Intrinsic value of Diebold Nixdorf - DBD

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$26.55

  Intrinsic Value

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  Value-price divergence*

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

We calculate the intrinsic value of DBD 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 1.9

 

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, %
  37.08
  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
  3,316
  5,306
  8,197
  12,259
  17,787
  25,095
  34,500
  46,309
  60,806
  78,243
  98,827
  122,720
  150,038
  180,846
  215,171
  253,002
  294,303
  339,012
  387,058
  438,364
  492,851
  550,449
  611,098
  674,751
  741,380
  810,975
  883,544
  959,119
  1,037,750
  1,119,508
  1,204,485
Variable operating expenses, $m
 
  5,118
  7,854
  11,695
  16,925
  23,837
  32,733
  43,903
  57,616
  74,110
  93,580
  116,082
  141,921
  171,063
  203,531
  239,316
  278,382
  320,673
  366,120
  414,650
  466,189
  520,672
  578,039
  638,249
  701,274
  767,104
  835,748
  907,234
  981,611
  1,058,947
  1,139,327
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
  3,476
  5,118
  7,854
  11,695
  16,925
  23,837
  32,733
  43,903
  57,616
  74,110
  93,580
  116,082
  141,921
  171,063
  203,531
  239,316
  278,382
  320,673
  366,120
  414,650
  466,189
  520,672
  578,039
  638,249
  701,274
  767,104
  835,748
  907,234
  981,611
  1,058,947
  1,139,327
Operating income, $m
  -160
  187
  344
  563
  862
  1,258
  1,767
  2,405
  3,190
  4,133
  5,246
  6,639
  8,117
  9,783
  11,640
  13,687
  15,921
  18,339
  20,938
  23,714
  26,662
  29,777
  33,058
  36,502
  40,106
  43,871
  47,797
  51,885
  56,139
  60,561
  65,158
EBITDA, $m
  -25
  403
  623
  931
  1,351
  1,906
  2,620
  3,517
  4,618
  5,942
  7,505
  9,320
  11,395
  13,734
  16,341
  19,214
  22,351
  25,746
  29,395
  33,291
  37,429
  41,803
  46,409
  51,244
  56,304
  61,589
  67,100
  72,840
  78,811
  85,020
  91,474
Interest expense (income), $m
  85
  118
  257
  508
  859
  1,338
  1,970
  2,784
  3,806
  5,060
  6,569
  8,351
  10,418
  12,782
  15,448
  18,419
  21,693
  25,267
  29,136
  33,294
  37,734
  42,449
  47,433
  52,682
  58,190
  63,956
  69,979
  76,259
  82,799
  89,604
  96,679
Earnings before tax, $m
  -238
  69
  86
  56
  3
  -80
  -203
  -379
  -616
  -928
  -1,323
  -1,712
  -2,302
  -2,999
  -3,808
  -4,732
  -5,772
  -6,927
  -8,197
  -9,580
  -11,072
  -12,672
  -14,375
  -16,180
  -18,084
  -20,085
  -22,182
  -24,374
  -26,660
  -29,042
  -31,520
Tax expense, $m
  -67
  19
  23
  15
  1
  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
  -33
  50
  63
  41
  2
  -80
  -203
  -379
  -616
  -928
  -1,323
  -1,712
  -2,302
  -2,999
  -3,808
  -4,732
  -5,772
  -6,927
  -8,197
  -9,580
  -11,072
  -12,672
  -14,375
  -16,180
  -18,084
  -20,085
  -22,182
  -24,374
  -26,660
  -29,042
  -31,520

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  717
  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
  5,270
  7,288
  11,260
  16,839
  24,433
  34,471
  47,390
  63,611
  83,525
  107,476
  135,751
  168,572
  206,096
  248,414
  295,564
  347,531
  404,262
  465,676
  531,673
  602,148
  676,993
  756,111
  839,420
  926,856
  1,018,379
  1,113,976
  1,213,660
  1,317,471
  1,425,481
  1,537,786
  1,654,512
Adjusted assets (=assets-cash), $m
  4,553
  7,288
  11,260
  16,839
  24,433
  34,471
  47,390
  63,611
  83,525
  107,476
  135,751
  168,572
  206,096
  248,414
  295,564
  347,531
  404,262
  465,676
  531,673
  602,148
  676,993
  756,111
  839,420
  926,856
  1,018,379
  1,113,976
  1,213,660
  1,317,471
  1,425,481
  1,537,786
  1,654,512
Revenue / Adjusted assets
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
  0.728
Average production assets, $m
  702
  1,066
  1,648
  2,464
  3,575
  5,044
  6,934
  9,308
  12,222
  15,727
  19,864
  24,667
  30,158
  36,350
  43,249
  50,854
  59,155
  68,141
  77,799
  88,111
  99,063
  110,640
  122,831
  135,625
  149,017
  163,006
  177,592
  192,783
  208,588
  225,021
  242,101
Working capital, $m
  795
  297
  459
  686
  996
  1,405
  1,932
  2,593
  3,405
  4,382
  5,534
  6,872
  8,402
  10,127
  12,050
  14,168
  16,481
  18,985
  21,675
  24,548
  27,600
  30,825
  34,221
  37,786
  41,517
  45,415
  49,478
  53,711
  58,114
  62,692
  67,451
Total debt, $m
  1,798
  3,678
  7,253
  12,274
  19,108
  28,143
  39,770
  54,369
  72,291
  93,848
  119,295
  148,834
  182,605
  220,692
  263,127
  309,897
  360,955
  416,227
  475,625
  539,052
  606,413
  677,619
  752,597
  831,289
  913,660
  999,698
  1,089,413
  1,182,843
  1,280,051
  1,381,126
  1,486,180
Total liabilities, $m
  4,679
  6,559
  10,134
  15,155
  21,989
  31,024
  42,651
  57,250
  75,172
  96,729
  122,176
  151,715
  185,486
  223,573
  266,008
  312,778
  363,836
  419,108
  478,506
  541,933
  609,294
  680,500
  755,478
  834,170
  916,541
  1,002,579
  1,092,294
  1,185,724
  1,282,932
  1,384,007
  1,489,061
Total equity, $m
  591
  729
  1,126
  1,684
  2,443
  3,447
  4,739
  6,361
  8,352
  10,748
  13,575
  16,857
  20,610
  24,841
  29,556
  34,753
  40,426
  46,568
  53,167
  60,215
  67,699
  75,611
  83,942
  92,686
  101,838
  111,398
  121,366
  131,747
  142,548
  153,779
  165,451
Total liabilities and equity, $m
  5,270
  7,288
  11,260
  16,839
  24,432
  34,471
  47,390
  63,611
  83,524
  107,477
  135,751
  168,572
  206,096
  248,414
  295,564
  347,531
  404,262
  465,676
  531,673
  602,148
  676,993
  756,111
  839,420
  926,856
  1,018,379
  1,113,977
  1,213,660
  1,317,471
  1,425,480
  1,537,786
  1,654,512
Debt-to-equity ratio
  3.042
  5.050
  6.440
  7.290
  7.820
  8.160
  8.390
  8.550
  8.660
  8.730
  8.790
  8.830
  8.860
  8.880
  8.900
  8.920
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
  8.980
  8.980
Adjusted equity ratio
  -0.028
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -33
  50
  63
  41
  2
  -80
  -203
  -379
  -616
  -928
  -1,323
  -1,712
  -2,302
  -2,999
  -3,808
  -4,732
  -5,772
  -6,927
  -8,197
  -9,580
  -11,072
  -12,672
  -14,375
  -16,180
  -18,084
  -20,085
  -22,182
  -24,374
  -26,660
  -29,042
  -31,520
Depreciation, amort., depletion, $m
  135
  216
  279
  368
  488
  648
  854
  1,112
  1,428
  1,809
  2,259
  2,681
  3,278
  3,951
  4,701
  5,528
  6,430
  7,407
  8,456
  9,577
  10,768
  12,026
  13,351
  14,742
  16,198
  17,718
  19,304
  20,955
  22,673
  24,459
  26,315
Funds from operations, $m
  177
  266
  342
  408
  491
  568
  650
  733
  812
  882
  936
  969
  976
  952
  893
  795
  658
  479
  259
  -3
  -304
  -645
  -1,024
  -1,438
  -1,887
  -2,367
  -2,879
  -3,419
  -3,988
  -4,583
  -5,205
Change in working capital, $m
  150
  111
  162
  227
  310
  409
  527
  661
  812
  976
  1,153
  1,338
  1,530
  1,725
  1,922
  2,119
  2,313
  2,504
  2,691
  2,873
  3,051
  3,225
  3,396
  3,565
  3,731
  3,897
  4,064
  4,232
  4,403
  4,578
  4,759
Cash from operations, $m
  27
  647
  180
  181
  181
  159
  123
  72
  0
  -95
  -217
  -369
  -554
  -773
  -1,030
  -1,323
  -1,655
  -2,025
  -2,432
  -2,876
  -3,356
  -3,871
  -4,420
  -5,003
  -5,618
  -6,265
  -6,943
  -7,651
  -8,391
  -9,162
  -9,964
Maintenance CAPEX, $m
  0
  -73
  -116
  -179
  -268
  -389
  -548
  -754
  -1,012
  -1,328
  -1,709
  -2,159
  -2,681
  -3,278
  -3,951
  -4,701
  -5,528
  -6,430
  -7,407
  -8,456
  -9,577
  -10,768
  -12,026
  -13,351
  -14,742
  -16,198
  -17,718
  -19,304
  -20,955
  -22,673
  -24,459
New CAPEX, $m
  -40
  -399
  -581
  -816
  -1,111
  -1,469
  -1,890
  -2,374
  -2,914
  -3,505
  -4,137
  -4,803
  -5,491
  -6,192
  -6,899
  -7,604
  -8,301
  -8,987
  -9,657
  -10,312
  -10,952
  -11,577
  -12,190
  -12,794
  -13,392
  -13,988
  -14,586
  -15,191
  -15,805
  -16,433
  -17,080
Cash from investing activities, $m
  -561
  -472
  -697
  -995
  -1,379
  -1,858
  -2,438
  -3,128
  -3,926
  -4,833
  -5,846
  -6,962
  -8,172
  -9,470
  -10,850
  -12,305
  -13,829
  -15,417
  -17,064
  -18,768
  -20,529
  -22,345
  -24,216
  -26,145
  -28,134
  -30,186
  -32,304
  -34,495
  -36,760
  -39,106
  -41,539
Free cash flow, $m
  -534
  176
  -517
  -815
  -1,198
  -1,699
  -2,315
  -3,056
  -3,926
  -4,928
  -6,064
  -7,331
  -8,726
  -10,244
  -11,880
  -13,629
  -15,484
  -17,441
  -19,496
  -21,644
  -23,885
  -26,216
  -28,637
  -31,148
  -33,752
  -36,451
  -39,247
  -42,145
  -45,151
  -48,268
  -51,503
Issuance/(repayment) of debt, $m
  997
  1,987
  3,575
  5,021
  6,834
  9,034
  11,627
  14,599
  17,923
  21,556
  25,447
  29,539
  33,771
  38,087
  42,435
  46,770
  51,058
  55,273
  59,398
  63,427
  67,361
  71,206
  74,978
  78,692
  82,371
  86,037
  89,715
  93,430
  97,208
  101,075
  105,054
Issuance/(repurchase) of shares, $m
  -2
  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  
  947
  1,987
  3,575
  5,021
  6,834
  9,034
  11,627
  14,599
  17,923
  21,556
  25,447
  29,539
  33,771
  38,087
  42,435
  46,770
  51,058
  55,273
  59,398
  63,427
  67,361
  71,206
  74,978
  78,692
  82,371
  86,037
  89,715
  93,430
  97,208
  101,075
  105,054
Total cash flow (excl. dividends), $m
  404
  2,163
  3,057
  4,207
  5,636
  7,336
  9,312
  11,543
  13,997
  16,628
  19,384
  22,208
  25,046
  27,843
  30,555
  33,142
  35,574
  37,832
  39,902
  41,783
  43,476
  44,991
  46,341
  47,544
  48,619
  49,587
  50,468
  51,285
  52,058
  52,807
  53,551
Retained Cash Flow (-), $m
  -179
  -748
  -397
  -558
  -759
  -1,004
  -1,292
  -1,622
  -1,991
  -2,395
  -2,827
  -3,282
  -3,752
  -4,232
  -4,715
  -5,197
  -5,673
  -6,141
  -6,600
  -7,047
  -7,485
  -7,912
  -8,331
  -8,744
  -9,152
  -9,560
  -9,968
  -10,381
  -10,801
  -11,231
  -11,673
Prev. year cash balance distribution, $m
 
  610
  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
 
  2,025
  2,660
  3,649
  4,877
  6,332
  8,020
  9,921
  12,006
  14,233
  16,556
  18,926
  21,293
  23,611
  25,840
  27,945
  29,901
  31,690
  33,303
  34,735
  35,991
  37,079
  38,010
  38,800
  39,467
  40,027
  40,500
  40,904
  41,257
  41,576
  41,878
Discount rate, %
 
  9.40
  9.87
  10.36
  10.88
  11.43
  12.00
  12.60
  13.23
  13.89
  14.58
  15.31
  16.08
  16.88
  17.73
  18.61
  19.54
  20.52
  21.54
  22.62
  23.75
  24.94
  26.19
  27.50
  28.87
  30.32
  31.83
  33.42
  35.09
  36.85
  38.69
PV of cash for distribution, $m
 
  1,851
  2,204
  2,714
  3,226
  3,687
  4,064
  4,324
  4,444
  4,416
  4,244
  3,949
  3,559
  3,108
  2,631
  2,160
  1,719
  1,327
  994
  721
  507
  345
  228
  145
  90
  53
  31
  17
  9
  5
  2
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

Diebold Nixdorf, Incorporated provides connected commerce services, software, and technology for financial, commercial, and industrial customers. The company operates in four segments: North America; Asia Pacific; Europe, Middle East and Africa; and Latin America. It offers financial self-service solutions and technologies, including automated teller machine (ATM) outsourcing, ATM security, deposit automation, recycling and payment terminals, and software. The company also provides financial self-service support and maintenance services comprising installation and ongoing maintenance of products, availability management, branch automation, and distribution channel consulting; outsourced and managed services, such as remote monitoring, troubleshooting, transaction processing, currency management, maintenance, and online communication services; and strategic analysis and planning for new systems, systems integration, architectural engineering, consulting, and project management services, as well as multi-vendor services. In addition, it offers electronic security services and products; security monitoring solutions comprising remote monitoring and diagnostics, fire detection, intrusion protection, managed access control, energy management, remote video management and storage, logical security, and Web-based solutions; and physical security and facility products. Further, the company provides development, training, support, and maintenance of elections and lottery equipment, networking, tabulation, and diagnostic software; and IT solutions and services to retail banks and the retail industry. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.

FINANCIAL RATIOS  of  Diebold Nixdorf (DBD)

Valuation Ratios
P/E Ratio -60.5
Price to Sales 0.6
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 73.9
Price to Free Cash Flow -153.5
Growth Rates
Sales Growth Rate 37.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -23.1%
Cap. Spend. - 3 Yr. Gr. Rate 3.3%
Financial Strength
Quick Ratio 7
Current Ratio 0.1
LT Debt to Equity 286.1%
Total Debt to Equity 304.2%
Interest Coverage -2
Management Effectiveness
Return On Assets 0.7%
Ret/ On Assets - 3 Yr. Avg. 3.9%
Return On Total Capital -1.9%
Ret/ On T. Cap. - 3 Yr. Avg. 5.2%
Return On Equity -6.6%
Return On Equity - 3 Yr. Avg. 9.8%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 22.5%
Gross Margin - 3 Yr. Avg. 25.4%
EBITDA Margin -0.5%
EBITDA Margin - 3 Yr. Avg. 4.9%
Operating Margin -4.8%
Oper. Margin - 3 Yr. Avg. 1.2%
Pre-Tax Margin -7.2%
Pre-Tax Margin - 3 Yr. Avg. 0.1%
Net Profit Margin -1%
Net Profit Margin - 3 Yr. Avg. 2.1%
Effective Tax Rate 28.2%
Eff/ Tax Rate - 3 Yr. Avg. 9.6%
Payout Ratio -197%

DBD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DBD stock intrinsic value calculation we used $3316 million for the last fiscal year's total revenue generated by Diebold Nixdorf. The default revenue input number comes from 2016 income statement of Diebold Nixdorf. 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 DBD 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 9.4%, whose default value for DBD is calculated based on our internal credit rating of Diebold Nixdorf, 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 Diebold Nixdorf.
    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 DBD stock the variable cost ratio is equal to 97.6%.

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 DBD 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 7% for Diebold Nixdorf.

Corporate tax rate of 27% is the nominal tax rate for Diebold Nixdorf. 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 DBD 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 DBD are equal to 20.1%.

Life of production assets of 9.2 years is the average useful life of capital assets used in Diebold Nixdorf 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 DBD is equal to 5.6%. 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 - $591 million for Diebold Nixdorf - 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 73.226 million for Diebold Nixdorf 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 Diebold Nixdorf at the current share price and the inputted number of shares is $1.9 billion.


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COMPANY NEWS

▶ [$$] Cash's Survival Is Diebold's Opportunity   [Jun-10-17 12:58AM  Barrons.com]
▶ Diebold reports 1Q loss   [May-04-17 08:31AM  Associated Press]
▶ Diebold reports 4Q loss   [07:26AM  AP]
▶ Diebold Inc (DBD): Hedge Fund Ownership Surges 90% in 1 Year   [Nov-28-16 03:03PM  at Insider Monkey]
Stock chart of DBD Financial statements of DBD Annual reports of DBD
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