Intrinsic value of Scientific Games - SGMS

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$26.35

  Intrinsic Value

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  Value-price divergence*

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

We calculate the intrinsic value of SGMS 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 2.3

 

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, %
  4.49
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
Revenue, $m
  2,883
  2,955
  3,158
  3,370
  3,590
  3,819
  4,058
  4,306
  4,564
  4,834
  5,115
  5,408
  5,714
  6,034
  6,367
  6,716
  7,081
  7,463
  7,862
  8,280
  8,717
  9,176
  9,655
  10,158
  10,685
  11,237
  11,816
  12,423
  13,059
  13,726
  14,426
Variable operating expenses, $m
 
  3,241
  3,443
  3,654
  3,873
  4,101
  4,338
  4,585
  4,842
  5,110
  5,389
  5,380
  5,684
  6,002
  6,334
  6,681
  7,044
  7,424
  7,821
  8,237
  8,672
  9,127
  9,605
  10,105
  10,629
  11,178
  11,754
  12,358
  12,991
  13,654
  14,351
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
  2,728
  3,241
  3,443
  3,654
  3,873
  4,101
  4,338
  4,585
  4,842
  5,110
  5,389
  5,380
  5,684
  6,002
  6,334
  6,681
  7,044
  7,424
  7,821
  8,237
  8,672
  9,127
  9,605
  10,105
  10,629
  11,178
  11,754
  12,358
  12,991
  13,654
  14,351
Operating income, $m
  156
  -286
  -285
  -284
  -283
  -281
  -280
  -279
  -277
  -276
  -275
  28
  30
  32
  33
  35
  37
  39
  41
  43
  46
  48
  51
  53
  56
  59
  62
  65
  68
  72
  76
EBITDA, $m
  895
  494
  528
  563
  600
  638
  678
  720
  763
  808
  855
  904
  955
  1,008
  1,064
  1,123
  1,184
  1,247
  1,314
  1,384
  1,457
  1,534
  1,614
  1,698
  1,786
  1,878
  1,975
  2,076
  2,183
  2,294
  2,411
Interest expense (income), $m
  622
  587
  454
  490
  528
  567
  608
  651
  695
  741
  789
  840
  892
  946
  1,004
  1,063
  1,125
  1,191
  1,259
  1,330
  1,405
  1,483
  1,564
  1,650
  1,740
  1,834
  1,932
  2,036
  2,144
  2,258
  2,377
Earnings before tax, $m
  -479
  -873
  -739
  -774
  -811
  -849
  -888
  -930
  -973
  -1,017
  -1,064
  -811
  -862
  -915
  -970
  -1,028
  -1,088
  -1,151
  -1,217
  -1,287
  -1,359
  -1,435
  -1,514
  -1,597
  -1,684
  -1,775
  -1,871
  -1,971
  -2,076
  -2,186
  -2,301
Tax expense, $m
  -125
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -354
  -873
  -739
  -774
  -811
  -849
  -888
  -930
  -973
  -1,017
  -1,064
  -811
  -862
  -915
  -970
  -1,028
  -1,088
  -1,151
  -1,217
  -1,287
  -1,359
  -1,435
  -1,514
  -1,597
  -1,684
  -1,775
  -1,871
  -1,971
  -2,076
  -2,186
  -2,301

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  115
  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
  7,087
  8,140
  8,701
  9,284
  9,890
  10,521
  11,178
  11,861
  12,574
  13,316
  14,090
  14,898
  15,741
  16,621
  17,541
  18,502
  19,507
  20,559
  21,659
  22,810
  24,015
  25,277
  26,599
  27,984
  29,435
  30,956
  32,551
  34,223
  35,976
  37,814
  39,742
Adjusted assets (=assets-cash), $m
  6,972
  8,140
  8,701
  9,284
  9,890
  10,521
  11,178
  11,861
  12,574
  13,316
  14,090
  14,898
  15,741
  16,621
  17,541
  18,502
  19,507
  20,559
  21,659
  22,810
  24,015
  25,277
  26,599
  27,984
  29,435
  30,956
  32,551
  34,223
  35,976
  37,814
  39,742
Revenue / Adjusted assets
  0.414
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
Average production assets, $m
  2,995
  3,779
  4,040
  4,310
  4,592
  4,885
  5,190
  5,507
  5,838
  6,182
  6,542
  6,917
  7,308
  7,717
  8,144
  8,590
  9,057
  9,545
  10,056
  10,590
  11,150
  11,736
  12,349
  12,992
  13,666
  14,372
  15,113
  15,889
  16,703
  17,556
  18,451
Working capital, $m
  425
  476
  509
  543
  578
  615
  653
  693
  735
  778
  823
  871
  920
  971
  1,025
  1,081
  1,140
  1,202
  1,266
  1,333
  1,404
  1,477
  1,555
  1,635
  1,720
  1,809
  1,902
  2,000
  2,103
  2,210
  2,323
Total debt, $m
  8,074
  6,305
  6,810
  7,335
  7,880
  8,448
  9,039
  9,654
  10,295
  10,963
  11,660
  12,387
  13,146
  13,938
  14,766
  15,631
  16,536
  17,482
  18,472
  19,508
  20,593
  21,728
  22,918
  24,165
  25,471
  26,840
  28,275
  29,779
  31,357
  33,011
  34,747
Total liabilities, $m
  9,023
  7,326
  7,831
  8,356
  8,901
  9,469
  10,060
  10,675
  11,316
  11,984
  12,681
  13,408
  14,167
  14,959
  15,787
  16,652
  17,557
  18,503
  19,493
  20,529
  21,614
  22,749
  23,939
  25,186
  26,492
  27,861
  29,296
  30,800
  32,378
  34,032
  35,768
Total equity, $m
  -1,936
  814
  870
  928
  989
  1,052
  1,118
  1,186
  1,257
  1,332
  1,409
  1,490
  1,574
  1,662
  1,754
  1,850
  1,951
  2,056
  2,166
  2,281
  2,402
  2,528
  2,660
  2,798
  2,944
  3,096
  3,255
  3,422
  3,598
  3,781
  3,974
Total liabilities and equity, $m
  7,087
  8,140
  8,701
  9,284
  9,890
  10,521
  11,178
  11,861
  12,573
  13,316
  14,090
  14,898
  15,741
  16,621
  17,541
  18,502
  19,508
  20,559
  21,659
  22,810
  24,016
  25,277
  26,599
  27,984
  29,436
  30,957
  32,551
  34,222
  35,976
  37,813
  39,742
Debt-to-equity ratio
  -4.170
  7.750
  7.830
  7.900
  7.970
  8.030
  8.090
  8.140
  8.190
  8.230
  8.280
  8.310
  8.350
  8.390
  8.420
  8.450
  8.480
  8.500
  8.530
  8.550
  8.570
  8.600
  8.620
  8.640
  8.650
  8.670
  8.690
  8.700
  8.720
  8.730
  8.740
Adjusted equity ratio
  -0.294
  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
  -354
  -873
  -739
  -774
  -811
  -849
  -888
  -930
  -973
  -1,017
  -1,064
  -811
  -862
  -915
  -970
  -1,028
  -1,088
  -1,151
  -1,217
  -1,287
  -1,359
  -1,435
  -1,514
  -1,597
  -1,684
  -1,775
  -1,871
  -1,971
  -2,076
  -2,186
  -2,301
Depreciation, amort., depletion, $m
  739
  780
  813
  847
  883
  920
  958
  998
  1,040
  1,084
  1,129
  876
  925
  977
  1,031
  1,087
  1,146
  1,208
  1,273
  1,341
  1,411
  1,486
  1,563
  1,645
  1,730
  1,819
  1,913
  2,011
  2,114
  2,222
  2,336
Funds from operations, $m
  485
  -93
  74
  73
  72
  71
  70
  69
  68
  67
  66
  64
  63
  62
  61
  59
  58
  57
  55
  54
  52
  51
  49
  48
  46
  44
  42
  41
  39
  37
  34
Change in working capital, $m
  66
  32
  33
  34
  35
  37
  38
  40
  42
  43
  45
  47
  49
  51
  54
  56
  59
  61
  64
  67
  70
  74
  77
  81
  85
  89
  93
  98
  102
  107
  113
Cash from operations, $m
  419
  -453
  41
  39
  37
  34
  32
  29
  26
  23
  20
  17
  14
  11
  7
  3
  -1
  -5
  -9
  -13
  -18
  -23
  -28
  -33
  -39
  -45
  -51
  -57
  -64
  -71
  -78
Maintenance CAPEX, $m
  0
  -447
  -478
  -511
  -546
  -581
  -618
  -657
  -697
  -739
  -783
  -828
  -876
  -925
  -977
  -1,031
  -1,087
  -1,146
  -1,208
  -1,273
  -1,341
  -1,411
  -1,486
  -1,563
  -1,645
  -1,730
  -1,819
  -1,913
  -2,011
  -2,114
  -2,222
New CAPEX, $m
  -273
  -251
  -260
  -271
  -282
  -293
  -305
  -317
  -331
  -345
  -359
  -375
  -391
  -409
  -427
  -446
  -467
  -488
  -511
  -534
  -560
  -586
  -614
  -643
  -674
  -706
  -740
  -776
  -814
  -853
  -895
Cash from investing activities, $m
  -232
  -698
  -738
  -782
  -828
  -874
  -923
  -974
  -1,028
  -1,084
  -1,142
  -1,203
  -1,267
  -1,334
  -1,404
  -1,477
  -1,554
  -1,634
  -1,719
  -1,807
  -1,901
  -1,997
  -2,100
  -2,206
  -2,319
  -2,436
  -2,559
  -2,689
  -2,825
  -2,967
  -3,117
Free cash flow, $m
  187
  -1,151
  -698
  -743
  -791
  -840
  -892
  -945
  -1,002
  -1,060
  -1,122
  -1,186
  -1,253
  -1,323
  -1,397
  -1,474
  -1,555
  -1,639
  -1,728
  -1,821
  -1,918
  -2,020
  -2,127
  -2,239
  -2,357
  -2,481
  -2,610
  -2,746
  -2,889
  -3,039
  -3,196
Issuance/(repayment) of debt, $m
  -140
  -1,852
  505
  525
  546
  568
  591
  615
  641
  668
  697
  727
  759
  792
  828
  865
  905
  946
  990
  1,036
  1,085
  1,136
  1,190
  1,246
  1,306
  1,369
  1,435
  1,505
  1,578
  1,654
  1,735
Issuance/(repurchase) of shares, $m
  -6
  5,313
  249
  277
  306
  335
  366
  398
  432
  466
  502
  540
  579
  619
  661
  705
  751
  798
  848
  900
  954
  1,010
  1,070
  1,131
  1,196
  1,264
  1,335
  1,409
  1,487
  1,568
  1,653
Cash from financing (excl. dividends), $m  
  -196
  3,461
  754
  802
  852
  903
  957
  1,013
  1,073
  1,134
  1,199
  1,267
  1,338
  1,411
  1,489
  1,570
  1,656
  1,744
  1,838
  1,936
  2,039
  2,146
  2,260
  2,377
  2,502
  2,633
  2,770
  2,914
  3,065
  3,222
  3,388
Total cash flow (excl. dividends), $m
  -14
  -3,003
  -193
  -218
  -245
  -272
  -301
  -330
  -361
  -392
  -425
  -459
  -494
  -531
  -569
  -609
  -650
  -693
  -738
  -785
  -833
  -884
  -937
  -993
  -1,051
  -1,112
  -1,175
  -1,242
  -1,311
  -1,384
  -1,460
Retained Cash Flow (-), $m
  440
  -2,389
  -56
  -58
  -61
  -63
  -66
  -68
  -71
  -74
  -77
  -81
  -84
  -88
  -92
  -96
  -101
  -105
  -110
  -115
  -121
  -126
  -132
  -138
  -145
  -152
  -159
  -167
  -175
  -184
  -193
Prev. year cash balance distribution, $m
 
  79
  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
 
  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
Discount rate, %
 
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
  24.20
  25.41
  26.68
  28.02
  29.42
  30.89
  32.43
  34.05
  35.76
  37.54
  39.42
  41.39
  43.46
  45.63
  47.92
  50.31
  52.83
  55.47
  58.24
  61.15
  64.21
PV of cash for distribution, $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
Current shareholders' claim on cash, %
  100
  50.0
  38.3
  29.1
  21.9
  16.3
  12.1
  8.9
  6.5
  4.8
  3.5
  2.5
  1.8
  1.3
  0.9
  0.7
  0.5
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Scientific Games Corporation develops technology-based products and services, and associated content for the gaming, lottery, and interactive gaming industries worldwide. Its Gaming segment supplies and leases gaming machines, video lottery terminals, automatic card shufflers, roulette chip sorters, fixed odds betting terminals, and server-based gaming systems and content, as well as arcade and bingo machines, conversion kits, and spare parts; and licenses proprietary table game content. It also provides video lottery central monitoring and control systems and networks for gaming regulators; and sells casino-management technology solutions and systems. The company’s Lottery segment designs, prints, and sells instant lottery games; and provides value-added services, such as game design, sales and marketing and support, specialty games and promotions, inventory management, warehousing, and fulfillment services, as well as instant game category management services. This segment also provides lottery systems, including equipment, software, and data communication services and support; instant game validation systems; and software, hardware, and related services for sports wagering and keno systems. In addition, it provides licensed games, promotional entertainment, and Internet-based marketing services; and branded merchandise, advertising, promotional support, and drawing management services, as well as prize fulfillment programs. Further, this segment prints and sells phone cards; and supplies proprietary transaction-processing software, draw lottery games, keno, point-of-sale terminals, central site computers, and communication platforms, as well as ongoing operational support and maintenance services. Its Interactive segment provides interactive gaming products and services for social gaming and real-money gaming through desktop and mobile devices to online casino operators. The company was founded in 1984 and is headquartered in Las Vegas, Nevada.

FINANCIAL RATIOS  of  Scientific Games (SGMS)

Valuation Ratios
P/E Ratio -6.6
Price to Sales 0.8
Price to Book -1.2
Price to Tangible Book
Price to Cash Flow 5.5
Price to Free Cash Flow 15.9
Growth Rates
Sales Growth Rate 4.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -15.7%
Cap. Spend. - 3 Yr. Gr. Rate 10.5%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity -414.5%
Total Debt to Equity -417%
Interest Coverage 0
Management Effectiveness
Return On Assets 1.4%
Ret/ On Assets - 3 Yr. Avg. -3.7%
Return On Total Capital -5.5%
Ret/ On T. Cap. - 3 Yr. Avg. -9.3%
Return On Equity 20.6%
Return On Equity - 3 Yr. Avg. 28%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 61.6%
Gross Margin - 3 Yr. Avg. 58%
EBITDA Margin 30.6%
EBITDA Margin - 3 Yr. Avg. 10.5%
Operating Margin 5.4%
Oper. Margin - 3 Yr. Avg. -14.3%
Pre-Tax Margin -16.6%
Pre-Tax Margin - 3 Yr. Avg. -35.2%
Net Profit Margin -12.3%
Net Profit Margin - 3 Yr. Avg. -25.3%
Effective Tax Rate 26.1%
Eff/ Tax Rate - 3 Yr. Avg. 32.2%
Payout Ratio 0%

SGMS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SGMS stock intrinsic value calculation we used $2759 million for the last fiscal year's total revenue generated by Scientific Games. The default revenue input number comes from 2016 income statement of Scientific Games. 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 SGMS stock valuation model: a) initial revenue growth rate of 7.1% 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 15.6%, whose default value for SGMS is calculated based on our internal credit rating of Scientific Games, 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 Scientific Games.
    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 SGMS stock the variable cost ratio is equal to 110.4%.

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 SGMS 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 7.2% for Scientific Games.

Corporate tax rate of 27% is the nominal tax rate for Scientific Games. 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 SGMS 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 SGMS are equal to 127.9%.

Life of production assets of 7.9 years is the average useful life of capital assets used in Scientific Games 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 SGMS is equal to 16.1%. 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 - $-1496 million for Scientific Games - 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 86.874 million for Scientific Games 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 Scientific Games at the current share price and the inputted number of shares is $2.3 billion.


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COMPANY NEWS

▶ Playing your options in the casino space   [Jun-21-17 02:01PM  CNBC Videos]
▶ Scientific Games reports 1Q loss   [Apr-27-17 06:36PM  Associated Press]
▶ Scientific Games: Stock Is Expensive, But Bonds Yield 11%   [Dec-30-16 04:41PM  at Barrons.com]
▶ This $800 Million Hedge Fund Will Sell 100% Of These Positions   [Dec-15-16 04:29PM  at Insider Monkey]
▶ Hedge Funds Are Finally Buying Scientific Games Corp (SGMS) Again   [Dec-01-16 01:37PM  at Insider Monkey]
Stock chart of SGMS Financial statements of SGMS Annual reports of SGMS
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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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