Intrinsic value of Simon Property Group - SPG

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$158.90

  Intrinsic Value

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  Value-price divergence*

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$158.90

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

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

We calculate the intrinsic value of SPG 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 50.3

 

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, %
  3.21
  3.30
  3.47
  3.62
  3.76
  3.88
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.68
  4.72
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
Revenue, $m
  5,435
  5,614
  5,809
  6,020
  6,246
  6,489
  6,748
  7,024
  7,318
  7,631
  7,962
  8,313
  8,684
  9,077
  9,492
  9,929
  10,391
  10,878
  11,391
  11,931
  12,500
  13,100
  13,730
  14,394
  15,092
  15,826
  16,598
  17,409
  18,263
  19,160
  20,102
Variable operating expenses, $m
 
  2,633
  2,724
  2,823
  2,929
  3,043
  3,164
  3,294
  3,432
  3,578
  3,733
  3,896
  4,070
  4,254
  4,448
  4,653
  4,869
  5,098
  5,338
  5,591
  5,858
  6,139
  6,434
  6,745
  7,072
  7,416
  7,778
  8,159
  8,558
  8,979
  9,421
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
  2,767
  2,633
  2,724
  2,823
  2,929
  3,043
  3,164
  3,294
  3,432
  3,578
  3,733
  3,896
  4,070
  4,254
  4,448
  4,653
  4,869
  5,098
  5,338
  5,591
  5,858
  6,139
  6,434
  6,745
  7,072
  7,416
  7,778
  8,159
  8,558
  8,979
  9,421
Operating income, $m
  2,669
  2,981
  3,085
  3,197
  3,317
  3,446
  3,584
  3,731
  3,887
  4,053
  4,229
  4,417
  4,615
  4,823
  5,043
  5,276
  5,521
  5,780
  6,053
  6,340
  6,642
  6,961
  7,296
  7,648
  8,019
  8,409
  8,820
  9,251
  9,704
  10,181
  10,682
EBITDA, $m
  3,997
  4,358
  4,509
  4,672
  4,848
  5,036
  5,237
  5,452
  5,680
  5,923
  6,180
  6,452
  6,740
  7,045
  7,367
  7,707
  8,065
  8,443
  8,841
  9,260
  9,702
  10,167
  10,657
  11,172
  11,713
  12,283
  12,882
  13,512
  14,175
  14,871
  15,602
Interest expense (income), $m
  887
  804
  835
  868
  904
  943
  985
  1,030
  1,078
  1,128
  1,182
  1,239
  1,300
  1,364
  1,432
  1,503
  1,579
  1,658
  1,742
  1,831
  1,924
  2,022
  2,125
  2,234
  2,349
  2,469
  2,595
  2,729
  2,869
  3,016
  3,170
Earnings before tax, $m
  2,135
  2,177
  2,250
  2,328
  2,412
  2,502
  2,598
  2,700
  2,809
  2,924
  3,047
  3,178
  3,315
  3,459
  3,612
  3,773
  3,943
  4,122
  4,310
  4,509
  4,718
  4,939
  5,170
  5,414
  5,671
  5,940
  6,224
  6,522
  6,836
  7,165
  7,511
Tax expense, $m
  0
  588
  608
  629
  651
  676
  702
  729
  758
  790
  823
  858
  895
  934
  975
  1,019
  1,065
  1,113
  1,164
  1,217
  1,274
  1,333
  1,396
  1,462
  1,531
  1,604
  1,680
  1,761
  1,846
  1,935
  2,028
Net income, $m
  1,839
  1,589
  1,643
  1,700
  1,761
  1,827
  1,897
  1,971
  2,051
  2,135
  2,224
  2,320
  2,420
  2,525
  2,637
  2,754
  2,878
  3,009
  3,147
  3,292
  3,444
  3,605
  3,774
  3,952
  4,140
  4,337
  4,544
  4,761
  4,990
  5,231
  5,483

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  560
  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
  31,104
  31,541
  32,636
  33,818
  35,090
  36,453
  37,910
  39,463
  41,115
  42,870
  44,731
  46,703
  48,789
  50,994
  53,323
  55,782
  58,376
  61,111
  63,993
  67,029
  70,227
  73,593
  77,136
  80,863
  84,785
  88,909
  93,246
  97,806
  102,599
  107,638
  112,934
Adjusted assets (=assets-cash), $m
  30,544
  31,541
  32,636
  33,818
  35,090
  36,453
  37,910
  39,463
  41,115
  42,870
  44,731
  46,703
  48,789
  50,994
  53,323
  55,782
  58,376
  61,111
  63,993
  67,029
  70,227
  73,593
  77,136
  80,863
  84,785
  88,909
  93,246
  97,806
  102,599
  107,638
  112,934
Revenue / Adjusted assets
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
  0.178
Average production assets, $m
  24,215
  25,012
  25,880
  26,817
  27,826
  28,907
  30,062
  31,294
  32,604
  33,995
  35,471
  37,035
  38,689
  40,437
  42,285
  44,234
  46,291
  48,460
  50,746
  53,153
  55,689
  58,358
  61,168
  64,124
  67,233
  70,504
  73,943
  77,559
  81,360
  85,356
  89,555
Working capital, $m
  0
  -578
  -598
  -620
  -643
  -668
  -695
  -724
  -754
  -786
  -820
  -856
  -894
  -935
  -978
  -1,023
  -1,070
  -1,120
  -1,173
  -1,229
  -1,288
  -1,349
  -1,414
  -1,483
  -1,554
  -1,630
  -1,710
  -1,793
  -1,881
  -1,973
  -2,071
Total debt, $m
  22,977
  23,845
  24,805
  25,842
  26,957
  28,152
  29,430
  30,792
  32,241
  33,780
  35,412
  37,141
  38,971
  40,904
  42,947
  45,104
  47,378
  49,777
  52,305
  54,968
  57,772
  60,724
  63,831
  67,100
  70,539
  74,156
  77,960
  81,959
  86,163
  90,582
  95,226
Total liabilities, $m
  26,793
  27,662
  28,622
  29,659
  30,774
  31,969
  33,247
  34,609
  36,058
  37,597
  39,229
  40,958
  42,788
  44,721
  46,764
  48,921
  51,195
  53,594
  56,122
  58,785
  61,589
  64,541
  67,648
  70,917
  74,356
  77,973
  81,777
  85,776
  89,980
  94,399
  99,043
Total equity, $m
  4,310
  3,880
  4,014
  4,160
  4,316
  4,484
  4,663
  4,854
  5,057
  5,273
  5,502
  5,744
  6,001
  6,272
  6,559
  6,861
  7,180
  7,517
  7,871
  8,245
  8,638
  9,052
  9,488
  9,946
  10,429
  10,936
  11,469
  12,030
  12,620
  13,239
  13,891
Total liabilities and equity, $m
  31,103
  31,542
  32,636
  33,819
  35,090
  36,453
  37,910
  39,463
  41,115
  42,870
  44,731
  46,702
  48,789
  50,993
  53,323
  55,782
  58,375
  61,111
  63,993
  67,030
  70,227
  73,593
  77,136
  80,863
  84,785
  88,909
  93,246
  97,806
  102,600
  107,638
  112,934
Debt-to-equity ratio
  5.331
  6.150
  6.180
  6.210
  6.250
  6.280
  6.310
  6.340
  6.380
  6.410
  6.440
  6.470
  6.490
  6.520
  6.550
  6.570
  6.600
  6.620
  6.650
  6.670
  6.690
  6.710
  6.730
  6.750
  6.760
  6.780
  6.800
  6.810
  6.830
  6.840
  6.860
Adjusted equity ratio
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,839
  1,589
  1,643
  1,700
  1,761
  1,827
  1,897
  1,971
  2,051
  2,135
  2,224
  2,320
  2,420
  2,525
  2,637
  2,754
  2,878
  3,009
  3,147
  3,292
  3,444
  3,605
  3,774
  3,952
  4,140
  4,337
  4,544
  4,761
  4,990
  5,231
  5,483
Depreciation, amort., depletion, $m
  1,328
  1,376
  1,424
  1,475
  1,531
  1,590
  1,654
  1,721
  1,793
  1,870
  1,951
  2,035
  2,126
  2,222
  2,323
  2,430
  2,543
  2,663
  2,788
  2,921
  3,060
  3,207
  3,361
  3,523
  3,694
  3,874
  4,063
  4,261
  4,470
  4,690
  4,921
Funds from operations, $m
  3,268
  2,966
  3,067
  3,175
  3,292
  3,417
  3,551
  3,693
  3,844
  4,005
  4,175
  4,355
  4,545
  4,747
  4,960
  5,185
  5,422
  5,672
  5,935
  6,212
  6,504
  6,812
  7,135
  7,476
  7,834
  8,210
  8,606
  9,023
  9,460
  9,920
  10,404
Change in working capital, $m
  -105
  -18
  -20
  -22
  -23
  -25
  -27
  -28
  -30
  -32
  -34
  -36
  -38
  -40
  -43
  -45
  -48
  -50
  -53
  -56
  -59
  -62
  -65
  -68
  -72
  -76
  -80
  -84
  -88
  -92
  -97
Cash from operations, $m
  3,373
  3,395
  3,087
  3,197
  3,315
  3,442
  3,577
  3,721
  3,874
  4,037
  4,209
  4,391
  4,584
  4,787
  5,003
  5,230
  5,469
  5,722
  5,988
  6,268
  6,563
  6,873
  7,200
  7,544
  7,906
  8,286
  8,686
  9,106
  9,548
  10,013
  10,501
Maintenance CAPEX, $m
  0
  -1,330
  -1,374
  -1,422
  -1,473
  -1,529
  -1,588
  -1,652
  -1,719
  -1,791
  -1,868
  -1,949
  -2,035
  -2,126
  -2,222
  -2,323
  -2,430
  -2,543
  -2,663
  -2,788
  -2,921
  -3,060
  -3,207
  -3,361
  -3,523
  -3,694
  -3,874
  -4,063
  -4,261
  -4,470
  -4,690
New CAPEX, $m
  -798
  -797
  -868
  -938
  -1,009
  -1,081
  -1,155
  -1,232
  -1,310
  -1,392
  -1,476
  -1,563
  -1,654
  -1,749
  -1,847
  -1,950
  -2,057
  -2,169
  -2,286
  -2,408
  -2,536
  -2,669
  -2,809
  -2,956
  -3,110
  -3,270
  -3,439
  -3,616
  -3,801
  -3,996
  -4,199
Cash from investing activities, $m
  -969
  -2,127
  -2,242
  -2,360
  -2,482
  -2,610
  -2,743
  -2,884
  -3,029
  -3,183
  -3,344
  -3,512
  -3,689
  -3,875
  -4,069
  -4,273
  -4,487
  -4,712
  -4,949
  -5,196
  -5,457
  -5,729
  -6,016
  -6,317
  -6,633
  -6,964
  -7,313
  -7,679
  -8,062
  -8,466
  -8,889
Free cash flow, $m
  2,404
  1,267
  845
  837
  833
  832
  834
  838
  845
  854
  865
  879
  895
  913
  934
  957
  982
  1,009
  1,039
  1,072
  1,107
  1,144
  1,184
  1,227
  1,273
  1,321
  1,373
  1,428
  1,485
  1,547
  1,612
Issuance/(repayment) of debt, $m
  216
  868
  960
  1,037
  1,115
  1,195
  1,278
  1,362
  1,449
  1,539
  1,632
  1,729
  1,829
  1,934
  2,043
  2,156
  2,275
  2,399
  2,528
  2,663
  2,804
  2,952
  3,107
  3,269
  3,439
  3,617
  3,803
  3,999
  4,204
  4,419
  4,644
Issuance/(repurchase) of shares, $m
  -256
  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  
  -507
  868
  960
  1,037
  1,115
  1,195
  1,278
  1,362
  1,449
  1,539
  1,632
  1,729
  1,829
  1,934
  2,043
  2,156
  2,275
  2,399
  2,528
  2,663
  2,804
  2,952
  3,107
  3,269
  3,439
  3,617
  3,803
  3,999
  4,204
  4,419
  4,644
Total cash flow (excl. dividends), $m
  1,897
  2,134
  1,804
  1,874
  1,949
  2,028
  2,111
  2,200
  2,294
  2,393
  2,498
  2,607
  2,724
  2,847
  2,977
  3,113
  3,257
  3,408
  3,567
  3,735
  3,911
  4,096
  4,291
  4,496
  4,712
  4,938
  5,176
  5,427
  5,689
  5,966
  6,256
Retained Cash Flow (-), $m
  161
  -130
  -135
  -145
  -156
  -168
  -179
  -191
  -203
  -216
  -229
  -242
  -257
  -271
  -287
  -302
  -319
  -336
  -355
  -373
  -393
  -414
  -436
  -459
  -482
  -507
  -533
  -561
  -590
  -620
  -651
Prev. year cash balance distribution, $m
 
  560
  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
 
  2,565
  1,670
  1,729
  1,792
  1,860
  1,932
  2,009
  2,091
  2,177
  2,269
  2,365
  2,467
  2,576
  2,690
  2,811
  2,938
  3,072
  3,213
  3,361
  3,518
  3,682
  3,856
  4,038
  4,229
  4,431
  4,643
  4,866
  5,100
  5,346
  5,605
Discount rate, %
 
  11.60
  12.18
  12.79
  13.43
  14.10
  14.80
  15.55
  16.32
  17.14
  18.00
  18.90
  19.84
  20.83
  21.87
  22.97
  24.12
  25.32
  26.59
  27.92
  29.31
  30.78
  32.32
  33.93
  35.63
  37.41
  39.28
  41.25
  43.31
  45.47
  47.75
PV of cash for distribution, $m
 
  2,298
  1,327
  1,205
  1,083
  962
  844
  731
  624
  524
  434
  352
  281
  220
  169
  126
  93
  66
  46
  31
  21
  13
  8
  5
  3
  2
  1
  0
  0
  0
  0
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

Simon Property Group, Inc. is an equity real estate investment trust. The firm invests in the real estate markets across the globe. It engages in investment, ownership, management, and development of properties. It primarily invests in regional malls, premium outlets, mills, and community/lifestyle centers to create its portfolio. Simon Property Group, Inc. was founded in 1960 and is based in Indianapolis, Indiana, with additional office in New York, New York.

FINANCIAL RATIOS  of  Simon Property Group (SPG)

Valuation Ratios
P/E Ratio 27.1
Price to Sales 9.2
Price to Book 11.5
Price to Tangible Book
Price to Cash Flow 14.7
Price to Free Cash Flow 19.3
Growth Rates
Sales Growth Rate 3.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -21.8%
Cap. Spend. - 3 Yr. Gr. Rate -1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 533.1%
Total Debt to Equity 533.1%
Interest Coverage 3
Management Effectiveness
Return On Assets 8.8%
Ret/ On Assets - 3 Yr. Avg. 8.6%
Return On Total Capital 6.8%
Ret/ On T. Cap. - 3 Yr. Avg. 6.3%
Return On Equity 41.9%
Return On Equity - 3 Yr. Avg. 35.3%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 82.1%
Gross Margin - 3 Yr. Avg. 81.9%
EBITDA Margin 80%
EBITDA Margin - 3 Yr. Avg. 80.9%
Operating Margin 49.1%
Oper. Margin - 3 Yr. Avg. 50.6%
Pre-Tax Margin 39.3%
Pre-Tax Margin - 3 Yr. Avg. 37.7%
Net Profit Margin 33.8%
Net Profit Margin - 3 Yr. Avg. 32.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 110.8%

SPG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SPG stock intrinsic value calculation we used $5435 million for the last fiscal year's total revenue generated by Simon Property Group. The default revenue input number comes from 2016 income statement of Simon Property Group. 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 SPG stock valuation model: a) initial revenue growth rate of 3.3% 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 11.6%, whose default value for SPG is calculated based on our internal credit rating of Simon Property Group, 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 Simon Property Group.
    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 SPG stock the variable cost ratio is equal to 46.9%.

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 SPG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Simon Property Group.

Corporate tax rate of 27% is the nominal tax rate for Simon Property Group. 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 SPG 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 SPG are equal to 445.5%.

Life of production assets of 18.2 years is the average useful life of capital assets used in Simon Property Group 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 SPG is equal to -10.3%. 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 - $4310 million for Simon Property Group - 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 316.513 million for Simon Property Group 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 Simon Property Group at the current share price and the inputted number of shares is $50.3 billion.


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Stock chart of SPG Financial statements of SPG Annual reports of SPG
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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