Intrinsic value of Newell Brands - NWL

Previous Close

$21.31

  Intrinsic Value

$26.91

stock screener

  Rating & Target

buy

+26%

Previous close

$21.31

 
Intrinsic value

$26.91

 
Up/down potential

+26%

 
Rating

buy

We calculate the intrinsic value of NWL 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 10.4

 

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, %
  11.10
  10.49
  9.94
  9.45
  9.00
  8.60
  8.24
  7.92
  7.63
  7.36
  7.13
  6.91
  6.72
  6.55
  6.40
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.39
  5.35
  5.32
  5.29
Revenue, $m
  16,378
  18,096
  19,895
  21,775
  23,735
  25,777
  27,901
  30,110
  32,407
  34,793
  37,272
  39,850
  42,529
  45,314
  48,213
  51,229
  54,369
  57,641
  61,050
  64,606
  68,315
  72,187
  76,230
  80,454
  84,868
  89,483
  94,310
  99,360
  104,645
  110,178
Variable operating expenses, $m
  14,711
  15,994
  17,338
  18,741
  20,205
  21,730
  23,316
  24,966
  26,681
  28,463
  27,835
  29,760
  31,760
  33,841
  36,005
  38,258
  40,603
  43,046
  45,593
  48,248
  51,018
  53,909
  56,929
  60,083
  63,379
  66,826
  70,431
  74,202
  78,149
  82,281
Fixed operating expenses, $m
  22
  23
  23
  24
  25
  25
  26
  26
  27
  27
  28
  29
  29
  30
  30
  31
  32
  33
  33
  34
  35
  36
  36
  37
  38
  39
  40
  40
  41
  42
Total operating expenses, $m
  14,733
  16,017
  17,361
  18,765
  20,230
  21,755
  23,342
  24,992
  26,708
  28,490
  27,863
  29,789
  31,789
  33,871
  36,035
  38,289
  40,635
  43,079
  45,626
  48,282
  51,053
  53,945
  56,965
  60,120
  63,417
  66,865
  70,471
  74,242
  78,190
  82,323
Operating income, $m
  1,645
  2,079
  2,534
  3,010
  3,506
  4,022
  4,559
  5,118
  5,699
  6,303
  9,409
  10,061
  10,739
  11,444
  12,177
  12,940
  13,734
  14,562
  15,425
  16,324
  17,263
  18,242
  19,265
  20,334
  21,451
  22,618
  23,840
  25,117
  26,455
  27,855
EBITDA, $m
  7,033
  7,773
  8,547
  9,357
  10,201
  11,080
  11,994
  12,945
  13,934
  14,961
  16,029
  17,139
  18,292
  19,492
  20,739
  22,038
  23,390
  24,799
  26,267
  27,798
  29,396
  31,063
  32,804
  34,622
  36,523
  38,511
  40,589
  42,764
  45,040
  47,422
Interest expense (income), $m
  316
  570
  683
  803
  928
  1,058
  1,195
  1,337
  1,484
  1,638
  1,798
  1,964
  2,136
  2,315
  2,501
  2,695
  2,897
  3,106
  3,325
  3,552
  3,789
  4,037
  4,294
  4,564
  4,845
  5,139
  5,445
  5,766
  6,102
  6,453
  6,821
Earnings before tax, $m
  1,075
  1,396
  1,732
  2,082
  2,447
  2,827
  3,223
  3,634
  4,061
  4,505
  7,446
  7,925
  8,424
  8,942
  9,482
  10,043
  10,628
  11,237
  11,872
  12,535
  13,226
  13,948
  14,701
  15,489
  16,312
  17,173
  18,073
  19,015
  20,002
  21,034
Tax expense, $m
  290
  377
  468
  562
  661
  763
  870
  981
  1,096
  1,216
  2,010
  2,140
  2,274
  2,414
  2,560
  2,712
  2,870
  3,034
  3,206
  3,384
  3,571
  3,766
  3,969
  4,182
  4,404
  4,637
  4,880
  5,134
  5,400
  5,679
Net income, $m
  785
  1,019
  1,264
  1,520
  1,786
  2,064
  2,353
  2,653
  2,965
  3,289
  5,435
  5,785
  6,149
  6,528
  6,922
  7,332
  7,758
  8,203
  8,667
  9,150
  9,655
  10,182
  10,732
  11,307
  11,908
  12,536
  13,194
  13,881
  14,601
  15,355

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
  36,805
  40,666
  44,709
  48,932
  53,337
  57,925
  62,700
  67,664
  72,824
  78,186
  83,758
  89,550
  95,570
  101,830
  108,343
  115,121
  122,178
  129,530
  137,192
  145,182
  153,518
  162,219
  171,304
  180,795
  190,715
  201,086
  211,932
  223,281
  235,158
  247,591
Adjusted assets (=assets-cash), $m
  36,805
  40,666
  44,709
  48,932
  53,337
  57,925
  62,700
  67,664
  72,824
  78,186
  83,758
  89,550
  95,570
  101,830
  108,343
  115,121
  122,178
  129,530
  137,192
  145,182
  153,518
  162,219
  171,304
  180,795
  190,715
  201,086
  211,932
  223,281
  235,158
  247,591
Revenue / Adjusted assets
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
Average production assets, $m
  29,088
  32,139
  35,334
  38,672
  42,154
  45,780
  49,553
  53,476
  57,554
  61,792
  66,196
  70,773
  75,531
  80,478
  85,625
  90,982
  96,560
  102,370
  108,426
  114,740
  121,328
  128,205
  135,385
  142,886
  150,726
  158,922
  167,494
  176,463
  185,850
  195,676
Working capital, $m
  819
  905
  995
  1,089
  1,187
  1,289
  1,395
  1,506
  1,620
  1,740
  1,864
  1,992
  2,126
  2,266
  2,411
  2,561
  2,718
  2,882
  3,053
  3,230
  3,416
  3,609
  3,812
  4,023
  4,243
  4,474
  4,715
  4,968
  5,232
  5,509
Total debt, $m
  12,651
  14,864
  17,180
  19,600
  22,124
  24,753
  27,489
  30,333
  33,290
  36,363
  39,555
  42,874
  46,323
  49,911
  53,642
  57,526
  61,570
  65,782
  70,173
  74,751
  79,528
  84,513
  89,719
  95,158
  100,841
  106,784
  112,999
  119,502
  126,307
  133,432
Total liabilities, $m
  21,089
  23,302
  25,618
  28,038
  30,562
  33,191
  35,927
  38,771
  41,728
  44,801
  47,994
  51,312
  54,762
  58,349
  62,080
  65,964
  70,008
  74,220
  78,611
  83,189
  87,966
  92,951
  98,157
  103,596
  109,280
  115,222
  121,437
  127,940
  134,745
  141,870
Total equity, $m
  15,716
  17,364
  19,091
  20,894
  22,775
  24,734
  26,773
  28,892
  31,096
  33,385
  35,765
  38,238
  40,808
  43,481
  46,262
  49,156
  52,170
  55,309
  58,581
  61,993
  65,552
  69,267
  73,147
  77,200
  81,435
  85,864
  90,495
  95,341
  100,412
  105,721
Total liabilities and equity, $m
  36,805
  40,666
  44,709
  48,932
  53,337
  57,925
  62,700
  67,663
  72,824
  78,186
  83,759
  89,550
  95,570
  101,830
  108,342
  115,120
  122,178
  129,529
  137,192
  145,182
  153,518
  162,218
  171,304
  180,796
  190,715
  201,086
  211,932
  223,281
  235,157
  247,591
Debt-to-equity ratio
  0.810
  0.860
  0.900
  0.940
  0.970
  1.000
  1.030
  1.050
  1.070
  1.090
  1.110
  1.120
  1.140
  1.150
  1.160
  1.170
  1.180
  1.190
  1.200
  1.210
  1.210
  1.220
  1.230
  1.230
  1.240
  1.240
  1.250
  1.250
  1.260
  1.260
Adjusted equity ratio
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427
  0.427

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  785
  1,019
  1,264
  1,520
  1,786
  2,064
  2,353
  2,653
  2,965
  3,289
  5,435
  5,785
  6,149
  6,528
  6,922
  7,332
  7,758
  8,203
  8,667
  9,150
  9,655
  10,182
  10,732
  11,307
  11,908
  12,536
  13,194
  13,881
  14,601
  15,355
Depreciation, amort., depletion, $m
  5,388
  5,694
  6,013
  6,347
  6,695
  7,058
  7,435
  7,827
  8,235
  8,659
  6,620
  7,077
  7,553
  8,048
  8,563
  9,098
  9,656
  10,237
  10,843
  11,474
  12,133
  12,820
  13,538
  14,289
  15,073
  15,892
  16,749
  17,646
  18,585
  19,568
Funds from operations, $m
  6,173
  6,713
  7,277
  7,867
  8,481
  9,122
  9,787
  10,480
  11,200
  11,947
  12,055
  12,863
  13,702
  14,576
  15,484
  16,430
  17,414
  18,440
  19,509
  20,625
  21,788
  23,002
  24,271
  25,596
  26,980
  28,428
  29,943
  31,528
  33,186
  34,923
Change in working capital, $m
  82
  86
  90
  94
  98
  102
  106
  110
  115
  119
  124
  129
  134
  139
  145
  151
  157
  164
  170
  178
  185
  194
  202
  211
  221
  231
  241
  253
  264
  277
Cash from operations, $m
  6,091
  6,627
  7,187
  7,773
  8,383
  9,019
  9,681
  10,369
  11,085
  11,828
  11,931
  12,734
  13,569
  14,436
  15,339
  16,279
  17,257
  18,277
  19,339
  20,447
  21,602
  22,809
  24,068
  25,384
  26,760
  28,198
  29,702
  31,275
  32,922
  34,646
Maintenance CAPEX, $m
  -2,619
  -2,909
  -3,214
  -3,533
  -3,867
  -4,215
  -4,578
  -4,955
  -5,348
  -5,755
  -6,179
  -6,620
  -7,077
  -7,553
  -8,048
  -8,563
  -9,098
  -9,656
  -10,237
  -10,843
  -11,474
  -12,133
  -12,820
  -13,538
  -14,289
  -15,073
  -15,892
  -16,749
  -17,646
  -18,585
New CAPEX, $m
  -2,899
  -3,051
  -3,195
  -3,338
  -3,481
  -3,626
  -3,773
  -3,923
  -4,078
  -4,238
  -4,404
  -4,577
  -4,758
  -4,948
  -5,147
  -5,357
  -5,578
  -5,810
  -6,056
  -6,315
  -6,588
  -6,876
  -7,180
  -7,501
  -7,840
  -8,196
  -8,572
  -8,969
  -9,387
  -9,826
Cash from investing activities, $m
  -5,518
  -5,960
  -6,409
  -6,871
  -7,348
  -7,841
  -8,351
  -8,878
  -9,426
  -9,993
  -10,583
  -11,197
  -11,835
  -12,501
  -13,195
  -13,920
  -14,676
  -15,466
  -16,293
  -17,158
  -18,062
  -19,009
  -20,000
  -21,039
  -22,129
  -23,269
  -24,464
  -25,718
  -27,033
  -28,411
Free cash flow, $m
  573
  667
  778
  901
  1,035
  1,178
  1,330
  1,491
  1,659
  1,835
  1,348
  1,537
  1,733
  1,936
  2,144
  2,360
  2,582
  2,810
  3,046
  3,289
  3,540
  3,800
  4,068
  4,345
  4,632
  4,929
  5,237
  5,557
  5,889
  6,235
Issuance/(repayment) of debt, $m
  2,099
  2,212
  2,316
  2,420
  2,524
  2,629
  2,736
  2,845
  2,957
  3,073
  3,193
  3,318
  3,450
  3,587
  3,732
  3,884
  4,044
  4,213
  4,391
  4,578
  4,776
  4,985
  5,206
  5,439
  5,684
  5,943
  6,215
  6,503
  6,805
  7,124
Issuance/(repurchase) of shares, $m
  786
  629
  462
  284
  94
  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  
  2,885
  2,841
  2,778
  2,704
  2,618
  2,629
  2,736
  2,845
  2,957
  3,073
  3,193
  3,318
  3,450
  3,587
  3,732
  3,884
  4,044
  4,213
  4,391
  4,578
  4,776
  4,985
  5,206
  5,439
  5,684
  5,943
  6,215
  6,503
  6,805
  7,124
Total cash flow (excl. dividends), $m
  3,458
  3,508
  3,557
  3,605
  3,653
  3,807
  4,066
  4,335
  4,616
  4,907
  4,541
  4,856
  5,183
  5,523
  5,876
  6,243
  6,625
  7,023
  7,437
  7,868
  8,317
  8,785
  9,274
  9,783
  10,315
  10,871
  11,452
  12,059
  12,695
  13,359
Retained Cash Flow (-), $m
  -1,571
  -1,649
  -1,726
  -1,803
  -1,881
  -1,959
  -2,039
  -2,120
  -2,203
  -2,290
  -2,379
  -2,473
  -2,571
  -2,673
  -2,781
  -2,894
  -3,013
  -3,139
  -3,272
  -3,412
  -3,559
  -3,715
  -3,879
  -4,053
  -4,236
  -4,428
  -4,632
  -4,846
  -5,071
  -5,309
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
  74
  82
  90
  99
  109
  119
  129
  140
  151
  162
  174
  186
  199
  213
  227
  241
  256
  272
  288
  305
  323
  342
  361
  381
  402
  424
  447
  472
  497
  523
Cash available for distribution, $m
  1,888
  1,860
  1,831
  1,802
  1,772
  1,848
  2,027
  2,216
  2,412
  2,618
  2,162
  2,383
  2,612
  2,850
  3,095
  3,349
  3,612
  3,884
  4,165
  4,456
  4,757
  5,070
  5,394
  5,730
  6,080
  6,443
  6,821
  7,214
  7,623
  8,050
Discount rate, %
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.42
  17.24
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
  28.09
  29.49
  30.97
  32.52
PV of cash for distribution, $m
  1,749
  1,586
  1,425
  1,269
  1,121
  1,038
  1,002
  953
  893
  824
  571
  521
  466
  408
  350
  294
  242
  194
  153
  117
  87
  64
  45
  31
  21
  14
  9
  5
  3
  2
Current shareholders' claim on cash, %
  93.0
  88.1
  85.1
  83.4
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9
  82.9

Newell Brands Inc. is a marketer of consumer and commercial products. The Company's segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer's, Coleman, Jostens, Marmot, Rawlings, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle. Writing segment consists of the Writing and Creative Expression business. Home Solutions segment designs, manufactures or sources and distributes a range of consumer products under various brand names. Commercial Products segment designs, manufactures or sources and distributes cleaning and refuse products. Its Baby & Parenting segment designs and distributes infant and juvenile products.

FINANCIAL RATIOS  of  Newell Brands (NWL)

Valuation Ratios
P/E Ratio 19.5
Price to Sales 0.8
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 5.6
Price to Free Cash Flow 7.4
Growth Rates
Sales Growth Rate 124.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 109%
Cap. Spend. - 3 Yr. Gr. Rate 26.2%
Financial Strength
Quick Ratio 1
Current Ratio 0.4
LT Debt to Equity 99.5%
Total Debt to Equity 104.8%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 5.4%
Return On Total Capital 3.8%
Ret/ On T. Cap. - 3 Yr. Avg. 6.8%
Return On Equity 8%
Return On Equity - 3 Yr. Avg. 15.4%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 33.2%
Gross Margin - 3 Yr. Avg. 36.9%
EBITDA Margin 11.8%
EBITDA Margin - 3 Yr. Avg. 11.2%
Operating Margin 7.9%
Oper. Margin - 3 Yr. Avg. 8.4%
Pre-Tax Margin 6.1%
Pre-Tax Margin - 3 Yr. Avg. 6.6%
Net Profit Margin 4%
Net Profit Margin - 3 Yr. Avg. 5.5%
Effective Tax Rate 35.1%
Eff/ Tax Rate - 3 Yr. Avg. 25.9%
Payout Ratio 62.3%

NWL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NWL stock intrinsic value calculation we used $14742 million for the last fiscal year's total revenue generated by Newell Brands. The default revenue input number comes from 2017 income statement of Newell Brands. 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 NWL stock valuation model: a) initial revenue growth rate of 11.1% 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 7.9%, whose default value for NWL is calculated based on our internal credit rating of Newell Brands, 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 Newell Brands.
    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 NWL stock the variable cost ratio is equal to 91.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $22 million in the base year in the intrinsic value calculation for NWL 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 Newell Brands.

Corporate tax rate of 27% is the nominal tax rate for Newell Brands. 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 NWL stock is equal to 0.5%.

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 NWL are equal to 177.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Newell Brands 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 NWL is equal to 5%. 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 - $14145 million for Newell Brands - 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 487 million for Newell Brands 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 Newell Brands at the current share price and the inputted number of shares is $10.4 billion.

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