Intrinsic value of Colony NorthStar - CLNS

Previous Close

$10.23

  Intrinsic Value

$51.25

stock screener

  Rating & Target

str. buy

+401%

Previous close

$10.23

 
Intrinsic value

$51.25

 
Up/down potential

+401%

 
Rating

str. buy

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

We calculate the intrinsic value of CLNS 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, %
  -12.39
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  382
  611
  944
  1,412
  2,049
  2,891
  3,974
  5,335
  7,005
  9,013
  11,385
  14,137
  17,284
  20,833
  24,787
  29,146
  33,903
  39,054
  44,589
  50,499
  56,776
  63,411
  70,398
  77,731
  85,406
  93,423
  101,783
  110,490
  119,548
  128,966
  138,756
Variable operating expenses, $m
 
  371
  535
  767
  1,082
  1,499
  2,035
  2,709
  3,535
  4,530
  5,703
  6,998
  8,555
  10,312
  12,270
  14,427
  16,782
  19,331
  22,071
  24,997
  28,103
  31,388
  34,846
  38,476
  42,275
  46,244
  50,382
  54,691
  59,175
  63,837
  68,683
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
  324
  371
  535
  767
  1,082
  1,499
  2,035
  2,709
  3,535
  4,530
  5,703
  6,998
  8,555
  10,312
  12,270
  14,427
  16,782
  19,331
  22,071
  24,997
  28,103
  31,388
  34,846
  38,476
  42,275
  46,244
  50,382
  54,691
  59,175
  63,837
  68,683
Operating income, $m
  58
  241
  409
  645
  967
  1,392
  1,939
  2,626
  3,469
  4,484
  5,681
  7,139
  8,729
  10,521
  12,518
  14,719
  17,122
  19,723
  22,518
  25,503
  28,672
  32,023
  35,552
  39,255
  43,131
  47,180
  51,402
  55,798
  60,373
  65,129
  70,073
EBITDA, $m
  68
  403
  622
  930
  1,350
  1,904
  2,618
  3,514
  4,614
  5,937
  7,499
  9,312
  11,385
  13,723
  16,328
  19,199
  22,333
  25,725
  29,371
  33,264
  37,399
  41,770
  46,372
  51,202
  56,258
  61,539
  67,046
  72,781
  78,747
  84,951
  91,400
Interest expense (income), $m
  18
  130
  274
  485
  782
  1,187
  1,722
  2,410
  3,274
  4,334
  5,610
  7,116
  8,864
  10,863
  13,117
  15,629
  18,397
  21,418
  24,689
  28,205
  31,959
  35,945
  40,159
  44,597
  49,254
  54,129
  59,221
  64,530
  70,060
  75,813
  81,795
Earnings before tax, $m
  58
  111
  135
  160
  184
  205
  217
  216
  196
  149
  71
  23
  -136
  -342
  -599
  -910
  -1,275
  -1,696
  -2,172
  -2,702
  -3,286
  -3,922
  -4,608
  -5,342
  -6,123
  -6,949
  -7,819
  -8,732
  -9,687
  -10,684
  -11,722
Tax expense, $m
  11
  30
  36
  43
  50
  55
  59
  58
  53
  40
  19
  6
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  42
  81
  99
  117
  135
  150
  159
  158
  143
  109
  52
  17
  -136
  -342
  -599
  -910
  -1,275
  -1,696
  -2,172
  -2,702
  -3,286
  -3,922
  -4,608
  -5,342
  -6,123
  -6,949
  -7,819
  -8,732
  -9,687
  -10,684
  -11,722

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  376
  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
  9,761
  14,907
  23,032
  34,444
  49,977
  70,510
  96,935
  130,115
  170,849
  219,841
  277,677
  344,812
  421,565
  508,128
  604,572
  710,869
  826,912
  952,533
  1,087,530
  1,231,685
  1,384,779
  1,546,614
  1,717,021
  1,895,870
  2,083,080
  2,278,622
  2,482,523
  2,694,868
  2,915,799
  3,145,518
  3,384,281
Adjusted assets (=assets-cash), $m
  9,385
  14,907
  23,032
  34,444
  49,977
  70,510
  96,935
  130,115
  170,849
  219,841
  277,677
  344,812
  421,565
  508,128
  604,572
  710,869
  826,912
  952,533
  1,087,530
  1,231,685
  1,384,779
  1,546,614
  1,717,021
  1,895,870
  2,083,080
  2,278,622
  2,482,523
  2,694,868
  2,915,799
  3,145,518
  3,384,281
Revenue / Adjusted assets
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
  0.041
Average production assets, $m
  1,762
  2,818
  4,354
  6,512
  9,448
  13,330
  18,326
  24,598
  32,299
  41,561
  52,495
  65,187
  79,697
  96,062
  114,295
  134,391
  156,328
  180,077
  205,599
  232,851
  261,794
  292,389
  324,605
  358,416
  393,808
  430,776
  469,323
  509,467
  551,235
  594,663
  639,802
Working capital, $m
  0
  -601
  -929
  -1,390
  -2,016
  -2,845
  -3,911
  -5,249
  -6,893
  -8,869
  -11,203
  -13,911
  -17,008
  -20,500
  -24,391
  -28,679
  -33,361
  -38,429
  -43,875
  -49,691
  -55,868
  -62,397
  -69,271
  -76,487
  -84,040
  -91,929
  -100,155
  -108,722
  -117,635
  -126,903
  -136,535
Total debt, $m
  3,716
  7,820
  13,865
  22,355
  33,912
  49,188
  68,848
  93,534
  123,841
  160,291
  203,321
  253,269
  310,374
  374,776
  446,531
  525,616
  611,951
  705,414
  805,851
  913,102
  1,027,005
  1,147,410
  1,274,193
  1,407,256
  1,546,540
  1,692,024
  1,843,726
  2,001,711
  2,166,084
  2,336,994
  2,514,634
Total liabilities, $m
  6,987
  11,091
  17,136
  25,626
  37,183
  52,459
  72,119
  96,805
  127,112
  163,562
  206,592
  256,540
  313,645
  378,047
  449,802
  528,887
  615,222
  708,685
  809,122
  916,373
  1,030,276
  1,150,681
  1,277,464
  1,410,527
  1,549,811
  1,695,295
  1,846,997
  2,004,982
  2,169,355
  2,340,265
  2,517,905
Total equity, $m
  2,774
  3,816
  5,896
  8,818
  12,794
  18,050
  24,815
  33,309
  43,737
  56,279
  71,085
  88,272
  107,921
  130,081
  154,770
  181,983
  211,689
  243,848
  278,408
  315,311
  354,503
  395,933
  439,557
  485,343
  533,268
  583,327
  635,526
  689,886
  746,445
  805,253
  866,376
Total liabilities and equity, $m
  9,761
  14,907
  23,032
  34,444
  49,977
  70,509
  96,934
  130,114
  170,849
  219,841
  277,677
  344,812
  421,566
  508,128
  604,572
  710,870
  826,911
  952,533
  1,087,530
  1,231,684
  1,384,779
  1,546,614
  1,717,021
  1,895,870
  2,083,079
  2,278,622
  2,482,523
  2,694,868
  2,915,800
  3,145,518
  3,384,281
Debt-to-equity ratio
  1.340
  2.050
  2.350
  2.540
  2.650
  2.730
  2.770
  2.810
  2.830
  2.850
  2.860
  2.870
  2.880
  2.880
  2.890
  2.890
  2.890
  2.890
  2.890
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
  2.900
Adjusted equity ratio
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256
  0.256

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  42
  81
  99
  117
  135
  150
  159
  158
  143
  109
  52
  17
  -136
  -342
  -599
  -910
  -1,275
  -1,696
  -2,172
  -2,702
  -3,286
  -3,922
  -4,608
  -5,342
  -6,123
  -6,949
  -7,819
  -8,732
  -9,687
  -10,684
  -11,722
Depreciation, amort., depletion, $m
  10
  162
  213
  285
  383
  512
  679
  888
  1,145
  1,453
  1,818
  2,173
  2,657
  3,202
  3,810
  4,480
  5,211
  6,003
  6,853
  7,762
  8,726
  9,746
  10,820
  11,947
  13,127
  14,359
  15,644
  16,982
  18,374
  19,822
  21,327
Funds from operations, $m
  177
  243
  312
  402
  518
  662
  838
  1,046
  1,288
  1,562
  1,870
  2,190
  2,521
  2,860
  3,211
  3,570
  3,936
  4,307
  4,682
  5,059
  5,440
  5,824
  6,212
  6,605
  7,004
  7,410
  7,825
  8,250
  8,687
  9,138
  9,605
Change in working capital, $m
  8
  -226
  -328
  -460
  -627
  -828
  -1,066
  -1,339
  -1,643
  -1,977
  -2,333
  -2,708
  -3,097
  -3,492
  -3,891
  -4,288
  -4,682
  -5,068
  -5,446
  -5,816
  -6,176
  -6,529
  -6,875
  -7,215
  -7,553
  -7,889
  -8,226
  -8,567
  -8,913
  -9,268
  -9,633
Cash from operations, $m
  169
  468
  640
  862
  1,144
  1,490
  1,904
  2,385
  2,931
  3,539
  4,203
  4,898
  5,617
  6,352
  7,102
  7,858
  8,618
  9,375
  10,128
  10,875
  11,617
  12,354
  13,087
  13,821
  14,557
  15,299
  16,051
  16,817
  17,601
  18,406
  19,238
Maintenance CAPEX, $m
  0
  -59
  -94
  -145
  -217
  -315
  -444
  -611
  -820
  -1,077
  -1,385
  -1,750
  -2,173
  -2,657
  -3,202
  -3,810
  -4,480
  -5,211
  -6,003
  -6,853
  -7,762
  -8,726
  -9,746
  -10,820
  -11,947
  -13,127
  -14,359
  -15,644
  -16,982
  -18,374
  -19,822
New CAPEX, $m
  0
  -1,057
  -1,536
  -2,157
  -2,936
  -3,882
  -4,996
  -6,273
  -7,701
  -9,262
  -10,934
  -12,692
  -14,510
  -16,365
  -18,233
  -20,096
  -21,938
  -23,749
  -25,521
  -27,253
  -28,943
  -30,595
  -32,216
  -33,812
  -35,392
  -36,967
  -38,548
  -40,144
  -41,767
  -43,429
  -45,138
Cash from investing activities, $m
  -383
  -1,116
  -1,630
  -2,302
  -3,153
  -4,197
  -5,440
  -6,884
  -8,521
  -10,339
  -12,319
  -14,442
  -16,683
  -19,022
  -21,435
  -23,906
  -26,418
  -28,960
  -31,524
  -34,106
  -36,705
  -39,321
  -41,962
  -44,632
  -47,339
  -50,094
  -52,907
  -55,788
  -58,749
  -61,803
  -64,960
Free cash flow, $m
  -214
  -647
  -990
  -1,440
  -2,009
  -2,706
  -3,536
  -4,499
  -5,590
  -6,800
  -8,116
  -9,543
  -11,066
  -12,669
  -14,333
  -16,047
  -17,800
  -19,585
  -21,396
  -23,231
  -25,088
  -26,968
  -28,875
  -30,811
  -32,783
  -34,795
  -36,856
  -38,971
  -41,149
  -43,397
  -45,723
Issuance/(repayment) of debt, $m
  396
  4,104
  6,045
  8,491
  11,556
  15,277
  19,660
  24,686
  30,306
  36,450
  43,030
  49,948
  57,105
  64,403
  71,754
  79,085
  86,336
  93,462
  100,438
  107,251
  113,902
  120,405
  126,783
  133,064
  139,284
  145,483
  151,702
  157,985
  164,373
  170,911
  177,640
Issuance/(repurchase) of shares, $m
  0
  1,338
  1,981
  2,805
  3,842
  5,107
  6,606
  8,336
  10,285
  12,433
  14,754
  17,170
  19,785
  22,502
  25,289
  28,122
  30,982
  33,855
  36,731
  39,606
  42,478
  45,352
  48,232
  51,127
  54,049
  57,008
  60,018
  63,092
  66,245
  69,492
  72,845
Cash from financing (excl. dividends), $m  
  338
  5,442
  8,026
  11,296
  15,398
  20,384
  26,266
  33,022
  40,591
  48,883
  57,784
  67,118
  76,890
  86,905
  97,043
  107,207
  117,318
  127,317
  137,169
  146,857
  156,380
  165,757
  175,015
  184,191
  193,333
  202,491
  211,720
  221,077
  230,618
  240,403
  250,485
Total cash flow (excl. dividends), $m
  123
  4,794
  7,036
  9,855
  13,389
  17,677
  22,730
  28,523
  35,001
  42,083
  49,668
  57,574
  65,824
  74,236
  82,710
  91,160
  99,517
  107,732
  115,773
  123,626
  131,293
  138,789
  146,140
  153,380
  160,550
  167,696
  174,864
  182,106
  189,470
  197,006
  204,762
Retained Cash Flow (-), $m
  -2,599
  -1,418
  -2,080
  -2,922
  -3,976
  -5,256
  -6,765
  -8,494
  -10,428
  -12,542
  -14,806
  -17,187
  -19,785
  -22,502
  -25,289
  -28,122
  -30,982
  -33,855
  -36,731
  -39,606
  -42,478
  -45,352
  -48,232
  -51,127
  -54,049
  -57,008
  -60,018
  -63,092
  -66,245
  -69,492
  -72,845
Prev. year cash balance distribution, $m
 
  376
  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
 
  3,752
  4,956
  6,934
  9,412
  12,421
  15,965
  20,029
  24,573
  29,541
  34,862
  40,388
  46,039
  51,734
  57,421
  63,038
  68,536
  73,877
  79,042
  84,020
  88,815
  93,437
  97,908
  102,253
  106,502
  110,688
  114,847
  119,014
  123,224
  127,514
  131,917
Discount rate, %
 
  9.50
  9.98
  10.47
  11.00
  11.55
  12.12
  12.73
  13.37
  14.04
  14.74
  15.47
  16.25
  17.06
  17.91
  18.81
  19.75
  20.74
  21.77
  22.86
  24.01
  25.21
  26.47
  27.79
  29.18
  30.64
  32.17
  33.78
  35.47
  37.24
  39.10
PV of cash for distribution, $m
 
  3,427
  4,097
  5,143
  6,201
  7,192
  8,035
  8,657
  9,007
  9,059
  8,816
  8,297
  7,559
  6,675
  5,717
  4,752
  3,833
  3,001
  2,280
  1,680
  1,201
  832
  559
  363
  228
  139
  81
  46
  25
  13
  7
Current shareholders' claim on cash, %
  100
  78.5
  62.6
  50.7
  41.8
  34.9
  29.6
  25.4
  22.1
  19.4
  17.2
  15.3
  13.8
  12.5
  11.4
  10.5
  9.7
  9.0
  8.4
  7.8
  7.3
  6.9
  6.5
  6.2
  5.8
  5.5
  5.3
  5.0
  4.8
  4.6
  4.4

Colony NorthStar, Inc. is a diversified equity real estate investment trust (REIT). The Company combines a portfolio of real assets across the world, which are managed with a global real estate investment manager. The Company has property holdings in the healthcare, industrial and hospitality sectors, opportunistic equity and debt investments, and an embedded institutional and retail investment management business. In addition, the Company owns NorthStar Securities, LLC, a captive broker-dealer platform which raises capital in the retail market. The Company acquires, develops and operates industrial properties in metropolitan markets throughout the United States with a focus on light industrial buildings. The Company provides investment management services and offers investment products while serving as a fiduciary to a set of institutional and individual investors.

FINANCIAL RATIOS  of  Colony NorthStar (CLNS)

Valuation Ratios
P/E Ratio 40.7
Price to Sales 4.5
Price to Book 0.6
Price to Tangible Book
Price to Cash Flow 10.1
Price to Free Cash Flow 10.1
Growth Rates
Sales Growth Rate -12.4%
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 134%
Total Debt to Equity 134%
Interest Coverage 4
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. 17.2%
Return On Total Capital 1.2%
Ret/ On T. Cap. - 3 Yr. Avg. 22.7%
Return On Equity 2.8%
Return On Equity - 3 Yr. Avg. 27.7%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 94.5%
Gross Margin - 3 Yr. Avg. 75.8%
EBITDA Margin 22.5%
EBITDA Margin - 3 Yr. Avg. 21.4%
Operating Margin 15.2%
Oper. Margin - 3 Yr. Avg. 18.7%
Pre-Tax Margin 15.2%
Pre-Tax Margin - 3 Yr. Avg. 18.7%
Net Profit Margin 11%
Net Profit Margin - 3 Yr. Avg. 15.3%
Effective Tax Rate 19%
Eff/ Tax Rate - 3 Yr. Avg. 14.6%
Payout Ratio 181%

CLNS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CLNS stock intrinsic value calculation we used $382 million for the last fiscal year's total revenue generated by Colony NorthStar. The default revenue input number comes from 2016 income statement of Colony NorthStar. 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 CLNS stock valuation model: a) initial revenue growth rate of 60% 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 9.5%, whose default value for CLNS is calculated based on our internal credit rating of Colony NorthStar, 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 Colony NorthStar.
    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 CLNS stock the variable cost ratio is equal to 67.3%.

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 CLNS 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 3.5% for Colony NorthStar.

Corporate tax rate of 27% is the nominal tax rate for Colony NorthStar. 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 CLNS 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 CLNS are equal to 461.1%.

Life of production assets of 210.2 years is the average useful life of capital assets used in Colony NorthStar 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 CLNS is equal to -98.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2774 million for Colony NorthStar - 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 552.147 million for Colony NorthStar 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 Colony NorthStar at the current share price and the inputted number of shares is $5.6 billion.

RELATED COMPANIES Price Int.Val. Rating
CLNS Colony NorthSt 10.23 57.67  str.buy
GOOD Gladstone Comm 19.75 2.79  str.sell
STAR iStar 11.14 3.19  str.sell
AAT American Asset 35.79 4.28  str.sell
CLI Mack-Cali Real 20.84 4.17  str.sell

COMPANY NEWS

▶ Colony NorthStar, Inc. Class A to Host Earnings Call   [Nov-09-17 07:50AM  ACCESSWIRE]
▶ NorthStar Asset Management reports 3Q results   [07:49AM  Associated Press]
▶ [$$] Colony Capitals Talks to Acquire Weinstein Co. Hit Snag   [Oct-25-17 11:53PM  The Wall Street Journal]
▶ Colony Capitals Talks to Acquire Weinstein Co. Hit Snag   [08:38PM  The Wall Street Journal]
▶ Investor Behind Weinstein Studio Bid, Is a Friend to Many in Hollywood   [Oct-18-17 12:03AM  The Wall Street Journal]
▶ Investor Behind Weinstein Studio Bid Is a Friend to Many in Hollywood   [Oct-17-17 07:42AM  The Wall Street Journal]
▶ [$$] Weinstein Co. Negotiating Possible Sale   [12:27AM  The Wall Street Journal]
▶ [$$] Weinstein Co. Negotiating Possible Sale   [03:56PM  The Wall Street Journal]
▶ The Weinstein Co. exploring sale to Colony Capital   [12:55PM  American City Business Journals]
▶ NorthStar Asset Management reports 2Q results   [Aug-08-17 11:35PM  Associated Press]
▶ REIT Stock With 7.5% Dividend, 202% Sales Growth Tests Buy Zone   [Jun-19-17 04:17PM  Investor's Business Daily]
▶ NorthStar Asset Management reports 1Q results   [May-10-17 05:02AM  Associated Press]
▶ 16 Stocks Added to the Dividend Yield Focus Index   [Apr-05-17 06:00AM  Morningstar]
▶ Seth Klarman Dividend Stocks in Focus: Colony NorthStar   [Mar-22-17 04:39PM  GuruFocus.com]
Financial statements of CLNS
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