Intrinsic value of Arbor Realty Trust - ABR

Previous Close

$8.66

  Intrinsic Value

$58.99

stock screener

  Rating & Target

str. buy

+581%

Previous close

$8.66

 
Intrinsic value

$58.99

 
Up/down potential

+581%

 
Rating

str. buy

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

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

We calculate the intrinsic value of ABR 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 0.5

 

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, %
  48.95
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  213
  341
  527
  787
  1,143
  1,612
  2,216
  2,975
  3,906
  5,026
  6,348
  7,883
  9,638
  11,616
  13,821
  16,251
  18,904
  21,776
  24,862
  28,158
  31,658
  35,358
  39,253
  43,342
  47,622
  52,092
  56,754
  61,608
  66,659
  71,910
  77,369
Variable operating expenses, $m
 
  248
  381
  569
  825
  1,162
  1,597
  2,142
  2,812
  3,618
  4,569
  5,670
  6,932
  8,356
  9,942
  11,690
  13,598
  15,664
  17,884
  20,255
  22,772
  25,434
  28,236
  31,177
  34,256
  37,471
  40,824
  44,316
  47,949
  51,727
  55,653
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
  175
  248
  381
  569
  825
  1,162
  1,597
  2,142
  2,812
  3,618
  4,569
  5,670
  6,932
  8,356
  9,942
  11,690
  13,598
  15,664
  17,884
  20,255
  22,772
  25,434
  28,236
  31,177
  34,256
  37,471
  40,824
  44,316
  47,949
  51,727
  55,653
Operating income, $m
  39
  93
  145
  218
  318
  450
  619
  832
  1,094
  1,408
  1,779
  2,213
  2,705
  3,260
  3,879
  4,561
  5,306
  6,112
  6,978
  7,903
  8,886
  9,924
  11,017
  12,165
  13,366
  14,621
  15,929
  17,292
  18,710
  20,184
  21,716
EBITDA, $m
  44
  102
  158
  237
  343
  485
  666
  894
  1,174
  1,511
  1,908
  2,370
  2,897
  3,492
  4,155
  4,885
  5,683
  6,546
  7,474
  8,465
  9,517
  10,629
  11,800
  13,029
  14,316
  15,660
  17,061
  18,521
  20,039
  21,618
  23,259
Interest expense (income), $m
  53
  73
  124
  197
  299
  439
  623
  861
  1,159
  1,525
  1,965
  2,484
  3,087
  3,777
  4,555
  5,421
  6,376
  7,418
  8,547
  9,759
  11,054
  12,429
  13,883
  15,414
  17,021
  18,702
  20,459
  22,290
  24,198
  26,183
  28,246
Earnings before tax, $m
  63
  19
  21
  21
  19
  11
  -4
  -29
  -65
  -117
  -186
  -272
  -382
  -516
  -675
  -859
  -1,070
  -1,306
  -1,568
  -1,856
  -2,169
  -2,505
  -2,866
  -3,249
  -3,654
  -4,081
  -4,529
  -4,998
  -5,488
  -5,999
  -6,530
Tax expense, $m
  1
  5
  6
  6
  5
  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
Net income, $m
  50
  14
  15
  16
  14
  8
  -4
  -29
  -65
  -117
  -186
  -272
  -382
  -516
  -675
  -859
  -1,070
  -1,306
  -1,568
  -1,856
  -2,169
  -2,505
  -2,866
  -3,249
  -3,654
  -4,081
  -4,529
  -4,998
  -5,488
  -5,999
  -6,530

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  139
  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
  2,971
  4,544
  7,020
  10,499
  15,234
  21,493
  29,547
  39,661
  52,078
  67,011
  84,641
  105,104
  128,500
  154,886
  184,284
  216,685
  252,057
  290,348
  331,497
  375,438
  422,104
  471,434
  523,377
  577,893
  634,958
  694,562
  756,715
  821,441
  888,785
  958,807
  1,031,586
Adjusted assets (=assets-cash), $m
  2,832
  4,544
  7,020
  10,499
  15,234
  21,493
  29,547
  39,661
  52,078
  67,011
  84,641
  105,104
  128,500
  154,886
  184,284
  216,685
  252,057
  290,348
  331,497
  375,438
  422,104
  471,434
  523,377
  577,893
  634,958
  694,562
  756,715
  821,441
  888,785
  958,807
  1,031,586
Revenue / Adjusted assets
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
  0.075
Average production assets, $m
  76
  122
  188
  281
  408
  575
  791
  1,062
  1,394
  1,794
  2,266
  2,814
  3,441
  4,147
  4,934
  5,802
  6,749
  7,774
  8,876
  10,052
  11,302
  12,623
  14,013
  15,473
  17,001
  18,597
  20,261
  21,994
  23,797
  25,672
  27,621
Working capital, $m
  0
  -223
  -344
  -514
  -746
  -1,053
  -1,447
  -1,942
  -2,550
  -3,282
  -4,145
  -5,147
  -6,293
  -7,586
  -9,025
  -10,612
  -12,344
  -14,220
  -16,235
  -18,387
  -20,673
  -23,088
  -25,632
  -28,302
  -31,097
  -34,016
  -37,060
  -40,230
  -43,528
  -46,958
  -50,522
Total debt, $m
  2,099
  3,541
  5,626
  8,555
  12,542
  17,812
  24,594
  33,110
  43,564
  56,138
  70,982
  88,213
  107,912
  130,129
  154,882
  182,164
  211,947
  244,188
  278,836
  315,834
  355,126
  396,662
  440,398
  486,301
  534,349
  584,536
  636,869
  691,368
  748,072
  807,030
  868,310
Total liabilities, $m
  2,384
  3,826
  5,911
  8,840
  12,827
  18,097
  24,879
  33,395
  43,849
  56,423
  71,267
  88,498
  108,197
  130,414
  155,167
  182,449
  212,232
  244,473
  279,121
  316,119
  355,411
  396,947
  440,683
  486,586
  534,634
  584,821
  637,154
  691,653
  748,357
  807,315
  868,595
Total equity, $m
  587
  718
  1,109
  1,659
  2,407
  3,396
  4,668
  6,266
  8,228
  10,588
  13,373
  16,606
  20,303
  24,472
  29,117
  34,236
  39,825
  45,875
  52,377
  59,319
  66,692
  74,487
  82,694
  91,307
  100,323
  109,741
  119,561
  129,788
  140,428
  151,491
  162,991
Total liabilities and equity, $m
  2,971
  4,544
  7,020
  10,499
  15,234
  21,493
  29,547
  39,661
  52,077
  67,011
  84,640
  105,104
  128,500
  154,886
  184,284
  216,685
  252,057
  290,348
  331,498
  375,438
  422,103
  471,434
  523,377
  577,893
  634,957
  694,562
  756,715
  821,441
  888,785
  958,806
  1,031,586
Debt-to-equity ratio
  3.576
  4.930
  5.070
  5.160
  5.210
  5.250
  5.270
  5.280
  5.290
  5.300
  5.310
  5.310
  5.320
  5.320
  5.320
  5.320
  5.320
  5.320
  5.320
  5.320
  5.320
  5.330
  5.330
  5.330
  5.330
  5.330
  5.330
  5.330
  5.330
  5.330
  5.330
Adjusted equity ratio
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  50
  14
  15
  16
  14
  8
  -4
  -29
  -65
  -117
  -186
  -272
  -382
  -516
  -675
  -859
  -1,070
  -1,306
  -1,568
  -1,856
  -2,169
  -2,505
  -2,866
  -3,249
  -3,654
  -4,081
  -4,529
  -4,998
  -5,488
  -5,999
  -6,530
Depreciation, amort., depletion, $m
  5
  9
  13
  18
  25
  35
  47
  62
  81
  103
  129
  157
  192
  232
  276
  324
  377
  434
  496
  562
  631
  705
  783
  864
  950
  1,039
  1,132
  1,229
  1,329
  1,434
  1,543
Funds from operations, $m
  -202
  24
  29
  34
  39
  43
  43
  33
  15
  -14
  -56
  -115
  -190
  -285
  -400
  -535
  -693
  -872
  -1,072
  -1,294
  -1,537
  -1,800
  -2,083
  -2,384
  -2,704
  -3,042
  -3,397
  -3,770
  -4,159
  -4,565
  -4,987
Change in working capital, $m
  -4
  -83
  -121
  -170
  -232
  -307
  -394
  -495
  -608
  -731
  -863
  -1,002
  -1,146
  -1,292
  -1,440
  -1,587
  -1,732
  -1,875
  -2,015
  -2,152
  -2,285
  -2,416
  -2,544
  -2,670
  -2,795
  -2,919
  -3,044
  -3,170
  -3,298
  -3,429
  -3,564
Cash from operations, $m
  -198
  107
  150
  204
  271
  349
  437
  529
  623
  717
  807
  888
  956
  1,007
  1,040
  1,051
  1,040
  1,004
  943
  858
  748
  616
  461
  285
  90
  -123
  -354
  -600
  -861
  -1,135
  -1,423
Maintenance CAPEX, $m
  0
  -4
  -7
  -11
  -16
  -23
  -32
  -44
  -59
  -78
  -100
  -127
  -157
  -192
  -232
  -276
  -324
  -377
  -434
  -496
  -562
  -631
  -705
  -783
  -864
  -950
  -1,039
  -1,132
  -1,229
  -1,329
  -1,434
New CAPEX, $m
  0
  -46
  -66
  -93
  -127
  -168
  -216
  -271
  -332
  -400
  -472
  -548
  -626
  -706
  -787
  -868
  -947
  -1,025
  -1,102
  -1,177
  -1,249
  -1,321
  -1,391
  -1,460
  -1,528
  -1,596
  -1,664
  -1,733
  -1,803
  -1,875
  -1,949
Cash from investing activities, $m
  -202
  -50
  -73
  -104
  -143
  -191
  -248
  -315
  -391
  -478
  -572
  -675
  -783
  -898
  -1,019
  -1,144
  -1,271
  -1,402
  -1,536
  -1,673
  -1,811
  -1,952
  -2,096
  -2,243
  -2,392
  -2,546
  -2,703
  -2,865
  -3,032
  -3,204
  -3,383
Free cash flow, $m
  -400
  57
  77
  101
  128
  159
  189
  214
  232
  240
  235
  213
  172
  109
  21
  -92
  -232
  -399
  -593
  -815
  -1,063
  -1,336
  -1,635
  -1,957
  -2,302
  -2,669
  -3,057
  -3,465
  -3,893
  -4,340
  -4,806
Issuance/(repayment) of debt, $m
  379
  1,442
  2,085
  2,929
  3,987
  5,270
  6,782
  8,516
  10,455
  12,574
  14,844
  17,231
  19,699
  22,217
  24,753
  27,282
  29,783
  32,241
  34,648
  36,998
  39,293
  41,536
  43,736
  45,903
  48,048
  50,187
  52,332
  54,500
  56,703
  58,959
  61,280
Issuance/(repurchase) of shares, $m
  0
  256
  376
  534
  735
  981
  1,277
  1,627
  2,027
  2,476
  2,971
  3,505
  4,079
  4,685
  5,320
  5,979
  6,658
  7,356
  8,070
  8,799
  9,542
  10,300
  11,073
  11,862
  12,670
  13,499
  14,349
  15,225
  16,129
  17,062
  18,030
Cash from financing (excl. dividends), $m  
  388
  1,698
  2,461
  3,463
  4,722
  6,251
  8,059
  10,143
  12,482
  15,050
  17,815
  20,736
  23,778
  26,902
  30,073
  33,261
  36,441
  39,597
  42,718
  45,797
  48,835
  51,836
  54,809
  57,765
  60,718
  63,686
  66,681
  69,725
  72,832
  76,021
  79,310
Total cash flow (excl. dividends), $m
  -11
  1,755
  2,538
  3,564
  4,849
  6,410
  8,248
  10,356
  12,713
  15,290
  18,050
  20,949
  23,950
  27,011
  30,094
  33,169
  36,210
  39,199
  42,124
  44,982
  47,772
  50,499
  53,174
  55,808
  58,417
  61,017
  63,625
  66,260
  68,939
  71,681
  74,503
Retained Cash Flow (-), $m
  -22
  -270
  -391
  -550
  -748
  -989
  -1,277
  -1,627
  -2,027
  -2,476
  -2,971
  -3,505
  -4,079
  -4,685
  -5,320
  -5,979
  -6,658
  -7,356
  -8,070
  -8,799
  -9,542
  -10,300
  -11,073
  -11,862
  -12,670
  -13,499
  -14,349
  -15,225
  -16,129
  -17,062
  -18,030
Prev. year cash balance distribution, $m
 
  139
  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
 
  1,624
  2,147
  3,014
  4,101
  5,421
  6,972
  8,730
  10,686
  12,814
  15,079
  17,444
  19,871
  22,326
  24,774
  27,190
  29,551
  31,843
  34,055
  36,183
  38,230
  40,199
  42,101
  43,946
  45,746
  47,518
  49,276
  51,035
  52,811
  54,619
  56,474
Discount rate, %
 
  12.40
  13.02
  13.67
  14.35
  15.07
  15.83
  16.62
  17.45
  18.32
  19.24
  20.20
  21.21
  22.27
  23.38
  24.55
  25.78
  27.07
  28.42
  29.84
  31.33
  32.90
  34.55
  36.27
  38.09
  39.99
  41.99
  44.09
  46.29
  48.61
  51.04
PV of cash for distribution, $m
 
  1,445
  1,680
  2,052
  2,398
  2,687
  2,887
  2,976
  2,952
  2,819
  2,596
  2,305
  1,976
  1,636
  1,308
  1,010
  753
  543
  377
  253
  164
  102
  62
  36
  20
  11
  5
  3
  1
  1
  0
Current shareholders' claim on cash, %
  100
  61.3
  38.9
  25.4
  17.0
  11.7
  8.3
  6.0
  4.4
  3.3
  2.5
  2.0
  1.5
  1.2
  1.0
  0.8
  0.7
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1

Arbor Realty Trust, Inc. is a real estate investment trust. The Company invests in a portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. Its segments include Structured Business and Agency Business. In addition, the Company may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. It focuses on investment types, such as Bridge Financing, Mezzanine Financing, Junior Participation Financing and Preferred Equity Investments. It offers bridge financing products to borrowers, typically seeking short-term capital to use in an acquisition of property. It offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction.

FINANCIAL RATIOS  of  Arbor Realty Trust (ABR)

Valuation Ratios
P/E Ratio 8.9
Price to Sales 2.1
Price to Book 0.8
Price to Tangible Book
Price to Cash Flow -2.2
Price to Free Cash Flow -2.2
Growth Rates
Sales Growth Rate 49%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 357.6%
Total Debt to Equity 357.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 5.6%
Return On Total Capital 2.2%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 8.7%
Return On Equity - 3 Yr. Avg. 12.5%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 64.3%
Gross Margin - 3 Yr. Avg. 60.2%
EBITDA Margin 56.8%
EBITDA Margin - 3 Yr. Avg. 76.5%
Operating Margin 17.8%
Oper. Margin - 3 Yr. Avg. 20.5%
Pre-Tax Margin 29.6%
Pre-Tax Margin - 3 Yr. Avg. 44.2%
Net Profit Margin 23.5%
Net Profit Margin - 3 Yr. Avg. 42.2%
Effective Tax Rate 1.6%
Eff/ Tax Rate - 3 Yr. Avg. 0.5%
Payout Ratio 78%

ABR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ABR stock intrinsic value calculation we used $213 million for the last fiscal year's total revenue generated by Arbor Realty Trust. The default revenue input number comes from 2016 income statement of Arbor Realty Trust. 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 ABR stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 12.4%, whose default value for ABR is calculated based on our internal credit rating of Arbor Realty Trust, 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 Arbor Realty Trust.
    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 ABR stock the variable cost ratio is equal to 73.2%.

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 ABR 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 Arbor Realty Trust.

Corporate tax rate of 27% is the nominal tax rate for Arbor Realty Trust. 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 ABR 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 ABR are equal to 35.7%.

Life of production assets of 17.9 years is the average useful life of capital assets used in Arbor Realty Trust 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 ABR is equal to -65.3%. 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 - $587 million for Arbor Realty Trust - 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 61.35 million for Arbor Realty Trust 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 Arbor Realty Trust at the current share price and the inputted number of shares is $0.5 billion.

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COMPANY NEWS

▶ 5 Profitable Stocks With Midas Touch   [Nov-16-17 08:04AM  Zacks]
▶ Arbor Realty Trust reports 3Q results   [Nov-03-17 08:23AM  Associated Press]
▶ New Strong Sell Stocks for September 27th   [Sep-27-17 07:24AM  Zacks]
▶ Arbor Realty Trust reports 2Q results   [Aug-04-17 11:24PM  Associated Press]
▶ Arbor Realty Trust Declares Preferred Stock Dividends   [Aug-02-17 04:05PM  GlobeNewswire]
▶ Arbor Realty Trusts Dividend Growth Prospects   [Jul-26-17 12:09PM  Market Realist]
▶ Top Ranked Income Stocks to Buy for July 19th   [Jul-19-17 09:59AM  Zacks]
▶ Arbor Realty Trust reports 1Q results   [May-05-17 08:14AM  Associated Press]
▶ Arbor Realty Trust Declares Preferred Stock Dividends   [May-03-17 04:05PM  GlobeNewswire]
▶ Top Ranked Income Stocks to Buy for May 1st   [May-01-17 07:23AM  Zacks]
▶ How to Uncover Institutional Buying   [Apr-19-17 02:06PM  Zacks]
▶ Top Ranked Income Stocks to Buy for April 17th   [Apr-17-17 11:37AM  Zacks]
▶ Top Ranked Income Stocks to Buy for April 12th   [Apr-12-17 10:53AM  Zacks]
▶ Top Ranked Income Stocks to Buy for April 6th   [Apr-06-17 11:05AM  Zacks]
▶ Top Ranked Income Stocks to Buy for April 4th   [Apr-04-17 09:21AM  Zacks]
▶ New Strong Buy Stocks for April 3rd   [Apr-03-17 09:26AM  Zacks]
▶ Strong Buys at New Highs   [Mar-29-17 06:47PM  Zacks]
▶ Strong Buys at New Highs   [06:47PM  at Investopedia]
▶ New Strong Buy Stocks for March 23rd   [Mar-23-17 09:45AM  Zacks]
▶ Arbor Realty Trust Declares Preferred Stock Dividends   [Feb-03-17 10:00AM  GlobeNewswire]
▶ How Arbor Realty Trust, Inc. (ABR) Stacks Up Against Its Peers   [Dec-13-16 01:42AM  at Insider Monkey]
Financial statements of ABR
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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