Intrinsic value of New York Community Bancorp - NYCB

Previous Close

$10.76

  Intrinsic Value

$0.00

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  Rating & Target

str. sell

-100%

Previous close

$10.76

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of NYCB 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 5.3

 

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, %
  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
  1,336
  1,367
  1,402
  1,442
  1,485
  1,533
  1,585
  1,642
  1,703
  1,768
  1,838
  1,913
  1,992
  2,076
  2,166
  2,261
  2,361
  2,468
  2,580
  2,699
  2,824
  2,956
  3,095
  3,241
  3,395
  3,558
  3,729
  3,909
  4,098
  4,297
Variable operating expenses, $m
  122
  124
  128
  131
  135
  140
  144
  149
  155
  161
  167
  174
  181
  189
  197
  206
  215
  225
  235
  246
  257
  269
  282
  295
  309
  324
  339
  356
  373
  391
Fixed operating expenses, $m
  545
  557
  569
  581
  594
  607
  621
  634
  648
  663
  677
  692
  707
  723
  739
  755
  772
  789
  806
  824
  842
  860
  879
  899
  918
  939
  959
  980
  1,002
  1,024
Total operating expenses, $m
  667
  681
  697
  712
  729
  747
  765
  783
  803
  824
  844
  866
  888
  912
  936
  961
  987
  1,014
  1,041
  1,070
  1,099
  1,129
  1,161
  1,194
  1,227
  1,263
  1,298
  1,336
  1,375
  1,415
Operating income, $m
  670
  686
  706
  729
  756
  786
  820
  858
  900
  945
  994
  1,047
  1,104
  1,165
  1,230
  1,300
  1,375
  1,455
  1,539
  1,629
  1,725
  1,826
  1,934
  2,048
  2,168
  2,296
  2,430
  2,573
  2,723
  2,882
EBITDA, $m
  5,672
  5,803
  5,954
  6,125
  6,315
  6,526
  6,755
  7,004
  7,274
  7,563
  7,874
  8,206
  8,561
  8,938
  9,339
  9,764
  10,215
  10,692
  11,197
  11,731
  12,295
  12,890
  13,518
  14,180
  14,878
  15,614
  16,389
  17,205
  18,064
  18,968
Interest expense (income), $m
  382
  2,290
  2,161
  2,194
  2,232
  2,275
  2,322
  2,374
  2,430
  2,491
  2,557
  2,628
  2,703
  2,784
  2,870
  2,961
  3,057
  3,160
  3,268
  3,383
  3,504
  3,633
  3,768
  3,910
  4,060
  4,218
  4,385
  4,561
  4,745
  4,940
  5,144
Earnings before tax, $m
  -1,621
  -1,475
  -1,489
  -1,503
  -1,519
  -1,536
  -1,554
  -1,572
  -1,592
  -1,612
  -1,634
  -1,657
  -1,680
  -1,705
  -1,731
  -1,757
  -1,785
  -1,814
  -1,844
  -1,875
  -1,908
  -1,941
  -1,976
  -2,013
  -2,050
  -2,090
  -2,130
  -2,172
  -2,216
  -2,262
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
  -1,621
  -1,475
  -1,489
  -1,503
  -1,519
  -1,536
  -1,554
  -1,572
  -1,592
  -1,612
  -1,634
  -1,657
  -1,680
  -1,705
  -1,731
  -1,757
  -1,785
  -1,814
  -1,844
  -1,875
  -1,908
  -1,941
  -1,976
  -2,013
  -2,050
  -2,090
  -2,130
  -2,172
  -2,216
  -2,262

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
  29,693
  30,376
  31,157
  32,033
  33,005
  34,070
  35,230
  36,486
  37,840
  39,292
  40,845
  42,503
  44,268
  46,144
  48,134
  50,244
  52,477
  54,838
  57,333
  59,967
  62,747
  65,678
  68,768
  72,024
  75,453
  79,063
  82,863
  86,861
  91,068
  95,493
Adjusted assets (=assets-cash), $m
  29,693
  30,376
  31,157
  32,033
  33,005
  34,070
  35,230
  36,486
  37,840
  39,292
  40,845
  42,503
  44,268
  46,144
  48,134
  50,244
  52,477
  54,838
  57,333
  59,967
  62,747
  65,678
  68,768
  72,024
  75,453
  79,063
  82,863
  86,861
  91,068
  95,493
Revenue / Adjusted assets
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
  0.045
Average production assets, $m
  50,019
  51,170
  52,485
  53,961
  55,597
  57,392
  59,347
  61,462
  63,742
  66,188
  68,805
  71,598
  74,571
  77,731
  81,084
  84,637
  88,399
  92,376
  96,579
  101,017
  105,699
  110,637
  115,842
  121,326
  127,102
  133,184
  139,585
  146,320
  153,407
  160,860
Working capital, $m
  -40,702
  -41,638
  -42,708
  -43,910
  -45,241
  -46,701
  -48,292
  -50,014
  -51,868
  -53,859
  -55,989
  -58,261
  -60,680
  -63,252
  -65,980
  -68,872
  -71,932
  -75,169
  -78,589
  -82,200
  -86,010
  -90,028
  -94,264
  -98,726
  -103,426
  -108,375
  -113,584
  -119,065
  -124,831
  -130,896
Total debt, $m
  40,022
  40,637
  41,340
  42,128
  43,002
  43,961
  45,006
  46,136
  47,354
  48,661
  50,059
  51,551
  53,140
  54,828
  56,619
  58,518
  60,527
  62,652
  64,898
  67,269
  69,771
  72,409
  75,190
  78,120
  81,206
  84,455
  87,875
  91,473
  95,259
  99,242
Total liabilities, $m
  26,724
  27,339
  28,041
  28,830
  29,704
  30,663
  31,707
  32,838
  34,056
  35,363
  36,761
  38,253
  39,841
  41,530
  43,321
  45,219
  47,229
  49,354
  51,600
  53,971
  56,472
  59,110
  61,891
  64,821
  67,907
  71,156
  74,576
  78,175
  81,961
  85,943
Total equity, $m
  2,969
  3,038
  3,116
  3,203
  3,300
  3,407
  3,523
  3,649
  3,784
  3,929
  4,085
  4,250
  4,427
  4,614
  4,813
  5,024
  5,248
  5,484
  5,733
  5,997
  6,275
  6,568
  6,877
  7,202
  7,545
  7,906
  8,286
  8,686
  9,107
  9,549
Total liabilities and equity, $m
  29,693
  30,377
  31,157
  32,033
  33,004
  34,070
  35,230
  36,487
  37,840
  39,292
  40,846
  42,503
  44,268
  46,144
  48,134
  50,243
  52,477
  54,838
  57,333
  59,968
  62,747
  65,678
  68,768
  72,023
  75,452
  79,062
  82,862
  86,861
  91,068
  95,492
Debt-to-equity ratio
  13.480
  13.380
  13.270
  13.150
  13.030
  12.900
  12.770
  12.640
  12.510
  12.380
  12.260
  12.130
  12.000
  11.880
  11.760
  11.650
  11.530
  11.430
  11.320
  11.220
  11.120
  11.020
  10.930
  10.850
  10.760
  10.680
  10.600
  10.530
  10.460
  10.390
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
  -1,621
  -1,475
  -1,489
  -1,503
  -1,519
  -1,536
  -1,554
  -1,572
  -1,592
  -1,612
  -1,634
  -1,657
  -1,680
  -1,705
  -1,731
  -1,757
  -1,785
  -1,814
  -1,844
  -1,875
  -1,908
  -1,941
  -1,976
  -2,013
  -2,050
  -2,090
  -2,130
  -2,172
  -2,216
  -2,262
Depreciation, amort., depletion, $m
  5,002
  5,117
  5,248
  5,396
  5,560
  5,739
  5,935
  6,146
  6,374
  6,619
  6,881
  7,160
  7,457
  7,773
  8,108
  8,464
  8,840
  9,238
  9,658
  10,102
  10,570
  11,064
  11,584
  12,133
  12,710
  13,318
  13,958
  14,632
  15,341
  16,086
Funds from operations, $m
  3,381
  3,642
  3,760
  3,893
  4,041
  4,203
  4,381
  4,574
  4,782
  5,006
  5,246
  5,503
  5,777
  6,068
  6,378
  6,707
  7,055
  7,424
  7,814
  8,226
  8,662
  9,122
  9,608
  10,120
  10,660
  11,229
  11,828
  12,460
  13,124
  13,824
Change in working capital, $m
  -798
  -936
  -1,070
  -1,201
  -1,331
  -1,461
  -1,591
  -1,722
  -1,855
  -1,991
  -2,130
  -2,272
  -2,419
  -2,571
  -2,728
  -2,891
  -3,061
  -3,237
  -3,420
  -3,611
  -3,810
  -4,018
  -4,235
  -4,463
  -4,700
  -4,949
  -5,209
  -5,481
  -5,766
  -6,065
Cash from operations, $m
  4,179
  4,578
  4,830
  5,094
  5,372
  5,664
  5,972
  6,296
  6,637
  6,997
  7,376
  7,775
  8,196
  8,640
  9,106
  9,598
  10,116
  10,660
  11,234
  11,837
  12,472
  13,141
  13,843
  14,582
  15,360
  16,177
  17,037
  17,941
  18,891
  19,889
Maintenance CAPEX, $m
  -4,903
  -5,002
  -5,117
  -5,248
  -5,396
  -5,560
  -5,739
  -5,935
  -6,146
  -6,374
  -6,619
  -6,881
  -7,160
  -7,457
  -7,773
  -8,108
  -8,464
  -8,840
  -9,238
  -9,658
  -10,102
  -10,570
  -11,064
  -11,584
  -12,133
  -12,710
  -13,318
  -13,958
  -14,632
  -15,341
New CAPEX, $m
  -994
  -1,150
  -1,315
  -1,476
  -1,636
  -1,795
  -1,955
  -2,116
  -2,279
  -2,446
  -2,617
  -2,793
  -2,973
  -3,160
  -3,353
  -3,553
  -3,761
  -3,978
  -4,203
  -4,438
  -4,682
  -4,938
  -5,205
  -5,484
  -5,776
  -6,081
  -6,401
  -6,736
  -7,086
  -7,454
Cash from investing activities, $m
  -5,897
  -6,152
  -6,432
  -6,724
  -7,032
  -7,355
  -7,694
  -8,051
  -8,425
  -8,820
  -9,236
  -9,674
  -10,133
  -10,617
  -11,126
  -11,661
  -12,225
  -12,818
  -13,441
  -14,096
  -14,784
  -15,508
  -16,269
  -17,068
  -17,909
  -18,791
  -19,719
  -20,694
  -21,718
  -22,795
Free cash flow, $m
  -1,717
  -1,575
  -1,602
  -1,631
  -1,660
  -1,691
  -1,722
  -1,755
  -1,788
  -1,824
  -1,860
  -1,898
  -1,937
  -1,977
  -2,020
  -2,064
  -2,110
  -2,157
  -2,207
  -2,258
  -2,312
  -2,367
  -2,425
  -2,486
  -2,549
  -2,614
  -2,682
  -2,754
  -2,828
  -2,905
Issuance/(repayment) of debt, $m
  -2,393
  615
  703
  789
  874
  959
  1,044
  1,130
  1,218
  1,307
  1,398
  1,492
  1,589
  1,688
  1,791
  1,898
  2,010
  2,125
  2,245
  2,371
  2,502
  2,638
  2,781
  2,930
  3,086
  3,249
  3,420
  3,599
  3,786
  3,982
Issuance/(repurchase) of shares, $m
  4,605
  1,544
  1,567
  1,591
  1,616
  1,642
  1,670
  1,698
  1,727
  1,758
  1,789
  1,822
  1,857
  1,892
  1,930
  1,968
  2,008
  2,050
  2,093
  2,139
  2,186
  2,234
  2,285
  2,338
  2,393
  2,451
  2,510
  2,572
  2,637
  2,704
Cash from financing (excl. dividends), $m  
  2,212
  2,159
  2,270
  2,380
  2,490
  2,601
  2,714
  2,828
  2,945
  3,065
  3,187
  3,314
  3,446
  3,580
  3,721
  3,866
  4,018
  4,175
  4,338
  4,510
  4,688
  4,872
  5,066
  5,268
  5,479
  5,700
  5,930
  6,171
  6,423
  6,686
Total cash flow (excl. dividends), $m
  495
  584
  667
  749
  830
  911
  992
  1,073
  1,156
  1,241
  1,328
  1,417
  1,509
  1,603
  1,701
  1,803
  1,908
  2,018
  2,132
  2,251
  2,376
  2,505
  2,641
  2,782
  2,931
  3,085
  3,248
  3,417
  3,595
  3,782
Retained Cash Flow (-), $m
  -4,605
  -1,544
  -1,567
  -1,591
  -1,616
  -1,642
  -1,670
  -1,698
  -1,727
  -1,758
  -1,789
  -1,822
  -1,857
  -1,892
  -1,930
  -1,968
  -2,008
  -2,050
  -2,093
  -2,139
  -2,186
  -2,234
  -2,285
  -2,338
  -2,393
  -2,451
  -2,510
  -2,572
  -2,637
  -2,704
Prev. year cash balance distribution, $m
  15
  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
  37
  37
  38
  39
  40
  42
  43
  44
  46
  48
  50
  51
  54
  56
  58
  61
  63
  66
  69
  72
  76
  79
  83
  87
  91
  95
  100
  104
  109
  115
Cash available for distribution, $m
  -4,095
  -960
  -900
  -842
  -786
  -732
  -678
  -624
  -571
  -517
  -462
  -406
  -348
  -289
  -228
  -165
  -100
  -32
  39
  113
  190
  271
  356
  444
  537
  635
  737
  845
  958
  1,077
Discount rate, %
  15.50
  16.28
  17.09
  17.94
  18.84
  19.78
  20.77
  21.81
  22.90
  24.05
  25.25
  26.51
  27.84
  29.23
  30.69
  32.22
  33.83
  35.53
  37.30
  39.17
  41.13
  43.18
  45.34
  47.61
  49.99
  52.49
  55.11
  57.87
  60.76
  63.80
PV of cash for distribution, $m
  -3,546
  -710
  -560
  -435
  -332
  -248
  -181
  -129
  -89
  -60
  -39
  -24
  -14
  -8
  -4
  -2
  -1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  32.9
  21.7
  14.4
  9.5
  6.4
  4.3
  2.9
  2.0
  1.3
  0.9
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

New York Community Bancorp, Inc. is a multi-bank holding company. The Company operates through its subsidiaries, New York Community Bank (the Community Bank) and New York Commercial Bank (the Commercial Bank) (collectively, the Banks). The Company's operations are divided into two segments: Banking Operations and Residential Mortgage Banking. The Banking Operations segment serves consumers and businesses by offering and servicing a range of loan and deposit products and other financial services. The Residential Mortgage Banking segment originates, aggregates, sells and services one- to four-family mortgage loans. Mortgage loan products consist of agency-conforming, fixed and adjustable-rate loans and, to a lesser extent, jumbo loans, for the purpose of purchasing or refinancing one- to four-family homes. The Community Bank is a chartered savings bank. As of December 31, 2016, the Community Bank had 225 branches operating through seven local divisions.

FINANCIAL RATIOS  of  New York Community Bancorp (NYCB)

Valuation Ratios
P/E Ratio 10.6
Price to Sales 0
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 6.9
Price to Free Cash Flow 7.8
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 140%
Cap. Spend. - 3 Yr. Gr. Rate 17.8%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 32.8%
Total Debt to Equity 32.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 1.5%
Ret/ On Assets - 3 Yr. Avg. 1.2%
Return On Total Capital 6.1%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 8.2%
Return On Equity - 3 Yr. Avg. 5.3%
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 36.3%
Eff/ Tax Rate - 3 Yr. Avg. 46%
Payout Ratio 66.9%

NYCB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NYCB stock intrinsic value calculation we used $1310 million for the last fiscal year's total revenue generated by New York Community Bancorp. The default revenue input number comes from 2017 income statement of New York Community Bancorp. 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 NYCB 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 15.5%, whose default value for NYCB is calculated based on our internal credit rating of New York Community Bancorp, 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 New York Community Bancorp.
    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 NYCB stock the variable cost ratio is equal to 9.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $533 million in the base year in the intrinsic value calculation for NYCB 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 New York Community Bancorp.

Corporate tax rate of 27% is the nominal tax rate for New York Community Bancorp. 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 NYCB stock is equal to 2.8%.

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 NYCB are equal to 3743.4%.

Life of production assets of 10 years is the average useful life of capital assets used in New York Community Bancorp 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 NYCB is equal to -3046.1%. 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 - $0 million for New York Community Bancorp - 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 489 million for New York Community Bancorp 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 New York Community Bancorp at the current share price and the inputted number of shares is $5.3 billion.

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COMPANY NEWS

▶ New York Community Bancorp: 2Q Earnings Snapshot   [Jul-25-18 07:27AM  Associated Press]
▶ 5 Bank Stocks That Pay Big Dividends to Shareholders   [Jul-24-18 10:31AM  Kiplinger]
▶ New York Community Bancorp: 1Q Earnings Snapshot   [Apr-25-18 07:24AM  Associated Press]
▶ Edited Transcript of NYCB presentation 6-Mar-17 4:35pm GMT   [Apr-11-18 02:48AM  Thomson Reuters StreetEvents]
▶ 3 Bank Stocks to Put on Your Radar Now   [Mar-26-18 08:11AM  Motley Fool]
▶ 3 Great Stocks to Buy With Your Tax Refund   [Mar-22-18 08:07AM  Motley Fool]
▶ How Looser Banking Regulations Could Affect Investors   [Mar-20-18 03:52PM  Motley Fool]
▶ New York Community Bancorp Could Have a Great 2018   [Feb-07-18 10:55PM  Motley Fool]
▶ New York Community Bancorp posts 4Q profit   [07:29AM  Associated Press]
▶ 4 Big Bank Stocks That Trade Below Book Value   [Nov-01-17 05:17PM  Motley Fool]
▶ New York Community Bancorp posts 3Q profit   [Oct-25-17 07:13AM  Associated Press]
▶ Capital Allocation: Buybacks, Dividends, and More   [Oct-11-17 08:58AM  Motley Fool]
▶ 5 Highest-Yielding Big Bank Stocks   [Oct-10-17 10:11AM  Motley Fool]
▶ Stocks That Fell to 3-Year Lows Last Week   [Sep-08-17 11:07PM  GuruFocus.com]
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