Intrinsic value of CoreLogic, Inc. - CLGX

Previous Close

$40.28

  Intrinsic Value

$41.41

stock screener

  Rating & Target

hold

+3%

Previous close

$40.28

 
Intrinsic value

$41.41

 
Up/down potential

+3%

 
Rating

hold

We calculate the intrinsic value of CLGX 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 0001), $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 3.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

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
  1,824
  1,866
  1,914
  1,967
  2,027
  2,093
  2,164
  2,241
  2,324
  2,413
  2,509
  2,611
  2,719
  2,834
  2,956
  3,086
  3,223
  3,368
  3,521
  3,683
  3,854
  4,034
  4,224
  4,424
  4,634
  4,856
  5,089
  5,335
  5,593
  5,865
Variable operating expenses, $m
  1,343
  1,367
  1,394
  1,424
  1,457
  1,494
  1,534
  1,578
  1,624
  1,674
  1,410
  1,467
  1,528
  1,593
  1,661
  1,734
  1,811
  1,893
  1,979
  2,070
  2,166
  2,267
  2,373
  2,486
  2,604
  2,729
  2,860
  2,998
  3,143
  3,296
Fixed operating expenses, $m
  251
  257
  263
  268
  274
  280
  286
  293
  299
  306
  313
  319
  326
  334
  341
  348
  356
  364
  372
  380
  389
  397
  406
  415
  424
  433
  443
  452
  462
  473
Total operating expenses, $m
  1,594
  1,624
  1,657
  1,692
  1,731
  1,774
  1,820
  1,871
  1,923
  1,980
  1,723
  1,786
  1,854
  1,927
  2,002
  2,082
  2,167
  2,257
  2,351
  2,450
  2,555
  2,664
  2,779
  2,901
  3,028
  3,162
  3,303
  3,450
  3,605
  3,769
Operating income, $m
  229
  242
  257
  275
  295
  318
  343
  371
  401
  433
  786
  824
  865
  908
  954
  1,003
  1,056
  1,112
  1,171
  1,233
  1,300
  1,370
  1,445
  1,523
  1,606
  1,694
  1,787
  1,885
  1,988
  2,097
EBITDA, $m
  662
  678
  696
  717
  741
  768
  797
  830
  865
  903
  944
  988
  1,036
  1,086
  1,140
  1,197
  1,258
  1,323
  1,392
  1,465
  1,542
  1,624
  1,710
  1,801
  1,898
  1,999
  2,107
  2,220
  2,339
  2,465
Interest expense (income), $m
  59
  96
  99
  103
  108
  113
  119
  125
  132
  139
  147
  156
  165
  175
  185
  196
  208
  220
  233
  247
  262
  277
  294
  311
  329
  348
  368
  390
  412
  435
  460
Earnings before tax, $m
  133
  143
  154
  167
  182
  199
  218
  239
  261
  286
  631
  659
  690
  723
  758
  796
  836
  878
  923
  972
  1,022
  1,076
  1,134
  1,194
  1,258
  1,326
  1,397
  1,473
  1,553
  1,637
Tax expense, $m
  36
  38
  42
  45
  49
  54
  59
  64
  71
  77
  170
  178
  186
  195
  205
  215
  226
  237
  249
  262
  276
  291
  306
  322
  340
  358
  377
  398
  419
  442
Net income, $m
  97
  104
  112
  122
  133
  145
  159
  174
  191
  209
  460
  481
  504
  528
  553
  581
  610
  641
  674
  709
  746
  786
  828
  872
  918
  968
  1,020
  1,075
  1,133
  1,195

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
  4,251
  4,349
  4,461
  4,586
  4,725
  4,878
  5,044
  5,224
  5,417
  5,625
  5,848
  6,085
  6,338
  6,606
  6,891
  7,193
  7,513
  7,851
  8,208
  8,586
  8,983
  9,403
  9,846
  10,312
  10,803
  11,319
  11,863
  12,436
  13,038
  13,672
Adjusted assets (=assets-cash), $m
  4,251
  4,349
  4,461
  4,586
  4,725
  4,878
  5,044
  5,224
  5,417
  5,625
  5,848
  6,085
  6,338
  6,606
  6,891
  7,193
  7,513
  7,851
  8,208
  8,586
  8,983
  9,403
  9,846
  10,312
  10,803
  11,319
  11,863
  12,436
  13,038
  13,672
Revenue / Adjusted assets
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
Average production assets, $m
  2,052
  2,099
  2,153
  2,213
  2,281
  2,354
  2,434
  2,521
  2,615
  2,715
  2,822
  2,937
  3,059
  3,188
  3,326
  3,472
  3,626
  3,789
  3,962
  4,144
  4,336
  4,538
  4,752
  4,977
  5,214
  5,463
  5,726
  6,002
  6,293
  6,598
Working capital, $m
  -246
  -252
  -258
  -266
  -274
  -282
  -292
  -303
  -314
  -326
  -339
  -352
  -367
  -383
  -399
  -417
  -435
  -455
  -475
  -497
  -520
  -545
  -570
  -597
  -626
  -656
  -687
  -720
  -755
  -792
Total debt, $m
  1,842
  1,916
  2,001
  2,096
  2,202
  2,318
  2,444
  2,581
  2,728
  2,886
  3,055
  3,235
  3,427
  3,632
  3,848
  4,078
  4,321
  4,578
  4,849
  5,136
  5,438
  5,757
  6,093
  6,448
  6,821
  7,213
  7,627
  8,062
  8,520
  9,001
Total liabilities, $m
  3,231
  3,305
  3,390
  3,486
  3,591
  3,707
  3,833
  3,970
  4,117
  4,275
  4,444
  4,625
  4,817
  5,021
  5,237
  5,467
  5,710
  5,967
  6,238
  6,525
  6,827
  7,146
  7,483
  7,837
  8,210
  8,603
  9,016
  9,451
  9,909
  10,390
Total equity, $m
  1,020
  1,044
  1,071
  1,101
  1,134
  1,171
  1,211
  1,254
  1,300
  1,350
  1,403
  1,460
  1,521
  1,586
  1,654
  1,726
  1,803
  1,884
  1,970
  2,061
  2,156
  2,257
  2,363
  2,475
  2,593
  2,717
  2,847
  2,985
  3,129
  3,281
Total liabilities and equity, $m
  4,251
  4,349
  4,461
  4,587
  4,725
  4,878
  5,044
  5,224
  5,417
  5,625
  5,847
  6,085
  6,338
  6,607
  6,891
  7,193
  7,513
  7,851
  8,208
  8,586
  8,983
  9,403
  9,846
  10,312
  10,803
  11,320
  11,863
  12,436
  13,038
  13,671
Debt-to-equity ratio
  1.800
  1.840
  1.870
  1.900
  1.940
  1.980
  2.020
  2.060
  2.100
  2.140
  2.180
  2.220
  2.250
  2.290
  2.330
  2.360
  2.400
  2.430
  2.460
  2.490
  2.520
  2.550
  2.580
  2.610
  2.630
  2.660
  2.680
  2.700
  2.720
  2.740
Adjusted equity ratio
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  97
  104
  112
  122
  133
  145
  159
  174
  191
  209
  460
  481
  504
  528
  553
  581
  610
  641
  674
  709
  746
  786
  828
  872
  918
  968
  1,020
  1,075
  1,133
  1,195
Depreciation, amort., depletion, $m
  433
  436
  439
  442
  446
  450
  454
  459
  464
  470
  158
  164
  171
  178
  186
  194
  203
  212
  221
  231
  242
  254
  265
  278
  291
  305
  320
  335
  352
  369
Funds from operations, $m
  530
  540
  551
  564
  579
  595
  613
  633
  655
  679
  618
  645
  675
  706
  739
  775
  813
  853
  895
  941
  989
  1,039
  1,093
  1,150
  1,210
  1,273
  1,340
  1,410
  1,485
  1,563
Change in working capital, $m
  -5
  -6
  -6
  -7
  -8
  -9
  -10
  -10
  -11
  -12
  -13
  -14
  -15
  -16
  -17
  -17
  -19
  -20
  -21
  -22
  -23
  -24
  -26
  -27
  -28
  -30
  -32
  -33
  -35
  -37
Cash from operations, $m
  535
  545
  557
  571
  587
  604
  623
  644
  666
  691
  631
  659
  689
  721
  756
  792
  831
  872
  916
  963
  1,012
  1,064
  1,119
  1,177
  1,238
  1,303
  1,371
  1,444
  1,520
  1,600
Maintenance CAPEX, $m
  -112
  -115
  -117
  -120
  -124
  -127
  -132
  -136
  -141
  -146
  -152
  -158
  -164
  -171
  -178
  -186
  -194
  -203
  -212
  -221
  -231
  -242
  -254
  -265
  -278
  -291
  -305
  -320
  -335
  -352
New CAPEX, $m
  -40
  -47
  -54
  -61
  -67
  -74
  -80
  -87
  -93
  -100
  -107
  -115
  -122
  -130
  -138
  -146
  -154
  -163
  -172
  -182
  -192
  -203
  -214
  -225
  -237
  -249
  -263
  -276
  -291
  -306
Cash from investing activities, $m
  -152
  -162
  -171
  -181
  -191
  -201
  -212
  -223
  -234
  -246
  -259
  -273
  -286
  -301
  -316
  -332
  -348
  -366
  -384
  -403
  -423
  -445
  -468
  -490
  -515
  -540
  -568
  -596
  -626
  -658
Free cash flow, $m
  383
  384
  386
  390
  396
  403
  411
  421
  432
  444
  372
  387
  403
  421
  440
  461
  483
  507
  532
  559
  588
  619
  652
  686
  723
  762
  804
  847
  894
  943
Issuance/(repayment) of debt, $m
  62
  74
  85
  95
  106
  116
  126
  137
  147
  158
  169
  180
  192
  204
  217
  230
  243
  257
  271
  287
  302
  319
  336
  354
  373
  393
  413
  435
  458
  481
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  62
  74
  85
  95
  106
  116
  126
  137
  147
  158
  169
  180
  192
  204
  217
  230
  243
  257
  271
  287
  302
  319
  336
  354
  373
  393
  413
  435
  458
  481
Total cash flow (excl. dividends), $m
  445
  458
  471
  486
  502
  519
  538
  558
  579
  602
  541
  567
  595
  625
  657
  690
  726
  764
  804
  846
  891
  938
  988
  1,041
  1,096
  1,155
  1,217
  1,283
  1,352
  1,424
Retained Cash Flow (-), $m
  -20
  -23
  -27
  -30
  -33
  -37
  -40
  -43
  -46
  -50
  -53
  -57
  -61
  -64
  -68
  -72
  -77
  -81
  -86
  -91
  -96
  -101
  -106
  -112
  -118
  -124
  -131
  -137
  -145
  -152
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
  426
  434
  444
  456
  468
  482
  498
  515
  533
  552
  488
  510
  535
  561
  588
  618
  649
  682
  718
  755
  795
  837
  882
  929
  978
  1,031
  1,087
  1,145
  1,207
  1,272
Discount rate, %
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
  392
  365
  339
  312
  285
  258
  232
  206
  182
  158
  115
  98
  83
  68
  56
  44
  35
  27
  20
  15
  11
  7
  5
  3
  2
  1
  1
  0
  0
  0
Current shareholders' claim on cash, %
  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
  100.0

CoreLogic, Inc. is a provider of property information, analytics and data-enabled services. The Company provides detailed coverage of property, mortgages and other encumbrances, property risk and replacement cost, consumer credit, tenancy, location, hazard risk and related performance information. Its segments include Property Intelligence (PI), Risk Management and Work Flow (RMW), and Corporate. The Property Intelligence segment owns or licenses real property, mortgage and consumer information, which includes loan information, property sales and characteristic information, property risk and replacement cost, natural hazard data, geospatial data, parcel maps and mortgage-backed securities information. The RMW segment owns or licenses real property information, mortgage information and consumer information, which includes loan information, property sales and characteristic information, natural hazard data, parcel maps, employment verification, criminal records and eviction records.

FINANCIAL RATIOS  of  CoreLogic, Inc. (CLGX)

Valuation Ratios
P/E Ratio 31.8
Price to Sales 1.7
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 8.2
Price to Free Cash Flow 10.2
Growth Rates
Sales Growth Rate 27.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 0%
Cap. Spend. - 3 Yr. Gr. Rate -5.4%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 149.3%
Total Debt to Equity 159.7%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.9%
Ret/ On Assets - 3 Yr. Avg. 4.1%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 4.4%
Return On Equity 10.4%
Return On Equity - 3 Yr. Avg. 10%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 46.5%
Gross Margin - 3 Yr. Avg. 47.7%
EBITDA Margin 20.3%
EBITDA Margin - 3 Yr. Avg. 22.6%
Operating Margin 11.5%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 8.4%
Pre-Tax Margin - 3 Yr. Avg. 9.1%
Net Profit Margin 5.5%
Net Profit Margin - 3 Yr. Avg. 6.4%
Effective Tax Rate 33.5%
Eff/ Tax Rate - 3 Yr. Avg. 31.5%
Payout Ratio 0%

CLGX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CLGX stock intrinsic value calculation we used $1788 million for the last fiscal year's total revenue generated by CoreLogic, Inc.. The default revenue input number comes from 0001 income statement of CoreLogic, Inc.. 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 CLGX 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 8.6%, whose default value for CLGX is calculated based on our internal credit rating of CoreLogic, Inc., 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 CoreLogic, Inc..
    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 CLGX stock the variable cost ratio is equal to 74%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $246 million in the base year in the intrinsic value calculation for CLGX 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 CoreLogic, Inc..

Corporate tax rate of 27% is the nominal tax rate for CoreLogic, Inc.. 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 CLGX 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 CLGX are equal to 112.5%.

Life of production assets of 17.9 years is the average useful life of capital assets used in CoreLogic, Inc. 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 CLGX is equal to -13.5%. 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 - $1000.498 million for CoreLogic, Inc. - 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 80.205 million for CoreLogic, Inc. 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 CoreLogic, Inc. at the current share price and the inputted number of shares is $3.2 billion.

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