Intrinsic value of Thor Industries - THO

Previous Close

$148.93

  Intrinsic Value

$1,050

stock screener

  Rating & Target

str. buy

+605%

Previous close

$148.93

 
Intrinsic value

$1,050

 
Up/down potential

+605%

 
Rating

str. buy

We calculate the intrinsic value of THO 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 7.8

 

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, %
  58.16
  49.70
  45.23
  41.21
  37.59
  34.33
  31.39
  28.76
  26.38
  24.24
  22.32
  20.59
  19.03
  17.62
  16.36
  15.23
  14.20
  13.28
  12.45
  11.71
  11.04
  10.43
  9.89
  9.40
  8.96
  8.57
  8.21
  7.89
  7.60
  7.34
  7.11
Revenue, $m
  7,247
  10,849
  15,756
  22,248
  30,610
  41,118
  54,027
  69,563
  87,913
  109,225
  133,602
  161,105
  191,759
  225,556
  262,462
  302,424
  345,378
  391,255
  439,984
  491,503
  545,757
  602,703
  662,317
  724,588
  789,523
  857,150
  927,514
  1,000,677
  1,076,721
  1,155,746
  1,237,866
Variable operating expenses, $m
 
  9,919
  14,388
  20,301
  27,917
  37,488
  49,245
  63,395
  80,108
  99,518
  121,720
  146,732
  174,651
  205,433
  239,046
  275,443
  314,565
  356,348
  400,731
  447,653
  497,066
  548,933
  603,228
  659,943
  719,085
  780,679
  844,765
  911,401
  980,661
  1,052,635
  1,127,429
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
  6,691
  9,919
  14,388
  20,301
  27,917
  37,488
  49,245
  63,395
  80,108
  99,518
  121,720
  146,732
  174,651
  205,433
  239,046
  275,443
  314,565
  356,348
  400,731
  447,653
  497,066
  548,933
  603,228
  659,943
  719,085
  780,679
  844,765
  911,401
  980,661
  1,052,635
  1,127,429
Operating income, $m
  556
  930
  1,368
  1,947
  2,693
  3,631
  4,782
  6,168
  7,805
  9,707
  11,882
  14,373
  17,108
  20,123
  23,416
  26,981
  30,813
  34,906
  39,254
  43,850
  48,690
  53,771
  59,089
  64,645
  70,438
  76,471
  82,749
  89,276
  96,061
  103,111
  110,437
EBITDA, $m
  654
  1,070
  1,554
  2,195
  3,020
  4,057
  5,330
  6,863
  8,674
  10,776
  13,181
  15,895
  18,919
  22,253
  25,895
  29,837
  34,075
  38,601
  43,409
  48,492
  53,845
  59,463
  65,344
  71,488
  77,895
  84,567
  91,509
  98,727
  106,230
  114,026
  122,128
Interest expense (income), $m
  9
  5
  23
  47
  78
  119
  170
  233
  309
  398
  502
  621
  755
  904
  1,069
  1,248
  1,443
  1,652
  1,876
  2,113
  2,364
  2,628
  2,906
  3,196
  3,499
  3,816
  4,145
  4,488
  4,844
  5,215
  5,600
Earnings before tax, $m
  556
  925
  1,345
  1,900
  2,615
  3,512
  4,612
  5,935
  7,497
  9,309
  11,380
  13,752
  16,353
  19,219
  22,347
  25,733
  29,370
  33,254
  37,378
  41,737
  46,326
  51,142
  56,183
  61,449
  66,939
  72,656
  78,604
  84,788
  91,216
  97,896
  104,838
Tax expense, $m
  182
  250
  363
  513
  706
  948
  1,245
  1,603
  2,024
  2,513
  3,073
  3,713
  4,415
  5,189
  6,034
  6,948
  7,930
  8,979
  10,092
  11,269
  12,508
  13,808
  15,170
  16,591
  18,073
  19,617
  21,223
  22,893
  24,628
  26,432
  28,306
Net income, $m
  374
  675
  982
  1,387
  1,909
  2,563
  3,367
  4,333
  5,473
  6,795
  8,307
  10,039
  11,938
  14,030
  16,313
  18,785
  21,440
  24,275
  27,286
  30,468
  33,818
  37,334
  41,014
  44,857
  48,865
  53,039
  57,381
  61,896
  66,588
  71,464
  76,532

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  223
  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
  2,558
  3,495
  5,076
  7,168
  9,862
  13,247
  17,406
  22,411
  28,323
  35,189
  43,042
  51,902
  61,778
  72,666
  84,556
  97,430
  111,269
  126,049
  141,747
  158,345
  175,824
  194,170
  213,375
  233,437
  254,357
  276,144
  298,812
  322,383
  346,882
  372,341
  398,797
Adjusted assets (=assets-cash), $m
  2,335
  3,495
  5,076
  7,168
  9,862
  13,247
  17,406
  22,411
  28,323
  35,189
  43,042
  51,902
  61,778
  72,666
  84,556
  97,430
  111,269
  126,049
  141,747
  158,345
  175,824
  194,170
  213,375
  233,437
  254,357
  276,144
  298,812
  322,383
  346,882
  372,341
  398,797
Revenue / Adjusted assets
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
  3.104
Average production assets, $m
  860
  1,291
  1,875
  2,648
  3,643
  4,893
  6,429
  8,278
  10,462
  12,998
  15,899
  19,172
  22,819
  26,841
  31,233
  35,988
  41,100
  46,559
  52,358
  58,489
  64,945
  71,722
  78,816
  86,226
  93,953
  102,001
  110,374
  119,081
  128,130
  137,534
  147,306
Working capital, $m
  399
  260
  378
  534
  735
  987
  1,297
  1,670
  2,110
  2,621
  3,206
  3,867
  4,602
  5,413
  6,299
  7,258
  8,289
  9,390
  10,560
  11,796
  13,098
  14,465
  15,896
  17,390
  18,949
  20,572
  22,260
  24,016
  25,841
  27,738
  29,709
Total debt, $m
  145
  632
  1,296
  2,174
  3,306
  4,728
  6,474
  8,576
  11,060
  13,943
  17,242
  20,963
  25,111
  29,684
  34,677
  40,085
  45,897
  52,104
  58,698
  65,669
  73,010
  80,715
  88,782
  97,207
  105,994
  115,144
  124,665
  134,565
  144,854
  155,547
  166,659
Total liabilities, $m
  981
  1,468
  2,132
  3,010
  4,142
  5,564
  7,310
  9,412
  11,896
  14,779
  18,078
  21,799
  25,947
  30,520
  35,513
  40,921
  46,733
  52,940
  59,534
  66,505
  73,846
  81,551
  89,618
  98,043
  106,830
  115,980
  125,501
  135,401
  145,690
  156,383
  167,495
Total equity, $m
  1,577
  2,027
  2,944
  4,157
  5,720
  7,683
  10,095
  12,998
  16,427
  20,409
  24,964
  30,103
  35,831
  42,146
  49,042
  56,510
  64,536
  73,108
  82,214
  91,840
  101,978
  112,619
  123,758
  135,393
  147,527
  160,163
  173,311
  186,982
  201,191
  215,958
  231,302
Total liabilities and equity, $m
  2,558
  3,495
  5,076
  7,167
  9,862
  13,247
  17,405
  22,410
  28,323
  35,188
  43,042
  51,902
  61,778
  72,666
  84,555
  97,431
  111,269
  126,048
  141,748
  158,345
  175,824
  194,170
  213,376
  233,436
  254,357
  276,143
  298,812
  322,383
  346,881
  372,341
  398,797
Debt-to-equity ratio
  0.092
  0.310
  0.440
  0.520
  0.580
  0.620
  0.640
  0.660
  0.670
  0.680
  0.690
  0.700
  0.700
  0.700
  0.710
  0.710
  0.710
  0.710
  0.710
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
  0.720
Adjusted equity ratio
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580
  0.580

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  374
  675
  982
  1,387
  1,909
  2,563
  3,367
  4,333
  5,473
  6,795
  8,307
  10,039
  11,938
  14,030
  16,313
  18,785
  21,440
  24,275
  27,286
  30,468
  33,818
  37,334
  41,014
  44,857
  48,865
  53,039
  57,381
  61,896
  66,588
  71,464
  76,532
Depreciation, amort., depletion, $m
  98
  140
  187
  248
  327
  426
  548
  695
  868
  1,069
  1,300
  1,522
  1,811
  2,130
  2,479
  2,856
  3,262
  3,695
  4,155
  4,642
  5,154
  5,692
  6,255
  6,843
  7,457
  8,095
  8,760
  9,451
  10,169
  10,915
  11,691
Funds from operations, $m
  394
  815
  1,169
  1,635
  2,236
  2,990
  3,915
  5,028
  6,341
  7,865
  9,607
  11,561
  13,749
  16,160
  18,792
  21,641
  24,702
  27,971
  31,441
  35,110
  38,972
  43,026
  47,269
  51,701
  56,322
  61,134
  66,141
  71,346
  76,757
  82,380
  88,223
Change in working capital, $m
  -25
  86
  118
  156
  201
  252
  310
  373
  440
  511
  585
  660
  736
  811
  886
  959
  1,031
  1,101
  1,170
  1,236
  1,302
  1,367
  1,431
  1,494
  1,558
  1,623
  1,689
  1,756
  1,825
  1,897
  1,971
Cash from operations, $m
  419
  729
  1,051
  1,479
  2,035
  2,737
  3,605
  4,655
  5,900
  7,353
  9,022
  10,901
  13,013
  15,349
  17,906
  20,682
  23,671
  26,869
  30,272
  33,873
  37,670
  41,659
  45,838
  50,206
  54,763
  59,511
  64,452
  69,590
  74,932
  80,483
  86,252
Maintenance CAPEX, $m
  0
  -68
  -102
  -149
  -210
  -289
  -388
  -510
  -657
  -830
  -1,032
  -1,262
  -1,522
  -1,811
  -2,130
  -2,479
  -2,856
  -3,262
  -3,695
  -4,155
  -4,642
  -5,154
  -5,692
  -6,255
  -6,843
  -7,457
  -8,095
  -8,760
  -9,451
  -10,169
  -10,915
New CAPEX, $m
  -115
  -431
  -584
  -773
  -995
  -1,250
  -1,536
  -1,849
  -2,184
  -2,536
  -2,901
  -3,273
  -3,648
  -4,022
  -4,392
  -4,756
  -5,112
  -5,459
  -5,799
  -6,131
  -6,456
  -6,777
  -7,094
  -7,410
  -7,727
  -8,048
  -8,373
  -8,706
  -9,049
  -9,404
  -9,772
Cash from investing activities, $m
  -117
  -499
  -686
  -922
  -1,205
  -1,539
  -1,924
  -2,359
  -2,841
  -3,366
  -3,933
  -4,535
  -5,170
  -5,833
  -6,522
  -7,235
  -7,968
  -8,721
  -9,494
  -10,286
  -11,098
  -11,931
  -12,786
  -13,665
  -14,570
  -15,505
  -16,468
  -17,466
  -18,500
  -19,573
  -20,687
Free cash flow, $m
  302
  230
  364
  558
  830
  1,198
  1,681
  2,296
  3,060
  3,987
  5,089
  6,366
  7,844
  9,516
  11,384
  13,448
  15,703
  18,148
  20,778
  23,587
  26,572
  29,728
  33,052
  36,541
  40,193
  44,007
  47,983
  52,124
  56,432
  60,910
  65,564
Issuance/(repayment) of debt, $m
  -215
  487
  664
  878
  1,131
  1,422
  1,747
  2,102
  2,483
  2,884
  3,298
  3,721
  4,148
  4,573
  4,994
  5,407
  5,812
  6,208
  6,594
  6,971
  7,341
  7,705
  8,066
  8,426
  8,786
  9,151
  9,521
  9,900
  10,290
  10,693
  11,112
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  -220
  487
  664
  878
  1,131
  1,422
  1,747
  2,102
  2,483
  2,884
  3,298
  3,721
  4,148
  4,573
  4,994
  5,407
  5,812
  6,208
  6,594
  6,971
  7,341
  7,705
  8,066
  8,426
  8,786
  9,151
  9,521
  9,900
  10,290
  10,693
  11,112
Total cash flow (excl. dividends), $m
  82
  717
  1,028
  1,437
  1,961
  2,620
  3,427
  4,398
  5,543
  6,871
  8,388
  10,088
  11,992
  14,089
  16,378
  18,855
  21,516
  24,356
  27,371
  30,558
  33,913
  37,434
  41,118
  44,967
  48,979
  53,157
  57,504
  62,024
  66,721
  71,603
  76,676
Retained Cash Flow (-), $m
  -312
  -673
  -917
  -1,213
  -1,563
  -1,963
  -2,412
  -2,903
  -3,429
  -3,982
  -4,555
  -5,139
  -5,728
  -6,315
  -6,896
  -7,467
  -8,026
  -8,572
  -9,105
  -9,627
  -10,138
  -10,641
  -11,139
  -11,636
  -12,134
  -12,637
  -13,148
  -13,671
  -14,209
  -14,766
  -15,345
Prev. year cash balance distribution, $m
 
  223
  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
 
  266
  111
  223
  399
  656
  1,015
  1,495
  2,114
  2,888
  3,833
  4,948
  6,264
  7,774
  9,482
  11,388
  13,489
  15,783
  18,266
  20,932
  23,776
  26,793
  29,979
  33,331
  36,845
  40,521
  44,356
  48,353
  52,512
  56,837
  61,331
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
 
  256
  102
  194
  328
  509
  737
  1,010
  1,321
  1,659
  2,009
  2,350
  2,673
  2,956
  3,183
  3,343
  3,428
  3,434
  3,364
  3,223
  3,021
  2,771
  2,487
  2,185
  1,877
  1,576
  1,294
  1,038
  812
  620
  462
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

Thor Industries, Inc. manufactures a range of recreational vehicles (RVs) in the United States and sells those vehicles primarily in the United States and Canada. The Company's segments include towable recreational vehicles, which consists of the operations of Airstream, Inc. (Airstream) (towable); Heartland Recreational Vehicles, LLC (Heartland) (including Bison Coach, LLC (Bison), Cruiser RV, LLC (CRV) and DRV, LLC (DRV)); Jayco, Corp. (Jayco) (including Jayco towable, Starcraft and Highland Ridge), Keystone RV Company (Keystone) (including CrossRoads and Dutchmen) and K.Z., Inc. (KZ) (including Livin' Lite RV, Inc. (Livin' Lite)); motorized recreational vehicles, which consists of the operations of Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach, Inc. (Thor Motor Coach), and Other, which includes the operations of its subsidiary, Postle Operating, LLC (Postle).

FINANCIAL RATIOS  of  Thor Industries (THO)

Valuation Ratios
P/E Ratio 20.9
Price to Sales 1.1
Price to Book 5
Price to Tangible Book
Price to Cash Flow 18.7
Price to Free Cash Flow 25.8
Growth Rates
Sales Growth Rate 58.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 121.2%
Cap. Spend. - 3 Yr. Gr. Rate 30.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 9.2%
Total Debt to Equity 9.2%
Interest Coverage 63
Management Effectiveness
Return On Assets 15.6%
Ret/ On Assets - 3 Yr. Avg. 14.2%
Return On Total Capital 22.3%
Ret/ On T. Cap. - 3 Yr. Avg. 20.3%
Return On Equity 26.3%
Return On Equity - 3 Yr. Avg. 22.6%
Asset Turnover 3
Profitability Ratios
Gross Margin 14.4%
Gross Margin - 3 Yr. Avg. 14.7%
EBITDA Margin 9.1%
EBITDA Margin - 3 Yr. Avg. 8.9%
Operating Margin 7.7%
Oper. Margin - 3 Yr. Avg. 7.8%
Pre-Tax Margin 7.7%
Pre-Tax Margin - 3 Yr. Avg. 7.8%
Net Profit Margin 5.2%
Net Profit Margin - 3 Yr. Avg. 5.2%
Effective Tax Rate 32.7%
Eff/ Tax Rate - 3 Yr. Avg. 32.1%
Payout Ratio 18.4%

THO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the THO stock intrinsic value calculation we used $7247 million for the last fiscal year's total revenue generated by Thor Industries. The default revenue input number comes from 2017 income statement of Thor Industries. 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 THO stock valuation model: a) initial revenue growth rate of 49.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for THO is calculated based on our internal credit rating of Thor Industries, 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 Thor Industries.
    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 THO stock the variable cost ratio is equal to 91.6%.

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 THO 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 3.6% for Thor Industries.

Corporate tax rate of 27% is the nominal tax rate for Thor Industries. 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 THO 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 THO are equal to 11.9%.

Life of production assets of 12.6 years is the average useful life of capital assets used in Thor Industries 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 THO is equal to 2.4%. 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 - $1577 million for Thor Industries - 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 52.612 million for Thor Industries 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 Thor Industries at the current share price and the inputted number of shares is $7.8 billion.

RELATED COMPANIES Price Int.Val. Rating
WGO Winnebago Indu 54.90 524.00  str.buy
PATK Patrick Indust 64.85 127.94  str.buy
MNTX Manitex Intern 8.48 4.91  sell
SKY Skyline 12.34 3.83  str.sell
SPAR Spartan Motors 15.55 18.12  hold

COMPANY NEWS

▶ Thor Announces Regular Quarterly Dividend   [04:15PM  PR Newswire]
▶ 3 Stocks to Hold for the Next 20 Years   [02:00PM  Motley Fool]
▶ Disney, Banks Rally, But Nvidia Sinks; Ready For Bitcoin Futures?   [Dec-04-17 02:00PM  Investor's Business Daily]
▶ See which stocks fund managers are buying   [Nov-29-17 03:09PM  American City Business Journals]
▶ RV industry points to strong sales growth   [12:42PM  Associated Press]
▶ Company News For Nov 29, 2017   [09:22AM  Zacks]
▶ Thor Industries: Cramer's Top Takeaways   [06:44AM  TheStreet.com]
▶ Cramer Remix: Its time to buy the stock of Macys   [Nov-28-17 07:05PM  CNBC Videos]
▶ What Happened in the Stock Market Today   [04:55PM  Motley Fool]
▶ Exceptional Growth Sends Thor Soaring   [09:33AM  Motley Fool]
▶ Thor Industries beats on bottom line   [04:58PM  CNBC Videos]
▶ Thor Industries beats Street 1Q forecasts   [04:23PM  Associated Press]
▶ What To Expect From These Four IBD 50 Earnings Reports   [09:50AM  Investor's Business Daily]
▶ Thor Names Senior Director Of Investor Relations   [Nov-20-17 04:15PM  PR Newswire]
▶ Thor Industries (THO) Is A Great Growth Stock   [Nov-09-17 01:46PM  Zacks]
▶ Thor Industries Inc (THO): Will The Growth Last?   [Nov-06-17 06:22PM  Simply Wall St.]
▶ Airstream unveils innovation and research lab   [Nov-02-17 05:40AM  American City Business Journals]
▶ Starcraft RV Enters into Agreement with Mossy Oak   [Oct-25-17 10:45AM  PR Newswire]
▶ Winnebago Reports Strong Earnings, New Buyback; Stock Rallies   [Oct-19-17 04:02PM  Investor's Business Daily]
▶ Thor Announces Increased Regular Quarterly Dividend   [Oct-10-17 04:15PM  PR Newswire]
▶ Finding Great Stocks: How Many In The IBD 50 Are Really Young?   [Oct-06-17 03:28PM  Investor's Business Daily]
▶ Thor Industries: Cramer's Top Takeaways   [06:48AM  TheStreet.com]
▶ Millennials are making RV stocks rev up   [01:37PM  CNBC Videos]
▶ Jim Cramer Reacts to Thor Industries Earnings   [12:36PM  TheStreet.com Videos]
▶ Stocks Open A Bit Lower; Thor Up On Earnings; China IPO Rises   [09:36AM  Investor's Business Daily]
Financial statements of THO
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.