Intrinsic value of CRH ADR - CRH

Previous Close

$25.50

  Intrinsic Value

$668.24

stock screener

  Rating & Target

str. buy

+999%

Previous close

$25.50

 
Intrinsic value

$668.24

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of CRH 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 1.0

 

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, %
  16.00
  14.90
  13.91
  13.02
  12.22
  11.50
  10.85
  10.26
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.26
  7.04
  6.83
  6.65
  6.49
  6.34
  6.20
  6.08
  5.97
  5.88
  5.79
  5.71
  5.64
  5.58
  5.52
Revenue, $m
  35,120
  40,353
  45,966
  51,951
  58,298
  64,999
  72,049
  79,442
  87,176
  95,250
  103,665
  112,427
  121,541
  131,017
  140,864
  151,098
  161,733
  172,786
  184,278
  196,231
  208,666
  221,611
  235,092
  249,139
  263,782
  279,054
  294,990
  311,626
  329,002
  347,156
Variable operating expenses, $m
  30,732
  35,182
  39,956
  45,045
  50,442
  56,141
  62,136
  68,423
  75,000
  81,866
  88,157
  95,607
  103,358
  111,416
  119,790
  128,493
  137,537
  146,937
  156,710
  166,874
  177,449
  188,457
  199,922
  211,867
  224,319
  237,306
  250,858
  265,006
  279,782
  295,220
Fixed operating expenses, $m
  1,202
  1,228
  1,255
  1,283
  1,311
  1,340
  1,370
  1,400
  1,430
  1,462
  1,494
  1,527
  1,561
  1,595
  1,630
  1,666
  1,702
  1,740
  1,778
  1,817
  1,857
  1,898
  1,940
  1,983
  2,026
  2,071
  2,116
  2,163
  2,210
  2,259
Total operating expenses, $m
  31,934
  36,410
  41,211
  46,328
  51,753
  57,481
  63,506
  69,823
  76,430
  83,328
  89,651
  97,134
  104,919
  113,011
  121,420
  130,159
  139,239
  148,677
  158,488
  168,691
  179,306
  190,355
  201,862
  213,850
  226,345
  239,377
  252,974
  267,169
  281,992
  297,479
Operating income, $m
  3,186
  3,943
  4,755
  5,623
  6,544
  7,518
  8,543
  9,619
  10,745
  11,922
  14,015
  15,293
  16,623
  18,006
  19,444
  20,939
  22,493
  24,110
  25,791
  27,540
  29,360
  31,256
  33,231
  35,290
  37,437
  39,677
  42,015
  44,458
  47,010
  49,677
EBITDA, $m
  5,196
  6,123
  7,119
  8,182
  9,310
  10,502
  11,757
  13,073
  14,452
  15,891
  17,392
  18,955
  20,582
  22,274
  24,033
  25,862
  27,763
  29,739
  31,794
  33,933
  36,158
  38,476
  40,890
  43,406
  46,030
  48,768
  51,626
  54,610
  57,728
  60,987
Interest expense (income), $m
  365
  517
  696
  888
  1,094
  1,314
  1,547
  1,793
  2,052
  2,323
  2,607
  2,904
  3,213
  3,534
  3,869
  4,217
  4,579
  4,955
  5,345
  5,751
  6,173
  6,612
  7,069
  7,544
  8,039
  8,555
  9,093
  9,653
  10,239
  10,850
  11,488
Earnings before tax, $m
  2,669
  3,247
  3,868
  4,529
  5,231
  5,971
  6,751
  7,568
  8,422
  9,315
  11,111
  12,080
  13,088
  14,137
  15,227
  16,360
  17,539
  18,765
  20,040
  21,367
  22,748
  24,187
  25,687
  27,251
  28,882
  30,584
  32,362
  34,219
  36,160
  38,189
Tax expense, $m
  721
  877
  1,044
  1,223
  1,412
  1,612
  1,823
  2,043
  2,274
  2,515
  3,000
  3,262
  3,534
  3,817
  4,111
  4,417
  4,736
  5,066
  5,411
  5,769
  6,142
  6,531
  6,935
  7,358
  7,798
  8,258
  8,738
  9,239
  9,763
  10,311
Net income, $m
  1,949
  2,370
  2,823
  3,306
  3,818
  4,359
  4,928
  5,524
  6,148
  6,800
  8,111
  8,818
  9,554
  10,320
  11,116
  11,943
  12,803
  13,698
  14,629
  15,598
  16,606
  17,657
  18,751
  19,893
  21,084
  22,327
  23,624
  24,980
  26,397
  27,878

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
  44,066
  50,631
  57,674
  65,183
  73,146
  81,555
  90,400
  99,676
  109,380
  119,510
  130,069
  141,063
  152,498
  164,387
  176,743
  189,583
  202,927
  216,796
  231,215
  246,211
  261,815
  278,057
  294,972
  312,596
  330,969
  350,131
  370,126
  390,999
  412,800
  435,579
Adjusted assets (=assets-cash), $m
  44,066
  50,631
  57,674
  65,183
  73,146
  81,555
  90,400
  99,676
  109,380
  119,510
  130,069
  141,063
  152,498
  164,387
  176,743
  189,583
  202,927
  216,796
  231,215
  246,211
  261,815
  278,057
  294,972
  312,596
  330,969
  350,131
  370,126
  390,999
  412,800
  435,579
Revenue / Adjusted assets
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
  0.797
Average production assets, $m
  21,739
  24,979
  28,453
  32,157
  36,086
  40,234
  44,598
  49,175
  53,962
  58,960
  64,169
  69,592
  75,234
  81,099
  87,195
  93,530
  100,113
  106,955
  114,068
  121,467
  129,164
  137,177
  145,522
  154,217
  163,281
  172,734
  182,599
  192,897
  203,652
  214,890
Working capital, $m
  2,704
  3,107
  3,539
  4,000
  4,489
  5,005
  5,548
  6,117
  6,713
  7,334
  7,982
  8,657
  9,359
  10,088
  10,847
  11,635
  12,453
  13,305
  14,189
  15,110
  16,067
  17,064
  18,102
  19,184
  20,311
  21,487
  22,714
  23,995
  25,333
  26,731
Total debt, $m
  12,880
  16,439
  20,256
  24,325
  28,642
  33,199
  37,993
  43,021
  48,280
  53,771
  59,494
  65,452
  71,651
  78,094
  84,791
  91,751
  98,983
  106,500
  114,315
  122,443
  130,900
  139,703
  148,871
  158,423
  168,381
  178,767
  189,604
  200,918
  212,734
  225,080
Total liabilities, $m
  23,884
  27,442
  31,259
  35,329
  39,645
  44,203
  48,997
  54,024
  59,284
  64,775
  70,498
  76,456
  82,654
  89,098
  95,795
  102,754
  109,986
  117,503
  125,319
  133,447
  141,904
  150,707
  159,875
  169,427
  179,385
  189,771
  200,608
  211,922
  223,738
  236,084
Total equity, $m
  20,182
  23,189
  26,415
  29,854
  33,501
  37,352
  41,403
  45,652
  50,096
  54,736
  59,572
  64,607
  69,844
  75,289
  80,948
  86,829
  92,940
  99,293
  105,896
  112,765
  119,911
  127,350
  135,097
  143,169
  151,584
  160,360
  169,518
  179,078
  189,063
  199,495
Total liabilities and equity, $m
  44,066
  50,631
  57,674
  65,183
  73,146
  81,555
  90,400
  99,676
  109,380
  119,511
  130,070
  141,063
  152,498
  164,387
  176,743
  189,583
  202,926
  216,796
  231,215
  246,212
  261,815
  278,057
  294,972
  312,596
  330,969
  350,131
  370,126
  391,000
  412,801
  435,579
Debt-to-equity ratio
  0.640
  0.710
  0.770
  0.810
  0.850
  0.890
  0.920
  0.940
  0.960
  0.980
  1.000
  1.010
  1.030
  1.040
  1.050
  1.060
  1.070
  1.070
  1.080
  1.090
  1.090
  1.100
  1.100
  1.110
  1.110
  1.110
  1.120
  1.120
  1.130
  1.130
Adjusted equity ratio
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,949
  2,370
  2,823
  3,306
  3,818
  4,359
  4,928
  5,524
  6,148
  6,800
  8,111
  8,818
  9,554
  10,320
  11,116
  11,943
  12,803
  13,698
  14,629
  15,598
  16,606
  17,657
  18,751
  19,893
  21,084
  22,327
  23,624
  24,980
  26,397
  27,878
Depreciation, amort., depletion, $m
  2,010
  2,181
  2,364
  2,559
  2,765
  2,984
  3,213
  3,454
  3,706
  3,969
  3,377
  3,663
  3,960
  4,268
  4,589
  4,923
  5,269
  5,629
  6,004
  6,393
  6,798
  7,220
  7,659
  8,117
  8,594
  9,091
  9,610
  10,152
  10,719
  11,310
Funds from operations, $m
  3,959
  4,551
  5,187
  5,865
  6,584
  7,343
  8,141
  8,978
  9,854
  10,769
  11,488
  12,481
  13,514
  14,588
  15,705
  16,866
  18,072
  19,327
  20,633
  21,991
  23,404
  24,877
  26,411
  28,010
  29,677
  31,418
  33,235
  35,132
  37,115
  39,188
Change in working capital, $m
  373
  403
  432
  461
  489
  516
  543
  569
  596
  622
  648
  675
  702
  730
  758
  788
  819
  851
  885
  920
  958
  997
  1,038
  1,082
  1,128
  1,176
  1,227
  1,281
  1,338
  1,398
Cash from operations, $m
  3,586
  4,148
  4,755
  5,404
  6,095
  6,827
  7,598
  8,409
  9,259
  10,147
  10,840
  11,806
  12,812
  13,859
  14,947
  16,078
  17,254
  18,476
  19,748
  21,070
  22,447
  23,880
  25,372
  26,928
  28,550
  30,242
  32,008
  33,851
  35,777
  37,790
Maintenance CAPEX, $m
  -987
  -1,144
  -1,315
  -1,498
  -1,692
  -1,899
  -2,118
  -2,347
  -2,588
  -2,840
  -3,103
  -3,377
  -3,663
  -3,960
  -4,268
  -4,589
  -4,923
  -5,269
  -5,629
  -6,004
  -6,393
  -6,798
  -7,220
  -7,659
  -8,117
  -8,594
  -9,091
  -9,610
  -10,152
  -10,719
New CAPEX, $m
  -2,994
  -3,239
  -3,475
  -3,704
  -3,929
  -4,148
  -4,364
  -4,576
  -4,787
  -4,998
  -5,209
  -5,423
  -5,642
  -5,865
  -6,096
  -6,335
  -6,583
  -6,842
  -7,114
  -7,398
  -7,698
  -8,013
  -8,345
  -8,695
  -9,064
  -9,453
  -9,864
  -10,298
  -10,755
  -11,238
Cash from investing activities, $m
  -3,981
  -4,383
  -4,790
  -5,202
  -5,621
  -6,047
  -6,482
  -6,923
  -7,375
  -7,838
  -8,312
  -8,800
  -9,305
  -9,825
  -10,364
  -10,924
  -11,506
  -12,111
  -12,743
  -13,402
  -14,091
  -14,811
  -15,565
  -16,354
  -17,181
  -18,047
  -18,955
  -19,908
  -20,907
  -21,957
Free cash flow, $m
  -394
  -235
  -34
  202
  474
  779
  1,117
  1,486
  1,884
  2,309
  2,528
  3,006
  3,508
  4,034
  4,582
  5,154
  5,748
  6,365
  7,005
  7,668
  8,356
  9,069
  9,808
  10,574
  11,369
  12,195
  13,052
  13,943
  14,870
  15,834
Issuance/(repayment) of debt, $m
  3,305
  3,559
  3,817
  4,070
  4,316
  4,557
  4,794
  5,028
  5,259
  5,491
  5,723
  5,958
  6,198
  6,444
  6,697
  6,959
  7,232
  7,517
  7,815
  8,128
  8,457
  8,803
  9,168
  9,552
  9,958
  10,386
  10,837
  11,314
  11,816
  12,346
Issuance/(repurchase) of shares, $m
  837
  637
  402
  133
  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  
  4,142
  4,196
  4,219
  4,203
  4,316
  4,557
  4,794
  5,028
  5,259
  5,491
  5,723
  5,958
  6,198
  6,444
  6,697
  6,959
  7,232
  7,517
  7,815
  8,128
  8,457
  8,803
  9,168
  9,552
  9,958
  10,386
  10,837
  11,314
  11,816
  12,346
Total cash flow (excl. dividends), $m
  3,748
  3,960
  4,185
  4,404
  4,790
  5,337
  5,911
  6,513
  7,143
  7,800
  8,251
  8,964
  9,706
  10,477
  11,279
  12,113
  12,980
  13,882
  14,820
  15,796
  16,813
  17,872
  18,976
  20,127
  21,327
  22,581
  23,889
  25,257
  26,686
  28,180
Retained Cash Flow (-), $m
  -2,786
  -3,007
  -3,226
  -3,439
  -3,647
  -3,851
  -4,051
  -4,248
  -4,444
  -4,640
  -4,836
  -5,035
  -5,237
  -5,445
  -5,659
  -5,881
  -6,111
  -6,352
  -6,604
  -6,868
  -7,146
  -7,439
  -7,747
  -8,072
  -8,415
  -8,776
  -9,158
  -9,560
  -9,985
  -10,433
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
  962
  953
  959
  966
  1,143
  1,486
  1,860
  2,265
  2,699
  3,160
  3,415
  3,929
  4,468
  5,032
  5,620
  6,233
  6,869
  7,530
  8,216
  8,928
  9,667
  10,433
  11,229
  12,055
  12,913
  13,804
  14,732
  15,696
  16,701
  17,747
Discount rate, %
  4.40
  4.62
  4.85
  5.09
  5.35
  5.62
  5.90
  6.19
  6.50
  6.83
  7.17
  7.53
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
PV of cash for distribution, $m
  921
  871
  832
  792
  881
  1,070
  1,245
  1,401
  1,531
  1,633
  1,595
  1,645
  1,663
  1,649
  1,606
  1,536
  1,445
  1,336
  1,214
  1,084
  951
  820
  693
  575
  468
  373
  291
  222
  165
  120
Current shareholders' claim on cash, %
  93.6
  89.5
  87.4
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7
  86.7

CRH public limited company (CRH plc) is a building materials company. The Company's segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.

FINANCIAL RATIOS  of  CRH ADR (CRH)

Valuation Ratios
P/E Ratio 16.2
Price to Sales 0.7
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 8.6
Price to Free Cash Flow 13.5
Growth Rates
Sales Growth Rate 14.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -3.3%
Cap. Spend. - 3 Yr. Gr. Rate 11.4%
Financial Strength
Quick Ratio 9
Current Ratio 0
LT Debt to Equity 54.1%
Total Debt to Equity 56.1%
Interest Coverage 6
Management Effectiveness
Return On Assets 4.7%
Ret/ On Assets - 3 Yr. Avg. 4%
Return On Total Capital 5.7%
Ret/ On T. Cap. - 3 Yr. Avg. 4.4%
Return On Equity 9.2%
Return On Equity - 3 Yr. Avg. 7.1%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 32.6%
Gross Margin - 3 Yr. Avg. 30.8%
EBITDA Margin 11.7%
EBITDA Margin - 3 Yr. Avg. 10%
Operating Margin 7.5%
Oper. Margin - 3 Yr. Avg. 5.9%
Pre-Tax Margin 6.4%
Pre-Tax Margin - 3 Yr. Avg. 4.9%
Net Profit Margin 4.6%
Net Profit Margin - 3 Yr. Avg. 3.6%
Effective Tax Rate 27.1%
Eff/ Tax Rate - 3 Yr. Avg. 26.6%
Payout Ratio 28.4%

CRH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CRH stock intrinsic value calculation we used $30276.1104442 million for the last fiscal year's total revenue generated by CRH ADR. The default revenue input number comes from 0001 income statement of CRH ADR. 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 CRH stock valuation model: a) initial revenue growth rate of 16% 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 4.4%, whose default value for CRH is calculated based on our internal credit rating of CRH ADR, 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 CRH ADR.
    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 CRH stock the variable cost ratio is equal to 87.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1176 million in the base year in the intrinsic value calculation for CRH 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 CRH ADR.

Corporate tax rate of 27% is the nominal tax rate for CRH ADR. 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 CRH 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 CRH are equal to 61.9%.

Life of production assets of 19 years is the average useful life of capital assets used in CRH ADR 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 CRH is equal to 7.7%. 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 - $17396.1584634 million for CRH ADR - 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 40.219 million for CRH ADR 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 CRH ADR at the current share price and the inputted number of shares is $1.0 billion.

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COMPANY NEWS

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▶ Is Royal Caribbean Cruises Ltd. (RCL) A Good Stock To Buy?   [Dec-08-18 09:40PM  Insider Monkey]
▶ CRH PLC Announces Trading Update November 2018   [Nov-20-18 01:00AM  ACCESSWIRE]
▶ CRH Completes Phase 2 of Share Buyback Programme   [Oct-22-18 02:00AM  ACCESSWIRE]
▶ CRH Announces Non-Executive Board Appointments   [Oct-01-18 02:00AM  ACCESSWIRE]
▶ Calculating The Fair Value Of CRH plc (ISE:CRG)   [Aug-27-18 06:30AM  Simply Wall St.]
▶ CRH PLC Announces Half-year Report   [02:00AM  ACCESSWIRE]
▶ CRH Completes Phase 1 of Share Buyback Programme   [Aug-02-18 02:00AM  ACCESSWIRE]
▶ Row House about to make landfall in the Chicago market   [Jul-27-18 03:28PM  American City Business Journals]
▶ CRH announces divestment of Benelux DIY business   [Jul-18-18 02:00AM  ACCESSWIRE]
▶ Is CRH plcs (ISE:CRG) ROE Of 12.10% Sustainable?   [Jun-21-18 04:56AM  Simply Wall St.]
▶ CRH Commences Phase 1 of Share Buyback Programme   [May-02-18 02:00AM  ACCESSWIRE]
▶ CRH to pause on major deals for rest of 2018 -CEO   [Apr-26-18 09:12AM  Reuters]
▶ Are CRH plcs (ISE:CRG) Interest Costs Too High?   [04:26AM  Simply Wall St.]
▶ A Look At The Intrinsic Value Of CRH plc (ISE:CRG)   [Mar-16-18 04:31AM  Simply Wall St.]
▶ 2017 Annual Report and Form 20-F   [Mar-09-18 11:52AM  ACCESSWIRE]
▶ CRH Announces Non-Executive Board Appointment   [Mar-01-18 07:30AM  ACCESSWIRE]
▶ [$$] CRH Profit Rises on Europe, Americas Gains   [02:45AM  The Wall Street Journal]
▶ 2017 Full Year Results   [02:00AM  ACCESSWIRE]
▶ ETFs with exposure to CRH Plc : December 14, 2017   [Dec-14-17 01:08PM  Capital Cube]
▶ [$$] CRH Sales Rise 3%   [Nov-21-17 02:53AM  The Wall Street Journal]
▶ Company News For Sep 22, 2017   [Sep-22-17 10:18AM  Zacks]
▶ The 'Trump Trade' Looks Like It's Alive and Well   [Sep-21-17 02:54PM  TheStreet.com]
▶ Is the 'Trump Trade' Alive and Well?   [12:30PM  TheStreet.com]
▶ CRH Cements $3.5 Billion Deal with Ash Grove   [03:54AM  TheStreet.com]
▶ [$$] CRH Unveils $3.5 Billion U.S. Buy   [02:46AM  The Wall Street Journal]
▶ ETFs with exposure to CRH Plc : September 12, 2017   [Sep-11-17 10:27PM  Capital Cube]
▶ ETFs with exposure to CRH Plc : August 31, 2017   [Aug-31-17 05:54PM  Capital Cube]
▶ CRH Shuffles the Deck   [07:09AM  Bloomberg]
▶ CRH PLC Announces Development Update   [02:00AM  Marketwired]
▶ ETFs with exposure to CRH Plc : August 4, 2017   [Aug-03-17 08:03PM  Capital Cube]
▶ CRH PLC: Board change   [Jul-27-17 02:00AM  Marketwired]
▶ ETFs with exposure to CRH Plc : July 13, 2017   [Jul-13-17 03:48PM  Capital Cube]
▶ ETFs with exposure to CRH Plc : June 14, 2017   [Jun-14-17 01:32PM  Capital Cube]
▶ ETFs with exposure to CRH Plc : May 2, 2017   [May-02-17 03:52PM  Capital Cube]
▶ ETFs with exposure to CRH Plc : April 19, 2017   [Apr-19-17 02:17PM  Capital Cube]
▶ ETFs with exposure to CRH Plc : April 5, 2017   [Apr-05-17 04:34PM  Capital Cube]

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