Intrinsic value of Hanesbrands - HBI

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$22.60

  Intrinsic Value

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  Value-price divergence*

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

We calculate the intrinsic value of HBI 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 8.3

 

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, %
  5.16
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
  5.01
  5.01
  5.01
  5.01
Revenue, $m
  6,028
  6,341
  6,670
  7,014
  7,375
  7,754
  8,150
  8,567
  9,003
  9,461
  9,941
  10,445
  10,974
  11,529
  12,112
  12,723
  13,364
  14,037
  14,744
  15,485
  16,264
  17,081
  17,939
  18,839
  19,784
  20,777
  21,819
  22,912
  24,061
  25,266
  26,532
Variable operating expenses, $m
 
  2,499
  2,623
  2,753
  2,889
  3,031
  3,181
  3,338
  3,502
  3,675
  3,856
  3,936
  4,135
  4,344
  4,563
  4,793
  5,035
  5,289
  5,555
  5,834
  6,128
  6,436
  6,759
  7,098
  7,454
  7,828
  8,221
  8,633
  9,065
  9,520
  9,996
Fixed operating expenses, $m
 
  3,016
  3,091
  3,168
  3,247
  3,329
  3,412
  3,497
  3,585
  3,674
  3,766
  3,860
  3,957
  4,056
  4,157
  4,261
  4,367
  4,477
  4,589
  4,703
  4,821
  4,941
  5,065
  5,191
  5,321
  5,454
  5,591
  5,730
  5,874
  6,021
  6,171
Total operating expenses, $m
  5,253
  5,515
  5,714
  5,921
  6,136
  6,360
  6,593
  6,835
  7,087
  7,349
  7,622
  7,796
  8,092
  8,400
  8,720
  9,054
  9,402
  9,766
  10,144
  10,537
  10,949
  11,377
  11,824
  12,289
  12,775
  13,282
  13,812
  14,363
  14,939
  15,541
  16,167
Operating income, $m
  776
  827
  956
  1,093
  1,239
  1,394
  1,558
  1,732
  1,917
  2,112
  2,320
  2,650
  2,883
  3,130
  3,391
  3,668
  3,961
  4,272
  4,600
  4,948
  5,315
  5,704
  6,115
  6,550
  7,009
  7,494
  8,007
  8,549
  9,122
  9,726
  10,365
EBITDA, $m
  879
  999
  1,132
  1,273
  1,422
  1,581
  1,749
  1,927
  2,116
  2,316
  2,528
  2,753
  2,992
  3,244
  3,511
  3,794
  4,094
  4,411
  4,746
  5,101
  5,476
  5,873
  6,293
  6,736
  7,205
  7,700
  8,224
  8,776
  9,360
  9,977
  10,627
Interest expense (income), $m
  1
  123
  133
  143
  154
  165
  177
  190
  203
  217
  231
  247
  262
  279
  297
  315
  335
  355
  376
  398
  422
  447
  472
  500
  528
  558
  589
  622
  657
  693
  731
Earnings before tax, $m
  571
  704
  823
  950
  1,085
  1,228
  1,381
  1,542
  1,714
  1,896
  2,089
  2,403
  2,620
  2,851
  3,095
  3,353
  3,627
  3,917
  4,224
  4,549
  4,893
  5,258
  5,643
  6,050
  6,481
  6,937
  7,418
  7,927
  8,465
  9,033
  9,633
Tax expense, $m
  34
  190
  222
  257
  293
  332
  373
  416
  463
  512
  564
  649
  708
  770
  836
  905
  979
  1,058
  1,141
  1,228
  1,321
  1,420
  1,524
  1,634
  1,750
  1,873
  2,003
  2,140
  2,286
  2,439
  2,601
Net income, $m
  539
  514
  601
  694
  792
  897
  1,008
  1,126
  1,251
  1,384
  1,525
  1,754
  1,913
  2,081
  2,259
  2,448
  2,648
  2,859
  3,084
  3,321
  3,572
  3,838
  4,119
  4,417
  4,731
  5,064
  5,415
  5,787
  6,179
  6,594
  7,032

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  465
  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
  6,930
  6,775
  7,126
  7,494
  7,879
  8,284
  8,708
  9,152
  9,619
  10,108
  10,621
  11,160
  11,725
  12,318
  12,940
  13,593
  14,278
  14,997
  15,752
  16,544
  17,376
  18,249
  19,165
  20,127
  21,137
  22,198
  23,311
  24,479
  25,706
  26,994
  28,346
Adjusted assets (=assets-cash), $m
  6,465
  6,775
  7,126
  7,494
  7,879
  8,284
  8,708
  9,152
  9,619
  10,108
  10,621
  11,160
  11,725
  12,318
  12,940
  13,593
  14,278
  14,997
  15,752
  16,544
  17,376
  18,249
  19,165
  20,127
  21,137
  22,198
  23,311
  24,479
  25,706
  26,994
  28,346
Revenue / Adjusted assets
  0.932
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
  0.936
Average production assets, $m
  993
  1,408
  1,481
  1,557
  1,637
  1,721
  1,809
  1,902
  1,999
  2,100
  2,207
  2,319
  2,436
  2,559
  2,689
  2,824
  2,967
  3,116
  3,273
  3,438
  3,611
  3,792
  3,982
  4,182
  4,392
  4,612
  4,844
  5,087
  5,341
  5,609
  5,890
Working capital, $m
  1,695
  1,541
  1,621
  1,704
  1,792
  1,884
  1,981
  2,082
  2,188
  2,299
  2,416
  2,538
  2,667
  2,802
  2,943
  3,092
  3,247
  3,411
  3,583
  3,763
  3,952
  4,151
  4,359
  4,578
  4,808
  5,049
  5,302
  5,568
  5,847
  6,140
  6,447
Total debt, $m
  3,742
  3,790
  4,087
  4,398
  4,724
  5,066
  5,425
  5,801
  6,195
  6,609
  7,044
  7,499
  7,977
  8,479
  9,005
  9,557
  10,137
  10,745
  11,384
  12,054
  12,758
  13,497
  14,272
  15,086
  15,940
  16,837
  17,779
  18,767
  19,805
  20,895
  22,039
Total liabilities, $m
  5,707
  5,732
  6,029
  6,340
  6,666
  7,008
  7,367
  7,743
  8,137
  8,551
  8,986
  9,441
  9,919
  10,421
  10,947
  11,499
  12,079
  12,687
  13,326
  13,996
  14,700
  15,439
  16,214
  17,028
  17,882
  18,779
  19,721
  20,709
  21,747
  22,837
  23,981
Total equity, $m
  1,224
  1,043
  1,097
  1,154
  1,213
  1,276
  1,341
  1,409
  1,481
  1,557
  1,636
  1,719
  1,806
  1,897
  1,993
  2,093
  2,199
  2,310
  2,426
  2,548
  2,676
  2,810
  2,951
  3,100
  3,255
  3,418
  3,590
  3,770
  3,959
  4,157
  4,365
Total liabilities and equity, $m
  6,931
  6,775
  7,126
  7,494
  7,879
  8,284
  8,708
  9,152
  9,618
  10,108
  10,622
  11,160
  11,725
  12,318
  12,940
  13,592
  14,278
  14,997
  15,752
  16,544
  17,376
  18,249
  19,165
  20,128
  21,137
  22,197
  23,311
  24,479
  25,706
  26,994
  28,346
Debt-to-equity ratio
  3.057
  3.630
  3.720
  3.810
  3.890
  3.970
  4.050
  4.120
  4.180
  4.250
  4.310
  4.360
  4.420
  4.470
  4.520
  4.570
  4.610
  4.650
  4.690
  4.730
  4.770
  4.800
  4.840
  4.870
  4.900
  4.930
  4.950
  4.980
  5.000
  5.030
  5.050
Adjusted equity ratio
  0.126
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  539
  514
  601
  694
  792
  897
  1,008
  1,126
  1,251
  1,384
  1,525
  1,754
  1,913
  2,081
  2,259
  2,448
  2,648
  2,859
  3,084
  3,321
  3,572
  3,838
  4,119
  4,417
  4,731
  5,064
  5,415
  5,787
  6,179
  6,594
  7,032
Depreciation, amort., depletion, $m
  103
  173
  176
  179
  183
  187
  191
  195
  199
  204
  208
  104
  109
  114
  120
  126
  132
  139
  146
  153
  161
  169
  178
  187
  196
  206
  216
  227
  238
  250
  263
Funds from operations, $m
  502
  687
  777
  873
  975
  1,084
  1,199
  1,321
  1,450
  1,587
  1,733
  1,858
  2,022
  2,195
  2,379
  2,574
  2,780
  2,999
  3,230
  3,474
  3,733
  4,007
  4,297
  4,603
  4,927
  5,270
  5,631
  6,014
  6,418
  6,845
  7,295
Change in working capital, $m
  -104
  76
  80
  84
  88
  92
  96
  101
  106
  111
  117
  122
  129
  135
  142
  149
  156
  164
  172
  180
  189
  199
  208
  219
  230
  241
  253
  266
  279
  293
  308
Cash from operations, $m
  606
  1,249
  697
  790
  887
  992
  1,102
  1,219
  1,344
  1,476
  1,616
  1,735
  1,893
  2,060
  2,238
  2,425
  2,624
  2,835
  3,058
  3,294
  3,544
  3,809
  4,089
  4,385
  4,698
  5,028
  5,378
  5,748
  6,139
  6,552
  6,988
Maintenance CAPEX, $m
  0
  -60
  -63
  -66
  -70
  -73
  -77
  -81
  -85
  -89
  -94
  -99
  -104
  -109
  -114
  -120
  -126
  -132
  -139
  -146
  -153
  -161
  -169
  -178
  -187
  -196
  -206
  -216
  -227
  -238
  -250
New CAPEX, $m
  -83
  -68
  -73
  -76
  -80
  -84
  -88
  -92
  -97
  -102
  -107
  -112
  -117
  -123
  -129
  -136
  -142
  -149
  -157
  -165
  -173
  -181
  -190
  -200
  -210
  -220
  -231
  -243
  -255
  -268
  -281
Cash from investing activities, $m
  -967
  -128
  -136
  -142
  -150
  -157
  -165
  -173
  -182
  -191
  -201
  -211
  -221
  -232
  -243
  -256
  -268
  -281
  -296
  -311
  -326
  -342
  -359
  -378
  -397
  -416
  -437
  -459
  -482
  -506
  -531
Free cash flow, $m
  -361
  1,121
  562
  647
  738
  834
  937
  1,046
  1,162
  1,285
  1,416
  1,525
  1,672
  1,828
  1,994
  2,170
  2,356
  2,553
  2,762
  2,983
  3,218
  3,466
  3,729
  4,007
  4,301
  4,612
  4,941
  5,289
  5,657
  6,045
  6,456
Issuance/(repayment) of debt, $m
  1,153
  282
  297
  311
  326
  342
  359
  376
  395
  414
  434
  456
  478
  502
  526
  552
  580
  608
  639
  670
  704
  739
  775
  814
  854
  897
  942
  989
  1,038
  1,090
  1,144
Issuance/(repurchase) of shares, $m
  -380
  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  
  678
  282
  297
  311
  326
  342
  359
  376
  395
  414
  434
  456
  478
  502
  526
  552
  580
  608
  639
  670
  704
  739
  775
  814
  854
  897
  942
  989
  1,038
  1,090
  1,144
Total cash flow (excl. dividends), $m
  308
  1,403
  858
  958
  1,064
  1,177
  1,296
  1,422
  1,557
  1,699
  1,850
  1,981
  2,150
  2,330
  2,520
  2,722
  2,936
  3,162
  3,401
  3,654
  3,922
  4,205
  4,504
  4,821
  5,155
  5,509
  5,883
  6,278
  6,695
  7,135
  7,600
Retained Cash Flow (-), $m
  52
  -50
  -54
  -57
  -59
  -62
  -65
  -68
  -72
  -75
  -79
  -83
  -87
  -91
  -96
  -101
  -106
  -111
  -116
  -122
  -128
  -134
  -141
  -148
  -156
  -163
  -171
  -180
  -189
  -198
  -208
Prev. year cash balance distribution, $m
 
  231
  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
 
  1,583
  804
  902
  1,005
  1,114
  1,231
  1,354
  1,485
  1,624
  1,771
  1,898
  2,063
  2,239
  2,425
  2,621
  2,830
  3,051
  3,284
  3,532
  3,793
  4,070
  4,363
  4,673
  5,000
  5,346
  5,711
  6,098
  6,506
  6,937
  7,392
Discount rate, %
 
  9.30
  9.77
  10.25
  10.77
  11.30
  11.87
  12.46
  13.09
  13.74
  14.43
  15.15
  15.91
  16.70
  17.54
  18.41
  19.33
  20.30
  21.32
  22.38
  23.50
  24.68
  25.91
  27.20
  28.57
  29.99
  31.49
  33.07
  34.72
  36.46
  38.28
PV of cash for distribution, $m
 
  1,449
  668
  673
  667
  652
  628
  595
  555
  510
  460
  402
  351
  301
  252
  208
  167
  132
  101
  76
  56
  40
  27
  18
  12
  8
  5
  3
  2
  1
  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

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells various basic apparel for men, women, and children in the United States. The company operates through four segments: Innerwear, Activewear, Direct to Consumer, and International. It sells bras, panties, shapewears, hosiery, men’s underwear, children’s underwear, and socks; and other activewear, such as T-shirts, fleece, sport shirts, performance T-shirts and shorts, sports bras, and thermals, as well as licensed logo apparel in collegiate bookstores, mass retailers, and other channels. The company licenses its Champion name for footwear and sports accessories. It provides its products primarily under the Hanes, Champion, Maidenform, DIM, Playtex, Bali, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Lilyette, Gear for Sports, Bonds, Berlei, Shock Absorber, Abanderado, Rinbros, and Zorba brand names. The company markets its products through retailers, wholesalers, and third party embellishers, as well as directly to consumers. As of December 31, 2016, it operated 252 outlet stores in the United States and the Commonwealth of Puerto Rico, as well as 460 retail and outlet stores internationally; and Websites under the Hanes, One Hanes Place, JMS/Just My Size, and Champion names.. The company also sells its products in Europe, Australia, Asia, Latin America, Canada, the Middle East, Africa, and the Caribbean. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina.

FINANCIAL RATIOS  of  Hanesbrands (HBI)

Valuation Ratios
P/E Ratio 15.9
Price to Sales 1.4
Price to Book 7
Price to Tangible Book
Price to Cash Flow 14.1
Price to Free Cash Flow 16.4
Growth Rates
Sales Growth Rate 5.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -16.2%
Cap. Spend. - 3 Yr. Gr. Rate 13.5%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 286.6%
Total Debt to Equity 305.7%
Interest Coverage 572
Management Effectiveness
Return On Assets 8.6%
Ret/ On Assets - 3 Yr. Avg. 8.4%
Return On Total Capital 12.2%
Ret/ On T. Cap. - 3 Yr. Avg. 12.3%
Return On Equity 43.1%
Return On Equity - 3 Yr. Avg. 35.4%
Asset Turnover 1
Profitability Ratios
Gross Margin 37.8%
Gross Margin - 3 Yr. Avg. 36.9%
EBITDA Margin 11.2%
EBITDA Margin - 3 Yr. Avg. 10.6%
Operating Margin 12.9%
Oper. Margin - 3 Yr. Avg. 11.3%
Pre-Tax Margin 9.5%
Pre-Tax Margin - 3 Yr. Avg. 8.8%
Net Profit Margin 8.9%
Net Profit Margin - 3 Yr. Avg. 8%
Effective Tax Rate 6%
Eff/ Tax Rate - 3 Yr. Avg. 9.5%
Payout Ratio 31%

HBI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HBI stock intrinsic value calculation we used $6028 million for the last fiscal year's total revenue generated by Hanesbrands. The default revenue input number comes from 2016 income statement of Hanesbrands. 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 HBI stock valuation model: a) initial revenue growth rate of 5.2% 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 9.3%, whose default value for HBI is calculated based on our internal credit rating of Hanesbrands, 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 Hanesbrands.
    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 HBI stock the variable cost ratio is equal to 39.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2942 million in the base year in the intrinsic value calculation for HBI 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 Hanesbrands.

Corporate tax rate of 27% is the nominal tax rate for Hanesbrands. 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 HBI 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 HBI are equal to 22.2%.

Life of production assets of 22.4 years is the average useful life of capital assets used in Hanesbrands 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 HBI is equal to 24.3%. 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 - $1224 million for Hanesbrands - 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 367.164 million for Hanesbrands 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 Hanesbrands at the current share price and the inputted number of shares is $8.3 billion.


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COMPANY NEWS

▶ 3 Stocks the Market Is Wrong About   [Jun-15-17 08:23AM  Motley Fool]
▶ ETFs with exposure to Hanesbrands, Inc. : June 13, 2017   [Jun-13-17 12:34PM  Capital Cube]
▶ Gap Sees Some Margin Improvement in 1Q17: Heres Why   [May-24-17 09:08AM  Market Realist]
▶ Wall Street Analysts View on PVH Corp Is Positive   [May-23-17 07:37AM  Market Realist]
▶ ETFs with exposure to Hanesbrands, Inc. : May 22, 2017   [May-22-17 01:42PM  Capital Cube]
▶ Hanesbrands, Inc. Value Analysis (NYSE:HBI) : May 5, 2017   [May-05-17 05:04PM  Capital Cube]
▶ Hanesbrands cutting 220 corporate jobs as part of 'Project Booster'   [May-03-17 03:14PM  American City Business Journals]
▶ Apparel Leaders Fail to Please Investors in Q1   [May-02-17 06:00PM  Investopedia]
▶ HanesBrands tops 1Q profit forecasts   [05:36PM  Associated Press]
▶ Can Hanesbrands Be Considered a Good Pick?   [09:06AM  Market Realist]
▶ HanesBrands Declares Regular Quarterly Cash Dividend   [Apr-25-17 04:05PM  Business Wire]
▶ Why Hanesbrands 1Q17 Organic Sales Could Be Under Pressure   [Apr-24-17 05:05PM  Market Realist]
▶ Why VF Corporation Stock Has a Downside of 4%   [10:38AM  Market Realist]
▶ VF Corporations Earnings and Revenue Could Fall in 1Q17   [Apr-21-17 03:11PM  Market Realist]
▶ Hanesbrands CFO to retire by end of year   [Apr-17-17 01:35PM  American City Business Journals]
▶ [$$] Why Wall Street Will Cotton to Hanesbrands   [Apr-15-17 12:52AM  Barrons.com]
▶ Tesla rises while U.S. Steel, Pier 1 and Wells Fargo dip   [Apr-13-17 05:10PM  Associated Press]
▶ Story Stocks from Briefing.com   [11:32AM  Briefing.com]
▶ After-hours buzz: PIR, HBI & AERI   [Apr-12-17 06:27PM  CNBC]
▶ Why Cyclical Stocks Make Tricky Long-Term Investments   [Mar-31-17 05:26PM  GuruFocus.com]
▶ 2 Dirt-Cheap Dividend Stocks to Buy in April   [Mar-21-17 12:47PM  Motley Fool]
▶ 2 Dirt-Cheap Dividend Stocks to Buy in April   [12:47PM  at Motley Fool]
▶ 3 Incredibly Cheap Big Brand Stocks   [Mar-15-17 06:38PM  at Motley Fool]
▶ 3 Stocks With Great Prospects in the Retail Bargain Bin   [Mar-03-17 06:00AM  at Morningstar]
▶ These 3 Stocks Just Raised Their Dividends   [Feb-25-17 11:50AM  at Motley Fool]
▶ HanesBrands Distribution Center Achieves Safety Milestone   [Feb-16-17 03:15PM  Business Wire]
Stock chart of HBI Financial statements of HBI Annual reports of HBI
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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