  -913
  -685
  -438
  -175
  104
  397
Issuance/(repayment) of debt, $m
  21
  157
  228
  320
  435
  575
  741
  930
  1,142
  1,373
  1,621
  1,882
  2,151
  2,426
  2,703
  2,979
  3,252
  3,521
  3,784
  4,040
  4,291
  4,536
  4,776
  5,013
  5,247
  5,481
  5,715
  5,952
  6,192
  6,438
  6,692
Issuance/(repurchase) of shares, $m
  -7
  43
  59
  77
  96
  116
  133
  146
  150
  144
  125
  88
  31
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  14
  200
  287
  397
  531
  691
  874
  1,076
  1,292
  1,517
  1,746
  1,970
  2,182
  2,426
  2,703
  2,979
  3,252
  3,521
  3,784
  4,040
  4,291
  4,536
  4,776
  5,013
  5,247
  5,481
  5,715
  5,952
  6,192
  6,438
  6,692
Total cash flow (excl. dividends), $m
  5
  46
  67
  94
  129
  170
  219
  275
  337
  406
  479
  556
  635
  764
  948
  1,156
  1,390
  1,649
  1,933
  2,241
  2,573
  2,928
  3,305
  3,704
  4,125
  4,567
  5,030
  5,513
  6,018
  6,543
  7,089
Retained Cash Flow (-), $m
  -13
  -84
  -122
  -171
  -233
  -309
  -397
  -499
  -612
  -736
  -869
  -1,009
  -1,153
  -1,301
  -1,449
  -1,597
  -1,744
  -1,888
  -2,028
  -2,166
  -2,300
  -2,432
  -2,560
  -2,687
  -2,813
  -2,938
  -3,064
  -3,191
  -3,320
  -3,452
  -3,588
Prev. year cash balance distribution, $m
 
  8
  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
 
  -30
  -55
  -77
  -105
  -139
  -178
  -224
  -275
  -330
  -390
  -453
  -518
  -537
  -502
  -441
  -353
  -238
  -95
  75
  272
  496
  745
  1,017
  1,312
  1,629
  1,966
  2,323
  2,698
  3,091
  3,501
Discount rate, %
 
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
 
  -27
  -46
  -59
  -73
  -86
  -98
  -108
  -115
  -118
  -118
  -114
  -107
  -90
  -67
  -46
  -28
  -14
  -4
  2
  6
  8
  8
  7
  6
  5
  3
  2
  2
  1
  1
Current shareholders' claim on cash, %
  100
  87.1
  77.4
  69.9
  64.2
  59.8
  56.4
  53.8
  51.9
  50.5
  49.6
  49.1
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0
  49.0

Consolidated-Tomoka Land Co., through its subsidiaries, operates as a diversified real estate operating company in the United States. It owns and manages commercial real estate properties. As of September 16, 2016, the company had land holdings of approximately 10,500 acres in Daytona Beach area; 32 single-tenant retail buildings located in Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, North Carolina, Texas, and Washington; 8 multi-tenant properties located in Florida, including 5 self-developed properties located in Daytona Beach, Florida; and full or fractional subsurface oil, gas, and mineral interests of approximately 500,000 surface acres in 20 counties in Florida. It also operates a semi-private property with two 18-hole championship golf courses, a three-hole practice facility of golf, a fitness facility, and a swimming pool, as well as a clubhouse facility, including a restaurant and bar. In addition, the company leases land for 21 billboards; and hay and sod production, timber harvesting, and hunting, as well as owns and manages subsurface interests. Consolidated-Tomoka Land Co. was founded in 1902 and is headquartered in Daytona Beach, Florida.

FINANCIAL RATIOS  of  Consolidated-Tomoka Land (CTO)

Valuation Ratios
P/E Ratio 19.4
Price to Sales 4.4
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 22.2
Price to Free Cash Flow -3.7
Growth Rates
Sales Growth Rate 65.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 15.5%
Cap. Spend. - 3 Yr. Gr. Rate 18.8%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 112.2%
Total Debt to Equity 112.2%
Interest Coverage 5
Management Effectiveness
Return On Assets 4.9%
Ret/ On Assets - 3 Yr. Avg. 3.7%
Return On Total Capital 5.2%
Ret/ On T. Cap. - 3 Yr. Avg. 3.7%
Return On Equity 11.3%
Return On Equity - 3 Yr. Avg. 7.4%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 63.4%
Gross Margin - 3 Yr. Avg. 65.8%
EBITDA Margin 60.6%
EBITDA Margin - 3 Yr. Avg. 52.7%
Operating Margin 52.1%
Oper. Margin - 3 Yr. Avg. 44.9%
Pre-Tax Margin 39.4%
Pre-Tax Margin - 3 Yr. Avg. 33.3%
Net Profit Margin 22.5%
Net Profit Margin - 3 Yr. Avg. 19.3%
Effective Tax Rate 42.9%
Eff/ Tax Rate - 3 Yr. Avg. 41.9%
Payout Ratio 6.3%

CTO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CTO stock intrinsic value calculation we used $71 million for the last fiscal year's total revenue generated by Consolidated-Tomoka Land. The default revenue input number comes from 2016 income statement of Consolidated-Tomoka Land. 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 CTO 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 8.2%, whose default value for CTO is calculated based on our internal credit rating of Consolidated-Tomoka Land, 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 Consolidated-Tomoka Land.
    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 CTO stock the variable cost ratio is equal to 39.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $6 million in the base year in the intrinsic value calculation for CTO 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 4.2% for Consolidated-Tomoka Land.

Corporate tax rate of 27% is the nominal tax rate for Consolidated-Tomoka Land. 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 CTO 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 CTO are equal to 482.4%.

Life of production assets of 42.8 years is the average useful life of capital assets used in Consolidated-Tomoka Land 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 CTO is equal to -10%. 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 - $148 million for Consolidated-Tomoka Land - 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 5.676 million for Consolidated-Tomoka Land 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 Consolidated-Tomoka Land at the current share price and the inputted number of shares is $0.3 billion.

RELATED COMPANIES Price Int.Val. Rating
MATW Matthews Inter 60.95 43.47  sell
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COMPANY NEWS

▶ Consolidated-Tomoka posts 2Q profit   [Jul-19-17 11:00PM  Associated Press]
▶ Consolidated-Tomoka posts 1Q profit   [Apr-17-17 04:36PM  Associated Press]
▶ Consolidated-Tomoka Mails Letter to Shareholders   [Mar-30-17 08:24AM  Business Wire]
▶ 4 new tenants join Winter Park retail complex   [Feb-03-17 02:45PM  at bizjournals.com]
▶ Activism 101: Read Corporate Bylaws --- Dealpolitik   [12:11PM  at The Wall Street Journal]
▶ Consolidated Tomoka Issues Response to Wintergreen Advisers   [Jan-30-17 09:00AM  Business Wire]
Stock chart of CTO Financial statements of CTO
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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