Intrinsic value of STORE Capital - STOR

Previous Close

$25.01

  Intrinsic Value

$3.90

stock screener

  Rating & Target

str. sell

-84%

  Value-price divergence*

+76%

Previous close

$25.01

 
Intrinsic value

$3.90

 
Up/down potential

-84%

 
Rating

str. sell

 
Value-price divergence*

+76%

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

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

We calculate the intrinsic value of STOR 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 4.0

 

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, %
  38.75
  33.30
  30.47
  27.92
  25.63
  23.57
  21.71
  20.04
  18.54
  17.18
  15.96
  14.87
  13.88
  12.99
  12.19
  11.47
  10.83
  10.24
  9.72
  9.25
  8.82
  8.44
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
Revenue, $m
  376
  501
  654
  837
  1,051
  1,299
  1,581
  1,897
  2,249
  2,635
  3,056
  3,510
  3,998
  4,517
  5,068
  5,649
  6,261
  6,903
  7,573
  8,274
  9,004
  9,764
  10,554
  11,376
  12,230
  13,118
  14,040
  14,999
  15,996
  17,032
  18,111
Variable operating expenses, $m
 
  196
  256
  327
  411
  508
  618
  742
  879
  1,030
  1,195
  1,373
  1,563
  1,766
  1,982
  2,209
  2,448
  2,699
  2,961
  3,235
  3,520
  3,818
  4,127
  4,448
  4,782
  5,129
  5,490
  5,865
  6,254
  6,660
  7,081
Fixed operating expenses, $m
 
  14
  15
  15
  15
  16
  16
  17
  17
  17
  18
  18
  19
  19
  20
  20
  21
  21
  22
  22
  23
  24
  24
  25
  25
  26
  27
  27
  28
  29
  29
Total operating expenses, $m
  161
  210
  271
  342
  426
  524
  634
  759
  896
  1,047
  1,213
  1,391
  1,582
  1,785
  2,002
  2,229
  2,469
  2,720
  2,983
  3,257
  3,543
  3,842
  4,151
  4,473
  4,807
  5,155
  5,517
  5,892
  6,282
  6,689
  7,110
Operating income, $m
  216
  291
  384
  494
  625
  775
  946
  1,139
  1,353
  1,587
  1,843
  2,120
  2,416
  2,732
  3,067
  3,420
  3,792
  4,182
  4,590
  5,016
  5,460
  5,923
  6,403
  6,903
  7,423
  7,963
  8,524
  9,107
  9,713
  10,344
  11,000
EBITDA, $m
  336
  472
  619
  796
  1,004
  1,244
  1,517
  1,823
  2,164
  2,538
  2,946
  3,386
  3,858
  4,361
  4,895
  5,458
  6,051
  6,673
  7,323
  8,001
  8,709
  9,445
  10,211
  11,007
  11,835
  12,695
  13,589
  14,518
  15,484
  16,489
  17,534
Interest expense (income), $m
  96
  111
  149
  196
  252
  318
  394
  480
  577
  685
  804
  933
  1,073
  1,222
  1,382
  1,551
  1,730
  1,917
  2,114
  2,320
  2,535
  2,759
  2,993
  3,235
  3,488
  3,750
  4,022
  4,306
  4,600
  4,906
  5,224
Earnings before tax, $m
  110
  180
  235
  299
  373
  457
  553
  659
  775
  902
  1,039
  1,186
  1,343
  1,509
  1,685
  1,869
  2,063
  2,265
  2,476
  2,696
  2,925
  3,163
  3,411
  3,668
  3,935
  4,213
  4,501
  4,801
  5,113
  5,438
  5,776
Tax expense, $m
  0
  49
  63
  81
  101
  123
  149
  178
  209
  244
  281
  320
  363
  408
  455
  505
  557
  612
  669
  728
  790
  854
  921
  990
  1,062
  1,137
  1,215
  1,296
  1,381
  1,468
  1,560
Net income, $m
  123
  132
  171
  218
  272
  334
  403
  481
  566
  658
  759
  866
  980
  1,102
  1,230
  1,365
  1,506
  1,653
  1,808
  1,968
  2,135
  2,309
  2,490
  2,678
  2,873
  3,075
  3,286
  3,505
  3,733
  3,970
  4,216

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
  0
Total assets, $m
  4,942
  6,509
  8,493
  10,864
  13,648
  16,865
  20,527
  24,640
  29,207
  34,226
  39,690
  45,590
  51,919
  58,664
  65,818
  73,370
  81,313
  89,643
  98,356
  107,452
  116,932
  126,802
  137,068
  147,742
  158,834
  170,362
  182,341
  194,792
  207,737
  221,201
  235,209
Adjusted assets (=assets-cash), $m
  4,888
  6,509
  8,493
  10,864
  13,648
  16,865
  20,527
  24,640
  29,207
  34,226
  39,690
  45,590
  51,919
  58,664
  65,818
  73,370
  81,313
  89,643
  98,356
  107,452
  116,932
  126,802
  137,068
  147,742
  158,834
  170,362
  182,341
  194,792
  207,737
  221,201
  235,209
Revenue / Adjusted assets
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
  0.077
Average production assets, $m
  4,070
  5,425
  7,077
  9,054
  11,374
  14,055
  17,106
  20,534
  24,341
  28,523
  33,076
  37,994
  43,268
  48,889
  54,851
  61,144
  67,764
  74,706
  81,967
  89,547
  97,448
  105,673
  114,229
  123,124
  132,368
  141,974
  151,958
  162,334
  173,122
  184,342
  196,017
Working capital, $m
  0
  -50
  -65
  -84
  -105
  -130
  -158
  -190
  -225
  -264
  -306
  -351
  -400
  -452
  -507
  -565
  -626
  -690
  -757
  -827
  -900
  -976
  -1,055
  -1,138
  -1,223
  -1,312
  -1,404
  -1,500
  -1,600
  -1,703
  -1,811
Total debt, $m
  2,352
  3,167
  4,165
  5,358
  6,758
  8,376
  10,218
  12,287
  14,584
  17,109
  19,857
  22,825
  26,008
  29,401
  32,999
  36,798
  40,794
  44,983
  49,366
  53,941
  58,710
  63,674
  68,838
  74,207
  79,787
  85,585
  91,610
  97,873
  104,385
  111,157
  118,203
Total liabilities, $m
  2,458
  3,274
  4,272
  5,465
  6,865
  8,483
  10,325
  12,394
  14,691
  17,216
  19,964
  22,932
  26,115
  29,508
  33,106
  36,905
  40,901
  45,090
  49,473
  54,048
  58,817
  63,781
  68,945
  74,314
  79,894
  85,692
  91,717
  97,980
  104,492
  111,264
  118,310
Total equity, $m
  2,483
  3,235
  4,221
  5,399
  6,783
  8,382
  10,202
  12,246
  14,516
  17,010
  19,726
  22,658
  25,804
  29,156
  32,711
  36,465
  40,413
  44,553
  48,883
  53,403
  58,115
  63,020
  68,123
  73,428
  78,941
  84,670
  90,623
  96,812
  103,245
  109,937
  116,899
Total liabilities and equity, $m
  4,941
  6,509
  8,493
  10,864
  13,648
  16,865
  20,527
  24,640
  29,207
  34,226
  39,690
  45,590
  51,919
  58,664
  65,817
  73,370
  81,314
  89,643
  98,356
  107,451
  116,932
  126,801
  137,068
  147,742
  158,835
  170,362
  182,340
  194,792
  207,737
  221,201
  235,209
Debt-to-equity ratio
  0.947
  0.980
  0.990
  0.990
  1.000
  1.000
  1.000
  1.000
  1.000
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
  1.010
Adjusted equity ratio
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497
  0.497

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  123
  132
  171
  218
  272
  334
  403
  481
  566
  658
  759
  866
  980
  1,102
  1,230
  1,365
  1,506
  1,653
  1,808
  1,968
  2,135
  2,309
  2,490
  2,678
  2,873
  3,075
  3,286
  3,505
  3,733
  3,970
  4,216
Depreciation, amort., depletion, $m
  120
  181
  236
  302
  379
  468
  570
  684
  811
  951
  1,103
  1,266
  1,442
  1,630
  1,828
  2,038
  2,259
  2,490
  2,732
  2,985
  3,248
  3,522
  3,808
  4,104
  4,412
  4,732
  5,065
  5,411
  5,771
  6,145
  6,534
Funds from operations, $m
  247
  312
  407
  520
  651
  802
  974
  1,165
  1,377
  1,609
  1,861
  2,132
  2,423
  2,731
  3,058
  3,403
  3,765
  4,144
  4,540
  4,953
  5,384
  5,832
  6,297
  6,782
  7,285
  7,808
  8,351
  8,916
  9,504
  10,115
  10,750
Change in working capital, $m
  1
  -13
  -15
  -18
  -21
  -25
  -28
  -32
  -35
  -39
  -42
  -45
  -49
  -52
  -55
  -58
  -61
  -64
  -67
  -70
  -73
  -76
  -79
  -82
  -85
  -89
  -92
  -96
  -100
  -104
  -108
Cash from operations, $m
  246
  325
  423
  538
  673
  827
  1,002
  1,197
  1,412
  1,648
  1,903
  2,178
  2,471
  2,783
  3,113
  3,461
  3,826
  4,208
  4,607
  5,023
  5,457
  5,908
  6,377
  6,864
  7,370
  7,897
  8,444
  9,012
  9,603
  10,218
  10,858
Maintenance CAPEX, $m
  0
  -136
  -181
  -236
  -302
  -379
  -468
  -570
  -684
  -811
  -951
  -1,103
  -1,266
  -1,442
  -1,630
  -1,828
  -2,038
  -2,259
  -2,490
  -2,732
  -2,985
  -3,248
  -3,522
  -3,808
  -4,104
  -4,412
  -4,732
  -5,065
  -5,411
  -5,771
  -6,145
New CAPEX, $m
  -1,153
  -1,355
  -1,653
  -1,976
  -2,321
  -2,681
  -3,051
  -3,428
  -3,806
  -4,182
  -4,553
  -4,918
  -5,274
  -5,622
  -5,961
  -6,294
  -6,620
  -6,942
  -7,261
  -7,580
  -7,901
  -8,225
  -8,556
  -8,895
  -9,244
  -9,606
  -9,983
  -10,376
  -10,788
  -11,220
  -11,674
Cash from investing activities, $m
  -1,130
  -1,491
  -1,834
  -2,212
  -2,623
  -3,060
  -3,519
  -3,998
  -4,490
  -4,993
  -5,504
  -6,021
  -6,540
  -7,064
  -7,591
  -8,122
  -8,658
  -9,201
  -9,751
  -10,312
  -10,886
  -11,473
  -12,078
  -12,703
  -13,348
  -14,018
  -14,715
  -15,441
  -16,199
  -16,991
  -17,819
Free cash flow, $m
  -884
  -1,166
  -1,411
  -1,674
  -1,950
  -2,233
  -2,518
  -2,801
  -3,078
  -3,346
  -3,601
  -3,842
  -4,069
  -4,281
  -4,478
  -4,661
  -4,832
  -4,993
  -5,144
  -5,289
  -5,429
  -5,566
  -5,702
  -5,839
  -5,978
  -6,122
  -6,272
  -6,430
  -6,596
  -6,773
  -6,961
Issuance/(repayment) of debt, $m
  584
  815
  998
  1,193
  1,401
  1,618
  1,842
  2,069
  2,297
  2,524
  2,748
  2,968
  3,183
  3,393
  3,598
  3,799
  3,996
  4,190
  4,383
  4,575
  4,769
  4,964
  5,164
  5,369
  5,580
  5,798
  6,026
  6,263
  6,511
  6,772
  7,046
Issuance/(repurchase) of shares, $m
  477
  674
  814
  961
  1,112
  1,265
  1,416
  1,564
  1,704
  1,836
  1,957
  2,067
  2,165
  2,251
  2,325
  2,389
  2,442
  2,486
  2,523
  2,552
  2,576
  2,596
  2,613
  2,627
  2,640
  2,654
  2,668
  2,683
  2,701
  2,722
  2,746
Cash from financing (excl. dividends), $m  
  1,037
  1,489
  1,812
  2,154
  2,513
  2,883
  3,258
  3,633
  4,001
  4,360
  4,705
  5,035
  5,348
  5,644
  5,923
  6,188
  6,438
  6,676
  6,906
  7,127
  7,345
  7,560
  7,777
  7,996
  8,220
  8,452
  8,694
  8,946
  9,212
  9,494
  9,792
Total cash flow (excl. dividends), $m
  153
  324
  401
  479
  563
  650
  740
  831
  923
  1,014
  1,104
  1,193
  1,279
  1,363
  1,446
  1,526
  1,605
  1,684
  1,761
  1,838
  1,916
  1,995
  2,075
  2,157
  2,242
  2,330
  2,421
  2,516
  2,616
  2,721
  2,831
Retained Cash Flow (-), $m
  -423
  -806
  -986
  -1,179
  -1,384
  -1,599
  -1,820
  -2,044
  -2,270
  -2,494
  -2,716
  -2,933
  -3,145
  -3,353
  -3,555
  -3,753
  -3,948
  -4,140
  -4,330
  -4,521
  -4,712
  -4,905
  -5,102
  -5,305
  -5,513
  -5,729
  -5,954
  -6,188
  -6,434
  -6,691
  -6,962
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
 
  -428
  -585
  -699
  -821
  -949
  -1,080
  -1,213
  -1,347
  -1,480
  -1,611
  -1,740
  -1,866
  -1,989
  -2,109
  -2,227
  -2,342
  -2,456
  -2,569
  -2,682
  -2,796
  -2,911
  -3,028
  -3,147
  -3,271
  -3,399
  -3,533
  -3,672
  -3,817
  -3,970
  -4,131
Discount rate, %
 
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
 
  -394
  -492
  -533
  -562
  -577
  -578
  -565
  -540
  -504
  -461
  -411
  -360
  -307
  -257
  -211
  -169
  -132
  -101
  -75
  -55
  -39
  -27
  -18
  -12
  -7
  -5
  -3
  -2
  -1
  0
Current shareholders' claim on cash, %
  100
  85.2
  73.7
  64.5
  57.2
  51.2
  46.3
  42.3
  38.9
  36.1
  33.6
  31.6
  29.8
  28.3
  26.9
  25.8
  24.7
  23.8
  23.0
  22.3
  21.6
  21.0
  20.5
  20.0
  19.6
  19.2
  18.8
  18.5
  18.2
  17.9
  17.6

STORE Capital Corporation is a privately owned real estate investment trust. The firm invests in the real estate markets. It primarily invests in single-tenant properties including chain restaurants, supermarkets, drugstores and other retail, service and distribution facilities. It was formerly known as STORE Capital. STORE Capital Corporation is based in Scottsdale, Arizona.

FINANCIAL RATIOS  of  STORE Capital (STOR)

Valuation Ratios
P/E Ratio 32.4
Price to Sales 10.6
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 16.2
Price to Free Cash Flow -4.4
Growth Rates
Sales Growth Rate 38.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 3.4%
Cap. Spend. - 3 Yr. Gr. Rate 7.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 94.7%
Total Debt to Equity 94.7%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.9%
Ret/ On Assets - 3 Yr. Avg. 4.7%
Return On Total Capital 2.8%
Ret/ On T. Cap. - 3 Yr. Avg. 2.5%
Return On Equity 5.4%
Return On Equity - 3 Yr. Avg. 4.7%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 98.9%
Gross Margin - 3 Yr. Avg. 99.4%
EBITDA Margin 86.7%
EBITDA Margin - 3 Yr. Avg. 88.5%
Operating Margin 57.2%
Oper. Margin - 3 Yr. Avg. 56.3%
Pre-Tax Margin 29.3%
Pre-Tax Margin - 3 Yr. Avg. 27.8%
Net Profit Margin 32.7%
Net Profit Margin - 3 Yr. Avg. 30%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0.4%
Payout Ratio 132.5%

STOR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the STOR stock intrinsic value calculation we used $376 million for the last fiscal year's total revenue generated by STORE Capital. The default revenue input number comes from 2016 income statement of STORE Capital. 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 STOR stock valuation model: a) initial revenue growth rate of 33.3% 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 8.6%, whose default value for STOR is calculated based on our internal credit rating of STORE Capital, 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 STORE Capital.
    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 STOR stock the variable cost ratio is equal to 39.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $14 million in the base year in the intrinsic value calculation for STOR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.7% for STORE Capital.

Corporate tax rate of 27% is the nominal tax rate for STORE Capital. 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 STOR 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 STOR are equal to 1082.3%.

Life of production assets of 33.9 years is the average useful life of capital assets used in STORE Capital 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 STOR is equal to -10%. 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 - $2483 million for STORE Capital - 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 159.147 million for STORE Capital 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 STORE Capital at the current share price and the inputted number of shares is $4.0 billion.

RELATED COMPANIES Price Int.Val. Rating
CONN Conn's 20.10 10.21  sell
HOME At Home Group 23.64 55.23  str.buy
AMC AMC Entertainm 13.30 255.94  str.buy
VER VEREIT 8.63 1.80  str.sell
FCPT Four Corners P 25.17 1.97  str.sell
O Realty Income 57.61 6.73  str.sell
OLP One Liberty Pr 23.90 4.09  str.sell
STAR iStar 12.09 3.15  str.sell

COMPANY NEWS

▶ Top Stocks Warren Buffett's Buying Now   [Aug-16-17 08:45PM  Motley Fool]
▶ Store Capital reports 2Q results   [06:55AM  Associated Press]
▶ 2 REITs Warren Buffet Should Buy Next   [Aug-02-17 08:17AM  Motley Fool]
▶ 3 Great Stocks for Your Roth IRA   [Jul-27-17 07:47AM  Motley Fool]
▶ 3 Hidden Gems in Warren Buffett's Portfolio   [Jul-21-17 08:02AM  Motley Fool]
▶ Warren Buffett's REITs   [Jul-07-17 07:31PM  GuruFocus.com]
▶ In Your 70s? 3 Stocks You Might Want to Buy   [Jul-06-17 09:11AM  Motley Fool]
▶ Here's Why Buffett Bought STORE Capital   [Jul-03-17 04:24PM  GuruFocus.com]
▶ Warren Buffett Bets on Real Estate: Should You Join Him?   [Jul-02-17 08:03AM  Motley Fool]
▶ New Strong Sell Stocks for June 30th   [Jun-30-17 09:26AM  Zacks]
▶ Putting retail REITs to the Buffett test   [02:34AM  MarketWatch]
▶ A Technical Look at the Real Estate Sector   [Jun-28-17 03:23AM  Investopedia]
▶ Buffett's Berkshire Bulks Up Portfolio With This REIT Stake   [Jun-26-17 04:12PM  Investor's Business Daily]
▶ [$$] Buffett/US property: good for the gander   [01:22PM  Financial Times]
▶ [$$] Berkshire Hathaway Buys 9.8% Stake in Store Capital   [10:29AM  The Wall Street Journal]
▶ STORE Capital Declares Second Quarter 2017 Dividend   [Jun-15-17 06:45AM  Business Wire]
▶ STORE Capital to Attend NAREITs REITWeek® 2017   [May-18-17 04:35PM  Business Wire]
▶ 3 Top Bargain Stocks for Today   [May-17-17 08:48AM  Motley Fool]
▶ Store Capital reports 1Q results   [May-04-17 06:59AM  Associated Press]
▶ The REIT Way To Sleep Well At Night   [Apr-30-17 08:11AM  Forbes]
▶ STORE Capital Raises $235 Million in Term Debt   [Mar-30-17 06:45AM  Business Wire]
▶ Weekly CFO Buys Highlights   [Mar-16-17 05:03PM  GuruFocus.com]
▶ Is Store Capital Corp (STOR) a Good Stock to Buy?   [Dec-13-16 10:01AM  at Insider Monkey]
Stock chart of STOR Financial statements of STOR
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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