Intrinsic value of Sabra Healthcare REIT - SBRA

Previous Close

$23.26

  Intrinsic Value

$104.19

stock screener

  Rating & Target

str. buy

+348%

Previous close

$23.26

 
Intrinsic value

$104.19

 
Up/down potential

+348%

 
Rating

str. buy

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

We calculate the intrinsic value of SBRA 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 2.5

 

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, %
  55.70
  50.63
  46.07
  41.96
  38.26
  34.94
  31.94
  29.25
  26.82
  24.64
  22.68
  20.91
  19.32
  17.89
  16.60
  15.44
  14.39
  13.46
  12.61
  11.85
  11.16
  10.55
  9.99
  9.49
  9.04
  8.64
  8.28
  7.95
  7.65
  7.39
Revenue, $m
  632
  952
  1,391
  1,974
  2,730
  3,684
  4,860
  6,282
  7,967
  9,931
  12,183
  14,730
  17,576
  20,720
  24,159
  27,889
  31,903
  36,196
  40,760
  45,590
  50,679
  56,025
  61,623
  67,473
  73,576
  79,933
  86,548
  93,427
  100,577
  108,008
Variable operating expenses, $m
  306
  456
  661
  934
  1,287
  1,733
  2,283
  2,948
  3,736
  4,654
  5,697
  6,888
  8,219
  9,689
  11,297
  13,042
  14,919
  16,926
  19,061
  21,319
  23,699
  26,199
  28,817
  31,553
  34,406
  37,379
  40,472
  43,689
  47,033
  50,508
Fixed operating expenses, $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 operating expenses, $m
  306
  456
  661
  934
  1,287
  1,733
  2,283
  2,948
  3,736
  4,654
  5,697
  6,888
  8,219
  9,689
  11,297
  13,042
  14,919
  16,926
  19,061
  21,319
  23,699
  26,199
  28,817
  31,553
  34,406
  37,379
  40,472
  43,689
  47,033
  50,508
Operating income, $m
  326
  497
  730
  1,041
  1,443
  1,951
  2,577
  3,334
  4,231
  5,276
  6,486
  7,842
  9,357
  11,031
  12,861
  14,847
  16,984
  19,270
  21,699
  24,271
  26,980
  29,826
  32,806
  35,921
  39,170
  42,554
  46,075
  49,737
  53,544
  57,500
EBITDA, $m
  1,072
  1,615
  2,359
  3,349
  4,630
  6,248
  8,243
  10,654
  13,512
  16,842
  20,661
  24,982
  29,808
  35,140
  40,973
  47,298
  54,107
  61,387
  69,128
  77,319
  85,951
  95,016
  104,511
  114,433
  124,782
  135,563
  146,782
  158,449
  170,575
  183,177
Interest expense (income), $m
  59
  87
  81
  74
  64
  50
  32
  10
  -18
  -51
  -90
  -136
  -189
  -249
  -315
  -389
  -470
  -557
  -651
  -752
  -859
  -972
  -1,091
  -1,216
  -1,347
  -1,484
  -1,627
  -1,776
  -1,931
  -2,092
  -2,260
Earnings before tax, $m
  240
  415
  656
  977
  1,393
  1,919
  2,567
  3,352
  4,282
  5,367
  6,622
  8,031
  9,606
  11,346
  13,251
  15,317
  17,541
  19,921
  22,451
  25,129
  27,952
  30,917
  34,022
  37,268
  40,654
  44,181
  47,851
  51,669
  55,636
  59,760
Tax expense, $m
  65
  112
  177
  264
  376
  518
  693
  905
  1,156
  1,449
  1,788
  2,168
  2,594
  3,063
  3,578
  4,136
  4,736
  5,379
  6,062
  6,785
  7,547
  8,348
  9,186
  10,062
  10,977
  11,929
  12,920
  13,950
  15,022
  16,135
Net income, $m
  175
  303
  479
  713
  1,017
  1,401
  1,874
  2,447
  3,126
  3,918
  4,834
  5,863
  7,012
  8,283
  9,673
  11,181
  12,805
  14,542
  16,389
  18,344
  20,405
  22,569
  24,836
  27,206
  29,677
  32,252
  34,932
  37,718
  40,614
  43,624

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
  -339
  -510
  -745
  -1,058
  -1,462
  -1,973
  -2,603
  -3,365
  -4,267
  -5,319
  -6,525
  -7,890
  -9,414
  -11,098
  -12,940
  -14,938
  -17,088
  -19,387
  -21,832
  -24,419
  -27,145
  -30,008
  -33,007
  -36,140
  -39,409
  -42,813
  -46,357
  -50,041
  -53,871
  -57,851
Adjusted assets (=assets-cash), $m
  -339
  -510
  -745
  -1,058
  -1,462
  -1,973
  -2,603
  -3,365
  -4,267
  -5,319
  -6,525
  -7,890
  -9,414
  -11,098
  -12,940
  -14,938
  -17,088
  -19,387
  -21,832
  -24,419
  -27,145
  -30,008
  -33,007
  -36,140
  -39,409
  -42,813
  -46,357
  -50,041
  -53,871
  -57,851
Revenue / Adjusted assets
  -1.864
  -1.867
  -1.867
  -1.866
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
  -1.867
Average production assets, $m
  7,356
  11,080
  16,184
  22,975
  31,766
  42,864
  56,556
  73,099
  92,708
  115,553
  141,758
  171,400
  204,513
  241,095
  281,113
  324,513
  371,226
  421,176
  474,285
  530,482
  589,705
  651,904
  717,048
  785,121
  856,128
  930,095
  1,007,068
  1,087,112
  1,170,312
  1,256,775
Working capital, $m
  -5,342
  -8,046
  -11,753
  -16,684
  -23,068
  -31,128
  -41,071
  -53,084
  -67,324
  -83,914
  -102,944
  -124,470
  -148,516
  -175,082
  -204,143
  -235,659
  -269,582
  -305,855
  -344,423
  -385,233
  -428,240
  -473,409
  -520,716
  -570,150
  -621,716
  -675,430
  -731,327
  -789,455
  -849,874
  -912,663
Total debt, $m
  97
  88
  76
  59
  38
  12
  -21
  -61
  -108
  -162
  -225
  -296
  -375
  -463
  -558
  -662
  -774
  -894
  -1,021
  -1,155
  -1,297
  -1,446
  -1,602
  -1,765
  -1,935
  -2,112
  -2,296
  -2,488
  -2,687
  -2,894
Total liabilities, $m
  -18
  -27
  -39
  -55
  -76
  -103
  -135
  -175
  -222
  -277
  -339
  -410
  -490
  -577
  -673
  -777
  -889
  -1,008
  -1,135
  -1,270
  -1,412
  -1,560
  -1,716
  -1,879
  -2,049
  -2,226
  -2,411
  -2,602
  -2,801
  -3,008
Total equity, $m
  -321
  -483
  -706
  -1,003
  -1,386
  -1,870
  -2,468
  -3,190
  -4,046
  -5,042
  -6,186
  -7,479
  -8,924
  -10,521
  -12,267
  -14,161
  -16,199
  -18,379
  -20,697
  -23,149
  -25,733
  -28,447
  -31,290
  -34,261
  -37,359
  -40,587
  -43,946
  -47,439
  -51,070
  -54,843
Total liabilities and equity, $m
  -339
  -510
  -745
  -1,058
  -1,462
  -1,973
  -2,603
  -3,365
  -4,268
  -5,319
  -6,525
  -7,889
  -9,414
  -11,098
  -12,940
  -14,938
  -17,088
  -19,387
  -21,832
  -24,419
  -27,145
  -30,007
  -33,006
  -36,140
  -39,408
  -42,813
  -46,357
  -50,041
  -53,871
  -57,851
Debt-to-equity ratio
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
  0.000
Adjusted equity ratio
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948
  0.948

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  175
  303
  479
  713
  1,017
  1,401
  1,874
  2,447
  3,126
  3,918
  4,834
  5,863
  7,012
  8,283
  9,673
  11,181
  12,805
  14,542
  16,389
  18,344
  20,405
  22,569
  24,836
  27,206
  29,677
  32,252
  34,932
  37,718
  40,614
  43,624
Depreciation, amort., depletion, $m
  746
  1,118
  1,629
  2,308
  3,187
  4,297
  5,666
  7,320
  9,281
  11,566
  14,176
  17,140
  20,451
  24,109
  28,111
  32,451
  37,123
  42,118
  47,428
  53,048
  58,970
  65,190
  71,705
  78,512
  85,613
  93,010
  100,707
  108,711
  117,031
  125,678
Funds from operations, $m
  921
  1,421
  2,108
  3,021
  4,204
  5,697
  7,540
  9,767
  12,407
  15,483
  19,010
  23,003
  27,463
  32,392
  37,784
  43,633
  49,928
  56,660
  63,818
  71,392
  79,375
  87,760
  96,541
  105,718
  115,290
  125,262
  135,638
  146,429
  157,646
  169,302
Change in working capital, $m
  -1,911
  -2,704
  -3,707
  -4,931
  -6,384
  -8,059
  -9,943
  -12,013
  -14,240
  -16,590
  -19,030
  -21,526
  -24,047
  -26,565
  -29,061
  -31,517
  -33,923
  -36,273
  -38,568
  -40,810
  -43,007
  -45,169
  -47,307
  -49,434
  -51,565
  -53,715
  -55,897
  -58,127
  -60,420
  -62,789
Cash from operations, $m
  2,832
  4,126
  5,814
  7,953
  10,588
  13,757
  17,484
  21,780
  26,647
  32,073
  38,040
  44,528
  51,510
  58,958
  66,845
  75,149
  83,851
  92,933
  102,386
  112,203
  122,383
  132,929
  143,848
  155,152
  166,855
  178,976
  191,535
  204,556
  218,066
  232,091
Maintenance CAPEX, $m
  -472
  -736
  -1,108
  -1,618
  -2,297
  -3,177
  -4,286
  -5,656
  -7,310
  -9,271
  -11,555
  -14,176
  -17,140
  -20,451
  -24,109
  -28,111
  -32,451
  -37,123
  -42,118
  -47,428
  -53,048
  -58,970
  -65,190
  -71,705
  -78,512
  -85,613
  -93,010
  -100,707
  -108,711
  -117,031
New CAPEX, $m
  -2,635
  -3,724
  -5,104
  -6,791
  -8,791
  -11,098
  -13,692
  -16,543
  -19,609
  -22,845
  -26,205
  -29,642
  -33,113
  -36,582
  -40,018
  -43,400
  -46,713
  -49,950
  -53,109
  -56,197
  -59,223
  -62,199
  -65,143
  -68,073
  -71,008
  -73,967
  -76,973
  -80,044
  -83,201
  -86,463
Cash from investing activities, $m
  -3,107
  -4,460
  -6,212
  -8,409
  -11,088
  -14,275
  -17,978
  -22,199
  -26,919
  -32,116
  -37,760
  -43,818
  -50,253
  -57,033
  -64,127
  -71,511
  -79,164
  -87,073
  -95,227
  -103,625
  -112,271
  -121,169
  -130,333
  -139,778
  -149,520
  -159,580
  -169,983
  -180,751
  -191,912
  -203,494
Free cash flow, $m
  -276
  -334
  -398
  -457
  -501
  -518
  -495
  -418
  -272
  -42
  280
  711
  1,257
  1,924
  2,718
  3,638
  4,686
  5,861
  7,159
  8,577
  10,112
  11,759
  13,514
  15,374
  17,336
  19,396
  21,553
  23,806
  26,154
  28,597
Issuance/(repayment) of debt, $m
  -6
  -9
  -12
  -16
  -21
  -27
  -33
  -40
  -47
  -55
  -63
  -71
  -79
  -88
  -96
  -104
  -112
  -120
  -127
  -135
  -142
  -149
  -156
  -163
  -170
  -177
  -184
  -192
  -199
  -207
Issuance/(repurchase) of shares, $m
  -115
  -163
  -223
  -296
  -384
  -484
  -598
  -722
  -856
  -997
  -1,144
  -1,293
  -1,445
  -1,596
  -1,746
  -1,894
  -2,038
  -2,180
  -2,318
  -2,452
  -2,584
  -2,714
  -2,843
  -2,971
  -3,099
  -3,228
  -3,359
  -3,493
  -3,631
  -3,773
Cash from financing (excl. dividends), $m  
  -121
  -172
  -235
  -312
  -405
  -511
  -631
  -762
  -903
  -1,052
  -1,207
  -1,364
  -1,524
  -1,684
  -1,842
  -1,998
  -2,150
  -2,300
  -2,445
  -2,587
  -2,726
  -2,863
  -2,999
  -3,134
  -3,269
  -3,405
  -3,543
  -3,685
  -3,830
  -3,980
Total cash flow (excl. dividends), $m
  -397
  -505
  -633
  -769
  -905
  -1,029
  -1,126
  -1,180
  -1,174
  -1,094
  -927
  -654
  -267
  241
  875
  1,640
  2,536
  3,561
  4,714
  5,990
  7,386
  8,896
  10,515
  12,241
  14,067
  15,991
  18,010
  20,121
  22,324
  24,617
Retained Cash Flow (-), $m
  115
  163
  223
  296
  384
  484
  598
  722
  856
  997
  1,144
  1,293
  1,445
  1,596
  1,746
  1,894
  2,038
  2,180
  2,318
  2,452
  2,584
  2,714
  2,843
  2,971
  3,099
  3,228
  3,359
  3,493
  3,631
  3,773
Prev. year cash balance distribution, $m
  206
  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
  369
  435
  507
  586
  670
  760
  856
  957
  1,064
  1,177
  1,294
  1,417
  1,545
  1,679
  1,817
  1,962
  2,112
Cash available for distribution, $m
  115
  163
  223
  296
  384
  484
  598
  722
  856
  997
  1,144
  1,293
  1,445
  1,837
  2,622
  3,534
  4,574
  5,741
  7,031
  8,442
  9,970
  11,610
  13,358
  15,211
  17,166
  19,219
  21,369
  23,614
  25,955
  28,390
Discount rate, %
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
  109
  145
  186
  230
  276
  320
  360
  393
  418
  433
  438
  432
  416
  451
  542
  607
  644
  653
  636
  598
  544
  478
  408
  337
  270
  210
  159
  116
  82
  56
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

Sabra Health Care REIT, Inc. is a real estate investment trust. The Company, through its subsidiaries, owns and invests in real estate serving the healthcare industry. The Company's segment includes investments in healthcare-related real estate properties. The Company's primary business consists of acquiring, financing and owning real estate property to be leased to third-party tenants in the healthcare sector. As of December 31, 2016, the Company's investment portfolio consisted of 183 real estate properties held for investment (consisting of 97 skilled nursing/transitional care facilities, 85 senior housing facilities, and one acute care hospital); 10 investments in loans receivable (consisting of four mortgage loans, one construction loan, one mezzanine loan, three pre-development loans and one debtor-in-possession (DIP) loan) and 12 preferred equity investments. It has properties located in New Hampshire, Texas, Florida, Kentucky, Ohio, Maryland and Nebraska, among others.

FINANCIAL RATIOS  of  Sabra Healthcare REIT (SBRA)

Valuation Ratios
P/E Ratio 21.7
Price to Sales 5.8
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 8.6
Price to Free Cash Flow 8.6
Growth Rates
Sales Growth Rate 9.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -75%
Cap. Spend. - 3 Yr. Gr. Rate 0%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 119.2%
Total Debt to Equity 119.2%
Interest Coverage 2
Management Effectiveness
Return On Assets 5.4%
Ret/ On Assets - 3 Yr. Avg. 5.4%
Return On Total Capital 3%
Ret/ On T. Cap. - 3 Yr. Avg. 3.2%
Return On Equity 6.8%
Return On Equity - 3 Yr. Avg. 7.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 97.7%
Gross Margin - 3 Yr. Avg. 98.5%
EBITDA Margin 75.5%
EBITDA Margin - 3 Yr. Avg. 75%
Operating Margin 25.3%
Oper. Margin - 3 Yr. Avg. 26.8%
Pre-Tax Margin 26.8%
Pre-Tax Margin - 3 Yr. Avg. 28.5%
Net Profit Margin 26.8%
Net Profit Margin - 3 Yr. Avg. 28.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 170%

SBRA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SBRA stock intrinsic value calculation we used $406 million for the last fiscal year's total revenue generated by Sabra Healthcare REIT. The default revenue input number comes from 2017 income statement of Sabra Healthcare REIT. 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 SBRA stock valuation model: a) initial revenue growth rate of 55.7% 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 5.6%, whose default value for SBRA is calculated based on our internal credit rating of Sabra Healthcare REIT, 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 Sabra Healthcare REIT.
    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 SBRA stock the variable cost ratio is equal to 49.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SBRA 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 84.1% for Sabra Healthcare REIT.

Corporate tax rate of 27% is the nominal tax rate for Sabra Healthcare REIT. 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 SBRA stock is equal to 2.1%.

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 SBRA are equal to 1163.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Sabra Healthcare REIT 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 SBRA is equal to -845%. 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 Sabra Healthcare REIT - 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 106 million for Sabra Healthcare REIT 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 Sabra Healthcare REIT at the current share price and the inputted number of shares is $2.5 billion.

RELATED COMPANIES Price Int.Val. Rating
MPW Medical Proper 14.93 24.00  str.buy
OHI Omega Healthca 32.72 7.17  str.sell
HR Healthcare Rea 30.79 112.15  str.buy
LTC LTC Properties 45.82 4.38  str.sell
CTRE CareTrust REIT 18.12 621.03  str.buy
IRET Investors Real 5.43 65.18  str.buy
HCP HCP 27.22 7.81  str.sell
CDR Cedar Realty T 4.58 45.93  str.buy

COMPANY NEWS

▶ Signature Healthcare landlord: 'Things are going well' after restructuring   [Aug-10-18 02:02PM  American City Business Journals]
▶ Sabra: 2Q Earnings Snapshot   [Aug-08-18 06:49PM  Associated Press]
▶ 3 MVPs of the REIT Super Bowl   [Jul-06-18 12:08PM  InvestorPlace]
▶ The 5 Best Dividend Stocks for Income   [Jun-22-18 02:14PM  InvestorPlace]
▶ 8 REITs Yielding 8% Plus   [May-18-18 07:00AM  Forbes]
▶ Sabra: 1Q Earnings Snapshot   [May-09-18 06:36PM  Associated Press]
▶ Signature Healthcare reaches out-of-court settlement with landlords   [May-08-18 01:04PM  American City Business Journals]
▶ Is the REIT bloodbath finally a buying opportunity?   [Apr-02-18 12:18PM  MarketWatch]
▶ Sabra Health Care REIT, Inc. to Host Earnings Call   [Feb-22-18 10:25AM  ACCESSWIRE]
▶ Sabra reports 4Q results   [05:03AM  Associated Press]
▶ Signature Healthcare tries to avoid court with debt restructuring   [Nov-06-17 03:05PM  American City Business Journals]
▶ Should You Buy Sabra Health Care REIT Inc (SBRA) At $21.66?   [Sep-29-17 07:22PM  Simply Wall St.]
▶ Sabra and Care Capital Properties Complete Merger   [Aug-17-17 08:30AM  GlobeNewswire]
▶ [$$] Sabra Health Care Shareholders OK Deal With Care Capital Properties   [Aug-15-17 06:20PM  The Wall Street Journal]
▶ Sabra reports 2Q results   [10:10AM  Associated Press]
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.