Intrinsic value of Ford Motor - F

Previous Close

$9.78

  Intrinsic Value

$2.49

stock screener

  Rating & Target

str. sell

-75%

Previous close

$9.78

 
Intrinsic value

$2.49

 
Up/down potential

-75%

 
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 38.3

 

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
  159,912
  163,589
  167,794
  172,514
  177,744
  183,482
  189,731
  196,495
  203,783
  211,603
  219,970
  228,898
  238,403
  248,505
  259,225
  270,585
  282,610
  295,327
  308,763
  322,950
  337,920
  353,706
  370,347
  387,879
  406,345
  425,787
  446,251
  467,785
  490,440
  514,269
Variable operating expenses, $m
  153,835
  157,373
  161,418
  165,958
  170,990
  176,510
  182,521
  189,029
  196,039
  203,562
  211,611
  220,199
  229,344
  239,062
  249,374
  260,303
  271,871
  284,104
  297,030
  310,678
  325,079
  340,266
  356,274
  373,140
  390,904
  409,607
  429,294
  450,010
  471,803
  494,727
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
  153,835
  157,373
  161,418
  165,958
  170,990
  176,510
  182,521
  189,029
  196,039
  203,562
  211,611
  220,199
  229,344
  239,062
  249,374
  260,303
  271,871
  284,104
  297,030
  310,678
  325,079
  340,266
  356,274
  373,140
  390,904
  409,607
  429,294
  450,010
  471,803
  494,727
Operating income, $m
  6,077
  6,216
  6,376
  6,556
  6,754
  6,972
  7,210
  7,467
  7,744
  8,041
  8,359
  8,698
  9,059
  9,443
  9,851
  10,282
  10,739
  11,222
  11,733
  12,272
  12,841
  13,441
  14,073
  14,739
  15,441
  16,180
  16,958
  17,776
  18,637
  19,542
EBITDA, $m
  12,953
  13,251
  13,591
  13,974
  14,397
  14,862
  15,368
  15,916
  16,506
  17,140
  17,818
  18,541
  19,311
  20,129
  20,997
  21,917
  22,891
  23,921
  25,010
  26,159
  27,371
  28,650
  29,998
  31,418
  32,914
  34,489
  36,146
  37,891
  39,726
  41,656
Interest expense (income), $m
  0
  8,331
  8,577
  8,860
  9,182
  9,545
  9,947
  10,388
  10,868
  11,387
  11,947
  12,548
  13,190
  13,876
  14,606
  15,382
  16,205
  17,078
  18,002
  18,979
  20,011
  21,100
  22,250
  23,463
  24,741
  26,088
  27,506
  28,999
  30,571
  32,225
  33,966
Earnings before tax, $m
  -2,255
  -2,361
  -2,483
  -2,627
  -2,791
  -2,974
  -3,178
  -3,401
  -3,643
  -3,906
  -4,189
  -4,492
  -4,817
  -5,163
  -5,532
  -5,923
  -6,339
  -6,779
  -7,246
  -7,739
  -8,259
  -8,809
  -9,390
  -10,002
  -10,647
  -11,326
  -12,042
  -12,795
  -13,589
  -14,423
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
  -2,255
  -2,361
  -2,483
  -2,627
  -2,791
  -2,974
  -3,178
  -3,401
  -3,643
  -3,906
  -4,189
  -4,492
  -4,817
  -5,163
  -5,532
  -5,923
  -6,339
  -6,779
  -7,246
  -7,739
  -8,259
  -8,809
  -9,390
  -10,002
  -10,647
  -11,326
  -12,042
  -12,795
  -13,589
  -14,423

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
  263,880
  269,950
  276,887
  284,676
  293,307
  302,776
  313,088
  324,250
  336,275
  349,180
  362,987
  377,719
  393,404
  410,075
  427,764
  446,510
  466,353
  487,338
  509,510
  532,921
  557,623
  583,674
  611,133
  640,065
  670,537
  702,619
  736,388
  771,923
  809,307
  848,629
Adjusted assets (=assets-cash), $m
  263,880
  269,950
  276,887
  284,676
  293,307
  302,776
  313,088
  324,250
  336,275
  349,180
  362,987
  377,719
  393,404
  410,075
  427,764
  446,510
  466,353
  487,338
  509,510
  532,921
  557,623
  583,674
  611,133
  640,065
  670,537
  702,619
  736,388
  771,923
  809,307
  848,629
Revenue / Adjusted assets
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
  0.606
Average production assets, $m
  34,381
  35,172
  36,076
  37,090
  38,215
  39,449
  40,792
  42,246
  43,813
  45,495
  47,294
  49,213
  51,257
  53,429
  55,733
  58,176
  60,761
  63,495
  66,384
  69,434
  72,653
  76,047
  79,625
  83,394
  87,364
  91,544
  95,944
  100,574
  105,445
  110,568
Working capital, $m
  35,660
  36,480
  37,418
  38,471
  39,637
  40,917
  42,310
  43,818
  45,444
  47,188
  49,053
  51,044
  53,164
  55,417
  57,807
  60,340
  63,022
  65,858
  68,854
  72,018
  75,356
  78,877
  82,587
  86,497
  90,615
  94,951
  99,514
  104,316
  109,368
  114,682
Total debt, $m
  158,834
  164,066
  170,046
  176,760
  184,199
  192,362
  201,251
  210,872
  221,238
  232,362
  244,263
  256,963
  270,483
  284,853
  300,101
  316,261
  333,366
  351,454
  370,567
  390,747
  412,040
  434,496
  458,166
  483,105
  509,371
  537,027
  566,136
  596,767
  628,992
  662,887
Total liabilities, $m
  227,465
  232,697
  238,677
  245,391
  252,830
  260,993
  269,882
  279,503
  289,869
  300,993
  312,894
  325,594
  339,114
  353,484
  368,732
  384,892
  401,997
  420,085
  439,198
  459,378
  480,671
  503,127
  526,797
  551,736
  578,002
  605,658
  634,767
  665,398
  697,623
  731,518
Total equity, $m
  36,415
  37,253
  38,210
  39,285
  40,476
  41,783
  43,206
  44,746
  46,406
  48,187
  50,092
  52,125
  54,290
  56,590
  59,031
  61,618
  64,357
  67,253
  70,312
  73,543
  76,952
  80,547
  84,336
  88,329
  92,534
  96,961
  101,622
  106,525
  111,684
  117,111
Total liabilities and equity, $m
  263,880
  269,950
  276,887
  284,676
  293,306
  302,776
  313,088
  324,249
  336,275
  349,180
  362,986
  377,719
  393,404
  410,074
  427,763
  446,510
  466,354
  487,338
  509,510
  532,921
  557,623
  583,674
  611,133
  640,065
  670,536
  702,619
  736,389
  771,923
  809,307
  848,629
Debt-to-equity ratio
  4.360
  4.400
  4.450
  4.500
  4.550
  4.600
  4.660
  4.710
  4.770
  4.820
  4.880
  4.930
  4.980
  5.030
  5.080
  5.130
  5.180
  5.230
  5.270
  5.310
  5.350
  5.390
  5.430
  5.470
  5.500
  5.540
  5.570
  5.600
  5.630
  5.660
Adjusted equity ratio
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138
  0.138

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,255
  -2,361
  -2,483
  -2,627
  -2,791
  -2,974
  -3,178
  -3,401
  -3,643
  -3,906
  -4,189
  -4,492
  -4,817
  -5,163
  -5,532
  -5,923
  -6,339
  -6,779
  -7,246
  -7,739
  -8,259
  -8,809
  -9,390
  -10,002
  -10,647
  -11,326
  -12,042
  -12,795
  -13,589
  -14,423
Depreciation, amort., depletion, $m
  6,876
  7,034
  7,215
  7,418
  7,643
  7,890
  8,158
  8,449
  8,763
  9,099
  9,459
  9,843
  10,251
  10,686
  11,147
  11,635
  12,152
  12,699
  13,277
  13,887
  14,531
  15,209
  15,925
  16,679
  17,473
  18,309
  19,189
  20,115
  21,089
  22,114
Funds from operations, $m
  4,621
  4,674
  4,732
  4,791
  4,852
  4,915
  4,981
  5,049
  5,119
  5,193
  5,270
  5,350
  5,435
  5,523
  5,615
  5,712
  5,813
  5,920
  6,031
  6,148
  6,271
  6,400
  6,535
  6,677
  6,826
  6,983
  7,147
  7,319
  7,500
  7,690
Change in working capital, $m
  699
  820
  938
  1,053
  1,166
  1,280
  1,393
  1,508
  1,625
  1,744
  1,866
  1,991
  2,120
  2,253
  2,391
  2,533
  2,682
  2,836
  2,996
  3,164
  3,338
  3,520
  3,711
  3,910
  4,118
  4,336
  4,563
  4,802
  5,052
  5,314
Cash from operations, $m
  3,922
  3,854
  3,794
  3,739
  3,686
  3,636
  3,587
  3,540
  3,494
  3,449
  3,404
  3,360
  3,315
  3,270
  3,225
  3,179
  3,132
  3,084
  3,035
  2,985
  2,933
  2,880
  2,825
  2,767
  2,708
  2,647
  2,583
  2,517
  2,448
  2,376
Maintenance CAPEX, $m
  -6,740
  -6,876
  -7,034
  -7,215
  -7,418
  -7,643
  -7,890
  -8,158
  -8,449
  -8,763
  -9,099
  -9,459
  -9,843
  -10,251
  -10,686
  -11,147
  -11,635
  -12,152
  -12,699
  -13,277
  -13,887
  -14,531
  -15,209
  -15,925
  -16,679
  -17,473
  -18,309
  -19,189
  -20,115
  -21,089
New CAPEX, $m
  -681
  -791
  -904
  -1,015
  -1,124
  -1,234
  -1,343
  -1,454
  -1,567
  -1,681
  -1,799
  -1,919
  -2,044
  -2,172
  -2,305
  -2,442
  -2,585
  -2,734
  -2,889
  -3,050
  -3,218
  -3,394
  -3,578
  -3,770
  -3,970
  -4,180
  -4,400
  -4,630
  -4,871
  -5,123
Cash from investing activities, $m
  -7,421
  -7,667
  -7,938
  -8,230
  -8,542
  -8,877
  -9,233
  -9,612
  -10,016
  -10,444
  -10,898
  -11,378
  -11,887
  -12,423
  -12,991
  -13,589
  -14,220
  -14,886
  -15,588
  -16,327
  -17,105
  -17,925
  -18,787
  -19,695
  -20,649
  -21,653
  -22,709
  -23,819
  -24,986
  -26,212
Free cash flow, $m
  -3,499
  -3,813
  -4,144
  -4,491
  -4,857
  -5,241
  -5,646
  -6,073
  -6,522
  -6,995
  -7,494
  -8,019
  -8,571
  -9,153
  -9,766
  -10,410
  -11,089
  -11,802
  -12,553
  -13,342
  -14,172
  -15,045
  -15,963
  -16,927
  -17,941
  -19,006
  -20,125
  -21,301
  -22,537
  -23,836
Issuance/(repayment) of debt, $m
  4,547
  5,232
  5,980
  6,714
  7,440
  8,163
  8,889
  9,622
  10,366
  11,124
  11,901
  12,699
  13,521
  14,370
  15,248
  16,159
  17,105
  18,089
  19,113
  20,180
  21,293
  22,456
  23,670
  24,939
  26,266
  27,655
  29,109
  30,631
  32,225
  33,895
Issuance/(repurchase) of shares, $m
  3,092
  3,198
  3,441
  3,702
  3,982
  4,281
  4,601
  4,941
  5,303
  5,687
  6,094
  6,525
  6,981
  7,463
  7,973
  8,510
  9,077
  9,675
  10,305
  10,969
  11,668
  12,404
  13,179
  13,994
  14,852
  15,754
  16,702
  17,699
  18,748
  19,850
Cash from financing (excl. dividends), $m  
  7,639
  8,430
  9,421
  10,416
  11,422
  12,444
  13,490
  14,563
  15,669
  16,811
  17,995
  19,224
  20,502
  21,833
  23,221
  24,669
  26,182
  27,764
  29,418
  31,149
  32,961
  34,860
  36,849
  38,933
  41,118
  43,409
  45,811
  48,330
  50,973
  53,745
Total cash flow (excl. dividends), $m
  4,140
  4,616
  5,277
  5,924
  6,565
  7,203
  7,843
  8,490
  9,147
  9,816
  10,502
  11,206
  11,931
  12,680
  13,455
  14,259
  15,093
  15,961
  16,865
  17,807
  18,789
  19,815
  20,886
  22,006
  23,178
  24,403
  25,686
  27,029
  28,436
  29,909
Retained Cash Flow (-), $m
  -3,092
  -3,198
  -3,441
  -3,702
  -3,982
  -4,281
  -4,601
  -4,941
  -5,303
  -5,687
  -6,094
  -6,525
  -6,981
  -7,463
  -7,973
  -8,510
  -9,077
  -9,675
  -10,305
  -10,969
  -11,668
  -12,404
  -13,179
  -13,994
  -14,852
  -15,754
  -16,702
  -17,699
  -18,748
  -19,850
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
  1,048
  1,418
  1,836
  2,223
  2,583
  2,922
  3,243
  3,549
  3,844
  4,129
  4,408
  4,681
  4,950
  5,216
  5,482
  5,749
  6,016
  6,286
  6,560
  6,838
  7,121
  7,411
  7,707
  8,012
  8,326
  8,650
  8,984
  9,330
  9,688
  10,060
Discount rate, %
  9.00
  9.45
  9.92
  10.42
  10.94
  11.49
  12.06
  12.66
  13.30
  13.96
  14.66
  15.39
  16.16
  16.97
  17.82
  18.71
  19.65
  20.63
  21.66
  22.74
  23.88
  25.07
  26.33
  27.64
  29.03
  30.48
  32.00
  33.60
  35.28
  37.05
PV of cash for distribution, $m
  961
  1,184
  1,383
  1,495
  1,537
  1,522
  1,461
  1,367
  1,250
  1,118
  979
  840
  706
  581
  469
  370
  285
  215
  158
  114
  79
  54
  36
  23
  14
  9
  5
  3
  2
  1
Current shareholders' claim on cash, %
  92.5
  85.5
  78.8
  72.3
  66.1
  60.1
  54.6
  49.3
  44.4
  39.9
  35.7
  31.8
  28.3
  25.1
  22.2
  19.6
  17.2
  15.1
  13.2
  11.6
  10.1
  8.8
  7.6
  6.6
  5.7
  4.9
  4.2
  3.6
  3.1
  2.7

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 (F)

Valuation Ratios
P/E Ratio 8.6
Price to Sales 0.3
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 2
Price to Free Cash Flow 3.1
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 $156776 million for the last fiscal year's total revenue generated by Ford Motor. The default revenue input number comes from 0001 income statement of Ford Motor. 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%, whose default value for F is calculated based on our internal credit rating of Ford Motor, 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.
    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 96.2%.

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.

Corporate tax rate of 27% is the nominal tax rate for Ford Motor. 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 21.5%.

Life of production assets of 4 years is the average useful life of capital assets used in Ford Motor 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 22.3%. 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 - $35578 million for Ford Motor - 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 3914.87 million for Ford Motor 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 at the current share price and the inputted number of shares is $38.3 billion.

RELATED COMPANIES Price Int.Val. Rating
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GM General Motors 35.73 58.76  str.buy
TSLA Tesla 299.02 83.24  str.sell
HMC Honda Motor AD 30.28 629.13  str.buy

COMPANY NEWS

▶ Parts Supplier ZF In $14 Billion Challenge to Tesla, Ford   [Sep-20-18 09:57AM  Investopedia]
▶ Sen. Grassley on Dr. Ford   [12:34PM  Bloomberg]
▶ IBD Stock Of The Day: Hot Auto Brand Makes Key Moves, Hits Buy Signal   [Sep-18-18 04:14PM  Investor's Business Daily]
▶ Ford Global Climate Action Summit speech   [Sep-14-18 05:01PM  Bloomberg]
▶ Volkswagen squashes beetle   [01:57PM  Yahoo Finance Video]
▶ [$$] Bankrupt Texas Car Dealership Chain Looks for Buyers   [12:49PM  The Wall Street Journal]
▶ 3 Risky Dividend Stocks With Fat Yields   [Sep-12-18 12:02PM  InvestorPlace]
▶ Company News For Sep 12, 2018   [09:55AM  Zacks]
▶ China Auto Sales Slump on Trade Tensions, Economic Jitters   [Sep-11-18 07:47PM  The Wall Street Journal]
▶ CBS Is Finally Over the Moonves   [Sep-10-18 04:34PM  Bloomberg]
▶ Dow Slips, Nasdaq Gains as Stocks End Mixed   [04:07PM  TheStreet.com]
▶ Key Takeaways From Ford's China Auto Sales   [02:00PM  GuruFocus.com]
▶ Ford to Trump: That's Not How It Works   [12:13PM  Bloomberg]
▶ Despite Trump plea, Ford says no to building Focus Active in the U.S.   [09:48AM  American City Business Journals]
▶ Ford shares near nine-year low   [07:10AM  CNBC Videos]
▶ Ford Recalls Two Million Trucks After Reports of Seat-Belt Malfunction   [Sep-06-18 08:46PM  The Wall Street Journal]
▶ Ford Reports August Auto Sales   [06:23PM  GuruFocus.com]
▶ Ford recalls two million F-150 pickup trucks   [01:38PM  Reuters Videos]
▶ Ford recalls 2 million F-150 pickup trucks; seat belts may start fires   [09:15AM  American City Business Journals]
▶ IBD Stock Of The Day: Ford F-150 Helps Drive This Stock To New Heights   [Sep-05-18 04:12PM  Investor's Business Daily]
▶ 5 Dividend Stocks Worth Keeping an Eye On   [03:39PM  InvestorPlace]
▶ Ford Puts Muscle Behind Mustang   [03:29PM  Bloomberg]
▶ Key Takeaways From US Auto Sales in August   [12:45PM  GuruFocus.com]
▶ Ford says this Louisville-made SUV is the hottest vehicle in America   [07:05AM  American City Business Journals]

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