Intrinsic value of Mid-America Apartment Communities - MAA

Previous Close

$101.15

  Intrinsic Value

$1,195

stock screener

  Rating & Target

str. buy

+999%

Previous close

$101.15

 
Intrinsic value

$1,195

 
Up/down potential

+999%

 
Rating

str. buy

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

We calculate the intrinsic value of MAA 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 11.5

 

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, %
  35.90
  32.81
  30.03
  27.53
  25.27
  23.25
  21.42
  19.78
  18.30
  16.97
  15.77
  14.70
  13.73
  12.85
  12.07
  11.36
  10.73
  10.15
  9.64
  9.17
  8.76
  8.38
  8.04
  7.74
  7.46
  7.22
  7.00
  6.80
  6.62
  6.46
Revenue, $m
  2,078
  2,760
  3,588
  4,576
  5,733
  7,065
  8,579
  10,276
  12,156
  14,219
  16,462
  18,882
  21,474
  24,234
  27,159
  30,244
  33,488
  36,888
  40,444
  44,154
  48,021
  52,045
  56,231
  60,583
  65,105
  69,804
  74,688
  79,765
  85,043
  90,533
Variable operating expenses, $m
  1,569
  2,084
  2,709
  3,455
  4,328
  5,334
  6,477
  7,758
  9,178
  10,736
  12,429
  14,256
  16,213
  18,297
  20,505
  22,834
  25,284
  27,851
  30,535
  33,336
  36,255
  39,294
  42,454
  45,740
  49,154
  52,702
  56,390
  60,222
  64,207
  68,352
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
  1,569
  2,084
  2,709
  3,455
  4,328
  5,334
  6,477
  7,758
  9,178
  10,736
  12,429
  14,256
  16,213
  18,297
  20,505
  22,834
  25,284
  27,851
  30,535
  33,336
  36,255
  39,294
  42,454
  45,740
  49,154
  52,702
  56,390
  60,222
  64,207
  68,352
Operating income, $m
  509
  676
  879
  1,121
  1,405
  1,731
  2,102
  2,518
  2,978
  3,484
  4,033
  4,626
  5,261
  5,937
  6,654
  7,410
  8,205
  9,038
  9,909
  10,818
  11,765
  12,751
  13,777
  14,843
  15,951
  17,102
  18,299
  19,542
  20,836
  22,181
EBITDA, $m
  2,079
  2,761
  3,589
  4,577
  5,734
  7,067
  8,581
  10,279
  12,160
  14,224
  16,467
  18,887
  21,480
  24,241
  27,167
  30,253
  33,498
  36,899
  40,456
  44,167
  48,035
  52,061
  56,248
  60,601
  65,125
  69,825
  74,711
  79,789
  85,068
  90,560
Interest expense (income), $m
  145
  0
  0
  0
  0
  0
  0
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -5
  -5
  -5
  -6
  -6
  -7
  -7
Earnings before tax, $m
  509
  676
  879
  1,121
  1,405
  1,731
  2,102
  2,518
  2,979
  3,485
  4,034
  4,627
  5,263
  5,939
  6,656
  7,412
  8,207
  9,040
  9,912
  10,821
  11,769
  12,755
  13,781
  14,847
  15,956
  17,108
  18,304
  19,549
  20,842
  22,188
Tax expense, $m
  137
  183
  237
  303
  379
  467
  568
  680
  804
  941
  1,089
  1,249
  1,421
  1,604
  1,797
  2,001
  2,216
  2,441
  2,676
  2,922
  3,178
  3,444
  3,721
  4,009
  4,308
  4,619
  4,942
  5,278
  5,627
  5,991
Net income, $m
  372
  494
  642
  819
  1,026
  1,264
  1,535
  1,838
  2,175
  2,544
  2,945
  3,378
  3,842
  4,336
  4,859
  5,411
  5,991
  6,600
  7,236
  7,899
  8,591
  9,311
  10,060
  10,839
  11,648
  12,488
  13,362
  14,270
  15,215
  16,197

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
  -1,066
  -1,416
  -1,841
  -2,348
  -2,941
  -3,625
  -4,402
  -5,272
  -6,237
  -7,296
  -8,446
  -9,688
  -11,018
  -12,434
  -13,935
  -15,518
  -17,182
  -18,927
  -20,751
  -22,655
  -24,639
  -26,704
  -28,851
  -31,084
  -33,404
  -35,816
  -38,321
  -40,926
  -43,634
  -46,451
Adjusted assets (=assets-cash), $m
  -1,066
  -1,416
  -1,841
  -2,348
  -2,941
  -3,625
  -4,402
  -5,272
  -6,237
  -7,296
  -8,446
  -9,688
  -11,018
  -12,434
  -13,935
  -15,518
  -17,182
  -18,927
  -20,751
  -22,655
  -24,639
  -26,704
  -28,851
  -31,084
  -33,404
  -35,816
  -38,321
  -40,926
  -43,634
  -46,451
Revenue / Adjusted assets
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
  -1.949
Average production assets, $m
  15,694
  20,844
  27,103
  34,563
  43,299
  53,364
  64,795
  77,612
  91,816
  107,398
  124,339
  142,613
  162,189
  183,038
  205,129
  228,435
  252,937
  278,618
  305,471
  333,496
  362,699
  393,097
  424,714
  457,581
  491,738
  527,233
  564,121
  602,463
  642,329
  683,794
Working capital, $m
  -6,670
  -8,859
  -11,519
  -14,689
  -18,402
  -22,680
  -27,538
  -32,985
  -39,021
  -45,644
  -52,844
  -60,610
  -68,930
  -77,791
  -87,179
  -97,084
  -107,497
  -118,412
  -129,824
  -141,735
  -154,146
  -167,065
  -180,502
  -194,470
  -208,987
  -224,072
  -239,749
  -256,045
  -272,988
  -290,610
Total debt, $m
  -3
  -4
  -6
  -7
  -9
  -11
  -13
  -16
  -19
  -22
  -25
  -29
  -33
  -37
  -42
  -47
  -52
  -57
  -62
  -68
  -74
  -80
  -87
  -93
  -100
  -107
  -115
  -123
  -131
  -139
Total liabilities, $m
  -3
  -4
  -6
  -7
  -9
  -11
  -13
  -16
  -19
  -22
  -25
  -29
  -33
  -37
  -42
  -47
  -52
  -57
  -62
  -68
  -74
  -80
  -87
  -93
  -100
  -107
  -115
  -123
  -131
  -139
Total equity, $m
  -1,063
  -1,412
  -1,836
  -2,341
  -2,933
  -3,614
  -4,388
  -5,256
  -6,218
  -7,274
  -8,421
  -9,659
  -10,985
  -12,397
  -13,893
  -15,471
  -17,131
  -18,870
  -20,689
  -22,587
  -24,565
  -26,623
  -28,765
  -30,991
  -33,304
  -35,708
  -38,206
  -40,803
  -43,503
  -46,312
Total liabilities and equity, $m
  -1,066
  -1,416
  -1,842
  -2,348
  -2,942
  -3,625
  -4,401
  -5,272
  -6,237
  -7,296
  -8,446
  -9,688
  -11,018
  -12,434
  -13,935
  -15,518
  -17,183
  -18,927
  -20,751
  -22,655
  -24,639
  -26,703
  -28,852
  -31,084
  -33,404
  -35,815
  -38,321
  -40,926
  -43,634
  -46,451
Debt-to-equity ratio
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
Adjusted equity ratio
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  372
  494
  642
  819
  1,026
  1,264
  1,535
  1,838
  2,175
  2,544
  2,945
  3,378
  3,842
  4,336
  4,859
  5,411
  5,991
  6,600
  7,236
  7,899
  8,591
  9,311
  10,060
  10,839
  11,648
  12,488
  13,362
  14,270
  15,215
  16,197
Depreciation, amort., depletion, $m
  1,569
  2,084
  2,710
  3,456
  4,330
  5,336
  6,480
  7,761
  9,182
  10,740
  12,434
  14,261
  16,219
  18,304
  20,513
  22,844
  25,294
  27,862
  30,547
  33,350
  36,270
  39,310
  42,471
  45,758
  49,174
  52,723
  56,412
  60,246
  64,233
  68,379
Funds from operations, $m
  1,941
  2,578
  3,352
  4,275
  5,355
  6,600
  8,014
  9,599
  11,356
  13,284
  15,379
  17,639
  20,061
  22,639
  25,372
  28,254
  31,285
  34,461
  37,783
  41,249
  44,861
  48,621
  52,531
  56,597
  60,822
  65,212
  69,774
  74,517
  79,448
  84,576
Change in working capital, $m
  -1,762
  -2,188
  -2,660
  -3,171
  -3,713
  -4,278
  -4,858
  -5,447
  -6,037
  -6,622
  -7,200
  -7,766
  -8,320
  -8,861
  -9,388
  -9,905
  -10,413
  -10,914
  -11,412
  -11,910
  -12,411
  -12,919
  -13,437
  -13,968
  -14,517
  -15,085
  -15,677
  -16,295
  -16,943
  -17,623
Cash from operations, $m
  3,703
  4,767
  6,012
  7,446
  9,068
  10,878
  12,873
  15,046
  17,393
  19,906
  22,579
  25,406
  28,381
  31,500
  34,760
  38,160
  41,698
  45,376
  49,195
  53,159
  57,272
  61,540
  65,968
  70,565
  75,338
  80,297
  85,451
  90,812
  96,391
  102,199
Maintenance CAPEX, $m
  -1,155
  -1,569
  -2,084
  -2,710
  -3,456
  -4,330
  -5,336
  -6,480
  -7,761
  -9,182
  -10,740
  -12,434
  -14,261
  -16,219
  -18,304
  -20,513
  -22,844
  -25,294
  -27,862
  -30,547
  -33,350
  -36,270
  -39,310
  -42,471
  -45,758
  -49,174
  -52,723
  -56,412
  -60,246
  -64,233
New CAPEX, $m
  -4,146
  -5,149
  -6,259
  -7,460
  -8,735
  -10,065
  -11,431
  -12,816
  -14,204
  -15,582
  -16,941
  -18,274
  -19,577
  -20,848
  -22,091
  -23,307
  -24,502
  -25,681
  -26,853
  -28,024
  -29,203
  -30,398
  -31,617
  -32,867
  -34,157
  -35,495
  -36,888
  -38,342
  -39,866
  -41,465
Cash from investing activities, $m
  -5,301
  -6,718
  -8,343
  -10,170
  -12,191
  -14,395
  -16,767
  -19,296
  -21,965
  -24,764
  -27,681
  -30,708
  -33,838
  -37,067
  -40,395
  -43,820
  -47,346
  -50,975
  -54,715
  -58,571
  -62,553
  -66,668
  -70,927
  -75,338
  -79,915
  -84,669
  -89,611
  -94,754
  -100,112
  -105,698
Free cash flow, $m
  -1,598
  -1,952
  -2,331
  -2,725
  -3,124
  -3,517
  -3,895
  -4,249
  -4,572
  -4,858
  -5,102
  -5,302
  -5,457
  -5,568
  -5,634
  -5,660
  -5,647
  -5,599
  -5,520
  -5,412
  -5,281
  -5,128
  -4,958
  -4,773
  -4,577
  -4,372
  -4,160
  -3,942
  -3,722
  -3,499
Issuance/(repayment) of debt, $m
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -8
  -8
Issuance/(repurchase) of shares, $m
  -281
  -349
  -424
  -505
  -592
  -682
  -774
  -868
  -962
  -1,055
  -1,147
  -1,238
  -1,326
  -1,412
  -1,496
  -1,579
  -1,659
  -1,739
  -1,819
  -1,898
  -1,978
  -2,059
  -2,141
  -2,226
  -2,313
  -2,404
  -2,498
  -2,597
  -2,700
  -2,808
Cash from financing (excl. dividends), $m  
  -282
  -350
  -425
  -507
  -594
  -684
  -776
  -871
  -965
  -1,058
  -1,150
  -1,242
  -1,330
  -1,416
  -1,501
  -1,584
  -1,664
  -1,744
  -1,824
  -1,904
  -1,984
  -2,065
  -2,147
  -2,233
  -2,320
  -2,411
  -2,506
  -2,605
  -2,708
  -2,816
Total cash flow (excl. dividends), $m
  -1,879
  -2,302
  -2,756
  -3,232
  -3,717
  -4,201
  -4,672
  -5,120
  -5,537
  -5,916
  -6,253
  -6,543
  -6,787
  -6,984
  -7,135
  -7,243
  -7,312
  -7,344
  -7,344
  -7,316
  -7,264
  -7,193
  -7,106
  -7,006
  -6,898
  -6,783
  -6,665
  -6,547
  -6,430
  -6,316
Retained Cash Flow (-), $m
  281
  349
  424
  505
  592
  682
  774
  868
  962
  1,055
  1,147
  1,238
  1,326
  1,412
  1,496
  1,579
  1,659
  1,739
  1,819
  1,898
  1,978
  2,059
  2,141
  2,226
  2,313
  2,404
  2,498
  2,597
  2,700
  2,808
Prev. year cash balance distribution, $m
  782
  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
  281
  349
  424
  505
  592
  682
  774
  868
  962
  1,055
  1,147
  1,238
  1,326
  1,412
  1,496
  1,579
  1,659
  1,739
  1,819
  1,898
  1,978
  2,059
  2,141
  2,226
  2,313
  2,404
  2,498
  2,597
  2,700
  2,808
Discount rate, %
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
  0.00
PV of cash for distribution, $m
  281
  349
  424
  505
  592
  682
  774
  868
  962
  1,055
  1,147
  1,238
  1,326
  1,412
  1,496
  1,579
  1,659
  1,739
  1,819
  1,898
  1,978
  2,059
  2,141
  2,226
  2,313
  2,404
  2,498
  2,597
  2,700
  2,808
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

Mid-America Apartment Communities, Inc. is a multifamily focused, self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and develops apartment communities primarily located in the Southeast and Southwest regions of the United States. It operates through three segments: Large market same store, Secondary market same store and Non-Same Store and Other. Its Large market same store communities are communities in markets with a population of at least one million and at least 1% of the total public multifamily REIT units that it has owned. Its Secondary market same store communities are communities in markets with populations of more than one million but less than 1% of the total public multifamily REIT units or markets with populations of less than one million that it has owned. Its Non-same store communities and other includes recent acquisitions and communities in development or lease-up communities.

FINANCIAL RATIOS  of  Mid-America Apartment Communities (MAA)

Valuation Ratios
P/E Ratio 54.2
Price to Sales 10.2
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 23.7
Price to Free Cash Flow -294.4
Growth Rates
Sales Growth Rate 7.9%
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 14.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 70.2%
Total Debt to Equity 70.2%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.9%
Ret/ On Assets - 3 Yr. Avg. 5%
Return On Total Capital 2.4%
Ret/ On T. Cap. - 3 Yr. Avg. 3.3%
Return On Equity 4.5%
Return On Equity - 3 Yr. Avg. 6.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 68.9%
Gross Margin - 3 Yr. Avg. 68.2%
EBITDA Margin 61.7%
EBITDA Margin - 3 Yr. Avg. 65.7%
Operating Margin 24.2%
Oper. Margin - 3 Yr. Avg. 24.8%
Pre-Tax Margin 20.1%
Pre-Tax Margin - 3 Yr. Avg. 22.9%
Net Profit Margin 18.8%
Net Profit Margin - 3 Yr. Avg. 21.9%
Effective Tax Rate 0.9%
Eff/ Tax Rate - 3 Yr. Avg. 0.8%
Payout Ratio 117.5%

MAA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MAA stock intrinsic value calculation we used $1529 million for the last fiscal year's total revenue generated by Mid-America Apartment Communities. The default revenue input number comes from 2017 income statement of Mid-America Apartment Communities. 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 MAA stock valuation model: a) initial revenue growth rate of 35.9% 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 0%, whose default value for MAA is calculated based on our internal credit rating of Mid-America Apartment Communities, 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 Mid-America Apartment Communities.
    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 MAA stock the variable cost ratio is equal to 75.5%.

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 MAA 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 Mid-America Apartment Communities.

Corporate tax rate of 27% is the nominal tax rate for Mid-America Apartment Communities. 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 MAA stock is equal to 0.7%.

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 MAA are equal to 755.3%.

Life of production assets of 10 years is the average useful life of capital assets used in Mid-America Apartment Communities 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 MAA is equal to -321%. 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 - $0 million for Mid-America Apartment Communities - 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 114 million for Mid-America Apartment Communities 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 Mid-America Apartment Communities at the current share price and the inputted number of shares is $11.5 billion.

RELATED COMPANIES Price Int.Val. Rating
AIV Apartment Inve 43.30 152.16  str.buy
CPT Camden Propert 93.39 136.27  str.buy
UDR UDR 39.00 9.91  str.sell
ESS Essex Property 236.80 16.95  str.sell
EQR Equity Residen 66.60 1.44  str.sell
ACC American Campu 41.24 56.36  buy

COMPANY NEWS

▶ Mid-America Apartment Communities: 2Q Earnings Snapshot   [Aug-01-18 04:49PM  Associated Press]
▶ MAA Reports Second Quarter Results   [04:23PM  PR Newswire]
▶ MAA Announces Regular Quarterly Preferred Dividend   [Jun-01-18 04:20PM  PR Newswire]
▶ See Inside: MAA's new headquarters in TraVure   [May-29-18 08:54AM  American City Business Journals]
▶ MAA Announces Quarterly Common Dividend   [May-22-18 04:20PM  PR Newswire]
▶ MAA Announces Pricing of Senior Unsecured Notes Offering   [May-07-18 05:28PM  PR Newswire]
▶ Mid-America Apartment Communities: 1Q Earnings Snapshot   [May-02-18 05:05PM  Associated Press]
▶ MAA Reports First Quarter Results   [04:20PM  PR Newswire]
▶ MAA Announces Quarterly Common Dividend   [Mar-13-18 04:24PM  PR Newswire]
▶ MAA Announces Regular Quarterly Preferred Dividend   [Mar-01-18 04:20PM  PR Newswire]
▶ Mid-America Apartment Communities reports 4Q results   [Jan-31-18 05:01PM  Associated Press]
▶ MAA Announces Taxable Composition of 2017 Distributions   [Jan-19-18 04:44PM  PR Newswire]
▶ MAA Announces 6% Increase in Common Dividend   [Dec-05-17 04:20PM  PR Newswire]
▶ MAA Announces Regular Quarterly Preferred Dividend   [Dec-01-17 06:12PM  PR Newswire]
▶ Top Rated NYSE Real Estate Dividend Stocks   [Nov-13-17 10:02AM  Simply Wall St.]
▶ MAA 2017 Investor Day   [Nov-09-17 07:26PM  PR Newswire]
▶ 9 REITs Ready to Raise Their Payouts This December   [Nov-08-17 03:56AM  Harvest Exchange]
▶ Mid-America Apartment Communities reports 3Q results   [Oct-25-17 04:41PM  Associated Press]
▶ MAA Reports Third Quarter Results   [04:20PM  PR Newswire]
▶ MAA Announces Quarterly Common Dividend   [Sep-26-17 04:20PM  PR Newswire]
▶ [$$] Big REIT Buys: Duke, SL Green, American Tower   [Sep-13-17 05:30AM  Barrons.com]
▶ Construction: MAA prepares for new headquarters in Germantown   [Sep-08-17 03:30PM  American City Business Journals]
▶ MAA Announces Regular Quarterly Preferred Dividend   [Sep-01-17 04:20PM  PR Newswire]
▶ Memphis apartment developers update status of Texas properties   [Aug-30-17 01:15PM  American City Business Journals]
▶ Mid-America Apartment Communities reports 2Q results   [Jul-26-17 10:35PM  Associated Press]
▶ MAA Reports Second Quarter Results   [04:21PM  PR Newswire]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

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

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