Intrinsic value of Xylem - XYL

Previous Close

$63.68

  Intrinsic Value

$72.77

stock screener

  Rating & Target

hold

+14%

  Value-price divergence*

+83%

Previous close

$63.68

 
Intrinsic value

$72.77

 
Up/down potential

+14%

 
Rating

hold

 
Value-price divergence*

+83%

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

We calculate the intrinsic value of XYL 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 11.5

 

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, %
  3.23
  24.90
  22.91
  21.12
  19.51
  18.06
  16.75
  15.58
  14.52
  13.57
  12.71
  11.94
  11.24
  10.62
  10.06
  9.55
  9.10
  8.69
  8.32
  7.99
  7.69
  7.42
  7.18
  6.96
  6.76
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
Revenue, $m
  3,771
  4,710
  5,789
  7,012
  8,379
  9,892
  11,549
  13,348
  15,286
  17,360
  19,566
  21,902
  24,365
  26,953
  29,664
  32,498
  35,454
  38,534
  41,740
  45,073
  48,539
  52,140
  55,882
  59,772
  63,814
  68,018
  72,391
  76,941
  81,678
  86,613
  91,755
Variable operating expenses, $m
 
  4,056
  4,925
  5,909
  7,010
  8,229
  9,563
  11,011
  12,572
  14,242
  16,018
  17,636
  19,619
  21,703
  23,886
  26,167
  28,548
  31,028
  33,609
  36,293
  39,084
  41,983
  44,997
  48,128
  51,384
  54,768
  58,289
  61,953
  65,768
  69,741
  73,882
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
  3,365
  4,056
  4,925
  5,909
  7,010
  8,229
  9,563
  11,011
  12,572
  14,242
  16,018
  17,636
  19,619
  21,703
  23,886
  26,167
  28,548
  31,028
  33,609
  36,293
  39,084
  41,983
  44,997
  48,128
  51,384
  54,768
  58,289
  61,953
  65,768
  69,741
  73,882
Operating income, $m
  406
  654
  864
  1,103
  1,369
  1,664
  1,987
  2,337
  2,715
  3,118
  3,548
  4,267
  4,746
  5,250
  5,778
  6,330
  6,906
  7,506
  8,131
  8,780
  9,455
  10,157
  10,886
  11,643
  12,431
  13,250
  14,101
  14,988
  15,911
  16,872
  17,874
EBITDA, $m
  557
  991
  1,218
  1,475
  1,763
  2,081
  2,430
  2,808
  3,216
  3,652
  4,116
  4,608
  5,126
  5,671
  6,241
  6,837
  7,459
  8,107
  8,781
  9,483
  10,212
  10,970
  11,757
  12,575
  13,426
  14,310
  15,230
  16,187
  17,184
  18,222
  19,304
Interest expense (income), $m
  49
  74
  109
  149
  195
  246
  302
  364
  431
  504
  581
  664
  751
  843
  939
  1,041
  1,147
  1,257
  1,372
  1,492
  1,616
  1,746
  1,880
  2,020
  2,165
  2,316
  2,473
  2,636
  2,806
  2,983
  3,167
Earnings before tax, $m
  340
  581
  756
  954
  1,174
  1,418
  1,684
  1,973
  2,283
  2,615
  2,967
  3,603
  3,995
  4,407
  4,839
  5,290
  5,760
  6,249
  6,759
  7,288
  7,839
  8,411
  9,006
  9,623
  10,266
  10,934
  11,628
  12,351
  13,104
  13,889
  14,706
Tax expense, $m
  80
  157
  204
  257
  317
  383
  455
  533
  616
  706
  801
  973
  1,079
  1,190
  1,307
  1,428
  1,555
  1,687
  1,825
  1,968
  2,117
  2,271
  2,432
  2,598
  2,772
  2,952
  3,140
  3,335
  3,538
  3,750
  3,971
Net income, $m
  260
  424
  552
  696
  857
  1,035
  1,229
  1,440
  1,667
  1,909
  2,166
  2,630
  2,917
  3,217
  3,532
  3,861
  4,205
  4,562
  4,934
  5,321
  5,722
  6,140
  6,574
  7,025
  7,494
  7,982
  8,489
  9,017
  9,566
  10,139
  10,735

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  308
  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
  6,474
  7,696
  9,459
  11,457
  13,692
  16,164
  18,872
  21,811
  24,978
  28,366
  31,971
  35,788
  39,813
  44,041
  48,471
  53,101
  57,932
  62,964
  68,202
  73,649
  79,312
  85,196
  91,311
  97,666
  104,272
  111,141
  118,285
  125,721
  133,461
  141,524
  149,927
Adjusted assets (=assets-cash), $m
  6,166
  7,696
  9,459
  11,457
  13,692
  16,164
  18,872
  21,811
  24,978
  28,366
  31,971
  35,788
  39,813
  44,041
  48,471
  53,101
  57,932
  62,964
  68,202
  73,649
  79,312
  85,196
  91,311
  97,666
  104,272
  111,141
  118,285
  125,721
  133,461
  141,524
  149,927
Revenue / Adjusted assets
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
Average production assets, $m
  1,346
  1,681
  2,067
  2,503
  2,991
  3,532
  4,123
  4,765
  5,457
  6,198
  6,985
  7,819
  8,698
  9,622
  10,590
  11,602
  12,657
  13,757
  14,901
  16,091
  17,328
  18,614
  19,950
  21,338
  22,782
  24,282
  25,843
  27,468
  29,159
  30,921
  32,757
Working capital, $m
  601
  692
  851
  1,031
  1,232
  1,454
  1,698
  1,962
  2,247
  2,552
  2,876
  3,220
  3,582
  3,962
  4,361
  4,777
  5,212
  5,665
  6,136
  6,626
  7,135
  7,665
  8,215
  8,786
  9,381
  9,999
  10,641
  11,310
  12,007
  12,732
  13,488
Total debt, $m
  2,368
  3,110
  4,261
  5,565
  7,025
  8,639
  10,407
  12,327
  14,394
  16,607
  18,961
  21,454
  24,082
  26,843
  29,735
  32,759
  35,913
  39,200
  42,620
  46,177
  49,875
  53,717
  57,710
  61,860
  66,174
  70,659
  75,324
  80,180
  85,234
  90,499
  95,986
Total liabilities, $m
  4,284
  5,026
  6,177
  7,481
  8,941
  10,555
  12,323
  14,243
  16,310
  18,523
  20,877
  23,370
  25,998
  28,759
  31,651
  34,675
  37,829
  41,116
  44,536
  48,093
  51,791
  55,633
  59,626
  63,776
  68,090
  72,575
  77,240
  82,096
  87,150
  92,415
  97,902
Total equity, $m
  2,190
  2,671
  3,282
  3,976
  4,751
  5,609
  6,548
  7,568
  8,667
  9,843
  11,094
  12,419
  13,815
  15,282
  16,819
  18,426
  20,102
  21,849
  23,666
  25,556
  27,521
  29,563
  31,685
  33,890
  36,182
  38,566
  41,045
  43,625
  46,311
  49,109
  52,025
Total liabilities and equity, $m
  6,474
  7,697
  9,459
  11,457
  13,692
  16,164
  18,871
  21,811
  24,977
  28,366
  31,971
  35,789
  39,813
  44,041
  48,470
  53,101
  57,931
  62,965
  68,202
  73,649
  79,312
  85,196
  91,311
  97,666
  104,272
  111,141
  118,285
  125,721
  133,461
  141,524
  149,927
Debt-to-equity ratio
  1.081
  1.160
  1.300
  1.400
  1.480
  1.540
  1.590
  1.630
  1.660
  1.690
  1.710
  1.730
  1.740
  1.760
  1.770
  1.780
  1.790
  1.790
  1.800
  1.810
  1.810
  1.820
  1.820
  1.830
  1.830
  1.830
  1.840
  1.840
  1.840
  1.840
  1.850
Adjusted equity ratio
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  260
  424
  552
  696
  857
  1,035
  1,229
  1,440
  1,667
  1,909
  2,166
  2,630
  2,917
  3,217
  3,532
  3,861
  4,205
  4,562
  4,934
  5,321
  5,722
  6,140
  6,574
  7,025
  7,494
  7,982
  8,489
  9,017
  9,566
  10,139
  10,735
Depreciation, amort., depletion, $m
  151
  337
  353
  373
  394
  417
  443
  471
  502
  534
  568
  341
  380
  420
  462
  507
  553
  601
  651
  703
  757
  813
  871
  932
  995
  1,060
  1,129
  1,199
  1,273
  1,350
  1,430
Funds from operations, $m
  558
  760
  905
  1,069
  1,251
  1,453
  1,673
  1,911
  2,168
  2,443
  2,734
  2,972
  3,296
  3,638
  3,995
  4,368
  4,757
  5,163
  5,585
  6,023
  6,479
  6,953
  7,445
  7,957
  8,489
  9,042
  9,617
  10,216
  10,839
  11,489
  12,166
Change in working capital, $m
  61
  138
  159
  180
  201
  222
  244
  264
  285
  305
  324
  343
  362
  380
  399
  417
  435
  453
  471
  490
  509
  529
  550
  572
  594
  618
  643
  669
  696
  725
  756
Cash from operations, $m
  497
  622
  746
  889
  1,050
  1,230
  1,429
  1,647
  1,883
  2,138
  2,410
  2,628
  2,934
  3,257
  3,596
  3,952
  4,323
  4,710
  5,113
  5,533
  5,970
  6,424
  6,895
  7,385
  7,894
  8,424
  8,974
  9,547
  10,143
  10,764
  11,410
Maintenance CAPEX, $m
  0
  -59
  -73
  -90
  -109
  -131
  -154
  -180
  -208
  -238
  -271
  -305
  -341
  -380
  -420
  -462
  -507
  -553
  -601
  -651
  -703
  -757
  -813
  -871
  -932
  -995
  -1,060
  -1,129
  -1,199
  -1,273
  -1,350
New CAPEX, $m
  -124
  -336
  -385
  -436
  -488
  -540
  -592
  -642
  -692
  -740
  -788
  -834
  -879
  -924
  -968
  -1,012
  -1,055
  -1,100
  -1,144
  -1,190
  -1,237
  -1,286
  -1,336
  -1,388
  -1,443
  -1,501
  -1,561
  -1,624
  -1,691
  -1,762
  -1,836
Cash from investing activities, $m
  -1,886
  -395
  -458
  -526
  -597
  -671
  -746
  -822
  -900
  -978
  -1,059
  -1,139
  -1,220
  -1,304
  -1,388
  -1,474
  -1,562
  -1,653
  -1,745
  -1,841
  -1,940
  -2,043
  -2,149
  -2,259
  -2,375
  -2,496
  -2,621
  -2,753
  -2,890
  -3,035
  -3,186
Free cash flow, $m
  -1,389
  228
  288
  362
  452
  559
  683
  825
  983
  1,159
  1,351
  1,489
  1,714
  1,954
  2,208
  2,477
  2,761
  3,058
  3,368
  3,692
  4,030
  4,381
  4,746
  5,126
  5,519
  5,928
  6,353
  6,794
  7,252
  7,729
  8,224
Issuance/(repayment) of debt, $m
  1,126
  1,002
  1,151
  1,304
  1,459
  1,614
  1,768
  1,919
  2,068
  2,213
  2,354
  2,492
  2,628
  2,761
  2,893
  3,023
  3,154
  3,286
  3,420
  3,557
  3,697
  3,843
  3,993
  4,150
  4,314
  4,485
  4,666
  4,855
  5,055
  5,265
  5,487
Issuance/(repurchase) of shares, $m
  20
  105
  60
  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  
  1,146
  1,107
  1,211
  1,304
  1,459
  1,614
  1,768
  1,919
  2,068
  2,213
  2,354
  2,492
  2,628
  2,761
  2,893
  3,023
  3,154
  3,286
  3,420
  3,557
  3,697
  3,843
  3,993
  4,150
  4,314
  4,485
  4,666
  4,855
  5,055
  5,265
  5,487
Total cash flow (excl. dividends), $m
  -260
  1,334
  1,499
  1,667
  1,912
  2,174
  2,451
  2,744
  3,051
  3,372
  3,706
  3,982
  4,342
  4,715
  5,101
  5,501
  5,915
  6,344
  6,789
  7,249
  7,727
  8,224
  8,739
  9,275
  9,833
  10,414
  11,019
  11,649
  12,307
  12,994
  13,711
Retained Cash Flow (-), $m
  -106
  -529
  -612
  -693
  -776
  -858
  -940
  -1,020
  -1,099
  -1,176
  -1,251
  -1,324
  -1,396
  -1,467
  -1,537
  -1,607
  -1,676
  -1,746
  -1,818
  -1,890
  -1,965
  -2,042
  -2,122
  -2,205
  -2,292
  -2,383
  -2,479
  -2,580
  -2,686
  -2,798
  -2,916
Prev. year cash balance distribution, $m
 
  48
  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
 
  853
  888
  973
  1,136
  1,316
  1,512
  1,724
  1,952
  2,196
  2,455
  2,657
  2,945
  3,247
  3,564
  3,894
  4,239
  4,598
  4,971
  5,359
  5,763
  6,182
  6,617
  7,070
  7,541
  8,030
  8,539
  9,069
  9,621
  10,196
  10,795
Discount rate, %
 
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
 
  794
  763
  767
  814
  851
  874
  882
  875
  853
  817
  748
  692
  628
  559
  488
  417
  349
  286
  229
  179
  137
  102
  74
  52
  36
  24
  15
  10
  6
  3
Current shareholders' claim on cash, %
  100
  99.1
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7

Xylem Inc. is a water technology company. The Company designs, manufactures and services engineered solutions across a range of critical applications. It is an equipment and service provider for water and wastewater applications with a portfolio of products and services addressing the cycle of water, from collection, distribution and use to the return of water to the environment. It has three business segments, which include Water Infrastructure, Applied Water and Sensus. Water Infrastructure focuses on the transportation, treatment and testing of water, offering a range of products, including water and wastewater pumps, and controls and systems. Applied Water serves the uses of water and focuses on the residential, commercial, industrial and agricultural markets. The Sensus segment's products include metering, networked communications, measurement and control technologies, software and services, including cloud-based analytics, remote monitoring and data management.

FINANCIAL RATIOS  of  Xylem (XYL)

Valuation Ratios
P/E Ratio 44
Price to Sales 3
Price to Book 5.2
Price to Tangible Book
Price to Cash Flow 23
Price to Free Cash Flow 30.6
Growth Rates
Sales Growth Rate 3.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6%
Cap. Spend. - 3 Yr. Gr. Rate -0.3%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 96.3%
Total Debt to Equity 108.1%
Interest Coverage 8
Management Effectiveness
Return On Assets 5.3%
Ret/ On Assets - 3 Yr. Avg. 7.1%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 8.8%
Return On Equity 12.2%
Return On Equity - 3 Yr. Avg. 14.6%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 38.7%
Gross Margin - 3 Yr. Avg. 38.6%
EBITDA Margin 14.3%
EBITDA Margin - 3 Yr. Avg. 15.4%
Operating Margin 10.8%
Oper. Margin - 3 Yr. Avg. 11.8%
Pre-Tax Margin 9%
Pre-Tax Margin - 3 Yr. Avg. 10.3%
Net Profit Margin 6.9%
Net Profit Margin - 3 Yr. Avg. 8.3%
Effective Tax Rate 23.5%
Eff/ Tax Rate - 3 Yr. Avg. 19.7%
Payout Ratio 43.1%

XYL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the XYL stock intrinsic value calculation we used $3771 million for the last fiscal year's total revenue generated by Xylem. The default revenue input number comes from 2016 income statement of Xylem. 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 XYL stock valuation model: a) initial revenue growth rate of 24.9% 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 7.5%, whose default value for XYL is calculated based on our internal credit rating of Xylem, 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 Xylem.
    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 XYL stock the variable cost ratio is equal to 87.5%.

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 XYL 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 Xylem.

Corporate tax rate of 27% is the nominal tax rate for Xylem. 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 XYL 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 XYL are equal to 35.7%.

Life of production assets of 22.9 years is the average useful life of capital assets used in Xylem 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 XYL is equal to 14.7%. 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 - $2190 million for Xylem - 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 180.721 million for Xylem 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 Xylem at the current share price and the inputted number of shares is $11.5 billion.

RELATED COMPANIES Price Int.Val. Rating
FLS Flowserve 44.62 23.71  sell
GRC Gorman-Rupp 32.47 9.35  str.sell
IEX IDEX 124.53 80.80  sell
GGG Graco Inc. 126.80 74.95  sell
FELE Franklin Elect 46.25 33.86  hold
CFX Colfax 41.95 30.35  sell

COMPANY NEWS

▶ Should You Sell Xylem Inc (XYL) At $65.96?   [Oct-17-17 12:11PM  Simply Wall St.]
▶ ETFs with exposure to Xylem, Inc. : October 10, 2017   [Oct-10-17 11:56AM  Capital Cube]
▶ ETFs with exposure to Xylem, Inc. : September 27, 2017   [Sep-27-17 10:44AM  Capital Cube]
▶ New president appointed for N.C.-based utility metering and data operation   [Sep-25-17 08:37AM  American City Business Journals]
▶ Xylem names new top exec at Raleigh's Sensus   [08:50AM  American City Business Journals]
▶ Mario Gabelli Comments on Xylem Inc.   [Sep-15-17 01:49PM  GuruFocus.com]
▶ Jeanne Beliveau-Dunn Appointed to Xylem Board of Directors   [Aug-16-17 06:00PM  Business Wire]
▶ Xylem tops 2Q profit forecasts   [Aug-01-17 09:44PM  Associated Press]
▶ Water Equipment And Services Stock Swimming At Top Of Buy Range   [Jul-13-17 11:02AM  Investor's Business Daily]
▶ ETFs with exposure to Xylem, Inc. : June 30, 2017   [Jun-30-17 03:37PM  Capital Cube]
▶ ETFs with exposure to Xylem, Inc. : June 19, 2017   [Jun-19-17 04:22PM  Capital Cube]
▶ Xylem Inc. declares Q2 dividend of 18 cents per share   [May-11-17 04:30PM  Business Wire]
▶ Xylem Inc. to participate in the Barclays Water Symposium   [May-09-17 09:00AM  Business Wire]
▶ Xylem CEO: Raleigh's Sensus grew 7 percent   [May-04-17 09:50AM  American City Business Journals]
▶ Xylem to host its 2017 Investor and Analyst Day   [Mar-31-17 10:10AM  Business Wire]
▶ Five ways to bet on water -Barron's   [Mar-19-17 02:50PM  Reuters]
▶ [$$] 5 Ways to Invest in Water   [Mar-18-17 01:21AM  at Barrons.com]
▶ Six months after $1.7B Sensus buy, Xylem CEO talks integration   [Feb-07-17 11:04AM  at bizjournals.com]
Financial statements of XYL
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.