Intrinsic value of Intuit - INTU

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$140.40

  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 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 35.9

 

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
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
Revenue, $m
  4,694
  5,168
  5,664
  6,181
  6,720
  7,281
  7,864
  8,470
  9,100
  9,755
  10,436
  11,143
  11,878
  12,643
  13,439
  14,268
  15,132
  16,031
  16,969
  17,947
  18,968
  20,034
  21,148
  22,311
  23,528
  24,800
  26,131
  27,523
  28,981
  30,508
  32,106
Variable operating expenses, $m
 
  4,246
  4,640
  5,052
  5,482
  5,929
  6,393
  6,876
  7,378
  7,900
  8,442
  8,877
  9,463
  10,073
  10,707
  11,367
  12,055
  12,772
  13,519
  14,298
  15,112
  15,961
  16,848
  17,775
  18,744
  19,758
  20,818
  21,928
  23,089
  24,305
  25,579
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
  4,246
  4,640
  5,052
  5,482
  5,929
  6,393
  6,876
  7,378
  7,900
  8,442
  8,877
  9,463
  10,073
  10,707
  11,367
  12,055
  12,772
  13,519
  14,298
  15,112
  15,961
  16,848
  17,775
  18,744
  19,758
  20,818
  21,928
  23,089
  24,305
  25,579
Operating income, $m
  1,242
  923
  1,023
  1,128
  1,238
  1,352
  1,471
  1,594
  1,722
  1,855
  1,993
  2,265
  2,415
  2,571
  2,732
  2,901
  3,076
  3,259
  3,450
  3,649
  3,856
  4,073
  4,300
  4,536
  4,783
  5,042
  5,313
  5,596
  5,892
  6,203
  6,528
EBITDA, $m
  1,480
  1,161
  1,272
  1,388
  1,509
  1,635
  1,766
  1,903
  2,044
  2,191
  2,344
  2,503
  2,668
  2,840
  3,019
  3,205
  3,399
  3,601
  3,812
  4,031
  4,261
  4,500
  4,750
  5,012
  5,285
  5,570
  5,869
  6,182
  6,510
  6,853
  7,212
Interest expense (income), $m
  37
  24
  37
  50
  64
  78
  93
  109
  125
  142
  160
  178
  197
  217
  238
  259
  281
  305
  329
  354
  380
  408
  437
  466
  498
  531
  565
  601
  638
  677
  718
Earnings before tax, $m
  1,203
  899
  987
  1,078
  1,174
  1,274
  1,377
  1,485
  1,597
  1,713
  1,833
  2,087
  2,218
  2,353
  2,495
  2,642
  2,795
  2,955
  3,121
  3,295
  3,476
  3,665
  3,863
  4,070
  4,286
  4,512
  4,748
  4,995
  5,254
  5,525
  5,809
Tax expense, $m
  397
  243
  266
  291
  317
  344
  372
  401
  431
  462
  495
  564
  599
  635
  674
  713
  755
  798
  843
  890
  939
  990
  1,043
  1,099
  1,157
  1,218
  1,282
  1,349
  1,419
  1,492
  1,569
Net income, $m
  979
  656
  720
  787
  857
  930
  1,005
  1,084
  1,165
  1,250
  1,338
  1,524
  1,619
  1,718
  1,821
  1,928
  2,040
  2,157
  2,278
  2,405
  2,538
  2,676
  2,820
  2,971
  3,129
  3,293
  3,466
  3,647
  3,836
  4,034
  4,241

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
  3,490
  3,824
  4,173
  4,537
  4,916
  5,310
  5,719
  6,145
  6,587
  7,046
  7,524
  8,021
  8,537
  9,075
  9,634
  10,217
  10,824
  11,458
  12,118
  12,808
  13,528
  14,279
  15,065
  15,887
  16,745
  17,644
  18,584
  19,569
  20,599
  21,679
Adjusted assets (=assets-cash), $m
  3,170
  3,490
  3,824
  4,173
  4,537
  4,916
  5,310
  5,719
  6,145
  6,587
  7,046
  7,524
  8,021
  8,537
  9,075
  9,634
  10,217
  10,824
  11,458
  12,118
  12,808
  13,528
  14,279
  15,065
  15,887
  16,745
  17,644
  18,584
  19,569
  20,599
  21,679
Revenue / Adjusted assets
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
  1.481
Average production assets, $m
  922
  1,013
  1,110
  1,211
  1,317
  1,427
  1,541
  1,660
  1,784
  1,912
  2,045
  2,184
  2,328
  2,478
  2,634
  2,797
  2,966
  3,142
  3,326
  3,518
  3,718
  3,927
  4,145
  4,373
  4,611
  4,861
  5,122
  5,395
  5,680
  5,980
  6,293
Working capital, $m
  -637
  -1,328
  -1,456
  -1,588
  -1,727
  -1,871
  -2,021
  -2,177
  -2,339
  -2,507
  -2,682
  -2,864
  -3,053
  -3,249
  -3,454
  -3,667
  -3,889
  -4,120
  -4,361
  -4,612
  -4,875
  -5,149
  -5,435
  -5,734
  -6,047
  -6,374
  -6,716
  -7,074
  -7,448
  -7,840
  -8,251
Total debt, $m
  1,000
  748
  1,020
  1,304
  1,600
  1,908
  2,228
  2,561
  2,907
  3,266
  3,640
  4,028
  4,432
  4,852
  5,289
  5,744
  6,217
  6,711
  7,226
  7,763
  8,324
  8,909
  9,520
  10,159
  10,827
  11,525
  12,256
  13,020
  13,820
  14,658
  15,536
Total liabilities, $m
  3,089
  2,837
  3,109
  3,393
  3,689
  3,997
  4,317
  4,650
  4,996
  5,355
  5,729
  6,117
  6,521
  6,941
  7,378
  7,833
  8,306
  8,800
  9,315
  9,852
  10,413
  10,998
  11,609
  12,248
  12,916
  13,614
  14,345
  15,109
  15,909
  16,747
  17,625
Total equity, $m
  1,161
  653
  715
  780
  848
  919
  993
  1,069
  1,149
  1,232
  1,318
  1,407
  1,500
  1,596
  1,697
  1,802
  1,911
  2,024
  2,143
  2,266
  2,395
  2,530
  2,670
  2,817
  2,971
  3,131
  3,299
  3,475
  3,659
  3,852
  4,054
Total liabilities and equity, $m
  4,250
  3,490
  3,824
  4,173
  4,537
  4,916
  5,310
  5,719
  6,145
  6,587
  7,047
  7,524
  8,021
  8,537
  9,075
  9,635
  10,217
  10,824
  11,458
  12,118
  12,808
  13,528
  14,279
  15,065
  15,887
  16,745
  17,644
  18,584
  19,568
  20,599
  21,679
Debt-to-equity ratio
  0.861
  1.150
  1.430
  1.670
  1.890
  2.080
  2.240
  2.390
  2.530
  2.650
  2.760
  2.860
  2.950
  3.040
  3.120
  3.190
  3.250
  3.320
  3.370
  3.430
  3.480
  3.520
  3.570
  3.610
  3.640
  3.680
  3.710
  3.750
  3.780
  3.810
  3.830
Adjusted equity ratio
  0.026
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  979
  656
  720
  787
  857
  930
  1,005
  1,084
  1,165
  1,250
  1,338
  1,524
  1,619
  1,718
  1,821
  1,928
  2,040
  2,157
  2,278
  2,405
  2,538
  2,676
  2,820
  2,971
  3,129
  3,293
  3,466
  3,647
  3,836
  4,034
  4,241
Depreciation, amort., depletion, $m
  238
  238
  249
  260
  271
  283
  296
  309
  322
  336
  351
  237
  253
  269
  286
  304
  322
  342
  362
  382
  404
  427
  451
  475
  501
  528
  557
  586
  617
  650
  684
Funds from operations, $m
  1,571
  894
  969
  1,047
  1,128
  1,213
  1,301
  1,392
  1,488
  1,586
  1,689
  1,761
  1,872
  1,987
  2,107
  2,232
  2,363
  2,498
  2,640
  2,788
  2,942
  3,103
  3,271
  3,446
  3,630
  3,822
  4,023
  4,233
  4,453
  4,683
  4,925
Change in working capital, $m
  170
  -122
  -127
  -133
  -138
  -144
  -150
  -156
  -162
  -168
  -175
  -182
  -189
  -197
  -205
  -213
  -222
  -231
  -241
  -251
  -262
  -274
  -286
  -299
  -313
  -327
  -342
  -358
  -375
  -392
  -411
Cash from operations, $m
  1,401
  1,169
  1,096
  1,180
  1,267
  1,357
  1,451
  1,548
  1,649
  1,755
  1,864
  1,943
  2,061
  2,184
  2,312
  2,445
  2,585
  2,730
  2,881
  3,039
  3,204
  3,376
  3,557
  3,745
  3,942
  4,149
  4,365
  4,591
  4,828
  5,076
  5,336
Maintenance CAPEX, $m
  0
  -100
  -110
  -121
  -132
  -143
  -155
  -168
  -180
  -194
  -208
  -222
  -237
  -253
  -269
  -286
  -304
  -322
  -342
  -362
  -382
  -404
  -427
  -451
  -475
  -501
  -528
  -557
  -586
  -617
  -650
New CAPEX, $m
  -522
  -91
  -97
  -101
  -106
  -110
  -114
  -119
  -124
  -128
  -133
  -139
  -144
  -150
  -156
  -162
  -169
  -176
  -184
  -192
  -200
  -209
  -218
  -228
  -238
  -249
  -261
  -273
  -286
  -299
  -313
Cash from investing activities, $m
  371
  -191
  -207
  -222
  -238
  -253
  -269
  -287
  -304
  -322
  -341
  -361
  -381
  -403
  -425
  -448
  -473
  -498
  -526
  -554
  -582
  -613
  -645
  -679
  -713
  -750
  -789
  -830
  -872
  -916
  -963
Free cash flow, $m
  1,772
  978
  889
  958
  1,030
  1,104
  1,182
  1,262
  1,346
  1,432
  1,523
  1,582
  1,679
  1,781
  1,887
  1,997
  2,111
  2,231
  2,356
  2,486
  2,622
  2,763
  2,912
  3,067
  3,229
  3,398
  3,576
  3,761
  3,956
  4,159
  4,372
Issuance/(repayment) of debt, $m
  500
  260
  272
  284
  296
  308
  320
  333
  346
  359
  374
  388
  404
  420
  437
  455
  474
  494
  515
  537
  560
  585
  611
  639
  668
  698
  731
  764
  800
  838
  878
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
  260
  272
  284
  296
  308
  320
  333
  346
  359
  374
  388
  404
  420
  437
  455
  474
  494
  515
  537
  560
  585
  611
  639
  668
  698
  731
  764
  800
  838
  878
Total cash flow (excl. dividends), $m
  148
  1,238
  1,161
  1,242
  1,325
  1,412
  1,502
  1,595
  1,691
  1,792
  1,896
  1,970
  2,083
  2,201
  2,324
  2,452
  2,585
  2,725
  2,870
  3,023
  3,182
  3,349
  3,523
  3,705
  3,896
  4,097
  4,306
  4,526
  4,756
  4,997
  5,250
Retained Cash Flow (-), $m
  1,171
  -60
  -63
  -65
  -68
  -71
  -74
  -77
  -80
  -83
  -86
  -89
  -93
  -97
  -101
  -105
  -109
  -114
  -118
  -124
  -129
  -135
  -141
  -147
  -154
  -161
  -168
  -176
  -184
  -193
  -202
Prev. year cash balance distribution, $m
 
  568
  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
 
  1,746
  1,099
  1,177
  1,257
  1,341
  1,428
  1,518
  1,612
  1,709
  1,810
  1,881
  1,990
  2,104
  2,223
  2,347
  2,476
  2,611
  2,752
  2,899
  3,053
  3,214
  3,382
  3,558
  3,743
  3,936
  4,138
  4,350
  4,572
  4,804
  5,048
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
 
  1,674
  1,006
  1,024
  1,035
  1,040
  1,036
  1,026
  1,007
  982
  949
  893
  849
  800
  746
  689
  629
  568
  507
  446
  388
  332
  281
  233
  191
  153
  121
  93
  71
  52
  38
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 37
Price to Sales 7.7
Price to Book 31.2
Price to Tangible Book
Price to Cash Flow 25.8
Price to Free Cash Flow 41.2
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 10.1% 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 9.2 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 -25.7%. 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 $35.9 billion.


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Stock chart of INTU Financial statements of INTU Annual reports 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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