Intrinsic value of Navient - NAVI

Previous Close

$15.78

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$15.78

 
Intrinsic value

$3.20

 
Up/down potential

-80%

 
Rating

str. sell

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying
Our model is not good at valuating stocks of financial companies, such as NAVI.

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

We calculate the intrinsic value of NAVI 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 4.6

 

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, %
  -3.47
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  4,146
  4,229
  4,326
  4,437
  4,562
  4,701
  4,852
  5,018
  5,196
  5,389
  5,596
  5,817
  6,053
  6,305
  6,572
  6,855
  7,156
  7,474
  7,810
  8,165
  8,541
  8,936
  9,354
  9,794
  10,258
  10,746
  11,260
  11,801
  12,371
  12,970
  13,600
Variable operating expenses, $m
 
  2,673
  2,734
  2,804
  2,883
  2,971
  3,067
  3,171
  3,284
  3,406
  3,537
  3,676
  3,826
  3,985
  4,153
  4,333
  4,522
  4,723
  4,936
  5,161
  5,398
  5,648
  5,912
  6,190
  6,483
  6,791
  7,116
  7,458
  7,818
  8,197
  8,595
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
  3,038
  2,673
  2,734
  2,804
  2,883
  2,971
  3,067
  3,171
  3,284
  3,406
  3,537
  3,676
  3,826
  3,985
  4,153
  4,333
  4,522
  4,723
  4,936
  5,161
  5,398
  5,648
  5,912
  6,190
  6,483
  6,791
  7,116
  7,458
  7,818
  8,197
  8,595
Operating income, $m
  1,108
  1,556
  1,592
  1,633
  1,679
  1,730
  1,786
  1,846
  1,912
  1,983
  2,059
  2,141
  2,228
  2,320
  2,418
  2,523
  2,633
  2,750
  2,874
  3,005
  3,143
  3,289
  3,442
  3,604
  3,775
  3,955
  4,144
  4,343
  4,552
  4,773
  5,005
EBITDA, $m
  1,108
  1,626
  1,664
  1,707
  1,755
  1,808
  1,866
  1,930
  1,999
  2,073
  2,152
  2,237
  2,328
  2,425
  2,528
  2,637
  2,752
  2,874
  3,004
  3,140
  3,285
  3,437
  3,598
  3,767
  3,945
  4,133
  4,331
  4,539
  4,758
  4,988
  5,231
Interest expense (income), $m
  2,301
  3,971
  3,710
  3,798
  3,898
  4,010
  4,135
  4,271
  4,420
  4,581
  4,754
  4,941
  5,140
  5,352
  5,578
  5,819
  6,074
  6,344
  6,631
  6,933
  7,253
  7,591
  7,947
  8,323
  8,719
  9,136
  9,576
  10,038
  10,525
  11,038
  11,577
Earnings before tax, $m
  1,108
  -2,414
  -2,118
  -2,165
  -2,219
  -2,280
  -2,349
  -2,425
  -2,508
  -2,598
  -2,695
  -2,800
  -2,912
  -3,032
  -3,160
  -3,296
  -3,441
  -3,594
  -3,757
  -3,928
  -4,110
  -4,302
  -4,505
  -4,719
  -4,944
  -5,182
  -5,432
  -5,695
  -5,973
  -6,265
  -6,572
Tax expense, $m
  427
  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
Net income, $m
  681
  -2,414
  -2,118
  -2,165
  -2,219
  -2,280
  -2,349
  -2,425
  -2,508
  -2,598
  -2,695
  -2,800
  -2,912
  -3,032
  -3,160
  -3,296
  -3,441
  -3,594
  -3,757
  -3,928
  -4,110
  -4,302
  -4,505
  -4,719
  -4,944
  -5,182
  -5,432
  -5,695
  -5,973
  -6,265
  -6,572

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,253
  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
  121,136
  120,826
  123,605
  126,782
  130,348
  134,300
  138,636
  143,358
  148,468
  153,974
  159,884
  166,205
  172,951
  180,133
  187,766
  195,866
  204,449
  213,535
  223,144
  233,296
  244,015
  255,326
  267,254
  279,827
  293,075
  307,027
  321,717
  337,180
  353,450
  370,568
  388,573
Adjusted assets (=assets-cash), $m
  119,883
  120,826
  123,605
  126,782
  130,348
  134,300
  138,636
  143,358
  148,468
  153,974
  159,884
  166,205
  172,951
  180,133
  187,766
  195,866
  204,449
  213,535
  223,144
  233,296
  244,015
  255,326
  267,254
  279,827
  293,075
  307,027
  321,717
  337,180
  353,450
  370,568
  388,573
Revenue / Adjusted assets
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
  0.035
Average production assets, $m
  688
  702
  718
  737
  757
  780
  805
  833
  863
  895
  929
  966
  1,005
  1,047
  1,091
  1,138
  1,188
  1,241
  1,296
  1,355
  1,418
  1,483
  1,553
  1,626
  1,703
  1,784
  1,869
  1,959
  2,054
  2,153
  2,258
Working capital, $m
  0
  1,104
  1,129
  1,158
  1,191
  1,227
  1,266
  1,310
  1,356
  1,407
  1,461
  1,518
  1,580
  1,646
  1,715
  1,789
  1,868
  1,951
  2,038
  2,131
  2,229
  2,332
  2,441
  2,556
  2,677
  2,805
  2,939
  3,080
  3,229
  3,385
  3,550
Total debt, $m
  114,702
  106,009
  108,510
  111,369
  114,578
  118,135
  122,037
  126,287
  130,887
  135,842
  141,160
  146,850
  152,921
  159,385
  166,254
  173,544
  181,269
  189,447
  198,094
  207,231
  216,879
  227,058
  237,794
  249,110
  261,032
  273,589
  286,811
  300,727
  315,370
  330,776
  346,980
Total liabilities, $m
  117,437
  108,744
  111,245
  114,104
  117,313
  120,870
  124,772
  129,022
  133,622
  138,577
  143,895
  149,585
  155,656
  162,120
  168,989
  176,279
  184,004
  192,182
  200,829
  209,966
  219,614
  229,793
  240,529
  251,845
  263,767
  276,324
  289,546
  303,462
  318,105
  333,511
  349,715
Total equity, $m
  3,699
  12,083
  12,361
  12,678
  13,035
  13,430
  13,864
  14,336
  14,847
  15,397
  15,988
  16,621
  17,295
  18,013
  18,777
  19,587
  20,445
  21,354
  22,314
  23,330
  24,402
  25,533
  26,725
  27,983
  29,307
  30,703
  32,172
  33,718
  35,345
  37,057
  38,857
Total liabilities and equity, $m
  121,136
  120,827
  123,606
  126,782
  130,348
  134,300
  138,636
  143,358
  148,469
  153,974
  159,883
  166,206
  172,951
  180,133
  187,766
  195,866
  204,449
  213,536
  223,143
  233,296
  244,016
  255,326
  267,254
  279,828
  293,074
  307,027
  321,718
  337,180
  353,450
  370,568
  388,572
Debt-to-equity ratio
  31.009
  8.770
  8.780
  8.780
  8.790
  8.800
  8.800
  8.810
  8.820
  8.820
  8.830
  8.840
  8.840
  8.850
  8.850
  8.860
  8.870
  8.870
  8.880
  8.880
  8.890
  8.890
  8.900
  8.900
  8.910
  8.910
  8.910
  8.920
  8.920
  8.930
  8.930
Adjusted equity ratio
  0.031
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  681
  -2,414
  -2,118
  -2,165
  -2,219
  -2,280
  -2,349
  -2,425
  -2,508
  -2,598
  -2,695
  -2,800
  -2,912
  -3,032
  -3,160
  -3,296
  -3,441
  -3,594
  -3,757
  -3,928
  -4,110
  -4,302
  -4,505
  -4,719
  -4,944
  -5,182
  -5,432
  -5,695
  -5,973
  -6,265
  -6,572
Depreciation, amort., depletion, $m
  0
  70
  72
  74
  76
  78
  81
  83
  86
  89
  93
  97
  100
  105
  109
  114
  119
  124
  130
  136
  142
  148
  155
  163
  170
  178
  187
  196
  205
  215
  226
Funds from operations, $m
  1,871
  -2,344
  -2,046
  -2,091
  -2,143
  -2,202
  -2,269
  -2,342
  -2,422
  -2,508
  -2,602
  -2,703
  -2,812
  -2,927
  -3,051
  -3,182
  -3,322
  -3,470
  -3,627
  -3,793
  -3,968
  -4,154
  -4,350
  -4,556
  -4,774
  -5,003
  -5,245
  -5,500
  -5,768
  -6,050
  -6,347
Change in working capital, $m
  514
  22
  25
  29
  33
  36
  40
  43
  47
  50
  54
  58
  62
  66
  70
  74
  78
  83
  88
  93
  98
  103
  109
  115
  121
  127
  134
  141
  149
  156
  164
Cash from operations, $m
  1,357
  -2,383
  -2,072
  -2,120
  -2,176
  -2,239
  -2,308
  -2,385
  -2,468
  -2,559
  -2,656
  -2,761
  -2,873
  -2,993
  -3,121
  -3,256
  -3,400
  -3,553
  -3,715
  -3,886
  -4,066
  -4,257
  -4,459
  -4,671
  -4,895
  -5,131
  -5,379
  -5,641
  -5,916
  -6,206
  -6,511
Maintenance CAPEX, $m
  0
  -69
  -70
  -72
  -74
  -76
  -78
  -81
  -83
  -86
  -89
  -93
  -97
  -100
  -105
  -109
  -114
  -119
  -124
  -130
  -136
  -142
  -148
  -155
  -163
  -170
  -178
  -187
  -196
  -205
  -215
New CAPEX, $m
  0
  -15
  -16
  -18
  -21
  -23
  -25
  -27
  -30
  -32
  -34
  -37
  -39
  -42
  -44
  -47
  -50
  -53
  -56
  -59
  -62
  -66
  -69
  -73
  -77
  -81
  -85
  -90
  -95
  -99
  -105
Cash from investing activities, $m
  11,411
  -84
  -86
  -90
  -95
  -99
  -103
  -108
  -113
  -118
  -123
  -130
  -136
  -142
  -149
  -156
  -164
  -172
  -180
  -189
  -198
  -208
  -217
  -228
  -240
  -251
  -263
  -277
  -291
  -304
  -320
Free cash flow, $m
  12,768
  -2,467
  -2,158
  -2,211
  -2,270
  -2,337
  -2,411
  -2,493
  -2,581
  -2,677
  -2,780
  -2,891
  -3,009
  -3,135
  -3,270
  -3,412
  -3,564
  -3,725
  -3,895
  -4,074
  -4,264
  -4,465
  -4,676
  -4,899
  -5,134
  -5,382
  -5,643
  -5,918
  -6,207
  -6,511
  -6,831
Issuance/(repayment) of debt, $m
  -11,909
  -7,440
  2,501
  2,859
  3,210
  3,557
  3,902
  4,249
  4,600
  4,955
  5,318
  5,690
  6,071
  6,464
  6,870
  7,290
  7,725
  8,177
  8,648
  9,137
  9,647
  10,180
  10,735
  11,316
  11,923
  12,557
  13,221
  13,916
  14,644
  15,406
  16,204
Issuance/(repurchase) of shares, $m
  -755
  18,291
  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  
  -12,908
  10,851
  2,501
  2,859
  3,210
  3,557
  3,902
  4,249
  4,600
  4,955
  5,318
  5,690
  6,071
  6,464
  6,870
  7,290
  7,725
  8,177
  8,648
  9,137
  9,647
  10,180
  10,735
  11,316
  11,923
  12,557
  13,221
  13,916
  14,644
  15,406
  16,204
Total cash flow (excl. dividends), $m
  -140
  -9,907
  343
  648
  939
  1,219
  1,491
  1,757
  2,019
  2,279
  2,538
  2,799
  3,062
  3,329
  3,600
  3,877
  4,161
  4,453
  4,753
  5,063
  5,383
  5,715
  6,059
  6,417
  6,788
  7,175
  7,578
  7,998
  8,437
  8,895
  9,373
Retained Cash Flow (-), $m
  210
  -8,384
  -278
  -318
  -357
  -395
  -434
  -472
  -511
  -551
  -591
  -632
  -675
  -718
  -763
  -810
  -858
  -909
  -961
  -1,015
  -1,072
  -1,131
  -1,193
  -1,257
  -1,325
  -1,395
  -1,469
  -1,546
  -1,627
  -1,712
  -1,800
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
  65
  331
  583
  824
  1,057
  1,285
  1,508
  1,728
  1,947
  2,167
  2,387
  2,610
  2,837
  3,067
  3,303
  3,544
  3,792
  4,048
  4,311
  4,584
  4,866
  5,159
  5,464
  5,780
  6,109
  6,452
  6,810
  7,183
  7,573
Discount rate, %
 
  15.40
  16.17
  16.98
  17.83
  18.72
  19.65
  20.64
  21.67
  22.75
  23.89
  25.08
  26.34
  27.66
  29.04
  30.49
  32.02
  33.62
  35.30
  37.06
  38.92
  40.86
  42.90
  45.05
  47.30
  49.67
  52.15
  54.76
  57.50
  60.37
  63.39
PV of cash for distribution, $m
 
  0
  48
  207
  302
  349
  360
  345
  314
  273
  229
  185
  144
  109
  80
  57
  39
  26
  16
  10
  6
  3
  2
  1
  1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9
  19.9

Navient Corporation provides financial products and services in the United States. The company operates in three segments: Federal Family Education Loan Program (FFELP) Loans, Private Education Loans, and Business Services. It holds the portfolio of education loans insured or guaranteed under the FFELP, as well as the portfolio of private education loans. The company also provides asset recovery services for loans and receivables on behalf of guarantors of FFELP loans, and higher education institutions, as well as federal, state, court, and municipal clients; and business processing services on behalf of municipalities, public authorities, and hospitals. Navient Corporation is headquartered in Wilmington, Delaware.

FINANCIAL RATIOS  of  Navient (NAVI)

Valuation Ratios
P/E Ratio 6.7
Price to Sales 1.1
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 3.4
Price to Free Cash Flow 3.4
Growth Rates
Sales Growth Rate -3.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 1
Current Ratio NaN
LT Debt to Equity 3037.8%
Total Debt to Equity 3100.9%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.6%
Ret/ On Assets - 3 Yr. Avg. 1.6%
Return On Total Capital 0.5%
Ret/ On T. Cap. - 3 Yr. Avg. 0.7%
Return On Equity 17.9%
Return On Equity - 3 Yr. Avg. 21.8%
Asset Turnover 0
Profitability Ratios
Gross Margin 41.1%
Gross Margin - 3 Yr. Avg. 49.7%
EBITDA Margin 82.2%
EBITDA Margin - 3 Yr. Avg. 81.8%
Operating Margin 26.7%
Oper. Margin - 3 Yr. Avg. 34%
Pre-Tax Margin 26.7%
Pre-Tax Margin - 3 Yr. Avg. 34%
Net Profit Margin 16.4%
Net Profit Margin - 3 Yr. Avg. 21.1%
Effective Tax Rate 38.5%
Eff/ Tax Rate - 3 Yr. Avg. 37.9%
Payout Ratio 29.5%

NAVI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NAVI stock intrinsic value calculation we used $4146 million for the last fiscal year's total revenue generated by Navient. The default revenue input number comes from 2016 income statement of Navient. 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 NAVI stock valuation model: a) initial revenue growth rate of 2% 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 15.4%, whose default value for NAVI is calculated based on our internal credit rating of Navient, 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 Navient.
    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 NAVI stock the variable cost ratio is equal to 63.2%.

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 NAVI 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 Navient.

Corporate tax rate of 27% is the nominal tax rate for Navient. 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 NAVI 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 NAVI are equal to 16.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Navient 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 NAVI is equal to 26.1%. 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 - $3699 million for Navient - 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 288.618 million for Navient 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 Navient at the current share price and the inputted number of shares is $4.6 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
NNI Nelnet Cl A 45.87 17.26  str.sell
SLM SLM 12.80 3.11  str.sell
NSM Nationstar Mor 16.43 400.22  str.buy

COMPANY NEWS

▶ Energy, biotech, financials & more in the trader blitz   [Apr-19-17 04:45PM  CNBC Videos]
▶ Navient to buy big bank's $6.9B student loan portfolio   [09:00AM  American City Business Journals]
▶ Navient misses Street 1Q forecasts   [Apr-18-17 04:48PM  Associated Press]
▶ Navient declares second quarter common stock dividend   [Apr-05-17 09:00AM  GlobeNewswire]
▶ Navient appoints David Yowan to Board of Directors   [Apr-04-17 04:46PM  GlobeNewswire]
▶ Hacienda Hedges and Unicorn Votes   [09:30AM  Bloomberg]
▶ Nation's largest student loan manager hires new CFO   [Feb-22-17 03:05PM  at bizjournals.com]
▶ Navient declares first quarter common stock dividend   [Feb-06-17 04:15PM  GlobeNewswire]
▶ [$$] Betting on the Dogs of the S&P 500   [Feb-04-17 12:01AM  at Barrons.com]
▶ What The Navient Lawsuit Means For Your Student Loans   [Jan-20-17 08:00AM  at Forbes]
▶ Feds suing Delaware-based student loan company Navient   [Jan-19-17 02:17PM  at bizjournals.com]
▶ Feds sue student loan giant Navient   [03:09AM  at MarketWatch]
▶ [$$] CFPB Sues Navient Over Student Loan-Servicing Practices   [12:27AM  at The Wall Street Journal]
▶ [$$] CFPB Sues Navient Over Student Loan-Servicing Practices   [Jan-18-17 06:05PM  at The Wall Street Journal]
Stock chart of NAVI Financial statements of NAVI
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.