Intrinsic value of Commerce Bancshares - CBSH

Previous Close

$68.47

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$68.47

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of CBSH 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 7.3

 

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, %
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.00
Revenue, $m
  1,235
  1,298
  1,364
  1,433
  1,505
  1,582
  1,662
  1,745
  1,833
  1,926
  2,023
  2,125
  2,231
  2,344
  2,461
  2,585
  2,715
  2,851
  2,994
  3,144
  3,301
  3,467
  3,640
  3,823
  4,014
  4,215
  4,426
  4,648
  4,881
  5,125
Variable operating expenses, $m
  793
  833
  876
  920
  967
  1,015
  1,067
  1,121
  1,177
  1,236
  1,299
  1,364
  1,433
  1,505
  1,580
  1,659
  1,743
  1,830
  1,922
  2,018
  2,119
  2,226
  2,337
  2,454
  2,577
  2,706
  2,842
  2,984
  3,133
  3,290
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
  793
  833
  876
  920
  967
  1,015
  1,067
  1,121
  1,177
  1,236
  1,299
  1,364
  1,433
  1,505
  1,580
  1,659
  1,743
  1,830
  1,922
  2,018
  2,119
  2,226
  2,337
  2,454
  2,577
  2,706
  2,842
  2,984
  3,133
  3,290
Operating income, $m
  442
  465
  488
  513
  539
  566
  595
  625
  656
  689
  724
  761
  799
  839
  881
  925
  972
  1,021
  1,072
  1,125
  1,182
  1,241
  1,303
  1,369
  1,437
  1,509
  1,585
  1,664
  1,747
  1,835
EBITDA, $m
  3,094
  3,252
  3,417
  3,591
  3,772
  3,963
  4,164
  4,374
  4,594
  4,826
  5,069
  5,324
  5,592
  5,873
  6,167
  6,477
  6,802
  7,143
  7,502
  7,878
  8,273
  8,687
  9,122
  9,579
  10,059
  10,563
  11,091
  11,647
  12,230
  12,842
Interest expense (income), $m
  32
  1,268
  1,200
  1,252
  1,308
  1,366
  1,427
  1,490
  1,557
  1,628
  1,701
  1,779
  1,860
  1,945
  2,035
  2,129
  2,227
  2,331
  2,440
  2,554
  2,674
  2,799
  2,931
  3,070
  3,216
  3,368
  3,529
  3,697
  3,874
  4,060
  4,255
Earnings before tax, $m
  -826
  -735
  -764
  -795
  -827
  -860
  -896
  -932
  -971
  -1,012
  -1,055
  -1,099
  -1,146
  -1,196
  -1,248
  -1,302
  -1,359
  -1,419
  -1,482
  -1,548
  -1,617
  -1,690
  -1,767
  -1,847
  -1,931
  -2,020
  -2,113
  -2,210
  -2,312
  -2,420
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
  -826
  -735
  -764
  -795
  -827
  -860
  -896
  -932
  -971
  -1,012
  -1,055
  -1,099
  -1,146
  -1,196
  -1,248
  -1,302
  -1,359
  -1,419
  -1,482
  -1,548
  -1,617
  -1,690
  -1,767
  -1,847
  -1,931
  -2,020
  -2,113
  -2,210
  -2,312
  -2,420

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
  21,292
  22,376
  23,512
  24,705
  25,957
  27,270
  28,648
  30,094
  31,612
  33,204
  34,876
  36,631
  38,473
  40,406
  42,436
  44,566
  46,803
  49,151
  51,616
  54,204
  56,920
  59,773
  62,767
  65,911
  69,212
  72,677
  76,316
  80,136
  84,147
  88,359
Adjusted assets (=assets-cash), $m
  21,292
  22,376
  23,512
  24,705
  25,957
  27,270
  28,648
  30,094
  31,612
  33,204
  34,876
  36,631
  38,473
  40,406
  42,436
  44,566
  46,803
  49,151
  51,616
  54,204
  56,920
  59,773
  62,767
  65,911
  69,212
  72,677
  76,316
  80,136
  84,147
  88,359
Revenue / Adjusted assets
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
  0.058
Average production assets, $m
  26,524
  27,874
  29,290
  30,776
  32,335
  33,971
  35,687
  37,489
  39,379
  41,364
  43,446
  45,632
  47,927
  50,335
  52,863
  55,517
  58,304
  61,228
  64,299
  67,523
  70,907
  74,460
  78,191
  82,107
  86,219
  90,536
  95,069
  99,828
  104,824
  110,070
Working capital, $m
  -23,088
  -24,263
  -25,496
  -26,790
  -28,147
  -29,571
  -31,065
  -32,633
  -34,279
  -36,006
  -37,819
  -39,721
  -41,719
  -43,815
  -46,016
  -48,326
  -50,752
  -53,298
  -55,971
  -58,777
  -61,723
  -64,816
  -68,063
  -71,472
  -75,051
  -78,809
  -82,755
  -86,897
  -91,247
  -95,813
Total debt, $m
  22,219
  23,194
  24,217
  25,291
  26,417
  27,599
  28,839
  30,141
  31,507
  32,940
  34,445
  36,024
  37,682
  39,422
  41,248
  43,166
  45,179
  47,292
  49,510
  51,839
  54,285
  56,852
  59,547
  62,376
  65,347
  68,466
  71,741
  75,179
  78,789
  82,579
Total liabilities, $m
  19,163
  20,138
  21,161
  22,235
  23,361
  24,543
  25,783
  27,085
  28,450
  29,884
  31,389
  32,968
  34,626
  36,366
  38,192
  40,110
  42,123
  44,236
  46,454
  48,783
  51,228
  53,795
  56,490
  59,320
  62,291
  65,410
  68,684
  72,123
  75,733
  79,523
Total equity, $m
  2,129
  2,238
  2,351
  2,471
  2,596
  2,727
  2,865
  3,009
  3,161
  3,320
  3,488
  3,663
  3,847
  4,041
  4,244
  4,457
  4,680
  4,915
  5,162
  5,420
  5,692
  5,977
  6,277
  6,591
  6,921
  7,268
  7,632
  8,014
  8,415
  8,836
Total liabilities and equity, $m
  21,292
  22,376
  23,512
  24,706
  25,957
  27,270
  28,648
  30,094
  31,611
  33,204
  34,877
  36,631
  38,473
  40,407
  42,436
  44,567
  46,803
  49,151
  51,616
  54,203
  56,920
  59,772
  62,767
  65,911
  69,212
  72,678
  76,316
  80,137
  84,148
  88,359
Debt-to-equity ratio
  10.440
  10.370
  10.300
  10.240
  10.180
  10.120
  10.070
  10.020
  9.970
  9.920
  9.880
  9.830
  9.790
  9.760
  9.720
  9.690
  9.650
  9.620
  9.590
  9.560
  9.540
  9.510
  9.490
  9.460
  9.440
  9.420
  9.400
  9.380
  9.360
  9.350
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
  -826
  -735
  -764
  -795
  -827
  -860
  -896
  -932
  -971
  -1,012
  -1,055
  -1,099
  -1,146
  -1,196
  -1,248
  -1,302
  -1,359
  -1,419
  -1,482
  -1,548
  -1,617
  -1,690
  -1,767
  -1,847
  -1,931
  -2,020
  -2,113
  -2,210
  -2,312
  -2,420
Depreciation, amort., depletion, $m
  2,652
  2,787
  2,929
  3,078
  3,233
  3,397
  3,569
  3,749
  3,938
  4,136
  4,345
  4,563
  4,793
  5,034
  5,286
  5,552
  5,830
  6,123
  6,430
  6,752
  7,091
  7,446
  7,819
  8,211
  8,622
  9,054
  9,507
  9,983
  10,482
  11,007
Funds from operations, $m
  1,826
  2,052
  2,165
  2,283
  2,407
  2,537
  2,673
  2,816
  2,967
  3,124
  3,290
  3,464
  3,646
  3,838
  4,039
  4,250
  4,471
  4,704
  4,948
  5,204
  5,473
  5,756
  6,052
  6,364
  6,691
  7,034
  7,394
  7,773
  8,170
  8,587
Change in working capital, $m
  -1,120
  -1,175
  -1,233
  -1,293
  -1,357
  -1,424
  -1,494
  -1,568
  -1,646
  -1,727
  -1,813
  -1,903
  -1,997
  -2,097
  -2,201
  -2,310
  -2,425
  -2,546
  -2,673
  -2,806
  -2,946
  -3,093
  -3,247
  -3,409
  -3,579
  -3,758
  -3,946
  -4,143
  -4,349
  -4,567
Cash from operations, $m
  2,947
  3,227
  3,398
  3,576
  3,764
  3,961
  4,167
  4,385
  4,612
  4,852
  5,103
  5,367
  5,644
  5,934
  6,239
  6,560
  6,896
  7,250
  7,621
  8,010
  8,419
  8,849
  9,300
  9,773
  10,270
  10,792
  11,340
  11,915
  12,519
  13,154
Maintenance CAPEX, $m
  -2,524
  -2,652
  -2,787
  -2,929
  -3,078
  -3,233
  -3,397
  -3,569
  -3,749
  -3,938
  -4,136
  -4,345
  -4,563
  -4,793
  -5,034
  -5,286
  -5,552
  -5,830
  -6,123
  -6,430
  -6,752
  -7,091
  -7,446
  -7,819
  -8,211
  -8,622
  -9,054
  -9,507
  -9,983
  -10,482
New CAPEX, $m
  -1,286
  -1,350
  -1,416
  -1,486
  -1,559
  -1,636
  -1,717
  -1,801
  -1,891
  -1,984
  -2,083
  -2,186
  -2,294
  -2,409
  -2,528
  -2,654
  -2,786
  -2,925
  -3,071
  -3,224
  -3,384
  -3,553
  -3,730
  -3,916
  -4,112
  -4,317
  -4,533
  -4,759
  -4,997
  -5,246
Cash from investing activities, $m
  -3,810
  -4,002
  -4,203
  -4,415
  -4,637
  -4,869
  -5,114
  -5,370
  -5,640
  -5,922
  -6,219
  -6,531
  -6,857
  -7,202
  -7,562
  -7,940
  -8,338
  -8,755
  -9,194
  -9,654
  -10,136
  -10,644
  -11,176
  -11,735
  -12,323
  -12,939
  -13,587
  -14,266
  -14,980
  -15,728
Free cash flow, $m
  -863
  -775
  -806
  -839
  -873
  -909
  -946
  -986
  -1,027
  -1,070
  -1,116
  -1,164
  -1,214
  -1,267
  -1,322
  -1,380
  -1,441
  -1,505
  -1,573
  -1,643
  -1,717
  -1,795
  -1,877
  -1,963
  -2,053
  -2,147
  -2,246
  -2,351
  -2,460
  -2,575
Issuance/(repayment) of debt, $m
  -1,263
  975
  1,023
  1,073
  1,126
  1,182
  1,240
  1,301
  1,366
  1,434
  1,505
  1,579
  1,658
  1,740
  1,827
  1,917
  2,013
  2,113
  2,218
  2,329
  2,445
  2,567
  2,695
  2,830
  2,971
  3,119
  3,275
  3,438
  3,610
  3,790
Issuance/(repurchase) of shares, $m
  2,955
  844
  878
  914
  952
  992
  1,033
  1,077
  1,123
  1,171
  1,222
  1,275
  1,331
  1,389
  1,451
  1,515
  1,583
  1,654
  1,729
  1,807
  1,889
  1,975
  2,066
  2,161
  2,261
  2,366
  2,476
  2,592
  2,714
  2,841
Cash from financing (excl. dividends), $m  
  1,692
  1,819
  1,901
  1,987
  2,078
  2,174
  2,273
  2,378
  2,489
  2,605
  2,727
  2,854
  2,989
  3,129
  3,278
  3,432
  3,596
  3,767
  3,947
  4,136
  4,334
  4,542
  4,761
  4,991
  5,232
  5,485
  5,751
  6,030
  6,324
  6,631
Total cash flow (excl. dividends), $m
  829
  1,044
  1,095
  1,149
  1,205
  1,265
  1,327
  1,393
  1,462
  1,534
  1,610
  1,690
  1,774
  1,862
  1,955
  2,052
  2,154
  2,262
  2,374
  2,493
  2,617
  2,747
  2,884
  3,028
  3,179
  3,338
  3,505
  3,680
  3,863
  4,056
Retained Cash Flow (-), $m
  -2,955
  -844
  -878
  -914
  -952
  -992
  -1,033
  -1,077
  -1,123
  -1,171
  -1,222
  -1,275
  -1,331
  -1,389
  -1,451
  -1,515
  -1,583
  -1,654
  -1,729
  -1,807
  -1,889
  -1,975
  -2,066
  -2,161
  -2,261
  -2,366
  -2,476
  -2,592
  -2,714
  -2,841
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
  12
  12
  13
  14
  14
  15
  16
  17
  17
  18
  19
  20
  21
  22
  23
  25
  26
  27
  29
  30
  31
  33
  35
  36
  38
  40
  42
  44
  46
  49
Cash available for distribution, $m
  -2,126
  200
  217
  235
  254
  273
  294
  316
  339
  363
  389
  415
  444
  473
  504
  537
  572
  608
  646
  686
  728
  772
  818
  867
  918
  972
  1,028
  1,088
  1,150
  1,215
Discount rate, %
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
  32.85
  34.49
  36.21
  38.02
  39.93
  41.92
  44.02
  46.22
  48.53
  50.96
  53.50
  56.18
  58.99
  61.94
  65.03
PV of cash for distribution, $m
  -1,836
  147
  134
  120
  105
  91
  77
  63
  51
  41
  31
  24
  17
  12
  9
  6
  4
  2
  1
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  35.8
  25.7
  18.5
  13.4
  9.7
  7.0
  5.1
  3.7
  2.7
  2.0
  1.5
  1.1
  0.8
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Commerce Bancshares, Inc. is a bank holding company of Commerce Bank (the Bank). The Bank is engaged in general banking business, providing a range of retail, mortgage banking, corporate, investment, trust and asset management products and services to individuals and businesses. The Company operates through three segments: Consumer, Commercial and Wealth. The Consumer segment includes the consumer portion of the retail branch network (loans, deposits and other personal banking services), indirect and other consumer financing, and consumer debit and credit bank cards. The Commercial segment provides corporate lending, leasing, international services, and business, government deposit, and related commercial cash management services, as well as merchant and commercial bank card products. The Wealth segment provides traditional trust and estate tax planning, advisory and discretionary investment management, and brokerage services, and includes the Private Banking product portfolio.

FINANCIAL RATIOS  of  Commerce Bancshares (CBSH)

Valuation Ratios
P/E Ratio 26.6
Price to Sales 0
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 16.9
Price to Free Cash Flow 17.9
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -25%
Cap. Spend. - 3 Yr. Gr. Rate 0%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 73.2%
Total Debt to Equity 73.2%
Interest Coverage 14
Management Effectiveness
Return On Assets 1.2%
Ret/ On Assets - 3 Yr. Avg. 1.2%
Return On Total Capital 6.3%
Ret/ On T. Cap. - 3 Yr. Avg. 6.3%
Return On Equity 11.3%
Return On Equity - 3 Yr. Avg. 11.4%
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 30.9%
Eff/ Tax Rate - 3 Yr. Avg. 31%
Payout Ratio 34.9%

CBSH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CBSH stock intrinsic value calculation we used $1175 million for the last fiscal year's total revenue generated by Commerce Bancshares. The default revenue input number comes from 2017 income statement of Commerce Bancshares. 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 CBSH stock valuation model: a) initial revenue growth rate of 5.1% 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 15.8%, whose default value for CBSH is calculated based on our internal credit rating of Commerce Bancshares, 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 Commerce Bancshares.
    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 CBSH stock the variable cost ratio is equal to 64.2%.

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 CBSH 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 Commerce Bancshares.

Corporate tax rate of 27% is the nominal tax rate for Commerce Bancshares. 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 CBSH stock is equal to 1%.

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 CBSH are equal to 2147.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Commerce Bancshares 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 CBSH is equal to -1869.6%. 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 Commerce Bancshares - 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 107 million for Commerce Bancshares 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 Commerce Bancshares at the current share price and the inputted number of shares is $7.3 billion.

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COMPANY NEWS

▶ Commerce Bank adds medical refinance loans to compete with national lenders   [Jul-18-18 03:54PM  American City Business Journals]
▶ CA and Commerce Bancshares jump; L Brands tumbles   [Jul-12-18 04:50PM  Associated Press]
▶ Commerce: 2Q Earnings Snapshot   [06:11AM  Associated Press]
▶ Commerce Bancshares Q2 Earnings Outlook   [Jul-11-18 02:46PM  Benzinga]
▶ Former Commerce Bank building in downtown Wichita changes hands   [Jun-07-18 03:52PM  American City Business Journals]
▶ Barth: Commerce Bank's leadership transition was meticulously planned   [Jun-06-18 12:48PM  American City Business Journals]
▶ As another Kemper steps down, Commerce Bank shuffles its leadership   [Jun-04-18 05:46PM  American City Business Journals]
▶ Exclusive: Major Midwestern bank opens first Houston office   [May-21-18 03:19PM  American City Business Journals]
▶ Top Ranked Momentum Stocks to Buy for May 3rd   [May-03-18 10:35AM  Zacks]
▶ Commerce: 1Q Earnings Snapshot   [Apr-12-18 06:25AM  Associated Press]
▶ John Kemper to become CEO of Commerce Bancshares   [Apr-02-18 06:09PM  American City Business Journals]
▶ Commerce Bancshares names new CEO   [05:55PM  American City Business Journals]
▶ Commerce Bancshares Announces CEO Succession   [04:45PM  Business Wire]
▶ Commerce tops Street 4Q forecasts   [Jan-18-18 07:29AM  Associated Press]
▶ Commerce Bank doles out 'tax reform' bonuses   [Jan-03-18 06:00PM  American City Business Journals]
▶ Pinnacle hires away regional player's market president   [Nov-06-17 03:15PM  American City Business Journals]
▶ [$$] JPMorgan, Commerce Note Pressure on Loan Growth   [Oct-13-17 03:14PM  Barrons.com]
▶ Commerce misses Street 3Q forecasts   [Oct-12-17 07:10AM  Associated Press]
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