Intrinsic value of Dover - DOV

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$78.14

  Intrinsic Value

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  Value-price divergence*

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$78.14

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

We calculate the intrinsic value of DOV 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 12.1

 

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, %
  -2.33
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  5.00
Revenue, $m
  6,794
  7,127
  7,477
  7,845
  8,231
  8,637
  9,064
  9,512
  9,984
  10,478
  10,998
  11,544
  12,118
  12,720
  13,353
  14,018
  14,716
  15,449
  16,219
  17,027
  17,876
  18,768
  19,704
  20,688
  21,720
  22,804
  23,943
  25,139
  26,394
  27,712
  29,097
Variable operating expenses, $m
 
  2,130
  2,212
  2,299
  2,389
  2,485
  2,585
  2,690
  2,801
  2,917
  3,039
  2,711
  2,846
  2,987
  3,136
  3,292
  3,456
  3,628
  3,809
  3,999
  4,198
  4,407
  4,627
  4,858
  5,101
  5,355
  5,623
  5,903
  6,198
  6,508
  6,833
Fixed operating expenses, $m
 
  4,127
  4,230
  4,336
  4,444
  4,555
  4,669
  4,786
  4,905
  5,028
  5,154
  5,282
  5,415
  5,550
  5,689
  5,831
  5,977
  6,126
  6,279
  6,436
  6,597
  6,762
  6,931
  7,104
  7,282
  7,464
  7,651
  7,842
  8,038
  8,239
  8,445
Total operating expenses, $m
  5,983
  6,257
  6,442
  6,635
  6,833
  7,040
  7,254
  7,476
  7,706
  7,945
  8,193
  7,993
  8,261
  8,537
  8,825
  9,123
  9,433
  9,754
  10,088
  10,435
  10,795
  11,169
  11,558
  11,962
  12,383
  12,819
  13,274
  13,745
  14,236
  14,747
  15,278
Operating income, $m
  811
  870
  1,035
  1,211
  1,398
  1,598
  1,810
  2,037
  2,277
  2,533
  2,806
  3,551
  3,858
  4,183
  4,529
  4,895
  5,283
  5,695
  6,131
  6,592
  7,081
  7,599
  8,146
  8,725
  9,337
  9,985
  10,670
  11,393
  12,158
  12,966
  13,819
EBITDA, $m
  1,172
  1,470
  1,641
  1,824
  2,019
  2,227
  2,448
  2,684
  2,934
  3,200
  3,482
  3,782
  4,101
  4,438
  4,797
  5,176
  5,578
  6,005
  6,456
  6,934
  7,440
  7,975
  8,541
  9,140
  9,773
  10,442
  11,150
  11,897
  12,687
  13,521
  14,402
Interest expense (income), $m
  131
  134
  146
  159
  172
  186
  200
  216
  232
  249
  267
  285
  305
  326
  347
  370
  394
  419
  446
  473
  502
  533
  565
  599
  634
  671
  710
  751
  794
  839
  887
Earnings before tax, $m
  689
  736
  889
  1,052
  1,226
  1,412
  1,610
  1,821
  2,046
  2,285
  2,539
  3,265
  3,553
  3,858
  4,181
  4,525
  4,889
  5,276
  5,685
  6,119
  6,579
  7,066
  7,581
  8,126
  8,703
  9,314
  9,959
  10,642
  11,363
  12,126
  12,932
Tax expense, $m
  180
  199
  240
  284
  331
  381
  435
  492
  552
  617
  685
  882
  959
  1,042
  1,129
  1,222
  1,320
  1,424
  1,535
  1,652
  1,776
  1,908
  2,047
  2,194
  2,350
  2,515
  2,689
  2,873
  3,068
  3,274
  3,492
Net income, $m
  509
  537
  649
  768
  895
  1,031
  1,175
  1,329
  1,493
  1,668
  1,853
  2,384
  2,593
  2,816
  3,052
  3,303
  3,569
  3,851
  4,150
  4,467
  4,803
  5,158
  5,534
  5,932
  6,353
  6,799
  7,270
  7,769
  8,295
  8,852
  9,440

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  350
  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
  10,116
  10,240
  10,743
  11,271
  11,826
  12,410
  13,023
  13,667
  14,344
  15,055
  15,802
  16,587
  17,411
  18,276
  19,186
  20,141
  21,143
  22,197
  23,303
  24,464
  25,684
  26,965
  28,311
  29,723
  31,207
  32,765
  34,401
  36,119
  37,922
  39,817
  41,806
Adjusted assets (=assets-cash), $m
  9,766
  10,240
  10,743
  11,271
  11,826
  12,410
  13,023
  13,667
  14,344
  15,055
  15,802
  16,587
  17,411
  18,276
  19,186
  20,141
  21,143
  22,197
  23,303
  24,464
  25,684
  26,965
  28,311
  29,723
  31,207
  32,765
  34,401
  36,119
  37,922
  39,817
  41,806
Revenue / Adjusted assets
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
Average production assets, $m
  2,508
  2,630
  2,759
  2,895
  3,037
  3,187
  3,345
  3,510
  3,684
  3,867
  4,058
  4,260
  4,472
  4,694
  4,927
  5,173
  5,430
  5,701
  5,985
  6,283
  6,596
  6,925
  7,271
  7,634
  8,015
  8,415
  8,835
  9,276
  9,739
  10,226
  10,737
Working capital, $m
  649
  748
  785
  824
  864
  907
  952
  999
  1,048
  1,100
  1,155
  1,212
  1,272
  1,336
  1,402
  1,472
  1,545
  1,622
  1,703
  1,788
  1,877
  1,971
  2,069
  2,172
  2,281
  2,394
  2,514
  2,640
  2,771
  2,910
  3,055
Total debt, $m
  3,621
  3,562
  3,869
  4,192
  4,531
  4,887
  5,262
  5,656
  6,069
  6,504
  6,960
  7,439
  7,943
  8,472
  9,027
  9,611
  10,224
  10,867
  11,543
  12,253
  12,998
  13,781
  14,603
  15,466
  16,372
  17,324
  18,324
  19,373
  20,476
  21,633
  22,848
Total liabilities, $m
  6,316
  6,257
  6,564
  6,887
  7,226
  7,582
  7,957
  8,351
  8,764
  9,199
  9,655
  10,134
  10,638
  11,167
  11,722
  12,306
  12,919
  13,562
  14,238
  14,948
  15,693
  16,476
  17,298
  18,161
  19,067
  20,019
  21,019
  22,068
  23,171
  24,328
  25,543
Total equity, $m
  3,800
  3,983
  4,179
  4,384
  4,600
  4,827
  5,066
  5,317
  5,580
  5,856
  6,147
  6,452
  6,773
  7,110
  7,463
  7,835
  8,225
  8,634
  9,065
  9,517
  9,991
  10,490
  11,013
  11,562
  12,140
  12,746
  13,382
  14,050
  14,752
  15,489
  16,262
Total liabilities and equity, $m
  10,116
  10,240
  10,743
  11,271
  11,826
  12,409
  13,023
  13,668
  14,344
  15,055
  15,802
  16,586
  17,411
  18,277
  19,185
  20,141
  21,144
  22,196
  23,303
  24,465
  25,684
  26,966
  28,311
  29,723
  31,207
  32,765
  34,401
  36,118
  37,923
  39,817
  41,805
Debt-to-equity ratio
  0.953
  0.890
  0.930
  0.960
  0.980
  1.010
  1.040
  1.060
  1.090
  1.110
  1.130
  1.150
  1.170
  1.190
  1.210
  1.230
  1.240
  1.260
  1.270
  1.290
  1.300
  1.310
  1.330
  1.340
  1.350
  1.360
  1.370
  1.380
  1.390
  1.400
  1.400
Adjusted equity ratio
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  509
  537
  649
  768
  895
  1,031
  1,175
  1,329
  1,493
  1,668
  1,853
  2,384
  2,593
  2,816
  3,052
  3,303
  3,569
  3,851
  4,150
  4,467
  4,803
  5,158
  5,534
  5,932
  6,353
  6,799
  7,270
  7,769
  8,295
  8,852
  9,440
Depreciation, amort., depletion, $m
  361
  599
  606
  614
  621
  630
  638
  647
  657
  666
  677
  232
  243
  255
  268
  281
  295
  310
  325
  341
  358
  376
  395
  415
  436
  457
  480
  504
  529
  556
  584
Funds from operations, $m
  1,033
  1,137
  1,255
  1,382
  1,516
  1,660
  1,813
  1,976
  2,150
  2,334
  2,530
  2,615
  2,836
  3,071
  3,320
  3,584
  3,864
  4,161
  4,475
  4,808
  5,161
  5,534
  5,929
  6,347
  6,789
  7,256
  7,750
  8,273
  8,825
  9,408
  10,024
Change in working capital, $m
  171
  35
  37
  39
  41
  43
  45
  47
  49
  52
  55
  57
  60
  63
  66
  70
  73
  77
  81
  85
  89
  94
  98
  103
  108
  114
  120
  126
  132
  138
  145
Cash from operations, $m
  862
  1,343
  1,218
  1,343
  1,476
  1,617
  1,768
  1,929
  2,100
  2,282
  2,476
  2,558
  2,776
  3,008
  3,254
  3,515
  3,791
  4,084
  4,395
  4,724
  5,072
  5,441
  5,831
  6,244
  6,681
  7,143
  7,631
  8,147
  8,693
  9,269
  9,878
Maintenance CAPEX, $m
  0
  -136
  -143
  -150
  -157
  -165
  -173
  -182
  -191
  -200
  -210
  -221
  -232
  -243
  -255
  -268
  -281
  -295
  -310
  -325
  -341
  -358
  -376
  -395
  -415
  -436
  -457
  -480
  -504
  -529
  -556
New CAPEX, $m
  -165
  -122
  -129
  -136
  -143
  -150
  -157
  -165
  -174
  -183
  -192
  -202
  -212
  -222
  -233
  -245
  -258
  -271
  -284
  -298
  -313
  -329
  -346
  -363
  -381
  -400
  -420
  -441
  -463
  -486
  -511
Cash from investing activities, $m
  -1,504
  -258
  -272
  -286
  -300
  -315
  -330
  -347
  -365
  -383
  -402
  -423
  -444
  -465
  -488
  -513
  -539
  -566
  -594
  -623
  -654
  -687
  -722
  -758
  -796
  -836
  -877
  -921
  -967
  -1,015
  -1,067
Free cash flow, $m
  -642
  1,085
  946
  1,057
  1,176
  1,303
  1,438
  1,582
  1,736
  1,899
  2,074
  2,136
  2,333
  2,543
  2,765
  3,001
  3,252
  3,518
  3,801
  4,100
  4,417
  4,753
  5,109
  5,486
  5,885
  6,307
  6,753
  7,226
  7,725
  8,254
  8,812
Issuance/(repayment) of debt, $m
  909
  291
  307
  323
  339
  357
  375
  394
  414
  434
  456
  479
  504
  529
  556
  583
  613
  644
  676
  710
  745
  783
  822
  863
  906
  952
  1,000
  1,050
  1,102
  1,157
  1,215
Issuance/(repurchase) of shares, $m
  8
  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  
  902
  291
  307
  323
  339
  357
  375
  394
  414
  434
  456
  479
  504
  529
  556
  583
  613
  644
  676
  710
  745
  783
  822
  863
  906
  952
  1,000
  1,050
  1,102
  1,157
  1,215
Total cash flow (excl. dividends), $m
  255
  1,375
  1,254
  1,380
  1,515
  1,659
  1,812
  1,976
  2,149
  2,334
  2,530
  2,615
  2,837
  3,071
  3,321
  3,585
  3,865
  4,162
  4,477
  4,810
  5,162
  5,536
  5,931
  6,349
  6,791
  7,259
  7,753
  8,275
  8,828
  9,411
  10,027
Retained Cash Flow (-), $m
  -155
  -183
  -196
  -206
  -216
  -227
  -239
  -251
  -263
  -277
  -291
  -305
  -321
  -337
  -354
  -371
  -390
  -410
  -430
  -452
  -475
  -498
  -523
  -550
  -577
  -606
  -636
  -668
  -702
  -737
  -774
Prev. year cash balance distribution, $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 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
 
  1,192
  1,058
  1,175
  1,299
  1,432
  1,574
  1,725
  1,886
  2,057
  2,240
  2,310
  2,516
  2,735
  2,967
  3,213
  3,475
  3,752
  4,046
  4,358
  4,688
  5,038
  5,408
  5,799
  6,214
  6,653
  7,117
  7,607
  8,126
  8,674
  9,253
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  1,110
  911
  928
  935
  931
  916
  890
  854
  809
  755
  661
  602
  540
  477
  413
  352
  294
  241
  194
  152
  117
  88
  64
  46
  32
  21
  14
  9
  5
  3
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

Dover Corporation manufactures and sells a range of equipment and components, specialty systems, software and digital solutions, and support services worldwide. The company operates in four segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Energy segment provides solutions and services for the production and processing of fuels to drilling and production, bearings and compression, and automation end markets. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets. The Fluids segment focuses on the safe handling of critical fluids across the retail fueling, chemical, hygienic, oil and gas, and industrial markets. This segment also manufactures connectors for use in various bio-processing applications; and pumps and compressors that are used to transfer liquid and bulk products in various markets, including refined fuels, LPG, food/sanitary, transportation, and chemical process industries. The Refrigeration & Food Equipment segment manufactures refrigeration systems, refrigeration display cases, specialty glass, commercial glass refrigerator and freezer doors, and brazed heat exchangers; and electrical distribution products and engineering services, commercial food service equipment, cook-chill production systems, custom food storage and preparation products, kitchen ventilation systems, conveyer systems, and beverage can-making machinery. The company was founded in 1947 and is headquartered in Downers Grove, Illinois.

FINANCIAL RATIOS  of  Dover (DOV)

Valuation Ratios
P/E Ratio 23.9
Price to Sales 1.8
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 14.1
Price to Free Cash Flow 17.4
Growth Rates
Sales Growth Rate -2.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 7.1%
Cap. Spend. - 3 Yr. Gr. Rate 3%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 84.4%
Total Debt to Equity 95.3%
Interest Coverage 6
Management Effectiveness
Return On Assets 6.5%
Ret/ On Assets - 3 Yr. Avg. 8.7%
Return On Total Capital 7.4%
Ret/ On T. Cap. - 3 Yr. Avg. 10.3%
Return On Equity 13.7%
Return On Equity - 3 Yr. Avg. 18.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 36.6%
Gross Margin - 3 Yr. Avg. 37.5%
EBITDA Margin 17.4%
EBITDA Margin - 3 Yr. Avg. 18.4%
Operating Margin 11.9%
Oper. Margin - 3 Yr. Avg. 13.6%
Pre-Tax Margin 10.1%
Pre-Tax Margin - 3 Yr. Avg. 11.9%
Net Profit Margin 7.5%
Net Profit Margin - 3 Yr. Avg. 10%
Effective Tax Rate 26.1%
Eff/ Tax Rate - 3 Yr. Avg. 26.9%
Payout Ratio 52.7%

DOV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DOV stock intrinsic value calculation we used $6794 million for the last fiscal year's total revenue generated by Dover. The default revenue input number comes from 2016 income statement of Dover. 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 DOV stock valuation model: a) initial revenue growth rate of 4.9% 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 7.4%, whose default value for DOV is calculated based on our internal credit rating of Dover, 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 Dover.
    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 DOV stock the variable cost ratio is equal to 30.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $4026 million in the base year in the intrinsic value calculation for DOV 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 4.1% for Dover.

Corporate tax rate of 27% is the nominal tax rate for Dover. 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 DOV 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 DOV are equal to 36.9%.

Life of production assets of 18.4 years is the average useful life of capital assets used in Dover 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 DOV is equal to 10.5%. 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 - $3800 million for Dover - 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 155.219 million for Dover 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 Dover at the current share price and the inputted number of shares is $12.1 billion.


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COMPANY NEWS

▶ 3 Top Industrial Machinery Stocks to Buy in 2017   [May-13-17 11:40AM  Motley Fool]
▶ ETFs with exposure to Dover Corp. : April 24, 2017   [Apr-24-17 02:26PM  Capital Cube]
▶ Bluebirds Are Sighted Over Dover   [Apr-20-17 01:49PM  Bloomberg]
▶ Dover beats Street 1Q forecasts   [06:56AM  Associated Press]
▶ ETFs with exposure to Dover Corp. : April 7, 2017   [Apr-07-17 04:22PM  Capital Cube]
▶ Dover Corporation: Dover Acquires Caldera Graphics   [Apr-05-17 04:04PM  GlobeNewswire]
▶ [$$] This Stock Is Levered to an Energy Spending Rebound   [Apr-03-17 03:04PM  Barrons.com]
▶ ETFs with exposure to Dover Corp. : March 27, 2017   [Mar-27-17 03:54PM  Capital Cube]
▶ [$$] Kinderhook Buys Stake in Unit of Dover Corp. for $150 Million   [Feb-15-17 12:25PM  at The Wall Street Journal]
▶ Dover Gets Its Message Right   [11:59AM  at Bloomberg]
▶ Dover Corporation: Dover To Host Investor Meeting   [Jan-10-17 08:46AM  GlobeNewswire]
▶ Hedge Funds Are Betting On Dover Corp (DOV)   [Dec-06-16 10:46AM  at Insider Monkey]
▶ Hedge Funds Are Crazy About AMETEK, Inc. (AME)   [07:00AM  at Insider Monkey]
▶ The Best Manufacturing Stocks to Buy Now   [Nov-11-16 09:23AM  at Motley Fool]
Stock chart of DOV Financial statements of DOV Annual reports of DOV
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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