Intrinsic value of E*TRADE Financial - ETFC

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$36.24

  Intrinsic Value

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  Value-price divergence*

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$36.24

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

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

We calculate the intrinsic value of ETFC 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 9.2

 

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, %
  41.68
  15.90
  14.81
  13.83
  12.95
  12.15
  11.44
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
Revenue, $m
  1,941
  2,250
  2,583
  2,940
  3,321
  3,724
  4,150
  4,598
  5,067
  5,559
  6,071
  6,606
  7,162
  7,740
  8,342
  8,967
  9,617
  10,292
  10,993
  11,723
  12,482
  13,271
  14,093
  14,949
  15,841
  16,770
  17,740
  18,752
  19,808
  20,912
  22,065
Variable operating expenses, $m
 
  2,063
  2,334
  2,624
  2,933
  3,261
  3,606
  3,970
  4,351
  4,750
  5,166
  5,363
  5,815
  6,284
  6,773
  7,280
  7,808
  8,356
  8,925
  9,518
  10,134
  10,775
  11,442
  12,137
  12,861
  13,616
  14,403
  15,225
  16,082
  16,978
  17,914
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
  1,103
  2,063
  2,334
  2,624
  2,933
  3,261
  3,606
  3,970
  4,351
  4,750
  5,166
  5,363
  5,815
  6,284
  6,773
  7,280
  7,808
  8,356
  8,925
  9,518
  10,134
  10,775
  11,442
  12,137
  12,861
  13,616
  14,403
  15,225
  16,082
  16,978
  17,914
Operating income, $m
  838
  186
  249
  316
  388
  464
  544
  628
  716
  809
  905
  1,243
  1,347
  1,456
  1,569
  1,687
  1,809
  1,936
  2,068
  2,205
  2,348
  2,496
  2,651
  2,812
  2,980
  3,155
  3,337
  3,527
  3,726
  3,934
  4,150
EBITDA, $m
  1,077
  476
  546
  622
  702
  788
  878
  972
  1,072
  1,175
  1,284
  1,397
  1,514
  1,637
  1,764
  1,896
  2,034
  2,176
  2,325
  2,479
  2,639
  2,806
  2,980
  3,161
  3,350
  3,546
  3,751
  3,965
  4,189
  4,422
  4,666
Interest expense (income), $m
  77
  1,039
  1,241
  1,475
  1,725
  1,992
  2,275
  2,574
  2,889
  3,218
  3,563
  3,922
  4,297
  4,687
  5,093
  5,515
  5,954
  6,410
  6,883
  7,376
  7,888
  8,420
  8,974
  9,550
  10,151
  10,777
  11,429
  12,109
  12,819
  13,561
  14,335
Earnings before tax, $m
  838
  -852
  -992
  -1,159
  -1,338
  -1,529
  -1,732
  -1,946
  -2,172
  -2,409
  -2,658
  -2,680
  -2,950
  -3,231
  -3,524
  -3,829
  -4,145
  -4,474
  -4,816
  -5,171
  -5,540
  -5,924
  -6,323
  -6,739
  -7,171
  -7,622
  -8,092
  -8,582
  -9,093
  -9,627
  -10,184
Tax expense, $m
  286
  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
Net income, $m
  552
  -852
  -992
  -1,159
  -1,338
  -1,529
  -1,732
  -1,946
  -2,172
  -2,409
  -2,658
  -2,680
  -2,950
  -3,231
  -3,524
  -3,829
  -4,145
  -4,474
  -4,816
  -5,171
  -5,540
  -5,924
  -6,323
  -6,739
  -7,171
  -7,622
  -8,092
  -8,582
  -9,093
  -9,627
  -10,184

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,410
  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
  48,999
  52,317
  60,065
  68,371
  77,223
  86,606
  96,511
  106,927
  117,848
  129,270
  141,192
  153,618
  166,554
  180,009
  193,996
  208,534
  223,640
  239,339
  255,657
  272,622
  290,268
  308,628
  327,740
  347,645
  368,386
  390,008
  412,560
  436,094
  460,662
  486,323
  513,136
Adjusted assets (=assets-cash), $m
  45,589
  52,317
  60,065
  68,371
  77,223
  86,606
  96,511
  106,927
  117,848
  129,270
  141,192
  153,618
  166,554
  180,009
  193,996
  208,534
  223,640
  239,339
  255,657
  272,622
  290,268
  308,628
  327,740
  347,645
  368,386
  390,008
  412,560
  436,094
  460,662
  486,323
  513,136
Revenue / Adjusted assets
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
Average production assets, $m
  485
  562
  646
  735
  830
  931
  1,037
  1,149
  1,267
  1,390
  1,518
  1,651
  1,790
  1,935
  2,085
  2,242
  2,404
  2,573
  2,748
  2,931
  3,120
  3,318
  3,523
  3,737
  3,960
  4,193
  4,435
  4,688
  4,952
  5,228
  5,516
Working capital, $m
  0
  1,125
  1,291
  1,470
  1,660
  1,862
  2,075
  2,299
  2,534
  2,779
  3,036
  3,303
  3,581
  3,870
  4,171
  4,483
  4,808
  5,146
  5,497
  5,861
  6,241
  6,635
  7,046
  7,474
  7,920
  8,385
  8,870
  9,376
  9,904
  10,456
  11,032
Total debt, $m
  33,085
  35,455
  42,134
  49,294
  56,924
  65,013
  73,550
  82,529
  91,943
  101,789
  112,066
  122,777
  133,927
  145,525
  157,583
  170,114
  183,136
  196,668
  210,734
  225,359
  240,569
  256,395
  272,870
  290,028
  307,906
  326,545
  345,985
  366,271
  387,449
  409,569
  432,681
Total liabilities, $m
  42,727
  45,097
  51,776
  58,936
  66,566
  74,655
  83,192
  92,171
  101,585
  111,431
  121,708
  132,419
  143,569
  155,167
  167,225
  179,756
  192,778
  206,310
  220,376
  235,001
  250,211
  266,037
  282,512
  299,670
  317,548
  336,187
  355,627
  375,913
  397,091
  419,211
  442,323
Total equity, $m
  6,272
  7,220
  8,289
  9,435
  10,657
  11,952
  13,319
  14,756
  16,263
  17,839
  19,485
  21,199
  22,984
  24,841
  26,771
  28,778
  30,862
  33,029
  35,281
  37,622
  40,057
  42,591
  45,228
  47,975
  50,837
  53,821
  56,933
  60,181
  63,571
  67,113
  70,813
Total liabilities and equity, $m
  48,999
  52,317
  60,065
  68,371
  77,223
  86,607
  96,511
  106,927
  117,848
  129,270
  141,193
  153,618
  166,553
  180,008
  193,996
  208,534
  223,640
  239,339
  255,657
  272,623
  290,268
  308,628
  327,740
  347,645
  368,385
  390,008
  412,560
  436,094
  460,662
  486,324
  513,136
Debt-to-equity ratio
  5.275
  4.910
  5.080
  5.220
  5.340
  5.440
  5.520
  5.590
  5.650
  5.710
  5.750
  5.790
  5.830
  5.860
  5.890
  5.910
  5.930
  5.950
  5.970
  5.990
  6.010
  6.020
  6.030
  6.050
  6.060
  6.070
  6.080
  6.090
  6.090
  6.100
  6.110
Adjusted equity ratio
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  552
  -852
  -992
  -1,159
  -1,338
  -1,529
  -1,732
  -1,946
  -2,172
  -2,409
  -2,658
  -2,680
  -2,950
  -3,231
  -3,524
  -3,829
  -4,145
  -4,474
  -4,816
  -5,171
  -5,540
  -5,924
  -6,323
  -6,739
  -7,171
  -7,622
  -8,092
  -8,582
  -9,093
  -9,627
  -10,184
Depreciation, amort., depletion, $m
  239
  290
  297
  306
  315
  324
  334
  344
  355
  367
  379
  154
  167
  181
  195
  210
  225
  240
  257
  274
  292
  310
  329
  349
  370
  392
  414
  438
  463
  489
  516
Funds from operations, $m
  2,350
  -563
  -695
  -853
  -1,023
  -1,205
  -1,398
  -1,602
  -1,817
  -2,043
  -2,279
  -2,525
  -2,783
  -3,051
  -3,329
  -3,619
  -3,920
  -4,233
  -4,559
  -4,897
  -5,248
  -5,614
  -5,994
  -6,389
  -6,801
  -7,230
  -7,678
  -8,144
  -8,631
  -9,139
  -9,669
Change in working capital, $m
  725
  154
  167
  179
  190
  202
  213
  224
  235
  246
  256
  267
  278
  289
  301
  313
  325
  338
  351
  365
  379
  395
  411
  428
  446
  465
  485
  506
  528
  552
  576
Cash from operations, $m
  1,625
  -643
  -861
  -1,032
  -1,213
  -1,407
  -1,611
  -1,826
  -2,052
  -2,288
  -2,535
  -2,793
  -3,061
  -3,340
  -3,630
  -3,932
  -4,245
  -4,571
  -4,910
  -5,261
  -5,628
  -6,008
  -6,405
  -6,817
  -7,247
  -7,695
  -8,163
  -8,650
  -9,159
  -9,690
  -10,245
Maintenance CAPEX, $m
  0
  -45
  -53
  -60
  -69
  -78
  -87
  -97
  -107
  -118
  -130
  -142
  -154
  -167
  -181
  -195
  -210
  -225
  -240
  -257
  -274
  -292
  -310
  -329
  -349
  -370
  -392
  -414
  -438
  -463
  -489
New CAPEX, $m
  -75
  -78
  -83
  -89
  -95
  -101
  -106
  -112
  -117
  -123
  -128
  -134
  -139
  -145
  -150
  -156
  -162
  -169
  -175
  -182
  -190
  -197
  -205
  -214
  -223
  -232
  -242
  -253
  -264
  -276
  -288
Cash from investing activities, $m
  -4,004
  -123
  -136
  -149
  -164
  -179
  -193
  -209
  -224
  -241
  -258
  -276
  -293
  -312
  -331
  -351
  -372
  -394
  -415
  -439
  -464
  -489
  -515
  -543
  -572
  -602
  -634
  -667
  -702
  -739
  -777
Free cash flow, $m
  -2,379
  -766
  -997
  -1,181
  -1,377
  -1,585
  -1,804
  -2,035
  -2,277
  -2,529
  -2,793
  -3,068
  -3,354
  -3,652
  -3,961
  -4,283
  -4,617
  -4,964
  -5,325
  -5,701
  -6,091
  -6,497
  -6,920
  -7,360
  -7,819
  -8,298
  -8,797
  -9,317
  -9,861
  -10,429
  -11,022
Issuance/(repayment) of debt, $m
  2,237
  5,780
  6,679
  7,160
  7,630
  8,089
  8,538
  8,979
  9,414
  9,846
  10,277
  10,711
  11,150
  11,598
  12,057
  12,531
  13,022
  13,533
  14,066
  14,624
  15,210
  15,826
  16,475
  17,158
  17,878
  18,638
  19,440
  20,286
  21,178
  22,120
  23,113
Issuance/(repurchase) of shares, $m
  -52
  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  
  2,096
  5,780
  6,679
  7,160
  7,630
  8,089
  8,538
  8,979
  9,414
  9,846
  10,277
  10,711
  11,150
  11,598
  12,057
  12,531
  13,022
  13,533
  14,066
  14,624
  15,210
  15,826
  16,475
  17,158
  17,878
  18,638
  19,440
  20,286
  21,178
  22,120
  23,113
Total cash flow (excl. dividends), $m
  -283
  5,014
  5,682
  5,979
  6,253
  6,504
  6,733
  6,944
  7,137
  7,316
  7,484
  7,643
  7,796
  7,946
  8,096
  8,248
  8,405
  8,568
  8,740
  8,924
  9,119
  9,329
  9,555
  9,798
  10,059
  10,341
  10,643
  10,968
  11,317
  11,691
  12,091
Retained Cash Flow (-), $m
  -473
  -948
  -1,069
  -1,146
  -1,221
  -1,295
  -1,367
  -1,437
  -1,507
  -1,576
  -1,645
  -1,715
  -1,785
  -1,857
  -1,930
  -2,006
  -2,085
  -2,166
  -2,252
  -2,341
  -2,435
  -2,534
  -2,637
  -2,747
  -2,862
  -2,984
  -3,112
  -3,248
  -3,390
  -3,541
  -3,700
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
 
  4,066
  4,612
  4,833
  5,031
  5,209
  5,367
  5,506
  5,630
  5,740
  5,839
  5,928
  6,011
  6,090
  6,166
  6,242
  6,320
  6,402
  6,489
  6,582
  6,684
  6,795
  6,917
  7,051
  7,197
  7,357
  7,531
  7,721
  7,927
  8,150
  8,390
Discount rate, %
 
  12.30
  12.92
  13.56
  14.24
  14.95
  15.70
  16.48
  17.31
  18.17
  19.08
  20.04
  21.04
  22.09
  23.19
  24.35
  25.57
  26.85
  28.19
  29.60
  31.08
  32.64
  34.27
  35.98
  37.78
  39.67
  41.65
  43.73
  45.92
  48.22
  50.63
PV of cash for distribution, $m
 
  3,621
  3,618
  3,300
  2,954
  2,595
  2,237
  1,892
  1,570
  1,277
  1,018
  795
  608
  455
  332
  237
  165
  112
  74
  48
  30
  18
  11
  6
  3
  2
  1
  0
  0
  0
  0
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

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand. It also offers investor-focused banking products, primarily deposits to retail investors; and financial corporate services, such as software and services for managing equity compensation plans to its corporate clients. The company provides its services to customers through digital platforms; and a network of customer service representatives and financial consultants through phone, email, and online at two branches, as well as in person through 30 branches across the United States. The company was incorporated in 1982 and is headquartered in New York, New York.

FINANCIAL RATIOS  of  E*TRADE Financial (ETFC)

Valuation Ratios
P/E Ratio 18
Price to Sales 5.1
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 6.1
Price to Free Cash Flow 6.4
Growth Rates
Sales Growth Rate 41.7%
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 9.8%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 22.4%
Total Debt to Equity 527.5%
Interest Coverage 12
Management Effectiveness
Return On Assets 1.3%
Ret/ On Assets - 3 Yr. Avg. 1.4%
Return On Total Capital 1.5%
Ret/ On T. Cap. - 3 Yr. Avg. 1%
Return On Equity 9.1%
Return On Equity - 3 Yr. Avg. 6.6%
Asset Turnover 0
Profitability Ratios
Gross Margin 94.6%
Gross Margin - 3 Yr. Avg. 94%
EBITDA Margin 59.5%
EBITDA Margin - 3 Yr. Avg. 56.6%
Operating Margin 43.2%
Oper. Margin - 3 Yr. Avg. 25.4%
Pre-Tax Margin 43.2%
Pre-Tax Margin - 3 Yr. Avg. 25.4%
Net Profit Margin 28.4%
Net Profit Margin - 3 Yr. Avg. 21.7%
Effective Tax Rate 34.1%
Eff/ Tax Rate - 3 Yr. Avg. -41.7%
Payout Ratio 0%

ETFC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ETFC stock intrinsic value calculation we used $1941 million for the last fiscal year's total revenue generated by E*TRADE Financial. The default revenue input number comes from 2016 income statement of E*TRADE Financial. 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 ETFC stock valuation model: a) initial revenue growth rate of 15.9% 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 12.3%, whose default value for ETFC is calculated based on our internal credit rating of E*TRADE Financial, 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 E*TRADE Financial.
    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 ETFC stock the variable cost ratio is equal to 93.4%.

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 ETFC 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 E*TRADE Financial.

Corporate tax rate of 27% is the nominal tax rate for E*TRADE Financial. 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 ETFC 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 ETFC are equal to 25%.

Life of production assets of 10.7 years is the average useful life of capital assets used in E*TRADE Financial 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 ETFC is equal to 50%. 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 - $6272 million for E*TRADE Financial - 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 254.696 million for E*TRADE Financial 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 E*TRADE Financial at the current share price and the inputted number of shares is $9.2 billion.


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COMPANY NEWS

▶ Dont Get Mad. Get E*TRADE.   [Jun-19-17 12:30PM  Business Wire]
▶ Banks And Financial Stocks: Latest News And Analysis   [Jun-13-17 12:31PM  Investor's Business Daily]
▶ Which Stocks Are Showing Rising Relative Strength?   [Jun-12-17 01:47PM  Investor's Business Daily]
▶ E*Trade Financial Trying To Close In On Key Technical Measure   [12:10PM  Investor's Business Daily]
▶ Who trades options the most? Millennial investors   [May-24-17 01:32PM  MarketWatch]
▶ [$$] OakNorth strengthens board after Lord Adair exit   [May-22-17 07:30AM  Financial Times]
▶ E*TRADE to Host Education Day in Orange County   [May-11-17 04:05PM  Business Wire]
▶ Brokerage pricing battle   [12:39PM  CNBC Videos]
▶ E*Trade: Broker Review for Stock Options   [12:22PM  Motley Fool]
▶ Visa, Hawaiian Holdings, Proofpoint, E-Trade Beat Views Late   [04:41PM  Investor's Business Daily]
▶ E-Trade jumps, Mattel drops on earnings   [04:30PM  CNBC Videos]
▶ E-Trade tops Street 1Q forecasts   [04:22PM  Associated Press]
▶ Charles Schwab Tops Views As Account Openings Hit 17-Year High Amid Price War   [Apr-18-17 04:09PM  Investor's Business Daily]
▶ E*TRADE to Host Education Day in Washington, D.C.   [Apr-11-17 04:05PM  Business Wire]
▶ E*TRADE Takes Major Step to Reinvigorate Iconic Brand   [Apr-03-17 04:05PM  Business Wire]
▶ E*TRADE to Host Education Day in San Francisco   [Mar-31-17 04:05PM  Business Wire]
▶ How to Invest in Stocks for Beginners   [Mar-17-17 02:47PM  Zacks]
▶ E*TRADE to Host Education Day in La Jolla   [Mar-16-17 04:05PM  Business Wire]
▶ The Biggest Winner in the New Broker Wars   [09:43AM  Motley Fool]
▶ [$$] E*Trade Financial Set for EPS Lift   [07:26AM  at Barrons.com]
▶ [$$] Online Broker Price War: Keep an Eye on Services   [Mar-11-17 12:37AM  at Barrons.com]
▶ Why a Big eBroker Merger Seems Likely   [Mar-10-17 09:24AM  at Barrons.com]
▶ [$$] Stocks: A Crowded Elevator Ready to Go Down?   [Mar-04-17 02:10AM  at Barrons.com]
▶ [$$] E*Trade Becomes Latest Online Brokerage to Cut Commissions   [Mar-02-17 01:59PM  at The Wall Street Journal]
▶ Why Shares of TD Ameritrade Holding Corp. Dropped 10% Today   [Feb-28-17 04:14PM  at Motley Fool]
▶ E*TRADE to Host Annual Retirement Day   [Feb-27-17 04:05PM  Business Wire]
▶ E*Trade Adds 47 Commission Free ETFs   [Feb-24-17 10:31AM  at Barrons.com]
▶ 20 companies that have met a high bar this earnings season   [Feb-18-17 08:28AM  at MarketWatch]
Stock chart of ETFC Financial statements of ETFC Annual reports of ETFC
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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