Intrinsic value of Gaming and Leisure Properties, Inc. - GLPI

Previous Close

$36.87

  Intrinsic Value

$55.70

stock screener

  Rating & Target

str. buy

+51%

Previous close

$36.87

 
Intrinsic value

$55.70

 
Up/down potential

+51%

 
Rating

str. buy

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

We calculate the intrinsic value of GLPI 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 7.9

 

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, %
  26.00
  23.90
  22.01
  20.31
  18.78
  17.40
  16.16
  15.04
  14.04
  13.14
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
Revenue, $m
  1,331
  1,649
  2,011
  2,420
  2,874
  3,374
  3,920
  4,509
  5,143
  5,818
  6,535
  7,292
  8,090
  8,926
  9,801
  10,715
  11,668
  12,660
  13,692
  14,765
  15,880
  17,039
  18,243
  19,495
  20,796
  22,149
  23,557
  25,023
  26,549
  28,139
Variable operating expenses, $m
  308
  204
  86
  -48
  -196
  -360
  -538
  -730
  -937
  -1,158
  -2,136
  -2,383
  -2,644
  -2,917
  -3,203
  -3,501
  -3,813
  -4,137
  -4,474
  -4,825
  -5,189
  -5,568
  -5,962
  -6,371
  -6,796
  -7,238
  -7,698
  -8,177
  -8,676
  -9,195
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
  308
  204
  86
  -48
  -196
  -360
  -538
  -730
  -937
  -1,158
  -2,136
  -2,383
  -2,644
  -2,917
  -3,203
  -3,501
  -3,813
  -4,137
  -4,474
  -4,825
  -5,189
  -5,568
  -5,962
  -6,371
  -6,796
  -7,238
  -7,698
  -8,177
  -8,676
  -9,195
Operating income, $m
  1,022
  1,444
  1,926
  2,468
  3,070
  3,734
  4,458
  5,240
  6,080
  6,976
  8,671
  9,676
  10,733
  11,843
  13,004
  14,216
  15,480
  16,797
  18,166
  19,589
  21,069
  22,607
  24,204
  25,865
  27,592
  29,387
  31,255
  33,200
  35,225
  37,334
EBITDA, $m
  2,016
  2,497
  3,047
  3,666
  4,354
  5,112
  5,938
  6,831
  7,790
  8,813
  9,899
  11,047
  12,254
  13,521
  14,847
  16,231
  17,674
  19,177
  20,740
  22,366
  24,055
  25,810
  27,635
  29,531
  31,502
  33,552
  35,685
  37,905
  40,217
  42,625
Interest expense (income), $m
  155
  316
  405
  508
  625
  757
  904
  1,066
  1,242
  1,432
  1,637
  1,855
  2,087
  2,332
  2,589
  2,859
  3,142
  3,437
  3,745
  4,066
  4,399
  4,746
  5,106
  5,481
  5,870
  6,274
  6,695
  7,132
  7,587
  8,061
  8,554
Earnings before tax, $m
  706
  1,039
  1,418
  1,842
  2,313
  2,830
  3,392
  3,998
  4,648
  5,339
  6,815
  7,589
  8,402
  9,254
  10,144
  11,074
  12,043
  13,051
  14,100
  15,190
  16,323
  17,500
  18,724
  19,995
  21,317
  22,692
  24,123
  25,613
  27,164
  28,780
Tax expense, $m
  191
  281
  383
  497
  625
  764
  916
  1,079
  1,255
  1,442
  1,840
  2,049
  2,268
  2,498
  2,739
  2,990
  3,252
  3,524
  3,807
  4,101
  4,407
  4,725
  5,055
  5,399
  5,756
  6,127
  6,513
  6,915
  7,334
  7,771
Net income, $m
  515
  758
  1,035
  1,345
  1,689
  2,066
  2,476
  2,919
  3,393
  3,898
  4,975
  5,540
  6,133
  6,755
  7,405
  8,084
  8,791
  9,527
  10,293
  11,089
  11,916
  12,775
  13,668
  14,596
  15,562
  16,565
  17,610
  18,697
  19,830
  21,010

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
  10,818
  13,403
  16,353
  19,674
  23,368
  27,435
  31,868
  36,663
  41,810
  47,302
  53,131
  59,288
  65,769
  72,568
  79,683
  87,113
  94,858
  102,923
  111,313
  120,037
  129,103
  138,525
  148,316
  158,492
  169,072
  180,074
  191,521
  203,436
  215,844
  228,771
Adjusted assets (=assets-cash), $m
  10,818
  13,403
  16,353
  19,674
  23,368
  27,435
  31,868
  36,663
  41,810
  47,302
  53,131
  59,288
  65,769
  72,568
  79,683
  87,113
  94,858
  102,923
  111,313
  120,037
  129,103
  138,525
  148,316
  158,492
  169,072
  180,074
  191,521
  203,436
  215,844
  228,771
Revenue / Adjusted assets
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
  0.123
Average production assets, $m
  7,506
  9,300
  11,346
  13,651
  16,214
  19,035
  22,112
  25,438
  29,009
  32,820
  36,864
  41,137
  45,634
  50,351
  55,288
  60,442
  65,817
  71,412
  77,234
  83,287
  89,577
  96,115
  102,908
  109,969
  117,309
  124,943
  132,886
  141,153
  149,762
  158,731
Working capital, $m
  -23
  -28
  -34
  -41
  -49
  -57
  -67
  -77
  -87
  -99
  -111
  -124
  -138
  -152
  -167
  -182
  -198
  -215
  -233
  -251
  -270
  -290
  -310
  -331
  -354
  -377
  -400
  -425
  -451
  -478
Total debt, $m
  7,504
  9,406
  11,578
  14,022
  16,741
  19,734
  22,997
  26,525
  30,314
  34,356
  38,646
  43,178
  47,948
  52,952
  58,189
  63,657
  69,357
  75,293
  81,468
  87,889
  94,562
  101,496
  108,702
  116,192
  123,979
  132,076
  140,501
  149,271
  158,403
  167,917
Total liabilities, $m
  7,962
  9,865
  12,036
  14,480
  17,199
  20,192
  23,455
  26,984
  30,772
  34,814
  39,104
  43,636
  48,406
  53,410
  58,647
  64,115
  69,816
  75,751
  81,927
  88,347
  95,020
  101,954
  109,161
  116,650
  124,437
  132,535
  140,960
  149,729
  158,861
  168,375
Total equity, $m
  2,856
  3,538
  4,317
  5,194
  6,169
  7,243
  8,413
  9,679
  11,038
  12,488
  14,026
  15,652
  17,363
  19,158
  21,036
  22,998
  25,043
  27,172
  29,387
  31,690
  34,083
  36,571
  39,155
  41,842
  44,635
  47,540
  50,562
  53,707
  56,983
  60,395
Total liabilities and equity, $m
  10,818
  13,403
  16,353
  19,674
  23,368
  27,435
  31,868
  36,663
  41,810
  47,302
  53,130
  59,288
  65,769
  72,568
  79,683
  87,113
  94,859
  102,923
  111,314
  120,037
  129,103
  138,525
  148,316
  158,492
  169,072
  180,075
  191,522
  203,436
  215,844
  228,770
Debt-to-equity ratio
  2.630
  2.660
  2.680
  2.700
  2.710
  2.720
  2.730
  2.740
  2.750
  2.750
  2.760
  2.760
  2.760
  2.760
  2.770
  2.770
  2.770
  2.770
  2.770
  2.770
  2.770
  2.780
  2.780
  2.780
  2.780
  2.780
  2.780
  2.780
  2.780
  2.780
Adjusted equity ratio
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264
  0.264

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  515
  758
  1,035
  1,345
  1,689
  2,066
  2,476
  2,919
  3,393
  3,898
  4,975
  5,540
  6,133
  6,755
  7,405
  8,084
  8,791
  9,527
  10,293
  11,089
  11,916
  12,775
  13,668
  14,596
  15,562
  16,565
  17,610
  18,697
  19,830
  21,010
Depreciation, amort., depletion, $m
  993
  1,053
  1,121
  1,198
  1,284
  1,378
  1,480
  1,591
  1,710
  1,837
  1,229
  1,371
  1,521
  1,678
  1,843
  2,015
  2,194
  2,380
  2,574
  2,776
  2,986
  3,204
  3,430
  3,666
  3,910
  4,165
  4,430
  4,705
  4,992
  5,291
Funds from operations, $m
  1,509
  1,812
  2,156
  2,543
  2,972
  3,444
  3,956
  4,510
  5,103
  5,735
  6,204
  6,911
  7,654
  8,434
  9,248
  10,099
  10,985
  11,908
  12,867
  13,865
  14,902
  15,979
  17,098
  18,262
  19,472
  20,730
  22,039
  23,402
  24,822
  26,301
Change in working capital, $m
  -5
  -5
  -6
  -7
  -8
  -9
  -9
  -10
  -11
  -11
  -12
  -13
  -14
  -14
  -15
  -16
  -16
  -17
  -18
  -18
  -19
  -20
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
Cash from operations, $m
  1,513
  1,817
  2,162
  2,550
  2,980
  3,452
  3,966
  4,520
  5,114
  5,746
  6,216
  6,924
  7,668
  8,448
  9,263
  10,114
  11,001
  11,925
  12,885
  13,883
  14,921
  15,999
  17,119
  18,283
  19,494
  20,753
  22,063
  23,427
  24,848
  26,328
Maintenance CAPEX, $m
  -199
  -250
  -310
  -378
  -455
  -540
  -635
  -737
  -848
  -967
  -1,094
  -1,229
  -1,371
  -1,521
  -1,678
  -1,843
  -2,015
  -2,194
  -2,380
  -2,574
  -2,776
  -2,986
  -3,204
  -3,430
  -3,666
  -3,910
  -4,165
  -4,430
  -4,705
  -4,992
New CAPEX, $m
  -1,548
  -1,794
  -2,047
  -2,304
  -2,563
  -2,821
  -3,076
  -3,327
  -3,571
  -3,811
  -4,044
  -4,273
  -4,497
  -4,718
  -4,936
  -5,155
  -5,374
  -5,596
  -5,822
  -6,053
  -6,291
  -6,537
  -6,793
  -7,061
  -7,341
  -7,634
  -7,942
  -8,267
  -8,609
  -8,969
Cash from investing activities, $m
  -1,747
  -2,044
  -2,357
  -2,682
  -3,018
  -3,361
  -3,711
  -4,064
  -4,419
  -4,778
  -5,138
  -5,502
  -5,868
  -6,239
  -6,614
  -6,998
  -7,389
  -7,790
  -8,202
  -8,627
  -9,067
  -9,523
  -9,997
  -10,491
  -11,007
  -11,544
  -12,107
  -12,697
  -13,314
  -13,961
Free cash flow, $m
  -233
  -227
  -194
  -132
  -38
  90
  255
  456
  694
  969
  1,078
  1,422
  1,800
  2,209
  2,648
  3,117
  3,612
  4,135
  4,683
  5,256
  5,854
  6,476
  7,122
  7,792
  8,488
  9,209
  9,956
  10,731
  11,534
  12,366
Issuance/(repayment) of debt, $m
  1,650
  1,903
  2,171
  2,444
  2,719
  2,993
  3,263
  3,529
  3,788
  4,042
  4,290
  4,532
  4,770
  5,004
  5,236
  5,468
  5,701
  5,936
  6,175
  6,420
  6,673
  6,934
  7,206
  7,490
  7,787
  8,098
  8,425
  8,769
  9,132
  9,514
Issuance/(repurchase) of shares, $m
  75
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,725
  1,903
  2,171
  2,444
  2,719
  2,993
  3,263
  3,529
  3,788
  4,042
  4,290
  4,532
  4,770
  5,004
  5,236
  5,468
  5,701
  5,936
  6,175
  6,420
  6,673
  6,934
  7,206
  7,490
  7,787
  8,098
  8,425
  8,769
  9,132
  9,514
Total cash flow (excl. dividends), $m
  1,491
  1,676
  1,977
  2,312
  2,681
  3,083
  3,518
  3,985
  4,483
  5,011
  5,368
  5,955
  6,570
  7,213
  7,885
  8,585
  9,313
  10,071
  10,858
  11,677
  12,527
  13,410
  14,328
  15,282
  16,274
  17,307
  18,381
  19,500
  20,666
  21,881
Retained Cash Flow (-), $m
  -590
  -683
  -779
  -877
  -975
  -1,073
  -1,170
  -1,266
  -1,359
  -1,450
  -1,539
  -1,626
  -1,711
  -1,795
  -1,878
  -1,961
  -2,045
  -2,129
  -2,215
  -2,303
  -2,394
  -2,487
  -2,585
  -2,687
  -2,793
  -2,905
  -3,022
  -3,146
  -3,276
  -3,413
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
  901
  993
  1,198
  1,435
  1,705
  2,010
  2,348
  2,719
  3,124
  3,561
  3,829
  4,329
  4,859
  5,418
  6,007
  6,623
  7,268
  7,942
  8,643
  9,374
  10,133
  10,923
  11,743
  12,596
  13,481
  14,402
  15,359
  16,354
  17,390
  18,468
Discount rate, %
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.60
  17.43
  18.30
  19.22
  20.18
  21.19
  22.24
  23.36
  24.52
  25.75
  27.04
  28.39
  29.81
  31.30
  32.87
  34.51
  36.23
  38.05
  39.95
  41.95
  44.04
PV of cash for distribution, $m
  814
  803
  857
  900
  925
  932
  919
  885
  834
  767
  654
  576
  495
  413
  336
  266
  205
  153
  111
  78
  53
  35
  22
  14
  8
  5
  3
  1
  1
  0
Current shareholders' claim on cash, %
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1
  99.1

Gaming and Leisure Properties, Inc. (GLPI) is a self-administered and self-managed Pennsylvania real estate investment trust (REIT). The Company is engaged in the business of acquiring, financing and owning real estate property to be leased to gaming operators in triple net lease arrangements. Its segments include GLP Capital, L.P. (GLP Capital), through which the Company owns all of its real estate assets, and the TRS Properties, which consists of Hollywood Casino Perryville and Hollywood Casino Baton Rouge. The GLP Capital segment consists of the leased real property. As of December 31, 2016, the Company had 34 rental properties, consisting of the real property associated with 18 gaming and related facilities operated by Penn National Gaming, Inc. (Penn), the real property associated with 15 gaming and related facilities operated by Pinnacle Entertainment, Inc. (Pinnacle), and the real property associated with the Casino Queen in East St. Louis, Illinois.

FINANCIAL RATIOS  of  Gaming and Leisure Properties, Inc. (GLPI)

Valuation Ratios
P/E Ratio 26.5
Price to Sales 9.2
Price to Book 3.1
Price to Tangible Book
Price to Cash Flow 14.9
Price to Free Cash Flow -2.8
Growth Rates
Sales Growth Rate 44%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 17115.8%
Cap. Spend. - 3 Yr. Gr. Rate 189.8%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 191.7%
Total Debt to Equity 191.7%
Interest Coverage 3
Management Effectiveness
Return On Assets 9%
Ret/ On Assets - 3 Yr. Avg. 9.3%
Return On Total Capital 6.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.8%
Return On Equity 26.5%
Return On Equity - 3 Yr. Avg. -283.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 90.1%
Gross Margin - 3 Yr. Avg. 86.5%
EBITDA Margin 68.6%
EBITDA Margin - 3 Yr. Avg. 63.8%
Operating Margin 58%
Oper. Margin - 3 Yr. Avg. 48.8%
Pre-Tax Margin 35.9%
Pre-Tax Margin - 3 Yr. Avg. 28%
Net Profit Margin 34.9%
Net Profit Margin - 3 Yr. Avg. 26.9%
Effective Tax Rate 2.7%
Eff/ Tax Rate - 3 Yr. Avg. 4%
Payout Ratio 148.1%

GLPI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GLPI stock intrinsic value calculation we used $1056 million for the last fiscal year's total revenue generated by Gaming and Leisure Properties, Inc.. The default revenue input number comes from 0001 income statement of Gaming and Leisure Properties, Inc.. 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 GLPI stock valuation model: a) initial revenue growth rate of 26% 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 10.7%, whose default value for GLPI is calculated based on our internal credit rating of Gaming and Leisure Properties, Inc., 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 Gaming and Leisure Properties, Inc..
    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 GLPI stock the variable cost ratio is equal to 37.7%.

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 GLPI 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 Gaming and Leisure Properties, Inc..

Corporate tax rate of 27% is the nominal tax rate for Gaming and Leisure Properties, Inc.. 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 GLPI 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 GLPI are equal to 564.1%.

Life of production assets of 42.6 years is the average useful life of capital assets used in Gaming and Leisure Properties, Inc. 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 GLPI is equal to -1.7%. 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 - $2265.607 million for Gaming and Leisure Properties, Inc. - 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 214.633 million for Gaming and Leisure Properties, Inc. 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 Gaming and Leisure Properties, Inc. at the current share price and the inputted number of shares is $7.9 billion.

RELATED COMPANIES Price Int.Val. Rating
PENN Penn National 22.22 91.94  str.buy

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