Intrinsic value of Darden Restaurants - DRI

Previous Close

$82.77

  Intrinsic Value

$113.20

stock screener

  Rating & Target

buy

+37%

  Value-price divergence*

+445%

Previous close

$82.77

 
Intrinsic value

$113.20

 
Up/down potential

+37%

 
Rating

buy

 
Value-price divergence*

+445%

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

We calculate the intrinsic value of DRI 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 10.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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, %
  3.40
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
  6.20
  6.08
  5.97
  5.88
  5.79
  5.71
  5.64
  5.57
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.27
  5.25
  5.22
  5.20
  5.18
  5.16
  5.15
Revenue, $m
  7,170
  7,751
  8,355
  8,982
  9,634
  10,312
  11,016
  11,748
  12,510
  13,303
  14,127
  14,986
  15,882
  16,815
  17,788
  18,804
  19,864
  20,971
  22,128
  23,337
  24,602
  25,925
  27,309
  28,758
  30,275
  31,863
  33,527
  35,271
  37,098
  39,013
  41,021
Variable operating expenses, $m
 
  5,966
  6,422
  6,895
  7,387
  7,898
  8,429
  8,981
  9,556
  10,153
  10,776
  11,303
  11,978
  12,682
  13,416
  14,182
  14,982
  15,817
  16,690
  17,602
  18,556
  19,553
  20,597
  21,690
  22,834
  24,032
  25,287
  26,602
  27,981
  29,425
  30,939
Fixed operating expenses, $m
 
  1,013
  1,038
  1,064
  1,091
  1,118
  1,146
  1,174
  1,204
  1,234
  1,265
  1,296
  1,329
  1,362
  1,396
  1,431
  1,467
  1,503
  1,541
  1,579
  1,619
  1,659
  1,701
  1,743
  1,787
  1,832
  1,877
  1,924
  1,973
  2,022
  2,072
Total operating expenses, $m
  6,493
  6,979
  7,460
  7,959
  8,478
  9,016
  9,575
  10,155
  10,760
  11,387
  12,041
  12,599
  13,307
  14,044
  14,812
  15,613
  16,449
  17,320
  18,231
  19,181
  20,175
  21,212
  22,298
  23,433
  24,621
  25,864
  27,164
  28,526
  29,954
  31,447
  33,011
Operating income, $m
  678
  772
  895
  1,023
  1,157
  1,296
  1,441
  1,593
  1,751
  1,915
  2,087
  2,387
  2,574
  2,770
  2,976
  3,190
  3,415
  3,651
  3,897
  4,156
  4,427
  4,712
  5,011
  5,324
  5,653
  5,999
  6,362
  6,744
  7,145
  7,566
  8,009
EBITDA, $m
  951
  1,111
  1,251
  1,397
  1,549
  1,708
  1,873
  2,045
  2,224
  2,411
  2,606
  2,810
  3,023
  3,245
  3,478
  3,721
  3,976
  4,243
  4,522
  4,815
  5,122
  5,444
  5,782
  6,136
  6,508
  6,899
  7,309
  7,740
  8,193
  8,668
  9,168
Interest expense (income), $m
  37
  51
  65
  81
  97
  114
  131
  149
  168
  187
  208
  229
  251
  274
  298
  322
  348
  376
  404
  434
  465
  497
  531
  566
  603
  642
  683
  726
  770
  817
  866
Earnings before tax, $m
  637
  721
  830
  942
  1,060
  1,183
  1,310
  1,444
  1,583
  1,728
  1,880
  2,158
  2,324
  2,497
  2,678
  2,868
  3,067
  3,275
  3,493
  3,722
  3,963
  4,215
  4,480
  4,758
  5,050
  5,357
  5,679
  6,018
  6,375
  6,749
  7,143
Tax expense, $m
  154
  195
  224
  254
  286
  319
  354
  390
  427
  467
  507
  583
  627
  674
  723
  774
  828
  884
  943
  1,005
  1,070
  1,138
  1,210
  1,285
  1,364
  1,446
  1,533
  1,625
  1,721
  1,822
  1,929
Net income, $m
  479
  527
  606
  688
  774
  863
  957
  1,054
  1,155
  1,261
  1,372
  1,575
  1,696
  1,823
  1,955
  2,094
  2,239
  2,391
  2,550
  2,717
  2,893
  3,077
  3,270
  3,473
  3,687
  3,911
  4,146
  4,393
  4,653
  4,927
  5,214

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  233
  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
  5,504
  5,699
  6,143
  6,604
  7,084
  7,582
  8,100
  8,639
  9,199
  9,781
  10,388
  11,019
  11,678
  12,364
  13,079
  13,826
  14,606
  15,420
  16,271
  17,160
  18,090
  19,062
  20,080
  21,145
  22,261
  23,429
  24,652
  25,934
  27,278
  28,686
  30,162
Adjusted assets (=assets-cash), $m
  5,271
  5,699
  6,143
  6,604
  7,084
  7,582
  8,100
  8,639
  9,199
  9,781
  10,388
  11,019
  11,678
  12,364
  13,079
  13,826
  14,606
  15,420
  16,271
  17,160
  18,090
  19,062
  20,080
  21,145
  22,261
  23,429
  24,652
  25,934
  27,278
  28,686
  30,162
Revenue / Adjusted assets
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
  1.360
Average production assets, $m
  2,999
  3,240
  3,492
  3,755
  4,027
  4,310
  4,605
  4,911
  5,229
  5,560
  5,905
  6,264
  6,639
  7,029
  7,435
  7,860
  8,303
  8,766
  9,249
  9,755
  10,284
  10,837
  11,415
  12,021
  12,655
  13,319
  14,014
  14,743
  15,507
  16,307
  17,147
Working capital, $m
  -489
  -783
  -844
  -907
  -973
  -1,041
  -1,113
  -1,187
  -1,264
  -1,344
  -1,427
  -1,514
  -1,604
  -1,698
  -1,797
  -1,899
  -2,006
  -2,118
  -2,235
  -2,357
  -2,485
  -2,618
  -2,758
  -2,905
  -3,058
  -3,218
  -3,386
  -3,562
  -3,747
  -3,940
  -4,143
Total debt, $m
  937
  1,211
  1,497
  1,795
  2,104
  2,426
  2,760
  3,107
  3,468
  3,844
  4,235
  4,643
  5,067
  5,510
  5,971
  6,453
  6,956
  7,481
  8,030
  8,603
  9,203
  9,830
  10,487
  11,174
  11,893
  12,647
  13,436
  14,263
  15,129
  16,037
  16,990
Total liabilities, $m
  3,403
  3,676
  3,962
  4,260
  4,569
  4,891
  5,225
  5,572
  5,933
  6,309
  6,700
  7,108
  7,532
  7,975
  8,436
  8,918
  9,421
  9,946
  10,495
  11,068
  11,668
  12,295
  12,952
  13,639
  14,358
  15,112
  15,901
  16,728
  17,594
  18,502
  19,455
Total equity, $m
  2,102
  2,023
  2,181
  2,345
  2,515
  2,692
  2,876
  3,067
  3,265
  3,472
  3,688
  3,912
  4,146
  4,389
  4,643
  4,908
  5,185
  5,474
  5,776
  6,092
  6,422
  6,767
  7,128
  7,507
  7,903
  8,317
  8,752
  9,207
  9,684
  10,184
  10,708
Total liabilities and equity, $m
  5,505
  5,699
  6,143
  6,605
  7,084
  7,583
  8,101
  8,639
  9,198
  9,781
  10,388
  11,020
  11,678
  12,364
  13,079
  13,826
  14,606
  15,420
  16,271
  17,160
  18,090
  19,062
  20,080
  21,146
  22,261
  23,429
  24,653
  25,935
  27,278
  28,686
  30,163
Debt-to-equity ratio
  0.446
  0.600
  0.690
  0.770
  0.840
  0.900
  0.960
  1.010
  1.060
  1.110
  1.150
  1.190
  1.220
  1.260
  1.290
  1.310
  1.340
  1.370
  1.390
  1.410
  1.430
  1.450
  1.470
  1.490
  1.500
  1.520
  1.540
  1.550
  1.560
  1.570
  1.590
Adjusted equity ratio
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355
  0.355

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  479
  527
  606
  688
  774
  863
  957
  1,054
  1,155
  1,261
  1,372
  1,575
  1,696
  1,823
  1,955
  2,094
  2,239
  2,391
  2,550
  2,717
  2,893
  3,077
  3,270
  3,473
  3,687
  3,911
  4,146
  4,393
  4,653
  4,927
  5,214
Depreciation, amort., depletion, $m
  273
  339
  356
  374
  392
  411
  431
  452
  474
  496
  519
  423
  449
  475
  502
  531
  561
  592
  625
  659
  695
  732
  771
  812
  855
  900
  947
  996
  1,048
  1,102
  1,159
Funds from operations, $m
  1,052
  866
  962
  1,062
  1,166
  1,275
  1,388
  1,506
  1,629
  1,757
  1,891
  1,999
  2,145
  2,298
  2,457
  2,625
  2,800
  2,983
  3,175
  3,376
  3,588
  3,809
  4,042
  4,285
  4,542
  4,810
  5,093
  5,390
  5,701
  6,029
  6,373
Change in working capital, $m
  152
  -59
  -61
  -63
  -66
  -68
  -71
  -74
  -77
  -80
  -83
  -87
  -90
  -94
  -98
  -103
  -107
  -112
  -117
  -122
  -128
  -134
  -140
  -146
  -153
  -160
  -168
  -176
  -185
  -193
  -203
Cash from operations, $m
  900
  924
  1,023
  1,125
  1,232
  1,343
  1,459
  1,580
  1,706
  1,837
  1,975
  2,085
  2,235
  2,392
  2,556
  2,727
  2,907
  3,095
  3,292
  3,499
  3,715
  3,943
  4,181
  4,432
  4,695
  4,971
  5,261
  5,566
  5,886
  6,222
  6,576
Maintenance CAPEX, $m
  0
  -203
  -219
  -236
  -254
  -272
  -291
  -311
  -332
  -353
  -376
  -399
  -423
  -449
  -475
  -502
  -531
  -561
  -592
  -625
  -659
  -695
  -732
  -771
  -812
  -855
  -900
  -947
  -996
  -1,048
  -1,102
New CAPEX, $m
  -318
  -241
  -252
  -262
  -273
  -283
  -294
  -306
  -318
  -331
  -345
  -359
  -374
  -390
  -407
  -424
  -443
  -463
  -484
  -506
  -529
  -553
  -579
  -606
  -634
  -664
  -696
  -729
  -764
  -801
  -839
Cash from investing activities, $m
  -1,071
  -444
  -471
  -498
  -527
  -555
  -585
  -617
  -650
  -684
  -721
  -758
  -797
  -839
  -882
  -926
  -974
  -1,024
  -1,076
  -1,131
  -1,188
  -1,248
  -1,311
  -1,377
  -1,446
  -1,519
  -1,596
  -1,676
  -1,760
  -1,849
  -1,941
Free cash flow, $m
  -171
  480
  551
  627
  706
  788
  873
  963
  1,056
  1,153
  1,254
  1,327
  1,438
  1,553
  1,674
  1,800
  1,933
  2,071
  2,216
  2,368
  2,528
  2,695
  2,871
  3,055
  3,248
  3,452
  3,665
  3,890
  4,126
  4,374
  4,635
Issuance/(repayment) of debt, $m
  502
  274
  286
  298
  309
  321
  334
  347
  361
  376
  391
  407
  425
  443
  462
  482
  503
  525
  549
  574
  600
  627
  656
  687
  719
  753
  789
  827
  867
  908
  952
Issuance/(repurchase) of shares, $m
  -117
  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  
  408
  274
  286
  298
  309
  321
  334
  347
  361
  376
  391
  407
  425
  443
  462
  482
  503
  525
  549
  574
  600
  627
  656
  687
  719
  753
  789
  827
  867
  908
  952
Total cash flow (excl. dividends), $m
  237
  754
  838
  925
  1,015
  1,109
  1,207
  1,310
  1,417
  1,529
  1,645
  1,735
  1,862
  1,996
  2,136
  2,282
  2,435
  2,596
  2,765
  2,942
  3,127
  3,322
  3,527
  3,742
  3,968
  4,205
  4,455
  4,717
  4,992
  5,282
  5,587
Retained Cash Flow (-), $m
  -150
  -154
  -158
  -164
  -170
  -177
  -184
  -191
  -199
  -207
  -215
  -224
  -234
  -244
  -254
  -265
  -277
  -289
  -302
  -316
  -330
  -345
  -361
  -378
  -396
  -415
  -434
  -455
  -477
  -500
  -524
Prev. year cash balance distribution, $m
 
  233
  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
 
  833
  680
  761
  845
  932
  1,024
  1,119
  1,218
  1,322
  1,430
  1,511
  1,629
  1,752
  1,882
  2,017
  2,159
  2,307
  2,463
  2,626
  2,797
  2,977
  3,166
  3,364
  3,572
  3,791
  4,020
  4,262
  4,515
  4,782
  5,063
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  799
  623
  662
  696
  723
  743
  756
  761
  759
  750
  717
  695
  666
  632
  592
  549
  502
  454
  404
  355
  308
  263
  220
  182
  147
  117
  91
  70
  52
  38
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

Darden Restaurants, Inc. is a full-service restaurant company. The Company owned and operated 1,536 restaurants through its subsidiaries in the United States and Canada, as of May 29, 2016. The Company's segments include Olive Garden, LongHorn Steakhouse, Fine Dining (which includes The Capital Grille, and Eddie V's Prime Seafood and Wildfish Seafood Grille (Eddie V's)) and Other Business (which includes Yard House, Seasons 52, Bahama Breeze, consumer-packaged goods and franchise revenues). As of May 29, 2016, the Company also had 50 restaurants operated by independent third parties pursuant to area development and franchise agreements. Olive Garden's menu includes a range of authentic Italian foods featuring fresh ingredients and a selection of imported Italian wines. LongHorn Steakhouse restaurants feature a range of menu items, including fresh steaks and chicken, as well as salmon, shrimp, ribs, pork chops, burgers and prime rib.

FINANCIAL RATIOS  of  Darden Restaurants (DRI)

Valuation Ratios
P/E Ratio 21.7
Price to Sales 1.4
Price to Book 4.9
Price to Tangible Book
Price to Cash Flow 11.5
Price to Free Cash Flow 17.8
Growth Rates
Sales Growth Rate 3.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 26.2%
Cap. Spend. - 3 Yr. Gr. Rate -6.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0.2
LT Debt to Equity 44.6%
Total Debt to Equity 44.6%
Interest Coverage 18
Management Effectiveness
Return On Assets 10.1%
Ret/ On Assets - 3 Yr. Avg. 10.9%
Return On Total Capital 17.6%
Ret/ On T. Cap. - 3 Yr. Avg. 15.4%
Return On Equity 23.6%
Return On Equity - 3 Yr. Avg. 24.2%
Asset Turnover 1.4
Profitability Ratios
Gross Margin 21.8%
Gross Margin - 3 Yr. Avg. 21.8%
EBITDA Margin 13.2%
EBITDA Margin - 3 Yr. Avg. 11.8%
Operating Margin 9.4%
Oper. Margin - 3 Yr. Avg. 8%
Pre-Tax Margin 8.9%
Pre-Tax Margin - 3 Yr. Avg. 6%
Net Profit Margin 6.7%
Net Profit Margin - 3 Yr. Avg. 7.5%
Effective Tax Rate 24.2%
Eff/ Tax Rate - 3 Yr. Avg. 10.7%
Payout Ratio 58.2%

DRI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DRI stock intrinsic value calculation we used $7170 million for the last fiscal year's total revenue generated by Darden Restaurants. The default revenue input number comes from 2017 income statement of Darden Restaurants. 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 DRI stock valuation model: a) initial revenue growth rate of 8.1% 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 4.3%, whose default value for DRI is calculated based on our internal credit rating of Darden Restaurants, 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 Darden Restaurants.
    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 DRI stock the variable cost ratio is equal to 77.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $988 million in the base year in the intrinsic value calculation for DRI 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 Darden Restaurants.

Corporate tax rate of 27% is the nominal tax rate for Darden Restaurants. 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 DRI 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 DRI are equal to 41.8%.

Life of production assets of 14.8 years is the average useful life of capital assets used in Darden Restaurants 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 DRI is equal to -10.1%. 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 - $2102 million for Darden Restaurants - 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 127.271 million for Darden Restaurants 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 Darden Restaurants at the current share price and the inputted number of shares is $10.5 billion.

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COMPANY NEWS

▶ Hurricanes Harvey and Irma Hurt the Restaurant Industry   [Oct-19-17 12:37PM  Motley Fool]
▶ Is It Time To Buy Darden Restaurants Inc (DRI)?   [Oct-13-17 08:37AM  Simply Wall St.]
▶ Stifel initiates coverage on the food stocks   [Oct-03-17 03:05PM  CNBC Videos]
▶ [$$] Memory Chip Maker Micron Elbows Ahead   [Sep-30-17 12:52AM  Barrons.com]
▶ Why Darden Restaurants EBIT Margins Fell in Fiscal 1Q18   [Sep-29-17 10:42AM  Market Realist]
▶ Why Dardens Same-Store Sales Growth Was Lower Than Estimates   [Sep-28-17 05:36PM  Market Realist]
▶ Darden Restaurants tops Street 1Q forecasts   [Sep-26-17 10:18PM  Associated Press]
▶ What Happened in the Stock Market Today   [04:59PM  Motley Fool]
▶ Darden Restaurants Slips on Earnings Miss   [12:48PM  GuruFocus.com]
▶ Q3 Earnings Season Preview   [Sep-22-17 07:26PM  Zacks]
▶ Dardens EBIT Margin Is Expected to Rise in Fiscal 1Q18   [Sep-20-17 03:37PM  Market Realist]
▶ Now That's Italian!   [Sep-13-17 02:44PM  The Wall Street Journal]
▶ Dave & Buster's Cuts Full-Year View After Q2 Revenue Misses   [04:14PM  Investor's Business Daily]
▶ 3 Stocks That Pay You   [Sep-01-17 02:40PM  Motley Fool]
▶ Stocks Generating Improved Relative Strength: Darden Restaurants   [Aug-28-17 03:00AM  Investor's Business Daily]
▶ Del Frisco's to take over Cheddar's North Texas headquarters at Cypress Waters   [Aug-23-17 02:45PM  American City Business Journals]
▶ Cheddar's Scratch Kitchen shuttering headquarters, laying off 69 workers   [Aug-21-17 03:05PM  American City Business Journals]
▶ 3 Stocks to Buy With Dividends Yielding More Than 3%   [Aug-14-17 07:50PM  Motley Fool]
Financial statements of DRI
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.

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