Intrinsic value of First Commonwealth Financial (Pennsylvan - FCF

Previous Close

$16.20

  Intrinsic Value

$9.28

stock screener

  Rating & Target

sell

-43%

Previous close

$16.20

 
Intrinsic value

$9.28

 
Up/down potential

-43%

 
Rating

sell

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

We calculate the intrinsic value of FCF 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 1.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  24.00
  22.10
  20.39
  18.85
  17.47
  16.22
  15.10
  14.09
  13.18
  12.36
  11.62
  10.96
  10.37
  9.83
  9.35
  8.91
  8.52
  8.17
  7.85
  7.57
  7.31
  7.08
  6.87
  6.68
  6.52
  6.36
  6.23
  6.10
  5.99
  5.89
Revenue, $m
  377
  460
  554
  659
  774
  899
  1,035
  1,181
  1,336
  1,501
  1,676
  1,860
  2,052
  2,254
  2,465
  2,684
  2,913
  3,151
  3,399
  3,656
  3,923
  4,201
  4,489
  4,789
  5,101
  5,426
  5,764
  6,116
  6,482
  6,865
Variable operating expenses, $m
  245
  300
  361
  429
  504
  585
  674
  769
  870
  977
  1,091
  1,211
  1,336
  1,467
  1,605
  1,748
  1,896
  2,051
  2,212
  2,380
  2,554
  2,735
  2,923
  3,118
  3,321
  3,532
  3,752
  3,981
  4,220
  4,469
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
  245
  300
  361
  429
  504
  585
  674
  769
  870
  977
  1,091
  1,211
  1,336
  1,467
  1,605
  1,748
  1,896
  2,051
  2,212
  2,380
  2,554
  2,735
  2,923
  3,118
  3,321
  3,532
  3,752
  3,981
  4,220
  4,469
Operating income, $m
  132
  161
  193
  230
  270
  314
  361
  412
  466
  524
  585
  649
  716
  787
  860
  937
  1,017
  1,100
  1,186
  1,276
  1,369
  1,466
  1,567
  1,671
  1,780
  1,894
  2,012
  2,134
  2,262
  2,396
EBITDA, $m
  999
  1,220
  1,469
  1,745
  2,050
  2,383
  2,742
  3,129
  3,541
  3,979
  4,441
  4,928
  5,439
  5,974
  6,532
  7,114
  7,720
  8,351
  9,007
  9,688
  10,397
  11,133
  11,897
  12,693
  13,520
  14,380
  15,276
  16,208
  17,180
  18,192
Interest expense (income), $m
  19
  354
  392
  467
  551
  645
  749
  862
  984
  1,115
  1,255
  1,404
  1,561
  1,726
  1,900
  2,081
  2,271
  2,469
  2,675
  2,889
  3,111
  3,343
  3,583
  3,833
  4,093
  4,363
  4,644
  4,936
  5,240
  5,557
  5,887
Earnings before tax, $m
  -223
  -231
  -274
  -322
  -375
  -435
  -501
  -572
  -649
  -731
  -819
  -912
  -1,010
  -1,113
  -1,221
  -1,334
  -1,452
  -1,575
  -1,703
  -1,836
  -1,974
  -2,117
  -2,267
  -2,422
  -2,583
  -2,750
  -2,925
  -3,106
  -3,295
  -3,491
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
  -223
  -231
  -274
  -322
  -375
  -435
  -501
  -572
  -649
  -731
  -819
  -912
  -1,010
  -1,113
  -1,221
  -1,334
  -1,452
  -1,575
  -1,703
  -1,836
  -1,974
  -2,117
  -2,267
  -2,422
  -2,583
  -2,750
  -2,925
  -3,106
  -3,295
  -3,491

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
  6,981
  8,523
  10,261
  12,196
  14,326
  16,649
  19,163
  21,863
  24,744
  27,803
  31,035
  34,437
  38,007
  41,742
  45,644
  49,712
  53,947
  58,354
  62,936
  67,698
  72,647
  77,790
  83,135
  88,691
  94,470
  100,482
  106,740
  113,256
  120,045
  127,122
Adjusted assets (=assets-cash), $m
  6,981
  8,523
  10,261
  12,196
  14,326
  16,649
  19,163
  21,863
  24,744
  27,803
  31,035
  34,437
  38,007
  41,742
  45,644
  49,712
  53,947
  58,354
  62,936
  67,698
  72,647
  77,790
  83,135
  88,691
  94,470
  100,482
  106,740
  113,256
  120,045
  127,122
Revenue / Adjusted assets
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
  0.054
Average production assets, $m
  8,675
  10,592
  12,751
  15,155
  17,802
  20,689
  23,813
  27,168
  30,748
  34,549
  38,565
  42,793
  47,229
  51,871
  56,719
  61,774
  67,038
  72,514
  78,207
  84,125
  90,275
  96,665
  103,307
  110,212
  117,393
  124,864
  132,640
  140,737
  149,174
  157,967
Working capital, $m
  -7,626
  -9,311
  -11,209
  -13,322
  -15,649
  -18,187
  -20,933
  -23,882
  -27,030
  -30,371
  -33,901
  -37,618
  -41,517
  -45,598
  -49,860
  -54,303
  -58,930
  -63,744
  -68,749
  -73,951
  -79,357
  -84,975
  -90,813
  -96,883
  -103,196
  -109,763
  -116,599
  -123,717
  -131,133
  -138,863
Total debt, $m
  7,259
  8,648
  10,212
  11,953
  13,870
  15,961
  18,223
  20,653
  23,246
  25,999
  28,908
  31,970
  35,182
  38,545
  42,056
  45,717
  49,529
  53,495
  57,619
  61,905
  66,359
  70,987
  75,798
  80,799
  85,999
  91,410
  97,042
  102,907
  109,017
  115,386
Total liabilities, $m
  6,283
  7,671
  9,235
  10,976
  12,893
  14,985
  17,247
  19,676
  22,270
  25,022
  27,931
  30,993
  34,206
  37,568
  41,080
  44,740
  48,553
  52,519
  56,642
  60,928
  65,382
  70,011
  74,821
  79,822
  85,023
  90,434
  96,066
  101,930
  108,040
  114,409
Total equity, $m
  698
  852
  1,026
  1,220
  1,433
  1,665
  1,916
  2,186
  2,474
  2,780
  3,103
  3,444
  3,801
  4,174
  4,564
  4,971
  5,395
  5,835
  6,294
  6,770
  7,265
  7,779
  8,313
  8,869
  9,447
  10,048
  10,674
  11,326
  12,004
  12,712
Total liabilities and equity, $m
  6,981
  8,523
  10,261
  12,196
  14,326
  16,650
  19,163
  21,862
  24,744
  27,802
  31,034
  34,437
  38,007
  41,742
  45,644
  49,711
  53,948
  58,354
  62,936
  67,698
  72,647
  77,790
  83,134
  88,691
  94,470
  100,482
  106,740
  113,256
  120,044
  127,121
Debt-to-equity ratio
  10.400
  10.150
  9.950
  9.800
  9.680
  9.590
  9.510
  9.450
  9.390
  9.350
  9.310
  9.280
  9.260
  9.230
  9.210
  9.200
  9.180
  9.170
  9.160
  9.140
  9.130
  9.130
  9.120
  9.110
  9.100
  9.100
  9.090
  9.090
  9.080
  9.080
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -223
  -231
  -274
  -322
  -375
  -435
  -501
  -572
  -649
  -731
  -819
  -912
  -1,010
  -1,113
  -1,221
  -1,334
  -1,452
  -1,575
  -1,703
  -1,836
  -1,974
  -2,117
  -2,267
  -2,422
  -2,583
  -2,750
  -2,925
  -3,106
  -3,295
  -3,491
Depreciation, amort., depletion, $m
  867
  1,059
  1,275
  1,516
  1,780
  2,069
  2,381
  2,717
  3,075
  3,455
  3,857
  4,279
  4,723
  5,187
  5,672
  6,177
  6,704
  7,251
  7,821
  8,413
  9,027
  9,667
  10,331
  11,021
  11,739
  12,486
  13,264
  14,074
  14,917
  15,797
Funds from operations, $m
  645
  828
  1,002
  1,194
  1,405
  1,634
  1,881
  2,145
  2,426
  2,724
  3,037
  3,367
  3,713
  4,074
  4,451
  4,843
  5,252
  5,677
  6,118
  6,577
  7,054
  7,549
  8,064
  8,600
  9,157
  9,736
  10,339
  10,968
  11,623
  12,306
Change in working capital, $m
  -1,476
  -1,685
  -1,898
  -2,113
  -2,327
  -2,538
  -2,746
  -2,949
  -3,147
  -3,341
  -3,531
  -3,716
  -3,899
  -4,081
  -4,262
  -4,443
  -4,627
  -4,814
  -5,005
  -5,202
  -5,406
  -5,618
  -5,839
  -6,070
  -6,312
  -6,567
  -6,836
  -7,118
  -7,416
  -7,730
Cash from operations, $m
  2,121
  2,513
  2,900
  3,307
  3,732
  4,172
  4,626
  5,094
  5,573
  6,065
  6,568
  7,084
  7,612
  8,155
  8,713
  9,287
  9,879
  10,490
  11,123
  11,779
  12,460
  13,167
  13,903
  14,670
  15,469
  16,303
  17,175
  18,086
  19,039
  20,036
Maintenance CAPEX, $m
  -700
  -867
  -1,059
  -1,275
  -1,516
  -1,780
  -2,069
  -2,381
  -2,717
  -3,075
  -3,455
  -3,857
  -4,279
  -4,723
  -5,187
  -5,672
  -6,177
  -6,704
  -7,251
  -7,821
  -8,413
  -9,027
  -9,667
  -10,331
  -11,021
  -11,739
  -12,486
  -13,264
  -14,074
  -14,917
New CAPEX, $m
  -1,678
  -1,917
  -2,160
  -2,404
  -2,647
  -2,887
  -3,124
  -3,355
  -3,580
  -3,801
  -4,016
  -4,228
  -4,436
  -4,642
  -4,848
  -5,055
  -5,264
  -5,476
  -5,694
  -5,918
  -6,150
  -6,391
  -6,642
  -6,905
  -7,181
  -7,471
  -7,776
  -8,097
  -8,436
  -8,794
Cash from investing activities, $m
  -2,378
  -2,784
  -3,219
  -3,679
  -4,163
  -4,667
  -5,193
  -5,736
  -6,297
  -6,876
  -7,471
  -8,085
  -8,715
  -9,365
  -10,035
  -10,727
  -11,441
  -12,180
  -12,945
  -13,739
  -14,563
  -15,418
  -16,309
  -17,236
  -18,202
  -19,210
  -20,262
  -21,361
  -22,510
  -23,711
Free cash flow, $m
  -257
  -272
  -319
  -372
  -431
  -496
  -566
  -642
  -724
  -811
  -903
  -1,001
  -1,103
  -1,210
  -1,323
  -1,440
  -1,562
  -1,689
  -1,822
  -1,959
  -2,103
  -2,251
  -2,406
  -2,566
  -2,733
  -2,907
  -3,087
  -3,275
  -3,471
  -3,675
Issuance/(repayment) of debt, $m
  696
  1,388
  1,564
  1,741
  1,917
  2,091
  2,262
  2,430
  2,593
  2,753
  2,909
  3,062
  3,213
  3,362
  3,511
  3,661
  3,812
  3,966
  4,124
  4,286
  4,454
  4,628
  4,810
  5,001
  5,201
  5,411
  5,632
  5,865
  6,110
  6,369
Issuance/(repurchase) of shares, $m
  927
  386
  447
  515
  588
  668
  752
  842
  937
  1,037
  1,142
  1,252
  1,367
  1,487
  1,611
  1,741
  1,876
  2,016
  2,161
  2,312
  2,469
  2,632
  2,801
  2,977
  3,161
  3,351
  3,550
  3,757
  3,974
  4,199
Cash from financing (excl. dividends), $m  
  1,623
  1,774
  2,011
  2,256
  2,505
  2,759
  3,014
  3,272
  3,530
  3,790
  4,051
  4,314
  4,580
  4,849
  5,122
  5,402
  5,688
  5,982
  6,285
  6,598
  6,923
  7,260
  7,611
  7,978
  8,362
  8,762
  9,182
  9,622
  10,084
  10,568
Total cash flow (excl. dividends), $m
  1,366
  1,503
  1,693
  1,884
  2,075
  2,263
  2,448
  2,629
  2,806
  2,979
  3,148
  3,314
  3,477
  3,639
  3,800
  3,962
  4,126
  4,292
  4,463
  4,638
  4,820
  5,009
  5,206
  5,412
  5,628
  5,856
  6,095
  6,347
  6,612
  6,892
Retained Cash Flow (-), $m
  -927
  -386
  -447
  -515
  -588
  -668
  -752
  -842
  -937
  -1,037
  -1,142
  -1,252
  -1,367
  -1,487
  -1,611
  -1,741
  -1,876
  -2,016
  -2,161
  -2,312
  -2,469
  -2,632
  -2,801
  -2,977
  -3,161
  -3,351
  -3,550
  -3,757
  -3,974
  -4,199
Prev. year cash balance distribution, $m
  6
  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
  445
  1,117
  1,245
  1,369
  1,486
  1,596
  1,696
  1,787
  1,869
  1,942
  2,006
  2,061
  2,110
  2,152
  2,189
  2,221
  2,250
  2,277
  2,302
  2,326
  2,351
  2,377
  2,405
  2,435
  2,468
  2,504
  2,545
  2,589
  2,639
  2,694
Discount rate, %
  14.70
  15.44
  16.21
  17.02
  17.87
  18.76
  19.70
  20.68
  21.72
  22.80
  23.94
  25.14
  26.40
  27.72
  29.10
  30.56
  32.09
  33.69
  35.38
  37.15
  39.00
  40.95
  43.00
  45.15
  47.41
  49.78
  52.27
  54.88
  57.63
  60.51
PV of cash for distribution, $m
  388
  838
  794
  730
  653
  569
  482
  397
  319
  249
  189
  140
  100
  70
  47
  31
  20
  12
  7
  4
  2
  1
  1
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  32.2
  21.1
  14.1
  9.5
  6.5
  4.5
  3.1
  2.2
  1.5
  1.1
  0.8
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

First Commonwealth Financial Corporation is a financial holding company. The Company, through its subsidiary, First Commonwealth Bank (the Bank), provides a range of consumer and commercial banking services. The Company also provides trust and wealth management services, and offers insurance products through the Bank and its other operating subsidiaries. The Bank is a Pennsylvania bank and trust company. As of December 31, 2016, the Bank operated 105 community banking offices throughout western and central Pennsylvania, 17 community banking offices in Central Ohio and loan production offices in Akron and Cleveland, Ohio. As of December 31, 2016, the Bank also operated a network of 133 automated teller machines (ATMs) at various branch offices and offsite locations. As of December 31, 2016, the Bank operated 122 community banking offices throughout western Pennsylvania and central and northern Ohio, as well as loan production offices in Akron and Cleveland, Ohio.

FINANCIAL RATIOS  of  First Commonwealth Financial (Pennsylvan (FCF)

Valuation Ratios
P/E Ratio 24
Price to Sales 0
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 16.2
Price to Free Cash Flow 17.6
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 40%
Cap. Spend. - 3 Yr. Gr. Rate -6.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 26.8%
Total Debt to Equity 26.8%
Interest Coverage 5
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. 1%
Return On Total Capital 6.4%
Ret/ On T. Cap. - 3 Yr. Avg. 5.2%
Return On Equity 8.2%
Return On Equity - 3 Yr. Avg. 7.1%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 29.4%
Eff/ Tax Rate - 3 Yr. Avg. 29.3%
Payout Ratio 41.7%

FCF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FCF stock intrinsic value calculation we used $304 million for the last fiscal year's total revenue generated by First Commonwealth Financial (Pennsylvan. The default revenue input number comes from 2017 income statement of First Commonwealth Financial (Pennsylvan. 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 FCF stock valuation model: a) initial revenue growth rate of 24% 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 14.7%, whose default value for FCF is calculated based on our internal credit rating of First Commonwealth Financial (Pennsylvan, 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 First Commonwealth Financial (Pennsylvan.
    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 FCF stock the variable cost ratio is equal to 65.1%.

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 FCF 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 First Commonwealth Financial (Pennsylvan.

Corporate tax rate of 27% is the nominal tax rate for First Commonwealth Financial (Pennsylvan. 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 FCF 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 FCF are equal to 2301.2%.

Life of production assets of 10 years is the average useful life of capital assets used in First Commonwealth Financial (Pennsylvan 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 FCF is equal to -2022.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $0 million for First Commonwealth Financial (Pennsylvan - 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 95 million for First Commonwealth Financial (Pennsylvan 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 First Commonwealth Financial (Pennsylvan at the current share price and the inputted number of shares is $1.5 billion.

RELATED COMPANIES Price Int.Val. Rating
FNB F.N.B. 13.57 23.74  str.buy
EMCF Emclaire Finan 36.00 19.09  sell

COMPANY NEWS

▶ Here's why loans rose in 1Q at Pittsburgh banks   [May-02-18 01:57PM  American City Business Journals]
▶ First Commonwealth Financial: 1Q Earnings Snapshot   [Apr-24-18 07:25AM  Associated Press]
▶ First Commonwealth Financial posts 4Q profit   [Jan-23-18 05:31PM  Associated Press]
▶ First Commonwealth Financial posts 3Q profit   [Oct-25-17 07:31AM  Associated Press]
▶ Top Ranked Income Stocks to Buy for August 16th   [Aug-16-17 10:35AM  Zacks]
▶ First Commonwealth Financial posts 2Q profit   [09:56PM  Associated Press]
▶ First Commonwealth Financial posts 1Q profit   [07:16AM  Associated Press]
▶ First Commonwealth acquires Delaware County Bank, names new director   [12:15PM  American City Business Journals]
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