Intrinsic value of Johnson Controls International - JCI

Previous Close

$32.23

  Intrinsic Value

$37.64

stock screener

  Rating & Target

hold

+17%

Previous close

$32.23

 
Intrinsic value

$37.64

 
Up/down potential

+17%

 
Rating

hold

We calculate the intrinsic value of JCI 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 29.8

 

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, %
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.11
  5.09
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
Revenue, $m
  31,892
  33,687
  35,563
  37,522
  39,571
  41,713
  43,954
  46,298
  48,753
  51,323
  54,014
  56,834
  59,788
  62,883
  66,128
  69,530
  73,097
  76,837
  80,759
  84,874
  89,190
  93,717
  98,468
  103,452
  108,683
  114,172
  119,932
  125,977
  132,322
  138,982
Variable operating expenses, $m
  26,160
  27,484
  28,867
  30,312
  31,823
  33,402
  35,055
  36,784
  38,594
  40,489
  39,830
  41,909
  44,088
  46,371
  48,763
  51,272
  53,902
  56,660
  59,552
  62,586
  65,769
  69,108
  72,611
  76,286
  80,143
  84,191
  88,438
  92,896
  97,575
  102,486
Fixed operating expenses, $m
  2,591
  2,648
  2,706
  2,766
  2,826
  2,889
  2,952
  3,017
  3,083
  3,151
  3,221
  3,291
  3,364
  3,438
  3,514
  3,591
  3,670
  3,751
  3,833
  3,917
  4,004
  4,092
  4,182
  4,274
  4,368
  4,464
  4,562
  4,662
  4,765
  4,870
Total operating expenses, $m
  28,751
  30,132
  31,573
  33,078
  34,649
  36,291
  38,007
  39,801
  41,677
  43,640
  43,051
  45,200
  47,452
  49,809
  52,277
  54,863
  57,572
  60,411
  63,385
  66,503
  69,773
  73,200
  76,793
  80,560
  84,511
  88,655
  93,000
  97,558
  102,340
  107,356
Operating income, $m
  3,141
  3,555
  3,990
  4,445
  4,922
  5,422
  5,947
  6,498
  7,076
  7,683
  10,963
  11,633
  12,336
  13,075
  13,851
  14,667
  15,525
  16,426
  17,374
  18,370
  19,417
  20,518
  21,675
  22,892
  24,172
  25,517
  26,931
  28,419
  29,982
  31,626
EBITDA, $m
  6,522
  6,978
  7,455
  7,956
  8,480
  9,030
  9,607
  10,212
  10,847
  11,513
  12,213
  12,947
  13,719
  14,530
  15,381
  16,276
  17,216
  18,204
  19,242
  20,333
  21,480
  22,686
  23,953
  25,285
  26,686
  28,158
  29,706
  31,333
  33,043
  34,841
Interest expense (income), $m
  0
  733
  828
  929
  1,035
  1,145
  1,260
  1,381
  1,507
  1,639
  1,777
  1,921
  2,072
  2,231
  2,397
  2,571
  2,753
  2,945
  3,145
  3,356
  3,576
  3,807
  4,050
  4,305
  4,572
  4,852
  5,146
  5,455
  5,779
  6,119
  6,475
Earnings before tax, $m
  2,408
  2,727
  3,060
  3,410
  3,777
  4,162
  4,566
  4,991
  5,437
  5,906
  9,042
  9,560
  10,105
  10,678
  11,280
  11,914
  12,580
  13,281
  14,018
  14,794
  15,610
  16,468
  17,371
  18,321
  19,320
  20,371
  21,477
  22,640
  23,864
  25,151
Tax expense, $m
  650
  736
  826
  921
  1,020
  1,124
  1,233
  1,348
  1,468
  1,595
  2,441
  2,581
  2,728
  2,883
  3,046
  3,217
  3,397
  3,586
  3,785
  3,994
  4,215
  4,446
  4,690
  4,947
  5,216
  5,500
  5,799
  6,113
  6,443
  6,791
Net income, $m
  1,758
  1,991
  2,234
  2,489
  2,757
  3,038
  3,333
  3,644
  3,969
  4,312
  6,601
  6,979
  7,377
  7,795
  8,235
  8,697
  9,184
  9,695
  10,233
  10,800
  11,395
  12,022
  12,681
  13,374
  14,103
  14,871
  15,678
  16,527
  17,420
  18,360

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
  54,797
  57,882
  61,104
  64,471
  67,991
  71,672
  75,522
  79,551
  83,768
  88,183
  92,808
  97,652
  102,728
  108,047
  113,622
  119,467
  125,596
  132,022
  138,762
  145,831
  153,247
  161,026
  169,189
  177,753
  186,740
  196,171
  206,068
  216,456
  227,358
  238,800
Adjusted assets (=assets-cash), $m
  54,797
  57,882
  61,104
  64,471
  67,991
  71,672
  75,522
  79,551
  83,768
  88,183
  92,808
  97,652
  102,728
  108,047
  113,622
  119,467
  125,596
  132,022
  138,762
  145,831
  153,247
  161,026
  169,189
  177,753
  186,740
  196,171
  206,068
  216,456
  227,358
  238,800
Revenue / Adjusted assets
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
Average production assets, $m
  20,730
  21,897
  23,116
  24,389
  25,721
  27,113
  28,570
  30,094
  31,689
  33,360
  35,109
  36,942
  38,862
  40,874
  42,983
  45,194
  47,513
  49,944
  52,494
  55,168
  57,973
  60,916
  64,004
  67,244
  70,644
  74,211
  77,956
  81,885
  86,009
  90,338
Working capital, $m
  1,818
  1,920
  2,027
  2,139
  2,256
  2,378
  2,505
  2,639
  2,779
  2,925
  3,079
  3,240
  3,408
  3,584
  3,769
  3,963
  4,167
  4,380
  4,603
  4,838
  5,084
  5,342
  5,613
  5,897
  6,195
  6,508
  6,836
  7,181
  7,542
  7,922
Total debt, $m
  15,342
  17,211
  19,164
  21,205
  23,338
  25,568
  27,901
  30,343
  32,898
  35,574
  38,377
  41,312
  44,388
  47,611
  50,990
  54,532
  58,246
  62,140
  66,225
  70,509
  75,003
  79,717
  84,663
  89,853
  95,300
  101,015
  107,012
  113,307
  119,914
  126,848
Total liabilities, $m
  33,207
  35,076
  37,029
  39,070
  41,203
  43,433
  45,766
  48,208
  50,763
  53,439
  56,242
  59,177
  62,253
  65,476
  68,855
  72,397
  76,111
  80,005
  84,090
  88,374
  92,868
  97,582
  102,528
  107,718
  113,165
  118,880
  124,877
  131,172
  137,779
  144,713
Total equity, $m
  21,590
  22,806
  24,075
  25,402
  26,788
  28,239
  29,756
  31,343
  33,005
  34,744
  36,566
  38,475
  40,475
  42,571
  44,767
  47,070
  49,485
  52,017
  54,672
  57,457
  60,379
  63,444
  66,660
  70,035
  73,576
  77,291
  81,191
  85,283
  89,579
  94,087
Total liabilities and equity, $m
  54,797
  57,882
  61,104
  64,472
  67,991
  71,672
  75,522
  79,551
  83,768
  88,183
  92,808
  97,652
  102,728
  108,047
  113,622
  119,467
  125,596
  132,022
  138,762
  145,831
  153,247
  161,026
  169,188
  177,753
  186,741
  196,171
  206,068
  216,455
  227,358
  238,800
Debt-to-equity ratio
  0.710
  0.750
  0.800
  0.830
  0.870
  0.910
  0.940
  0.970
  1.000
  1.020
  1.050
  1.070
  1.100
  1.120
  1.140
  1.160
  1.180
  1.190
  1.210
  1.230
  1.240
  1.260
  1.270
  1.280
  1.300
  1.310
  1.320
  1.330
  1.340
  1.350
Adjusted equity ratio
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,758
  1,991
  2,234
  2,489
  2,757
  3,038
  3,333
  3,644
  3,969
  4,312
  6,601
  6,979
  7,377
  7,795
  8,235
  8,697
  9,184
  9,695
  10,233
  10,800
  11,395
  12,022
  12,681
  13,374
  14,103
  14,871
  15,678
  16,527
  17,420
  18,360
Depreciation, amort., depletion, $m
  3,381
  3,422
  3,466
  3,511
  3,558
  3,608
  3,660
  3,714
  3,771
  3,830
  1,249
  1,315
  1,383
  1,455
  1,530
  1,608
  1,691
  1,777
  1,868
  1,963
  2,063
  2,168
  2,278
  2,393
  2,514
  2,641
  2,774
  2,914
  3,061
  3,215
Funds from operations, $m
  5,138
  5,413
  5,699
  6,000
  6,315
  6,646
  6,993
  7,357
  7,740
  8,142
  7,850
  8,294
  8,760
  9,250
  9,764
  10,305
  10,874
  11,473
  12,101
  12,763
  13,458
  14,189
  14,958
  15,767
  16,617
  17,512
  18,452
  19,441
  20,481
  21,575
Change in working capital, $m
  98
  102
  107
  112
  117
  122
  128
  134
  140
  146
  153
  161
  168
  176
  185
  194
  203
  213
  224
  235
  246
  258
  271
  284
  298
  313
  328
  345
  362
  380
Cash from operations, $m
  5,040
  5,310
  5,593
  5,888
  6,198
  6,524
  6,865
  7,224
  7,600
  7,995
  7,697
  8,133
  8,591
  9,073
  9,579
  10,112
  10,671
  11,259
  11,878
  12,528
  13,212
  13,931
  14,688
  15,483
  16,319
  17,199
  18,124
  19,097
  20,120
  21,195
Maintenance CAPEX, $m
  -698
  -738
  -779
  -823
  -868
  -915
  -965
  -1,017
  -1,071
  -1,128
  -1,187
  -1,249
  -1,315
  -1,383
  -1,455
  -1,530
  -1,608
  -1,691
  -1,777
  -1,868
  -1,963
  -2,063
  -2,168
  -2,278
  -2,393
  -2,514
  -2,641
  -2,774
  -2,914
  -3,061
New CAPEX, $m
  -1,105
  -1,167
  -1,219
  -1,274
  -1,331
  -1,392
  -1,457
  -1,524
  -1,595
  -1,670
  -1,749
  -1,833
  -1,920
  -2,012
  -2,109
  -2,211
  -2,318
  -2,431
  -2,550
  -2,674
  -2,805
  -2,943
  -3,088
  -3,240
  -3,400
  -3,568
  -3,744
  -3,930
  -4,124
  -4,329
Cash from investing activities, $m
  -1,803
  -1,905
  -1,998
  -2,097
  -2,199
  -2,307
  -2,422
  -2,541
  -2,666
  -2,798
  -2,936
  -3,082
  -3,235
  -3,395
  -3,564
  -3,741
  -3,926
  -4,122
  -4,327
  -4,542
  -4,768
  -5,006
  -5,256
  -5,518
  -5,793
  -6,082
  -6,385
  -6,704
  -7,038
  -7,390
Free cash flow, $m
  3,237
  3,406
  3,594
  3,792
  3,999
  4,216
  4,444
  4,683
  4,934
  5,197
  4,760
  5,051
  5,357
  5,678
  6,016
  6,371
  6,744
  7,137
  7,551
  7,986
  8,444
  8,925
  9,432
  9,965
  10,527
  11,117
  11,739
  12,393
  13,081
  13,806
Issuance/(repayment) of debt, $m
  1,770
  1,870
  1,953
  2,040
  2,133
  2,230
  2,333
  2,442
  2,556
  2,676
  2,802
  2,936
  3,076
  3,223
  3,379
  3,542
  3,714
  3,894
  4,084
  4,284
  4,494
  4,715
  4,946
  5,190
  5,446
  5,715
  5,998
  6,295
  6,607
  6,934
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,770
  1,870
  1,953
  2,040
  2,133
  2,230
  2,333
  2,442
  2,556
  2,676
  2,802
  2,936
  3,076
  3,223
  3,379
  3,542
  3,714
  3,894
  4,084
  4,284
  4,494
  4,715
  4,946
  5,190
  5,446
  5,715
  5,998
  6,295
  6,607
  6,934
Total cash flow (excl. dividends), $m
  5,007
  5,275
  5,547
  5,832
  6,132
  6,447
  6,777
  7,124
  7,489
  7,873
  7,563
  7,987
  8,432
  8,901
  9,394
  9,913
  10,458
  11,032
  11,635
  12,270
  12,937
  13,640
  14,378
  15,155
  15,973
  16,832
  17,736
  18,688
  19,688
  20,740
Retained Cash Flow (-), $m
  -1,143
  -1,216
  -1,270
  -1,327
  -1,387
  -1,450
  -1,517
  -1,587
  -1,662
  -1,740
  -1,822
  -1,909
  -2,000
  -2,096
  -2,197
  -2,303
  -2,415
  -2,532
  -2,655
  -2,785
  -2,922
  -3,065
  -3,216
  -3,374
  -3,541
  -3,716
  -3,900
  -4,093
  -4,295
  -4,508
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
  3,864
  4,060
  4,277
  4,506
  4,745
  4,996
  5,260
  5,537
  5,828
  6,133
  5,741
  6,078
  6,433
  6,806
  7,198
  7,610
  8,044
  8,500
  8,980
  9,485
  10,016
  10,574
  11,162
  11,781
  12,432
  13,116
  13,837
  14,595
  15,393
  16,232
Discount rate, %
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
  3,561
  3,422
  3,269
  3,095
  2,902
  2,693
  2,472
  2,243
  2,010
  1,777
  1,379
  1,192
  1,015
  849
  698
  563
  446
  345
  262
  194
  140
  99
  68
  45
  29
  18
  11
  6
  4
  2
Current shareholders' claim on cash, %
  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
  100.0

Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. The company operates through Buildings and Power Solutions segments. It designs, produces, markets, and installs heating, ventilating, and air conditioning (HVAC) systems, building management systems, controls, and security and mechanical equipment. The company also provides residential air conditioning and heating systems, and industrial refrigeration products, as well as technical and energy management consulting services. In addition, it designs, sells, installs, services, and monitors electronic security systems, and fire detection and suppression systems; and manufactures and sells intrusion security products, anti-theft devices, breathing apparatus, and access control and video management systems for commercial, industrial, retail, residential, small business, institutional, and governmental customers. Further, the company produces and supplies lead-acid automotive batteries for passenger cars, light trucks, and utility vehicles, as well as advanced battery technologies to power start-stop, hybrid, and electric vehicles. It offers its lead-acid automotive batteries to automotive original equipment manufacturers and the general vehicle battery aftermarket. The company was formerly known as Johnson Controls, Inc. and changed its name to Johnson Controls International plc in September 2016. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland.

FINANCIAL RATIOS  of  Johnson Controls International (JCI)

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%

JCI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JCI stock intrinsic value calculation we used $30172 million for the last fiscal year's total revenue generated by Johnson Controls International. The default revenue input number comes from 0001 income statement of Johnson Controls International. 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 JCI stock valuation model: a) initial revenue growth rate of 5.7% 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 8.5%, whose default value for JCI is calculated based on our internal credit rating of Johnson Controls International, 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 Johnson Controls International.
    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 JCI stock the variable cost ratio is equal to 82.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2535 million in the base year in the intrinsic value calculation for JCI 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 Johnson Controls International.

Corporate tax rate of 27% is the nominal tax rate for Johnson Controls International. 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 JCI 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 JCI are equal to 65%.

Life of production assets of 28.1 years is the average useful life of capital assets used in Johnson Controls International 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 JCI is equal to 5.7%. 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 - $20447 million for Johnson Controls International - 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 924.922 million for Johnson Controls International 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 Johnson Controls International at the current share price and the inputted number of shares is $29.8 billion.

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COMPANY NEWS

▶ Johnson Controls partnership enhances visitor identity technology   [Dec-12-18 03:50PM  American City Business Journals]
▶ Johnson Controls announces quarterly dividend   [Dec-05-18 01:00PM  PR Newswire]
▶ Johnson Controls Power Solutions partners with Toshiba   [Nov-27-18 12:34PM  American City Business Journals]
▶ [$$] Johnson Controls: batteries not included   [Nov-21-18 08:00PM  Financial Times]
▶ Analyst's view: Streamlined Johnson Controls has potential for growth   [Nov-14-18 03:56PM  American City Business Journals]
▶ Company News For Nov 14, 2018   [09:30AM  Zacks]
▶ Johnson Controls sells Power Solutions division for $13.2 billion   [08:56AM  American City Business Journals]
▶ [$$] Brookfield buys Johnson Controls power unit for $13.2bn   [Nov-12-18 09:56PM  Financial Times]
▶ [$$] Private Equity's Women to Watch; Apollo Eyes Johnson Controls Unit   [Nov-09-18 09:39AM  The Wall Street Journal]
▶ [$$] Johnson Controls Hits Snag in Process to Sell Car-Battery Business   [Nov-08-18 08:01PM  The Wall Street Journal]
▶ Johnson Controls Q4 Earnings Preview   [Nov-07-18 01:40PM  Benzinga]
▶ The Bears Still Have Control of Johnson Controls   [Nov-06-18 10:35AM  TheStreet.com]
▶ 7 Canadian Stocks to Buy Now (And Only 2 Are Pot Stocks)   [Nov-01-18 02:33PM  InvestorPlace]
▶ Johnson Controls steps up with United Way volunteer center   [Oct-26-18 06:00AM  American City Business Journals]
▶ Johnson Controls lands partnership to update Quicken Loans Arena in Cleveland   [Oct-15-18 03:58PM  American City Business Journals]
▶ Larry Culp Has a Long Road Ahead to Fix GE   [Oct-11-18 12:18PM  Barrons.com]
▶ Johnson Controls CEO: Milwaukee will benefit from $100M venture fund   [Oct-09-18 08:21AM  American City Business Journals]
▶ General Motors suing Johnson Controls for $28 million claiming breach of contract   [Oct-08-18 12:19PM  American City Business Journals]
▶ Johnson Controls acquires Philadelphia smart thermostat company   [03:30PM  American City Business Journals]
▶ Johnson Controls enlists New York company to expand energy storage technology   [Oct-01-18 03:49PM  American City Business Journals]
▶ Two analysts worry about Johnson Controls ahead of Power Solutions decision   [Sep-20-18 03:36PM  American City Business Journals]
▶ Johnson Controls announces quarterly dividend   [Sep-12-18 11:36AM  PR Newswire]
▶ Foxconn joins Wisconsin companies to create investment fund   [Aug-28-18 06:02PM  Associated Press]
▶ Adient's Trading as if It Will Never Get Better   [Aug-17-18 07:00AM  Morningstar]
▶ Analyst: Johnson Controls' power solutions sale is likely outcome of review   [Aug-16-18 03:28PM  American City Business Journals]
▶ Johnson Controls sells downtown Milwaukee land to hotel developers for $5.1M   [Aug-10-18 03:07PM  American City Business Journals]
▶ Johnson Controls: Fiscal 3Q Earnings Snapshot   [08:08AM  Associated Press]
▶ 1 Hot Long-Term Trend to Invest In   [07:34AM  Motley Fool]
▶ 7 Alternative Internet of Things Stocks to Buy   [Jul-17-18 10:28AM  InvestorPlace]

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