Intrinsic value of BB&T - BBT

Previous Close

$51.85

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$51.85

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of BBT 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 41.4

 

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, %
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.15
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
Revenue, $m
  11,352
  11,960
  12,597
  13,263
  13,961
  14,692
  15,458
  16,261
  17,102
  17,983
  18,908
  19,877
  20,893
  21,959
  23,077
  24,250
  25,480
  26,771
  28,126
  29,547
  31,039
  32,605
  34,248
  35,972
  37,782
  39,682
  41,677
  43,770
  45,968
  48,275
Variable operating expenses, $m
  6,790
  7,122
  7,469
  7,833
  8,213
  8,612
  9,030
  9,467
  9,926
  10,407
  10,312
  10,840
  11,395
  11,976
  12,586
  13,225
  13,896
  14,601
  15,339
  16,115
  16,928
  17,782
  18,678
  19,619
  20,606
  21,642
  22,730
  23,871
  25,070
  26,328
Fixed operating expenses, $m
  603
  616
  630
  644
  658
  672
  687
  702
  718
  733
  750
  766
  783
  800
  818
  836
  854
  873
  892
  912
  932
  952
  973
  995
  1,017
  1,039
  1,062
  1,085
  1,109
  1,133
Total operating expenses, $m
  7,393
  7,738
  8,099
  8,477
  8,871
  9,284
  9,717
  10,169
  10,644
  11,140
  11,062
  11,606
  12,178
  12,776
  13,404
  14,061
  14,750
  15,474
  16,231
  17,027
  17,860
  18,734
  19,651
  20,614
  21,623
  22,681
  23,792
  24,956
  26,179
  27,461
Operating income, $m
  3,959
  4,222
  4,498
  4,787
  5,090
  5,408
  5,741
  6,091
  6,458
  6,843
  7,846
  8,270
  8,715
  9,183
  9,673
  10,189
  10,730
  11,298
  11,894
  12,521
  13,179
  13,870
  14,596
  15,359
  16,160
  17,001
  17,885
  18,814
  19,789
  20,813
EBITDA, $m
  28,413
  29,955
  31,569
  33,259
  35,029
  36,883
  38,826
  40,862
  42,996
  45,234
  47,580
  50,041
  52,622
  55,329
  58,170
  61,149
  64,276
  67,557
  71,001
  74,615
  78,408
  82,389
  86,568
  90,955
  95,559
  100,394
  105,469
  110,797
  116,390
  122,263
Interest expense (income), $m
  775
  10,387
  9,923
  10,358
  10,813
  11,289
  11,788
  12,310
  12,858
  13,431
  14,032
  14,662
  15,323
  16,016
  16,742
  17,504
  18,303
  19,141
  20,021
  20,943
  21,911
  22,927
  23,994
  25,112
  26,287
  27,519
  28,813
  30,171
  31,596
  33,093
  34,663
Earnings before tax, $m
  -6,428
  -5,701
  -5,860
  -6,026
  -6,199
  -6,380
  -6,569
  -6,767
  -6,973
  -7,189
  -6,816
  -7,053
  -7,300
  -7,559
  -7,830
  -8,114
  -8,412
  -8,723
  -9,049
  -9,390
  -9,748
  -10,123
  -10,516
  -10,928
  -11,359
  -11,812
  -12,286
  -12,783
  -13,304
  -13,850
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
  -6,428
  -5,701
  -5,860
  -6,026
  -6,199
  -6,380
  -6,569
  -6,767
  -6,973
  -7,189
  -6,816
  -7,053
  -7,300
  -7,559
  -7,830
  -8,114
  -8,412
  -8,723
  -9,049
  -9,390
  -9,748
  -10,123
  -10,516
  -10,928
  -11,359
  -11,812
  -12,286
  -12,783
  -13,304
  -13,850

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
  166,935
  175,883
  185,247
  195,049
  205,314
  216,064
  227,327
  239,128
  251,496
  264,461
  278,053
  292,304
  307,250
  322,924
  339,366
  356,614
  374,709
  393,694
  413,616
  434,520
  456,457
  479,480
  503,643
  529,003
  555,622
  583,563
  612,892
  643,679
  675,998
  709,925
Adjusted assets (=assets-cash), $m
  166,935
  175,883
  185,247
  195,049
  205,314
  216,064
  227,327
  239,128
  251,496
  264,461
  278,053
  292,304
  307,250
  322,924
  339,366
  356,614
  374,709
  393,694
  413,616
  434,520
  456,457
  479,480
  503,643
  529,003
  555,622
  583,563
  612,892
  643,679
  675,998
  709,925
Revenue / Adjusted assets
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
  0.068
Average production assets, $m
  238,553
  251,340
  264,721
  278,729
  293,397
  308,760
  324,854
  341,719
  359,393
  377,920
  397,343
  417,709
  439,066
  461,466
  484,961
  509,609
  535,467
  562,597
  591,065
  620,937
  652,286
  685,186
  719,715
  755,956
  793,995
  833,923
  875,835
  919,830
  966,014
  1,014,497
Working capital, $m
  -190,309
  -200,510
  -211,185
  -222,360
  -234,062
  -246,318
  -259,157
  -272,611
  -286,711
  -301,490
  -316,985
  -333,233
  -350,271
  -368,140
  -386,884
  -406,547
  -427,176
  -448,820
  -471,530
  -495,361
  -520,370
  -546,617
  -574,163
  -603,074
  -633,420
  -665,273
  -698,709
  -733,807
  -770,651
  -809,329
Total debt, $m
  183,755
  191,807
  200,235
  209,057
  218,295
  227,971
  238,107
  248,728
  259,859
  271,528
  283,760
  296,587
  310,038
  324,145
  338,943
  354,466
  370,751
  387,838
  405,767
  424,581
  444,324
  465,045
  486,791
  509,616
  533,573
  558,720
  585,116
  612,824
  641,911
  672,445
Total liabilities, $m
  150,242
  158,294
  166,722
  175,544
  184,782
  194,458
  204,594
  215,215
  226,346
  238,015
  250,247
  263,074
  276,525
  290,632
  305,430
  320,953
  337,238
  354,325
  372,254
  391,068
  410,811
  431,532
  453,278
  476,103
  500,060
  525,207
  551,603
  579,311
  608,398
  638,932
Total equity, $m
  16,694
  17,588
  18,525
  19,505
  20,531
  21,606
  22,733
  23,913
  25,150
  26,446
  27,805
  29,230
  30,725
  32,292
  33,937
  35,661
  37,471
  39,369
  41,362
  43,452
  45,646
  47,948
  50,364
  52,900
  55,562
  58,356
  61,289
  64,368
  67,600
  70,992
Total liabilities and equity, $m
  166,936
  175,882
  185,247
  195,049
  205,313
  216,064
  227,327
  239,128
  251,496
  264,461
  278,052
  292,304
  307,250
  322,924
  339,367
  356,614
  374,709
  393,694
  413,616
  434,520
  456,457
  479,480
  503,642
  529,003
  555,622
  583,563
  612,892
  643,679
  675,998
  709,924
Debt-to-equity ratio
  11.010
  10.910
  10.810
  10.720
  10.630
  10.550
  10.470
  10.400
  10.330
  10.270
  10.210
  10.150
  10.090
  10.040
  9.990
  9.940
  9.890
  9.850
  9.810
  9.770
  9.730
  9.700
  9.670
  9.630
  9.600
  9.570
  9.550
  9.520
  9.500
  9.470
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
  -6,428
  -5,701
  -5,860
  -6,026
  -6,199
  -6,380
  -6,569
  -6,767
  -6,973
  -7,189
  -6,816
  -7,053
  -7,300
  -7,559
  -7,830
  -8,114
  -8,412
  -8,723
  -9,049
  -9,390
  -9,748
  -10,123
  -10,516
  -10,928
  -11,359
  -11,812
  -12,286
  -12,783
  -13,304
  -13,850
Depreciation, amort., depletion, $m
  24,454
  25,733
  27,071
  28,472
  29,939
  31,475
  33,084
  34,771
  36,538
  38,391
  39,734
  41,771
  43,907
  46,147
  48,496
  50,961
  53,547
  56,260
  59,106
  62,094
  65,229
  68,519
  71,972
  75,596
  79,400
  83,392
  87,583
  91,983
  96,601
  101,450
Funds from operations, $m
  18,026
  20,032
  21,211
  22,446
  23,740
  25,095
  26,516
  28,004
  29,565
  31,202
  32,918
  34,718
  36,606
  38,587
  40,666
  42,847
  45,135
  47,537
  50,058
  52,703
  55,480
  58,395
  61,455
  64,668
  68,040
  71,581
  75,298
  79,200
  83,298
  87,600
Change in working capital, $m
  -9,750
  -10,201
  -10,675
  -11,175
  -11,702
  -12,256
  -12,839
  -13,454
  -14,100
  -14,780
  -15,495
  -16,247
  -17,038
  -17,870
  -18,744
  -19,663
  -20,629
  -21,644
  -22,710
  -23,831
  -25,009
  -26,246
  -27,546
  -28,912
  -30,346
  -31,853
  -33,436
  -35,098
  -36,844
  -38,678
Cash from operations, $m
  27,776
  30,233
  31,887
  33,621
  35,441
  37,351
  39,355
  41,458
  43,665
  45,981
  48,413
  50,965
  53,644
  56,457
  59,410
  62,509
  65,764
  69,181
  72,768
  76,535
  80,489
  84,642
  89,002
  93,580
  98,386
  103,434
  108,733
  114,298
  120,142
  126,277
Maintenance CAPEX, $m
  -22,633
  -23,855
  -25,134
  -26,472
  -27,873
  -29,340
  -30,876
  -32,485
  -34,172
  -35,939
  -37,792
  -39,734
  -41,771
  -43,907
  -46,147
  -48,496
  -50,961
  -53,547
  -56,260
  -59,106
  -62,094
  -65,229
  -68,519
  -71,972
  -75,596
  -79,400
  -83,392
  -87,583
  -91,983
  -96,601
New CAPEX, $m
  -12,227
  -12,786
  -13,381
  -14,008
  -14,668
  -15,363
  -16,094
  -16,864
  -17,674
  -18,527
  -19,423
  -20,366
  -21,357
  -22,400
  -23,496
  -24,647
  -25,858
  -27,131
  -28,468
  -29,873
  -31,349
  -32,900
  -34,529
  -36,241
  -38,039
  -39,928
  -41,912
  -43,995
  -46,184
  -48,483
Cash from investing activities, $m
  -34,860
  -36,641
  -38,515
  -40,480
  -42,541
  -44,703
  -46,970
  -49,349
  -51,846
  -54,466
  -57,215
  -60,100
  -63,128
  -66,307
  -69,643
  -73,143
  -76,819
  -80,678
  -84,728
  -88,979
  -93,443
  -98,129
  -103,048
  -108,213
  -113,635
  -119,328
  -125,304
  -131,578
  -138,167
  -145,084
Free cash flow, $m
  -7,083
  -6,409
  -6,629
  -6,859
  -7,099
  -7,351
  -7,615
  -7,892
  -8,181
  -8,484
  -8,802
  -9,135
  -9,484
  -9,849
  -10,233
  -10,634
  -11,055
  -11,497
  -11,959
  -12,444
  -12,953
  -13,487
  -14,046
  -14,633
  -15,248
  -15,894
  -16,571
  -17,281
  -18,025
  -18,807
Issuance/(repayment) of debt, $m
  -8,597
  8,053
  8,428
  8,822
  9,238
  9,676
  10,136
  10,621
  11,131
  11,668
  12,233
  12,826
  13,451
  14,107
  14,798
  15,523
  16,286
  17,087
  17,929
  18,814
  19,744
  20,720
  21,747
  22,825
  23,957
  25,147
  26,396
  27,708
  29,087
  30,535
Issuance/(repurchase) of shares, $m
  24,589
  6,596
  6,796
  7,006
  7,225
  7,455
  7,695
  7,947
  8,210
  8,486
  8,176
  8,478
  8,795
  9,127
  9,475
  9,839
  10,221
  10,621
  11,041
  11,481
  11,942
  12,425
  12,932
  13,464
  14,021
  14,606
  15,219
  15,861
  16,536
  17,243
Cash from financing (excl. dividends), $m  
  15,992
  14,649
  15,224
  15,828
  16,463
  17,131
  17,831
  18,568
  19,341
  20,154
  20,409
  21,304
  22,246
  23,234
  24,273
  25,362
  26,507
  27,708
  28,970
  30,295
  31,686
  33,145
  34,679
  36,289
  37,978
  39,753
  41,615
  43,569
  45,623
  47,778
Total cash flow (excl. dividends), $m
  8,909
  8,239
  8,595
  8,969
  9,364
  9,779
  10,216
  10,676
  11,160
  11,669
  11,606
  12,170
  12,762
  13,385
  14,040
  14,728
  15,451
  16,212
  17,011
  17,850
  18,732
  19,659
  20,633
  21,656
  22,730
  23,859
  25,044
  26,289
  27,597
  28,971
Retained Cash Flow (-), $m
  -24,589
  -6,596
  -6,796
  -7,006
  -7,225
  -7,455
  -7,695
  -7,947
  -8,210
  -8,486
  -8,176
  -8,478
  -8,795
  -9,127
  -9,475
  -9,839
  -10,221
  -10,621
  -11,041
  -11,481
  -11,942
  -12,425
  -12,932
  -13,464
  -14,021
  -14,606
  -15,219
  -15,861
  -16,536
  -17,243
Prev. year cash balance distribution, $m
  1,467
  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
  129
  136
  144
  151
  159
  168
  176
  185
  195
  205
  216
  227
  239
  251
  264
  277
  291
  306
  321
  338
  355
  372
  391
  411
  432
  453
  476
  500
  525
  552
Cash available for distribution, $m
  -14,213
  1,644
  1,799
  1,964
  2,138
  2,324
  2,521
  2,729
  2,950
  3,184
  3,431
  3,692
  3,967
  4,258
  4,565
  4,889
  5,230
  5,590
  5,970
  6,369
  6,790
  7,234
  7,700
  8,192
  8,709
  9,253
  9,825
  10,428
  11,061
  11,728
Discount rate, %
  15.20
  15.96
  16.76
  17.60
  18.48
  19.40
  20.37
  21.39
  22.46
  23.58
  24.76
  26.00
  27.30
  28.66
  30.09
  31.60
  33.18
  34.84
  36.58
  38.41
  40.33
  42.35
  44.46
  46.69
  49.02
  51.47
  54.05
  56.75
  59.59
  62.57
PV of cash for distribution, $m
  -12,338
  1,223
  1,130
  1,027
  916
  802
  689
  579
  476
  383
  301
  231
  172
  125
  88
  60
  40
  26
  16
  10
  6
  3
  2
  1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  35.8
  25.9
  18.8
  13.7
  10.0
  7.4
  5.5
  4.1
  3.1
  2.3
  1.8
  1.4
  1.1
  0.8
  0.6
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0

BB&T Corporation is a financial holding company. The Company conducts its business operations primarily through its bank subsidiary, Branch Banking and Trust Company (Branch Bank), and other nonbank subsidiaries. Its segments include Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients. Its retail services include asset management, automobile lending, bankcard lending, consumer finance, home equity lending, home mortgage lending, insurance, investment brokerage services, payment solutions and sales finance, among others. Its commercial services include asset management, association services, capital market services, commercial deposit services, commercial finance, corporate banking, floor plan lending, insurance, merchant services, real estate lending and payment solutions, among others.

FINANCIAL RATIOS  of  BB&T (BBT)

Valuation Ratios
P/E Ratio 17.3
Price to Sales 0
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 15.7
Price to Free Cash Flow 15.7
Growth Rates
Sales Growth Rate -100%
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 0
Current Ratio NaN
LT Debt to Equity 63%
Total Debt to Equity 64.4%
Interest Coverage 6
Management Effectiveness
Return On Assets 1.4%
Ret/ On Assets - 3 Yr. Avg. 1.4%
Return On Total Capital 4.9%
Ret/ On T. Cap. - 3 Yr. Avg. 4.5%
Return On Equity 8.5%
Return On Equity - 3 Yr. Avg. 8.5%
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 30.2%
Eff/ Tax Rate - 3 Yr. Avg. 29%
Payout Ratio 45%

BBT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BBT stock intrinsic value calculation we used $10770 million for the last fiscal year's total revenue generated by BB&T. The default revenue input number comes from 2017 income statement of BB&T. 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 BBT stock valuation model: a) initial revenue growth rate of 5.4% 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 15.2%, whose default value for BBT is calculated based on our internal credit rating of BB&T, 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 BB&T.
    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 BBT stock the variable cost ratio is equal to 60.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $590 million in the base year in the intrinsic value calculation for BBT 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 BB&T.

Corporate tax rate of 27% is the nominal tax rate for BB&T. 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 BBT stock is equal to 1.2%.

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 BBT are equal to 2101.5%.

Life of production assets of 10 years is the average useful life of capital assets used in BB&T 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 BBT is equal to -1676.5%. 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 BB&T - 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 799 million for BB&T 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 BB&T at the current share price and the inputted number of shares is $41.4 billion.

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COMPANY NEWS

▶ BB&T unveils community-focused TV spot   [Aug-09-18 03:00PM  PR Newswire]
▶ Laughter aplenty: Scenes from TBJ's Most Admired CEOs awards   [Jul-27-18 04:09PM  American City Business Journals]
▶ Triad's Most Admired CEOs Kelly King of BB&T   [Jul-25-18 02:19PM  American City Business Journals]
▶ BB&T hires new president for Louisville market   [Jul-24-18 04:03PM  American City Business Journals]
▶ BB&T announces third-quarter dividends   [01:54PM  PR Newswire]
▶ Buy these bank ETFs and stocks: Analyst   [10:30AM  CNBC Videos]
▶ BB&T CEO: If loans are growing, the economy is good   [Jul-19-18 03:14PM  CNBC Videos]
▶ BB&T Corporation to Host Earnings Call   [06:00AM  ACCESSWIRE]
▶ Day Ahead: Top 3 Things to Watch   [Jul-18-18 07:44PM  Investing.com]
▶ Earnings Outlook For BB&T   [03:55PM  Benzinga]
▶ EXCLUSIVE: Greater Cincinnati banker who left town is back on scene   [Jul-02-18 01:33PM  American City Business Journals]
▶ BB&T announces termination of AML-related consent order   [Jun-29-18 04:15PM  PR Newswire]
▶ Charlotte's largest banks plan dividend increases, billions in buybacks   [12:35PM  American City Business Journals]
▶ BB&T SCOTT & STRINGFELLOW EXPANDS FORT WORTH OFFICE   [Jun-22-18 07:30AM  PR Newswire]
▶ BB&T releases results of its annual stress test   [Jun-21-18 04:41PM  PR Newswire]
▶ How much does CEO Kelly King believe BB&T will change when he is gone?   [02:53PM  American City Business Journals]
▶ Bank Notes: Lancaster County hotbed for bank expansion   [Jun-18-18 07:46AM  American City Business Journals]
▶ BB&T gets naming rights to A&T stadium   [Jun-15-18 01:57PM  American City Business Journals]
▶ BB&T increases prime lending rate   [Jun-13-18 03:02PM  PR Newswire]
▶ N.C. bank acquires two suburban Charlotte office buildings for nearly $53M   [May-30-18 03:02PM  American City Business Journals]
▶ Gun-control advocates target Bank of America on Remington deal after Santa Fe shooting   [May-23-18 02:50PM  American City Business Journals]
▶ Top Florida bankers push for regulatory relief pays off   [07:03AM  American City Business Journals]
▶ Former BB&T branches going up for auction in Triad and across North Carolina   [May-17-18 01:16PM  American City Business Journals]
▶ Krispy Kreme tops powerhouse Starbucks, BB&T also gets nod   [May-14-18 08:03AM  American City Business Journals]
▶ 3 Top Bank Stocks to Buy in May   [May-12-18 07:00AM  Motley Fool]
▶ Benefits Edge: Are tax cuts driving wages up?   [May-11-18 06:00AM  American City Business Journals]
▶ Federal funds approved for tornado relief   [06:40AM  American City Business Journals]
▶ Why More Companies Might Issue 'Special Dividends' Soon   [May-05-18 12:00PM  TheStreet.com]
▶ How the Triad's largest banks rank in customer satisfaction   [May-03-18 02:34PM  American City Business Journals]
▶ Growth plans: Both big and small banks set to expand locally   [11:21AM  American City Business Journals]
▶ BB&T announces second-quarter dividends   [Apr-24-18 02:18PM  PR Newswire]
▶ BB&T CEO addresses the system outage that hit the bank in February   [11:31AM  American City Business Journals]
▶ JPMorgan's push into Greater Washington means headaches for banks of all sizes   [Apr-23-18 11:48AM  American City Business Journals]
▶ Bank Notes: Mixed bag for regional banks in 1Q earnings   [07:30AM  American City Business Journals]
▶ Triad banks contribute to tornado relief efforts   [Apr-20-18 02:31PM  American City Business Journals]
▶ Company News For Apr 20, 2018   [10:02AM  Zacks]
▶ BB&T Corporation to Host Earnings Call   [06:00AM  ACCESSWIRE]
▶ BB&T closes Allentown call center, eliminating 50 jobs   [Apr-12-18 12:21PM  American City Business Journals]
▶ High Point baseball stadium has a name   [06:36AM  American City Business Journals]
▶ Bank Notes: After buying stake in Navient, hedge fund wants board seat   [07:40AM  American City Business Journals]
▶ Regions sells insurance subsidiary to BB&T   [11:03AM  American City Business Journals]
▶ Mike Mayo Says Smaller Banks Could Be Dying a Slow Death   [Mar-28-18 05:35PM  Bloomberg Video]
▶ BB&T increases prime lending rate   [Mar-21-18 03:40PM  PR Newswire]
▶ Have Investors Priced In BB&T Corporations (NYSE:BBT) Growth?   [Mar-19-18 05:18PM  Simply Wall St.]
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