Intrinsic value of Dana - DAN

Previous Close

$31.18

  Intrinsic Value

$241.57

stock screener

  Rating & Target

str. buy

+675%

Previous close

$31.18

 
Intrinsic value

$241.57

 
Up/down potential

+675%

 
Rating

str. buy

We calculate the intrinsic value of DAN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 4.5

 

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, %
  -3.86
  19.00
  17.60
  16.34
  15.21
  14.19
  13.27
  12.44
  11.70
  11.03
  10.42
  9.88
  9.39
  8.95
  8.56
  8.20
  7.88
  7.59
  7.33
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.01
  5.90
  5.81
  5.73
  5.66
Revenue, $m
  5,826
  6,933
  8,153
  9,485
  10,928
  12,478
  14,133
  15,891
  17,750
  19,707
  21,762
  23,912
  26,158
  28,500
  30,940
  33,478
  36,116
  38,859
  41,709
  44,671
  47,750
  50,950
  54,278
  57,740
  61,344
  65,096
  69,005
  73,079
  77,328
  81,761
  86,388
Variable operating expenses, $m
 
  4,262
  5,011
  5,828
  6,713
  7,664
  8,679
  9,758
  10,898
  12,099
  13,359
  14,669
  16,047
  17,484
  18,980
  20,537
  22,156
  23,838
  25,587
  27,404
  29,292
  31,255
  33,297
  35,421
  37,632
  39,933
  42,331
  44,831
  47,437
  50,157
  52,995
Fixed operating expenses, $m
 
  2,023
  2,074
  2,126
  2,179
  2,233
  2,289
  2,346
  2,405
  2,465
  2,527
  2,590
  2,655
  2,721
  2,789
  2,859
  2,930
  3,004
  3,079
  3,156
  3,235
  3,315
  3,398
  3,483
  3,570
  3,660
  3,751
  3,845
  3,941
  4,040
  4,141
Total operating expenses, $m
  5,511
  6,285
  7,085
  7,954
  8,892
  9,897
  10,968
  12,104
  13,303
  14,564
  15,886
  17,259
  18,702
  20,205
  21,769
  23,396
  25,086
  26,842
  28,666
  30,560
  32,527
  34,570
  36,695
  38,904
  41,202
  43,593
  46,082
  48,676
  51,378
  54,197
  57,136
Operating income, $m
  315
  648
  1,069
  1,532
  2,036
  2,581
  3,165
  3,787
  4,447
  5,144
  5,876
  6,653
  7,456
  8,295
  9,170
  10,082
  11,030
  12,017
  13,044
  14,112
  15,223
  16,379
  17,582
  18,836
  20,142
  21,503
  22,922
  24,403
  25,950
  27,565
  29,252
EBITDA, $m
  497
  862
  1,319
  1,822
  2,369
  2,960
  3,593
  4,267
  4,982
  5,736
  6,530
  7,362
  8,232
  9,140
  10,087
  11,074
  12,100
  13,169
  14,280
  15,435
  16,638
  17,889
  19,191
  20,547
  21,959
  23,432
  24,967
  26,569
  28,241
  29,987
  31,812
Interest expense (income), $m
  111
  110
  158
  210
  267
  329
  396
  467
  543
  623
  707
  796
  888
  985
  1,085
  1,190
  1,300
  1,413
  1,531
  1,654
  1,781
  1,914
  2,051
  2,194
  2,343
  2,498
  2,660
  2,828
  3,003
  3,186
  3,377
Earnings before tax, $m
  215
  537
  911
  1,322
  1,769
  2,251
  2,769
  3,320
  3,904
  4,521
  5,169
  5,857
  6,568
  7,311
  8,085
  8,891
  9,731
  10,604
  11,513
  12,458
  13,442
  14,465
  15,531
  16,641
  17,798
  19,004
  20,262
  21,575
  22,946
  24,379
  25,876
Tax expense, $m
  -424
  145
  246
  357
  478
  608
  748
  896
  1,054
  1,221
  1,396
  1,582
  1,773
  1,974
  2,183
  2,401
  2,627
  2,863
  3,108
  3,364
  3,629
  3,906
  4,193
  4,493
  4,806
  5,131
  5,471
  5,825
  6,196
  6,582
  6,986
Net income, $m
  640
  392
  665
  965
  1,291
  1,644
  2,021
  2,424
  2,850
  3,300
  3,773
  4,276
  4,795
  5,337
  5,902
  6,491
  7,103
  7,741
  8,404
  9,094
  9,812
  10,560
  11,338
  12,148
  12,993
  13,873
  14,792
  15,750
  16,751
  17,796
  18,889

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  737
  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
  4,860
  4,907
  5,770
  6,713
  7,734
  8,831
  10,002
  11,247
  12,562
  13,947
  15,401
  16,923
  18,513
  20,170
  21,896
  23,693
  25,560
  27,501
  29,518
  31,615
  33,793
  36,058
  38,413
  40,863
  43,414
  46,069
  48,836
  51,719
  54,726
  57,863
  61,138
Adjusted assets (=assets-cash), $m
  4,123
  4,907
  5,770
  6,713
  7,734
  8,831
  10,002
  11,247
  12,562
  13,947
  15,401
  16,923
  18,513
  20,170
  21,896
  23,693
  25,560
  27,501
  29,518
  31,615
  33,793
  36,058
  38,413
  40,863
  43,414
  46,069
  48,836
  51,719
  54,726
  57,863
  61,138
Revenue / Adjusted assets
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
  1.413
Average production assets, $m
  1,396
  1,664
  1,957
  2,276
  2,623
  2,995
  3,392
  3,814
  4,260
  4,730
  5,223
  5,739
  6,278
  6,840
  7,426
  8,035
  8,668
  9,326
  10,010
  10,721
  11,460
  12,228
  13,027
  13,858
  14,722
  15,623
  16,561
  17,539
  18,559
  19,623
  20,733
Working capital, $m
  1,031
  430
  505
  588
  678
  774
  876
  985
  1,101
  1,222
  1,349
  1,483
  1,622
  1,767
  1,918
  2,076
  2,239
  2,409
  2,586
  2,770
  2,960
  3,159
  3,365
  3,580
  3,803
  4,036
  4,278
  4,531
  4,794
  5,069
  5,356
Total debt, $m
  1,664
  2,284
  3,044
  3,875
  4,774
  5,741
  6,773
  7,869
  9,028
  10,248
  11,529
  12,870
  14,271
  15,731
  17,252
  18,834
  20,479
  22,190
  23,967
  25,813
  27,733
  29,728
  31,803
  33,962
  36,208
  38,548
  40,985
  43,526
  46,175
  48,939
  51,824
Total liabilities, $m
  3,703
  4,323
  5,083
  5,914
  6,813
  7,780
  8,812
  9,908
  11,067
  12,287
  13,568
  14,909
  16,310
  17,770
  19,291
  20,873
  22,518
  24,229
  26,006
  27,852
  29,772
  31,767
  33,842
  36,001
  38,247
  40,587
  43,024
  45,565
  48,214
  50,978
  53,863
Total equity, $m
  1,157
  584
  687
  799
  920
  1,051
  1,190
  1,338
  1,495
  1,660
  1,833
  2,014
  2,203
  2,400
  2,606
  2,819
  3,042
  3,273
  3,513
  3,762
  4,021
  4,291
  4,571
  4,863
  5,166
  5,482
  5,811
  6,155
  6,512
  6,886
  7,275
Total liabilities and equity, $m
  4,860
  4,907
  5,770
  6,713
  7,733
  8,831
  10,002
  11,246
  12,562
  13,947
  15,401
  16,923
  18,513
  20,170
  21,897
  23,692
  25,560
  27,502
  29,519
  31,614
  33,793
  36,058
  38,413
  40,864
  43,413
  46,069
  48,835
  51,720
  54,726
  57,864
  61,138
Debt-to-equity ratio
  1.438
  3.910
  4.430
  4.850
  5.190
  5.460
  5.690
  5.880
  6.040
  6.170
  6.290
  6.390
  6.480
  6.550
  6.620
  6.680
  6.730
  6.780
  6.820
  6.860
  6.900
  6.930
  6.960
  6.980
  7.010
  7.030
  7.050
  7.070
  7.090
  7.110
  7.120
Adjusted equity ratio
  0.102
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  640
  392
  665
  965
  1,291
  1,644
  2,021
  2,424
  2,850
  3,300
  3,773
  4,276
  4,795
  5,337
  5,902
  6,491
  7,103
  7,741
  8,404
  9,094
  9,812
  10,560
  11,338
  12,148
  12,993
  13,873
  14,792
  15,750
  16,751
  17,796
  18,889
Depreciation, amort., depletion, $m
  182
  214
  251
  290
  333
  379
  428
  480
  535
  593
  654
  709
  775
  844
  917
  992
  1,070
  1,151
  1,236
  1,324
  1,415
  1,510
  1,608
  1,711
  1,818
  1,929
  2,045
  2,165
  2,291
  2,423
  2,560
Funds from operations, $m
  313
  607
  916
  1,255
  1,624
  2,022
  2,449
  2,903
  3,385
  3,893
  4,427
  4,984
  5,570
  6,181
  6,819
  7,483
  8,173
  8,892
  9,640
  10,418
  11,227
  12,069
  12,946
  13,859
  14,810
  15,802
  16,836
  17,915
  19,042
  20,219
  21,449
Change in working capital, $m
  -71
  69
  76
  83
  89
  96
  103
  109
  115
  121
  127
  133
  139
  145
  151
  157
  164
  170
  177
  184
  191
  198
  206
  215
  223
  233
  242
  253
  263
  275
  287
Cash from operations, $m
  384
  538
  840
  1,172
  1,535
  1,926
  2,346
  2,794
  3,270
  3,772
  4,300
  4,851
  5,431
  6,036
  6,667
  7,325
  8,010
  8,722
  9,463
  10,234
  11,036
  11,871
  12,740
  13,644
  14,587
  15,569
  16,594
  17,663
  18,779
  19,944
  21,162
Maintenance CAPEX, $m
  0
  -172
  -205
  -242
  -281
  -324
  -370
  -419
  -471
  -526
  -584
  -645
  -709
  -775
  -844
  -917
  -992
  -1,070
  -1,151
  -1,236
  -1,324
  -1,415
  -1,510
  -1,608
  -1,711
  -1,818
  -1,929
  -2,045
  -2,165
  -2,291
  -2,423
New CAPEX, $m
  -322
  -268
  -293
  -320
  -346
  -372
  -397
  -422
  -446
  -470
  -493
  -516
  -539
  -562
  -585
  -609
  -633
  -658
  -684
  -711
  -739
  -768
  -799
  -831
  -865
  -901
  -938
  -978
  -1,020
  -1,064
  -1,111
Cash from investing activities, $m
  -365
  -440
  -498
  -562
  -627
  -696
  -767
  -841
  -917
  -996
  -1,077
  -1,161
  -1,248
  -1,337
  -1,429
  -1,526
  -1,625
  -1,728
  -1,835
  -1,947
  -2,063
  -2,183
  -2,309
  -2,439
  -2,576
  -2,719
  -2,867
  -3,023
  -3,185
  -3,355
  -3,534
Free cash flow, $m
  19
  97
  342
  611
  907
  1,230
  1,579
  1,954
  2,353
  2,776
  3,223
  3,690
  4,183
  4,699
  5,238
  5,799
  6,385
  6,994
  7,628
  8,288
  8,974
  9,688
  10,431
  11,205
  12,011
  12,851
  13,727
  14,640
  15,594
  16,589
  17,629
Issuance/(repayment) of debt, $m
  68
  689
  761
  831
  899
  967
  1,032
  1,096
  1,159
  1,220
  1,281
  1,341
  1,400
  1,460
  1,521
  1,582
  1,645
  1,710
  1,777
  1,847
  1,919
  1,995
  2,075
  2,159
  2,247
  2,339
  2,437
  2,540
  2,649
  2,764
  2,885
Issuance/(repurchase) of shares, $m
  -81
  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  
  -53
  689
  761
  831
  899
  967
  1,032
  1,096
  1,159
  1,220
  1,281
  1,341
  1,400
  1,460
  1,521
  1,582
  1,645
  1,710
  1,777
  1,847
  1,919
  1,995
  2,075
  2,159
  2,247
  2,339
  2,437
  2,540
  2,649
  2,764
  2,885
Total cash flow (excl. dividends), $m
  -49
  786
  1,103
  1,442
  1,807
  2,197
  2,611
  3,050
  3,512
  3,996
  4,504
  5,031
  5,584
  6,159
  6,758
  7,382
  8,030
  8,704
  9,405
  10,134
  10,893
  11,683
  12,506
  13,364
  14,258
  15,191
  16,164
  17,181
  18,243
  19,353
  20,514
Retained Cash Flow (-), $m
  -429
  -95
  -103
  -112
  -121
  -131
  -139
  -148
  -157
  -165
  -173
  -181
  -189
  -197
  -205
  -214
  -222
  -231
  -240
  -249
  -259
  -270
  -280
  -292
  -303
  -316
  -329
  -343
  -358
  -373
  -390
Prev. year cash balance distribution, $m
 
  668
  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
 
  1,359
  1,000
  1,329
  1,685
  2,066
  2,472
  2,902
  3,355
  3,831
  4,331
  4,850
  5,394
  5,962
  6,553
  7,168
  7,808
  8,473
  9,165
  9,885
  10,634
  11,414
  12,226
  13,072
  13,955
  14,875
  15,835
  16,838
  17,885
  18,980
  20,124
Discount rate, %
 
  5.10
  5.36
  5.62
  5.90
  6.20
  6.51
  6.83
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.27
  12.89
  13.53
  14.21
  14.92
  15.66
  16.45
  17.27
  18.13
  19.04
  19.99
  20.99
PV of cash for distribution, $m
 
  1,293
  901
  1,128
  1,340
  1,530
  1,693
  1,827
  1,927
  1,993
  2,022
  2,016
  1,977
  1,908
  1,812
  1,693
  1,557
  1,408
  1,253
  1,096
  941
  794
  658
  534
  425
  330
  252
  187
  136
  96
  66
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

Dana Incorporated, formerly Dana Holding Corporation, is a global provider of technology driveline, sealing and thermal-management products. The Company operates in four segments: Light Vehicle Driveline Technologies (Light Vehicle), Commercial Vehicle Driveline Technologies (Commercial Vehicle), Off-Highway Driveline Technologies (Off-Highway) and Power Technologies. It has operations in North America, South America, Europe and Asia pacific. Its Light Vehicle segment offers products, such as front axles, rear axles, driveshafts/propshafts, differentials, torque couplings and modular assemblies. Its Commercial Vehicle segment offers products, such as steer axles, drive axles, drive shafts and tire inflation systems. Its Off-Highway segment offers products, such as front axles, rear axles, drive shafts, transmissions, torque converters, tire inflation systems and electronic controls. Its Power Technologies segment offers products, including gaskets and cover modules.

FINANCIAL RATIOS  of  Dana (DAN)

Valuation Ratios
P/E Ratio 7
Price to Sales 0.8
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 11.7
Price to Free Cash Flow 72.4
Growth Rates
Sales Growth Rate -3.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 23.8%
Cap. Spend. - 3 Yr. Gr. Rate 9%
Financial Strength
Quick Ratio 11
Current Ratio 0
LT Debt to Equity 137.9%
Total Debt to Equity 143.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 21.2%
Ret/ On Assets - 3 Yr. Avg. 11.9%
Return On Total Capital 25%
Ret/ On T. Cap. - 3 Yr. Avg. 14.2%
Return On Equity 67.9%
Return On Equity - 3 Yr. Avg. 37.4%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 14.5%
Gross Margin - 3 Yr. Avg. 14.3%
EBITDA Margin 8.7%
EBITDA Margin - 3 Yr. Avg. 9%
Operating Margin 5.4%
Oper. Margin - 3 Yr. Avg. 5.9%
Pre-Tax Margin 3.7%
Pre-Tax Margin - 3 Yr. Avg. 4.1%
Net Profit Margin 11%
Net Profit Margin - 3 Yr. Avg. 6.1%
Effective Tax Rate -197.2%
Eff/ Tax Rate - 3 Yr. Avg. -65.4%
Payout Ratio 5.5%

DAN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DAN stock intrinsic value calculation we used $5826 million for the last fiscal year's total revenue generated by Dana. The default revenue input number comes from 2016 income statement of Dana. 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 DAN stock valuation model: a) initial revenue growth rate of 19% 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 5.1%, whose default value for DAN is calculated based on our internal credit rating of Dana, 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 Dana.
    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 DAN stock the variable cost ratio is equal to 61.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1974 million in the base year in the intrinsic value calculation for DAN 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 6.9% for Dana.

Corporate tax rate of 27% is the nominal tax rate for Dana. 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 DAN 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 DAN are equal to 24%.

Life of production assets of 8.1 years is the average useful life of capital assets used in Dana 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 DAN is equal to 6.2%. 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 - $1157 million for Dana - 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 144.517 million for Dana 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 Dana at the current share price and the inputted number of shares is $4.5 billion.

RELATED COMPANIES Price Int.Val. Rating
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PCAR Paccar 66.69 76.80  hold
MTOR Meritor 23.87 5.59  str.sell
MGA Magna Internat 53.54 88.33  str.buy
CMI Cummins 159.41 155.86  hold

COMPANY NEWS

▶ ETFs with exposure to Dana, Inc. : November 6, 2017   [Nov-06-17 11:25AM  Capital Cube]
▶ At $31.34, Is Dana Incorporated (DAN) A Buy?   [Nov-05-17 08:29AM  Simply Wall St.]
▶ Dana Names Nick Stavrakis to Lead Operations in Oceania   [Oct-30-17 09:39AM  PR Newswire]
▶ Dana tops Street 3Q forecasts   [08:19AM  Associated Press]
▶ Dana Incorporated to Host Earnings Call   [08:15AM  ACCESSWIRE]
▶ Dana to Pay Dividend on Common Stock   [Oct-25-17 04:30PM  PR Newswire]
▶ Dana Announces Recipients of 2017 Supplier Awards   [Oct-11-17 03:31PM  PR Newswire]
▶ Dana Names New Chief Technology Officer   [Sep-21-17 09:00AM  PR Newswire]
▶ Lear Shows Market Leadership With Jump To 85 RS Rating   [Sep-15-17 03:00AM  Investor's Business Daily]
▶ Stocks Showing Improved Relative Strength: Magna International   [Sep-08-17 03:00AM  Investor's Business Daily]
▶ Dana, Inc. Value Analysis (NYSE:DAN) : September 6, 2017   [Sep-05-17 11:12PM  Capital Cube]
▶ Dana Incorporated Names New Chief Information Officer   [Aug-31-17 10:00AM  PR Newswire]
▶ Should Dana (DAN) Be On Your Radar Now?   [Aug-22-17 08:51AM  Zacks]
▶ ETFs with exposure to Dana, Inc. : August 15, 2017   [Aug-15-17 03:58PM  Capital Cube]
▶ Dana tops Street 2Q forecasts   [Jul-31-17 10:21PM  Associated Press]
▶ Dana to Pay Dividend on Common Stock   [Jul-26-17 04:30PM  PR Newswire]
▶ Profit From The Aging Population Of Cars   [Jul-11-17 07:53PM  Forbes]
▶ Dana Earns Quality Award from PACCAR   [Jun-21-17 09:39AM  PR Newswire]
▶ Benzinga's Option Alert Recap From June 16   [Jun-16-17 04:20PM  Benzinga]
▶ ETFs with exposure to Dana, Inc. : May 19, 2017   [May-19-17 01:48PM  Capital Cube]
▶ Dana Named Innovation Supplier of the Year by FCA   [May-15-17 01:58PM  PR Newswire]
▶ ETFs with exposure to Dana, Inc. : May 4, 2017   [May-04-17 03:53PM  Capital Cube]
▶ Dana tops Street 1Q forecasts   [May-02-17 07:19AM  Associated Press]
▶ Dana, Inc. Value Analysis (NYSE:DAN) : April 27, 2017   [Apr-27-17 04:43PM  Capital Cube]
▶ Dana to Pay Dividend on Common Stock   [04:30PM  PR Newswire]
▶ Dana Completes $400 Million in Senior Notes Offering   [Apr-04-17 11:50AM  PR Newswire]
Financial statements of DAN
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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