Intrinsic value of Web.com Group - WEB

Previous Close

$23.10

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$23.10

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of WEB 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 1.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  30.94
  35.50
  32.45
  29.71
  27.23
  25.01
  23.01
  21.21
  19.59
  18.13
  16.82
  15.63
  14.57
  13.61
  12.75
  11.98
  11.28
  10.65
  10.09
  9.58
  9.12
  8.71
  8.34
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.60
  6.44
Revenue, $m
  711
  963
  1,276
  1,655
  2,106
  2,633
  3,238
  3,925
  4,694
  5,545
  6,477
  7,490
  8,581
  9,750
  10,993
  12,310
  13,698
  15,157
  16,686
  18,284
  19,952
  21,689
  23,498
  25,378
  27,333
  29,365
  31,476
  33,670
  35,951
  38,322
  40,789
Variable operating expenses, $m
 
  824
  1,063
  1,352
  1,697
  2,099
  2,562
  3,087
  3,675
  4,325
  5,038
  5,725
  6,559
  7,452
  8,403
  9,409
  10,470
  11,586
  12,754
  13,976
  15,250
  16,578
  17,961
  19,398
  20,892
  22,445
  24,059
  25,736
  27,479
  29,292
  31,177
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
  666
  824
  1,063
  1,352
  1,697
  2,099
  2,562
  3,087
  3,675
  4,325
  5,038
  5,725
  6,559
  7,452
  8,403
  9,409
  10,470
  11,586
  12,754
  13,976
  15,250
  16,578
  17,961
  19,398
  20,892
  22,445
  24,059
  25,736
  27,479
  29,292
  31,177
Operating income, $m
  45
  140
  213
  303
  409
  533
  676
  838
  1,019
  1,219
  1,439
  1,765
  2,022
  2,297
  2,590
  2,901
  3,228
  3,572
  3,932
  4,309
  4,702
  5,111
  5,537
  5,980
  6,441
  6,920
  7,417
  7,934
  8,472
  9,030
  9,612
EBITDA, $m
  123
  263
  348
  452
  575
  718
  884
  1,071
  1,281
  1,513
  1,768
  2,044
  2,342
  2,661
  3,000
  3,359
  3,738
  4,136
  4,554
  4,990
  5,445
  5,919
  6,413
  6,926
  7,459
  8,014
  8,590
  9,189
  9,811
  10,458
  11,131
Interest expense (income), $m
  16
  23
  38
  58
  81
  109
  142
  180
  222
  270
  323
  381
  444
  512
  584
  661
  743
  830
  920
  1,015
  1,115
  1,218
  1,326
  1,438
  1,555
  1,677
  1,803
  1,934
  2,070
  2,212
  2,360
Earnings before tax, $m
  14
  117
  175
  245
  328
  424
  534
  658
  797
  949
  1,116
  1,384
  1,578
  1,786
  2,006
  2,239
  2,485
  2,742
  3,012
  3,293
  3,587
  3,893
  4,211
  4,542
  4,886
  5,243
  5,614
  6,000
  6,401
  6,818
  7,252
Tax expense, $m
  10
  32
  47
  66
  88
  114
  144
  178
  215
  256
  301
  374
  426
  482
  542
  605
  671
  740
  813
  889
  968
  1,051
  1,137
  1,226
  1,319
  1,416
  1,516
  1,620
  1,728
  1,841
  1,958
Net income, $m
  4
  86
  128
  179
  239
  309
  390
  480
  581
  693
  815
  1,010
  1,152
  1,304
  1,465
  1,635
  1,814
  2,002
  2,199
  2,404
  2,619
  2,842
  3,074
  3,316
  3,567
  3,827
  4,098
  4,380
  4,673
  4,977
  5,294

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  20
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,514
  2,024
  2,681
  3,477
  4,424
  5,530
  6,803
  8,246
  9,861
  11,649
  13,608
  15,735
  18,028
  20,483
  23,095
  25,861
  28,778
  31,843
  35,055
  38,412
  41,916
  45,566
  49,365
  53,316
  57,423
  61,691
  66,126
  70,736
  75,527
  80,509
  85,691
Adjusted assets (=assets-cash), $m
  1,494
  2,024
  2,681
  3,477
  4,424
  5,530
  6,803
  8,246
  9,861
  11,649
  13,608
  15,735
  18,028
  20,483
  23,095
  25,861
  28,778
  31,843
  35,055
  38,412
  41,916
  45,566
  49,365
  53,316
  57,423
  61,691
  66,126
  70,736
  75,527
  80,509
  85,691
Revenue / Adjusted assets
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
  0.476
Average production assets, $m
  414
  524
  694
  900
  1,146
  1,432
  1,762
  2,135
  2,553
  3,016
  3,524
  4,075
  4,668
  5,304
  5,980
  6,696
  7,452
  8,246
  9,077
  9,947
  10,854
  11,799
  12,783
  13,806
  14,869
  15,974
  17,123
  18,317
  19,557
  20,847
  22,189
Working capital, $m
  -210
  -289
  -383
  -497
  -632
  -790
  -971
  -1,178
  -1,408
  -1,663
  -1,943
  -2,247
  -2,574
  -2,925
  -3,298
  -3,693
  -4,109
  -4,547
  -5,006
  -5,485
  -5,986
  -6,507
  -7,049
  -7,613
  -8,200
  -8,809
  -9,443
  -10,101
  -10,785
  -11,497
  -12,237
Total debt, $m
  664
  1,095
  1,650
  2,323
  3,123
  4,058
  5,134
  6,353
  7,718
  9,228
  10,884
  12,681
  14,619
  16,693
  18,900
  21,237
  23,702
  26,292
  29,006
  31,844
  34,804
  37,888
  41,098
  44,437
  47,907
  51,514
  55,262
  59,157
  63,205
  67,415
  71,794
Total liabilities, $m
  1,278
  1,710
  2,265
  2,938
  3,738
  4,673
  5,749
  6,968
  8,333
  9,843
  11,499
  13,296
  15,234
  17,308
  19,515
  21,852
  24,317
  26,907
  29,621
  32,459
  35,419
  38,503
  41,713
  45,052
  48,522
  52,129
  55,877
  59,772
  63,820
  68,030
  72,409
Total equity, $m
  235
  314
  416
  539
  686
  857
  1,054
  1,278
  1,528
  1,806
  2,109
  2,439
  2,794
  3,175
  3,580
  4,008
  4,461
  4,936
  5,434
  5,954
  6,497
  7,063
  7,652
  8,264
  8,901
  9,562
  10,250
  10,964
  11,707
  12,479
  13,282
Total liabilities and equity, $m
  1,513
  2,024
  2,681
  3,477
  4,424
  5,530
  6,803
  8,246
  9,861
  11,649
  13,608
  15,735
  18,028
  20,483
  23,095
  25,860
  28,778
  31,843
  35,055
  38,413
  41,916
  45,566
  49,365
  53,316
  57,423
  61,691
  66,127
  70,736
  75,527
  80,509
  85,691
Debt-to-equity ratio
  2.826
  3.490
  3.970
  4.310
  4.550
  4.730
  4.870
  4.970
  5.050
  5.110
  5.160
  5.200
  5.230
  5.260
  5.280
  5.300
  5.310
  5.330
  5.340
  5.350
  5.360
  5.360
  5.370
  5.380
  5.380
  5.390
  5.390
  5.400
  5.400
  5.400
  5.410
Adjusted equity ratio
  0.144
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4
  86
  128
  179
  239
  309
  390
  480
  581
  693
  815
  1,010
  1,152
  1,304
  1,465
  1,635
  1,814
  2,002
  2,199
  2,404
  2,619
  2,842
  3,074
  3,316
  3,567
  3,827
  4,098
  4,380
  4,673
  4,977
  5,294
Depreciation, amort., depletion, $m
  78
  123
  135
  149
  166
  185
  208
  233
  262
  294
  329
  279
  320
  363
  410
  459
  510
  565
  622
  681
  743
  808
  876
  946
  1,018
  1,094
  1,173
  1,255
  1,340
  1,428
  1,520
Funds from operations, $m
  122
  209
  263
  328
  405
  495
  598
  714
  844
  987
  1,143
  1,289
  1,472
  1,667
  1,874
  2,093
  2,324
  2,567
  2,820
  3,085
  3,362
  3,650
  3,950
  4,261
  4,585
  4,921
  5,271
  5,635
  6,012
  6,405
  6,814
Change in working capital, $m
  -6
  -76
  -94
  -114
  -135
  -158
  -182
  -206
  -231
  -255
  -280
  -304
  -327
  -350
  -373
  -395
  -417
  -438
  -459
  -479
  -500
  -521
  -542
  -564
  -586
  -609
  -633
  -658
  -684
  -711
  -740
Cash from operations, $m
  128
  311
  356
  441
  540
  653
  779
  920
  1,074
  1,242
  1,423
  1,593
  1,799
  2,017
  2,247
  2,488
  2,741
  3,004
  3,279
  3,565
  3,862
  4,171
  4,492
  4,825
  5,171
  5,531
  5,905
  6,293
  6,697
  7,117
  7,554
Maintenance CAPEX, $m
  0
  -26
  -36
  -48
  -62
  -78
  -98
  -121
  -146
  -175
  -207
  -241
  -279
  -320
  -363
  -410
  -459
  -510
  -565
  -622
  -681
  -743
  -808
  -876
  -946
  -1,018
  -1,094
  -1,173
  -1,255
  -1,340
  -1,428
New CAPEX, $m
  -22
  -138
  -170
  -206
  -245
  -287
  -330
  -374
  -418
  -463
  -507
  -551
  -594
  -636
  -676
  -716
  -755
  -794
  -832
  -869
  -907
  -945
  -984
  -1,023
  -1,063
  -1,105
  -1,148
  -1,194
  -1,241
  -1,290
  -1,342
Cash from investing activities, $m
  -327
  -164
  -206
  -254
  -307
  -365
  -428
  -495
  -564
  -638
  -714
  -792
  -873
  -956
  -1,039
  -1,126
  -1,214
  -1,304
  -1,397
  -1,491
  -1,588
  -1,688
  -1,792
  -1,899
  -2,009
  -2,123
  -2,242
  -2,367
  -2,496
  -2,630
  -2,770
Free cash flow, $m
  -199
  147
  150
  188
  233
  288
  352
  426
  510
  604
  709
  801
  927
  1,062
  1,207
  1,362
  1,527
  1,700
  1,883
  2,074
  2,274
  2,483
  2,700
  2,927
  3,162
  3,407
  3,662
  3,926
  4,201
  4,487
  4,784
Issuance/(repayment) of debt, $m
  235
  448
  555
  673
  800
  935
  1,075
  1,219
  1,365
  1,511
  1,655
  1,798
  1,937
  2,074
  2,207
  2,337
  2,465
  2,590
  2,714
  2,837
  2,960
  3,084
  3,210
  3,339
  3,470
  3,607
  3,748
  3,895
  4,049
  4,210
  4,379
Issuance/(repurchase) of shares, $m
  -28
  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  
  201
  448
  555
  673
  800
  935
  1,075
  1,219
  1,365
  1,511
  1,655
  1,798
  1,937
  2,074
  2,207
  2,337
  2,465
  2,590
  2,714
  2,837
  2,960
  3,084
  3,210
  3,339
  3,470
  3,607
  3,748
  3,895
  4,049
  4,210
  4,379
Total cash flow (excl. dividends), $m
  2
  595
  705
  861
  1,033
  1,223
  1,427
  1,645
  1,875
  2,115
  2,364
  2,599
  2,864
  3,136
  3,415
  3,700
  3,992
  4,290
  4,597
  4,911
  5,234
  5,567
  5,910
  6,265
  6,633
  7,014
  7,410
  7,821
  8,250
  8,697
  9,163
Retained Cash Flow (-), $m
  3
  -82
  -102
  -123
  -147
  -172
  -197
  -224
  -250
  -277
  -304
  -330
  -355
  -380
  -405
  -429
  -452
  -475
  -498
  -520
  -543
  -566
  -589
  -612
  -637
  -662
  -687
  -714
  -743
  -772
  -803
Prev. year cash balance distribution, $m
 
  3
  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
 
  516
  604
  737
  887
  1,051
  1,230
  1,421
  1,624
  1,838
  2,061
  2,269
  2,509
  2,756
  3,010
  3,271
  3,539
  3,815
  4,099
  4,390
  4,691
  5,001
  5,321
  5,653
  5,996
  6,352
  6,722
  7,107
  7,507
  7,925
  8,360
Discount rate, %
 
  9.90
  10.40
  10.91
  11.46
  12.03
  12.64
  13.27
  13.93
  14.63
  15.36
  16.13
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.83
  25.02
  26.27
  27.58
  28.96
  30.41
  31.93
  33.52
  35.20
  36.96
  38.81
  40.75
PV of cash for distribution, $m
 
  470
  495
  540
  574
  596
  602
  594
  572
  538
  494
  438
  384
  328
  274
  223
  177
  137
  103
  76
  54
  37
  25
  16
  10
  6
  4
  2
  1
  1
  0
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

Web.com Group, Inc. provides a range of Internet services to small businesses in North America, South America, and the United Kingdom. The company offers a range of Web services and products that enable small businesses to establish, maintain, promote, and optimize their online presence. It provides domain name registration, such as .com and .net domains, as well as a suite of domain name services, including domain name registration, transfer, renewal, expiration protection, and privacy services. The company also offers Do-It-For-Me Web solutions, including Custom Websites with built in marketing, analytics, and hosting facilities; Ignite that enables Websites to be promoted in various directories; Facebook Boost by Web.com, which designs or updates the business profile page on Facebook and includes monthly advertising and postings; and eCommerce that designs, setups, and configures the online store and shopping cart. In addition, it provides Do-It-Yourself Web solutions, such as Website building and marketing solutions, such as hosting services; Website building tools for users to customize their design; eCommerce tool that help businesses begin to sell from their Website; and email services comprising email accounts, storage, spam and virus protection, Webmail, and document sharing. Further, the company offers online marketing services, including search engine optimization; local and national search engine marketing services; Leads by Web; lead generation services to contractors, homebuilders, and remodeling professionals; and online advertising services. Web.com Group, Inc. markets its products and services through online channels, outbound and inbound telesales, television and radio advertising campaigns, local direct sales, and branding, as well as through resellers, affiliate networks, and private label partners. The company was incorporated in 1999 and is headquartered in Jacksonville, Florida.

FINANCIAL RATIOS  of  Web.com Group (WEB)

Valuation Ratios
P/E Ratio 272.2
Price to Sales 1.5
Price to Book 4.6
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow 10.3
Growth Rates
Sales Growth Rate 30.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 46.7%
Cap. Spend. - 3 Yr. Gr. Rate 8%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 275.3%
Total Debt to Equity 282.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 0.6%
Ret/ On Assets - 3 Yr. Avg. 2.3%
Return On Total Capital 0.5%
Ret/ On T. Cap. - 3 Yr. Avg. 4.1%
Return On Equity 1.7%
Return On Equity - 3 Yr. Avg. 12.8%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 68.4%
Gross Margin - 3 Yr. Avg. 66.1%
EBITDA Margin 15.2%
EBITDA Margin - 3 Yr. Avg. 17.8%
Operating Margin 6.3%
Oper. Margin - 3 Yr. Avg. 8.1%
Pre-Tax Margin 2%
Pre-Tax Margin - 3 Yr. Avg. 3.8%
Net Profit Margin 0.6%
Net Profit Margin - 3 Yr. Avg. 5%
Effective Tax Rate 71.4%
Eff/ Tax Rate - 3 Yr. Avg. 63.5%
Payout Ratio 0%

WEB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WEB stock intrinsic value calculation we used $711 million for the last fiscal year's total revenue generated by Web.com Group. The default revenue input number comes from 2016 income statement of Web.com 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 WEB stock valuation model: a) initial revenue growth rate of 35.5% 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 9.9%, whose default value for WEB is calculated based on our internal credit rating of Web.com 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 Web.com 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 WEB stock the variable cost ratio is equal to 88.7%.

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 WEB 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 Web.com Group.

Corporate tax rate of 27% is the nominal tax rate for Web.com 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 WEB 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 WEB are equal to 54.4%.

Life of production assets of 14.6 years is the average useful life of capital assets used in Web.com 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 WEB is equal to -30%. 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 - $235 million for Web.com 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 49.195 million for Web.com 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 Web.com Group at the current share price and the inputted number of shares is $1.1 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
GDDY GoDaddy Cl A 43.11 prem.  prem.
EIGI Endurance Inte 8.50 prem.  prem.
TCX Tucows 58.45 prem.  prem.
DLX Deluxe Corp. 68.97 prem.  prem.
WIX Wix.com 72.80 prem.  prem.
CRM Salesforce.com 88.47 prem.  prem.
NAME Rightside Grou 10.68 prem.  prem.
IBM International 154.40 prem.  prem.

COMPANY NEWS

▶ 5 Stocks To Buy At The Top   [Jun-02-17 01:39PM  Zacks]
▶ Web.com Stock Rises on Reports of Buyout Talks   [May-26-17 12:00PM  TheStreet.com]
▶ Florida tech company is new anchor tenant of SkySong 4 building   [May-10-17 06:00PM  American City Business Journals]
▶ Web.com posts 1Q net income of $6.5 million   [May-04-17 06:00PM  Associated Press]
▶ ETFs with exposure to Web.com Group, Inc. : April 7, 2017   [Apr-07-17 05:46PM  Capital Cube]
▶ Web.com to Present at Roth Conference in March 2017   [Feb-24-17 10:00AM  GlobeNewswire]
▶ Correction: Earns-Web.com Group story   [Feb-10-17 04:00PM  Associated Press]
▶ Web.com Completes Donweb.com Acquisition   [Feb-01-17 08:00AM  GlobeNewswire]
▶ 4 Top Small-Cap Stocks to Buy This Winter   [Jan-23-17 09:20AM  at Motley Fool]
▶ Web.com Group Inc (WEB): Hedge Funds Are Snapping Up   [Dec-14-16 11:31AM  at Insider Monkey]
▶ Web.com Announces Agreement to Acquire Donweb.com   [Dec-12-16 04:05PM  GlobeNewswire]
▶ 5 Intriguing Additions To Cheyne Capitals Portfolio in Q3   [Dec-01-16 07:53AM  at Insider Monkey]
▶ 3 Cheap Tech Stocks You Can Buy Right Now   [11:32AM  at Motley Fool]
▶ Web.com to Host Investor Day on December 13, 2016   [Nov-14-16 02:00PM  GlobeNewswire]
▶ Web.com trounces Q3 expectations, extends share repurpose program   [Nov-04-16 08:15AM  at bizjournals.com]
▶ Jim Furyk on Golf's Future as an Olympic Sport   [Oct-20-16 07:17PM  at MarketWatch]
▶ Five Under-the-Radar Tech Stocks that Okumus Fund Loves   [Oct-07-16 08:00AM  at Insider Monkey]
▶ Web.com reports 2Q loss   [Aug-05-16 07:15AM  AP]
Stock chart of WEB Financial statements of WEB Annual reports of WEB
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.