Intrinsic value of F.N.B. - FNB

Previous Close

$13.22

  Intrinsic Value

$23.74

stock screener

  Rating & Target

str. buy

+80%

Previous close

$13.22

 
Intrinsic value

$23.74

 
Up/down potential

+80%

 
Rating

str. buy

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

We calculate the intrinsic value of FNB 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -100.00
  37.00
  33.80
  30.92
  28.33
  26.00
  23.90
  22.01
  20.31
  18.77
  17.40
  16.16
  15.04
  14.04
  13.13
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
Revenue, $m
  0
  1,422
  1,903
  2,491
  3,197
  4,028
  4,990
  6,088
  7,325
  8,700
  10,213
  11,863
  13,648
  15,564
  17,608
  19,777
  22,069
  24,481
  27,012
  29,660
  32,425
  35,308
  38,309
  41,432
  44,679
  48,053
  51,560
  55,204
  58,991
  62,929
  67,023
Variable operating expenses, $m
 
  865
  1,157
  1,515
  1,944
  2,449
  3,034
  3,702
  4,453
  5,289
  6,210
  7,213
  8,298
  9,463
  10,706
  12,025
  13,418
  14,885
  16,423
  18,033
  19,714
  21,467
  23,292
  25,191
  27,165
  29,216
  31,348
  33,564
  35,867
  38,261
  40,750
Fixed operating expenses, $m
 
  52
  53
  54
  56
  57
  58
  59
  61
  62
  63
  65
  66
  68
  69
  71
  72
  74
  75
  77
  79
  81
  82
  84
  86
  88
  90
  92
  94
  96
  98
Total operating expenses, $m
  0
  917
  1,210
  1,569
  2,000
  2,506
  3,092
  3,761
  4,514
  5,351
  6,273
  7,278
  8,364
  9,531
  10,775
  12,096
  13,490
  14,959
  16,498
  18,110
  19,793
  21,548
  23,374
  25,275
  27,251
  29,304
  31,438
  33,656
  35,961
  38,357
  40,848
Operating income, $m
  0
  505
  693
  922
  1,197
  1,522
  1,898
  2,327
  2,811
  3,348
  3,940
  4,586
  5,284
  6,033
  6,833
  7,682
  8,579
  9,523
  10,513
  11,550
  12,632
  13,760
  14,935
  16,157
  17,428
  18,749
  20,122
  21,548
  23,031
  24,572
  26,175
EBITDA, $m
  61
  4,154
  5,575
  7,314
  9,401
  11,857
  14,703
  17,950
  21,606
  25,673
  30,148
  35,028
  40,306
  45,972
  52,017
  58,433
  65,211
  72,344
  79,828
  87,660
  95,837
  104,363
  113,241
  122,476
  132,078
  142,058
  152,429
  163,206
  174,408
  186,053
  198,164
Interest expense (income), $m
  0
  1,458
  1,747
  2,255
  2,876
  3,622
  4,500
  5,516
  6,677
  7,983
  9,436
  11,035
  12,778
  14,664
  16,688
  18,847
  21,139
  23,561
  26,109
  28,783
  31,581
  34,502
  37,548
  40,719
  44,018
  47,448
  51,013
  54,718
  58,568
  62,570
  66,730
Earnings before tax, $m
  246
  -953
  -1,054
  -1,332
  -1,679
  -2,100
  -2,602
  -3,189
  -3,866
  -4,635
  -5,495
  -6,449
  -7,494
  -8,630
  -9,855
  -11,165
  -12,561
  -14,038
  -15,596
  -17,233
  -18,949
  -20,742
  -22,613
  -24,562
  -26,590
  -28,699
  -30,892
  -33,170
  -35,537
  -37,997
  -40,554
Tax expense, $m
  75
  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
  171
  -953
  -1,054
  -1,332
  -1,679
  -2,100
  -2,602
  -3,189
  -3,866
  -4,635
  -5,495
  -6,449
  -7,494
  -8,630
  -9,855
  -11,165
  -12,561
  -14,038
  -15,596
  -17,233
  -18,949
  -20,742
  -22,613
  -24,562
  -26,590
  -28,699
  -30,892
  -33,170
  -35,537
  -37,997
  -40,554

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
  0
Total assets, $m
  21,845
  30,914
  41,363
  54,153
  69,493
  87,558
  108,481
  132,353
  159,229
  189,124
  222,026
  257,901
  296,694
  338,343
  382,781
  429,942
  479,766
  532,202
  587,215
  644,779
  704,890
  767,558
  832,812
  900,696
  971,276
  1,044,632
  1,120,862
  1,200,079
  1,282,414
  1,368,011
  1,457,031
Adjusted assets (=assets-cash), $m
  21,845
  30,914
  41,363
  54,153
  69,493
  87,558
  108,481
  132,353
  159,229
  189,124
  222,026
  257,901
  296,694
  338,343
  382,781
  429,942
  479,766
  532,202
  587,215
  644,779
  704,890
  767,558
  832,812
  900,696
  971,276
  1,044,632
  1,120,862
  1,200,079
  1,282,414
  1,368,011
  1,457,031
Revenue / Adjusted assets
  0.000
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
Average production assets, $m
  258
  36,491
  48,826
  63,922
  82,030
  103,354
  128,052
  156,231
  187,954
  223,243
  262,081
  304,427
  350,219
  399,382
  451,837
  507,506
  566,318
  628,215
  693,152
  761,101
  832,057
  906,030
  983,056
  1,063,187
  1,146,500
  1,233,090
  1,323,072
  1,416,580
  1,513,769
  1,614,809
  1,719,888
Working capital, $m
  0
  -33,800
  -45,224
  -59,207
  -75,979
  -95,730
  -118,605
  -144,706
  -174,089
  -206,774
  -242,748
  -281,970
  -324,384
  -369,920
  -418,505
  -470,067
  -524,541
  -581,872
  -642,018
  -704,955
  -770,676
  -839,193
  -910,536
  -984,756
  -1,061,923
  -1,142,125
  -1,225,469
  -1,312,080
  -1,402,099
  -1,495,685
  -1,593,013
Total debt, $m
  1,712
  32,346
  41,750
  53,261
  67,067
  83,326
  102,156
  123,642
  147,829
  174,735
  204,347
  236,634
  271,548
  309,032
  349,026
  391,471
  436,312
  483,506
  533,016
  584,825
  638,925
  695,326
  754,054
  815,150
  878,672
  944,692
  1,013,299
  1,084,594
  1,158,696
  1,235,734
  1,315,851
Total liabilities, $m
  19,273
  27,823
  37,227
  48,738
  62,544
  78,803
  97,633
  119,118
  143,306
  170,211
  199,824
  232,111
  267,025
  304,509
  344,503
  386,948
  431,789
  478,982
  528,493
  580,301
  634,401
  690,802
  749,530
  810,627
  874,148
  940,169
  1,008,775
  1,080,071
  1,154,173
  1,231,210
  1,311,328
Total equity, $m
  2,572
  3,091
  4,136
  5,415
  6,949
  8,756
  10,848
  13,235
  15,923
  18,912
  22,203
  25,790
  29,669
  33,834
  38,278
  42,994
  47,977
  53,220
  58,721
  64,478
  70,489
  76,756
  83,281
  90,070
  97,128
  104,463
  112,086
  120,008
  128,241
  136,801
  145,703
Total liabilities and equity, $m
  21,845
  30,914
  41,363
  54,153
  69,493
  87,559
  108,481
  132,353
  159,229
  189,123
  222,027
  257,901
  296,694
  338,343
  382,781
  429,942
  479,766
  532,202
  587,214
  644,779
  704,890
  767,558
  832,811
  900,697
  971,276
  1,044,632
  1,120,861
  1,200,079
  1,282,414
  1,368,011
  1,457,031
Debt-to-equity ratio
  0.666
  10.460
  10.090
  9.840
  9.650
  9.520
  9.420
  9.340
  9.280
  9.240
  9.200
  9.180
  9.150
  9.130
  9.120
  9.110
  9.090
  9.080
  9.080
  9.070
  9.060
  9.060
  9.050
  9.050
  9.050
  9.040
  9.040
  9.040
  9.040
  9.030
  9.030
Adjusted equity ratio
  0.118
  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
  171
  -953
  -1,054
  -1,332
  -1,679
  -2,100
  -2,602
  -3,189
  -3,866
  -4,635
  -5,495
  -6,449
  -7,494
  -8,630
  -9,855
  -11,165
  -12,561
  -14,038
  -15,596
  -17,233
  -18,949
  -20,742
  -22,613
  -24,562
  -26,590
  -28,699
  -30,892
  -33,170
  -35,537
  -37,997
  -40,554
Depreciation, amort., depletion, $m
  61
  3,649
  4,883
  6,392
  8,203
  10,335
  12,805
  15,623
  18,795
  22,324
  26,208
  30,443
  35,022
  39,938
  45,184
  50,751
  56,632
  62,821
  69,315
  76,110
  83,206
  90,603
  98,306
  106,319
  114,650
  123,309
  132,307
  141,658
  151,377
  161,481
  171,989
Funds from operations, $m
  341
  2,696
  3,828
  5,060
  6,524
  8,236
  10,204
  12,434
  14,929
  17,690
  20,713
  23,994
  27,527
  31,308
  35,329
  39,585
  44,071
  48,783
  53,719
  58,877
  64,257
  69,861
  75,693
  81,757
  88,060
  94,610
  101,415
  108,488
  115,839
  123,483
  131,434
Change in working capital, $m
  48
  -9,128
  -11,424
  -13,983
  -16,772
  -19,751
  -22,875
  -26,100
  -29,383
  -32,685
  -35,973
  -39,222
  -42,414
  -45,536
  -48,585
  -51,562
  -54,474
  -57,331
  -60,146
  -62,937
  -65,721
  -68,517
  -71,343
  -74,220
  -77,167
  -80,202
  -83,344
  -86,611
  -90,019
  -93,586
  -97,328
Cash from operations, $m
  293
  11,824
  15,253
  19,043
  23,297
  27,987
  33,079
  38,534
  44,313
  50,375
  56,686
  63,216
  69,941
  76,844
  83,914
  91,147
  98,545
  106,114
  113,865
  121,814
  129,978
  138,378
  147,036
  155,977
  165,227
  174,812
  184,759
  195,099
  205,859
  217,069
  228,762
Maintenance CAPEX, $m
  0
  -2,663
  -3,649
  -4,883
  -6,392
  -8,203
  -10,335
  -12,805
  -15,623
  -18,795
  -22,324
  -26,208
  -30,443
  -35,022
  -39,938
  -45,184
  -50,751
  -56,632
  -62,821
  -69,315
  -76,110
  -83,206
  -90,603
  -98,306
  -106,319
  -114,650
  -123,309
  -132,307
  -141,658
  -151,377
  -161,481
New CAPEX, $m
  -59
  -9,860
  -12,334
  -15,097
  -18,108
  -21,324
  -24,697
  -28,179
  -31,723
  -35,288
  -38,839
  -42,346
  -45,792
  -49,163
  -52,455
  -55,669
  -58,812
  -61,897
  -64,937
  -67,950
  -70,955
  -73,974
  -77,025
  -80,131
  -83,313
  -86,590
  -89,982
  -93,509
  -97,189
  -101,040
  -105,080
Cash from investing activities, $m
  -1,260
  -12,523
  -15,983
  -19,980
  -24,500
  -29,527
  -35,032
  -40,984
  -47,346
  -54,083
  -61,163
  -68,554
  -76,235
  -84,185
  -92,393
  -100,853
  -109,563
  -118,529
  -127,758
  -137,265
  -147,065
  -157,180
  -167,628
  -178,437
  -189,632
  -201,240
  -213,291
  -225,816
  -238,847
  -252,417
  -266,561
Free cash flow, $m
  -967
  -699
  -731
  -936
  -1,204
  -1,540
  -1,954
  -2,450
  -3,034
  -3,709
  -4,477
  -5,338
  -6,293
  -7,341
  -8,479
  -9,705
  -11,018
  -12,414
  -13,893
  -15,451
  -17,088
  -18,802
  -20,592
  -22,460
  -24,405
  -26,428
  -28,532
  -30,717
  -32,988
  -35,347
  -37,798
Issuance/(repayment) of debt, $m
  125
  5,340
  9,404
  11,511
  13,806
  16,258
  18,830
  21,485
  24,188
  26,906
  29,612
  32,287
  34,914
  37,484
  39,994
  42,445
  44,841
  47,193
  49,511
  51,808
  54,100
  56,401
  58,728
  61,096
  63,522
  66,020
  68,607
  71,296
  74,101
  77,038
  80,118
Issuance/(repurchase) of shares, $m
  10
  4,127
  2,099
  2,611
  3,213
  3,906
  4,694
  5,576
  6,554
  7,624
  8,786
  10,037
  11,374
  12,795
  14,298
  15,881
  17,543
  19,282
  21,097
  22,990
  24,960
  27,009
  29,138
  31,350
  33,648
  36,035
  38,515
  41,092
  43,771
  46,557
  49,456
Cash from financing (excl. dividends), $m  
  951
  9,467
  11,503
  14,122
  17,019
  20,164
  23,524
  27,061
  30,742
  34,530
  38,398
  42,324
  46,288
  50,279
  54,292
  58,326
  62,384
  66,475
  70,608
  74,798
  79,060
  83,410
  87,866
  92,446
  97,170
  102,055
  107,122
  112,388
  117,872
  123,595
  129,574
Total cash flow (excl. dividends), $m
  -16
  8,769
  10,773
  13,186
  15,815
  18,624
  21,570
  24,612
  27,707
  30,821
  33,921
  36,985
  39,994
  42,939
  45,814
  48,621
  51,367
  54,060
  56,715
  59,347
  61,972
  64,608
  67,274
  69,987
  72,765
  75,627
  78,590
  81,670
  84,884
  88,248
  91,776
Retained Cash Flow (-), $m
  -476
  -4,127
  -2,099
  -2,611
  -3,213
  -3,906
  -4,694
  -5,576
  -6,554
  -7,624
  -8,786
  -10,037
  -11,374
  -12,795
  -14,298
  -15,881
  -17,543
  -19,282
  -21,097
  -22,990
  -24,960
  -27,009
  -29,138
  -31,350
  -33,648
  -36,035
  -38,515
  -41,092
  -43,771
  -46,557
  -49,456
Prev. year cash balance distribution, $m
 
  83
  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
 
  -1
  -1
  -2
  -2
  -3
  -4
  -5
  -6
  -7
  -9
  -10
  -12
  -14
  -16
  -18
  -20
  -22
  -24
  -27
  -30
  -32
  -35
  -38
  -41
  -45
  -48
  -52
  -55
  -59
  -63
Cash available for distribution, $m
 
  4,724
  8,674
  10,574
  12,603
  14,718
  16,877
  19,035
  21,154
  23,197
  25,136
  26,949
  28,621
  30,144
  31,515
  32,740
  33,824
  34,779
  35,618
  36,357
  37,012
  37,600
  38,136
  38,636
  39,117
  39,592
  40,075
  40,578
  41,113
  41,691
  42,320
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
 
  4,207
  6,803
  7,220
  7,400
  7,333
  7,036
  6,542
  5,899
  5,161
  4,384
  3,615
  2,895
  2,251
  1,699
  1,245
  885
  610
  408
  264
  165
  100
  58
  33
  18
  9
  5
  2
  1
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  29.8
  18.3
  11.5
  7.3
  4.8
  3.2
  2.1
  1.4
  1.0
  0.7
  0.5
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

F.N.B. Corporation is a financial holding company. The Company operates through four segments: Community Banking, Wealth Management, Insurance and Consumer Finance. Its Community Banking segment consists of First National Bank of Pennsylvania (FNBPA), which offers services, including commercial and individual demand, savings and time deposit accounts and commercial, mortgage and individual installment loans. It operates its Community Banking business through a network of over 290 branches in Pennsylvania, Ohio, Maryland and West Virginia. Its Wealth Management segment delivers wealth management services to individuals, corporations and retirement funds, as well as existing customers of Community Banking. The Company's Insurance segment operates principally through First National Insurance Agency, LLC (FNIA), which is a subsidiary of the Corporation. Its Consumer Finance segment operates through its subsidiary, Regency Finance Company. It also operates other non-banking subsidiaries.

FINANCIAL RATIOS  of  F.N.B. (FNB)

Valuation Ratios
P/E Ratio 16.3
Price to Sales 0
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 9.5
Price to Free Cash Flow 11.9
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 490%
Cap. Spend. - 3 Yr. Gr. Rate 31.5%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 61.6%
Total Debt to Equity 66.6%
Interest Coverage 0
Management Effectiveness
Return On Assets 0.9%
Ret/ On Assets - 3 Yr. Avg. 0.9%
Return On Total Capital 4.5%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity 7.3%
Return On Equity - 3 Yr. Avg. 7.6%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 30.5%
Eff/ Tax Rate - 3 Yr. Avg. 30.5%
Payout Ratio 59.6%

FNB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FNB stock intrinsic value calculation we used $1038 million for the last fiscal year's total revenue generated by F.N.B.. The default revenue input number comes from 2016 income statement of F.N.B.. 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 FNB stock valuation model: a) initial revenue growth rate of 37% 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 FNB is calculated based on our internal credit rating of F.N.B., 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 F.N.B..
    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 FNB stock the variable cost ratio is equal to 60.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $51 million in the base year in the intrinsic value calculation for FNB 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 F.N.B..

Corporate tax rate of 27% is the nominal tax rate for F.N.B.. 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 FNB stock is equal to -0.1%.

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 FNB are equal to 2566.1%.

Life of production assets of 10 years is the average useful life of capital assets used in F.N.B. 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 FNB is equal to -2376.8%. 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 - $0 million for F.N.B. - 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 323 million for F.N.B. 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 F.N.B. at the current share price and the inputted number of shares is $4.3 billion.

RELATED COMPANIES Price Int.Val. Rating
HBAN Huntington Ban 15.93 11.72  sell
FCF First Commonwe 17.01 9.28  sell
CUBI Customers Banc 24.94 5.25  str.sell
BMTC Bryn Mawr Bank 48.90 2.91  str.sell
UVSP Univest of Pen 27.80 5.83  str.sell

COMPANY NEWS

▶ Veteran Raleigh bankers to start new bank in capital city   [Jul-26-18 03:10PM  American City Business Journals]
▶ F.N.B. doing digital push for deposits   [Jul-24-18 01:07PM  American City Business Journals]
▶ F.N.B.: 2Q Earnings Snapshot   [06:16AM  Associated Press]
▶ A Triad bank startup is conducting its IPO, plans to raise at least $27M   [Jun-29-18 07:30AM  American City Business Journals]
▶ F.N.B. CEO talks expansion in Charleston, S.C.   [Jun-25-18 04:16PM  American City Business Journals]
▶ Pittsburgh bank honored in Washington for export service   [Jun-05-18 07:44AM  American City Business Journals]
▶ Here's why loans rose in 1Q at Pittsburgh banks   [May-02-18 01:57PM  American City Business Journals]
▶ FNB CEO to analysts: Charlotte 'a better market' for us than Raleigh   [Apr-26-18 02:39PM  American City Business Journals]
▶ Constrained by space in Pittsburgh, F.N.B. hiring in other markets   [Apr-24-18 02:56PM  American City Business Journals]
▶ F.N.B.: 1Q Earnings Snapshot   [06:06AM  Associated Press]
▶ Dominion preps for new downtown Raleigh tower, releases timeline   [Apr-17-18 02:21PM  American City Business Journals]
▶ Top Ranked Income Stocks to Buy for April 10th   [Apr-10-18 08:11AM  Zacks]
▶ First peek at newest tower coming to uptown Charlotte (RENDERING)   [Mar-14-18 11:45AM  American City Business Journals]
▶ F.N.B. Corp. to anchor new 31-story tower in uptown   [Mar-07-18 03:10PM  American City Business Journals]
▶ F.N.B. anchoring new regional headquarters building in Charlotte   [08:30AM  American City Business Journals]
▶ F.N.B. meets 4Q profit forecasts   [Jan-23-18 06:25AM  Associated Press]
▶ F.N.B. rewarding employees due to tax reform   [Jan-19-18 11:35AM  American City Business Journals]
▶ F.N.B. Corporation Names Two New Directors   [Dec-21-17 09:56AM  PR Newswire]
▶ F.N.B. meets 3Q profit forecasts   [07:02AM  Associated Press]
▶ Bank of America gains market share as Baltimore's biggest banks hold steady   [Oct-03-17 02:27PM  American City Business Journals]
Financial statements of FNB
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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