Intrinsic value of Cousins Properties - CUZ

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$8.96

  Intrinsic Value

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  Value-price divergence*

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$8.96

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

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

We calculate the intrinsic value of CUZ 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 3.7

 

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, %
  26.96
  27.00
  24.80
  22.82
  21.04
  19.43
  17.99
  16.69
  15.52
  14.47
  13.52
  12.67
  11.90
  11.21
  10.59
  10.03
  9.53
  9.08
  8.67
  8.30
  7.97
  7.67
  7.41
  7.17
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.04
Revenue, $m
  259
  329
  411
  504
  610
  729
  860
  1,004
  1,159
  1,327
  1,507
  1,697
  1,899
  2,112
  2,336
  2,571
  2,816
  3,071
  3,337
  3,614
  3,903
  4,202
  4,513
  4,837
  5,173
  5,522
  5,886
  6,264
  6,657
  7,066
  7,493
Variable operating expenses, $m
 
  283
  353
  434
  525
  627
  740
  863
  997
  1,142
  1,296
  1,460
  1,634
  1,817
  2,010
  2,211
  2,422
  2,642
  2,871
  3,109
  3,357
  3,615
  3,882
  4,161
  4,450
  4,750
  5,063
  5,388
  5,726
  6,079
  6,446
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
  259
  283
  353
  434
  525
  627
  740
  863
  997
  1,142
  1,296
  1,460
  1,634
  1,817
  2,010
  2,211
  2,422
  2,642
  2,871
  3,109
  3,357
  3,615
  3,882
  4,161
  4,450
  4,750
  5,063
  5,388
  5,726
  6,079
  6,446
Operating income, $m
  0
  46
  57
  70
  85
  102
  120
  140
  162
  185
  210
  237
  265
  295
  327
  359
  394
  429
  466
  505
  545
  587
  631
  676
  723
  772
  823
  875
  930
  988
  1,047
EBITDA, $m
  145
  230
  287
  352
  426
  509
  601
  701
  810
  927
  1,052
  1,186
  1,327
  1,476
  1,632
  1,796
  1,967
  2,146
  2,332
  2,525
  2,726
  2,936
  3,153
  3,379
  3,614
  3,858
  4,112
  4,376
  4,651
  4,937
  5,235
Interest expense (income), $m
  32
  48
  64
  83
  105
  129
  156
  187
  220
  256
  294
  336
  380
  426
  475
  527
  581
  637
  696
  758
  822
  888
  957
  1,029
  1,103
  1,181
  1,261
  1,345
  1,432
  1,523
  1,617
Earnings before tax, $m
  50
  -3
  -7
  -13
  -19
  -27
  -36
  -46
  -58
  -70
  -84
  -98
  -114
  -131
  -149
  -168
  -187
  -208
  -230
  -253
  -276
  -301
  -326
  -353
  -380
  -409
  -439
  -470
  -502
  -535
  -570
Tax expense, $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
Net income, $m
  79
  -3
  -7
  -13
  -19
  -27
  -36
  -46
  -58
  -70
  -84
  -98
  -114
  -131
  -149
  -168
  -187
  -208
  -230
  -253
  -276
  -301
  -326
  -353
  -380
  -409
  -439
  -470
  -502
  -535
  -570

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  36
  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
  4,172
  5,221
  6,516
  8,003
  9,687
  11,569
  13,650
  15,929
  18,401
  21,064
  23,913
  26,943
  30,150
  33,531
  37,082
  40,803
  44,691
  48,748
  52,974
  57,371
  61,945
  66,699
  71,640
  76,774
  82,109
  87,656
  93,423
  99,422
  105,665
  112,165
  118,935
Adjusted assets (=assets-cash), $m
  4,136
  5,221
  6,516
  8,003
  9,687
  11,569
  13,650
  15,929
  18,401
  21,064
  23,913
  26,943
  30,150
  33,531
  37,082
  40,803
  44,691
  48,748
  52,974
  57,371
  61,945
  66,699
  71,640
  76,774
  82,109
  87,656
  93,423
  99,422
  105,665
  112,165
  118,935
Revenue / Adjusted assets
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
Average production assets, $m
  3,011
  3,823
  4,772
  5,861
  7,094
  8,472
  9,996
  11,665
  13,476
  15,426
  17,512
  19,730
  22,079
  24,555
  27,156
  29,880
  32,728
  35,698
  38,793
  42,014
  45,363
  48,845
  52,463
  56,222
  60,130
  64,191
  68,415
  72,808
  77,380
  82,140
  87,098
Working capital, $m
  0
  -46
  -57
  -70
  -85
  -101
  -120
  -139
  -161
  -184
  -209
  -236
  -264
  -294
  -325
  -357
  -391
  -427
  -464
  -502
  -542
  -584
  -627
  -672
  -719
  -768
  -818
  -871
  -925
  -982
  -1,042
Total debt, $m
  1,381
  1,832
  2,369
  2,986
  3,685
  4,466
  5,330
  6,275
  7,302
  8,407
  9,589
  10,846
  12,177
  13,580
  15,054
  16,598
  18,212
  19,895
  21,649
  23,474
  25,372
  27,345
  29,395
  31,526
  33,740
  36,042
  38,436
  40,925
  43,516
  46,213
  49,023
Total liabilities, $m
  1,716
  2,167
  2,704
  3,321
  4,020
  4,801
  5,665
  6,610
  7,637
  8,742
  9,924
  11,181
  12,512
  13,915
  15,389
  16,933
  18,547
  20,230
  21,984
  23,809
  25,707
  27,680
  29,730
  31,861
  34,075
  36,377
  38,771
  41,260
  43,851
  46,548
  49,358
Total equity, $m
  2,456
  3,054
  3,812
  4,682
  5,667
  6,768
  7,985
  9,318
  10,765
  12,323
  13,989
  15,761
  17,638
  19,615
  21,693
  23,870
  26,144
  28,517
  30,990
  33,562
  36,238
  39,019
  41,909
  44,913
  48,034
  51,279
  54,652
  58,162
  61,814
  65,616
  69,577
Total liabilities and equity, $m
  4,172
  5,221
  6,516
  8,003
  9,687
  11,569
  13,650
  15,928
  18,402
  21,065
  23,913
  26,942
  30,150
  33,530
  37,082
  40,803
  44,691
  48,747
  52,974
  57,371
  61,945
  66,699
  71,639
  76,774
  82,109
  87,656
  93,423
  99,422
  105,665
  112,164
  118,935
Debt-to-equity ratio
  0.562
  0.600
  0.620
  0.640
  0.650
  0.660
  0.670
  0.670
  0.680
  0.680
  0.690
  0.690
  0.690
  0.690
  0.690
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
  0.700
Adjusted equity ratio
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  79
  -3
  -7
  -13
  -19
  -27
  -36
  -46
  -58
  -70
  -84
  -98
  -114
  -131
  -149
  -168
  -187
  -208
  -230
  -253
  -276
  -301
  -326
  -353
  -380
  -409
  -439
  -470
  -502
  -535
  -570
Depreciation, amort., depletion, $m
  145
  184
  230
  282
  341
  408
  481
  561
  648
  742
  842
  949
  1,061
  1,181
  1,306
  1,437
  1,573
  1,716
  1,865
  2,020
  2,181
  2,348
  2,522
  2,703
  2,891
  3,086
  3,289
  3,500
  3,720
  3,949
  4,187
Funds from operations, $m
  100
  181
  223
  269
  322
  380
  444
  515
  590
  672
  758
  850
  947
  1,050
  1,157
  1,269
  1,386
  1,508
  1,635
  1,767
  1,905
  2,048
  2,196
  2,350
  2,510
  2,677
  2,850
  3,031
  3,218
  3,414
  3,617
Change in working capital, $m
  -11
  -10
  -11
  -13
  -15
  -16
  -18
  -20
  -22
  -23
  -25
  -27
  -28
  -30
  -31
  -33
  -34
  -36
  -37
  -39
  -40
  -42
  -43
  -45
  -47
  -49
  -51
  -53
  -55
  -57
  -59
Cash from operations, $m
  111
  873
  234
  282
  337
  397
  463
  534
  612
  695
  783
  877
  975
  1,079
  1,188
  1,302
  1,420
  1,544
  1,672
  1,806
  1,945
  2,089
  2,239
  2,395
  2,557
  2,726
  2,901
  3,083
  3,273
  3,471
  3,677
Maintenance CAPEX, $m
  0
  -145
  -184
  -229
  -282
  -341
  -407
  -481
  -561
  -648
  -742
  -842
  -949
  -1,061
  -1,181
  -1,306
  -1,437
  -1,573
  -1,716
  -1,865
  -2,020
  -2,181
  -2,348
  -2,522
  -2,703
  -2,891
  -3,086
  -3,289
  -3,500
  -3,720
  -3,949
New CAPEX, $m
  -194
  -813
  -948
  -1,089
  -1,233
  -1,379
  -1,524
  -1,669
  -1,811
  -1,950
  -2,086
  -2,219
  -2,349
  -2,476
  -2,601
  -2,725
  -2,847
  -2,971
  -3,095
  -3,221
  -3,349
  -3,481
  -3,618
  -3,760
  -3,907
  -4,062
  -4,223
  -4,393
  -4,572
  -4,760
  -4,958
Cash from investing activities, $m
  461
  -958
  -1,132
  -1,318
  -1,515
  -1,720
  -1,931
  -2,150
  -2,372
  -2,598
  -2,828
  -3,061
  -3,298
  -3,537
  -3,782
  -4,031
  -4,284
  -4,544
  -4,811
  -5,086
  -5,369
  -5,662
  -5,966
  -6,282
  -6,610
  -6,953
  -7,309
  -7,682
  -8,072
  -8,480
  -8,907
Free cash flow, $m
  572
  -85
  -898
  -1,036
  -1,178
  -1,323
  -1,469
  -1,615
  -1,760
  -1,903
  -2,044
  -2,184
  -2,322
  -2,458
  -2,594
  -2,729
  -2,864
  -3,000
  -3,139
  -3,280
  -3,424
  -3,573
  -3,727
  -3,887
  -4,053
  -4,227
  -4,409
  -4,599
  -4,799
  -5,010
  -5,231
Issuance/(repayment) of debt, $m
  5
  451
  537
  617
  699
  781
  864
  946
  1,026
  1,105
  1,182
  1,257
  1,331
  1,403
  1,474
  1,544
  1,614
  1,683
  1,754
  1,825
  1,898
  1,973
  2,050
  2,131
  2,214
  2,302
  2,393
  2,490
  2,591
  2,697
  2,810
Issuance/(repurchase) of shares, $m
  -14
  233
  1,118
  1,289
  1,464
  1,643
  1,823
  2,002
  2,180
  2,356
  2,529
  2,699
  2,867
  3,033
  3,197
  3,361
  3,525
  3,690
  3,857
  4,027
  4,202
  4,381
  4,567
  4,760
  4,960
  5,170
  5,389
  5,619
  5,861
  6,115
  6,382
Cash from financing (excl. dividends), $m  
  -488
  684
  1,655
  1,906
  2,163
  2,424
  2,687
  2,948
  3,206
  3,461
  3,711
  3,956
  4,198
  4,436
  4,671
  4,905
  5,139
  5,373
  5,611
  5,852
  6,100
  6,354
  6,617
  6,891
  7,174
  7,472
  7,782
  8,109
  8,452
  8,812
  9,192
Total cash flow (excl. dividends), $m
  85
  366
  -361
  -419
  -479
  -542
  -605
  -669
  -733
  -798
  -862
  -927
  -991
  -1,055
  -1,120
  -1,185
  -1,250
  -1,317
  -1,385
  -1,455
  -1,526
  -1,600
  -1,677
  -1,756
  -1,839
  -1,925
  -2,015
  -2,110
  -2,208
  -2,312
  -2,421
Retained Cash Flow (-), $m
  -773
  -634
  -757
  -870
  -985
  -1,101
  -1,218
  -1,333
  -1,446
  -1,558
  -1,666
  -1,773
  -1,876
  -1,978
  -2,078
  -2,176
  -2,275
  -2,373
  -2,472
  -2,573
  -2,676
  -2,781
  -2,890
  -3,003
  -3,121
  -3,245
  -3,374
  -3,509
  -3,652
  -3,802
  -3,961
Prev. year cash balance distribution, $m
 
  36
  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
 
  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
Discount rate, %
 
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for 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
Current shareholders' claim on cash, %
  100
  94.1
  75.8
  62.1
  51.5
  43.2
  36.7
  31.5
  27.3
  23.9
  21.1
  18.7
  16.7
  15.0
  13.6
  12.3
  11.2
  10.3
  9.4
  8.7
  8.0
  7.4
  6.9
  6.4
  6.0
  5.6
  5.2
  4.9
  4.6
  4.3
  4.1

Cousins Properties Incorporated, a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services in the United States. The company operates through four divisions: Office/Multi-Family, Retail, Industrial, and Land. The Office/Multi-Family division develops and manages office projects primarily in Austin, Dallas, Charlotte, Birmingham, and Atlanta; develops and sells multi-family projects in urban locations in the southeastern United States; and manages and leases office properties owned by third parties. It also develops mixed use projects that contain multiple product types in communities where individuals live, work, and seek entertainment. As of December 31, 2006, this division owned interests in 20 operating office properties; and had 5 office or multi-family projects under development or redevelopment. The Retail division develops and manages retail shopping centers principally in Georgia, Tennessee, North Carolina, Texas, and Florida. As of the above date, this division owned 10 operating retail properties; and had 3 projects and 1 expansion under development. The Industrial division develops institutional warehouse and distribution properties in the metropolitan Atlanta area and the Dallas market. As of December 31, 2006, this division owned one operating industrial property and three projects under development. The Land division engages in the acquisition and entitlement of land, the development and sale of residential lots, and the acquisition and sale of certain undeveloped tracts of land to third parties. As of the above date, this division had 24 residential communities under development. The company qualifies as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Cousins Properties was founded in 1958 and is based in Atlanta, Georgia.

FINANCIAL RATIOS  of  Cousins Properties (CUZ)

Valuation Ratios
P/E Ratio 44.6
Price to Sales 13.6
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 31.8
Price to Free Cash Flow -42.5
Growth Rates
Sales Growth Rate 27%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.9%
Cap. Spend. - 3 Yr. Gr. Rate -33.8%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 56.2%
Total Debt to Equity 56.2%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.3%
Ret/ On Assets - 3 Yr. Avg. 4.2%
Return On Total Capital 2.5%
Ret/ On T. Cap. - 3 Yr. Avg. 3.3%
Return On Equity 3.8%
Return On Equity - 3 Yr. Avg. 4.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 60.2%
Gross Margin - 3 Yr. Avg. 58%
EBITDA Margin 87.6%
EBITDA Margin - 3 Yr. Avg. 102.3%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 6.4%
Pre-Tax Margin 19.3%
Pre-Tax Margin - 3 Yr. Avg. 20.9%
Net Profit Margin 30.5%
Net Profit Margin - 3 Yr. Avg. 40.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 64.6%

CUZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CUZ stock intrinsic value calculation we used $259 million for the last fiscal year's total revenue generated by Cousins Properties. The default revenue input number comes from 2016 income statement of Cousins Properties. 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 CUZ stock valuation model: a) initial revenue growth rate of 27% 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 7.7%, whose default value for CUZ is calculated based on our internal credit rating of Cousins Properties, 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 Cousins Properties.
    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 CUZ stock the variable cost ratio is equal to 86.1%.

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 CUZ 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 Cousins Properties.

Corporate tax rate of 27% is the nominal tax rate for Cousins Properties. 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 CUZ 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 CUZ are equal to 1162.4%.

Life of production assets of 20.8 years is the average useful life of capital assets used in Cousins Properties 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 CUZ is equal to -13.9%. 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 - $2456 million for Cousins Properties - 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 417.351 million for Cousins Properties 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 Cousins Properties at the current share price and the inputted number of shares is $3.7 billion.


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COMPANY NEWS

▶ Cousins Announces Closing Of Emory Point Disposition   [May-03-17 04:15PM  PR Newswire]
▶ Cousins Properties reports 1Q results   [Apr-27-17 07:20PM  Associated Press]
▶ Tim Hendricks, a builder of Austin icons, to be honored   [Apr-10-17 04:10PM  American City Business Journals]
▶ Parkway Reports Fourth Quarter 2016 Results   [Feb-23-17 04:34PM  PR Newswire]
▶ 3 Top Stocks Under $10   [Feb-03-17 09:46AM  at Motley Fool]
▶ Exclusive: Bank of America Center may get $8M in renovations   [Dec-27-16 03:45PM  at bizjournals.com]
▶ Is BancorpSouth, Inc. (BXS) A Good Stock To Buy?   [Dec-08-16 04:27PM  at Insider Monkey]
▶ HB Fuller Co (FUL): Are Hedge Funds Right About This Stock?   [Dec-06-16 10:09AM  at Insider Monkey]
▶ Gilead, Mylan Return to Fridays 52-Week Low Club   [Oct-07-16 04:04PM  at 24/7 Wall St.]
▶ Cousins closes on Parkway Properties merger   [Oct-06-16 08:07PM  at bizjournals.com]
Stock chart of CUZ Financial statements of CUZ Annual reports of CUZ
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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