Intrinsic value of Cousins Properties - CUZ

Previous Close

$9.56

  Intrinsic Value

$27.31

stock screener

  Rating & Target

str. buy

+186%

Previous close

$9.56

 
Intrinsic value

$27.31

 
Up/down potential

+186%

 
Rating

str. buy

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

We calculate the intrinsic value of CUZ 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 4.0

 

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, %
  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
  746
  1,152
  1,723
  2,500
  3,527
  4,848
  6,508
  8,545
  10,995
  13,888
  17,246
  21,085
  25,414
  30,238
  35,555
  41,359
  47,642
  54,394
  61,604
  69,261
  77,355
  85,878
  94,823
  104,187
  113,967
  124,165
  134,786
  145,836
  157,325
  169,267
Variable operating expenses, $m
  500
  765
  1,138
  1,645
  2,315
  3,177
  4,259
  5,589
  7,187
  9,074
  11,251
  13,755
  16,580
  19,727
  23,195
  26,982
  31,081
  35,486
  40,189
  45,185
  50,465
  56,026
  61,861
  67,970
  74,350
  81,004
  87,932
  95,141
  102,637
  110,428
Fixed operating expenses, $m
  81
  83
  84
  86
  88
  90
  92
  94
  96
  98
  100
  103
  105
  107
  109
  112
  114
  117
  119
  122
  125
  128
  130
  133
  136
  139
  142
  145
  148
  152
Total operating expenses, $m
  581
  848
  1,222
  1,731
  2,403
  3,267
  4,351
  5,683
  7,283
  9,172
  11,351
  13,858
  16,685
  19,834
  23,304
  27,094
  31,195
  35,603
  40,308
  45,307
  50,590
  56,154
  61,991
  68,103
  74,486
  81,143
  88,074
  95,286
  102,785
  110,580
Operating income, $m
  165
  304
  501
  769
  1,124
  1,582
  2,156
  2,863
  3,712
  4,716
  5,895
  7,227
  8,730
  10,404
  12,250
  14,265
  16,447
  18,791
  21,295
  23,954
  26,765
  29,725
  32,832
  36,084
  39,480
  43,022
  46,711
  50,549
  54,540
  58,688
EBITDA, $m
  868
  1,383
  2,108
  3,095
  4,400
  6,079
  8,189
  10,780
  13,896
  17,575
  21,845
  26,728
  32,235
  38,371
  45,134
  52,517
  60,510
  69,100
  78,272
  88,013
  98,311
  109,153
  120,534
  132,446
  144,888
  157,863
  171,375
  185,433
  200,050
  215,243
Interest expense (income), $m
  32
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
  24
Earnings before tax, $m
  140
  280
  476
  745
  1,100
  1,557
  2,132
  2,838
  3,688
  4,691
  5,870
  7,203
  8,705
  10,380
  12,226
  14,241
  16,422
  18,767
  21,271
  23,930
  26,741
  29,701
  32,807
  36,059
  39,456
  42,998
  46,687
  50,525
  54,516
  58,664
Tax expense, $m
  38
  76
  129
  201
  297
  420
  576
  766
  996
  1,267
  1,585
  1,945
  2,350
  2,803
  3,301
  3,845
  4,434
  5,067
  5,743
  6,461
  7,220
  8,019
  8,858
  9,736
  10,653
  11,610
  12,605
  13,642
  14,719
  15,839
Net income, $m
  102
  204
  348
  544
  803
  1,137
  1,556
  2,072
  2,692
  3,425
  4,285
  5,258
  6,355
  7,577
  8,925
  10,396
  11,988
  13,700
  15,528
  17,469
  19,521
  21,681
  23,949
  26,323
  28,803
  31,389
  34,081
  36,883
  39,796
  42,824

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
  -1,792
  -2,769
  -4,141
  -6,009
  -8,477
  -11,654
  -15,644
  -20,541
  -26,431
  -33,385
  -41,457
  -50,685
  -61,092
  -72,688
  -85,468
  -99,420
  -114,523
  -130,754
  -148,086
  -166,492
  -185,950
  -206,438
  -227,941
  -250,449
  -273,959
  -298,474
  -324,004
  -350,567
  -378,186
  -406,892
Adjusted assets (=assets-cash), $m
  -1,792
  -2,769
  -4,141
  -6,009
  -8,477
  -11,654
  -15,644
  -20,541
  -26,431
  -33,385
  -41,457
  -50,685
  -61,092
  -72,688
  -85,468
  -99,420
  -114,523
  -130,754
  -148,086
  -166,492
  -185,950
  -206,438
  -227,941
  -250,449
  -273,959
  -298,474
  -324,004
  -350,567
  -378,186
  -406,892
Revenue / Adjusted assets
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
  -0.416
Average production assets, $m
  6,896
  10,654
  15,934
  23,119
  32,617
  44,842
  60,190
  79,034
  101,697
  128,452
  159,508
  195,014
  235,058
  279,672
  328,845
  382,525
  440,637
  503,086
  569,771
  640,592
  715,456
  794,286
  877,020
  963,623
  1,054,080
  1,148,403
  1,246,633
  1,348,835
  1,455,102
  1,565,552
Working capital, $m
  -1,909
  -2,949
  -4,410
  -6,399
  -9,028
  -12,412
  -16,660
  -21,876
  -28,148
  -35,554
  -44,150
  -53,977
  -65,061
  -77,410
  -91,020
  -105,878
  -121,963
  -139,248
  -157,705
  -177,307
  -198,029
  -219,848
  -242,748
  -266,718
  -291,755
  -317,863
  -345,051
  -373,340
  -402,753
  -433,324
Total debt, $m
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
  101
Total liabilities, $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 equity, $m
  -1,792
  -2,769
  -4,141
  -6,009
  -8,477
  -11,654
  -15,644
  -20,541
  -26,431
  -33,385
  -41,457
  -50,685
  -61,092
  -72,688
  -85,468
  -99,420
  -114,523
  -130,754
  -148,086
  -166,492
  -185,950
  -206,438
  -227,941
  -250,449
  -273,959
  -298,474
  -324,004
  -350,567
  -378,186
  -406,892
Total liabilities and equity, $m
  -1,792
  -2,769
  -4,141
  -6,009
  -8,477
  -11,654
  -15,644
  -20,541
  -26,431
  -33,385
  -41,457
  -50,685
  -61,092
  -72,688
  -85,468
  -99,420
  -114,523
  -130,754
  -148,086
  -166,492
  -185,950
  -206,438
  -227,941
  -250,449
  -273,959
  -298,474
  -324,004
  -350,567
  -378,186
  -406,892
Debt-to-equity ratio
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
Adjusted equity ratio
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  102
  204
  348
  544
  803
  1,137
  1,556
  2,072
  2,692
  3,425
  4,285
  5,258
  6,355
  7,577
  8,925
  10,396
  11,988
  13,700
  15,528
  17,469
  19,521
  21,681
  23,949
  26,323
  28,803
  31,389
  34,081
  36,883
  39,796
  42,824
Depreciation, amort., depletion, $m
  703
  1,079
  1,607
  2,326
  3,276
  4,498
  6,033
  7,917
  10,184
  12,859
  15,951
  19,501
  23,506
  27,967
  32,884
  38,253
  44,064
  50,309
  56,977
  64,059
  71,546
  79,429
  87,702
  96,362
  105,408
  114,840
  124,663
  134,884
  145,510
  156,555
Funds from operations, $m
  806
  1,284
  1,955
  2,869
  4,078
  5,635
  7,589
  9,989
  12,876
  16,284
  20,236
  24,759
  29,861
  35,544
  41,809
  48,648
  56,052
  64,008
  72,505
  81,528
  91,066
  101,110
  111,651
  122,686
  134,211
  146,229
  158,745
  171,767
  185,307
  199,380
Change in working capital, $m
  -716
  -1,040
  -1,461
  -1,989
  -2,629
  -3,383
  -4,248
  -5,216
  -6,273
  -7,405
  -8,596
  -9,828
  -11,084
  -12,349
  -13,610
  -14,858
  -16,085
  -17,285
  -18,458
  -19,602
  -20,721
  -21,819
  -22,900
  -23,970
  -25,037
  -26,108
  -27,189
  -28,288
  -29,413
  -30,571
Cash from operations, $m
  1,522
  2,324
  3,416
  4,858
  6,707
  9,018
  11,838
  15,205
  19,149
  23,689
  28,832
  34,587
  40,944
  47,893
  55,419
  63,506
  72,137
  81,294
  90,962
  101,130
  111,788
  122,929
  134,551
  146,656
  159,248
  172,337
  185,933
  200,055
  214,720
  229,951
Maintenance CAPEX, $m
  -431
  -690
  -1,065
  -1,593
  -2,312
  -3,262
  -4,484
  -6,019
  -7,903
  -10,170
  -12,845
  -15,951
  -19,501
  -23,506
  -27,967
  -32,884
  -38,253
  -44,064
  -50,309
  -56,977
  -64,059
  -71,546
  -79,429
  -87,702
  -96,362
  -105,408
  -114,840
  -124,663
  -134,884
  -145,510
New CAPEX, $m
  -2,584
  -3,758
  -5,279
  -7,185
  -9,499
  -12,224
  -15,349
  -18,843
  -22,664
  -26,755
  -31,056
  -35,506
  -40,043
  -44,615
  -49,173
  -53,681
  -58,112
  -62,449
  -66,685
  -70,821
  -74,864
  -78,829
  -82,735
  -86,602
  -90,457
  -94,324
  -98,230
  -102,202
  -106,267
  -110,451
Cash from investing activities, $m
  -3,015
  -4,448
  -6,344
  -8,778
  -11,811
  -15,486
  -19,833
  -24,862
  -30,567
  -36,925
  -43,901
  -51,457
  -59,544
  -68,121
  -77,140
  -86,565
  -96,365
  -106,513
  -116,994
  -127,798
  -138,923
  -150,375
  -162,164
  -174,304
  -186,819
  -199,732
  -213,070
  -226,865
  -241,151
  -255,961
Free cash flow, $m
  -1,494
  -2,124
  -2,928
  -3,921
  -5,103
  -6,468
  -7,995
  -9,658
  -11,418
  -13,235
  -15,069
  -16,870
  -18,601
  -20,227
  -21,720
  -23,059
  -24,228
  -25,219
  -26,032
  -26,668
  -27,136
  -27,446
  -27,612
  -27,648
  -27,571
  -27,395
  -27,137
  -26,810
  -26,430
  -26,010
Issuance/(repayment) of debt, $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
Issuance/(repurchase) of shares, $m
  -671
  -977
  -1,372
  -1,867
  -2,469
  -3,177
  -3,989
  -4,897
  -5,890
  -6,954
  -8,072
  -9,228
  -10,407
  -11,595
  -12,780
  -13,952
  -15,103
  -16,231
  -17,332
  -18,407
  -19,457
  -20,488
  -21,503
  -22,508
  -23,510
  -24,515
  -25,530
  -26,563
  -27,619
  -28,706
Cash from financing (excl. dividends), $m  
  -671
  -977
  -1,372
  -1,867
  -2,469
  -3,177
  -3,989
  -4,897
  -5,890
  -6,954
  -8,072
  -9,228
  -10,407
  -11,595
  -12,780
  -13,952
  -15,103
  -16,231
  -17,332
  -18,407
  -19,457
  -20,488
  -21,503
  -22,508
  -23,510
  -24,515
  -25,530
  -26,563
  -27,619
  -28,706
Total cash flow (excl. dividends), $m
  -2,165
  -3,101
  -4,301
  -5,788
  -7,572
  -9,645
  -11,985
  -14,555
  -17,308
  -20,189
  -23,141
  -26,098
  -29,008
  -31,823
  -34,501
  -37,011
  -39,331
  -41,450
  -43,363
  -45,074
  -46,593
  -47,934
  -49,115
  -50,157
  -51,081
  -51,910
  -52,667
  -53,373
  -54,049
  -54,716
Retained Cash Flow (-), $m
  671
  977
  1,372
  1,867
  2,469
  3,177
  3,989
  4,897
  5,890
  6,954
  8,072
  9,228
  10,407
  11,595
  12,780
  13,952
  15,103
  16,231
  17,332
  18,407
  19,457
  20,488
  21,503
  22,508
  23,510
  24,515
  25,530
  26,563
  27,619
  28,706
Prev. year cash balance distribution, $m
  1,122
  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
  671
  977
  1,372
  1,867
  2,469
  3,177
  3,989
  4,897
  5,890
  6,954
  8,072
  9,228
  10,407
  11,595
  12,780
  13,952
  15,103
  16,231
  17,332
  18,407
  19,457
  20,488
  21,503
  22,508
  23,510
  24,515
  25,530
  26,563
  27,619
  28,706
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
  579
  719
  848
  954
  1,026
  1,055
  1,040
  983
  891
  776
  650
  523
  405
  301
  215
  148
  98
  62
  38
  22
  12
  7
  3
  2
  1
  0
  0
  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

Cousins Properties Incorporated is a self-administered and self-managed real estate investment trust. The Company's segments include Office, Mixed-Use, Other, Atlanta, Austin, Charlotte, Orlando, Tampa, Phoenix and Other. It develops, acquires, leases, manages and owns primarily Class A office properties and opportunistic mixed-use developments in Sunbelt markets with a focus on Georgia, Texas and North Carolina. It manages a 15.8 million-square-foot trophy office portfolio in the Sun Belt markets of Atlanta, Austin, Charlotte, Orlando, Tampa and Tempe. As of December 31, 2016, its portfolio of real estate assets consisted of interests in 16.2 million square feet of office space and 786,000 square feet of mixed-use space. The Company, through Cousins TRS Services LLC, owns and manages its own real estate portfolio and performs certain real estate related services for other parties. Its properties include Colorado Tower, 816 Congress, Promenade and Gateway Village.

FINANCIAL RATIOS  of  Cousins Properties (CUZ)

Valuation Ratios
P/E Ratio 47.6
Price to Sales 14.5
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 33.9
Price to Free Cash Flow -45.3
Growth Rates
Sales Growth Rate 27%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.9%
Cap. Spend. - 3 Yr. Gr. Rate -33.8%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 56.2%
Total Debt to Equity 56.2%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.3%
Ret/ On Assets - 3 Yr. Avg. 4.2%
Return On Total Capital 2.5%
Ret/ On T. Cap. - 3 Yr. Avg. 3.3%
Return On Equity 3.8%
Return On Equity - 3 Yr. Avg. 4.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 60.2%
Gross Margin - 3 Yr. Avg. 58%
EBITDA Margin 87.6%
EBITDA Margin - 3 Yr. Avg. 102.3%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 6.4%
Pre-Tax Margin 19.3%
Pre-Tax Margin - 3 Yr. Avg. 20.9%
Net Profit Margin 30.5%
Net Profit Margin - 3 Yr. Avg. 40.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 64.6%

CUZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CUZ stock intrinsic value calculation we used $466 million for the last fiscal year's total revenue generated by Cousins Properties. The default revenue input number comes from 2017 income statement of Cousins Properties. 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 CUZ 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 15.8%, whose default value for CUZ is calculated based on our internal credit rating of Cousins Properties, 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 Cousins Properties.
    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 CUZ stock the variable cost ratio is equal to 68.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $79 million in the base year in the intrinsic value calculation for CUZ 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 23.9% for Cousins Properties.

Corporate tax rate of 27% is the nominal tax rate for Cousins Properties. 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 CUZ stock is equal to 0.6%.

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 CUZ are equal to 924.9%.

Life of production assets of 10 years is the average useful life of capital assets used in Cousins Properties 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 CUZ is equal to -256%. 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 Cousins Properties - 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 416 million for Cousins Properties 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 Cousins Properties at the current share price and the inputted number of shares is $4.0 billion.

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COMPANY NEWS

▶ Should You Buy Cousins Properties Incorporated (NYSE:CUZ)?   [Jun-26-18 02:16PM  Simply Wall St.]
▶ Five real estate teams selected to submit plan for two-block North Tryon project   [May-16-18 07:17AM  American City Business Journals]
▶ MetLife unveils design of its new 'Midtown Union' project   [May-09-18 12:38PM  American City Business Journals]
▶ Cousins Properties Adds Dary Stone To Board Of Directors   [Apr-26-18 04:17PM  PR Newswire]
▶ Cousins Properties: 1Q Earnings Snapshot   [Apr-25-18 07:01PM  Associated Press]
▶ Cox Automotive exec appointed City of Atlanta COO   [Mar-14-18 09:16AM  American City Business Journals]
▶ Apache extends headquarters lease near Galleria for 60 months   [Feb-26-18 04:28PM  American City Business Journals]
▶ Cousins Properties reports 4Q results   [Feb-07-18 05:55PM  Associated Press]
▶ Bank of America renews, expands at uptown office tower   [Jan-11-18 07:30AM  American City Business Journals]
▶ 2 REIT Picks From Bank Of America   [Dec-04-17 04:18PM  Benzinga]
▶ Cousins Properties Incorporated to Host Earnings Call   [Oct-26-17 07:55AM  ACCESSWIRE]
▶ Cousins Properties reports 3Q results   [Oct-25-17 05:33PM  Associated Press]
▶ Downtown Orlando's largest office landlord is shedding that title   [Oct-10-17 05:20PM  American City Business Journals]
▶ Hines And Cousins Announce 8000 Avalon 93% Leased   [Aug-18-17 08:30AM  PR Newswire]
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