Intrinsic value of Regions Financial - RF

Previous Close

$19.49

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$19.49

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of RF 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 23.1

 

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, %
  3.90
  4.01
  4.11
  4.20
  4.28
  4.35
  4.42
  4.47
  4.53
  4.57
  4.62
  4.65
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.83
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
Revenue, $m
  5,709
  5,938
  6,182
  6,442
  6,717
  7,010
  7,319
  7,647
  7,993
  8,358
  8,744
  9,151
  9,580
  10,033
  10,509
  11,011
  11,539
  12,094
  12,679
  13,294
  13,941
  14,621
  15,337
  16,089
  16,879
  17,709
  18,582
  19,500
  20,463
  21,476
Variable operating expenses, $m
  782
  814
  847
  883
  920
  960
  1,003
  1,048
  1,095
  1,145
  1,198
  1,254
  1,312
  1,374
  1,440
  1,508
  1,581
  1,657
  1,737
  1,821
  1,910
  2,003
  2,101
  2,204
  2,312
  2,426
  2,546
  2,671
  2,803
  2,942
Fixed operating expenses, $m
  3,023
  3,090
  3,158
  3,227
  3,298
  3,371
  3,445
  3,521
  3,598
  3,677
  3,758
  3,841
  3,925
  4,012
  4,100
  4,190
  4,282
  4,376
  4,473
  4,571
  4,672
  4,774
  4,879
  4,987
  5,096
  5,209
  5,323
  5,440
  5,560
  5,682
Total operating expenses, $m
  3,805
  3,904
  4,005
  4,110
  4,218
  4,331
  4,448
  4,569
  4,693
  4,822
  4,956
  5,095
  5,237
  5,386
  5,540
  5,698
  5,863
  6,033
  6,210
  6,392
  6,582
  6,777
  6,980
  7,191
  7,408
  7,635
  7,869
  8,111
  8,363
  8,624
Operating income, $m
  1,904
  2,035
  2,178
  2,332
  2,499
  2,679
  2,872
  3,078
  3,300
  3,536
  3,788
  4,057
  4,343
  4,647
  4,969
  5,312
  5,676
  6,061
  6,469
  6,902
  7,360
  7,844
  8,356
  8,898
  9,470
  10,075
  10,713
  11,388
  12,100
  12,851
EBITDA, $m
  14,905
  15,558
  16,256
  17,001
  17,796
  18,641
  19,539
  20,491
  21,501
  22,570
  23,700
  24,896
  26,159
  27,493
  28,900
  30,385
  31,951
  33,602
  35,342
  37,176
  39,106
  41,140
  43,281
  45,535
  47,907
  50,403
  53,029
  55,792
  58,699
  61,756
Interest expense (income), $m
  0
  5,702
  5,297
  5,492
  5,700
  5,922
  6,157
  6,406
  6,670
  6,949
  7,244
  7,556
  7,885
  8,232
  8,598
  8,983
  9,389
  9,817
  10,267
  10,741
  11,240
  11,764
  12,316
  12,896
  13,506
  14,147
  14,821
  15,529
  16,273
  17,055
  17,877
Earnings before tax, $m
  -3,798
  -3,262
  -3,315
  -3,368
  -3,423
  -3,478
  -3,534
  -3,591
  -3,649
  -3,708
  -3,767
  -3,828
  -3,889
  -3,951
  -4,014
  -4,077
  -4,141
  -4,206
  -4,272
  -4,338
  -4,405
  -4,472
  -4,540
  -4,608
  -4,677
  -4,746
  -4,815
  -4,885
  -4,955
  -5,025
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
  -3,798
  -3,262
  -3,315
  -3,368
  -3,423
  -3,478
  -3,534
  -3,591
  -3,649
  -3,708
  -3,767
  -3,828
  -3,889
  -3,951
  -4,014
  -4,077
  -4,141
  -4,206
  -4,272
  -4,338
  -4,405
  -4,472
  -4,540
  -4,608
  -4,677
  -4,746
  -4,815
  -4,885
  -4,955
  -5,025

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
  100,163
  104,180
  108,461
  113,014
  117,849
  122,976
  128,406
  134,150
  140,223
  146,636
  153,406
  160,546
  168,075
  176,009
  184,366
  193,167
  202,432
  212,182
  222,441
  233,232
  244,582
  256,517
  269,065
  282,256
  296,121
  310,693
  326,007
  342,098
  359,006
  376,771
Adjusted assets (=assets-cash), $m
  100,163
  104,180
  108,461
  113,014
  117,849
  122,976
  128,406
  134,150
  140,223
  146,636
  153,406
  160,546
  168,075
  176,009
  184,366
  193,167
  202,432
  212,182
  222,441
  233,232
  244,582
  256,517
  269,065
  282,256
  296,121
  310,693
  326,007
  342,098
  359,006
  376,771
Revenue / Adjusted assets
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
  0.057
Average production assets, $m
  130,012
  135,226
  140,782
  146,692
  152,968
  159,623
  166,671
  174,128
  182,010
  190,335
  199,121
  208,390
  218,162
  228,460
  239,308
  250,732
  262,757
  275,413
  288,729
  302,736
  317,468
  332,960
  349,247
  366,369
  384,366
  403,281
  423,158
  444,045
  465,992
  489,050
Working capital, $m
  -107,038
  -111,330
  -115,905
  -120,771
  -125,938
  -131,416
  -137,219
  -143,358
  -149,847
  -156,701
  -163,935
  -171,566
  -179,611
  -188,089
  -197,021
  -206,425
  -216,326
  -226,745
  -237,708
  -249,240
  -261,369
  -274,123
  -287,532
  -301,628
  -316,445
  -332,018
  -348,382
  -365,579
  -383,647
  -402,631
Total debt, $m
  98,094
  101,709
  105,561
  109,659
  114,011
  118,625
  123,512
  128,682
  134,147
  139,920
  146,012
  152,439
  159,215
  166,355
  173,877
  181,797
  190,136
  198,911
  208,144
  217,856
  228,071
  238,812
  250,105
  261,977
  274,456
  287,571
  301,353
  315,836
  331,053
  347,041
Total liabilities, $m
  90,147
  93,762
  97,614
  101,712
  106,064
  110,678
  115,565
  120,735
  126,200
  131,973
  138,065
  144,492
  151,268
  158,408
  165,930
  173,850
  182,189
  190,964
  200,197
  209,909
  220,124
  230,865
  242,158
  254,030
  266,509
  279,624
  293,406
  307,889
  323,106
  339,094
Total equity, $m
  10,016
  10,418
  10,846
  11,301
  11,785
  12,298
  12,841
  13,415
  14,022
  14,664
  15,341
  16,055
  16,808
  17,601
  18,437
  19,317
  20,243
  21,218
  22,244
  23,323
  24,458
  25,652
  26,906
  28,226
  29,612
  31,069
  32,601
  34,210
  35,901
  37,677
Total liabilities and equity, $m
  100,163
  104,180
  108,460
  113,013
  117,849
  122,976
  128,406
  134,150
  140,222
  146,637
  153,406
  160,547
  168,076
  176,009
  184,367
  193,167
  202,432
  212,182
  222,441
  233,232
  244,582
  256,517
  269,064
  282,256
  296,121
  310,693
  326,007
  342,099
  359,007
  376,771
Debt-to-equity ratio
  9.790
  9.760
  9.730
  9.700
  9.670
  9.650
  9.620
  9.590
  9.570
  9.540
  9.520
  9.490
  9.470
  9.450
  9.430
  9.410
  9.390
  9.370
  9.360
  9.340
  9.320
  9.310
  9.300
  9.280
  9.270
  9.260
  9.240
  9.230
  9.220
  9.210
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
  -3,798
  -3,262
  -3,315
  -3,368
  -3,423
  -3,478
  -3,534
  -3,591
  -3,649
  -3,708
  -3,767
  -3,828
  -3,889
  -3,951
  -4,014
  -4,077
  -4,141
  -4,206
  -4,272
  -4,338
  -4,405
  -4,472
  -4,540
  -4,608
  -4,677
  -4,746
  -4,815
  -4,885
  -4,955
  -5,025
Depreciation, amort., depletion, $m
  13,001
  13,523
  14,078
  14,669
  15,297
  15,962
  16,667
  17,413
  18,201
  19,033
  19,912
  20,839
  21,816
  22,846
  23,931
  25,073
  26,276
  27,541
  28,873
  30,274
  31,747
  33,296
  34,925
  36,637
  38,437
  40,328
  42,316
  44,405
  46,599
  48,905
Funds from operations, $m
  9,204
  10,261
  10,764
  11,301
  11,874
  12,484
  13,133
  13,822
  14,552
  15,326
  16,145
  17,011
  17,927
  18,895
  19,917
  20,996
  22,134
  23,335
  24,601
  25,936
  27,342
  28,824
  30,385
  32,029
  33,760
  35,582
  37,500
  39,519
  41,644
  43,880
Change in working capital, $m
  -4,018
  -4,292
  -4,575
  -4,866
  -5,167
  -5,479
  -5,803
  -6,139
  -6,489
  -6,854
  -7,234
  -7,631
  -8,045
  -8,478
  -8,931
  -9,405
  -9,901
  -10,419
  -10,963
  -11,532
  -12,129
  -12,754
  -13,409
  -14,096
  -14,817
  -15,572
  -16,365
  -17,196
  -18,068
  -18,984
Cash from operations, $m
  13,221
  14,553
  15,338
  16,167
  17,041
  17,963
  18,936
  19,961
  21,041
  22,179
  23,379
  24,642
  25,972
  27,373
  28,848
  30,401
  32,035
  33,754
  35,564
  37,468
  39,471
  41,578
  43,794
  46,125
  48,577
  51,155
  53,865
  56,716
  59,712
  62,863
Maintenance CAPEX, $m
  -12,513
  -13,001
  -13,523
  -14,078
  -14,669
  -15,297
  -15,962
  -16,667
  -17,413
  -18,201
  -19,033
  -19,912
  -20,839
  -21,816
  -22,846
  -23,931
  -25,073
  -26,276
  -27,541
  -28,873
  -30,274
  -31,747
  -33,296
  -34,925
  -36,637
  -38,437
  -40,328
  -42,316
  -44,405
  -46,599
New CAPEX, $m
  -4,881
  -5,213
  -5,556
  -5,910
  -6,276
  -6,655
  -7,048
  -7,457
  -7,882
  -8,325
  -8,787
  -9,269
  -9,772
  -10,298
  -10,848
  -11,423
  -12,026
  -12,656
  -13,316
  -14,007
  -14,732
  -15,491
  -16,287
  -17,122
  -17,997
  -18,915
  -19,877
  -20,887
  -21,947
  -23,058
Cash from investing activities, $m
  -17,394
  -18,214
  -19,079
  -19,988
  -20,945
  -21,952
  -23,010
  -24,124
  -25,295
  -26,526
  -27,820
  -29,181
  -30,611
  -32,114
  -33,694
  -35,354
  -37,099
  -38,932
  -40,857
  -42,880
  -45,006
  -47,238
  -49,583
  -52,047
  -54,634
  -57,352
  -60,205
  -63,203
  -66,352
  -69,657
Free cash flow, $m
  -4,173
  -3,662
  -3,741
  -3,821
  -3,904
  -3,988
  -4,075
  -4,163
  -4,254
  -4,346
  -4,442
  -4,539
  -4,639
  -4,741
  -4,846
  -4,954
  -5,064
  -5,177
  -5,293
  -5,412
  -5,535
  -5,660
  -5,789
  -5,921
  -6,057
  -6,197
  -6,340
  -6,487
  -6,639
  -6,794
Issuance/(repayment) of debt, $m
  -7,491
  3,615
  3,853
  4,098
  4,352
  4,614
  4,887
  5,170
  5,465
  5,772
  6,092
  6,427
  6,776
  7,140
  7,522
  7,921
  8,338
  8,775
  9,233
  9,712
  10,215
  10,741
  11,293
  11,872
  12,479
  13,115
  13,782
  14,483
  15,217
  15,988
Issuance/(repurchase) of shares, $m
  14,563
  3,664
  3,743
  3,823
  3,906
  3,991
  4,077
  4,166
  4,256
  4,349
  4,444
  4,542
  4,642
  4,744
  4,850
  4,957
  5,068
  5,181
  5,298
  5,417
  5,540
  5,665
  5,795
  5,927
  6,063
  6,203
  6,347
  6,494
  6,646
  6,802
Cash from financing (excl. dividends), $m  
  7,072
  7,279
  7,596
  7,921
  8,258
  8,605
  8,964
  9,336
  9,721
  10,121
  10,536
  10,969
  11,418
  11,884
  12,372
  12,878
  13,406
  13,956
  14,531
  15,129
  15,755
  16,406
  17,088
  17,799
  18,542
  19,318
  20,129
  20,977
  21,863
  22,790
Total cash flow (excl. dividends), $m
  2,899
  3,617
  3,855
  4,100
  4,354
  4,616
  4,889
  5,173
  5,468
  5,775
  6,095
  6,430
  6,779
  7,144
  7,525
  7,924
  8,342
  8,779
  9,237
  9,717
  10,220
  10,746
  11,299
  11,878
  12,485
  13,121
  13,789
  14,490
  15,224
  15,996
Retained Cash Flow (-), $m
  -14,563
  -3,664
  -3,743
  -3,823
  -3,906
  -3,991
  -4,077
  -4,166
  -4,256
  -4,349
  -4,444
  -4,542
  -4,642
  -4,744
  -4,850
  -4,957
  -5,068
  -5,181
  -5,298
  -5,417
  -5,540
  -5,665
  -5,795
  -5,927
  -6,063
  -6,203
  -6,347
  -6,494
  -6,646
  -6,802
Prev. year cash balance distribution, $m
  749
  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
  -10,915
  -47
  112
  277
  448
  626
  812
  1,007
  1,211
  1,426
  1,651
  1,888
  2,137
  2,399
  2,676
  2,967
  3,274
  3,598
  3,940
  4,300
  4,680
  5,081
  5,504
  5,950
  6,421
  6,918
  7,442
  7,995
  8,578
  9,194
Discount rate, %
  15.70
  16.49
  17.31
  18.17
  19.08
  20.04
  21.04
  22.09
  23.20
  24.36
  25.57
  26.85
  28.19
  29.60
  31.08
  32.64
  34.27
  35.98
  37.78
  39.67
  41.66
  43.74
  45.93
  48.22
  50.63
  53.17
  55.82
  58.62
  61.55
  64.62
PV of cash for distribution, $m
  -9,434
  -35
  69
  142
  187
  209
  213
  204
  185
  161
  135
  109
  85
  64
  46
  32
  22
  14
  9
  5
  3
  2
  1
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  36.6
  26.9
  19.9
  14.8
  11.1
  8.3
  6.3
  4.8
  3.6
  2.8
  2.2
  1.7
  1.3
  1.0
  0.8
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0

Regions Financial Corporation is a financial holding company. The Company conducts its banking operations through Regions Bank, an Alabama state-chartered commercial bank, which is a member of the Federal Reserve System. It operates in three segments: Corporate Bank, which represents its commercial banking functions, including commercial and industrial, commercial real estate and investor real estate lending; Consumer Bank, which represents its branch network, including consumer banking products and services related to residential first mortgages, home equity lines and loans, small business loans, indirect loans, consumer credit cards and other consumer loans, as well as the corresponding deposit relationships, and Wealth Management, which offers individuals, businesses, governmental institutions and non-profit entities a range of solutions to enable transfer of wealth. It provides traditional commercial, retail and mortgage banking services, as well as other financial services.

FINANCIAL RATIOS  of  Regions Financial (RF)

Valuation Ratios
P/E Ratio 20.4
Price to Sales 0
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 12.1
Price to Free Cash Flow 14
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -27.9%
Cap. Spend. - 3 Yr. Gr. Rate 4.7%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 21.1%
Total Debt to Equity 21.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 0.9%
Ret/ On Assets - 3 Yr. Avg. 0.9%
Return On Total Capital 5.8%
Ret/ On T. Cap. - 3 Yr. Avg. 5.3%
Return On Equity 6.9%
Return On Equity - 3 Yr. Avg. 6.8%
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 30.7%
Eff/ Tax Rate - 3 Yr. Avg. 31%
Payout Ratio 32.8%

RF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RF stock intrinsic value calculation we used $5495 million for the last fiscal year's total revenue generated by Regions Financial. The default revenue input number comes from 2017 income statement of Regions Financial. 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 RF stock valuation model: a) initial revenue growth rate of 3.9% 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 15.7%, whose default value for RF is calculated based on our internal credit rating of Regions Financial, 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 Regions Financial.
    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 RF stock the variable cost ratio is equal to 13.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2958 million in the base year in the intrinsic value calculation for RF 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 Regions Financial.

Corporate tax rate of 27% is the nominal tax rate for Regions Financial. 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 RF 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 RF are equal to 2277.2%.

Life of production assets of 10 years is the average useful life of capital assets used in Regions Financial 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 RF is equal to -1874.8%. 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 Regions Financial - 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 1186 million for Regions Financial 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 Regions Financial at the current share price and the inputted number of shares is $23.1 billion.

RELATED COMPANIES Price Int.Val. Rating
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PNFP Pinnacle Finan 65.15 190.90  str.buy
FCB FCB Financial 52.45 7.16  str.sell

COMPANY NEWS

▶ Regions names two new department heads   [Aug-16-18 02:53PM  American City Business Journals]
▶ [$$] 5 Dividend Standouts   [Aug-15-18 04:34PM  Barrons.com]
▶ Regions Bank names new Tampa market executive, commercial banking leader   [Aug-08-18 02:50PM  American City Business Journals]
▶ Former GE executive hired for new diversity role at Regions   [Aug-06-18 12:22PM  American City Business Journals]
▶ Harbert Plaza owner strikes deal with lender, plans renovation   [Aug-01-18 02:31PM  American City Business Journals]
▶ Former Regions Bank executive now a regional leader for National Bank of Commerce   [Jul-30-18 02:46PM  American City Business Journals]
▶ Regions taps company vet for newly created COO role   [Jul-26-18 03:09PM  American City Business Journals]
▶ Regions Bank names Cruzpino market executive for Miami-Dade   [10:50AM  American City Business Journals]
▶ Regions names new Birmingham market executive   [Jul-24-18 12:26PM  American City Business Journals]
▶ Regions Financial: 2Q Earnings Snapshot   [06:25AM  Associated Press]
▶ Charlotte-based Regions Bank exec takes on new role   [08:53AM  American City Business Journals]
▶ Developer tees up office space, hotel to overhaul Midtown site   [Jun-29-18 08:15AM  American City Business Journals]
▶ Regions Bank appoints Houston market leader, plans several new branches   [09:24AM  American City Business Journals]
▶ Regions also withdraws from Business Council of Alabama   [12:01AM  American City Business Journals]
▶ Regions Bank Increases Prime Lending Rate   [Jun-14-18 09:00AM  Business Wire]
▶ New Regions Bank leader in Austin leans heavily on data to fuel growth   [Jun-07-18 09:00AM  American City Business Journals]
▶ Gun-control advocates target Bank of America on Remington deal after Santa Fe shooting   [May-23-18 02:50PM  American City Business Journals]
▶ Top Florida bankers push for regulatory relief pays off   [07:03AM  American City Business Journals]
▶ Regions expands in St. Louis   [May-22-18 11:10AM  American City Business Journals]
▶ Best Defensive Stocks To Buy This May   [May-21-18 04:05PM  Simply Wall St.]
▶ Big banks say their legal costs are tumbling   [May-14-18 09:34AM  American City Business Journals]
▶ Regions Financial exec on marking a new chapter in bank's growth in Charlotte (PHOTOS)   [May-03-18 08:05AM  American City Business Journals]
▶ Regions posts $398M profit, focuses on 'Simplify & Grow' initiative   [Apr-23-18 02:37PM  American City Business Journals]
▶ Company News For Apr 23, 2018   [10:03AM  Zacks]
▶ Regions earns award for workplace environment   [Apr-19-18 03:31PM  American City Business Journals]
▶ April Best Bear Market Stocks   [Apr-16-18 04:05PM  Simply Wall St.]
▶ Leadership shifts at one of Tampa Bays largest banks   [12:20PM  American City Business Journals]
▶ Why one Tampa banker backs a rollback of Dodd-Frank   [06:28AM  American City Business Journals]
▶ Regions Financial Recognized Nationally for Board Diversity   [Apr-13-18 09:00AM  Business Wire]
▶ Exclusive: Regions' longtime Nashville chief to retire this month   [08:39AM  American City Business Journals]
▶ Regions officer elected to national investment board   [Apr-10-18 01:32PM  American City Business Journals]
▶ Regions sells insurance subsidiary to BB&T   [Apr-06-18 11:03AM  American City Business Journals]
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