Intrinsic value of Triumph Group - TGI

Previous Close

$27.85

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

  Value-price divergence*

-79%

Previous close

$27.85

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

 
Value-price divergence*

-79%

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

We calculate the intrinsic value of TGI 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 1.4

 

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, %
  -9.08
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  3,533
  3,604
  3,687
  3,781
  3,888
  4,006
  4,135
  4,276
  4,428
  4,592
  4,769
  4,957
  5,158
  5,372
  5,600
  5,842
  6,098
  6,369
  6,655
  6,958
  7,278
  7,615
  7,971
  8,346
  8,741
  9,157
  9,595
  10,056
  10,542
  11,052
  11,589
Variable operating expenses, $m
 
  4,614
  4,717
  4,836
  4,969
  5,116
  5,277
  5,453
  5,643
  5,848
  6,069
  6,190
  6,441
  6,708
  6,993
  7,294
  7,614
  7,952
  8,310
  8,688
  9,087
  9,509
  9,953
  10,421
  10,914
  11,434
  11,981
  12,557
  13,163
  13,800
  14,471
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
  3,476
  4,614
  4,717
  4,836
  4,969
  5,116
  5,277
  5,453
  5,643
  5,848
  6,069
  6,190
  6,441
  6,708
  6,993
  7,294
  7,614
  7,952
  8,310
  8,688
  9,087
  9,509
  9,953
  10,421
  10,914
  11,434
  11,981
  12,557
  13,163
  13,800
  14,471
Operating income, $m
  57
  -1,010
  -1,031
  -1,055
  -1,081
  -1,110
  -1,142
  -1,177
  -1,215
  -1,256
  -1,300
  -1,233
  -1,283
  -1,336
  -1,392
  -1,453
  -1,516
  -1,584
  -1,655
  -1,730
  -1,810
  -1,893
  -1,982
  -2,075
  -2,173
  -2,277
  -2,386
  -2,501
  -2,621
  -2,748
  -2,882
EBITDA, $m
  234
  -800
  -818
  -839
  -863
  -889
  -918
  -949
  -983
  -1,019
  -1,059
  -1,100
  -1,145
  -1,193
  -1,243
  -1,297
  -1,354
  -1,414
  -1,477
  -1,545
  -1,616
  -1,690
  -1,769
  -1,853
  -1,940
  -2,033
  -2,130
  -2,232
  -2,340
  -2,453
  -2,573
Interest expense (income), $m
  73
  63
  67
  72
  77
  83
  89
  96
  104
  113
  122
  132
  142
  153
  165
  178
  191
  205
  220
  236
  253
  271
  289
  309
  330
  352
  375
  399
  425
  452
  480
Earnings before tax, $m
  -24
  -1,073
  -1,098
  -1,126
  -1,158
  -1,193
  -1,232
  -1,274
  -1,320
  -1,369
  -1,422
  -1,364
  -1,425
  -1,489
  -1,557
  -1,630
  -1,707
  -1,789
  -1,875
  -1,966
  -2,063
  -2,164
  -2,271
  -2,384
  -2,503
  -2,629
  -2,761
  -2,900
  -3,046
  -3,200
  -3,362
Tax expense, $m
  19
  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
Net income, $m
  -43
  -1,073
  -1,098
  -1,126
  -1,158
  -1,193
  -1,232
  -1,274
  -1,320
  -1,369
  -1,422
  -1,364
  -1,425
  -1,489
  -1,557
  -1,630
  -1,707
  -1,789
  -1,875
  -1,966
  -2,063
  -2,164
  -2,271
  -2,384
  -2,503
  -2,629
  -2,761
  -2,900
  -3,046
  -3,200
  -3,362

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  70
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,415
  4,433
  4,534
  4,651
  4,782
  4,927
  5,086
  5,259
  5,447
  5,649
  5,865
  6,097
  6,345
  6,608
  6,888
  7,185
  7,500
  7,834
  8,186
  8,559
  8,952
  9,367
  9,804
  10,266
  10,752
  11,263
  11,802
  12,370
  12,966
  13,594
  14,255
Adjusted assets (=assets-cash), $m
  4,345
  4,433
  4,534
  4,651
  4,782
  4,927
  5,086
  5,259
  5,447
  5,649
  5,865
  6,097
  6,345
  6,608
  6,888
  7,185
  7,500
  7,834
  8,186
  8,559
  8,952
  9,367
  9,804
  10,266
  10,752
  11,263
  11,802
  12,370
  12,966
  13,594
  14,255
Revenue / Adjusted assets
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
  0.813
Average production assets, $m
  1,468
  1,499
  1,534
  1,573
  1,617
  1,666
  1,720
  1,779
  1,842
  1,910
  1,984
  2,062
  2,146
  2,235
  2,330
  2,430
  2,537
  2,649
  2,769
  2,895
  3,028
  3,168
  3,316
  3,472
  3,636
  3,809
  3,992
  4,183
  4,385
  4,598
  4,821
Working capital, $m
  439
  541
  553
  567
  583
  601
  620
  641
  664
  689
  715
  744
  774
  806
  840
  876
  915
  955
  998
  1,044
  1,092
  1,142
  1,196
  1,252
  1,311
  1,374
  1,439
  1,508
  1,581
  1,658
  1,738
Total debt, $m
  1,196
  1,195
  1,277
  1,371
  1,476
  1,593
  1,721
  1,861
  2,012
  2,174
  2,349
  2,535
  2,735
  2,947
  3,172
  3,411
  3,665
  3,933
  4,217
  4,517
  4,833
  5,167
  5,519
  5,891
  6,282
  6,694
  7,128
  7,584
  8,065
  8,570
  9,102
Total liabilities, $m
  3,568
  3,568
  3,650
  3,744
  3,849
  3,966
  4,094
  4,234
  4,385
  4,547
  4,722
  4,908
  5,108
  5,320
  5,545
  5,784
  6,038
  6,306
  6,590
  6,890
  7,206
  7,540
  7,892
  8,264
  8,655
  9,067
  9,501
  9,957
  10,438
  10,943
  11,475
Total equity, $m
  846
  864
  884
  907
  932
  961
  992
  1,026
  1,062
  1,101
  1,144
  1,189
  1,237
  1,289
  1,343
  1,401
  1,463
  1,528
  1,596
  1,669
  1,746
  1,827
  1,912
  2,002
  2,097
  2,196
  2,301
  2,412
  2,528
  2,651
  2,780
Total liabilities and equity, $m
  4,414
  4,432
  4,534
  4,651
  4,781
  4,927
  5,086
  5,260
  5,447
  5,648
  5,866
  6,097
  6,345
  6,609
  6,888
  7,185
  7,501
  7,834
  8,186
  8,559
  8,952
  9,367
  9,804
  10,266
  10,752
  11,263
  11,802
  12,369
  12,966
  13,594
  14,255
Debt-to-equity ratio
  1.414
  1.380
  1.440
  1.510
  1.580
  1.660
  1.740
  1.810
  1.890
  1.970
  2.050
  2.130
  2.210
  2.290
  2.360
  2.430
  2.510
  2.570
  2.640
  2.710
  2.770
  2.830
  2.890
  2.940
  3.000
  3.050
  3.100
  3.140
  3.190
  3.230
  3.270
Adjusted equity ratio
  0.179
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195
  0.195

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -43
  -1,073
  -1,098
  -1,126
  -1,158
  -1,193
  -1,232
  -1,274
  -1,320
  -1,369
  -1,422
  -1,364
  -1,425
  -1,489
  -1,557
  -1,630
  -1,707
  -1,789
  -1,875
  -1,966
  -2,063
  -2,164
  -2,271
  -2,384
  -2,503
  -2,629
  -2,761
  -2,900
  -3,046
  -3,200
  -3,362
Depreciation, amort., depletion, $m
  177
  210
  213
  215
  218
  221
  225
  228
  232
  237
  241
  132
  138
  143
  149
  156
  163
  170
  177
  186
  194
  203
  213
  223
  233
  244
  256
  268
  281
  295
  309
Funds from operations, $m
  242
  -863
  -885
  -911
  -940
  -972
  -1,007
  -1,045
  -1,087
  -1,132
  -1,180
  -1,232
  -1,287
  -1,346
  -1,408
  -1,474
  -1,545
  -1,619
  -1,698
  -1,781
  -1,868
  -1,961
  -2,059
  -2,162
  -2,270
  -2,385
  -2,505
  -2,631
  -2,765
  -2,905
  -3,053
Change in working capital, $m
  -40
  11
  12
  14
  16
  18
  19
  21
  23
  25
  26
  28
  30
  32
  34
  36
  38
  41
  43
  45
  48
  51
  53
  56
  59
  62
  66
  69
  73
  77
  81
Cash from operations, $m
  282
  -874
  -898
  -925
  -956
  -990
  -1,026
  -1,067
  -1,110
  -1,157
  -1,207
  -1,260
  -1,317
  -1,378
  -1,442
  -1,511
  -1,583
  -1,660
  -1,741
  -1,826
  -1,916
  -2,012
  -2,112
  -2,218
  -2,329
  -2,447
  -2,571
  -2,701
  -2,838
  -2,982
  -3,133
Maintenance CAPEX, $m
  0
  -94
  -96
  -98
  -101
  -104
  -107
  -110
  -114
  -118
  -122
  -127
  -132
  -138
  -143
  -149
  -156
  -163
  -170
  -177
  -186
  -194
  -203
  -213
  -223
  -233
  -244
  -256
  -268
  -281
  -295
New CAPEX, $m
  -52
  -31
  -34
  -39
  -44
  -49
  -54
  -59
  -63
  -68
  -73
  -78
  -84
  -89
  -95
  -100
  -106
  -113
  -119
  -126
  -133
  -140
  -148
  -156
  -164
  -173
  -182
  -192
  -202
  -212
  -223
Cash from investing activities, $m
  34
  -125
  -130
  -137
  -145
  -153
  -161
  -169
  -177
  -186
  -195
  -205
  -216
  -227
  -238
  -249
  -262
  -276
  -289
  -303
  -319
  -334
  -351
  -369
  -387
  -406
  -426
  -448
  -470
  -493
  -518
Free cash flow, $m
  316
  -999
  -1,028
  -1,063
  -1,101
  -1,142
  -1,187
  -1,235
  -1,287
  -1,343
  -1,402
  -1,466
  -1,533
  -1,605
  -1,680
  -1,760
  -1,845
  -1,935
  -2,030
  -2,130
  -2,235
  -2,346
  -2,463
  -2,587
  -2,716
  -2,853
  -2,997
  -3,148
  -3,308
  -3,475
  -3,651
Issuance/(repayment) of debt, $m
  -244
  69
  82
  94
  105
  117
  128
  139
  151
  163
  175
  187
  199
  212
  225
  239
  253
  268
  284
  300
  317
  334
  352
  371
  391
  412
  434
  457
  481
  506
  532
Issuance/(repurchase) of shares, $m
  0
  1,092
  1,118
  1,149
  1,183
  1,221
  1,263
  1,308
  1,356
  1,408
  1,464
  1,409
  1,473
  1,540
  1,612
  1,688
  1,769
  1,854
  1,944
  2,039
  2,139
  2,245
  2,357
  2,474
  2,598
  2,729
  2,866
  3,010
  3,162
  3,322
  3,490
Cash from financing (excl. dividends), $m  
  -258
  1,161
  1,200
  1,243
  1,288
  1,338
  1,391
  1,447
  1,507
  1,571
  1,639
  1,596
  1,672
  1,752
  1,837
  1,927
  2,022
  2,122
  2,228
  2,339
  2,456
  2,579
  2,709
  2,845
  2,989
  3,141
  3,300
  3,467
  3,643
  3,828
  4,022
Total cash flow (excl. dividends), $m
  57
  162
  172
  180
  188
  196
  204
  212
  220
  228
  236
  130
  139
  148
  157
  167
  177
  187
  198
  209
  221
  233
  246
  259
  273
  287
  303
  319
  335
  353
  371
Retained Cash Flow (-), $m
  89
  -1,092
  -1,118
  -1,149
  -1,183
  -1,221
  -1,263
  -1,308
  -1,356
  -1,408
  -1,464
  -1,409
  -1,473
  -1,540
  -1,612
  -1,688
  -1,769
  -1,854
  -1,944
  -2,039
  -2,139
  -2,245
  -2,357
  -2,474
  -2,598
  -2,729
  -2,866
  -3,010
  -3,162
  -3,322
  -3,490
Prev. year cash balance distribution, $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 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
 
  -930
  -946
  -969
  -995
  -1,026
  -1,059
  -1,096
  -1,137
  -1,180
  -1,228
  -1,279
  -1,334
  -1,392
  -1,455
  -1,521
  -1,592
  -1,667
  -1,746
  -1,830
  -1,918
  -2,012
  -2,111
  -2,215
  -2,325
  -2,441
  -2,563
  -2,692
  -2,827
  -2,970
  -3,119
Discount rate, %
 
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for distribution, $m
 
  -863
  -810
  -759
  -707
  -656
  -603
  -551
  -499
  -448
  -397
  -349
  -302
  -259
  -218
  -181
  -148
  -119
  -94
  -72
  -55
  -41
  -29
  -21
  -14
  -10
  -6
  -4
  -2
  -1
  -1
Current shareholders' claim on cash, %
  100
  56.0
  31.3
  17.5
  9.7
  5.4
  3.0
  1.7
  0.9
  0.5
  0.3
  0.2
  0.1
  0.1
  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
  0.0
  0.0

Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.

FINANCIAL RATIOS  of  Triumph Group (TGI)

Valuation Ratios
P/E Ratio -32.1
Price to Sales 0.4
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 4.9
Price to Free Cash Flow 6
Growth Rates
Sales Growth Rate -9.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -35%
Cap. Spend. - 3 Yr. Gr. Rate -24.1%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 122.3%
Total Debt to Equity 141.4%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.9%
Ret/ On Assets - 3 Yr. Avg. -3.8%
Return On Total Capital -2%
Ret/ On T. Cap. - 3 Yr. Avg. -10.4%
Return On Equity -4.8%
Return On Equity - 3 Yr. Avg. -20.8%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 23.9%
Gross Margin - 3 Yr. Avg. 17.1%
EBITDA Margin 6.4%
EBITDA Margin - 3 Yr. Avg. -0.7%
Operating Margin 1.6%
Oper. Margin - 3 Yr. Avg. -5.1%
Pre-Tax Margin -0.7%
Pre-Tax Margin - 3 Yr. Avg. -7.2%
Net Profit Margin -1.2%
Net Profit Margin - 3 Yr. Avg. -7.3%
Effective Tax Rate -79.2%
Eff/ Tax Rate - 3 Yr. Avg. -12.7%
Payout Ratio -18.6%

TGI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TGI stock intrinsic value calculation we used $3533 million for the last fiscal year's total revenue generated by Triumph Group. The default revenue input number comes from 2017 income statement of Triumph Group. 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 TGI stock valuation model: a) initial revenue growth rate of 2% 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 7.7%, whose default value for TGI is calculated based on our internal credit rating of Triumph Group, 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 Triumph Group.
    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 TGI stock the variable cost ratio is equal to 128.1%.

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 TGI 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 5.6% for Triumph Group.

Corporate tax rate of 27% is the nominal tax rate for Triumph Group. 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 TGI 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 TGI are equal to 41.6%.

Life of production assets of 15.6 years is the average useful life of capital assets used in Triumph Group 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 TGI is equal to 15%. 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 - $846 million for Triumph Group - 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 49.805 million for Triumph Group 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 Triumph Group at the current share price and the inputted number of shares is $1.4 billion.

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COMPANY NEWS

▶ Boeing's partnership with major DFW aerospace supplier to generate 950 jobs   [Sep-15-17 04:40PM  American City Business Journals]
▶ Triumph Group reports 1Q loss   [Jul-26-17 09:31PM  Associated Press]
▶ Triumph Group Declares Quarterly Dividend   [Jul-20-17 04:31PM  Business Wire]
▶ ETFs with exposure to Triumph Group, Inc. : June 9, 2017   [Jun-09-17 02:00PM  Capital Cube]
▶ Triumph Agreement with Boeing Extends Support for V-22   [May-30-17 02:58PM  Business Wire]
▶ Triumph Group Stock Upgraded: What You Need to Know   [May-25-17 11:46AM  Motley Fool]
▶ Intuit and Triumph jump while Lowe's and Tiffany tumble   [May-24-17 04:49PM  Associated Press]
▶ Why Triumph Group Stock Is Soaring 28%   [02:29PM  Motley Fool]
▶ Triumph Group settles on disputed wing work with Bombardier   [02:20PM  American City Business Journals]
▶ Story Stocks from Briefing.com   [11:11AM  Briefing.com]
▶ Triumph Group reports 4Q loss   [06:22AM  Associated Press]
▶ Triumph and Boeing Sign MOA on Expanded Partnership   [May-22-17 12:47PM  Business Wire]
▶ The Shorts Are Getting Squeezed Hard in Triumph Group   [May-16-17 04:09PM  TheStreet.com]
▶ Why Triumph Group Stock Soared 14% Today   [12:25PM  Motley Fool]
▶ [$$] Triumph Group's Aerostructures Division Braces for Bankruptcy   [May-11-17 03:34PM  The Wall Street Journal]
▶ Triumph Group Declares Quarterly Dividend   [Apr-28-17 12:31PM  Business Wire]
▶ Triumph Group Declares Quarterly Dividend   [Feb-14-17 05:46PM  Business Wire]
▶ Triumph talking with Boeing about potential early end to 747   [Feb-07-17 12:05PM  at bizjournals.com]
▶ Triumph Appoints New Business Development Lead   [Feb-01-17 05:29PM  Business Wire]
Financial statements of TGI
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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