Intrinsic value of Athene Holding - ATH

Previous Close

$51.50

  Intrinsic Value

$1,482

stock screener

  Rating & Target

str. buy

+999%

Previous close

$51.50

 
Intrinsic value

$1,482

 
Up/down potential

+999%

 
Rating

str. buy

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

We calculate the intrinsic value of ATH 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 10.3

 

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, %
  47.33
  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
  0
  6,574
  10,157
  15,190
  22,041
  31,096
  42,750
  57,383
  75,347
  96,954
  122,461
  152,068
  185,918
  224,094
  266,627
  313,506
  364,683
  420,084
  479,621
  543,195
  610,713
  682,085
  757,238
  836,113
  918,676
  1,004,914
  1,094,838
  1,188,486
  1,285,921
  1,387,231
  1,492,530
Variable operating expenses, $m
 
  4,766
  7,364
  11,013
  15,979
  22,545
  30,994
  41,603
  54,627
  70,292
  88,784
  110,250
  134,791
  162,468
  193,305
  227,292
  264,395
  304,561
  347,725
  393,817
  442,767
  494,512
  548,997
  606,182
  666,040
  728,563
  793,758
  861,652
  932,293
  1,005,743
  1,082,084
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
  3,363
  4,766
  7,364
  11,013
  15,979
  22,545
  30,994
  41,603
  54,627
  70,292
  88,784
  110,250
  134,791
  162,468
  193,305
  227,292
  264,395
  304,561
  347,725
  393,817
  442,767
  494,512
  548,997
  606,182
  666,040
  728,563
  793,758
  861,652
  932,293
  1,005,743
  1,082,084
Operating income, $m
  746
  1,808
  2,793
  4,177
  6,061
  8,551
  11,756
  15,780
  20,721
  26,662
  33,677
  41,819
  51,127
  61,626
  73,323
  86,214
  100,288
  115,523
  131,896
  149,379
  167,946
  187,573
  208,240
  229,931
  252,636
  276,351
  301,080
  326,834
  353,628
  381,489
  410,446
EBITDA, $m
  1,090
  1,808
  2,793
  4,177
  6,061
  8,551
  11,756
  15,780
  20,721
  26,662
  33,677
  41,819
  51,127
  61,626
  73,323
  86,214
  100,288
  115,523
  131,896
  149,379
  167,946
  187,573
  208,240
  229,931
  252,636
  276,351
  301,080
  326,834
  353,628
  381,489
  410,446
Interest expense (income), $m
  9
  0
  1,612
  4,013
  7,386
  11,977
  18,047
  25,857
  35,664
  47,704
  62,185
  79,280
  99,124
  121,810
  147,396
  175,903
  207,322
  241,621
  278,752
  318,654
  361,262
  406,513
  454,348
  504,716
  557,579
  612,914
  670,712
  730,980
  793,744
  859,046
  926,946
Earnings before tax, $m
  753
  1,808
  1,181
  164
  -1,325
  -3,426
  -6,290
  -10,077
  -14,944
  -21,042
  -28,509
  -37,461
  -47,996
  -60,184
  -74,074
  -89,688
  -107,034
  -126,098
  -146,856
  -169,275
  -193,316
  -218,940
  -246,107
  -274,785
  -304,943
  -336,563
  -369,631
  -404,146
  -440,116
  -477,558
  -516,500
Tax expense, $m
  -52
  488
  319
  44
  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
  805
  1,320
  862
  120
  -1,325
  -3,426
  -6,290
  -10,077
  -14,944
  -21,042
  -28,509
  -37,461
  -47,996
  -60,184
  -74,074
  -89,688
  -107,034
  -126,098
  -146,856
  -169,275
  -193,316
  -218,940
  -246,107
  -274,785
  -304,943
  -336,563
  -369,631
  -404,146
  -440,116
  -477,558
  -516,500

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
  0
Total assets, $m
  86,699
  139,881
  216,116
  323,201
  468,949
  661,619
  909,574
  1,220,914
  1,603,137
  2,062,848
  2,605,545
  3,235,496
  3,955,703
  4,767,953
  5,672,923
  6,670,349
  7,759,218
  8,937,968
  10,204,697
  11,557,351
  12,993,893
  14,512,452
  16,111,441
  17,789,647
  19,546,306
  21,381,148
  23,294,427
  25,286,938
  27,360,021
  29,515,556
  31,755,955
Adjusted assets (=assets-cash), $m
  86,699
  139,881
  216,116
  323,201
  468,949
  661,619
  909,574
  1,220,914
  1,603,137
  2,062,848
  2,605,545
  3,235,496
  3,955,703
  4,767,953
  5,672,923
  6,670,349
  7,759,218
  8,937,968
  10,204,697
  11,557,351
  12,993,893
  14,512,452
  16,111,441
  17,789,647
  19,546,306
  21,381,148
  23,294,427
  25,286,938
  27,360,021
  29,515,556
  31,755,955
Revenue / Adjusted assets
  0.000
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
  0.047
Average production assets, $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
  0
Working capital, $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
  0
Total debt, $m
  0
  46,052
  114,663
  211,040
  342,213
  515,616
  738,775
  1,018,982
  1,362,983
  1,776,722
  2,265,149
  2,832,105
  3,480,292
  4,211,316
  5,025,789
  5,923,473
  6,903,455
  7,964,330
  9,104,386
  10,321,775
  11,614,663
  12,981,366
  14,420,456
  15,930,841
  17,511,835
  19,163,192
  20,885,143
  22,678,403
  24,544,178
  26,484,159
  28,500,519
Total liabilities, $m
  79,841
  125,893
  194,504
  290,881
  422,054
  595,457
  818,616
  1,098,823
  1,442,824
  1,856,563
  2,344,990
  2,911,946
  3,560,133
  4,291,157
  5,105,630
  6,003,314
  6,983,296
  8,044,171
  9,184,227
  10,401,616
  11,694,504
  13,061,207
  14,500,297
  16,010,682
  17,591,676
  19,243,033
  20,964,984
  22,758,244
  24,624,019
  26,564,000
  28,580,360
Total equity, $m
  6,858
  13,988
  21,612
  32,320
  46,895
  66,162
  90,957
  122,091
  160,314
  206,285
  260,554
  323,550
  395,570
  476,795
  567,292
  667,035
  775,922
  893,797
  1,020,470
  1,155,735
  1,299,389
  1,451,245
  1,611,144
  1,778,965
  1,954,631
  2,138,115
  2,329,443
  2,528,694
  2,736,002
  2,951,556
  3,175,596
Total liabilities and equity, $m
  86,699
  139,881
  216,116
  323,201
  468,949
  661,619
  909,573
  1,220,914
  1,603,138
  2,062,848
  2,605,544
  3,235,496
  3,955,703
  4,767,952
  5,672,922
  6,670,349
  7,759,218
  8,937,968
  10,204,697
  11,557,351
  12,993,893
  14,512,452
  16,111,441
  17,789,647
  19,546,307
  21,381,148
  23,294,427
  25,286,938
  27,360,021
  29,515,556
  31,755,956
Debt-to-equity ratio
  0.000
  3.290
  5.310
  6.530
  7.300
  7.790
  8.120
  8.350
  8.500
  8.610
  8.690
  8.750
  8.800
  8.830
  8.860
  8.880
  8.900
  8.910
  8.920
  8.930
  8.940
  8.940
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.970
Adjusted equity ratio
  0.079
  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
  805
  1,320
  862
  120
  -1,325
  -3,426
  -6,290
  -10,077
  -14,944
  -21,042
  -28,509
  -37,461
  -47,996
  -60,184
  -74,074
  -89,688
  -107,034
  -126,098
  -146,856
  -169,275
  -193,316
  -218,940
  -246,107
  -274,785
  -304,943
  -336,563
  -369,631
  -404,146
  -440,116
  -477,558
  -516,500
Depreciation, amort., depletion, $m
  344
  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
Funds from operations, $m
  1,701
  1,320
  862
  120
  -1,325
  -3,426
  -6,290
  -10,077
  -14,944
  -21,042
  -28,509
  -37,461
  -47,996
  -60,184
  -74,074
  -89,688
  -107,034
  -126,098
  -146,856
  -169,275
  -193,316
  -218,940
  -246,107
  -274,785
  -304,943
  -336,563
  -369,631
  -404,146
  -440,116
  -477,558
  -516,500
Change in working capital, $m
  502
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from operations, $m
  1,199
  1,320
  862
  120
  -1,325
  -3,426
  -6,290
  -10,077
  -14,944
  -21,042
  -28,509
  -37,461
  -47,996
  -60,184
  -74,074
  -89,688
  -107,034
  -126,098
  -146,856
  -169,275
  -193,316
  -218,940
  -246,107
  -274,785
  -304,943
  -336,563
  -369,631
  -404,146
  -440,116
  -477,558
  -516,500
Maintenance CAPEX, $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
  0
New CAPEX, $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
  0
Cash from investing activities, $m
  -2,602
  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
Free cash flow, $m
  -1,403
  1,320
  862
  120
  -1,325
  -3,426
  -6,290
  -10,077
  -14,944
  -21,042
  -28,509
  -37,461
  -47,996
  -60,184
  -74,074
  -89,688
  -107,034
  -126,098
  -146,856
  -169,275
  -193,316
  -218,940
  -246,107
  -274,785
  -304,943
  -336,563
  -369,631
  -404,146
  -440,116
  -477,558
  -516,500
Issuance/(repayment) of debt, $m
  -500
  46,052
  68,612
  96,377
  131,173
  173,403
  223,159
  280,206
  344,001
  413,740
  488,427
  566,956
  648,187
  731,024
  814,473
  897,684
  979,982
  1,060,875
  1,140,056
  1,217,388
  1,292,888
  1,366,703
  1,439,090
  1,510,386
  1,580,993
  1,651,358
  1,721,951
  1,793,260
  1,865,774
  1,939,982
  2,016,359
Issuance/(repurchase) of shares, $m
  -19
  5,810
  6,761
  10,589
  15,900
  22,693
  31,086
  41,211
  53,166
  67,013
  82,778
  100,457
  120,017
  141,409
  164,571
  189,431
  215,921
  243,973
  273,529
  304,540
  336,970
  370,796
  406,006
  442,605
  480,609
  520,047
  560,959
  603,397
  647,424
  693,111
  740,540
Cash from financing (excl. dividends), $m  
  1,155
  51,862
  75,373
  106,966
  147,073
  196,096
  254,245
  321,417
  397,167
  480,753
  571,205
  667,413
  768,204
  872,433
  979,044
  1,087,115
  1,195,903
  1,304,848
  1,413,585
  1,521,928
  1,629,858
  1,737,499
  1,845,096
  1,952,991
  2,061,602
  2,171,405
  2,282,910
  2,396,657
  2,513,198
  2,633,093
  2,756,899
Total cash flow (excl. dividends), $m
  -261
  53,182
  76,235
  107,085
  145,748
  192,670
  247,955
  311,340
  382,223
  459,711
  542,697
  629,951
  720,208
  812,249
  904,970
  997,427
  1,088,869
  1,178,750
  1,266,729
  1,352,654
  1,436,542
  1,518,559
  1,598,988
  1,678,206
  1,756,659
  1,834,842
  1,913,279
  1,992,511
  2,073,083
  2,155,535
  2,240,399
Retained Cash Flow (-), $m
  -1,496
  -7,130
  -7,624
  -10,709
  -15,900
  -22,693
  -31,086
  -41,211
  -53,166
  -67,013
  -82,778
  -100,457
  -120,017
  -141,409
  -164,571
  -189,431
  -215,921
  -243,973
  -273,529
  -304,540
  -336,970
  -370,796
  -406,006
  -442,605
  -480,609
  -520,047
  -560,959
  -603,397
  -647,424
  -693,111
  -740,540
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  46,052
  68,612
  96,377
  129,848
  169,977
  216,869
  270,129
  329,057
  392,698
  459,918
  529,494
  600,191
  670,840
  740,399
  807,996
  872,948
  934,777
  993,200
  1,048,113
  1,099,572
  1,147,764
  1,192,982
  1,235,601
  1,276,050
  1,314,795
  1,352,320
  1,389,114
  1,425,659
  1,462,424
  1,499,859
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  44,153
  62,812
  83,874
  106,916
  131,753
  157,391
  182,496
  205,669
  225,584
  241,118
  251,449
  256,123
  255,066
  248,565
  237,214
  221,835
  203,392
  182,908
  161,380
  139,722
  118,717
  98,986
  80,983
  64,992
  51,147
  39,454
  29,814
  22,057
  15,964
  11,293
Current shareholders' claim on cash, %
  100
  63.9
  48.4
  36.5
  27.5
  20.8
  15.8
  12.2
  9.4
  7.4
  5.8
  4.6
  3.7
  3.0
  2.4
  2.0
  1.6
  1.4
  1.1
  0.9
  0.8
  0.7
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.2
  0.2

Athene Holding Ltd. is an insurance holding company. The Company's segments include Retirement Services, Corporate and Other. Retirement Services segment consists of the United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to its policyholders. Retirement Services has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one year guarantee fixed deferred annuities, immediate annuities and institutional products from its reinsurance partners. It offers two product lines: annuities and funding agreements. It offers deferred and immediate annuities, which are focused on the needs and objectives of people preparing for, approaching or living in retirement. It focuses on issuing funding agreements to institutional investors. Its life and other products include other retail products.

FINANCIAL RATIOS  of  Athene Holding (ATH)

Valuation Ratios
P/E Ratio 12.8
Price to Sales 2.5
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 8.6
Price to Free Cash Flow 8.6
Growth Rates
Sales Growth Rate 47.3%
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 0%
Total Debt to Equity 0%
Interest Coverage 85
Management Effectiveness
Return On Assets 1%
Ret/ On Assets - 3 Yr. Avg. 1%
Return On Total Capital 13.2%
Ret/ On T. Cap. - 3 Yr. Avg. 12.8%
Return On Equity 13.2%
Return On Equity - 3 Yr. Avg. 14.9%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 26.9%
EBITDA Margin - 3 Yr. Avg. 25.2%
Operating Margin 18.2%
Oper. Margin - 3 Yr. Avg. 17.8%
Pre-Tax Margin 18.3%
Pre-Tax Margin - 3 Yr. Avg. 17.8%
Net Profit Margin 19.6%
Net Profit Margin - 3 Yr. Avg. 17.3%
Effective Tax Rate -6.9%
Eff/ Tax Rate - 3 Yr. Avg. 1.9%
Payout Ratio 0%

ATH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ATH stock intrinsic value calculation we used $4109 million for the last fiscal year's total revenue generated by Athene Holding. The default revenue input number comes from 2016 income statement of Athene Holding. 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 ATH 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 4.3%, whose default value for ATH is calculated based on our internal credit rating of Athene Holding, 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 Athene Holding.
    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 ATH stock the variable cost ratio is equal to 72.5%.

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 ATH 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 Athene Holding.

Corporate tax rate of 27% is the nominal tax rate for Athene Holding. 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 ATH 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 ATH are equal to 0%.

Life of production assets of 0 years is the average useful life of capital assets used in Athene Holding 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 ATH is equal to 0%. 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 - $6858 million for Athene Holding - 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 200.112 million for Athene Holding 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 Athene Holding at the current share price and the inputted number of shares is $10.3 billion.

RELATED COMPANIES Price Int.Val. Rating
ATH Athene Holding 51.50 1,587.59  str.buy
AEL American Equit 32.14 281.82  str.buy
RGA Reinsurance Gr 161.86 342.08  str.buy
FGL Fidelity&Guara 31.10 308.86  str.buy
AFG American Finan 104.79 271.43  str.buy
HRG HRG Group 16.98 1.96  str.sell
MFC Manulife Finan 20.89 37.91  str.buy

COMPANY NEWS

▶ Athene Holding (ATH) Jumps: Stock Rises 7.5%   [Dec-11-17 08:46AM  Zacks]
▶ Athene Signs Pension Buyout Agreement with MillerCoors   [Dec-01-17 05:04PM  Business Wire]
▶ Athene Holding Ltd. Class A to Host Earnings Call   [Nov-07-17 07:10AM  ACCESSWIRE]
▶ Athene Holding Ltd. Reports Third Quarter 2017 Results   [Nov-06-17 04:17PM  Business Wire]
▶ Athene Trying To Close In On Key Technical Measure   [Oct-11-17 03:00AM  Investor's Business Daily]
▶ Prudential Earns RS Rating Upgrade   [Oct-09-17 03:00AM  Investor's Business Daily]
▶ Stocks With Rising Relative Strength: Prudential   [Sep-28-17 03:00AM  Investor's Business Daily]
▶ Lincoln National Earns Relative Strength Rating Upgrade   [Sep-18-17 03:00AM  Investor's Business Daily]
▶ New IPO With 113% EPS Growth Tries To Break Out Again   [Sep-13-17 10:42AM  Investor's Business Daily]
▶ Stocks Showing Improved Relative Strength: Lincoln National   [03:00AM  Investor's Business Daily]
▶ Bulls Shrug Off Bad News; Can These 5 Breakouts Bloom?   [Sep-01-17 12:07PM  Investor's Business Daily]
▶ Voya Financial Sees RS Rating Improve To 71   [Aug-28-17 03:00AM  Investor's Business Daily]
▶ AGER to Acquire Aegon Ireland   [01:09AM  Business Wire]
▶ Athene Holding Ltd. Reports Second Quarter 2017 Results   [Aug-09-17 04:14PM  Business Wire]
▶ ETFs with exposure to Athene Holding Ltd. : July 11, 2017   [Jul-11-17 02:03PM  Capital Cube]
▶ ETFs with exposure to Athene Holding Ltd. : June 19, 2017   [Jun-19-17 02:56PM  Capital Cube]
▶ ETFs with exposure to Athene Holding Ltd. : June 8, 2017   [Jun-08-17 01:23PM  Capital Cube]
▶ Athene Holding Ltd. Reports First Quarter 2017 Results   [May-10-17 04:18PM  Business Wire]
▶ Cigna Case Could Upend Decades-Old Merger Law   [May-08-17 09:50AM  TheStreet.com]
▶ IPO Stock News And Analysis: Find Today's Top New Issues   [May-04-17 01:38PM  Investor's Business Daily]
▶ While Snap Slid, This Lesser-Known IPO Stock May Be Ready To Roll   [Apr-28-17 04:18PM  Investor's Business Daily]
▶ ETFs with exposure to Athene Holding Ltd. : April 5, 2017   [Apr-05-17 04:21PM  Capital Cube]
▶ Athene Holding Joins Russell 1000 Index   [Apr-03-17 04:54PM  Business Wire]
▶ 5 Hot IPOs That Hedge Funds Couldnt Ignore   [Mar-31-17 08:30AM  Insider Monkey]
▶ Athene Holding Updates IPO Outlook   [10:40AM  24/7 Wall St.]
▶ Athene Elevates Brand Awareness with National Campaign   [Mar-06-17 11:47AM  Business Wire]
▶ [$$] Apollo Global's Earnings Boosted by Athene Affiliate   [07:52AM  at The Wall Street Journal]
▶ [$$] Athene Trades Higher in Market Debut   [Dec-09-16 05:16PM  at The Wall Street Journal]
Financial statements of ATH
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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