Intrinsic value of Boeing - BA

Previous Close

$339.14

  Intrinsic Value

$39.85

stock screener

  Rating & Target

str. sell

-88%

Previous close

$339.14

 
Intrinsic value

$39.85

 
Up/down potential

-88%

 
Rating

str. sell

We calculate the intrinsic value of BA 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 202.1

 

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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  95,260
  97,451
  99,955
  102,767
  105,883
  109,301
  113,024
  117,053
  121,394
  126,053
  131,037
  136,355
  142,017
  148,035
  154,421
  161,188
  168,352
  175,927
  183,931
  192,382
  201,300
  210,704
  220,617
  231,061
  242,061
  253,643
  265,833
  278,661
  292,157
  306,352
Variable operating expenses, $m
  89,337
  91,374
  93,701
  96,314
  99,209
  102,386
  105,845
  109,590
  113,624
  117,953
  121,772
  126,714
  131,976
  137,568
  143,502
  149,791
  156,448
  163,488
  170,926
  178,780
  187,066
  195,806
  205,018
  214,723
  224,946
  235,708
  247,037
  258,958
  271,499
  284,691
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
  89,337
  91,374
  93,701
  96,314
  99,209
  102,386
  105,845
  109,590
  113,624
  117,953
  121,772
  126,714
  131,976
  137,568
  143,502
  149,791
  156,448
  163,488
  170,926
  178,780
  187,066
  195,806
  205,018
  214,723
  224,946
  235,708
  247,037
  258,958
  271,499
  284,691
Operating income, $m
  5,922
  6,077
  6,254
  6,453
  6,673
  6,915
  7,178
  7,463
  7,770
  8,100
  9,265
  9,641
  10,042
  10,467
  10,919
  11,397
  11,904
  12,439
  13,005
  13,603
  14,233
  14,898
  15,599
  16,338
  17,116
  17,934
  18,796
  19,703
  20,658
  21,661
EBITDA, $m
  8,850
  9,054
  9,287
  9,548
  9,837
  10,155
  10,501
  10,875
  11,278
  11,711
  12,174
  12,668
  13,194
  13,754
  14,347
  14,976
  15,641
  16,345
  17,089
  17,874
  18,702
  19,576
  20,497
  21,467
  22,489
  23,565
  24,698
  25,890
  27,144
  28,462
Interest expense (income), $m
  523
  600
  213
  318
  438
  574
  723
  888
  1,067
  1,260
  1,469
  1,693
  1,933
  2,188
  2,460
  2,750
  3,057
  3,382
  3,726
  4,091
  4,475
  4,882
  5,310
  5,762
  6,239
  6,741
  7,270
  7,826
  8,412
  9,029
  9,678
Earnings before tax, $m
  5,322
  5,865
  5,936
  6,015
  6,100
  6,192
  6,291
  6,397
  6,510
  6,631
  7,572
  7,709
  7,853
  8,007
  8,169
  8,340
  8,522
  8,713
  8,915
  9,128
  9,352
  9,588
  9,837
  10,099
  10,375
  10,665
  10,970
  11,291
  11,629
  11,983
Tax expense, $m
  1,437
  1,583
  1,603
  1,624
  1,647
  1,672
  1,698
  1,727
  1,758
  1,790
  2,045
  2,081
  2,120
  2,162
  2,206
  2,252
  2,301
  2,352
  2,407
  2,464
  2,525
  2,589
  2,656
  2,727
  2,801
  2,879
  2,962
  3,049
  3,140
  3,236
Net income, $m
  3,885
  4,281
  4,333
  4,391
  4,453
  4,520
  4,592
  4,670
  4,752
  4,840
  5,528
  5,627
  5,733
  5,845
  5,963
  6,089
  6,221
  6,360
  6,508
  6,663
  6,827
  6,999
  7,181
  7,372
  7,573
  7,785
  8,008
  8,242
  8,489
  8,748

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
  94,223
  96,391
  98,868
  101,649
  104,731
  108,112
  111,794
  115,779
  120,073
  124,681
  129,611
  134,871
  140,472
  146,425
  152,741
  159,435
  166,520
  174,013
  181,930
  190,289
  199,110
  208,412
  218,216
  228,547
  239,427
  250,883
  262,941
  275,629
  288,978
  303,019
Adjusted assets (=assets-cash), $m
  94,223
  96,391
  98,868
  101,649
  104,731
  108,112
  111,794
  115,779
  120,073
  124,681
  129,611
  134,871
  140,472
  146,425
  152,741
  159,435
  166,520
  174,013
  181,930
  190,289
  199,110
  208,412
  218,216
  228,547
  239,427
  250,883
  262,941
  275,629
  288,978
  303,019
Revenue / Adjusted assets
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
  1.011
Average production assets, $m
  21,148
  21,634
  22,190
  22,814
  23,506
  24,265
  25,091
  25,986
  26,949
  27,984
  29,090
  30,271
  31,528
  32,864
  34,282
  35,784
  37,374
  39,056
  40,833
  42,709
  44,689
  46,776
  48,977
  51,296
  53,738
  56,309
  59,015
  61,863
  64,859
  68,010
Working capital, $m
  32,769
  33,523
  34,385
  35,352
  36,424
  37,600
  38,880
  40,266
  41,760
  43,362
  45,077
  46,906
  48,854
  50,924
  53,121
  55,449
  57,913
  60,519
  63,272
  66,180
  69,247
  72,482
  75,892
  79,485
  83,269
  87,253
  91,447
  95,860
  100,502
  105,385
Total debt, $m
  3,940
  5,890
  8,120
  10,623
  13,397
  16,440
  19,753
  23,340
  27,205
  31,352
  35,789
  40,523
  45,564
  50,921
  56,606
  62,630
  69,007
  75,751
  82,876
  90,399
  98,338
  106,709
  115,534
  124,831
  134,624
  144,934
  155,786
  167,205
  179,219
  191,856
Total liabilities, $m
  84,801
  86,751
  88,981
  91,484
  94,258
  97,301
  100,614
  104,201
  108,066
  112,213
  116,650
  121,384
  126,425
  131,782
  137,467
  143,491
  149,868
  156,612
  163,737
  171,260
  179,199
  187,570
  196,395
  205,692
  215,485
  225,795
  236,647
  248,066
  260,080
  272,717
Total equity, $m
  9,422
  9,639
  9,887
  10,165
  10,473
  10,811
  11,179
  11,578
  12,007
  12,468
  12,961
  13,487
  14,047
  14,642
  15,274
  15,943
  16,652
  17,401
  18,193
  19,029
  19,911
  20,841
  21,822
  22,855
  23,943
  25,088
  26,294
  27,563
  28,898
  30,302
Total liabilities and equity, $m
  94,223
  96,390
  98,868
  101,649
  104,731
  108,112
  111,793
  115,779
  120,073
  124,681
  129,611
  134,871
  140,472
  146,424
  152,741
  159,434
  166,520
  174,013
  181,930
  190,289
  199,110
  208,411
  218,217
  228,547
  239,428
  250,883
  262,941
  275,629
  288,978
  303,019
Debt-to-equity ratio
  0.420
  0.610
  0.820
  1.050
  1.280
  1.520
  1.770
  2.020
  2.270
  2.510
  2.760
  3.000
  3.240
  3.480
  3.710
  3.930
  4.140
  4.350
  4.560
  4.750
  4.940
  5.120
  5.290
  5.460
  5.620
  5.780
  5.920
  6.070
  6.200
  6.330
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
  3,885
  4,281
  4,333
  4,391
  4,453
  4,520
  4,592
  4,670
  4,752
  4,840
  5,528
  5,627
  5,733
  5,845
  5,963
  6,089
  6,221
  6,360
  6,508
  6,663
  6,827
  6,999
  7,181
  7,372
  7,573
  7,785
  8,008
  8,242
  8,489
  8,748
Depreciation, amort., depletion, $m
  2,928
  2,977
  3,032
  3,095
  3,164
  3,240
  3,322
  3,412
  3,508
  3,612
  2,909
  3,027
  3,153
  3,286
  3,428
  3,578
  3,737
  3,906
  4,083
  4,271
  4,469
  4,678
  4,898
  5,130
  5,374
  5,631
  5,902
  6,186
  6,486
  6,801
Funds from operations, $m
  6,813
  7,258
  7,366
  7,485
  7,617
  7,760
  7,915
  8,081
  8,260
  8,452
  8,437
  8,654
  8,886
  9,131
  9,391
  9,667
  9,958
  10,266
  10,591
  10,934
  11,296
  11,677
  12,079
  12,502
  12,947
  13,416
  13,910
  14,429
  14,975
  15,549
Change in working capital, $m
  643
  754
  862
  967
  1,072
  1,176
  1,281
  1,386
  1,493
  1,603
  1,715
  1,829
  1,948
  2,070
  2,197
  2,328
  2,464
  2,606
  2,753
  2,907
  3,068
  3,235
  3,410
  3,593
  3,784
  3,984
  4,194
  4,413
  4,642
  4,883
Cash from operations, $m
  6,171
  6,504
  6,504
  6,518
  6,545
  6,584
  6,634
  6,695
  6,767
  6,849
  6,722
  6,825
  6,938
  7,061
  7,195
  7,339
  7,494
  7,660
  7,838
  8,027
  8,228
  8,442
  8,669
  8,909
  9,163
  9,432
  9,716
  10,016
  10,332
  10,666
Maintenance CAPEX, $m
  -2,074
  -2,115
  -2,163
  -2,219
  -2,281
  -2,351
  -2,426
  -2,509
  -2,599
  -2,695
  -2,798
  -2,909
  -3,027
  -3,153
  -3,286
  -3,428
  -3,578
  -3,737
  -3,906
  -4,083
  -4,271
  -4,469
  -4,678
  -4,898
  -5,130
  -5,374
  -5,631
  -5,902
  -6,186
  -6,486
New CAPEX, $m
  -410
  -486
  -556
  -624
  -692
  -759
  -826
  -895
  -964
  -1,034
  -1,106
  -1,181
  -1,257
  -1,336
  -1,418
  -1,502
  -1,590
  -1,682
  -1,777
  -1,876
  -1,980
  -2,088
  -2,201
  -2,319
  -2,442
  -2,571
  -2,706
  -2,848
  -2,996
  -3,151
Cash from investing activities, $m
  -2,484
  -2,601
  -2,719
  -2,843
  -2,973
  -3,110
  -3,252
  -3,404
  -3,563
  -3,729
  -3,904
  -4,090
  -4,284
  -4,489
  -4,704
  -4,930
  -5,168
  -5,419
  -5,683
  -5,959
  -6,251
  -6,557
  -6,879
  -7,217
  -7,572
  -7,945
  -8,337
  -8,750
  -9,182
  -9,637
Free cash flow, $m
  3,687
  3,903
  3,785
  3,675
  3,572
  3,474
  3,381
  3,292
  3,205
  3,120
  2,817
  2,735
  2,654
  2,572
  2,491
  2,409
  2,325
  2,241
  2,155
  2,067
  1,978
  1,885
  1,790
  1,693
  1,592
  1,487
  1,379
  1,267
  1,150
  1,029
Issuance/(repayment) of debt, $m
  -7,177
  1,950
  2,230
  2,503
  2,774
  3,043
  3,314
  3,587
  3,864
  4,147
  4,437
  4,734
  5,041
  5,357
  5,685
  6,024
  6,377
  6,744
  7,125
  7,523
  7,938
  8,372
  8,824
  9,298
  9,792
  10,310
  10,852
  11,420
  12,014
  12,637
Issuance/(repurchase) of shares, $m
  5,182
  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 financing (excl. dividends), $m  
  -1,995
  1,950
  2,230
  2,503
  2,774
  3,043
  3,314
  3,587
  3,864
  4,147
  4,437
  4,734
  5,041
  5,357
  5,685
  6,024
  6,377
  6,744
  7,125
  7,523
  7,938
  8,372
  8,824
  9,298
  9,792
  10,310
  10,852
  11,420
  12,014
  12,637
Total cash flow (excl. dividends), $m
  1,692
  5,853
  6,014
  6,178
  6,345
  6,517
  6,695
  6,879
  7,069
  7,267
  7,254
  7,470
  7,695
  7,930
  8,175
  8,433
  8,702
  8,985
  9,280
  9,591
  9,916
  10,257
  10,615
  10,990
  11,384
  11,797
  12,231
  12,686
  13,164
  13,665
Retained Cash Flow (-), $m
  -9,067
  -217
  -248
  -278
  -308
  -338
  -368
  -399
  -429
  -461
  -493
  -526
  -560
  -595
  -632
  -669
  -709
  -749
  -792
  -836
  -882
  -930
  -980
  -1,033
  -1,088
  -1,146
  -1,206
  -1,269
  -1,335
  -1,404
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
  187
  191
  195
  200
  206
  212
  219
  226
  234
  243
  252
  262
  273
  284
  296
  309
  322
  337
  352
  368
  385
  403
  421
  441
  462
  484
  507
  532
  557
  584
Cash available for distribution, $m
  -7,375
  5,637
  5,767
  5,900
  6,037
  6,179
  6,327
  6,480
  6,640
  6,807
  6,761
  6,944
  7,134
  7,334
  7,544
  7,763
  7,994
  8,235
  8,489
  8,755
  9,034
  9,327
  9,634
  9,957
  10,296
  10,652
  11,025
  11,417
  11,829
  12,261
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
  -7,071
  5,160
  5,018
  4,858
  4,680
  4,485
  4,274
  4,050
  3,814
  3,568
  3,211
  2,963
  2,713
  2,462
  2,215
  1,973
  1,739
  1,517
  1,307
  1,112
  934
  774
  631
  507
  401
  311
  237
  177
  129
  92
Current shareholders' claim on cash, %
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7
  40.7

The Boeing Company is an aerospace company. The Company's segments include Commercial Airplanes; Defense, Space & Security (BDS), such as Boeing Military Aircraft (BMA), Network & Space Systems (N&SS) and Global Services & Support (GS&S), and Boeing Capital (BCC). The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides related support services, to the commercial airline industry. The Commercial Airplanes segment also produces commercial aircraft and offers a family of commercial jetliners. The BDS segment's operations involve research, development, production, modification and support of the products and related systems. The BMA segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems. The BCC segment's portfolio consists of equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease and investments.

FINANCIAL RATIOS  of  Boeing (BA)

Valuation Ratios
P/E Ratio 42.8
Price to Sales 2.2
Price to Book 256.2
Price to Tangible Book
Price to Cash Flow 19.9
Price to Free Cash Flow 26.5
Growth Rates
Sales Growth Rate -1.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6.7%
Cap. Spend. - 3 Yr. Gr. Rate 4.5%
Financial Strength
Quick Ratio 26
Current Ratio 0
LT Debt to Equity 1171.1%
Total Debt to Equity 1218.1%
Interest Coverage 12
Management Effectiveness
Return On Assets 5.8%
Ret/ On Assets - 3 Yr. Avg. 6%
Return On Total Capital 36.2%
Ret/ On T. Cap. - 3 Yr. Avg. 30.8%
Return On Equity 136.9%
Return On Equity - 3 Yr. Avg. 84.1%
Asset Turnover 1
Profitability Ratios
Gross Margin 14.6%
Gross Margin - 3 Yr. Avg. 14.9%
EBITDA Margin 8.5%
EBITDA Margin - 3 Yr. Avg. 9.6%
Operating Margin 6.2%
Oper. Margin - 3 Yr. Avg. 7.4%
Pre-Tax Margin 5.9%
Pre-Tax Margin - 3 Yr. Avg. 7.1%
Net Profit Margin 5.2%
Net Profit Margin - 3 Yr. Avg. 5.5%
Effective Tax Rate 12.1%
Eff/ Tax Rate - 3 Yr. Avg. 21.1%
Payout Ratio 56.3%

BA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BA stock intrinsic value calculation we used $93392 million for the last fiscal year's total revenue generated by Boeing. The default revenue input number comes from 2017 income statement of Boeing. 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 BA stock valuation model: a) initial revenue growth rate of 2% 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 BA is calculated based on our internal credit rating of Boeing, 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 Boeing.
    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 BA stock the variable cost ratio is equal to 93.8%.

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 BA 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 Boeing.

Corporate tax rate of 27% is the nominal tax rate for Boeing. 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 BA stock is equal to 0.2%.

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 BA are equal to 22.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Boeing 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 BA is equal to 34.4%. 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 - $355 million for Boeing - 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 596 million for Boeing 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 Boeing at the current share price and the inputted number of shares is $202.1 billion.

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COMPANY NEWS

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▶ China slaps tariffs on $16B of US goods   [12:54PM  Yahoo Finance Video]
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▶ Boeing CEO: Every Morning I Had to Milk Cows   [10:12AM  Bloomberg Video]
▶ Cadman's 67-acre site near Boeing Everett attracts potential buyer   [Aug-07-18 06:32PM  American City Business Journals]
▶ Boeing ramps up hiring for new 737 Max finishing plant in China   [04:29PM  American City Business Journals]
▶ China to US: We will not surrender   [01:00PM  Yahoo Finance Video]
▶ Acm Research Earnings, Revenue Beat in Q2   [11:06AM  Investing.com]
▶ [$$] GM Cuts Different Type of Health-Care Deal   [Aug-06-18 10:50PM  The Wall Street Journal]
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▶ Esterline expects regional jets to drive long-term growth   [05:56PM  American City Business Journals]
▶ Correction: Commercial Space-Astronauts story   [04:05PM  Associated Press]
▶ Why Boeing Is in Good Shape in 2018   [06:06AM  Motley Fool]
▶ Stocks - Dow Bags Triple-Digit Gains to Eke Out Weekly Win   [Aug-03-18 07:45PM  Investing.com]
▶ Parking tin: Past delays reportedly piling up unfinished 737s at Boeing   [02:46PM  American City Business Journals]
▶ NASA names first astronauts for SpaceX, Boeing space station missions   [02:02PM  American City Business Journals]
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▶ NASA Names Astronauts to Boeing, SpaceX Flights   [01:25PM  Associated Press Videos]
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