Intrinsic value of Live Ventures Incorporated - LIVE

Previous Close

$6.85

  Intrinsic Value

$168.40

stock screener

  Rating & Target

str. buy

+999%

Previous close

$6.85

 
Intrinsic value

$168.40

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of LIVE 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 0.0

 

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, %
  31.80
  29.12
  26.71
  24.54
  22.58
  20.83
  19.24
  17.82
  16.54
  15.38
  14.34
  13.41
  12.57
  11.81
  11.13
  10.52
  9.97
  9.47
  9.02
  8.62
  8.26
  7.93
  7.64
  7.38
  7.14
  6.92
  6.73
  6.56
  6.40
  6.26
Revenue, $m
  264
  340
  431
  537
  658
  795
  949
  1,118
  1,302
  1,503
  1,718
  1,949
  2,194
  2,453
  2,726
  3,012
  3,313
  3,626
  3,954
  4,294
  4,649
  5,018
  5,401
  5,799
  6,213
  6,644
  7,091
  7,556
  8,040
  8,543
Variable operating expenses, $m
  231
  296
  374
  465
  569
  687
  818
  963
  1,122
  1,294
  1,474
  1,672
  1,882
  2,104
  2,339
  2,585
  2,842
  3,111
  3,392
  3,685
  3,989
  4,305
  4,634
  4,976
  5,331
  5,700
  6,084
  6,483
  6,898
  7,330
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
  231
  296
  374
  465
  569
  687
  818
  963
  1,122
  1,294
  1,474
  1,672
  1,882
  2,104
  2,339
  2,585
  2,842
  3,111
  3,392
  3,685
  3,989
  4,305
  4,634
  4,976
  5,331
  5,700
  6,084
  6,483
  6,898
  7,330
Operating income, $m
  33
  44
  57
  72
  89
  109
  130
  154
  181
  209
  244
  277
  311
  348
  387
  428
  470
  515
  561
  610
  660
  713
  767
  824
  882
  943
  1,007
  1,073
  1,142
  1,213
EBITDA, $m
  43
  55
  70
  87
  107
  130
  154
  182
  212
  245
  280
  317
  357
  399
  444
  490
  539
  590
  644
  699
  757
  817
  879
  944
  1,012
  1,082
  1,154
  1,230
  1,309
  1,391
Interest expense (income), $m
  1
  9
  12
  17
  22
  28
  35
  43
  51
  61
  71
  83
  95
  108
  122
  137
  152
  168
  186
  203
  222
  241
  261
  282
  304
  327
  350
  375
  400
  427
  454
Earnings before tax, $m
  24
  32
  40
  50
  61
  74
  88
  103
  120
  138
  161
  182
  203
  226
  250
  276
  302
  329
  358
  388
  419
  451
  485
  519
  556
  593
  632
  673
  715
  759
Tax expense, $m
  7
  9
  11
  14
  17
  20
  24
  28
  32
  37
  44
  49
  55
  61
  68
  74
  82
  89
  97
  105
  113
  122
  131
  140
  150
  160
  171
  182
  193
  205
Net income, $m
  18
  23
  29
  37
  45
  54
  64
  75
  87
  100
  118
  133
  149
  165
  183
  201
  220
  240
  261
  283
  306
  329
  354
  379
  406
  433
  462
  491
  522
  554

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
  187
  241
  306
  381
  467
  564
  672
  792
  923
  1,065
  1,218
  1,381
  1,555
  1,738
  1,932
  2,135
  2,348
  2,570
  2,802
  3,044
  3,295
  3,556
  3,828
  4,110
  4,404
  4,708
  5,025
  5,355
  5,698
  6,055
Adjusted assets (=assets-cash), $m
  187
  241
  306
  381
  467
  564
  672
  792
  923
  1,065
  1,218
  1,381
  1,555
  1,738
  1,932
  2,135
  2,348
  2,570
  2,802
  3,044
  3,295
  3,556
  3,828
  4,110
  4,404
  4,708
  5,025
  5,355
  5,698
  6,055
Revenue / Adjusted assets
  1.412
  1.411
  1.408
  1.409
  1.409
  1.410
  1.412
  1.412
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
  1.411
Average production assets, $m
  61
  79
  100
  125
  153
  185
  221
  260
  303
  350
  400
  454
  511
  571
  635
  702
  772
  845
  921
  1,001
  1,083
  1,169
  1,258
  1,351
  1,448
  1,548
  1,652
  1,761
  1,873
  1,991
Working capital, $m
  53
  68
  86
  107
  132
  159
  190
  224
  260
  301
  344
  390
  439
  491
  545
  602
  663
  725
  791
  859
  930
  1,004
  1,080
  1,160
  1,243
  1,329
  1,418
  1,511
  1,608
  1,709
Total debt, $m
  111
  150
  197
  251
  313
  383
  462
  548
  643
  745
  855
  973
  1,099
  1,231
  1,371
  1,518
  1,671
  1,832
  1,999
  2,174
  2,355
  2,544
  2,740
  2,944
  3,156
  3,376
  3,605
  3,843
  4,090
  4,348
Total liabilities, $m
  135
  174
  221
  275
  337
  407
  485
  572
  666
  769
  879
  997
  1,122
  1,255
  1,395
  1,541
  1,695
  1,856
  2,023
  2,197
  2,379
  2,568
  2,764
  2,968
  3,179
  3,400
  3,628
  3,866
  4,114
  4,371
Total equity, $m
  52
  67
  85
  106
  130
  157
  187
  220
  257
  296
  339
  384
  432
  483
  537
  594
  653
  714
  779
  846
  916
  989
  1,064
  1,143
  1,224
  1,309
  1,397
  1,489
  1,584
  1,683
Total liabilities and equity, $m
  187
  241
  306
  381
  467
  564
  672
  792
  923
  1,065
  1,218
  1,381
  1,554
  1,738
  1,932
  2,135
  2,348
  2,570
  2,802
  3,043
  3,295
  3,557
  3,828
  4,111
  4,403
  4,709
  5,025
  5,355
  5,698
  6,054
Debt-to-equity ratio
  2.140
  2.240
  2.320
  2.370
  2.410
  2.450
  2.470
  2.490
  2.500
  2.520
  2.530
  2.540
  2.540
  2.550
  2.550
  2.560
  2.560
  2.560
  2.570
  2.570
  2.570
  2.570
  2.570
  2.580
  2.580
  2.580
  2.580
  2.580
  2.580
  2.580
Adjusted equity ratio
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  18
  23
  29
  37
  45
  54
  64
  75
  87
  100
  118
  133
  149
  165
  183
  201
  220
  240
  261
  283
  306
  329
  354
  379
  406
  433
  462
  491
  522
  554
Depreciation, amort., depletion, $m
  10
  11
  13
  16
  18
  21
  24
  28
  31
  36
  36
  41
  46
  51
  57
  63
  69
  75
  82
  89
  97
  104
  112
  121
  129
  138
  148
  157
  167
  178
Funds from operations, $m
  28
  35
  43
  52
  63
  75
  88
  103
  119
  136
  153
  173
  194
  216
  239
  264
  289
  316
  344
  372
  403
  434
  466
  500
  535
  571
  609
  648
  689
  732
Change in working capital, $m
  13
  15
  18
  21
  24
  27
  31
  34
  37
  40
  43
  46
  49
  52
  55
  57
  60
  63
  65
  68
  71
  74
  77
  80
  83
  86
  89
  93
  97
  101
Cash from operations, $m
  15
  19
  24
  31
  39
  47
  58
  69
  82
  96
  110
  127
  145
  164
  185
  207
  229
  253
  278
  304
  332
  360
  389
  420
  452
  485
  520
  555
  593
  631
Maintenance CAPEX, $m
  -4
  -5
  -7
  -9
  -11
  -14
  -17
  -20
  -23
  -27
  -31
  -36
  -41
  -46
  -51
  -57
  -63
  -69
  -75
  -82
  -89
  -97
  -104
  -112
  -121
  -129
  -138
  -148
  -157
  -167
New CAPEX, $m
  -15
  -18
  -21
  -25
  -28
  -32
  -36
  -39
  -43
  -47
  -50
  -54
  -57
  -60
  -64
  -67
  -70
  -73
  -76
  -79
  -83
  -86
  -89
  -93
  -96
  -100
  -104
  -108
  -113
  -117
Cash from investing activities, $m
  -19
  -23
  -28
  -34
  -39
  -46
  -53
  -59
  -66
  -74
  -81
  -90
  -98
  -106
  -115
  -124
  -133
  -142
  -151
  -161
  -172
  -183
  -193
  -205
  -217
  -229
  -242
  -256
  -270
  -284
Free cash flow, $m
  -4
  -4
  -4
  -3
  -1
  2
  5
  10
  16
  22
  29
  38
  48
  58
  70
  83
  97
  111
  127
  143
  160
  177
  196
  215
  235
  256
  277
  299
  323
  347
Issuance/(repayment) of debt, $m
  33
  39
  47
  54
  62
  70
  78
  86
  95
  103
  110
  118
  125
  133
  140
  147
  154
  161
  167
  174
  181
  189
  196
  204
  212
  220
  229
  238
  248
  258
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  
  33
  39
  47
  54
  62
  70
  78
  86
  95
  103
  110
  118
  125
  133
  140
  147
  154
  161
  167
  174
  181
  189
  196
  204
  212
  220
  229
  238
  248
  258
Total cash flow (excl. dividends), $m
  28
  35
  43
  51
  61
  72
  84
  96
  110
  125
  139
  156
  173
  191
  210
  230
  250
  272
  294
  317
  341
  366
  392
  419
  447
  476
  506
  537
  570
  604
Retained Cash Flow (-), $m
  -12
  -15
  -18
  -21
  -24
  -27
  -30
  -33
  -36
  -39
  -42
  -45
  -48
  -51
  -54
  -56
  -59
  -62
  -64
  -67
  -70
  -73
  -76
  -78
  -82
  -85
  -88
  -92
  -95
  -99
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
  16
  20
  25
  31
  37
  45
  54
  63
  74
  85
  97
  110
  125
  140
  156
  173
  191
  210
  229
  250
  271
  293
  316
  340
  365
  391
  418
  446
  475
  505
Discount rate, %
  9.40
  9.87
  10.36
  10.88
  11.43
  12.00
  12.60
  13.23
  13.89
  14.58
  15.31
  16.08
  16.88
  17.73
  18.61
  19.54
  20.52
  21.54
  22.62
  23.75
  24.94
  26.19
  27.50
  28.87
  30.32
  31.83
  33.42
  35.09
  36.85
  38.69
PV of cash for distribution, $m
  15
  17
  18
  20
  22
  23
  23
  23
  23
  22
  20
  18
  16
  14
  12
  10
  8
  6
  5
  4
  3
  2
  1
  1
  0
  0
  0
  0
  0
  0
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

Live Ventures Incorporated is a holding company for diversified businesses. The Company's segments include Manufacturing Segment, Marketplace Platform Segment and Services Segment. The Manufacturing Segment consists of Marquis Industries, Inc. The Marketplace Platform segment consists of livedeal.com and Modern Everyday, Inc. The Services Segment consists of the local exchange carrier billings business and velocity local. It operates LiveDeal.com, a real-time deal engine that connects restaurants across the United States and consumers through an online mobile platform. It is focused on the residential, commercial and hospitality end-markets. As of September 30, 2016, the Company operated its business through 13 divisions, each specializing in a distinct area of the business, such as Best Buy flooring Source, Marquis Carpet, Best Buy Hard surface, A-O Industries, Quantum Textiles and B and H Tufters.

FINANCIAL RATIOS  of  Live Ventures Incorporated (LIVE)

Valuation Ratios
P/E Ratio 1.1
Price to Sales 0.2
Price to Book 0.8
Price to Tangible Book
Price to Cash Flow 3.2
Price to Free Cash Flow 3.8
Growth Rates
Sales Growth Rate 139.4%
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 1
Current Ratio 0
LT Debt to Equity 62.5%
Total Debt to Equity 70.8%
Interest Coverage 6
Management Effectiveness
Return On Assets 46%
Ret/ On Assets - 3 Yr. Avg. -16.8%
Return On Total Capital 51.4%
Ret/ On T. Cap. - 3 Yr. Avg. -24.1%
Return On Equity 120%
Return On Equity - 3 Yr. Avg. -33.5%
Asset Turnover 1.7
Profitability Ratios
Gross Margin 25.3%
Gross Margin - 3 Yr. Avg. 29.1%
EBITDA Margin 11.4%
EBITDA Margin - 3 Yr. Avg. -33.1%
Operating Margin 2.5%
Oper. Margin - 3 Yr. Avg. -34.1%
Pre-Tax Margin 6.3%
Pre-Tax Margin - 3 Yr. Avg. -35.8%
Net Profit Margin 22.8%
Net Profit Margin - 3 Yr. Avg. -31.4%
Effective Tax Rate -260%
Eff/ Tax Rate - 3 Yr. Avg. -89%
Payout Ratio 0%

LIVE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LIVE stock intrinsic value calculation we used $200 million for the last fiscal year's total revenue generated by Live Ventures Incorporated. The default revenue input number comes from 0001 income statement of Live Ventures Incorporated. 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 LIVE stock valuation model: a) initial revenue growth rate of 31.8% 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 9.4%, whose default value for LIVE is calculated based on our internal credit rating of Live Ventures Incorporated, 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 Live Ventures Incorporated.
    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 LIVE stock the variable cost ratio is equal to 88%.

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 LIVE 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 11.1% for Live Ventures Incorporated.

Corporate tax rate of 27% is the nominal tax rate for Live Ventures Incorporated. 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 LIVE 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 LIVE are equal to 23.3%.

Life of production assets of 11.2 years is the average useful life of capital assets used in Live Ventures Incorporated 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 LIVE is equal to 20%. 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 - $39.448589 million for Live Ventures Incorporated - 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 1.942 million for Live Ventures Incorporated 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 Live Ventures Incorporated at the current share price and the inputted number of shares is $0.0 billion.

RELATED COMPANIES Price Int.Val. Rating
GOOGL Alphabet Inc. 1,206.32 985.65  hold
TILE Interface, Inc 11.43 42.46  str.buy
DXYN The Dixie Grou 1.35 0.90  hold
AMZN Amazon.com, In 1,833.51 1,840.60  hold
MSFT Microsoft Corp 139.10 135.87  hold
TZOO Travelzoo 11.50 12.24  hold
HON Honeywell Inte 171.16 132.66  hold
GRPN Groupon, Inc. 2.54 2.25  sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.