Intrinsic value of Tech Data - TECD

Previous Close

$107.29

  Intrinsic Value

$44,811

stock screener

  Rating & Target

str. buy

+999%

Previous close

$107.29

 
Intrinsic value

$44,811

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of TECD 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -0.55
  40.80
  37.22
  34.00
  31.10
  28.49
  26.14
  24.03
  22.12
  20.41
  18.87
  17.48
  16.23
  15.11
  14.10
  13.19
  12.37
  11.63
  10.97
  10.37
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
Revenue, $m
  26,235
  36,939
  50,688
  67,920
  89,042
  114,409
  144,315
  178,987
  218,585
  263,200
  312,865
  367,562
  427,233
  491,792
  561,134
  635,147
  713,721
  796,754
  884,161
  975,879
  1,071,866
  1,172,112
  1,276,632
  1,385,471
  1,498,704
  1,616,437
  1,738,803
  1,865,962
  1,998,105
  2,135,447
  2,278,228
Variable operating expenses, $m
 
  8,894
  12,197
  16,337
  21,412
  27,506
  34,690
  43,020
  52,533
  63,251
  75,183
  88,304
  102,639
  118,149
  134,808
  152,589
  171,465
  191,413
  212,412
  234,447
  257,507
  281,590
  306,700
  332,848
  360,051
  388,335
  417,733
  448,282
  480,028
  513,023
  547,325
Fixed operating expenses, $m
 
  20,603
  21,118
  21,646
  22,187
  22,741
  23,310
  23,893
  24,490
  25,102
  25,730
  26,373
  27,032
  27,708
  28,401
  29,111
  29,839
  30,585
  31,349
  32,133
  32,936
  33,760
  34,604
  35,469
  36,355
  37,264
  38,196
  39,151
  40,130
  41,133
  42,161
Total operating expenses, $m
  25,943
  29,497
  33,315
  37,983
  43,599
  50,247
  58,000
  66,913
  77,023
  88,353
  100,913
  114,677
  129,671
  145,857
  163,209
  181,700
  201,304
  221,998
  243,761
  266,580
  290,443
  315,350
  341,304
  368,317
  396,406
  425,599
  455,929
  487,433
  520,158
  554,156
  589,486
Operating income, $m
  292
  7,442
  17,373
  29,938
  45,444
  64,162
  86,315
  112,075
  141,562
  174,846
  211,952
  252,885
  297,562
  345,935
  397,926
  453,448
  512,417
  574,756
  640,400
  709,299
  781,424
  856,763
  935,328
  1,017,155
  1,102,298
  1,190,838
  1,282,874
  1,378,530
  1,477,948
  1,581,291
  1,688,742
EBITDA, $m
  292
  7,492
  17,433
  30,012
  45,535
  64,273
  86,450
  112,238
  141,757
  175,077
  212,222
  253,179
  297,904
  346,329
  398,375
  453,956
  512,988
  575,393
  641,107
  710,080
  782,281
  857,700
  936,350
  1,018,263
  1,103,497
  1,192,131
  1,284,265
  1,380,023
  1,479,547
  1,583,000
  1,690,564
Interest expense (income), $m
  -22
  35
  104
  199
  319
  467
  644
  852
  1,094
  1,370
  1,681
  2,027
  2,408
  2,824
  3,274
  3,757
  4,273
  4,821
  5,400
  6,009
  6,648
  7,318
  8,016
  8,745
  9,504
  10,293
  11,114
  11,966
  12,853
  13,774
  14,731
Earnings before tax, $m
  257
  7,408
  17,269
  29,738
  45,125
  63,695
  85,671
  111,223
  140,468
  173,476
  210,271
  250,858
  295,154
  343,111
  394,652
  449,690
  508,144
  569,935
  635,000
  703,290
  774,775
  849,445
  927,312
  1,008,410
  1,092,794
  1,180,545
  1,271,761
  1,366,564
  1,465,095
  1,567,517
  1,674,011
Tax expense, $m
  62
  2,000
  4,663
  8,029
  12,184
  17,198
  23,131
  30,030
  37,926
  46,839
  56,773
  67,732
  79,691
  92,640
  106,556
  121,416
  137,199
  153,882
  171,450
  189,888
  209,189
  229,350
  250,374
  272,271
  295,055
  318,747
  343,375
  368,972
  395,576
  423,230
  451,983
Net income, $m
  195
  5,408
  12,607
  21,709
  32,941
  46,498
  62,540
  81,193
  102,542
  126,638
  153,498
  183,127
  215,462
  250,471
  288,096
  328,274
  370,945
  416,052
  463,550
  513,402
  565,586
  620,095
  676,938
  736,139
  797,740
  861,798
  928,385
  997,591
  1,069,520
  1,144,288
  1,222,028

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,126
  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
  7,932
  8,174
  11,217
  15,030
  19,704
  25,317
  31,935
  39,608
  48,370
  58,243
  69,233
  81,337
  94,542
  108,828
  124,172
  140,550
  157,938
  176,312
  195,654
  215,950
  237,191
  259,374
  282,503
  306,588
  331,645
  357,698
  384,776
  412,915
  442,157
  472,549
  504,144
Adjusted assets (=assets-cash), $m
  5,806
  8,174
  11,217
  15,030
  19,704
  25,317
  31,935
  39,608
  48,370
  58,243
  69,233
  81,337
  94,542
  108,828
  124,172
  140,550
  157,938
  176,312
  195,654
  215,950
  237,191
  259,374
  282,503
  306,588
  331,645
  357,698
  384,776
  412,915
  442,157
  472,549
  504,144
Revenue / Adjusted assets
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
Average production assets, $m
  215
  296
  406
  543
  712
  915
  1,155
  1,432
  1,749
  2,106
  2,503
  2,940
  3,418
  3,934
  4,489
  5,081
  5,710
  6,374
  7,073
  7,807
  8,575
  9,377
  10,213
  11,084
  11,990
  12,931
  13,910
  14,928
  15,985
  17,084
  18,226
Working capital, $m
  2,701
  1,330
  1,825
  2,445
  3,206
  4,119
  5,195
  6,444
  7,869
  9,475
  11,263
  13,232
  15,380
  17,705
  20,201
  22,865
  25,694
  28,683
  31,830
  35,132
  38,587
  42,196
  45,959
  49,877
  53,953
  58,192
  62,597
  67,175
  71,932
  76,876
  82,016
Total debt, $m
  1,363
  2,958
  5,696
  9,128
  13,335
  18,387
  24,343
  31,248
  39,134
  48,020
  57,911
  68,804
  80,688
  93,546
  107,356
  122,096
  137,745
  154,282
  171,690
  189,956
  209,073
  229,038
  249,854
  271,530
  294,082
  317,529
  341,899
  367,224
  393,542
  420,895
  449,331
Total liabilities, $m
  5,762
  7,357
  10,095
  13,527
  17,734
  22,786
  28,742
  35,647
  43,533
  52,419
  62,310
  73,203
  85,087
  97,945
  111,755
  126,495
  142,144
  158,681
  176,089
  194,355
  213,472
  233,437
  254,253
  275,929
  298,481
  321,928
  346,298
  371,623
  397,941
  425,294
  453,730
Total equity, $m
  2,170
  817
  1,122
  1,503
  1,970
  2,532
  3,194
  3,961
  4,837
  5,824
  6,923
  8,134
  9,454
  10,883
  12,417
  14,055
  15,794
  17,631
  19,565
  21,595
  23,719
  25,937
  28,250
  30,659
  33,165
  35,770
  38,478
  41,291
  44,216
  47,255
  50,414
Total liabilities and equity, $m
  7,932
  8,174
  11,217
  15,030
  19,704
  25,318
  31,936
  39,608
  48,370
  58,243
  69,233
  81,337
  94,541
  108,828
  124,172
  140,550
  157,938
  176,312
  195,654
  215,950
  237,191
  259,374
  282,503
  306,588
  331,646
  357,698
  384,776
  412,914
  442,157
  472,549
  504,144
Debt-to-equity ratio
  0.628
  3.620
  5.080
  6.070
  6.770
  7.260
  7.620
  7.890
  8.090
  8.240
  8.360
  8.460
  8.530
  8.600
  8.650
  8.690
  8.720
  8.750
  8.780
  8.800
  8.810
  8.830
  8.840
  8.860
  8.870
  8.880
  8.890
  8.890
  8.900
  8.910
  8.910
Adjusted equity ratio
  0.008
  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
  195
  5,408
  12,607
  21,709
  32,941
  46,498
  62,540
  81,193
  102,542
  126,638
  153,498
  183,127
  215,462
  250,471
  288,096
  328,274
  370,945
  416,052
  463,550
  513,402
  565,586
  620,095
  676,938
  736,139
  797,740
  861,798
  928,385
  997,591
  1,069,520
  1,144,288
  1,222,028
Depreciation, amort., depletion, $m
  0
  49
  60
  74
  91
  111
  135
  163
  195
  230
  270
  294
  342
  393
  449
  508
  571
  637
  707
  781
  857
  938
  1,021
  1,108
  1,199
  1,293
  1,391
  1,493
  1,598
  1,708
  1,823
Funds from operations, $m
  657
  5,457
  12,667
  21,783
  33,032
  46,609
  62,675
  81,356
  102,737
  126,868
  153,768
  183,421
  215,804
  250,865
  288,545
  328,782
  371,516
  416,690
  464,257
  514,182
  566,443
  621,033
  677,959
  737,247
  798,939
  863,091
  929,776
  999,084
  1,071,118
  1,145,996
  1,223,850
Change in working capital, $m
  0
  385
  495
  620
  760
  913
  1,077
  1,248
  1,426
  1,606
  1,788
  1,969
  2,148
  2,324
  2,496
  2,664
  2,829
  2,989
  3,147
  3,302
  3,456
  3,609
  3,763
  3,918
  4,076
  4,238
  4,405
  4,578
  4,757
  4,944
  5,140
Cash from operations, $m
  657
  5,072
  12,172
  21,163
  32,272
  45,696
  61,599
  80,107
  101,311
  125,262
  151,980
  181,451
  213,656
  248,540
  286,048
  326,118
  368,687
  413,701
  461,111
  510,881
  562,988
  617,424
  674,196
  733,329
  794,863
  858,852
  925,371
  994,506
  1,066,361
  1,141,052
  1,218,710
Maintenance CAPEX, $m
  0
  -22
  -30
  -41
  -54
  -71
  -92
  -115
  -143
  -175
  -211
  -250
  -294
  -342
  -393
  -449
  -508
  -571
  -637
  -707
  -781
  -857
  -938
  -1,021
  -1,108
  -1,199
  -1,293
  -1,391
  -1,493
  -1,598
  -1,708
New CAPEX, $m
  -39
  -81
  -110
  -138
  -169
  -203
  -239
  -277
  -317
  -357
  -397
  -438
  -477
  -516
  -555
  -592
  -629
  -664
  -699
  -734
  -768
  -802
  -836
  -871
  -906
  -942
  -979
  -1,017
  -1,057
  -1,099
  -1,142
Cash from investing activities, $m
  -42
  -103
  -140
  -179
  -223
  -274
  -331
  -392
  -460
  -532
  -608
  -688
  -771
  -858
  -948
  -1,041
  -1,137
  -1,235
  -1,336
  -1,441
  -1,549
  -1,659
  -1,774
  -1,892
  -2,014
  -2,141
  -2,272
  -2,408
  -2,550
  -2,697
  -2,850
Free cash flow, $m
  615
  4,970
  12,033
  20,984
  32,048
  45,422
  61,268
  79,715
  100,851
  124,730
  151,372
  180,764
  212,884
  247,682
  285,100
  325,077
  367,550
  412,465
  459,774
  509,440
  561,439
  615,764
  672,423
  731,437
  792,848
  856,712
  923,099
  992,098
  1,063,811
  1,138,354
  1,215,860
Issuance/(repayment) of debt, $m
  1,002
  1,968
  2,738
  3,432
  4,207
  5,052
  5,956
  6,905
  7,886
  8,885
  9,891
  10,893
  11,884
  12,858
  13,810
  14,740
  15,649
  16,537
  17,408
  18,266
  19,117
  19,965
  20,816
  21,676
  22,551
  23,448
  24,370
  25,325
  26,317
  27,353
  28,436
Issuance/(repurchase) of shares, $m
  1
  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  
  977
  1,968
  2,738
  3,432
  4,207
  5,052
  5,956
  6,905
  7,886
  8,885
  9,891
  10,893
  11,884
  12,858
  13,810
  14,740
  15,649
  16,537
  17,408
  18,266
  19,117
  19,965
  20,816
  21,676
  22,551
  23,448
  24,370
  25,325
  26,317
  27,353
  28,436
Total cash flow (excl. dividends), $m
  1,594
  6,937
  14,771
  24,416
  36,255
  50,474
  67,224
  86,620
  108,737
  133,616
  161,264
  191,657
  224,768
  260,540
  298,910
  339,817
  383,199
  429,002
  477,182
  527,706
  580,556
  635,729
  693,239
  753,113
  815,400
  880,159
  947,469
  1,017,423
  1,090,128
  1,165,707
  1,244,296
Retained Cash Flow (-), $m
  -164
  -400
  -304
  -381
  -467
  -561
  -662
  -767
  -876
  -987
  -1,099
  -1,210
  -1,320
  -1,429
  -1,534
  -1,638
  -1,739
  -1,837
  -1,934
  -2,030
  -2,124
  -2,218
  -2,313
  -2,408
  -2,506
  -2,605
  -2,708
  -2,814
  -2,924
  -3,039
  -3,160
Prev. year cash balance distribution, $m
 
  1,753
  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
 
  8,290
  14,466
  24,035
  35,788
  49,912
  66,562
  85,853
  107,861
  132,629
  160,165
  190,447
  223,448
  259,111
  297,376
  338,179
  381,460
  427,165
  475,248
  525,676
  578,432
  633,511
  690,926
  750,705
  812,894
  877,554
  944,762
  1,014,609
  1,087,204
  1,162,668
  1,241,136
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  7,948
  13,244
  20,917
  29,467
  38,688
  48,307
  58,001
  67,416
  76,188
  83,968
  90,440
  95,353
  98,519
  99,834
  99,284
  96,937
  92,944
  87,522
  80,939
  73,501
  65,526
  57,329
  49,202
  41,402
  34,138
  27,563
  21,776
  16,821
  12,692
  9,345
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

Tech Data Corporation is a wholesale distributor of technology products. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services. It operates through the segment of distributing technology products, logistics management and other value-added services. It operates in two geographic segments: the Americas and Europe. It provides resellers training and technical support suite of electronic commerce tools customized shipping documents product configuration or integration services and access to financing programs. Its customers include value-added resellers, direct marketers, retailers and corporate resellers who support the diverse technology needs of end users. It sells its products to customers in approximately 100 countries throughout North America, South America, Europe, the Middle East and Africa.

FINANCIAL RATIOS  of  Tech Data (TECD)

Valuation Ratios
P/E Ratio 19.4
Price to Sales 0.1
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 5.8
Price to Free Cash Flow 6.1
Growth Rates
Sales Growth Rate -0.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 14.7%
Cap. Spend. - 3 Yr. Gr. Rate 5.4%
Financial Strength
Quick Ratio 6
Current Ratio 0
LT Debt to Equity 45.6%
Total Debt to Equity 62.8%
Interest Coverage -11
Management Effectiveness
Return On Assets 2.5%
Ret/ On Assets - 3 Yr. Avg. 3%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 8.4%
Return On Equity 9.3%
Return On Equity - 3 Yr. Avg. 10.5%
Asset Turnover 3.7
Profitability Ratios
Gross Margin 5%
Gross Margin - 3 Yr. Avg. 5%
EBITDA Margin 0.9%
EBITDA Margin - 3 Yr. Avg. 1%
Operating Margin 1.1%
Oper. Margin - 3 Yr. Avg. 1.2%
Pre-Tax Margin 1%
Pre-Tax Margin - 3 Yr. Avg. 1.1%
Net Profit Margin 0.7%
Net Profit Margin - 3 Yr. Avg. 0.8%
Effective Tax Rate 24.1%
Eff/ Tax Rate - 3 Yr. Avg. 27.1%
Payout Ratio 0%

TECD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TECD stock intrinsic value calculation we used $26235 million for the last fiscal year's total revenue generated by Tech Data. The default revenue input number comes from 2017 income statement of Tech Data. 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 TECD stock valuation model: a) initial revenue growth rate of 40.8% 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 4.3%, whose default value for TECD is calculated based on our internal credit rating of Tech Data, 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 Tech Data.
    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 TECD stock the variable cost ratio is equal to 24.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $20100 million in the base year in the intrinsic value calculation for TECD stock. These expenses increase with the level of inflation in subsequent years.

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

Corporate tax rate of 27% is the nominal tax rate for Tech Data. 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 TECD 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 TECD are equal to 0.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Tech Data 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 TECD is equal to 3.6%. 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 - $2170 million for Tech Data - 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 38.277 million for Tech Data 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 Tech Data at the current share price and the inputted number of shares is $4.1 billion.

RELATED COMPANIES Price Int.Val. Rating
SNX SYNNEX 135.20 185.70  buy
SCSC Scansource 35.95 36.41  hold
PCMI PCM 8.90 30.26  str.buy
AVT Avnet 43.28 32.99  hold
ARW Arrow Electron 86.94 101.95  buy
CDW CDW 75.21 66.99  hold
TESS Tessco Technol 20.30 2.78  str.sell

COMPANY NEWS

▶ See where these 5 Tampa Bay companies rank in Fortunes most admired list   [Jan-19-18 11:20AM  American City Business Journals]
▶ Tech Data Named a Top 20 IT Training Company   [Dec-18-17 08:00AM  PR Newswire]
▶ ETFs with exposure to Tech Data Corp. : December 15, 2017   [Dec-15-17 02:10PM  Capital Cube]
▶ Tech Data Strengthens Global End-to-End Portfolio   [Dec-13-17 10:01AM  PR Newswire]
▶ Tech Data Launches Tech-as-a-Service Offering   [Dec-12-17 08:00AM  Business Wire]
▶ ETFs with exposure to Tech Data Corp. : December 5, 2017   [Dec-05-17 01:20PM  Capital Cube]
▶ Tech Data Recognized as a 2017 ChannelPro SMB All-Star   [Dec-01-17 12:32PM  Business Wire]
▶ Cramer: For Market, Bad News Isn't as Bad as It Used to Be   [Nov-28-17 07:01PM  TheStreet.com]
▶ What Happened in the Stock Market Today   [04:55PM  Motley Fool]
▶ 2 Stocks to Watch Tuesday   [02:14PM  GuruFocus.com]
▶ Company News For Nov 28, 2017   [08:37AM  Zacks]
▶ Tech Data tops Street 3Q forecasts   [04:41PM  Associated Press]
▶ David Einhorn"s Top 5 Buys of 3rd Quarter   [05:15PM  GuruFocus.com]
▶ Three Tampa Bay companies earn perfect scores on a report card for LGBTQ issues   [Nov-09-17 04:36PM  American City Business Journals]
▶ Why a Tampa Bay tech group is changing its name   [07:05AM  American City Business Journals]
▶ November Undervalued Stock Opportunities   [09:03AM  Simply Wall St.]
Financial statements of TECD
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

ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2018. All rigths reserved.