Intrinsic value of ILG - ILG

Previous Close

$25.35

  Intrinsic Value

$146.78

stock screener

  Rating & Target

str. buy

+479%

  Value-price divergence*

-108%

Previous close

$25.35

 
Intrinsic value

$146.78

 
Up/down potential

+479%

 
Rating

str. buy

 
Value-price divergence*

-108%

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

We calculate the intrinsic value of ILG 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 3.2

 

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, %
  94.55
  51.50
  46.85
  42.67
  38.90
  35.51
  32.46
  29.71
  27.24
  25.02
  23.02
  21.21
  19.59
  18.13
  16.82
  15.64
  14.57
  13.62
  12.75
  11.98
  11.28
  10.65
  10.09
  9.58
  9.12
  8.71
  8.34
  8.00
  7.70
  7.43
  7.19
Revenue, $m
  1,356
  2,054
  3,017
  4,304
  5,978
  8,101
  10,730
  13,918
  17,710
  22,140
  27,236
  33,013
  39,481
  46,641
  54,485
  63,006
  72,188
  82,018
  92,479
  103,557
  115,240
  127,517
  140,381
  153,828
  167,859
  182,478
  197,694
  213,518
  229,967
  247,062
  264,826
Variable operating expenses, $m
 
  1,339
  1,941
  2,745
  3,791
  5,118
  6,761
  8,753
  11,122
  13,890
  17,074
  20,628
  24,670
  29,143
  34,045
  39,369
  45,107
  51,249
  57,785
  64,708
  72,008
  79,679
  87,717
  96,119
  104,887
  114,021
  123,529
  133,417
  143,695
  154,377
  165,477
Fixed operating expenses, $m
 
  111
  113
  116
  119
  122
  125
  128
  132
  135
  138
  142
  145
  149
  153
  156
  160
  164
  168
  173
  177
  181
  186
  191
  195
  200
  205
  210
  216
  221
  227
Total operating expenses, $m
  1,008
  1,450
  2,054
  2,861
  3,910
  5,240
  6,886
  8,881
  11,254
  14,025
  17,212
  20,770
  24,815
  29,292
  34,198
  39,525
  45,267
  51,413
  57,953
  64,881
  72,185
  79,860
  87,903
  96,310
  105,082
  114,221
  123,734
  133,627
  143,911
  154,598
  165,704
Operating income, $m
  348
  604
  962
  1,443
  2,068
  2,861
  3,844
  5,037
  6,456
  8,115
  10,023
  12,243
  14,666
  17,348
  20,288
  23,480
  26,921
  30,605
  34,525
  38,677
  43,055
  47,657
  52,478
  57,518
  62,777
  68,257
  73,960
  79,891
  86,057
  92,464
  99,123
EBITDA, $m
  410
  712
  1,094
  1,607
  2,274
  3,121
  4,171
  5,444
  6,959
  8,729
  10,766
  13,076
  15,662
  18,525
  21,662
  25,069
  28,742
  32,673
  36,858
  41,289
  45,962
  50,873
  56,019
  61,398
  67,011
  72,859
  78,946
  85,277
  91,857
  98,696
  105,803
Interest expense (income), $m
  24
  25
  61
  111
  177
  263
  373
  508
  673
  868
  1,097
  1,359
  1,657
  1,991
  2,360
  2,764
  3,204
  3,677
  4,184
  4,723
  5,294
  5,897
  6,530
  7,193
  7,886
  8,610
  9,364
  10,148
  10,964
  11,812
  12,693
Earnings before tax, $m
  324
  579
  902
  1,332
  1,891
  2,598
  3,472
  4,529
  5,784
  7,247
  8,927
  10,884
  13,009
  15,358
  17,928
  20,716
  23,717
  26,928
  30,341
  33,954
  37,761
  41,760
  45,948
  50,325
  54,891
  59,647
  64,596
  69,743
  75,093
  80,652
  86,430
Tax expense, $m
  57
  156
  243
  360
  510
  701
  937
  1,223
  1,562
  1,957
  2,410
  2,939
  3,512
  4,147
  4,841
  5,593
  6,404
  7,270
  8,192
  9,167
  10,195
  11,275
  12,406
  13,588
  14,820
  16,105
  17,441
  18,831
  20,275
  21,776
  23,336
Net income, $m
  265
  423
  658
  972
  1,380
  1,896
  2,534
  3,306
  4,222
  5,290
  6,517
  7,945
  9,497
  11,211
  13,087
  15,123
  17,314
  19,657
  22,149
  24,786
  27,565
  30,485
  33,542
  36,737
  40,070
  43,542
  47,155
  50,912
  54,818
  58,876
  63,094

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  126
  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
  3,304
  4,811
  7,065
  10,079
  14,000
  18,971
  25,129
  32,596
  41,475
  51,850
  63,784
  77,315
  92,462
  109,229
  127,600
  147,554
  169,059
  192,079
  216,578
  242,523
  269,883
  298,634
  328,760
  360,253
  393,113
  427,349
  462,983
  500,042
  538,565
  578,599
  620,202
Adjusted assets (=assets-cash), $m
  3,178
  4,811
  7,065
  10,079
  14,000
  18,971
  25,129
  32,596
  41,475
  51,850
  63,784
  77,315
  92,462
  109,229
  127,600
  147,554
  169,059
  192,079
  216,578
  242,523
  269,883
  298,634
  328,760
  360,253
  393,113
  427,349
  462,983
  500,042
  538,565
  578,599
  620,202
Revenue / Adjusted assets
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
Average production assets, $m
  687
  1,042
  1,530
  2,182
  3,031
  4,107
  5,440
  7,057
  8,979
  11,225
  13,809
  16,738
  20,017
  23,647
  27,624
  31,944
  36,599
  41,583
  46,887
  52,503
  58,427
  64,651
  71,173
  77,991
  85,105
  92,516
  100,231
  108,254
  116,593
  125,260
  134,267
Working capital, $m
  227
  320
  471
  671
  933
  1,264
  1,674
  2,171
  2,763
  3,454
  4,249
  5,150
  6,159
  7,276
  8,500
  9,829
  11,261
  12,795
  14,427
  16,155
  17,977
  19,893
  21,899
  23,997
  26,186
  28,467
  30,840
  33,309
  35,875
  38,542
  41,313
Total debt, $m
  691
  1,417
  2,571
  4,115
  6,122
  8,667
  11,820
  15,643
  20,189
  25,501
  31,611
  38,539
  46,295
  54,879
  64,285
  74,502
  85,512
  97,298
  109,842
  123,126
  137,134
  151,855
  167,279
  183,404
  200,228
  217,757
  236,001
  254,975
  274,699
  295,197
  316,497
Total liabilities, $m
  1,737
  2,463
  3,617
  5,161
  7,168
  9,713
  12,866
  16,689
  21,235
  26,547
  32,657
  39,585
  47,341
  55,925
  65,331
  75,548
  86,558
  98,344
  110,888
  124,172
  138,180
  152,901
  168,325
  184,450
  201,274
  218,803
  237,047
  256,021
  275,745
  296,243
  317,543
Total equity, $m
  1,567
  2,348
  3,448
  4,919
  6,832
  9,258
  12,263
  15,907
  20,240
  25,303
  31,127
  37,730
  45,122
  53,304
  62,269
  72,006
  82,501
  93,734
  105,690
  118,351
  131,703
  145,734
  160,435
  175,803
  191,839
  208,546
  225,936
  244,020
  262,820
  282,356
  302,659
Total liabilities and equity, $m
  3,304
  4,811
  7,065
  10,080
  14,000
  18,971
  25,129
  32,596
  41,475
  51,850
  63,784
  77,315
  92,463
  109,229
  127,600
  147,554
  169,059
  192,078
  216,578
  242,523
  269,883
  298,635
  328,760
  360,253
  393,113
  427,349
  462,983
  500,041
  538,565
  578,599
  620,202
Debt-to-equity ratio
  0.441
  0.600
  0.750
  0.840
  0.900
  0.940
  0.960
  0.980
  1.000
  1.010
  1.020
  1.020
  1.030
  1.030
  1.030
  1.030
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.040
  1.050
  1.050
  1.050
Adjusted equity ratio
  0.453
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488
  0.488

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  265
  423
  658
  972
  1,380
  1,896
  2,534
  3,306
  4,222
  5,290
  6,517
  7,945
  9,497
  11,211
  13,087
  15,123
  17,314
  19,657
  22,149
  24,786
  27,565
  30,485
  33,542
  36,737
  40,070
  43,542
  47,155
  50,912
  54,818
  58,876
  63,094
Depreciation, amort., depletion, $m
  62
  108
  132
  164
  207
  260
  326
  407
  503
  614
  743
  833
  996
  1,176
  1,374
  1,589
  1,821
  2,069
  2,333
  2,612
  2,907
  3,216
  3,541
  3,880
  4,234
  4,603
  4,987
  5,386
  5,801
  6,232
  6,680
Funds from operations, $m
  -100
  530
  790
  1,137
  1,587
  2,157
  2,861
  3,713
  4,725
  5,905
  7,259
  8,778
  10,492
  12,388
  14,462
  16,712
  19,135
  21,726
  24,482
  27,398
  30,472
  33,701
  37,083
  40,617
  44,304
  48,145
  52,142
  56,298
  60,618
  65,108
  69,774
Change in working capital, $m
  -93
  109
  150
  201
  261
  331
  410
  497
  591
  691
  795
  901
  1,009
  1,117
  1,224
  1,329
  1,432
  1,533
  1,632
  1,728
  1,823
  1,915
  2,007
  2,098
  2,189
  2,281
  2,374
  2,469
  2,566
  2,667
  2,771
Cash from operations, $m
  -7
  422
  640
  936
  1,326
  1,825
  2,451
  3,216
  4,133
  5,213
  6,465
  7,877
  9,483
  11,271
  13,238
  15,383
  17,702
  20,193
  22,850
  25,670
  28,650
  31,786
  35,076
  38,520
  42,115
  45,864
  49,768
  53,829
  58,052
  62,441
  67,002
Maintenance CAPEX, $m
  0
  -34
  -52
  -76
  -109
  -151
  -204
  -271
  -351
  -447
  -558
  -687
  -833
  -996
  -1,176
  -1,374
  -1,589
  -1,821
  -2,069
  -2,333
  -2,612
  -2,907
  -3,216
  -3,541
  -3,880
  -4,234
  -4,603
  -4,987
  -5,386
  -5,801
  -6,232
New CAPEX, $m
  -95
  -355
  -488
  -653
  -849
  -1,076
  -1,333
  -1,616
  -1,922
  -2,246
  -2,583
  -2,929
  -3,279
  -3,630
  -3,977
  -4,320
  -4,655
  -4,984
  -5,304
  -5,617
  -5,923
  -6,224
  -6,522
  -6,818
  -7,114
  -7,412
  -7,714
  -8,023
  -8,340
  -8,667
  -9,006
Cash from investing activities, $m
  -189
  -389
  -540
  -729
  -958
  -1,227
  -1,537
  -1,887
  -2,273
  -2,693
  -3,141
  -3,616
  -4,112
  -4,626
  -5,153
  -5,694
  -6,244
  -6,805
  -7,373
  -7,950
  -8,535
  -9,131
  -9,738
  -10,359
  -10,994
  -11,646
  -12,317
  -13,010
  -13,726
  -14,468
  -15,238
Free cash flow, $m
  -196
  33
  100
  207
  368
  598
  913
  1,329
  1,860
  2,521
  3,323
  4,260
  5,371
  6,645
  8,084
  9,689
  11,457
  13,388
  15,477
  17,721
  20,115
  22,655
  25,338
  28,161
  31,122
  34,218
  37,451
  40,820
  44,327
  47,974
  51,764
Issuance/(repayment) of debt, $m
  440
  837
  1,154
  1,543
  2,007
  2,545
  3,153
  3,823
  4,546
  5,312
  6,110
  6,928
  7,756
  8,584
  9,406
  10,216
  11,010
  11,786
  12,544
  13,284
  14,008
  14,721
  15,425
  16,124
  16,824
  17,529
  18,244
  18,974
  19,724
  20,498
  21,300
Issuance/(repurchase) of shares, $m
  -101
  373
  442
  499
  533
  530
  471
  337
  111
  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  
  286
  1,210
  1,596
  2,042
  2,540
  3,075
  3,624
  4,160
  4,657
  5,312
  6,110
  6,928
  7,756
  8,584
  9,406
  10,216
  11,010
  11,786
  12,544
  13,284
  14,008
  14,721
  15,425
  16,124
  16,824
  17,529
  18,244
  18,974
  19,724
  20,498
  21,300
Total cash flow (excl. dividends), $m
  85
  1,243
  1,696
  2,249
  2,909
  3,673
  4,537
  5,489
  6,517
  7,833
  9,432
  11,188
  13,127
  15,229
  17,490
  19,905
  22,468
  25,174
  28,021
  31,004
  34,123
  37,376
  40,763
  44,285
  47,946
  51,748
  55,695
  59,794
  64,050
  68,471
  73,065
Retained Cash Flow (-), $m
  -1,135
  -796
  -1,100
  -1,471
  -1,913
  -2,426
  -3,005
  -3,644
  -4,333
  -5,063
  -5,824
  -6,603
  -7,392
  -8,182
  -8,965
  -9,737
  -10,494
  -11,234
  -11,956
  -12,661
  -13,352
  -14,031
  -14,702
  -15,368
  -16,036
  -16,708
  -17,389
  -18,085
  -18,799
  -19,537
  -20,302
Prev. year cash balance distribution, $m
 
  15
  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
 
  462
  596
  778
  995
  1,247
  1,532
  1,845
  2,184
  2,770
  3,609
  4,585
  5,735
  7,048
  8,525
  10,167
  11,974
  13,941
  16,065
  18,343
  20,771
  23,345
  26,061
  28,917
  31,910
  35,040
  38,306
  41,709
  45,251
  48,934
  52,762
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  434
  522
  632
  745
  853
  949
  1,028
  1,084
  1,213
  1,381
  1,516
  1,619
  1,678
  1,689
  1,654
  1,576
  1,461
  1,319
  1,159
  992
  826
  670
  528
  404
  301
  217
  152
  103
  68
  43
Current shareholders' claim on cash, %
  100
  89.3
  81.7
  76.2
  72.3
  69.6
  67.9
  67.0
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8
  66.8

ILG, Inc., formerly Interval Leisure Group, Inc., is a provider of professionally delivered vacation experiences. The Company is a global licensee for the Hyatt, Westin and Sheraton brands in vacation ownership. The Company operates through two segments: Exchange and Rental, and Vacation Ownership. Its Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers, by providing vacation exchange services and vacation rental, working with resort developers and operating vacation rental properties. Its Vacation Ownership segment engages in the management of vacation ownership resorts; sales, marketing, and financing of vacation ownership interests, and related services to owners and associations. The Company offers leisure and travel-related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients.

FINANCIAL RATIOS  of  ILG (ILG)

Valuation Ratios
P/E Ratio 11.9
Price to Sales 2.3
Price to Book 2
Price to Tangible Book
Price to Cash Flow -451.5
Price to Free Cash Flow -31
Growth Rates
Sales Growth Rate 94.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 375%
Cap. Spend. - 3 Yr. Gr. Rate 41.1%
Financial Strength
Quick Ratio 1
Current Ratio 0.3
LT Debt to Equity 37%
Total Debt to Equity 44.1%
Interest Coverage 15
Management Effectiveness
Return On Assets 12.4%
Ret/ On Assets - 3 Yr. Avg. 8.6%
Return On Total Capital 17.1%
Ret/ On T. Cap. - 3 Yr. Avg. 12.1%
Return On Equity 26.5%
Return On Equity - 3 Yr. Avg. 22%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 50.1%
Gross Margin - 3 Yr. Avg. 53.9%
EBITDA Margin 30.2%
EBITDA Margin - 3 Yr. Avg. 26.6%
Operating Margin 25.7%
Oper. Margin - 3 Yr. Avg. 21.6%
Pre-Tax Margin 23.9%
Pre-Tax Margin - 3 Yr. Avg. 20.4%
Net Profit Margin 19.5%
Net Profit Margin - 3 Yr. Avg. 14.3%
Effective Tax Rate 17.6%
Eff/ Tax Rate - 3 Yr. Avg. 29.5%
Payout Ratio 19.6%

ILG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ILG stock intrinsic value calculation we used $1356 million for the last fiscal year's total revenue generated by ILG. The default revenue input number comes from 2016 income statement of ILG. 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 ILG stock valuation model: a) initial revenue growth rate of 51.5% 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 6.5%, whose default value for ILG is calculated based on our internal credit rating of ILG, 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 ILG.
    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 ILG stock the variable cost ratio is equal to 66.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $108 million in the base year in the intrinsic value calculation for ILG 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 4.3% for ILG.

Corporate tax rate of 27% is the nominal tax rate for ILG. 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 ILG 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 ILG are equal to 50.7%.

Life of production assets of 20.1 years is the average useful life of capital assets used in ILG 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 ILG is equal to 15.6%. 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 - $1567 million for ILG - 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 124.431 million for ILG 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 ILG at the current share price and the inputted number of shares is $3.2 billion.

RELATED COMPANIES Price Int.Val. Rating
WYN Wyndham Worldw 101.44 90.24  hold
VAC Marriott Vacat 113.33 75.05  sell
HGV Hilton Grand V 36.42 31.85  hold
MAR Marriott Inter 105.39 591.44  str.buy
HLT Hilton Worldwi 66.63 129.36  str.buy
VVI Viad 56.05 106.85  str.buy
PCLN Priceline Grou 1,843.20 2,160.71  buy
TRIP TripAdvisor 43.93 36.72  hold

COMPANY NEWS

▶ ETFs with exposure to ILG, Inc. : August 29, 2017   [Aug-29-17 07:28PM  Capital Cube]
▶ ILG, Inc. Value Analysis (NASDAQ:ILG) : August 5, 2017   [Aug-04-17 08:57PM  Capital Cube]
▶ ILG Reports Second Quarter 2017 Results   [Aug-03-17 04:05PM  Business Wire]
▶ How to Play a Possible ILG-Marriott Vacations Merger   [Jun-26-17 03:45PM  Bloomberg Video]
▶ Pool Parties, Camping, Fireworks and Summer Bites   [Jun-19-17 04:05PM  Business Wire]
▶ ILG, Inc. Hosts Investor Day Today in New York City   [May-25-17 09:25AM  Business Wire]
▶ ETFs with exposure to ILG, Inc. : May 23, 2017   [May-23-17 12:50PM  Capital Cube]
▶ ETFs with exposure to ILG, Inc. : May 12, 2017   [May-12-17 04:03PM  Capital Cube]
▶ ILG tops Street 1Q forecasts   [May-04-17 07:05PM  Associated Press]
▶ ILG Reports First Quarter 2017 Results   [04:05PM  Business Wire]
▶ Royal Caribbean Sails Into Profit-Taking Zone On Strong Earnings   [May-01-17 12:22PM  Investor's Business Daily]
▶ Maui Welcomes Newest Oceanfront Resort   [Apr-14-17 11:27PM  PR Newswire]
▶ Vacation Resort Stock Floating In Buy Zone; Pays 3.1% Dividend   [Mar-28-17 02:33PM  Investor's Business Daily]
▶ ILG, Inc. To Host Investor Day   [Mar-21-17 04:30PM  Business Wire]
▶ Aqua-Aston Hospitality Receives 27 Readers Choice Awards   [Feb-23-17 04:05PM  Business Wire]
▶ Cramer's stocks in the semiconductor sweet spot   [Jan-26-17 07:27PM  at CNBC]
▶ Is ILG Inc (ILG) A Good Stock To Buy?   [Dec-13-16 05:08AM  at Insider Monkey]
Financial statements of ILG
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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