Intrinsic value of Darden Restaurants - DRI

Previous Close

$86.55

  Intrinsic Value

$207.42

stock screener

  Rating & Target

str. buy

+140%

Previous close

$86.55

 
Intrinsic value

$207.42

 
Up/down potential

+140%

 
Rating

str. buy

We calculate the intrinsic value of DRI 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 10.7

 

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, %
  3.40
  13.00
  12.20
  11.48
  10.83
  10.25
  9.72
  9.25
  8.83
  8.44
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
  6.20
  6.08
  5.97
  5.88
  5.79
  5.71
  5.64
  5.57
  5.52
  5.47
  5.42
  5.38
Revenue, $m
  7,170
  8,102
  9,091
  10,134
  11,232
  12,383
  13,587
  14,844
  16,154
  17,518
  18,937
  20,412
  21,945
  23,539
  25,194
  26,915
  28,704
  30,565
  32,501
  34,516
  36,615
  38,802
  41,081
  43,459
  45,940
  48,530
  51,236
  54,062
  57,017
  60,106
  63,338
Variable operating expenses, $m
 
  6,231
  6,977
  7,764
  8,592
  9,460
  10,368
  11,316
  12,304
  13,333
  14,403
  15,396
  16,552
  17,754
  19,002
  20,300
  21,650
  23,053
  24,513
  26,033
  27,616
  29,266
  30,985
  32,778
  34,650
  36,603
  38,644
  40,776
  43,004
  45,334
  47,772
Fixed operating expenses, $m
 
  1,013
  1,038
  1,064
  1,091
  1,118
  1,146
  1,174
  1,204
  1,234
  1,265
  1,296
  1,329
  1,362
  1,396
  1,431
  1,467
  1,503
  1,541
  1,579
  1,619
  1,659
  1,701
  1,743
  1,787
  1,832
  1,877
  1,924
  1,973
  2,022
  2,072
Total operating expenses, $m
  6,493
  7,244
  8,015
  8,828
  9,683
  10,578
  11,514
  12,490
  13,508
  14,567
  15,668
  16,692
  17,881
  19,116
  20,398
  21,731
  23,117
  24,556
  26,054
  27,612
  29,235
  30,925
  32,686
  34,521
  36,437
  38,435
  40,521
  42,700
  44,977
  47,356
  49,844
Operating income, $m
  678
  858
  1,076
  1,306
  1,550
  1,805
  2,073
  2,354
  2,646
  2,951
  3,269
  3,720
  4,065
  4,423
  4,796
  5,184
  5,588
  6,008
  6,447
  6,903
  7,380
  7,877
  8,395
  8,937
  9,503
  10,095
  10,714
  11,362
  12,040
  12,750
  13,494
EBITDA, $m
  951
  1,116
  1,350
  1,598
  1,860
  2,135
  2,423
  2,725
  3,040
  3,368
  3,710
  4,065
  4,436
  4,821
  5,222
  5,639
  6,073
  6,525
  6,996
  7,487
  7,999
  8,533
  9,090
  9,672
  10,280
  10,916
  11,581
  12,276
  13,004
  13,767
  14,565
Interest expense (income), $m
  37
  51
  73
  97
  122
  148
  176
  205
  235
  267
  300
  334
  369
  406
  444
  484
  526
  569
  613
  660
  708
  759
  811
  866
  923
  983
  1,045
  1,110
  1,178
  1,249
  1,324
Earnings before tax, $m
  637
  808
  1,003
  1,210
  1,428
  1,657
  1,897
  2,148
  2,411
  2,685
  2,970
  3,387
  3,695
  4,017
  4,351
  4,700
  5,062
  5,440
  5,833
  6,243
  6,671
  7,118
  7,584
  8,071
  8,580
  9,112
  9,669
  10,252
  10,862
  11,501
  12,170
Tax expense, $m
  154
  218
  271
  327
  385
  447
  512
  580
  651
  725
  802
  914
  998
  1,085
  1,175
  1,269
  1,367
  1,469
  1,575
  1,686
  1,801
  1,922
  2,048
  2,179
  2,317
  2,460
  2,611
  2,768
  2,933
  3,105
  3,286
Net income, $m
  479
  590
  732
  883
  1,042
  1,209
  1,385
  1,568
  1,760
  1,960
  2,168
  2,472
  2,698
  2,932
  3,177
  3,431
  3,695
  3,971
  4,258
  4,558
  4,870
  5,196
  5,536
  5,892
  6,263
  6,652
  7,058
  7,484
  7,929
  8,396
  8,884

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  233
  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
  5,292
  5,718
  6,415
  7,152
  7,927
  8,739
  9,589
  10,476
  11,400
  12,363
  13,364
  14,405
  15,487
  16,612
  17,780
  18,994
  20,257
  21,570
  22,936
  24,359
  25,840
  27,383
  28,992
  30,670
  32,421
  34,249
  36,158
  38,153
  40,238
  42,418
  44,699
Adjusted assets (=assets-cash), $m
  5,059
  5,718
  6,415
  7,152
  7,927
  8,739
  9,589
  10,476
  11,400
  12,363
  13,364
  14,405
  15,487
  16,612
  17,780
  18,994
  20,257
  21,570
  22,936
  24,359
  25,840
  27,383
  28,992
  30,670
  32,421
  34,249
  36,158
  38,153
  40,238
  42,418
  44,699
Revenue / Adjusted assets
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
  1.417
Average production assets, $m
  823
  932
  1,045
  1,165
  1,292
  1,424
  1,563
  1,707
  1,858
  2,015
  2,178
  2,347
  2,524
  2,707
  2,897
  3,095
  3,301
  3,515
  3,738
  3,969
  4,211
  4,462
  4,724
  4,998
  5,283
  5,581
  5,892
  6,217
  6,557
  6,912
  7,284
Working capital, $m
  -701
  -1,053
  -1,182
  -1,317
  -1,460
  -1,610
  -1,766
  -1,930
  -2,100
  -2,277
  -2,462
  -2,654
  -2,853
  -3,060
  -3,275
  -3,499
  -3,732
  -3,973
  -4,225
  -4,487
  -4,760
  -5,044
  -5,341
  -5,650
  -5,972
  -6,309
  -6,661
  -7,028
  -7,412
  -7,814
  -8,234
Total debt, $m
  937
  1,355
  1,795
  2,260
  2,749
  3,261
  3,797
  4,357
  4,941
  5,548
  6,180
  6,837
  7,519
  8,229
  8,966
  9,732
  10,529
  11,358
  12,220
  13,117
  14,052
  15,026
  16,041
  17,100
  18,205
  19,358
  20,563
  21,821
  23,137
  24,513
  25,952
Total liabilities, $m
  3,191
  3,608
  4,048
  4,513
  5,002
  5,514
  6,050
  6,610
  7,194
  7,801
  8,433
  9,090
  9,772
  10,482
  11,219
  11,985
  12,782
  13,611
  14,473
  15,370
  16,305
  17,279
  18,294
  19,353
  20,458
  21,611
  22,816
  24,074
  25,390
  26,766
  28,205
Total equity, $m
  2,102
  2,110
  2,367
  2,639
  2,925
  3,225
  3,538
  3,866
  4,207
  4,562
  4,931
  5,316
  5,715
  6,130
  6,561
  7,009
  7,475
  7,959
  8,463
  8,988
  9,535
  10,104
  10,698
  11,317
  11,963
  12,638
  13,342
  14,078
  14,848
  15,652
  16,494
Total liabilities and equity, $m
  5,293
  5,718
  6,415
  7,152
  7,927
  8,739
  9,588
  10,476
  11,401
  12,363
  13,364
  14,406
  15,487
  16,612
  17,780
  18,994
  20,257
  21,570
  22,936
  24,358
  25,840
  27,383
  28,992
  30,670
  32,421
  34,249
  36,158
  38,152
  40,238
  42,418
  44,699
Debt-to-equity ratio
  0.446
  0.640
  0.760
  0.860
  0.940
  1.010
  1.070
  1.130
  1.170
  1.220
  1.250
  1.290
  1.320
  1.340
  1.370
  1.390
  1.410
  1.430
  1.440
  1.460
  1.470
  1.490
  1.500
  1.510
  1.520
  1.530
  1.540
  1.550
  1.560
  1.570
  1.570
Adjusted equity ratio
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369
  0.369

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  479
  590
  732
  883
  1,042
  1,209
  1,385
  1,568
  1,760
  1,960
  2,168
  2,472
  2,698
  2,932
  3,177
  3,431
  3,695
  3,971
  4,258
  4,558
  4,870
  5,196
  5,536
  5,892
  6,263
  6,652
  7,058
  7,484
  7,929
  8,396
  8,884
Depreciation, amort., depletion, $m
  273
  257
  274
  292
  310
  330
  350
  371
  393
  416
  440
  345
  371
  398
  426
  455
  485
  517
  550
  584
  619
  656
  695
  735
  777
  821
  866
  914
  964
  1,017
  1,071
Funds from operations, $m
  1,052
  847
  1,006
  1,175
  1,352
  1,539
  1,735
  1,940
  2,153
  2,376
  2,608
  2,817
  3,069
  3,330
  3,603
  3,886
  4,181
  4,488
  4,808
  5,141
  5,489
  5,852
  6,231
  6,627
  7,040
  7,473
  7,925
  8,398
  8,893
  9,412
  9,955
Change in working capital, $m
  152
  -121
  -128
  -136
  -143
  -150
  -157
  -163
  -170
  -177
  -184
  -192
  -199
  -207
  -215
  -224
  -233
  -242
  -252
  -262
  -273
  -284
  -296
  -309
  -323
  -337
  -352
  -367
  -384
  -402
  -420
Cash from operations, $m
  900
  968
  1,134
  1,310
  1,495
  1,689
  1,891
  2,103
  2,324
  2,553
  2,793
  3,009
  3,268
  3,538
  3,818
  4,110
  4,413
  4,730
  5,060
  5,403
  5,762
  6,137
  6,527
  6,936
  7,363
  7,809
  8,277
  8,766
  9,277
  9,814
  10,376
Maintenance CAPEX, $m
  0
  -121
  -137
  -154
  -171
  -190
  -209
  -230
  -251
  -273
  -296
  -320
  -345
  -371
  -398
  -426
  -455
  -485
  -517
  -550
  -584
  -619
  -656
  -695
  -735
  -777
  -821
  -866
  -914
  -964
  -1,017
New CAPEX, $m
  -318
  -109
  -114
  -120
  -126
  -132
  -138
  -145
  -151
  -157
  -163
  -170
  -176
  -183
  -190
  -198
  -206
  -214
  -223
  -232
  -241
  -251
  -262
  -273
  -285
  -298
  -311
  -325
  -340
  -355
  -372
Cash from investing activities, $m
  -1,071
  -230
  -251
  -274
  -297
  -322
  -347
  -375
  -402
  -430
  -459
  -490
  -521
  -554
  -588
  -624
  -661
  -699
  -740
  -782
  -825
  -870
  -918
  -968
  -1,020
  -1,075
  -1,132
  -1,191
  -1,254
  -1,319
  -1,389
Free cash flow, $m
  -171
  738
  884
  1,036
  1,197
  1,366
  1,544
  1,729
  1,922
  2,123
  2,333
  2,519
  2,747
  2,983
  3,229
  3,486
  3,752
  4,030
  4,320
  4,622
  4,937
  5,266
  5,609
  5,968
  6,343
  6,735
  7,145
  7,574
  8,023
  8,494
  8,987
Issuance/(repayment) of debt, $m
  502
  418
  440
  465
  489
  513
  536
  560
  583
  607
  632
  657
  683
  709
  737
  766
  797
  829
  862
  897
  935
  974
  1,015
  1,059
  1,105
  1,153
  1,205
  1,259
  1,316
  1,376
  1,439
Issuance/(repurchase) of shares, $m
  -117
  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  
  408
  418
  440
  465
  489
  513
  536
  560
  583
  607
  632
  657
  683
  709
  737
  766
  797
  829
  862
  897
  935
  974
  1,015
  1,059
  1,105
  1,153
  1,205
  1,259
  1,316
  1,376
  1,439
Total cash flow (excl. dividends), $m
  237
  1,156
  1,324
  1,501
  1,686
  1,879
  2,080
  2,288
  2,505
  2,731
  2,965
  3,176
  3,429
  3,693
  3,967
  4,252
  4,549
  4,859
  5,182
  5,519
  5,872
  6,240
  6,624
  7,027
  7,447
  7,888
  8,349
  8,833
  9,339
  9,870
  10,427
Retained Cash Flow (-), $m
  -150
  -241
  -257
  -272
  -286
  -300
  -314
  -327
  -341
  -355
  -369
  -384
  -399
  -415
  -431
  -448
  -466
  -485
  -504
  -525
  -547
  -569
  -594
  -619
  -646
  -675
  -704
  -736
  -769
  -805
  -842
Prev. year cash balance distribution, $m
 
  233
  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
 
  1,148
  1,067
  1,229
  1,400
  1,579
  1,766
  1,961
  2,164
  2,376
  2,596
  2,792
  3,030
  3,278
  3,535
  3,804
  4,083
  4,374
  4,678
  4,995
  5,325
  5,670
  6,031
  6,407
  6,801
  7,214
  7,645
  8,097
  8,570
  9,065
  9,585
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
 
  1,101
  976
  1,070
  1,153
  1,224
  1,282
  1,325
  1,353
  1,365
  1,361
  1,326
  1,293
  1,246
  1,187
  1,117
  1,038
  952
  862
  769
  677
  586
  500
  420
  346
  281
  223
  174
  133
  99
  72
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

Darden Restaurants, Inc. is a full-service restaurant company. The Company owned and operated 1,536 restaurants through its subsidiaries in the United States and Canada, as of May 29, 2016. The Company's segments include Olive Garden, LongHorn Steakhouse, Fine Dining (which includes The Capital Grille, and Eddie V's Prime Seafood and Wildfish Seafood Grille (Eddie V's)) and Other Business (which includes Yard House, Seasons 52, Bahama Breeze, consumer-packaged goods and franchise revenues). As of May 29, 2016, the Company also had 50 restaurants operated by independent third parties pursuant to area development and franchise agreements. Olive Garden's menu includes a range of authentic Italian foods featuring fresh ingredients and a selection of imported Italian wines. LongHorn Steakhouse restaurants feature a range of menu items, including fresh steaks and chicken, as well as salmon, shrimp, ribs, pork chops, burgers and prime rib.

FINANCIAL RATIOS  of  Darden Restaurants (DRI)

Valuation Ratios
P/E Ratio 22.7
Price to Sales 1.5
Price to Book 5.2
Price to Tangible Book
Price to Cash Flow 12.1
Price to Free Cash Flow 18.6
Growth Rates
Sales Growth Rate 3.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 26.2%
Cap. Spend. - 3 Yr. Gr. Rate -6.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 44.6%
Total Debt to Equity 44.6%
Interest Coverage 18
Management Effectiveness
Return On Assets 10.3%
Ret/ On Assets - 3 Yr. Avg. 10.9%
Return On Total Capital 17.6%
Ret/ On T. Cap. - 3 Yr. Avg. 15.4%
Return On Equity 23.6%
Return On Equity - 3 Yr. Avg. 24.2%
Asset Turnover 1.5
Profitability Ratios
Gross Margin 21.8%
Gross Margin - 3 Yr. Avg. 21.8%
EBITDA Margin 13.2%
EBITDA Margin - 3 Yr. Avg. 11.8%
Operating Margin 9.4%
Oper. Margin - 3 Yr. Avg. 8%
Pre-Tax Margin 8.9%
Pre-Tax Margin - 3 Yr. Avg. 6%
Net Profit Margin 6.7%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 24.2%
Eff/ Tax Rate - 3 Yr. Avg. 10.7%
Payout Ratio 58.2%

DRI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DRI stock intrinsic value calculation we used $7170 million for the last fiscal year's total revenue generated by Darden Restaurants. The default revenue input number comes from 2017 income statement of Darden Restaurants. 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 DRI stock valuation model: a) initial revenue growth rate of 13% 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 DRI is calculated based on our internal credit rating of Darden Restaurants, 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 Darden Restaurants.
    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 DRI stock the variable cost ratio is equal to 77.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $988 million in the base year in the intrinsic value calculation for DRI 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 5.4% for Darden Restaurants.

Corporate tax rate of 27% is the nominal tax rate for Darden Restaurants. 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 DRI 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 DRI are equal to 11.5%.

Life of production assets of 6.8 years is the average useful life of capital assets used in Darden Restaurants 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 DRI is equal to -13%. 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 - $2102 million for Darden Restaurants - 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 123.716 million for Darden Restaurants 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 Darden Restaurants at the current share price and the inputted number of shares is $10.7 billion.

RELATED COMPANIES Price Int.Val. Rating
EAT Brinker Intern 38.37 3.46  str.sell
KONA Kona Grill 1.95 0.79  str.sell
BJRI BJ's Resta 36.65 47.50  buy
STKS ONE Group Hosp 2.44 0.08  str.sell
DFRG Del Frisco' 15.05 10.49  hold
RUTH Ruth's Hos 21.40 29.03  buy
FOGO Fogo de Chao 11.75 59.34  str.buy
DIN DineEquity 51.39 50.04  hold

COMPANY NEWS

▶ 7 Thanksgiving Stocks to Buy Other Than Retail   [Nov-22-17 01:05PM  InvestorPlace]
▶ NYSE Top Dividend Stocks Newell Brands And More   [Nov-15-17 08:02AM  Simply Wall St.]
▶ Hungry Traders Could Probe the Long side of Darden   [Nov-14-17 09:56AM  TheStreet.com]
▶ What's affecting the casual dining sector: Analyst   [Nov-01-17 02:46PM  CNBC Videos]
▶ Companies Paying Americans the Least   [Oct-27-17 04:22PM  24/7 Wall St.]
▶ Hurricanes Harvey and Irma Hurt the Restaurant Industry   [Oct-19-17 12:37PM  Motley Fool]
▶ Is It Time To Buy Darden Restaurants Inc (DRI)?   [Oct-13-17 08:37AM  Simply Wall St.]
▶ Stifel initiates coverage on the food stocks   [Oct-03-17 03:05PM  CNBC Videos]
▶ [$$] Memory Chip Maker Micron Elbows Ahead   [Sep-30-17 12:52AM  Barrons.com]
▶ Why Darden Restaurants EBIT Margins Fell in Fiscal 1Q18   [Sep-29-17 10:42AM  Market Realist]
▶ Why Dardens Same-Store Sales Growth Was Lower Than Estimates   [Sep-28-17 05:36PM  Market Realist]
▶ Darden Restaurants tops Street 1Q forecasts   [Sep-26-17 10:18PM  Associated Press]
▶ What Happened in the Stock Market Today   [04:59PM  Motley Fool]
▶ Darden Restaurants Slips on Earnings Miss   [12:48PM  GuruFocus.com]
▶ Q3 Earnings Season Preview   [Sep-22-17 07:26PM  Zacks]
▶ Dardens EBIT Margin Is Expected to Rise in Fiscal 1Q18   [Sep-20-17 03:37PM  Market Realist]
Financial statements of DRI
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.