Intrinsic value of Wyndham Worldwide - WYN

Previous Close

$99.10

  Intrinsic Value

$58.46

stock screener

  Rating & Target

sell

-41%

  Value-price divergence*

-80%

Previous close

$99.10

 
Intrinsic value

$58.46

 
Up/down potential

-41%

 
Rating

sell

 
Value-price divergence*

-80%

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

We calculate the intrinsic value of WYN 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 10.3

 

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, %
  1.14
  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
  5,599
  5,711
  5,842
  5,992
  6,161
  6,348
  6,553
  6,776
  7,018
  7,278
  7,557
  7,856
  8,175
  8,514
  8,875
  9,258
  9,664
  10,093
  10,547
  11,027
  11,534
  12,068
  12,632
  13,226
  13,852
  14,512
  15,206
  15,937
  16,706
  17,515
  18,366
Variable operating expenses, $m
 
  2,898
  2,961
  3,033
  3,114
  3,203
  3,302
  3,408
  3,524
  3,649
  3,783
  3,766
  3,919
  4,081
  4,254
  4,438
  4,632
  4,838
  5,056
  5,286
  5,529
  5,785
  6,055
  6,340
  6,640
  6,957
  7,289
  7,640
  8,008
  8,396
  8,804
Fixed operating expenses, $m
 
  1,796
  1,841
  1,887
  1,934
  1,982
  2,032
  2,083
  2,135
  2,188
  2,243
  2,299
  2,356
  2,415
  2,476
  2,537
  2,601
  2,666
  2,733
  2,801
  2,871
  2,943
  3,016
  3,092
  3,169
  3,248
  3,329
  3,413
  3,498
  3,585
  3,675
Total operating expenses, $m
  4,553
  4,694
  4,802
  4,920
  5,048
  5,185
  5,334
  5,491
  5,659
  5,837
  6,026
  6,065
  6,275
  6,496
  6,730
  6,975
  7,233
  7,504
  7,789
  8,087
  8,400
  8,728
  9,071
  9,432
  9,809
  10,205
  10,618
  11,053
  11,506
  11,981
  12,479
Operating income, $m
  1,046
  1,017
  1,041
  1,073
  1,113
  1,162
  1,219
  1,285
  1,359
  1,441
  1,531
  1,791
  1,900
  2,018
  2,145
  2,282
  2,430
  2,589
  2,759
  2,940
  3,134
  3,340
  3,560
  3,794
  4,043
  4,307
  4,588
  4,885
  5,200
  5,534
  5,887
EBITDA, $m
  1,298
  1,314
  1,341
  1,377
  1,421
  1,475
  1,537
  1,608
  1,687
  1,775
  1,873
  1,979
  2,096
  2,222
  2,358
  2,504
  2,662
  2,831
  3,011
  3,204
  3,410
  3,630
  3,863
  4,111
  4,375
  4,655
  4,952
  5,267
  5,600
  5,953
  6,327
Interest expense (income), $m
  51
  193
  190
  197
  205
  215
  225
  236
  249
  262
  276
  292
  308
  326
  345
  365
  386
  408
  432
  457
  484
  512
  541
  572
  605
  640
  676
  715
  755
  797
  842
Earnings before tax, $m
  940
  824
  851
  876
  908
  948
  994
  1,049
  1,110
  1,179
  1,255
  1,499
  1,591
  1,692
  1,800
  1,918
  2,044
  2,181
  2,327
  2,483
  2,650
  2,829
  3,019
  3,222
  3,438
  3,667
  3,911
  4,170
  4,445
  4,736
  5,045
Tax expense, $m
  328
  223
  230
  236
  245
  256
  268
  283
  300
  318
  339
  405
  430
  457
  486
  518
  552
  589
  628
  670
  716
  764
  815
  870
  928
  990
  1,056
  1,126
  1,200
  1,279
  1,362
Net income, $m
  611
  602
  621
  639
  663
  692
  726
  765
  810
  860
  916
  1,095
  1,162
  1,235
  1,314
  1,400
  1,492
  1,592
  1,698
  1,813
  1,935
  2,065
  2,204
  2,352
  2,510
  2,677
  2,855
  3,044
  3,245
  3,457
  3,683

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  199
  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
  9,819
  10,019
  10,250
  10,513
  10,809
  11,137
  11,496
  11,888
  12,311
  12,768
  13,258
  13,782
  14,342
  14,937
  15,570
  16,242
  16,954
  17,707
  18,504
  19,346
  20,234
  21,172
  22,161
  23,204
  24,303
  25,460
  26,678
  27,960
  29,309
  30,729
  32,222
Adjusted assets (=assets-cash), $m
  9,620
  10,019
  10,250
  10,513
  10,809
  11,137
  11,496
  11,888
  12,311
  12,768
  13,258
  13,782
  14,342
  14,937
  15,570
  16,242
  16,954
  17,707
  18,504
  19,346
  20,234
  21,172
  22,161
  23,204
  24,303
  25,460
  26,678
  27,960
  29,309
  30,729
  32,222
Revenue / Adjusted assets
  0.582
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
Average production assets, $m
  1,795
  1,833
  1,875
  1,924
  1,978
  2,038
  2,103
  2,175
  2,253
  2,336
  2,426
  2,522
  2,624
  2,733
  2,849
  2,972
  3,102
  3,240
  3,386
  3,540
  3,702
  3,874
  4,055
  4,246
  4,447
  4,658
  4,881
  5,116
  5,363
  5,622
  5,896
Working capital, $m
  -220
  -194
  -199
  -204
  -209
  -216
  -223
  -230
  -239
  -247
  -257
  -267
  -278
  -289
  -302
  -315
  -329
  -343
  -359
  -375
  -392
  -410
  -429
  -450
  -471
  -493
  -517
  -542
  -568
  -596
  -624
Total debt, $m
  5,512
  5,424
  5,632
  5,869
  6,135
  6,430
  6,753
  7,106
  7,487
  7,898
  8,339
  8,811
  9,314
  9,850
  10,420
  11,025
  11,665
  12,343
  13,060
  13,818
  14,618
  15,462
  16,352
  17,291
  18,279
  19,321
  20,417
  21,571
  22,785
  24,063
  25,406
Total liabilities, $m
  9,105
  9,017
  9,225
  9,462
  9,728
  10,023
  10,346
  10,699
  11,080
  11,491
  11,932
  12,404
  12,907
  13,443
  14,013
  14,618
  15,258
  15,936
  16,653
  17,411
  18,211
  19,055
  19,945
  20,884
  21,872
  22,914
  24,010
  25,164
  26,378
  27,656
  28,999
Total equity, $m
  714
  1,002
  1,025
  1,051
  1,081
  1,114
  1,150
  1,189
  1,231
  1,277
  1,326
  1,378
  1,434
  1,494
  1,557
  1,624
  1,695
  1,771
  1,850
  1,935
  2,023
  2,117
  2,216
  2,320
  2,430
  2,546
  2,668
  2,796
  2,931
  3,073
  3,222
Total liabilities and equity, $m
  9,819
  10,019
  10,250
  10,513
  10,809
  11,137
  11,496
  11,888
  12,311
  12,768
  13,258
  13,782
  14,341
  14,937
  15,570
  16,242
  16,953
  17,707
  18,503
  19,346
  20,234
  21,172
  22,161
  23,204
  24,302
  25,460
  26,678
  27,960
  29,309
  30,729
  32,221
Debt-to-equity ratio
  7.720
  5.410
  5.490
  5.580
  5.680
  5.770
  5.870
  5.980
  6.080
  6.190
  6.290
  6.390
  6.490
  6.590
  6.690
  6.790
  6.880
  6.970
  7.060
  7.140
  7.220
  7.300
  7.380
  7.450
  7.520
  7.590
  7.650
  7.710
  7.770
  7.830
  7.880
Adjusted equity ratio
  0.054
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  611
  602
  621
  639
  663
  692
  726
  765
  810
  860
  916
  1,095
  1,162
  1,235
  1,314
  1,400
  1,492
  1,592
  1,698
  1,813
  1,935
  2,065
  2,204
  2,352
  2,510
  2,677
  2,855
  3,044
  3,245
  3,457
  3,683
Depreciation, amort., depletion, $m
  252
  297
  300
  304
  308
  312
  317
  323
  328
  335
  341
  188
  196
  204
  213
  222
  231
  242
  253
  264
  276
  289
  303
  317
  332
  348
  364
  382
  400
  420
  440
Funds from operations, $m
  554
  899
  921
  943
  971
  1,004
  1,043
  1,088
  1,139
  1,195
  1,257
  1,283
  1,358
  1,439
  1,527
  1,622
  1,724
  1,834
  1,951
  2,077
  2,211
  2,354
  2,507
  2,669
  2,842
  3,025
  3,220
  3,426
  3,645
  3,877
  4,123
Change in working capital, $m
  -419
  -4
  -4
  -5
  -6
  -6
  -7
  -8
  -8
  -9
  -9
  -10
  -11
  -12
  -12
  -13
  -14
  -15
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -24
  -25
  -26
  -28
  -29
Cash from operations, $m
  973
  903
  926
  948
  976
  1,010
  1,050
  1,096
  1,147
  1,204
  1,267
  1,293
  1,368
  1,450
  1,539
  1,635
  1,738
  1,848
  1,967
  2,093
  2,228
  2,372
  2,526
  2,689
  2,863
  3,047
  3,243
  3,451
  3,671
  3,905
  4,152
Maintenance CAPEX, $m
  0
  -134
  -137
  -140
  -144
  -148
  -152
  -157
  -162
  -168
  -174
  -181
  -188
  -196
  -204
  -213
  -222
  -231
  -242
  -253
  -264
  -276
  -289
  -303
  -317
  -332
  -348
  -364
  -382
  -400
  -420
New CAPEX, $m
  -191
  -38
  -42
  -48
  -54
  -60
  -66
  -72
  -78
  -84
  -90
  -96
  -102
  -109
  -116
  -123
  -130
  -138
  -146
  -154
  -163
  -172
  -181
  -191
  -201
  -212
  -223
  -235
  -247
  -260
  -273
Cash from investing activities, $m
  -353
  -172
  -179
  -188
  -198
  -208
  -218
  -229
  -240
  -252
  -264
  -277
  -290
  -305
  -320
  -336
  -352
  -369
  -388
  -407
  -427
  -448
  -470
  -494
  -518
  -544
  -571
  -599
  -629
  -660
  -693
Free cash flow, $m
  620
  730
  747
  760
  779
  803
  832
  867
  907
  952
  1,003
  1,016
  1,078
  1,146
  1,219
  1,299
  1,386
  1,479
  1,579
  1,686
  1,801
  1,924
  2,056
  2,196
  2,345
  2,504
  2,673
  2,852
  3,042
  3,245
  3,459
Issuance/(repayment) of debt, $m
  311
  -88
  207
  237
  266
  295
  324
  352
  381
  411
  441
  472
  503
  536
  570
  604
  641
  678
  717
  758
  800
  844
  890
  938
  989
  1,041
  1,096
  1,154
  1,214
  1,277
  1,344
Issuance/(repurchase) of shares, $m
  -619
  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  
  -363
  -88
  207
  237
  266
  295
  324
  352
  381
  411
  441
  472
  503
  536
  570
  604
  641
  678
  717
  758
  800
  844
  890
  938
  989
  1,041
  1,096
  1,154
  1,214
  1,277
  1,344
Total cash flow (excl. dividends), $m
  237
  643
  954
  997
  1,045
  1,098
  1,156
  1,219
  1,288
  1,363
  1,444
  1,488
  1,581
  1,682
  1,789
  1,904
  2,026
  2,157
  2,296
  2,444
  2,601
  2,769
  2,946
  3,134
  3,334
  3,545
  3,769
  4,006
  4,257
  4,522
  4,803
Retained Cash Flow (-), $m
  236
  -288
  -23
  -26
  -30
  -33
  -36
  -39
  -42
  -46
  -49
  -52
  -56
  -60
  -63
  -67
  -71
  -75
  -80
  -84
  -89
  -94
  -99
  -104
  -110
  -116
  -122
  -128
  -135
  -142
  -149
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
 
  355
  931
  971
  1,015
  1,065
  1,120
  1,180
  1,246
  1,318
  1,395
  1,435
  1,525
  1,622
  1,726
  1,837
  1,955
  2,082
  2,216
  2,360
  2,513
  2,675
  2,847
  3,030
  3,224
  3,429
  3,647
  3,878
  4,122
  4,380
  4,653
Discount rate, %
 
  10.80
  11.34
  11.91
  12.50
  13.13
  13.78
  14.47
  15.20
  15.96
  16.75
  17.59
  18.47
  19.40
  20.37
  21.38
  22.45
  23.58
  24.75
  25.99
  27.29
  28.66
  30.09
  31.59
  33.17
  34.83
  36.57
  38.40
  40.32
  42.34
  44.45
PV of cash for distribution, $m
 
  320
  751
  693
  634
  575
  516
  458
  402
  348
  296
  241
  200
  162
  129
  100
  77
  57
  41
  29
  20
  13
  9
  5
  3
  2
  1
  1
  0
  0
  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

Wyndham Worldwide Corporation provides hospitality services and products to individual and business customers worldwide. It operates through three segments: Hotel Group, Destination Network, and Vacation Ownership. The Hotel Group segment primarily franchises hotels in the upscale, upper midscale, midscale, economy, and extended stay segments, as well as provides property management services for full-service and select limited-service hotels. This segment operates approximately 7,923 franchised hotels and 697,600 hotel rooms. The Destination Network segment provides vacation exchange services and products to owners of intervals of vacation ownership interests (VOIs); manages and markets vacation rental properties primarily on behalf of independent owners. The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers; and provides consumer financing in connection with the sale of VOIs, as well as offers property management services at resorts. The company offers its hospitality services and products under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club, and WorldMark by Wyndham. Wyndham Worldwide Corporation was founded in 1990 and is headquartered in Parsippany, New Jersey.

FINANCIAL RATIOS  of  Wyndham Worldwide (WYN)

Valuation Ratios
P/E Ratio 17.1
Price to Sales 1.9
Price to Book 14.7
Price to Tangible Book
Price to Cash Flow 10.8
Price to Free Cash Flow 13.4
Growth Rates
Sales Growth Rate 1.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -14%
Cap. Spend. - 3 Yr. Gr. Rate -4.3%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 739.9%
Total Debt to Equity 772%
Interest Coverage 19
Management Effectiveness
Return On Assets 6.6%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 9.9%
Ret/ On T. Cap. - 3 Yr. Avg. 9.3%
Return On Equity 73.4%
Return On Equity - 3 Yr. Avg. 55.2%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 51.2%
Gross Margin - 3 Yr. Avg. 51.7%
EBITDA Margin 22.2%
EBITDA Margin - 3 Yr. Avg. 22.6%
Operating Margin 18.7%
Oper. Margin - 3 Yr. Avg. 18.3%
Pre-Tax Margin 16.8%
Pre-Tax Margin - 3 Yr. Avg. 16.4%
Net Profit Margin 10.9%
Net Profit Margin - 3 Yr. Avg. 10.7%
Effective Tax Rate 34.9%
Eff/ Tax Rate - 3 Yr. Avg. 35.2%
Payout Ratio 36.5%

WYN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WYN stock intrinsic value calculation we used $5599 million for the last fiscal year's total revenue generated by Wyndham Worldwide. The default revenue input number comes from 2016 income statement of Wyndham Worldwide. 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 WYN 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 10.8%, whose default value for WYN is calculated based on our internal credit rating of Wyndham Worldwide, 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 Wyndham Worldwide.
    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 WYN stock the variable cost ratio is equal to 50.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1752 million in the base year in the intrinsic value calculation for WYN 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 Wyndham Worldwide.

Corporate tax rate of 27% is the nominal tax rate for Wyndham Worldwide. 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 WYN 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 WYN are equal to 32.1%.

Life of production assets of 13.4 years is the average useful life of capital assets used in Wyndham Worldwide 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 WYN is equal to -3.4%. 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 - $714 million for Wyndham Worldwide - 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 104.075 million for Wyndham Worldwide 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 Wyndham Worldwide at the current share price and the inputted number of shares is $10.3 billion.

RELATED COMPANIES Price Int.Val. Rating
VAC Marriott Vacat 110.66 77.49  sell
PCLN Priceline Grou 1,855.72 1,469.07  sell
MAR Marriott Inter 100.30 530.50  str.buy
HLT Hilton Worldwi 62.44 166.52  str.buy
IHG InterContinent 51.83 16.25  str.sell

COMPANY NEWS

▶ RCI Points Exchange Program Launches in Asia   [Aug-15-17 08:00PM  PR Newswire]
▶ Bulls sail with Norwegian Cruise Line & a trade update   [Aug-11-17 01:48PM  CNBC Videos]
▶ Why Marriotts Shares Fell after Its 2Q17 Results   [Aug-09-17 11:40AM  Market Realist]
▶ RCI Announces Agreement to Acquire DAE   [12:01AM  PR Newswire]
▶ Wyndham Championship brings charities under new umbrella   [Aug-07-17 02:20PM  American City Business Journals]
▶ Wyndham Worldwide: Cramer's Top Takeaways   [06:34AM  TheStreet.com]
▶ WYN CEO on hotel-timeshare giant's split   [07:13PM  CNBC Videos]
▶ Bulls book into this hotel stock   [12:30PM  CNBC Videos]
▶ Wyndham Worldwide spins off Orlando timeshare division   [11:50AM  American City Business Journals]
▶ Wyndham tops Street 2Q forecasts   [05:06AM  Associated Press]
▶ [$$] Wyndham to Separate Hotel, Timeshare Businesses   [12:47AM  The Wall Street Journal]
▶ [$$] Wyndham to Separate Hotel, Timeshare Businesses   [Aug-02-17 07:20PM  The Wall Street Journal]
▶ Wyndham Worldwide Declares Cash Dividend   [05:30PM  PR Newswire]
▶ How Hyatts Valuation Compares   [09:07AM  Market Realist]
▶ Why Analysts Expect a Rise in Wyndhams 2Q17 Revenue Growth   [Jul-26-17 10:38AM  Market Realist]
▶ Should Dividend Investors Buy Wyndham Stock?   [Jul-25-17 01:35PM  Market Realist]
▶ Can Wyndhams Profitability Improve in 2017?   [12:05PM  Market Realist]
▶ What Can We Expect from Wyndham in 2Q17?   [10:22AM  Market Realist]
▶ Wyndham Championship announces deal with Ticketmaster, new tier pricing   [08:05AM  American City Business Journals]
▶ Wyndham buying Chanhassen-based AmericInn hotel brand for $170M   [09:22AM  American City Business Journals]
▶ Hotel, Cruise Stocks Are Booming Amid Trump Travel Ban   [Jul-13-17 06:00AM  Investopedia]
▶ What Are Analysts Recommending for Major US Hotels?   [Jul-05-17 07:36AM  Market Realist]
▶ How Has the Hotel Industry Performed in 2017?   [Jul-04-17 10:37AM  Market Realist]
▶ How An NFL Team, A Highway And Towels Benefit MGM Resorts   [May-19-17 04:05PM  Investor's Business Daily]
▶ Wyndham Worldwide Declares Cash Dividend   [04:17PM  PR Newswire]
▶ Who's there? Groceries are Knocking at your Hotel Door   [May-08-17 08:03AM  PR Newswire]
▶ What Investors Are Willing to Pay for Marriott International   [May-05-17 07:36AM  Market Realist]
▶ Chart in Focus: Marriotts Dividend Payout in 2017   [May-04-17 10:36AM  Market Realist]
Stock chart of WYN Financial statements of WYN
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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