Intrinsic value of Third Point Reinsurance - TPRE

Previous Close

$14.30

  Intrinsic Value

$121.81

stock screener

  Rating & Target

str. buy

+752%

  Value-price divergence*

0%

Previous close

$14.30

 
Intrinsic value

$121.81

 
Up/down potential

+752%

 
Rating

str. buy

 
Value-price divergence*

0%

Our model is not good at valuating stocks of financial companies, such as TPRE.

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

We calculate the intrinsic value of TPRE 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 1.6

 

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, %
  19.83
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  0
  1,102
  1,703
  2,547
  3,696
  5,214
  7,168
  9,622
  12,634
  16,257
  20,534
  25,499
  31,175
  37,576
  44,708
  52,569
  61,150
  70,440
  80,423
  91,083
  102,405
  114,373
  126,974
  140,200
  154,044
  168,505
  183,583
  199,286
  215,624
  232,612
  250,268
Variable operating expenses, $m
 
  256
  395
  591
  857
  1,210
  1,663
  2,232
  2,931
  3,772
  4,764
  5,916
  7,233
  8,718
  10,372
  12,196
  14,187
  16,342
  18,658
  21,131
  23,758
  26,534
  29,458
  32,526
  35,738
  39,093
  42,591
  46,234
  50,025
  53,966
  58,062
Fixed operating expenses, $m
 
  560
  574
  588
  603
  618
  633
  649
  665
  682
  699
  716
  734
  753
  771
  791
  811
  831
  852
  873
  895
  917
  940
  963
  988
  1,012
  1,038
  1,063
  1,090
  1,117
  1,145
Total operating expenses, $m
  666
  816
  969
  1,179
  1,460
  1,828
  2,296
  2,881
  3,596
  4,454
  5,463
  6,632
  7,967
  9,471
  11,143
  12,987
  14,998
  17,173
  19,510
  22,004
  24,653
  27,451
  30,398
  33,489
  36,726
  40,105
  43,629
  47,297
  51,115
  55,083
  59,207
Operating income, $m
  23
  287
  734
  1,368
  2,236
  3,387
  4,872
  6,741
  9,038
  11,804
  15,071
  18,867
  23,208
  28,106
  33,564
  39,582
  46,153
  53,267
  60,913
  69,079
  77,752
  86,921
  96,576
  106,710
  117,318
  128,399
  139,954
  151,988
  164,509
  177,529
  191,061
EBITDA, $m
  23
  287
  734
  1,368
  2,236
  3,387
  4,872
  6,741
  9,038
  11,804
  15,071
  18,867
  23,208
  28,106
  33,564
  39,582
  46,153
  53,267
  60,913
  69,079
  77,752
  86,921
  96,576
  106,710
  117,318
  128,399
  139,954
  151,988
  164,509
  177,529
  191,061
Interest expense (income), $m
  23
  23
  325
  764
  1,380
  2,219
  3,329
  4,756
  6,549
  8,750
  11,396
  14,521
  18,148
  22,295
  26,971
  32,182
  37,925
  44,194
  50,981
  58,274
  66,062
  74,333
  83,077
  92,283
  101,945
  112,060
  122,624
  133,640
  145,112
  157,048
  169,459
Earnings before tax, $m
  34
  264
  410
  605
  856
  1,167
  1,543
  1,984
  2,489
  3,054
  3,675
  4,346
  5,060
  5,811
  6,593
  7,400
  8,228
  9,073
  9,933
  10,805
  11,690
  12,588
  13,500
  14,427
  15,373
  16,340
  17,330
  18,348
  19,397
  20,481
  21,602
Tax expense, $m
  5
  71
  111
  163
  231
  315
  417
  536
  672
  825
  992
  1,173
  1,366
  1,569
  1,780
  1,998
  2,222
  2,450
  2,682
  2,917
  3,156
  3,399
  3,645
  3,895
  4,151
  4,412
  4,679
  4,954
  5,237
  5,530
  5,833
Net income, $m
  28
  193
  299
  441
  625
  852
  1,127
  1,449
  1,817
  2,230
  2,683
  3,172
  3,694
  4,242
  4,813
  5,402
  6,007
  6,623
  7,251
  7,888
  8,534
  9,189
  9,855
  10,532
  11,222
  11,928
  12,651
  13,394
  14,160
  14,951
  15,770

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  3,896
  6,228
  9,623
  14,391
  20,880
  29,459
  40,499
  54,362
  71,380
  91,849
  116,013
  144,062
  176,129
  212,295
  252,589
  297,000
  345,482
  397,966
  454,368
  514,595
  578,558
  646,173
  717,368
  792,091
  870,307
  952,004
  1,037,193
  1,125,911
  1,218,215
  1,314,191
  1,413,946
Adjusted assets (=assets-cash), $m
  3,896
  6,228
  9,623
  14,391
  20,880
  29,459
  40,499
  54,362
  71,380
  91,849
  116,013
  144,062
  176,129
  212,295
  252,589
  297,000
  345,482
  397,966
  454,368
  514,595
  578,558
  646,173
  717,368
  792,091
  870,307
  952,004
  1,037,193
  1,125,911
  1,218,215
  1,314,191
  1,413,946
Revenue / Adjusted assets
  0.000
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
  0.177
Average production assets, $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
Working capital, $m
  0
  182
  281
  420
  610
  860
  1,183
  1,588
  2,085
  2,682
  3,388
  4,207
  5,144
  6,200
  7,377
  8,674
  10,090
  11,623
  13,270
  15,029
  16,897
  18,871
  20,951
  23,133
  25,417
  27,803
  30,291
  32,882
  35,578
  38,381
  41,294
Total debt, $m
  114
  1,599
  3,762
  6,799
  10,933
  16,397
  23,430
  32,260
  43,101
  56,140
  71,532
  89,399
  109,826
  132,864
  158,531
  186,821
  217,704
  251,137
  287,064
  325,429
  366,173
  409,244
  454,595
  502,194
  552,017
  604,058
  658,324
  714,837
  773,635
  834,772
  898,316
Total liabilities, $m
  2,482
  3,967
  6,130
  9,167
  13,301
  18,765
  25,798
  34,628
  45,469
  58,508
  73,900
  91,767
  112,194
  135,232
  160,899
  189,189
  220,072
  253,505
  289,432
  327,797
  368,541
  411,612
  456,963
  504,562
  554,385
  606,426
  660,692
  717,205
  776,003
  837,140
  900,684
Total equity, $m
  1,414
  2,261
  3,493
  5,224
  7,579
  10,694
  14,701
  19,733
  25,911
  33,341
  42,113
  52,294
  63,935
  77,063
  91,690
  107,811
  125,410
  144,462
  164,936
  186,798
  210,017
  234,561
  260,405
  287,529
  315,921
  345,577
  376,501
  408,706
  442,212
  477,051
  513,262
Total liabilities and equity, $m
  3,896
  6,228
  9,623
  14,391
  20,880
  29,459
  40,499
  54,361
  71,380
  91,849
  116,013
  144,061
  176,129
  212,295
  252,589
  297,000
  345,482
  397,967
  454,368
  514,595
  578,558
  646,173
  717,368
  792,091
  870,306
  952,003
  1,037,193
  1,125,911
  1,218,215
  1,314,191
  1,413,946
Debt-to-equity ratio
  0.081
  0.710
  1.080
  1.300
  1.440
  1.530
  1.590
  1.630
  1.660
  1.680
  1.700
  1.710
  1.720
  1.720
  1.730
  1.730
  1.740
  1.740
  1.740
  1.740
  1.740
  1.740
  1.750
  1.750
  1.750
  1.750
  1.750
  1.750
  1.750
  1.750
  1.750
Adjusted equity ratio
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363
  0.363

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  28
  193
  299
  441
  625
  852
  1,127
  1,449
  1,817
  2,230
  2,683
  3,172
  3,694
  4,242
  4,813
  5,402
  6,007
  6,623
  7,251
  7,888
  8,534
  9,189
  9,855
  10,532
  11,222
  11,928
  12,651
  13,394
  14,160
  14,951
  15,770
Depreciation, amort., depletion, $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
Funds from operations, $m
  -118
  193
  299
  441
  625
  852
  1,127
  1,449
  1,817
  2,230
  2,683
  3,172
  3,694
  4,242
  4,813
  5,402
  6,007
  6,623
  7,251
  7,888
  8,534
  9,189
  9,855
  10,532
  11,222
  11,928
  12,651
  13,394
  14,160
  14,951
  15,770
Change in working capital, $m
  -123
  68
  99
  139
  190
  251
  322
  405
  497
  598
  706
  819
  937
  1,056
  1,177
  1,297
  1,416
  1,533
  1,647
  1,759
  1,868
  1,975
  2,079
  2,182
  2,284
  2,386
  2,488
  2,591
  2,696
  2,803
  2,913
Cash from operations, $m
  5
  124
  200
  302
  435
  602
  804
  1,044
  1,320
  1,632
  1,977
  2,353
  2,757
  3,186
  3,636
  4,105
  4,591
  5,091
  5,604
  6,129
  6,666
  7,214
  7,775
  8,350
  8,938
  9,542
  10,163
  10,803
  11,464
  12,148
  12,856
Maintenance CAPEX, $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
New CAPEX, $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 investing activities, $m
  -53
  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
Free cash flow, $m
  -48
  124
  200
  302
  435
  602
  804
  1,044
  1,320
  1,632
  1,977
  2,353
  2,757
  3,186
  3,636
  4,105
  4,591
  5,091
  5,604
  6,129
  6,666
  7,214
  7,775
  8,350
  8,938
  9,542
  10,163
  10,803
  11,464
  12,148
  12,856
Issuance/(repayment) of debt, $m
  22
  1,485
  2,162
  3,037
  4,134
  5,465
  7,033
  8,830
  10,841
  13,039
  15,392
  17,867
  20,427
  23,038
  25,667
  28,290
  30,883
  33,433
  35,928
  38,365
  40,744
  43,070
  45,352
  47,598
  49,824
  52,041
  54,266
  56,513
  58,798
  61,137
  63,544
Issuance/(repurchase) of shares, $m
  -2
  654
  933
  1,289
  1,731
  2,262
  2,881
  3,583
  4,361
  5,201
  6,089
  7,009
  7,947
  8,886
  9,814
  10,719
  11,592
  12,428
  13,223
  13,975
  14,685
  15,355
  15,989
  16,592
  17,170
  17,728
  18,273
  18,810
  19,347
  19,888
  20,441
Cash from financing (excl. dividends), $m  
  38
  2,139
  3,095
  4,326
  5,865
  7,727
  9,914
  12,413
  15,202
  18,240
  21,481
  24,876
  28,374
  31,924
  35,481
  39,009
  42,475
  45,861
  49,151
  52,340
  55,429
  58,425
  61,341
  64,190
  66,994
  69,769
  72,539
  75,323
  78,145
  81,025
  83,985
Total cash flow (excl. dividends), $m
  -10
  2,264
  3,295
  4,629
  6,300
  8,328
  10,718
  13,458
  16,522
  19,871
  23,458
  27,230
  31,131
  35,109
  39,117
  43,114
  47,066
  50,952
  54,754
  58,468
  62,095
  65,640
  69,116
  72,541
  75,932
  79,311
  82,702
  86,126
  89,609
  93,173
  96,841
Retained Cash Flow (-), $m
  -34
  -847
  -1,232
  -1,731
  -2,356
  -3,114
  -4,008
  -5,032
  -6,178
  -7,430
  -8,771
  -10,182
  -11,641
  -13,128
  -14,627
  -16,121
  -17,599
  -19,052
  -20,474
  -21,863
  -23,218
  -24,544
  -25,844
  -27,124
  -28,392
  -29,656
  -30,924
  -32,204
  -33,507
  -34,839
  -36,211
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
 
  1,417
  2,063
  2,898
  3,944
  5,214
  6,710
  8,426
  10,344
  12,441
  14,687
  17,048
  19,490
  21,981
  24,491
  26,993
  29,467
  31,900
  34,281
  36,606
  38,876
  41,096
  43,272
  45,416
  47,539
  49,655
  51,778
  53,922
  56,102
  58,334
  60,630
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
 
  1,359
  1,889
  2,522
  3,248
  4,042
  4,870
  5,692
  6,465
  7,147
  7,700
  8,096
  8,317
  8,358
  8,222
  7,925
  7,488
  6,941
  6,313
  5,636
  4,940
  4,251
  3,590
  2,977
  2,421
  1,932
  1,511
  1,157
  868
  637
  457
Current shareholders' claim on cash, %
  100
  70.3
  51.1
  38.2
  29.4
  23.1
  18.5
  15.2
  12.6
  10.7
  9.1
  7.9
  7.0
  6.2
  5.5
  5.0
  4.6
  4.2
  3.9
  3.6
  3.3
  3.1
  3.0
  2.8
  2.6
  2.5
  2.4
  2.3
  2.2
  2.1
  2.0

Third Point Reinsurance Ltd., through its subsidiaries, provides various specialty property and casualty reinsurance products in the Americas, Europe, the Middle East, Africa, and Asia. The company operates in two segments, Property and Casualty Reinsurance, and Catastrophe Risk Management. The Property and Casualty Reinsurance segment underwrites property, personal automobile, workers compensation, homeownersÂ’, crop insurance, mortgage insurance, extended warranty insurance, general and professional liability, and multi-line reinsurance for insurance and reinsurance companies. The Catastrophe Risk Management segment underwrites property catastrophe exposures; and writes excess of loss catastrophe reinsurance. The company was incorporated in 2011 and is headquartered in Pembroke, Bermuda.

FINANCIAL RATIOS  of  Third Point Reinsurance (TPRE)

Valuation Ratios
P/E Ratio 54.4
Price to Sales 2.2
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 304.6
Price to Free Cash Flow 304.6
Growth Rates
Sales Growth Rate 19.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 8.1%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.3%
Ret/ On Assets - 3 Yr. Avg. 0.3%
Return On Total Capital 1.9%
Ret/ On T. Cap. - 3 Yr. Avg. -0.2%
Return On Equity 2%
Return On Equity - 3 Yr. Avg. -0.2%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 8.3%
EBITDA Margin - 3 Yr. Avg. 2.2%
Operating Margin 3.3%
Oper. Margin - 3 Yr. Avg. -0.1%
Pre-Tax Margin 4.9%
Pre-Tax Margin - 3 Yr. Avg. 0.3%
Net Profit Margin 4.1%
Net Profit Margin - 3 Yr. Avg. -0.5%
Effective Tax Rate 14.7%
Eff/ Tax Rate - 3 Yr. Avg. 8.7%
Payout Ratio 0%

TPRE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TPRE stock intrinsic value calculation we used $689 million for the last fiscal year's total revenue generated by Third Point Reinsurance. The default revenue input number comes from 2016 income statement of Third Point Reinsurance. 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 TPRE stock valuation model: a) initial revenue growth rate of 60% 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 TPRE is calculated based on our internal credit rating of Third Point Reinsurance, 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 Third Point Reinsurance.
    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 TPRE stock the variable cost ratio is equal to 23.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $546 million in the base year in the intrinsic value calculation for TPRE 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 20.3% for Third Point Reinsurance.

Corporate tax rate of 27% is the nominal tax rate for Third Point Reinsurance. 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 TPRE 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 TPRE are equal to 0%.

Life of production assets of 10 years is the average useful life of capital assets used in Third Point Reinsurance 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 TPRE is equal to 16.5%. 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 - $1414 million for Third Point Reinsurance - 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 108.434 million for Third Point Reinsurance 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 Third Point Reinsurance at the current share price and the inputted number of shares is $1.6 billion.

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COMPANY NEWS

▶ Third Point's Rumored Involvement Boosts Gilead Sciences   [Aug-09-17 12:45PM  Barrons.com]
▶ Third Point Reinsurance posts 2Q profit   [11:15AM  Associated Press]
▶ Daniel Loeb Discusses Baxter, Alibaba in Q2 Letter   [Jul-26-17 03:36PM  GuruFocus.com]
▶ Third Point Reinsurance posts 1Q profit   [May-05-17 05:03AM  Associated Press]
▶ Third Point Reinsurance posts 4Q loss   [Feb-23-17 05:57PM  Associated Press]
▶ A Side Door into Marquee Hedge Funds   [Feb-14-17 03:06PM  Barrons.com]
▶ A Side Door into Marquee Hedge Funds   [03:06PM  at Barrons.com]
▶ [$$] How to Invest With Ackman and Loeb   [Feb-11-17 12:01AM  at Barrons.com]
▶ Is Third Point Reinsurance Ltd (TPRE) Worthy of Your Portfolio?   [Dec-15-16 11:08PM  at Insider Monkey]
▶ Should You Buy Pacira Pharmaceuticals Inc (PCRX)?   [Dec-08-16 02:06AM  at Insider Monkey]
▶ Third Point Reinsurance CEO Likens M&A Deals to Marriages   [Oct-25-16 09:08AM  at Investopedia]
▶ Third Point Reinsurance Notes Largest Profit in Years   [Aug-08-16 03:16PM  at Investopedia]
▶ [$$] Doubts raised over hedge fund reinsurers   [Jul-06-16 03:37PM  at Financial Times]
Stock chart of TPRE Financial statements of TPRE
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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