Intrinsic value of PulteGroup - PHM

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$24.15

  Intrinsic Value

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  Value-price divergence*

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

We calculate the intrinsic value of PHM 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 7.7

 

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, %
  28.18
  20.90
  19.31
  17.88
  16.59
  15.43
  14.39
  13.45
  12.60
  11.84
  11.16
  10.54
  9.99
  9.49
  9.04
  8.64
  8.27
  7.95
  7.65
  7.39
  7.15
  6.93
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.92
  5.83
  5.75
Revenue, $m
  7,668
  9,271
  11,061
  13,038
  15,202
  17,547
  20,072
  22,772
  25,642
  28,680
  31,880
  35,242
  38,762
  42,441
  46,278
  50,275
  54,435
  58,761
  63,257
  67,929
  72,785
  77,831
  83,077
  88,531
  94,205
  100,111
  106,259
  112,663
  119,338
  126,298
  133,559
Variable operating expenses, $m
 
  8,010
  9,557
  11,265
  13,134
  15,161
  17,342
  19,675
  22,155
  24,779
  27,544
  30,449
  33,490
  36,669
  39,984
  43,438
  47,032
  50,769
  54,654
  58,691
  62,886
  67,246
  71,778
  76,491
  81,394
  86,496
  91,808
  97,341
  103,108
  109,122
  115,395
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
  6,735
  8,010
  9,557
  11,265
  13,134
  15,161
  17,342
  19,675
  22,155
  24,779
  27,544
  30,449
  33,490
  36,669
  39,984
  43,438
  47,032
  50,769
  54,654
  58,691
  62,886
  67,246
  71,778
  76,491
  81,394
  86,496
  91,808
  97,341
  103,108
  109,122
  115,395
Operating income, $m
  934
  1,261
  1,504
  1,773
  2,067
  2,386
  2,730
  3,097
  3,487
  3,900
  4,336
  4,793
  5,272
  5,772
  6,294
  6,837
  7,403
  7,991
  8,603
  9,238
  9,899
  10,585
  11,298
  12,040
  12,812
  13,615
  14,451
  15,322
  16,230
  17,177
  18,164
EBITDA, $m
  988
  1,313
  1,566
  1,846
  2,153
  2,485
  2,842
  3,225
  3,631
  4,061
  4,514
  4,990
  5,489
  6,010
  6,553
  7,119
  7,708
  8,321
  8,957
  9,619
  10,306
  11,021
  11,764
  12,536
  13,339
  14,176
  15,046
  15,953
  16,898
  17,884
  18,912
Interest expense (income), $m
  27
  109
  146
  188
  234
  284
  338
  397
  460
  527
  597
  671
  750
  831
  917
  1,006
  1,099
  1,195
  1,296
  1,400
  1,509
  1,622
  1,739
  1,861
  1,988
  2,119
  2,257
  2,399
  2,548
  2,703
  2,865
Earnings before tax, $m
  934
  1,152
  1,358
  1,585
  1,834
  2,103
  2,391
  2,700
  3,028
  3,374
  3,739
  4,121
  4,522
  4,941
  5,377
  5,832
  6,304
  6,796
  7,307
  7,838
  8,390
  8,963
  9,559
  10,179
  10,824
  11,496
  12,195
  12,923
  13,682
  14,473
  15,299
Tax expense, $m
  331
  311
  367
  428
  495
  568
  646
  729
  817
  911
  1,009
  1,113
  1,221
  1,334
  1,452
  1,575
  1,702
  1,835
  1,973
  2,116
  2,265
  2,420
  2,581
  2,748
  2,923
  3,104
  3,293
  3,489
  3,694
  3,908
  4,131
Net income, $m
  603
  841
  991
  1,157
  1,339
  1,535
  1,746
  1,971
  2,210
  2,463
  2,729
  3,009
  3,301
  3,607
  3,925
  4,257
  4,602
  4,961
  5,334
  5,722
  6,125
  6,543
  6,978
  7,431
  7,902
  8,392
  8,902
  9,434
  9,988
  10,565
  11,168

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  699
  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
  10,178
  11,459
  13,672
  16,117
  18,791
  21,690
  24,811
  28,148
  31,696
  35,451
  39,407
  43,562
  47,914
  52,461
  57,204
  62,145
  67,287
  72,634
  78,191
  83,967
  89,969
  96,206
  102,691
  109,433
  116,447
  123,746
  131,346
  139,262
  147,513
  156,116
  165,091
Adjusted assets (=assets-cash), $m
  9,479
  11,459
  13,672
  16,117
  18,791
  21,690
  24,811
  28,148
  31,696
  35,451
  39,407
  43,562
  47,914
  52,461
  57,204
  62,145
  67,287
  72,634
  78,191
  83,967
  89,969
  96,206
  102,691
  109,433
  116,447
  123,746
  131,346
  139,262
  147,513
  156,116
  165,091
Revenue / Adjusted assets
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
  0.809
Average production assets, $m
  214
  260
  310
  365
  426
  491
  562
  638
  718
  803
  893
  987
  1,085
  1,188
  1,296
  1,408
  1,524
  1,645
  1,771
  1,902
  2,038
  2,179
  2,326
  2,479
  2,638
  2,803
  2,975
  3,155
  3,341
  3,536
  3,740
Working capital, $m
  0
  -324
  -387
  -456
  -532
  -614
  -703
  -797
  -897
  -1,004
  -1,116
  -1,233
  -1,357
  -1,485
  -1,620
  -1,760
  -1,905
  -2,057
  -2,214
  -2,378
  -2,547
  -2,724
  -2,908
  -3,099
  -3,297
  -3,504
  -3,719
  -3,943
  -4,177
  -4,420
  -4,675
Total debt, $m
  3,541
  4,176
  5,364
  6,677
  8,113
  9,670
  11,346
  13,138
  15,043
  17,059
  19,184
  21,415
  23,752
  26,194
  28,741
  31,394
  34,155
  37,026
  40,011
  43,112
  46,335
  49,685
  53,167
  56,788
  60,554
  64,474
  68,555
  72,806
  77,237
  81,856
  86,676
Total liabilities, $m
  5,519
  6,154
  7,342
  8,655
  10,091
  11,648
  13,324
  15,116
  17,021
  19,037
  21,162
  23,393
  25,730
  28,172
  30,719
  33,372
  36,133
  39,004
  41,989
  45,090
  48,313
  51,663
  55,145
  58,766
  62,532
  66,452
  70,533
  74,784
  79,215
  83,834
  88,654
Total equity, $m
  4,659
  5,306
  6,330
  7,462
  8,700
  10,043
  11,488
  13,033
  14,675
  16,414
  18,245
  20,169
  22,184
  24,289
  26,486
  28,773
  31,154
  33,629
  36,203
  38,877
  41,656
  44,544
  47,546
  50,667
  53,915
  57,294
  60,813
  64,479
  68,299
  72,282
  76,437
Total liabilities and equity, $m
  10,178
  11,460
  13,672
  16,117
  18,791
  21,691
  24,812
  28,149
  31,696
  35,451
  39,407
  43,562
  47,914
  52,461
  57,205
  62,145
  67,287
  72,633
  78,192
  83,967
  89,969
  96,207
  102,691
  109,433
  116,447
  123,746
  131,346
  139,263
  147,514
  156,116
  165,091
Debt-to-equity ratio
  0.760
  0.790
  0.850
  0.890
  0.930
  0.960
  0.990
  1.010
  1.030
  1.040
  1.050
  1.060
  1.070
  1.080
  1.090
  1.090
  1.100
  1.100
  1.110
  1.110
  1.110
  1.120
  1.120
  1.120
  1.120
  1.130
  1.130
  1.130
  1.130
  1.130
  1.130
Adjusted equity ratio
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463
  0.463

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  603
  841
  991
  1,157
  1,339
  1,535
  1,746
  1,971
  2,210
  2,463
  2,729
  3,009
  3,301
  3,607
  3,925
  4,257
  4,602
  4,961
  5,334
  5,722
  6,125
  6,543
  6,978
  7,431
  7,902
  8,392
  8,902
  9,434
  9,988
  10,565
  11,168
Depreciation, amort., depletion, $m
  54
  52
  62
  73
  85
  98
  112
  128
  144
  161
  179
  197
  217
  238
  259
  282
  305
  329
  354
  380
  408
  436
  465
  496
  528
  561
  595
  631
  668
  707
  748
Funds from operations, $m
  -899
  893
  1,053
  1,230
  1,424
  1,633
  1,858
  2,098
  2,354
  2,624
  2,908
  3,206
  3,518
  3,844
  4,184
  4,539
  4,907
  5,290
  5,688
  6,102
  6,532
  6,979
  7,444
  7,927
  8,429
  8,952
  9,497
  10,065
  10,656
  11,273
  11,916
Change in working capital, $m
  -967
  -56
  -63
  -69
  -76
  -82
  -88
  -94
  -100
  -106
  -112
  -118
  -123
  -129
  -134
  -140
  -146
  -151
  -157
  -164
  -170
  -177
  -184
  -191
  -199
  -207
  -215
  -224
  -234
  -244
  -254
Cash from operations, $m
  68
  967
  1,116
  1,300
  1,499
  1,715
  1,946
  2,193
  2,454
  2,730
  3,020
  3,324
  3,641
  3,973
  4,319
  4,678
  5,053
  5,442
  5,846
  6,266
  6,702
  7,156
  7,627
  8,118
  8,628
  9,159
  9,712
  10,289
  10,890
  11,516
  12,170
Maintenance CAPEX, $m
  0
  -43
  -52
  -62
  -73
  -85
  -98
  -112
  -128
  -144
  -161
  -179
  -197
  -217
  -238
  -259
  -282
  -305
  -329
  -354
  -380
  -408
  -436
  -465
  -496
  -528
  -561
  -595
  -631
  -668
  -707
New CAPEX, $m
  -39
  -46
  -50
  -55
  -61
  -66
  -71
  -76
  -80
  -85
  -90
  -94
  -99
  -103
  -107
  -112
  -116
  -121
  -126
  -131
  -136
  -141
  -147
  -153
  -159
  -165
  -172
  -179
  -187
  -195
  -203
Cash from investing activities, $m
  -471
  -89
  -102
  -117
  -134
  -151
  -169
  -188
  -208
  -229
  -251
  -273
  -296
  -320
  -345
  -371
  -398
  -426
  -455
  -485
  -516
  -549
  -583
  -618
  -655
  -693
  -733
  -774
  -818
  -863
  -910
Free cash flow, $m
  -403
  879
  1,014
  1,182
  1,366
  1,564
  1,778
  2,005
  2,246
  2,501
  2,770
  3,051
  3,346
  3,653
  3,974
  4,307
  4,655
  5,016
  5,391
  5,781
  6,186
  6,607
  7,044
  7,500
  7,973
  8,466
  8,980
  9,514
  10,072
  10,653
  11,260
Issuance/(repayment) of debt, $m
  1,073
  1,066
  1,188
  1,313
  1,436
  1,557
  1,676
  1,792
  1,905
  2,016
  2,125
  2,231
  2,337
  2,442
  2,547
  2,653
  2,761
  2,871
  2,984
  3,102
  3,223
  3,350
  3,482
  3,621
  3,766
  3,920
  4,081
  4,251
  4,431
  4,620
  4,820
Issuance/(repurchase) of shares, $m
  -597
  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  
  476
  1,066
  1,188
  1,313
  1,436
  1,557
  1,676
  1,792
  1,905
  2,016
  2,125
  2,231
  2,337
  2,442
  2,547
  2,653
  2,761
  2,871
  2,984
  3,102
  3,223
  3,350
  3,482
  3,621
  3,766
  3,920
  4,081
  4,251
  4,431
  4,620
  4,820
Total cash flow (excl. dividends), $m
  73
  1,944
  2,202
  2,495
  2,802
  3,122
  3,453
  3,797
  4,152
  4,517
  4,894
  5,282
  5,682
  6,095
  6,521
  6,961
  7,416
  7,887
  8,375
  8,882
  9,409
  9,956
  10,526
  11,120
  11,740
  12,386
  13,061
  13,766
  14,502
  15,273
  16,079
Retained Cash Flow (-), $m
  100
  -915
  -1,025
  -1,132
  -1,238
  -1,343
  -1,445
  -1,545
  -1,643
  -1,738
  -1,832
  -1,924
  -2,015
  -2,105
  -2,196
  -2,288
  -2,381
  -2,476
  -2,573
  -2,674
  -2,779
  -2,888
  -3,002
  -3,122
  -3,247
  -3,380
  -3,519
  -3,665
  -3,820
  -3,983
  -4,155
Prev. year cash balance distribution, $m
 
  268
  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
 
  1,298
  1,178
  1,363
  1,564
  1,779
  2,008
  2,252
  2,509
  2,779
  3,062
  3,358
  3,668
  3,990
  4,325
  4,673
  5,035
  5,411
  5,802
  6,208
  6,630
  7,068
  7,524
  7,999
  8,492
  9,006
  9,542
  10,100
  10,682
  11,290
  11,924
Discount rate, %
 
  5.80
  6.09
  6.39
  6.71
  7.05
  7.40
  7.77
  8.16
  8.57
  9.00
  9.45
  9.92
  10.42
  10.94
  11.48
  12.06
  12.66
  13.29
  13.96
  14.66
  15.39
  16.16
  16.97
  17.81
  18.71
  19.64
  20.62
  21.65
  22.74
  23.87
PV of cash for distribution, $m
 
  1,226
  1,046
  1,132
  1,206
  1,265
  1,309
  1,333
  1,339
  1,326
  1,294
  1,244
  1,179
  1,100
  1,011
  915
  815
  713
  614
  519
  430
  350
  279
  218
  166
  124
  90
  64
  44
  30
  19
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

PulteGroup, Inc., through its subsidiaries, engages primarily in the homebuilding business in the United States. The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods names. As of December 31, 2016, the company controlled 99,279 owned lots and 43,979 lots under land option agreements. It also arranges financing through the origination of mortgage loans, principally for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. The company was formerly known as Pulte Homes, Inc. and changed its name to PulteGroup, Inc. in March 2010. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

FINANCIAL RATIOS  of  PulteGroup (PHM)

Valuation Ratios
P/E Ratio 12.8
Price to Sales 1
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 113.3
Price to Free Cash Flow 265.7
Growth Rates
Sales Growth Rate 28.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -13.3%
Cap. Spend. - 3 Yr. Gr. Rate 6.1%
Financial Strength
Quick Ratio 2
Current Ratio NaN
LT Debt to Equity 66.8%
Total Debt to Equity 76%
Interest Coverage 36
Management Effectiveness
Return On Assets 6.4%
Ret/ On Assets - 3 Yr. Avg. 5.8%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 7.3%
Return On Equity 12.8%
Return On Equity - 3 Yr. Avg. 11.1%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 25.3%
Gross Margin - 3 Yr. Avg. 24.3%
EBITDA Margin 13.2%
EBITDA Margin - 3 Yr. Avg. 13.4%
Operating Margin 12.2%
Oper. Margin - 3 Yr. Avg. 12.5%
Pre-Tax Margin 12.2%
Pre-Tax Margin - 3 Yr. Avg. 12.6%
Net Profit Margin 7.9%
Net Profit Margin - 3 Yr. Avg. 8.1%
Effective Tax Rate 35.4%
Eff/ Tax Rate - 3 Yr. Avg. 35.4%
Payout Ratio 20.7%

PHM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PHM stock intrinsic value calculation we used $7668 million for the last fiscal year's total revenue generated by PulteGroup. The default revenue input number comes from 2016 income statement of PulteGroup. 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 PHM stock valuation model: a) initial revenue growth rate of 20.9% 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 5.8%, whose default value for PHM is calculated based on our internal credit rating of PulteGroup, 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 PulteGroup.
    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 PHM stock the variable cost ratio is equal to 86.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for PHM 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 PulteGroup.

Corporate tax rate of 27% is the nominal tax rate for PulteGroup. 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 PHM 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 PHM are equal to 2.8%.

Life of production assets of 4 years is the average useful life of capital assets used in PulteGroup 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 PHM is equal to -3.5%. 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 - $4659 million for PulteGroup - 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 317.03 million for PulteGroup 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 PulteGroup at the current share price and the inputted number of shares is $7.7 billion.


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Stock chart of PHM Financial statements of PHM Annual reports of PHM
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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