Intrinsic value of Physicians Realty Trust - DOC

Previous Close

$18.15

  Intrinsic Value

$3.22

stock screener

  Rating & Target

str. sell

-82%

  Value-price divergence*

+218%

Previous close

$18.15

 
Intrinsic value

$3.22

 
Up/down potential

-82%

 
Rating

str. sell

 
Value-price divergence*

+218%

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

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

We calculate the intrinsic value of DOC 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 2.4

 

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, %
  86.82
  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
  241
  386
  596
  891
  1,293
  1,824
  2,507
  3,366
  4,419
  5,687
  7,183
  8,919
  10,904
  13,143
  15,638
  18,388
  21,389
  24,639
  28,131
  31,859
  35,819
  40,005
  44,413
  49,040
  53,882
  58,940
  64,214
  69,707
  75,422
  81,364
  87,539
Variable operating expenses, $m
 
  320
  494
  739
  1,073
  1,514
  2,081
  2,793
  3,668
  4,720
  5,961
  7,403
  9,051
  10,909
  12,980
  15,262
  17,753
  20,450
  23,348
  26,443
  29,730
  33,205
  36,863
  40,703
  44,722
  48,920
  53,298
  57,857
  62,600
  67,532
  72,658
Fixed operating expenses, $m
 
  10
  11
  11
  11
  11
  12
  12
  12
  12
  13
  13
  13
  14
  14
  14
  15
  15
  16
  16
  16
  17
  17
  18
  18
  19
  19
  19
  20
  20
  21
Total operating expenses, $m
  210
  330
  505
  750
  1,084
  1,525
  2,093
  2,805
  3,680
  4,732
  5,974
  7,416
  9,064
  10,923
  12,994
  15,276
  17,768
  20,465
  23,364
  26,459
  29,746
  33,222
  36,880
  40,721
  44,740
  48,939
  53,317
  57,876
  62,620
  67,552
  72,679
Operating income, $m
  31
  55
  91
  141
  209
  299
  415
  560
  739
  954
  1,208
  1,503
  1,840
  2,221
  2,644
  3,111
  3,621
  4,173
  4,767
  5,400
  6,073
  6,784
  7,533
  8,319
  9,142
  10,001
  10,897
  11,831
  12,802
  13,811
  14,861
EBITDA, $m
  122
  201
  316
  478
  698
  988
  1,363
  1,833
  2,410
  3,105
  3,924
  4,876
  5,964
  7,191
  8,558
  10,065
  11,710
  13,491
  15,405
  17,448
  19,618
  21,913
  24,328
  26,864
  29,518
  32,290
  35,181
  38,191
  41,323
  44,580
  47,965
Interest expense (income), $m
  17
  35
  59
  94
  143
  210
  298
  412
  555
  731
  942
  1,192
  1,481
  1,812
  2,185
  2,601
  3,059
  3,559
  4,101
  4,683
  5,304
  5,964
  6,662
  7,397
  8,168
  8,975
  9,818
  10,697
  11,612
  12,565
  13,555
Earnings before tax, $m
  32
  21
  32
  47
  66
  89
  116
  148
  184
  223
  266
  312
  359
  409
  459
  511
  562
  614
  666
  717
  769
  820
  871
  922
  974
  1,026
  1,080
  1,134
  1,189
  1,247
  1,306
Tax expense, $m
  0
  6
  9
  13
  18
  24
  31
  40
  50
  60
  72
  84
  97
  110
  124
  138
  152
  166
  180
  194
  208
  221
  235
  249
  263
  277
  292
  306
  321
  337
  353
Net income, $m
  30
  15
  23
  34
  48
  65
  85
  108
  134
  163
  194
  227
  262
  298
  335
  373
  410
  448
  486
  524
  561
  598
  636
  673
  711
  749
  788
  828
  868
  910
  953

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  15
  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
  2,888
  4,590
  7,092
  10,607
  15,390
  21,712
  29,850
  40,067
  52,610
  67,697
  85,506
  106,179
  129,814
  156,470
  186,169
  218,901
  254,635
  293,318
  334,888
  379,278
  426,421
  476,256
  528,730
  583,804
  641,452
  701,666
  764,454
  829,843
  897,875
  968,613
  1,042,137
Adjusted assets (=assets-cash), $m
  2,873
  4,590
  7,092
  10,607
  15,390
  21,712
  29,850
  40,067
  52,610
  67,697
  85,506
  106,179
  129,814
  156,470
  186,169
  218,901
  254,635
  293,318
  334,888
  379,278
  426,421
  476,256
  528,730
  583,804
  641,452
  701,666
  764,454
  829,843
  897,875
  968,613
  1,042,137
Revenue / Adjusted assets
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
  0.084
Average production assets, $m
  2,133
  3,412
  5,272
  7,884
  11,439
  16,139
  22,188
  29,782
  39,106
  50,320
  63,558
  78,925
  96,493
  116,307
  138,382
  162,713
  189,274
  218,028
  248,928
  281,923
  316,966
  354,009
  393,013
  433,951
  476,802
  521,560
  568,231
  616,835
  667,405
  719,986
  774,637
Working capital, $m
  0
  -24
  -37
  -55
  -80
  -113
  -155
  -209
  -274
  -353
  -445
  -553
  -676
  -815
  -970
  -1,140
  -1,326
  -1,528
  -1,744
  -1,975
  -2,221
  -2,480
  -2,754
  -3,040
  -3,341
  -3,654
  -3,981
  -4,322
  -4,676
  -5,045
  -5,427
Total debt, $m
  991
  1,677
  2,678
  4,084
  5,997
  8,526
  11,781
  15,868
  20,885
  26,920
  34,044
  42,313
  51,767
  62,429
  74,308
  87,401
  101,695
  117,168
  133,796
  151,552
  170,409
  190,343
  211,333
  233,362
  256,422
  280,507
  305,623
  331,778
  358,991
  387,286
  416,696
Total liabilities, $m
  1,150
  1,836
  2,837
  4,243
  6,156
  8,685
  11,940
  16,027
  21,044
  27,079
  34,203
  42,472
  51,926
  62,588
  74,467
  87,560
  101,854
  117,327
  133,955
  151,711
  170,568
  190,502
  211,492
  233,521
  256,581
  280,666
  305,782
  331,937
  359,150
  387,445
  416,855
Total equity, $m
  1,738
  2,754
  4,255
  6,364
  9,234
  13,027
  17,910
  24,040
  31,566
  40,618
  51,304
  63,708
  77,889
  93,882
  111,701
  131,341
  152,781
  175,991
  200,933
  227,567
  255,853
  285,753
  317,238
  350,282
  384,871
  421,000
  458,673
  497,906
  538,725
  581,168
  625,282
Total liabilities and equity, $m
  2,888
  4,590
  7,092
  10,607
  15,390
  21,712
  29,850
  40,067
  52,610
  67,697
  85,507
  106,180
  129,815
  156,470
  186,168
  218,901
  254,635
  293,318
  334,888
  379,278
  426,421
  476,255
  528,730
  583,803
  641,452
  701,666
  764,455
  829,843
  897,875
  968,613
  1,042,137
Debt-to-equity ratio
  0.570
  0.610
  0.630
  0.640
  0.650
  0.650
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.660
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
  0.670
Adjusted equity ratio
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  30
  15
  23
  34
  48
  65
  85
  108
  134
  163
  194
  227
  262
  298
  335
  373
  410
  448
  486
  524
  561
  598
  636
  673
  711
  749
  788
  828
  868
  910
  953
Depreciation, amort., depletion, $m
  91
  146
  225
  337
  489
  690
  948
  1,273
  1,671
  2,150
  2,716
  3,373
  4,124
  4,970
  5,914
  6,954
  8,089
  9,317
  10,638
  12,048
  13,546
  15,129
  16,795
  18,545
  20,376
  22,289
  24,283
  26,360
  28,522
  30,769
  33,104
Funds from operations, $m
  136
  161
  249
  371
  537
  755
  1,033
  1,381
  1,805
  2,313
  2,910
  3,600
  4,386
  5,269
  6,249
  7,326
  8,499
  9,766
  11,124
  12,572
  14,107
  15,727
  17,431
  19,218
  21,087
  23,038
  25,072
  27,188
  29,390
  31,679
  34,057
Change in working capital, $m
  11
  -9
  -13
  -18
  -25
  -33
  -42
  -53
  -65
  -79
  -93
  -108
  -123
  -139
  -155
  -170
  -186
  -201
  -216
  -231
  -246
  -260
  -273
  -287
  -300
  -314
  -327
  -341
  -354
  -368
  -383
Cash from operations, $m
  125
  170
  262
  390
  562
  787
  1,075
  1,434
  1,871
  2,392
  3,003
  3,708
  4,509
  5,408
  6,404
  7,497
  8,685
  9,967
  11,340
  12,803
  14,352
  15,987
  17,705
  19,505
  21,388
  23,352
  25,399
  27,529
  29,744
  32,047
  34,440
Maintenance CAPEX, $m
  0
  -91
  -146
  -225
  -337
  -489
  -690
  -948
  -1,273
  -1,671
  -2,150
  -2,716
  -3,373
  -4,124
  -4,970
  -5,914
  -6,954
  -8,089
  -9,317
  -10,638
  -12,048
  -13,546
  -15,129
  -16,795
  -18,545
  -20,376
  -22,289
  -24,283
  -26,360
  -28,522
  -30,769
New CAPEX, $m
  -1,256
  -1,280
  -1,860
  -2,612
  -3,555
  -4,700
  -6,048
  -7,595
  -9,324
  -11,214
  -13,238
  -15,367
  -17,568
  -19,814
  -22,075
  -24,331
  -26,561
  -28,754
  -30,900
  -32,996
  -35,042
  -37,043
  -39,005
  -40,937
  -42,851
  -44,758
  -46,671
  -48,604
  -50,570
  -52,581
  -54,651
Cash from investing activities, $m
  -1,261
  -1,371
  -2,006
  -2,837
  -3,892
  -5,189
  -6,738
  -8,543
  -10,597
  -12,885
  -15,388
  -18,083
  -20,941
  -23,938
  -27,045
  -30,245
  -33,515
  -36,843
  -40,217
  -43,634
  -47,090
  -50,589
  -54,134
  -57,732
  -61,396
  -65,134
  -68,960
  -72,887
  -76,930
  -81,103
  -85,420
Free cash flow, $m
  -1,136
  -1,201
  -1,744
  -2,448
  -3,330
  -4,401
  -5,663
  -7,109
  -8,726
  -10,493
  -12,386
  -14,375
  -16,432
  -18,530
  -20,642
  -22,748
  -24,830
  -26,875
  -28,877
  -30,831
  -32,738
  -34,602
  -36,429
  -38,228
  -40,008
  -41,782
  -43,562
  -45,359
  -47,186
  -49,055
  -50,979
Issuance/(repayment) of debt, $m
  510
  686
  1,001
  1,406
  1,913
  2,529
  3,255
  4,087
  5,017
  6,035
  7,124
  8,269
  9,454
  10,662
  11,879
  13,093
  14,293
  15,473
  16,628
  17,756
  18,857
  19,934
  20,990
  22,030
  23,059
  24,086
  25,115
  26,155
  27,213
  28,295
  29,409
Issuance/(repurchase) of shares, $m
  753
  1,016
  1,478
  2,074
  2,822
  3,729
  4,797
  6,022
  7,392
  8,889
  10,492
  12,176
  13,919
  15,695
  17,484
  19,267
  21,030
  22,762
  24,456
  26,110
  27,725
  29,302
  30,849
  32,371
  33,878
  35,379
  36,885
  38,405
  39,951
  41,533
  43,161
Cash from financing (excl. dividends), $m  
  1,255
  1,702
  2,479
  3,480
  4,735
  6,258
  8,052
  10,109
  12,409
  14,924
  17,616
  20,445
  23,373
  26,357
  29,363
  32,360
  35,323
  38,235
  41,084
  43,866
  46,582
  49,236
  51,839
  54,401
  56,937
  59,465
  62,000
  64,560
  67,164
  69,828
  72,570
Total cash flow (excl. dividends), $m
  118
  501
  735
  1,032
  1,405
  1,857
  2,390
  3,000
  3,683
  4,430
  5,230
  6,071
  6,941
  7,828
  8,721
  9,612
  10,493
  11,360
  12,207
  13,035
  13,844
  14,634
  15,409
  16,173
  16,929
  17,682
  18,438
  19,202
  19,978
  20,773
  21,591
Retained Cash Flow (-), $m
  -717
  -1,031
  -1,501
  -2,109
  -2,870
  -3,794
  -4,882
  -6,130
  -7,526
  -9,052
  -10,686
  -12,404
  -14,181
  -15,993
  -17,819
  -19,640
  -21,440
  -23,210
  -24,942
  -26,634
  -28,286
  -29,901
  -31,484
  -33,044
  -34,589
  -36,128
  -37,673
  -39,233
  -40,819
  -42,443
  -44,114
Prev. year cash balance distribution, $m
 
  15
  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
 
  -515
  -766
  -1,077
  -1,465
  -1,937
  -2,493
  -3,130
  -3,843
  -4,622
  -5,456
  -6,333
  -7,240
  -8,166
  -9,098
  -10,027
  -10,947
  -11,850
  -12,735
  -13,599
  -14,442
  -15,266
  -16,075
  -16,871
  -17,660
  -18,446
  -19,235
  -20,031
  -20,841
  -21,670
  -22,523
Discount rate, %
 
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
 
  -479
  -659
  -848
  -1,050
  -1,252
  -1,440
  -1,601
  -1,722
  -1,795
  -1,815
  -1,782
  -1,701
  -1,580
  -1,428
  -1,257
  -1,078
  -900
  -733
  -581
  -449
  -338
  -247
  -176
  -122
  -82
  -54
  -34
  -21
  -12
  -7
Current shareholders' claim on cash, %
  100
  70.5
  51.1
  37.9
  28.9
  22.4
  17.8
  14.4
  11.8
  9.8
  8.3
  7.1
  6.1
  5.4
  4.8
  4.2
  3.8
  3.4
  3.1
  2.9
  2.6
  2.4
  2.3
  2.1
  2.0
  1.9
  1.7
  1.6
  1.6
  1.5
  1.4

Physicians Realty Trust, a self-managed healthcare real estate company, focuses on the acquisition, development, ownership, and management of healthcare properties that are leased to physicians, hospitals, and healthcare delivery systems. The company’s portfolio would consists of 19 medical office buildings with approximately 528,048 net leasable square feet located in 10 states. It intends to elect and qualify to be taxed as a real estate investment trust for federal income tax purposes. The company was founded in 2013 and is based in Milwaukee, Wisconsin.

FINANCIAL RATIOS  of  Physicians Realty Trust (DOC)

Valuation Ratios
P/E Ratio 82.3
Price to Sales 10.2
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 19.7
Price to Free Cash Flow -2.2
Growth Rates
Sales Growth Rate 86.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 65.7%
Cap. Spend. - 3 Yr. Gr. Rate 58.4%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 57%
Total Debt to Equity 57%
Interest Coverage 3
Management Effectiveness
Return On Assets 2.1%
Ret/ On Assets - 3 Yr. Avg. 1.4%
Return On Total Capital 1.4%
Ret/ On T. Cap. - 3 Yr. Avg. 0.6%
Return On Equity 2.2%
Return On Equity - 3 Yr. Avg. 0.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 72.6%
Gross Margin - 3 Yr. Avg. 76.6%
EBITDA Margin 58.1%
EBITDA Margin - 3 Yr. Avg. 49.7%
Operating Margin 12.9%
Oper. Margin - 3 Yr. Avg. 4.2%
Pre-Tax Margin 13.3%
Pre-Tax Margin - 3 Yr. Avg. 5.3%
Net Profit Margin 12.4%
Net Profit Margin - 3 Yr. Avg. 4.7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 353.3%

DOC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DOC stock intrinsic value calculation we used $241 million for the last fiscal year's total revenue generated by Physicians Realty Trust. The default revenue input number comes from 2016 income statement of Physicians Realty Trust. 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 DOC 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 7.5%, whose default value for DOC is calculated based on our internal credit rating of Physicians Realty Trust, 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 Physicians Realty Trust.
    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 DOC stock the variable cost ratio is equal to 83%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $10 million in the base year in the intrinsic value calculation for DOC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Physicians Realty Trust.

Corporate tax rate of 27% is the nominal tax rate for Physicians Realty Trust. 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 DOC 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 DOC are equal to 884.9%.

Life of production assets of 23.4 years is the average useful life of capital assets used in Physicians Realty Trust 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 DOC 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 - $1738 million for Physicians Realty Trust - 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 134.917 million for Physicians Realty Trust 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 Physicians Realty Trust at the current share price and the inputted number of shares is $2.4 billion.

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COMPANY NEWS

▶ Physicians Realty Trust reports 2Q results   [Aug-04-17 03:11AM  Associated Press]
▶ New Strong Sell Stocks for July 13th   [Jul-13-17 11:39AM  Zacks]
▶ Physicians Realty Trust reports 1Q results   [May-03-17 08:14AM  Associated Press]
▶ 2 Little-Known Dividend Stocks That Could Make You Rich   [Mar-11-17 08:37AM  Motley Fool]
▶ 4 Bargain REITs With 5.0% Yields And Big Upside   [Feb-05-17 08:08AM  at Forbes]
▶ Why These REITs Can Thrive Under Trump   [Jan-24-17 06:00AM  at Investopedia]
▶ Should You Buy Molina Healthcare, Inc. (MOH)?   [Nov-26-16 06:23AM  at Insider Monkey]
▶ EdR Appoints John T. Thomas to Board of Directors   [Oct-03-16 04:30PM  PR Newswire]
Stock chart of DOC Financial statements of DOC
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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