Intrinsic value of MB Financial - MBFI

Previous Close

$46.59

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$46.59

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

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

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
Revenue, $m
  1,029
  1,112
  1,200
  1,290
  1,384
  1,482
  1,584
  1,689
  1,799
  1,914
  2,033
  2,157
  2,286
  2,421
  2,561
  2,708
  2,860
  3,020
  3,187
  3,361
  3,544
  3,735
  3,934
  4,143
  4,362
  4,591
  4,831
  5,082
  5,346
  5,622
Variable operating expenses, $m
  539
  583
  629
  676
  725
  777
  830
  885
  943
  1,003
  1,065
  1,130
  1,198
  1,268
  1,342
  1,419
  1,499
  1,583
  1,670
  1,761
  1,857
  1,957
  2,062
  2,171
  2,286
  2,406
  2,531
  2,663
  2,801
  2,946
Fixed operating expenses, $m
  170
  173
  177
  181
  185
  189
  193
  198
  202
  206
  211
  216
  220
  225
  230
  235
  240
  246
  251
  257
  262
  268
  274
  280
  286
  292
  299
  305
  312
  319
Total operating expenses, $m
  709
  756
  806
  857
  910
  966
  1,023
  1,083
  1,145
  1,209
  1,276
  1,346
  1,418
  1,493
  1,572
  1,654
  1,739
  1,829
  1,921
  2,018
  2,119
  2,225
  2,336
  2,451
  2,572
  2,698
  2,830
  2,968
  3,113
  3,265
Operating income, $m
  320
  356
  394
  433
  474
  516
  561
  607
  655
  705
  757
  811
  868
  927
  989
  1,054
  1,121
  1,192
  1,266
  1,344
  1,425
  1,510
  1,599
  1,692
  1,790
  1,893
  2,001
  2,114
  2,232
  2,357
EBITDA, $m
  2,458
  2,668
  2,887
  3,114
  3,351
  3,596
  3,852
  4,118
  4,394
  4,682
  4,981
  5,293
  5,619
  5,958
  6,311
  6,680
  7,066
  7,468
  7,889
  8,329
  8,789
  9,271
  9,775
  10,302
  10,855
  11,434
  12,040
  12,676
  13,342
  14,040
Interest expense (income), $m
  39
  942
  928
  993
  1,060
  1,130
  1,202
  1,278
  1,356
  1,438
  1,523
  1,611
  1,703
  1,798
  1,898
  2,002
  2,110
  2,223
  2,341
  2,464
  2,593
  2,728
  2,868
  3,016
  3,170
  3,331
  3,499
  3,676
  3,861
  4,055
  4,258
Earnings before tax, $m
  -622
  -572
  -599
  -627
  -656
  -686
  -717
  -750
  -783
  -818
  -854
  -892
  -931
  -971
  -1,013
  -1,057
  -1,102
  -1,149
  -1,198
  -1,250
  -1,303
  -1,359
  -1,417
  -1,477
  -1,540
  -1,606
  -1,675
  -1,747
  -1,823
  -1,901
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
  -622
  -572
  -599
  -627
  -656
  -686
  -717
  -750
  -783
  -818
  -854
  -892
  -931
  -971
  -1,013
  -1,057
  -1,102
  -1,149
  -1,198
  -1,250
  -1,303
  -1,359
  -1,417
  -1,477
  -1,540
  -1,606
  -1,675
  -1,747
  -1,823
  -1,901

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
  16,327
  17,657
  19,041
  20,479
  21,973
  23,526
  25,139
  26,817
  28,562
  30,378
  32,267
  34,235
  36,285
  38,422
  40,651
  42,976
  45,404
  47,939
  50,588
  53,356
  56,251
  59,279
  62,448
  65,764
  69,235
  72,871
  76,680
  80,670
  84,851
  89,233
Adjusted assets (=assets-cash), $m
  16,327
  17,657
  19,041
  20,479
  21,973
  23,526
  25,139
  26,817
  28,562
  30,378
  32,267
  34,235
  36,285
  38,422
  40,651
  42,976
  45,404
  47,939
  50,588
  53,356
  56,251
  59,279
  62,448
  65,764
  69,235
  72,871
  76,680
  80,670
  84,851
  89,233
Revenue / Adjusted assets
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
  0.063
Average production assets, $m
  21,376
  23,118
  24,929
  26,812
  28,768
  30,801
  32,914
  35,111
  37,395
  39,772
  42,246
  44,823
  47,507
  50,305
  53,223
  56,267
  59,446
  62,765
  66,233
  69,858
  73,648
  77,612
  81,760
  86,102
  90,648
  95,408
  100,394
  105,618
  111,092
  116,830
Working capital, $m
  -17,087
  -18,479
  -19,927
  -21,432
  -22,996
  -24,621
  -26,310
  -28,066
  -29,892
  -31,792
  -33,769
  -35,829
  -37,974
  -40,211
  -42,543
  -44,977
  -47,518
  -50,171
  -52,943
  -55,841
  -58,870
  -62,039
  -65,355
  -68,825
  -72,459
  -76,264
  -80,249
  -84,425
  -88,801
  -93,388
Total debt, $m
  17,187
  18,384
  19,629
  20,923
  22,268
  23,666
  25,118
  26,628
  28,199
  29,832
  31,533
  33,304
  35,149
  37,073
  39,078
  41,171
  43,356
  45,638
  48,022
  50,514
  53,119
  55,844
  58,696
  61,680
  64,805
  68,077
  71,504
  75,095
  78,858
  82,803
Total liabilities, $m
  14,694
  15,892
  17,137
  18,431
  19,776
  21,173
  22,625
  24,135
  25,706
  27,340
  29,040
  30,811
  32,657
  34,580
  36,586
  38,679
  40,863
  43,145
  45,529
  48,021
  50,626
  53,351
  56,203
  59,187
  62,312
  65,584
  69,012
  72,603
  76,366
  80,310
Total equity, $m
  1,633
  1,766
  1,904
  2,048
  2,197
  2,353
  2,514
  2,682
  2,856
  3,038
  3,227
  3,423
  3,629
  3,842
  4,065
  4,298
  4,540
  4,794
  5,059
  5,336
  5,625
  5,928
  6,245
  6,576
  6,924
  7,287
  7,668
  8,067
  8,485
  8,923
Total liabilities and equity, $m
  16,327
  17,658
  19,041
  20,479
  21,973
  23,526
  25,139
  26,817
  28,562
  30,378
  32,267
  34,234
  36,286
  38,422
  40,651
  42,977
  45,403
  47,939
  50,588
  53,357
  56,251
  59,279
  62,448
  65,763
  69,236
  72,871
  76,680
  80,670
  84,851
  89,233
Debt-to-equity ratio
  10.530
  10.410
  10.310
  10.220
  10.130
  10.060
  9.990
  9.930
  9.870
  9.820
  9.770
  9.730
  9.690
  9.650
  9.610
  9.580
  9.550
  9.520
  9.490
  9.470
  9.440
  9.420
  9.400
  9.380
  9.360
  9.340
  9.330
  9.310
  9.290
  9.280
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
  -622
  -572
  -599
  -627
  -656
  -686
  -717
  -750
  -783
  -818
  -854
  -892
  -931
  -971
  -1,013
  -1,057
  -1,102
  -1,149
  -1,198
  -1,250
  -1,303
  -1,359
  -1,417
  -1,477
  -1,540
  -1,606
  -1,675
  -1,747
  -1,823
  -1,901
Depreciation, amort., depletion, $m
  2,138
  2,312
  2,493
  2,681
  2,877
  3,080
  3,291
  3,511
  3,740
  3,977
  4,225
  4,482
  4,751
  5,030
  5,322
  5,627
  5,945
  6,277
  6,623
  6,986
  7,365
  7,761
  8,176
  8,610
  9,065
  9,541
  10,039
  10,562
  11,109
  11,683
Funds from operations, $m
  1,515
  1,740
  1,894
  2,054
  2,221
  2,394
  2,574
  2,761
  2,956
  3,159
  3,370
  3,591
  3,820
  4,059
  4,309
  4,570
  4,843
  5,127
  5,425
  5,736
  6,062
  6,403
  6,759
  7,133
  7,524
  7,934
  8,364
  8,814
  9,287
  9,782
Change in working capital, $m
  -1,339
  -1,393
  -1,448
  -1,505
  -1,564
  -1,625
  -1,689
  -1,756
  -1,826
  -1,900
  -1,978
  -2,059
  -2,146
  -2,237
  -2,333
  -2,434
  -2,541
  -2,653
  -2,772
  -2,897
  -3,030
  -3,169
  -3,316
  -3,470
  -3,633
  -3,805
  -3,986
  -4,176
  -4,376
  -4,586
Cash from operations, $m
  2,854
  3,132
  3,342
  3,559
  3,785
  4,019
  4,263
  4,517
  4,782
  5,059
  5,348
  5,650
  5,966
  6,296
  6,642
  7,004
  7,383
  7,781
  8,197
  8,634
  9,091
  9,572
  10,075
  10,603
  11,158
  11,739
  12,350
  12,990
  13,662
  14,368
Maintenance CAPEX, $m
  -1,969
  -2,138
  -2,312
  -2,493
  -2,681
  -2,877
  -3,080
  -3,291
  -3,511
  -3,740
  -3,977
  -4,225
  -4,482
  -4,751
  -5,030
  -5,322
  -5,627
  -5,945
  -6,277
  -6,623
  -6,986
  -7,365
  -7,761
  -8,176
  -8,610
  -9,065
  -9,541
  -10,039
  -10,562
  -11,109
New CAPEX, $m
  -1,681
  -1,742
  -1,811
  -1,883
  -1,956
  -2,033
  -2,113
  -2,197
  -2,285
  -2,377
  -2,474
  -2,576
  -2,684
  -2,798
  -2,918
  -3,045
  -3,178
  -3,319
  -3,468
  -3,625
  -3,790
  -3,964
  -4,148
  -4,342
  -4,545
  -4,760
  -4,986
  -5,224
  -5,474
  -5,738
Cash from investing activities, $m
  -3,650
  -3,880
  -4,123
  -4,376
  -4,637
  -4,910
  -5,193
  -5,488
  -5,796
  -6,117
  -6,451
  -6,801
  -7,166
  -7,549
  -7,948
  -8,367
  -8,805
  -9,264
  -9,745
  -10,248
  -10,776
  -11,329
  -11,909
  -12,518
  -13,155
  -13,825
  -14,527
  -15,263
  -16,036
  -16,847
Free cash flow, $m
  -797
  -747
  -781
  -816
  -853
  -891
  -930
  -971
  -1,013
  -1,057
  -1,103
  -1,151
  -1,201
  -1,253
  -1,307
  -1,363
  -1,422
  -1,483
  -1,547
  -1,614
  -1,685
  -1,758
  -1,834
  -1,914
  -1,998
  -2,086
  -2,177
  -2,273
  -2,374
  -2,479
Issuance/(repayment) of debt, $m
  -264
  1,198
  1,245
  1,294
  1,345
  1,397
  1,452
  1,510
  1,570
  1,634
  1,701
  1,771
  1,845
  1,923
  2,006
  2,093
  2,185
  2,282
  2,384
  2,492
  2,605
  2,725
  2,851
  2,984
  3,125
  3,272
  3,428
  3,591
  3,763
  3,944
Issuance/(repurchase) of shares, $m
  2,255
  705
  737
  771
  805
  841
  879
  918
  958
  1,000
  1,043
  1,088
  1,136
  1,185
  1,236
  1,289
  1,345
  1,403
  1,463
  1,527
  1,593
  1,661
  1,734
  1,809
  1,888
  1,970
  2,056
  2,146
  2,241
  2,340
Cash from financing (excl. dividends), $m  
  1,991
  1,903
  1,982
  2,065
  2,150
  2,238
  2,331
  2,428
  2,528
  2,634
  2,744
  2,859
  2,981
  3,108
  3,242
  3,382
  3,530
  3,685
  3,847
  4,019
  4,198
  4,386
  4,585
  4,793
  5,013
  5,242
  5,484
  5,737
  6,004
  6,284
Total cash flow (excl. dividends), $m
  1,194
  1,155
  1,201
  1,248
  1,297
  1,348
  1,401
  1,457
  1,515
  1,576
  1,641
  1,708
  1,780
  1,855
  1,935
  2,019
  2,108
  2,201
  2,300
  2,404
  2,513
  2,629
  2,751
  2,879
  3,014
  3,157
  3,306
  3,464
  3,630
  3,805
Retained Cash Flow (-), $m
  -2,255
  -705
  -737
  -771
  -805
  -841
  -879
  -918
  -958
  -1,000
  -1,043
  -1,088
  -1,136
  -1,185
  -1,236
  -1,289
  -1,345
  -1,403
  -1,463
  -1,527
  -1,593
  -1,661
  -1,734
  -1,809
  -1,888
  -1,970
  -2,056
  -2,146
  -2,241
  -2,340
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
  17
  19
  20
  22
  23
  25
  27
  29
  30
  32
  34
  37
  39
  41
  44
  46
  49
  51
  54
  57
  61
  64
  67
  71
  75
  79
  83
  87
  91
  96
Cash available for distribution, $m
  -1,061
  450
  464
  478
  492
  507
  522
  539
  557
  576
  597
  620
  644
  671
  699
  730
  763
  798
  836
  877
  921
  967
  1,017
  1,070
  1,127
  1,187
  1,250
  1,318
  1,389
  1,465
Discount rate, %
  15.10
  15.86
  16.65
  17.48
  18.35
  19.27
  20.24
  21.25
  22.31
  23.43
  24.60
  25.83
  27.12
  28.47
  29.90
  31.39
  32.96
  34.61
  36.34
  38.16
  40.06
  42.07
  44.17
  46.38
  48.70
  51.13
  53.69
  56.38
  59.19
  62.15
PV of cash for distribution, $m
  -922
  335
  292
  251
  212
  176
  144
  115
  91
  70
  53
  39
  28
  20
  14
  9
  6
  4
  2
  1
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  34.9
  24.6
  17.5
  12.6
  9.1
  6.6
  4.9
  3.6
  2.6
  2.0
  1.5
  1.1
  0.8
  0.6
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

MB Financial, Inc. (MB Financial) is a financial holding company. The Company's segments include banking, leasing and mortgage banking. As of December 31, 2016, the Company's primary market was the Chicago metropolitan area, in which the Company operated 95 banking offices through its bank subsidiary, MB Financial Bank, N.A. (MB Financial Bank). Through MB Financial Bank, the Company offers a range of financial services to small and middle market businesses, and individuals in the markets that the Company serves. MB Financial Bank's subsidiaries include LaSalle Systems Leasing, Inc. (LaSalle), Celtic Leasing Corp. (Celtic) and MB Equipment Finance, LLC, (MB Equipment Finance). MB Financial Bank also has a majority owned subsidiary with operating activities, Cedar Hill Associates, LLC (Cedar Hill). The Company operates four primary lines of business within its banking segment: commercial banking, lease banking, retail banking and wealth management.

FINANCIAL RATIOS  of  MB Financial (MBFI)

Valuation Ratios
P/E Ratio 22.4
Price to Sales 0
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 15.5
Price to Free Cash Flow 65
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 73%
Cap. Spend. - 3 Yr. Gr. Rate 24.2%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 31.7%
Total Debt to Equity 31.7%
Interest Coverage 7
Management Effectiveness
Return On Assets 1.2%
Ret/ On Assets - 3 Yr. Avg. 1.1%
Return On Total Capital 5.5%
Ret/ On T. Cap. - 3 Yr. Avg. 5.1%
Return On Equity 7.5%
Return On Equity - 3 Yr. Avg. 6.8%
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 31.2%
Eff/ Tax Rate - 3 Yr. Avg. 30.9%
Payout Ratio 37.9%

MBFI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MBFI stock intrinsic value calculation we used $948 million for the last fiscal year's total revenue generated by MB Financial. The default revenue input number comes from 2017 income statement of MB Financial. 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 MBFI stock valuation model: a) initial revenue growth rate of 8.5% 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 15.1%, whose default value for MBFI is calculated based on our internal credit rating of MB Financial, 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 MB Financial.
    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 MBFI stock the variable cost ratio is equal to 52.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $166 million in the base year in the intrinsic value calculation for MBFI 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 MB Financial.

Corporate tax rate of 27% is the nominal tax rate for MB Financial. 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 MBFI stock is equal to 1.8%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MBFI are equal to 2078.2%.

Life of production assets of 10 years is the average useful life of capital assets used in MB Financial 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 MBFI is equal to -1661.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $0 million for MB Financial - 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 84 million for MB Financial 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 MB Financial at the current share price and the inputted number of shares is $3.9 billion.

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COMPANY NEWS

▶ MB Financial: 2Q Earnings Snapshot   [Jul-19-18 06:25AM  Associated Press]
▶ Other banks could follow HomeStreet's mortgage retreat   [Jun-21-18 04:38PM  American City Business Journals]
▶ [$$] Expect More Bank Mergers After Dodd-Frank Rollback   [May-26-18 12:01AM  Barrons.com]
▶ MB Financial, Inc. Approves Dividend on its Common Stock   [May-25-18 06:10PM  GlobeNewswire]
▶ Company News For May 23, 2018   [10:01AM  Zacks]
▶ WeissLaw LLP Investigates MB Financial, Inc. Acquisition   [May-22-18 05:30PM  PR Newswire]
▶ More Bank Mergers Are on the WayFinally   [11:20AM  Barrons.com]
▶ Company News For May 22, 2018   [09:54AM  Zacks]
▶ [$$] Fifth Third Agrees to Buy MB Financial   [12:26AM  The Wall Street Journal]
▶ [$$] Fifth Third Signals Resurgence of Banker Confidence   [12:26AM  The Wall Street Journal]
▶ [$$] Fifth Third Acquires MB Financial   [May-21-18 06:18PM  The Wall Street Journal]
▶ Fifth Third stock falls as analysts critique Chicago acquisition   [01:17PM  American City Business Journals]
▶ [$$] Fifth Third Signals Resurgence of Banker Confidence   [12:10PM  The Wall Street Journal]
▶ Why MB Financial Stock Is Soaring Today   [12:08PM  Motley Fool]
▶ Fifth Third buying Chicago bank for $4.7 billion   [09:48AM  American City Business Journals]
▶ Shift in mortgage strategy will bring layoffs at bank branches in OP   [May-01-18 12:20PM  American City Business Journals]
▶ MB Financial, Inc. to Host Earnings Call   [Apr-24-18 06:45AM  ACCESSWIRE]
▶ Should You Buy MB Financial Inc (NASDAQ:MBFI) Now?   [Mar-30-18 11:59AM  Simply Wall St.]
▶ MB Financial, Inc. Announces Increase in Quarterly Dividend   [Mar-02-18 06:49PM  GlobeNewswire]
▶ MB Financial misses Street 4Q forecasts   [08:10AM  Associated Press]
▶ MB Financial, Inc. to Redeem Series A Preferred Stock   [Jan-10-18 05:00PM  GlobeNewswire]
▶ MB Reinvests in its Communities and Employees   [Dec-28-17 05:13PM  GlobeNewswire]
▶ MB Financial, Inc. Approves Dividend on its Common Stock   [Nov-29-17 08:27PM  GlobeNewswire]
▶ Should You Buy MB Financial Inc (MBFI)?   [Nov-06-17 04:32PM  Simply Wall St.]
▶ MB Financial beats 3Q profit forecasts   [07:02AM  Associated Press]
▶ What You Must Know About MB Financial Incs (MBFI) 7.93% ROE   [Oct-15-17 06:37PM  Simply Wall St.]
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