Intrinsic value of SVB Financial Group - SIVB

Previous Close

$320.23

  Intrinsic Value

$201.14

stock screener

  Rating & Target

sell

-37%

Previous close

$320.23

 
Intrinsic value

$201.14

 
Up/down potential

-37%

 
Rating

sell

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

We calculate the intrinsic value of SIVB 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 17.0

 

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, %
  25.70
  23.63
  21.77
  20.09
  18.58
  17.22
  16.00
  14.90
  13.91
  13.02
  12.22
  11.50
  10.85
  10.26
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.26
  7.04
  6.83
  6.65
  6.49
  6.34
  6.20
  6.08
  5.97
Revenue, $m
  2,369
  2,929
  3,567
  4,284
  5,080
  5,954
  6,907
  7,936
  9,040
  10,217
  11,466
  12,784
  14,170
  15,624
  17,146
  18,734
  20,389
  22,112
  23,905
  25,768
  27,705
  29,718
  31,810
  33,984
  36,244
  38,595
  41,041
  43,587
  46,239
  49,001
Variable operating expenses, $m
  929
  1,148
  1,398
  1,679
  1,991
  2,334
  2,708
  3,111
  3,544
  4,005
  4,495
  5,011
  5,555
  6,125
  6,721
  7,344
  7,992
  8,668
  9,371
  10,101
  10,861
  11,650
  12,469
  13,322
  14,208
  15,129
  16,088
  17,086
  18,126
  19,209
Fixed operating expenses, $m
  284
  290
  297
  303
  310
  317
  324
  331
  338
  346
  353
  361
  369
  377
  385
  394
  402
  411
  420
  430
  439
  449
  459
  469
  479
  490
  500
  511
  523
  534
Total operating expenses, $m
  1,213
  1,438
  1,695
  1,982
  2,301
  2,651
  3,032
  3,442
  3,882
  4,351
  4,848
  5,372
  5,924
  6,502
  7,106
  7,738
  8,394
  9,079
  9,791
  10,531
  11,300
  12,099
  12,928
  13,791
  14,687
  15,619
  16,588
  17,597
  18,649
  19,743
Operating income, $m
  1,157
  1,491
  1,872
  2,301
  2,778
  3,303
  3,876
  4,494
  5,158
  5,867
  6,618
  7,412
  8,247
  9,123
  10,039
  10,996
  11,994
  13,033
  14,114
  15,238
  16,406
  17,620
  18,882
  20,194
  21,558
  22,976
  24,453
  25,990
  27,591
  29,259
EBITDA, $m
  7,183
  8,941
  10,944
  13,196
  15,697
  18,447
  21,443
  24,679
  28,151
  31,852
  35,779
  39,925
  44,286
  48,860
  53,646
  58,641
  63,849
  69,271
  74,911
  80,775
  86,869
  93,202
  99,784
  106,625
  113,738
  121,135
  128,832
  136,845
  145,189
  153,884
Interest expense (income), $m
  43
  2,554
  2,842
  3,475
  4,195
  5,005
  5,905
  6,894
  7,970
  9,134
  10,381
  11,712
  13,123
  14,612
  16,180
  17,823
  19,542
  21,337
  23,208
  25,156
  27,182
  29,288
  31,477
  33,752
  36,116
  38,574
  41,128
  43,785
  46,550
  49,427
  52,424
Earnings before tax, $m
  -1,397
  -1,351
  -1,603
  -1,894
  -2,227
  -2,601
  -3,018
  -3,476
  -3,975
  -4,515
  -5,094
  -5,711
  -6,366
  -7,057
  -7,784
  -8,546
  -9,343
  -10,175
  -11,042
  -11,944
  -12,882
  -13,857
  -14,870
  -15,923
  -17,016
  -18,152
  -19,333
  -20,560
  -21,837
  -23,165
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -1,397
  -1,351
  -1,603
  -1,894
  -2,227
  -2,601
  -3,018
  -3,476
  -3,975
  -4,515
  -5,094
  -5,711
  -6,366
  -7,057
  -7,784
  -8,546
  -9,343
  -10,175
  -11,042
  -11,944
  -12,882
  -13,857
  -14,870
  -15,923
  -17,016
  -18,152
  -19,333
  -20,560
  -21,837
  -23,165

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
  55,103
  68,124
  82,953
  99,618
  118,129
  138,474
  160,631
  184,567
  210,241
  237,614
  266,644
  297,297
  329,543
  363,360
  398,735
  435,665
  474,160
  514,236
  555,925
  599,267
  644,311
  691,120
  739,765
  790,325
  842,891
  897,561
  954,443
  1,013,654
  1,075,318
  1,139,568
Adjusted assets (=assets-cash), $m
  55,103
  68,124
  82,953
  99,618
  118,129
  138,474
  160,631
  184,567
  210,241
  237,614
  266,644
  297,297
  329,543
  363,360
  398,735
  435,665
  474,160
  514,236
  555,925
  599,267
  644,311
  691,120
  739,765
  790,325
  842,891
  897,561
  954,443
  1,013,654
  1,075,318
  1,139,568
Revenue / Adjusted assets
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
  0.043
Average production assets, $m
  60,262
  74,502
  90,719
  108,945
  129,188
  151,438
  175,669
  201,845
  229,924
  259,859
  291,607
  325,130
  360,395
  397,377
  436,064
  476,452
  518,550
  562,379
  607,970
  655,369
  704,631
  755,822
  809,021
  864,314
  921,801
  981,590
  1,043,798
  1,108,552
  1,175,988
  1,246,254
Working capital, $m
  -58,938
  -72,865
  -88,725
  -106,550
  -126,348
  -148,110
  -171,808
  -197,409
  -224,870
  -254,147
  -285,198
  -317,984
  -352,473
  -388,643
  -426,479
  -465,980
  -507,152
  -550,018
  -594,608
  -640,965
  -689,144
  -739,210
  -791,239
  -845,317
  -901,541
  -960,015
  -1,020,856
  -1,084,186
  -1,150,141
  -1,218,862
Total debt, $m
  52,625
  64,344
  77,690
  92,689
  109,348
  127,659
  147,601
  169,142
  192,249
  216,885
  243,012
  270,600
  299,621
  330,056
  361,894
  395,131
  429,776
  465,845
  503,365
  542,372
  582,913
  625,041
  668,821
  714,325
  761,634
  810,837
  862,032
  915,321
  970,819
  1,028,644
Total liabilities, $m
  49,593
  61,312
  74,658
  89,657
  106,316
  124,627
  144,568
  166,110
  189,217
  213,852
  239,980
  267,568
  296,589
  327,024
  358,861
  392,099
  426,744
  462,813
  500,333
  539,340
  579,880
  622,008
  665,788
  711,292
  758,602
  807,805
  858,999
  912,289
  967,786
  1,025,612
Total equity, $m
  5,510
  6,812
  8,295
  9,962
  11,813
  13,847
  16,063
  18,457
  21,024
  23,761
  26,664
  29,730
  32,954
  36,336
  39,873
  43,567
  47,416
  51,424
  55,593
  59,927
  64,431
  69,112
  73,976
  79,032
  84,289
  89,756
  95,444
  101,365
  107,532
  113,957
Total liabilities and equity, $m
  55,103
  68,124
  82,953
  99,619
  118,129
  138,474
  160,631
  184,567
  210,241
  237,613
  266,644
  297,298
  329,543
  363,360
  398,734
  435,666
  474,160
  514,237
  555,926
  599,267
  644,311
  691,120
  739,764
  790,324
  842,891
  897,561
  954,443
  1,013,654
  1,075,318
  1,139,569
Debt-to-equity ratio
  9.550
  9.450
  9.370
  9.300
  9.260
  9.220
  9.190
  9.160
  9.140
  9.130
  9.110
  9.100
  9.090
  9.080
  9.080
  9.070
  9.060
  9.060
  9.050
  9.050
  9.050
  9.040
  9.040
  9.040
  9.040
  9.030
  9.030
  9.030
  9.030
  9.030
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,397
  -1,351
  -1,603
  -1,894
  -2,227
  -2,601
  -3,018
  -3,476
  -3,975
  -4,515
  -5,094
  -5,711
  -6,366
  -7,057
  -7,784
  -8,546
  -9,343
  -10,175
  -11,042
  -11,944
  -12,882
  -13,857
  -14,870
  -15,923
  -17,016
  -18,152
  -19,333
  -20,560
  -21,837
  -23,165
Depreciation, amort., depletion, $m
  6,026
  7,450
  9,072
  10,894
  12,919
  15,144
  17,567
  20,185
  22,992
  25,986
  29,161
  32,513
  36,039
  39,738
  43,606
  47,645
  51,855
  56,238
  60,797
  65,537
  70,463
  75,582
  80,902
  86,431
  92,180
  98,159
  104,380
  110,855
  117,599
  124,625
Funds from operations, $m
  4,629
  6,099
  7,469
  9,000
  10,692
  12,542
  14,549
  16,709
  19,017
  21,471
  24,067
  26,802
  29,674
  32,681
  35,823
  39,099
  42,512
  46,063
  49,755
  53,593
  57,581
  61,725
  66,032
  70,509
  75,164
  80,007
  85,047
  90,295
  95,762
  101,460
Change in working capital, $m
  -12,050
  -13,927
  -15,860
  -17,825
  -19,798
  -21,761
  -23,699
  -25,601
  -27,461
  -29,277
  -31,051
  -32,786
  -34,489
  -36,170
  -37,836
  -39,500
  -41,173
  -42,865
  -44,590
  -46,357
  -48,179
  -50,066
  -52,029
  -54,078
  -56,223
  -58,474
  -60,840
  -63,331
  -65,955
  -68,721
Cash from operations, $m
  16,679
  20,026
  23,330
  26,825
  30,490
  34,304
  38,248
  42,309
  46,478
  50,748
  55,118
  59,588
  64,163
  68,850
  73,659
  78,599
  83,685
  88,928
  94,345
  99,950
  105,760
  111,791
  118,061
  124,587
  131,388
  138,481
  145,888
  153,626
  161,717
  170,181
Maintenance CAPEX, $m
  -4,795
  -6,026
  -7,450
  -9,072
  -10,894
  -12,919
  -15,144
  -17,567
  -20,185
  -22,992
  -25,986
  -29,161
  -32,513
  -36,039
  -39,738
  -43,606
  -47,645
  -51,855
  -56,238
  -60,797
  -65,537
  -70,463
  -75,582
  -80,902
  -86,431
  -92,180
  -98,159
  -104,380
  -110,855
  -117,599
New CAPEX, $m
  -12,313
  -14,240
  -16,217
  -18,226
  -20,243
  -22,250
  -24,231
  -26,176
  -28,078
  -29,935
  -31,749
  -33,523
  -35,265
  -36,982
  -38,687
  -40,388
  -42,098
  -43,829
  -45,592
  -47,399
  -49,262
  -51,191
  -53,198
  -55,294
  -57,487
  -59,788
  -62,208
  -64,754
  -67,437
  -70,265
Cash from investing activities, $m
  -17,108
  -20,266
  -23,667
  -27,298
  -31,137
  -35,169
  -39,375
  -43,743
  -48,263
  -52,927
  -57,735
  -62,684
  -67,778
  -73,021
  -78,425
  -83,994
  -89,743
  -95,684
  -101,830
  -108,196
  -114,799
  -121,654
  -128,780
  -136,196
  -143,918
  -151,968
  -160,367
  -169,134
  -178,292
  -187,864
Free cash flow, $m
  -429
  -240
  -337
  -472
  -647
  -865
  -1,127
  -1,434
  -1,785
  -2,179
  -2,617
  -3,096
  -3,614
  -4,171
  -4,765
  -5,395
  -6,059
  -6,755
  -7,485
  -8,246
  -9,039
  -9,863
  -10,720
  -11,609
  -12,531
  -13,487
  -14,479
  -15,508
  -16,575
  -17,683
Issuance/(repayment) of debt, $m
  5,337
  11,719
  13,346
  14,999
  16,659
  18,311
  19,941
  21,542
  23,107
  24,635
  26,128
  27,588
  29,021
  30,435
  31,837
  33,238
  34,645
  36,069
  37,520
  39,007
  40,540
  42,128
  43,780
  45,504
  47,309
  49,203
  51,194
  53,290
  55,498
  57,825
Issuance/(repurchase) of shares, $m
  6,909
  2,653
  3,085
  3,561
  4,078
  4,636
  5,233
  5,870
  6,543
  7,252
  7,997
  8,776
  9,590
  10,439
  11,321
  12,239
  13,193
  14,183
  15,211
  16,278
  17,387
  18,538
  19,735
  20,979
  22,273
  23,619
  25,021
  26,481
  28,003
  29,590
Cash from financing (excl. dividends), $m  
  12,246
  14,372
  16,431
  18,560
  20,737
  22,947
  25,174
  27,412
  29,650
  31,887
  34,125
  36,364
  38,611
  40,874
  43,158
  45,477
  47,838
  50,252
  52,731
  55,285
  57,927
  60,666
  63,515
  66,483
  69,582
  72,822
  76,215
  79,771
  83,501
  87,415
Total cash flow (excl. dividends), $m
  11,818
  14,132
  16,094
  18,087
  20,090
  22,081
  24,048
  25,978
  27,865
  29,708
  31,508
  33,269
  34,997
  36,702
  38,393
  40,082
  41,779
  43,496
  45,246
  47,039
  48,888
  50,803
  52,795
  54,874
  57,051
  59,335
  61,736
  64,263
  66,925
  69,732
Retained Cash Flow (-), $m
  -6,909
  -2,653
  -3,085
  -3,561
  -4,078
  -4,636
  -5,233
  -5,870
  -6,543
  -7,252
  -7,997
  -8,776
  -9,590
  -10,439
  -11,321
  -12,239
  -13,193
  -14,183
  -15,211
  -16,278
  -17,387
  -18,538
  -19,735
  -20,979
  -22,273
  -23,619
  -25,021
  -26,481
  -28,003
  -29,590
Prev. year cash balance distribution, $m
  1
  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
  19
  24
  29
  36
  43
  51
  60
  69
  79
  90
  102
  115
  128
  142
  156
  171
  187
  204
  221
  239
  258
  277
  297
  318
  340
  362
  386
  410
  436
  462
Cash available for distribution, $m
  4,910
  11,479
  13,008
  14,527
  16,012
  17,446
  18,814
  20,108
  21,322
  22,456
  23,511
  24,492
  25,407
  26,263
  27,072
  27,843
  28,586
  29,314
  30,035
  30,761
  31,501
  32,265
  33,060
  33,895
  34,778
  35,716
  36,715
  37,782
  38,922
  40,142
Discount rate, %
  13.80
  14.49
  15.21
  15.98
  16.77
  17.61
  18.49
  19.42
  20.39
  21.41
  22.48
  23.60
  24.78
  26.02
  27.32
  28.69
  30.12
  31.63
  33.21
  34.87
  36.62
  38.45
  40.37
  42.39
  44.51
  46.73
  49.07
  51.52
  54.10
  56.80
PV of cash for distribution, $m
  4,315
  8,757
  8,506
  8,030
  7,374
  6,591
  5,736
  4,862
  4,014
  3,227
  2,527
  1,926
  1,429
  1,031
  723
  492
  325
  208
  129
  78
  45
  25
  14
  7
  4
  2
  1
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  33.7
  23.2
  16.3
  11.5
  8.3
  6.0
  4.4
  3.2
  2.4
  1.8
  1.4
  1.0
  0.8
  0.6
  0.5
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

SVB Financial Group is a financial services company, as well as a bank holding and a financial holding company. The Company's segments include Global Commercial Bank, SVB Private Bank and SVB Capital. The Global Commercial Bank segment consists of the operations of its Commercial Bank, and of SVB Wine, SVB Analytics and its Debt Fund Investments. SVB Private Bank is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. SVB Capital is the venture capital investment arm of SVB Financial Group, which focuses primarily on funds management. The Company, through its subsidiaries and divisions, offers a range of banking and financial products and services to clients across the United States. It offers services in the technology, life science/healthcare, private equity/venture capital and wine industries. The Bank and its subsidiaries, also offer asset management, private wealth management, brokerage and other investment services.

FINANCIAL RATIOS  of  SVB Financial Group (SIVB)

Valuation Ratios
P/E Ratio 43.7
Price to Sales 0
Price to Book 4.6
Price to Tangible Book
Price to Cash Flow 38.2
Price to Free Cash Flow 43.5
Growth Rates
Sales Growth Rate -100%
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 11.3%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 35.9%
Total Debt to Equity 35.9%
Interest Coverage 16
Management Effectiveness
Return On Assets 0.9%
Ret/ On Assets - 3 Yr. Avg. 0.9%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 8.6%
Return On Equity 11.2%
Return On Equity - 3 Yr. Avg. 11.2%
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 39.2%
Eff/ Tax Rate - 3 Yr. Avg. 34.9%
Payout Ratio 0%

SIVB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SIVB stock intrinsic value calculation we used $1885 million for the last fiscal year's total revenue generated by SVB Financial Group. The default revenue input number comes from 2017 income statement of SVB Financial Group. 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 SIVB stock valuation model: a) initial revenue growth rate of 25.7% 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 13.8%, whose default value for SIVB is calculated based on our internal credit rating of SVB Financial Group, 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 SVB Financial Group.
    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 SIVB stock the variable cost ratio is equal to 39.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $278 million in the base year in the intrinsic value calculation for SIVB 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 SVB Financial Group.

Corporate tax rate of 27% is the nominal tax rate for SVB Financial Group. 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 SIVB stock is equal to 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 SIVB are equal to 2543.3%.

Life of production assets of 10 years is the average useful life of capital assets used in SVB Financial Group 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 SIVB is equal to -2487.4%. 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 SVB Financial Group - 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 53 million for SVB Financial Group 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 SVB Financial Group at the current share price and the inputted number of shares is $17.0 billion.

RELATED COMPANIES Price Int.Val. Rating
CVBF CVB Financial 24.42 2.28  str.sell
HTBK Heritage Comme 15.03 2.12  str.sell
BOCH Bank of Commer 12.50 4.96  str.sell
OVLY Oak Valley Ban 20.79 9.12  str.sell
PLBC Plumas Bancorp 27.39 19.34  hold
CWBC Community West 11.90 4.43  str.sell
EWBC East West Banc 64.30 30.79  sell

COMPANY NEWS

▶ Highflying Internet Bank Goes Low On Earnings, Revenue   [Aug-07-18 05:14PM  Investor's Business Daily]
▶ The 10 Best Stocks to Buy Right Now   [Aug-03-18 02:37PM  InvestorPlace]
▶ Silicon Valley Bank Names New CIO and CTO   [09:01AM  PR Newswire]
▶ SVB: 2Q Earnings Snapshot   [Jul-26-18 05:09PM  Associated Press]
▶ These Top Bank Stocks Are Rallying, Near Buy Points On This Good News   [Jul-23-18 04:33PM  Investor's Business Daily]
▶ The 5 Best US Bank Stocks of 2018 (So Far)   [Jul-21-18 08:48AM  Motley Fool]
▶ The Funded: Bay Area startups raise nearly $100M at week's end   [Jul-20-18 02:58PM  American City Business Journals]
▶ Once-hot flash storage company Tintri on the verge of collapse   [Jul-06-18 06:02PM  American City Business Journals]
▶ 7 Stocks to Buy Over $200   [Jul-05-18 02:20PM  InvestorPlace]
▶ The Newest Stocks in the Motley Fool 100   [Jul-02-18 11:11AM  Motley Fool]
▶ Square, PayPal Lead These 5 Financial Stocks Near Buy Zones   [Jun-11-18 04:07PM  Investor's Business Daily]
▶ 7 A-Rated Stocks to Buy for the Second Half of 2018   [Jun-08-18 03:00PM  InvestorPlace]
▶ 3 ETFs Set to Gain from Dodd-Frank Rollbacks   [Jun-05-18 09:00AM  Investopedia]
▶ Silicon Valley Bank Expands in Portland   [Jun-04-18 09:01AM  PR Newswire]
▶ Silicon Valley Bank Expands to Germany   [Jun-01-18 05:05PM  Bloomberg Video]
▶ Silicon Valley Bank Expands to Germany   [05:05PM  Bloomberg]
▶ Bank Bill to Bring More Competition, M&A   [May-28-18 07:00AM  Morningstar]
▶ 5 Stocks to Buy as House Votes to Soften Bank Regulations   [May-23-18 01:50PM  InvestorPlace]
▶ All About REX, the New Actively Managed Blockchain ETF   [May-21-18 02:45PM  Investopedia]
▶ Brian Kelly Launches Blockchain ETF   [May-17-18 08:58AM  Investopedia]
▶ Silicon Valley Bank goes north to fund Canadas nascent tech scene   [May-14-18 10:26AM  American City Business Journals]
▶ SVB Financial Group Announces 2018 Investor Day   [May-07-18 04:05PM  PR Newswire]
▶ Amazon, Twitter, Mastercard All Boast This Stellar Growth Trait   [Apr-30-18 04:13PM  Investor's Business Daily]
▶ SVB: 1Q Earnings Snapshot   [Apr-26-18 04:48PM  Associated Press]
▶ Bank Stocks, Financials Charge As Treasury Yield Hits 4-Year High   [Apr-24-18 04:30PM  Investor's Business Daily]
▶ Silicon Valley Bank Pursues Expansion in Canada   [Mar-14-18 09:00AM  CNW Group]
▶ [$$] Take-Two, SVB Financial and Nektar Therapeutics to Join S&P 500   [Mar-09-18 06:51PM  The Wall Street Journal]
▶ Direxion Launches Leveraged Mid-Cap ETF   [Mar-06-18 05:18PM  Zacks]
▶ 27 Top Fund Managers Just Bought Shares In This Breakout Stock   [04:07PM  Investor's Business Daily]
▶ 2018 Set To Be a Better Year for Startups   [Jan-30-18 09:00AM  PR Newswire]
▶ Silicon Valley stocks: VMWare plunges, Maxim soars on M&A reports   [Jan-29-18 05:11PM  American City Business Journals]
▶ Silicon Valley stocks jump as Intel, VMware rocket near record highs   [Jan-26-18 05:02PM  American City Business Journals]
▶ SVB beats Street 4Q forecasts   [Jan-25-18 05:17PM  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.