Intrinsic value of Wyndham Worldwide - WYN

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$95.89

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$95.89

 
Intrinsic value

$64.84

 
Up/down potential

-32%

 
Rating

sell

 
Value-price divergence* premium content

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*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 9.9

 

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
  186
  183
  190
  199
  208
  218
  229
  241
  254
  268
  283
  299
  317
  335
  355
  375
  397
  421
  445
  471
  498
  527
  558
  590
  624
  660
  697
  737
  778
  822
Earnings before tax, $m
  940
  831
  857
  882
  915
  955
  1,002
  1,056
  1,118
  1,187
  1,263
  1,508
  1,600
  1,701
  1,810
  1,928
  2,055
  2,192
  2,338
  2,495
  2,663
  2,842
  3,033
  3,236
  3,453
  3,683
  3,928
  4,188
  4,463
  4,755
  5,065
Tax expense, $m
  328
  224
  231
  238
  247
  258
  270
  285
  302
  320
  341
  407
  432
  459
  489
  521
  555
  592
  631
  674
  719
  767
  819
  874
  932
  994
  1,061
  1,131
  1,205
  1,284
  1,368
Net income, $m
  611
  607
  626
  644
  668
  697
  731
  771
  816
  866
  922
  1,101
  1,168
  1,242
  1,321
  1,407
  1,500
  1,600
  1,707
  1,821
  1,944
  2,075
  2,214
  2,363
  2,521
  2,689
  2,867
  3,057
  3,258
  3,471
  3,697

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
  9,813
  10,038
  10,296
  10,586
  10,907
  11,259
  11,643
  12,058
  12,505
  12,985
  13,498
  14,046
  14,629
  15,249
  15,907
  16,604
  17,342
  18,122
  18,947
  19,817
  20,736
  21,705
  22,726
  23,802
  24,935
  26,128
  27,383
  28,705
  30,095
  31,557
Adjusted assets (=assets-cash), $m
  9,620
  9,813
  10,038
  10,296
  10,586
  10,907
  11,259
  11,643
  12,058
  12,505
  12,985
  13,498
  14,046
  14,629
  15,249
  15,907
  16,604
  17,342
  18,122
  18,947
  19,817
  20,736
  21,705
  22,726
  23,802
  24,935
  26,128
  27,383
  28,705
  30,095
  31,557
Revenue / Adjusted assets
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
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
  5,238
  5,442
  5,674
  5,934
  6,223
  6,540
  6,885
  7,259
  7,661
  8,093
  8,555
  9,048
  9,573
  10,131
  10,723
  11,351
  12,015
  12,717
  13,459
  14,243
  15,069
  15,941
  16,860
  17,828
  18,848
  19,922
  21,052
  22,241
  23,492
  24,808
Total liabilities, $m
  9,105
  8,831
  9,035
  9,267
  9,527
  9,816
  10,133
  10,478
  10,852
  11,254
  11,686
  12,148
  12,641
  13,166
  13,724
  14,316
  14,944
  15,608
  16,310
  17,052
  17,836
  18,662
  19,534
  20,453
  21,421
  22,441
  23,515
  24,645
  25,834
  27,085
  28,401
Total equity, $m
  714
  981
  1,004
  1,030
  1,059
  1,091
  1,126
  1,164
  1,206
  1,250
  1,298
  1,350
  1,405
  1,463
  1,525
  1,591
  1,660
  1,734
  1,812
  1,895
  1,982
  2,074
  2,170
  2,273
  2,380
  2,493
  2,613
  2,738
  2,870
  3,009
  3,156
Total liabilities and equity, $m
  9,819
  9,812
  10,039
  10,297
  10,586
  10,907
  11,259
  11,642
  12,058
  12,504
  12,984
  13,498
  14,046
  14,629
  15,249
  15,907
  16,604
  17,342
  18,122
  18,947
  19,818
  20,736
  21,704
  22,726
  23,801
  24,934
  26,128
  27,383
  28,704
  30,094
  31,557
Debt-to-equity ratio
  7.720
  5.340
  5.420
  5.510
  5.610
  5.710
  5.810
  5.910
  6.020
  6.130
  6.230
  6.340
  6.440
  6.540
  6.640
  6.740
  6.840
  6.930
  7.020
  7.100
  7.190
  7.270
  7.340
  7.420
  7.490
  7.560
  7.620
  7.690
  7.750
  7.810
  7.860
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
  607
  626
  644
  668
  697
  731
  771
  816
  866
  922
  1,101
  1,168
  1,242
  1,321
  1,407
  1,500
  1,600
  1,707
  1,821
  1,944
  2,075
  2,214
  2,363
  2,521
  2,689
  2,867
  3,057
  3,258
  3,471
  3,697
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
  904
  926
  948
  976
  1,009
  1,048
  1,093
  1,144
  1,201
  1,264
  1,289
  1,364
  1,446
  1,534
  1,629
  1,732
  1,842
  1,959
  2,086
  2,220
  2,364
  2,517
  2,679
  2,853
  3,036
  3,232
  3,439
  3,658
  3,891
  4,137
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
  1,580
  931
  953
  981
  1,016
  1,055
  1,101
  1,152
  1,210
  1,273
  1,299
  1,375
  1,457
  1,546
  1,642
  1,745
  1,856
  1,975
  2,102
  2,237
  2,382
  2,536
  2,700
  2,874
  3,059
  3,255
  3,464
  3,684
  3,918
  4,166
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
  1,408
  752
  765
  784
  808
  838
  872
  913
  958
  1,009
  1,022
  1,084
  1,152
  1,226
  1,307
  1,393
  1,487
  1,587
  1,695
  1,811
  1,934
  2,066
  2,206
  2,356
  2,515
  2,685
  2,865
  3,056
  3,258
  3,473
Issuance/(repayment) of debt, $m
  311
  -75
  203
  232
  261
  289
  317
  345
  374
  402
  432
  462
  493
  525
  558
  592
  627
  664
  702
  742
  783
  827
  872
  919
  968
  1,020
  1,074
  1,130
  1,189
  1,251
  1,316
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
  -75
  203
  232
  261
  289
  317
  345
  374
  402
  432
  462
  493
  525
  558
  592
  627
  664
  702
  742
  783
  827
  872
  919
  968
  1,020
  1,074
  1,130
  1,189
  1,251
  1,316
Total cash flow (excl. dividends), $m
  237
  1,333
  955
  997
  1,044
  1,097
  1,155
  1,218
  1,286
  1,361
  1,441
  1,484
  1,577
  1,677
  1,784
  1,899
  2,021
  2,151
  2,290
  2,437
  2,594
  2,761
  2,938
  3,125
  3,324
  3,535
  3,758
  3,995
  4,245
  4,510
  4,789
Retained Cash Flow (-), $m
  236
  -267
  -23
  -26
  -29
  -32
  -35
  -38
  -42
  -45
  -48
  -51
  -55
  -58
  -62
  -66
  -70
  -74
  -78
  -82
  -87
  -92
  -97
  -102
  -108
  -113
  -119
  -126
  -132
  -139
  -146
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
 
  1,066
  932
  971
  1,016
  1,065
  1,119
  1,179
  1,245
  1,316
  1,393
  1,433
  1,523
  1,619
  1,722
  1,833
  1,951
  2,077
  2,212
  2,355
  2,507
  2,669
  2,841
  3,023
  3,217
  3,422
  3,639
  3,869
  4,113
  4,371
  4,643
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
 
  962
  752
  693
  634
  575
  516
  458
  401
  347
  296
  241
  199
  162
  129
  100
  76
  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 16.6
Price to Sales 1.8
Price to Book 14.2
Price to Tangible Book
Price to Cash Flow 10.4
Price to Free Cash Flow 12.9
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 103.69 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 $9.9 billion.


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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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