Intrinsic value of Dick's Sporting Goods - DKS

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$50.55

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$50.55

 
Intrinsic value

$8.10

 
Up/down potential

-84%

 
Rating

str. sell

 
Value-price divergence* premium content

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

We calculate the intrinsic value of DKS 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 2017), $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 5.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.95
  10.80
  10.22
  9.70
  9.23
  8.81
  8.42
  8.08
  7.77
  7.50
  7.25
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.71
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
Revenue, $m
  7,922
  8,778
  9,675
  10,613
  11,592
  12,613
  13,676
  14,781
  15,930
  17,124
  18,365
  19,655
  20,995
  22,389
  23,839
  25,347
  26,917
  28,552
  30,256
  32,032
  33,885
  35,818
  37,836
  39,944
  42,146
  44,449
  46,856
  49,375
  52,010
  54,768
  57,656
Variable operating expenses, $m
 
  8,125
  8,953
  9,819
  10,723
  11,665
  12,646
  13,666
  14,726
  15,829
  16,974
  18,140
  19,377
  20,663
  22,001
  23,393
  24,842
  26,351
  27,923
  29,563
  31,272
  33,056
  34,919
  36,864
  38,897
  41,022
  43,244
  45,568
  48,000
  50,546
  53,211
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
  7,472
  8,125
  8,953
  9,819
  10,723
  11,665
  12,646
  13,666
  14,726
  15,829
  16,974
  18,140
  19,377
  20,663
  22,001
  23,393
  24,842
  26,351
  27,923
  29,563
  31,272
  33,056
  34,919
  36,864
  38,897
  41,022
  43,244
  45,568
  48,000
  50,546
  53,211
Operating income, $m
  450
  652
  721
  794
  869
  948
  1,030
  1,115
  1,204
  1,296
  1,391
  1,515
  1,619
  1,726
  1,838
  1,954
  2,075
  2,201
  2,333
  2,469
  2,612
  2,761
  2,917
  3,079
  3,249
  3,427
  3,612
  3,806
  4,010
  4,222
  4,445
EBITDA, $m
  684
  904
  997
  1,093
  1,194
  1,299
  1,409
  1,523
  1,641
  1,764
  1,892
  2,025
  2,163
  2,306
  2,456
  2,611
  2,773
  2,941
  3,117
  3,300
  3,491
  3,690
  3,898
  4,115
  4,342
  4,579
  4,827
  5,086
  5,358
  5,642
  5,939
Interest expense (income), $m
  5
  4
  214
  433
  662
  902
  1,151
  1,411
  1,681
  1,962
  2,253
  2,557
  2,872
  3,199
  3,540
  3,894
  4,262
  4,646
  5,046
  5,462
  5,896
  6,349
  6,821
  7,314
  7,829
  8,367
  8,930
  9,518
  10,133
  10,777
  11,451
Earnings before tax, $m
  458
  649
  507
  361
  207
  46
  -121
  -296
  -477
  -666
  -862
  -1,041
  -1,253
  -1,473
  -1,702
  -1,940
  -2,187
  -2,445
  -2,713
  -2,992
  -3,284
  -3,587
  -3,904
  -4,235
  -4,580
  -4,940
  -5,317
  -5,712
  -6,124
  -6,555
  -7,006
Tax expense, $m
  171
  175
  137
  97
  56
  12
  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
  287
  473
  370
  263
  151
  34
  -121
  -296
  -477
  -666
  -862
  -1,041
  -1,253
  -1,473
  -1,702
  -1,940
  -2,187
  -2,445
  -2,713
  -2,992
  -3,284
  -3,587
  -3,904
  -4,235
  -4,580
  -4,940
  -5,317
  -5,712
  -6,124
  -6,555
  -7,006

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  165
  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
  4,058
  4,313
  4,754
  5,215
  5,696
  6,198
  6,720
  7,263
  7,828
  8,415
  9,025
  9,658
  10,317
  11,002
  11,714
  12,455
  13,227
  14,031
  14,868
  15,741
  16,651
  17,601
  18,593
  19,628
  20,711
  21,842
  23,025
  24,263
  25,558
  26,913
  28,332
Adjusted assets (=assets-cash), $m
  3,893
  4,313
  4,754
  5,215
  5,696
  6,198
  6,720
  7,263
  7,828
  8,415
  9,025
  9,658
  10,317
  11,002
  11,714
  12,455
  13,227
  14,031
  14,868
  15,741
  16,651
  17,601
  18,593
  19,628
  20,711
  21,842
  23,025
  24,263
  25,558
  26,913
  28,332
Revenue / Adjusted assets
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
  2.035
Average production assets, $m
  1,560
  1,729
  1,906
  2,091
  2,284
  2,485
  2,694
  2,912
  3,138
  3,373
  3,618
  3,872
  4,136
  4,411
  4,696
  4,993
  5,303
  5,625
  5,960
  6,310
  6,675
  7,056
  7,454
  7,869
  8,303
  8,756
  9,231
  9,727
  10,246
  10,789
  11,358
Working capital, $m
  599
  483
  532
  584
  638
  694
  752
  813
  876
  942
  1,010
  1,081
  1,155
  1,231
  1,311
  1,394
  1,480
  1,570
  1,664
  1,762
  1,864
  1,970
  2,081
  2,197
  2,318
  2,445
  2,577
  2,716
  2,861
  3,012
  3,171
Total debt, $m
  5
  235
  477
  729
  992
  1,266
  1,552
  1,849
  2,158
  2,479
  2,813
  3,159
  3,519
  3,894
  4,284
  4,689
  5,111
  5,551
  6,009
  6,486
  6,984
  7,504
  8,046
  8,613
  9,205
  9,824
  10,471
  11,148
  11,856
  12,597
  13,374
Total liabilities, $m
  2,129
  2,359
  2,601
  2,853
  3,116
  3,390
  3,676
  3,973
  4,282
  4,603
  4,937
  5,283
  5,643
  6,018
  6,408
  6,813
  7,235
  7,675
  8,133
  8,610
  9,108
  9,628
  10,170
  10,737
  11,329
  11,948
  12,595
  13,272
  13,980
  14,721
  15,498
Total equity, $m
  1,929
  1,954
  2,154
  2,362
  2,580
  2,808
  3,044
  3,290
  3,546
  3,812
  4,088
  4,375
  4,674
  4,984
  5,307
  5,642
  5,992
  6,356
  6,735
  7,130
  7,543
  7,973
  8,422
  8,892
  9,382
  9,894
  10,430
  10,991
  11,578
  12,192
  12,835
Total liabilities and equity, $m
  4,058
  4,313
  4,755
  5,215
  5,696
  6,198
  6,720
  7,263
  7,828
  8,415
  9,025
  9,658
  10,317
  11,002
  11,715
  12,455
  13,227
  14,031
  14,868
  15,740
  16,651
  17,601
  18,592
  19,629
  20,711
  21,842
  23,025
  24,263
  25,558
  26,913
  28,333
Debt-to-equity ratio
  0.003
  0.120
  0.220
  0.310
  0.380
  0.450
  0.510
  0.560
  0.610
  0.650
  0.690
  0.720
  0.750
  0.780
  0.810
  0.830
  0.850
  0.870
  0.890
  0.910
  0.930
  0.940
  0.960
  0.970
  0.980
  0.990
  1.000
  1.010
  1.020
  1.030
  1.040
Adjusted equity ratio
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453
  0.453

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  287
  473
  370
  263
  151
  34
  -121
  -296
  -477
  -666
  -862
  -1,041
  -1,253
  -1,473
  -1,702
  -1,940
  -2,187
  -2,445
  -2,713
  -2,992
  -3,284
  -3,587
  -3,904
  -4,235
  -4,580
  -4,940
  -5,317
  -5,712
  -6,124
  -6,555
  -7,006
Depreciation, amort., depletion, $m
  234
  252
  275
  300
  325
  351
  379
  408
  437
  468
  501
  509
  544
  580
  618
  657
  698
  740
  784
  830
  878
  928
  981
  1,035
  1,092
  1,152
  1,215
  1,280
  1,348
  1,420
  1,495
Funds from operations, $m
  1,017
  725
  646
  563
  476
  385
  258
  112
  -40
  -198
  -361
  -532
  -709
  -893
  -1,084
  -1,283
  -1,490
  -1,705
  -1,929
  -2,162
  -2,405
  -2,659
  -2,923
  -3,199
  -3,487
  -3,788
  -4,103
  -4,432
  -4,776
  -5,135
  -5,512
Change in working capital, $m
  258
  47
  49
  52
  54
  56
  58
  61
  63
  66
  68
  71
  74
  77
  80
  83
  86
  90
  94
  98
  102
  106
  111
  116
  121
  127
  132
  139
  145
  152
  159
Cash from operations, $m
  759
  781
  596
  511
  422
  329
  199
  51
  -103
  -263
  -430
  -603
  -783
  -969
  -1,164
  -1,366
  -1,576
  -1,795
  -2,023
  -2,260
  -2,507
  -2,765
  -3,034
  -3,315
  -3,608
  -3,915
  -4,235
  -4,570
  -4,920
  -5,287
  -5,671
Maintenance CAPEX, $m
  0
  -205
  -228
  -251
  -275
  -300
  -327
  -354
  -383
  -413
  -444
  -476
  -509
  -544
  -580
  -618
  -657
  -698
  -740
  -784
  -830
  -878
  -928
  -981
  -1,035
  -1,092
  -1,152
  -1,215
  -1,280
  -1,348
  -1,420
New CAPEX, $m
  -432
  -169
  -177
  -185
  -193
  -201
  -209
  -218
  -226
  -235
  -244
  -254
  -264
  -275
  -286
  -297
  -309
  -322
  -336
  -350
  -365
  -381
  -398
  -415
  -434
  -454
  -474
  -496
  -519
  -543
  -569
Cash from investing activities, $m
  -550
  -374
  -405
  -436
  -468
  -501
  -536
  -572
  -609
  -648
  -688
  -730
  -773
  -819
  -866
  -915
  -966
  -1,020
  -1,076
  -1,134
  -1,195
  -1,259
  -1,326
  -1,396
  -1,469
  -1,546
  -1,626
  -1,711
  -1,799
  -1,891
  -1,989
Free cash flow, $m
  209
  407
  192
  76
  -46
  -173
  -337
  -521
  -712
  -911
  -1,118
  -1,333
  -1,556
  -1,788
  -2,030
  -2,281
  -2,542
  -2,815
  -3,098
  -3,394
  -3,702
  -4,024
  -4,360
  -4,711
  -5,078
  -5,461
  -5,862
  -6,281
  -6,719
  -7,179
  -7,659
Issuance/(repayment) of debt, $m
  17
  231
  241
  252
  263
  274
  286
  297
  309
  321
  334
  347
  360
  375
  390
  405
  422
  440
  458
  477
  498
  520
  542
  567
  592
  619
  647
  677
  708
  741
  776
Issuance/(repurchase) of shares, $m
  -115
  0
  0
  0
  1
  125
  288
  470
  659
  856
  1,061
  1,273
  1,494
  1,724
  1,963
  2,211
  2,470
  2,739
  3,020
  3,312
  3,617
  3,935
  4,267
  4,614
  4,976
  5,355
  5,750
  6,165
  6,598
  7,051
  7,526
Cash from financing (excl. dividends), $m  
  -95
  231
  241
  252
  264
  399
  574
  767
  968
  1,177
  1,395
  1,620
  1,854
  2,099
  2,353
  2,616
  2,892
  3,179
  3,478
  3,789
  4,115
  4,455
  4,809
  5,181
  5,568
  5,974
  6,397
  6,842
  7,306
  7,792
  8,302
Total cash flow (excl. dividends), $m
  114
  638
  433
  328
  217
  102
  -51
  -224
  -404
  -590
  -785
  -986
  -1,196
  -1,414
  -1,640
  -1,875
  -2,120
  -2,375
  -2,640
  -2,917
  -3,204
  -3,505
  -3,818
  -4,145
  -4,486
  -4,842
  -5,215
  -5,604
  -6,011
  -6,437
  -6,883
Retained Cash Flow (-), $m
  -140
  -189
  -200
  -209
  -218
  -227
  -237
  -246
  -256
  -266
  -276
  -287
  -298
  -310
  -323
  -336
  -349
  -364
  -379
  -395
  -412
  -430
  -449
  -469
  -490
  -513
  -536
  -561
  -587
  -614
  -643
Prev. year cash balance distribution, $m
 
  164
  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
 
  613
  234
  119
  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, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  588
  214
  103
  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
  100.0
  100.0
  100.0
  100.0
  98.4
  95.0
  90.3
  84.5
  78.1
  71.3
  64.4
  57.7
  51.3
  45.2
  39.6
  34.4
  29.8
  25.6
  21.9
  18.7
  15.9
  13.4
  11.3
  9.5
  7.9
  6.6
  5.5
  4.6
  3.8
  3.1

Dick's Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear products and accessories. The company also owns and operates Golf Galaxy, Field & Stream, Chelsea Collective, and True Runner specialty concept stores; and e-commerce Websites, such as DICKS.com, golfgalaxy.com, fieldandstreamshop.com, and caliastudio.com. As of January 28, 2017, it operated approximately 675 Dick's Sporting Goods stores, 73 Golf Galaxy stores, and 25 Field & Stream stores. The company was formerly known as Dick’s Clothing and Sporting Goods, Inc. and changed its name to Dick’s Sporting Goods, Inc. in April 1999. Dick's Sporting Goods, Inc. was founded in 1948 and is headquartered in Coraopolis, Pennsylvania.

FINANCIAL RATIOS  of  Dick's Sporting Goods (DKS)

Valuation Ratios
P/E Ratio 19.4
Price to Sales 0.7
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 7.3
Price to Free Cash Flow 17.1
Growth Rates
Sales Growth Rate 9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 16.1%
Cap. Spend. - 3 Yr. Gr. Rate 4.3%
Financial Strength
Quick Ratio 165
Current Ratio 0
LT Debt to Equity 0.2%
Total Debt to Equity 0.3%
Interest Coverage 93
Management Effectiveness
Return On Assets 7.6%
Ret/ On Assets - 3 Yr. Avg. 9.3%
Return On Total Capital 15.4%
Ret/ On T. Cap. - 3 Yr. Avg. 17.7%
Return On Equity 15.4%
Return On Equity - 3 Yr. Avg. 17.7%
Asset Turnover 2.1
Profitability Ratios
Gross Margin 29.9%
Gross Margin - 3 Yr. Avg. 30.2%
EBITDA Margin 8.8%
EBITDA Margin - 3 Yr. Avg. 9.9%
Operating Margin 5.7%
Oper. Margin - 3 Yr. Avg. 7.1%
Pre-Tax Margin 5.8%
Pre-Tax Margin - 3 Yr. Avg. 7.1%
Net Profit Margin 3.6%
Net Profit Margin - 3 Yr. Avg. 4.4%
Effective Tax Rate 37.3%
Eff/ Tax Rate - 3 Yr. Avg. 37.8%
Payout Ratio 23.7%

DKS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DKS stock intrinsic value calculation we used $7922 million for the last fiscal year's total revenue generated by Dick's Sporting Goods. The default revenue input number comes from 2017 income statement of Dick's Sporting Goods. 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 DKS stock valuation model: a) initial revenue growth rate of 10.8% 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 4.3%, whose default value for DKS is calculated based on our internal credit rating of Dick's Sporting Goods, 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 Dick's Sporting Goods.
    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 DKS stock the variable cost ratio is equal to 92.6%.

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 DKS 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 90.9% for Dick's Sporting Goods.

Corporate tax rate of 27% is the nominal tax rate for Dick's Sporting Goods. 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 DKS 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 DKS are equal to 19.7%.

Life of production assets of 7.6 years is the average useful life of capital assets used in Dick's Sporting Goods 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 DKS is equal to 5.5%. 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 - $1929 million for Dick's Sporting Goods - 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 111.796 million for Dick's Sporting Goods 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 Dick's Sporting Goods at the current share price and the inputted number of shares is $5.7 billion.


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Stock chart of DKS Financial statements of DKS
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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