Intrinsic value of LogMeIn - LOGM

Previous Close

$78.90

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$78.90

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of LOGM 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 3.9

 

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, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  1,584
  2,447
  3,660
  5,310
  7,492
  10,300
  13,826
  18,154
  23,360
  29,505
  36,639
  44,794
  53,992
  64,240
  75,535
  87,865
  101,213
  115,557
  130,875
  147,142
  164,338
  182,445
  201,449
  221,341
  242,118
  263,784
  286,347
  309,823
  334,232
  359,602
Variable operating expenses, $m
  1,362
  1,921
  2,707
  3,776
  5,189
  7,008
  9,292
  12,096
  15,468
  19,449
  23,735
  29,018
  34,976
  41,615
  48,932
  56,920
  65,567
  74,859
  84,782
  95,320
  106,459
  118,189
  130,500
  143,386
  156,846
  170,882
  185,498
  200,706
  216,518
  232,953
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
  1,362
  1,921
  2,707
  3,776
  5,189
  7,008
  9,292
  12,096
  15,468
  19,449
  23,735
  29,018
  34,976
  41,615
  48,932
  56,920
  65,567
  74,859
  84,782
  95,320
  106,459
  118,189
  130,500
  143,386
  156,846
  170,882
  185,498
  200,706
  216,518
  232,953
Operating income, $m
  222
  526
  953
  1,534
  2,303
  3,292
  4,533
  6,058
  7,891
  10,056
  12,904
  15,776
  19,016
  22,625
  26,603
  30,945
  35,646
  40,698
  46,093
  51,822
  57,878
  64,256
  70,949
  77,954
  85,272
  92,903
  100,849
  109,117
  117,714
  126,649
EBITDA, $m
  851
  1,314
  1,965
  2,852
  4,023
  5,531
  7,424
  9,748
  12,544
  15,844
  19,675
  24,054
  28,993
  34,496
  40,561
  47,183
  54,350
  62,053
  70,279
  79,014
  88,248
  97,971
  108,176
  118,858
  130,016
  141,650
  153,766
  166,372
  179,480
  193,103
Interest expense (income), $m
  1
  0
  39
  96
  176
  284
  428
  613
  845
  1,130
  1,473
  1,877
  2,347
  2,884
  3,489
  4,164
  4,908
  5,719
  6,598
  7,543
  8,551
  9,622
  10,754
  11,946
  13,197
  14,507
  15,875
  17,301
  18,787
  20,332
  21,939
Earnings before tax, $m
  222
  487
  857
  1,359
  2,018
  2,864
  3,921
  5,213
  6,761
  8,583
  11,027
  13,429
  16,132
  19,135
  22,439
  26,038
  29,927
  34,100
  38,550
  43,271
  48,256
  53,501
  59,002
  64,757
  70,765
  77,028
  83,548
  90,330
  97,381
  104,709
Tax expense, $m
  60
  132
  231
  367
  545
  773
  1,059
  1,407
  1,826
  2,317
  2,977
  3,626
  4,356
  5,167
  6,058
  7,030
  8,080
  9,207
  10,409
  11,683
  13,029
  14,445
  15,931
  17,484
  19,107
  20,797
  22,558
  24,389
  26,293
  28,272
Net income, $m
  162
  356
  626
  992
  1,474
  2,091
  2,862
  3,805
  4,936
  6,266
  8,049
  9,803
  11,776
  13,969
  16,380
  19,007
  21,847
  24,893
  28,142
  31,588
  35,227
  39,056
  43,072
  47,273
  51,659
  56,230
  60,990
  65,941
  71,088
  76,438

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
  6,163
  9,522
  14,241
  20,663
  29,152
  40,078
  53,796
  70,637
  90,893
  114,805
  142,562
  174,296
  210,085
  249,960
  293,909
  341,886
  393,824
  449,639
  509,239
  572,536
  639,447
  709,902
  783,847
  861,249
  942,095
  1,026,398
  1,114,192
  1,205,536
  1,300,513
  1,399,230
Adjusted assets (=assets-cash), $m
  6,163
  9,522
  14,241
  20,663
  29,152
  40,078
  53,796
  70,637
  90,893
  114,805
  142,562
  174,296
  210,085
  249,960
  293,909
  341,886
  393,824
  449,639
  509,239
  572,536
  639,447
  709,902
  783,847
  861,249
  942,095
  1,026,398
  1,114,192
  1,205,536
  1,300,513
  1,399,230
Revenue / Adjusted assets
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
Average production assets, $m
  2,927
  4,523
  6,764
  9,814
  13,845
  19,034
  25,550
  33,548
  43,168
  54,525
  67,708
  82,779
  99,777
  118,715
  139,588
  162,374
  187,041
  213,550
  241,856
  271,918
  303,696
  337,158
  372,277
  409,038
  447,435
  487,473
  529,170
  572,552
  617,661
  664,544
Working capital, $m
  -35
  -54
  -81
  -117
  -165
  -227
  -304
  -399
  -514
  -649
  -806
  -985
  -1,188
  -1,413
  -1,662
  -1,933
  -2,227
  -2,542
  -2,879
  -3,237
  -3,615
  -4,014
  -4,432
  -4,869
  -5,327
  -5,803
  -6,300
  -6,816
  -7,353
  -7,911
Total debt, $m
  415
  1,020
  1,869
  3,025
  4,553
  6,520
  8,989
  12,021
  15,667
  19,971
  24,967
  30,679
  37,121
  44,299
  52,209
  60,845
  70,194
  80,241
  90,969
  102,362
  114,406
  127,088
  140,398
  154,331
  168,883
  184,058
  199,860
  216,302
  233,398
  251,167
Total liabilities, $m
  1,109
  1,714
  2,563
  3,719
  5,247
  7,214
  9,683
  12,715
  16,361
  20,665
  25,661
  31,373
  37,815
  44,993
  52,904
  61,540
  70,888
  80,935
  91,663
  103,057
  115,100
  127,782
  141,092
  155,025
  169,577
  184,752
  200,555
  216,996
  234,092
  251,861
Total equity, $m
  5,054
  7,808
  11,678
  16,944
  23,905
  32,864
  44,113
  57,923
  74,532
  94,140
  116,901
  142,923
  172,270
  204,967
  241,005
  280,347
  322,936
  368,704
  417,576
  469,480
  524,347
  582,119
  642,754
  706,224
  772,518
  841,646
  913,637
  988,540
  1,066,421
  1,147,368
Total liabilities and equity, $m
  6,163
  9,522
  14,241
  20,663
  29,152
  40,078
  53,796
  70,638
  90,893
  114,805
  142,562
  174,296
  210,085
  249,960
  293,909
  341,887
  393,824
  449,639
  509,239
  572,537
  639,447
  709,901
  783,846
  861,249
  942,095
  1,026,398
  1,114,192
  1,205,536
  1,300,513
  1,399,229
Debt-to-equity ratio
  0.080
  0.130
  0.160
  0.180
  0.190
  0.200
  0.200
  0.210
  0.210
  0.210
  0.210
  0.210
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
  0.220
Adjusted equity ratio
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  162
  356
  626
  992
  1,474
  2,091
  2,862
  3,805
  4,936
  6,266
  8,049
  9,803
  11,776
  13,969
  16,380
  19,007
  21,847
  24,893
  28,142
  31,588
  35,227
  39,056
  43,072
  47,273
  51,659
  56,230
  60,990
  65,941
  71,088
  76,438
Depreciation, amort., depletion, $m
  629
  788
  1,012
  1,317
  1,720
  2,239
  2,891
  3,691
  4,653
  5,788
  6,771
  8,278
  9,978
  11,872
  13,959
  16,237
  18,704
  21,355
  24,186
  27,192
  30,370
  33,716
  37,228
  40,904
  44,743
  48,747
  52,917
  57,255
  61,766
  66,454
Funds from operations, $m
  791
  1,144
  1,638
  2,309
  3,194
  4,330
  5,753
  7,496
  9,588
  12,054
  14,820
  18,081
  21,754
  25,840
  30,339
  35,245
  40,551
  46,248
  52,327
  58,780
  65,597
  72,772
  80,299
  88,176
  96,402
  104,978
  113,907
  123,196
  132,854
  142,892
Change in working capital, $m
  -13
  -19
  -27
  -36
  -48
  -62
  -78
  -95
  -115
  -135
  -157
  -179
  -202
  -225
  -248
  -271
  -294
  -316
  -337
  -358
  -378
  -398
  -418
  -438
  -457
  -477
  -496
  -516
  -537
  -558
Cash from operations, $m
  804
  1,163
  1,665
  2,345
  3,242
  4,392
  5,830
  7,591
  9,703
  12,189
  14,977
  18,261
  21,956
  26,066
  30,587
  35,516
  40,844
  46,564
  52,664
  59,138
  65,975
  73,170
  80,717
  88,614
  96,859
  105,454
  114,403
  123,713
  133,391
  143,451
Maintenance CAPEX, $m
  -183
  -293
  -452
  -676
  -981
  -1,385
  -1,903
  -2,555
  -3,355
  -4,317
  -5,453
  -6,771
  -8,278
  -9,978
  -11,872
  -13,959
  -16,237
  -18,704
  -21,355
  -24,186
  -27,192
  -30,370
  -33,716
  -37,228
  -40,904
  -44,743
  -48,747
  -52,917
  -57,255
  -61,766
New CAPEX, $m
  -1,098
  -1,595
  -2,241
  -3,050
  -4,032
  -5,189
  -6,515
  -7,999
  -9,620
  -11,357
  -13,183
  -15,072
  -16,998
  -18,938
  -20,873
  -22,786
  -24,667
  -26,508
  -28,306
  -30,062
  -31,778
  -33,461
  -35,119
  -36,761
  -38,397
  -40,038
  -41,696
  -43,383
  -45,108
  -46,884
Cash from investing activities, $m
  -1,281
  -1,888
  -2,693
  -3,726
  -5,013
  -6,574
  -8,418
  -10,554
  -12,975
  -15,674
  -18,636
  -21,843
  -25,276
  -28,916
  -32,745
  -36,745
  -40,904
  -45,212
  -49,661
  -54,248
  -58,970
  -63,831
  -68,835
  -73,989
  -79,301
  -84,781
  -90,443
  -96,300
  -102,363
  -108,650
Free cash flow, $m
  -477
  -725
  -1,029
  -1,381
  -1,771
  -2,182
  -2,588
  -2,962
  -3,272
  -3,485
  -3,658
  -3,582
  -3,319
  -2,850
  -2,157
  -1,229
  -60
  1,351
  3,003
  4,890
  7,005
  9,339
  11,882
  14,625
  17,558
  20,672
  23,959
  27,413
  31,028
  34,800
Issuance/(repayment) of debt, $m
  415
  605
  849
  1,156
  1,528
  1,967
  2,469
  3,031
  3,646
  4,304
  4,996
  5,712
  6,442
  7,177
  7,911
  8,636
  9,349
  10,047
  10,728
  11,393
  12,044
  12,682
  13,310
  13,932
  14,552
  15,175
  15,803
  16,442
  17,096
  17,769
Issuance/(repurchase) of shares, $m
  1,728
  2,399
  3,243
  4,274
  5,488
  6,868
  8,387
  10,005
  11,674
  13,343
  14,711
  16,218
  17,571
  18,729
  19,658
  20,334
  20,743
  20,875
  20,731
  20,316
  19,640
  18,717
  17,563
  16,197
  14,636
  12,898
  11,001
  8,961
  6,793
  4,510
Cash from financing (excl. dividends), $m  
  2,143
  3,004
  4,092
  5,430
  7,016
  8,835
  10,856
  13,036
  15,320
  17,647
  19,707
  21,930
  24,013
  25,906
  27,569
  28,970
  30,092
  30,922
  31,459
  31,709
  31,684
  31,399
  30,873
  30,129
  29,188
  28,073
  26,804
  25,403
  23,889
  22,279
Total cash flow (excl. dividends), $m
  1,666
  2,278
  3,064
  4,049
  5,244
  6,653
  8,268
  10,074
  12,048
  14,162
  16,049
  18,349
  20,694
  23,056
  25,412
  27,741
  30,031
  32,273
  34,462
  36,599
  38,689
  40,738
  42,756
  44,755
  46,747
  48,745
  50,763
  52,816
  54,917
  57,079
Retained Cash Flow (-), $m
  -1,890
  -2,754
  -3,869
  -5,266
  -6,961
  -8,959
  -11,249
  -13,810
  -16,610
  -19,608
  -22,761
  -26,022
  -29,347
  -32,697
  -36,038
  -39,342
  -42,589
  -45,768
  -48,872
  -51,903
  -54,867
  -57,773
  -60,635
  -63,470
  -66,294
  -69,128
  -71,991
  -74,902
  -77,881
  -80,947
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
  67
  108
  166
  249
  361
  509
  700
  940
  1,234
  1,588
  2,006
  2,491
  3,046
  3,671
  4,368
  5,136
  5,975
  6,882
  7,858
  8,899
  10,006
  11,175
  12,406
  13,699
  15,051
  16,464
  17,937
  19,472
  21,068
  22,728
Cash available for distribution, $m
  -224
  -476
  -805
  -1,217
  -1,717
  -2,306
  -2,981
  -3,736
  -4,562
  -5,446
  -6,711
  -7,673
  -8,653
  -9,641
  -10,626
  -11,600
  -12,558
  -13,495
  -14,411
  -15,304
  -16,178
  -17,035
  -17,879
  -18,715
  -19,548
  -20,383
  -21,228
  -22,086
  -22,964
  -23,868
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  -215
  -436
  -701
  -1,002
  -1,331
  -1,673
  -2,014
  -2,335
  -2,621
  -2,855
  -3,187
  -3,274
  -3,290
  -3,237
  -3,120
  -2,948
  -2,732
  -2,485
  -2,219
  -1,945
  -1,673
  -1,413
  -1,172
  -953
  -760
  -595
  -456
  -342
  -251
  -180
Current shareholders' claim on cash, %
  69.5
  50.4
  37.8
  29.2
  23.2
  18.8
  15.6
  13.2
  11.4
  10.0
  8.9
  8.0
  7.3
  6.7
  6.2
  5.8
  5.5
  5.2
  5.0
  4.8
  4.6
  4.5
  4.4
  4.3
  4.2
  4.2
  4.1
  4.1
  4.1
  4.1

LogMeIn, Inc. provides a portfolio of cloud-based service offerings, which helps people and businesses to connect to their workplace, colleagues and customers. The Company's core cloud-based services are categorized into four business lines: Communications and Collaboration; Engagement and Support; Identity and Access, and Additional Service Offerings. The Company's communication and collaboration services include GoToMeeting; GoToTraining; GoToWebinar; join.me, join.me pro and join.me enterprise; OpenVoice, and Grasshopper. The Company's customer engagement and support services include BoldChat; GoToAssist, GoToAssist Corporate and GoToAssist Seeit; LogMeIn Rescue, Rescue Lens and LogMeIn Rescue+Mobile, and Xively. Its identity and access management services include LogMeIn Central, GoToMyPC, LogMeIn Pro and LastPass. Its additional service offerings include LogMeIn Backup, LogMeIn Hamachi and RemotelyAnywhere.

FINANCIAL RATIOS  of  LogMeIn (LOGM)

Valuation Ratios
P/E Ratio 672
Price to Sales 6
Price to Book 10.3
Price to Tangible Book
Price to Cash Flow 21.9
Price to Free Cash Flow 26.5
Growth Rates
Sales Growth Rate 23.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -5.9%
Cap. Spend. - 3 Yr. Gr. Rate -7.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 15.3%
Total Debt to Equity 15.3%
Interest Coverage 4
Management Effectiveness
Return On Assets 0.9%
Ret/ On Assets - 3 Yr. Avg. 2.6%
Return On Total Capital 1.2%
Ret/ On T. Cap. - 3 Yr. Avg. 4.2%
Return On Equity 1.5%
Return On Equity - 3 Yr. Avg. 4.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 86.6%
Gross Margin - 3 Yr. Avg. 86.8%
EBITDA Margin 7.7%
EBITDA Margin - 3 Yr. Avg. 9.6%
Operating Margin 1.2%
Oper. Margin - 3 Yr. Avg. 3.7%
Pre-Tax Margin 0.9%
Pre-Tax Margin - 3 Yr. Avg. 3.9%
Net Profit Margin 0.9%
Net Profit Margin - 3 Yr. Avg. 3.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 9.3%
Payout Ratio 833.3%

LOGM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LOGM stock intrinsic value calculation we used $990 million for the last fiscal year's total revenue generated by LogMeIn. The default revenue input number comes from 2017 income statement of LogMeIn. 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 LOGM stock valuation model: a) initial revenue growth rate of 60% 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 4.3%, whose default value for LOGM is calculated based on our internal credit rating of LogMeIn, 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 LogMeIn.
    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 LOGM stock the variable cost ratio is equal to 98.7%.

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 LOGM 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 9.4% for LogMeIn.

Corporate tax rate of 27% is the nominal tax rate for LogMeIn. 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 LOGM stock is equal to 6.8%.

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 LOGM are equal to 184.8%.

Life of production assets of 10 years is the average useful life of capital assets used in LogMeIn 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 LOGM is equal to -2.2%. 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 - $3164 million for LogMeIn - 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 50 million for LogMeIn 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 LogMeIn at the current share price and the inputted number of shares is $3.9 billion.

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COMPANY NEWS

▶ Why LogMeIn, Inc. Stock Dropped 21.5% in July   [Aug-10-18 05:56PM  Motley Fool]
▶ 10 Best Tech Stocks to Buy on This Dip   [03:34PM  InvestorPlace]
▶ Why LogMeIn Shares Got Crushed Today   [12:43PM  Motley Fool]
▶ LogMeIn Downgraded: What You Need to Know   [12:15PM  Motley Fool]
▶ LogMein: 2Q Earnings Snapshot   [05:07PM  Associated Press]
▶ Earnings Outlook For LogMeIn   [08:34AM  Benzinga]
▶ LogMeIn Sets Date to Announce Second Quarter 2018 Results   [Jul-11-18 04:08PM  GlobeNewswire]
▶ Is LogMeIn Inc (NASDAQ:LOGM) A Sell At Its Current PE Ratio?   [Jun-13-18 11:16AM  Simply Wall St.]
▶ A Look At The Fair Value Of LogMeIn Inc (NASDAQ:LOGM)   [May-31-18 11:14AM  Simply Wall St.]
▶ Why LogMeIn Stock Dropped 11% Today   [Apr-27-18 04:23PM  Motley Fool]
▶ LogMeIn shares fall more than 8% after earnings   [Apr-26-18 05:27PM  MarketWatch]
▶ LogMein: 1Q Earnings Snapshot   [05:12PM  Associated Press]
▶ LogMeIn Announces First Quarter 2018 Results   [04:08PM  GlobeNewswire]
▶ Has LogMeIn Inc (NASDAQ:LOGM) Got Enough Cash?   [Apr-17-18 12:53PM  Simply Wall St.]
▶ LogMeIn Sets Date to Announce First Quarter 2018 Results   [Apr-10-18 04:08PM  GlobeNewswire]
▶ LogMeIn Names Sara Andrews to Board of Directors   [Apr-09-18 08:00AM  GlobeNewswire]
▶ LogMeIn Completes Acquisition of Jive Communications   [Apr-03-18 04:08PM  GlobeNewswire]
▶ Mizuho initiates coverage of LogMeIn at buy   [Apr-02-18 04:43PM  MarketWatch]
▶ 7 Cybersecurity Stocks to Buy Now   [Mar-28-18 11:09AM  InvestorPlace]
▶ Google Is Acquiring Xively's Internet of Things Platform   [Feb-16-18 09:17PM  Motley Fool]
▶ Google buying LogMeIn's Xively IoT division for $50M   [Feb-15-18 09:30PM  American City Business Journals]
▶ LogMeIn Earnings Guidance Tops Views But Revenue Outlook Light   [05:14PM  Investor's Business Daily]
▶ LogMeIn shares fall after revenue miss   [05:09PM  MarketWatch]
▶ LogMein beats 4Q profit forecasts   [05:01PM  Associated Press]
▶ Stock Market Surges Again; Dow Led By Cisco, Apple, Boeing   [04:17PM  Investor's Business Daily]
▶ LogMeIn, Inc. to Host Earnings Call   [12:50PM  ACCESSWIRE]
▶ LogMeIn Q4 Earnings Preview   [11:59AM  Benzinga]
▶ LogMeIn Guidance Eyed A Year After Reverse-Merger, New Jive Deal   [Feb-14-18 04:59PM  Investor's Business Daily]
▶ Nasdaq, Small Caps Lead; Is Market Ready For Next Move Up?   [12:04PM  Investor's Business Daily]
▶ LogMeIn Dials Up Jive Communications For Enterprise Market Push   [Feb-08-18 04:15PM  Investor's Business Daily]
▶ Who Are The Largest Shareholders In LogMeIn Inc (NASDAQ:LOGM)?   [Feb-05-18 11:09AM  Simply Wall St.]
▶ LogMeIn Announces Dividend Increase of 20%   [Feb-01-18 04:08PM  GlobeNewswire]
▶ When Should You Buy LogMeIn Inc (NASDAQ:LOGM)?   [Jan-24-18 07:13PM  Simply Wall St.]
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