Intrinsic value of Stifel Financial - SF

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$45.65

  Intrinsic Value

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  Value-price divergence*

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

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

We calculate the intrinsic value of SF 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 3.1

 

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, %
  11.15
  14.10
  13.19
  12.37
  11.63
  10.97
  10.37
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
  5.81
  5.73
  5.65
  5.59
  5.53
  5.48
  5.43
Revenue, $m
  2,642
  3,015
  3,412
  3,834
  4,280
  4,750
  5,243
  5,758
  6,297
  6,858
  7,443
  8,051
  8,684
  9,341
  10,024
  10,734
  11,472
  12,239
  13,037
  13,867
  14,731
  15,630
  16,567
  17,544
  18,563
  19,626
  20,735
  21,894
  23,104
  24,370
  25,693
Variable operating expenses, $m
 
  2,820
  3,179
  3,561
  3,964
  4,388
  4,833
  5,299
  5,786
  6,293
  6,822
  7,275
  7,847
  8,441
  9,058
  9,699
  10,366
  11,059
  11,780
  12,530
  13,310
  14,123
  14,970
  15,853
  16,773
  17,733
  18,736
  19,783
  20,877
  22,020
  23,215
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
  2,500
  2,820
  3,179
  3,561
  3,964
  4,388
  4,833
  5,299
  5,786
  6,293
  6,822
  7,275
  7,847
  8,441
  9,058
  9,699
  10,366
  11,059
  11,780
  12,530
  13,310
  14,123
  14,970
  15,853
  16,773
  17,733
  18,736
  19,783
  20,877
  22,020
  23,215
Operating income, $m
  143
  194
  233
  273
  316
  362
  409
  459
  511
  565
  621
  776
  837
  901
  966
  1,035
  1,106
  1,180
  1,257
  1,337
  1,420
  1,507
  1,597
  1,691
  1,790
  1,892
  1,999
  2,111
  2,228
  2,350
  2,477
EBITDA, $m
  200
  301
  341
  383
  427
  474
  523
  575
  629
  685
  743
  804
  867
  933
  1,001
  1,072
  1,145
  1,222
  1,301
  1,384
  1,471
  1,560
  1,654
  1,751
  1,853
  1,959
  2,070
  2,186
  2,307
  2,433
  2,565
Interest expense (income), $m
  62
  50
  131
  218
  311
  409
  513
  621
  735
  853
  977
  1,105
  1,239
  1,378
  1,523
  1,673
  1,829
  1,991
  2,160
  2,336
  2,518
  2,708
  2,906
  3,112
  3,327
  3,551
  3,785
  4,029
  4,284
  4,550
  4,829
Earnings before tax, $m
  143
  144
  102
  55
  5
  -48
  -103
  -162
  -224
  -288
  -355
  -329
  -402
  -477
  -556
  -638
  -723
  -811
  -903
  -999
  -1,098
  -1,201
  -1,309
  -1,421
  -1,537
  -1,659
  -1,786
  -1,918
  -2,056
  -2,201
  -2,351
Tax expense, $m
  61
  39
  27
  15
  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
Net income, $m
  82
  105
  74
  40
  4
  -48
  -103
  -162
  -224
  -288
  -355
  -329
  -402
  -477
  -556
  -638
  -723
  -811
  -903
  -999
  -1,098
  -1,201
  -1,309
  -1,421
  -1,537
  -1,659
  -1,786
  -1,918
  -2,056
  -2,201
  -2,351

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  986
  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
  19,129
  20,647
  23,371
  26,262
  29,317
  32,534
  35,908
  39,440
  43,129
  46,975
  50,980
  55,146
  59,479
  63,981
  68,660
  73,523
  78,576
  83,830
  89,294
  94,978
  100,894
  107,055
  113,474
  120,165
  127,142
  134,422
  142,021
  149,958
  158,249
  166,915
  175,976
Adjusted assets (=assets-cash), $m
  18,143
  20,647
  23,371
  26,262
  29,317
  32,534
  35,908
  39,440
  43,129
  46,975
  50,980
  55,146
  59,479
  63,981
  68,660
  73,523
  78,576
  83,830
  89,294
  94,978
  100,894
  107,055
  113,474
  120,165
  127,142
  134,422
  142,021
  149,958
  158,249
  166,915
  175,976
Revenue / Adjusted assets
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
Average production assets, $m
  267
  202
  229
  257
  287
  318
  351
  386
  422
  460
  499
  539
  582
  626
  672
  719
  769
  820
  873
  929
  987
  1,047
  1,110
  1,175
  1,244
  1,315
  1,389
  1,467
  1,548
  1,633
  1,721
Working capital, $m
  0
  -389
  -440
  -495
  -552
  -613
  -676
  -743
  -812
  -885
  -960
  -1,039
  -1,120
  -1,205
  -1,293
  -1,385
  -1,480
  -1,579
  -1,682
  -1,789
  -1,900
  -2,016
  -2,137
  -2,263
  -2,395
  -2,532
  -2,675
  -2,824
  -2,980
  -3,144
  -3,314
Total debt, $m
  2,009
  3,540
  5,904
  8,413
  11,065
  13,857
  16,787
  19,852
  23,054
  26,392
  29,869
  33,485
  37,245
  41,154
  45,215
  49,436
  53,822
  58,382
  63,125
  68,059
  73,194
  78,542
  84,114
  89,921
  95,977
  102,296
  108,893
  115,781
  122,978
  130,500
  138,365
Total liabilities, $m
  16,391
  17,922
  20,286
  22,795
  25,447
  28,239
  31,169
  34,234
  37,436
  40,774
  44,251
  47,867
  51,627
  55,536
  59,597
  63,818
  68,204
  72,764
  77,507
  82,441
  87,576
  92,924
  98,496
  104,303
  110,359
  116,678
  123,275
  130,163
  137,360
  144,882
  152,747
Total equity, $m
  2,738
  2,725
  3,085
  3,467
  3,870
  4,294
  4,740
  5,206
  5,693
  6,201
  6,729
  7,279
  7,851
  8,446
  9,063
  9,705
  10,372
  11,066
  11,787
  12,537
  13,318
  14,131
  14,979
  15,862
  16,783
  17,744
  18,747
  19,794
  20,889
  22,033
  23,229
Total liabilities and equity, $m
  19,129
  20,647
  23,371
  26,262
  29,317
  32,533
  35,909
  39,440
  43,129
  46,975
  50,980
  55,146
  59,478
  63,982
  68,660
  73,523
  78,576
  83,830
  89,294
  94,978
  100,894
  107,055
  113,475
  120,165
  127,142
  134,422
  142,022
  149,957
  158,249
  166,915
  175,976
Debt-to-equity ratio
  0.734
  1.300
  1.910
  2.430
  2.860
  3.230
  3.540
  3.810
  4.050
  4.260
  4.440
  4.600
  4.740
  4.870
  4.990
  5.090
  5.190
  5.280
  5.360
  5.430
  5.500
  5.560
  5.620
  5.670
  5.720
  5.770
  5.810
  5.850
  5.890
  5.920
  5.960
Adjusted equity ratio
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132
  0.132

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  82
  105
  74
  40
  4
  -48
  -103
  -162
  -224
  -288
  -355
  -329
  -402
  -477
  -556
  -638
  -723
  -811
  -903
  -999
  -1,098
  -1,201
  -1,309
  -1,421
  -1,537
  -1,659
  -1,786
  -1,918
  -2,056
  -2,201
  -2,351
Depreciation, amort., depletion, $m
  57
  107
  108
  109
  111
  112
  114
  116
  118
  120
  122
  28
  30
  32
  34
  37
  39
  42
  45
  47
  50
  53
  57
  60
  63
  67
  71
  75
  79
  83
  88
Funds from operations, $m
  -1,381
  212
  182
  149
  115
  65
  11
  -46
  -106
  -168
  -233
  -301
  -372
  -446
  -522
  -601
  -684
  -770
  -859
  -951
  -1,048
  -1,148
  -1,252
  -1,361
  -1,474
  -1,592
  -1,715
  -1,843
  -1,977
  -2,117
  -2,264
Change in working capital, $m
  -1,032
  -48
  -51
  -54
  -58
  -61
  -64
  -67
  -69
  -72
  -75
  -78
  -82
  -85
  -88
  -92
  -95
  -99
  -103
  -107
  -111
  -116
  -121
  -126
  -131
  -137
  -143
  -149
  -156
  -163
  -171
Cash from operations, $m
  -349
  373
  233
  204
  172
  125
  74
  20
  -36
  -96
  -158
  -223
  -290
  -361
  -434
  -510
  -589
  -671
  -756
  -844
  -936
  -1,032
  -1,131
  -1,235
  -1,343
  -1,455
  -1,572
  -1,694
  -1,821
  -1,954
  -2,093
Maintenance CAPEX, $m
  0
  -9
  -10
  -12
  -13
  -15
  -16
  -18
  -20
  -22
  -23
  -25
  -28
  -30
  -32
  -34
  -37
  -39
  -42
  -45
  -47
  -50
  -53
  -57
  -60
  -63
  -67
  -71
  -75
  -79
  -83
New CAPEX, $m
  -28
  -26
  -27
  -28
  -30
  -31
  -33
  -35
  -36
  -38
  -39
  -41
  -42
  -44
  -46
  -48
  -49
  -51
  -53
  -56
  -58
  -60
  -63
  -65
  -68
  -71
  -74
  -78
  -81
  -85
  -89
Cash from investing activities, $m
  -5,255
  -35
  -37
  -40
  -43
  -46
  -49
  -53
  -56
  -60
  -62
  -66
  -70
  -74
  -78
  -82
  -86
  -90
  -95
  -101
  -105
  -110
  -116
  -122
  -128
  -134
  -141
  -149
  -156
  -164
  -172
Free cash flow, $m
  -5,604
  338
  197
  164
  129
  79
  25
  -32
  -92
  -155
  -221
  -289
  -360
  -434
  -512
  -592
  -675
  -761
  -851
  -944
  -1,041
  -1,142
  -1,247
  -1,357
  -1,471
  -1,589
  -1,713
  -1,842
  -1,977
  -2,118
  -2,265
Issuance/(repayment) of debt, $m
  692
  2,177
  2,364
  2,510
  2,652
  2,792
  2,929
  3,066
  3,202
  3,338
  3,476
  3,617
  3,760
  3,908
  4,061
  4,221
  4,387
  4,560
  4,743
  4,934
  5,135
  5,348
  5,571
  5,807
  6,056
  6,319
  6,596
  6,889
  7,197
  7,522
  7,865
Issuance/(repurchase) of shares, $m
  32
  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  
  5,722
  2,177
  2,364
  2,510
  2,652
  2,792
  2,929
  3,066
  3,202
  3,338
  3,476
  3,617
  3,760
  3,908
  4,061
  4,221
  4,387
  4,560
  4,743
  4,934
  5,135
  5,348
  5,571
  5,807
  6,056
  6,319
  6,596
  6,889
  7,197
  7,522
  7,865
Total cash flow (excl. dividends), $m
  106
  2,515
  2,560
  2,674
  2,781
  2,871
  2,954
  3,034
  3,110
  3,183
  3,256
  3,327
  3,400
  3,474
  3,550
  3,629
  3,712
  3,799
  3,891
  3,990
  4,094
  4,205
  4,324
  4,451
  4,586
  4,730
  4,883
  5,046
  5,220
  5,404
  5,600
Retained Cash Flow (-), $m
  -246
  -327
  -359
  -382
  -403
  -425
  -445
  -466
  -487
  -508
  -529
  -550
  -572
  -594
  -618
  -642
  -667
  -694
  -721
  -750
  -781
  -813
  -847
  -883
  -921
  -961
  -1,003
  -1,048
  -1,094
  -1,144
  -1,196
Prev. year cash balance distribution, $m
 
  340
  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
 
  2,527
  2,201
  2,292
  2,378
  2,446
  2,509
  2,567
  2,623
  2,676
  2,727
  2,778
  2,828
  2,879
  2,932
  2,987
  3,045
  3,106
  3,170
  3,239
  3,313
  3,392
  3,477
  3,567
  3,665
  3,769
  3,880
  3,999
  4,125
  4,260
  4,404
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
 
  2,423
  2,015
  1,995
  1,958
  1,896
  1,821
  1,734
  1,639
  1,537
  1,430
  1,319
  1,207
  1,095
  984
  877
  774
  676
  584
  499
  421
  351
  288
  234
  187
  147
  113
  86
  64
  47
  33
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

Stifel Financial Corp., a financial holding company, provides retail and institutional wealth management, and investment banking services in the United States, the United Kingdom, and Europe. The company’s Global Wealth Management segment offers securities transaction, brokerage, and investment services; financial planning services; equity securities; fixed income securities, including municipal, corporate, and government agency securities; preferred stock; unit investment trusts; fee-based products; insurance and annuity products; securities-based lending services; and asset management services. It also offers retail and commercial banking services, such as personal loan programs, such as mortgage loans, home equity lines of credit, loans secured by certificates of deposit or savings, and securities-based loans; and commercial lending comprising small business loans, commercial real estate loans, lines of credit, credit cards, term loans, and inventory and receivables financing, as well as other banking products. As of December 31, 2016, this segment had a network of 2,159 financial advisors located in 360 branch offices in 45 states and the District of Columbia; and 123 independent contractors. Its Institutional Group segment publishes research across various industry groups; distributes equity research products, executes equity trades, and sells the securities of companies for which the company acts as an underwriter; and provides financial advisory services with respect to mergers and acquisitions, and the execution of public offerings and private placements of debt and equity securities. This segment also coordinates marketing, distribution, pricing, and stabilization of the company’s managed equity and debt offerings; and acts as an underwriter and dealer in bonds issued by states, cities, and other political subdivisions. Stifel Financial Corp. was founded in 1890 and is headquartered in St. Louis, Missouri.

FINANCIAL RATIOS  of  Stifel Financial (SF)

Valuation Ratios
P/E Ratio 37.1
Price to Sales 1.2
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow -8.7
Price to Free Cash Flow -8.1
Growth Rates
Sales Growth Rate 11.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -60%
Cap. Spend. - 3 Yr. Gr. Rate -2.6%
Financial Strength
Quick Ratio 2
Current Ratio NaN
LT Debt to Equity 49.8%
Total Debt to Equity 73.4%
Interest Coverage 3
Management Effectiveness
Return On Assets 0.7%
Ret/ On Assets - 3 Yr. Avg. 1.3%
Return On Total Capital 1.9%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 3.1%
Return On Equity - 3 Yr. Avg. 5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 95.8%
Gross Margin - 3 Yr. Avg. 96.2%
EBITDA Margin 9.9%
EBITDA Margin - 3 Yr. Avg. 12.1%
Operating Margin 5.4%
Oper. Margin - 3 Yr. Avg. 8.1%
Pre-Tax Margin 5.4%
Pre-Tax Margin - 3 Yr. Avg. 8.1%
Net Profit Margin 3.1%
Net Profit Margin - 3 Yr. Avg. 4.9%
Effective Tax Rate 42.7%
Eff/ Tax Rate - 3 Yr. Avg. 38.8%
Payout Ratio 4.9%

SF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SF stock intrinsic value calculation we used $2642 million for the last fiscal year's total revenue generated by Stifel Financial. The default revenue input number comes from 2016 income statement of Stifel Financial. 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 SF stock valuation model: a) initial revenue growth rate of 14.1% 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 SF is calculated based on our internal credit rating of Stifel Financial, 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 Stifel Financial.
    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 SF stock the variable cost ratio is equal to 94%.

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 SF 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 3.7% for Stifel Financial.

Corporate tax rate of 27% is the nominal tax rate for Stifel Financial. 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 SF 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 SF are equal to 6.7%.

Life of production assets of 19.6 years is the average useful life of capital assets used in Stifel Financial 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 SF is equal to -12.9%. 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 - $2738 million for Stifel Financial - 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 67.526 million for Stifel Financial 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 Stifel Financial at the current share price and the inputted number of shares is $3.1 billion.


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COMPANY NEWS

▶ Stifel Strategist Questions Amazon-Whole Foods Deal   [Jun-16-17 12:31PM  Bloomberg Video]
▶ KBW Announces Index Rebalancing for Second-Quarter 2017   [Jun-09-17 09:00PM  Business Wire]
▶ [$$] Secondary Market Buyer Listings (M-Z)   [Jun-05-17 09:43AM  The Wall Street Journal]
▶ Stifel Declares Preferred Stock Cash Dividend   [May-23-17 06:00AM  Marketwired]
▶ Stifel posts 1Q profit   [May-01-17 04:44PM  Associated Press]
▶ Stifel Appoints David A. Peacock to Board of Directors   [Apr-21-17 05:00PM  Marketwired]
▶ KBW Announces 2016 Bank Honor Roll Award Winners   [Apr-18-17 09:00AM  Business Wire]
▶ KBW Announces Index Rebalancing for First-Quarter 2017   [Mar-10-17 09:00PM  Business Wire]
▶ Clearwater bank takes aim at millennials with $175M deal   [Mar-08-17 12:27PM  at bizjournals.com]
▶ Stifel Declares Preferred Stock Cash Dividend   [Feb-21-17 07:00AM  Marketwired]
▶ KBW Announces Index Rebalancing for Fourth-Quarter 2016   [Dec-09-16 09:00PM  Business Wire]
▶ [$$] Stifel to Pay $25 Million in CDO Settlement   [02:21PM  at The Wall Street Journal]
▶ Stifel Declares Preferred Stock Cash Dividend   [Nov-22-16 05:00PM  Marketwired]
▶ Even after ex-employee's arrest, Booz Allen stock is booming   [Nov-18-16 02:00PM  at bizjournals.com]
▶ Forecasting Team Trump on issues important to women   [12:05PM  at bizjournals.com]
▶ Stifel Financial OKs Commissioned IRAs   [Nov-04-16 12:01AM  at Barrons.com]
Stock chart of SF Financial statements of SF Annual reports of SF
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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