Intrinsic value of Mid-America Apartment Communities - MAA

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$85.51

  Intrinsic Value

$14.11

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  Rating & Target

str. sell

-84%

Previous close

$85.51

 
Intrinsic value

$14.11

 
Up/down potential

-84%

 
Rating

str. sell

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

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Mid-America Apartment Communities (MAA) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.86
  39.00
  35.60
  32.54
  29.79
  27.31
  25.08
  23.07
  21.26
  19.64
  18.17
  16.86
  15.67
  14.60
  13.64
  12.78
  12.00
  11.30
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
Revenue, $m
  1,125
  1,564
  2,120
  2,810
  3,648
  4,644
  5,808
  7,148
  8,668
  10,370
  12,254
  14,320
  16,563
  18,982
  21,572
  24,328
  27,248
  30,327
  33,563
  36,953
  40,498
  44,197
  48,051
  52,063
  56,235
  60,572
  65,079
  69,762
  74,630
  79,689
  84,950
Variable operating expenses, $m
 
  1,137
  1,541
  2,043
  2,652
  3,376
  4,222
  5,196
  6,301
  7,538
  8,908
  10,409
  12,040
  13,798
  15,681
  17,684
  19,807
  22,045
  24,397
  26,862
  29,439
  32,128
  34,929
  37,845
  40,878
  44,030
  47,307
  50,711
  54,249
  57,927
  61,751
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
  853
  1,137
  1,541
  2,043
  2,652
  3,376
  4,222
  5,196
  6,301
  7,538
  8,908
  10,409
  12,040
  13,798
  15,681
  17,684
  19,807
  22,045
  24,397
  26,862
  29,439
  32,128
  34,929
  37,845
  40,878
  44,030
  47,307
  50,711
  54,249
  57,927
  61,751
Operating income, $m
  272
  427
  579
  767
  996
  1,268
  1,586
  1,952
  2,367
  2,832
  3,346
  3,911
  4,523
  5,184
  5,891
  6,644
  7,441
  8,282
  9,166
  10,092
  11,060
  12,070
  13,122
  14,218
  15,357
  16,541
  17,772
  19,051
  20,381
  21,762
  23,199
EBITDA, $m
  595
  876
  1,188
  1,574
  2,043
  2,601
  3,253
  4,003
  4,854
  5,807
  6,863
  8,020
  9,276
  10,631
  12,081
  13,625
  15,260
  16,984
  18,796
  20,695
  22,681
  24,752
  26,911
  29,157
  31,494
  33,923
  36,447
  39,070
  41,796
  44,629
  47,575
Interest expense (income), $m
  145
  167
  242
  338
  456
  599
  770
  969
  1,199
  1,459
  1,750
  2,073
  2,427
  2,811
  3,225
  3,669
  4,141
  4,641
  5,168
  5,723
  6,303
  6,911
  7,544
  8,204
  8,891
  9,606
  10,348
  11,120
  11,923
  12,756
  13,623
Earnings before tax, $m
  226
  260
  337
  430
  540
  669
  816
  983
  1,168
  1,373
  1,596
  1,837
  2,096
  2,373
  2,665
  2,975
  3,300
  3,641
  3,997
  4,369
  4,756
  5,159
  5,578
  6,014
  6,466
  6,936
  7,424
  7,931
  8,458
  9,006
  9,576
Tax expense, $m
  2
  70
  91
  116
  146
  181
  220
  265
  315
  371
  431
  496
  566
  641
  720
  803
  891
  983
  1,079
  1,180
  1,284
  1,393
  1,506
  1,624
  1,746
  1,873
  2,004
  2,141
  2,284
  2,432
  2,586
Net income, $m
  212
  190
  246
  314
  394
  488
  596
  717
  853
  1,002
  1,165
  1,341
  1,530
  1,732
  1,946
  2,172
  2,409
  2,658
  2,918
  3,189
  3,472
  3,766
  4,072
  4,390
  4,720
  5,063
  5,419
  5,790
  6,174
  6,574
  6,991

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  34
  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
  11,604
  16,121
  21,860
  28,974
  37,604
  47,872
  59,877
  73,690
  89,358
  106,904
  126,331
  147,624
  170,757
  195,692
  222,388
  250,805
  280,903
  312,646
  346,006
  380,963
  417,509
  455,642
  495,376
  536,731
  579,741
  624,451
  670,915
  719,200
  769,379
  821,538
  875,771
Adjusted assets (=assets-cash), $m
  11,570
  16,121
  21,860
  28,974
  37,604
  47,872
  59,877
  73,690
  89,358
  106,904
  126,331
  147,624
  170,757
  195,692
  222,388
  250,805
  280,903
  312,646
  346,006
  380,963
  417,509
  455,642
  495,376
  536,731
  579,741
  624,451
  670,915
  719,200
  769,379
  821,538
  875,771
Revenue / Adjusted assets
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
  0.097
Average production assets, $m
  9,007
  12,519
  16,976
  22,500
  29,202
  37,177
  46,499
  57,226
  69,394
  83,020
  98,107
  114,643
  132,607
  151,971
  172,703
  194,771
  218,144
  242,795
  268,702
  295,849
  324,230
  353,844
  384,700
  416,815
  450,216
  484,937
  521,021
  558,518
  597,486
  637,992
  680,108
Working capital, $m
  0
  -47
  -64
  -84
  -109
  -139
  -174
  -214
  -260
  -311
  -368
  -430
  -497
  -569
  -647
  -730
  -817
  -910
  -1,007
  -1,109
  -1,215
  -1,326
  -1,442
  -1,562
  -1,687
  -1,817
  -1,952
  -2,093
  -2,239
  -2,391
  -2,548
Total debt, $m
  4,500
  6,548
  9,125
  12,319
  16,194
  20,805
  26,195
  32,397
  39,432
  47,310
  56,033
  65,593
  75,980
  87,175
  99,162
  111,922
  125,435
  139,688
  154,667
  170,363
  186,771
  203,893
  221,734
  240,302
  259,614
  279,688
  300,551
  322,231
  344,761
  368,181
  392,531
Total liabilities, $m
  5,191
  7,238
  9,815
  13,009
  16,884
  21,495
  26,885
  33,087
  40,122
  48,000
  56,723
  66,283
  76,670
  87,865
  99,852
  112,612
  126,125
  140,378
  155,357
  171,053
  187,461
  204,583
  222,424
  240,992
  260,304
  280,378
  301,241
  322,921
  345,451
  368,871
  393,221
Total equity, $m
  6,414
  8,883
  12,045
  15,964
  20,720
  26,378
  32,992
  40,603
  49,236
  58,904
  69,609
  81,341
  94,087
  107,826
  122,536
  138,194
  154,777
  172,268
  190,649
  209,911
  230,047
  251,059
  272,952
  295,739
  319,437
  344,072
  369,674
  396,279
  423,928
  452,667
  482,550
Total liabilities and equity, $m
  11,605
  16,121
  21,860
  28,973
  37,604
  47,873
  59,877
  73,690
  89,358
  106,904
  126,332
  147,624
  170,757
  195,691
  222,388
  250,806
  280,902
  312,646
  346,006
  380,964
  417,508
  455,642
  495,376
  536,731
  579,741
  624,450
  670,915
  719,200
  769,379
  821,538
  875,771
Debt-to-equity ratio
  0.702
  0.740
  0.760
  0.770
  0.780
  0.790
  0.790
  0.800
  0.800
  0.800
  0.800
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
  0.810
Adjusted equity ratio
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  212
  190
  246
  314
  394
  488
  596
  717
  853
  1,002
  1,165
  1,341
  1,530
  1,732
  1,946
  2,172
  2,409
  2,658
  2,918
  3,189
  3,472
  3,766
  4,072
  4,390
  4,720
  5,063
  5,419
  5,790
  6,174
  6,574
  6,991
Depreciation, amort., depletion, $m
  323
  449
  609
  807
  1,047
  1,333
  1,667
  2,051
  2,487
  2,976
  3,516
  4,109
  4,753
  5,447
  6,190
  6,981
  7,819
  8,702
  9,631
  10,604
  11,621
  12,683
  13,789
  14,940
  16,137
  17,381
  18,675
  20,019
  21,415
  22,867
  24,377
Funds from operations, $m
  504
  639
  854
  1,120
  1,441
  1,821
  2,263
  2,769
  3,340
  3,978
  4,681
  5,450
  6,283
  7,179
  8,136
  9,153
  10,228
  11,360
  12,549
  13,793
  15,093
  16,449
  17,861
  19,330
  20,857
  22,444
  24,094
  25,808
  27,590
  29,442
  31,367
Change in working capital, $m
  20
  -13
  -17
  -21
  -25
  -30
  -35
  -40
  -46
  -51
  -57
  -62
  -67
  -73
  -78
  -83
  -88
  -92
  -97
  -102
  -106
  -111
  -116
  -120
  -125
  -130
  -135
  -141
  -146
  -152
  -158
Cash from operations, $m
  484
  652
  871
  1,141
  1,466
  1,851
  2,298
  2,809
  3,386
  4,029
  4,738
  5,512
  6,351
  7,251
  8,214
  9,235
  10,315
  11,452
  12,646
  13,895
  15,200
  16,560
  17,976
  19,450
  20,982
  22,574
  24,229
  25,949
  27,736
  29,593
  31,525
Maintenance CAPEX, $m
  0
  -323
  -449
  -608
  -806
  -1,047
  -1,332
  -1,667
  -2,051
  -2,487
  -2,976
  -3,516
  -4,109
  -4,753
  -5,447
  -6,190
  -6,981
  -7,819
  -8,702
  -9,631
  -10,604
  -11,621
  -12,683
  -13,789
  -14,940
  -16,137
  -17,381
  -18,675
  -20,019
  -21,415
  -22,867
New CAPEX, $m
  -523
  -3,512
  -4,457
  -5,524
  -6,702
  -7,974
  -9,323
  -10,727
  -12,168
  -13,626
  -15,087
  -16,536
  -17,964
  -19,364
  -20,732
  -22,068
  -23,373
  -24,651
  -25,907
  -27,148
  -28,381
  -29,614
  -30,856
  -32,116
  -33,401
  -34,721
  -36,083
  -37,497
  -38,968
  -40,506
  -42,117
Cash from investing activities, $m
  -710
  -3,835
  -4,906
  -6,132
  -7,508
  -9,021
  -10,655
  -12,394
  -14,219
  -16,113
  -18,063
  -20,052
  -22,073
  -24,117
  -26,179
  -28,258
  -30,354
  -32,470
  -34,609
  -36,779
  -38,985
  -41,235
  -43,539
  -45,905
  -48,341
  -50,858
  -53,464
  -56,172
  -58,987
  -61,921
  -64,984
Free cash flow, $m
  -226
  -3,183
  -4,035
  -4,992
  -6,042
  -7,170
  -8,358
  -9,585
  -10,833
  -12,084
  -13,324
  -14,540
  -15,722
  -16,865
  -17,966
  -19,023
  -20,039
  -21,017
  -21,963
  -22,883
  -23,785
  -24,675
  -25,562
  -26,454
  -27,359
  -28,283
  -29,236
  -30,223
  -31,251
  -32,328
  -33,459
Issuance/(repayment) of debt, $m
  489
  2,048
  2,577
  3,194
  3,875
  4,611
  5,390
  6,202
  7,035
  7,878
  8,723
  9,561
  10,386
  11,196
  11,987
  12,759
  13,514
  14,253
  14,979
  15,696
  16,409
  17,122
  17,840
  18,568
  19,312
  20,075
  20,863
  21,680
  22,530
  23,419
  24,351
Issuance/(repurchase) of shares, $m
  -2
  2,313
  2,916
  3,606
  4,361
  5,170
  6,019
  6,894
  7,780
  8,666
  9,539
  10,391
  11,215
  12,007
  12,764
  13,486
  14,175
  14,833
  15,463
  16,072
  16,664
  17,245
  17,821
  18,397
  18,979
  19,572
  20,183
  20,815
  21,474
  22,165
  22,892
Cash from financing (excl. dividends), $m  
  471
  4,361
  5,493
  6,800
  8,236
  9,781
  11,409
  13,096
  14,815
  16,544
  18,262
  19,952
  21,601
  23,203
  24,751
  26,245
  27,689
  29,086
  30,442
  31,768
  33,073
  34,367
  35,661
  36,965
  38,291
  39,647
  41,046
  42,495
  44,004
  45,584
  47,243
Total cash flow (excl. dividends), $m
  245
  1,178
  1,459
  1,808
  2,194
  2,610
  3,051
  3,511
  3,982
  4,460
  4,938
  5,412
  5,879
  6,338
  6,785
  7,223
  7,650
  8,068
  8,479
  8,885
  9,288
  9,692
  10,099
  10,511
  10,932
  11,364
  11,810
  12,272
  12,754
  13,257
  13,784
Retained Cash Flow (-), $m
  -3,414
  -2,503
  -3,162
  -3,919
  -4,755
  -5,658
  -6,615
  -7,611
  -8,633
  -9,668
  -10,704
  -11,733
  -12,746
  -13,739
  -14,710
  -15,658
  -16,584
  -17,490
  -18,381
  -19,262
  -20,137
  -21,012
  -21,893
  -22,787
  -23,699
  -24,635
  -25,602
  -26,605
  -27,649
  -28,740
  -29,883
Prev. year cash balance distribution, $m
 
  34
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -1,291
  -1,703
  -2,111
  -2,562
  -3,048
  -3,563
  -4,100
  -4,651
  -5,208
  -5,767
  -6,321
  -6,866
  -7,402
  -7,925
  -8,435
  -8,934
  -9,422
  -9,903
  -10,377
  -10,848
  -11,319
  -11,794
  -12,276
  -12,767
  -13,272
  -13,792
  -14,333
  -14,895
  -15,483
  -16,098
Discount rate, %
 
  8.00
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
PV of cash for distribution, $m
 
  -1,195
  -1,450
  -1,638
  -1,797
  -1,916
  -1,989
  -2,010
  -1,981
  -1,906
  -1,790
  -1,643
  -1,474
  -1,292
  -1,108
  -930
  -762
  -611
  -478
  -366
  -273
  -199
  -141
  -97
  -65
  -43
  -27
  -17
  -10
  -6
  -3
Current shareholders' claim on cash, %
  100
  80.7
  66.3
  55.4
  46.9
  40.3
  35.0
  30.8
  27.3
  24.5
  22.1
  20.1
  18.5
  17.0
  15.8
  14.7
  13.8
  13.0
  12.2
  11.6
  11.0
  10.5
  10.0
  9.6
  9.2
  8.9
  8.5
  8.2
  7.9
  7.7
  7.4

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 45.8
Price to Sales 8.6
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 20.1
Price to Free Cash Flow -248.9
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 $1125 million for the last fiscal year's total revenue generated by Mid-America Apartment Communities. The default revenue input number comes from 2016 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 39% 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%, 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 72.7%.

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 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 3.7% 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%.

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 800.6%.

Life of production assets of 27.9 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 -3%. 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 - $6414 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 113.663 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 $9.7 billion.

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COMPANY NEWS

▶ 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]
▶ MAA Announces Regular Quarterly Preferred Dividend   [Jun-01-17 04:20PM  PR Newswire]
▶ MAA Announces Quarterly Common Dividend   [May-23-17 04:32PM  PR Newswire]
▶ 3 Top Residential REIT Stocks to Buy in 2017   [May-19-17 10:03AM  Motley Fool]
▶ MAA Announces Pricing of Senior Unsecured Notes Offering   [May-02-17 04:32PM  PR Newswire]
▶ MAA updates its $4B merger integration, trends in rent increases   [May-01-17 01:50PM  American City Business Journals]
▶ Mid-America Apartment Communities reports 1Q results   [Apr-26-17 04:59PM  Associated Press]
▶ MAA Reports First Quarter Results   [04:20PM  PR Newswire]
▶ This Stock Has a 3.4% Dividend and Lots of Room to Grow   [Apr-22-17 07:27AM  Motley Fool]
▶ Memphis-based company No. 1 in nation for apartment ownership   [Apr-09-17 05:30PM  American City Business Journals]
▶ /C O R R E C T I O N -- MAA/   [Mar-23-17 07:02PM  PR Newswire]
▶ 5 Top Dividend Stocks in Residential REITs   [Mar-14-17 08:27AM  Motley Fool]
▶ 5 Top Dividend Stocks in Residential REITs   [08:27AM  at Motley Fool]
Financial statements of MAA
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