Intrinsic value of Ford Motor Company - F

Previous Close

$9.55

  Intrinsic Value

$2.26

stock screener

  Rating & Target

str. sell

-76%

Previous close

$9.55

 
Intrinsic value

$2.26

 
Up/down potential

-76%

 
Rating

str. sell

We calculate the intrinsic value of F 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 38.0

 

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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  163,545
  167,306
  171,606
  176,433
  181,782
  187,651
  194,042
  200,960
  208,413
  216,411
  224,968
  234,098
  243,820
  254,151
  265,115
  276,733
  289,031
  302,037
  315,778
  330,288
  345,597
  361,743
  378,761
  396,692
  415,577
  435,461
  456,390
  478,414
  501,583
  525,954
Variable operating expenses, $m
  158,475
  162,120
  166,286
  170,964
  176,147
  181,834
  188,027
  194,730
  201,952
  209,702
  217,994
  226,841
  236,261
  246,273
  256,896
  268,154
  280,071
  292,673
  305,989
  320,049
  334,884
  350,529
  367,020
  384,395
  402,695
  421,962
  442,242
  463,583
  486,034
  509,649
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  158,475
  162,120
  166,286
  170,964
  176,147
  181,834
  188,027
  194,730
  201,952
  209,702
  217,994
  226,841
  236,261
  246,273
  256,896
  268,154
  280,071
  292,673
  305,989
  320,049
  334,884
  350,529
  367,020
  384,395
  402,695
  421,962
  442,242
  463,583
  486,034
  509,649
Operating income, $m
  5,070
  5,186
  5,320
  5,469
  5,635
  5,817
  6,015
  6,230
  6,461
  6,709
  6,974
  7,257
  7,558
  7,879
  8,219
  8,579
  8,960
  9,363
  9,789
  10,239
  10,714
  11,214
  11,742
  12,297
  12,883
  13,499
  14,148
  14,831
  15,549
  16,305
EBITDA, $m
  12,364
  12,648
  12,973
  13,338
  13,743
  14,186
  14,670
  15,193
  15,756
  16,361
  17,008
  17,698
  18,433
  19,214
  20,043
  20,921
  21,851
  22,834
  23,873
  24,970
  26,127
  27,348
  28,634
  29,990
  31,418
  32,921
  34,503
  36,168
  37,920
  39,762
Interest expense (income), $m
  0
  8,328
  8,567
  8,846
  9,166
  9,524
  9,922
  10,358
  10,833
  11,347
  11,901
  12,495
  13,131
  13,809
  14,531
  15,299
  16,114
  16,977
  17,891
  18,857
  19,878
  20,956
  22,094
  23,294
  24,558
  25,890
  27,294
  28,771
  30,326
  31,963
  33,684
Earnings before tax, $m
  -3,258
  -3,380
  -3,526
  -3,696
  -3,889
  -4,105
  -4,343
  -4,603
  -4,886
  -5,192
  -5,521
  -5,874
  -6,251
  -6,653
  -7,081
  -7,535
  -8,017
  -8,528
  -9,068
  -9,639
  -10,243
  -10,880
  -11,552
  -12,261
  -13,008
  -13,794
  -14,623
  -15,495
  -16,414
  -17,380
Tax expense, $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
Net income, $m
  -3,258
  -3,380
  -3,526
  -3,696
  -3,889
  -4,105
  -4,343
  -4,603
  -4,886
  -5,192
  -5,521
  -5,874
  -6,251
  -6,653
  -7,081
  -7,535
  -8,017
  -8,528
  -9,068
  -9,639
  -10,243
  -10,880
  -11,552
  -12,261
  -13,008
  -13,794
  -14,623
  -15,495
  -16,414
  -17,380

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
  261,672
  267,690
  274,570
  282,293
  290,852
  300,242
  310,467
  321,536
  333,460
  346,257
  359,948
  374,557
  390,111
  406,642
  424,183
  442,772
  462,450
  483,258
  505,245
  528,460
  552,956
  578,788
  606,018
  634,707
  664,924
  696,738
  730,224
  765,462
  802,533
  841,526
Adjusted assets (=assets-cash), $m
  261,672
  267,690
  274,570
  282,293
  290,852
  300,242
  310,467
  321,536
  333,460
  346,257
  359,948
  374,557
  390,111
  406,642
  424,183
  442,772
  462,450
  483,258
  505,245
  528,460
  552,956
  578,788
  606,018
  634,707
  664,924
  696,738
  730,224
  765,462
  802,533
  841,526
Revenue / Adjusted assets
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
  0.625
Average production assets, $m
  36,470
  37,309
  38,268
  39,345
  40,537
  41,846
  43,271
  44,814
  46,476
  48,260
  50,168
  52,204
  54,372
  56,676
  59,121
  61,711
  64,454
  67,354
  70,419
  73,654
  77,068
  80,669
  84,464
  88,462
  92,674
  97,108
  101,775
  106,686
  111,853
  117,288
Working capital, $m
  39,414
  40,321
  41,357
  42,520
  43,810
  45,224
  46,764
  48,431
  50,227
  52,155
  54,217
  56,418
  58,761
  61,250
  63,893
  66,693
  69,656
  72,791
  76,103
  79,599
  83,289
  87,180
  91,281
  95,603
  100,154
  104,946
  109,990
  115,298
  120,882
  126,755
Total debt, $m
  158,643
  163,818
  169,735
  176,377
  183,737
  191,813
  200,607
  210,126
  220,381
  231,386
  243,161
  255,724
  269,101
  283,317
  298,403
  314,389
  331,312
  349,207
  368,116
  388,081
  409,147
  431,363
  454,780
  479,453
  505,440
  532,800
  561,598
  591,902
  623,783
  657,317
Total liabilities, $m
  225,038
  230,213
  236,130
  242,772
  250,132
  258,208
  267,002
  276,521
  286,776
  297,781
  309,556
  322,119
  335,496
  349,712
  364,798
  380,784
  397,707
  415,602
  434,511
  454,476
  475,542
  497,758
  521,175
  545,848
  571,835
  599,195
  627,993
  658,297
  690,178
  723,712
Total equity, $m
  36,634
  37,477
  38,440
  39,521
  40,719
  42,034
  43,465
  45,015
  46,684
  48,476
  50,393
  52,438
  54,616
  56,930
  59,386
  61,988
  64,743
  67,656
  70,734
  73,984
  77,414
  81,030
  84,842
  88,859
  93,089
  97,543
  102,231
  107,165
  112,355
  117,814
Total liabilities and equity, $m
  261,672
  267,690
  274,570
  282,293
  290,851
  300,242
  310,467
  321,536
  333,460
  346,257
  359,949
  374,557
  390,112
  406,642
  424,184
  442,772
  462,450
  483,258
  505,245
  528,460
  552,956
  578,788
  606,017
  634,707
  664,924
  696,738
  730,224
  765,462
  802,533
  841,526
Debt-to-equity ratio
  4.330
  4.370
  4.420
  4.460
  4.510
  4.560
  4.620
  4.670
  4.720
  4.770
  4.830
  4.880
  4.930
  4.980
  5.020
  5.070
  5.120
  5.160
  5.200
  5.250
  5.290
  5.320
  5.360
  5.400
  5.430
  5.460
  5.490
  5.520
  5.550
  5.580
Adjusted equity ratio
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140
  0.140

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -3,258
  -3,380
  -3,526
  -3,696
  -3,889
  -4,105
  -4,343
  -4,603
  -4,886
  -5,192
  -5,521
  -5,874
  -6,251
  -6,653
  -7,081
  -7,535
  -8,017
  -8,528
  -9,068
  -9,639
  -10,243
  -10,880
  -11,552
  -12,261
  -13,008
  -13,794
  -14,623
  -15,495
  -16,414
  -17,380
Depreciation, amort., depletion, $m
  7,294
  7,462
  7,654
  7,869
  8,107
  8,369
  8,654
  8,963
  9,295
  9,652
  10,034
  10,441
  10,874
  11,335
  11,824
  12,342
  12,891
  13,471
  14,084
  14,731
  15,414
  16,134
  16,893
  17,692
  18,535
  19,422
  20,355
  21,337
  22,371
  23,458
Funds from operations, $m
  4,036
  4,082
  4,127
  4,173
  4,218
  4,265
  4,312
  4,360
  4,409
  4,460
  4,513
  4,567
  4,624
  4,682
  4,744
  4,807
  4,874
  4,943
  5,016
  5,091
  5,171
  5,254
  5,341
  5,432
  5,527
  5,627
  5,732
  5,842
  5,957
  6,078
Change in working capital, $m
  773
  907
  1,036
  1,163
  1,289
  1,414
  1,540
  1,667
  1,796
  1,928
  2,062
  2,200
  2,343
  2,490
  2,642
  2,800
  2,964
  3,134
  3,312
  3,497
  3,690
  3,891
  4,101
  4,321
  4,551
  4,792
  5,044
  5,308
  5,584
  5,873
Cash from operations, $m
  3,264
  3,175
  3,091
  3,009
  2,929
  2,850
  2,771
  2,693
  2,613
  2,533
  2,451
  2,367
  2,281
  2,192
  2,101
  2,007
  1,910
  1,809
  1,704
  1,595
  1,481
  1,363
  1,239
  1,110
  976
  835
  688
  534
  373
  205
Maintenance CAPEX, $m
  -7,151
  -7,294
  -7,462
  -7,654
  -7,869
  -8,107
  -8,369
  -8,654
  -8,963
  -9,295
  -9,652
  -10,034
  -10,441
  -10,874
  -11,335
  -11,824
  -12,342
  -12,891
  -13,471
  -14,084
  -14,731
  -15,414
  -16,134
  -16,893
  -17,692
  -18,535
  -19,422
  -20,355
  -21,337
  -22,371
New CAPEX, $m
  -718
  -839
  -959
  -1,076
  -1,193
  -1,309
  -1,425
  -1,543
  -1,662
  -1,784
  -1,908
  -2,036
  -2,168
  -2,304
  -2,445
  -2,591
  -2,743
  -2,900
  -3,064
  -3,236
  -3,414
  -3,600
  -3,795
  -3,999
  -4,211
  -4,434
  -4,667
  -4,911
  -5,167
  -5,435
Cash from investing activities, $m
  -7,869
  -8,133
  -8,421
  -8,730
  -9,062
  -9,416
  -9,794
  -10,197
  -10,625
  -11,079
  -11,560
  -12,070
  -12,609
  -13,178
  -13,780
  -14,415
  -15,085
  -15,791
  -16,535
  -17,320
  -18,145
  -19,014
  -19,929
  -20,892
  -21,903
  -22,969
  -24,089
  -25,266
  -26,504
  -27,806
Free cash flow, $m
  -4,605
  -4,958
  -5,330
  -5,721
  -6,132
  -6,566
  -7,023
  -7,504
  -8,012
  -8,546
  -9,110
  -9,703
  -10,328
  -10,986
  -11,679
  -12,408
  -13,175
  -13,982
  -14,831
  -15,725
  -16,664
  -17,651
  -18,690
  -19,781
  -20,928
  -22,134
  -23,401
  -24,732
  -26,131
  -27,601
Issuance/(repayment) of debt, $m
  4,430
  5,176
  5,916
  6,642
  7,360
  8,076
  8,794
  9,519
  10,255
  11,006
  11,774
  12,564
  13,377
  14,216
  15,086
  15,987
  16,922
  17,896
  18,909
  19,965
  21,066
  22,216
  23,417
  24,673
  25,986
  27,360
  28,798
  30,304
  31,881
  33,534
Issuance/(repurchase) of shares, $m
  3,960
  4,223
  4,490
  4,778
  5,087
  5,419
  5,774
  6,153
  6,555
  6,983
  7,438
  7,919
  8,428
  8,967
  9,536
  10,138
  10,772
  11,441
  12,146
  12,889
  13,672
  14,496
  15,364
  16,277
  17,238
  18,248
  19,311
  20,429
  21,604
  22,839
Cash from financing (excl. dividends), $m  
  8,390
  9,399
  10,406
  11,420
  12,447
  13,495
  14,568
  15,672
  16,810
  17,989
  19,212
  20,483
  21,805
  23,183
  24,622
  26,125
  27,694
  29,337
  31,055
  32,854
  34,738
  36,712
  38,781
  40,950
  43,224
  45,608
  48,109
  50,733
  53,485
  56,373
Total cash flow (excl. dividends), $m
  3,784
  4,441
  5,076
  5,699
  6,315
  6,929
  7,545
  8,167
  8,799
  9,443
  10,102
  10,779
  11,477
  12,198
  12,943
  13,716
  14,519
  15,354
  16,224
  17,130
  18,075
  19,061
  20,092
  21,169
  22,296
  23,475
  24,709
  26,001
  27,354
  28,772
Retained Cash Flow (-), $m
  -3,960
  -4,223
  -4,490
  -4,778
  -5,087
  -5,419
  -5,774
  -6,153
  -6,555
  -6,983
  -7,438
  -7,919
  -8,428
  -8,967
  -9,536
  -10,138
  -10,772
  -11,441
  -12,146
  -12,889
  -13,672
  -14,496
  -15,364
  -16,277
  -17,238
  -18,248
  -19,311
  -20,429
  -21,604
  -22,839
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
  -175
  218
  587
  922
  1,228
  1,510
  1,771
  2,015
  2,243
  2,459
  2,665
  2,861
  3,049
  3,231
  3,407
  3,579
  3,747
  3,913
  4,077
  4,240
  4,402
  4,565
  4,728
  4,892
  5,058
  5,226
  5,398
  5,572
  5,750
  5,933
Discount rate, %
  9.60
  10.08
  10.58
  11.11
  11.67
  12.25
  12.86
  13.51
  14.18
  14.89
  15.64
  16.42
  17.24
  18.10
  19.01
  19.96
  20.96
  22.00
  23.10
  24.26
  25.47
  26.75
  28.08
  29.49
  30.96
  32.51
  34.13
  35.84
  37.63
  39.51
PV of cash for distribution, $m
  -160
  180
  434
  605
  707
  755
  759
  731
  680
  614
  539
  461
  386
  315
  250
  195
  148
  109
  79
  55
  38
  25
  16
  10
  6
  3
  2
  1
  1
  0
Current shareholders' claim on cash, %
  90.6
  81.7
  73.4
  65.6
  58.5
  52.0
  46.0
  40.6
  35.7
  31.2
  27.3
  23.7
  20.6
  17.8
  15.4
  13.3
  11.4
  9.8
  8.3
  7.1
  6.1
  5.1
  4.4
  3.7
  3.1
  2.6
  2.2
  1.9
  1.6
  1.3

Ford Motor Company is a global automotive and mobility company. The Company's business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world. The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment.

FINANCIAL RATIOS  of  Ford Motor Company (F)

Valuation Ratios
P/E Ratio 8.4
Price to Sales 0.3
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 2
Price to Free Cash Flow 3
Growth Rates
Sales Growth Rate 1.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -2.8%
Cap. Spend. - 3 Yr. Gr. Rate 1.2%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 319.9%
Total Debt to Equity 490.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 2%
Ret/ On Assets - 3 Yr. Avg. 2%
Return On Total Capital 2.8%
Ret/ On T. Cap. - 3 Yr. Avg. 2.8%
Return On Equity 15.9%
Return On Equity - 3 Yr. Avg. 16.2%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 19.6%
Gross Margin - 3 Yr. Avg. 15.4%
EBITDA Margin 10.4%
EBITDA Margin - 3 Yr. Avg. 9.5%
Operating Margin 2.7%
Oper. Margin - 3 Yr. Avg. 2.7%
Pre-Tax Margin 4.5%
Pre-Tax Margin - 3 Yr. Avg. 4.1%
Net Profit Margin 3%
Net Profit Margin - 3 Yr. Avg. 2.9%
Effective Tax Rate 32.2%
Eff/ Tax Rate - 3 Yr. Avg. 20.2%
Payout Ratio 73.5%

F stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the F stock intrinsic value calculation we used $160338 million for the last fiscal year's total revenue generated by Ford Motor Company. The default revenue input number comes from 0001 income statement of Ford Motor Company. 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 F stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.6%, whose default value for F is calculated based on our internal credit rating of Ford Motor Company, 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 Ford Motor Company.
    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 F stock the variable cost ratio is equal to 96.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for F 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 Ford Motor Company.

Corporate tax rate of 27% is the nominal tax rate for Ford Motor Company. 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 F 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 F are equal to 22.3%.

Life of production assets of 4.3 years is the average useful life of capital assets used in Ford Motor Company 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 F is equal to 24.1%. 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 - $35932 million for Ford Motor Company - 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 3978.648 million for Ford Motor Company 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 Ford Motor Company at the current share price and the inputted number of shares is $38.0 billion.

RELATED COMPANIES Price Int.Val. Rating
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