Intrinsic value of International Game Technology - IGT

Previous Close

$15.98

  Intrinsic Value

$70.52

stock screener

  Rating & Target

str. buy

+341%

Previous close

$15.98

 
Intrinsic value

$70.52

 
Up/down potential

+341%

 
Rating

str. buy

We calculate the intrinsic value of IGT 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 3.3

 

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, %
  9.30
  8.87
  8.48
  8.13
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
Revenue, $m
  6,481
  7,055
  7,654
  8,276
  8,924
  9,597
  10,296
  11,022
  11,777
  12,562
  13,379
  14,228
  15,113
  16,033
  16,993
  17,993
  19,036
  20,124
  21,260
  22,447
  23,687
  24,982
  26,337
  27,754
  29,237
  30,789
  32,414
  34,116
  35,899
  37,766
Variable operating expenses, $m
  5,562
  5,970
  6,395
  6,837
  7,297
  7,774
  8,271
  8,787
  9,323
  9,880
  9,500
  10,103
  10,731
  11,385
  12,066
  12,776
  13,517
  14,290
  15,096
  15,939
  16,819
  17,739
  18,701
  19,708
  20,761
  21,863
  23,017
  24,225
  25,491
  26,817
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
  5,562
  5,970
  6,395
  6,837
  7,297
  7,774
  8,271
  8,787
  9,323
  9,880
  9,500
  10,103
  10,731
  11,385
  12,066
  12,776
  13,517
  14,290
  15,096
  15,939
  16,819
  17,739
  18,701
  19,708
  20,761
  21,863
  23,017
  24,225
  25,491
  26,817
Operating income, $m
  919
  1,085
  1,259
  1,439
  1,627
  1,822
  2,025
  2,236
  2,454
  2,682
  3,879
  4,125
  4,381
  4,648
  4,927
  5,217
  5,519
  5,834
  6,164
  6,508
  6,867
  7,243
  7,636
  8,047
  8,477
  8,927
  9,398
  9,891
  10,408
  10,949
EBITDA, $m
  2,488
  2,709
  2,939
  3,178
  3,426
  3,685
  3,953
  4,232
  4,522
  4,824
  5,137
  5,463
  5,803
  6,156
  6,525
  6,909
  7,309
  7,727
  8,163
  8,619
  9,095
  9,592
  10,113
  10,657
  11,226
  11,822
  12,446
  13,100
  13,784
  14,501
Interest expense (income), $m
  0
  603
  689
  778
  871
  968
  1,069
  1,174
  1,282
  1,395
  1,513
  1,635
  1,762
  1,894
  2,031
  2,175
  2,324
  2,479
  2,642
  2,811
  2,988
  3,172
  3,365
  3,566
  3,777
  3,997
  4,228
  4,469
  4,722
  4,987
  5,264
Earnings before tax, $m
  315
  397
  481
  568
  659
  753
  851
  953
  1,059
  1,169
  2,244
  2,363
  2,488
  2,617
  2,752
  2,893
  3,040
  3,193
  3,353
  3,520
  3,695
  3,878
  4,069
  4,270
  4,479
  4,698
  4,928
  5,169
  5,421
  5,685
Tax expense, $m
  85
  107
  130
  153
  178
  203
  230
  257
  286
  316
  606
  638
  672
  707
  743
  781
  821
  862
  905
  950
  998
  1,047
  1,099
  1,153
  1,209
  1,269
  1,331
  1,396
  1,464
  1,535
Net income, $m
  230
  289
  351
  415
  481
  550
  621
  696
  773
  854
  1,638
  1,725
  1,816
  1,910
  2,009
  2,112
  2,219
  2,331
  2,448
  2,570
  2,698
  2,831
  2,971
  3,117
  3,270
  3,430
  3,598
  3,773
  3,957
  4,150

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
  19,879
  21,642
  23,478
  25,388
  27,374
  29,437
  31,582
  33,811
  36,127
  38,535
  41,040
  43,645
  46,358
  49,182
  52,125
  55,193
  58,392
  61,731
  65,216
  68,855
  72,658
  76,633
  80,789
  85,136
  89,685
  94,446
  99,431
  104,651
  110,119
  115,848
Adjusted assets (=assets-cash), $m
  19,879
  21,642
  23,478
  25,388
  27,374
  29,437
  31,582
  33,811
  36,127
  38,535
  41,040
  43,645
  46,358
  49,182
  52,125
  55,193
  58,392
  61,731
  65,216
  68,855
  72,658
  76,633
  80,789
  85,136
  89,685
  94,446
  99,431
  104,651
  110,119
  115,848
Revenue / Adjusted assets
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
Average production assets, $m
  7,375
  8,029
  8,710
  9,419
  10,155
  10,921
  11,717
  12,543
  13,403
  14,296
  15,225
  16,192
  17,198
  18,246
  19,338
  20,476
  21,663
  22,901
  24,194
  25,544
  26,955
  28,430
  29,972
  31,585
  33,272
  35,038
  36,888
  38,824
  40,853
  42,978
Working capital, $m
  -1,730
  -1,884
  -2,044
  -2,210
  -2,383
  -2,562
  -2,749
  -2,943
  -3,145
  -3,354
  -3,572
  -3,799
  -4,035
  -4,281
  -4,537
  -4,804
  -5,083
  -5,373
  -5,677
  -5,993
  -6,324
  -6,670
  -7,032
  -7,410
  -7,806
  -8,221
  -8,655
  -9,109
  -9,585
  -10,084
Total debt, $m
  11,482
  12,972
  14,524
  16,137
  17,815
  19,559
  21,371
  23,255
  25,212
  27,247
  29,363
  31,565
  33,857
  36,244
  38,730
  41,323
  44,026
  46,847
  49,792
  52,867
  56,081
  59,439
  62,951
  66,625
  70,468
  74,492
  78,704
  83,115
  87,735
  92,576
Total liabilities, $m
  16,798
  18,288
  19,839
  21,453
  23,131
  24,875
  26,687
  28,570
  30,527
  32,562
  34,678
  36,880
  39,172
  41,559
  44,046
  46,638
  49,342
  52,162
  55,107
  58,183
  61,396
  64,755
  68,267
  71,940
  75,784
  79,807
  84,019
  88,430
  93,051
  97,892
Total equity, $m
  3,081
  3,355
  3,639
  3,935
  4,243
  4,563
  4,895
  5,241
  5,600
  5,973
  6,361
  6,765
  7,185
  7,623
  8,079
  8,555
  9,051
  9,568
  10,108
  10,673
  11,262
  11,878
  12,522
  13,196
  13,901
  14,639
  15,412
  16,221
  17,068
  17,956
Total liabilities and equity, $m
  19,879
  21,643
  23,478
  25,388
  27,374
  29,438
  31,582
  33,811
  36,127
  38,535
  41,039
  43,645
  46,357
  49,182
  52,125
  55,193
  58,393
  61,730
  65,215
  68,856
  72,658
  76,633
  80,789
  85,136
  89,685
  94,446
  99,431
  104,651
  110,119
  115,848
Debt-to-equity ratio
  3.730
  3.870
  3.990
  4.100
  4.200
  4.290
  4.370
  4.440
  4.500
  4.560
  4.620
  4.670
  4.710
  4.750
  4.790
  4.830
  4.860
  4.900
  4.930
  4.950
  4.980
  5.000
  5.030
  5.050
  5.070
  5.090
  5.110
  5.120
  5.140
  5.160
Adjusted equity ratio
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155
  0.155

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  230
  289
  351
  415
  481
  550
  621
  696
  773
  854
  1,638
  1,725
  1,816
  1,910
  2,009
  2,112
  2,219
  2,331
  2,448
  2,570
  2,698
  2,831
  2,971
  3,117
  3,270
  3,430
  3,598
  3,773
  3,957
  4,150
Depreciation, amort., depletion, $m
  1,570
  1,624
  1,680
  1,738
  1,799
  1,863
  1,928
  1,997
  2,068
  2,142
  1,258
  1,338
  1,421
  1,508
  1,598
  1,692
  1,790
  1,893
  2,000
  2,111
  2,228
  2,350
  2,477
  2,610
  2,750
  2,896
  3,049
  3,209
  3,376
  3,552
Funds from operations, $m
  1,800
  1,913
  2,031
  2,153
  2,280
  2,413
  2,550
  2,693
  2,841
  2,995
  2,896
  3,063
  3,237
  3,418
  3,607
  3,804
  4,009
  4,223
  4,447
  4,681
  4,925
  5,181
  5,448
  5,727
  6,019
  6,326
  6,646
  6,982
  7,334
  7,702
Change in working capital, $m
  -147
  -153
  -160
  -166
  -173
  -180
  -187
  -194
  -202
  -210
  -218
  -227
  -236
  -246
  -256
  -267
  -278
  -291
  -303
  -317
  -331
  -346
  -362
  -378
  -396
  -414
  -434
  -454
  -476
  -499
Cash from operations, $m
  1,947
  2,067
  2,191
  2,319
  2,453
  2,592
  2,737
  2,887
  3,043
  3,205
  3,114
  3,290
  3,473
  3,664
  3,863
  4,071
  4,288
  4,514
  4,751
  4,998
  5,256
  5,527
  5,809
  6,105
  6,415
  6,740
  7,080
  7,436
  7,810
  8,201
Maintenance CAPEX, $m
  -557
  -609
  -664
  -720
  -778
  -839
  -903
  -968
  -1,037
  -1,108
  -1,181
  -1,258
  -1,338
  -1,421
  -1,508
  -1,598
  -1,692
  -1,790
  -1,893
  -2,000
  -2,111
  -2,228
  -2,350
  -2,477
  -2,610
  -2,750
  -2,896
  -3,049
  -3,209
  -3,376
New CAPEX, $m
  -629
  -654
  -681
  -709
  -737
  -766
  -796
  -827
  -859
  -893
  -929
  -967
  -1,006
  -1,048
  -1,092
  -1,138
  -1,187
  -1,238
  -1,293
  -1,350
  -1,411
  -1,475
  -1,542
  -1,613
  -1,688
  -1,766
  -1,849
  -1,937
  -2,029
  -2,125
Cash from investing activities, $m
  -1,186
  -1,263
  -1,345
  -1,429
  -1,515
  -1,605
  -1,699
  -1,795
  -1,896
  -2,001
  -2,110
  -2,225
  -2,344
  -2,469
  -2,600
  -2,736
  -2,879
  -3,028
  -3,186
  -3,350
  -3,522
  -3,703
  -3,892
  -4,090
  -4,298
  -4,516
  -4,745
  -4,986
  -5,238
  -5,501
Free cash flow, $m
  760
  803
  846
  891
  938
  987
  1,038
  1,091
  1,147
  1,204
  1,004
  1,065
  1,129
  1,195
  1,264
  1,335
  1,409
  1,485
  1,565
  1,648
  1,734
  1,824
  1,918
  2,016
  2,118
  2,224
  2,335
  2,451
  2,572
  2,699
Issuance/(repayment) of debt, $m
  1,426
  1,490
  1,551
  1,614
  1,678
  1,744
  1,812
  1,883
  1,957
  2,035
  2,116
  2,202
  2,292
  2,387
  2,487
  2,592
  2,704
  2,821
  2,945
  3,075
  3,213
  3,359
  3,512
  3,673
  3,844
  4,023
  4,212
  4,411
  4,621
  4,841
Issuance/(repurchase) of shares, $m
  24
  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  
  1,450
  1,490
  1,551
  1,614
  1,678
  1,744
  1,812
  1,883
  1,957
  2,035
  2,116
  2,202
  2,292
  2,387
  2,487
  2,592
  2,704
  2,821
  2,945
  3,075
  3,213
  3,359
  3,512
  3,673
  3,844
  4,023
  4,212
  4,411
  4,621
  4,841
Total cash flow (excl. dividends), $m
  2,211
  2,293
  2,397
  2,505
  2,616
  2,731
  2,851
  2,975
  3,104
  3,239
  3,120
  3,267
  3,421
  3,582
  3,750
  3,927
  4,112
  4,306
  4,510
  4,723
  4,948
  5,183
  5,430
  5,689
  5,961
  6,247
  6,547
  6,862
  7,193
  7,540
Retained Cash Flow (-), $m
  -254
  -273
  -285
  -296
  -308
  -320
  -332
  -345
  -359
  -373
  -388
  -404
  -420
  -438
  -456
  -475
  -496
  -517
  -540
  -564
  -589
  -616
  -644
  -674
  -705
  -738
  -773
  -809
  -848
  -888
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
  1,956
  2,020
  2,113
  2,209
  2,308
  2,411
  2,518
  2,629
  2,745
  2,865
  2,732
  2,863
  3,000
  3,144
  3,294
  3,451
  3,616
  3,789
  3,970
  4,159
  4,358
  4,567
  4,786
  5,015
  5,256
  5,509
  5,774
  6,053
  6,345
  6,652
Discount rate, %
  10.20
  10.71
  11.25
  11.81
  12.40
  13.02
  13.67
  14.35
  15.07
  15.82
  16.61
  17.45
  18.32
  19.23
  20.20
  21.21
  22.27
  23.38
  24.55
  25.77
  27.06
  28.42
  29.84
  31.33
  32.90
  34.54
  36.27
  38.08
  39.99
  41.98
PV of cash for distribution, $m
  1,775
  1,648
  1,535
  1,413
  1,287
  1,157
  1,027
  899
  776
  659
  504
  416
  337
  268
  209
  159
  119
  86
  61
  42
  29
  19
  12
  7
  4
  2
  1
  1
  0
  0
Current shareholders' claim on cash, %
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3
  99.3

International Game Technology PLC operates and provides technology products and services across lotteries, electronic gaming machines, sports betting, and interactive gaming markets worldwide. It offers a suite of lottery-enabled point-of-sale terminals; online lottery transaction processing systems; supplies instant ticket games; and printing services, instant ticket marketing plans and graphic design, programming, production, packaging, and shipping and delivery services. The company also provides video lottery terminals (VLT), VLT central systems, and VLT games to government customers; video and traditional mechanical reel slot machines and casino systems to casino operators; and amusement with prize machines and games to licensed operators, as well as designs, develops, manufactures, and provides cabinets, games, systems, and software in legal gaming markets. In addition, it is involved in the provision of sports betting platform that offers betting on sporting and motor sports events, as well as non-sporting events; and interactive gaming (or iGaming) that enables game play through the Internet, such as Internet poker, table games, slots, bingo, iLottery, and gaming management systems. Further, the company provides transaction processing of commercial transactions, such as prepaid cellular telephone recharges, prepaid mobile data, collection and payment services for the payment of utility bills, money transfer services, ticketing for sporting and musical events, credit card transactions, social security contributions and payments, and prepaid cards. Additionally, it offers collection, and processing and network services on behalf of third parties; and issues electronic money through immediate conversion of funds received. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was incorporated in 2014 and is headquartered in London, the United Kingdom.

FINANCIAL RATIOS  of  International Game Technology (IGT)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
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 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

IGT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the IGT stock intrinsic value calculation we used $5929.12244898 million for the last fiscal year's total revenue generated by International Game Technology. The default revenue input number comes from 0001 income statement of International Game Technology. 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 IGT stock valuation model: a) initial revenue growth rate of 9.3% 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 10.2%, whose default value for IGT is calculated based on our internal credit rating of International Game Technology, 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 International Game Technology.
    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 IGT stock the variable cost ratio is equal to 87.2%.

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 IGT 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 6% for International Game Technology.

Corporate tax rate of 27% is the nominal tax rate for International Game Technology. 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 IGT 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 IGT are equal to 113.8%.

Life of production assets of 12.1 years is the average useful life of capital assets used in International Game Technology 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 IGT is equal to -26.7%. 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 - $2827.04801921 million for International Game Technology - 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 203.45 million for International Game Technology 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 International Game Technology at the current share price and the inputted number of shares is $3.3 billion.

RELATED COMPANIES Price Int.Val. Rating
SGMS Scientific Gam 19.96 16.98  sell

COMPANY NEWS

▶ IGT Enters Electronic Bingo Market in Canada   [Nov-14-18 04:31PM  PR Newswire]
▶ IGT: 3Q Earnings Snapshot   [10:16AM  Associated Press]
▶ How To Trade Growth Stocks: Don't Dismiss Every Deep Cup With Handle   [Oct-23-18 07:05PM  Investor's Business Daily]
▶ IGT at G2E 2018: "Your Best Bet"   [Oct-01-18 06:45AM  PR Newswire]
▶ Who Are The Major Shareholders In Igoria Trade SA (WSE:IGT)?   [Sep-03-18 06:49AM  Simply Wall St.]
▶ 5 Sports Betting Stocks to Put Your Money On   [Jul-03-18 10:01AM  InvestorPlace]
▶ Dont Trust NYSE:IGTs 3.21% Yield   [11:32AM  Simply Wall St.]
▶ 6 Smart Ways to Wager on Expanded Sports Betting   [Jun-01-18 12:07PM  TheStreet.com]
▶ Six Smart Ways to Wager on Expanded Sports Betting   [May-31-18 03:00PM  TheStreet.com]
▶ Game Technology Shows Rising Price Performance With Jump To 81 RS Rating   [May-25-18 03:00AM  Investor's Business Daily]
▶ IGT: 1Q Earnings Snapshot   [04:40PM  Associated Press]
▶ Sports Betting: 4 Stocks To Bet On   [May-17-18 11:56AM  Forbes]
▶ Sports Betting Opens New World For Gaming Companies   [May-16-18 02:00PM  Motley Fool]
▶ 3 Casino Plays Primed for Sports Betting Profits   [May-15-18 01:15PM  Investopedia]
▶ IGT Presents Market-Approved Games at G2E Asia 2018   [May-08-18 06:45AM  PR Newswire]
▶ Casinos Turn to Virtual Reality to Excite Gamblers   [Mar-25-18 09:31AM  Motley Fool]
▶ IGT Posts 2017 Annual Report   [Mar-15-18 04:45PM  PR Newswire]
▶ Gambling vendor exec next to lead North Carolina lottery   [Mar-13-18 02:51PM  Associated Press]
▶ International Game Technology is Twice Blessed   [Mar-09-18 03:36PM  TheStreet.com]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.