Intrinsic value of Marriott International - MAR

Previous Close

$141.13

  Intrinsic Value

$476.62

stock screener

  Rating & Target

str. buy

+238%

Previous close

$141.13

 
Intrinsic value

$476.62

 
Up/down potential

+238%

 
Rating

str. buy

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

We calculate the intrinsic value of MAR 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

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, %
  17.85
  43.70
  39.83
  36.35
  33.21
  30.39
  27.85
  25.57
  23.51
  21.66
  19.99
  18.49
  17.14
  15.93
  14.84
  13.85
  12.97
  12.17
  11.45
  10.81
  10.23
  9.71
  9.23
  8.81
  8.43
  8.09
  7.78
  7.50
  7.25
  7.03
  6.82
Revenue, $m
  17,072
  24,532
  34,304
  46,772
  62,306
  81,242
  103,869
  130,425
  161,088
  195,978
  235,161
  278,651
  326,424
  378,424
  434,571
  494,773
  558,935
  626,964
  698,777
  774,306
  853,500
  936,332
  1,022,798
  1,112,917
  1,206,736
  1,304,324
  1,405,778
  1,511,218
  1,620,787
  1,734,653
  1,853,005
Variable operating expenses, $m
 
  21,919
  30,347
  41,100
  54,499
  70,830
  90,346
  113,251
  139,698
  169,790
  203,585
  240,335
  281,539
  326,388
  374,815
  426,739
  482,078
  540,753
  602,691
  667,834
  736,139
  807,581
  882,158
  959,885
  1,040,803
  1,124,972
  1,212,476
  1,303,417
  1,397,919
  1,496,128
  1,598,206
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
  15,704
  21,919
  30,347
  41,100
  54,499
  70,830
  90,346
  113,251
  139,698
  169,790
  203,585
  240,335
  281,539
  326,388
  374,815
  426,739
  482,078
  540,753
  602,691
  667,834
  736,139
  807,581
  882,158
  959,885
  1,040,803
  1,124,972
  1,212,476
  1,303,417
  1,397,919
  1,496,128
  1,598,206
Operating income, $m
  1,368
  2,614
  3,957
  5,672
  7,808
  10,411
  13,523
  17,174
  21,391
  26,188
  31,576
  38,316
  44,885
  52,035
  59,756
  68,034
  76,857
  86,211
  96,086
  106,471
  117,361
  128,751
  140,640
  153,032
  165,933
  179,352
  193,302
  207,801
  222,867
  238,525
  254,799
EBITDA, $m
  1,536
  3,711
  5,189
  7,075
  9,425
  12,290
  15,713
  19,730
  24,368
  29,646
  35,573
  42,152
  49,379
  57,245
  65,738
  74,845
  84,551
  94,842
  105,706
  117,131
  129,111
  141,641
  154,721
  168,354
  182,546
  197,308
  212,655
  228,605
  245,180
  262,405
  280,308
Interest expense (income), $m
  165
  287
  569
  939
  1,411
  2,000
  2,717
  3,573
  4,579
  5,740
  7,061
  8,545
  10,191
  12,000
  13,969
  16,095
  18,375
  20,804
  23,380
  26,099
  28,959
  31,958
  35,094
  38,368
  41,781
  45,333
  49,028
  52,870
  56,862
  61,011
  65,323
Earnings before tax, $m
  1,184
  2,327
  3,388
  4,732
  6,396
  8,412
  10,806
  13,601
  16,812
  20,448
  24,515
  29,771
  34,694
  40,035
  45,787
  51,939
  58,482
  65,407
  72,706
  80,372
  88,402
  96,793
  105,546
  114,664
  124,152
  134,019
  144,274
  154,931
  166,005
  177,513
  189,476
Tax expense, $m
  404
  628
  915
  1,278
  1,727
  2,271
  2,918
  3,672
  4,539
  5,521
  6,619
  8,038
  9,367
  10,809
  12,362
  14,023
  15,790
  17,660
  19,630
  21,700
  23,868
  26,134
  28,497
  30,959
  33,521
  36,185
  38,954
  41,831
  44,821
  47,929
  51,158
Net income, $m
  780
  1,698
  2,473
  3,455
  4,669
  6,141
  7,889
  9,929
  12,273
  14,927
  17,896
  21,733
  25,326
  29,226
  33,424
  37,915
  42,692
  47,747
  53,075
  58,672
  64,533
  70,659
  77,049
  83,705
  90,631
  97,834
  105,320
  113,100
  121,184
  129,585
  138,317

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  858
  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
  24,140
  33,469
  46,799
  63,809
  85,002
  110,835
  141,704
  177,933
  219,766
  267,365
  320,820
  380,152
  445,327
  516,267
  592,866
  674,997
  762,531
  855,340
  953,311
  1,056,351
  1,164,393
  1,277,397
  1,395,359
  1,518,305
  1,646,297
  1,779,433
  1,917,842
  2,061,688
  2,211,169
  2,366,511
  2,527,974
Adjusted assets (=assets-cash), $m
  23,282
  33,469
  46,799
  63,809
  85,002
  110,835
  141,704
  177,933
  219,766
  267,365
  320,820
  380,152
  445,327
  516,267
  592,866
  674,997
  762,531
  855,340
  953,311
  1,056,351
  1,164,393
  1,277,397
  1,395,359
  1,518,305
  1,646,297
  1,779,433
  1,917,842
  2,061,688
  2,211,169
  2,366,511
  2,527,974
Revenue / Adjusted assets
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
  0.733
Average production assets, $m
  7,043
  10,132
  14,167
  19,317
  25,732
  33,553
  42,898
  53,866
  66,529
  80,939
  97,121
  115,083
  134,813
  156,289
  179,478
  204,341
  230,840
  258,936
  288,595
  319,788
  352,496
  386,705
  422,416
  459,635
  498,382
  538,686
  580,586
  624,133
  669,385
  716,412
  765,291
Working capital, $m
  -1,776
  -3,336
  -4,665
  -6,361
  -8,474
  -11,049
  -14,126
  -17,738
  -21,908
  -26,653
  -31,982
  -37,897
  -44,394
  -51,466
  -59,102
  -67,289
  -76,015
  -85,267
  -95,034
  -105,306
  -116,076
  -127,341
  -139,101
  -151,357
  -164,116
  -177,388
  -191,186
  -205,526
  -220,427
  -235,913
  -252,009
Total debt, $m
  8,506
  16,264
  26,835
  40,324
  57,129
  77,615
  102,094
  130,824
  163,997
  201,743
  244,133
  291,183
  342,867
  399,123
  459,866
  524,996
  594,410
  668,008
  745,699
  827,410
  913,087
  1,002,699
  1,096,243
  1,193,739
  1,295,237
  1,400,813
  1,510,572
  1,624,642
  1,743,180
  1,866,366
  1,994,406
Total liabilities, $m
  18,783
  26,541
  37,112
  50,601
  67,406
  87,892
  112,371
  141,101
  174,274
  212,020
  254,410
  301,460
  353,144
  409,400
  470,143
  535,273
  604,687
  678,285
  755,976
  837,687
  923,364
  1,012,976
  1,106,520
  1,204,016
  1,305,514
  1,411,090
  1,520,849
  1,634,919
  1,753,457
  1,876,643
  2,004,683
Total equity, $m
  5,357
  6,928
  9,687
  13,208
  17,595
  22,943
  29,333
  36,832
  45,491
  55,345
  66,410
  78,691
  92,183
  106,867
  122,723
  139,724
  157,844
  177,055
  197,335
  218,665
  241,029
  264,421
  288,839
  314,289
  340,784
  368,343
  396,993
  426,769
  457,712
  489,868
  523,291
Total liabilities and equity, $m
  24,140
  33,469
  46,799
  63,809
  85,001
  110,835
  141,704
  177,933
  219,765
  267,365
  320,820
  380,151
  445,327
  516,267
  592,866
  674,997
  762,531
  855,340
  953,311
  1,056,352
  1,164,393
  1,277,397
  1,395,359
  1,518,305
  1,646,298
  1,779,433
  1,917,842
  2,061,688
  2,211,169
  2,366,511
  2,527,974
Debt-to-equity ratio
  1.588
  2.350
  2.770
  3.050
  3.250
  3.380
  3.480
  3.550
  3.610
  3.650
  3.680
  3.700
  3.720
  3.730
  3.750
  3.760
  3.770
  3.770
  3.780
  3.780
  3.790
  3.790
  3.800
  3.800
  3.800
  3.800
  3.810
  3.810
  3.810
  3.810
  3.810
Adjusted equity ratio
  0.193
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207
  0.207

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  780
  1,698
  2,473
  3,455
  4,669
  6,141
  7,889
  9,929
  12,273
  14,927
  17,896
  21,733
  25,326
  29,226
  33,424
  37,915
  42,692
  47,747
  53,075
  58,672
  64,533
  70,659
  77,049
  83,705
  90,631
  97,834
  105,320
  113,100
  121,184
  129,585
  138,317
Depreciation, amort., depletion, $m
  168
  1,098
  1,232
  1,404
  1,618
  1,878
  2,190
  2,555
  2,977
  3,458
  3,997
  3,836
  4,494
  5,210
  5,983
  6,811
  7,695
  8,631
  9,620
  10,660
  11,750
  12,890
  14,081
  15,321
  16,613
  17,956
  19,353
  20,804
  22,313
  23,880
  25,510
Funds from operations, $m
  1,405
  2,796
  3,705
  4,858
  6,287
  8,019
  10,078
  12,484
  15,250
  18,385
  21,893
  25,569
  29,820
  34,435
  39,407
  44,727
  50,386
  56,378
  62,695
  69,331
  76,283
  83,549
  91,129
  99,026
  107,244
  115,790
  124,673
  133,904
  143,496
  153,465
  163,827
Change in working capital, $m
  -177
  -1,015
  -1,329
  -1,696
  -2,113
  -2,575
  -3,077
  -3,612
  -4,170
  -4,745
  -5,329
  -5,915
  -6,497
  -7,072
  -7,636
  -8,188
  -8,726
  -9,252
  -9,767
  -10,272
  -10,770
  -11,265
  -11,759
  -12,256
  -12,759
  -13,272
  -13,798
  -14,340
  -14,901
  -15,486
  -16,096
Cash from operations, $m
  1,582
  3,811
  5,034
  6,554
  8,400
  10,594
  13,156
  16,096
  19,420
  23,130
  27,222
  31,484
  36,317
  41,507
  47,043
  52,914
  59,112
  65,630
  72,461
  79,603
  87,054
  94,814
  102,888
  111,282
  120,003
  129,062
  138,471
  148,244
  158,398
  168,951
  179,923
Maintenance CAPEX, $m
  0
  -235
  -338
  -472
  -644
  -858
  -1,118
  -1,430
  -1,796
  -2,218
  -2,698
  -3,237
  -3,836
  -4,494
  -5,210
  -5,983
  -6,811
  -7,695
  -8,631
  -9,620
  -10,660
  -11,750
  -12,890
  -14,081
  -15,321
  -16,613
  -17,956
  -19,353
  -20,804
  -22,313
  -23,880
New CAPEX, $m
  -199
  -3,089
  -4,036
  -5,149
  -6,416
  -7,820
  -9,345
  -10,968
  -12,664
  -14,410
  -16,182
  -17,961
  -19,730
  -21,476
  -23,189
  -24,864
  -26,499
  -28,096
  -29,659
  -31,193
  -32,707
  -34,210
  -35,710
  -37,219
  -38,747
  -40,304
  -41,900
  -43,547
  -45,252
  -47,027
  -48,879
Cash from investing activities, $m
  -2,409
  -3,324
  -4,374
  -5,621
  -7,060
  -8,678
  -10,463
  -12,398
  -14,460
  -16,628
  -18,880
  -21,198
  -23,566
  -25,970
  -28,399
  -30,847
  -33,310
  -35,791
  -38,290
  -40,813
  -43,367
  -45,960
  -48,600
  -51,300
  -54,068
  -56,917
  -59,856
  -62,900
  -66,056
  -69,340
  -72,759
Free cash flow, $m
  -827
  486
  661
  932
  1,340
  1,916
  2,692
  3,698
  4,961
  6,503
  8,342
  10,285
  12,751
  15,538
  18,645
  22,068
  25,802
  29,839
  34,171
  38,790
  43,687
  48,855
  54,288
  59,982
  65,935
  72,145
  78,614
  85,344
  92,341
  99,611
  107,163
Issuance/(repayment) of debt, $m
  2,521
  8,067
  10,571
  13,489
  16,806
  20,486
  24,480
  28,730
  33,173
  37,746
  42,390
  47,050
  51,684
  56,256
  60,743
  65,130
  69,414
  73,598
  77,691
  81,711
  85,677
  89,613
  93,543
  97,496
  101,498
  105,576
  109,758
  114,070
  118,538
  123,187
  128,040
Issuance/(repurchase) of shares, $m
  -534
  422
  286
  66
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,963
  8,489
  10,857
  13,555
  16,806
  20,486
  24,480
  28,730
  33,173
  37,746
  42,390
  47,050
  51,684
  56,256
  60,743
  65,130
  69,414
  73,598
  77,691
  81,711
  85,677
  89,613
  93,543
  97,496
  101,498
  105,576
  109,758
  114,070
  118,538
  123,187
  128,040
Total cash flow (excl. dividends), $m
  1,136
  8,975
  11,518
  14,488
  18,146
  22,402
  27,172
  32,428
  38,134
  44,249
  50,731
  57,335
  64,435
  71,794
  79,387
  87,198
  95,216
  103,437
  111,863
  120,501
  129,364
  138,467
  147,831
  157,478
  167,433
  177,722
  188,372
  199,415
  210,879
  222,798
  235,203
Retained Cash Flow (-), $m
  -8,947
  -2,120
  -2,759
  -3,521
  -4,387
  -5,347
  -6,390
  -7,499
  -8,659
  -9,853
  -11,065
  -12,282
  -13,491
  -14,685
  -15,856
  -17,001
  -18,119
  -19,211
  -20,280
  -21,329
  -22,365
  -23,392
  -24,418
  -25,450
  -26,494
  -27,559
  -28,651
  -29,776
  -30,942
  -32,156
  -33,423
Prev. year cash balance distribution, $m
 
  549
  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
 
  7,404
  8,759
  10,967
  13,759
  17,054
  20,782
  24,928
  29,475
  34,396
  39,666
  45,054
  50,943
  57,109
  63,531
  70,197
  77,097
  84,226
  91,583
  99,171
  106,999
  115,075
  123,413
  132,029
  140,938
  150,162
  159,722
  169,638
  179,937
  190,642
  201,780
Discount rate, %
 
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
 
  6,842
  7,425
  8,459
  9,573
  10,605
  11,437
  12,016
  12,304
  12,289
  11,978
  11,345
  10,546
  9,574
  8,488
  7,349
  6,212
  5,125
  4,125
  3,238
  2,476
  1,843
  1,335
  940
  642
  426
  273
  170
  102
  59
  33
Current shareholders' claim on cash, %
  100
  99.1
  98.7
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6
  98.6

Marriott International, Inc. (Marriott International) is a lodging company. Marriott International operates in three business segments: North American Full-Service, North American Limited-Service and International. Its North American Full-Service segment includes its Luxury and Premium brands (JW Marriott, Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels, Delta Hotels, Gaylord Hotels, and Tribute Portfolio) located in the United States and Canada. Its North American Limited-Service segment includes Select brands (Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Element Hotels and Moxy Hotels) located in the United States and Canada. Its International segment includes JW Marriott, St. Regis, EDITION, Bulgari Hotels & Resorts, Marriott Hotels, Sheraton, Westin, Four Points, Aloft Hotels, AC Hotels by Marriott, Protea Hotels, Element Hotels, and Moxy Hotels located outside the United States and Canada.

FINANCIAL RATIOS  of  Marriott International (MAR)

Valuation Ratios
P/E Ratio 69.9
Price to Sales 3.2
Price to Book 10.2
Price to Tangible Book
Price to Cash Flow 34.4
Price to Free Cash Flow 39.4
Growth Rates
Sales Growth Rate 17.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -34.8%
Cap. Spend. - 3 Yr. Gr. Rate -7.6%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 153%
Total Debt to Equity 158.8%
Interest Coverage 8
Management Effectiveness
Return On Assets 5.9%
Ret/ On Assets - 3 Yr. Avg. 10.7%
Return On Total Capital 10.8%
Ret/ On T. Cap. - 3 Yr. Avg. 46.2%
Return On Equity 88.3%
Return On Equity - 3 Yr. Avg. 5.7%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 15.4%
Gross Margin - 3 Yr. Avg. 14.8%
EBITDA Margin 8.9%
EBITDA Margin - 3 Yr. Avg. 9.6%
Operating Margin 8%
Oper. Margin - 3 Yr. Avg. 8.6%
Pre-Tax Margin 6.9%
Pre-Tax Margin - 3 Yr. Avg. 7.8%
Net Profit Margin 4.6%
Net Profit Margin - 3 Yr. Avg. 5.3%
Effective Tax Rate 34.1%
Eff/ Tax Rate - 3 Yr. Avg. 32.2%
Payout Ratio 47.9%

MAR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MAR stock intrinsic value calculation we used $17072 million for the last fiscal year's total revenue generated by Marriott International. The default revenue input number comes from 2016 income statement of Marriott International. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MAR stock valuation model: a) initial revenue growth rate of 43.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.2%, whose default value for MAR is calculated based on our internal credit rating of Marriott International, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Marriott International.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MAR stock the variable cost ratio is equal to 90.7%.

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 MAR 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 3.5% for Marriott International.

Corporate tax rate of 27% is the nominal tax rate for Marriott International. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MAR 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 MAR are equal to 41.3%.

Life of production assets of 67.3 years is the average useful life of capital assets used in Marriott International operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MAR is equal to -13.6%. 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 - $5357 million for Marriott International - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 366.831 million for Marriott International is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Marriott International at the current share price and the inputted number of shares is $51.8 billion.

RELATED COMPANIES Price Int.Val. Rating
VAC Marriott Vacat 135.89 76.12  sell
H Hyatt Hotels 78.48 18.09  str.sell
PCLN Priceline Grou 1,926.71 2,324.07  buy
HLT Hilton Worldwi 83.95 175.79  str.buy
CHH Choice Hotels 81.00 11.02  str.sell
WYN Wyndham Worldw 122.73 73.94  sell
IHG InterContinent 66.83 17.87  str.sell
LQ La Quinta Hold 20.18 1.89  str.sell

COMPANY NEWS

▶ American Airlines: 4Q17 Revenue Estimates   [Jan-19-18 10:09AM  Market Realist]
▶ [$$] Marriott Makes China Mad With Geopolitical Faux Pas   [02:19AM  The Wall Street Journal]
▶ What's an easy way to miff China? Ask Marriott.   [Jan-11-18 05:44PM  American City Business Journals]
▶ Alphabets Google Shows Fake News Cant Win   [09:03AM  Market Realist]
▶ Wyndham Worldwide: Cramer's Top Takeaways   [Jan-06-18 07:32AM  TheStreet.com]
▶ Senior Housing Properties Trust sells four properties for $368M   [Jan-02-18 04:50PM  American City Business Journals]
▶ This No. 1-Ranked Leisure Stock May Be Planning A New Breakout   [Dec-29-17 04:05PM  Investor's Business Daily]
▶ CNBC's Annual Playbook: Travel & leisure   [Dec-26-17 02:42PM  CNBC Videos]
▶ Transports Booming: 7 ways to trade it   [Dec-22-17 05:00PM  CNBC Videos]
▶ Hot Hotel Stocks? Look Before You Leap   [03:11PM  GuruFocus.com]
▶ Host Hotels to move headquarters to downtown Bethesda   [Dec-21-17 03:59PM  American City Business Journals]
▶ Marriott, Twitter, Freeport McMoRan, Akamai & Apple   [Dec-18-17 01:18PM  CNBC Videos]
▶ Planning board OKs Marriott's $600M Maryland headquarters   [Dec-16-17 06:12PM  Associated Press]
▶ Celebrate New Year's In Miami With Demi Lovato   [Dec-12-17 04:00PM  Forbes]
▶ Marriott rakes in $659 million with close of Avendra sale   [09:29AM  American City Business Journals]
▶ Aramark Completes Purchase Of Avendra   [Dec-11-17 04:30PM  PR Newswire]
▶ Seven Ways Hotels Will Change in 2018   [06:35AM  Bloomberg]
▶ [$$] AmEx, J.P. Morgan Will Keep Sharing Marriott's Credit Card   [Dec-05-17 12:45PM  The Wall Street Journal]
▶ [$$] The iPhone Gains Share in China   [Dec-02-17 12:01AM  Barrons.com]
▶ The ultimate guide to loyalty programs for chain hotels   [05:00AM  American City Business Journals]
▶ Hotel Metro becoming a Marriott Autograph facility, according to bid   [10:20AM  American City Business Journals]
▶ Five Companies Hit 52-Week Highs   [Nov-21-17 10:36AM  GuruFocus.com]
▶ The Hotel Pair Trade: Hilton vs. Marriott   [Nov-16-17 04:00PM  Benzinga]
▶ Marriott Lincolnshire Resort ready to show off a total 'transformation'   [02:40PM  American City Business Journals]
▶ House prepares for crucial tax bill vote   [08:40AM  Yahoo Finance]
▶ Marriott is developing the hotel room of the future in its HQ basement   [Nov-15-17 12:50PM  American City Business Journals]
Financial statements of MAR
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.