Intrinsic value of MasTec - MTZ

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$41.30

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$41.30

 
Intrinsic value

$217.02

 
Up/down potential

+425%

 
Rating

str. buy

 
Value-price divergence* premium content

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

We calculate the intrinsic value of MTZ 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 3.3

 

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, %
  22.03
  18.90
  17.51
  16.26
  15.13
  14.12
  13.21
  12.39
  11.65
  10.98
  10.39
  9.85
  9.36
  8.93
  8.53
  8.18
  7.86
  7.58
  7.32
  7.09
  6.88
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
  5.81
  5.73
  5.65
Revenue, $m
  5,135
  6,106
  7,175
  8,341
  9,603
  10,959
  12,407
  13,944
  15,568
  17,278
  19,072
  20,950
  22,911
  24,956
  27,086
  29,302
  31,605
  34,000
  36,488
  39,073
  41,761
  44,554
  47,460
  50,482
  53,628
  56,905
  60,318
  63,875
  67,585
  71,456
  75,497
Variable operating expenses, $m
 
  4,157
  4,868
  5,643
  6,482
  7,383
  8,345
  9,367
  10,446
  11,582
  12,775
  13,923
  15,227
  16,586
  18,001
  19,474
  21,005
  22,596
  24,250
  25,968
  27,754
  29,611
  31,542
  33,551
  35,642
  37,819
  40,087
  42,452
  44,917
  47,490
  50,175
Fixed operating expenses, $m
 
  1,419
  1,454
  1,490
  1,528
  1,566
  1,605
  1,645
  1,686
  1,728
  1,772
  1,816
  1,861
  1,908
  1,956
  2,004
  2,055
  2,106
  2,159
  2,213
  2,268
  2,325
  2,383
  2,442
  2,503
  2,566
  2,630
  2,696
  2,763
  2,832
  2,903
Total operating expenses, $m
  4,862
  5,576
  6,322
  7,133
  8,010
  8,949
  9,950
  11,012
  12,132
  13,310
  14,547
  15,739
  17,088
  18,494
  19,957
  21,478
  23,060
  24,702
  26,409
  28,181
  30,022
  31,936
  33,925
  35,993
  38,145
  40,385
  42,717
  45,148
  47,680
  50,322
  53,078
Operating income, $m
  273
  530
  853
  1,208
  1,594
  2,010
  2,457
  2,932
  3,436
  3,967
  4,525
  5,211
  5,823
  6,462
  7,129
  7,823
  8,546
  9,297
  10,079
  10,893
  11,739
  12,619
  13,535
  14,489
  15,484
  16,520
  17,600
  18,728
  19,905
  21,134
  22,418
EBITDA, $m
  438
  713
  1,051
  1,422
  1,826
  2,261
  2,728
  3,224
  3,750
  4,305
  4,888
  5,500
  6,139
  6,807
  7,503
  8,228
  8,982
  9,767
  10,583
  11,432
  12,315
  13,234
  14,191
  15,187
  16,224
  17,306
  18,433
  19,610
  20,838
  22,121
  23,461
Interest expense (income), $m
  48
  46
  65
  85
  106
  130
  156
  183
  211
  242
  274
  308
  343
  379
  418
  458
  499
  542
  587
  634
  682
  733
  785
  839
  896
  955
  1,016
  1,080
  1,147
  1,217
  1,289
Earnings before tax, $m
  226
  483
  788
  1,123
  1,487
  1,880
  2,301
  2,749
  3,224
  3,725
  4,252
  4,903
  5,480
  6,083
  6,711
  7,366
  8,047
  8,755
  9,492
  10,259
  11,056
  11,886
  12,750
  13,650
  14,587
  15,565
  16,584
  17,647
  18,758
  19,917
  21,129
Tax expense, $m
  92
  130
  213
  303
  402
  508
  621
  742
  871
  1,006
  1,148
  1,324
  1,480
  1,642
  1,812
  1,989
  2,173
  2,364
  2,563
  2,770
  2,985
  3,209
  3,443
  3,685
  3,939
  4,202
  4,478
  4,765
  5,065
  5,378
  5,705
Net income, $m
  131
  353
  575
  820
  1,086
  1,373
  1,680
  2,007
  2,354
  2,719
  3,104
  3,579
  4,001
  4,441
  4,899
  5,377
  5,874
  6,391
  6,929
  7,489
  8,071
  8,677
  9,308
  9,964
  10,649
  11,362
  12,106
  12,883
  13,693
  14,540
  15,424

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  39
  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
  3,183
  3,739
  4,394
  5,108
  5,881
  6,711
  7,598
  8,539
  9,533
  10,580
  11,679
  12,829
  14,030
  15,283
  16,587
  17,943
  19,354
  20,820
  22,344
  23,927
  25,573
  27,284
  29,063
  30,914
  32,840
  34,847
  36,937
  39,115
  41,387
  43,758
  46,232
Adjusted assets (=assets-cash), $m
  3,144
  3,739
  4,394
  5,108
  5,881
  6,711
  7,598
  8,539
  9,533
  10,580
  11,679
  12,829
  14,030
  15,283
  16,587
  17,943
  19,354
  20,820
  22,344
  23,927
  25,573
  27,284
  29,063
  30,914
  32,840
  34,847
  36,937
  39,115
  41,387
  43,758
  46,232
Revenue / Adjusted assets
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
  1.633
Average production assets, $m
  744
  885
  1,040
  1,209
  1,392
  1,589
  1,799
  2,022
  2,257
  2,505
  2,765
  3,038
  3,322
  3,619
  3,927
  4,249
  4,583
  4,930
  5,291
  5,666
  6,055
  6,460
  6,882
  7,320
  7,776
  8,251
  8,746
  9,262
  9,800
  10,361
  10,947
Working capital, $m
  562
  702
  825
  959
  1,104
  1,260
  1,427
  1,604
  1,790
  1,987
  2,193
  2,409
  2,635
  2,870
  3,115
  3,370
  3,635
  3,910
  4,196
  4,493
  4,802
  5,124
  5,458
  5,805
  6,167
  6,544
  6,937
  7,346
  7,772
  8,217
  8,682
Total debt, $m
  1,026
  1,374
  1,800
  2,265
  2,768
  3,309
  3,886
  4,499
  5,146
  5,828
  6,543
  7,292
  8,074
  8,889
  9,738
  10,621
  11,540
  12,494
  13,486
  14,517
  15,588
  16,702
  17,860
  19,065
  20,319
  21,625
  22,986
  24,404
  25,883
  27,426
  29,037
Total liabilities, $m
  2,087
  2,434
  2,860
  3,325
  3,828
  4,369
  4,946
  5,559
  6,206
  6,888
  7,603
  8,352
  9,134
  9,949
  10,798
  11,681
  12,600
  13,554
  14,546
  15,577
  16,648
  17,762
  18,920
  20,125
  21,379
  22,685
  24,046
  25,464
  26,943
  28,486
  30,097
Total equity, $m
  1,097
  1,305
  1,533
  1,783
  2,052
  2,342
  2,652
  2,980
  3,327
  3,693
  4,076
  4,477
  4,897
  5,334
  5,789
  6,262
  6,755
  7,266
  7,798
  8,351
  8,925
  9,522
  10,143
  10,789
  11,461
  12,161
  12,891
  13,651
  14,444
  15,271
  16,135
Total liabilities and equity, $m
  3,184
  3,739
  4,393
  5,108
  5,880
  6,711
  7,598
  8,539
  9,533
  10,581
  11,679
  12,829
  14,031
  15,283
  16,587
  17,943
  19,355
  20,820
  22,344
  23,928
  25,573
  27,284
  29,063
  30,914
  32,840
  34,846
  36,937
  39,115
  41,387
  43,757
  46,232
Debt-to-equity ratio
  0.935
  1.050
  1.170
  1.270
  1.350
  1.410
  1.470
  1.510
  1.550
  1.580
  1.610
  1.630
  1.650
  1.670
  1.680
  1.700
  1.710
  1.720
  1.730
  1.740
  1.750
  1.750
  1.760
  1.770
  1.770
  1.780
  1.780
  1.790
  1.790
  1.800
  1.800
Adjusted equity ratio
  0.337
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  131
  353
  575
  820
  1,086
  1,373
  1,680
  2,007
  2,354
  2,719
  3,104
  3,579
  4,001
  4,441
  4,899
  5,377
  5,874
  6,391
  6,929
  7,489
  8,071
  8,677
  9,308
  9,964
  10,649
  11,362
  12,106
  12,883
  13,693
  14,540
  15,424
Depreciation, amort., depletion, $m
  165
  184
  199
  215
  232
  251
  271
  292
  315
  338
  363
  289
  316
  345
  374
  405
  436
  470
  504
  540
  577
  615
  655
  697
  741
  786
  833
  882
  933
  987
  1,043
Funds from operations, $m
  92
  537
  774
  1,035
  1,318
  1,623
  1,951
  2,299
  2,668
  3,057
  3,467
  3,869
  4,317
  4,785
  5,273
  5,781
  6,310
  6,861
  7,433
  8,028
  8,648
  9,292
  9,963
  10,662
  11,389
  12,148
  12,939
  13,765
  14,626
  15,526
  16,467
Change in working capital, $m
  -114
  112
  123
  134
  145
  156
  166
  177
  187
  197
  206
  216
  226
  235
  245
  255
  265
  275
  286
  297
  309
  321
  334
  348
  362
  377
  393
  409
  427
  445
  465
Cash from operations, $m
  206
  411
  651
  900
  1,173
  1,468
  1,784
  2,122
  2,481
  2,861
  3,260
  3,653
  4,092
  4,550
  5,028
  5,527
  6,046
  6,585
  7,147
  7,731
  8,339
  8,971
  9,629
  10,314
  11,028
  11,771
  12,547
  13,356
  14,200
  15,081
  16,002
Maintenance CAPEX, $m
  0
  -71
  -84
  -99
  -115
  -133
  -151
  -171
  -193
  -215
  -239
  -263
  -289
  -316
  -345
  -374
  -405
  -436
  -470
  -504
  -540
  -577
  -615
  -655
  -697
  -741
  -786
  -833
  -882
  -933
  -987
New CAPEX, $m
  -117
  -142
  -155
  -169
  -183
  -197
  -210
  -223
  -236
  -248
  -260
  -272
  -284
  -297
  -309
  -321
  -334
  -347
  -361
  -375
  -390
  -405
  -421
  -438
  -456
  -475
  -495
  -516
  -538
  -561
  -586
Cash from investing activities, $m
  -141
  -213
  -239
  -268
  -298
  -330
  -361
  -394
  -429
  -463
  -499
  -535
  -573
  -613
  -654
  -695
  -739
  -783
  -831
  -879
  -930
  -982
  -1,036
  -1,093
  -1,153
  -1,216
  -1,281
  -1,349
  -1,420
  -1,494
  -1,573
Free cash flow, $m
  65
  198
  412
  632
  874
  1,138
  1,423
  1,728
  2,053
  2,398
  2,762
  3,117
  3,518
  3,937
  4,375
  4,831
  5,307
  5,802
  6,317
  6,852
  7,409
  7,989
  8,592
  9,220
  9,874
  10,556
  11,266
  12,007
  12,780
  13,587
  14,430
Issuance/(repayment) of debt, $m
  -14
  387
  426
  465
  503
  541
  577
  613
  647
  682
  715
  749
  782
  815
  849
  883
  918
  955
  992
  1,031
  1,071
  1,114
  1,158
  1,205
  1,254
  1,306
  1,361
  1,418
  1,479
  1,543
  1,611
Issuance/(repurchase) of shares, $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
Cash from financing (excl. dividends), $m  
  -29
  387
  426
  465
  503
  541
  577
  613
  647
  682
  715
  749
  782
  815
  849
  883
  918
  955
  992
  1,031
  1,071
  1,114
  1,158
  1,205
  1,254
  1,306
  1,361
  1,418
  1,479
  1,543
  1,611
Total cash flow (excl. dividends), $m
  34
  585
  838
  1,097
  1,378
  1,679
  2,000
  2,341
  2,701
  3,080
  3,477
  3,866
  4,300
  4,752
  5,224
  5,715
  6,225
  6,756
  7,309
  7,883
  8,481
  9,103
  9,751
  10,425
  11,129
  11,862
  12,627
  13,425
  14,259
  15,130
  16,040
Retained Cash Flow (-), $m
  -157
  -208
  -228
  -249
  -270
  -290
  -309
  -328
  -347
  -365
  -383
  -401
  -419
  -437
  -455
  -474
  -492
  -512
  -532
  -553
  -574
  -597
  -621
  -646
  -672
  -700
  -729
  -760
  -793
  -827
  -864
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
 
  377
  609
  848
  1,108
  1,389
  1,691
  2,012
  2,354
  2,714
  3,093
  3,464
  3,881
  4,315
  4,769
  5,241
  5,733
  6,245
  6,777
  7,330
  7,906
  8,506
  9,130
  9,779
  10,456
  11,162
  11,897
  12,665
  13,466
  14,303
  15,177
Discount rate, %
 
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
 
  353
  531
  683
  818
  934
  1,026
  1,093
  1,133
  1,147
  1,135
  1,091
  1,036
  965
  881
  788
  691
  594
  500
  412
  332
  261
  201
  151
  110
  79
  54
  37
  24
  15
  9
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

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, and utility infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Oil and Gas, Electrical Transmission, Power Generation and Industrial, and Other. The company builds underground and overhead distribution systems, including trenches, conduits, cable, and power lines, which provide wireless and wireline/fiber communications; natural gas, crude oil, and refined product transport pipelines; electrical power generation, transmission, and distribution systems; power generation infrastructure, such as renewable energy; heavy industrial plants; and compressor and pump stations, and treatment plants. It also installs electrical and other energy distribution and transmission systems, power generation facilities, buried and aerial fiber optic cables, coaxial cables, copper lines, satellite dishes, home security, and home automation in various environments. In addition, the company offers maintenance and upgrade support services comprising maintenance of customersÂ’ distribution facilities, networks, and infrastructure, including natural gas and petroleum pipeline, communications, electrical distribution and transmission, and power generation infrastructure; emergency services for accidents or storm damage; and routine replacements and upgrades to overhauls. Its customers include public and private energy providers, pipeline operators, wireless service providers, satellite and broadband operators, local and long distance carriers, and government entities. The company was founded in 1929 and is headquartered in Coral Gables, Florida.

FINANCIAL RATIOS  of  MasTec (MTZ)

Valuation Ratios
P/E Ratio 26
Price to Sales 0.7
Price to Book 3.1
Price to Tangible Book
Price to Cash Flow 16.5
Price to Free Cash Flow 38.3
Growth Rates
Sales Growth Rate 22%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 39.3%
Cap. Spend. - 3 Yr. Gr. Rate -1.5%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 87.6%
Total Debt to Equity 93.5%
Interest Coverage 6
Management Effectiveness
Return On Assets 5.2%
Ret/ On Assets - 3 Yr. Avg. 3%
Return On Total Capital 6.4%
Ret/ On T. Cap. - 3 Yr. Avg. 2.8%
Return On Equity 12.9%
Return On Equity - 3 Yr. Avg. 5.3%
Asset Turnover 1.7
Profitability Ratios
Gross Margin 13.5%
Gross Margin - 3 Yr. Avg. 12.9%
EBITDA Margin 8.5%
EBITDA Margin - 3 Yr. Avg. 6.9%
Operating Margin 5.3%
Oper. Margin - 3 Yr. Avg. 3.4%
Pre-Tax Margin 4.4%
Pre-Tax Margin - 3 Yr. Avg. 2.4%
Net Profit Margin 2.6%
Net Profit Margin - 3 Yr. Avg. 1.1%
Effective Tax Rate 40.7%
Eff/ Tax Rate - 3 Yr. Avg. 20.5%
Payout Ratio 0%

MTZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MTZ stock intrinsic value calculation we used $5135 million for the last fiscal year's total revenue generated by MasTec. The default revenue input number comes from 2016 income statement of MasTec. 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 MTZ stock valuation model: a) initial revenue growth rate of 18.9% 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 6.8%, whose default value for MTZ is calculated based on our internal credit rating of MasTec, 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 MasTec.
    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 MTZ stock the variable cost ratio is equal to 68.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1384 million in the base year in the intrinsic value calculation for MTZ 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 4.7% for MasTec.

Corporate tax rate of 27% is the nominal tax rate for MasTec. 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 MTZ 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 MTZ are equal to 14.5%.

Life of production assets of 10.5 years is the average useful life of capital assets used in MasTec 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 MTZ is equal to 11.5%. 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 - $1097 million for MasTec - 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 78.765 million for MasTec 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 MasTec at the current share price and the inputted number of shares is $3.3 billion.


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COMPANY NEWS

▶ MasTec, Inc. Value Analysis (NYSE:MTZ) : May 19, 2017   [May-19-17 02:34PM  Capital Cube]
▶ 3 Market-Beating Growth Stocks   [May-10-17 04:26PM  Zacks]
▶ Why MasTec, Inc's Shares Popped 10% Today   [May-05-17 03:25PM  Motley Fool]
▶ MasTec Keeps Building Higher   [May-04-17 10:45PM  Motley Fool]
▶ Stocks Surging on the Big Breakout   [Apr-25-17 12:35PM  Zacks]
▶ MasTec Stock Gaining on D.A. Davidson Upgrade   [Apr-13-17 11:34AM  TheStreet.com]
▶ Stock Expecting 2,450% Growth Builds Base Ahead Of Q1 Earnings   [Apr-07-17 03:11PM  Investor's Business Daily]
▶ Top Ranked Growth Stocks to Buy for March 29th   [Mar-29-17 10:05AM  Zacks]
▶ Why MasTec, Inc.'s Shares Popped 12% on Friday   [Feb-03-17 02:32PM  at Motley Fool]
▶ Why Shares of MasTec, Inc. Jumped 11% Today   [Jan-24-17 04:23PM  at Motley Fool]
▶ What's in the Pipeline at Energy Transfer Partners LP?   [Dec-08-16 12:42PM  at Motley Fool]
▶ Should You Buy MasTec, Inc. (MTZ)?   [Nov-29-16 06:35AM  at Insider Monkey]
▶ These 3 Companies Doubled in 2016   [09:14AM  at Motley Fool]
▶ MasTec, Inc. Stock Up 10% Today: Here's Why   [Nov-09-16 09:57PM  at Motley Fool]
Stock chart of MTZ Financial statements of MTZ Annual reports of MTZ
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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