Intrinsic value of MetLife - MET

Previous Close

$53.85

  Intrinsic Value

$123.10

stock screener

  Rating & Target

str. buy

+129%

Previous close

$53.85

 
Intrinsic value

$123.10

 
Up/down potential

+129%

 
Rating

str. buy

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

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

We calculate the intrinsic value of MET 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, %
  -9.19
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  0
  64,877
  66,369
  68,075
  69,990
  72,112
  74,440
  76,975
  79,719
  82,676
  85,849
  89,243
  92,865
  96,722
  100,820
  105,169
  109,778
  114,657
  119,816
  125,267
  131,023
  137,096
  143,501
  150,252
  157,365
  164,857
  172,745
  181,047
  189,783
  198,975
  208,642
Variable operating expenses, $m
 
  56,814
  58,099
  59,569
  61,219
  63,047
  65,052
  67,236
  69,601
  72,148
  74,881
  76,883
  80,004
  83,326
  86,857
  90,604
  94,574
  98,777
  103,222
  107,918
  112,877
  118,109
  123,627
  129,443
  135,571
  142,025
  148,820
  155,973
  163,499
  171,418
  179,746
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
  62,599
  56,814
  58,099
  59,569
  61,219
  63,047
  65,052
  67,236
  69,601
  72,148
  74,881
  76,883
  80,004
  83,326
  86,857
  90,604
  94,574
  98,777
  103,222
  107,918
  112,877
  118,109
  123,627
  129,443
  135,571
  142,025
  148,820
  155,973
  163,499
  171,418
  179,746
Operating income, $m
  1,006
  8,063
  8,270
  8,506
  8,771
  9,065
  9,388
  9,739
  10,119
  10,528
  10,968
  12,360
  12,861
  13,396
  13,963
  14,565
  15,204
  15,879
  16,594
  17,349
  18,146
  18,987
  19,874
  20,809
  21,794
  22,832
  23,924
  25,074
  26,284
  27,557
  28,896
EBITDA, $m
  1,658
  9,039
  9,247
  9,485
  9,752
  10,047
  10,372
  10,725
  11,107
  11,519
  11,961
  12,434
  12,939
  13,476
  14,047
  14,653
  15,295
  15,975
  16,694
  17,453
  18,255
  19,101
  19,994
  20,934
  21,926
  22,969
  24,068
  25,225
  26,442
  27,723
  29,070
Interest expense (income), $m
  1,202
  1,151
  625
  1,722
  2,977
  4,384
  5,944
  7,656
  9,520
  11,538
  13,711
  16,044
  18,540
  21,203
  24,038
  27,051
  30,249
  33,637
  37,224
  41,017
  45,025
  49,256
  53,722
  58,430
  63,394
  68,624
  74,132
  79,931
  86,035
  92,458
  99,215
Earnings before tax, $m
  -195
  6,912
  7,644
  6,784
  5,795
  4,681
  3,443
  2,083
  599
  -1,009
  -2,744
  -3,684
  -5,678
  -7,807
  -10,075
  -12,486
  -15,045
  -17,758
  -20,630
  -23,668
  -26,879
  -30,269
  -33,847
  -37,621
  -41,600
  -45,792
  -50,207
  -54,857
  -59,751
  -64,901
  -70,319
Tax expense, $m
  -999
  1,866
  2,064
  1,832
  1,565
  1,264
  930
  562
  162
  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
  800
  5,046
  5,580
  4,952
  4,230
  3,417
  2,514
  1,520
  437
  -1,009
  -2,744
  -3,684
  -5,678
  -7,807
  -10,075
  -12,486
  -15,045
  -17,758
  -20,630
  -23,668
  -26,879
  -30,269
  -33,847
  -37,621
  -41,600
  -45,792
  -50,207
  -54,857
  -59,751
  -64,901
  -70,319

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
  0
Total assets, $m
  898,764
  913,762
  934,778
  958,802
  985,773
  1,015,659
  1,048,450
  1,084,157
  1,122,808
  1,164,449
  1,209,137
  1,256,946
  1,307,960
  1,362,276
  1,420,001
  1,481,256
  1,546,169
  1,614,883
  1,687,547
  1,764,326
  1,845,392
  1,930,931
  2,021,139
  2,116,225
  2,216,410
  2,321,926
  2,433,022
  2,549,957
  2,673,006
  2,802,460
  2,938,623
Adjusted assets (=assets-cash), $m
  898,764
  913,762
  934,778
  958,802
  985,773
  1,015,659
  1,048,450
  1,084,157
  1,122,808
  1,164,449
  1,209,137
  1,256,946
  1,307,960
  1,362,276
  1,420,001
  1,481,256
  1,546,169
  1,614,883
  1,687,547
  1,764,326
  1,845,392
  1,930,931
  2,021,139
  2,116,225
  2,216,410
  2,321,926
  2,433,022
  2,549,957
  2,673,006
  2,802,460
  2,938,623
Revenue / Adjusted assets
  0.000
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
  0.071
Average production assets, $m
  800
  843
  863
  885
  910
  937
  968
  1,001
  1,036
  1,075
  1,116
  1,160
  1,207
  1,257
  1,311
  1,367
  1,427
  1,491
  1,558
  1,628
  1,703
  1,782
  1,866
  1,953
  2,046
  2,143
  2,246
  2,354
  2,467
  2,587
  2,712
Working capital, $m
  0
  260
  265
  272
  280
  288
  298
  308
  319
  331
  343
  357
  371
  387
  403
  421
  439
  459
  479
  501
  524
  548
  574
  601
  629
  659
  691
  724
  759
  796
  835
Total debt, $m
  19,852
  10,783
  29,698
  51,319
  75,593
  102,490
  132,002
  164,138
  198,924
  236,401
  276,620
  319,648
  365,561
  414,445
  466,398
  521,527
  579,949
  641,791
  707,190
  776,290
  849,250
  926,235
  1,007,422
  1,093,000
  1,183,166
  1,278,131
  1,378,117
  1,483,358
  1,594,103
  1,710,611
  1,833,158
Total liabilities, $m
  831,455
  822,386
  841,301
  862,922
  887,196
  914,093
  943,605
  975,741
  1,010,527
  1,048,004
  1,088,223
  1,131,251
  1,177,164
  1,226,048
  1,278,001
  1,333,130
  1,391,552
  1,453,394
  1,518,793
  1,587,893
  1,660,853
  1,737,838
  1,819,025
  1,904,603
  1,994,769
  2,089,734
  2,189,720
  2,294,961
  2,405,706
  2,522,214
  2,644,761
Total equity, $m
  67,309
  91,376
  93,478
  95,880
  98,577
  101,566
  104,845
  108,416
  112,281
  116,445
  120,914
  125,695
  130,796
  136,228
  142,000
  148,126
  154,617
  161,488
  168,755
  176,433
  184,539
  193,093
  202,114
  211,623
  221,641
  232,193
  243,302
  254,996
  267,301
  280,246
  293,862
Total liabilities and equity, $m
  898,764
  913,762
  934,779
  958,802
  985,773
  1,015,659
  1,048,450
  1,084,157
  1,122,808
  1,164,449
  1,209,137
  1,256,946
  1,307,960
  1,362,276
  1,420,001
  1,481,256
  1,546,169
  1,614,882
  1,687,548
  1,764,326
  1,845,392
  1,930,931
  2,021,139
  2,116,226
  2,216,410
  2,321,927
  2,433,022
  2,549,957
  2,673,007
  2,802,460
  2,938,623
Debt-to-equity ratio
  0.295
  0.120
  0.320
  0.540
  0.770
  1.010
  1.260
  1.510
  1.770
  2.030
  2.290
  2.540
  2.790
  3.040
  3.280
  3.520
  3.750
  3.970
  4.190
  4.400
  4.600
  4.800
  4.980
  5.160
  5.340
  5.500
  5.660
  5.820
  5.960
  6.100
  6.240
Adjusted equity ratio
  0.075
  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
  800
  5,046
  5,580
  4,952
  4,230
  3,417
  2,514
  1,520
  437
  -1,009
  -2,744
  -3,684
  -5,678
  -7,807
  -10,075
  -12,486
  -15,045
  -17,758
  -20,630
  -23,668
  -26,879
  -30,269
  -33,847
  -37,621
  -41,600
  -45,792
  -50,207
  -54,857
  -59,751
  -64,901
  -70,319
Depreciation, amort., depletion, $m
  652
  976
  977
  979
  980
  982
  984
  986
  988
  991
  994
  74
  77
  81
  84
  88
  91
  96
  100
  104
  109
  114
  120
  125
  131
  137
  144
  151
  158
  166
  174
Funds from operations, $m
  31,497
  6,022
  6,558
  5,931
  5,211
  4,399
  3,498
  2,506
  1,426
  -18
  -1,750
  -3,610
  -5,601
  -7,726
  -9,991
  -12,398
  -14,953
  -17,662
  -20,530
  -23,564
  -26,770
  -30,155
  -33,728
  -37,496
  -41,468
  -45,654
  -50,063
  -54,706
  -59,592
  -64,735
  -70,146
Change in working capital, $m
  16,670
  5
  6
  7
  8
  8
  9
  10
  11
  12
  13
  14
  14
  15
  16
  17
  18
  20
  21
  22
  23
  24
  26
  27
  28
  30
  32
  33
  35
  37
  39
Cash from operations, $m
  14,827
  6,017
  6,552
  5,924
  5,203
  4,391
  3,488
  2,496
  1,415
  -30
  -1,763
  -3,623
  -5,615
  -7,742
  -10,007
  -12,415
  -14,972
  -17,682
  -20,551
  -23,585
  -26,793
  -30,179
  -33,753
  -37,523
  -41,497
  -45,684
  -50,095
  -54,739
  -59,627
  -64,772
  -70,184
Maintenance CAPEX, $m
  0
  -51
  -54
  -55
  -57
  -58
  -60
  -62
  -64
  -66
  -69
  -72
  -74
  -77
  -81
  -84
  -88
  -91
  -96
  -100
  -104
  -109
  -114
  -120
  -125
  -131
  -137
  -144
  -151
  -158
  -166
New CAPEX, $m
  -1,515
  -43
  -19
  -22
  -25
  -28
  -30
  -33
  -36
  -38
  -41
  -44
  -47
  -50
  -53
  -57
  -60
  -63
  -67
  -71
  -75
  -79
  -83
  -88
  -92
  -97
  -103
  -108
  -114
  -119
  -126
Cash from investing activities, $m
  -5,850
  -94
  -73
  -77
  -82
  -86
  -90
  -95
  -100
  -104
  -110
  -116
  -121
  -127
  -134
  -141
  -148
  -154
  -163
  -171
  -179
  -188
  -197
  -208
  -217
  -228
  -240
  -252
  -265
  -277
  -292
Free cash flow, $m
  8,977
  5,922
  6,478
  5,846
  5,121
  4,305
  3,398
  2,401
  1,315
  -135
  -1,873
  -3,739
  -5,737
  -7,869
  -10,141
  -12,556
  -15,119
  -17,836
  -20,713
  -23,756
  -26,972
  -30,367
  -33,951
  -37,730
  -41,715
  -45,913
  -50,335
  -54,991
  -59,892
  -65,049
  -70,476
Issuance/(repayment) of debt, $m
  -1,309
  -9,069
  18,915
  21,621
  24,274
  26,897
  29,512
  32,136
  34,786
  37,476
  40,220
  43,028
  45,913
  48,884
  51,953
  55,129
  58,422
  61,842
  65,398
  69,101
  72,960
  76,985
  81,187
  85,577
  90,166
  94,965
  99,986
  105,242
  110,745
  116,508
  122,547
Issuance/(repurchase) of shares, $m
  -372
  19,022
  0
  0
  0
  0
  766
  2,050
  3,428
  5,173
  7,212
  8,465
  10,780
  13,239
  15,847
  18,611
  21,536
  24,629
  27,896
  31,346
  34,985
  38,823
  42,868
  47,130
  51,618
  56,343
  61,317
  66,550
  72,056
  77,846
  83,936
Cash from financing (excl. dividends), $m  
  -1,711
  9,953
  18,915
  21,621
  24,274
  26,897
  30,278
  34,186
  38,214
  42,649
  47,432
  51,493
  56,693
  62,123
  67,800
  73,740
  79,958
  86,471
  93,294
  100,447
  107,945
  115,808
  124,055
  132,707
  141,784
  151,308
  161,303
  171,792
  182,801
  194,354
  206,483
Total cash flow (excl. dividends), $m
  6,964
  15,874
  25,393
  27,468
  29,395
  31,202
  33,675
  36,588
  39,529
  42,515
  45,559
  47,754
  50,955
  54,253
  57,659
  61,184
  64,839
  68,634
  72,581
  76,690
  80,973
  85,441
  90,105
  94,977
  100,069
  105,396
  110,968
  116,801
  122,908
  129,305
  136,007
Retained Cash Flow (-), $m
  640
  -24,067
  -2,102
  -2,402
  -2,697
  -2,989
  -3,279
  -3,571
  -3,865
  -5,173
  -7,212
  -8,465
  -10,780
  -13,239
  -15,847
  -18,611
  -21,536
  -24,629
  -27,896
  -31,346
  -34,985
  -38,823
  -42,868
  -47,130
  -51,618
  -56,343
  -61,317
  -66,550
  -72,056
  -77,846
  -83,936
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
 
  -8,193
  23,292
  25,066
  26,698
  28,213
  30,396
  33,017
  35,664
  37,341
  38,347
  39,289
  40,176
  41,015
  41,812
  42,573
  43,303
  44,005
  44,685
  45,345
  45,988
  46,618
  47,236
  47,847
  48,451
  49,052
  49,651
  50,251
  50,853
  51,459
  52,071
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  -7,628
  20,054
  19,810
  19,218
  18,341
  17,687
  17,033
  16,147
  14,677
  12,935
  11,235
  9,614
  8,100
  6,716
  5,476
  4,387
  3,451
  2,663
  2,014
  1,492
  1,080
  764
  528
  355
  233
  148
  92
  55
  32
  18
Current shareholders' claim on cash, %
  100
  75.0
  75.0
  75.0
  75.0
  75.0
  74.3
  72.6
  70.0
  66.4
  61.9
  57.2
  51.9
  46.4
  40.8
  35.3
  30.1
  25.4
  21.1
  17.3
  14.0
  11.2
  8.9
  7.0
  5.4
  4.2
  3.2
  2.4
  1.8
  1.3
  1.0

MetLife, Inc. is a provider of life insurance, annuities, employee benefits and asset management. The Company's segments include U.S.; Asia; Latin America; Europe, the Middle East and Africa (EMEA); MetLife Holdings, and Corporate & Other. Its U.S. segment is organized into Group Benefits, Retirement and Income Solutions and Property & Casualty businesses. Its Asia segment offers products, including life insurance; accident and health insurance, and retirement and savings products. Latin America offers products, including life insurance, and retirement and savings products. Life insurance includes universal, variable and term life products. EMEA offers products, including life insurance, accident and health insurance, retirement and savings products, and credit insurance.

FINANCIAL RATIOS  of  MetLife (MET)

Valuation Ratios
P/E Ratio 73.7
Price to Sales 0.9
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 4
Price to Free Cash Flow 4.4
Growth Rates
Sales Growth Rate -9.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 16.7%
Cap. Spend. - 3 Yr. Gr. Rate -4.2%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 29.1%
Total Debt to Equity 29.5%
Interest Coverage 1
Management Effectiveness
Return On Assets -0.5%
Ret/ On Assets - 3 Yr. Avg. 0.3%
Return On Total Capital 0.9%
Ret/ On T. Cap. - 3 Yr. Avg. 4.7%
Return On Equity 1.2%
Return On Equity - 3 Yr. Avg. 6.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 2.6%
EBITDA Margin - 3 Yr. Avg. 10.2%
Operating Margin 1.6%
Oper. Margin - 3 Yr. Avg. 9.2%
Pre-Tax Margin -0.3%
Pre-Tax Margin - 3 Yr. Avg. 7.5%
Net Profit Margin 1.3%
Net Profit Margin - 3 Yr. Avg. 5.8%
Effective Tax Rate 512.3%
Eff/ Tax Rate - 3 Yr. Avg. 189.7%
Payout Ratio 229.9%

MET stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MET stock intrinsic value calculation we used $63605 million for the last fiscal year's total revenue generated by MetLife. The default revenue input number comes from 2016 income statement of MetLife. 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 MET stock valuation model: a) initial revenue growth rate of 2% 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 7.4%, whose default value for MET is calculated based on our internal credit rating of MetLife, 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 MetLife.
    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 MET stock the variable cost ratio is equal to 87.6%.

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 MET 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 5.8% for MetLife.

Corporate tax rate of 27% is the nominal tax rate for MetLife. 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 MET 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 MET are equal to 1.3%.

Life of production assets of 15.6 years is the average useful life of capital assets used in MetLife 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 MET is equal to 0.4%. 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 - $67309 million for MetLife - 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 1058.74 million for MetLife 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 MetLife at the current share price and the inputted number of shares is $57.0 billion.

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COMPANY NEWS

▶ [$$] A Corporate Fighter Rewarded   [Jan-23-18 12:30AM  The Wall Street Journal]
▶ Analyzing the Performance of MetLifes EMEA Division   [Jan-22-18 10:31AM  Market Realist]
▶ [$$] The MetLife Sagas Mostly Happy Ending   [Jan-20-18 12:43AM  The Wall Street Journal]
▶ How MetLifes US Division Has Performed   [Jan-19-18 10:34AM  Market Realist]
▶ What Can We Expect from MetLife in 4Q17?   [11:57AM  Market Realist]
▶ MetLife Announces Planned Merger of Two Subsidiaries   [Jan-16-18 04:15PM  Business Wire]
▶ Underwriting May Help Berkshires Insurance Division   [Jan-12-18 11:17AM  Market Realist]
▶ Wal-Mart to Increase Starting Wages to $11   [Jan-11-18 08:53AM  Bloomberg Video]
▶ Buy These 3 Stocks on Today's Strong Gains   [Jan-10-18 03:33PM  Zacks]
▶ MetLife Declares First Quarter 2018 Common Stock Dividend   [Jan-05-18 04:15PM  Business Wire]
▶ ETFs with exposure to MetLife, Inc. : January 1, 2018   [Jan-01-18 11:44AM  Capital Cube]
▶ [$$] Insurers Want More of Your Money to Manage   [Dec-29-17 11:30PM  The Wall Street Journal]
▶ [$$] MetLife Hires Firms to Locate Workers Owed Pensions   [Dec-21-17 12:15PM  The Wall Street Journal]
▶ Analysts Views on MetLife   [09:00AM  Market Realist]
▶ How MetLifes Valuation Compares   [07:30AM  Market Realist]
▶ [$$] MetLife Discloses Failure to Pay Thousands of Workers Pensions   [Dec-15-17 11:42PM  The Wall Street Journal]
▶ [$$] MetLife Failed to Pay Monthly Pensions to Thousands   [06:39PM  The Wall Street Journal]
▶ Assessing MetLifes Assets and Liabilities   [10:30AM  Market Realist]
▶ Why MetLife May Have Strong Growth Potential   [09:00AM  Market Realist]
▶ A Look at MetLifes Holdings Division   [07:30AM  Market Realist]
▶ Why MetLifes Total Expenses Rose   [09:03AM  Market Realist]
▶ MetLifes Total Revenue Rises   [07:35AM  Market Realist]
▶ MetLifes Strong 3Q17 Results Beat Estimates   [Dec-12-17 05:43PM  Market Realist]
▶ Powell Won't Differ From Yellen on Policy, Says Matus   [Nov-28-17 09:04AM  Bloomberg Video]
▶ How Wall Street Analysts View Chubb Limited after 3Q17   [Nov-27-17 07:30AM  Market Realist]
▶ Top Financial Dividend Yielding Stocks To Profit From   [Nov-23-17 12:02PM  Simply Wall St.]
▶ [$$] Treasury Calls for Overhaul of Systemically Important Designation   [Nov-17-17 11:05PM  The Wall Street Journal]
▶ MetLife to Hold Investor Outlook Call   [Nov-15-17 04:18PM  Business Wire]
▶ Top Stock Reports for Apple, Facebook & MetLife   [Nov-09-17 04:52PM  Zacks]
▶ MetLife Recognized for Innovative Customer Solutions   [Nov-02-17 11:29PM  Business Wire]
Financial statements of MET
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