Intrinsic value of Associated Banc-Corp. - ASB

Previous Close

$27.90

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$27.90

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of ASB 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 2017), $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 4.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
Revenue, $m
  1,109
  1,172
  1,238
  1,308
  1,380
  1,455
  1,534
  1,617
  1,703
  1,794
  1,888
  1,988
  2,091
  2,200
  2,314
  2,434
  2,559
  2,690
  2,828
  2,973
  3,124
  3,283
  3,450
  3,625
  3,808
  4,001
  4,203
  4,415
  4,638
  4,871
Variable operating expenses, $m
  162
  171
  181
  191
  201
  212
  224
  236
  249
  262
  276
  290
  305
  321
  338
  355
  374
  393
  413
  434
  456
  479
  504
  529
  556
  584
  614
  645
  677
  711
Fixed operating expenses, $m
  568
  581
  594
  607
  620
  634
  647
  662
  676
  691
  706
  722
  738
  754
  771
  788
  805
  823
  841
  859
  878
  897
  917
  937
  958
  979
  1,001
  1,023
  1,045
  1,068
Total operating expenses, $m
  730
  752
  775
  798
  821
  846
  871
  898
  925
  953
  982
  1,012
  1,043
  1,075
  1,109
  1,143
  1,179
  1,216
  1,254
  1,293
  1,334
  1,376
  1,421
  1,466
  1,514
  1,563
  1,615
  1,668
  1,722
  1,779
Operating income, $m
  379
  420
  464
  510
  558
  609
  663
  719
  778
  841
  906
  975
  1,048
  1,125
  1,206
  1,291
  1,381
  1,475
  1,575
  1,679
  1,790
  1,906
  2,029
  2,158
  2,294
  2,438
  2,589
  2,748
  2,916
  3,092
EBITDA, $m
  3,533
  3,755
  3,987
  4,230
  4,484
  4,749
  5,028
  5,319
  5,624
  5,944
  6,279
  6,630
  6,998
  7,384
  7,790
  8,215
  8,661
  9,129
  9,621
  10,136
  10,678
  11,247
  11,844
  12,471
  13,129
  13,820
  14,546
  15,309
  16,110
  16,951
Interest expense (income), $m
  88
  1,478
  1,416
  1,483
  1,553
  1,626
  1,702
  1,782
  1,865
  1,953
  2,044
  2,140
  2,240
  2,344
  2,454
  2,569
  2,690
  2,816
  2,948
  3,087
  3,233
  3,385
  3,545
  3,713
  3,889
  4,074
  4,268
  4,472
  4,685
  4,909
  5,144
Earnings before tax, $m
  -1,100
  -996
  -1,019
  -1,043
  -1,067
  -1,093
  -1,119
  -1,146
  -1,174
  -1,203
  -1,233
  -1,264
  -1,296
  -1,329
  -1,363
  -1,399
  -1,435
  -1,473
  -1,512
  -1,553
  -1,595
  -1,639
  -1,684
  -1,731
  -1,780
  -1,830
  -1,883
  -1,937
  -1,994
  -2,052
Tax expense, $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
Net income, $m
  -1,100
  -996
  -1,019
  -1,043
  -1,067
  -1,093
  -1,119
  -1,146
  -1,174
  -1,203
  -1,233
  -1,264
  -1,296
  -1,329
  -1,363
  -1,399
  -1,435
  -1,473
  -1,512
  -1,553
  -1,595
  -1,639
  -1,684
  -1,731
  -1,780
  -1,830
  -1,883
  -1,937
  -1,994
  -2,052

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  24,104
  25,483
  26,922
  28,425
  29,996
  31,637
  33,353
  35,149
  37,027
  38,993
  41,052
  43,207
  45,465
  47,831
  50,310
  52,909
  55,632
  58,488
  61,483
  64,624
  67,918
  71,373
  74,998
  78,801
  82,791
  86,978
  91,372
  95,983
  100,823
  105,902
Adjusted assets (=assets-cash), $m
  24,104
  25,483
  26,922
  28,425
  29,996
  31,637
  33,353
  35,149
  37,027
  38,993
  41,052
  43,207
  45,465
  47,831
  50,310
  52,909
  55,632
  58,488
  61,483
  64,624
  67,918
  71,373
  74,998
  78,801
  82,791
  86,978
  91,372
  95,983
  100,823
  105,902
Revenue / Adjusted assets
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
  0.046
Average production assets, $m
  31,544
  33,348
  35,232
  37,199
  39,254
  41,402
  43,648
  45,997
  48,456
  51,029
  53,723
  56,544
  59,498
  62,594
  65,839
  69,239
  72,804
  76,541
  80,460
  84,570
  88,881
  93,402
  98,146
  103,123
  108,345
  113,824
  119,574
  125,609
  131,942
  138,589
Working capital, $m
  -27,718
  -29,304
  -30,959
  -32,688
  -34,494
  -36,381
  -38,355
  -40,419
  -42,580
  -44,841
  -47,208
  -49,687
  -52,283
  -55,004
  -57,854
  -60,842
  -63,975
  -67,259
  -70,703
  -74,314
  -78,102
  -82,076
  -86,244
  -90,617
  -95,206
  -100,021
  -105,074
  -110,376
  -115,941
  -121,782
Total debt, $m
  26,221
  27,462
  28,757
  30,110
  31,523
  33,000
  34,545
  36,161
  37,852
  39,621
  41,474
  43,414
  45,446
  47,575
  49,806
  52,145
  54,596
  57,167
  59,862
  62,688
  65,653
  68,763
  72,025
  75,448
  79,039
  82,808
  86,762
  90,912
  95,267
  99,839
Total liabilities, $m
  21,694
  22,934
  24,230
  25,583
  26,996
  28,473
  30,018
  31,634
  33,324
  35,094
  36,947
  38,887
  40,919
  43,048
  45,279
  47,618
  50,069
  52,639
  55,335
  58,161
  61,126
  64,236
  67,498
  70,921
  74,512
  78,280
  82,235
  86,385
  90,740
  95,312
Total equity, $m
  2,410
  2,548
  2,692
  2,843
  3,000
  3,164
  3,335
  3,515
  3,703
  3,899
  4,105
  4,321
  4,547
  4,783
  5,031
  5,291
  5,563
  5,849
  6,148
  6,462
  6,792
  7,137
  7,500
  7,880
  8,279
  8,698
  9,137
  9,598
  10,082
  10,590
Total liabilities and equity, $m
  24,104
  25,482
  26,922
  28,426
  29,996
  31,637
  33,353
  35,149
  37,027
  38,993
  41,052
  43,208
  45,466
  47,831
  50,310
  52,909
  55,632
  58,488
  61,483
  64,623
  67,918
  71,373
  74,998
  78,801
  82,791
  86,978
  91,372
  95,983
  100,822
  105,902
Debt-to-equity ratio
  10.880
  10.780
  10.680
  10.590
  10.510
  10.430
  10.360
  10.290
  10.220
  10.160
  10.100
  10.050
  10.000
  9.950
  9.900
  9.860
  9.810
  9.770
  9.740
  9.700
  9.670
  9.630
  9.600
  9.570
  9.550
  9.520
  9.500
  9.470
  9.450
  9.430
Adjusted equity ratio
  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
  -1,100
  -996
  -1,019
  -1,043
  -1,067
  -1,093
  -1,119
  -1,146
  -1,174
  -1,203
  -1,233
  -1,264
  -1,296
  -1,329
  -1,363
  -1,399
  -1,435
  -1,473
  -1,512
  -1,553
  -1,595
  -1,639
  -1,684
  -1,731
  -1,780
  -1,830
  -1,883
  -1,937
  -1,994
  -2,052
Depreciation, amort., depletion, $m
  3,154
  3,335
  3,523
  3,720
  3,925
  4,140
  4,365
  4,600
  4,846
  5,103
  5,372
  5,654
  5,950
  6,259
  6,584
  6,924
  7,280
  7,654
  8,046
  8,457
  8,888
  9,340
  9,815
  10,312
  10,834
  11,382
  11,957
  12,561
  13,194
  13,859
Funds from operations, $m
  2,055
  2,339
  2,504
  2,677
  2,858
  3,047
  3,246
  3,453
  3,671
  3,900
  4,139
  4,390
  4,654
  4,930
  5,221
  5,525
  5,845
  6,181
  6,534
  6,904
  7,293
  7,701
  8,130
  8,581
  9,055
  9,552
  10,075
  10,624
  11,201
  11,807
Change in working capital, $m
  -1,520
  -1,585
  -1,655
  -1,729
  -1,806
  -1,888
  -1,974
  -2,065
  -2,160
  -2,261
  -2,367
  -2,479
  -2,597
  -2,720
  -2,851
  -2,988
  -3,132
  -3,284
  -3,444
  -3,612
  -3,788
  -3,973
  -4,168
  -4,373
  -4,589
  -4,815
  -5,053
  -5,303
  -5,565
  -5,841
Cash from operations, $m
  3,574
  3,925
  4,159
  4,406
  4,664
  4,935
  5,219
  5,518
  5,831
  6,160
  6,506
  6,869
  7,250
  7,651
  8,071
  8,513
  8,977
  9,465
  9,977
  10,515
  11,081
  11,675
  12,299
  12,955
  13,643
  14,367
  15,127
  15,926
  16,766
  17,647
Maintenance CAPEX, $m
  -2,981
  -3,154
  -3,335
  -3,523
  -3,720
  -3,925
  -4,140
  -4,365
  -4,600
  -4,846
  -5,103
  -5,372
  -5,654
  -5,950
  -6,259
  -6,584
  -6,924
  -7,280
  -7,654
  -8,046
  -8,457
  -8,888
  -9,340
  -9,815
  -10,312
  -10,834
  -11,382
  -11,957
  -12,561
  -13,194
New CAPEX, $m
  -1,732
  -1,804
  -1,884
  -1,967
  -2,055
  -2,148
  -2,246
  -2,349
  -2,458
  -2,573
  -2,694
  -2,821
  -2,955
  -3,096
  -3,244
  -3,400
  -3,565
  -3,737
  -3,919
  -4,110
  -4,311
  -4,522
  -4,744
  -4,977
  -5,222
  -5,479
  -5,750
  -6,034
  -6,333
  -6,647
Cash from investing activities, $m
  -4,713
  -4,958
  -5,219
  -5,490
  -5,775
  -6,073
  -6,386
  -6,714
  -7,058
  -7,419
  -7,797
  -8,193
  -8,609
  -9,046
  -9,503
  -9,984
  -10,489
  -11,017
  -11,573
  -12,156
  -12,768
  -13,410
  -14,084
  -14,792
  -15,534
  -16,313
  -17,132
  -17,991
  -18,894
  -19,841
Free cash flow, $m
  -1,139
  -1,034
  -1,059
  -1,085
  -1,111
  -1,139
  -1,167
  -1,196
  -1,227
  -1,258
  -1,291
  -1,324
  -1,359
  -1,395
  -1,432
  -1,471
  -1,511
  -1,553
  -1,596
  -1,640
  -1,687
  -1,735
  -1,785
  -1,837
  -1,891
  -1,947
  -2,005
  -2,065
  -2,128
  -2,194
Issuance/(repayment) of debt, $m
  -1,155
  1,241
  1,295
  1,353
  1,413
  1,477
  1,545
  1,616
  1,691
  1,770
  1,853
  1,940
  2,032
  2,129
  2,231
  2,339
  2,451
  2,570
  2,695
  2,827
  2,965
  3,110
  3,262
  3,423
  3,591
  3,768
  3,954
  4,150
  4,355
  4,571
Issuance/(repurchase) of shares, $m
  3,573
  1,133
  1,163
  1,193
  1,225
  1,257
  1,291
  1,326
  1,362
  1,400
  1,439
  1,480
  1,522
  1,566
  1,611
  1,658
  1,708
  1,759
  1,812
  1,867
  1,925
  1,984
  2,047
  2,111
  2,179
  2,249
  2,322
  2,398
  2,478
  2,560
Cash from financing (excl. dividends), $m  
  2,418
  2,374
  2,458
  2,546
  2,638
  2,734
  2,836
  2,942
  3,053
  3,170
  3,292
  3,420
  3,554
  3,695
  3,842
  3,997
  4,159
  4,329
  4,507
  4,694
  4,890
  5,094
  5,309
  5,534
  5,770
  6,017
  6,276
  6,548
  6,833
  7,131
Total cash flow (excl. dividends), $m
  1,278
  1,340
  1,399
  1,461
  1,527
  1,596
  1,669
  1,745
  1,826
  1,911
  2,001
  2,096
  2,195
  2,300
  2,410
  2,526
  2,648
  2,776
  2,911
  3,053
  3,202
  3,359
  3,524
  3,697
  3,879
  4,071
  4,272
  4,483
  4,705
  4,938
Retained Cash Flow (-), $m
  -3,573
  -1,133
  -1,163
  -1,193
  -1,225
  -1,257
  -1,291
  -1,326
  -1,362
  -1,400
  -1,439
  -1,480
  -1,522
  -1,566
  -1,611
  -1,658
  -1,708
  -1,759
  -1,812
  -1,867
  -1,925
  -1,984
  -2,047
  -2,111
  -2,179
  -2,249
  -2,322
  -2,398
  -2,478
  -2,560
Prev. year cash balance distribution, $m
  63
  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
  -2,232
  207
  236
  268
  302
  339
  378
  419
  464
  511
  562
  616
  673
  734
  799
  868
  940
  1,018
  1,099
  1,186
  1,278
  1,375
  1,477
  1,586
  1,700
  1,822
  1,949
  2,085
  2,227
  2,378
Discount rate, %
  14.90
  15.65
  16.43
  17.25
  18.11
  19.02
  19.97
  20.97
  22.01
  23.11
  24.27
  25.48
  26.76
  28.10
  29.50
  30.98
  32.52
  34.15
  35.86
  37.65
  39.53
  41.51
  43.59
  45.77
  48.05
  50.46
  52.98
  55.63
  58.41
  61.33
PV of cash for distribution, $m
  -1,942
  155
  150
  142
  131
  119
  106
  91
  77
  64
  51
  40
  31
  23
  17
  12
  8
  5
  3
  2
  1
  1
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  34.0
  23.4
  16.2
  11.3
  8.0
  5.7
  4.0
  2.9
  2.1
  1.5
  1.1
  0.8
  0.6
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Associated Banc-Corp is a bank holding company. The Company, through its banking subsidiary Associated Bank, National Association (the Bank) and various nonbanking subsidiaries, provides a range of banking and non-banking products and services to individuals. The Company operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business, and Risk Management and Shared Services. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are shared functions.

FINANCIAL RATIOS  of  Associated Banc-Corp. (ASB)

Valuation Ratios
P/E Ratio 21.2
Price to Sales 0
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 6.7
Price to Free Cash Flow 8.1
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 89.1%
Cap. Spend. - 3 Yr. Gr. Rate 8.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 35.9%
Total Debt to Equity 35.9%
Interest Coverage 4
Management Effectiveness
Return On Assets 0.9%
Ret/ On Assets - 3 Yr. Avg. 0.9%
Return On Total Capital 4.7%
Ret/ On T. Cap. - 3 Yr. Avg. 4.5%
Return On Equity 6.6%
Return On Equity - 3 Yr. Avg. 6.6%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 30.6%
Eff/ Tax Rate - 3 Yr. Avg. 30.6%
Payout Ratio 38.5%

ASB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ASB stock intrinsic value calculation we used $1048 million for the last fiscal year's total revenue generated by Associated Banc-Corp.. The default revenue input number comes from 2017 income statement of Associated Banc-Corp.. 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 ASB stock valuation model: a) initial revenue growth rate of 5.8% 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 14.9%, whose default value for ASB is calculated based on our internal credit rating of Associated Banc-Corp., 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 Associated Banc-Corp..
    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 ASB stock the variable cost ratio is equal to 14.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $556 million in the base year in the intrinsic value calculation for ASB 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 5.4% for Associated Banc-Corp..

Corporate tax rate of 27% is the nominal tax rate for Associated Banc-Corp.. 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 ASB 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 ASB are equal to 2844.9%.

Life of production assets of 10 years is the average useful life of capital assets used in Associated Banc-Corp. 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 ASB is equal to -2499.9%. 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 - $0 million for Associated Banc-Corp. - 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 151 million for Associated Banc-Corp. 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 Associated Banc-Corp. at the current share price and the inputted number of shares is $4.2 billion.

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COMPANY NEWS

▶ Associated Banc-Corp: 2Q Earnings Snapshot   [Jul-19-18 04:25PM  Associated Press]
▶ Associated Banc Earnings Outlook   [08:15AM  Benzinga]
▶ 5 Top-Ranked Bank Stocks to Profit From Feds Rate Hike   [Jun-14-18 10:38AM  InvestorPlace]
▶ Associated Banc-Corp Increases Prime Rate   [Jun-13-18 04:15PM  PR Newswire]
▶ Company News for Apr 24, 2018   [09:56AM  Zacks]
▶ Associated Banc-Corp: 1Q Earnings Snapshot   [Apr-19-18 04:34PM  Associated Press]
▶ Associated Banc-Corp Increases Prime Rate   [Mar-21-18 04:12PM  PR Newswire]
▶ Five Regional Bank Stocks to Buy Amid Regulatory Rollback   [Mar-18-18 11:45PM  Insider Monkey]
▶ Associated Banc-Corp to acquire Brookfield-based Diversified Insurance Solutions   [Feb-15-18 05:40PM  American City Business Journals]
▶ BMO Harris Bank to raise minimum wage, charitable giving because of tax reform   [Jan-30-18 06:17PM  American City Business Journals]
▶ Associated Banc-Corp beats 4Q profit forecasts   [Jan-25-18 04:48PM  Associated Press]
▶ Preview: Associated Banc's Earnings   [10:58AM  Benzinga]
▶ Associated Bank to invest in employees, communities   [Dec-21-17 05:30PM  PR Newswire]
▶ Associated Banc-Corp Increases Prime Rate   [Dec-13-17 06:05PM  PR Newswire]
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