Intrinsic value of Intuit - INTU

Previous Close

$137.92

  Intrinsic Value

$68.26

stock screener

  Rating & Target

str. sell

-51%

  Value-price divergence*

-72%

Previous close

$137.92

 
Intrinsic value

$68.26

 
Up/down potential

-51%

 
Rating

str. sell

 
Value-price divergence*

-72%

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

We calculate the intrinsic value of INTU 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 35.3

 

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, %
  11.98
  10.30
  9.77
  9.29
  8.86
  8.48
  8.13
  7.82
  7.53
  7.28
  7.05
  6.85
  6.66
  6.50
  6.35
  6.21
  6.09
  5.98
  5.88
  5.80
  5.72
  5.64
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
Revenue, $m
  4,694
  5,177
  5,683
  6,211
  6,762
  7,335
  7,932
  8,552
  9,196
  9,866
  10,561
  11,285
  12,037
  12,819
  13,632
  14,479
  15,361
  16,280
  17,238
  18,237
  19,279
  20,367
  21,504
  22,691
  23,933
  25,230
  26,588
  28,008
  29,495
  31,052
  32,682
Variable operating expenses, $m
 
  4,253
  4,656
  5,077
  5,515
  5,972
  6,447
  6,941
  7,455
  7,988
  8,542
  8,990
  9,589
  10,212
  10,861
  11,535
  12,238
  12,970
  13,733
  14,529
  15,360
  16,227
  17,132
  18,078
  19,067
  20,101
  21,182
  22,314
  23,498
  24,738
  26,037
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  3,452
  4,253
  4,656
  5,077
  5,515
  5,972
  6,447
  6,941
  7,455
  7,988
  8,542
  8,990
  9,589
  10,212
  10,861
  11,535
  12,238
  12,970
  13,733
  14,529
  15,360
  16,227
  17,132
  18,078
  19,067
  20,101
  21,182
  22,314
  23,498
  24,738
  26,037
Operating income, $m
  1,242
  924
  1,027
  1,135
  1,247
  1,363
  1,484
  1,610
  1,741
  1,878
  2,019
  2,294
  2,447
  2,606
  2,772
  2,944
  3,123
  3,310
  3,505
  3,708
  3,920
  4,141
  4,372
  4,613
  4,866
  5,130
  5,406
  5,694
  5,997
  6,313
  6,645
EBITDA, $m
  1,480
  1,154
  1,267
  1,385
  1,507
  1,635
  1,768
  1,906
  2,050
  2,199
  2,354
  2,515
  2,683
  2,857
  3,039
  3,228
  3,424
  3,629
  3,843
  4,065
  4,298
  4,540
  4,793
  5,058
  5,335
  5,624
  5,927
  6,243
  6,575
  6,922
  7,285
Interest expense (income), $m
  37
  24
  37
  51
  65
  80
  95
  111
  128
  145
  163
  182
  201
  221
  243
  264
  287
  311
  336
  361
  388
  416
  446
  476
  508
  542
  576
  613
  651
  691
  733
Earnings before tax, $m
  1,203
  901
  990
  1,084
  1,182
  1,284
  1,389
  1,499
  1,614
  1,733
  1,856
  2,113
  2,246
  2,385
  2,529
  2,679
  2,836
  2,999
  3,169
  3,346
  3,531
  3,725
  3,926
  4,137
  4,358
  4,588
  4,829
  5,081
  5,345
  5,622
  5,911
Tax expense, $m
  397
  243
  267
  293
  319
  347
  375
  405
  436
  468
  501
  570
  606
  644
  683
  723
  766
  810
  856
  904
  953
  1,006
  1,060
  1,117
  1,177
  1,239
  1,304
  1,372
  1,443
  1,518
  1,596
Net income, $m
  979
  657
  723
  791
  863
  937
  1,014
  1,095
  1,178
  1,265
  1,355
  1,542
  1,640
  1,741
  1,846
  1,956
  2,070
  2,189
  2,313
  2,443
  2,578
  2,719
  2,866
  3,020
  3,181
  3,349
  3,525
  3,709
  3,902
  4,104
  4,315

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,080
  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
  4,250
  3,682
  4,042
  4,418
  4,809
  5,217
  5,641
  6,082
  6,541
  7,017
  7,512
  8,026
  8,561
  9,117
  9,696
  10,298
  10,925
  11,579
  12,260
  12,971
  13,712
  14,486
  15,294
  16,139
  17,022
  17,945
  18,910
  19,921
  20,978
  22,085
  23,244
Adjusted assets (=assets-cash), $m
  3,170
  3,682
  4,042
  4,418
  4,809
  5,217
  5,641
  6,082
  6,541
  7,017
  7,512
  8,026
  8,561
  9,117
  9,696
  10,298
  10,925
  11,579
  12,260
  12,971
  13,712
  14,486
  15,294
  16,139
  17,022
  17,945
  18,910
  19,921
  20,978
  22,085
  23,244
Revenue / Adjusted assets
  1.481
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
  1.406
Average production assets, $m
  922
  1,015
  1,114
  1,217
  1,325
  1,438
  1,555
  1,676
  1,802
  1,934
  2,070
  2,212
  2,359
  2,512
  2,672
  2,838
  3,011
  3,191
  3,379
  3,574
  3,779
  3,992
  4,215
  4,448
  4,691
  4,945
  5,211
  5,490
  5,781
  6,086
  6,406
Working capital, $m
  -637
  -518
  -568
  -621
  -676
  -734
  -793
  -855
  -920
  -987
  -1,056
  -1,128
  -1,204
  -1,282
  -1,363
  -1,448
  -1,536
  -1,628
  -1,724
  -1,824
  -1,928
  -2,037
  -2,150
  -2,269
  -2,393
  -2,523
  -2,659
  -2,801
  -2,950
  -3,105
  -3,268
Total debt, $m
  1,000
  754
  1,032
  1,322
  1,624
  1,939
  2,266
  2,606
  2,960
  3,328
  3,710
  4,107
  4,520
  4,949
  5,396
  5,861
  6,345
  6,850
  7,376
  7,924
  8,497
  9,094
  9,718
  10,370
  11,052
  11,764
  12,510
  13,290
  14,106
  14,961
  15,856
Total liabilities, $m
  3,089
  2,843
  3,121
  3,411
  3,713
  4,028
  4,355
  4,695
  5,049
  5,417
  5,799
  6,196
  6,609
  7,038
  7,485
  7,950
  8,434
  8,939
  9,465
  10,013
  10,586
  11,183
  11,807
  12,459
  13,141
  13,853
  14,599
  15,379
  16,195
  17,050
  17,945
Total equity, $m
  1,161
  840
  922
  1,007
  1,097
  1,190
  1,286
  1,387
  1,491
  1,600
  1,713
  1,830
  1,952
  2,079
  2,211
  2,348
  2,491
  2,640
  2,795
  2,957
  3,126
  3,303
  3,487
  3,680
  3,881
  4,091
  4,312
  4,542
  4,783
  5,035
  5,300
Total liabilities and equity, $m
  4,250
  3,683
  4,043
  4,418
  4,810
  5,218
  5,641
  6,082
  6,540
  7,017
  7,512
  8,026
  8,561
  9,117
  9,696
  10,298
  10,925
  11,579
  12,260
  12,970
  13,712
  14,486
  15,294
  16,139
  17,022
  17,944
  18,911
  19,921
  20,978
  22,085
  23,245
Debt-to-equity ratio
  0.861
  0.900
  1.120
  1.310
  1.480
  1.630
  1.760
  1.880
  1.990
  2.080
  2.170
  2.240
  2.320
  2.380
  2.440
  2.500
  2.550
  2.590
  2.640
  2.680
  2.720
  2.750
  2.790
  2.820
  2.850
  2.880
  2.900
  2.930
  2.950
  2.970
  2.990
Adjusted equity ratio
  0.026
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  979
  657
  723
  791
  863
  937
  1,014
  1,095
  1,178
  1,265
  1,355
  1,542
  1,640
  1,741
  1,846
  1,956
  2,070
  2,189
  2,313
  2,443
  2,578
  2,719
  2,866
  3,020
  3,181
  3,349
  3,525
  3,709
  3,902
  4,104
  4,315
Depreciation, amort., depletion, $m
  238
  230
  240
  250
  261
  272
  284
  296
  308
  322
  335
  221
  236
  251
  267
  284
  301
  319
  338
  357
  378
  399
  421
  445
  469
  495
  521
  549
  578
  609
  641
Funds from operations, $m
  1,571
  887
  963
  1,041
  1,123
  1,209
  1,298
  1,390
  1,486
  1,586
  1,690
  1,763
  1,875
  1,992
  2,113
  2,240
  2,371
  2,508
  2,651
  2,800
  2,956
  3,118
  3,288
  3,465
  3,650
  3,844
  4,046
  4,258
  4,480
  4,713
  4,956
Change in working capital, $m
  170
  -48
  -51
  -53
  -55
  -57
  -60
  -62
  -64
  -67
  -70
  -72
  -75
  -78
  -81
  -85
  -88
  -92
  -96
  -100
  -104
  -109
  -114
  -119
  -124
  -130
  -136
  -142
  -149
  -156
  -163
Cash from operations, $m
  1,401
  935
  1,013
  1,094
  1,179
  1,266
  1,358
  1,452
  1,551
  1,653
  1,760
  1,836
  1,951
  2,070
  2,195
  2,324
  2,459
  2,600
  2,747
  2,900
  3,060
  3,227
  3,401
  3,584
  3,774
  3,974
  4,182
  4,400
  4,629
  4,868
  5,119
Maintenance CAPEX, $m
  0
  -92
  -101
  -111
  -122
  -133
  -144
  -155
  -168
  -180
  -193
  -207
  -221
  -236
  -251
  -267
  -284
  -301
  -319
  -338
  -357
  -378
  -399
  -421
  -445
  -469
  -495
  -521
  -549
  -578
  -609
New CAPEX, $m
  -522
  -93
  -99
  -104
  -108
  -112
  -117
  -122
  -126
  -131
  -136
  -142
  -147
  -153
  -159
  -166
  -173
  -180
  -188
  -196
  -204
  -213
  -223
  -233
  -243
  -254
  -266
  -278
  -291
  -305
  -319
Cash from investing activities, $m
  371
  -185
  -200
  -215
  -230
  -245
  -261
  -277
  -294
  -311
  -329
  -349
  -368
  -389
  -410
  -433
  -457
  -481
  -507
  -534
  -561
  -591
  -622
  -654
  -688
  -723
  -761
  -799
  -840
  -883
  -928
Free cash flow, $m
  1,772
  750
  813
  879
  949
  1,021
  1,097
  1,175
  1,257
  1,342
  1,430
  1,487
  1,582
  1,681
  1,784
  1,891
  2,003
  2,119
  2,240
  2,367
  2,498
  2,636
  2,779
  2,929
  3,086
  3,250
  3,422
  3,601
  3,789
  3,985
  4,191
Issuance/(repayment) of debt, $m
  500
  266
  278
  290
  302
  315
  327
  340
  354
  368
  382
  397
  413
  429
  447
  465
  484
  505
  526
  549
  572
  597
  624
  652
  681
  713
  745
  780
  816
  855
  895
Issuance/(repurchase) of shares, $m
  -2,175
  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  
  -1,622
  266
  278
  290
  302
  315
  327
  340
  354
  368
  382
  397
  413
  429
  447
  465
  484
  505
  526
  549
  572
  597
  624
  652
  681
  713
  745
  780
  816
  855
  895
Total cash flow (excl. dividends), $m
  148
  1,016
  1,090
  1,169
  1,251
  1,336
  1,424
  1,516
  1,611
  1,709
  1,812
  1,884
  1,995
  2,110
  2,231
  2,356
  2,487
  2,624
  2,766
  2,915
  3,071
  3,233
  3,403
  3,581
  3,768
  3,963
  4,167
  4,381
  4,605
  4,840
  5,086
Retained Cash Flow (-), $m
  1,171
  -78
  -82
  -86
  -89
  -93
  -97
  -101
  -104
  -109
  -113
  -117
  -122
  -127
  -132
  -137
  -143
  -149
  -155
  -162
  -169
  -176
  -184
  -193
  -201
  -210
  -220
  -230
  -241
  -252
  -264
Prev. year cash balance distribution, $m
 
  399
  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
 
  1,338
  1,008
  1,084
  1,162
  1,243
  1,328
  1,415
  1,506
  1,601
  1,699
  1,767
  1,873
  1,984
  2,099
  2,219
  2,344
  2,475
  2,611
  2,753
  2,902
  3,057
  3,219
  3,389
  3,566
  3,752
  3,947
  4,151
  4,364
  4,587
  4,822
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
 
  1,283
  923
  943
  957
  964
  964
  956
  941
  920
  891
  839
  799
  754
  705
  651
  596
  538
  481
  424
  369
  316
  267
  222
  182
  146
  115
  89
  68
  50
  36
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

Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals primarily in the United States and internationally. The company’s Small Business segment provides QuickBooks financial and business management online services, and desktop software; QuickBooks technical support services; financial supplies; and QuickBooks Online Accountant, QuickBooks Accountant Desktop, and QuickBooks Desktop Accountant Plus, as well as the QuickBooks ProAdvisor Program for the accounting professionals. This segment also offers small business payroll products and services, including online payroll offerings, such as Quickbooks Online Payroll and Intuit Online Payroll; desktop payroll offerings comprising QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; and full service payroll offerings, such as Intuit Full Service Payroll and QuickBooks Assisted Payroll. In addition, it provides merchant services, including credit and debit card processing; Web-based transaction processing services for online merchants; online payment services; GoPayment mobile payment processing services; and QuickBooks point of sale solutions. Its Consumer segment provides TurboTax income tax preparation products and services; and electronic tax filing services. The company’s Professional Tax segment offers Lacerte, ProSeries, ProFile, and Intuit Tax Online professional tax products and services; and electronic tax filing services, bank product transmission services, and training services. The company sells its products and services through various sales and distribution channels, including Websites, promotions, call centers, retail locations, and online mobile application stores, as well as through alliance partners, such as banks, credit unions, and other financial institutions. Intuit Inc. was founded in 1983 and is headquartered in Mountain View, California.

FINANCIAL RATIOS  of  Intuit (INTU)

Valuation Ratios
P/E Ratio 36.3
Price to Sales 7.6
Price to Book 30.6
Price to Tangible Book
Price to Cash Flow 25.4
Price to Free Cash Flow 40.5
Growth Rates
Sales Growth Rate 12%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 100%
Cap. Spend. - 3 Yr. Gr. Rate 20.1%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 42%
Total Debt to Equity 86.1%
Interest Coverage 34
Management Effectiveness
Return On Assets 21.8%
Ret/ On Assets - 3 Yr. Avg. 15.6%
Return On Total Capital 39.2%
Ret/ On T. Cap. - 3 Yr. Avg. 24.8%
Return On Equity 56.1%
Return On Equity - 3 Yr. Avg. 32.3%
Asset Turnover 1
Profitability Ratios
Gross Margin 84%
Gross Margin - 3 Yr. Avg. 84%
EBITDA Margin 31.5%
EBITDA Margin - 3 Yr. Avg. 30.3%
Operating Margin 26.5%
Oper. Margin - 3 Yr. Avg. 24.9%
Pre-Tax Margin 25.6%
Pre-Tax Margin - 3 Yr. Avg. 24.4%
Net Profit Margin 20.9%
Net Profit Margin - 3 Yr. Avg. 17%
Effective Tax Rate 33%
Eff/ Tax Rate - 3 Yr. Avg. 36.5%
Payout Ratio 32.5%

INTU stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the INTU stock intrinsic value calculation we used $4694 million for the last fiscal year's total revenue generated by Intuit. The default revenue input number comes from 2016 income statement of Intuit. 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 INTU stock valuation model: a) initial revenue growth rate of 10.3% 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 INTU is calculated based on our internal credit rating of Intuit, 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 Intuit.
    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 INTU stock the variable cost ratio is equal to 82.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for INTU 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 4.9% for Intuit.

Corporate tax rate of 27% is the nominal tax rate for Intuit. 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 INTU 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 INTU are equal to 19.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Intuit 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 INTU is equal to -10%. 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 - $1161 million for Intuit - 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 255.842 million for Intuit 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 Intuit at the current share price and the inputted number of shares is $35.3 billion.

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Stock chart of INTU Financial statements of INTU
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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