Intrinsic value of Nordstrom - JWN

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$42.47

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$42.47

 
Intrinsic value

$67.77

 
Up/down potential

+60%

 
Rating

str. buy

 
Value-price divergence* premium content

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

We calculate the intrinsic value of JWN 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 2017), $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 7.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.22
  3.20
  3.38
  3.54
  3.69
  3.82
  3.94
  4.04
  4.14
  4.23
  4.30
  4.37
  4.44
  4.49
  4.54
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
Revenue, $m
  14,757
  15,229
  15,744
  16,302
  16,903
  17,548
  18,239
  18,977
  19,762
  20,597
  21,483
  22,423
  23,417
  24,469
  25,580
  26,754
  27,993
  29,299
  30,676
  32,127
  33,655
  35,264
  36,958
  38,740
  40,616
  42,588
  44,662
  46,844
  49,137
  51,547
  54,081
Variable operating expenses, $m
 
  14,071
  14,546
  15,060
  15,615
  16,210
  16,847
  17,528
  18,252
  19,022
  19,840
  20,682
  21,600
  22,570
  23,595
  24,678
  25,820
  27,025
  28,295
  29,633
  31,043
  32,527
  34,090
  35,734
  37,463
  39,283
  41,196
  43,208
  45,323
  47,547
  49,884
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
  13,952
  14,071
  14,546
  15,060
  15,615
  16,210
  16,847
  17,528
  18,252
  19,022
  19,840
  20,682
  21,600
  22,570
  23,595
  24,678
  25,820
  27,025
  28,295
  29,633
  31,043
  32,527
  34,090
  35,734
  37,463
  39,283
  41,196
  43,208
  45,323
  47,547
  49,884
Operating income, $m
  805
  1,158
  1,198
  1,241
  1,288
  1,338
  1,392
  1,449
  1,510
  1,575
  1,644
  1,740
  1,817
  1,899
  1,985
  2,076
  2,173
  2,274
  2,381
  2,493
  2,612
  2,737
  2,868
  3,007
  3,152
  3,305
  3,466
  3,636
  3,814
  4,001
  4,197
EBITDA, $m
  1,450
  1,798
  1,859
  1,925
  1,996
  2,072
  2,154
  2,241
  2,334
  2,432
  2,537
  2,648
  2,765
  2,889
  3,021
  3,159
  3,305
  3,460
  3,622
  3,794
  3,974
  4,164
  4,364
  4,575
  4,796
  5,029
  5,274
  5,531
  5,802
  6,087
  6,386
Interest expense (income), $m
  134
  133
  103
  113
  125
  137
  150
  164
  178
  194
  211
  229
  247
  267
  288
  311
  334
  359
  385
  413
  442
  473
  505
  539
  575
  612
  652
  693
  737
  783
  832
Earnings before tax, $m
  684
  1,026
  1,095
  1,128
  1,163
  1,201
  1,242
  1,286
  1,332
  1,381
  1,433
  1,512
  1,570
  1,632
  1,697
  1,766
  1,838
  1,915
  1,996
  2,081
  2,170
  2,264
  2,363
  2,468
  2,578
  2,693
  2,815
  2,942
  3,076
  3,218
  3,366
Tax expense, $m
  330
  277
  296
  305
  314
  324
  335
  347
  360
  373
  387
  408
  424
  441
  458
  477
  496
  517
  539
  562
  586
  611
  638
  666
  696
  727
  760
  794
  831
  869
  909
Net income, $m
  354
  749
  799
  823
  849
  877
  907
  938
  972
  1,008
  1,046
  1,104
  1,146
  1,191
  1,239
  1,289
  1,342
  1,398
  1,457
  1,519
  1,584
  1,653
  1,725
  1,801
  1,882
  1,966
  2,055
  2,148
  2,246
  2,349
  2,457

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,007
  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
  7,858
  7,070
  7,309
  7,568
  7,847
  8,147
  8,468
  8,810
  9,175
  9,562
  9,974
  10,410
  10,871
  11,360
  11,876
  12,421
  12,996
  13,602
  14,241
  14,915
  15,624
  16,372
  17,158
  17,985
  18,856
  19,772
  20,735
  21,747
  22,812
  23,931
  25,107
Adjusted assets (=assets-cash), $m
  6,851
  7,070
  7,309
  7,568
  7,847
  8,147
  8,468
  8,810
  9,175
  9,562
  9,974
  10,410
  10,871
  11,360
  11,876
  12,421
  12,996
  13,602
  14,241
  14,915
  15,624
  16,372
  17,158
  17,985
  18,856
  19,772
  20,735
  21,747
  22,812
  23,931
  25,107
Revenue / Adjusted assets
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
  2.154
Average production assets, $m
  3,816
  3,944
  4,078
  4,222
  4,378
  4,545
  4,724
  4,915
  5,118
  5,335
  5,564
  5,807
  6,065
  6,337
  6,625
  6,929
  7,250
  7,588
  7,945
  8,321
  8,717
  9,133
  9,572
  10,034
  10,519
  11,030
  11,568
  12,132
  12,726
  13,351
  14,007
Working capital, $m
  213
  -807
  -834
  -864
  -896
  -930
  -967
  -1,006
  -1,047
  -1,092
  -1,139
  -1,188
  -1,241
  -1,297
  -1,356
  -1,418
  -1,484
  -1,553
  -1,626
  -1,703
  -1,784
  -1,869
  -1,959
  -2,053
  -2,153
  -2,257
  -2,367
  -2,483
  -2,604
  -2,732
  -2,866
Total debt, $m
  2,774
  2,149
  2,364
  2,597
  2,848
  3,118
  3,407
  3,715
  4,043
  4,392
  4,762
  5,155
  5,570
  6,010
  6,474
  6,965
  7,482
  8,028
  8,603
  9,210
  9,848
  10,520
  11,228
  11,973
  12,756
  13,580
  14,447
  15,359
  16,317
  17,324
  18,383
Total liabilities, $m
  6,988
  6,363
  6,578
  6,811
  7,062
  7,332
  7,621
  7,929
  8,257
  8,606
  8,976
  9,369
  9,784
  10,224
  10,688
  11,179
  11,696
  12,242
  12,817
  13,424
  14,062
  14,734
  15,442
  16,187
  16,970
  17,794
  18,661
  19,573
  20,531
  21,538
  22,597
Total equity, $m
  870
  707
  731
  757
  785
  815
  847
  881
  917
  956
  997
  1,041
  1,087
  1,136
  1,188
  1,242
  1,300
  1,360
  1,424
  1,492
  1,562
  1,637
  1,716
  1,799
  1,886
  1,977
  2,073
  2,175
  2,281
  2,393
  2,511
Total liabilities and equity, $m
  7,858
  7,070
  7,309
  7,568
  7,847
  8,147
  8,468
  8,810
  9,174
  9,562
  9,973
  10,410
  10,871
  11,360
  11,876
  12,421
  12,996
  13,602
  14,241
  14,916
  15,624
  16,371
  17,158
  17,986
  18,856
  19,771
  20,734
  21,748
  22,812
  23,931
  25,108
Debt-to-equity ratio
  3.189
  3.040
  3.230
  3.430
  3.630
  3.830
  4.020
  4.220
  4.410
  4.590
  4.770
  4.950
  5.120
  5.290
  5.450
  5.610
  5.760
  5.900
  6.040
  6.170
  6.300
  6.430
  6.540
  6.660
  6.770
  6.870
  6.970
  7.060
  7.150
  7.240
  7.320
Adjusted equity ratio
  -0.020
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  354
  749
  799
  823
  849
  877
  907
  938
  972
  1,008
  1,046
  1,104
  1,146
  1,191
  1,239
  1,289
  1,342
  1,398
  1,457
  1,519
  1,584
  1,653
  1,725
  1,801
  1,882
  1,966
  2,055
  2,148
  2,246
  2,349
  2,457
Depreciation, amort., depletion, $m
  645
  640
  661
  684
  708
  734
  762
  792
  824
  857
  893
  907
  948
  990
  1,035
  1,083
  1,133
  1,186
  1,241
  1,300
  1,362
  1,427
  1,496
  1,568
  1,644
  1,723
  1,807
  1,896
  1,989
  2,086
  2,189
Funds from operations, $m
  2,105
  1,389
  1,460
  1,507
  1,557
  1,611
  1,669
  1,730
  1,796
  1,865
  1,939
  2,011
  2,094
  2,181
  2,274
  2,372
  2,475
  2,584
  2,698
  2,819
  2,946
  3,080
  3,221
  3,369
  3,525
  3,689
  3,862
  4,044
  4,234
  4,435
  4,646
Change in working capital, $m
  457
  -25
  -27
  -30
  -32
  -34
  -37
  -39
  -42
  -44
  -47
  -50
  -53
  -56
  -59
  -62
  -66
  -69
  -73
  -77
  -81
  -85
  -90
  -94
  -99
  -105
  -110
  -116
  -122
  -128
  -134
Cash from operations, $m
  1,648
  1,495
  1,488
  1,536
  1,589
  1,645
  1,705
  1,769
  1,837
  1,910
  1,986
  2,061
  2,147
  2,237
  2,333
  2,434
  2,540
  2,653
  2,771
  2,896
  3,027
  3,165
  3,311
  3,464
  3,625
  3,794
  3,972
  4,159
  4,356
  4,563
  4,780
Maintenance CAPEX, $m
  0
  -596
  -616
  -637
  -660
  -684
  -710
  -738
  -768
  -800
  -834
  -869
  -907
  -948
  -990
  -1,035
  -1,083
  -1,133
  -1,186
  -1,241
  -1,300
  -1,362
  -1,427
  -1,496
  -1,568
  -1,644
  -1,723
  -1,807
  -1,896
  -1,989
  -2,086
New CAPEX, $m
  -846
  -128
  -133
  -144
  -156
  -167
  -179
  -191
  -203
  -216
  -230
  -243
  -258
  -272
  -288
  -304
  -321
  -338
  -357
  -376
  -396
  -417
  -439
  -462
  -486
  -511
  -537
  -565
  -594
  -624
  -656
Cash from investing activities, $m
  -791
  -724
  -749
  -781
  -816
  -851
  -889
  -929
  -971
  -1,016
  -1,064
  -1,112
  -1,165
  -1,220
  -1,278
  -1,339
  -1,404
  -1,471
  -1,543
  -1,617
  -1,696
  -1,779
  -1,866
  -1,958
  -2,054
  -2,155
  -2,260
  -2,372
  -2,490
  -2,613
  -2,742
Free cash flow, $m
  857
  770
  738
  755
  774
  794
  816
  840
  866
  894
  923
  948
  982
  1,017
  1,055
  1,095
  1,137
  1,182
  1,229
  1,279
  1,331
  1,387
  1,445
  1,506
  1,571
  1,639
  1,711
  1,787
  1,866
  1,950
  2,038
Issuance/(repayment) of debt, $m
  -6
  -614
  215
  233
  251
  270
  289
  308
  328
  349
  370
  392
  416
  439
  464
  490
  518
  546
  575
  606
  639
  672
  708
  745
  784
  824
  867
  911
  958
  1,007
  1,059
Issuance/(repurchase) of shares, $m
  -194
  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  
  -189
  -614
  215
  233
  251
  270
  289
  308
  328
  349
  370
  392
  416
  439
  464
  490
  518
  546
  575
  606
  639
  672
  708
  745
  784
  824
  867
  911
  958
  1,007
  1,059
Total cash flow (excl. dividends), $m
  668
  156
  953
  988
  1,025
  1,064
  1,105
  1,148
  1,194
  1,242
  1,293
  1,341
  1,397
  1,457
  1,519
  1,585
  1,654
  1,727
  1,804
  1,885
  1,970
  2,059
  2,153
  2,251
  2,355
  2,464
  2,578
  2,698
  2,824
  2,957
  3,096
Retained Cash Flow (-), $m
  1
  -833
  -24
  -26
  -28
  -30
  -32
  -34
  -36
  -39
  -41
  -44
  -46
  -49
  -52
  -54
  -58
  -61
  -64
  -67
  -71
  -75
  -79
  -83
  -87
  -92
  -96
  -101
  -106
  -112
  -118
Prev. year cash balance distribution, $m
 
  996
  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
 
  319
  929
  962
  997
  1,034
  1,073
  1,114
  1,158
  1,204
  1,252
  1,297
  1,351
  1,408
  1,468
  1,531
  1,597
  1,667
  1,740
  1,817
  1,899
  1,984
  2,074
  2,168
  2,268
  2,372
  2,482
  2,597
  2,718
  2,845
  2,979
Discount rate, %
 
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
 
  304
  840
  822
  799
  774
  745
  714
  679
  642
  602
  557
  514
  470
  426
  382
  338
  296
  256
  219
  184
  152
  124
  100
  78
  61
  46
  34
  25
  17
  12
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

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for men, women, and children in the United States and Canada. It operates through two segments, Retail and Credit. The Retail segment offers a selection of brand name and private label merchandise through various channels, including Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; and other retail channels, including Trunk Club showrooms and TrunkClub.com, Jeffrey boutiques, and clearance store that operates under the name Last Chance. The Credit segment operates Nordstrom fsb, a federal savings bank, which provides a private label credit card, two Nordstrom VISA credit cards, and a debit card. Its credit and debit cards feature a shopping-based loyalty program. As of February 15, 2017, the company operated 349 stores in 40 states, including 123 full-line stores in the United States, Canada, and Puerto Rico; 215 Nordstrom Rack stores; 2 Jeffrey boutiques; and 2 clearance stores. Nordstrom, Inc. also sells its products through catalogs. The company was founded in 1901 and is based in Seattle, Washington.

FINANCIAL RATIOS  of  Nordstrom (JWN)

Valuation Ratios
P/E Ratio 20.4
Price to Sales 0.5
Price to Book 8.3
Price to Tangible Book
Price to Cash Flow 4.4
Price to Free Cash Flow 9
Growth Rates
Sales Growth Rate 2.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -21.8%
Cap. Spend. - 3 Yr. Gr. Rate 1%
Financial Strength
Quick Ratio 92
Current Ratio 0
LT Debt to Equity 317.6%
Total Debt to Equity 318.9%
Interest Coverage 6
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 7.5%
Return On Total Capital 9.7%
Ret/ On T. Cap. - 3 Yr. Avg. 12%
Return On Equity 40.7%
Return On Equity - 3 Yr. Avg. 36.3%
Asset Turnover 1.9
Profitability Ratios
Gross Margin 36%
Gross Margin - 3 Yr. Avg. 36.8%
EBITDA Margin 9.9%
EBITDA Margin - 3 Yr. Avg. 11.8%
Operating Margin 5.5%
Oper. Margin - 3 Yr. Avg. 7.6%
Pre-Tax Margin 4.6%
Pre-Tax Margin - 3 Yr. Avg. 6.7%
Net Profit Margin 2.4%
Net Profit Margin - 3 Yr. Avg. 4%
Effective Tax Rate 48.2%
Eff/ Tax Rate - 3 Yr. Avg. 42%
Payout Ratio 72.3%

JWN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JWN stock intrinsic value calculation we used $14757 million for the last fiscal year's total revenue generated by Nordstrom. The default revenue input number comes from 2017 income statement of Nordstrom. 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 JWN stock valuation model: a) initial revenue growth rate of 3.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.9%, whose default value for JWN is calculated based on our internal credit rating of Nordstrom, 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 Nordstrom.
    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 JWN stock the variable cost ratio is equal to 92.4%.

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 JWN 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 4.8% for Nordstrom.

Corporate tax rate of 27% is the nominal tax rate for Nordstrom. 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 JWN 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 JWN are equal to 25.9%.

Life of production assets of 6.4 years is the average useful life of capital assets used in Nordstrom 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 JWN is equal to -5.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $870 million for Nordstrom - 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 165.789 million for Nordstrom 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 Nordstrom at the current share price and the inputted number of shares is $7.0 billion.


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COMPANY NEWS

▶ Nordstrom taps tech veteran for empty board of directors seat   [May-22-17 06:20PM  American City Business Journals]
▶ [$$] Who's Afraid of Amazon? 9 Surprising Winners   [May-21-17 12:01AM  Barrons.com]
▶ America is facing a denim crisis that must be stopped   [May-19-17 10:37AM  Business Insider]
▶ Nordstrom: Weakness in Seattle   [May-17-17 09:55AM  TheStreet.com]
▶ Retail Stocks for the Clearance Rack   [May-16-17 06:16PM  Zacks]
▶ Cramer: Some Retail Stocks Are Oversold   [07:01PM  TheStreet.com]
▶ What Drove Nordstroms Earnings in Fiscal 1Q17   [05:35PM  Market Realist]
▶ Company News for May 15, 2017   [10:40AM  Zacks]
▶ The Day Retail Died: Contagion   [06:00AM  Investopedia]
▶ [$$] US retail sector's misery - in charts   [08:05AM  Financial Times]
▶ S&P 500 Falls 0.3% for the Week   [May-12-17 10:49PM  The Wall Street Journal]
▶ What Happened in the Stock Market Today   [05:10PM  Motley Fool]
▶ The Biggest Loser: Nordstrom Tumbles 11%   [04:56PM  Barrons.com]
▶ Nordstrom is 'best-of-breed'   [02:12PM  Business Insider]
▶ Macys Sales Fall for Yet Another Quarter   [01:36PM  Market Realist]
▶ Why Nordstrom Inc. Stock Fell Again Today   [12:37PM  Motley Fool]
▶ Retail Struggles While Consumers See a Rebound   [11:39AM  Bloomberg Video]
▶ Nordstrom: Silver Linings? Who Cares   [10:59AM  Barrons.com]
▶ Bloodbath for Retail Stocks Rolls On   [10:46AM  The Wall Street Journal]
▶ Retail wreck rolls on   [10:02AM  CNBC Videos]
▶ Retail And E-Commerce News And Stocks To Watch   [09:15AM  Investor's Business Daily]
▶ We have too many places to shop: Cramer   [09:05AM  CNBC Videos]
▶ [$$] Amid Retail Funk, Macys Says Were Not Dead   [12:20AM  The Wall Street Journal]
▶ Asian stocks mostly lower as Trump uncertainty weighs   [May-11-17 11:50PM  Associated Press]
▶ [$$] Amid Retail Funk, Macy's Says 'We're Not Dead'   [06:10PM  The Wall Street Journal]
▶ The Shift Behind Consumer Spending   [06:02PM  Bloomberg Video]
▶ Nordstrom Reports Q1 Earnings   [05:15PM  TheStreet.com]
Stock chart of JWN Financial statements of JWN Annual reports of JWN
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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