Intrinsic value of Bank of The Ozarks - OZRK

Previous Close

$41.24

  Intrinsic Value

$108.88

stock screener

  Rating & Target

str. buy

+164%

Previous close

$41.24

 
Intrinsic value

$108.88

 
Up/down potential

+164%

 
Rating

str. buy

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

We calculate the intrinsic value of OZRK 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 2016), $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 5.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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, %
  45.40
  41.36
  37.72
  34.45
  31.51
  28.86
  26.47
  24.32
  22.39
  20.65
  19.09
  17.68
  16.41
  15.27
  14.24
  13.32
  12.49
  11.74
  11.06
  10.46
  9.91
  9.42
  8.98
  8.58
  8.22
  7.90
  7.61
  7.35
  7.11
  6.90
Revenue, $m
  989
  1,398
  1,925
  2,588
  3,403
  4,386
  5,546
  6,896
  8,439
  10,182
  12,126
  14,269
  16,611
  19,147
  21,875
  24,788
  27,883
  31,156
  34,603
  38,221
  42,009
  45,967
  50,094
  54,393
  58,865
  63,515
  68,349
  73,372
  78,592
  84,017
Variable operating expenses, $m
  297
  417
  572
  766
  1,005
  1,293
  1,634
  2,030
  2,482
  2,993
  3,556
  4,185
  4,871
  5,615
  6,415
  7,269
  8,177
  9,137
  10,148
  11,209
  12,320
  13,480
  14,691
  15,951
  17,263
  18,627
  20,044
  21,518
  23,048
  24,639
Fixed operating expenses, $m
  50
  51
  52
  53
  55
  56
  57
  58
  60
  61
  62
  64
  65
  66
  68
  69
  71
  72
  74
  76
  77
  79
  81
  83
  84
  86
  88
  90
  92
  94
Total operating expenses, $m
  347
  468
  624
  819
  1,060
  1,349
  1,691
  2,088
  2,542
  3,054
  3,618
  4,249
  4,936
  5,681
  6,483
  7,338
  8,248
  9,209
  10,222
  11,285
  12,397
  13,559
  14,772
  16,034
  17,347
  18,713
  20,132
  21,608
  23,140
  24,733
Operating income, $m
  641
  929
  1,301
  1,768
  2,343
  3,036
  3,856
  4,808
  5,898
  7,128
  8,508
  10,021
  11,675
  13,466
  15,392
  17,449
  19,635
  21,946
  24,381
  26,936
  29,612
  32,407
  35,322
  38,358
  41,518
  44,802
  48,217
  51,765
  55,452
  59,284
EBITDA, $m
  2,749
  3,905
  5,397
  7,273
  9,580
  12,359
  15,645
  19,462
  23,832
  28,765
  34,265
  40,332
  46,960
  54,139
  61,857
  70,103
  78,863
  88,127
  97,884
  108,126
  118,849
  130,050
  141,732
  153,899
  166,558
  179,722
  193,404
  207,622
  222,398
  237,754
Interest expense (income), $m
  53
  863
  1,113
  1,564
  2,147
  2,879
  3,780
  4,865
  6,147
  7,637
  9,342
  11,268
  13,414
  15,782
  18,368
  21,170
  24,182
  27,400
  30,819
  34,433
  38,241
  42,238
  46,422
  50,793
  55,352
  60,100
  65,040
  70,176
  75,515
  81,064
  86,829
Earnings before tax, $m
  -222
  -183
  -264
  -379
  -536
  -744
  -1,009
  -1,339
  -1,740
  -2,214
  -2,760
  -3,393
  -4,107
  -4,903
  -5,778
  -6,733
  -7,765
  -8,872
  -10,053
  -11,304
  -12,625
  -14,015
  -15,471
  -16,993
  -18,582
  -20,237
  -21,960
  -23,751
  -25,612
  -27,545
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
  -222
  -183
  -264
  -379
  -536
  -744
  -1,009
  -1,339
  -1,740
  -2,214
  -2,760
  -3,393
  -4,107
  -4,903
  -5,778
  -6,733
  -7,765
  -8,872
  -10,053
  -11,304
  -12,625
  -14,015
  -15,471
  -16,993
  -18,582
  -20,237
  -21,960
  -23,751
  -25,612
  -27,545

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
  22,471
  31,765
  43,748
  58,820
  77,352
  99,672
  126,056
  156,716
  191,806
  231,418
  275,588
  324,306
  377,525
  435,170
  497,148
  563,358
  633,700
  708,081
  786,422
  868,662
  954,761
  1,044,704
  1,138,503
  1,236,193
  1,337,840
  1,443,534
  1,553,390
  1,667,553
  1,786,188
  1,909,487
Adjusted assets (=assets-cash), $m
  22,471
  31,765
  43,748
  58,820
  77,352
  99,672
  126,056
  156,716
  191,806
  231,418
  275,588
  324,306
  377,525
  435,170
  497,148
  563,358
  633,700
  708,081
  786,422
  868,662
  954,761
  1,044,704
  1,138,503
  1,236,193
  1,337,840
  1,443,534
  1,553,390
  1,667,553
  1,786,188
  1,909,487
Revenue / Adjusted assets
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
  0.044
Average production assets, $m
  21,002
  29,689
  40,889
  54,976
  72,297
  93,158
  117,818
  146,475
  179,272
  216,294
  257,578
  303,112
  352,853
  406,731
  464,658
  526,541
  592,286
  661,807
  735,028
  811,893
  892,365
  976,431
  1,064,099
  1,155,406
  1,250,410
  1,349,196
  1,451,873
  1,558,575
  1,669,457
  1,784,698
Working capital, $m
  -22,351
  -31,595
  -43,514
  -58,506
  -76,939
  -99,140
  -125,383
  -155,880
  -190,783
  -230,183
  -274,117
  -322,576
  -375,511
  -432,848
  -494,495
  -560,352
  -630,319
  -704,303
  -782,226
  -864,026
  -949,666
  -1,039,130
  -1,132,428
  -1,229,597
  -1,330,701
  -1,435,831
  -1,545,102
  -1,658,655
  -1,776,657
  -1,899,298
Total debt, $m
  20,607
  28,972
  39,756
  53,321
  70,000
  90,088
  113,833
  141,428
  173,009
  208,659
  248,412
  292,259
  340,156
  392,036
  447,816
  507,406
  570,713
  637,656
  708,163
  782,179
  859,668
  940,617
  1,025,036
  1,112,957
  1,204,439
  1,299,563
  1,398,435
  1,501,181
  1,607,953
  1,718,921
Total liabilities, $m
  20,224
  28,588
  39,373
  52,938
  69,617
  89,705
  113,450
  141,045
  172,626
  208,276
  248,029
  291,875
  339,773
  391,653
  447,433
  507,022
  570,330
  637,273
  707,780
  781,795
  859,285
  940,234
  1,024,652
  1,112,574
  1,204,056
  1,299,180
  1,398,051
  1,500,798
  1,607,569
  1,718,538
Total equity, $m
  2,247
  3,176
  4,375
  5,882
  7,735
  9,967
  12,606
  15,672
  19,181
  23,142
  27,559
  32,431
  37,753
  43,517
  49,715
  56,336
  63,370
  70,808
  78,642
  86,866
  95,476
  104,470
  113,850
  123,619
  133,784
  144,353
  155,339
  166,755
  178,619
  190,949
Total liabilities and equity, $m
  22,471
  31,764
  43,748
  58,820
  77,352
  99,672
  126,056
  156,717
  191,807
  231,418
  275,588
  324,306
  377,526
  435,170
  497,148
  563,358
  633,700
  708,081
  786,422
  868,661
  954,761
  1,044,704
  1,138,502
  1,236,193
  1,337,840
  1,443,533
  1,553,390
  1,667,553
  1,786,188
  1,909,487
Debt-to-equity ratio
  9.170
  9.120
  9.090
  9.070
  9.050
  9.040
  9.030
  9.020
  9.020
  9.020
  9.010
  9.010
  9.010
  9.010
  9.010
  9.010
  9.010
  9.010
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
  9.000
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
  -222
  -183
  -264
  -379
  -536
  -744
  -1,009
  -1,339
  -1,740
  -2,214
  -2,760
  -3,393
  -4,107
  -4,903
  -5,778
  -6,733
  -7,765
  -8,872
  -10,053
  -11,304
  -12,625
  -14,015
  -15,471
  -16,993
  -18,582
  -20,237
  -21,960
  -23,751
  -25,612
  -27,545
Depreciation, amort., depletion, $m
  2,108
  2,976
  4,096
  5,505
  7,237
  9,323
  11,789
  14,655
  17,934
  21,637
  25,758
  30,311
  35,285
  40,673
  46,466
  52,654
  59,229
  66,181
  73,503
  81,189
  89,237
  97,643
  106,410
  115,541
  125,041
  134,920
  145,187
  155,858
  166,946
  178,470
Funds from operations, $m
  1,886
  2,793
  3,833
  5,126
  6,701
  8,579
  10,780
  13,315
  16,195
  19,422
  22,998
  26,918
  31,178
  35,770
  40,687
  45,921
  51,464
  57,308
  63,450
  69,885
  76,611
  83,628
  90,939
  98,547
  106,459
  114,682
  123,227
  132,107
  141,334
  150,924
Change in working capital, $m
  -6,979
  -9,244
  -11,919
  -14,991
  -18,433
  -22,201
  -26,243
  -30,497
  -34,903
  -39,400
  -43,934
  -48,458
  -52,935
  -57,337
  -61,647
  -65,857
  -69,967
  -73,984
  -77,923
  -81,801
  -85,640
  -89,464
  -93,298
  -97,169
  -101,104
  -105,130
  -109,271
  -113,553
  -118,002
  -122,641
Cash from operations, $m
  8,865
  12,037
  15,752
  20,118
  25,134
  30,781
  37,022
  43,813
  51,098
  58,822
  66,932
  75,376
  84,113
  93,108
  102,335
  111,778
  121,430
  131,293
  141,373
  151,686
  162,251
  173,092
  184,237
  195,717
  207,563
  219,812
  232,498
  245,660
  259,336
  273,565
Maintenance CAPEX, $m
  -1,445
  -2,100
  -2,969
  -4,089
  -5,498
  -7,230
  -9,316
  -11,782
  -14,647
  -17,927
  -21,629
  -25,758
  -30,311
  -35,285
  -40,673
  -46,466
  -52,654
  -59,229
  -66,181
  -73,503
  -81,189
  -89,237
  -97,643
  -106,410
  -115,541
  -125,041
  -134,920
  -145,187
  -155,858
  -166,946
New CAPEX, $m
  -6,555
  -8,687
  -11,200
  -14,087
  -17,321
  -20,862
  -24,659
  -28,657
  -32,797
  -37,023
  -41,283
  -45,534
  -49,741
  -53,878
  -57,928
  -61,883
  -65,745
  -69,520
  -73,221
  -76,865
  -80,472
  -84,065
  -87,669
  -91,306
  -95,004
  -98,786
  -102,678
  -106,702
  -110,882
  -115,241
Cash from investing activities, $m
  -8,000
  -10,787
  -14,169
  -18,176
  -22,819
  -28,092
  -33,975
  -40,439
  -47,444
  -54,950
  -62,912
  -71,292
  -80,052
  -89,163
  -98,601
  -108,349
  -118,399
  -128,749
  -139,402
  -150,368
  -161,661
  -173,302
  -185,312
  -197,716
  -210,545
  -223,827
  -237,598
  -251,889
  -266,740
  -282,187
Free cash flow, $m
  865
  1,250
  1,583
  1,942
  2,316
  2,689
  3,047
  3,374
  3,653
  3,872
  4,019
  4,084
  4,061
  3,945
  3,734
  3,429
  3,031
  2,544
  1,971
  1,318
  589
  -210
  -1,075
  -2,000
  -2,981
  -4,015
  -5,099
  -6,229
  -7,404
  -8,622
Issuance/(repayment) of debt, $m
  4,623
  8,365
  10,785
  13,565
  16,679
  20,088
  23,745
  27,595
  31,581
  35,650
  39,753
  43,846
  47,897
  51,880
  55,780
  59,589
  63,308
  66,943
  70,507
  74,016
  77,489
  80,949
  84,419
  87,922
  91,482
  95,124
  98,871
  102,746
  106,772
  110,969
Issuance/(repurchase) of shares, $m
  2,495
  1,113
  1,462
  1,886
  2,389
  2,976
  3,648
  4,405
  5,249
  6,176
  7,177
  8,265
  9,429
  10,667
  11,976
  13,354
  14,799
  16,310
  17,887
  19,528
  21,235
  23,009
  24,851
  26,762
  28,747
  30,807
  32,946
  35,167
  37,475
  39,875
Cash from financing (excl. dividends), $m  
  7,118
  9,478
  12,247
  15,451
  19,068
  23,064
  27,393
  32,000
  36,830
  41,826
  46,930
  52,111
  57,326
  62,547
  67,756
  72,943
  78,107
  83,253
  88,394
  93,544
  98,724
  103,958
  109,270
  114,684
  120,229
  125,931
  131,817
  137,913
  144,247
  150,844
Total cash flow (excl. dividends), $m
  7,983
  10,728
  13,829
  17,392
  21,384
  25,754
  30,440
  35,374
  40,483
  45,698
  50,949
  56,196
  61,387
  66,492
  71,490
  76,372
  81,138
  85,797
  90,365
  94,862
  99,314
  103,748
  108,195
  112,684
  117,248
  121,915
  126,718
  131,684
  136,843
  142,223
Retained Cash Flow (-), $m
  -2,495
  -1,113
  -1,462
  -1,886
  -2,389
  -2,976
  -3,648
  -4,405
  -5,249
  -6,176
  -7,177
  -8,265
  -9,429
  -10,667
  -11,976
  -13,354
  -14,799
  -16,310
  -17,887
  -19,528
  -21,235
  -23,009
  -24,851
  -26,762
  -28,747
  -30,807
  -32,946
  -35,167
  -37,475
  -39,875
Prev. year cash balance distribution, $m
  26
  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
  11
  16
  22
  31
  41
  54
  70
  89
  110
  135
  163
  194
  228
  266
  306
  350
  397
  446
  498
  554
  612
  672
  735
  802
  870
  942
  1,016
  1,094
  1,174
  1,257
Cash available for distribution, $m
  5,514
  9,615
  12,367
  15,507
  18,994
  22,778
  26,792
  30,968
  35,235
  39,523
  43,772
  47,931
  51,958
  55,825
  59,514
  63,018
  66,339
  69,487
  72,478
  75,334
  78,078
  80,739
  83,344
  85,922
  88,501
  91,109
  93,772
  96,517
  99,368
  102,347
Discount rate, %
  9.90
  10.40
  10.91
  11.46
  12.03
  12.64
  13.27
  13.93
  14.63
  15.36
  16.13
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.83
  25.02
  26.27
  27.58
  28.96
  30.41
  31.93
  33.52
  35.20
  36.96
  38.81
  40.75
PV of cash for distribution, $m
  5,017
  7,889
  9,064
  10,047
  10,762
  11,155
  11,202
  10,910
  10,313
  9,470
  8,452
  7,335
  6,191
  5,083
  4,061
  3,155
  2,384
  1,751
  1,250
  866
  583
  380
  240
  147
  87
  50
  27
  14
  7
  4
Current shareholders' claim on cash, %
  50.0
  33.4
  22.9
  16.0
  11.4
  8.2
  6.0
  4.5
  3.3
  2.5
  1.9
  1.5
  1.1
  0.9
  0.7
  0.6
  0.4
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0

Bank of the Ozarks, Inc. is a state chartered bank that provides retail and commercial banking services. Its deposit services include checking, savings, money market, time deposit and individual retirement accounts. Its loan services include various types of real estate, consumer, commercial, industrial and agricultural loans and various leasing services. It also provides mortgage lending; treasury management services for businesses, individuals and non-profit and governmental entities, including wholesale lock box services; remote deposit capture services; trust and wealth management services for businesses, individuals and non-profit and governmental entities, including financial planning, money management, custodial services and corporate trust services; real estate appraisals; automated teller machines (ATMs); telephone banking; online and mobile banking services, including electronic bill pay and consumer mobile deposits, and debit cards, gift cards and safe deposit boxes.

FINANCIAL RATIOS  of  Bank of The Ozarks (OZRK)

Valuation Ratios
P/E Ratio 18.5
Price to Sales 0
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 20.7
Price to Free Cash Flow 25.4
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 164.7%
Cap. Spend. - 3 Yr. Gr. Rate 35.1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 16%
Total Debt to Equity 16%
Interest Coverage 9
Management Effectiveness
Return On Assets 2.1%
Ret/ On Assets - 3 Yr. Avg. 2.3%
Return On Total Capital 10.6%
Ret/ On T. Cap. - 3 Yr. Avg. 11%
Return On Equity 12.7%
Return On Equity - 3 Yr. Avg. 14.5%
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. 33.8%
Payout Ratio 23%

OZRK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the OZRK stock intrinsic value calculation we used $680 million for the last fiscal year's total revenue generated by Bank of The Ozarks. The default revenue input number comes from 2016 income statement of Bank of The Ozarks. 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 OZRK stock valuation model: a) initial revenue growth rate of 45.4% 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 9.9%, whose default value for OZRK is calculated based on our internal credit rating of Bank of The Ozarks, 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 Bank of The Ozarks.
    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 OZRK stock the variable cost ratio is equal to 30.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $49 million in the base year in the intrinsic value calculation for OZRK 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 Bank of The Ozarks.

Corporate tax rate of 27% is the nominal tax rate for Bank of The Ozarks. 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 OZRK stock is equal to 1.6%.

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 OZRK are equal to 2124.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Bank of The Ozarks 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 OZRK is equal to -2260.6%. 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 Bank of The Ozarks - 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 121 million for Bank of The Ozarks 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 Bank of The Ozarks at the current share price and the inputted number of shares is $5.0 billion.

RELATED COMPANIES Price Int.Val. Rating
SFNC Simmons First 31.20 14.42  sell
HOMB Home BancShare 23.27 1.14  str.sell
BOKF BOK Financial 98.15 24.36  str.sell
IBKC IBERIABANK 82.85 26.90  str.sell
CHCO City Holding 79.12 0.48  str.sell
HBHC Hancock Holdin 51.65 51.60  hold
UBSI United Banksha 36.50 54.27  str.buy
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.