Intrinsic value of Sun Communities - SUI

Previous Close

$88.78

  Intrinsic Value

$8.08

stock screener

  Rating & Target

str. sell

-91%

  Value-price divergence*

+135%

Previous close

$88.78

 
Intrinsic value

$8.08

 
Up/down potential

-91%

 
Rating

str. sell

 
Value-price divergence*

+135%

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

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

We calculate the intrinsic value of SUI 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 6.5

 

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, %
  23.56
  33.70
  30.83
  28.25
  25.92
  23.83
  21.95
  20.25
  18.73
  17.35
  16.12
  15.01
  14.01
  13.11
  12.30
  11.57
  10.91
  10.32
  9.79
  9.31
  8.88
  8.49
  8.14
  7.83
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
Revenue, $m
  834
  1,115
  1,459
  1,871
  2,356
  2,917
  3,558
  4,278
  5,079
  5,961
  6,921
  7,960
  9,075
  10,264
  11,527
  12,860
  14,262
  15,734
  17,274
  18,882
  20,558
  22,303
  24,119
  26,006
  27,968
  30,007
  32,125
  34,327
  36,616
  38,997
  41,474
Variable operating expenses, $m
 
  868
  1,135
  1,456
  1,833
  2,270
  2,768
  3,328
  3,952
  4,637
  5,385
  6,193
  7,060
  7,986
  8,968
  10,005
  11,096
  12,241
  13,439
  14,690
  15,994
  17,352
  18,764
  20,233
  21,759
  23,345
  24,993
  26,707
  28,488
  30,340
  32,267
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
  674
  868
  1,135
  1,456
  1,833
  2,270
  2,768
  3,328
  3,952
  4,637
  5,385
  6,193
  7,060
  7,986
  8,968
  10,005
  11,096
  12,241
  13,439
  14,690
  15,994
  17,352
  18,764
  20,233
  21,759
  23,345
  24,993
  26,707
  28,488
  30,340
  32,267
Operating income, $m
  159
  248
  324
  415
  523
  648
  790
  950
  1,128
  1,323
  1,537
  1,767
  2,015
  2,279
  2,559
  2,855
  3,166
  3,493
  3,835
  4,192
  4,564
  4,951
  5,354
  5,773
  6,209
  6,661
  7,132
  7,621
  8,129
  8,657
  9,207
EBITDA, $m
  379
  542
  709
  909
  1,145
  1,418
  1,729
  2,079
  2,469
  2,897
  3,364
  3,869
  4,411
  4,989
  5,602
  6,250
  6,932
  7,647
  8,395
  9,177
  9,991
  10,839
  11,722
  12,639
  13,593
  14,584
  15,613
  16,683
  17,796
  18,953
  20,157
Interest expense (income), $m
  121
  137
  189
  253
  329
  419
  523
  642
  775
  924
  1,087
  1,265
  1,457
  1,664
  1,884
  2,118
  2,365
  2,625
  2,898
  3,183
  3,481
  3,792
  4,115
  4,452
  4,801
  5,165
  5,543
  5,935
  6,343
  6,767
  7,209
Earnings before tax, $m
  31
  111
  135
  163
  194
  229
  267
  308
  352
  400
  450
  502
  557
  615
  674
  737
  801
  868
  937
  1,008
  1,083
  1,160
  1,239
  1,322
  1,408
  1,497
  1,589
  1,685
  1,786
  1,890
  1,999
Tax expense, $m
  0
  30
  36
  44
  52
  62
  72
  83
  95
  108
  121
  136
  150
  166
  182
  199
  216
  234
  253
  272
  292
  313
  335
  357
  380
  404
  429
  455
  482
  510
  540
Net income, $m
  31
  81
  98
  119
  142
  167
  195
  225
  257
  292
  328
  367
  407
  449
  492
  538
  585
  633
  684
  736
  790
  846
  905
  965
  1,028
  1,093
  1,160
  1,230
  1,304
  1,380
  1,459

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  8
  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
  5,871
  7,853
  10,273
  13,175
  16,591
  20,544
  25,053
  30,127
  35,769
  41,977
  48,743
  56,058
  63,909
  72,285
  81,173
  90,561
  100,440
  110,804
  121,647
  132,970
  144,773
  157,064
  169,849
  183,142
  196,958
  211,314
  226,234
  241,741
  257,862
  274,628
  292,072
Adjusted assets (=assets-cash), $m
  5,863
  7,853
  10,273
  13,175
  16,591
  20,544
  25,053
  30,127
  35,769
  41,977
  48,743
  56,058
  63,909
  72,285
  81,173
  90,561
  100,440
  110,804
  121,647
  132,970
  144,773
  157,064
  169,849
  183,142
  196,958
  211,314
  226,234
  241,741
  257,862
  274,628
  292,072
Revenue / Adjusted assets
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
  0.142
Average production assets, $m
  4,668
  6,241
  8,165
  10,471
  13,186
  16,328
  19,912
  23,944
  28,428
  33,362
  38,739
  44,553
  50,793
  57,450
  64,514
  71,975
  79,827
  88,064
  96,682
  105,681
  115,062
  124,830
  134,992
  145,556
  156,537
  167,947
  179,805
  192,129
  204,942
  218,268
  232,132
Working capital, $m
  0
  -11
  -15
  -19
  -24
  -29
  -36
  -43
  -51
  -60
  -69
  -80
  -91
  -103
  -115
  -129
  -143
  -157
  -173
  -189
  -206
  -223
  -241
  -260
  -280
  -300
  -321
  -343
  -366
  -390
  -415
Total debt, $m
  3,110
  4,298
  5,746
  7,481
  9,523
  11,888
  14,584
  17,618
  20,992
  24,704
  28,750
  33,124
  37,820
  42,828
  48,143
  53,757
  59,665
  65,863
  72,347
  79,118
  86,177
  93,526
  101,172
  109,121
  117,383
  125,968
  134,890
  144,163
  153,804
  163,830
  174,261
Total liabilities, $m
  3,508
  4,696
  6,144
  7,879
  9,921
  12,286
  14,982
  18,016
  21,390
  25,102
  29,148
  33,522
  38,218
  43,226
  48,541
  54,155
  60,063
  66,261
  72,745
  79,516
  86,575
  93,924
  101,570
  109,519
  117,781
  126,366
  135,288
  144,561
  154,202
  164,228
  174,659
Total equity, $m
  2,363
  3,157
  4,130
  5,297
  6,669
  8,259
  10,071
  12,111
  14,379
  16,875
  19,595
  22,535
  25,692
  29,059
  32,631
  36,405
  40,377
  44,543
  48,902
  53,454
  58,199
  63,140
  68,279
  73,623
  79,177
  84,948
  90,946
  97,180
  103,661
  110,401
  117,413
Total liabilities and equity, $m
  5,871
  7,853
  10,274
  13,176
  16,590
  20,545
  25,053
  30,127
  35,769
  41,977
  48,743
  56,057
  63,910
  72,285
  81,172
  90,560
  100,440
  110,804
  121,647
  132,970
  144,774
  157,064
  169,849
  183,142
  196,958
  211,314
  226,234
  241,741
  257,863
  274,629
  292,072
Debt-to-equity ratio
  1.316
  1.360
  1.390
  1.410
  1.430
  1.440
  1.450
  1.450
  1.460
  1.460
  1.470
  1.470
  1.470
  1.470
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
  1.480
Adjusted equity ratio
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  31
  81
  98
  119
  142
  167
  195
  225
  257
  292
  328
  367
  407
  449
  492
  538
  585
  633
  684
  736
  790
  846
  905
  965
  1,028
  1,093
  1,160
  1,230
  1,304
  1,380
  1,459
Depreciation, amort., depletion, $m
  220
  294
  385
  494
  622
  770
  939
  1,129
  1,341
  1,574
  1,827
  2,102
  2,396
  2,710
  3,043
  3,395
  3,765
  4,154
  4,560
  4,985
  5,427
  5,888
  6,368
  6,866
  7,384
  7,922
  8,481
  9,063
  9,667
  10,296
  10,950
Funds from operations, $m
  240
  375
  484
  613
  763
  937
  1,134
  1,354
  1,598
  1,865
  2,156
  2,468
  2,803
  3,159
  3,535
  3,933
  4,350
  4,787
  5,244
  5,721
  6,218
  6,735
  7,272
  7,831
  8,411
  9,015
  9,641
  10,293
  10,971
  11,675
  12,409
Change in working capital, $m
  1
  -3
  -3
  -4
  -5
  -6
  -6
  -7
  -8
  -9
  -10
  -10
  -11
  -12
  -13
  -13
  -14
  -15
  -15
  -16
  -17
  -17
  -18
  -19
  -20
  -20
  -21
  -22
  -23
  -24
  -25
Cash from operations, $m
  239
  378
  487
  617
  768
  943
  1,140
  1,362
  1,606
  1,874
  2,165
  2,479
  2,814
  3,171
  3,548
  3,946
  4,364
  4,802
  5,260
  5,737
  6,235
  6,752
  7,290
  7,850
  8,431
  9,035
  9,663
  10,315
  10,994
  11,699
  12,433
Maintenance CAPEX, $m
  0
  -220
  -294
  -385
  -494
  -622
  -770
  -939
  -1,129
  -1,341
  -1,574
  -1,827
  -2,102
  -2,396
  -2,710
  -3,043
  -3,395
  -3,765
  -4,154
  -4,560
  -4,985
  -5,427
  -5,888
  -6,368
  -6,866
  -7,384
  -7,922
  -8,481
  -9,063
  -9,667
  -10,296
New CAPEX, $m
  -1,488
  -1,573
  -1,924
  -2,306
  -2,714
  -3,142
  -3,584
  -4,033
  -4,484
  -4,934
  -5,378
  -5,814
  -6,240
  -6,657
  -7,064
  -7,461
  -7,852
  -8,237
  -8,618
  -8,999
  -9,381
  -9,768
  -10,162
  -10,565
  -10,980
  -11,410
  -11,858
  -12,324
  -12,813
  -13,325
  -13,864
Cash from investing activities, $m
  -1,615
  -1,793
  -2,218
  -2,691
  -3,208
  -3,764
  -4,354
  -4,972
  -5,613
  -6,275
  -6,952
  -7,641
  -8,342
  -9,053
  -9,774
  -10,504
  -11,247
  -12,002
  -12,772
  -13,559
  -14,366
  -15,195
  -16,050
  -16,933
  -17,846
  -18,794
  -19,780
  -20,805
  -21,876
  -22,992
  -24,160
Free cash flow, $m
  -1,376
  -1,416
  -1,732
  -2,075
  -2,440
  -2,821
  -3,213
  -3,610
  -4,007
  -4,400
  -4,786
  -5,162
  -5,528
  -5,882
  -6,225
  -6,558
  -6,883
  -7,200
  -7,512
  -7,822
  -8,132
  -8,443
  -8,759
  -9,083
  -9,415
  -9,759
  -10,117
  -10,491
  -10,882
  -11,293
  -11,726
Issuance/(repayment) of debt, $m
  808
  1,188
  1,448
  1,735
  2,042
  2,364
  2,696
  3,034
  3,374
  3,712
  4,046
  4,374
  4,695
  5,009
  5,315
  5,614
  5,908
  6,197
  6,484
  6,771
  7,059
  7,350
  7,646
  7,949
  8,262
  8,585
  8,922
  9,273
  9,641
  10,026
  10,431
Issuance/(repurchase) of shares, $m
  751
  721
  875
  1,048
  1,231
  1,422
  1,618
  1,815
  2,011
  2,204
  2,392
  2,574
  2,750
  2,918
  3,080
  3,236
  3,387
  3,533
  3,675
  3,815
  3,955
  4,094
  4,235
  4,379
  4,526
  4,679
  4,838
  5,003
  5,177
  5,360
  5,553
Cash from financing (excl. dividends), $m  
  1,533
  1,909
  2,323
  2,783
  3,273
  3,786
  4,314
  4,849
  5,385
  5,916
  6,438
  6,948
  7,445
  7,927
  8,395
  8,850
  9,295
  9,730
  10,159
  10,586
  11,014
  11,444
  11,881
  12,328
  12,788
  13,264
  13,760
  14,276
  14,818
  15,386
  15,984
Total cash flow (excl. dividends), $m
  157
  493
  591
  708
  834
  965
  1,101
  1,239
  1,377
  1,515
  1,652
  1,786
  1,917
  2,045
  2,170
  2,292
  2,412
  2,530
  2,647
  2,764
  2,882
  3,000
  3,121
  3,245
  3,373
  3,505
  3,642
  3,786
  3,936
  4,093
  4,259
Retained Cash Flow (-), $m
  -824
  -802
  -973
  -1,167
  -1,373
  -1,589
  -1,813
  -2,040
  -2,268
  -2,495
  -2,720
  -2,941
  -3,156
  -3,367
  -3,573
  -3,774
  -3,971
  -4,166
  -4,359
  -4,552
  -4,745
  -4,941
  -5,140
  -5,344
  -5,554
  -5,771
  -5,998
  -6,234
  -6,481
  -6,740
  -7,012
Prev. year cash balance distribution, $m
 
  8
  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
 
  -301
  -382
  -458
  -539
  -624
  -712
  -801
  -891
  -980
  -1,068
  -1,155
  -1,239
  -1,322
  -1,403
  -1,482
  -1,560
  -1,636
  -1,712
  -1,787
  -1,863
  -1,940
  -2,018
  -2,098
  -2,181
  -2,266
  -2,355
  -2,448
  -2,545
  -2,647
  -2,754
Discount rate, %
 
  9.70
  10.19
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.38
  29.79
  31.28
  32.85
  34.49
  36.21
  38.03
  39.93
PV of cash for distribution, $m
 
  -274
  -315
  -338
  -352
  -357
  -353
  -340
  -320
  -294
  -263
  -230
  -196
  -164
  -134
  -106
  -83
  -62
  -46
  -33
  -23
  -16
  -10
  -7
  -4
  -3
  -1
  -1
  0
  0
  0
Current shareholders' claim on cash, %
  100
  90.0
  81.7
  74.8
  69.0
  64.0
  59.7
  56.1
  52.9
  50.1
  47.6
  45.4
  43.5
  41.8
  40.2
  38.8
  37.6
  36.4
  35.3
  34.4
  33.5
  32.6
  31.9
  31.1
  30.4
  29.8
  29.2
  28.6
  28.1
  27.6
  27.1

Sun Communities, Inc. operates as a real estate investment trust (REIT). It owns, operates, and develops manufactured housing communities in the midwestern, southern, and southeastern United States. As of April 1, 2011, it owned and operated a portfolio of 136 communities comprising approximately 47,600 developed sites. As a REIT, it would not be subject to federal tax to the extent that it distributes at least 90% of its taxable income to its shareholders. The company, through its subsidiary, Sun Home Services, Inc., also involves in marketing, selling, and leasing new and pre-owned homes. Sun Communities, Inc. was founded in 1975 and is headquartered in Southfield, Michigan.

FINANCIAL RATIOS  of  Sun Communities (SUI)

Valuation Ratios
P/E Ratio 209.7
Price to Sales 7.8
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 27.2
Price to Free Cash Flow -5.2
Growth Rates
Sales Growth Rate 23.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 381.6%
Cap. Spend. - 3 Yr. Gr. Rate 64.6%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 131.6%
Total Debt to Equity 131.6%
Interest Coverage 1
Management Effectiveness
Return On Assets 3%
Ret/ On Assets - 3 Yr. Avg. 4.7%
Return On Total Capital 0.7%
Ret/ On T. Cap. - 3 Yr. Avg. 2.3%
Return On Equity 1.6%
Return On Equity - 3 Yr. Avg. 6.5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 58.5%
Gross Margin - 3 Yr. Avg. 58.9%
EBITDA Margin 44.6%
EBITDA Margin - 3 Yr. Avg. 51.9%
Operating Margin 19.2%
Oper. Margin - 3 Yr. Avg. 20.1%
Pre-Tax Margin 3.7%
Pre-Tax Margin - 3 Yr. Avg. 11.5%
Net Profit Margin 3.7%
Net Profit Margin - 3 Yr. Avg. 11.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0.2%
Payout Ratio 625.8%

SUI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SUI stock intrinsic value calculation we used $834 million for the last fiscal year's total revenue generated by Sun Communities. The default revenue input number comes from 2016 income statement of Sun Communities. 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 SUI stock valuation model: a) initial revenue growth rate of 33.7% 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 9.7%, whose default value for SUI is calculated based on our internal credit rating of Sun Communities, 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 Sun Communities.
    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 SUI stock the variable cost ratio is equal to 77.8%.

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 SUI 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 4.4% for Sun Communities.

Corporate tax rate of 27% is the nominal tax rate for Sun Communities. 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 SUI 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 SUI are equal to 559.7%.

Life of production assets of 21.2 years is the average useful life of capital assets used in Sun Communities 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 SUI is equal to -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 - $2363 million for Sun Communities - 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 73.115 million for Sun Communities 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 Sun Communities at the current share price and the inputted number of shares is $6.5 billion.

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COMPANY NEWS

▶ Sun Communities reports 2Q results   [Jul-26-17 07:59PM  Associated Press]
▶ Sun Communities reports 1Q results   [Apr-27-17 09:20AM  Associated Press]
▶ Sun Communities, Inc. Declares First Quarter 2017 Dividends   [Mar-03-17 06:32AM  GlobeNewswire]
▶ Sun Communities reports 4Q results   [09:31AM  Associated Press]
▶ Is Sun Communities Inc (SUI) A Good Stock To Buy?   [Dec-13-16 11:24AM  at Insider Monkey]
▶ Is First Solar, Inc. (FSLR) A Good Stock To Buy?   [Nov-29-16 09:20AM  at Insider Monkey]
Stock chart of SUI Financial statements of SUI
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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