Intrinsic value of Rayonier - RYN

Previous Close

$28.22

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$28.22

 
Intrinsic value

$471.15

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying
Our model is not good at valuating stocks of financial companies, such as RYN.

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

We calculate the intrinsic value of RYN 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 3.6

 

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, %
  44.59
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  788
  1,261
  1,948
  2,913
  4,227
  5,963
  8,198
  11,005
  14,450
  18,593
  23,485
  29,163
  35,654
  42,975
  51,132
  60,122
  69,937
  80,561
  91,979
  104,171
  117,119
  130,806
  145,219
  160,345
  176,178
  192,717
  209,962
  227,921
  246,606
  266,035
  286,229
Variable operating expenses, $m
 
  343
  530
  792
  1,150
  1,622
  2,230
  2,993
  3,930
  5,057
  6,388
  7,932
  9,698
  11,689
  13,908
  16,353
  19,023
  21,913
  25,018
  28,334
  31,856
  35,579
  39,499
  43,614
  47,921
  52,419
  57,110
  61,994
  67,077
  72,362
  77,854
Fixed operating expenses, $m
 
  335
  344
  352
  361
  370
  379
  389
  398
  408
  419
  429
  440
  451
  462
  474
  485
  498
  510
  523
  536
  549
  563
  577
  591
  606
  621
  637
  653
  669
  686
Total operating expenses, $m
  533
  678
  874
  1,144
  1,511
  1,992
  2,609
  3,382
  4,328
  5,465
  6,807
  8,361
  10,138
  12,140
  14,370
  16,827
  19,508
  22,411
  25,528
  28,857
  32,392
  36,128
  40,062
  44,191
  48,512
  53,025
  57,731
  62,631
  67,730
  73,031
  78,540
Operating income, $m
  256
  583
  1,075
  1,769
  2,716
  3,971
  5,589
  7,623
  10,121
  13,128
  16,678
  20,801
  25,517
  30,835
  36,762
  43,296
  50,429
  58,151
  66,451
  75,314
  84,727
  94,678
  105,156
  116,154
  127,666
  139,691
  152,231
  165,289
  178,877
  193,004
  207,689
EBITDA, $m
  371
  586
  1,080
  1,776
  2,727
  3,987
  5,610
  7,651
  10,159
  13,176
  16,739
  20,877
  25,609
  30,947
  36,895
  43,452
  50,610
  58,361
  66,690
  75,584
  85,031
  95,018
  105,534
  116,571
  128,124
  140,192
  152,777
  165,882
  179,518
  193,696
  208,433
Interest expense (income), $m
  36
  39
  68
  109
  167
  245
  349
  483
  652
  858
  1,107
  1,400
  1,740
  2,129
  2,568
  3,057
  3,596
  4,184
  4,821
  5,506
  6,237
  7,013
  7,833
  8,697
  9,604
  10,553
  11,545
  12,579
  13,655
  14,775
  15,940
Earnings before tax, $m
  223
  544
  1,007
  1,660
  2,550
  3,726
  5,240
  7,139
  9,469
  12,269
  15,572
  19,402
  23,776
  28,706
  34,194
  40,238
  46,832
  53,967
  61,629
  69,808
  78,490
  87,665
  97,323
  107,457
  118,062
  129,138
  140,686
  152,711
  165,221
  178,229
  191,749
Tax expense, $m
  5
  147
  272
  448
  688
  1,006
  1,415
  1,928
  2,557
  3,313
  4,204
  5,238
  6,420
  7,751
  9,232
  10,864
  12,645
  14,571
  16,640
  18,848
  21,192
  23,670
  26,277
  29,013
  31,877
  34,867
  37,985
  41,232
  44,610
  48,122
  51,772
Net income, $m
  212
  397
  735
  1,212
  1,861
  2,720
  3,825
  5,212
  6,913
  8,957
  11,367
  14,163
  17,357
  20,955
  24,962
  29,374
  34,188
  39,396
  44,989
  50,960
  57,298
  63,995
  71,046
  78,443
  86,185
  94,271
  102,701
  111,479
  120,612
  130,107
  139,976

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  86
  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
  2,686
  4,161
  6,429
  9,614
  13,950
  19,681
  27,057
  36,319
  47,689
  61,364
  77,508
  96,247
  117,671
  141,833
  168,753
  198,424
  230,815
  265,879
  303,561
  343,798
  386,531
  431,704
  479,269
  529,191
  581,447
  636,028
  692,943
  752,214
  813,883
  878,004
  944,649
Adjusted assets (=assets-cash), $m
  2,600
  4,161
  6,429
  9,614
  13,950
  19,681
  27,057
  36,319
  47,689
  61,364
  77,508
  96,247
  117,671
  141,833
  168,753
  198,424
  230,815
  265,879
  303,561
  343,798
  386,531
  431,704
  479,269
  529,191
  581,447
  636,028
  692,943
  752,214
  813,883
  878,004
  944,649
Revenue / Adjusted assets
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
Average production assets, $m
  11
  16
  25
  38
  55
  78
  107
  143
  188
  242
  305
  379
  464
  559
  665
  782
  909
  1,047
  1,196
  1,354
  1,523
  1,700
  1,888
  2,084
  2,290
  2,505
  2,730
  2,963
  3,206
  3,458
  3,721
Working capital, $m
  73
  30
  47
  70
  101
  143
  197
  264
  347
  446
  564
  700
  856
  1,031
  1,227
  1,443
  1,678
  1,933
  2,207
  2,500
  2,811
  3,139
  3,485
  3,848
  4,228
  4,625
  5,039
  5,470
  5,919
  6,385
  6,869
Total debt, $m
  1,062
  1,777
  2,861
  4,384
  6,456
  9,196
  12,721
  17,148
  22,583
  29,120
  36,837
  45,794
  56,035
  67,584
  80,452
  94,635
  110,117
  126,878
  144,890
  164,124
  184,550
  206,143
  228,879
  252,741
  277,720
  303,809
  331,015
  359,346
  388,824
  419,474
  451,330
Total liabilities, $m
  1,274
  1,989
  3,073
  4,596
  6,668
  9,408
  12,933
  17,360
  22,795
  29,332
  37,049
  46,006
  56,247
  67,796
  80,664
  94,847
  110,329
  127,090
  145,102
  164,336
  184,762
  206,355
  229,091
  252,953
  277,932
  304,021
  331,227
  359,558
  389,036
  419,686
  451,542
Total equity, $m
  1,412
  2,172
  3,356
  5,019
  7,282
  10,274
  14,124
  18,958
  24,894
  32,032
  40,459
  50,241
  61,424
  74,037
  88,089
  103,577
  120,485
  138,789
  158,459
  179,463
  201,769
  225,350
  250,179
  276,238
  303,515
  332,007
  361,716
  392,656
  424,847
  458,318
  493,107
Total liabilities and equity, $m
  2,686
  4,161
  6,429
  9,615
  13,950
  19,682
  27,057
  36,318
  47,689
  61,364
  77,508
  96,247
  117,671
  141,833
  168,753
  198,424
  230,814
  265,879
  303,561
  343,799
  386,531
  431,705
  479,270
  529,191
  581,447
  636,028
  692,943
  752,214
  813,883
  878,004
  944,649
Debt-to-equity ratio
  0.752
  0.820
  0.850
  0.870
  0.890
  0.900
  0.900
  0.900
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.910
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
Adjusted equity ratio
  0.510
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522
  0.522

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  212
  397
  735
  1,212
  1,861
  2,720
  3,825
  5,212
  6,913
  8,957
  11,367
  14,163
  17,357
  20,955
  24,962
  29,374
  34,188
  39,396
  44,989
  50,960
  57,298
  63,995
  71,046
  78,443
  86,185
  94,271
  102,701
  111,479
  120,612
  130,107
  139,976
Depreciation, amort., depletion, $m
  115
  3
  5
  8
  11
  16
  21
  29
  38
  48
  61
  76
  93
  112
  133
  156
  182
  209
  239
  271
  305
  340
  378
  417
  458
  501
  546
  593
  641
  692
  744
Funds from operations, $m
  194
  400
  740
  1,219
  1,872
  2,736
  3,846
  5,240
  6,950
  9,005
  11,428
  14,239
  17,449
  21,067
  25,095
  29,530
  34,370
  39,605
  45,228
  51,231
  57,602
  64,335
  71,423
  78,860
  86,643
  94,772
  103,247
  112,072
  121,253
  130,799
  140,721
Change in working capital, $m
  -10
  11
  16
  23
  32
  42
  54
  67
  83
  99
  117
  136
  156
  176
  196
  216
  236
  255
  274
  293
  311
  328
  346
  363
  380
  397
  414
  431
  448
  466
  485
Cash from operations, $m
  204
  392
  724
  1,196
  1,841
  2,694
  3,793
  5,173
  6,867
  8,906
  11,311
  14,103
  17,294
  20,891
  24,899
  29,315
  34,134
  39,350
  44,954
  50,938
  57,292
  64,007
  71,077
  78,497
  86,263
  94,375
  102,833
  111,641
  120,804
  130,333
  140,236
Maintenance CAPEX, $m
  0
  -2
  -3
  -5
  -8
  -11
  -16
  -21
  -29
  -38
  -48
  -61
  -76
  -93
  -112
  -133
  -156
  -182
  -209
  -239
  -271
  -305
  -340
  -378
  -417
  -458
  -501
  -546
  -593
  -641
  -692
New CAPEX, $m
  -432
  -6
  -9
  -13
  -17
  -23
  -29
  -36
  -45
  -54
  -64
  -74
  -84
  -95
  -106
  -117
  -128
  -138
  -148
  -158
  -168
  -178
  -187
  -197
  -206
  -215
  -224
  -233
  -243
  -253
  -263
Cash from investing activities, $m
  -283
  -8
  -12
  -18
  -25
  -34
  -45
  -57
  -74
  -92
  -112
  -135
  -160
  -188
  -218
  -250
  -284
  -320
  -357
  -397
  -439
  -483
  -527
  -575
  -623
  -673
  -725
  -779
  -836
  -894
  -955
Free cash flow, $m
  -79
  384
  711
  1,179
  1,816
  2,660
  3,748
  5,115
  6,794
  8,814
  11,199
  13,968
  17,133
  20,704
  24,681
  29,065
  33,850
  39,030
  44,597
  50,540
  56,852
  63,525
  70,550
  77,923
  85,641
  93,702
  102,107
  110,861
  119,969
  129,439
  139,282
Issuance/(repayment) of debt, $m
  238
  747
  1,084
  1,523
  2,072
  2,740
  3,526
  4,427
  5,435
  6,537
  7,717
  8,957
  10,241
  11,549
  12,868
  14,183
  15,483
  16,761
  18,012
  19,234
  20,426
  21,593
  22,736
  23,863
  24,978
  26,090
  27,205
  28,332
  29,477
  30,650
  31,857
Issuance/(repurchase) of shares, $m
  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
Cash from financing (excl. dividends), $m  
  237
  747
  1,084
  1,523
  2,072
  2,740
  3,526
  4,427
  5,435
  6,537
  7,717
  8,957
  10,241
  11,549
  12,868
  14,183
  15,483
  16,761
  18,012
  19,234
  20,426
  21,593
  22,736
  23,863
  24,978
  26,090
  27,205
  28,332
  29,477
  30,650
  31,857
Total cash flow (excl. dividends), $m
  157
  1,131
  1,795
  2,701
  3,888
  5,400
  7,274
  9,542
  12,229
  15,351
  18,916
  22,925
  27,374
  32,253
  37,549
  43,247
  49,333
  55,791
  62,608
  69,774
  77,279
  85,117
  93,286
  101,786
  110,619
  119,792
  129,313
  139,193
  149,446
  160,089
  171,138
Retained Cash Flow (-), $m
  -124
  -814
  -1,184
  -1,663
  -2,263
  -2,992
  -3,850
  -4,834
  -5,935
  -7,138
  -8,427
  -9,782
  -11,183
  -12,613
  -14,052
  -15,488
  -16,908
  -18,304
  -19,670
  -21,004
  -22,307
  -23,580
  -24,829
  -26,059
  -27,277
  -28,491
  -29,709
  -30,940
  -32,191
  -33,471
  -34,789
Prev. year cash balance distribution, $m
 
  54
  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
 
  371
  612
  1,038
  1,625
  2,408
  3,424
  4,708
  6,294
  8,212
  10,489
  13,143
  16,191
  19,640
  23,497
  27,759
  32,425
  37,487
  42,939
  48,770
  54,972
  61,537
  68,457
  75,726
  83,342
  91,300
  99,603
  108,253
  117,255
  126,618
  136,349
Discount rate, %
 
  7.00
  7.35
  7.72
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.86
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.70
  24.89
  26.13
  27.44
  28.81
PV of cash for distribution, $m
 
  347
  531
  831
  1,190
  1,601
  2,049
  2,513
  2,968
  3,387
  3,741
  4,007
  4,168
  4,213
  4,142
  3,962
  3,688
  3,342
  2,949
  2,532
  2,116
  1,720
  1,359
  1,043
  778
  563
  395
  268
  176
  112
  69
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

Rayonier Inc. operates as an investment arm of Rayonier TRS Operating Company. Rayonier, Inc. engages in the sale and development of real estate and timberland management, as well as in the production and sale of cellulose fibers in the United States, New Zealand, and Australia. The company operates in four segments: Timber, Real Estate, Performance Fibers, and Wood Products. Timber segment owns, leases, or manages timberlands and sells standing timber at auction to third parties, as well as sells delivered logs. Real Estate segment sells medium and large tracts of land with infrastructure. This segment holds development and rural properties primarily in the southeast United States. Performance Fibers segment manufactures cellulose specialties that are used principally in acetate textile fibers, cigarette filters, rigid packaging, LCD screens, photographic film, impact-resistant plastics, high-tenacity rayon yarn, pharmaceuticals, cosmetics, detergents, food casings, and food products; and absorbent materials that are used in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and nonwoven fabrics. Wood Products segment primarily manufactures and sells dimension lumber used for residential and industrial construction applications. In addition, Rayonier involves in trading and exporting logs, lumber, and wood panel products. As of December 31, 2005, it owned, leased, or managed approximately 2.5 million acres of timberland and real estate. The company has a joint venture with RREEF Infrastructure to own and manage timber lands in New Zealand. Rayonier has elected to be treated as a real estate investment trust (REIT) for federal income tax purposes and would not be subject to federal income tax on its REIT income that it distributes to its shareholders. The company, formerly known as Rainier Pulp & Paper Company, was founded in 1926. Rayonier is headquartered in Jacksonville, Florida.

FINANCIAL RATIOS  of  Rayonier (RYN)

Valuation Ratios
P/E Ratio 16.4
Price to Sales 4.4
Price to Book 2.5
Price to Tangible Book
Price to Cash Flow 17
Price to Free Cash Flow -15.2
Growth Rates
Sales Growth Rate 44.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 176.9%
Cap. Spend. - 3 Yr. Gr. Rate 5.5%
Financial Strength
Quick Ratio 3
Current Ratio 0.3
LT Debt to Equity 72.9%
Total Debt to Equity 75.2%
Interest Coverage 7
Management Effectiveness
Return On Assets 9.9%
Ret/ On Assets - 3 Yr. Avg. 6.1%
Return On Total Capital 9.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5%
Return On Equity 15.7%
Return On Equity - 3 Yr. Avg. 8.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 33.5%
Gross Margin - 3 Yr. Avg. 24.2%
EBITDA Margin 47.5%
EBITDA Margin - 3 Yr. Avg. 39.2%
Operating Margin 32.4%
Oper. Margin - 3 Yr. Avg. 21%
Pre-Tax Margin 28.3%
Pre-Tax Margin - 3 Yr. Avg. 14.5%
Net Profit Margin 26.9%
Net Profit Margin - 3 Yr. Avg. 17.2%
Effective Tax Rate 2.2%
Eff/ Tax Rate - 3 Yr. Avg. -6.7%
Payout Ratio 58%

RYN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RYN stock intrinsic value calculation we used $788 million for the last fiscal year's total revenue generated by Rayonier. The default revenue input number comes from 2016 income statement of Rayonier. 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 RYN stock valuation model: a) initial revenue growth rate of 60% 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%, whose default value for RYN is calculated based on our internal credit rating of Rayonier, 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 Rayonier.
    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 RYN stock the variable cost ratio is equal to 27.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $327 million in the base year in the intrinsic value calculation for RYN 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 3.8% for Rayonier.

Corporate tax rate of 27% is the nominal tax rate for Rayonier. 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 RYN 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 RYN are equal to 1.3%.

Life of production assets of 0.1 years is the average useful life of capital assets used in Rayonier 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 RYN is equal to 2.4%. 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 - $1412 million for Rayonier - 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 129.146 million for Rayonier 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 Rayonier at the current share price and the inputted number of shares is $3.6 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
POPE Pope Resources 71.00 3.43  str.sell
PCH Potlatch REIT 45.05 23.88  sell
WY Weyerhaeuser 33.87 13.97  str.sell
PW Power REIT 6.95 1.54  str.sell
AMT American Tower 125.94 44.11  str.sell
CTT CatchMark Timb 11.71 1.79  str.sell
JOE St. Joe 17.50 2.23  str.sell

COMPANY NEWS

▶ Trump moves to impose tariff on Canadian lumber   [Apr-25-17 10:51AM  Yahoo Finance Video]
▶ Rayonier CEO to Present at Upcoming Investor Conferences   [Feb-27-17 09:06AM  Business Wire]
▶ Rayonier Announces First Quarter 2017 Dividend   [Feb-24-17 04:17PM  Business Wire]
▶ Rayonier Reports Fourth Quarter 2016 Results   [04:15PM  Business Wire]
▶ Rayonier Announces Tax Treatment of 2016 Dividends   [Jan-20-17 04:00PM  Business Wire]
▶ Hedge Funds Are Buying American National Insurance Company (ANAT)   [Dec-09-16 06:21AM  at Insider Monkey]
▶ Hedge Funds Are Selling Outfront Media Inc (OUT)   [Dec-08-16 08:32AM  at Insider Monkey]
▶ How Eldorado Gold Corp (USA) (EGO) Stacks Up Against Its Peers   [Nov-28-16 02:54PM  at Insider Monkey]
▶ Rayonier Reports Third Quarter 2016 Results   [05:12PM  Business Wire]
▶ Rayonier Advanced Earnings Preview (RYAM)   [06:00AM  at Investopedia]
▶ Highlights From Third Avenues Investor Letters   [Oct-29-16 02:21PM  at Insider Monkey]
▶ Rayonier to Webcast Investor Day on November 9th   [Oct-26-16 04:11PM  Business Wire]
▶ Rayonier Announces Fourth Quarter 2016 Dividend   [Oct-21-16 08:53AM  Business Wire]
▶ Rayonier Reports Second Quarter 2016 Results   [04:15PM  Business Wire]
▶ Rayonier Announces Third Quarter 2016 Dividend   [Jul-22-16 08:50AM  Business Wire]
▶ Rayonier Stock Trades Ex-Dividend Tuesday (RYN)   [Jun-14-16 08:21AM  at Investopedia]
Stock chart of RYN Financial statements of RYN
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.