Intrinsic value of Brighthouse Financial - BHF

Previous Close

$63.49

  Intrinsic Value

$241.95

stock screener

  Rating & Target

str. buy

+281%

Previous close

$63.49

 
Intrinsic value

$241.95

 
Up/down potential

+281%

 
Rating

str. buy

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

We calculate the intrinsic value of BHF stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

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

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -65.93
  11.40
  10.76
  10.18
  9.67
  9.20
  8.78
  8.40
  8.06
  7.75
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
Revenue, $m
  0
  3,387
  3,751
  4,133
  4,532
  4,949
  5,384
  5,836
  6,307
  6,796
  7,304
  7,832
  8,381
  8,952
  9,545
  10,162
  10,804
  11,472
  12,168
  12,894
  13,650
  14,438
  15,261
  16,121
  17,018
  17,956
  18,936
  19,961
  21,034
  22,156
  23,330
Variable operating expenses, $m
 
  2,773
  3,065
  3,370
  3,690
  4,023
  4,371
  4,733
  5,109
  5,500
  5,907
  6,265
  6,704
  7,161
  7,635
  8,129
  8,642
  9,177
  9,734
  10,314
  10,919
  11,549
  12,208
  12,895
  13,613
  14,363
  15,147
  15,967
  16,825
  17,723
  18,662
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
  7,612
  2,773
  3,065
  3,370
  3,690
  4,023
  4,371
  4,733
  5,109
  5,500
  5,907
  6,265
  6,704
  7,161
  7,635
  8,129
  8,642
  9,177
  9,734
  10,314
  10,919
  11,549
  12,208
  12,895
  13,613
  14,363
  15,147
  15,967
  16,825
  17,723
  18,662
Operating income, $m
  -4,572
  614
  686
  763
  843
  926
  1,013
  1,104
  1,198
  1,296
  1,397
  1,567
  1,677
  1,791
  1,910
  2,033
  2,162
  2,295
  2,435
  2,580
  2,731
  2,889
  3,054
  3,226
  3,405
  3,593
  3,789
  3,994
  4,209
  4,433
  4,668
EBITDA, $m
  -4,555
  701
  776
  855
  938
  1,024
  1,114
  1,207
  1,305
  1,406
  1,511
  1,620
  1,734
  1,852
  1,974
  2,102
  2,235
  2,373
  2,517
  2,667
  2,823
  2,987
  3,157
  3,335
  3,520
  3,714
  3,917
  4,129
  4,351
  4,583
  4,826
Interest expense (income), $m
  186
  185
  1,217
  3,490
  5,872
  8,363
  10,963
  13,672
  16,492
  19,426
  22,476
  25,645
  28,939
  32,362
  35,920
  39,619
  43,466
  47,469
  51,637
  55,977
  60,500
  65,215
  70,133
  75,265
  80,624
  86,220
  92,068
  98,181
  104,573
  111,260
  118,257
Earnings before tax, $m
  -4,705
  428
  -531
  -2,727
  -5,029
  -7,436
  -9,949
  -12,568
  -15,295
  -18,131
  -21,079
  -24,078
  -27,262
  -30,571
  -34,010
  -37,586
  -41,304
  -45,174
  -49,202
  -53,398
  -57,769
  -62,326
  -67,080
  -72,040
  -77,218
  -82,627
  -88,279
  -94,187
  -100,364
  -106,827
  -113,589
Tax expense, $m
  -1,766
  116
  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
  -2,939
  313
  -531
  -2,727
  -5,029
  -7,436
  -9,949
  -12,568
  -15,295
  -18,131
  -21,079
  -24,078
  -27,262
  -30,571
  -34,010
  -37,586
  -41,304
  -45,174
  -49,202
  -53,398
  -57,769
  -62,326
  -67,080
  -72,040
  -77,218
  -82,627
  -88,279
  -94,187
  -100,364
  -106,827
  -113,589

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
  221,930
  241,897
  267,925
  295,211
  323,745
  353,526
  384,563
  416,871
  450,475
  485,409
  521,715
  559,443
  598,651
  639,405
  681,777
  725,848
  771,705
  819,442
  869,160
  920,967
  974,978
  1,031,313
  1,090,101
  1,151,476
  1,215,581
  1,282,566
  1,352,587
  1,425,810
  1,502,406
  1,582,559
  1,666,458
Adjusted assets (=assets-cash), $m
  221,930
  241,897
  267,925
  295,211
  323,745
  353,526
  384,563
  416,871
  450,475
  485,409
  521,715
  559,443
  598,651
  639,405
  681,777
  725,848
  771,705
  819,442
  869,160
  920,967
  974,978
  1,031,313
  1,090,101
  1,151,476
  1,215,581
  1,282,566
  1,352,587
  1,425,810
  1,502,406
  1,582,559
  1,666,458
Revenue / Adjusted assets
  0.000
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
  0.014
Average production assets, $m
  617
  687
  761
  839
  920
  1,005
  1,093
  1,185
  1,280
  1,380
  1,483
  1,590
  1,701
  1,817
  1,938
  2,063
  2,193
  2,329
  2,470
  2,617
  2,771
  2,931
  3,098
  3,272
  3,455
  3,645
  3,844
  4,052
  4,270
  4,498
  4,736
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
  1,910
  12,549
  35,975
  60,532
  86,212
  113,015
  140,948
  170,026
  200,269
  231,710
  264,386
  298,341
  333,628
  370,306
  408,441
  448,105
  489,376
  532,340
  577,086
  623,713
  672,322
  723,024
  775,933
  831,171
  888,865
  949,152
  1,012,171
  1,078,071
  1,147,008
  1,219,145
  1,294,654
Total liabilities, $m
  207,068
  217,707
  241,133
  265,690
  291,370
  318,173
  346,106
  375,184
  405,427
  436,868
  469,544
  503,499
  538,786
  575,464
  613,599
  653,263
  694,534
  737,498
  782,244
  828,871
  877,480
  928,182
  981,091
  1,036,329
  1,094,023
  1,154,310
  1,217,329
  1,283,229
  1,352,166
  1,424,303
  1,499,812
Total equity, $m
  14,862
  24,190
  26,793
  29,521
  32,374
  35,353
  38,456
  41,687
  45,047
  48,541
  52,172
  55,944
  59,865
  63,940
  68,178
  72,585
  77,170
  81,944
  86,916
  92,097
  97,498
  103,131
  109,010
  115,148
  121,558
  128,257
  135,259
  142,581
  150,241
  158,256
  166,646
Total liabilities and equity, $m
  221,930
  241,897
  267,926
  295,211
  323,744
  353,526
  384,562
  416,871
  450,474
  485,409
  521,716
  559,443
  598,651
  639,404
  681,777
  725,848
  771,704
  819,442
  869,160
  920,968
  974,978
  1,031,313
  1,090,101
  1,151,477
  1,215,581
  1,282,567
  1,352,588
  1,425,810
  1,502,407
  1,582,559
  1,666,458
Debt-to-equity ratio
  0.129
  0.520
  1.340
  2.050
  2.660
  3.200
  3.670
  4.080
  4.450
  4.770
  5.070
  5.330
  5.570
  5.790
  5.990
  6.170
  6.340
  6.500
  6.640
  6.770
  6.900
  7.010
  7.120
  7.220
  7.310
  7.400
  7.480
  7.560
  7.630
  7.700
  7.770
Adjusted equity ratio
  0.067
  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
  -2,939
  313
  -531
  -2,727
  -5,029
  -7,436
  -9,949
  -12,568
  -15,295
  -18,131
  -21,079
  -24,078
  -27,262
  -30,571
  -34,010
  -37,586
  -41,304
  -45,174
  -49,202
  -53,398
  -57,769
  -62,326
  -67,080
  -72,040
  -77,218
  -82,627
  -88,279
  -94,187
  -100,364
  -106,827
  -113,589
Depreciation, amort., depletion, $m
  17
  87
  89
  92
  95
  98
  101
  104
  107
  110
  114
  53
  57
  61
  65
  69
  73
  78
  82
  87
  92
  98
  103
  109
  115
  122
  128
  135
  142
  150
  158
Funds from operations, $m
  15,176
  400
  -441
  -2,635
  -4,934
  -7,339
  -9,849
  -12,465
  -15,188
  -18,020
  -20,965
  -24,025
  -27,205
  -30,510
  -33,945
  -37,517
  -41,231
  -45,096
  -49,120
  -53,310
  -57,677
  -62,229
  -66,976
  -71,931
  -77,103
  -82,506
  -88,151
  -94,051
  -100,222
  -106,677
  -113,431
Change in working capital, $m
  11,440
  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
  3,736
  400
  -441
  -2,635
  -4,934
  -7,339
  -9,849
  -12,465
  -15,188
  -18,020
  -20,965
  -24,025
  -27,205
  -30,510
  -33,945
  -37,517
  -41,231
  -45,096
  -49,120
  -53,310
  -57,677
  -62,229
  -66,976
  -71,931
  -77,103
  -82,506
  -88,151
  -94,051
  -100,222
  -106,677
  -113,431
Maintenance CAPEX, $m
  0
  -21
  -23
  -25
  -28
  -31
  -33
  -36
  -39
  -43
  -46
  -49
  -53
  -57
  -61
  -65
  -69
  -73
  -78
  -82
  -87
  -92
  -98
  -103
  -109
  -115
  -122
  -128
  -135
  -142
  -150
New CAPEX, $m
  0
  -71
  -74
  -78
  -81
  -85
  -88
  -92
  -96
  -99
  -103
  -107
  -111
  -116
  -120
  -125
  -130
  -136
  -141
  -147
  -153
  -160
  -167
  -174
  -182
  -190
  -199
  -208
  -218
  -228
  -238
Cash from investing activities, $m
  4,674
  -92
  -97
  -103
  -109
  -116
  -121
  -128
  -135
  -142
  -149
  -156
  -164
  -173
  -181
  -190
  -199
  -209
  -219
  -229
  -240
  -252
  -265
  -277
  -291
  -305
  -321
  -336
  -353
  -370
  -388
Free cash flow, $m
  8,410
  308
  -538
  -2,738
  -5,043
  -7,454
  -9,971
  -12,593
  -15,323
  -18,162
  -21,114
  -24,182
  -27,370
  -30,683
  -34,126
  -37,707
  -41,430
  -45,305
  -49,339
  -53,540
  -57,917
  -62,481
  -67,241
  -72,209
  -77,395
  -82,811
  -88,471
  -94,388
  -100,575
  -107,047
  -113,819
Issuance/(repayment) of debt, $m
  -3,273
  10,639
  23,425
  24,557
  25,681
  26,803
  27,933
  29,077
  30,244
  31,441
  32,676
  33,955
  35,287
  36,678
  38,135
  39,664
  41,271
  42,963
  44,746
  46,626
  48,609
  50,702
  52,909
  55,238
  57,695
  60,286
  63,019
  65,900
  68,937
  72,137
  75,509
Issuance/(repurchase) of shares, $m
  1,199
  9,015
  3,134
  5,455
  7,882
  10,415
  13,053
  15,799
  18,655
  21,624
  24,709
  27,851
  31,183
  34,646
  38,247
  41,993
  45,890
  49,948
  54,174
  58,578
  63,170
  67,960
  72,958
  78,177
  83,629
  89,326
  95,281
  101,509
  108,024
  114,842
  121,979
Cash from financing (excl. dividends), $m  
  -4,752
  19,654
  26,559
  30,012
  33,563
  37,218
  40,986
  44,876
  48,899
  53,065
  57,385
  61,806
  66,470
  71,324
  76,382
  81,657
  87,161
  92,911
  98,920
  105,204
  111,779
  118,662
  125,867
  133,415
  141,324
  149,612
  158,300
  167,409
  176,961
  186,979
  197,488
Total cash flow (excl. dividends), $m
  3,658
  19,963
  26,021
  27,275
  28,520
  29,764
  31,015
  32,283
  33,576
  34,902
  36,270
  37,624
  39,100
  40,642
  42,256
  43,950
  45,731
  47,606
  49,582
  51,665
  53,862
  56,180
  58,626
  61,207
  63,929
  66,801
  69,829
  73,021
  76,386
  79,932
  83,668
Retained Cash Flow (-), $m
  1,977
  -9,328
  -3,134
  -5,455
  -7,882
  -10,415
  -13,053
  -15,799
  -18,655
  -21,624
  -24,709
  -27,851
  -31,183
  -34,646
  -38,247
  -41,993
  -45,890
  -49,948
  -54,174
  -58,578
  -63,170
  -67,960
  -72,958
  -78,177
  -83,629
  -89,326
  -95,281
  -101,509
  -108,024
  -114,842
  -121,979
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
 
  10,635
  22,887
  21,819
  20,637
  19,349
  17,962
  16,484
  14,921
  13,278
  11,561
  9,773
  7,917
  5,995
  4,009
  1,957
  -159
  -2,342
  -4,592
  -6,913
  -9,308
  -11,780
  -14,332
  -16,971
  -19,700
  -22,525
  -25,452
  -28,488
  -31,638
  -34,910
  -38,311
Discount rate, %
 
  6.60
  6.93
  7.28
  7.64
  8.02
  8.42
  8.84
  9.29
  9.75
  10.24
  10.75
  11.29
  11.85
  12.45
  13.07
  13.72
  14.41
  15.13
  15.88
  16.68
  17.51
  18.39
  19.31
  20.27
  21.29
  22.35
  23.47
  24.64
  25.87
  27.17
PV of cash for distribution, $m
 
  9,976
  20,017
  17,674
  15,373
  13,155
  11,057
  9,108
  7,333
  5,747
  4,362
  3,179
  2,194
  1,398
  776
  310
  -20
  -238
  -364
  -420
  -426
  -398
  -350
  -293
  -235
  -181
  -134
  -96
  -66
  -44
  -28
Current shareholders' claim on cash, %
  100
  53.6
  45.2
  35.0
  25.4
  17.4
  11.4
  7.2
  4.4
  2.6
  1.5
  0.9
  0.5
  0.3
  0.1
  0.1
  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

Brighthouse Financial, Inc. is a provider of life insurance and annuity products in the United States. The Company offers a range of products and services, which include variable, fixed, index-linked and income annuities, as well as variable, universal, term and whole life products. These products and services are marketed through various third party retail distribution channels in the United States. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. The Company operating segments include Annuities, Life and Run-off.


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FINANCIAL RATIOS  of  Brighthouse Financial (BHF)

Valuation Ratios
P/E Ratio -2.6
Price to Sales 2.5
Price to Book 0.5
Price to Tangible Book
Price to Cash Flow 2
Price to Free Cash Flow 2
Growth Rates
Sales Growth Rate -65.9%
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 12.9%
Total Debt to Equity 12.9%
Interest Coverage -24
Management Effectiveness
Return On Assets -1.3%
Ret/ On Assets - 3 Yr. Avg. -0%
Return On Total Capital -16.5%
Ret/ On T. Cap. - 3 Yr. Avg. -1.5%
Return On Equity -18.5%
Return On Equity - 3 Yr. Avg. -1.8%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin -148.1%
EBITDA Margin - 3 Yr. Avg. -36.7%
Operating Margin -150.4%
Oper. Margin - 3 Yr. Avg. -38.3%
Pre-Tax Margin -154.8%
Pre-Tax Margin - 3 Yr. Avg. -40.7%
Net Profit Margin -96.7%
Net Profit Margin - 3 Yr. Avg. -24%
Effective Tax Rate 37.5%
Eff/ Tax Rate - 3 Yr. Avg. 28.4%
Payout Ratio 0%

BHF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BHF stock intrinsic value calculation we used $3040 million for the last fiscal year's total revenue generated by Brighthouse Financial. The default revenue input number comes from 2016 income statement of Brighthouse Financial. 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 BHF stock valuation model: a) initial revenue growth rate of 11.4% 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 6.6%, whose default value for BHF is calculated based on our internal credit rating of Brighthouse Financial, 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 Brighthouse Financial.
    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 BHF stock the variable cost ratio is equal to 82.1%.

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 BHF 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 9.7% for Brighthouse Financial.

Corporate tax rate of 27% is the nominal tax rate for Brighthouse Financial. 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 BHF 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 BHF are equal to 20.3%.

Life of production assets of 76 years is the average useful life of capital assets used in Brighthouse Financial 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 BHF 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 - $14862 million for Brighthouse Financial - 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 120.907 million for Brighthouse Financial 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 Brighthouse Financial at the current share price and the inputted number of shares is $7.7 billion.

Financial statements of BHF
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