Intrinsic value of Regency Centers - REG

Previous Close

$65.29

  Intrinsic Value

$6.32

stock screener

  Rating & Target

str. sell

-90%

  Value-price divergence*

+55%

Previous close

$65.29

 
Intrinsic value

$6.32

 
Up/down potential

-90%

 
Rating

str. sell

 
Value-price divergence*

+55%

Our model is not good at valuating stocks of financial companies, such as REG.

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

We calculate the intrinsic value of REG 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 6.7

 

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, %
  7.72
  30.70
  28.13
  25.82
  23.74
  21.86
  20.18
  18.66
  17.29
  16.06
  14.96
  13.96
  13.06
  12.26
  11.53
  10.88
  10.29
  9.76
  9.29
  8.86
  8.47
  8.12
  7.81
  7.53
  7.28
  7.05
  6.84
  6.66
  6.49
  6.35
  6.21
Revenue, $m
  614
  802
  1,028
  1,294
  1,601
  1,951
  2,344
  2,782
  3,263
  3,787
  4,353
  4,961
  5,609
  6,297
  7,023
  7,787
  8,588
  9,427
  10,302
  11,214
  12,165
  13,153
  14,180
  15,248
  16,358
  17,511
  18,710
  19,956
  21,252
  22,601
  24,004
Variable operating expenses, $m
 
  526
  673
  847
  1,049
  1,278
  1,536
  1,822
  2,137
  2,480
  2,851
  3,249
  3,674
  4,124
  4,600
  5,100
  5,625
  6,174
  6,748
  7,345
  7,968
  8,615
  9,288
  9,988
  10,714
  11,470
  12,255
  13,071
  13,920
  14,803
  15,723
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
  422
  526
  673
  847
  1,049
  1,278
  1,536
  1,822
  2,137
  2,480
  2,851
  3,249
  3,674
  4,124
  4,600
  5,100
  5,625
  6,174
  6,748
  7,345
  7,968
  8,615
  9,288
  9,988
  10,714
  11,470
  12,255
  13,071
  13,920
  14,803
  15,723
Operating income, $m
  193
  277
  355
  446
  552
  673
  809
  960
  1,126
  1,306
  1,502
  1,712
  1,935
  2,172
  2,423
  2,686
  2,963
  3,252
  3,554
  3,869
  4,197
  4,538
  4,892
  5,261
  5,644
  6,041
  6,455
  6,885
  7,332
  7,797
  8,281
EBITDA, $m
  355
  488
  626
  787
  974
  1,187
  1,426
  1,692
  1,985
  2,304
  2,648
  3,018
  3,413
  3,831
  4,273
  4,737
  5,225
  5,735
  6,268
  6,823
  7,401
  8,002
  8,627
  9,277
  9,952
  10,654
  11,383
  12,141
  12,930
  13,750
  14,604
Interest expense (income), $m
  83
  77
  105
  138
  176
  221
  272
  329
  393
  463
  539
  621
  710
  804
  904
  1,010
  1,121
  1,237
  1,359
  1,486
  1,619
  1,757
  1,901
  2,051
  2,206
  2,367
  2,535
  2,710
  2,891
  3,079
  3,275
Earnings before tax, $m
  120
  200
  250
  309
  376
  452
  537
  631
  733
  844
  963
  1,090
  1,226
  1,368
  1,519
  1,677
  1,842
  2,015
  2,195
  2,383
  2,578
  2,780
  2,991
  3,210
  3,438
  3,674
  3,920
  4,175
  4,441
  4,718
  5,006
Tax expense, $m
  0
  54
  68
  83
  102
  122
  145
  170
  198
  228
  260
  294
  331
  369
  410
  453
  497
  544
  593
  643
  696
  751
  808
  867
  928
  992
  1,058
  1,127
  1,199
  1,274
  1,352
Net income, $m
  118
  146
  183
  225
  275
  330
  392
  460
  535
  616
  703
  796
  895
  999
  1,109
  1,224
  1,345
  1,471
  1,602
  1,739
  1,882
  2,030
  2,183
  2,343
  2,509
  2,682
  2,861
  3,048
  3,242
  3,444
  3,654

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  13
  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
  4,489
  5,858
  7,505
  9,443
  11,684
  14,239
  17,112
  20,304
  23,815
  27,641
  31,775
  36,211
  40,942
  45,961
  51,261
  56,838
  62,688
  68,808
  75,197
  81,858
  88,792
  96,006
  103,506
  111,301
  119,401
  127,819
  136,568
  145,665
  155,125
  164,967
  175,213
Adjusted assets (=assets-cash), $m
  4,476
  5,858
  7,505
  9,443
  11,684
  14,239
  17,112
  20,304
  23,815
  27,641
  31,775
  36,211
  40,942
  45,961
  51,261
  56,838
  62,688
  68,808
  75,197
  81,858
  88,792
  96,006
  103,506
  111,301
  119,401
  127,819
  136,568
  145,665
  155,125
  164,967
  175,213
Revenue / Adjusted assets
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
  0.137
Average production assets, $m
  3,768
  4,925
  6,310
  7,939
  9,824
  11,972
  14,387
  17,071
  20,023
  23,240
  26,715
  30,445
  34,423
  38,643
  43,099
  47,788
  52,706
  57,851
  63,223
  68,823
  74,654
  80,719
  87,025
  93,579
  100,389
  107,466
  114,823
  122,470
  130,424
  138,699
  147,313
Working capital, $m
  0
  -17
  -22
  -27
  -34
  -41
  -49
  -58
  -69
  -80
  -91
  -104
  -118
  -132
  -147
  -164
  -180
  -198
  -216
  -236
  -255
  -276
  -298
  -320
  -344
  -368
  -393
  -419
  -446
  -475
  -504
Total debt, $m
  1,642
  2,228
  2,926
  3,748
  4,698
  5,781
  6,999
  8,353
  9,842
  11,464
  13,217
  15,098
  17,103
  19,231
  21,479
  23,843
  26,324
  28,918
  31,628
  34,452
  37,392
  40,451
  43,631
  46,936
  50,370
  53,939
  57,649
  61,506
  65,517
  69,690
  74,034
Total liabilities, $m
  1,898
  2,484
  3,182
  4,004
  4,954
  6,037
  7,255
  8,609
  10,098
  11,720
  13,473
  15,354
  17,359
  19,487
  21,735
  24,099
  26,580
  29,174
  31,884
  34,708
  37,648
  40,707
  43,887
  47,192
  50,626
  54,195
  57,905
  61,762
  65,773
  69,946
  74,290
Total equity, $m
  2,591
  3,374
  4,323
  5,439
  6,730
  8,202
  9,856
  11,695
  13,718
  15,921
  18,302
  20,858
  23,583
  26,473
  29,527
  32,739
  36,108
  39,633
  43,313
  47,150
  51,144
  55,300
  59,620
  64,109
  68,775
  73,624
  78,663
  83,903
  89,352
  95,021
  100,922
Total liabilities and equity, $m
  4,489
  5,858
  7,505
  9,443
  11,684
  14,239
  17,111
  20,304
  23,816
  27,641
  31,775
  36,212
  40,942
  45,960
  51,262
  56,838
  62,688
  68,807
  75,197
  81,858
  88,792
  96,007
  103,507
  111,301
  119,401
  127,819
  136,568
  145,665
  155,125
  164,967
  175,212
Debt-to-equity ratio
  0.634
  0.660
  0.680
  0.690
  0.700
  0.700
  0.710
  0.710
  0.720
  0.720
  0.720
  0.720
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
Adjusted equity ratio
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  118
  146
  183
  225
  275
  330
  392
  460
  535
  616
  703
  796
  895
  999
  1,109
  1,224
  1,345
  1,471
  1,602
  1,739
  1,882
  2,030
  2,183
  2,343
  2,509
  2,682
  2,861
  3,048
  3,242
  3,444
  3,654
Depreciation, amort., depletion, $m
  162
  211
  271
  341
  422
  514
  617
  733
  859
  997
  1,147
  1,307
  1,477
  1,658
  1,850
  2,051
  2,262
  2,483
  2,713
  2,954
  3,204
  3,464
  3,735
  4,016
  4,309
  4,612
  4,928
  5,256
  5,598
  5,953
  6,322
Funds from operations, $m
  318
  357
  453
  566
  696
  844
  1,010
  1,193
  1,394
  1,613
  1,850
  2,103
  2,372
  2,657
  2,959
  3,275
  3,607
  3,954
  4,316
  4,693
  5,086
  5,494
  5,918
  6,360
  6,818
  7,294
  7,789
  8,304
  8,840
  9,397
  9,977
Change in working capital, $m
  29
  -4
  -5
  -6
  -6
  -7
  -8
  -9
  -10
  -11
  -12
  -13
  -14
  -14
  -15
  -16
  -17
  -18
  -18
  -19
  -20
  -21
  -22
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
Cash from operations, $m
  289
  361
  458
  572
  703
  851
  1,018
  1,202
  1,405
  1,624
  1,862
  2,115
  2,386
  2,672
  2,974
  3,291
  3,624
  3,971
  4,334
  4,712
  5,106
  5,515
  5,940
  6,382
  6,841
  7,319
  7,815
  8,330
  8,867
  9,425
  10,006
Maintenance CAPEX, $m
  0
  -162
  -211
  -271
  -341
  -422
  -514
  -617
  -733
  -859
  -997
  -1,147
  -1,307
  -1,477
  -1,658
  -1,850
  -2,051
  -2,262
  -2,483
  -2,713
  -2,954
  -3,204
  -3,464
  -3,735
  -4,016
  -4,309
  -4,612
  -4,928
  -5,256
  -5,598
  -5,953
New CAPEX, $m
  -334
  -1,157
  -1,385
  -1,629
  -1,884
  -2,148
  -2,415
  -2,684
  -2,952
  -3,216
  -3,476
  -3,730
  -3,978
  -4,220
  -4,456
  -4,689
  -4,918
  -5,145
  -5,372
  -5,600
  -5,830
  -6,065
  -6,306
  -6,554
  -6,810
  -7,077
  -7,356
  -7,648
  -7,954
  -8,275
  -8,614
Cash from investing activities, $m
  -410
  -1,319
  -1,596
  -1,900
  -2,225
  -2,570
  -2,929
  -3,301
  -3,685
  -4,075
  -4,473
  -4,877
  -5,285
  -5,697
  -6,114
  -6,539
  -6,969
  -7,407
  -7,855
  -8,313
  -8,784
  -9,269
  -9,770
  -10,289
  -10,826
  -11,386
  -11,968
  -12,576
  -13,210
  -13,873
  -14,567
Free cash flow, $m
  -121
  -958
  -1,139
  -1,328
  -1,523
  -1,718
  -1,911
  -2,100
  -2,280
  -2,451
  -2,612
  -2,761
  -2,899
  -3,025
  -3,141
  -3,247
  -3,345
  -3,436
  -3,521
  -3,601
  -3,679
  -3,755
  -3,830
  -3,907
  -3,985
  -4,067
  -4,154
  -4,245
  -4,343
  -4,448
  -4,560
Issuance/(repayment) of debt, $m
  -210
  586
  699
  822
  950
  1,083
  1,218
  1,354
  1,489
  1,622
  1,753
  1,881
  2,006
  2,128
  2,247
  2,365
  2,480
  2,595
  2,709
  2,824
  2,940
  3,059
  3,180
  3,305
  3,435
  3,569
  3,710
  3,857
  4,011
  4,173
  4,344
Issuance/(repurchase) of shares, $m
  550
  650
  767
  891
  1,016
  1,141
  1,263
  1,379
  1,487
  1,587
  1,678
  1,759
  1,830
  1,892
  1,944
  1,988
  2,024
  2,054
  2,078
  2,097
  2,113
  2,126
  2,137
  2,147
  2,156
  2,167
  2,178
  2,191
  2,207
  2,225
  2,247
Cash from financing (excl. dividends), $m  
  319
  1,236
  1,466
  1,713
  1,966
  2,224
  2,481
  2,733
  2,976
  3,209
  3,431
  3,640
  3,836
  4,020
  4,191
  4,353
  4,504
  4,649
  4,787
  4,921
  5,053
  5,185
  5,317
  5,452
  5,591
  5,736
  5,888
  6,048
  6,218
  6,398
  6,591
Total cash flow (excl. dividends), $m
  198
  278
  327
  384
  444
  506
  569
  633
  696
  758
  819
  879
  938
  995
  1,051
  1,105
  1,159
  1,213
  1,266
  1,320
  1,374
  1,430
  1,486
  1,545
  1,605
  1,668
  1,734
  1,803
  1,875
  1,951
  2,031
Retained Cash Flow (-), $m
  -537
  -796
  -949
  -1,116
  -1,291
  -1,471
  -1,655
  -1,839
  -2,022
  -2,203
  -2,381
  -2,555
  -2,725
  -2,891
  -3,053
  -3,212
  -3,369
  -3,525
  -3,680
  -3,836
  -3,994
  -4,155
  -4,320
  -4,490
  -4,666
  -4,849
  -5,040
  -5,239
  -5,449
  -5,669
  -5,901
Prev. year cash balance distribution, $m
 
  13
  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
 
  -505
  -623
  -732
  -847
  -965
  -1,085
  -1,206
  -1,327
  -1,445
  -1,562
  -1,676
  -1,787
  -1,896
  -2,003
  -2,107
  -2,210
  -2,312
  -2,414
  -2,516
  -2,620
  -2,725
  -2,834
  -2,945
  -3,060
  -3,180
  -3,306
  -3,437
  -3,574
  -3,719
  -3,871
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  -470
  -536
  -579
  -610
  -627
  -632
  -622
  -601
  -568
  -527
  -479
  -428
  -374
  -322
  -271
  -224
  -181
  -144
  -112
  -85
  -63
  -46
  -32
  -22
  -15
  -10
  -6
  -4
  -2
  -1
Current shareholders' claim on cash, %
  100
  91.1
  83.7
  77.5
  72.3
  67.9
  64.0
  60.8
  57.9
  55.4
  53.2
  51.3
  49.6
  48.2
  46.8
  45.6
  44.6
  43.6
  42.7
  41.9
  41.2
  40.6
  40.0
  39.4
  38.9
  38.5
  38.0
  37.6
  37.2
  36.9
  36.5

Regency Centers Corporation operates as a real estate investment trust. The company, through its subsidiaries, owns, operates, and develops community and neighborhood shopping centers that are tenanted by grocers, category-leading anchors, specialty retailers, and restaurants. As of December 31, 2006, it owned 218 retail shopping centers located in 22 states and held partial interests in 187 retail shopping centers through joint ventures located in 24 states and the District of Columbia. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, its net income would be exempt from federal taxation to the extent that it is distributed as dividends to shareholders. The company was founded in 1963 and is headquartered in Jacksonville, Florida.

FINANCIAL RATIOS  of  Regency Centers (REG)

Valuation Ratios
P/E Ratio 57.6
Price to Sales 11.1
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 23.5
Price to Free Cash Flow -151.1
Growth Rates
Sales Growth Rate 7.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 642.2%
Cap. Spend. - 3 Yr. Gr. Rate 25.3%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 63.4%
Total Debt to Equity 63.4%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.6%
Ret/ On Assets - 3 Yr. Avg. 5.3%
Return On Total Capital 2.9%
Ret/ On T. Cap. - 3 Yr. Avg. 3.1%
Return On Equity 5.1%
Return On Equity - 3 Yr. Avg. 6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 73.8%
Gross Margin - 3 Yr. Avg. 74.3%
EBITDA Margin 59.4%
EBITDA Margin - 3 Yr. Avg. 65.4%
Operating Margin 31.3%
Oper. Margin - 3 Yr. Avg. 33.3%
Pre-Tax Margin 19.5%
Pre-Tax Margin - 3 Yr. Avg. 21.6%
Net Profit Margin 19.2%
Net Profit Margin - 3 Yr. Avg. 21.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. -0.3%
Payout Ratio 188.1%

REG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the REG stock intrinsic value calculation we used $614 million for the last fiscal year's total revenue generated by Regency Centers. The default revenue input number comes from 2016 income statement of Regency Centers. 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 REG stock valuation model: a) initial revenue growth rate of 30.7% 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 7.4%, whose default value for REG is calculated based on our internal credit rating of Regency Centers, 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 Regency Centers.
    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 REG stock the variable cost ratio is equal to 65.5%.

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 REG 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 Regency Centers.

Corporate tax rate of 27% is the nominal tax rate for Regency Centers. 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 REG 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 REG are equal to 613.7%.

Life of production assets of 23.3 years is the average useful life of capital assets used in Regency Centers 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 REG is equal to -2.1%. 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 - $2591 million for Regency Centers - 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 102.485 million for Regency Centers 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 Regency Centers at the current share price and the inputted number of shares is $6.7 billion.

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COMPANY NEWS

▶ Heres how dead malls across America could be saved   [Aug-08-17 02:02PM  Yahoo Finance Video]
▶ Regency Centers Reports Second Quarter 2017 Results   [Aug-03-17 04:15PM  Business Wire]
▶ Whole Foods centers to get a boost from Amazon deal   [Jul-06-17 06:44AM  CNBC Videos]
▶ [$$] Strip-mall REITs sink on Amazon-Whole Foods deal   [11:16AM  The Wall Street Journal]
▶ First comes Wegmans. Then comes more Chantilly retail and homes to fill.   [Jun-12-17 03:10PM  American City Business Journals]
▶ Regency Centers reports 1Q results   [May-09-17 05:20PM  Associated Press]
▶ 2 Retail REIT Picks Selling At A Discount   [Mar-21-17 10:32AM  Barrons.com]
▶ 2 Retail REIT Picks Selling At A Discount   [10:32AM  at Barrons.com]
▶ Regency kicks off construction of Chantilly Wegmans   [08:10AM  at bizjournals.com]
▶ Regency kicks off construction of Chantilly Wegmans   [08:10AM  American City Business Journals]
▶ Biotech beat up?   [Mar-07-17 03:58PM  CNBC Videos]
▶ [$$] Seven REITs With Strong Earnings   [03:13PM  at Barrons.com]
▶ Regency shareholders approve merger with Equity One   [Feb-24-17 02:50PM  at bizjournals.com]
▶ Another organic grocer plants its flag in the D.C. area   [Feb-10-17 02:40PM  at bizjournals.com]
Financial statements of REG
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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