Intrinsic value of Martin Marietta Materials - MLM

Previous Close

$223.35

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$223.35

 
Intrinsic value

$277.04

 
Up/down potential

+24%

 
Rating

buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of MLM 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 14.5

 

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, %
  7.88
  12.30
  11.57
  10.91
  10.32
  9.79
  9.31
  8.88
  8.49
  8.14
  7.83
  7.55
  7.29
  7.06
  6.86
  6.67
  6.50
  6.35
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
Revenue, $m
  3,819
  4,289
  4,785
  5,307
  5,855
  6,428
  7,027
  7,650
  8,300
  8,976
  9,679
  10,409
  11,168
  11,956
  12,776
  13,628
  14,515
  15,437
  16,396
  17,396
  18,437
  19,523
  20,655
  21,836
  23,069
  24,357
  25,702
  27,109
  28,579
  30,117
  31,727
Variable operating expenses, $m
 
  1,372
  1,505
  1,646
  1,794
  1,948
  2,109
  2,277
  2,453
  2,635
  2,824
  2,805
  3,009
  3,222
  3,443
  3,672
  3,911
  4,160
  4,418
  4,688
  4,968
  5,261
  5,566
  5,884
  6,216
  6,563
  6,926
  7,305
  7,701
  8,116
  8,549
Fixed operating expenses, $m
 
  2,002
  2,052
  2,103
  2,156
  2,210
  2,265
  2,322
  2,380
  2,439
  2,500
  2,563
  2,627
  2,692
  2,760
  2,829
  2,899
  2,972
  3,046
  3,122
  3,200
  3,280
  3,362
  3,446
  3,532
  3,621
  3,711
  3,804
  3,899
  3,997
  4,097
Total operating expenses, $m
  3,151
  3,374
  3,557
  3,749
  3,950
  4,158
  4,374
  4,599
  4,833
  5,074
  5,324
  5,368
  5,636
  5,914
  6,203
  6,501
  6,810
  7,132
  7,464
  7,810
  8,168
  8,541
  8,928
  9,330
  9,748
  10,184
  10,637
  11,109
  11,600
  12,113
  12,646
Operating income, $m
  667
  915
  1,228
  1,558
  1,906
  2,270
  2,652
  3,052
  3,468
  3,902
  4,355
  5,042
  5,532
  6,042
  6,574
  7,127
  7,704
  8,305
  8,932
  9,586
  10,269
  10,982
  11,727
  12,506
  13,320
  14,173
  15,065
  16,000
  16,979
  18,005
  19,081
EBITDA, $m
  952
  1,336
  1,673
  2,028
  2,402
  2,794
  3,204
  3,633
  4,081
  4,548
  5,034
  5,539
  6,066
  6,614
  7,185
  7,779
  8,398
  9,044
  9,716
  10,418
  11,151
  11,916
  12,715
  13,550
  14,424
  15,338
  16,295
  17,297
  18,346
  19,446
  20,599
Interest expense (income), $m
  74
  74
  91
  109
  128
  148
  169
  191
  214
  238
  262
  288
  315
  343
  372
  402
  433
  465
  499
  534
  571
  609
  649
  690
  734
  779
  826
  875
  927
  981
  1,037
Earnings before tax, $m
  607
  842
  1,137
  1,449
  1,778
  2,122
  2,483
  2,861
  3,254
  3,665
  4,092
  4,753
  5,217
  5,700
  6,202
  6,726
  7,271
  7,840
  8,433
  9,052
  9,698
  10,373
  11,078
  11,815
  12,587
  13,394
  14,239
  15,125
  16,052
  17,025
  18,044
Tax expense, $m
  182
  227
  307
  391
  480
  573
  670
  772
  879
  989
  1,105
  1,283
  1,409
  1,539
  1,675
  1,816
  1,963
  2,117
  2,277
  2,444
  2,618
  2,801
  2,991
  3,190
  3,398
  3,616
  3,845
  4,084
  4,334
  4,597
  4,872
Net income, $m
  425
  614
  830
  1,058
  1,298
  1,549
  1,813
  2,088
  2,376
  2,675
  2,987
  3,470
  3,808
  4,161
  4,528
  4,910
  5,308
  5,723
  6,156
  6,608
  7,079
  7,572
  8,087
  8,625
  9,188
  9,778
  10,395
  11,041
  11,718
  12,428
  13,172

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  50
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  7,301
  8,138
  9,080
  10,070
  11,110
  12,197
  13,333
  14,517
  15,750
  17,032
  18,366
  19,751
  21,191
  22,688
  24,243
  25,860
  27,542
  29,291
  31,113
  33,009
  34,985
  37,045
  39,193
  41,434
  43,774
  46,218
  48,771
  51,440
  54,230
  57,149
  60,203
Adjusted assets (=assets-cash), $m
  7,251
  8,138
  9,080
  10,070
  11,110
  12,197
  13,333
  14,517
  15,750
  17,032
  18,366
  19,751
  21,191
  22,688
  24,243
  25,860
  27,542
  29,291
  31,113
  33,009
  34,985
  37,045
  39,193
  41,434
  43,774
  46,218
  48,771
  51,440
  54,230
  57,149
  60,203
Revenue / Adjusted assets
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
  0.527
Average production assets, $m
  3,801
  4,267
  4,761
  5,281
  5,826
  6,396
  6,991
  7,612
  8,259
  8,931
  9,630
  10,357
  11,112
  11,897
  12,712
  13,560
  14,442
  15,359
  16,314
  17,309
  18,345
  19,425
  20,551
  21,727
  22,954
  24,235
  25,574
  26,973
  28,436
  29,967
  31,568
Working capital, $m
  539
  751
  837
  929
  1,025
  1,125
  1,230
  1,339
  1,453
  1,571
  1,694
  1,822
  1,954
  2,092
  2,236
  2,385
  2,540
  2,701
  2,869
  3,044
  3,227
  3,416
  3,615
  3,821
  4,037
  4,262
  4,498
  4,744
  5,001
  5,271
  5,552
Total debt, $m
  1,686
  2,016
  2,420
  2,845
  3,291
  3,758
  4,245
  4,753
  5,282
  5,832
  6,404
  6,998
  7,616
  8,258
  8,925
  9,619
  10,340
  11,091
  11,872
  12,686
  13,534
  14,417
  15,339
  16,300
  17,304
  18,352
  19,448
  20,593
  21,790
  23,042
  24,352
Total liabilities, $m
  3,161
  3,491
  3,895
  4,320
  4,766
  5,233
  5,720
  6,228
  6,757
  7,307
  7,879
  8,473
  9,091
  9,733
  10,400
  11,094
  11,815
  12,566
  13,347
  14,161
  15,009
  15,892
  16,814
  17,775
  18,779
  19,827
  20,923
  22,068
  23,265
  24,517
  25,827
Total equity, $m
  4,140
  4,647
  5,184
  5,750
  6,344
  6,965
  7,613
  8,289
  8,993
  9,725
  10,487
  11,278
  12,100
  12,955
  13,843
  14,766
  15,726
  16,725
  17,765
  18,848
  19,977
  21,153
  22,379
  23,659
  24,995
  26,390
  27,848
  29,372
  30,965
  32,632
  34,376
Total liabilities and equity, $m
  7,301
  8,138
  9,079
  10,070
  11,110
  12,198
  13,333
  14,517
  15,750
  17,032
  18,366
  19,751
  21,191
  22,688
  24,243
  25,860
  27,541
  29,291
  31,112
  33,009
  34,986
  37,045
  39,193
  41,434
  43,774
  46,217
  48,771
  51,440
  54,230
  57,149
  60,203
Debt-to-equity ratio
  0.407
  0.430
  0.470
  0.490
  0.520
  0.540
  0.560
  0.570
  0.590
  0.600
  0.610
  0.620
  0.630
  0.640
  0.640
  0.650
  0.660
  0.660
  0.670
  0.670
  0.680
  0.680
  0.690
  0.690
  0.690
  0.700
  0.700
  0.700
  0.700
  0.710
  0.710
Adjusted equity ratio
  0.564
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571
  0.571

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  425
  614
  830
  1,058
  1,298
  1,549
  1,813
  2,088
  2,376
  2,675
  2,987
  3,470
  3,808
  4,161
  4,528
  4,910
  5,308
  5,723
  6,156
  6,608
  7,079
  7,572
  8,087
  8,625
  9,188
  9,778
  10,395
  11,041
  11,718
  12,428
  13,172
Depreciation, amort., depletion, $m
  285
  421
  445
  470
  496
  523
  552
  582
  613
  645
  679
  498
  534
  572
  611
  652
  694
  738
  784
  832
  882
  934
  988
  1,045
  1,104
  1,165
  1,230
  1,297
  1,367
  1,441
  1,518
Funds from operations, $m
  584
  1,036
  1,275
  1,528
  1,794
  2,073
  2,365
  2,670
  2,989
  3,320
  3,666
  3,968
  4,343
  4,733
  5,139
  5,562
  6,002
  6,462
  6,940
  7,440
  7,961
  8,506
  9,075
  9,670
  10,292
  10,943
  11,624
  12,338
  13,085
  13,869
  14,690
Change in working capital, $m
  -95
  82
  87
  91
  96
  100
  105
  109
  114
  118
  123
  128
  133
  138
  143
  149
  155
  161
  168
  175
  182
  190
  198
  207
  216
  225
  235
  246
  257
  269
  282
Cash from operations, $m
  679
  1,087
  1,188
  1,436
  1,698
  1,972
  2,260
  2,561
  2,875
  3,202
  3,543
  3,840
  4,210
  4,595
  4,995
  5,413
  5,847
  6,300
  6,772
  7,265
  7,779
  8,316
  8,877
  9,463
  10,076
  10,717
  11,389
  12,092
  12,828
  13,599
  14,408
Maintenance CAPEX, $m
  0
  -183
  -205
  -229
  -254
  -280
  -307
  -336
  -366
  -397
  -429
  -463
  -498
  -534
  -572
  -611
  -652
  -694
  -738
  -784
  -832
  -882
  -934
  -988
  -1,045
  -1,104
  -1,165
  -1,230
  -1,297
  -1,367
  -1,441
New CAPEX, $m
  -387
  -466
  -494
  -520
  -545
  -570
  -595
  -621
  -646
  -672
  -699
  -727
  -755
  -785
  -816
  -848
  -882
  -917
  -955
  -994
  -1,036
  -1,080
  -1,126
  -1,175
  -1,227
  -1,281
  -1,339
  -1,399
  -1,463
  -1,530
  -1,601
Cash from investing activities, $m
  -555
  -649
  -699
  -749
  -799
  -850
  -902
  -957
  -1,012
  -1,069
  -1,128
  -1,190
  -1,253
  -1,319
  -1,388
  -1,459
  -1,534
  -1,611
  -1,693
  -1,778
  -1,868
  -1,962
  -2,060
  -2,163
  -2,272
  -2,385
  -2,504
  -2,629
  -2,760
  -2,897
  -3,042
Free cash flow, $m
  124
  438
  489
  688
  899
  1,122
  1,357
  1,604
  1,862
  2,133
  2,415
  2,650
  2,957
  3,276
  3,608
  3,954
  4,314
  4,688
  5,079
  5,486
  5,911
  6,354
  6,817
  7,300
  7,805
  8,333
  8,885
  9,463
  10,068
  10,702
  11,366
Issuance/(repayment) of debt, $m
  97
  380
  404
  425
  446
  467
  487
  508
  529
  550
  572
  594
  618
  642
  667
  694
  721
  751
  781
  814
  848
  884
  922
  962
  1,004
  1,048
  1,095
  1,145
  1,197
  1,252
  1,310
Issuance/(repurchase) of shares, $m
  -238
  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  
  -137
  380
  404
  425
  446
  467
  487
  508
  529
  550
  572
  594
  618
  642
  667
  694
  721
  751
  781
  814
  848
  884
  922
  962
  1,004
  1,048
  1,095
  1,145
  1,197
  1,252
  1,310
Total cash flow (excl. dividends), $m
  -13
  818
  893
  1,113
  1,345
  1,589
  1,844
  2,112
  2,391
  2,683
  2,987
  3,245
  3,575
  3,918
  4,275
  4,647
  5,035
  5,439
  5,860
  6,300
  6,759
  7,238
  7,738
  8,261
  8,808
  9,381
  9,980
  10,608
  11,265
  11,954
  12,676
Retained Cash Flow (-), $m
  -83
  -507
  -538
  -566
  -594
  -621
  -648
  -676
  -704
  -732
  -761
  -791
  -822
  -854
  -888
  -923
  -960
  -999
  -1,040
  -1,083
  -1,128
  -1,176
  -1,227
  -1,280
  -1,336
  -1,395
  -1,458
  -1,524
  -1,593
  -1,667
  -1,744
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
 
  312
  355
  547
  751
  968
  1,196
  1,436
  1,687
  1,951
  2,225
  2,454
  2,752
  3,063
  3,387
  3,724
  4,075
  4,440
  4,820
  5,217
  5,630
  6,062
  6,512
  6,981
  7,472
  7,986
  8,522
  9,084
  9,672
  10,287
  10,932
Discount rate, %
 
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
 
  297
  321
  467
  602
  725
  831
  920
  990
  1,040
  1,070
  1,054
  1,048
  1,023
  983
  929
  863
  789
  710
  627
  545
  465
  390
  321
  258
  204
  157
  119
  88
  63
  44
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

Martin Marietta Materials, Inc., together with its subsidiaries, supplies aggregates products and heavy building materials for the construction industry in the United States and internationally. The company mines, processes, and sells granite, limestone, sand, gravel, and other aggregate products for use in the public infrastructure, and nonresidential and residential construction industries, as well as in the agriculture, railroad ballast, chemical, and other applications. It also offers asphalt products, ready mixed concrete, and road paving construction services; and produces Portland and specialty cements for use in infrastructure projects, and nonresidential and residential construction, as well as in the railroad, agricultural, utility, and environmental industries. In addition, the company manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for use in the steel industry. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1993 and is headquartered in Raleigh, North Carolina.

FINANCIAL RATIOS  of  Martin Marietta Materials (MLM)

Valuation Ratios
P/E Ratio 33.2
Price to Sales 3.7
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 20.8
Price to Free Cash Flow 48.3
Growth Rates
Sales Growth Rate 7.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 21.7%
Cap. Spend. - 3 Yr. Gr. Rate 20.1%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 36.4%
Total Debt to Equity 40.7%
Interest Coverage 9
Management Effectiveness
Return On Assets 6.7%
Ret/ On Assets - 3 Yr. Avg. 5.1%
Return On Total Capital 7.4%
Ret/ On T. Cap. - 3 Yr. Avg. 5.4%
Return On Equity 10.4%
Return On Equity - 3 Yr. Avg. 7.5%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 23.8%
Gross Margin - 3 Yr. Avg. 20.6%
EBITDA Margin 25.3%
EBITDA Margin - 3 Yr. Avg. 21.7%
Operating Margin 17.5%
Oper. Margin - 3 Yr. Avg. 13.9%
Pre-Tax Margin 15.9%
Pre-Tax Margin - 3 Yr. Avg. 12%
Net Profit Margin 11.1%
Net Profit Margin - 3 Yr. Avg. 8.2%
Effective Tax Rate 30%
Eff/ Tax Rate - 3 Yr. Avg. 32.8%
Payout Ratio 24.7%

MLM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MLM stock intrinsic value calculation we used $3819 million for the last fiscal year's total revenue generated by Martin Marietta Materials. The default revenue input number comes from 2016 income statement of Martin Marietta Materials. 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 MLM stock valuation model: a) initial revenue growth rate of 12.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.9%, whose default value for MLM is calculated based on our internal credit rating of Martin Marietta Materials, 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 Martin Marietta Materials.
    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 MLM stock the variable cost ratio is equal to 32.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1953 million in the base year in the intrinsic value calculation for MLM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.5% for Martin Marietta Materials.

Corporate tax rate of 27% is the nominal tax rate for Martin Marietta Materials. 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 MLM 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 MLM are equal to 99.5%.

Life of production assets of 20.8 years is the average useful life of capital assets used in Martin Marietta Materials 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 MLM is equal to 17.5%. 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 - $4140 million for Martin Marietta Materials - 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 65.063 million for Martin Marietta Materials 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 Martin Marietta Materials at the current share price and the inputted number of shares is $14.5 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
VMC Vulcan Materia 122.80 52.50  str.sell
CX Cemex ADR 9.23 17.40  str.buy
SUM Summit Materia 26.02 27.26  hold
EXP Eagle Material 97.15 34.13  str.sell

COMPANY NEWS

▶ 3 Top Infrastructure Stocks to Buy in 2017   [Apr-22-17 11:19AM  Motley Fool]
▶ 8 N.C. companies are 'interested vendors' to build Trump's border wall   [Apr-17-17 03:05PM  American City Business Journals]
▶ Notable drops in market momentum   [Apr-11-17 02:16PM  CNBC Videos]
▶ Forget About the 'Trump Trade' Narrative   [Apr-03-17 12:31PM  The Wall Street Journal]
▶ Stocks Weaken At Close; Dow, S&P 500 Take First Monthly Hits Since October   [Mar-31-17 04:25PM  Investor's Business Daily]
▶ Buy Strength in Martin Marietta   [09:10AM  TheStreet.com]
▶ The Biggest Loser: Martin Marietta Materials Drops 2.9%   [Mar-24-17 05:47PM  Barrons.com]
▶ Cramer: 3 Health Care Bill Scenarios, 3 Game Plans   [Mar-23-17 07:01PM  TheStreet.com]
▶ [$$] Our Skepticism on AmTrust Reserves Borne Out   [Mar-04-17 02:16AM  at Barrons.com]
▶ Martin Marietta CEO: 2017 could be a year of deals   [Feb-15-17 10:15AM  at bizjournals.com]
▶ [$$] Martin Marietta Optimistic on Infrastructure Investment   [08:51AM  at The Wall Street Journal]
▶ Vulcan Materials: So Much for the Trump Infrastructure Trade   [Feb-07-17 11:27AM  at Barrons.com]
▶ Martin Marietta Materials, Inc. (MLM) Stock Gains Thanks to Trump   [Jan-27-17 09:31AM  at Insider Monkey]
▶ Do Hedge Funds Love Cincinnati Financial Corporation (CINF)?   [Dec-02-16 08:55AM  at Insider Monkey]
▶ Infrastructure Stocks Overheated on Trump's Trillion-Dollar Plan   [Dec-01-16 02:52PM  at The Wall Street Journal]
▶ [$$] Numbers Don't Add Up for Trump's Trillion-Dollar Building Plan   [Nov-30-16 11:24PM  at The Wall Street Journal]
▶ Hedge Funds Are Dumping Martin Marietta Materials, Inc. (MLM)   [Nov-25-16 06:27AM  at Insider Monkey]
▶ Martin Marietta CEO on infrastructure   [Nov-21-16 04:41PM  at CNBC]
Stock chart of MLM Financial statements of MLM
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.