Intrinsic value of LifePoint Health - LPNT

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$60.85

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$60.85

 
Intrinsic value

$85.48

 
Up/down potential

+40%

 
Rating

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 LPNT 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 2.4

 

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, %
  22.06
  17.10
  15.89
  14.80
  13.82
  12.94
  12.14
  11.43
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.63
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
Revenue, $m
  6,364
  7,452
  8,636
  9,915
  11,285
  12,745
  14,293
  15,927
  17,645
  19,446
  21,330
  23,296
  25,346
  27,479
  29,698
  32,005
  34,403
  36,895
  39,484
  42,175
  44,973
  47,884
  50,912
  54,064
  57,347
  60,768
  64,334
  68,054
  71,935
  75,987
  80,220
Variable operating expenses, $m
 
  6,997
  8,081
  9,250
  10,504
  11,840
  13,257
  14,752
  16,324
  17,972
  19,696
  21,318
  23,193
  25,145
  27,176
  29,287
  31,481
  33,761
  36,130
  38,593
  41,153
  43,816
  46,587
  49,472
  52,476
  55,606
  58,870
  62,273
  65,825
  69,533
  73,406
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
  6,159
  6,997
  8,081
  9,250
  10,504
  11,840
  13,257
  14,752
  16,324
  17,972
  19,696
  21,318
  23,193
  25,145
  27,176
  29,287
  31,481
  33,761
  36,130
  38,593
  41,153
  43,816
  46,587
  49,472
  52,476
  55,606
  58,870
  62,273
  65,825
  69,533
  73,406
Operating income, $m
  205
  455
  556
  664
  781
  905
  1,036
  1,175
  1,321
  1,474
  1,634
  1,979
  2,153
  2,334
  2,523
  2,718
  2,922
  3,134
  3,354
  3,582
  3,820
  4,067
  4,324
  4,592
  4,871
  5,162
  5,464
  5,780
  6,110
  6,454
  6,814
EBITDA, $m
  560
  892
  1,033
  1,186
  1,350
  1,525
  1,710
  1,906
  2,112
  2,327
  2,553
  2,788
  3,033
  3,288
  3,554
  3,830
  4,117
  4,415
  4,725
  5,047
  5,382
  5,730
  6,092
  6,470
  6,863
  7,272
  7,699
  8,144
  8,608
  9,093
  9,600
Interest expense (income), $m
  139
  145
  180
  218
  260
  304
  351
  401
  454
  510
  568
  629
  693
  759
  828
  900
  974
  1,052
  1,133
  1,216
  1,303
  1,394
  1,488
  1,586
  1,688
  1,794
  1,905
  2,020
  2,141
  2,266
  2,397
Earnings before tax, $m
  205
  311
  376
  446
  521
  601
  685
  774
  867
  964
  1,066
  1,350
  1,460
  1,575
  1,695
  1,819
  1,948
  2,082
  2,221
  2,366
  2,517
  2,673
  2,836
  3,006
  3,183
  3,367
  3,559
  3,760
  3,969
  4,188
  4,416
Tax expense, $m
  73
  84
  101
  120
  141
  162
  185
  209
  234
  260
  288
  364
  394
  425
  458
  491
  526
  562
  600
  639
  679
  722
  766
  812
  859
  909
  961
  1,015
  1,072
  1,131
  1,192
Net income, $m
  122
  227
  274
  326
  380
  439
  500
  565
  633
  704
  778
  985
  1,066
  1,150
  1,237
  1,328
  1,422
  1,520
  1,621
  1,727
  1,837
  1,951
  2,070
  2,194
  2,324
  2,458
  2,598
  2,745
  2,898
  3,057
  3,224

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  96
  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
  6,319
  7,285
  8,442
  9,692
  11,031
  12,459
  13,972
  15,569
  17,248
  19,009
  20,850
  22,773
  24,776
  26,862
  29,031
  31,286
  33,630
  36,065
  38,596
  41,227
  43,962
  46,807
  49,767
  52,848
  56,058
  59,401
  62,888
  66,524
  70,318
  74,279
  78,416
Adjusted assets (=assets-cash), $m
  6,223
  7,285
  8,442
  9,692
  11,031
  12,459
  13,972
  15,569
  17,248
  19,009
  20,850
  22,773
  24,776
  26,862
  29,031
  31,286
  33,630
  36,065
  38,596
  41,227
  43,962
  46,807
  49,767
  52,848
  56,058
  59,401
  62,888
  66,524
  70,318
  74,279
  78,416
Revenue / Adjusted assets
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
Average production assets, $m
  2,850
  3,339
  3,869
  4,442
  5,056
  5,710
  6,403
  7,135
  7,905
  8,712
  9,556
  10,437
  11,355
  12,311
  13,305
  14,338
  15,413
  16,529
  17,689
  18,894
  20,148
  21,452
  22,808
  24,221
  25,691
  27,224
  28,822
  30,488
  32,227
  34,042
  35,939
Working capital, $m
  527
  529
  613
  704
  801
  905
  1,015
  1,131
  1,253
  1,381
  1,514
  1,654
  1,800
  1,951
  2,109
  2,272
  2,443
  2,620
  2,803
  2,994
  3,193
  3,400
  3,615
  3,839
  4,072
  4,315
  4,568
  4,832
  5,107
  5,395
  5,696
Total debt, $m
  2,914
  3,597
  4,364
  5,191
  6,078
  7,023
  8,024
  9,081
  10,193
  11,359
  12,578
  13,851
  15,177
  16,557
  17,993
  19,486
  21,038
  22,650
  24,326
  26,067
  27,878
  29,761
  31,721
  33,761
  35,885
  38,099
  40,407
  42,814
  45,325
  47,948
  50,687
Total liabilities, $m
  4,139
  4,822
  5,589
  6,416
  7,303
  8,248
  9,249
  10,306
  11,418
  12,584
  13,803
  15,076
  16,402
  17,782
  19,218
  20,711
  22,263
  23,875
  25,551
  27,292
  29,103
  30,986
  32,946
  34,986
  37,110
  39,324
  41,632
  44,039
  46,550
  49,173
  51,912
Total equity, $m
  2,180
  2,462
  2,853
  3,276
  3,729
  4,211
  4,722
  5,262
  5,830
  6,425
  7,047
  7,697
  8,374
  9,079
  9,812
  10,575
  11,367
  12,190
  13,046
  13,935
  14,859
  15,821
  16,821
  17,863
  18,947
  20,078
  21,256
  22,485
  23,767
  25,106
  26,505
Total liabilities and equity, $m
  6,319
  7,284
  8,442
  9,692
  11,032
  12,459
  13,971
  15,568
  17,248
  19,009
  20,850
  22,773
  24,776
  26,861
  29,030
  31,286
  33,630
  36,065
  38,597
  41,227
  43,962
  46,807
  49,767
  52,849
  56,057
  59,402
  62,888
  66,524
  70,317
  74,279
  78,417
Debt-to-equity ratio
  1.337
  1.460
  1.530
  1.580
  1.630
  1.670
  1.700
  1.730
  1.750
  1.770
  1.780
  1.800
  1.810
  1.820
  1.830
  1.840
  1.850
  1.860
  1.860
  1.870
  1.880
  1.880
  1.890
  1.890
  1.890
  1.900
  1.900
  1.900
  1.910
  1.910
  1.910
Adjusted equity ratio
  0.335
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  122
  227
  274
  326
  380
  439
  500
  565
  633
  704
  778
  985
  1,066
  1,150
  1,237
  1,328
  1,422
  1,520
  1,621
  1,727
  1,837
  1,951
  2,070
  2,194
  2,324
  2,458
  2,598
  2,745
  2,898
  3,057
  3,224
Depreciation, amort., depletion, $m
  355
  437
  478
  522
  570
  620
  674
  731
  791
  853
  919
  809
  880
  954
  1,031
  1,112
  1,195
  1,281
  1,371
  1,465
  1,562
  1,663
  1,768
  1,878
  1,992
  2,110
  2,234
  2,363
  2,498
  2,639
  2,786
Funds from operations, $m
  345
  663
  752
  848
  950
  1,059
  1,174
  1,296
  1,423
  1,557
  1,697
  1,794
  1,946
  2,104
  2,269
  2,439
  2,617
  2,801
  2,993
  3,192
  3,399
  3,614
  3,839
  4,072
  4,315
  4,568
  4,833
  5,108
  5,396
  5,696
  6,010
Change in working capital, $m
  -90
  77
  84
  91
  97
  104
  110
  116
  122
  128
  134
  140
  146
  151
  158
  164
  170
  177
  184
  191
  199
  207
  215
  224
  233
  243
  253
  264
  276
  288
  301
Cash from operations, $m
  435
  883
  668
  757
  853
  955
  1,064
  1,180
  1,301
  1,429
  1,563
  1,655
  1,801
  1,953
  2,111
  2,275
  2,446
  2,624
  2,809
  3,001
  3,200
  3,408
  3,624
  3,848
  4,082
  4,326
  4,579
  4,844
  5,120
  5,408
  5,709
Maintenance CAPEX, $m
  0
  -221
  -259
  -300
  -344
  -392
  -443
  -496
  -553
  -613
  -675
  -741
  -809
  -880
  -954
  -1,031
  -1,112
  -1,195
  -1,281
  -1,371
  -1,465
  -1,562
  -1,663
  -1,768
  -1,878
  -1,992
  -2,110
  -2,234
  -2,363
  -2,498
  -2,639
New CAPEX, $m
  -400
  -489
  -531
  -573
  -614
  -654
  -693
  -732
  -770
  -807
  -844
  -881
  -918
  -956
  -994
  -1,034
  -1,074
  -1,116
  -1,160
  -1,206
  -1,254
  -1,304
  -1,357
  -1,412
  -1,471
  -1,533
  -1,598
  -1,666
  -1,739
  -1,815
  -1,896
Cash from investing activities, $m
  -521
  -710
  -790
  -873
  -958
  -1,046
  -1,136
  -1,228
  -1,323
  -1,420
  -1,519
  -1,622
  -1,727
  -1,836
  -1,948
  -2,065
  -2,186
  -2,311
  -2,441
  -2,577
  -2,719
  -2,866
  -3,020
  -3,180
  -3,349
  -3,525
  -3,708
  -3,900
  -4,102
  -4,313
  -4,535
Free cash flow, $m
  -86
  174
  -121
  -116
  -105
  -91
  -72
  -49
  -21
  9
  44
  33
  74
  117
  162
  211
  261
  313
  368
  424
  482
  542
  604
  668
  734
  801
  871
  944
  1,018
  1,095
  1,174
Issuance/(repayment) of debt, $m
  164
  705
  766
  827
  887
  945
  1,002
  1,057
  1,112
  1,166
  1,219
  1,273
  1,326
  1,381
  1,436
  1,493
  1,552
  1,612
  1,676
  1,742
  1,811
  1,883
  1,960
  2,040
  2,124
  2,214
  2,308
  2,407
  2,512
  2,622
  2,739
Issuance/(repurchase) of shares, $m
  -221
  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  
  -102
  705
  766
  827
  887
  945
  1,002
  1,057
  1,112
  1,166
  1,219
  1,273
  1,326
  1,381
  1,436
  1,493
  1,552
  1,612
  1,676
  1,742
  1,811
  1,883
  1,960
  2,040
  2,124
  2,214
  2,308
  2,407
  2,512
  2,622
  2,739
Total cash flow (excl. dividends), $m
  -188
  879
  645
  712
  781
  854
  930
  1,009
  1,090
  1,175
  1,263
  1,306
  1,400
  1,497
  1,598
  1,703
  1,812
  1,926
  2,043
  2,165
  2,293
  2,425
  2,564
  2,708
  2,858
  3,015
  3,179
  3,351
  3,530
  3,717
  3,913
Retained Cash Flow (-), $m
  84
  -356
  -391
  -422
  -453
  -482
  -511
  -540
  -568
  -595
  -622
  -650
  -677
  -705
  -733
  -762
  -792
  -823
  -855
  -889
  -925
  -962
  -1,000
  -1,042
  -1,085
  -1,130
  -1,178
  -1,229
  -1,282
  -1,339
  -1,398
Prev. year cash balance distribution, $m
 
  74
  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
 
  597
  254
  289
  329
  372
  419
  469
  523
  580
  640
  656
  723
  792
  865
  941
  1,020
  1,102
  1,188
  1,276
  1,368
  1,464
  1,563
  1,666
  1,773
  1,885
  2,001
  2,122
  2,247
  2,378
  2,515
Discount rate, %
 
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
 
  550
  213
  220
  225
  226
  224
  219
  210
  198
  183
  155
  139
  122
  106
  89
  73
  59
  47
  36
  27
  20
  14
  10
  6
  4
  3
  2
  1
  1
  0
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

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers, and post-acute facilities in the United States. Its hospitals offer a range of medical and surgical services, such as general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation, and pediatric services, as well as specialized services, including open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. The company’s hospitals also provide various outpatient services comprising same-day surgery, laboratory, X-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. In addition, it owns and operates schools of nursing and other allied health professions. As of December 31, 2016, the company operated 72 hospital campuses, including 9,424 licensed beds in 22 states. The company was formerly known as LifePoint Hospitals, Inc. and changed its name to LifePoint Health, Inc. in May 2015. LifePoint Health, Inc. was founded in 1997 and is based in Brentwood, Tennessee.

FINANCIAL RATIOS  of  LifePoint Health (LPNT)

Valuation Ratios
P/E Ratio 19.9
Price to Sales 0.4
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 5.6
Price to Free Cash Flow 69.4
Growth Rates
Sales Growth Rate 22.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 45.5%
Cap. Spend. - 3 Yr. Gr. Rate 16.7%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 132.7%
Total Debt to Equity 133.7%
Interest Coverage 2
Management Effectiveness
Return On Assets 3.4%
Ret/ On Assets - 3 Yr. Avg. 3.8%
Return On Total Capital 2.4%
Ret/ On T. Cap. - 3 Yr. Avg. 3.1%
Return On Equity 5.5%
Return On Equity - 3 Yr. Avg. 6.5%
Asset Turnover 1
Profitability Ratios
Gross Margin 35.4%
Gross Margin - 3 Yr. Avg. 36.2%
EBITDA Margin 11%
EBITDA Margin - 3 Yr. Avg. 12.4%
Operating Margin 3.2%
Oper. Margin - 3 Yr. Avg. 4.5%
Pre-Tax Margin 3.2%
Pre-Tax Margin - 3 Yr. Avg. 4.5%
Net Profit Margin 1.9%
Net Profit Margin - 3 Yr. Avg. 2.7%
Effective Tax Rate 35.6%
Eff/ Tax Rate - 3 Yr. Avg. 35.1%
Payout Ratio 0%

LPNT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LPNT stock intrinsic value calculation we used $6364 million for the last fiscal year's total revenue generated by LifePoint Health. The default revenue input number comes from 2016 income statement of LifePoint Health. 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 LPNT stock valuation model: a) initial revenue growth rate of 17.1% 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 8.6%, whose default value for LPNT is calculated based on our internal credit rating of LifePoint Health, 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 LifePoint Health.
    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 LPNT stock the variable cost ratio is equal to 94.3%.

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 LPNT 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 5% for LifePoint Health.

Corporate tax rate of 27% is the nominal tax rate for LifePoint Health. 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 LPNT 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 LPNT are equal to 44.8%.

Life of production assets of 12.9 years is the average useful life of capital assets used in LifePoint Health 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 LPNT is equal to 7.1%. 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 - $2180 million for LifePoint Health - 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 39.542 million for LifePoint Health 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 LifePoint Health at the current share price and the inputted number of shares is $2.4 billion.


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Stock chart of LPNT Financial statements of LPNT
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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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