Intrinsic value of Dana - DAN

Previous Close

$33.51

  Intrinsic Value

$620.47

stock screener

  Rating & Target

str. buy

+999%

Previous close

$33.51

 
Intrinsic value

$620.47

 
Up/down potential

+999%

 
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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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
  32.30
  29.57
  27.11
  24.90
  22.91
  21.12
  19.51
  18.06
  16.75
  15.58
  14.52
  13.57
  12.71
  11.94
  11.25
  10.62
  10.06
  9.55
  9.10
  8.69
  8.32
  7.99
  7.69
  7.42
  7.18
  6.96
  6.76
  6.59
  6.43
  6.29
Revenue, $m
  5,826
  7,708
  9,987
  12,695
  15,856
  19,489
  23,605
  28,210
  33,304
  38,883
  44,939
  51,464
  58,446
  65,875
  73,740
  82,032
  90,745
  99,873
  109,414
  119,367
  129,738
  140,531
  151,755
  163,423
  175,548
  188,148
  201,243
  214,855
  229,009
  243,731
  259,052
Variable operating expenses, $m
 
  4,737
  6,136
  7,797
  9,736
  11,965
  14,490
  17,314
  20,439
  23,862
  27,577
  31,571
  35,854
  40,411
  45,236
  50,323
  55,668
  61,267
  67,120
  73,227
  79,588
  86,209
  93,095
  100,253
  107,691
  115,421
  123,454
  131,804
  140,487
  149,518
  158,917
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
  6,760
  8,210
  9,923
  11,915
  14,198
  16,779
  19,660
  22,844
  26,327
  30,104
  34,161
  38,509
  43,132
  48,025
  53,182
  58,598
  64,271
  70,199
  76,383
  82,823
  89,524
  96,493
  103,736
  111,261
  119,081
  127,205
  135,649
  144,428
  153,558
  163,058
Operating income, $m
  315
  947
  1,777
  2,772
  3,941
  5,291
  6,826
  8,549
  10,459
  12,556
  14,835
  17,303
  19,937
  22,742
  25,715
  28,850
  32,147
  35,602
  39,214
  42,985
  46,915
  51,006
  55,262
  59,687
  64,287
  69,068
  74,038
  79,206
  84,581
  90,173
  95,994
EBITDA, $m
  497
  1,184
  2,082
  3,157
  4,420
  5,877
  7,535
  9,394
  11,455
  13,717
  16,176
  18,828
  21,669
  24,694
  27,900
  31,281
  34,835
  38,561
  42,456
  46,522
  50,759
  55,170
  59,758
  64,529
  69,488
  74,643
  80,001
  85,572
  91,366
  97,395
  103,670
Interest expense (income), $m
  111
  110
  191
  289
  405
  541
  698
  875
  1,073
  1,292
  1,532
  1,793
  2,073
  2,374
  2,693
  3,032
  3,388
  3,763
  4,156
  4,566
  4,995
  5,441
  5,905
  6,388
  6,890
  7,412
  7,954
  8,517
  9,103
  9,712
  10,345
Earnings before tax, $m
  215
  837
  1,587
  2,483
  3,536
  4,749
  6,128
  7,674
  9,386
  11,264
  13,303
  15,511
  17,864
  20,369
  23,021
  25,819
  28,758
  31,838
  35,058
  38,419
  41,920
  45,565
  49,357
  53,299
  57,397
  61,656
  66,085
  70,689
  75,478
  80,462
  85,650
Tax expense, $m
  -424
  226
  428
  671
  955
  1,282
  1,655
  2,072
  2,534
  3,041
  3,592
  4,188
  4,823
  5,500
  6,216
  6,971
  7,765
  8,596
  9,466
  10,373
  11,318
  12,303
  13,326
  14,391
  15,497
  16,647
  17,843
  19,086
  20,379
  21,725
  23,125
Net income, $m
  640
  611
  1,158
  1,813
  2,581
  3,467
  4,474
  5,602
  6,852
  8,222
  9,711
  11,323
  13,041
  14,869
  16,806
  18,848
  20,993
  23,242
  25,593
  28,046
  30,602
  33,263
  36,030
  38,908
  41,900
  45,009
  48,242
  51,603
  55,099
  58,737
  62,524

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
  5,455
  7,068
  8,984
  11,222
  13,793
  16,706
  19,965
  23,570
  27,518
  31,804
  36,422
  41,363
  46,621
  52,187
  58,056
  64,222
  70,681
  77,433
  84,478
  91,817
  99,456
  107,399
  115,657
  124,238
  133,155
  142,423
  152,056
  162,073
  172,492
  183,334
Adjusted assets (=assets-cash), $m
  4,123
  5,455
  7,068
  8,984
  11,222
  13,793
  16,706
  19,965
  23,570
  27,518
  31,804
  36,422
  41,363
  46,621
  52,187
  58,056
  64,222
  70,681
  77,433
  84,478
  91,817
  99,456
  107,399
  115,657
  124,238
  133,155
  142,423
  152,056
  162,073
  172,492
  183,334
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
  1,850
  2,397
  3,047
  3,805
  4,677
  5,665
  6,770
  7,993
  9,332
  10,785
  12,351
  14,027
  15,810
  17,698
  19,688
  21,779
  23,969
  26,259
  28,648
  31,137
  33,727
  36,421
  39,221
  42,132
  45,156
  48,298
  51,565
  54,962
  58,495
  62,172
Working capital, $m
  1,031
  478
  619
  787
  983
  1,208
  1,464
  1,749
  2,065
  2,411
  2,786
  3,191
  3,624
  4,084
  4,572
  5,086
  5,626
  6,192
  6,784
  7,401
  8,044
  8,713
  9,409
  10,132
  10,884
  11,665
  12,477
  13,321
  14,199
  15,111
  16,061
Total debt, $m
  1,664
  2,767
  4,188
  5,876
  7,847
  10,112
  12,679
  15,550
  18,726
  22,204
  25,981
  30,049
  34,402
  39,034
  43,938
  49,108
  54,540
  60,231
  66,180
  72,386
  78,852
  85,581
  92,580
  99,855
  107,415
  115,271
  123,435
  131,922
  140,747
  149,926
  159,479
Total liabilities, $m
  3,703
  4,806
  6,227
  7,915
  9,886
  12,151
  14,718
  17,589
  20,765
  24,243
  28,020
  32,088
  36,441
  41,073
  45,977
  51,147
  56,579
  62,270
  68,219
  74,425
  80,891
  87,620
  94,619
  101,894
  109,454
  117,310
  125,474
  133,961
  142,786
  151,965
  161,518
Total equity, $m
  1,157
  649
  841
  1,069
  1,335
  1,641
  1,988
  2,376
  2,805
  3,275
  3,785
  4,334
  4,922
  5,548
  6,210
  6,909
  7,642
  8,411
  9,215
  10,053
  10,926
  11,835
  12,781
  13,763
  14,784
  15,845
  16,948
  18,095
  19,287
  20,527
  21,817
Total liabilities and equity, $m
  4,860
  5,455
  7,068
  8,984
  11,221
  13,792
  16,706
  19,965
  23,570
  27,518
  31,805
  36,422
  41,363
  46,621
  52,187
  58,056
  64,221
  70,681
  77,434
  84,478
  91,817
  99,455
  107,400
  115,657
  124,238
  133,155
  142,422
  152,056
  162,073
  172,492
  183,335
Debt-to-equity ratio
  1.438
  4.260
  4.980
  5.500
  5.880
  6.160
  6.380
  6.550
  6.680
  6.780
  6.860
  6.930
  6.990
  7.040
  7.080
  7.110
  7.140
  7.160
  7.180
  7.200
  7.220
  7.230
  7.240
  7.260
  7.270
  7.270
  7.280
  7.290
  7.300
  7.300
  7.310
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
  611
  1,158
  1,813
  2,581
  3,467
  4,474
  5,602
  6,852
  8,222
  9,711
  11,323
  13,041
  14,869
  16,806
  18,848
  20,993
  23,242
  25,593
  28,046
  30,602
  33,263
  36,030
  38,908
  41,900
  45,009
  48,242
  51,603
  55,099
  58,737
  62,524
Depreciation, amort., depletion, $m
  182
  237
  305
  385
  479
  586
  708
  845
  996
  1,161
  1,341
  1,525
  1,732
  1,952
  2,185
  2,431
  2,689
  2,959
  3,242
  3,537
  3,844
  4,164
  4,496
  4,842
  5,201
  5,575
  5,963
  6,366
  6,785
  7,222
  7,676
Funds from operations, $m
  313
  848
  1,463
  2,198
  3,060
  4,054
  5,182
  6,447
  7,848
  9,384
  11,052
  12,848
  14,772
  16,821
  18,990
  21,278
  23,682
  26,201
  28,835
  31,582
  34,446
  37,426
  40,527
  43,750
  47,101
  50,584
  54,205
  57,969
  61,885
  65,959
  70,200
Change in working capital, $m
  -71
  117
  141
  168
  196
  225
  255
  286
  316
  346
  376
  405
  433
  461
  488
  514
  540
  566
  592
  617
  643
  669
  696
  723
  752
  781
  812
  844
  878
  913
  950
Cash from operations, $m
  384
  732
  1,322
  2,030
  2,864
  3,828
  4,927
  6,161
  7,532
  9,038
  10,676
  12,443
  14,340
  16,360
  18,503
  20,764
  23,142
  25,635
  28,243
  30,965
  33,803
  36,757
  39,831
  43,027
  46,349
  49,803
  53,393
  57,125
  61,007
  65,046
  69,250
Maintenance CAPEX, $m
  0
  -172
  -228
  -296
  -376
  -470
  -577
  -699
  -836
  -987
  -1,152
  -1,332
  -1,525
  -1,732
  -1,952
  -2,185
  -2,431
  -2,689
  -2,959
  -3,242
  -3,537
  -3,844
  -4,164
  -4,496
  -4,842
  -5,201
  -5,575
  -5,963
  -6,366
  -6,785
  -7,222
New CAPEX, $m
  -322
  -454
  -547
  -650
  -759
  -872
  -988
  -1,105
  -1,223
  -1,339
  -1,454
  -1,566
  -1,676
  -1,783
  -1,888
  -1,990
  -2,091
  -2,191
  -2,290
  -2,389
  -2,489
  -2,590
  -2,694
  -2,800
  -2,910
  -3,024
  -3,143
  -3,267
  -3,397
  -3,533
  -3,677
Cash from investing activities, $m
  -365
  -626
  -775
  -946
  -1,135
  -1,342
  -1,565
  -1,804
  -2,059
  -2,326
  -2,606
  -2,898
  -3,201
  -3,515
  -3,840
  -4,175
  -4,522
  -4,880
  -5,249
  -5,631
  -6,026
  -6,434
  -6,858
  -7,296
  -7,752
  -8,225
  -8,718
  -9,230
  -9,763
  -10,318
  -10,899
Free cash flow, $m
  19
  105
  546
  1,084
  1,729
  2,487
  3,362
  4,357
  5,474
  6,712
  8,071
  9,546
  11,139
  12,846
  14,663
  16,589
  18,620
  20,756
  22,994
  25,335
  27,777
  30,323
  32,973
  35,730
  38,597
  41,577
  44,675
  47,896
  51,244
  54,727
  58,351
Issuance/(repayment) of debt, $m
  68
  1,172
  1,421
  1,688
  1,971
  2,265
  2,566
  2,871
  3,176
  3,478
  3,776
  4,068
  4,353
  4,632
  4,904
  5,170
  5,432
  5,691
  5,949
  6,206
  6,466
  6,729
  6,998
  7,275
  7,560
  7,856
  8,165
  8,487
  8,825
  9,179
  9,552
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
  1,172
  1,421
  1,688
  1,971
  2,265
  2,566
  2,871
  3,176
  3,478
  3,776
  4,068
  4,353
  4,632
  4,904
  5,170
  5,432
  5,691
  5,949
  6,206
  6,466
  6,729
  6,998
  7,275
  7,560
  7,856
  8,165
  8,487
  8,825
  9,179
  9,552
Total cash flow (excl. dividends), $m
  -49
  1,277
  1,967
  2,773
  3,700
  4,752
  5,928
  7,228
  8,650
  10,190
  11,847
  13,614
  15,492
  17,478
  19,567
  21,759
  24,053
  26,447
  28,943
  31,541
  34,243
  37,052
  39,972
  43,005
  46,157
  49,433
  52,840
  56,383
  60,069
  63,907
  67,904
Retained Cash Flow (-), $m
  -429
  -160
  -192
  -228
  -266
  -306
  -347
  -388
  -429
  -470
  -510
  -549
  -588
  -626
  -662
  -698
  -734
  -769
  -803
  -838
  -873
  -909
  -945
  -983
  -1,021
  -1,061
  -1,103
  -1,146
  -1,192
  -1,240
  -1,290
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
 
  1,785
  1,776
  2,545
  3,434
  4,446
  5,581
  6,840
  8,221
  9,721
  11,337
  13,064
  14,904
  16,852
  18,905
  21,061
  23,319
  25,678
  28,139
  30,702
  33,370
  36,143
  39,026
  42,022
  45,136
  48,372
  51,737
  55,236
  58,877
  62,667
  66,613
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
 
  1,698
  1,600
  2,159
  2,730
  3,291
  3,823
  4,306
  4,722
  5,055
  5,294
  5,431
  5,463
  5,394
  5,227
  4,975
  4,650
  4,268
  3,847
  3,403
  2,954
  2,515
  2,099
  1,716
  1,373
  1,075
  822
  614
  447
  317
  219
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 7.5
Price to Sales 0.8
Price to Book 4.2
Price to Tangible Book
Price to Cash Flow 12.6
Price to Free Cash Flow 77.8
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 32.3% 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 148.079 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 $5.0 billion.

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COMPANY NEWS

▶ Bull of the Day: Dana Incorporated (DAN)   [Dec-28-17 06:40AM  Zacks]
▶ ETFs with exposure to Dana, Inc. : December 21, 2017   [Dec-21-17 11:23AM  Capital Cube]
▶ Now Is the Time to Buy These Growth Stocks   [Dec-20-17 04:34PM  Motley Fool]
▶ ETFs with exposure to Dana, Inc. : December 8, 2017   [Dec-08-17 12:38PM  Capital Cube]
▶ Dana Named Supplier of the Year by Blue Bird   [Nov-29-17 08:32AM  PR Newswire]
▶ 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]
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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