Intrinsic value of MBIA - MBI

Previous Close

$10.01

  Intrinsic Value

$61.60

stock screener

  Rating & Target

str. buy

+515%

  Value-price divergence*

0%

Previous close

$10.01

 
Intrinsic value

$61.60

 
Up/down potential

+515%

 
Rating

str. buy

 
Value-price divergence*

0%

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

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

We calculate the intrinsic value of MBI 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 1.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -65.47
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  0
  478
  739
  1,105
  1,604
  2,263
  3,111
  4,176
  5,483
  7,055
  8,911
  11,066
  13,529
  16,307
  19,402
  22,813
  26,537
  30,568
  34,901
  39,527
  44,440
  49,633
  55,102
  60,842
  66,849
  73,125
  79,668
  86,483
  93,573
  100,945
  108,607
Variable operating expenses, $m
 
  187
  289
  432
  627
  885
  1,216
  1,633
  2,144
  2,759
  3,484
  4,327
  5,290
  6,376
  7,586
  8,920
  10,376
  11,952
  13,646
  15,455
  17,376
  19,407
  21,545
  23,789
  26,138
  28,592
  31,150
  33,815
  36,587
  39,469
  42,465
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
  416
  187
  289
  432
  627
  885
  1,216
  1,633
  2,144
  2,759
  3,484
  4,327
  5,290
  6,376
  7,586
  8,920
  10,376
  11,952
  13,646
  15,455
  17,376
  19,407
  21,545
  23,789
  26,138
  28,592
  31,150
  33,815
  36,587
  39,469
  42,465
Operating income, $m
  -117
  291
  450
  673
  977
  1,378
  1,894
  2,543
  3,339
  4,297
  5,427
  6,739
  8,239
  9,931
  11,816
  13,893
  16,161
  18,616
  21,254
  24,072
  27,064
  30,227
  33,557
  37,053
  40,711
  44,533
  48,518
  52,668
  56,986
  61,475
  66,142
EBITDA, $m
  -117
  291
  450
  673
  977
  1,378
  1,894
  2,543
  3,339
  4,297
  5,427
  6,739
  8,239
  9,931
  11,816
  13,893
  16,161
  18,616
  21,254
  24,072
  27,064
  30,227
  33,557
  37,053
  40,711
  44,533
  48,518
  52,668
  56,986
  61,475
  66,142
Interest expense (income), $m
  0
  193
  356
  596
  933
  1,392
  1,998
  2,779
  3,759
  4,962
  6,409
  8,117
  10,100
  12,367
  14,924
  17,773
  20,912
  24,340
  28,050
  32,037
  36,295
  40,817
  45,597
  50,630
  55,913
  61,442
  67,218
  73,240
  79,512
  86,037
  92,822
Earnings before tax, $m
  -339
  99
  94
  77
  44
  -14
  -104
  -236
  -420
  -665
  -982
  -1,378
  -1,861
  -2,436
  -3,108
  -3,879
  -4,751
  -5,723
  -6,796
  -7,965
  -9,231
  -10,590
  -12,040
  -13,578
  -15,201
  -16,909
  -18,700
  -20,572
  -22,526
  -24,562
  -26,681
Tax expense, $m
  -1
  27
  25
  21
  12
  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
Net income, $m
  -338
  72
  69
  56
  32
  -14
  -104
  -236
  -420
  -665
  -982
  -1,378
  -1,861
  -2,436
  -3,108
  -3,879
  -4,751
  -5,723
  -6,796
  -7,965
  -9,231
  -10,590
  -12,040
  -13,578
  -15,201
  -16,909
  -18,700
  -20,572
  -22,526
  -24,562
  -26,681

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
  0
Total assets, $m
  11,137
  17,719
  27,375
  40,939
  59,401
  83,806
  115,214
  154,652
  203,067
  261,298
  330,041
  409,836
  501,064
  603,950
  718,581
  844,924
  982,850
  1,132,160
  1,292,615
  1,463,954
  1,645,919
  1,838,273
  2,040,814
  2,253,391
  2,475,904
  2,708,321
  2,950,674
  3,203,062
  3,465,657
  3,738,696
  4,022,484
Adjusted assets (=assets-cash), $m
  11,137
  17,719
  27,375
  40,939
  59,401
  83,806
  115,214
  154,652
  203,067
  261,298
  330,041
  409,836
  501,064
  603,950
  718,581
  844,924
  982,850
  1,132,160
  1,292,615
  1,463,954
  1,645,919
  1,838,273
  2,040,814
  2,253,391
  2,475,904
  2,708,321
  2,950,674
  3,203,062
  3,465,657
  3,738,696
  4,022,484
Revenue / Adjusted assets
  0.000
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
  0.027
Average production assets, $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
  0
Working capital, $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
  0
Total debt, $m
  5,504
  10,174
  17,030
  26,661
  39,769
  57,097
  79,396
  107,397
  141,772
  183,116
  231,923
  288,577
  353,349
  426,399
  507,787
  597,490
  695,417
  801,428
  915,351
  1,037,001
  1,166,196
  1,302,768
  1,446,572
  1,597,501
  1,755,486
  1,920,502
  2,092,572
  2,271,768
  2,458,210
  2,652,068
  2,853,558
Total liabilities, $m
  7,910
  12,580
  19,436
  29,067
  42,175
  59,503
  81,802
  109,803
  144,178
  185,522
  234,329
  290,983
  355,755
  428,805
  510,193
  599,896
  697,823
  803,834
  917,757
  1,039,407
  1,168,602
  1,305,174
  1,448,978
  1,599,907
  1,757,892
  1,922,908
  2,094,978
  2,274,174
  2,460,616
  2,654,474
  2,855,964
Total equity, $m
  3,227
  5,138
  7,939
  11,872
  17,226
  24,304
  33,412
  44,849
  58,889
  75,776
  95,712
  118,852
  145,308
  175,146
  208,389
  245,028
  285,026
  328,326
  374,858
  424,547
  477,316
  533,099
  591,836
  653,483
  718,012
  785,413
  855,695
  928,888
  1,005,040
  1,084,222
  1,166,520
Total liabilities and equity, $m
  11,137
  17,718
  27,375
  40,939
  59,401
  83,807
  115,214
  154,652
  203,067
  261,298
  330,041
  409,835
  501,063
  603,951
  718,582
  844,924
  982,849
  1,132,160
  1,292,615
  1,463,954
  1,645,918
  1,838,273
  2,040,814
  2,253,390
  2,475,904
  2,708,321
  2,950,673
  3,203,062
  3,465,656
  3,738,696
  4,022,484
Debt-to-equity ratio
  1.706
  1.980
  2.150
  2.250
  2.310
  2.350
  2.380
  2.390
  2.410
  2.420
  2.420
  2.430
  2.430
  2.430
  2.440
  2.440
  2.440
  2.440
  2.440
  2.440
  2.440
  2.440
  2.440
  2.440
  2.440
  2.450
  2.450
  2.450
  2.450
  2.450
  2.450
Adjusted equity ratio
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -338
  72
  69
  56
  32
  -14
  -104
  -236
  -420
  -665
  -982
  -1,378
  -1,861
  -2,436
  -3,108
  -3,879
  -4,751
  -5,723
  -6,796
  -7,965
  -9,231
  -10,590
  -12,040
  -13,578
  -15,201
  -16,909
  -18,700
  -20,572
  -22,526
  -24,562
  -26,681
Depreciation, amort., depletion, $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
  0
Funds from operations, $m
  465
  72
  69
  56
  32
  -14
  -104
  -236
  -420
  -665
  -982
  -1,378
  -1,861
  -2,436
  -3,108
  -3,879
  -4,751
  -5,723
  -6,796
  -7,965
  -9,231
  -10,590
  -12,040
  -13,578
  -15,201
  -16,909
  -18,700
  -20,572
  -22,526
  -24,562
  -26,681
Change in working capital, $m
  680
  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 operations, $m
  -215
  72
  69
  56
  32
  -14
  -104
  -236
  -420
  -665
  -982
  -1,378
  -1,861
  -2,436
  -3,108
  -3,879
  -4,751
  -5,723
  -6,796
  -7,965
  -9,231
  -10,590
  -12,040
  -13,578
  -15,201
  -16,909
  -18,700
  -20,572
  -22,526
  -24,562
  -26,681
Maintenance CAPEX, $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
  0
New CAPEX, $m
  -1
  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 investing activities, $m
  2,424
  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
Free cash flow, $m
  2,209
  72
  69
  56
  32
  -14
  -104
  -236
  -420
  -665
  -982
  -1,378
  -1,861
  -2,436
  -3,108
  -3,879
  -4,751
  -5,723
  -6,796
  -7,965
  -9,231
  -10,590
  -12,040
  -13,578
  -15,201
  -16,909
  -18,700
  -20,572
  -22,526
  -24,562
  -26,681
Issuance/(repayment) of debt, $m
  -2,448
  4,670
  6,856
  9,631
  13,108
  17,328
  22,300
  28,000
  34,375
  41,344
  48,807
  56,654
  64,772
  73,049
  81,388
  89,703
  97,927
  106,011
  113,923
  121,651
  129,195
  136,571
  143,805
  150,929
  157,985
  165,016
  172,070
  179,196
  186,442
  193,857
  201,490
Issuance/(repurchase) of shares, $m
  -108
  1,839
  2,732
  3,877
  5,322
  7,091
  9,212
  11,673
  14,460
  17,552
  20,918
  24,519
  28,317
  32,274
  36,351
  40,519
  44,750
  49,024
  53,327
  57,654
  62,001
  66,373
  70,777
  75,225
  79,730
  84,310
  88,982
  93,765
  98,679
  103,743
  108,979
Cash from financing (excl. dividends), $m  
  -2,542
  6,509
  9,588
  13,508
  18,430
  24,419
  31,512
  39,673
  48,835
  58,896
  69,725
  81,173
  93,089
  105,323
  117,739
  130,222
  142,677
  155,035
  167,250
  179,305
  191,196
  202,944
  214,582
  226,154
  237,715
  249,326
  261,052
  272,961
  285,121
  297,600
  310,469
Total cash flow (excl. dividends), $m
  -335
  6,582
  9,657
  13,564
  18,462
  24,405
  31,408
  39,437
  48,416
  58,231
  68,743
  79,795
  91,228
  102,887
  114,631
  126,343
  137,926
  149,311
  160,455
  171,339
  181,965
  192,354
  202,542
  212,576
  222,514
  232,417
  242,352
  252,389
  262,595
  273,039
  283,788
Retained Cash Flow (-), $m
  502
  -1,911
  -2,800
  -3,934
  -5,354
  -7,091
  -9,212
  -11,673
  -14,460
  -17,552
  -20,918
  -24,519
  -28,317
  -32,274
  -36,351
  -40,519
  -44,750
  -49,024
  -53,327
  -57,654
  -62,001
  -66,373
  -70,777
  -75,225
  -79,730
  -84,310
  -88,982
  -93,765
  -98,679
  -103,743
  -108,979
Prev. year cash balance distribution, $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 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
 
  4,670
  6,856
  9,631
  13,108
  17,314
  22,196
  27,764
  33,955
  40,678
  47,825
  55,276
  62,910
  70,613
  78,280
  85,824
  93,176
  100,287
  107,127
  113,685
  119,964
  125,981
  131,765
  137,352
  142,783
  148,107
  153,371
  158,624
  163,916
  169,296
  174,809
Discount rate, %
 
  11.20
  11.76
  12.35
  12.97
  13.61
  14.29
  15.01
  15.76
  16.55
  17.37
  18.24
  19.16
  20.11
  21.12
  22.18
  23.28
  24.45
  25.67
  26.95
  28.30
  29.72
  31.20
  32.76
  34.40
  36.12
  37.93
  39.82
  41.81
  43.91
  46.10
PV of cash for distribution, $m
 
  4,200
  5,489
  6,791
  8,049
  9,146
  9,957
  10,432
  10,531
  10,253
  9,636
  8,749
  7,680
  6,519
  5,354
  4,255
  3,272
  2,435
  1,753
  1,220
  821
  534
  335
  203
  118
  66
  36
  19
  9
  4
  2
Current shareholders' claim on cash, %
  100
  55.1
  31.3
  18.5
  11.2
  7.1
  4.6
  3.1
  2.1
  1.5
  1.1
  0.8
  0.6
  0.4
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States and internationally. It operates through three segments: U.S. Public Finance Insurance, International and Structured Finance Insurance, and Corporate. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities, and other similar agencies and obligations issued by private entities. It also insures non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, utilities, and privately issued bonds used for the financing of projects that include utilities, toll roads, bridges, airports, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.

FINANCIAL RATIOS  of  MBIA (MBI)

Valuation Ratios
P/E Ratio -4
Price to Sales 4.5
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow -6.3
Price to Free Cash Flow -6.3
Growth Rates
Sales Growth Rate -65.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -66.7%
Cap. Spend. - 3 Yr. Gr. Rate -19.7%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 170.6%
Total Debt to Equity 170.6%
Interest Coverage 0
Management Effectiveness
Return On Assets -2.6%
Ret/ On Assets - 3 Yr. Avg. 0.7%
Return On Total Capital -3.2%
Ret/ On T. Cap. - 3 Yr. Avg. 0.9%
Return On Equity -9.7%
Return On Equity - 3 Yr. Avg. 3.6%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin -113.4%
EBITDA Margin - 3 Yr. Avg. -10%
Operating Margin -39.1%
Oper. Margin - 3 Yr. Avg. 30.3%
Pre-Tax Margin -113.4%
Pre-Tax Margin - 3 Yr. Avg. -10%
Net Profit Margin -113%
Net Profit Margin - 3 Yr. Avg. -16%
Effective Tax Rate 0.3%
Eff/ Tax Rate - 3 Yr. Avg. 16.4%
Payout Ratio 0%

MBI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MBI stock intrinsic value calculation we used $299 million for the last fiscal year's total revenue generated by MBIA. The default revenue input number comes from 2016 income statement of MBIA. 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 MBI stock valuation model: a) initial revenue growth rate of 60% 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 11.2%, whose default value for MBI is calculated based on our internal credit rating of MBIA, 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 MBIA.
    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 MBI stock the variable cost ratio is equal to 39.1%.

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 MBI 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 3.5% for MBIA.

Corporate tax rate of 27% is the nominal tax rate for MBIA. 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 MBI 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 MBI are equal to 0%.

Life of production assets of 10 years is the average useful life of capital assets used in MBIA 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 MBI is equal to 0%. 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 - $3227 million for MBIA - 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 134.387 million for MBIA 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 MBIA at the current share price and the inputted number of shares is $1.3 billion.

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COMPANY NEWS

▶ MBIA Inc. Announces Senior Management Change   [Aug-10-17 08:00AM  Business Wire]
▶ Investor Network: MBIA Inc. to Host Earnings Call   [Aug-09-17 05:10AM  ACCESSWIRE]
▶ MBIA reports 2Q loss   [Aug-08-17 10:16PM  Associated Press]
▶ [$$] Investors Raise Bets Against Bond Insurers   [Aug-01-17 06:58PM  The Wall Street Journal]
▶ MBIA Inc. Announces Changes to its Board of Directors   [Jul-31-17 04:15PM  Business Wire]
▶ [$$] Puerto Rico's Troubles Create New Opportunities for Investors   [Jul-17-17 12:05PM  The Wall Street Journal]
▶ [$$] Puerto Rico's New Opportunities   [Jul-15-17 12:01AM  Barrons.com]
▶ ETFs with exposure to MBIA, Inc. : July 13, 2017   [Jul-13-17 04:15PM  Capital Cube]
▶ After S&P Downgrade, MBIA to Stop Seeking New Business   [Jul-05-17 04:34PM  Barrons.com]
▶ ETFs with exposure to MBIA, Inc. : May 15, 2017   [May-15-17 04:05PM  Capital Cube]
▶ Why SandRidge Energy, MBIA, and LivePerson Jumped Today   [May-11-17 04:34PM  Motley Fool]
▶ Why MBIA Inc. Stock Just Jumped 10%   [04:09PM  Motley Fool]
▶ MBIA reports 1Q loss   [May-10-17 05:36PM  Associated Press]
▶ [$$] Puerto Rico Bankruptcy Is 'Beginning of the Story' for Investors   [May-04-17 07:14PM  The Wall Street Journal]
▶ ETFs with exposure to MBIA, Inc. : April 28, 2017   [Apr-28-17 04:04PM  Capital Cube]
▶ [$$] Insurers Win Market Approval for New Prepa Deal   [Apr-07-17 03:54PM  The Wall Street Journal]
▶ ETFs with exposure to MBIA, Inc. : April 5, 2017   [Apr-05-17 05:04PM  Capital Cube]
▶ Ackman's winners and losers   [Mar-14-17 12:05PM  CNBC Videos]
▶ Bill Ackman's Greatest Hits and Misses   [11:13AM  Investopedia]
▶ [$$] MBIA's Special Dividend Will Have to Wait   [Mar-03-17 07:53AM  Barrons.com]
▶ MBIA reports 4Q loss   [Mar-01-17 05:44PM  Associated Press]
▶ Puerto Rico Debt Negotiations Begin   [Jan-23-17 02:15PM  at Bloomberg]
▶ Why Ambac Financial Group Stock Is Getting Crushed Today   [Dec-19-16 12:51PM  at Motley Fool]
▶ Is Primoris Services Corp (PRIM) A Good Stock To Buy?   [Dec-12-16 07:24AM  at Insider Monkey]
▶ Hedge Funds Are Betting On MBIA Inc. (MBI)   [05:08AM  at Insider Monkey]
▶ [$$] MBIA Finds New Investment to Cover Zohar Losses   [04:12PM  at The Wall Street Journal]
▶ Why Vale, MBIA, and Gold Fields International Jumped Today   [Nov-28-16 07:02PM  at Motley Fool]
Stock chart of MBI Financial statements of MBI
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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