Intrinsic value of Navistar International Corporation - NAV

Previous Close

$31.35

  Intrinsic Value

$79.69

stock screener

  Rating & Target

str. buy

+154%

Previous close

$31.35

 
Intrinsic value

$79.69

 
Up/down potential

+154%

 
Rating

str. buy

We calculate the intrinsic value of NAV 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 3.1

 

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, %
  27.70
  25.43
  23.39
  21.55
  19.89
  18.40
  17.06
  15.86
  14.77
  13.79
  12.92
  12.12
  11.41
  10.77
  10.19
  9.67
  9.21
  8.79
  8.41
  8.07
  7.76
  7.48
  7.24
  7.01
  6.81
  6.63
  6.47
  6.32
  6.19
  6.07
Revenue, $m
  13,089
  16,418
  20,257
  24,623
  29,521
  34,954
  40,918
  47,407
  54,410
  61,915
  69,912
  78,387
  87,332
  96,738
  106,599
  116,911
  127,674
  138,891
  150,568
  162,713
  175,339
  188,461
  202,097
  216,268
  230,998
  246,312
  262,240
  278,814
  296,067
  314,036
Variable operating expenses, $m
  10,653
  13,360
  16,483
  20,033
  24,017
  28,436
  33,287
  38,565
  44,260
  50,365
  56,862
  63,755
  71,031
  78,681
  86,701
  95,088
  103,842
  112,965
  122,462
  132,341
  142,610
  153,283
  164,373
  175,899
  187,879
  200,335
  213,289
  226,769
  240,802
  255,417
Fixed operating expenses, $m
  1,263
  1,291
  1,319
  1,348
  1,378
  1,408
  1,439
  1,471
  1,503
  1,536
  1,570
  1,605
  1,640
  1,676
  1,713
  1,751
  1,789
  1,829
  1,869
  1,910
  1,952
  1,995
  2,039
  2,084
  2,130
  2,176
  2,224
  2,273
  2,323
  2,374
Total operating expenses, $m
  11,916
  14,651
  17,802
  21,381
  25,395
  29,844
  34,726
  40,036
  45,763
  51,901
  58,432
  65,360
  72,671
  80,357
  88,414
  96,839
  105,631
  114,794
  124,331
  134,251
  144,562
  155,278
  166,412
  177,983
  190,009
  202,511
  215,513
  229,042
  243,125
  257,791
Operating income, $m
  1,173
  1,767
  2,455
  3,241
  4,126
  5,109
  6,192
  7,371
  8,646
  10,014
  11,480
  13,027
  14,662
  16,381
  18,185
  20,072
  22,043
  24,097
  26,237
  28,463
  30,777
  33,184
  35,685
  38,286
  40,989
  43,801
  46,726
  49,771
  52,942
  56,245
EBITDA, $m
  1,444
  2,104
  2,870
  3,744
  4,727
  5,821
  7,023
  8,333
  9,749
  11,268
  12,888
  14,607
  16,421
  18,330
  20,333
  22,428
  24,615
  26,896
  29,270
  31,741
  34,310
  36,981
  39,757
  42,643
  45,644
  48,764
  52,010
  55,389
  58,907
  62,572
Interest expense (income), $m
  294
  339
  162
  293
  444
  616
  809
  1,022
  1,257
  1,512
  1,788
  2,083
  2,398
  2,732
  3,084
  3,454
  3,842
  4,248
  4,671
  5,112
  5,572
  6,050
  6,547
  7,063
  7,600
  8,157
  8,737
  9,340
  9,966
  10,619
  11,298
Earnings before tax, $m
  834
  1,605
  2,162
  2,797
  3,510
  4,301
  5,169
  6,114
  7,134
  8,226
  9,396
  10,629
  11,930
  13,298
  14,731
  16,230
  17,795
  19,426
  21,124
  22,891
  24,727
  26,637
  28,622
  30,686
  32,832
  35,064
  37,387
  39,805
  42,323
  44,947
Tax expense, $m
  225
  433
  584
  755
  948
  1,161
  1,396
  1,651
  1,926
  2,221
  2,537
  2,870
  3,221
  3,590
  3,977
  4,382
  4,805
  5,245
  5,704
  6,180
  6,676
  7,192
  7,728
  8,285
  8,865
  9,467
  10,094
  10,747
  11,427
  12,136
Net income, $m
  609
  1,171
  1,578
  2,042
  2,562
  3,140
  3,774
  4,463
  5,208
  6,005
  6,859
  7,759
  8,709
  9,707
  10,754
  11,848
  12,990
  14,181
  15,421
  16,710
  18,051
  19,445
  20,894
  22,401
  23,967
  25,597
  27,292
  29,057
  30,896
  32,811

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
  9,231
  11,578
  14,286
  17,364
  20,819
  24,650
  28,856
  33,432
  38,371
  43,664
  49,303
  55,280
  61,588
  68,221
  75,175
  82,448
  90,038
  97,948
  106,183
  114,748
  123,653
  132,907
  142,523
  152,516
  162,904
  173,704
  184,937
  196,625
  208,792
  221,464
Adjusted assets (=assets-cash), $m
  9,231
  11,578
  14,286
  17,364
  20,819
  24,650
  28,856
  33,432
  38,371
  43,664
  49,303
  55,280
  61,588
  68,221
  75,175
  82,448
  90,038
  97,948
  106,183
  114,748
  123,653
  132,907
  142,523
  152,516
  162,904
  173,704
  184,937
  196,625
  208,792
  221,464
Revenue / Adjusted assets
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
  1.418
Average production assets, $m
  1,767
  2,216
  2,735
  3,324
  3,985
  4,719
  5,524
  6,400
  7,345
  8,359
  9,438
  10,582
  11,790
  13,060
  14,391
  15,783
  17,236
  18,750
  20,327
  21,966
  23,671
  25,442
  27,283
  29,196
  31,185
  33,252
  35,402
  37,640
  39,969
  42,395
Working capital, $m
  929
  1,166
  1,438
  1,748
  2,096
  2,482
  2,905
  3,366
  3,863
  4,396
  4,964
  5,566
  6,201
  6,868
  7,569
  8,301
  9,065
  9,861
  10,690
  11,553
  12,449
  13,381
  14,349
  15,355
  16,401
  17,488
  18,619
  19,796
  21,021
  22,297
Total debt, $m
  2,614
  4,726
  7,163
  9,934
  13,043
  16,491
  20,277
  24,395
  28,840
  33,603
  38,679
  44,058
  49,736
  55,705
  61,964
  68,509
  75,340
  82,460
  89,871
  97,580
  105,593
  113,922
  122,577
  131,571
  140,919
  150,639
  160,749
  171,268
  182,219
  193,623
Total liabilities, $m
  8,308
  10,420
  12,857
  15,628
  18,737
  22,185
  25,971
  30,089
  34,534
  39,297
  44,373
  49,752
  55,430
  61,399
  67,658
  74,203
  81,034
  88,154
  95,565
  103,274
  111,287
  119,616
  128,271
  137,265
  146,613
  156,333
  166,443
  176,962
  187,913
  199,317
Total equity, $m
  923
  1,158
  1,429
  1,736
  2,082
  2,465
  2,886
  3,343
  3,837
  4,366
  4,930
  5,528
  6,159
  6,822
  7,518
  8,245
  9,004
  9,795
  10,618
  11,475
  12,365
  13,291
  14,252
  15,252
  16,290
  17,370
  18,494
  19,662
  20,879
  22,146
Total liabilities and equity, $m
  9,231
  11,578
  14,286
  17,364
  20,819
  24,650
  28,857
  33,432
  38,371
  43,663
  49,303
  55,280
  61,589
  68,221
  75,176
  82,448
  90,038
  97,949
  106,183
  114,749
  123,652
  132,907
  142,523
  152,517
  162,903
  173,703
  184,937
  196,624
  208,792
  221,463
Debt-to-equity ratio
  2.830
  4.080
  5.010
  5.720
  6.260
  6.690
  7.030
  7.300
  7.520
  7.700
  7.850
  7.970
  8.080
  8.170
  8.240
  8.310
  8.370
  8.420
  8.460
  8.500
  8.540
  8.570
  8.600
  8.630
  8.650
  8.670
  8.690
  8.710
  8.730
  8.740
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
  609
  1,171
  1,578
  2,042
  2,562
  3,140
  3,774
  4,463
  5,208
  6,005
  6,859
  7,759
  8,709
  9,707
  10,754
  11,848
  12,990
  14,181
  15,421
  16,710
  18,051
  19,445
  20,894
  22,401
  23,967
  25,597
  27,292
  29,057
  30,896
  32,811
Depreciation, amort., depletion, $m
  271
  338
  415
  503
  602
  711
  831
  962
  1,103
  1,254
  1,409
  1,579
  1,760
  1,949
  2,148
  2,356
  2,573
  2,799
  3,034
  3,279
  3,533
  3,797
  4,072
  4,358
  4,654
  4,963
  5,284
  5,618
  5,966
  6,328
Funds from operations, $m
  880
  1,509
  1,993
  2,545
  3,164
  3,851
  4,605
  5,425
  6,311
  7,259
  8,268
  9,339
  10,469
  11,656
  12,902
  14,204
  15,563
  16,980
  18,454
  19,989
  21,584
  23,242
  24,966
  26,758
  28,622
  30,560
  32,576
  34,675
  36,861
  39,139
Change in working capital, $m
  202
  236
  273
  310
  348
  386
  423
  461
  497
  533
  568
  602
  635
  668
  700
  732
  764
  796
  829
  862
  896
  932
  968
  1,006
  1,046
  1,087
  1,131
  1,177
  1,225
  1,276
Cash from operations, $m
  678
  1,273
  1,721
  2,235
  2,816
  3,465
  4,181
  4,965
  5,813
  6,726
  7,700
  8,737
  9,833
  10,989
  12,202
  13,472
  14,799
  16,183
  17,625
  19,126
  20,688
  22,311
  23,998
  25,752
  27,576
  29,472
  31,445
  33,499
  35,636
  37,863
Maintenance CAPEX, $m
  -207
  -264
  -331
  -408
  -496
  -595
  -704
  -824
  -955
  -1,096
  -1,248
  -1,409
  -1,579
  -1,760
  -1,949
  -2,148
  -2,356
  -2,573
  -2,799
  -3,034
  -3,279
  -3,533
  -3,797
  -4,072
  -4,358
  -4,654
  -4,963
  -5,284
  -5,618
  -5,966
New CAPEX, $m
  -383
  -449
  -518
  -589
  -661
  -733
  -805
  -876
  -945
  -1,013
  -1,080
  -1,144
  -1,208
  -1,270
  -1,331
  -1,392
  -1,453
  -1,514
  -1,576
  -1,640
  -1,705
  -1,771
  -1,841
  -1,913
  -1,988
  -2,067
  -2,150
  -2,237
  -2,329
  -2,426
Cash from investing activities, $m
  -590
  -713
  -849
  -997
  -1,157
  -1,328
  -1,509
  -1,700
  -1,900
  -2,109
  -2,328
  -2,553
  -2,787
  -3,030
  -3,280
  -3,540
  -3,809
  -4,087
  -4,375
  -4,674
  -4,984
  -5,304
  -5,638
  -5,985
  -6,346
  -6,721
  -7,113
  -7,521
  -7,947
  -8,392
Free cash flow, $m
  89
  560
  872
  1,237
  1,659
  2,137
  2,672
  3,264
  3,913
  4,617
  5,373
  6,184
  7,046
  7,959
  8,921
  9,932
  10,990
  12,096
  13,250
  14,453
  15,704
  17,006
  18,360
  19,767
  21,230
  22,751
  24,332
  25,977
  27,689
  29,472
Issuance/(repayment) of debt, $m
  -2,853
  2,113
  2,437
  2,771
  3,109
  3,448
  3,786
  4,118
  4,445
  4,764
  5,075
  5,380
  5,677
  5,970
  6,258
  6,545
  6,831
  7,119
  7,411
  7,709
  8,014
  8,329
  8,655
  8,994
  9,349
  9,720
  10,110
  10,519
  10,950
  11,405
Issuance/(repurchase) of shares, $m
  4,245
  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 from financing (excl. dividends), $m  
  1,392
  2,113
  2,437
  2,771
  3,109
  3,448
  3,786
  4,118
  4,445
  4,764
  5,075
  5,380
  5,677
  5,970
  6,258
  6,545
  6,831
  7,119
  7,411
  7,709
  8,014
  8,329
  8,655
  8,994
  9,349
  9,720
  10,110
  10,519
  10,950
  11,405
Total cash flow (excl. dividends), $m
  1,481
  2,672
  3,309
  4,008
  4,767
  5,585
  6,458
  7,383
  8,358
  9,381
  10,448
  11,564
  12,724
  13,929
  15,180
  16,477
  17,822
  19,216
  20,662
  22,162
  23,718
  25,335
  27,015
  28,761
  30,578
  32,470
  34,442
  36,496
  38,640
  40,877
Retained Cash Flow (-), $m
  -4,854
  -235
  -271
  -308
  -345
  -383
  -421
  -458
  -494
  -529
  -564
  -598
  -631
  -663
  -695
  -727
  -759
  -791
  -823
  -857
  -890
  -925
  -962
  -999
  -1,039
  -1,080
  -1,123
  -1,169
  -1,217
  -1,267
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
  -3,374
  2,438
  3,038
  3,700
  4,422
  5,202
  6,037
  6,925
  7,864
  8,851
  9,884
  10,966
  12,093
  13,266
  14,484
  15,749
  17,062
  18,425
  19,838
  21,305
  22,828
  24,409
  26,053
  27,762
  29,540
  31,390
  33,318
  35,328
  37,423
  39,609
Discount rate, %
  14.80
  15.54
  16.32
  17.13
  17.99
  18.89
  19.83
  20.83
  21.87
  22.96
  24.11
  25.31
  26.58
  27.91
  29.30
  30.77
  32.31
  33.92
  35.62
  37.40
  39.27
  41.23
  43.29
  45.46
  47.73
  50.12
  52.62
  55.26
  58.02
  60.92
PV of cash for distribution, $m
  -2,939
  1,826
  1,930
  1,966
  1,934
  1,842
  1,701
  1,525
  1,326
  1,120
  919
  731
  565
  423
  307
  215
  146
  96
  61
  37
  22
  12
  7
  3
  2
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company's segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.

FINANCIAL RATIOS  of  Navistar International Corporation (NAV)

Valuation Ratios
P/E Ratio 102.9
Price to Sales 0.4
Price to Book -0.7
Price to Tangible Book
Price to Cash Flow 28.3
Price to Free Cash Flow -23.8
Growth Rates
Sales Growth Rate 5.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -3.6%
Cap. Spend. - 3 Yr. Gr. Rate -2.9%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity -84.9%
Total Debt to Equity -110.5%
Interest Coverage 1
Management Effectiveness
Return On Assets 4.7%
Ret/ On Assets - 3 Yr. Avg. 4.5%
Return On Total Capital 69.8%
Ret/ On T. Cap. - 3 Yr. Avg. 29.1%
Return On Equity -0.6%
Return On Equity - 3 Yr. Avg. 1.8%
Asset Turnover 1.5
Profitability Ratios
Gross Margin 17.9%
Gross Margin - 3 Yr. Avg. 16.2%
EBITDA Margin 6.8%
EBITDA Margin - 3 Yr. Avg. 5.6%
Operating Margin 5%
Oper. Margin - 3 Yr. Avg. 3.5%
Pre-Tax Margin 0.7%
Pre-Tax Margin - 3 Yr. Avg. -0.3%
Net Profit Margin 0.4%
Net Profit Margin - 3 Yr. Avg. -0.9%
Effective Tax Rate 15.6%
Eff/ Tax Rate - 3 Yr. Avg. -34.7%
Payout Ratio 0%

NAV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NAV stock intrinsic value calculation we used $10250 million for the last fiscal year's total revenue generated by Navistar International Corporation. The default revenue input number comes from 0001 income statement of Navistar International Corporation. 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 NAV stock valuation model: a) initial revenue growth rate of 27.7% 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 14.8%, whose default value for NAV is calculated based on our internal credit rating of Navistar International Corporation, 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 Navistar International Corporation.
    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 NAV stock the variable cost ratio is equal to 81.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1236 million in the base year in the intrinsic value calculation for NAV 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 6.2% for Navistar International Corporation.

Corporate tax rate of 27% is the nominal tax rate for Navistar International Corporation. 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 NAV 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 NAV are equal to 13.5%.

Life of production assets of 6.7 years is the average useful life of capital assets used in Navistar International Corporation 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 NAV is equal to 7.1%. 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 - $-3931 million for Navistar International Corporation - 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 99.001 million for Navistar International Corporation 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 Navistar International Corporation at the current share price and the inputted number of shares is $3.1 billion.

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