Intrinsic value of Supervalu - SVU

Previous Close

$15.95

  Intrinsic Value

$2,391

stock screener

  Rating & Target

str. buy

+999%

Previous close

$15.95

 
Intrinsic value

$2,391

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of SVU 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 2017), $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 0.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -3.31
  35.50
  32.45
  29.71
  27.23
  25.01
  23.01
  21.21
  19.59
  18.13
  16.82
  15.63
  14.57
  13.61
  12.75
  11.98
  11.28
  10.65
  10.09
  9.58
  9.12
  8.71
  8.34
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.60
  6.44
Revenue, $m
  12,480
  16,910
  22,398
  29,051
  36,963
  46,208
  56,840
  68,895
  82,391
  97,328
  113,695
  131,470
  150,627
  171,134
  192,958
  216,069
  240,441
  266,052
  292,888
  320,940
  350,210
  380,707
  412,447
  445,458
  479,772
  515,433
  552,491
  591,003
  631,035
  672,659
  715,955
Variable operating expenses, $m
 
  12,336
  16,316
  21,142
  26,881
  33,586
  41,298
  50,042
  59,830
  70,664
  82,535
  95,357
  109,252
  124,125
  139,954
  156,717
  174,395
  192,971
  212,435
  232,781
  254,011
  276,131
  299,153
  323,095
  347,984
  373,849
  400,728
  428,661
  457,696
  487,887
  519,290
Fixed operating expenses, $m
 
  3,338
  3,422
  3,507
  3,595
  3,685
  3,777
  3,872
  3,968
  4,068
  4,169
  4,273
  4,380
  4,490
  4,602
  4,717
  4,835
  4,956
  5,080
  5,207
  5,337
  5,470
  5,607
  5,747
  5,891
  6,038
  6,189
  6,344
  6,503
  6,665
  6,832
Total operating expenses, $m
  12,297
  15,674
  19,738
  24,649
  30,476
  37,271
  45,075
  53,914
  63,798
  74,732
  86,704
  99,630
  113,632
  128,615
  144,556
  161,434
  179,230
  197,927
  217,515
  237,988
  259,348
  281,601
  304,760
  328,842
  353,875
  379,887
  406,917
  435,005
  464,199
  494,552
  526,122
Operating income, $m
  183
  1,236
  2,660
  4,402
  6,487
  8,937
  11,765
  14,982
  18,593
  22,596
  26,990
  31,840
  36,995
  42,519
  48,401
  54,635
  61,212
  68,126
  75,373
  82,952
  90,862
  99,106
  107,688
  116,615
  125,897
  135,546
  145,574
  155,998
  166,836
  178,107
  189,833
EBITDA, $m
  390
  1,429
  2,892
  4,682
  6,825
  9,341
  12,246
  15,550
  19,258
  23,369
  27,882
  32,788
  38,082
  43,753
  49,793
  56,193
  62,946
  70,045
  77,486
  85,267
  93,388
  101,852
  110,663
  119,828
  129,358
  139,263
  149,559
  160,261
  171,388
  182,959
  194,998
Interest expense (income), $m
  156
  113
  174
  274
  396
  541
  709
  904
  1,124
  1,371
  1,643
  1,943
  2,267
  2,617
  2,992
  3,391
  3,813
  4,258
  4,726
  5,217
  5,729
  6,264
  6,821
  7,401
  8,004
  8,631
  9,283
  9,960
  10,664
  11,395
  12,156
Earnings before tax, $m
  7
  1,123
  2,485
  4,127
  6,091
  8,396
  11,056
  14,079
  17,469
  21,226
  25,347
  29,897
  34,728
  39,901
  45,409
  51,244
  57,398
  63,867
  70,647
  77,735
  85,133
  92,842
  100,866
  109,214
  117,893
  126,914
  136,291
  146,038
  156,172
  166,712
  177,678
Tax expense, $m
  -20
  303
  671
  1,114
  1,645
  2,267
  2,985
  3,801
  4,717
  5,731
  6,844
  8,072
  9,377
  10,773
  12,261
  13,836
  15,498
  17,244
  19,075
  20,989
  22,986
  25,067
  27,234
  29,488
  31,831
  34,267
  36,799
  39,430
  42,166
  45,012
  47,973
Net income, $m
  650
  820
  1,814
  3,013
  4,447
  6,129
  8,071
  10,277
  12,752
  15,495
  18,503
  21,825
  25,351
  29,128
  33,149
  37,408
  41,901
  46,623
  51,572
  56,747
  62,147
  67,774
  73,632
  79,726
  86,062
  92,647
  99,492
  106,608
  114,006
  121,700
  129,705

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  332
  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
  3,580
  4,401
  5,830
  7,561
  9,621
  12,027
  14,794
  17,932
  21,445
  25,333
  29,593
  34,219
  39,205
  44,543
  50,223
  56,239
  62,582
  69,248
  76,233
  83,535
  91,153
  99,091
  107,352
  115,944
  124,876
  134,158
  143,803
  153,827
  164,246
  175,080
  186,350
Adjusted assets (=assets-cash), $m
  3,248
  4,401
  5,830
  7,561
  9,621
  12,027
  14,794
  17,932
  21,445
  25,333
  29,593
  34,219
  39,205
  44,543
  50,223
  56,239
  62,582
  69,248
  76,233
  83,535
  91,153
  99,091
  107,352
  115,944
  124,876
  134,158
  143,803
  153,827
  164,246
  175,080
  186,350
Revenue / Adjusted assets
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
  3.842
Average production assets, $m
  545
  744
  986
  1,278
  1,626
  2,033
  2,501
  3,031
  3,625
  4,282
  5,003
  5,785
  6,628
  7,530
  8,490
  9,507
  10,579
  11,706
  12,887
  14,121
  15,409
  16,751
  18,148
  19,600
  21,110
  22,679
  24,310
  26,004
  27,766
  29,597
  31,502
Working capital, $m
  312
  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 debt, $m
  1,475
  2,232
  3,518
  5,076
  6,930
  9,095
  11,586
  14,410
  17,571
  21,070
  24,904
  29,068
  33,556
  38,360
  43,472
  48,886
  54,595
  60,595
  66,881
  73,452
  80,309
  87,453
  94,888
  102,621
  110,659
  119,013
  127,694
  136,715
  146,093
  155,843
  165,986
Total liabilities, $m
  3,204
  3,961
  5,247
  6,805
  8,659
  10,824
  13,315
  16,139
  19,300
  22,799
  26,633
  30,797
  35,285
  40,089
  45,201
  50,615
  56,324
  62,324
  68,610
  75,181
  82,038
  89,182
  96,617
  104,350
  112,388
  120,742
  129,423
  138,444
  147,822
  157,572
  167,715
Total equity, $m
  376
  440
  583
  756
  962
  1,203
  1,479
  1,793
  2,144
  2,533
  2,959
  3,422
  3,921
  4,454
  5,022
  5,624
  6,258
  6,925
  7,623
  8,353
  9,115
  9,909
  10,735
  11,594
  12,488
  13,416
  14,380
  15,383
  16,425
  17,508
  18,635
Total liabilities and equity, $m
  3,580
  4,401
  5,830
  7,561
  9,621
  12,027
  14,794
  17,932
  21,444
  25,332
  29,592
  34,219
  39,206
  44,543
  50,223
  56,239
  62,582
  69,249
  76,233
  83,534
  91,153
  99,091
  107,352
  115,944
  124,876
  134,158
  143,803
  153,827
  164,247
  175,080
  186,350
Debt-to-equity ratio
  3.923
  5.070
  6.030
  6.710
  7.200
  7.560
  7.830
  8.040
  8.190
  8.320
  8.420
  8.490
  8.560
  8.610
  8.660
  8.690
  8.720
  8.750
  8.770
  8.790
  8.810
  8.830
  8.840
  8.850
  8.860
  8.870
  8.880
  8.890
  8.890
  8.900
  8.910
Adjusted equity ratio
  0.014
  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
  650
  820
  1,814
  3,013
  4,447
  6,129
  8,071
  10,277
  12,752
  15,495
  18,503
  21,825
  25,351
  29,128
  33,149
  37,408
  41,901
  46,623
  51,572
  56,747
  62,147
  67,774
  73,632
  79,726
  86,062
  92,647
  99,492
  106,608
  114,006
  121,700
  129,705
Depreciation, amort., depletion, $m
  207
  193
  233
  281
  338
  404
  481
  568
  665
  773
  891
  948
  1,086
  1,234
  1,392
  1,559
  1,734
  1,919
  2,113
  2,315
  2,526
  2,746
  2,975
  3,213
  3,461
  3,718
  3,985
  4,263
  4,552
  4,852
  5,164
Funds from operations, $m
  376
  1,013
  2,047
  3,293
  4,784
  6,534
  8,552
  10,845
  13,417
  16,268
  19,394
  22,773
  26,438
  30,362
  34,541
  38,967
  43,635
  48,542
  53,685
  59,062
  64,673
  70,520
  76,607
  82,939
  89,522
  96,365
  103,478
  110,871
  118,557
  126,552
  134,869
Change in working capital, $m
  15
  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 operations, $m
  361
  1,013
  2,047
  3,293
  4,784
  6,534
  8,552
  10,845
  13,417
  16,268
  19,394
  22,773
  26,438
  30,362
  34,541
  38,967
  43,635
  48,542
  53,685
  59,062
  64,673
  70,520
  76,607
  82,939
  89,522
  96,365
  103,478
  110,871
  118,557
  126,552
  134,869
Maintenance CAPEX, $m
  0
  -89
  -122
  -162
  -210
  -267
  -333
  -410
  -497
  -594
  -702
  -820
  -948
  -1,086
  -1,234
  -1,392
  -1,559
  -1,734
  -1,919
  -2,113
  -2,315
  -2,526
  -2,746
  -2,975
  -3,213
  -3,461
  -3,718
  -3,985
  -4,263
  -4,552
  -4,852
New CAPEX, $m
  -182
  -199
  -241
  -293
  -348
  -407
  -468
  -530
  -594
  -657
  -720
  -782
  -843
  -902
  -960
  -1,017
  -1,072
  -1,127
  -1,181
  -1,234
  -1,288
  -1,342
  -1,397
  -1,452
  -1,510
  -1,569
  -1,631
  -1,695
  -1,761
  -1,831
  -1,905
Cash from investing activities, $m
  1,021
  -288
  -363
  -455
  -558
  -674
  -801
  -940
  -1,091
  -1,251
  -1,422
  -1,602
  -1,791
  -1,988
  -2,194
  -2,409
  -2,631
  -2,861
  -3,100
  -3,347
  -3,603
  -3,868
  -4,143
  -4,427
  -4,723
  -5,030
  -5,349
  -5,680
  -6,024
  -6,383
  -6,757
Free cash flow, $m
  1,382
  724
  1,684
  2,839
  4,227
  5,860
  7,751
  9,905
  12,327
  15,016
  17,972
  21,171
  24,647
  28,374
  32,346
  36,558
  41,004
  45,681
  50,585
  55,715
  61,070
  66,652
  72,465
  78,512
  84,799
  91,335
  98,129
  105,191
  112,533
  120,168
  128,112
Issuance/(repayment) of debt, $m
  -1,097
  783
  1,285
  1,559
  1,853
  2,166
  2,491
  2,824
  3,161
  3,499
  3,834
  4,164
  4,488
  4,804
  5,112
  5,414
  5,709
  5,999
  6,286
  6,571
  6,857
  7,144
  7,435
  7,733
  8,038
  8,354
  8,681
  9,022
  9,378
  9,751
  10,142
Issuance/(repurchase) of shares, $m
  3
  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  
  -1,107
  783
  1,285
  1,559
  1,853
  2,166
  2,491
  2,824
  3,161
  3,499
  3,834
  4,164
  4,488
  4,804
  5,112
  5,414
  5,709
  5,999
  6,286
  6,571
  6,857
  7,144
  7,435
  7,733
  8,038
  8,354
  8,681
  9,022
  9,378
  9,751
  10,142
Total cash flow (excl. dividends), $m
  275
  1,507
  2,969
  4,398
  6,080
  8,026
  10,241
  12,729
  15,488
  18,515
  21,806
  25,335
  29,134
  33,177
  37,458
  41,972
  46,713
  51,680
  56,871
  62,286
  67,927
  73,796
  79,900
  86,245
  92,838
  99,689
  106,810
  114,213
  121,911
  129,919
  138,254
Retained Cash Flow (-), $m
  -817
  -370
  -143
  -173
  -206
  -241
  -277
  -314
  -351
  -389
  -426
  -463
  -499
  -534
  -568
  -602
  -634
  -667
  -698
  -730
  -762
  -794
  -826
  -859
  -893
  -928
  -965
  -1,002
  -1,042
  -1,083
  -1,127
Prev. year cash balance distribution, $m
 
  306
  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
 
  1,443
  2,826
  4,224
  5,874
  7,785
  9,965
  12,415
  15,137
  18,127
  21,380
  24,873
  28,636
  32,644
  36,890
  41,370
  46,079
  51,014
  56,173
  61,556
  67,165
  73,003
  79,074
  85,385
  91,945
  98,761
  105,845
  113,210
  120,869
  128,836
  137,127
Discount rate, %
 
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.85
  11.40
  11.97
  12.57
  13.19
  13.85
  14.55
  15.27
  16.04
  16.84
  17.68
  18.57
  19.49
  20.47
  21.49
  22.57
  23.69
  24.88
  26.12
  27.43
  28.80
  30.24
  31.75
  33.34
PV of cash for distribution, $m
 
  1,335
  2,400
  3,268
  4,104
  4,868
  5,522
  6,035
  6,383
  6,554
  6,546
  6,363
  6,036
  5,585
  5,043
  4,443
  3,820
  3,204
  2,620
  2,088
  1,621
  1,224
  899
  642
  444
  298
  194
  122
  74
  43
  24
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

Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company's segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market stores.

FINANCIAL RATIOS  of  Supervalu (SVU)

Valuation Ratios
P/E Ratio 0.9
Price to Sales 0
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 1.7
Price to Free Cash Flow 3.4
Growth Rates
Sales Growth Rate -3.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 15.2%
Cap. Spend. - 3 Yr. Gr. Rate 10.4%
Financial Strength
Quick Ratio 13
Current Ratio 0
LT Debt to Equity 385.4%
Total Debt to Equity 392.3%
Interest Coverage 1
Management Effectiveness
Return On Assets 31.5%
Ret/ On Assets - 3 Yr. Avg. 17.2%
Return On Total Capital 33.1%
Ret/ On T. Cap. - 3 Yr. Avg. 17.1%
Return On Equity -2000%
Return On Equity - 3 Yr. Avg. -686.8%
Asset Turnover 3.1
Profitability Ratios
Gross Margin 14.3%
Gross Margin - 3 Yr. Avg. 14.4%
EBITDA Margin 3%
EBITDA Margin - 3 Yr. Avg. 3.3%
Operating Margin 1.5%
Oper. Margin - 3 Yr. Avg. 1.9%
Pre-Tax Margin 0.1%
Pre-Tax Margin - 3 Yr. Avg. 0.3%
Net Profit Margin 5.2%
Net Profit Margin - 3 Yr. Avg. 2.7%
Effective Tax Rate -285.7%
Eff/ Tax Rate - 3 Yr. Avg. -123.9%
Payout Ratio 0%

SVU stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SVU stock intrinsic value calculation we used $12480 million for the last fiscal year's total revenue generated by Supervalu. The default revenue input number comes from 2017 income statement of Supervalu. 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 SVU stock valuation model: a) initial revenue growth rate of 35.5% 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 8.1%, whose default value for SVU is calculated based on our internal credit rating of Supervalu, 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 Supervalu.
    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 SVU stock the variable cost ratio is equal to 73.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3257 million in the base year in the intrinsic value calculation for SVU 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 7.8% for Supervalu.

Corporate tax rate of 27% is the nominal tax rate for Supervalu. 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 SVU 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 SVU are equal to 4.4%.

Life of production assets of 6.1 years is the average useful life of capital assets used in Supervalu 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 SVU is equal to 0%. 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 - $376 million for Supervalu - 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 38.409 million for Supervalu 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 Supervalu at the current share price and the inputted number of shares is $0.6 billion.

RELATED COMPANIES Price Int.Val. Rating
KR Kroger 22.78 29.51  buy
SPTN SpartanNash 22.34 28.05  hold
SFM Sprouts Farmer 21.67 29.31  str.buy
WMT Wal-Mart Store 96.52 73.54  hold
IMKTA Ingles Markets 24.75 19.01  sell

COMPANY NEWS

▶ Supervalu Holder Dumps $33 Million in Stock   [Nov-22-17 09:02AM  Barrons.com]
▶ Bargain Retailing Play With Amazon Immunity   [Nov-21-17 06:14AM  Forbes]
▶ Goldman Sachs: Dollar Tree Is the Top Pick in Food Retail   [Nov-17-17 10:32AM  Market Realist]
▶ The Best Food Retail Stock Is...Dollar Tree?   [Nov-14-17 12:44PM  Benzinga]
▶ SUPERVALU Announces Executive Leadership Changes   [Nov-13-17 05:08PM  Business Wire]
▶ Why SUPERVALU INC. Stock Fell 25% Last Month   [Nov-10-17 12:07PM  Motley Fool]
▶ Analysts Raise Sprouts Price Target after 3Q17 Results   [Nov-06-17 05:10PM  Market Realist]
▶ Sprouts Raises Guidance after Strong 3Q17   [03:40PM  Market Realist]
▶ Dissident investor pushes Supervalu for store sales, new leaders   [Oct-26-17 03:50PM  American City Business Journals]
▶ [$$] Supervalu Inc. Faces Push From Activist Investor Blackwells Capital   [Oct-25-17 11:20PM  The Wall Street Journal]
▶ Your Key Consumer Sector Updates from Last Week   [Oct-23-17 11:18AM  Market Realist]
▶ How SuperValu Topped Fiscal 2Q18 Earnings Expectations   [Oct-20-17 04:35PM  Market Realist]
▶ Downgrade Is the Latest Sign of SuperValu Weakness   [Oct-19-17 04:30PM  TheStreet.com]
▶ Supervalu buys Pompano Beach grocery co-op for $180M   [02:15PM  American City Business Journals]
▶ Supervalu beats analyst estimates, buys Florida grocery co-op for $180M   [08:23AM  American City Business Journals]
▶ SuperValu reports 2Q loss   [06:44AM  Associated Press]
▶ Consumer Sector Earnings Coverage for October 1620, 2017   [Oct-16-17 01:35PM  Market Realist]
▶ Whats Driving Supervalus Stock Down?   [09:10AM  Market Realist]
▶ Supervalu Focuses on Wholesale to Boost Sales   [Oct-13-17 06:06PM  Market Realist]
▶ Why Its Important to Buy Costco (COST) Stock Right Now   [Sep-26-17 03:18PM  InvestorPlace]
▶ SuperValu Stock Has Fallen 40% YTD: Is It Justified?   [Sep-11-17 03:06PM  Market Realist]
▶ Why SuperValu Inc. Stock Dropped 20% in August   [Sep-05-17 06:53PM  Motley Fool]
▶ Supervalu CEO: We're building Cub Foods, not selling it   [Aug-07-17 08:30AM  American City Business Journals]
▶ No Rating Changes for Whole Foods after 3Q17 Results   [Aug-01-17 11:35AM  Market Realist]
Financial statements of SVU
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.