Intrinsic value of Remark Holdings - MARK

Previous Close

$3.28

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$3.28

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of MARK stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.30
  8.87
  8.48
  8.13
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
Revenue, $m
  77
  84
  91
  99
  106
  114
  123
  131
  140
  150
  159
  169
  180
  191
  202
  214
  227
  240
  253
  267
  282
  297
  314
  330
  348
  367
  386
  406
  427
  450
Variable operating expenses, $m
  106
  115
  124
  134
  144
  155
  166
  177
  189
  202
  210
  223
  237
  252
  267
  282
  299
  316
  334
  352
  372
  392
  413
  435
  459
  483
  509
  535
  563
  593
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
  106
  115
  124
  134
  144
  155
  166
  177
  189
  202
  210
  223
  237
  252
  267
  282
  299
  316
  334
  352
  372
  392
  413
  435
  459
  483
  509
  535
  563
  593
Operating income, $m
  -29
  -31
  -33
  -36
  -38
  -41
  -43
  -46
  -49
  -52
  -51
  -54
  -57
  -61
  -64
  -68
  -72
  -76
  -80
  -85
  -90
  -94
  -100
  -105
  -111
  -116
  -123
  -129
  -136
  -143
EBITDA, $m
  -17
  -19
  -20
  -22
  -24
  -26
  -27
  -29
  -31
  -33
  -36
  -38
  -40
  -43
  -45
  -48
  -51
  -53
  -57
  -60
  -63
  -66
  -70
  -74
  -78
  -82
  -86
  -91
  -95
  -100
Interest expense (income), $m
  0
  5
  -5
  -4
  -3
  -1
  0
  1
  2
  4
  5
  6
  8
  9
  11
  13
  14
  16
  18
  20
  22
  24
  27
  29
  32
  34
  37
  40
  43
  46
  49
Earnings before tax, $m
  -34
  -26
  -30
  -33
  -37
  -40
  -44
  -48
  -52
  -57
  -57
  -62
  -67
  -72
  -77
  -82
  -88
  -94
  -101
  -107
  -114
  -121
  -129
  -136
  -145
  -153
  -162
  -172
  -182
  -192
Tax expense, $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
Net income, $m
  -34
  -26
  -30
  -33
  -37
  -40
  -44
  -48
  -52
  -57
  -57
  -62
  -67
  -72
  -77
  -82
  -88
  -94
  -101
  -107
  -114
  -121
  -129
  -136
  -145
  -153
  -162
  -172
  -182
  -192

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
  112
  122
  133
  144
  155
  167
  179
  191
  204
  218
  232
  247
  262
  278
  295
  312
  330
  349
  369
  390
  411
  434
  457
  482
  507
  534
  563
  592
  623
  656
Adjusted assets (=assets-cash), $m
  112
  122
  133
  144
  155
  167
  179
  191
  204
  218
  232
  247
  262
  278
  295
  312
  330
  349
  369
  390
  411
  434
  457
  482
  507
  534
  563
  592
  623
  656
Revenue / Adjusted assets
  0.688
  0.689
  0.684
  0.688
  0.684
  0.683
  0.687
  0.686
  0.686
  0.688
  0.685
  0.684
  0.687
  0.687
  0.685
  0.686
  0.688
  0.688
  0.686
  0.685
  0.686
  0.684
  0.687
  0.685
  0.686
  0.687
  0.686
  0.686
  0.685
  0.686
Average production assets, $m
  45
  49
  53
  58
  62
  67
  72
  77
  82
  88
  93
  99
  105
  112
  118
  125
  133
  140
  148
  156
  165
  174
  183
  193
  204
  214
  226
  238
  250
  263
Working capital, $m
  -44
  -48
  -52
  -56
  -60
  -65
  -69
  -74
  -79
  -85
  -90
  -96
  -102
  -108
  -115
  -121
  -128
  -136
  -143
  -151
  -160
  -168
  -178
  -187
  -197
  -208
  -218
  -230
  -242
  -255
Total debt, $m
  -41
  -32
  -22
  -13
  -3
  8
  19
  30
  42
  54
  67
  80
  94
  108
  123
  139
  155
  172
  190
  209
  228
  248
  269
  292
  315
  339
  364
  391
  419
  448
Total liabilities, $m
  101
  110
  120
  129
  139
  150
  161
  172
  184
  196
  209
  222
  236
  250
  265
  281
  297
  314
  332
  351
  370
  390
  411
  434
  457
  481
  506
  533
  561
  590
Total equity, $m
  11
  12
  13
  14
  15
  17
  18
  19
  20
  22
  23
  25
  26
  28
  29
  31
  33
  35
  37
  39
  41
  43
  46
  48
  51
  53
  56
  59
  62
  66
Total liabilities and equity, $m
  112
  122
  133
  143
  154
  167
  179
  191
  204
  218
  232
  247
  262
  278
  294
  312
  330
  349
  369
  390
  411
  433
  457
  482
  508
  534
  562
  592
  623
  656
Debt-to-equity ratio
  -3.630
  -2.600
  -1.690
  -0.890
  -0.170
  0.470
  1.050
  1.580
  2.050
  2.490
  2.880
  3.250
  3.590
  3.900
  4.180
  4.450
  4.700
  4.930
  5.150
  5.350
  5.550
  5.720
  5.890
  6.050
  6.200
  6.340
  6.480
  6.600
  6.720
  6.830
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -34
  -26
  -30
  -33
  -37
  -40
  -44
  -48
  -52
  -57
  -57
  -62
  -67
  -72
  -77
  -82
  -88
  -94
  -101
  -107
  -114
  -121
  -129
  -136
  -145
  -153
  -162
  -172
  -182
  -192
Depreciation, amort., depletion, $m
  12
  12
  13
  14
  14
  15
  16
  17
  18
  19
  15
  16
  17
  18
  19
  20
  21
  23
  24
  25
  27
  28
  30
  31
  33
  35
  36
  38
  40
  42
Funds from operations, $m
  -22
  -14
  -17
  -19
  -22
  -25
  -28
  -32
  -35
  -38
  -42
  -46
  -50
  -54
  -58
  -62
  -67
  -72
  -77
  -82
  -87
  -93
  -99
  -105
  -112
  -119
  -126
  -133
  -141
  -149
Change in working capital, $m
  -4
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -10
  -10
  -10
  -11
  -11
  -12
  -13
Cash from operations, $m
  -18
  -10
  -13
  -15
  -18
  -21
  -24
  -27
  -30
  -33
  -36
  -40
  -44
  -47
  -51
  -56
  -60
  -64
  -69
  -74
  -79
  -84
  -90
  -96
  -102
  -108
  -115
  -122
  -129
  -137
Maintenance CAPEX, $m
  -7
  -7
  -8
  -9
  -9
  -10
  -11
  -12
  -12
  -13
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -23
  -24
  -25
  -27
  -28
  -30
  -31
  -33
  -35
  -36
  -38
  -40
New CAPEX, $m
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
Cash from investing activities, $m
  -11
  -11
  -12
  -13
  -14
  -15
  -16
  -17
  -17
  -18
  -20
  -21
  -22
  -23
  -25
  -26
  -27
  -29
  -31
  -32
  -34
  -36
  -37
  -40
  -41
  -44
  -46
  -48
  -50
  -53
Free cash flow, $m
  -29
  -21
  -25
  -28
  -32
  -35
  -39
  -43
  -47
  -52
  -56
  -61
  -66
  -71
  -76
  -82
  -87
  -93
  -100
  -106
  -113
  -120
  -127
  -135
  -143
  -152
  -161
  -170
  -180
  -190
Issuance/(repayment) of debt, $m
  -82
  9
  9
  10
  10
  11
  11
  11
  12
  12
  13
  13
  14
  14
  15
  16
  16
  17
  18
  19
  19
  20
  21
  22
  23
  24
  25
  27
  28
  29
Issuance/(repurchase) of shares, $m
  125
  27
  31
  34
  38
  42
  45
  50
  54
  58
  58
  63
  68
  73
  79
  84
  90
  96
  103
  109
  116
  123
  131
  139
  147
  156
  165
  175
  185
  195
Cash from financing (excl. dividends), $m  
  43
  36
  40
  44
  48
  53
  56
  61
  66
  70
  71
  76
  82
  87
  94
  100
  106
  113
  121
  128
  135
  143
  152
  161
  170
  180
  190
  202
  213
  224
Total cash flow (excl. dividends), $m
  14
  15
  15
  16
  16
  17
  17
  18
  18
  19
  15
  16
  16
  17
  18
  18
  19
  20
  21
  22
  23
  24
  25
  26
  27
  28
  30
  31
  33
  34
Retained Cash Flow (-), $m
  -125
  -27
  -31
  -34
  -38
  -42
  -45
  -50
  -54
  -58
  -58
  -63
  -68
  -73
  -79
  -84
  -90
  -96
  -103
  -109
  -116
  -123
  -131
  -139
  -147
  -156
  -165
  -175
  -185
  -195
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -111
  -12
  -15
  -18
  -22
  -25
  -28
  -32
  -36
  -39
  -43
  -48
  -52
  -56
  -61
  -66
  -71
  -76
  -82
  -88
  -94
  -100
  -106
  -113
  -120
  -128
  -135
  -144
  -152
  -161
Discount rate, %
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
  -105
  -11
  -13
  -14
  -16
  -16
  -17
  -17
  -17
  -17
  -17
  -16
  -15
  -14
  -13
  -11
  -10
  -9
  -7
  -6
  -5
  -4
  -3
  -3
  -2
  -1
  -1
  -1
  0
  0
Current shareholders' claim on cash, %
  50.0
  14.6
  4.2
  1.2
  0.3
  0.1
  0.0
  0.0
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Remark Media, Inc. owns, operates, and acquires digital media properties across multiple verticals that deliver content worldwide. The company leverages its digital media assets to target the Millennial demographic, which provides it with access to markets. It operates KanKan, a social media application and data intelligence platform, which aggregates content and consumer-shopping data across social media platforms; Vegas.com that offers users the ability to book lodging, air travel, show tickets, and tours; and Roomlia mobile hotel-booking application that allows users to reserve lodging at participating hotels. The company also operates Banks.com Website, which provides content for young adults that shares stories of financial success and failure; US Tax Center at irs.com that provides users with access to U.S. tax-related information and services; and Filelater.com and Taxextension.com Websites that assist taxpayers with filing business and personal tax extensions with the IRS. In addition, it operates Bikini.com, an online beach lifestyle destination for young women; and SlapTV, which provides a mix of horror and comedy in the form of short films, Web sketches, and man-on-the-street pieces. The company was formerly known as HSW International, Inc. and changed its name to Remark Media, Inc. in January 2012. Remark Media, Inc. was founded in 2006 and is headquartered in Las Vegas, Nevada.

FINANCIAL RATIOS  of  Remark Holdings (MARK)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

MARK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MARK stock intrinsic value calculation we used $70.601 million for the last fiscal year's total revenue generated by Remark Holdings. The default revenue input number comes from 0001 income statement of Remark Holdings. 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 MARK stock valuation model: a) initial revenue growth rate of 9.3% 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 5.6%, whose default value for MARK is calculated based on our internal credit rating of Remark Holdings, 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 Remark Holdings.
    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 MARK stock the variable cost ratio is equal to 138%.

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 MARK stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 11.7% for Remark Holdings.

Corporate tax rate of 27% is the nominal tax rate for Remark Holdings. 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 MARK 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 MARK are equal to 58.5%.

Life of production assets of 6.2 years is the average useful life of capital assets used in Remark Holdings 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 MARK is equal to -56.6%. 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 - $-79.588 million for Remark Holdings - 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 32.843 million for Remark Holdings 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 Remark Holdings at the current share price and the inputted number of shares is $0.1 billion.

COMPANY NEWS

▶ Remark Media: 3Q Earnings Snapshot   [04:49PM  Associated Press]
▶ Markets expected to rebound after major sell-off   [Oct-25-18 08:31AM  Yahoo Finance]
▶ Remark Media: 2Q Earnings Snapshot   [Aug-14-18 05:00PM  Associated Press]
▶ Remark Holdings Set to Join the Russell 3000 Index   [Jun-13-18 08:15AM  PR Newswire]
▶ Remark Media: 1Q Earnings Snapshot   [May-14-18 08:21AM  Associated Press]
▶ Remark Holdings Amends Financing Agreement   [May-01-18 08:30AM  PR Newswire]
▶ Should You Get Rid of Remark Media (MARK) Now?   [Apr-13-18 08:54AM  Zacks]
▶ Remark Media reports 4Q loss   [Mar-29-18 08:30AM  Associated Press]
▶ Why Remark Holdings, Inc. Stock Popped Today   [Jan-31-18 07:41PM  Motley Fool]
▶ Why Did Remark Holdings, Inc. Stock Fall Tuesday?   [Jan-30-18 04:50PM  Motley Fool]
▶ This Is a Narrower Environment for Stock Picking   [Jan-18-18 10:57AM  TheStreet.com]
▶ Friends in High Places: Remark's Secret to Success   [Dec-28-17 11:54AM  Barrons.com]
▶ Why Shares of Remark Holdings Jumped Today   [Dec-19-17 12:59PM  Motley Fool]
▶ Why Remark Holdings, Inc. Stock Jumped Monday   [Dec-18-17 01:01PM  Motley Fool]
▶ Is Remark Holdings Incs (NASDAQ:MARK) CEO Pay Fair?   [Dec-14-17 06:45AM  Simply Wall St.]
▶ Remark Holdings Enters into Amended Financing Agreement   [Dec-07-17 07:30AM  PR Newswire]
▶ Remark Media reports 3Q loss   [Nov-13-17 05:40PM  Associated Press]
▶ Remark to Partner with Acxiom in China   [07:57AM  PR Newswire]

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