Intrinsic value of Marcus - MCS

Previous Close

$32.70

  Intrinsic Value

$3.09

stock screener

  Rating & Target

str. sell

-91%

  Value-price divergence*

+370%

Previous close

$32.70

 
Intrinsic value

$3.09

 
Up/down potential

-91%

 
Rating

str. sell

 
Value-price divergence*

+370%

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

We calculate the intrinsic value of MCS 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 0.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  67.90
  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
  544
  870
  1,345
  2,011
  2,918
  4,117
  5,660
  7,597
  9,975
  12,836
  16,213
  20,133
  24,614
  29,668
  35,299
  41,506
  48,281
  55,616
  63,498
  71,915
  80,854
  90,303
  100,252
  110,695
  121,626
  133,043
  144,948
  157,346
  170,246
  183,659
  197,599
Variable operating expenses, $m
 
  749
  1,155
  1,726
  2,502
  3,528
  4,849
  6,507
  8,542
  10,991
  13,881
  17,232
  21,068
  25,393
  30,213
  35,525
  41,324
  47,602
  54,349
  61,553
  69,204
  77,291
  85,807
  94,745
  104,101
  113,873
  124,063
  134,675
  145,716
  157,196
  169,128
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
  474
  749
  1,155
  1,726
  2,502
  3,528
  4,849
  6,507
  8,542
  10,991
  13,881
  17,232
  21,068
  25,393
  30,213
  35,525
  41,324
  47,602
  54,349
  61,553
  69,204
  77,291
  85,807
  94,745
  104,101
  113,873
  124,063
  134,675
  145,716
  157,196
  169,128
Operating income, $m
  70
  121
  189
  285
  416
  589
  811
  1,090
  1,433
  1,845
  2,332
  2,901
  3,547
  4,275
  5,086
  5,981
  6,957
  8,014
  9,149
  10,362
  11,650
  13,012
  14,445
  15,950
  17,525
  19,170
  20,885
  22,672
  24,530
  26,463
  28,472
EBITDA, $m
  112
  189
  292
  436
  633
  893
  1,227
  1,647
  2,163
  2,783
  3,515
  4,365
  5,337
  6,433
  7,653
  8,999
  10,468
  12,058
  13,767
  15,592
  17,530
  19,579
  21,736
  24,000
  26,370
  28,846
  31,427
  34,115
  36,912
  39,820
  42,843
Interest expense (income), $m
  9
  11
  22
  38
  60
  90
  130
  181
  246
  325
  420
  533
  663
  813
  981
  1,168
  1,375
  1,601
  1,845
  2,108
  2,388
  2,686
  3,000
  3,332
  3,680
  4,044
  4,424
  4,820
  5,233
  5,663
  6,110
Earnings before tax, $m
  61
  110
  168
  248
  356
  499
  681
  909
  1,187
  1,520
  1,911
  2,368
  2,883
  3,462
  4,105
  4,812
  5,582
  6,413
  7,304
  8,254
  9,262
  10,326
  11,445
  12,618
  13,845
  15,126
  16,461
  17,851
  19,297
  20,800
  22,362
Tax expense, $m
  23
  30
  45
  67
  96
  135
  184
  245
  321
  410
  516
  639
  778
  935
  1,108
  1,299
  1,507
  1,731
  1,972
  2,229
  2,501
  2,788
  3,090
  3,407
  3,738
  4,084
  4,445
  4,820
  5,210
  5,616
  6,038
Net income, $m
  38
  80
  122
  181
  260
  364
  497
  664
  867
  1,110
  1,395
  1,729
  2,105
  2,527
  2,997
  3,513
  4,075
  4,681
  5,332
  6,026
  6,761
  7,538
  8,355
  9,211
  10,107
  11,042
  12,017
  13,032
  14,087
  15,184
  16,324

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3
  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
  911
  1,453
  2,245
  3,357
  4,871
  6,873
  9,449
  12,683
  16,653
  21,429
  27,067
  33,610
  41,092
  49,530
  58,931
  69,292
  80,603
  92,848
  106,007
  120,058
  134,981
  150,756
  167,366
  184,800
  203,048
  222,108
  241,984
  262,682
  284,217
  306,609
  329,882
Adjusted assets (=assets-cash), $m
  908
  1,453
  2,245
  3,357
  4,871
  6,873
  9,449
  12,683
  16,653
  21,429
  27,067
  33,610
  41,092
  49,530
  58,931
  69,292
  80,603
  92,848
  106,007
  120,058
  134,981
  150,756
  167,366
  184,800
  203,048
  222,108
  241,984
  262,682
  284,217
  306,609
  329,882
Revenue / Adjusted assets
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
  0.599
Average production assets, $m
  740
  1,184
  1,829
  2,735
  3,968
  5,599
  7,697
  10,332
  13,567
  17,457
  22,049
  27,380
  33,475
  40,349
  48,007
  56,448
  65,663
  75,638
  86,357
  97,804
  109,961
  122,812
  136,343
  150,545
  165,411
  180,938
  197,129
  213,991
  231,535
  249,776
  268,735
Working capital, $m
  -95
  -126
  -195
  -292
  -423
  -597
  -821
  -1,102
  -1,446
  -1,861
  -2,351
  -2,919
  -3,569
  -4,302
  -5,118
  -6,018
  -7,001
  -8,064
  -9,207
  -10,428
  -11,724
  -13,094
  -14,537
  -16,051
  -17,636
  -19,291
  -21,017
  -22,815
  -24,686
  -26,631
  -28,652
Total debt, $m
  316
  623
  1,075
  1,709
  2,572
  3,713
  5,181
  7,024
  9,287
  12,010
  15,223
  18,953
  23,217
  28,027
  33,385
  39,291
  45,739
  52,718
  60,219
  68,228
  76,734
  85,726
  95,194
  105,131
  115,532
  126,397
  137,726
  149,524
  161,799
  174,562
  187,828
Total liabilities, $m
  521
  828
  1,280
  1,914
  2,777
  3,918
  5,386
  7,229
  9,492
  12,215
  15,428
  19,158
  23,422
  28,232
  33,590
  39,496
  45,944
  52,923
  60,424
  68,433
  76,939
  85,931
  95,399
  105,336
  115,737
  126,602
  137,931
  149,729
  162,004
  174,767
  188,033
Total equity, $m
  390
  625
  965
  1,444
  2,095
  2,955
  4,063
  5,454
  7,161
  9,214
  11,639
  14,453
  17,670
  21,298
  25,340
  29,796
  34,659
  39,925
  45,583
  51,625
  58,042
  64,825
  71,968
  79,464
  87,311
  95,507
  104,053
  112,953
  122,213
  131,842
  141,849
Total liabilities and equity, $m
  911
  1,453
  2,245
  3,358
  4,872
  6,873
  9,449
  12,683
  16,653
  21,429
  27,067
  33,611
  41,092
  49,530
  58,930
  69,292
  80,603
  92,848
  106,007
  120,058
  134,981
  150,756
  167,367
  184,800
  203,048
  222,109
  241,984
  262,682
  284,217
  306,609
  329,882
Debt-to-equity ratio
  0.810
  1.000
  1.110
  1.180
  1.230
  1.260
  1.280
  1.290
  1.300
  1.300
  1.310
  1.310
  1.310
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
  1.320
Adjusted equity ratio
  0.426
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  38
  80
  122
  181
  260
  364
  497
  664
  867
  1,110
  1,395
  1,729
  2,105
  2,527
  2,997
  3,513
  4,075
  4,681
  5,332
  6,026
  6,761
  7,538
  8,355
  9,211
  10,107
  11,042
  12,017
  13,032
  14,087
  15,184
  16,324
Depreciation, amort., depletion, $m
  42
  68
  102
  151
  217
  304
  416
  557
  730
  938
  1,184
  1,464
  1,790
  2,158
  2,567
  3,019
  3,511
  4,045
  4,618
  5,230
  5,880
  6,567
  7,291
  8,051
  8,846
  9,676
  10,542
  11,443
  12,382
  13,357
  14,371
Funds from operations, $m
  78
  148
  225
  332
  477
  668
  913
  1,220
  1,596
  2,048
  2,579
  3,193
  3,895
  4,685
  5,564
  6,531
  7,586
  8,726
  9,950
  11,256
  12,642
  14,105
  15,646
  17,262
  18,953
  20,718
  22,559
  24,475
  26,468
  28,541
  30,695
Change in working capital, $m
  -5
  -47
  -69
  -97
  -132
  -174
  -224
  -281
  -345
  -415
  -490
  -568
  -650
  -733
  -817
  -900
  -982
  -1,064
  -1,143
  -1,220
  -1,296
  -1,370
  -1,443
  -1,514
  -1,585
  -1,655
  -1,726
  -1,798
  -1,870
  -1,945
  -2,021
Cash from operations, $m
  83
  254
  293
  428
  608
  842
  1,137
  1,501
  1,941
  2,462
  3,068
  3,761
  4,545
  5,418
  6,381
  7,431
  8,568
  9,790
  11,093
  12,476
  13,938
  15,475
  17,088
  18,776
  20,537
  22,374
  24,285
  26,273
  28,339
  30,486
  32,717
Maintenance CAPEX, $m
  0
  -40
  -63
  -98
  -146
  -212
  -299
  -412
  -553
  -725
  -934
  -1,179
  -1,464
  -1,790
  -2,158
  -2,567
  -3,019
  -3,511
  -4,045
  -4,618
  -5,230
  -5,880
  -6,567
  -7,291
  -8,051
  -8,846
  -9,676
  -10,542
  -11,443
  -12,382
  -13,357
New CAPEX, $m
  -84
  -444
  -645
  -906
  -1,233
  -1,630
  -2,098
  -2,635
  -3,235
  -3,890
  -4,593
  -5,331
  -6,095
  -6,874
  -7,658
  -8,441
  -9,215
  -9,975
  -10,720
  -11,447
  -12,157
  -12,851
  -13,531
  -14,202
  -14,866
  -15,527
  -16,191
  -16,862
  -17,543
  -18,241
  -18,959
Cash from investing activities, $m
  -129
  -484
  -708
  -1,004
  -1,379
  -1,842
  -2,397
  -3,047
  -3,788
  -4,615
  -5,527
  -6,510
  -7,559
  -8,664
  -9,816
  -11,008
  -12,234
  -13,486
  -14,765
  -16,065
  -17,387
  -18,731
  -20,098
  -21,493
  -22,917
  -24,373
  -25,867
  -27,404
  -28,986
  -30,623
  -32,316
Free cash flow, $m
  -46
  -229
  -415
  -576
  -771
  -1,001
  -1,261
  -1,545
  -1,846
  -2,153
  -2,458
  -2,749
  -3,014
  -3,246
  -3,435
  -3,577
  -3,665
  -3,697
  -3,672
  -3,589
  -3,449
  -3,256
  -3,010
  -2,717
  -2,379
  -1,999
  -1,582
  -1,131
  -648
  -137
  400
Issuance/(repayment) of debt, $m
  58
  310
  451
  634
  863
  1,141
  1,468
  1,844
  2,263
  2,722
  3,213
  3,730
  4,264
  4,809
  5,358
  5,906
  6,447
  6,980
  7,501
  8,009
  8,506
  8,992
  9,468
  9,937
  10,402
  10,864
  11,329
  11,798
  12,275
  12,763
  13,266
Issuance/(repurchase) of shares, $m
  -2
  154
  304
  420
  560
  721
  900
  1,092
  1,290
  1,485
  1,668
  1,833
  1,967
  2,065
  2,119
  2,126
  2,081
  1,983
  1,829
  1,621
  1,360
  1,047
  685
  276
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  55
  464
  755
  1,054
  1,423
  1,862
  2,368
  2,936
  3,553
  4,207
  4,881
  5,563
  6,231
  6,874
  7,477
  8,032
  8,528
  8,963
  9,330
  9,630
  9,866
  10,039
  10,153
  10,213
  10,402
  10,864
  11,329
  11,798
  12,275
  12,763
  13,266
Total cash flow (excl. dividends), $m
  9
  81
  36
  58
  92
  140
  207
  298
  417
  569
  756
  981
  1,250
  1,564
  1,923
  2,329
  2,783
  3,283
  3,829
  4,421
  5,057
  5,736
  6,457
  7,220
  8,023
  8,865
  9,747
  10,667
  11,627
  12,626
  13,666
Retained Cash Flow (-), $m
  -27
  -235
  -341
  -478
  -651
  -861
  -1,108
  -1,391
  -1,707
  -2,053
  -2,424
  -2,814
  -3,217
  -3,628
  -4,042
  -4,455
  -4,864
  -5,265
  -5,658
  -6,042
  -6,417
  -6,783
  -7,142
  -7,496
  -7,847
  -8,196
  -8,546
  -8,900
  -9,260
  -9,628
  -10,008
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
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  176
  669
  1,200
  1,767
  2,367
  2,998
  3,658
Discount rate, %
 
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for 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
  2
  4
  5
  5
  4
  3
  2
Current shareholders' claim on cash, %
  100
  85.7
  71.0
  59.9
  51.4
  44.8
  39.7
  35.6
  32.4
  29.7
  27.6
  25.9
  24.5
  23.3
  22.4
  21.6
  21.0
  20.5
  20.1
  19.8
  19.6
  19.4
  19.3
  19.3
  19.3
  19.3
  19.3
  19.3
  19.3
  19.3
  19.3

The Marcus Corporation, together with its subsidiaries, operates as a lodging and entertainment company in the United States. It operates through two segments, Movie Theatres, and Hotels and Resorts. As of February 24, 2016, the company operated approximately 53 movie theatres with 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota, and Ohio; and owned or managed 19 hotels, resorts, and other properties in 10 states. It also operates a family entertainment center in Appleton, Wisconsin. In addition, the company provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development, such as 68 two-room timeshare units and a timeshare sales center. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

FINANCIAL RATIOS  of  Marcus (MCS)

Valuation Ratios
P/E Ratio 23.8
Price to Sales 1.7
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 10.9
Price to Free Cash Flow -904.8
Growth Rates
Sales Growth Rate 67.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 90.9%
Cap. Spend. - 3 Yr. Gr. Rate 8.1%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 76.2%
Total Debt to Equity 81%
Interest Coverage 8
Management Effectiveness
Return On Assets 5.1%
Ret/ On Assets - 3 Yr. Avg. 4.1%
Return On Total Capital 5.8%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity 10.1%
Return On Equity - 3 Yr. Avg. 8%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 46.9%
Gross Margin - 3 Yr. Avg. 46.9%
EBITDA Margin 20.6%
EBITDA Margin - 3 Yr. Avg. 19.6%
Operating Margin 12.9%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 11.2%
Pre-Tax Margin - 3 Yr. Avg. 10.3%
Net Profit Margin 7%
Net Profit Margin - 3 Yr. Avg. 6.4%
Effective Tax Rate 37.7%
Eff/ Tax Rate - 3 Yr. Avg. 38.5%
Payout Ratio 31.6%

MCS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MCS stock intrinsic value calculation we used $544 million for the last fiscal year's total revenue generated by Marcus. The default revenue input number comes from 2016 income statement of Marcus. 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 MCS 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 6.9%, whose default value for MCS is calculated based on our internal credit rating of Marcus, 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 Marcus.
    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 MCS stock the variable cost ratio is equal to 86.4%.

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 MCS 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 Marcus.

Corporate tax rate of 27% is the nominal tax rate for Marcus. 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 MCS 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 MCS are equal to 136%.

Life of production assets of 18.7 years is the average useful life of capital assets used in Marcus 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 MCS is equal to -14.5%. 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 - $390 million for Marcus - 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 28.03 million for Marcus 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 Marcus at the current share price and the inputted number of shares is $0.9 billion.

RELATED COMPANIES Price Int.Val. Rating
RGC Regal Entertai 22.11 4.15  str.sell
CNK Cinemark Holdi 43.62 35.47  sell
AMC AMC Entertainm 30.90 82.19  str.buy
RDI Reading Intern 14.65 5.57  str.sell

COMPANY NEWS

▶ Marcus Corp. Value Analysis (NYSE:MCS) : April 19, 2017   [Apr-19-17 03:08PM  Capital Cube]
▶ CinemaCon 2017: Regency Theatres logs onto MovieTickets.com   [Mar-28-17 05:35PM  at bizjournals.com]
▶ SafeHouse in Chicago opened its doors Wednesday   [09:12AM  at bizjournals.com]
▶ Sneak peek inside the new SafeHouse in Chicago: Slideshow   [Feb-13-17 10:30AM  at bizjournals.com]
▶ Rodriguez named Marcus Theatres chairman   [11:40AM  at bizjournals.com]
▶ Do Hedge Funds Love The Marcus Corporation (MCS)?   [Dec-12-16 05:30PM  at Insider Monkey]
▶ The Marcus Corporation Declares Quarterly Dividend   [Nov-16-16 11:52AM  Business Wire]
▶ Pets, Dory help Marcus Corp. grow 3Q profits   [12:35PM  at bizjournals.com]
Stock chart of MCS Financial statements of MCS
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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