Intrinsic value of Republic Services - RSG

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$64.04

  Intrinsic Value

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  Value-price divergence*

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$64.04

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

We calculate the intrinsic value of RSG 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 21.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.00
  3.90
  4.01
  4.11
  4.20
  4.28
  4.35
  4.42
  4.47
  4.53
  4.57
  4.62
  4.65
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.83
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
Revenue, $m
  9,388
  9,754
  10,145
  10,562
  11,006
  11,476
  11,976
  12,504
  13,064
  13,655
  14,280
  14,939
  15,634
  16,368
  17,140
  17,954
  18,811
  19,713
  20,663
  21,662
  22,713
  23,818
  24,980
  26,202
  27,487
  28,837
  30,256
  31,747
  33,314
  34,961
  36,691
Variable operating expenses, $m
 
  8,043
  8,320
  8,616
  8,931
  9,266
  9,620
  9,996
  10,393
  10,813
  11,256
  10,608
  11,102
  11,622
  12,171
  12,749
  13,358
  13,998
  14,672
  15,382
  16,128
  16,913
  17,738
  18,606
  19,518
  20,477
  21,485
  22,544
  23,656
  24,825
  26,054
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
  8,046
  8,043
  8,320
  8,616
  8,931
  9,266
  9,620
  9,996
  10,393
  10,813
  11,256
  10,608
  11,102
  11,622
  12,171
  12,749
  13,358
  13,998
  14,672
  15,382
  16,128
  16,913
  17,738
  18,606
  19,518
  20,477
  21,485
  22,544
  23,656
  24,825
  26,054
Operating income, $m
  1,341
  1,711
  1,825
  1,946
  2,074
  2,211
  2,356
  2,509
  2,671
  2,842
  3,024
  4,331
  4,533
  4,745
  4,969
  5,205
  5,453
  5,715
  5,990
  6,280
  6,585
  6,905
  7,242
  7,596
  7,969
  8,360
  8,771
  9,204
  9,658
  10,135
  10,637
EBITDA, $m
  2,411
  3,285
  3,416
  3,557
  3,706
  3,865
  4,033
  4,211
  4,399
  4,598
  4,809
  5,031
  5,265
  5,512
  5,772
  6,046
  6,334
  6,638
  6,958
  7,294
  7,648
  8,021
  8,412
  8,823
  9,256
  9,711
  10,189
  10,691
  11,218
  11,773
  12,355
Interest expense (income), $m
  330
  329
  350
  373
  398
  424
  452
  482
  513
  546
  581
  618
  657
  698
  742
  787
  836
  886
  940
  996
  1,055
  1,117
  1,183
  1,251
  1,324
  1,400
  1,480
  1,564
  1,652
  1,745
  1,842
Earnings before tax, $m
  966
  1,382
  1,475
  1,572
  1,676
  1,786
  1,903
  2,027
  2,158
  2,296
  2,442
  3,713
  3,875
  4,047
  4,227
  4,418
  4,618
  4,829
  5,051
  5,284
  5,530
  5,788
  6,059
  6,345
  6,645
  6,960
  7,292
  7,640
  8,006
  8,391
  8,795
Tax expense, $m
  353
  373
  398
  425
  453
  482
  514
  547
  583
  620
  659
  1,002
  1,046
  1,093
  1,141
  1,193
  1,247
  1,304
  1,364
  1,427
  1,493
  1,563
  1,636
  1,713
  1,794
  1,879
  1,969
  2,063
  2,162
  2,266
  2,375
Net income, $m
  613
  1,009
  1,076
  1,148
  1,224
  1,304
  1,389
  1,480
  1,575
  1,676
  1,783
  2,710
  2,829
  2,954
  3,086
  3,225
  3,371
  3,525
  3,687
  3,857
  4,037
  4,225
  4,423
  4,632
  4,851
  5,081
  5,323
  5,577
  5,845
  6,125
  6,420

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  68
  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
  20,630
  21,344
  22,200
  23,112
  24,082
  25,112
  26,205
  27,362
  28,586
  29,880
  31,247
  32,689
  34,211
  35,815
  37,506
  39,287
  41,162
  43,136
  45,214
  47,400
  49,700
  52,118
  54,661
  57,335
  60,146
  63,100
  66,206
  69,469
  72,898
  76,501
  80,286
Adjusted assets (=assets-cash), $m
  20,562
  21,344
  22,200
  23,112
  24,082
  25,112
  26,205
  27,362
  28,586
  29,880
  31,247
  32,689
  34,211
  35,815
  37,506
  39,287
  41,162
  43,136
  45,214
  47,400
  49,700
  52,118
  54,661
  57,335
  60,146
  63,100
  66,206
  69,469
  72,898
  76,501
  80,286
Revenue / Adjusted assets
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
  0.457
Average production assets, $m
  7,785
  8,086
  8,410
  8,756
  9,124
  9,514
  9,928
  10,366
  10,830
  11,320
  11,838
  12,384
  12,961
  13,569
  14,209
  14,884
  15,594
  16,342
  17,129
  17,958
  18,829
  19,745
  20,709
  21,722
  22,786
  23,906
  25,082
  26,319
  27,618
  28,983
  30,417
Working capital, $m
  -527
  -615
  -639
  -665
  -693
  -723
  -754
  -788
  -823
  -860
  -900
  -941
  -985
  -1,031
  -1,080
  -1,131
  -1,185
  -1,242
  -1,302
  -1,365
  -1,431
  -1,501
  -1,574
  -1,651
  -1,732
  -1,817
  -1,906
  -2,000
  -2,099
  -2,203
  -2,312
Total debt, $m
  7,659
  8,145
  8,684
  9,257
  9,868
  10,516
  11,203
  11,931
  12,701
  13,515
  14,374
  15,282
  16,239
  17,248
  18,311
  19,431
  20,611
  21,853
  23,160
  24,535
  25,981
  27,502
  29,102
  30,784
  32,552
  34,410
  36,363
  38,416
  40,573
  42,839
  45,220
Total liabilities, $m
  12,938
  13,425
  13,964
  14,537
  15,148
  15,796
  16,483
  17,211
  17,981
  18,795
  19,654
  20,562
  21,519
  22,528
  23,591
  24,711
  25,891
  27,133
  28,440
  29,815
  31,261
  32,782
  34,382
  36,064
  37,832
  39,690
  41,643
  43,696
  45,853
  48,119
  50,500
Total equity, $m
  7,691
  7,919
  8,236
  8,575
  8,934
  9,317
  9,722
  10,151
  10,605
  11,086
  11,593
  12,128
  12,692
  13,287
  13,915
  14,575
  15,271
  16,004
  16,774
  17,585
  18,439
  19,336
  20,279
  21,271
  22,314
  23,410
  24,562
  25,773
  27,045
  28,382
  29,786
Total liabilities and equity, $m
  20,629
  21,344
  22,200
  23,112
  24,082
  25,113
  26,205
  27,362
  28,586
  29,881
  31,247
  32,690
  34,211
  35,815
  37,506
  39,286
  41,162
  43,137
  45,214
  47,400
  49,700
  52,118
  54,661
  57,335
  60,146
  63,100
  66,205
  69,469
  72,898
  76,501
  80,286
Debt-to-equity ratio
  0.996
  1.030
  1.050
  1.080
  1.100
  1.130
  1.150
  1.180
  1.200
  1.220
  1.240
  1.260
  1.280
  1.300
  1.320
  1.330
  1.350
  1.370
  1.380
  1.400
  1.410
  1.420
  1.440
  1.450
  1.460
  1.470
  1.480
  1.490
  1.500
  1.510
  1.520
Adjusted equity ratio
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  613
  1,009
  1,076
  1,148
  1,224
  1,304
  1,389
  1,480
  1,575
  1,676
  1,783
  2,710
  2,829
  2,954
  3,086
  3,225
  3,371
  3,525
  3,687
  3,857
  4,037
  4,225
  4,423
  4,632
  4,851
  5,081
  5,323
  5,577
  5,845
  6,125
  6,420
Depreciation, amort., depletion, $m
  1,070
  1,573
  1,591
  1,611
  1,632
  1,654
  1,677
  1,702
  1,728
  1,756
  1,785
  700
  732
  767
  803
  841
  881
  923
  968
  1,015
  1,064
  1,116
  1,170
  1,227
  1,287
  1,351
  1,417
  1,487
  1,560
  1,637
  1,718
Funds from operations, $m
  1,643
  2,582
  2,668
  2,759
  2,855
  2,958
  3,067
  3,182
  3,303
  3,432
  3,568
  3,410
  3,561
  3,721
  3,889
  4,066
  4,252
  4,448
  4,655
  4,872
  5,100
  5,341
  5,593
  5,859
  6,138
  6,432
  6,740
  7,064
  7,405
  7,763
  8,139
Change in working capital, $m
  -205
  -23
  -25
  -26
  -28
  -30
  -31
  -33
  -35
  -37
  -39
  -42
  -44
  -46
  -49
  -51
  -54
  -57
  -60
  -63
  -66
  -70
  -73
  -77
  -81
  -85
  -89
  -94
  -99
  -104
  -109
Cash from operations, $m
  1,848
  2,591
  2,693
  2,785
  2,883
  2,988
  3,098
  3,215
  3,339
  3,469
  3,607
  3,452
  3,605
  3,767
  3,937
  4,117
  4,306
  4,505
  4,715
  4,935
  5,167
  5,410
  5,667
  5,936
  6,219
  6,517
  6,829
  7,158
  7,504
  7,866
  8,248
Maintenance CAPEX, $m
  0
  -440
  -457
  -475
  -495
  -515
  -538
  -561
  -586
  -612
  -640
  -669
  -700
  -732
  -767
  -803
  -841
  -881
  -923
  -968
  -1,015
  -1,064
  -1,116
  -1,170
  -1,227
  -1,287
  -1,351
  -1,417
  -1,487
  -1,560
  -1,637
New CAPEX, $m
  -928
  -301
  -324
  -346
  -368
  -390
  -414
  -438
  -464
  -490
  -518
  -546
  -576
  -608
  -640
  -675
  -710
  -748
  -787
  -828
  -871
  -916
  -963
  -1,013
  -1,065
  -1,119
  -1,176
  -1,236
  -1,299
  -1,365
  -1,434
Cash from investing activities, $m
  -961
  -741
  -781
  -821
  -863
  -905
  -952
  -999
  -1,050
  -1,102
  -1,158
  -1,215
  -1,276
  -1,340
  -1,407
  -1,478
  -1,551
  -1,629
  -1,710
  -1,796
  -1,886
  -1,980
  -2,079
  -2,183
  -2,292
  -2,406
  -2,527
  -2,653
  -2,786
  -2,925
  -3,071
Free cash flow, $m
  887
  1,850
  1,911
  1,964
  2,021
  2,082
  2,147
  2,216
  2,289
  2,367
  2,450
  2,236
  2,329
  2,427
  2,530
  2,640
  2,755
  2,876
  3,004
  3,139
  3,281
  3,430
  3,587
  3,753
  3,927
  4,110
  4,302
  4,505
  4,718
  4,941
  5,176
Issuance/(repayment) of debt, $m
  103
  492
  538
  574
  610
  648
  687
  728
  770
  814
  860
  907
  957
  1,009
  1,063
  1,120
  1,180
  1,242
  1,307
  1,375
  1,446
  1,521
  1,600
  1,682
  1,768
  1,858
  1,953
  2,053
  2,157
  2,266
  2,381
Issuance/(repurchase) of shares, $m
  -354
  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  
  -432
  492
  538
  574
  610
  648
  687
  728
  770
  814
  860
  907
  957
  1,009
  1,063
  1,120
  1,180
  1,242
  1,307
  1,375
  1,446
  1,521
  1,600
  1,682
  1,768
  1,858
  1,953
  2,053
  2,157
  2,266
  2,381
Total cash flow (excl. dividends), $m
  454
  2,343
  2,450
  2,538
  2,631
  2,730
  2,834
  2,944
  3,059
  3,181
  3,310
  3,144
  3,286
  3,436
  3,594
  3,760
  3,934
  4,118
  4,311
  4,514
  4,727
  4,951
  5,187
  5,435
  5,695
  5,968
  6,256
  6,557
  6,874
  7,207
  7,557
Retained Cash Flow (-), $m
  83
  -290
  -318
  -338
  -360
  -382
  -405
  -429
  -454
  -480
  -507
  -535
  -565
  -595
  -627
  -661
  -696
  -732
  -771
  -811
  -853
  -897
  -944
  -992
  -1,043
  -1,096
  -1,152
  -1,211
  -1,272
  -1,337
  -1,404
Prev. year cash balance distribution, $m
 
  62
  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
 
  2,115
  2,132
  2,200
  2,271
  2,348
  2,429
  2,514
  2,605
  2,701
  2,803
  2,608
  2,722
  2,841
  2,967
  3,099
  3,239
  3,385
  3,540
  3,703
  3,874
  4,054
  4,244
  4,443
  4,652
  4,872
  5,104
  5,347
  5,602
  5,871
  6,153
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
 
  1,969
  1,836
  1,738
  1,635
  1,526
  1,413
  1,297
  1,179
  1,062
  945
  746
  651
  561
  476
  399
  328
  266
  211
  164
  126
  94
  69
  49
  34
  23
  15
  10
  6
  4
  2
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

Republic Services, Inc., together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for commercial, industrial, municipal, and residential customers in the United States and Puerto Rico. The company’s collection services include curbside collection of waste; supply of waste containers; and renting of compactors. It is also involved in the processing and sale of old corrugated cardboard, old newspapers, aluminum, glass, and other materials; and provision of landfill services. As of December 31, 2016, the company operated through 333 collection operations, 204 transfer stations, 192 active landfills, 64 recycling centers, and 10 salt water disposal wells, as well as 7 treatment, recovery, and disposal facilities in 39 states and Puerto Rico. It also operates 71 landfill gas and renewable energy projects. The company was founded in 1996 and is headquartered in Phoenix, Arizona.

FINANCIAL RATIOS  of  Republic Services (RSG)

Valuation Ratios
P/E Ratio 35.5
Price to Sales 2.3
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 11.8
Price to Free Cash Flow 23.6
Growth Rates
Sales Growth Rate 3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -1.9%
Cap. Spend. - 3 Yr. Gr. Rate 1%
Financial Strength
Quick Ratio 11
Current Ratio 0
LT Debt to Equity 99.5%
Total Debt to Equity 99.6%
Interest Coverage 4
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 4.1%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.2%
Return On Equity 7.9%
Return On Equity - 3 Yr. Avg. 8.2%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 38.6%
Gross Margin - 3 Yr. Avg. 38%
EBITDA Margin 25.2%
EBITDA Margin - 3 Yr. Avg. 26.1%
Operating Margin 14.3%
Oper. Margin - 3 Yr. Avg. 15.1%
Pre-Tax Margin 10.3%
Pre-Tax Margin - 3 Yr. Avg. 11.2%
Net Profit Margin 6.5%
Net Profit Margin - 3 Yr. Avg. 7%
Effective Tax Rate 36.5%
Eff/ Tax Rate - 3 Yr. Avg. 37.3%
Payout Ratio 68.4%

RSG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RSG stock intrinsic value calculation we used $9388 million for the last fiscal year's total revenue generated by Republic Services. The default revenue input number comes from 2016 income statement of Republic Services. 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 RSG stock valuation model: a) initial revenue growth rate of 3.9% 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 7.4%, whose default value for RSG is calculated based on our internal credit rating of Republic Services, 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 Republic Services.
    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 RSG stock the variable cost ratio is equal to 82.9%.

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 RSG 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 4.3% for Republic Services.

Corporate tax rate of 27% is the nominal tax rate for Republic Services. 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 RSG 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 RSG are equal to 82.9%.

Life of production assets of 17.7 years is the average useful life of capital assets used in Republic Services 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 RSG is equal to -6.3%. 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 - $7691 million for Republic Services - 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 340.193 million for Republic Services 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 Republic Services at the current share price and the inputted number of shares is $21.8 billion.


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COMPANY NEWS

▶ Don Slager Named to 2017 Highest Rated CEOs List   [Jun-22-17 01:24PM  PR Newswire]
▶ EPA: No radioactive contamination in North County homes sampled by agency   [May-19-17 03:15PM  American City Business Journals]
▶ Republic Services, Inc. Cleaned Up in the First Quarter   [Apr-28-17 09:30AM  Motley Fool]
▶ Republic Services tops Street 1Q forecasts   [Apr-27-17 04:58PM  Associated Press]
▶ Republic Services Celebrates Earth Day with #1MorePledge   [Apr-11-17 10:00AM  PR Newswire]
▶ The 4 Best Dividend Stocks in Waste Management   [Mar-29-17 10:13AM  Motley Fool]
▶ Here's Why Clean Energy Fuels Corp. Stock is Up 17% Today   [Mar-01-17 02:47PM  at Motley Fool]
▶ 3 Key Takeaways From Waste Management Inc.'s 2016 Earnings   [Feb-28-17 06:37AM  at Motley Fool]
▶ Republic Services, Inc. Went Over the Top in 2016   [Feb-17-17 09:30AM  at Motley Fool]
▶ 5 Solid Dividend Stocks Poised to Grow in 2017   [Jan-10-17 08:32AM  at Motley Fool]
▶ 3 Strengths of Waste Management, Inc.   [Nov-17-16 12:14PM  at Motley Fool]
▶ This America Recycles Day, Remember: Empty, Clean & Dry   [Nov-15-16 11:43AM  PR Newswire]
▶ 3 Key Takeaways From Republic Services' Q3 Earnings   [Nov-09-16 11:22AM  at Motley Fool]
▶ 3 Takeaways From Stericycle's Q3 Earnings   [Nov-07-16 12:24PM  at Motley Fool]
Stock chart of RSG Financial statements of RSG Annual reports of RSG
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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