Intrinsic value of TravelCenters of America - TA

Previous Close

$3.50

  Intrinsic Value

$234.15

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

+193%

Previous close

$3.50

 
Intrinsic value

$234.15

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

+193%

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

We calculate the intrinsic value of TA 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 0.1

 

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, %
  -5.81
  21.00
  19.40
  17.96
  16.66
  15.50
  14.45
  13.50
  12.65
  11.89
  11.20
  10.58
  10.02
  9.52
  9.07
  8.66
  8.29
  7.96
  7.67
  7.40
  7.16
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.03
  5.93
  5.84
  5.75
Revenue, $m
  5,511
  6,668
  7,962
  9,392
  10,957
  12,655
  14,483
  16,439
  18,519
  20,721
  23,041
  25,479
  28,032
  30,700
  33,484
  36,383
  39,401
  42,539
  45,801
  49,191
  52,714
  56,375
  60,181
  64,138
  68,255
  72,539
  76,999
  81,645
  86,487
  91,535
  96,802
Variable operating expenses, $m
 
  5,806
  6,931
  8,174
  9,535
  11,011
  12,601
  14,301
  16,109
  18,023
  20,040
  22,151
  24,370
  26,690
  29,110
  31,631
  34,255
  36,983
  39,819
  42,766
  45,829
  49,012
  52,321
  55,761
  59,340
  63,064
  66,942
  70,981
  75,190
  79,579
  84,158
Fixed operating expenses, $m
 
  729
  747
  766
  785
  804
  825
  845
  866
  888
  910
  933
  956
  980
  1,005
  1,030
  1,055
  1,082
  1,109
  1,137
  1,165
  1,194
  1,224
  1,255
  1,286
  1,318
  1,351
  1,385
  1,420
  1,455
  1,491
Total operating expenses, $m
  5,492
  6,535
  7,678
  8,940
  10,320
  11,815
  13,426
  15,146
  16,975
  18,911
  20,950
  23,084
  25,326
  27,670
  30,115
  32,661
  35,310
  38,065
  40,928
  43,903
  46,994
  50,206
  53,545
  57,016
  60,626
  64,382
  68,293
  72,366
  76,610
  81,034
  85,649
Operating income, $m
  20
  133
  284
  452
  637
  840
  1,058
  1,293
  1,544
  1,810
  2,090
  2,395
  2,705
  3,030
  3,369
  3,722
  4,091
  4,474
  4,873
  5,289
  5,720
  6,169
  6,637
  7,123
  7,629
  8,156
  8,706
  9,279
  9,877
  10,501
  11,152
EBITDA, $m
  112
  216
  381
  565
  768
  989
  1,228
  1,485
  1,758
  2,048
  2,355
  2,678
  3,016
  3,371
  3,741
  4,126
  4,528
  4,947
  5,382
  5,835
  6,305
  6,795
  7,305
  7,835
  8,387
  8,962
  9,561
  10,185
  10,837
  11,517
  12,227
Interest expense (income), $m
  30
  30
  50
  73
  99
  126
  156
  189
  223
  260
  299
  340
  383
  428
  476
  525
  576
  629
  685
  743
  803
  865
  930
  997
  1,067
  1,140
  1,216
  1,295
  1,377
  1,463
  1,552
Earnings before tax, $m
  -4
  103
  234
  379
  539
  713
  902
  1,104
  1,320
  1,550
  1,791
  2,055
  2,322
  2,601
  2,893
  3,198
  3,515
  3,845
  4,188
  4,546
  4,918
  5,304
  5,707
  6,126
  6,562
  7,017
  7,490
  7,984
  8,500
  9,038
  9,601
Tax expense, $m
  -2
  28
  63
  102
  145
  193
  244
  298
  357
  418
  484
  555
  627
  702
  781
  863
  949
  1,038
  1,131
  1,227
  1,328
  1,432
  1,541
  1,654
  1,772
  1,894
  2,022
  2,156
  2,295
  2,440
  2,592
Net income, $m
  -2
  75
  171
  277
  393
  521
  658
  806
  964
  1,131
  1,308
  1,500
  1,695
  1,899
  2,112
  2,334
  2,566
  2,807
  3,058
  3,318
  3,590
  3,872
  4,166
  4,472
  4,790
  5,122
  5,468
  5,829
  6,205
  6,598
  7,008

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  61
  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
  1,660
  1,935
  2,310
  2,725
  3,179
  3,671
  4,202
  4,769
  5,373
  6,011
  6,684
  7,392
  8,132
  8,906
  9,714
  10,555
  11,431
  12,341
  13,287
  14,271
  15,293
  16,355
  17,459
  18,607
  19,801
  21,044
  22,338
  23,686
  25,090
  26,555
  28,083
Adjusted assets (=assets-cash), $m
  1,599
  1,935
  2,310
  2,725
  3,179
  3,671
  4,202
  4,769
  5,373
  6,011
  6,684
  7,392
  8,132
  8,906
  9,714
  10,555
  11,431
  12,341
  13,287
  14,271
  15,293
  16,355
  17,459
  18,607
  19,801
  21,044
  22,338
  23,686
  25,090
  26,555
  28,083
Revenue / Adjusted assets
  3.447
  3.446
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
  3.447
Average production assets, $m
  613
  740
  884
  1,043
  1,216
  1,405
  1,608
  1,825
  2,056
  2,300
  2,558
  2,828
  3,112
  3,408
  3,717
  4,039
  4,374
  4,722
  5,084
  5,460
  5,851
  6,258
  6,680
  7,119
  7,576
  8,052
  8,547
  9,063
  9,600
  10,160
  10,745
Working capital, $m
  72
  13
  16
  19
  22
  25
  29
  33
  37
  41
  46
  51
  56
  61
  67
  73
  79
  85
  92
  98
  105
  113
  120
  128
  137
  145
  154
  163
  173
  183
  194
Total debt, $m
  340
  573
  833
  1,120
  1,435
  1,776
  2,144
  2,537
  2,955
  3,398
  3,864
  4,354
  4,868
  5,404
  5,964
  6,547
  7,153
  7,784
  8,440
  9,122
  9,830
  10,566
  11,331
  12,127
  12,954
  13,815
  14,712
  15,646
  16,620
  17,635
  18,693
Total liabilities, $m
  1,108
  1,341
  1,601
  1,888
  2,203
  2,544
  2,912
  3,305
  3,723
  4,166
  4,632
  5,122
  5,636
  6,172
  6,732
  7,315
  7,921
  8,552
  9,208
  9,890
  10,598
  11,334
  12,099
  12,895
  13,722
  14,583
  15,480
  16,414
  17,388
  18,403
  19,461
Total equity, $m
  552
  594
  709
  836
  976
  1,127
  1,290
  1,464
  1,649
  1,845
  2,052
  2,269
  2,497
  2,734
  2,982
  3,240
  3,509
  3,789
  4,079
  4,381
  4,695
  5,021
  5,360
  5,712
  6,079
  6,461
  6,858
  7,272
  7,703
  8,152
  8,621
Total liabilities and equity, $m
  1,660
  1,935
  2,310
  2,724
  3,179
  3,671
  4,202
  4,769
  5,372
  6,011
  6,684
  7,391
  8,133
  8,906
  9,714
  10,555
  11,430
  12,341
  13,287
  14,271
  15,293
  16,355
  17,459
  18,607
  19,801
  21,044
  22,338
  23,686
  25,091
  26,555
  28,082
Debt-to-equity ratio
  0.616
  0.960
  1.170
  1.340
  1.470
  1.580
  1.660
  1.730
  1.790
  1.840
  1.880
  1.920
  1.950
  1.980
  2.000
  2.020
  2.040
  2.050
  2.070
  2.080
  2.090
  2.100
  2.110
  2.120
  2.130
  2.140
  2.150
  2.150
  2.160
  2.160
  2.170
Adjusted equity ratio
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307
  0.307

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2
  75
  171
  277
  393
  521
  658
  806
  964
  1,131
  1,308
  1,500
  1,695
  1,899
  2,112
  2,334
  2,566
  2,807
  3,058
  3,318
  3,590
  3,872
  4,166
  4,472
  4,790
  5,122
  5,468
  5,829
  6,205
  6,598
  7,008
Depreciation, amort., depletion, $m
  92
  83
  97
  113
  131
  149
  170
  191
  214
  239
  265
  283
  311
  341
  372
  404
  437
  472
  508
  546
  585
  626
  668
  712
  758
  805
  855
  906
  960
  1,016
  1,074
Funds from operations, $m
  141
  158
  268
  390
  524
  670
  828
  998
  1,178
  1,370
  1,572
  1,783
  2,006
  2,240
  2,484
  2,738
  3,003
  3,279
  3,566
  3,864
  4,175
  4,498
  4,834
  5,184
  5,548
  5,927
  6,323
  6,735
  7,165
  7,614
  8,083
Change in working capital, $m
  30
  2
  3
  3
  3
  3
  4
  4
  4
  4
  5
  5
  5
  5
  6
  6
  6
  6
  7
  7
  7
  7
  8
  8
  8
  9
  9
  9
  10
  10
  11
Cash from operations, $m
  111
  156
  265
  387
  521
  667
  824
  994
  1,174
  1,366
  1,568
  1,778
  2,001
  2,234
  2,478
  2,732
  2,997
  3,273
  3,559
  3,858
  4,168
  4,491
  4,826
  5,176
  5,540
  5,919
  6,314
  6,726
  7,155
  7,604
  8,072
Maintenance CAPEX, $m
  0
  -61
  -74
  -88
  -104
  -122
  -140
  -161
  -182
  -206
  -230
  -256
  -283
  -311
  -341
  -372
  -404
  -437
  -472
  -508
  -546
  -585
  -626
  -668
  -712
  -758
  -805
  -855
  -906
  -960
  -1,016
New CAPEX, $m
  -330
  -127
  -144
  -159
  -174
  -188
  -203
  -217
  -231
  -244
  -258
  -271
  -283
  -296
  -309
  -322
  -335
  -348
  -362
  -376
  -391
  -406
  -422
  -439
  -457
  -476
  -495
  -516
  -537
  -560
  -585
Cash from investing activities, $m
  -220
  -188
  -218
  -247
  -278
  -310
  -343
  -378
  -413
  -450
  -488
  -527
  -566
  -607
  -650
  -694
  -739
  -785
  -834
  -884
  -937
  -991
  -1,048
  -1,107
  -1,169
  -1,234
  -1,300
  -1,371
  -1,443
  -1,520
  -1,601
Free cash flow, $m
  -109
  -32
  48
  140
  243
  357
  481
  616
  761
  916
  1,080
  1,252
  1,435
  1,627
  1,828
  2,039
  2,258
  2,487
  2,725
  2,973
  3,231
  3,499
  3,778
  4,068
  4,371
  4,686
  5,013
  5,355
  5,712
  6,084
  6,472
Issuance/(repayment) of debt, $m
  0
  233
  260
  287
  315
  341
  368
  393
  418
  443
  467
  490
  513
  536
  560
  583
  607
  631
  656
  682
  708
  736
  765
  796
  828
  861
  897
  934
  973
  1,015
  1,059
Issuance/(repurchase) of shares, $m
  -1
  27
  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
  260
  260
  287
  315
  341
  368
  393
  418
  443
  467
  490
  513
  536
  560
  583
  607
  631
  656
  682
  708
  736
  765
  796
  828
  861
  897
  934
  973
  1,015
  1,059
Total cash flow (excl. dividends), $m
  -111
  228
  308
  427
  557
  698
  849
  1,009
  1,179
  1,358
  1,547
  1,742
  1,948
  2,164
  2,388
  2,622
  2,865
  3,118
  3,381
  3,655
  3,939
  4,235
  4,543
  4,864
  5,198
  5,547
  5,910
  6,289
  6,685
  7,099
  7,531
Retained Cash Flow (-), $m
  -3
  -103
  -115
  -127
  -139
  -151
  -163
  -174
  -185
  -196
  -207
  -217
  -227
  -238
  -248
  -258
  -269
  -280
  -291
  -302
  -314
  -326
  -339
  -352
  -367
  -382
  -397
  -414
  -431
  -450
  -469
Prev. year cash balance distribution, $m
 
  61
  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
 
  186
  193
  300
  418
  547
  686
  835
  994
  1,162
  1,340
  1,525
  1,721
  1,926
  2,140
  2,364
  2,596
  2,838
  3,090
  3,353
  3,625
  3,909
  4,204
  4,512
  4,832
  5,165
  5,513
  5,876
  6,254
  6,649
  7,061
Discount rate, %
 
  6.00
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
PV of cash for distribution, $m
 
  175
  170
  247
  320
  385
  440
  486
  520
  541
  550
  547
  533
  509
  477
  439
  396
  350
  304
  258
  215
  176
  140
  109
  83
  62
  45
  32
  22
  15
  9
Current shareholders' claim on cash, %
  100
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6
  92.6

TravelCenters of America LLC operates and franchises travel center and convenience store locations primarily along the United States interstate highway system. The company operates through two segments, Travel Centers and Convenience Stores. It offers diesel fuel and gasoline, and diesel exhaust fluid; and operates full service restaurants under the Iron Skillet and Country Pride brands, as well as quick service restaurants under Arby's, Burger King, Dunkin' Donuts, Pizza Hut, Popeye's Chicken & Biscuits, Starbuck's Coffee, Subway, and Taco Bell brand names. The company also operates truck repair and maintenance facilities that offer oil changes, wheel alignments, and tire repair services; and diagnostics and repair of air conditioning, brakes, and electrical systems. In addition, it provides RoadSquad, a roadside truck service program; RoadSquad Connect, a centralized call center; and RoadSquad OnSite, a service program for truck and trailer repair services, as well as operates travel and convenience stores that offer packaged food and snack items, beverages, non-prescription drug and beauty supplies, batteries, automobile accessories, tobacco products, and music and video products. Further, the company offers driver services, including information center; Reserve-It parking program; a banking desk; Wi-Fi Internet access; a laundry area; private showers; exercise facilities; and a theater or big screen television room. It serves trucking fleets and their drivers, independent truck drivers, and highway and local motorists. As of December 31, 2015, the company operated 176 owned and franchised travel centers under the TravelCenters of America brand; and 76 owned and franchised travel centers under the Petro Stopping Centers brand in 43 states of the United States and Canada, as well as 204 convenience stores under the Minit Mart brand. TravelCenters of America LLC was founded in 1992 and is based in Westlake, Ohio.

FINANCIAL RATIOS  of  TravelCenters of America (TA)

Valuation Ratios
P/E Ratio -69.2
Price to Sales 0
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow 1.2
Price to Free Cash Flow -0.6
Growth Rates
Sales Growth Rate -5.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 11.9%
Cap. Spend. - 3 Yr. Gr. Rate 15%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 61.6%
Total Debt to Equity 61.6%
Interest Coverage 1
Management Effectiveness
Return On Assets 0.8%
Ret/ On Assets - 3 Yr. Avg. 3%
Return On Total Capital -0.2%
Ret/ On T. Cap. - 3 Yr. Avg. 3.3%
Return On Equity -0.4%
Return On Equity - 3 Yr. Avg. 5.8%
Asset Turnover 3.4
Profitability Ratios
Gross Margin 26.8%
Gross Margin - 3 Yr. Avg. 22.5%
EBITDA Margin 2.1%
EBITDA Margin - 3 Yr. Avg. 2.3%
Operating Margin 0.3%
Oper. Margin - 3 Yr. Avg. 1%
Pre-Tax Margin -0.1%
Pre-Tax Margin - 3 Yr. Avg. 0.7%
Net Profit Margin -0%
Net Profit Margin - 3 Yr. Avg. 0.4%
Effective Tax Rate 50%
Eff/ Tax Rate - 3 Yr. Avg. 41.6%
Payout Ratio 0%

TA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TA stock intrinsic value calculation we used $5511 million for the last fiscal year's total revenue generated by TravelCenters of America. The default revenue input number comes from 2016 income statement of TravelCenters of America. 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 TA stock valuation model: a) initial revenue growth rate of 21% 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 6%, whose default value for TA is calculated based on our internal credit rating of TravelCenters of America, 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 TravelCenters of America.
    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 TA stock the variable cost ratio is equal to 87.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $711 million in the base year in the intrinsic value calculation for TA 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 8.8% for TravelCenters of America.

Corporate tax rate of 27% is the nominal tax rate for TravelCenters of America. 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 TA 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 TA are equal to 11.1%.

Life of production assets of 10 years is the average useful life of capital assets used in TravelCenters of America 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 TA is equal to 0.2%. 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 - $552 million for TravelCenters of America - 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 33.898 million for TravelCenters of America 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 TravelCenters of America at the current share price and the inputted number of shares is $0.1 billion.

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COMPANY NEWS

▶ TravelCenters reports 2Q loss   [Aug-08-17 05:44PM  Associated Press]
▶ TravelCenters of America Launches Blog Back on the Road   [Aug-03-17 02:51PM  Business Wire]
▶ How Will Falling Gas Prices Impact Gas Station Sales?   [Jul-14-17 09:09AM  Market Realist]
▶ Why TravelCenters of America LLC Stock Got Crushed Today   [May-09-17 05:39PM  Motley Fool]
▶ TravelCenters reports 1Q loss   [08:25AM  Associated Press]
▶ Grand Opening: TA Hebron Opens Bob Evans Restaurant   [Apr-03-17 09:19AM  Business Wire]
▶ TravelCenters of America Announces 2017 Citizen Drivers   [Mar-24-17 02:00PM  Business Wire]
▶ 3 Stocks That Are Ridiculously Cheap Right Now   [Mar-20-17 04:22PM  Motley Fool]
Stock chart of TA Financial statements of TA
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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