Intrinsic value of Rockwell Automation - ROK

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$157.35

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$157.35

 
Intrinsic value

$139.25

 
Up/down potential

-12%

 
Rating

hold

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

We calculate the intrinsic value of ROK 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 20.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -6.79
  4.40
  4.46
  4.51
  4.56
  4.61
  4.65
  4.68
  4.71
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
Revenue, $m
  5,880
  6,139
  6,413
  6,702
  7,008
  7,331
  7,671
  8,030
  8,409
  8,807
  9,227
  9,669
  10,135
  10,624
  11,139
  11,681
  12,250
  12,849
  13,479
  14,141
  14,836
  15,567
  16,335
  17,143
  17,991
  18,882
  19,817
  20,801
  21,833
  22,918
  24,058
Variable operating expenses, $m
 
  3,507
  3,658
  3,819
  3,988
  4,167
  4,355
  4,554
  4,764
  4,984
  5,217
  5,354
  5,612
  5,883
  6,168
  6,468
  6,783
  7,115
  7,464
  7,830
  8,215
  8,620
  9,046
  9,492
  9,962
  10,455
  10,974
  11,518
  12,090
  12,691
  13,322
Fixed operating expenses, $m
 
  1,649
  1,690
  1,733
  1,776
  1,820
  1,866
  1,913
  1,960
  2,009
  2,060
  2,111
  2,164
  2,218
  2,273
  2,330
  2,389
  2,448
  2,509
  2,572
  2,637
  2,702
  2,770
  2,839
  2,910
  2,983
  3,058
  3,134
  3,212
  3,293
  3,375
Total operating expenses, $m
  4,936
  5,156
  5,348
  5,552
  5,764
  5,987
  6,221
  6,467
  6,724
  6,993
  7,277
  7,465
  7,776
  8,101
  8,441
  8,798
  9,172
  9,563
  9,973
  10,402
  10,852
  11,322
  11,816
  12,331
  12,872
  13,438
  14,032
  14,652
  15,302
  15,984
  16,697
Operating income, $m
  943
  983
  1,064
  1,151
  1,244
  1,344
  1,450
  1,564
  1,685
  1,814
  1,951
  2,204
  2,359
  2,523
  2,698
  2,882
  3,078
  3,286
  3,506
  3,738
  3,984
  4,245
  4,520
  4,811
  5,118
  5,443
  5,786
  6,149
  6,531
  6,935
  7,361
EBITDA, $m
  1,115
  1,170
  1,254
  1,345
  1,442
  1,546
  1,656
  1,775
  1,901
  2,035
  2,177
  2,329
  2,490
  2,660
  2,841
  3,033
  3,237
  3,452
  3,680
  3,921
  4,176
  4,446
  4,731
  5,032
  5,351
  5,687
  6,042
  6,417
  6,813
  7,231
  7,672
Interest expense (income), $m
  0
  53
  43
  50
  58
  65
  73
  82
  91
  100
  110
  121
  132
  143
  156
  169
  182
  196
  211
  227
  244
  261
  279
  299
  319
  340
  362
  386
  410
  436
  463
Earnings before tax, $m
  943
  930
  1,020
  1,100
  1,186
  1,278
  1,377
  1,482
  1,594
  1,713
  1,841
  2,083
  2,227
  2,380
  2,542
  2,714
  2,896
  3,090
  3,294
  3,511
  3,741
  3,984
  4,241
  4,512
  4,800
  5,103
  5,424
  5,763
  6,121
  6,499
  6,898
Tax expense, $m
  213
  251
  275
  297
  320
  345
  372
  400
  430
  463
  497
  562
  601
  643
  686
  733
  782
  834
  889
  948
  1,010
  1,076
  1,145
  1,218
  1,296
  1,378
  1,464
  1,556
  1,653
  1,755
  1,862
Net income, $m
  730
  679
  745
  803
  866
  933
  1,005
  1,082
  1,164
  1,251
  1,344
  1,521
  1,626
  1,737
  1,856
  1,981
  2,114
  2,255
  2,405
  2,563
  2,731
  2,908
  3,096
  3,294
  3,504
  3,725
  3,960
  4,207
  4,468
  4,744
  5,035

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,429
  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
  7,101
  4,876
  5,093
  5,323
  5,566
  5,823
  6,093
  6,378
  6,679
  6,996
  7,329
  7,680
  8,050
  8,439
  8,848
  9,278
  9,730
  10,206
  10,706
  11,232
  11,784
  12,365
  12,975
  13,616
  14,290
  14,997
  15,741
  16,522
  17,342
  18,204
  19,109
Adjusted assets (=assets-cash), $m
  4,672
  4,876
  5,093
  5,323
  5,566
  5,823
  6,093
  6,378
  6,679
  6,996
  7,329
  7,680
  8,050
  8,439
  8,848
  9,278
  9,730
  10,206
  10,706
  11,232
  11,784
  12,365
  12,975
  13,616
  14,290
  14,997
  15,741
  16,522
  17,342
  18,204
  19,109
Revenue / Adjusted assets
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
  1.259
Average production assets, $m
  835
  872
  911
  952
  995
  1,041
  1,089
  1,140
  1,194
  1,251
  1,310
  1,373
  1,439
  1,509
  1,582
  1,659
  1,740
  1,825
  1,914
  2,008
  2,107
  2,211
  2,320
  2,434
  2,555
  2,681
  2,814
  2,954
  3,100
  3,254
  3,416
Working capital, $m
  2,209
  239
  250
  261
  273
  286
  299
  313
  328
  343
  360
  377
  395
  414
  434
  456
  478
  501
  526
  551
  579
  607
  637
  669
  702
  736
  773
  811
  852
  894
  938
Total debt, $m
  1,965
  1,242
  1,438
  1,645
  1,864
  2,094
  2,338
  2,594
  2,865
  3,150
  3,450
  3,766
  4,099
  4,449
  4,817
  5,204
  5,611
  6,039
  6,489
  6,963
  7,460
  7,982
  8,531
  9,108
  9,715
  10,352
  11,021
  11,723
  12,462
  13,237
  14,052
Total liabilities, $m
  5,111
  4,388
  4,584
  4,791
  5,010
  5,240
  5,484
  5,740
  6,011
  6,296
  6,596
  6,912
  7,245
  7,595
  7,963
  8,350
  8,757
  9,185
  9,635
  10,109
  10,606
  11,128
  11,677
  12,254
  12,861
  13,498
  14,167
  14,869
  15,608
  16,383
  17,198
Total equity, $m
  1,990
  488
  509
  532
  557
  582
  609
  638
  668
  700
  733
  768
  805
  844
  885
  928
  973
  1,021
  1,071
  1,123
  1,178
  1,236
  1,297
  1,362
  1,429
  1,500
  1,574
  1,652
  1,734
  1,820
  1,911
Total liabilities and equity, $m
  7,101
  4,876
  5,093
  5,323
  5,567
  5,822
  6,093
  6,378
  6,679
  6,996
  7,329
  7,680
  8,050
  8,439
  8,848
  9,278
  9,730
  10,206
  10,706
  11,232
  11,784
  12,364
  12,974
  13,616
  14,290
  14,998
  15,741
  16,521
  17,342
  18,203
  19,109
Debt-to-equity ratio
  0.987
  2.550
  2.820
  3.090
  3.350
  3.600
  3.840
  4.070
  4.290
  4.500
  4.710
  4.900
  5.090
  5.270
  5.440
  5.610
  5.770
  5.920
  6.060
  6.200
  6.330
  6.460
  6.580
  6.690
  6.800
  6.900
  7.000
  7.100
  7.190
  7.270
  7.350
Adjusted equity ratio
  0.002
  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
  730
  679
  745
  803
  866
  933
  1,005
  1,082
  1,164
  1,251
  1,344
  1,521
  1,626
  1,737
  1,856
  1,981
  2,114
  2,255
  2,405
  2,563
  2,731
  2,908
  3,096
  3,294
  3,504
  3,725
  3,960
  4,207
  4,468
  4,744
  5,035
Depreciation, amort., depletion, $m
  172
  187
  190
  194
  198
  202
  206
  211
  216
  221
  227
  125
  131
  137
  144
  151
  158
  166
  174
  183
  192
  201
  211
  221
  232
  244
  256
  269
  282
  296
  311
Funds from operations, $m
  911
  865
  935
  997
  1,064
  1,135
  1,211
  1,293
  1,379
  1,472
  1,570
  1,646
  1,757
  1,874
  1,999
  2,132
  2,272
  2,421
  2,579
  2,746
  2,922
  3,109
  3,306
  3,515
  3,736
  3,969
  4,215
  4,475
  4,750
  5,040
  5,346
Change in working capital, $m
  -36
  10
  11
  11
  12
  13
  13
  14
  15
  16
  16
  17
  18
  19
  20
  21
  22
  23
  25
  26
  27
  29
  30
  31
  33
  35
  37
  38
  40
  42
  44
Cash from operations, $m
  947
  854
  924
  986
  1,052
  1,123
  1,198
  1,279
  1,365
  1,456
  1,554
  1,628
  1,738
  1,855
  1,979
  2,111
  2,250
  2,398
  2,554
  2,720
  2,895
  3,080
  3,277
  3,484
  3,703
  3,934
  4,179
  4,437
  4,710
  4,998
  5,302
Maintenance CAPEX, $m
  0
  -76
  -79
  -83
  -87
  -90
  -95
  -99
  -104
  -109
  -114
  -119
  -125
  -131
  -137
  -144
  -151
  -158
  -166
  -174
  -183
  -192
  -201
  -211
  -221
  -232
  -244
  -256
  -269
  -282
  -296
New CAPEX, $m
  -117
  -37
  -39
  -41
  -43
  -46
  -48
  -51
  -54
  -57
  -60
  -63
  -66
  -70
  -73
  -77
  -81
  -85
  -89
  -94
  -99
  -104
  -109
  -115
  -120
  -127
  -133
  -140
  -147
  -154
  -162
Cash from investing activities, $m
  -440
  -113
  -118
  -124
  -130
  -136
  -143
  -150
  -158
  -166
  -174
  -182
  -191
  -201
  -210
  -221
  -232
  -243
  -255
  -268
  -282
  -296
  -310
  -326
  -341
  -359
  -377
  -396
  -416
  -436
  -458
Free cash flow, $m
  507
  741
  806
  862
  922
  986
  1,055
  1,129
  1,207
  1,291
  1,380
  1,446
  1,547
  1,655
  1,769
  1,890
  2,019
  2,155
  2,299
  2,452
  2,614
  2,785
  2,966
  3,158
  3,361
  3,576
  3,802
  4,042
  4,295
  4,562
  4,844
Issuance/(repayment) of debt, $m
  449
  -274
  196
  207
  219
  231
  243
  257
  271
  285
  300
  316
  333
  350
  368
  387
  407
  428
  450
  473
  497
  523
  549
  577
  606
  637
  669
  703
  738
  775
  815
Issuance/(repurchase) of shares, $m
  -471
  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  
  -20
  -274
  196
  207
  219
  231
  243
  257
  271
  285
  300
  316
  333
  350
  368
  387
  407
  428
  450
  473
  497
  523
  549
  577
  606
  637
  669
  703
  738
  775
  815
Total cash flow (excl. dividends), $m
  477
  467
  1,002
  1,069
  1,141
  1,217
  1,299
  1,385
  1,478
  1,576
  1,681
  1,762
  1,880
  2,005
  2,137
  2,277
  2,426
  2,583
  2,749
  2,925
  3,111
  3,308
  3,516
  3,735
  3,967
  4,212
  4,471
  4,744
  5,033
  5,337
  5,658
Retained Cash Flow (-), $m
  267
  -478
  -22
  -23
  -24
  -26
  -27
  -29
  -30
  -32
  -33
  -35
  -37
  -39
  -41
  -43
  -45
  -48
  -50
  -53
  -55
  -58
  -61
  -64
  -67
  -71
  -74
  -78
  -82
  -86
  -91
Prev. year cash balance distribution, $m
 
  1,980
  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
 
  1,969
  980
  1,046
  1,116
  1,191
  1,272
  1,357
  1,448
  1,544
  1,647
  1,727
  1,843
  1,966
  2,096
  2,234
  2,380
  2,535
  2,699
  2,872
  3,056
  3,250
  3,455
  3,671
  3,900
  4,142
  4,397
  4,666
  4,951
  5,251
  5,568
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,888
  897
  910
  919
  924
  923
  917
  905
  887
  864
  820
  787
  748
  704
  656
  605
  552
  497
  442
  388
  336
  287
  241
  199
  161
  128
  100
  77
  57
  42
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

Rockwell Automation Inc. provides industrial automation and information solutions worldwide. It operates in two segments, Architecture & Software; and Control Products & Solutions. The Architecture & Software segment provides control platforms, including controllers, electronic operator interface devices, electronic input/output devices, communication and networking products, and industrial computers that perform multiple control disciplines and monitoring of applications, such as discrete, batch and continuous process, drives control, motion control, and machine safety control. This segment also offers software products that include configuration and visualization software, which is used to operate and supervise control platforms, process control software, and manufacturing execution systems and information solution software to enhance manufacturing productivity and meet regulatory requirements; and other products comprising sensors, machine safety components, and linear motion control products. The Control Products & Solutions segment offers low and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, push buttons, signaling devices, termination and protection devices, relays, and timers; and various packaged solutions, such as configured drives and motor control centers to automation and information solutions. This segment also offers total life-cycle support services, including technical support and repair, asset management, training, maintenance, and safety and network consulting services. The company serves food and beverage, home and personal care, life sciences, automotive and tire, oil and gas, and mining and metal industries through independent distributors and direct sales force in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Rockwell Automation Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

FINANCIAL RATIOS  of  Rockwell Automation (ROK)

Valuation Ratios
P/E Ratio 27.7
Price to Sales 3.4
Price to Book 10.2
Price to Tangible Book
Price to Cash Flow 21.4
Price to Free Cash Flow 24.4
Growth Rates
Sales Growth Rate -6.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4.9%
Cap. Spend. - 3 Yr. Gr. Rate -4.3%
Financial Strength
Quick Ratio 5
Current Ratio 0.1
LT Debt to Equity 76.2%
Total Debt to Equity 98.7%
Interest Coverage 0
Management Effectiveness
Return On Assets 10.8%
Ret/ On Assets - 3 Yr. Avg. 12.5%
Return On Total Capital 18.9%
Ret/ On T. Cap. - 3 Yr. Avg. 20.8%
Return On Equity 34.4%
Return On Equity - 3 Yr. Avg. 33.2%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 42.1%
Gross Margin - 3 Yr. Avg. 42.2%
EBITDA Margin 19%
EBITDA Margin - 3 Yr. Avg. 19.6%
Operating Margin 16.1%
Oper. Margin - 3 Yr. Avg. 17%
Pre-Tax Margin 16%
Pre-Tax Margin - 3 Yr. Avg. 17%
Net Profit Margin 12.4%
Net Profit Margin - 3 Yr. Avg. 12.7%
Effective Tax Rate 22.6%
Eff/ Tax Rate - 3 Yr. Avg. 25.4%
Payout Ratio 51.8%

ROK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ROK stock intrinsic value calculation we used $5880 million for the last fiscal year's total revenue generated by Rockwell Automation. The default revenue input number comes from 2016 income statement of Rockwell Automation. 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 ROK stock valuation model: a) initial revenue growth rate of 4.4% 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 4.3%, whose default value for ROK is calculated based on our internal credit rating of Rockwell Automation, 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 Rockwell Automation.
    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 ROK stock the variable cost ratio is equal to 57.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1609 million in the base year in the intrinsic value calculation for ROK 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 Rockwell Automation.

Corporate tax rate of 27% is the nominal tax rate for Rockwell Automation. 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 ROK 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 ROK are equal to 14.2%.

Life of production assets of 11 years is the average useful life of capital assets used in Rockwell Automation 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 ROK is equal to 3.9%. 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 - $1990 million for Rockwell Automation - 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 128.893 million for Rockwell Automation 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 Rockwell Automation at the current share price and the inputted number of shares is $20.3 billion.


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Stock chart of ROK Financial statements of ROK
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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