Intrinsic value of First Horizon National - FHN

Previous Close

$18.42

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$18.42

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of FHN 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 4.4

 

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, %
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  4.99
  5.00
Revenue, $m
  1,398
  1,467
  1,539
  1,615
  1,695
  1,778
  1,866
  1,959
  2,056
  2,158
  2,265
  2,378
  2,496
  2,620
  2,750
  2,887
  3,031
  3,182
  3,341
  3,507
  3,682
  3,866
  4,059
  4,262
  4,474
  4,698
  4,932
  5,179
  5,437
  5,709
Variable operating expenses, $m
  1,018
  1,068
  1,120
  1,176
  1,234
  1,295
  1,359
  1,426
  1,497
  1,571
  1,649
  1,731
  1,817
  1,907
  2,002
  2,102
  2,207
  2,317
  2,432
  2,553
  2,681
  2,814
  2,955
  3,102
  3,257
  3,420
  3,591
  3,770
  3,958
  4,156
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
  1,018
  1,068
  1,120
  1,176
  1,234
  1,295
  1,359
  1,426
  1,497
  1,571
  1,649
  1,731
  1,817
  1,907
  2,002
  2,102
  2,207
  2,317
  2,432
  2,553
  2,681
  2,814
  2,955
  3,102
  3,257
  3,420
  3,591
  3,770
  3,958
  4,156
Operating income, $m
  380
  399
  419
  439
  461
  484
  508
  533
  559
  587
  616
  647
  679
  713
  748
  785
  824
  866
  909
  954
  1,002
  1,052
  1,104
  1,159
  1,217
  1,278
  1,342
  1,409
  1,479
  1,553
EBITDA, $m
  4,052
  4,251
  4,460
  4,680
  4,911
  5,153
  5,408
  5,676
  5,958
  6,253
  6,564
  6,890
  7,232
  7,592
  7,970
  8,367
  8,784
  9,221
  9,681
  10,164
  10,671
  11,203
  11,762
  12,349
  12,966
  13,613
  14,293
  15,006
  15,756
  16,543
Interest expense (income), $m
  92
  1,899
  1,773
  1,849
  1,928
  2,012
  2,100
  2,193
  2,290
  2,392
  2,499
  2,612
  2,730
  2,854
  2,985
  3,122
  3,266
  3,417
  3,576
  3,743
  3,918
  4,102
  4,296
  4,498
  4,712
  4,935
  5,170
  5,417
  5,676
  5,948
  6,234
Earnings before tax, $m
  -1,519
  -1,374
  -1,430
  -1,489
  -1,551
  -1,616
  -1,685
  -1,757
  -1,833
  -1,912
  -1,996
  -2,083
  -2,176
  -2,272
  -2,374
  -2,481
  -2,593
  -2,711
  -2,834
  -2,964
  -3,101
  -3,244
  -3,394
  -3,552
  -3,718
  -3,893
  -4,075
  -4,268
  -4,469
  -4,681
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
  -1,519
  -1,374
  -1,430
  -1,489
  -1,551
  -1,616
  -1,685
  -1,757
  -1,833
  -1,912
  -1,996
  -2,083
  -2,176
  -2,272
  -2,374
  -2,481
  -2,593
  -2,711
  -2,834
  -2,964
  -3,101
  -3,244
  -3,394
  -3,552
  -3,718
  -3,893
  -4,075
  -4,268
  -4,469
  -4,681

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
  31,780
  33,340
  34,980
  36,704
  38,515
  40,418
  42,417
  44,518
  46,725
  49,043
  51,478
  54,036
  56,722
  59,544
  62,507
  65,620
  68,889
  72,322
  75,927
  79,713
  83,689
  87,864
  92,249
  96,853
  101,688
  106,765
  112,096
  117,695
  123,573
  129,746
Adjusted assets (=assets-cash), $m
  31,780
  33,340
  34,980
  36,704
  38,515
  40,418
  42,417
  44,518
  46,725
  49,043
  51,478
  54,036
  56,722
  59,544
  62,507
  65,620
  68,889
  72,322
  75,927
  79,713
  83,689
  87,864
  92,249
  96,853
  101,688
  106,765
  112,096
  117,695
  123,573
  129,746
Revenue / Adjusted assets
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
Average production assets, $m
  36,717
  38,520
  40,415
  42,406
  44,498
  46,697
  49,007
  51,434
  53,983
  56,662
  59,475
  62,430
  65,534
  68,794
  72,218
  75,814
  79,591
  83,557
  87,722
  92,097
  96,690
  101,514
  106,580
  111,899
  117,485
  123,351
  129,511
  135,979
  142,771
  149,903
Working capital, $m
  -37,013
  -38,831
  -40,741
  -42,748
  -44,858
  -47,074
  -49,403
  -51,849
  -54,419
  -57,119
  -59,955
  -62,934
  -66,063
  -69,350
  -72,801
  -76,426
  -80,233
  -84,232
  -88,431
  -92,840
  -97,471
  -102,334
  -107,440
  -112,803
  -118,434
  -124,347
  -130,557
  -137,077
  -143,923
  -151,113
Total debt, $m
  32,829
  34,233
  35,709
  37,260
  38,890
  40,603
  42,402
  44,293
  46,279
  48,365
  50,557
  52,859
  55,277
  57,816
  60,483
  63,285
  66,226
  69,316
  72,561
  75,968
  79,547
  83,304
  87,251
  91,394
  95,746
  100,315
  105,113
  110,152
  115,443
  120,998
Total liabilities, $m
  28,602
  30,006
  31,482
  33,033
  34,663
  36,376
  38,176
  40,066
  42,052
  44,139
  46,330
  48,632
  51,050
  53,589
  56,257
  59,058
  62,000
  65,090
  68,334
  71,742
  75,320
  79,078
  83,024
  87,168
  91,519
  96,089
  100,887
  105,925
  111,216
  116,772
Total equity, $m
  3,178
  3,334
  3,498
  3,670
  3,851
  4,042
  4,242
  4,452
  4,672
  4,904
  5,148
  5,404
  5,672
  5,954
  6,251
  6,562
  6,889
  7,232
  7,593
  7,971
  8,369
  8,786
  9,225
  9,685
  10,169
  10,677
  11,210
  11,769
  12,357
  12,975
Total liabilities and equity, $m
  31,780
  33,340
  34,980
  36,703
  38,514
  40,418
  42,418
  44,518
  46,724
  49,043
  51,478
  54,036
  56,722
  59,543
  62,508
  65,620
  68,889
  72,322
  75,927
  79,713
  83,689
  87,864
  92,249
  96,853
  101,688
  106,766
  112,097
  117,694
  123,573
  129,747
Debt-to-equity ratio
  10.330
  10.270
  10.210
  10.150
  10.100
  10.050
  10.000
  9.950
  9.900
  9.860
  9.820
  9.780
  9.750
  9.710
  9.680
  9.640
  9.610
  9.580
  9.560
  9.530
  9.510
  9.480
  9.460
  9.440
  9.420
  9.400
  9.380
  9.360
  9.340
  9.330
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
  -1,519
  -1,374
  -1,430
  -1,489
  -1,551
  -1,616
  -1,685
  -1,757
  -1,833
  -1,912
  -1,996
  -2,083
  -2,176
  -2,272
  -2,374
  -2,481
  -2,593
  -2,711
  -2,834
  -2,964
  -3,101
  -3,244
  -3,394
  -3,552
  -3,718
  -3,893
  -4,075
  -4,268
  -4,469
  -4,681
Depreciation, amort., depletion, $m
  3,672
  3,852
  4,041
  4,241
  4,450
  4,670
  4,901
  5,143
  5,398
  5,666
  5,948
  6,243
  6,553
  6,879
  7,222
  7,581
  7,959
  8,356
  8,772
  9,210
  9,669
  10,151
  10,658
  11,190
  11,749
  12,335
  12,951
  13,598
  14,277
  14,990
Funds from operations, $m
  2,153
  2,478
  2,612
  2,752
  2,899
  3,053
  3,216
  3,386
  3,566
  3,754
  3,952
  4,160
  4,378
  4,607
  4,848
  5,101
  5,366
  5,645
  5,938
  6,245
  6,568
  6,907
  7,264
  7,638
  8,030
  8,443
  8,876
  9,330
  9,808
  10,309
Change in working capital, $m
  -1,729
  -1,817
  -1,910
  -2,007
  -2,109
  -2,216
  -2,329
  -2,447
  -2,570
  -2,700
  -2,836
  -2,979
  -3,129
  -3,286
  -3,452
  -3,625
  -3,807
  -3,998
  -4,199
  -4,410
  -4,631
  -4,863
  -5,107
  -5,362
  -5,631
  -5,913
  -6,209
  -6,520
  -6,847
  -7,189
Cash from operations, $m
  3,882
  4,296
  4,522
  4,759
  5,008
  5,270
  5,544
  5,833
  6,136
  6,454
  6,788
  7,139
  7,507
  7,893
  8,299
  8,726
  9,173
  9,643
  10,137
  10,655
  11,199
  11,770
  12,370
  13,000
  13,661
  14,356
  15,085
  15,851
  16,654
  17,499
Maintenance CAPEX, $m
  -3,499
  -3,672
  -3,852
  -4,041
  -4,241
  -4,450
  -4,670
  -4,901
  -5,143
  -5,398
  -5,666
  -5,948
  -6,243
  -6,553
  -6,879
  -7,222
  -7,581
  -7,959
  -8,356
  -8,772
  -9,210
  -9,669
  -10,151
  -10,658
  -11,190
  -11,749
  -12,335
  -12,951
  -13,598
  -14,277
New CAPEX, $m
  -1,728
  -1,803
  -1,895
  -1,991
  -2,092
  -2,199
  -2,310
  -2,427
  -2,550
  -2,678
  -2,813
  -2,955
  -3,104
  -3,260
  -3,424
  -3,596
  -3,777
  -3,966
  -4,165
  -4,374
  -4,594
  -4,824
  -5,066
  -5,320
  -5,586
  -5,866
  -6,160
  -6,468
  -6,792
  -7,132
Cash from investing activities, $m
  -5,227
  -5,475
  -5,747
  -6,032
  -6,333
  -6,649
  -6,980
  -7,328
  -7,693
  -8,076
  -8,479
  -8,903
  -9,347
  -9,813
  -10,303
  -10,818
  -11,358
  -11,925
  -12,521
  -13,146
  -13,804
  -14,493
  -15,217
  -15,978
  -16,776
  -17,615
  -18,495
  -19,419
  -20,390
  -21,409
Free cash flow, $m
  -1,345
  -1,179
  -1,225
  -1,274
  -1,325
  -1,379
  -1,435
  -1,495
  -1,557
  -1,623
  -1,692
  -1,764
  -1,840
  -1,920
  -2,004
  -2,092
  -2,185
  -2,282
  -2,384
  -2,492
  -2,604
  -2,723
  -2,847
  -2,977
  -3,115
  -3,259
  -3,410
  -3,569
  -3,735
  -3,910
Issuance/(repayment) of debt, $m
  -2,341
  1,404
  1,476
  1,551
  1,630
  1,713
  1,799
  1,891
  1,986
  2,086
  2,192
  2,302
  2,418
  2,540
  2,667
  2,801
  2,942
  3,090
  3,245
  3,407
  3,578
  3,758
  3,946
  4,144
  4,351
  4,569
  4,798
  5,038
  5,291
  5,556
Issuance/(repurchase) of shares, $m
  5,020
  1,530
  1,594
  1,661
  1,732
  1,807
  1,885
  1,967
  2,053
  2,144
  2,239
  2,339
  2,444
  2,554
  2,670
  2,792
  2,920
  3,054
  3,195
  3,343
  3,498
  3,661
  3,833
  4,013
  4,202
  4,400
  4,609
  4,827
  5,057
  5,298
Cash from financing (excl. dividends), $m  
  2,679
  2,934
  3,070
  3,212
  3,362
  3,520
  3,684
  3,858
  4,039
  4,230
  4,431
  4,641
  4,862
  5,094
  5,337
  5,593
  5,862
  6,144
  6,440
  6,750
  7,076
  7,419
  7,779
  8,157
  8,553
  8,969
  9,407
  9,865
  10,348
  10,854
Total cash flow (excl. dividends), $m
  1,333
  1,755
  1,845
  1,939
  2,037
  2,141
  2,249
  2,363
  2,482
  2,608
  2,739
  2,877
  3,022
  3,174
  3,334
  3,501
  3,677
  3,862
  4,055
  4,259
  4,472
  4,697
  4,932
  5,179
  5,439
  5,711
  5,997
  6,297
  6,613
  6,944
Retained Cash Flow (-), $m
  -5,020
  -1,530
  -1,594
  -1,661
  -1,732
  -1,807
  -1,885
  -1,967
  -2,053
  -2,144
  -2,239
  -2,339
  -2,444
  -2,554
  -2,670
  -2,792
  -2,920
  -3,054
  -3,195
  -3,343
  -3,498
  -3,661
  -3,833
  -4,013
  -4,202
  -4,400
  -4,609
  -4,827
  -5,057
  -5,298
Prev. year cash balance distribution, $m
  323
  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
  20
  21
  22
  23
  24
  25
  27
  28
  29
  31
  32
  34
  36
  37
  39
  41
  43
  45
  48
  50
  53
  55
  58
  61
  64
  67
  70
  74
  78
  82
Cash available for distribution, $m
  -3,363
  225
  251
  277
  305
  334
  364
  396
  429
  464
  500
  538
  578
  620
  663
  709
  757
  808
  860
  916
  974
  1,035
  1,099
  1,166
  1,237
  1,311
  1,388
  1,470
  1,555
  1,645
Discount rate, %
  12.00
  12.60
  13.23
  13.89
  14.59
  15.32
  16.08
  16.89
  17.73
  18.62
  19.55
  20.52
  21.55
  22.63
  23.76
  24.95
  26.19
  27.50
  28.88
  30.32
  31.84
  33.43
  35.10
  36.86
  38.70
  40.64
  42.67
  44.80
  47.04
  49.39
PV of cash for distribution, $m
  -3,003
  178
  173
  165
  154
  142
  128
  114
  99
  84
  70
  57
  46
  36
  27
  20
  15
  10
  7
  5
  3
  2
  1
  1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  33.8
  22.8
  15.5
  10.5
  7.2
  4.9
  3.3
  2.3
  1.6
  1.1
  0.7
  0.5
  0.4
  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
  0.0

First Horizon National Corporation (FHN) is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank). The Company has four segments: regional banking, fixed income, corporate and non-strategic. The Company's regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and other selected markets. The regional banking segment provides investments and financial planning. The Company's fixed income segment consists of fixed income securities sales, trading, and strategies for institutional clients in the United States and abroad. The Company's corporate segment consists of funds management, tax credit investment activities and gains on the extinguishment of debt, among others. The non-strategic segment offers wind-down national consumer lending activities and mortgage banking elements.

FINANCIAL RATIOS  of  First Horizon National (FHN)

Valuation Ratios
P/E Ratio 19
Price to Sales 0
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 23.8
Price to Free Cash Flow 36.5
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 57.5%
Cap. Spend. - 3 Yr. Gr. Rate 18.5%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 82.6%
Total Debt to Equity 82.6%
Interest Coverage 5
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. 0.9%
Return On Total Capital 5%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 9.5%
Return On Equity - 3 Yr. Avg. 7.7%
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 30.7%
Eff/ Tax Rate - 3 Yr. Avg. 22.1%
Payout Ratio 35.7%

FHN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FHN stock intrinsic value calculation we used $1333 million for the last fiscal year's total revenue generated by First Horizon National. The default revenue input number comes from 2017 income statement of First Horizon National. 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 FHN stock valuation model: a) initial revenue growth rate of 4.9% 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 12%, whose default value for FHN is calculated based on our internal credit rating of First Horizon National, 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 Horizon National.
    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 FHN stock the variable cost ratio is equal to 72.8%.

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 FHN 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 Horizon National.

Corporate tax rate of 27% is the nominal tax rate for First Horizon National. 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 FHN stock is equal to 1.5%.

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 FHN are equal to 2625.8%.

Life of production assets of 10 years is the average useful life of capital assets used in First Horizon National 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 FHN is equal to -2647%. 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 Horizon National - 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 241 million for First Horizon National 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 Horizon National at the current share price and the inputted number of shares is $4.4 billion.

RELATED COMPANIES Price Int.Val. Rating
PNFP Pinnacle Finan 64.20 190.90  str.buy

COMPANY NEWS

▶ Hawaiian, Philly investors prepare to put downtown Nashville tower up for sale   [Aug-15-18 08:24AM  American City Business Journals]
▶ [$$] Two Regional Banks See Surge in Insider Stock Buys   [Aug-08-18 10:41AM  Barrons.com]
▶ First Horizon CEO Bryan Jordan talks Jim Cramer's 'Mad Money'   [Aug-06-18 08:08AM  American City Business Journals]
▶ How Nashville became the model for First Tennessee's new markets   [Jul-30-18 03:32PM  American City Business Journals]
▶ First Horizon declares quarterly dividends   [Jul-24-18 04:15PM  GlobeNewswire]
▶ First Horizon CFO: 'Look at the forest through the trees'   [03:31PM  American City Business Journals]
▶ First Horizon: 2Q Earnings Snapshot   [06:41AM  Associated Press]
▶ Capital Bank execs talk plans for growth after First Horizon merger   [Jun-27-18 01:22PM  American City Business Journals]
▶ Meet the new exec behind First Horizon's messaging   [Jun-26-18 03:44PM  American City Business Journals]
▶ First Tennessee Foundation Celebrates 25 Years of Giving   [Jun-25-18 04:15PM  GlobeNewswire]
▶ Capital Bank announces Charlotte leadership team post-First Horizon merger   [Jun-12-18 02:44PM  American City Business Journals]
▶ First Tennessee CEO on what's next for Capital Bank in North Carolina   [May-11-18 08:19AM  American City Business Journals]
▶ First Tennessee files notice to reduce staff, convert branch following merger   [May-03-18 08:58AM  American City Business Journals]
▶ Forbes names First Horizon one of nations best employers   [May-02-18 04:15PM  GlobeNewswire]
▶ First Horizon Declares Quarterly Dividends   [Apr-24-18 04:15PM  GlobeNewswire]
▶ Trade war more worrisome than 10-year Treasury yields   [Apr-23-18 07:05PM  CNBC Videos]
▶ First Horizon National: Cramer's Top Takeaways   [Apr-21-18 07:26AM  TheStreet.com]
▶ First Horizon releases solid earnings, focus remains on Capital Bank integration   [Apr-13-18 03:52PM  American City Business Journals]
▶ First Tennessee company makes $4B commitment   [Apr-10-18 12:16PM  American City Business Journals]
▶ First Horizon National Looks Ready to Move Higher   [Apr-06-18 01:54PM  TheStreet.com]
▶ Adrienne Sipe joins First Horizon National Corp.   [Mar-28-18 04:15PM  GlobeNewswire]
▶ Five Regional Bank Stocks to Buy Amid Regulatory Rollback   [Mar-18-18 11:45PM  Insider Monkey]
▶ First Horizon honored as a top company for executive women   [Mar-14-18 04:15PM  GlobeNewswire]
▶ First Tennessee receives top grades from customers   [Feb-27-18 04:15PM  GlobeNewswire]
▶ Following national tax cuts, First Tennessee boosts its minimum wage   [Feb-16-18 03:40PM  American City Business Journals]
▶ First Horizon increases minimum employee pay across eight-state footprint   [Feb-15-18 11:30AM  American City Business Journals]
▶ First Horizon announces pay increase   [06:30AM  GlobeNewswire]
▶ First Tennessee earns 23 awards for banking   [Feb-07-18 10:00AM  GlobeNewswire]
▶ Candace Steele Flippin joins First Horizon   [Jan-30-18 04:15PM  GlobeNewswire]
▶ First Horizon hires new executive VP   [03:50PM  American City Business Journals]
▶ First Horizon National: Cramer's Top Takeaways   [Jan-25-18 06:35AM  TheStreet.com]
▶ First Horizon releases earnings, quarter with a 'lot of moving parts'   [Jan-19-18 01:30PM  American City Business Journals]
▶ First Horizon reports 4Q loss   [07:45AM  Associated Press]
▶ Memphis public companies talk tax reform   [Jan-08-18 09:20AM  American City Business Journals]
▶ First Horizon to offer employee bonuses   [Dec-27-17 12:26PM  American City Business Journals]
▶ First Horizon announces bonus for employees   [Dec-22-17 04:30PM  GlobeNewswire]
▶ Kevin Lukassen joins First Tennessee Bank   [Dec-20-17 04:30PM  GlobeNewswire]
▶ First Horizon National Gets Technical Rating Upgrade   [03:00AM  Investor's Business Daily]
▶ First Tennessee earns awards for best brand   [Dec-14-17 03:10PM  GlobeNewswire]
▶ Here's how First Tennessee's $2.2 billion deal will impact Nashville   [Dec-05-17 01:05PM  American City Business Journals]
▶ Brad Martin retires from Memphis public company board   [Dec-04-17 06:20PM  American City Business Journals]
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