Intrinsic value of Renren Cl A ADR - RENN

Previous Close

$7.74

  Intrinsic Value

$2.74

stock screener

  Rating & Target

str. sell

-65%

  Value-price divergence*

-40%

Previous close

$7.74

 
Intrinsic value

$2.74

 
Up/down potential

-65%

 
Rating

str. sell

 
Value-price divergence*

-40%

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

We calculate the intrinsic value of RENN 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 0.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  14.55
  42.90
  39.11
  35.70
  32.63
  29.87
  27.38
  25.14
  23.13
  21.31
  19.68
  18.21
  16.89
  15.70
  14.63
  13.67
  12.80
  12.02
  11.32
  10.69
  10.12
  9.61
  9.15
  8.73
  8.36
  8.02
  7.72
  7.45
  7.20
  6.98
  6.79
Revenue, $m
  63
  90
  125
  170
  225
  293
  373
  467
  575
  697
  834
  986
  1,153
  1,334
  1,529
  1,738
  1,960
  2,196
  2,445
  2,706
  2,980
  3,266
  3,565
  3,876
  4,200
  4,537
  4,887
  5,251
  5,630
  6,023
  6,432
Variable operating expenses, $m
 
  266
  370
  502
  665
  864
  1,101
  1,377
  1,696
  2,057
  2,462
  2,911
  3,403
  3,937
  4,513
  5,130
  5,787
  6,483
  7,217
  7,988
  8,796
  9,642
  10,523
  11,442
  12,399
  13,394
  14,428
  15,502
  16,619
  17,780
  18,986
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
  239
  266
  370
  502
  665
  864
  1,101
  1,377
  1,696
  2,057
  2,462
  2,911
  3,403
  3,937
  4,513
  5,130
  5,787
  6,483
  7,217
  7,988
  8,796
  9,642
  10,523
  11,442
  12,399
  13,394
  14,428
  15,502
  16,619
  17,780
  18,986
Operating income, $m
  -175
  -176
  -244
  -332
  -440
  -571
  -728
  -911
  -1,121
  -1,360
  -1,628
  -1,925
  -2,250
  -2,603
  -2,984
  -3,392
  -3,827
  -4,287
  -4,772
  -5,282
  -5,817
  -6,375
  -6,959
  -7,566
  -8,199
  -8,856
  -9,540
  -10,251
  -10,989
  -11,757
  -12,555
EBITDA, $m
  -172
  -171
  -238
  -324
  -429
  -557
  -710
  -889
  -1,094
  -1,327
  -1,589
  -1,878
  -2,195
  -2,540
  -2,912
  -3,310
  -3,733
  -4,182
  -4,656
  -5,153
  -5,675
  -6,220
  -6,789
  -7,382
  -7,999
  -8,640
  -9,308
  -10,001
  -10,721
  -11,470
  -12,248
Interest expense (income), $m
  0
  5
  12
  20
  30
  42
  57
  75
  96
  121
  148
  179
  213
  250
  291
  335
  382
  432
  485
  541
  600
  661
  725
  793
  863
  935
  1,011
  1,090
  1,172
  1,257
  1,345
Earnings before tax, $m
  -173
  -181
  -256
  -351
  -470
  -613
  -785
  -986
  -1,218
  -1,481
  -1,776
  -2,104
  -2,463
  -2,854
  -3,275
  -3,727
  -4,209
  -4,719
  -5,257
  -5,823
  -6,416
  -7,036
  -7,684
  -8,359
  -9,061
  -9,792
  -10,551
  -11,341
  -12,161
  -13,013
  -13,900
Tax expense, $m
  3
  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
  -185
  -181
  -256
  -351
  -470
  -613
  -785
  -986
  -1,218
  -1,481
  -1,776
  -2,104
  -2,463
  -2,854
  -3,275
  -3,727
  -4,209
  -4,719
  -5,257
  -5,823
  -6,416
  -7,036
  -7,684
  -8,359
  -9,061
  -9,792
  -10,551
  -11,341
  -12,161
  -13,013
  -13,900

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  80
  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
  1,177
  1,579
  2,197
  2,981
  3,954
  5,135
  6,541
  8,186
  10,079
  12,228
  14,634
  17,300
  20,222
  23,398
  26,822
  30,489
  34,392
  38,527
  42,889
  47,473
  52,277
  57,300
  62,541
  68,003
  73,687
  79,599
  85,745
  92,132
  98,769
  105,666
  112,836
Adjusted assets (=assets-cash), $m
  1,097
  1,579
  2,197
  2,981
  3,954
  5,135
  6,541
  8,186
  10,079
  12,228
  14,634
  17,300
  20,222
  23,398
  26,822
  30,489
  34,392
  38,527
  42,889
  47,473
  52,277
  57,300
  62,541
  68,003
  73,687
  79,599
  85,745
  92,132
  98,769
  105,666
  112,836
Revenue / Adjusted assets
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
Average production assets, $m
  32
  45
  63
  85
  113
  146
  186
  233
  287
  348
  417
  493
  576
  667
  764
  869
  980
  1,098
  1,222
  1,353
  1,490
  1,633
  1,782
  1,938
  2,100
  2,269
  2,444
  2,626
  2,815
  3,011
  3,216
Working capital, $m
  181
  45
  63
  85
  113
  146
  186
  233
  287
  348
  417
  493
  576
  667
  764
  869
  980
  1,098
  1,222
  1,353
  1,490
  1,633
  1,782
  1,938
  2,100
  2,269
  2,444
  2,626
  2,815
  3,011
  3,216
Total debt, $m
  193
  332
  558
  845
  1,201
  1,634
  2,148
  2,750
  3,443
  4,229
  5,110
  6,086
  7,155
  8,318
  9,571
  10,913
  12,342
  13,855
  15,451
  17,129
  18,888
  20,726
  22,644
  24,643
  26,723
  28,887
  31,137
  33,474
  35,903
  38,428
  41,052
Total liabilities, $m
  438
  578
  804
  1,091
  1,447
  1,880
  2,394
  2,996
  3,689
  4,475
  5,356
  6,332
  7,401
  8,564
  9,817
  11,159
  12,588
  14,101
  15,697
  17,375
  19,134
  20,972
  22,890
  24,889
  26,969
  29,133
  31,383
  33,720
  36,149
  38,674
  41,298
Total equity, $m
  738
  1,001
  1,393
  1,890
  2,507
  3,256
  4,147
  5,190
  6,390
  7,752
  9,278
  10,968
  12,821
  14,834
  17,005
  19,330
  21,805
  24,426
  27,192
  30,098
  33,144
  36,328
  39,651
  43,114
  46,718
  50,466
  54,362
  58,411
  62,619
  66,992
  71,538
Total liabilities and equity, $m
  1,176
  1,579
  2,197
  2,981
  3,954
  5,136
  6,541
  8,186
  10,079
  12,227
  14,634
  17,300
  20,222
  23,398
  26,822
  30,489
  34,393
  38,527
  42,889
  47,473
  52,278
  57,300
  62,541
  68,003
  73,687
  79,599
  85,745
  92,131
  98,768
  105,666
  112,836
Debt-to-equity ratio
  0.262
  0.330
  0.400
  0.450
  0.480
  0.500
  0.520
  0.530
  0.540
  0.550
  0.550
  0.550
  0.560
  0.560
  0.560
  0.560
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
Adjusted equity ratio
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -185
  -181
  -256
  -351
  -470
  -613
  -785
  -986
  -1,218
  -1,481
  -1,776
  -2,104
  -2,463
  -2,854
  -3,275
  -3,727
  -4,209
  -4,719
  -5,257
  -5,823
  -6,416
  -7,036
  -7,684
  -8,359
  -9,061
  -9,792
  -10,551
  -11,341
  -12,161
  -13,013
  -13,900
Depreciation, amort., depletion, $m
  3
  4
  6
  8
  11
  14
  18
  22
  27
  33
  40
  47
  55
  64
  73
  83
  93
  105
  116
  129
  142
  156
  170
  185
  200
  216
  233
  250
  268
  287
  306
Funds from operations, $m
  10
  -177
  -250
  -343
  -459
  -599
  -767
  -964
  -1,190
  -1,448
  -1,737
  -2,057
  -2,408
  -2,790
  -3,203
  -3,645
  -4,115
  -4,614
  -5,141
  -5,694
  -6,274
  -6,881
  -7,514
  -8,174
  -8,861
  -9,576
  -10,319
  -11,091
  -11,893
  -12,727
  -13,593
Change in working capital, $m
  21
  14
  18
  22
  28
  34
  40
  47
  54
  61
  69
  76
  83
  91
  98
  105
  111
  118
  124
  131
  137
  143
  149
  156
  162
  168
  175
  182
  189
  197
  204
Cash from operations, $m
  -11
  -190
  -268
  -366
  -487
  -633
  -807
  -1,011
  -1,244
  -1,509
  -1,805
  -2,133
  -2,491
  -2,881
  -3,300
  -3,749
  -4,226
  -4,732
  -5,265
  -5,825
  -6,411
  -7,024
  -7,664
  -8,330
  -9,023
  -9,744
  -10,494
  -11,273
  -12,082
  -12,923
  -13,798
Maintenance CAPEX, $m
  0
  -3
  -4
  -6
  -8
  -11
  -14
  -18
  -22
  -27
  -33
  -40
  -47
  -55
  -64
  -73
  -83
  -93
  -105
  -116
  -129
  -142
  -156
  -170
  -185
  -200
  -216
  -233
  -250
  -268
  -287
New CAPEX, $m
  0
  -14
  -18
  -22
  -28
  -34
  -40
  -47
  -54
  -61
  -69
  -76
  -83
  -91
  -98
  -105
  -111
  -118
  -124
  -131
  -137
  -143
  -149
  -156
  -162
  -168
  -175
  -182
  -189
  -197
  -204
Cash from investing activities, $m
  -193
  -17
  -22
  -28
  -36
  -45
  -54
  -65
  -76
  -88
  -102
  -116
  -130
  -146
  -162
  -178
  -194
  -211
  -229
  -247
  -266
  -285
  -305
  -326
  -347
  -368
  -391
  -415
  -439
  -465
  -491
Free cash flow, $m
  -204
  -207
  -290
  -394
  -522
  -678
  -861
  -1,075
  -1,320
  -1,598
  -1,907
  -2,248
  -2,622
  -3,026
  -3,461
  -3,926
  -4,421
  -4,943
  -5,494
  -6,072
  -6,677
  -7,309
  -7,969
  -8,655
  -9,370
  -10,113
  -10,885
  -11,687
  -12,521
  -13,388
  -14,289
Issuance/(repayment) of debt, $m
  -82
  176
  226
  287
  356
  432
  515
  602
  693
  786
  881
  976
  1,070
  1,162
  1,253
  1,342
  1,429
  1,513
  1,596
  1,678
  1,758
  1,838
  1,918
  1,999
  2,080
  2,164
  2,249
  2,338
  2,429
  2,524
  2,624
Issuance/(repurchase) of shares, $m
  1
  488
  648
  849
  1,086
  1,362
  1,676
  2,029
  2,418
  2,843
  3,302
  3,794
  4,316
  4,867
  5,446
  6,052
  6,683
  7,340
  8,022
  8,729
  9,462
  10,221
  11,007
  11,821
  12,665
  13,540
  14,448
  15,390
  16,369
  17,386
  18,445
Cash from financing (excl. dividends), $m  
  226
  664
  874
  1,136
  1,442
  1,794
  2,191
  2,631
  3,111
  3,629
  4,183
  4,770
  5,386
  6,029
  6,699
  7,394
  8,112
  8,853
  9,618
  10,407
  11,220
  12,059
  12,925
  13,820
  14,745
  15,704
  16,697
  17,728
  18,798
  19,910
  21,069
Total cash flow (excl. dividends), $m
  19
  457
  584
  742
  920
  1,117
  1,330
  1,555
  1,790
  2,032
  2,276
  2,521
  2,764
  3,003
  3,238
  3,468
  3,692
  3,911
  4,125
  4,335
  4,543
  4,750
  4,957
  5,165
  5,376
  5,591
  5,812
  6,040
  6,277
  6,523
  6,780
Retained Cash Flow (-), $m
  193
  -488
  -648
  -849
  -1,086
  -1,362
  -1,676
  -2,029
  -2,418
  -2,843
  -3,302
  -3,794
  -4,316
  -4,867
  -5,446
  -6,052
  -6,683
  -7,340
  -8,022
  -8,729
  -9,462
  -10,221
  -11,007
  -11,821
  -12,665
  -13,540
  -14,448
  -15,390
  -16,369
  -17,386
  -18,445
Prev. year cash balance distribution, $m
 
  43
  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
 
  12
  -64
  -107
  -166
  -245
  -347
  -473
  -628
  -811
  -1,026
  -1,273
  -1,552
  -1,864
  -2,208
  -2,584
  -2,992
  -3,430
  -3,897
  -4,394
  -4,919
  -5,471
  -6,050
  -6,656
  -7,289
  -7,949
  -8,636
  -9,350
  -10,092
  -10,863
  -11,665
Discount rate, %
 
  6.60
  6.93
  7.28
  7.64
  8.02
  8.42
  8.84
  9.29
  9.75
  10.24
  10.75
  11.29
  11.85
  12.45
  13.07
  13.72
  14.41
  15.13
  15.88
  16.68
  17.51
  18.39
  19.31
  20.27
  21.29
  22.35
  23.47
  24.64
  25.87
  27.17
PV of cash for distribution, $m
 
  11
  -56
  -86
  -124
  -167
  -213
  -262
  -308
  -351
  -387
  -414
  -430
  -435
  -427
  -410
  -382
  -348
  -309
  -267
  -225
  -185
  -148
  -115
  -87
  -64
  -46
  -32
  -21
  -14
  -9
Current shareholders' claim on cash, %
  100
  50.2
  26.2
  14.1
  7.8
  4.4
  2.5
  1.5
  0.9
  0.6
  0.3
  0.2
  0.1
  0.1
  0.1
  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
  0.0

Renren Inc. operates a social networking Internet platform in the People’s Republic of China. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers. It also operates Renren Fenqi, a financial service platform, which provides credit financing to college students for making purchases on e-commerce platforms; short-term financing to used car dealers; rental financing to individuals who are referred by the apartment agents; and micro cash financing to college students to fund their short-term consumption. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.

FINANCIAL RATIOS  of  Renren Cl A ADR (RENN)

Valuation Ratios
P/E Ratio -14
Price to Sales 41.1
Price to Book 3.5
Price to Tangible Book
Price to Cash Flow -235.1
Price to Free Cash Flow -235.1
Growth Rates
Sales Growth Rate 14.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -100%
Cap. Spend. - 3 Yr. Gr. Rate -100%
Financial Strength
Quick Ratio 2
Current Ratio 0.2
LT Debt to Equity 21.1%
Total Debt to Equity 26.2%
Interest Coverage 0
Management Effectiveness
Return On Assets -15.1%
Ret/ On Assets - 3 Yr. Avg. -10%
Return On Total Capital -17.7%
Ret/ On T. Cap. - 3 Yr. Avg. -11.3%
Return On Equity -22.2%
Return On Equity - 3 Yr. Avg. -13.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 19%
Gross Margin - 3 Yr. Avg. 21.5%
EBITDA Margin -269.8%
EBITDA Margin - 3 Yr. Avg. -207%
Operating Margin -279.4%
Oper. Margin - 3 Yr. Avg. -272.2%
Pre-Tax Margin -274.6%
Pre-Tax Margin - 3 Yr. Avg. -228.6%
Net Profit Margin -293.7%
Net Profit Margin - 3 Yr. Avg. -200.8%
Effective Tax Rate -1.7%
Eff/ Tax Rate - 3 Yr. Avg. -16.6%
Payout Ratio 0%

RENN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RENN stock intrinsic value calculation we used $63 million for the last fiscal year's total revenue generated by Renren Cl A ADR. The default revenue input number comes from 2016 income statement of Renren Cl A ADR. 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 RENN stock valuation model: a) initial revenue growth rate of 42.9% 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 6.6%, whose default value for RENN is calculated based on our internal credit rating of Renren Cl A ADR, 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 Renren Cl A ADR.
    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 RENN stock the variable cost ratio is equal to 295.2%.

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 RENN 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 Renren Cl A ADR.

Corporate tax rate of 27% is the nominal tax rate for Renren Cl A ADR. 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 RENN 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 RENN are equal to 50%.

Life of production assets of 10.5 years is the average useful life of capital assets used in Renren Cl A ADR 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 RENN is equal to 50%. 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 - $738 million for Renren Cl A ADR - 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 67.385 million for Renren Cl A ADR 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 Renren Cl A ADR at the current share price and the inputted number of shares is $0.5 billion.

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COMPANY NEWS

▶ ETFs with exposure to Renren Inc. : August 4, 2017   [Aug-04-17 07:50PM  Capital Cube]
▶ ETFs with exposure to Renren Inc. : July 10, 2017   [Jul-10-17 03:08PM  Capital Cube]
▶ ETFs with exposure to Renren Inc. : June 27, 2017   [Jun-27-17 03:37PM  Capital Cube]
▶ Renren reports 1Q loss   [Jun-21-17 08:59PM  Associated Press]
▶ ETFs with exposure to Renren Inc. : June 16, 2017   [Jun-16-17 04:14PM  Capital Cube]
▶ ETFs with exposure to Renren Inc. : June 5, 2017   [Jun-05-17 02:42PM  Capital Cube]
▶ ETFs with exposure to Renren Inc. : May 25, 2017   [May-25-17 12:47PM  Capital Cube]
▶ Renren reports 4Q loss   [May-15-17 06:24PM  Associated Press]
▶ ETFs with exposure to Renren Inc. : April 5, 2017   [Apr-05-17 05:21PM  Capital Cube]
▶ [$$] Why China Cant Get Enough of Elon Musk   [Mar-31-17 12:11AM  The Wall Street Journal]
▶ [$$] Why China Can't Get Enough of Elon Musk   [Mar-30-17 08:59AM  at The Wall Street Journal]
▶ 2 Chinese Stocks That Were Cut in Half in a Year   [Mar-02-17 06:11PM  Motley Fool]
▶ Snapchat Has Big Competition in China   [Feb-17-17 04:51PM  Investopedia]
▶ Why Shares of Renren Inc. Got Cut in Half in 2016   [Feb-07-17 12:41PM  Motley Fool]
▶ [$$] Global Uncertainty Plays to Startup FiscalNote's Hand   [Jan-23-17 07:30AM  The Wall Street Journal]
▶ ETFs with exposure to Renren Inc. : January 19, 2017   [Jan-19-17 01:47PM  Capital Cube]
▶ Renren Announces Plan to Implement ADS Ratio Change   [Jan-06-17 06:00AM  PR Newswire]
▶ Is Renren Inc (RENN) A Good Stock to Buy?   [Dec-16-16 07:38PM  at Insider Monkey]
▶ Renren reports 3Q loss   [05:03AM  AP]
▶ Why Renren Inc. Stock Jumped 13% in September   [Oct-12-16 09:32AM  at Motley Fool]
▶ Should Baidu Follow Renren This Time?   [Oct-10-16 09:17AM  at Motley Fool]
▶ Why Renren Inc. Stock Soared Today   [Oct-04-16 06:01PM  at Motley Fool]
▶ Why Lexmark, Mentor Graphics, and Renren Jumped Today   [Sep-30-16 05:59PM  at Motley Fool]
▶ [$$] VC Profile: DCM Finds Exits With East Asia-U.S. Strategy   [Sep-06-16 09:05AM  at The Wall Street Journal]
▶ Renren Issues Asset-Backed Securitization   [06:00AM  PR Newswire]
▶ Renren reports 2Q loss   [Aug-16-16 08:02AM  AP]
▶ Major Stocks Making News: Amazon, Tesla, Lululemon, More   [Jun-08-16 08:14AM  at Insider Monkey]
▶ 3 Chinese Internet Stocks That Fell Apart Last Week   [May-22-16 10:00AM  at Motley Fool]
▶ Sorry, Renren, You're No Facebook   [09:16AM  at Motley Fool]
▶ Renren reports 4Q loss   [06:30AM  AP]
▶ [$$] Sirin Labs Raises $72M to Release High-End Smartphone   [Apr-24-16 07:01PM  at The Wall Street Journal]
▶ Term Sheet Friday, March 25   [Mar-25-16 09:57AM  at Fortune]
▶ China's First Used Automobile Finance Leasing ABS Issued   [Jan-25-16 09:00PM  PR Newswire]
▶ Renren Announces Changes to Board of Directors   [Dec-31  05:00AM  PR Newswire]
▶ Renren Announces Additional Investment in SoFi   [Oct-27  06:00AM  PR Newswire]
▶ CFO Moves: Renren, Suffolk Bancorp, Spartan Motors   [Sep-30  06:17PM  at The Wall Street Journal]
Financial statements of RENN
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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