Intrinsic value of Alexandria Real Estate Equities - ARE

Previous Close

$125.95

  Intrinsic Value

$12.78

stock screener

  Rating & Target

str. sell

-90%

Previous close

$125.95

 
Intrinsic value

$12.78

 
Up/down potential

-90%

 
Rating

str. sell

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

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

We calculate the intrinsic value of ARE 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  9.37
  23.90
  22.01
  20.31
  18.78
  17.40
  16.16
  15.04
  14.04
  13.14
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
Revenue, $m
  922
  1,142
  1,394
  1,677
  1,992
  2,338
  2,716
  3,125
  3,564
  4,032
  4,528
  5,053
  5,606
  6,185
  6,792
  7,425
  8,085
  8,772
  9,487
  10,231
  11,004
  11,807
  12,641
  13,509
  14,410
  15,348
  16,324
  17,339
  18,397
  19,499
  20,647
Variable operating expenses, $m
 
  821
  1,002
  1,206
  1,432
  1,681
  1,953
  2,247
  2,562
  2,899
  3,256
  3,633
  4,030
  4,447
  4,883
  5,338
  5,813
  6,307
  6,821
  7,356
  7,912
  8,489
  9,089
  9,713
  10,361
  11,035
  11,737
  12,467
  13,227
  14,019
  14,845
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
  868
  821
  1,002
  1,206
  1,432
  1,681
  1,953
  2,247
  2,562
  2,899
  3,256
  3,633
  4,030
  4,447
  4,883
  5,338
  5,813
  6,307
  6,821
  7,356
  7,912
  8,489
  9,089
  9,713
  10,361
  11,035
  11,737
  12,467
  13,227
  14,019
  14,845
Operating income, $m
  54
  321
  392
  471
  560
  657
  763
  878
  1,001
  1,133
  1,272
  1,420
  1,575
  1,738
  1,908
  2,086
  2,272
  2,465
  2,666
  2,875
  3,092
  3,318
  3,552
  3,796
  4,049
  4,313
  4,587
  4,872
  5,169
  5,479
  5,802
EBITDA, $m
  367
  709
  865
  1,040
  1,236
  1,451
  1,685
  1,939
  2,211
  2,501
  2,810
  3,135
  3,478
  3,837
  4,214
  4,607
  5,016
  5,443
  5,886
  6,348
  6,827
  7,325
  7,843
  8,381
  8,941
  9,522
  10,128
  10,758
  11,414
  12,098
  12,810
Interest expense (income), $m
  85
  146
  192
  244
  303
  368
  440
  519
  604
  695
  792
  895
  1,004
  1,119
  1,239
  1,365
  1,497
  1,634
  1,776
  1,925
  2,079
  2,240
  2,407
  2,580
  2,760
  2,947
  3,142
  3,345
  3,555
  3,775
  4,004
Earnings before tax, $m
  -50
  175
  200
  227
  257
  289
  323
  359
  398
  438
  481
  525
  571
  619
  669
  721
  775
  831
  890
  950
  1,013
  1,078
  1,146
  1,216
  1,289
  1,366
  1,445
  1,528
  1,614
  1,704
  1,798
Tax expense, $m
  0
  47
  54
  61
  69
  78
  87
  97
  107
  118
  130
  142
  154
  167
  181
  195
  209
  224
  240
  256
  273
  291
  309
  328
  348
  369
  390
  412
  436
  460
  485
Net income, $m
  -66
  128
  146
  166
  187
  211
  236
  262
  290
  320
  351
  383
  417
  452
  489
  527
  566
  607
  649
  693
  739
  787
  836
  888
  941
  997
  1,055
  1,115
  1,178
  1,244
  1,313

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  125
  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
  10,355
  12,693
  15,487
  18,632
  22,130
  25,981
  30,180
  34,720
  39,595
  44,796
  50,316
  56,147
  62,285
  68,724
  75,462
  82,497
  89,832
  97,470
  105,416
  113,677
  122,263
  131,186
  140,458
  150,095
  160,114
  170,534
  181,374
  192,658
  204,408
  216,650
  229,412
Adjusted assets (=assets-cash), $m
  10,230
  12,693
  15,487
  18,632
  22,130
  25,981
  30,180
  34,720
  39,595
  44,796
  50,316
  56,147
  62,285
  68,724
  75,462
  82,497
  89,832
  97,470
  105,416
  113,677
  122,263
  131,186
  140,458
  150,095
  160,114
  170,534
  181,374
  192,658
  204,408
  216,650
  229,412
Revenue / Adjusted assets
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
  0.090
Average production assets, $m
  8,294
  10,276
  12,537
  15,083
  17,916
  21,033
  24,432
  28,108
  32,054
  36,264
  40,733
  45,454
  50,423
  55,635
  61,090
  66,786
  72,724
  78,907
  85,339
  92,027
  98,978
  106,202
  113,708
  121,510
  129,620
  138,056
  146,832
  155,966
  165,479
  175,389
  185,720
Working capital, $m
  0
  -155
  -190
  -228
  -271
  -318
  -369
  -425
  -485
  -548
  -616
  -687
  -762
  -841
  -924
  -1,010
  -1,100
  -1,193
  -1,290
  -1,391
  -1,497
  -1,606
  -1,719
  -1,837
  -1,960
  -2,087
  -2,220
  -2,358
  -2,502
  -2,652
  -2,808
Total debt, $m
  4,164
  5,483
  6,975
  8,654
  10,523
  12,579
  14,821
  17,246
  19,849
  22,626
  25,574
  28,688
  31,965
  35,403
  39,001
  42,759
  46,676
  50,754
  54,997
  59,409
  63,994
  68,758
  73,710
  78,856
  84,206
  89,770
  95,559
  101,584
  107,859
  114,396
  121,211
Total liabilities, $m
  5,459
  6,778
  8,270
  9,949
  11,818
  13,874
  16,116
  18,541
  21,144
  23,921
  26,869
  29,983
  33,260
  36,698
  40,296
  44,054
  47,971
  52,049
  56,292
  60,704
  65,289
  70,053
  75,005
  80,151
  85,501
  91,065
  96,854
  102,879
  109,154
  115,691
  122,506
Total equity, $m
  4,896
  5,915
  7,217
  8,682
  10,313
  12,107
  14,064
  16,180
  18,451
  20,875
  23,447
  26,165
  29,025
  32,025
  35,165
  38,444
  41,862
  45,421
  49,124
  52,974
  56,975
  61,133
  65,453
  69,944
  74,613
  79,469
  84,520
  89,779
  95,254
  100,959
  106,906
Total liabilities and equity, $m
  10,355
  12,693
  15,487
  18,631
  22,131
  25,981
  30,180
  34,721
  39,595
  44,796
  50,316
  56,148
  62,285
  68,723
  75,461
  82,498
  89,833
  97,470
  105,416
  113,678
  122,264
  131,186
  140,458
  150,095
  160,114
  170,534
  181,374
  192,658
  204,408
  216,650
  229,412
Debt-to-equity ratio
  0.850
  0.930
  0.970
  1.000
  1.020
  1.040
  1.050
  1.070
  1.080
  1.080
  1.090
  1.100
  1.100
  1.110
  1.110
  1.110
  1.110
  1.120
  1.120
  1.120
  1.120
  1.120
  1.130
  1.130
  1.130
  1.130
  1.130
  1.130
  1.130
  1.130
  1.130
Adjusted equity ratio
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -66
  128
  146
  166
  187
  211
  236
  262
  290
  320
  351
  383
  417
  452
  489
  527
  566
  607
  649
  693
  739
  787
  836
  888
  941
  997
  1,055
  1,115
  1,178
  1,244
  1,313
Depreciation, amort., depletion, $m
  313
  388
  473
  569
  676
  794
  922
  1,061
  1,210
  1,368
  1,537
  1,715
  1,903
  2,099
  2,305
  2,520
  2,744
  2,978
  3,220
  3,473
  3,735
  4,008
  4,291
  4,585
  4,891
  5,210
  5,541
  5,886
  6,244
  6,618
  7,008
Funds from operations, $m
  299
  516
  619
  735
  864
  1,005
  1,158
  1,323
  1,500
  1,688
  1,888
  2,098
  2,320
  2,551
  2,794
  3,047
  3,310
  3,585
  3,870
  4,166
  4,474
  4,794
  5,127
  5,473
  5,833
  6,207
  6,596
  7,001
  7,423
  7,862
  8,321
Change in working capital, $m
  -94
  -30
  -34
  -38
  -43
  -47
  -51
  -56
  -60
  -64
  -68
  -71
  -75
  -79
  -82
  -86
  -90
  -93
  -97
  -101
  -105
  -109
  -113
  -118
  -123
  -128
  -133
  -138
  -144
  -150
  -156
Cash from operations, $m
  393
  546
  653
  773
  906
  1,052
  1,209
  1,379
  1,560
  1,752
  1,955
  2,170
  2,395
  2,630
  2,876
  3,133
  3,400
  3,678
  3,967
  4,267
  4,579
  4,904
  5,241
  5,591
  5,955
  6,334
  6,728
  7,139
  7,567
  8,012
  8,477
Maintenance CAPEX, $m
  0
  -313
  -388
  -473
  -569
  -676
  -794
  -922
  -1,061
  -1,210
  -1,368
  -1,537
  -1,715
  -1,903
  -2,099
  -2,305
  -2,520
  -2,744
  -2,978
  -3,220
  -3,473
  -3,735
  -4,008
  -4,291
  -4,585
  -4,891
  -5,210
  -5,541
  -5,886
  -6,244
  -6,618
New CAPEX, $m
  -1,560
  -1,982
  -2,262
  -2,546
  -2,832
  -3,117
  -3,399
  -3,676
  -3,946
  -4,211
  -4,469
  -4,721
  -4,969
  -5,213
  -5,455
  -5,696
  -5,938
  -6,183
  -6,432
  -6,688
  -6,951
  -7,223
  -7,506
  -7,802
  -8,111
  -8,435
  -8,776
  -9,135
  -9,512
  -9,911
  -10,331
Cash from investing activities, $m
  -1,497
  -2,295
  -2,650
  -3,019
  -3,401
  -3,793
  -4,193
  -4,598
  -5,007
  -5,421
  -5,837
  -6,258
  -6,684
  -7,116
  -7,554
  -8,001
  -8,458
  -8,927
  -9,410
  -9,908
  -10,424
  -10,958
  -11,514
  -12,093
  -12,696
  -13,326
  -13,986
  -14,676
  -15,398
  -16,155
  -16,949
Free cash flow, $m
  -1,104
  -1,749
  -1,996
  -2,246
  -2,495
  -2,742
  -2,984
  -3,219
  -3,447
  -3,668
  -3,882
  -4,088
  -4,289
  -4,485
  -4,678
  -4,868
  -5,058
  -5,249
  -5,443
  -5,641
  -5,844
  -6,055
  -6,273
  -6,502
  -6,741
  -6,992
  -7,257
  -7,537
  -7,831
  -8,143
  -8,472
Issuance/(repayment) of debt, $m
  6
  1,319
  1,492
  1,680
  1,868
  2,056
  2,242
  2,425
  2,603
  2,777
  2,948
  3,114
  3,277
  3,438
  3,598
  3,757
  3,917
  4,079
  4,243
  4,411
  4,585
  4,765
  4,951
  5,146
  5,350
  5,564
  5,789
  6,025
  6,275
  6,537
  6,814
Issuance/(repurchase) of shares, $m
  1,225
  1,016
  1,156
  1,300
  1,443
  1,584
  1,721
  1,853
  1,981
  2,104
  2,221
  2,334
  2,443
  2,549
  2,651
  2,752
  2,852
  2,952
  3,053
  3,156
  3,262
  3,371
  3,485
  3,603
  3,728
  3,859
  3,997
  4,143
  4,297
  4,461
  4,634
Cash from financing (excl. dividends), $m  
  1,369
  2,335
  2,648
  2,980
  3,311
  3,640
  3,963
  4,278
  4,584
  4,881
  5,169
  5,448
  5,720
  5,987
  6,249
  6,509
  6,769
  7,031
  7,296
  7,567
  7,847
  8,136
  8,436
  8,749
  9,078
  9,423
  9,786
  10,168
  10,572
  10,998
  11,448
Total cash flow (excl. dividends), $m
  263
  586
  652
  734
  816
  898
  979
  1,059
  1,137
  1,213
  1,287
  1,360
  1,431
  1,502
  1,572
  1,641
  1,711
  1,781
  1,853
  1,927
  2,003
  2,081
  2,163
  2,248
  2,337
  2,430
  2,528
  2,632
  2,741
  2,855
  2,976
Retained Cash Flow (-), $m
  -921
  -1,144
  -1,302
  -1,466
  -1,630
  -1,794
  -1,957
  -2,116
  -2,272
  -2,424
  -2,572
  -2,718
  -2,860
  -3,001
  -3,140
  -3,279
  -3,418
  -3,559
  -3,703
  -3,850
  -4,001
  -4,158
  -4,321
  -4,491
  -4,669
  -4,856
  -5,052
  -5,258
  -5,476
  -5,705
  -5,947
Prev. year cash balance distribution, $m
 
  125
  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
 
  -433
  -650
  -732
  -814
  -896
  -977
  -1,057
  -1,135
  -1,211
  -1,285
  -1,357
  -1,429
  -1,499
  -1,568
  -1,638
  -1,707
  -1,778
  -1,849
  -1,923
  -1,999
  -2,077
  -2,158
  -2,243
  -2,332
  -2,425
  -2,523
  -2,626
  -2,735
  -2,850
  -2,970
Discount rate, %
 
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
 
  -400
  -551
  -565
  -567
  -557
  -538
  -509
  -474
  -433
  -388
  -342
  -296
  -251
  -210
  -171
  -138
  -108
  -83
  -63
  -46
  -33
  -23
  -16
  -11
  -7
  -4
  -3
  -2
  -1
  0
Current shareholders' claim on cash, %
  100
  92.0
  85.3
  79.5
  74.5
  70.1
  66.3
  62.9
  59.9
  57.3
  54.9
  52.8
  50.8
  49.1
  47.5
  46.0
  44.7
  43.4
  42.3
  41.2
  40.2
  39.3
  38.4
  37.5
  36.8
  36.0
  35.3
  34.6
  33.9
  33.3
  32.7

Alexandria Real Estate Equities, Inc. is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems. As of December 31, 2016, the Company had 199 properties in North America. As of December 31, 2016, its asset base in North America consisted of 25.2 million square feet, including 19.9 million rentable square feet/foot (RSF) of operating properties, and development and redevelopment of under construction or pre-construction, as well as 5.3 million square feet of future ground-up development projects. Its properties are located in various areas, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Its properties include Alexandria Technology Square, Alexandria Park at 128 and Alexandria Technology Center-Gateway.

FINANCIAL RATIOS  of  Alexandria Real Estate Equities (ARE)

Valuation Ratios
P/E Ratio -167.3
Price to Sales 12
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 28.1
Price to Free Cash Flow -9.5
Growth Rates
Sales Growth Rate 9.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 91.9%
Cap. Spend. - 3 Yr. Gr. Rate 16.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 85%
Total Debt to Equity 85%
Interest Coverage 0
Management Effectiveness
Return On Assets 0.2%
Ret/ On Assets - 3 Yr. Avg. 1.6%
Return On Total Capital -0.8%
Ret/ On T. Cap. - 3 Yr. Avg. 0.8%
Return On Equity -1.5%
Return On Equity - 3 Yr. Avg. 1.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 69.7%
Gross Margin - 3 Yr. Avg. 69.6%
EBITDA Margin 37.7%
EBITDA Margin - 3 Yr. Avg. 49.9%
Operating Margin 5.9%
Oper. Margin - 3 Yr. Avg. 19.5%
Pre-Tax Margin -5.4%
Pre-Tax Margin - 3 Yr. Avg. 8.5%
Net Profit Margin -7.2%
Net Profit Margin - 3 Yr. Avg. 7.7%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio -398.5%

ARE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ARE stock intrinsic value calculation we used $922 million for the last fiscal year's total revenue generated by Alexandria Real Estate Equities. The default revenue input number comes from 2016 income statement of Alexandria Real Estate Equities. 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 ARE stock valuation model: a) initial revenue growth rate of 23.9% 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 8.2%, whose default value for ARE is calculated based on our internal credit rating of Alexandria Real Estate Equities, 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 Alexandria Real Estate Equities.
    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 ARE stock the variable cost ratio is equal to 71.9%.

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 ARE 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 Alexandria Real Estate Equities.

Corporate tax rate of 27% is the nominal tax rate for Alexandria Real Estate Equities. 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 ARE 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 ARE are equal to 899.5%.

Life of production assets of 26.5 years is the average useful life of capital assets used in Alexandria Real Estate Equities 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 ARE is equal to -13.6%. 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 - $4896 million for Alexandria Real Estate Equities - 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 95.796 million for Alexandria Real Estate Equities 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 Alexandria Real Estate Equities at the current share price and the inputted number of shares is $12.1 billion.

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COMPANY NEWS

▶ Alexandria RE Equities Trying To Close In On Key Technical Measure   [Dec-11-17 03:00AM  Investor's Business Daily]
▶ 5 Great REITs to Buy Now   [Dec-08-17 05:20PM  Kiplinger]
▶ 2 REIT Picks From Bank Of America   [Dec-04-17 04:18PM  Benzinga]
▶ Is Alexandria Real Estate Equities Inc (ARE) Undervalued?   [Nov-16-17 04:27PM  Simply Wall St.]
▶ Alexandria Real Estate Equities reports 3Q results   [Oct-30-17 05:03PM  Associated Press]
▶ Alexandria Real Estate Equities reports 2Q results   [Jul-31-17 09:41PM  Associated Press]
▶ Developer pushes agtech 'mega campus' forward in Research Triangle Park   [Jul-17-17 12:35PM  American City Business Journals]
▶ Beating the Benchmark   [Jul-13-17 04:04PM  GuruFocus.com]
▶ These 3 Stocks Just Raised Their Dividends   [Jun-15-17 09:40AM  Motley Fool]
▶ Today's Bell Ringer, May 22, 2017   [May-22-17 09:16AM  CNBC Videos]
Financial statements of ARE
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