Intrinsic value of Republic Services - RSG

Previous Close

$68.56

  Intrinsic Value

$44.14

stock screener

  Rating & Target

sell

-36%

Previous close

$68.56

 
Intrinsic value

$44.14

 
Up/down potential

-36%

 
Rating

sell

We calculate the intrinsic value of RSG 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, %
  7.00
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.77
  5.70
  5.63
  5.56
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
Revenue, $m
  10,745
  11,476
  12,235
  13,025
  13,848
  14,704
  15,595
  16,524
  17,492
  18,503
  19,557
  20,657
  21,807
  23,008
  24,264
  25,577
  26,950
  28,388
  29,892
  31,468
  33,118
  34,846
  36,657
  38,555
  40,544
  42,630
  44,816
  47,109
  49,514
  52,036
Variable operating expenses, $m
  8,494
  8,994
  9,514
  10,054
  10,616
  11,202
  11,811
  12,447
  13,109
  13,800
  13,375
  14,128
  14,914
  15,735
  16,594
  17,492
  18,432
  19,415
  20,444
  21,521
  22,650
  23,832
  25,070
  26,368
  27,728
  29,155
  30,650
  32,218
  33,863
  35,588
Fixed operating expenses, $m
  376
  384
  393
  401
  410
  419
  429
  438
  448
  457
  468
  478
  488
  499
  510
  521
  533
  544
  556
  569
  581
  594
  607
  620
  634
  648
  662
  677
  692
  707
Total operating expenses, $m
  8,870
  9,378
  9,907
  10,455
  11,026
  11,621
  12,240
  12,885
  13,557
  14,257
  13,843
  14,606
  15,402
  16,234
  17,104
  18,013
  18,965
  19,959
  21,000
  22,090
  23,231
  24,426
  25,677
  26,988
  28,362
  29,803
  31,312
  32,895
  34,555
  36,295
Operating income, $m
  1,875
  2,097
  2,329
  2,570
  2,821
  3,083
  3,355
  3,639
  3,936
  4,245
  5,714
  6,052
  6,405
  6,774
  7,159
  7,563
  7,986
  8,429
  8,892
  9,378
  9,887
  10,421
  10,980
  11,566
  12,182
  12,827
  13,504
  14,214
  14,959
  15,741
EBITDA, $m
  5,063
  5,424
  5,801
  6,192
  6,599
  7,023
  7,465
  7,926
  8,407
  8,908
  9,432
  9,979
  10,550
  11,147
  11,772
  12,425
  13,109
  13,825
  14,575
  15,360
  16,183
  17,045
  17,948
  18,896
  19,889
  20,931
  22,023
  23,169
  24,372
  25,633
Interest expense (income), $m
  330
  442
  492
  544
  598
  654
  712
  773
  836
  902
  971
  1,043
  1,117
  1,195
  1,277
  1,362
  1,451
  1,544
  1,642
  1,744
  1,851
  1,962
  2,079
  2,202
  2,330
  2,465
  2,606
  2,754
  2,909
  3,072
  3,242
Earnings before tax, $m
  1,432
  1,605
  1,785
  1,972
  2,167
  2,370
  2,582
  2,803
  3,034
  3,274
  4,672
  4,934
  5,209
  5,497
  5,797
  6,112
  6,442
  6,787
  7,149
  7,528
  7,925
  8,341
  8,778
  9,236
  9,717
  10,221
  10,750
  11,305
  11,887
  12,499
Tax expense, $m
  387
  433
  482
  532
  585
  640
  697
  757
  819
  884
  1,261
  1,332
  1,406
  1,484
  1,565
  1,650
  1,739
  1,832
  1,930
  2,032
  2,140
  2,252
  2,370
  2,494
  2,623
  2,760
  2,902
  3,052
  3,210
  3,375
Net income, $m
  1,046
  1,172
  1,303
  1,440
  1,582
  1,730
  1,885
  2,046
  2,215
  2,390
  3,410
  3,602
  3,803
  4,013
  4,232
  4,462
  4,702
  4,954
  5,218
  5,495
  5,785
  6,089
  6,408
  6,742
  7,093
  7,461
  7,847
  8,252
  8,678
  9,124

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
  22,621
  24,159
  25,758
  27,422
  29,153
  30,955
  32,832
  34,787
  36,826
  38,953
  41,172
  43,489
  45,909
  48,438
  51,081
  53,846
  56,738
  59,764
  62,931
  66,248
  69,722
  73,360
  77,173
  81,168
  85,356
  89,746
  94,350
  99,177
  104,240
  109,550
Adjusted assets (=assets-cash), $m
  22,621
  24,159
  25,758
  27,422
  29,153
  30,955
  32,832
  34,787
  36,826
  38,953
  41,172
  43,489
  45,909
  48,438
  51,081
  53,846
  56,738
  59,764
  62,931
  66,248
  69,722
  73,360
  77,173
  81,168
  85,356
  89,746
  94,350
  99,177
  104,240
  109,550
Revenue / Adjusted assets
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
Average production assets, $m
  20,426
  21,815
  23,259
  24,761
  26,324
  27,951
  29,646
  31,412
  33,253
  35,173
  37,177
  39,269
  41,455
  43,738
  46,125
  48,622
  51,233
  53,965
  56,826
  59,820
  62,957
  66,242
  69,685
  73,293
  77,074
  81,039
  85,195
  89,554
  94,126
  98,921
Working capital, $m
  -645
  -689
  -734
  -782
  -831
  -882
  -936
  -991
  -1,050
  -1,110
  -1,173
  -1,239
  -1,308
  -1,380
  -1,456
  -1,535
  -1,617
  -1,703
  -1,794
  -1,888
  -1,987
  -2,091
  -2,199
  -2,313
  -2,433
  -2,558
  -2,689
  -2,827
  -2,971
  -3,122
Total debt, $m
  9,115
  10,075
  11,073
  12,111
  13,191
  14,315
  15,486
  16,707
  17,979
  19,306
  20,691
  22,137
  23,647
  25,225
  26,874
  28,599
  30,404
  32,292
  34,269
  36,338
  38,506
  40,776
  43,155
  45,648
  48,262
  51,001
  53,874
  56,886
  60,045
  63,358
Total liabilities, $m
  14,115
  15,075
  16,073
  17,111
  18,191
  19,316
  20,487
  21,707
  22,979
  24,307
  25,691
  27,137
  28,647
  30,225
  31,875
  33,600
  35,404
  37,293
  39,269
  41,339
  43,506
  45,777
  48,156
  50,649
  53,262
  56,002
  58,874
  61,886
  65,045
  68,359
Total equity, $m
  8,505
  9,084
  9,685
  10,311
  10,961
  11,639
  12,345
  13,080
  13,847
  14,646
  15,481
  16,352
  17,262
  18,213
  19,207
  20,246
  21,333
  22,471
  23,662
  24,909
  26,215
  27,583
  29,017
  30,519
  32,094
  33,745
  35,475
  37,291
  39,194
  41,191
Total liabilities and equity, $m
  22,620
  24,159
  25,758
  27,422
  29,152
  30,955
  32,832
  34,787
  36,826
  38,953
  41,172
  43,489
  45,909
  48,438
  51,082
  53,846
  56,737
  59,764
  62,931
  66,248
  69,721
  73,360
  77,173
  81,168
  85,356
  89,747
  94,349
  99,177
  104,239
  109,550
Debt-to-equity ratio
  1.070
  1.110
  1.140
  1.170
  1.200
  1.230
  1.250
  1.280
  1.300
  1.320
  1.340
  1.350
  1.370
  1.390
  1.400
  1.410
  1.430
  1.440
  1.450
  1.460
  1.470
  1.480
  1.490
  1.500
  1.500
  1.510
  1.520
  1.530
  1.530
  1.540
Adjusted equity ratio
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376
  0.376

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,046
  1,172
  1,303
  1,440
  1,582
  1,730
  1,885
  2,046
  2,215
  2,390
  3,410
  3,602
  3,803
  4,013
  4,232
  4,462
  4,702
  4,954
  5,218
  5,495
  5,785
  6,089
  6,408
  6,742
  7,093
  7,461
  7,847
  8,252
  8,678
  9,124
Depreciation, amort., depletion, $m
  3,188
  3,327
  3,472
  3,622
  3,778
  3,941
  4,110
  4,287
  4,471
  4,663
  3,718
  3,927
  4,145
  4,374
  4,613
  4,862
  5,123
  5,397
  5,683
  5,982
  6,296
  6,624
  6,969
  7,329
  7,707
  8,104
  8,520
  8,955
  9,413
  9,892
Funds from operations, $m
  4,234
  4,499
  4,775
  5,061
  5,360
  5,671
  5,995
  6,333
  6,686
  7,053
  7,128
  7,529
  7,948
  8,386
  8,845
  9,324
  9,826
  10,351
  10,901
  11,477
  12,081
  12,713
  13,376
  14,072
  14,801
  15,565
  16,367
  17,208
  18,090
  19,016
Change in working capital, $m
  -42
  -44
  -46
  -47
  -49
  -51
  -53
  -56
  -58
  -61
  -63
  -66
  -69
  -72
  -75
  -79
  -82
  -86
  -90
  -95
  -99
  -104
  -109
  -114
  -119
  -125
  -131
  -138
  -144
  -151
Cash from operations, $m
  4,276
  4,543
  4,820
  5,109
  5,409
  5,723
  6,049
  6,389
  6,744
  7,114
  7,191
  7,595
  8,017
  8,458
  8,920
  9,403
  9,908
  10,437
  10,991
  11,572
  12,180
  12,817
  13,485
  14,185
  14,920
  15,690
  16,498
  17,345
  18,235
  19,168
Maintenance CAPEX, $m
  -1,908
  -2,043
  -2,182
  -2,326
  -2,476
  -2,632
  -2,795
  -2,965
  -3,141
  -3,325
  -3,517
  -3,718
  -3,927
  -4,145
  -4,374
  -4,613
  -4,862
  -5,123
  -5,397
  -5,683
  -5,982
  -6,296
  -6,624
  -6,969
  -7,329
  -7,707
  -8,104
  -8,520
  -8,955
  -9,413
New CAPEX, $m
  -1,342
  -1,389
  -1,444
  -1,502
  -1,563
  -1,627
  -1,695
  -1,766
  -1,841
  -1,920
  -2,004
  -2,092
  -2,185
  -2,283
  -2,387
  -2,496
  -2,611
  -2,733
  -2,860
  -2,995
  -3,136
  -3,286
  -3,443
  -3,608
  -3,782
  -3,964
  -4,157
  -4,359
  -4,571
  -4,795
Cash from investing activities, $m
  -3,250
  -3,432
  -3,626
  -3,828
  -4,039
  -4,259
  -4,490
  -4,731
  -4,982
  -5,245
  -5,521
  -5,810
  -6,112
  -6,428
  -6,761
  -7,109
  -7,473
  -7,856
  -8,257
  -8,678
  -9,118
  -9,582
  -10,067
  -10,577
  -11,111
  -11,671
  -12,261
  -12,879
  -13,526
  -14,208
Free cash flow, $m
  1,026
  1,111
  1,195
  1,281
  1,370
  1,463
  1,559
  1,658
  1,761
  1,868
  1,670
  1,785
  1,905
  2,029
  2,159
  2,294
  2,435
  2,581
  2,734
  2,894
  3,061
  3,236
  3,418
  3,609
  3,809
  4,018
  4,237
  4,467
  4,708
  4,960
Issuance/(repayment) of debt, $m
  927
  960
  998
  1,038
  1,080
  1,124
  1,171
  1,220
  1,272
  1,327
  1,385
  1,446
  1,510
  1,578
  1,650
  1,725
  1,805
  1,888
  1,977
  2,070
  2,167
  2,271
  2,379
  2,493
  2,613
  2,740
  2,872
  3,012
  3,159
  3,314
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  927
  960
  998
  1,038
  1,080
  1,124
  1,171
  1,220
  1,272
  1,327
  1,385
  1,446
  1,510
  1,578
  1,650
  1,725
  1,805
  1,888
  1,977
  2,070
  2,167
  2,271
  2,379
  2,493
  2,613
  2,740
  2,872
  3,012
  3,159
  3,314
Total cash flow (excl. dividends), $m
  1,953
  2,071
  2,192
  2,319
  2,450
  2,587
  2,730
  2,879
  3,034
  3,195
  3,055
  3,231
  3,415
  3,607
  3,809
  4,019
  4,239
  4,470
  4,711
  4,964
  5,229
  5,506
  5,797
  6,102
  6,422
  6,758
  7,110
  7,479
  7,867
  8,274
Retained Cash Flow (-), $m
  -546
  -578
  -601
  -625
  -651
  -678
  -706
  -735
  -767
  -800
  -834
  -871
  -910
  -951
  -994
  -1,039
  -1,087
  -1,138
  -1,191
  -1,247
  -1,306
  -1,368
  -1,433
  -1,502
  -1,575
  -1,651
  -1,731
  -1,815
  -1,904
  -1,997
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
  30
  32
  34
  37
  39
  42
  44
  47
  50
  52
  56
  59
  62
  65
  69
  73
  77
  81
  85
  90
  94
  99
  105
  110
  116
  122
  128
  134
  141
  149
Cash available for distribution, $m
  1,407
  1,493
  1,591
  1,693
  1,800
  1,910
  2,024
  2,143
  2,267
  2,396
  2,220
  2,360
  2,505
  2,657
  2,815
  2,980
  3,152
  3,332
  3,520
  3,717
  3,923
  4,138
  4,364
  4,600
  4,848
  5,107
  5,379
  5,664
  5,963
  6,277
Discount rate, %
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
  1,310
  1,285
  1,258
  1,219
  1,170
  1,111
  1,044
  970
  891
  808
  635
  565
  495
  427
  362
  302
  247
  199
  156
  121
  91
  67
  48
  34
  23
  15
  10
  6
  4
  2
Current shareholders' claim on cash, %
  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
  100.0

Republic Services, Inc. is a provider of non-hazardous solid waste collection, transfer, disposal, recycling and energy services. The Company's segments include Group 1, Group 2 and Corporate entities. Its Group 1 and Group 2 segments provide integrated waste management services. Group 1 consists of geographic areas located in the western and portions of the mid-western United States. Group 2 consists of geographic areas located in Texas, the southeastern and portions of the mid-western United States, and the eastern seaboard of the United States. As of December 31, 2016, it operated in 39 states and Puerto Rico through 333 collection operations, 204 transfer stations, 192 active landfills, 64 recycling centers, seven treatment, recovery and disposal facilities, and 10 salt water disposal wells. As of December 31, 2016, it also operated 71 landfill gas and renewable energy projects and had post-closure responsibility for 124 closed landfills.

FINANCIAL RATIOS  of  Republic Services (RSG)

Valuation Ratios
P/E Ratio 38
Price to Sales 2.5
Price to Book 3
Price to Tangible Book
Price to Cash Flow 12.6
Price to Free Cash Flow 25.3
Growth Rates
Sales Growth Rate 3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -1.9%
Cap. Spend. - 3 Yr. Gr. Rate 1%
Financial Strength
Quick Ratio 11
Current Ratio 0
LT Debt to Equity 99.5%
Total Debt to Equity 99.6%
Interest Coverage 4
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 3.8%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.2%
Return On Equity 7.9%
Return On Equity - 3 Yr. Avg. 8.2%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 38.6%
Gross Margin - 3 Yr. Avg. 38%
EBITDA Margin 25.2%
EBITDA Margin - 3 Yr. Avg. 24.9%
Operating Margin 14.3%
Oper. Margin - 3 Yr. Avg. 15.1%
Pre-Tax Margin 10.3%
Pre-Tax Margin - 3 Yr. Avg. 11.2%
Net Profit Margin 6.5%
Net Profit Margin - 3 Yr. Avg. 7%
Effective Tax Rate 36.5%
Eff/ Tax Rate - 3 Yr. Avg. 37.3%
Payout Ratio 68.4%

RSG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RSG stock intrinsic value calculation we used $10042 million for the last fiscal year's total revenue generated by Republic Services. The default revenue input number comes from 2017 income statement of Republic Services. 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 RSG stock valuation model: a) initial revenue growth rate of 7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.4%, whose default value for RSG is calculated based on our internal credit rating of Republic Services, 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 Republic Services.
    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 RSG stock the variable cost ratio is equal to 79.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $368 million in the base year in the intrinsic value calculation for RSG 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 Republic Services.

Corporate tax rate of 27% is the nominal tax rate for Republic Services. 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 RSG stock is equal to 0.3%.

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 RSG are equal to 190.1%.

Life of production assets of 10 years is the average useful life of capital assets used in Republic Services 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 RSG is equal to -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 - $7959 million for Republic Services - 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 337 million for Republic Services 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 Republic Services at the current share price and the inputted number of shares is $23.1 billion.

RELATED COMPANIES Price Int.Val. Rating
WM Waste Manageme 82.65 62.52  sell
CWST Casella Waste 25.47 1.67  str.sell
WCN Waste Connecti 77.22 0.47  str.sell
PESI Perma-Fix Envi 4.30 0.38  str.sell

COMPANY NEWS

▶ Republic Services settles lawsuit over Bridgeton landfill fire   [Jun-29-18 05:02PM  American City Business Journals]
▶ Republic Services: 1Q Earnings Snapshot   [May-02-18 04:18PM  Associated Press]
▶ Edited Transcript of RSG presentation 7-Mar-17 2:50pm GMT   [Apr-10-18 01:25PM  Thomson Reuters StreetEvents]
▶ Gabelli & Companys Annual Waste Conference   [Mar-21-18 12:58PM  Business Wire]
▶ Gabelli & Companys Annual Waste Conference   [07:30AM  Business Wire]
▶ Ignore Tesla: Here Are 3 Better Stocks   [Mar-04-18 07:19AM  Motley Fool]
▶ 10 Low Volatility Stocks for Wild Markets   [Feb-27-18 08:00AM  Investopedia]
▶ Republic Services tops Street 4Q forecasts   [Feb-08-18 04:31PM  Associated Press]
▶ Republic Services, Inc. Continued Its Steady Growth   [Nov-03-17 11:00AM  Motley Fool]
▶ Republic Services beats Street 3Q forecasts   [Nov-02-17 04:22PM  Associated Press]
▶ Fighting the Toxic Nightmare Next Door   [Sep-28-17 05:00AM  Bloomberg]
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