Intrinsic value of Jones Lang LaSalle - JLL

Previous Close

$122.13

  Intrinsic Value

$574.65

stock screener

  Rating & Target

str. buy

+371%

  Value-price divergence*

+77%

Previous close

$122.13

 
Intrinsic value

$574.65

 
Up/down potential

+371%

 
Rating

str. buy

 
Value-price divergence*

+77%

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

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

We calculate the intrinsic value of JLL 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 5.5

 

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, %
  14.05
  20.80
  19.22
  17.80
  16.52
  15.37
  14.33
  13.40
  12.56
  11.80
  11.12
  10.51
  9.96
  9.46
  9.02
  8.61
  8.25
  7.93
  7.63
  7.37
  7.13
  6.92
  6.73
  6.56
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
Revenue, $m
  6,804
  8,219
  9,799
  11,543
  13,450
  15,516
  17,740
  20,116
  22,642
  25,315
  28,130
  31,086
  34,182
  37,416
  40,790
  44,303
  47,960
  51,762
  55,714
  59,821
  64,089
  68,524
  73,135
  77,930
  82,918
  88,109
  93,513
  99,144
  105,012
  111,131
  117,514
Variable operating expenses, $m
 
  7,434
  8,813
  10,336
  12,001
  13,805
  15,747
  17,821
  20,027
  22,360
  24,818
  27,141
  29,844
  32,668
  35,613
  38,681
  41,874
  45,193
  48,644
  52,229
  55,956
  59,828
  63,854
  68,040
  72,395
  76,927
  81,646
  86,562
  91,685
  97,028
  102,601
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
  6,363
  7,434
  8,813
  10,336
  12,001
  13,805
  15,747
  17,821
  20,027
  22,360
  24,818
  27,141
  29,844
  32,668
  35,613
  38,681
  41,874
  45,193
  48,644
  52,229
  55,956
  59,828
  63,854
  68,040
  72,395
  76,927
  81,646
  86,562
  91,685
  97,028
  102,601
Operating income, $m
  441
  785
  986
  1,207
  1,449
  1,711
  1,993
  2,295
  2,616
  2,955
  3,312
  3,945
  4,338
  4,748
  5,176
  5,622
  6,086
  6,569
  7,070
  7,592
  8,133
  8,696
  9,281
  9,890
  10,523
  11,181
  11,867
  12,582
  13,326
  14,103
  14,913
EBITDA, $m
  583
  1,083
  1,291
  1,521
  1,773
  2,045
  2,338
  2,651
  2,984
  3,336
  3,707
  4,097
  4,505
  4,931
  5,376
  5,839
  6,321
  6,822
  7,342
  7,884
  8,446
  9,031
  9,638
  10,270
  10,928
  11,612
  12,324
  13,066
  13,839
  14,646
  15,487
Interest expense (income), $m
  35
  45
  82
  124
  170
  221
  276
  335
  398
  465
  535
  610
  689
  771
  856
  946
  1,039
  1,136
  1,237
  1,341
  1,450
  1,564
  1,681
  1,803
  1,931
  2,063
  2,200
  2,344
  2,493
  2,649
  2,811
Earnings before tax, $m
  442
  740
  903
  1,083
  1,279
  1,490
  1,718
  1,960
  2,218
  2,490
  2,776
  3,335
  3,649
  3,978
  4,320
  4,677
  5,047
  5,433
  5,834
  6,250
  6,683
  7,133
  7,600
  8,086
  8,592
  9,119
  9,667
  10,238
  10,833
  11,454
  12,102
Tax expense, $m
  108
  200
  244
  292
  345
  402
  464
  529
  599
  672
  750
  900
  985
  1,074
  1,166
  1,263
  1,363
  1,467
  1,575
  1,688
  1,804
  1,926
  2,052
  2,183
  2,320
  2,462
  2,610
  2,764
  2,925
  3,093
  3,268
Net income, $m
  318
  540
  659
  790
  933
  1,088
  1,254
  1,431
  1,619
  1,818
  2,027
  2,434
  2,664
  2,904
  3,154
  3,414
  3,685
  3,966
  4,259
  4,563
  4,878
  5,207
  5,548
  5,903
  6,272
  6,657
  7,057
  7,474
  7,908
  8,362
  8,835

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  259
  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
  7,629
  8,905
  10,616
  12,506
  14,572
  16,811
  19,220
  21,795
  24,531
  27,426
  30,477
  33,679
  37,033
  40,538
  44,192
  47,999
  51,961
  56,080
  60,362
  64,811
  69,435
  74,241
  79,236
  84,431
  89,835
  95,459
  101,315
  107,415
  113,772
  120,402
  127,318
Adjusted assets (=assets-cash), $m
  7,370
  8,905
  10,616
  12,506
  14,572
  16,811
  19,220
  21,795
  24,531
  27,426
  30,477
  33,679
  37,033
  40,538
  44,192
  47,999
  51,961
  56,080
  60,362
  64,811
  69,435
  74,241
  79,236
  84,431
  89,835
  95,459
  101,315
  107,415
  113,772
  120,402
  127,318
Revenue / Adjusted assets
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
  0.923
Average production assets, $m
  724
  871
  1,039
  1,224
  1,426
  1,645
  1,880
  2,132
  2,400
  2,683
  2,982
  3,295
  3,623
  3,966
  4,324
  4,696
  5,084
  5,487
  5,906
  6,341
  6,793
  7,264
  7,752
  8,261
  8,789
  9,340
  9,912
  10,509
  11,131
  11,780
  12,457
Working capital, $m
  334
  197
  235
  277
  323
  372
  426
  483
  543
  608
  675
  746
  820
  898
  979
  1,063
  1,151
  1,242
  1,337
  1,436
  1,538
  1,645
  1,755
  1,870
  1,990
  2,115
  2,244
  2,379
  2,520
  2,667
  2,820
Total debt, $m
  1,268
  2,164
  3,266
  4,483
  5,813
  7,255
  8,807
  10,465
  12,227
  14,092
  16,056
  18,119
  20,278
  22,535
  24,889
  27,341
  29,892
  32,545
  35,302
  38,168
  41,145
  44,240
  47,457
  50,803
  54,283
  57,905
  61,676
  65,604
  69,698
  73,968
  78,422
Total liabilities, $m
  4,840
  5,735
  6,837
  8,054
  9,384
  10,826
  12,378
  14,036
  15,798
  17,663
  19,627
  21,690
  23,849
  26,106
  28,460
  30,912
  33,463
  36,116
  38,873
  41,739
  44,716
  47,811
  51,028
  54,374
  57,854
  61,476
  65,247
  69,175
  73,269
  77,539
  81,993
Total equity, $m
  2,790
  3,170
  3,779
  4,452
  5,188
  5,985
  6,842
  7,759
  8,733
  9,764
  10,850
  11,990
  13,184
  14,431
  15,733
  17,088
  18,498
  19,965
  21,489
  23,073
  24,719
  26,430
  28,208
  30,057
  31,981
  33,983
  36,068
  38,240
  40,503
  42,863
  45,325
Total liabilities and equity, $m
  7,630
  8,905
  10,616
  12,506
  14,572
  16,811
  19,220
  21,795
  24,531
  27,427
  30,477
  33,680
  37,033
  40,537
  44,193
  48,000
  51,961
  56,081
  60,362
  64,812
  69,435
  74,241
  79,236
  84,431
  89,835
  95,459
  101,315
  107,415
  113,772
  120,402
  127,318
Debt-to-equity ratio
  0.454
  0.680
  0.860
  1.010
  1.120
  1.210
  1.290
  1.350
  1.400
  1.440
  1.480
  1.510
  1.540
  1.560
  1.580
  1.600
  1.620
  1.630
  1.640
  1.650
  1.660
  1.670
  1.680
  1.690
  1.700
  1.700
  1.710
  1.720
  1.720
  1.730
  1.730
Adjusted equity ratio
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356
  0.356

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  318
  540
  659
  790
  933
  1,088
  1,254
  1,431
  1,619
  1,818
  2,027
  2,434
  2,664
  2,904
  3,154
  3,414
  3,685
  3,966
  4,259
  4,563
  4,878
  5,207
  5,548
  5,903
  6,272
  6,657
  7,057
  7,474
  7,908
  8,362
  8,835
Depreciation, amort., depletion, $m
  142
  298
  306
  314
  324
  334
  345
  356
  369
  382
  395
  152
  167
  183
  199
  216
  234
  253
  272
  292
  313
  335
  357
  381
  405
  430
  457
  484
  513
  543
  574
Funds from operations, $m
  -88
  839
  965
  1,105
  1,257
  1,422
  1,598
  1,787
  1,988
  2,199
  2,422
  2,586
  2,831
  3,086
  3,353
  3,630
  3,919
  4,219
  4,531
  4,855
  5,191
  5,541
  5,905
  6,284
  6,677
  7,087
  7,514
  7,958
  8,421
  8,905
  9,409
Change in working capital, $m
  -303
  34
  38
  42
  46
  50
  53
  57
  61
  64
  68
  71
  74
  78
  81
  84
  88
  91
  95
  99
  102
  106
  111
  115
  120
  125
  130
  135
  141
  147
  153
Cash from operations, $m
  215
  805
  927
  1,063
  1,211
  1,372
  1,545
  1,730
  1,927
  2,135
  2,355
  2,515
  2,757
  3,009
  3,272
  3,546
  3,831
  4,128
  4,436
  4,756
  5,089
  5,435
  5,795
  6,169
  6,558
  6,962
  7,384
  7,823
  8,281
  8,758
  9,256
Maintenance CAPEX, $m
  0
  -33
  -40
  -48
  -56
  -66
  -76
  -87
  -98
  -111
  -124
  -137
  -152
  -167
  -183
  -199
  -216
  -234
  -253
  -272
  -292
  -313
  -335
  -357
  -381
  -405
  -430
  -457
  -484
  -513
  -543
New CAPEX, $m
  -316
  -148
  -167
  -185
  -202
  -219
  -236
  -252
  -268
  -283
  -298
  -313
  -328
  -343
  -358
  -372
  -388
  -403
  -419
  -435
  -452
  -470
  -489
  -508
  -529
  -550
  -573
  -597
  -622
  -649
  -677
Cash from investing activities, $m
  -802
  -181
  -207
  -233
  -258
  -285
  -312
  -339
  -366
  -394
  -422
  -450
  -480
  -510
  -541
  -571
  -604
  -637
  -672
  -707
  -744
  -783
  -824
  -865
  -910
  -955
  -1,003
  -1,054
  -1,106
  -1,162
  -1,220
Free cash flow, $m
  -587
  623
  720
  830
  953
  1,087
  1,234
  1,392
  1,561
  1,741
  1,932
  2,065
  2,277
  2,499
  2,732
  2,974
  3,227
  3,490
  3,764
  4,049
  4,344
  4,652
  4,971
  5,303
  5,648
  6,007
  6,381
  6,769
  7,174
  7,596
  8,036
Issuance/(repayment) of debt, $m
  689
  986
  1,102
  1,217
  1,330
  1,442
  1,551
  1,658
  1,762
  1,864
  1,964
  2,063
  2,160
  2,257
  2,354
  2,452
  2,551
  2,653
  2,757
  2,866
  2,978
  3,095
  3,217
  3,345
  3,480
  3,622
  3,771
  3,928
  4,094
  4,269
  4,454
Issuance/(repurchase) of shares, $m
  -4
  9
  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  
  665
  995
  1,102
  1,217
  1,330
  1,442
  1,551
  1,658
  1,762
  1,864
  1,964
  2,063
  2,160
  2,257
  2,354
  2,452
  2,551
  2,653
  2,757
  2,866
  2,978
  3,095
  3,217
  3,345
  3,480
  3,622
  3,771
  3,928
  4,094
  4,269
  4,454
Total cash flow (excl. dividends), $m
  71
  1,618
  1,822
  2,047
  2,283
  2,529
  2,785
  3,050
  3,323
  3,606
  3,897
  4,127
  4,437
  4,756
  5,085
  5,426
  5,778
  6,143
  6,522
  6,914
  7,322
  7,747
  8,188
  8,648
  9,128
  9,629
  10,152
  10,698
  11,269
  11,865
  12,490
Retained Cash Flow (-), $m
  -101
  -549
  -609
  -673
  -735
  -797
  -858
  -917
  -974
  -1,031
  -1,086
  -1,140
  -1,194
  -1,248
  -1,301
  -1,355
  -1,410
  -1,466
  -1,524
  -1,584
  -1,646
  -1,711
  -1,778
  -1,849
  -1,924
  -2,002
  -2,085
  -2,172
  -2,263
  -2,360
  -2,462
Prev. year cash balance distribution, $m
 
  169
  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
 
  1,238
  1,213
  1,374
  1,548
  1,732
  1,927
  2,133
  2,349
  2,575
  2,811
  2,987
  3,243
  3,508
  3,784
  4,071
  4,368
  4,677
  4,997
  5,330
  5,676
  6,036
  6,410
  6,799
  7,205
  7,627
  8,067
  8,526
  9,005
  9,505
  10,028
Discount rate, %
 
  4.60
  4.83
  5.07
  5.33
  5.59
  5.87
  6.16
  6.47
  6.80
  7.14
  7.49
  7.87
  8.26
  8.67
  9.11
  9.56
  10.04
  10.54
  11.07
  11.62
  12.21
  12.82
  13.46
  14.13
  14.84
  15.58
  16.36
  17.17
  18.03
  18.93
PV of cash for distribution, $m
 
  1,183
  1,103
  1,185
  1,258
  1,320
  1,369
  1,403
  1,422
  1,425
  1,411
  1,349
  1,307
  1,250
  1,181
  1,101
  1,013
  919
  823
  725
  629
  538
  452
  373
  302
  240
  187
  143
  106
  78
  55
Current shareholders' claim on cash, %
  100
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8

Jones Lang LaSalle Incorporated, a financial and professional services company, provides commercial real estate and investment management services worldwide. It offers a range of real estate services, including agency leasing, project and development management/construction, capital markets, property management, corporate finance, real estate investment banking/merchant banking, energy and sustainability services, research, facility management outsourcing, strategic consulting, technology solutions, advisory services, investment management, tenant representation, lease administration, transaction management, logistics and supply-chain management, valuations, mortgage origination and servicing, and value recovery and receivership services. The company also provides investment management services to institutional and retail investors, including high-net-worth individuals. It offers its services to real estate owners, occupiers, investors, and developers for various property types, including cultural, educational, government, healthcare, laboratory, hotel, hospitality, and sports facilities; industrial, warehouse, office, residential, and retail properties; critical environments, data, and transportation centers; infrastructure projects; military housing; and shopping malls. The company was formerly known as LaSalle Partners Incorporated and changed its name to Jones Lang LaSalle Incorporated in March 1999. Jones Lang LaSalle Incorporated was founded in 1997 and is headquartered in Chicago, Illinois.

FINANCIAL RATIOS  of  Jones Lang LaSalle (JLL)

Valuation Ratios
P/E Ratio 17.4
Price to Sales 0.8
Price to Book 2
Price to Tangible Book
Price to Cash Flow 25.7
Price to Free Cash Flow -54.7
Growth Rates
Sales Growth Rate 14%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 112.1%
Cap. Spend. - 3 Yr. Gr. Rate 23.3%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 42.2%
Total Debt to Equity 45.4%
Interest Coverage 14
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 7.1%
Return On Total Capital 8.7%
Ret/ On T. Cap. - 3 Yr. Avg. 12.7%
Return On Equity 11.6%
Return On Equity - 3 Yr. Avg. 15.3%
Asset Turnover 1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 9.1%
EBITDA Margin - 3 Yr. Avg. 10.7%
Operating Margin 6.5%
Oper. Margin - 3 Yr. Avg. 8%
Pre-Tax Margin 6.5%
Pre-Tax Margin - 3 Yr. Avg. 8.4%
Net Profit Margin 4.7%
Net Profit Margin - 3 Yr. Avg. 6.4%
Effective Tax Rate 24.4%
Eff/ Tax Rate - 3 Yr. Avg. 22.5%
Payout Ratio 9.1%

JLL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JLL stock intrinsic value calculation we used $6804 million for the last fiscal year's total revenue generated by Jones Lang LaSalle. The default revenue input number comes from 2016 income statement of Jones Lang LaSalle. 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 JLL stock valuation model: a) initial revenue growth rate of 20.8% 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 4.6%, whose default value for JLL is calculated based on our internal credit rating of Jones Lang LaSalle, 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 Jones Lang LaSalle.
    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 JLL stock the variable cost ratio is equal to 91.1%.

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 JLL 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 3.8% for Jones Lang LaSalle.

Corporate tax rate of 27% is the nominal tax rate for Jones Lang LaSalle. 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 JLL 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 JLL are equal to 10.6%.

Life of production assets of 21.7 years is the average useful life of capital assets used in Jones Lang LaSalle 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 JLL is equal to 2.4%. 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 - $2790 million for Jones Lang LaSalle - 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 45.095 million for Jones Lang LaSalle 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 Jones Lang LaSalle at the current share price and the inputted number of shares is $5.5 billion.

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COMPANY NEWS

▶ JLL Selects Exari for Document Automation   [Aug-15-17 09:00AM  PR Newswire]
▶ Jones Lang LaSalle: Revenue Grows, Earnings to Follow   [Aug-03-17 11:14PM  Motley Fool]
▶ Jones Lang LaSalle beats 2Q profit forecasts   [Aug-02-17 09:41PM  Associated Press]
▶ JLL Reports Strong Second-Quarter 2017   [07:30AM  PR Newswire]
▶ JLL announces 2016 sustainability milestones   [Jul-28-17 08:00AM  PR Newswire]
▶ Here are the top commercial real estate management firms in Phoenix   [03:50AM  American City Business Journals]
▶ JLL report: Office rents in Charlotte's center city pushing past $30 per square foot   [Jul-24-17 01:30PM  American City Business Journals]
▶ [$$] Blackstone warns of internet impact on US shopping malls   [Jul-16-17 11:03PM  Financial Times]
▶ JLL starts new S.F.-based venture to expand tech tools for real estate   [Jul-10-17 02:36PM  American City Business Journals]
▶ Portfolio sale includes acquisitions at LakePointe, Edgewater office parks   [Jul-05-17 02:51PM  American City Business Journals]
▶ JLL Issues 350 Million of Senior Unsecured Notes   [Jun-29-17 05:00PM  PR Newswire]
▶ On the market: 81 acres near Tupperware HQ in Kissimmee   [Jun-26-17 03:05PM  American City Business Journals]
▶ The workplace should be a human experience   [Jun-22-17 12:44PM  PR Newswire]
▶ Downtown Houston tower refinanced for $163.5M while 50 percent leased   [Jun-20-17 01:25PM  American City Business Journals]
▶ [$$] Agents fear for their role in commercial property market   [Jun-14-17 10:13AM  Financial Times]
▶ JLL among biggest movers up Fortune 500   [Jun-09-17 11:39AM  PR Newswire]
▶ Medieval Times to nearly double its DFW headquarters with relocation in Irving   [Jun-08-17 01:05PM  American City Business Journals]
▶ ICM Realty Group renovating, rebranding SouthPark office building   [Jun-02-17 11:10AM  American City Business Journals]
▶ On the market: Downtowns Church Street Station North seeks best offer   [May-26-17 03:55PM  American City Business Journals]
▶ Verizon Wireless expands into larger call center, plans 100-300 new jobs in Charlotte   [May-25-17 02:30PM  American City Business Journals]
▶ Top 10 affordable locations for retail stores   [May-22-17 10:00AM  PR Newswire]
▶ THE LIST: Charlotte's largest commercial property management companies   [07:10AM  American City Business Journals]
▶ JLL named to LinkedIn's Top Companies list   [May-18-17 03:17PM  PR Newswire]
▶ Brookfield buys big with TA Realty portfolios   [May-17-17 01:40PM  PR Newswire]
▶ Sneak peek of The List: These are Louisville's largest commercial real estate brokers   [May-12-17 02:35PM  American City Business Journals]
▶ Jones Lang LaSalle's Odd Quarter   [May-09-17 08:20AM  Motley Fool]
▶ AvidXchange is ready to move into its new headquarters at the Music Factory (PHOTOS)   [May-08-17 09:37AM  American City Business Journals]
▶ Jones Lang LaSalle beats 1Q profit forecasts   [May-05-17 07:42AM  Associated Press]
▶ BY THE NUMBERS: Central Ohio industrial market cools after record year   [May-03-17 04:20PM  American City Business Journals]
▶ Cresa recruits Olson back from JLL, opens Fort Lauderdale office   [May-02-17 05:50PM  American City Business Journals]
▶ Several new deals signed at Coliseum Centre in airport submarket   [May-01-17 07:25AM  American City Business Journals]
▶ BY THE NUMBERS: Central Ohio office market strong, but some warn of softening   [Apr-28-17 01:10PM  American City Business Journals]
▶ JLL: More than half of spec development in Charlotte accounted for   [Apr-25-17 02:25PM  American City Business Journals]
▶ Pharmacy group starts division HQ campus in Carrollton with plans to employ 3,000   [Apr-20-17 02:25PM  American City Business Journals]
▶ Here are the winners for this year's Best Places to Work   [Apr-19-17 12:31PM  American City Business Journals]
▶ Houston's JLL names new disposition team   [Apr-18-17 09:05AM  American City Business Journals]
▶ Monuments or water views: Which drives D.C. office rents more?   [Apr-17-17 01:03PM  American City Business Journals]
▶ Bank of America signs lease in new downtown tower, kicking off construction   [Apr-12-17 05:05PM  American City Business Journals]
▶ [$$] Jones Lang LaSalle: Soon to Be a Hot Property   [Apr-08-17 12:34AM  Barrons.com]
▶ New high-rise residential development slated for downtown Phoenix   [Apr-03-17 10:20AM  at bizjournals.com]
▶ New high-rise residential development slated for downtown Phoenix   [10:20AM  American City Business Journals]
▶ JLL CEO Says 'Resilient' London Is Top Real Estate Market   [Mar-22-17 01:38PM  Bloomberg Video]
▶ Renaissance for Renaissance Square? JLL picks up Tempe leasing deal   [06:49PM  American City Business Journals]
Stock chart of JLL Financial statements of JLL
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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