Intrinsic value of Dover - DOV

Previous Close

$94.95

  Intrinsic Value

$277.22

stock screener

  Rating & Target

str. buy

+192%

Previous close

$94.95

 
Intrinsic value

$277.22

 
Up/down potential

+192%

 
Rating

str. buy

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

We calculate the intrinsic value of DOV 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 2016), $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 14.8

 

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, %
  -2.33
  17.40
  16.16
  15.04
  14.04
  13.14
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
Revenue, $m
  6,794
  7,976
  9,265
  10,659
  12,155
  13,752
  15,447
  17,237
  19,121
  21,098
  23,166
  25,326
  27,578
  29,923
  32,362
  34,898
  37,534
  40,273
  43,119
  46,078
  49,154
  52,352
  55,680
  59,144
  62,751
  66,510
  70,427
  74,513
  78,776
  83,226
  87,873
Variable operating expenses, $m
 
  2,329
  2,632
  2,959
  3,311
  3,686
  4,084
  4,504
  4,947
  5,411
  5,897
  5,948
  6,476
  7,027
  7,600
  8,195
  8,814
  9,458
  10,126
  10,821
  11,543
  12,294
  13,076
  13,889
  14,736
  15,619
  16,539
  17,498
  18,500
  19,545
  20,636
Fixed operating expenses, $m
 
  4,127
  4,230
  4,336
  4,444
  4,555
  4,669
  4,786
  4,905
  5,028
  5,154
  5,282
  5,415
  5,550
  5,689
  5,831
  5,977
  6,126
  6,279
  6,436
  6,597
  6,762
  6,931
  7,104
  7,282
  7,464
  7,651
  7,842
  8,038
  8,239
  8,445
Total operating expenses, $m
  5,983
  6,456
  6,862
  7,295
  7,755
  8,241
  8,753
  9,290
  9,852
  10,439
  11,051
  11,230
  11,891
  12,577
  13,289
  14,026
  14,791
  15,584
  16,405
  17,257
  18,140
  19,056
  20,007
  20,993
  22,018
  23,083
  24,190
  25,340
  26,538
  27,784
  29,081
Operating income, $m
  811
  1,520
  2,403
  3,364
  4,401
  5,511
  6,694
  7,947
  9,269
  10,659
  12,116
  14,096
  15,687
  17,346
  19,073
  20,872
  22,743
  24,689
  26,714
  28,821
  31,013
  33,296
  35,673
  38,151
  40,733
  43,427
  46,238
  49,173
  52,238
  55,442
  58,792
EBITDA, $m
  1,172
  2,136
  3,045
  4,034
  5,101
  6,243
  7,460
  8,749
  10,109
  11,538
  13,037
  14,604
  16,240
  17,946
  19,722
  21,572
  23,496
  25,497
  27,579
  29,745
  31,999
  34,346
  36,790
  39,337
  41,992
  44,761
  47,650
  50,667
  53,818
  57,111
  60,555
Interest expense (income), $m
  131
  134
  177
  223
  273
  327
  384
  445
  510
  578
  649
  723
  801
  882
  967
  1,054
  1,146
  1,240
  1,339
  1,441
  1,548
  1,659
  1,774
  1,894
  2,018
  2,148
  2,283
  2,424
  2,571
  2,725
  2,885
Earnings before tax, $m
  689
  1,386
  2,227
  3,141
  4,127
  5,184
  6,309
  7,502
  8,759
  10,081
  11,467
  13,373
  14,886
  16,464
  18,107
  19,817
  21,597
  23,449
  25,375
  27,379
  29,465
  31,637
  33,900
  36,257
  38,715
  41,279
  43,954
  46,748
  49,667
  52,718
  55,907
Tax expense, $m
  180
  374
  601
  848
  1,114
  1,400
  1,704
  2,025
  2,365
  2,722
  3,096
  3,611
  4,019
  4,445
  4,889
  5,351
  5,831
  6,331
  6,851
  7,392
  7,956
  8,542
  9,153
  9,789
  10,453
  11,145
  11,868
  12,622
  13,410
  14,234
  15,095
Net income, $m
  509
  1,012
  1,625
  2,293
  3,013
  3,784
  4,606
  5,476
  6,394
  7,359
  8,371
  9,762
  10,867
  12,018
  13,218
  14,467
  15,766
  17,118
  18,524
  19,987
  21,510
  23,095
  24,747
  26,468
  28,262
  30,133
  32,087
  34,126
  36,257
  38,484
  40,812

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  349
  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
  10,116
  11,460
  13,312
  15,315
  17,465
  19,759
  22,193
  24,766
  27,473
  30,313
  33,285
  36,388
  39,623
  42,992
  46,497
  50,141
  53,928
  57,863
  61,953
  66,204
  70,623
  75,219
  80,000
  84,977
  90,160
  95,560
  101,189
  107,059
  113,184
  119,577
  126,255
Adjusted assets (=assets-cash), $m
  9,767
  11,460
  13,312
  15,315
  17,465
  19,759
  22,193
  24,766
  27,473
  30,313
  33,285
  36,388
  39,623
  42,992
  46,497
  50,141
  53,928
  57,863
  61,953
  66,204
  70,623
  75,219
  80,000
  84,977
  90,160
  95,560
  101,189
  107,059
  113,184
  119,577
  126,255
Revenue / Adjusted assets
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
  0.696
Average production assets, $m
  2,508
  2,943
  3,419
  3,933
  4,485
  5,075
  5,700
  6,360
  7,056
  7,785
  8,548
  9,345
  10,176
  11,041
  11,942
  12,877
  13,850
  14,861
  15,911
  17,003
  18,138
  19,318
  20,546
  21,824
  23,155
  24,542
  25,988
  27,495
  29,068
  30,710
  32,425
Working capital, $m
  649
  837
  973
  1,119
  1,276
  1,444
  1,622
  1,810
  2,008
  2,215
  2,432
  2,659
  2,896
  3,142
  3,398
  3,664
  3,941
  4,229
  4,528
  4,838
  5,161
  5,497
  5,846
  6,210
  6,589
  6,984
  7,395
  7,824
  8,271
  8,739
  9,227
Total debt, $m
  3,621
  4,307
  5,439
  6,662
  7,976
  9,378
  10,865
  12,437
  14,091
  15,826
  17,642
  19,538
  21,515
  23,573
  25,715
  27,941
  30,255
  32,660
  35,158
  37,756
  40,456
  43,264
  46,185
  49,226
  52,393
  55,692
  59,131
  62,718
  66,460
  70,367
  74,447
Total liabilities, $m
  6,316
  7,002
  8,134
  9,357
  10,671
  12,073
  13,560
  15,132
  16,786
  18,521
  20,337
  22,233
  24,210
  26,268
  28,410
  30,636
  32,950
  35,355
  37,853
  40,451
  43,151
  45,959
  48,880
  51,921
  55,088
  58,387
  61,826
  65,413
  69,155
  73,062
  77,142
Total equity, $m
  3,800
  4,458
  5,178
  5,957
  6,794
  7,686
  8,633
  9,634
  10,687
  11,792
  12,948
  14,155
  15,414
  16,724
  18,087
  19,505
  20,978
  22,509
  24,100
  25,753
  27,472
  29,260
  31,120
  33,056
  35,072
  37,173
  39,362
  41,646
  44,028
  46,516
  49,113
Total liabilities and equity, $m
  10,116
  11,460
  13,312
  15,314
  17,465
  19,759
  22,193
  24,766
  27,473
  30,313
  33,285
  36,388
  39,624
  42,992
  46,497
  50,141
  53,928
  57,864
  61,953
  66,204
  70,623
  75,219
  80,000
  84,977
  90,160
  95,560
  101,188
  107,059
  113,183
  119,578
  126,255
Debt-to-equity ratio
  0.953
  0.970
  1.050
  1.120
  1.170
  1.220
  1.260
  1.290
  1.320
  1.340
  1.360
  1.380
  1.400
  1.410
  1.420
  1.430
  1.440
  1.450
  1.460
  1.470
  1.470
  1.480
  1.480
  1.490
  1.490
  1.500
  1.500
  1.510
  1.510
  1.510
  1.520
Adjusted equity ratio
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  509
  1,012
  1,625
  2,293
  3,013
  3,784
  4,606
  5,476
  6,394
  7,359
  8,371
  9,762
  10,867
  12,018
  13,218
  14,467
  15,766
  17,118
  18,524
  19,987
  21,510
  23,095
  24,747
  26,468
  28,262
  30,133
  32,087
  34,126
  36,257
  38,484
  40,812
Depreciation, amort., depletion, $m
  361
  616
  642
  670
  700
  732
  766
  802
  840
  879
  921
  508
  553
  600
  649
  700
  753
  808
  865
  924
  986
  1,050
  1,117
  1,186
  1,258
  1,334
  1,412
  1,494
  1,580
  1,669
  1,762
Funds from operations, $m
  1,033
  1,628
  2,268
  2,963
  3,713
  4,517
  5,372
  6,278
  7,234
  8,239
  9,292
  10,270
  11,420
  12,619
  13,867
  15,167
  16,519
  17,925
  19,389
  20,911
  22,496
  24,145
  25,863
  27,654
  29,520
  31,467
  33,499
  35,620
  37,837
  40,153
  42,575
Change in working capital, $m
  171
  124
  135
  146
  157
  168
  178
  188
  198
  208
  217
  227
  236
  246
  256
  266
  277
  288
  299
  311
  323
  336
  349
  364
  379
  395
  411
  429
  448
  467
  488
Cash from operations, $m
  862
  1,504
  2,132
  2,817
  3,556
  4,349
  5,194
  6,090
  7,036
  8,031
  9,075
  10,043
  11,183
  12,372
  13,611
  14,900
  16,242
  17,638
  19,090
  20,600
  22,173
  23,809
  25,514
  27,290
  29,142
  31,073
  33,088
  35,192
  37,389
  39,686
  42,087
Maintenance CAPEX, $m
  0
  -136
  -160
  -186
  -214
  -244
  -276
  -310
  -346
  -383
  -423
  -465
  -508
  -553
  -600
  -649
  -700
  -753
  -808
  -865
  -924
  -986
  -1,050
  -1,117
  -1,186
  -1,258
  -1,334
  -1,412
  -1,494
  -1,580
  -1,669
New CAPEX, $m
  -165
  -435
  -476
  -514
  -552
  -589
  -625
  -661
  -695
  -729
  -763
  -797
  -831
  -865
  -900
  -936
  -973
  -1,011
  -1,050
  -1,092
  -1,135
  -1,180
  -1,228
  -1,278
  -1,331
  -1,387
  -1,446
  -1,508
  -1,573
  -1,642
  -1,715
Cash from investing activities, $m
  -1,504
  -571
  -636
  -700
  -766
  -833
  -901
  -971
  -1,041
  -1,112
  -1,186
  -1,262
  -1,339
  -1,418
  -1,500
  -1,585
  -1,673
  -1,764
  -1,858
  -1,957
  -2,059
  -2,166
  -2,278
  -2,395
  -2,517
  -2,645
  -2,780
  -2,920
  -3,067
  -3,222
  -3,384
Free cash flow, $m
  -642
  932
  1,497
  2,116
  2,790
  3,516
  4,293
  5,120
  5,995
  6,918
  7,888
  8,782
  9,845
  10,954
  12,111
  13,315
  14,569
  15,874
  17,232
  18,644
  20,114
  21,643
  23,236
  24,895
  26,624
  28,427
  30,308
  32,272
  34,322
  36,464
  38,703
Issuance/(repayment) of debt, $m
  909
  1,035
  1,132
  1,224
  1,314
  1,402
  1,488
  1,572
  1,654
  1,735
  1,816
  1,896
  1,977
  2,058
  2,141
  2,226
  2,314
  2,405
  2,499
  2,597
  2,700
  2,808
  2,922
  3,041
  3,167
  3,299
  3,439
  3,587
  3,742
  3,907
  4,080
Issuance/(repurchase) of shares, $m
  8
  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  
  902
  1,035
  1,132
  1,224
  1,314
  1,402
  1,488
  1,572
  1,654
  1,735
  1,816
  1,896
  1,977
  2,058
  2,141
  2,226
  2,314
  2,405
  2,499
  2,597
  2,700
  2,808
  2,922
  3,041
  3,167
  3,299
  3,439
  3,587
  3,742
  3,907
  4,080
Total cash flow (excl. dividends), $m
  255
  1,967
  2,628
  3,340
  4,104
  4,918
  5,781
  6,691
  7,649
  8,654
  9,704
  10,678
  11,821
  13,012
  14,252
  15,542
  16,883
  18,279
  19,731
  21,241
  22,814
  24,451
  26,158
  27,936
  29,791
  31,727
  33,747
  35,858
  38,064
  40,370
  42,783
Retained Cash Flow (-), $m
  -155
  -658
  -720
  -779
  -836
  -892
  -947
  -1,001
  -1,053
  -1,105
  -1,156
  -1,207
  -1,259
  -1,310
  -1,363
  -1,417
  -1,473
  -1,531
  -1,591
  -1,654
  -1,719
  -1,788
  -1,860
  -1,936
  -2,016
  -2,101
  -2,190
  -2,283
  -2,383
  -2,487
  -2,597
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
 
  1,309
  1,908
  2,561
  3,267
  4,025
  4,833
  5,691
  6,596
  7,549
  8,548
  9,471
  10,563
  11,702
  12,889
  14,124
  15,410
  16,748
  18,140
  19,588
  21,095
  22,664
  24,298
  26,000
  27,775
  29,626
  31,558
  33,575
  35,681
  37,883
  40,185
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  1,219
  1,643
  2,024
  2,352
  2,617
  2,813
  2,936
  2,986
  2,967
  2,883
  2,708
  2,528
  2,311
  2,070
  1,817
  1,561
  1,313
  1,081
  870
  684
  525
  393
  287
  204
  141
  94
  61
  39
  23
  14
Current shareholders' claim on cash, %
  100
  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

Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company's segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company's Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.

FINANCIAL RATIOS  of  Dover (DOV)

Valuation Ratios
P/E Ratio 29
Price to Sales 2.2
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 17.1
Price to Free Cash Flow 21.2
Growth Rates
Sales Growth Rate -2.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 7.1%
Cap. Spend. - 3 Yr. Gr. Rate 3%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 84.4%
Total Debt to Equity 95.3%
Interest Coverage 6
Management Effectiveness
Return On Assets 6.5%
Ret/ On Assets - 3 Yr. Avg. 8.7%
Return On Total Capital 7.4%
Ret/ On T. Cap. - 3 Yr. Avg. 10.3%
Return On Equity 13.7%
Return On Equity - 3 Yr. Avg. 18.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 36.6%
Gross Margin - 3 Yr. Avg. 37.5%
EBITDA Margin 17.4%
EBITDA Margin - 3 Yr. Avg. 18.4%
Operating Margin 11.9%
Oper. Margin - 3 Yr. Avg. 13.6%
Pre-Tax Margin 10.1%
Pre-Tax Margin - 3 Yr. Avg. 11.9%
Net Profit Margin 7.5%
Net Profit Margin - 3 Yr. Avg. 10%
Effective Tax Rate 26.1%
Eff/ Tax Rate - 3 Yr. Avg. 26.9%
Payout Ratio 52.7%

DOV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DOV stock intrinsic value calculation we used $6794 million for the last fiscal year's total revenue generated by Dover. The default revenue input number comes from 2016 income statement of Dover. 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 DOV stock valuation model: a) initial revenue growth rate of 17.4% 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 7.4%, whose default value for DOV is calculated based on our internal credit rating of Dover, 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 Dover.
    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 DOV stock the variable cost ratio is equal to 30.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $4026 million in the base year in the intrinsic value calculation for DOV 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 4.1% for Dover.

Corporate tax rate of 27% is the nominal tax rate for Dover. 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 DOV 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 DOV are equal to 36.9%.

Life of production assets of 18.4 years is the average useful life of capital assets used in Dover 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 DOV is equal to 10.5%. 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 - $3800 million for Dover - 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 155.766 million for Dover 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 Dover at the current share price and the inputted number of shares is $14.8 billion.

RELATED COMPANIES Price Int.Val. Rating
EMR Emerson Electr 65.78 82.73  buy
IEX IDEX 125.77 96.78  sell
ITW Illinois Tool 155.03 96.84  sell
CR Crane 84.11 95.50  hold
GE General Electr 23.83 23.56  hold
NDSN Nordson 124.66 265.34  str.buy

COMPANY NEWS

▶ When Is It Okay For Brands To Get Political?   [Oct-22-17 12:01PM  Forbes]
▶ Why Atlassian, Dover, and athenahealth Jumped Today   [Oct-20-17 04:30PM  Motley Fool]
▶ [$$] Third Point Takes Stake in Dover, Calls for Split   [10:09AM  The Wall Street Journal]
▶ Dover tops Street 3Q forecasts   [07:25AM  Associated Press]
▶ How Safe Is Dover's Dividend?   [Sep-14-17 10:30AM  Motley Fool]
▶ Do-It-Yourself Breakup Talk, Dover Style   [Sep-12-17 11:31AM  Bloomberg]
▶ [$$] Dover to Explore Alternatives for Wellsite Business   [09:38AM  The Wall Street Journal]
▶ 3 Top Dividend Aristocrats to Buy Now   [Sep-03-17 08:15AM  Motley Fool]
▶ Why Is Caterpillar Soaring in 2017?   [Aug-28-17 08:35AM  Motley Fool]
▶ ETFs with exposure to Dover Corp. : August 17, 2017   [Aug-17-17 03:28PM  Capital Cube]
▶ 3 Top Dividend Aristocrats To Own Forever   [Aug-05-17 08:03AM  Motley Fool]
▶ ETFs with exposure to Dover Corp. : August 4, 2017   [Aug-04-17 07:31PM  Capital Cube]
▶ [$$] Dover Explores Strategic Alternatives for Most of Its Energy Business   [Aug-03-17 04:49PM  The Wall Street Journal]
▶ Dover beats Street 2Q forecasts   [Jul-21-17 12:30AM  Associated Press]
▶ So Two Breakup Candidates Walk Into Earnings Day...   [Jul-20-17 12:31PM  Bloomberg]
▶ Should You Buy Dover (DOV) Ahead of Earnings?   [Jul-19-17 08:49AM  Zacks]
▶ 3 History-Making Stocks   [Jul-14-17 03:30PM  Motley Fool]
▶ Better Dividend Aristocrat: 3M or Dover?   [Jul-12-17 01:47PM  GuruFocus.com]
▶ Today's top gainers   [Jul-06-17 05:02PM  CNBC Videos]
▶ Dover Corp. Value Analysis (NYSE:DOV) : July 5, 2017   [Jul-05-17 01:27PM  Capital Cube]
▶ iQ100 up over twenty four percent   [Jun-30-17 05:06PM  CNBC Videos]
▶ 3 Top Industrial Machinery Stocks to Buy in 2017   [May-13-17 11:40AM  Motley Fool]
▶ ETFs with exposure to Dover Corp. : April 24, 2017   [Apr-24-17 02:26PM  Capital Cube]
▶ Bluebirds Are Sighted Over Dover   [Apr-20-17 01:49PM  Bloomberg]
Financial statements of DOV
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.