Intrinsic value of Evercore Partners Cl A - EVR

Previous Close

$76.65

  Intrinsic Value

$3,896

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

-89%

Previous close

$76.65

 
Intrinsic value

$3,896

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

-89%

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

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

We calculate the intrinsic value of EVR 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 3.3

 

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, %
  17.50
  50.80
  46.22
  42.10
  38.39
  35.05
  32.04
  29.34
  26.91
  24.72
  22.74
  20.97
  19.37
  17.94
  16.64
  15.48
  14.43
  13.49
  12.64
  11.87
  11.19
  10.57
  10.01
  9.51
  9.06
  8.65
  8.29
  7.96
  7.66
  7.40
  7.16
Revenue, $m
  1,457
  2,197
  3,213
  4,565
  6,318
  8,532
  11,266
  14,571
  18,492
  23,062
  28,308
  34,243
  40,877
  48,209
  56,232
  64,935
  74,305
  84,326
  94,983
  106,262
  118,150
  130,636
  143,714
  157,382
  171,639
  186,492
  201,948
  218,022
  234,729
  252,092
  270,135
Variable operating expenses, $m
 
  842
  1,224
  1,732
  2,391
  3,224
  4,252
  5,494
  6,968
  8,686
  10,658
  12,874
  15,368
  18,124
  21,140
  24,412
  27,935
  31,702
  35,709
  39,949
  44,418
  49,113
  54,029
  59,168
  64,528
  70,112
  75,922
  81,965
  88,246
  94,774
  101,557
Fixed operating expenses, $m
 
  664
  681
  698
  715
  733
  751
  770
  790
  809
  829
  850
  871
  893
  916
  938
  962
  986
  1,011
  1,036
  1,062
  1,088
  1,116
  1,143
  1,172
  1,201
  1,231
  1,262
  1,294
  1,326
  1,359
Total operating expenses, $m
  1,196
  1,506
  1,905
  2,430
  3,106
  3,957
  5,003
  6,264
  7,758
  9,495
  11,487
  13,724
  16,239
  19,017
  22,056
  25,350
  28,897
  32,688
  36,720
  40,985
  45,480
  50,201
  55,145
  60,311
  65,700
  71,313
  77,153
  83,227
  89,540
  96,100
  102,916
Operating income, $m
  261
  691
  1,308
  2,135
  3,211
  4,575
  6,263
  8,307
  10,734
  13,567
  16,820
  20,519
  24,638
  29,191
  34,176
  39,584
  45,408
  51,638
  58,264
  65,277
  72,669
  80,435
  88,569
  97,071
  105,940
  115,179
  124,795
  134,794
  145,189
  155,992
  167,219
EBITDA, $m
  286
  720
  1,343
  2,178
  3,264
  4,641
  6,344
  8,408
  10,858
  13,717
  17,000
  20,718
  24,875
  29,471
  34,502
  39,961
  45,839
  52,127
  58,815
  65,893
  73,355
  81,193
  89,403
  97,984
  106,935
  116,261
  125,966
  136,059
  146,551
  157,454
  168,785
Interest expense (income), $m
  14
  13
  49
  101
  170
  261
  374
  515
  685
  887
  1,122
  1,391
  1,697
  2,038
  2,415
  2,828
  3,275
  3,757
  4,272
  4,821
  5,401
  6,012
  6,654
  7,327
  8,030
  8,763
  9,527
  10,322
  11,148
  12,007
  12,900
Earnings before tax, $m
  268
  678
  1,259
  2,034
  3,041
  4,315
  5,888
  7,792
  10,049
  12,680
  15,698
  19,128
  22,941
  27,153
  31,761
  36,757
  42,133
  47,881
  53,991
  60,456
  67,269
  74,423
  81,915
  89,744
  97,910
  106,416
  115,268
  124,473
  134,041
  143,985
  154,318
Tax expense, $m
  119
  183
  340
  549
  821
  1,165
  1,590
  2,104
  2,713
  3,424
  4,238
  5,165
  6,194
  7,331
  8,575
  9,924
  11,376
  12,928
  14,578
  16,323
  18,163
  20,094
  22,117
  24,231
  26,436
  28,732
  31,122
  33,608
  36,191
  38,876
  41,666
Net income, $m
  108
  495
  919
  1,485
  2,220
  3,150
  4,299
  5,688
  7,336
  9,256
  11,460
  13,963
  16,747
  19,822
  23,185
  26,832
  30,757
  34,953
  39,414
  44,133
  49,106
  54,329
  59,798
  65,513
  71,474
  77,684
  84,146
  90,865
  97,850
  105,109
  112,652

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  638
  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
  1,662
  1,794
  2,623
  3,727
  5,157
  6,965
  9,197
  11,895
  15,095
  18,826
  23,108
  27,954
  33,369
  39,354
  45,903
  53,008
  60,657
  68,838
  77,538
  86,745
  96,449
  106,642
  117,318
  128,475
  140,114
  152,238
  164,856
  177,977
  191,616
  205,789
  220,518
Adjusted assets (=assets-cash), $m
  1,024
  1,794
  2,623
  3,727
  5,157
  6,965
  9,197
  11,895
  15,095
  18,826
  23,108
  27,954
  33,369
  39,354
  45,903
  53,008
  60,657
  68,838
  77,538
  86,745
  96,449
  106,642
  117,318
  128,475
  140,114
  152,238
  164,856
  177,977
  191,616
  205,789
  220,518
Revenue / Adjusted assets
  1.423
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
  1.225
Average production assets, $m
  85
  127
  186
  265
  366
  495
  653
  845
  1,073
  1,338
  1,642
  1,986
  2,371
  2,796
  3,261
  3,766
  4,310
  4,891
  5,509
  6,163
  6,853
  7,577
  8,335
  9,128
  9,955
  10,817
  11,713
  12,645
  13,614
  14,621
  15,668
Working capital, $m
  463
  -218
  -318
  -452
  -625
  -845
  -1,115
  -1,443
  -1,831
  -2,283
  -2,802
  -3,390
  -4,047
  -4,773
  -5,567
  -6,429
  -7,356
  -8,348
  -9,403
  -10,520
  -11,697
  -12,933
  -14,228
  -15,581
  -16,992
  -18,463
  -19,993
  -21,584
  -23,238
  -24,957
  -26,743
Total debt, $m
  216
  695
  1,441
  2,435
  3,723
  5,349
  7,358
  9,786
  12,667
  16,025
  19,878
  24,239
  29,113
  34,500
  40,394
  46,788
  53,672
  61,035
  68,865
  77,151
  85,885
  95,058
  104,667
  114,709
  125,183
  136,096
  147,451
  159,260
  171,535
  184,292
  197,548
Total liabilities, $m
  1,135
  1,614
  2,360
  3,354
  4,642
  6,268
  8,277
  10,705
  13,586
  16,944
  20,797
  25,158
  30,032
  35,419
  41,313
  47,707
  54,591
  61,954
  69,784
  78,070
  86,804
  95,977
  105,586
  115,628
  126,102
  137,015
  148,370
  160,179
  172,454
  185,211
  198,467
Total equity, $m
  527
  179
  262
  373
  516
  696
  920
  1,189
  1,510
  1,883
  2,311
  2,795
  3,337
  3,935
  4,590
  5,301
  6,066
  6,884
  7,754
  8,674
  9,645
  10,664
  11,732
  12,848
  14,011
  15,224
  16,486
  17,798
  19,162
  20,579
  22,052
Total liabilities and equity, $m
  1,662
  1,793
  2,622
  3,727
  5,158
  6,964
  9,197
  11,894
  15,096
  18,827
  23,108
  27,953
  33,369
  39,354
  45,903
  53,008
  60,657
  68,838
  77,538
  86,744
  96,449
  106,641
  117,318
  128,476
  140,113
  152,239
  164,856
  177,977
  191,616
  205,790
  220,519
Debt-to-equity ratio
  0.410
  3.880
  5.500
  6.530
  7.220
  7.680
  8.000
  8.230
  8.390
  8.510
  8.600
  8.670
  8.720
  8.770
  8.800
  8.830
  8.850
  8.870
  8.880
  8.890
  8.900
  8.910
  8.920
  8.930
  8.930
  8.940
  8.940
  8.950
  8.950
  8.960
  8.960
Adjusted equity ratio
  -0.078
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  108
  495
  919
  1,485
  2,220
  3,150
  4,299
  5,688
  7,336
  9,256
  11,460
  13,963
  16,747
  19,822
  23,185
  26,832
  30,757
  34,953
  39,414
  44,133
  49,106
  54,329
  59,798
  65,513
  71,474
  77,684
  84,146
  90,865
  97,850
  105,109
  112,652
Depreciation, amort., depletion, $m
  25
  29
  35
  43
  53
  66
  81
  101
  123
  150
  180
  199
  237
  280
  326
  377
  431
  489
  551
  616
  685
  758
  834
  913
  996
  1,082
  1,171
  1,265
  1,361
  1,462
  1,567
Funds from operations, $m
  376
  524
  954
  1,527
  2,272
  3,215
  4,380
  5,789
  7,459
  9,406
  11,640
  14,162
  16,984
  20,102
  23,511
  27,209
  31,188
  35,442
  39,965
  44,750
  49,792
  55,086
  60,632
  66,426
  72,470
  78,765
  85,317
  92,130
  99,211
  106,571
  114,219
Change in working capital, $m
  -40
  -73
  -101
  -134
  -173
  -219
  -271
  -327
  -388
  -452
  -519
  -588
  -657
  -726
  -794
  -862
  -928
  -992
  -1,055
  -1,117
  -1,177
  -1,236
  -1,295
  -1,353
  -1,412
  -1,470
  -1,530
  -1,591
  -1,654
  -1,719
  -1,786
Cash from operations, $m
  416
  597
  1,055
  1,661
  2,446
  3,434
  4,651
  6,116
  7,847
  9,859
  12,159
  14,750
  17,641
  20,827
  24,306
  28,071
  32,116
  36,434
  41,020
  45,866
  50,968
  56,323
  61,926
  67,779
  73,881
  80,236
  86,847
  93,721
  100,865
  108,290
  116,005
Maintenance CAPEX, $m
  0
  -8
  -13
  -19
  -26
  -37
  -49
  -65
  -85
  -107
  -134
  -164
  -199
  -237
  -280
  -326
  -377
  -431
  -489
  -551
  -616
  -685
  -758
  -834
  -913
  -996
  -1,082
  -1,171
  -1,265
  -1,361
  -1,462
New CAPEX, $m
  -18
  -43
  -59
  -78
  -102
  -128
  -159
  -192
  -227
  -265
  -304
  -344
  -385
  -425
  -465
  -505
  -543
  -581
  -618
  -654
  -689
  -724
  -759
  -793
  -827
  -861
  -896
  -932
  -969
  -1,007
  -1,046
Cash from investing activities, $m
  -49
  -51
  -72
  -97
  -128
  -165
  -208
  -257
  -312
  -372
  -438
  -508
  -584
  -662
  -745
  -831
  -920
  -1,012
  -1,107
  -1,205
  -1,305
  -1,409
  -1,517
  -1,627
  -1,740
  -1,857
  -1,978
  -2,103
  -2,234
  -2,368
  -2,508
Free cash flow, $m
  367
  546
  983
  1,564
  2,318
  3,269
  4,443
  5,859
  7,536
  9,486
  11,721
  14,241
  17,058
  20,165
  23,561
  27,240
  31,195
  35,422
  39,912
  44,661
  49,663
  54,913
  60,410
  66,153
  72,142
  78,379
  84,869
  91,617
  98,632
  105,921
  113,497
Issuance/(repayment) of debt, $m
  32
  510
  746
  994
  1,288
  1,627
  2,009
  2,428
  2,880
  3,358
  3,854
  4,361
  4,874
  5,386
  5,894
  6,394
  6,884
  7,363
  7,830
  8,286
  8,734
  9,174
  9,609
  10,041
  10,475
  10,912
  11,356
  11,809
  12,275
  12,756
  13,256
Issuance/(repurchase) of shares, $m
  -174
  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  
  -180
  510
  746
  994
  1,288
  1,627
  2,009
  2,428
  2,880
  3,358
  3,854
  4,361
  4,874
  5,386
  5,894
  6,394
  6,884
  7,363
  7,830
  8,286
  8,734
  9,174
  9,609
  10,041
  10,475
  10,912
  11,356
  11,809
  12,275
  12,756
  13,256
Total cash flow (excl. dividends), $m
  162
  1,056
  1,729
  2,558
  3,605
  4,896
  6,451
  8,287
  10,416
  12,844
  15,575
  18,602
  21,931
  25,552
  29,455
  33,634
  38,080
  42,785
  47,742
  52,947
  58,396
  64,087
  70,019
  76,194
  82,616
  89,291
  96,225
  103,426
  110,907
  118,678
  126,753
Retained Cash Flow (-), $m
  -22
  -94
  -83
  -110
  -143
  -181
  -223
  -270
  -320
  -373
  -428
  -485
  -542
  -598
  -655
  -710
  -765
  -818
  -870
  -921
  -970
  -1,019
  -1,068
  -1,116
  -1,164
  -1,212
  -1,262
  -1,312
  -1,364
  -1,417
  -1,473
Prev. year cash balance distribution, $m
 
  442
  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
 
  1,403
  1,646
  2,448
  3,462
  4,715
  6,228
  8,017
  10,096
  12,471
  15,147
  18,118
  21,390
  24,953
  28,800
  32,923
  37,315
  41,966
  46,872
  52,027
  57,426
  63,067
  68,951
  75,079
  81,453
  88,078
  94,963
  102,114
  109,543
  117,260
  125,280
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
 
  1,346
  1,507
  2,130
  2,851
  3,655
  4,520
  5,416
  6,310
  7,164
  7,941
  8,604
  9,128
  9,488
  9,669
  9,666
  9,482
  9,131
  8,632
  8,011
  7,297
  6,523
  5,721
  4,921
  4,149
  3,426
  2,771
  2,192
  1,695
  1,280
  943
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

Evercore Partners Inc. operates as an independent investment banking advisory firm in the United States, Europe, Latin America, and internationally. It operates through two segments, Investment Banking and Investment Management. The Investment Banking segment offers advisory services on mergers, acquisitions, divestitures, leveraged buyouts, and other strategic corporate transactions; capital markets advice relating to debt and equity securities; and services related to securities underwriting, private fund placement services, and commissions for agency-based equity trading services and equity research. This segment also raises funds for financial sponsors; and provides restructuring advice to companies in financial transition, as well as to creditors, shareholders, and potential acquirers. The Investment Management segment manages financial assets for institutional investors; provides independent fiduciary services to corporate employee benefit plans, as well as wealth management services for high net-worth individuals; and manages private equity funds. The company was founded in 1996 and is headquartered in New York, New York.

FINANCIAL RATIOS  of  Evercore Partners Cl A (EVR)

Valuation Ratios
P/E Ratio 27.8
Price to Sales 2.1
Price to Book 5.7
Price to Tangible Book
Price to Cash Flow 7.2
Price to Free Cash Flow 7.5
Growth Rates
Sales Growth Rate 17.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 12.5%
Cap. Spend. - 3 Yr. Gr. Rate 35.1%
Financial Strength
Quick Ratio 21
Current Ratio 0.1
LT Debt to Equity 35.1%
Total Debt to Equity 41%
Interest Coverage 20
Management Effectiveness
Return On Assets 7.4%
Ret/ On Assets - 3 Yr. Avg. 6%
Return On Total Capital 15.1%
Ret/ On T. Cap. - 3 Yr. Avg. 10.9%
Return On Equity 20.9%
Return On Equity - 3 Yr. Avg. 15.2%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 98.8%
Gross Margin - 3 Yr. Avg. 98.6%
EBITDA Margin 21.1%
EBITDA Margin - 3 Yr. Avg. 19.4%
Operating Margin 17.9%
Oper. Margin - 3 Yr. Avg. 15.5%
Pre-Tax Margin 18.4%
Pre-Tax Margin - 3 Yr. Avg. 16.1%
Net Profit Margin 7.4%
Net Profit Margin - 3 Yr. Avg. 6.7%
Effective Tax Rate 44.4%
Eff/ Tax Rate - 3 Yr. Avg. 46.9%
Payout Ratio 48.1%

EVR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EVR stock intrinsic value calculation we used $1457 million for the last fiscal year's total revenue generated by Evercore Partners Cl A. The default revenue input number comes from 2016 income statement of Evercore Partners Cl A. 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 EVR stock valuation model: a) initial revenue growth rate of 50.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for EVR is calculated based on our internal credit rating of Evercore Partners Cl A, 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 Evercore Partners Cl A.
    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 EVR stock the variable cost ratio is equal to 38.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $648 million in the base year in the intrinsic value calculation for EVR 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 7% for Evercore Partners Cl A.

Corporate tax rate of 27% is the nominal tax rate for Evercore Partners Cl A. 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 EVR 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 EVR are equal to 5.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Evercore Partners Cl A 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 EVR is equal to -9.9%. 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 - $527 million for Evercore Partners Cl A - 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 43.015 million for Evercore Partners Cl A 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 Evercore Partners Cl A at the current share price and the inputted number of shares is $3.3 billion.

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COMPANY NEWS

▶ 6 Undervalued Stocks Based on the Peter Lynch Value   [Aug-03-17 06:26PM  GuruFocus.com]
▶ Evercore Partners posts 2Q profit   [01:39AM  Associated Press]
▶ Josh Schimmer Joins Evercore ISI Research Team   [Jul-25-17 08:00AM  PR Newswire]
▶ Evercore's Haines Says GOP Making Progress on Health Bill   [Jul-14-17 02:02PM  Bloomberg Video]
▶ [$$] EvercoreHiresDeutscheBank's PaulStefanick   [10:06AM  The Wall Street Journal]
▶ [$$] Overflowing Evercore Takes New Space in London's Mayfair Neighborhood   [Jun-27-17 11:16AM  The Wall Street Journal]
▶ Evercores Hyman Sees 3.5% U.S. Jobless Rate   [Jun-23-17 07:39AM  Bloomberg Video]
▶ Wilkinson: Why Republicans Will Pass Trumpcare   [07:07AM  Bloomberg Video]
▶ Evercore Partners posts 1Q profit   [06:28AM  Associated Press]
▶ Top Ranked Growth Stocks to Buy for April 12th   [Apr-12-17 10:58AM  Zacks]
▶ [$$] Barclays CEO Is Probed Over Bid to Unmask Whistleblower   [Apr-11-17 12:19AM  The Wall Street Journal]
▶ [$$] Barclays CEO Probed Over Whistleblower   [Apr-10-17 08:16PM  The Wall Street Journal]
▶ Goldman Sachs names new heads of financial restructuring   [Mar-28-17 05:56PM  Investopedia]
Stock chart of EVR Financial statements of EVR
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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