Intrinsic value of M.D.C. Holdings - MDC

Previous Close

$32.02

  Intrinsic Value

$171.09

stock screener

  Rating & Target

str. buy

+434%

  Value-price divergence*

+1980%

Previous close

$32.02

 
Intrinsic value

$171.09

 
Up/down potential

+434%

 
Rating

str. buy

 
Value-price divergence*

+1980%

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

We calculate the intrinsic value of MDC 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 1.6

 

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, %
  21.90
  42.60
  38.84
  35.46
  32.41
  29.67
  27.20
  24.98
  22.98
  21.19
  19.57
  18.11
  16.80
  15.62
  14.56
  13.60
  12.74
  11.97
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
Revenue, $m
  2,327
  3,318
  4,607
  6,241
  8,263
  10,715
  13,630
  17,035
  20,950
  25,388
  30,356
  35,853
  41,877
  48,417
  55,466
  63,010
  71,038
  79,540
  88,504
  97,924
  107,794
  118,112
  128,877
  140,092
  151,765
  163,906
  176,525
  189,640
  203,268
  217,431
  232,154
Variable operating expenses, $m
 
  2,890
  4,012
  5,435
  7,196
  9,331
  11,868
  14,833
  18,242
  22,107
  26,433
  31,219
  36,464
  42,159
  48,296
  54,865
  61,856
  69,259
  77,064
  85,267
  93,861
  102,845
  112,218
  121,984
  132,149
  142,719
  153,708
  165,127
  176,994
  189,327
  202,146
Fixed operating expenses, $m
 
  160
  164
  168
  172
  176
  181
  185
  190
  195
  200
  205
  210
  215
  220
  226
  232
  237
  243
  249
  256
  262
  269
  275
  282
  289
  296
  304
  311
  319
  327
Total operating expenses, $m
  2,178
  3,050
  4,176
  5,603
  7,368
  9,507
  12,049
  15,018
  18,432
  22,302
  26,633
  31,424
  36,674
  42,374
  48,516
  55,091
  62,088
  69,496
  77,307
  85,516
  94,117
  103,107
  112,487
  122,259
  132,431
  143,008
  154,004
  165,431
  177,305
  189,646
  202,473
Operating income, $m
  149
  268
  431
  638
  895
  1,208
  1,580
  2,016
  2,517
  3,086
  3,723
  4,430
  5,203
  6,043
  6,949
  7,919
  8,951
  10,044
  11,197
  12,408
  13,678
  15,005
  16,390
  17,833
  19,335
  20,897
  22,521
  24,209
  25,963
  27,785
  29,680
EBITDA, $m
  154
  273
  437
  646
  906
  1,221
  1,597
  2,037
  2,543
  3,117
  3,760
  4,473
  5,253
  6,101
  7,016
  7,994
  9,036
  10,139
  11,303
  12,526
  13,807
  15,147
  16,544
  18,001
  19,517
  21,094
  22,733
  24,436
  26,206
  28,046
  29,959
Interest expense (income), $m
  1
  30
  46
  68
  95
  128
  168
  216
  273
  337
  410
  492
  583
  682
  790
  906
  1,030
  1,163
  1,303
  1,451
  1,606
  1,769
  1,939
  2,116
  2,301
  2,494
  2,694
  2,902
  3,118
  3,343
  3,576
Earnings before tax, $m
  152
  238
  385
  570
  801
  1,080
  1,412
  1,799
  2,245
  2,749
  3,313
  3,938
  4,620
  5,361
  6,159
  7,012
  7,920
  8,881
  9,894
  10,957
  12,072
  13,236
  14,451
  15,716
  17,033
  18,403
  19,827
  21,307
  22,844
  24,443
  26,104
Tax expense, $m
  49
  64
  104
  154
  216
  292
  381
  486
  606
  742
  895
  1,063
  1,247
  1,448
  1,663
  1,893
  2,138
  2,398
  2,671
  2,958
  3,259
  3,574
  3,902
  4,243
  4,599
  4,969
  5,353
  5,753
  6,168
  6,600
  7,048
Net income, $m
  103
  174
  281
  416
  585
  788
  1,031
  1,314
  1,639
  2,007
  2,419
  2,874
  3,373
  3,914
  4,496
  5,119
  5,782
  6,483
  7,222
  7,999
  8,812
  9,662
  10,549
  11,473
  12,434
  13,434
  14,474
  15,554
  16,676
  17,843
  19,056

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  283
  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
  2,529
  3,203
  4,447
  6,024
  7,976
  10,343
  13,156
  16,443
  20,222
  24,506
  29,301
  34,608
  40,421
  46,735
  53,538
  60,820
  68,570
  76,776
  85,429
  94,522
  104,049
  114,007
  124,398
  135,224
  146,492
  158,210
  170,391
  183,050
  196,205
  209,876
  224,087
Adjusted assets (=assets-cash), $m
  2,246
  3,203
  4,447
  6,024
  7,976
  10,343
  13,156
  16,443
  20,222
  24,506
  29,301
  34,608
  40,421
  46,735
  53,538
  60,820
  68,570
  76,776
  85,429
  94,522
  104,049
  114,007
  124,398
  135,224
  146,492
  158,210
  170,391
  183,050
  196,205
  209,876
  224,087
Revenue / Adjusted assets
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
  1.036
Average production assets, $m
  28
  40
  55
  75
  99
  129
  164
  204
  251
  305
  364
  430
  503
  581
  666
  756
  852
  954
  1,062
  1,175
  1,294
  1,417
  1,547
  1,681
  1,821
  1,967
  2,118
  2,276
  2,439
  2,609
  2,786
Working capital, $m
  0
  -242
  -336
  -456
  -603
  -782
  -995
  -1,244
  -1,529
  -1,853
  -2,216
  -2,617
  -3,057
  -3,534
  -4,049
  -4,600
  -5,186
  -5,806
  -6,461
  -7,148
  -7,869
  -8,622
  -9,408
  -10,227
  -11,079
  -11,965
  -12,886
  -13,844
  -14,839
  -15,872
  -16,947
Total debt, $m
  971
  1,325
  1,932
  2,702
  3,654
  4,809
  6,182
  7,786
  9,630
  11,721
  14,061
  16,650
  19,488
  22,569
  25,889
  29,442
  33,224
  37,229
  41,451
  45,889
  50,538
  55,398
  60,468
  65,751
  71,250
  76,968
  82,913
  89,090
  95,510
  102,181
  109,116
Total liabilities, $m
  1,209
  1,563
  2,170
  2,940
  3,892
  5,047
  6,420
  8,024
  9,868
  11,959
  14,299
  16,888
  19,726
  22,807
  26,127
  29,680
  33,462
  37,467
  41,689
  46,127
  50,776
  55,636
  60,706
  65,989
  71,488
  77,206
  83,151
  89,328
  95,748
  102,419
  109,354
Total equity, $m
  1,320
  1,640
  2,277
  3,084
  4,084
  5,295
  6,736
  8,419
  10,354
  12,547
  15,002
  17,719
  20,696
  23,928
  27,412
  31,140
  35,108
  39,309
  43,740
  48,395
  53,273
  58,372
  63,692
  69,235
  75,004
  81,004
  87,240
  93,722
  100,457
  107,456
  114,732
Total liabilities and equity, $m
  2,529
  3,203
  4,447
  6,024
  7,976
  10,342
  13,156
  16,443
  20,222
  24,506
  29,301
  34,607
  40,422
  46,735
  53,539
  60,820
  68,570
  76,776
  85,429
  94,522
  104,049
  114,008
  124,398
  135,224
  146,492
  158,210
  170,391
  183,050
  196,205
  209,875
  224,086
Debt-to-equity ratio
  0.736
  0.810
  0.850
  0.880
  0.890
  0.910
  0.920
  0.920
  0.930
  0.930
  0.940
  0.940
  0.940
  0.940
  0.940
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
  0.950
Adjusted equity ratio
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512
  0.512

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  103
  174
  281
  416
  585
  788
  1,031
  1,314
  1,639
  2,007
  2,419
  2,874
  3,373
  3,914
  4,496
  5,119
  5,782
  6,483
  7,222
  7,999
  8,812
  9,662
  10,549
  11,473
  12,434
  13,434
  14,474
  15,554
  16,676
  17,843
  19,056
Depreciation, amort., depletion, $m
  5
  5
  6
  8
  11
  13
  17
  21
  26
  31
  37
  43
  50
  58
  67
  76
  85
  95
  106
  118
  129
  142
  155
  168
  182
  197
  212
  228
  244
  261
  279
Funds from operations, $m
  89
  179
  287
  425
  595
  802
  1,048
  1,335
  1,664
  2,038
  2,456
  2,917
  3,423
  3,972
  4,563
  5,195
  5,867
  6,579
  7,329
  8,116
  8,942
  9,804
  10,704
  11,641
  12,617
  13,631
  14,685
  15,781
  16,920
  18,104
  19,335
Change in working capital, $m
  -27
  -72
  -94
  -119
  -148
  -179
  -213
  -249
  -286
  -324
  -363
  -401
  -440
  -477
  -515
  -551
  -586
  -621
  -654
  -688
  -721
  -753
  -786
  -819
  -852
  -886
  -921
  -957
  -995
  -1,034
  -1,075
Cash from operations, $m
  116
  251
  381
  544
  743
  981
  1,260
  1,583
  1,950
  2,362
  2,818
  3,319
  3,863
  4,449
  5,077
  5,745
  6,453
  7,199
  7,983
  8,804
  9,662
  10,557
  11,490
  12,460
  13,469
  14,517
  15,607
  16,739
  17,915
  19,138
  20,409
Maintenance CAPEX, $m
  0
  -3
  -4
  -6
  -7
  -10
  -13
  -16
  -20
  -25
  -30
  -36
  -43
  -50
  -58
  -67
  -76
  -85
  -95
  -106
  -118
  -129
  -142
  -155
  -168
  -182
  -197
  -212
  -228
  -244
  -261
New CAPEX, $m
  -4
  -12
  -15
  -20
  -24
  -29
  -35
  -41
  -47
  -53
  -60
  -66
  -72
  -78
  -85
  -91
  -96
  -102
  -108
  -113
  -118
  -124
  -129
  -135
  -140
  -146
  -151
  -157
  -164
  -170
  -177
Cash from investing activities, $m
  9
  -15
  -19
  -26
  -31
  -39
  -48
  -57
  -67
  -78
  -90
  -102
  -115
  -128
  -143
  -158
  -172
  -187
  -203
  -219
  -236
  -253
  -271
  -290
  -308
  -328
  -348
  -369
  -392
  -414
  -438
Free cash flow, $m
  125
  236
  362
  519
  711
  941
  1,213
  1,526
  1,883
  2,284
  2,728
  3,216
  3,747
  4,321
  4,935
  5,588
  6,281
  7,012
  7,780
  8,585
  9,426
  10,304
  11,219
  12,171
  13,160
  14,189
  15,259
  16,370
  17,524
  18,724
  19,972
Issuance/(repayment) of debt, $m
  26
  468
  607
  769
  953
  1,155
  1,373
  1,604
  1,844
  2,091
  2,340
  2,590
  2,837
  3,081
  3,320
  3,554
  3,782
  4,005
  4,223
  4,437
  4,649
  4,860
  5,071
  5,283
  5,499
  5,718
  5,944
  6,178
  6,420
  6,672
  6,935
Issuance/(repurchase) of shares, $m
  0
  315
  356
  391
  415
  423
  410
  369
  296
  187
  36
  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  
  26
  783
  963
  1,160
  1,368
  1,578
  1,783
  1,973
  2,140
  2,278
  2,376
  2,590
  2,837
  3,081
  3,320
  3,554
  3,782
  4,005
  4,223
  4,437
  4,649
  4,860
  5,071
  5,283
  5,499
  5,718
  5,944
  6,178
  6,420
  6,672
  6,935
Total cash flow (excl. dividends), $m
  151
  1,019
  1,325
  1,679
  2,079
  2,520
  2,995
  3,499
  4,023
  4,561
  5,105
  5,806
  6,585
  7,402
  8,255
  9,142
  10,063
  11,016
  12,003
  13,022
  14,075
  15,164
  16,289
  17,454
  18,659
  19,908
  21,203
  22,547
  23,944
  25,396
  26,907
Retained Cash Flow (-), $m
  -64
  -489
  -637
  -807
  -1,000
  -1,212
  -1,440
  -1,683
  -1,935
  -2,193
  -2,455
  -2,717
  -2,977
  -3,233
  -3,483
  -3,728
  -3,968
  -4,201
  -4,430
  -4,655
  -4,878
  -5,099
  -5,320
  -5,543
  -5,769
  -6,000
  -6,237
  -6,481
  -6,735
  -7,000
  -7,276
Prev. year cash balance distribution, $m
 
  169
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  699
  688
  872
  1,079
  1,308
  1,555
  1,816
  2,088
  2,367
  2,650
  3,089
  3,608
  4,169
  4,771
  5,414
  6,095
  6,815
  7,572
  8,367
  9,197
  10,065
  10,969
  11,911
  12,890
  13,908
  14,966
  16,066
  17,208
  18,396
  19,631
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  657
  603
  708
  807
  894
  964
  1,012
  1,037
  1,037
  1,014
  1,021
  1,018
  992
  945
  881
  802
  714
  622
  529
  439
  356
  282
  217
  163
  119
  85
  59
  39
  25
  16
Current shareholders' claim on cash, %
  100
  81.7
  69.3
  60.7
  54.7
  50.4
  47.4
  45.4
  44.1
  43.4
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3
  43.3

M.D.C. Holdings, Inc., through its subsidiaries, engages in homebuilding and financial service businesses in the United States. Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name. The company conducts its homebuilding operations in Arizona, California, Nevada, Washington, Colorado, Utah, Virginia, Florida, Maryland, Pennsylvania, and New Jersey. Its financial services operations consist of originating mortgage loans primarily for homebuyers; providing insurance coverage primarily to its homebuilding subsidiaries and subcontractors for homes sold by its homebuilding subsidiaries, and for work performed in completed subdivisions; acting as a re-insurer on the claims; selling third-party personal property and casualty insurance products to homebuyers; and offering title agency services to homebuilding subsidiaries and customers. M.D.C. Holdings, Inc. was founded in 1972 and is based in Denver, Colorado.

FINANCIAL RATIOS  of  M.D.C. Holdings (MDC)

Valuation Ratios
P/E Ratio 16
Price to Sales 0.7
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 14.2
Price to Free Cash Flow 14.7
Growth Rates
Sales Growth Rate 21.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 300%
Cap. Spend. - 3 Yr. Gr. Rate 14.9%
Financial Strength
Quick Ratio 2
Current Ratio NaN
LT Debt to Equity 64.9%
Total Debt to Equity 73.6%
Interest Coverage 153
Management Effectiveness
Return On Assets 4.2%
Ret/ On Assets - 3 Yr. Avg. 3.2%
Return On Total Capital 4.6%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 8%
Return On Equity - 3 Yr. Avg. 6.2%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 17%
Gross Margin - 3 Yr. Avg. 17.3%
EBITDA Margin 6.8%
EBITDA Margin - 3 Yr. Avg. 6.2%
Operating Margin 6.4%
Oper. Margin - 3 Yr. Avg. 5.3%
Pre-Tax Margin 6.5%
Pre-Tax Margin - 3 Yr. Avg. 5.9%
Net Profit Margin 4.4%
Net Profit Margin - 3 Yr. Avg. 3.9%
Effective Tax Rate 32.2%
Eff/ Tax Rate - 3 Yr. Avg. 34.6%
Payout Ratio 47.6%

MDC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MDC stock intrinsic value calculation we used $2327 million for the last fiscal year's total revenue generated by M.D.C. Holdings. The default revenue input number comes from 2016 income statement of M.D.C. Holdings. 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 MDC stock valuation model: a) initial revenue growth rate of 42.6% 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 6.5%, whose default value for MDC is calculated based on our internal credit rating of M.D.C. Holdings, 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 M.D.C. Holdings.
    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 MDC stock the variable cost ratio is equal to 87.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $156 million in the base year in the intrinsic value calculation for MDC 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 M.D.C. Holdings.

Corporate tax rate of 27% is the nominal tax rate for M.D.C. Holdings. 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 MDC 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 MDC are equal to 1.2%.

Life of production assets of 10 years is the average useful life of capital assets used in M.D.C. Holdings 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 MDC is equal to -7.3%. 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 - $1320 million for M.D.C. Holdings - 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 50.216 million for M.D.C. Holdings 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 M.D.C. Holdings at the current share price and the inputted number of shares is $1.6 billion.

RELATED COMPANIES Price Int.Val. Rating
HOV Hovnanian Ente 2.02 0.80  str.sell
KBH KB Home 22.21 65.01  str.buy
LEN Lennar Cl A 51.88 119.06  str.buy
CAA CalAtlantic Gr 34.26 67.09  str.buy
TOL Toll Brothers 38.15 77.40  str.buy
DHI D.R. Horton 35.69 116.35  str.buy
NVR NVR 2,683.55 3,724.79  buy
MHO M/I Homes 25.08 78.01  str.buy
LGIH LGI Homes 45.98 35.36  hold
MTH Meritage Homes 42.10 65.74  str.buy

COMPANY NEWS

▶ Top Fund Managers Are Buying These 4 Highly Rated Stocks   [Aug-04-17 12:45PM  Investor's Business Daily]
▶ M.D.C. Holdings beats Street 2Q forecasts   [Aug-01-17 09:32PM  Associated Press]
▶ As Homebuilders Wrap Up Earnings Season, 3 Key Names Yet To Report   [Jul-31-17 07:00PM  Investor's Business Daily]
▶ M.D.C. Holdings Declares Quarterly Cash Dividend   [Jul-24-17 08:34PM  PR Newswire]
▶ This Homebuilder Wins By Wooing New Entrants To Homeownership   [Jul-14-17 04:42PM  Investor's Business Daily]
▶ Real Estate Tech Stock Trying To Close On New Breakout   [Jul-07-17 04:10PM  Investor's Business Daily]
▶ As Homebuilders Show Strength, This Breakout Stock Gets Upgraded   [Jul-03-17 12:32PM  Investor's Business Daily]
▶ Nasdaq Cuts Losses; Is It Time To Take Gains In Apple, Other Big-Cap Techs?   [Jun-29-17 04:30PM  Investor's Business Daily]
▶ KB Home Rallies On Earnings; Peer MDC Breaks Out   [Jun-28-17 05:34AM  Investor's Business Daily]
▶ KB Home Earnings, Revenue Beat As These 4 Builders Near Buy Points   [Jun-27-17 04:54PM  Investor's Business Daily]
▶ May New Home Sales Top Views; Builder MDC Sets Up In Base   [Jun-23-17 04:45AM  Investor's Business Daily]
▶ Homebuilder Opens New Neighborhood In Las Vegas   [Jun-08-17 05:01PM  PR Newswire]
▶ Tesla, American Airlines Buoy Nasdaq; NYSE Indexes Lag A Bit   [May-09-17 02:56PM  Investor's Business Daily]
▶ M.D.C. Holdings tops Street 1Q forecasts   [06:08AM  Associated Press]
▶ 10 Best Home Builders in California   [Apr-26-17 06:20PM  Insider Monkey]
▶ M.D.C. Holdings Declares Quarterly Cash Dividend   [Apr-24-17 07:52PM  PR Newswire]
▶ Buy homebuilders on the dip?   [Mar-22-17 04:18PM  CNBC Videos]
▶ National Homebuilder Celebrates 40th Anniversary   [Feb-02-17 05:24PM  PR Newswire]
▶ M.D.C. Holdings beats Street 4Q forecasts   [06:16AM  Associated Press]
▶ M.D.C. Holdings Declares Quarterly Cash Dividend   [Jan-23-17 10:22PM  PR Newswire]
▶ Should You Avoid M.D.C. Holdings, Inc. (MDC)?   [Dec-12-16 01:06PM  at Insider Monkey]
▶ So Starbucks Is Getting A New CEO; Will It Work This Time?   [Dec-02-16 10:14AM  at Barrons.com]
▶ Is Depomed Inc (DEPO) A Good Stock To Buy?   [08:40AM  at Insider Monkey]
▶ M.D.C. Holdings Declares Quarterly Cash Dividend   [Oct-24-16 07:42PM  PR Newswire]
Stock chart of MDC Financial statements of MDC
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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