Intrinsic value of Synovus Financial - SNV

Previous Close

$54.61

  Intrinsic Value

$14.46

stock screener

  Rating & Target

str. sell

-74%

Previous close

$54.61

 
Intrinsic value

$14.46

 
Up/down potential

-74%

 
Rating

str. sell

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

We calculate the intrinsic value of SNV 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 6.6

 

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, %
  13.70
  12.83
  12.05
  11.34
  10.71
  10.14
  9.62
  9.16
  8.75
  8.37
  8.03
  7.73
  7.46
  7.21
  6.99
  6.79
  6.61
  6.45
  6.31
  6.18
  6.06
  5.95
  5.86
  5.77
  5.69
  5.62
  5.56
  5.51
  5.46
  5.41
Revenue, $m
  1,479
  1,669
  1,870
  2,082
  2,305
  2,539
  2,783
  3,038
  3,304
  3,580
  3,868
  4,167
  4,478
  4,801
  5,136
  5,485
  5,848
  6,225
  6,618
  7,026
  7,452
  7,895
  8,358
  8,840
  9,343
  9,869
  10,418
  10,991
  11,591
  12,218
Variable operating expenses, $m
  497
  561
  628
  700
  775
  853
  935
  1,021
  1,110
  1,203
  1,300
  1,400
  1,505
  1,613
  1,726
  1,843
  1,965
  2,092
  2,223
  2,361
  2,504
  2,653
  2,808
  2,970
  3,139
  3,316
  3,500
  3,693
  3,895
  4,105
Fixed operating expenses, $m
  377
  385
  394
  403
  411
  420
  430
  439
  449
  459
  469
  479
  490
  500
  511
  523
  534
  546
  558
  570
  583
  596
  609
  622
  636
  650
  664
  679
  694
  709
Total operating expenses, $m
  874
  946
  1,022
  1,103
  1,186
  1,273
  1,365
  1,460
  1,559
  1,662
  1,769
  1,879
  1,995
  2,113
  2,237
  2,366
  2,499
  2,638
  2,781
  2,931
  3,087
  3,249
  3,417
  3,592
  3,775
  3,966
  4,164
  4,372
  4,589
  4,814
Operating income, $m
  605
  723
  848
  980
  1,119
  1,265
  1,418
  1,578
  1,745
  1,919
  2,100
  2,288
  2,484
  2,687
  2,899
  3,119
  3,349
  3,587
  3,836
  4,095
  4,365
  4,647
  4,941
  5,248
  5,568
  5,903
  6,253
  6,620
  7,003
  7,404
EBITDA, $m
  4,090
  4,655
  5,254
  5,886
  6,550
  7,247
  7,976
  8,736
  9,529
  10,354
  11,213
  12,106
  13,034
  13,998
  15,001
  16,043
  17,127
  18,254
  19,428
  20,649
  21,922
  23,249
  24,632
  26,076
  27,582
  29,155
  30,799
  32,517
  34,313
  36,191
Interest expense (income), $m
  124
  1,549
  1,572
  1,757
  1,952
  2,158
  2,375
  2,602
  2,840
  3,087
  3,346
  3,615
  3,894
  4,185
  4,487
  4,801
  5,127
  5,466
  5,818
  6,185
  6,567
  6,964
  7,378
  7,809
  8,258
  8,727
  9,216
  9,727
  10,261
  10,818
  11,401
Earnings before tax, $m
  -944
  -849
  -909
  -972
  -1,039
  -1,110
  -1,184
  -1,261
  -1,343
  -1,427
  -1,515
  -1,606
  -1,701
  -1,800
  -1,902
  -2,007
  -2,117
  -2,231
  -2,349
  -2,471
  -2,599
  -2,731
  -2,868
  -3,010
  -3,159
  -3,313
  -3,474
  -3,641
  -3,815
  -3,997
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
  -944
  -849
  -909
  -972
  -1,039
  -1,110
  -1,184
  -1,261
  -1,343
  -1,427
  -1,515
  -1,606
  -1,701
  -1,800
  -1,902
  -2,007
  -2,117
  -2,231
  -2,349
  -2,471
  -2,599
  -2,731
  -2,868
  -3,010
  -3,159
  -3,313
  -3,474
  -3,641
  -3,815
  -3,997

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
  29,585
  33,380
  37,402
  41,644
  46,103
  50,777
  55,663
  60,763
  66,077
  71,608
  77,360
  83,340
  89,555
  96,013
  102,725
  109,701
  116,955
  124,499
  132,350
  140,523
  149,036
  157,906
  167,154
  176,801
  186,868
  197,378
  208,357
  219,829
  231,821
  244,362
Adjusted assets (=assets-cash), $m
  29,585
  33,380
  37,402
  41,644
  46,103
  50,777
  55,663
  60,763
  66,077
  71,608
  77,360
  83,340
  89,555
  96,013
  102,725
  109,701
  116,955
  124,499
  132,350
  140,523
  149,036
  157,906
  167,154
  176,801
  186,868
  197,378
  208,357
  219,829
  231,821
  244,362
Revenue / Adjusted assets
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
  0.050
Average production assets, $m
  34,852
  39,324
  44,061
  49,059
  54,312
  59,818
  65,574
  71,582
  77,842
  84,357
  91,134
  98,179
  105,500
  113,108
  121,015
  129,233
  137,779
  146,667
  155,915
  165,543
  175,571
  186,021
  196,916
  208,280
  220,140
  232,522
  245,455
  258,969
  273,097
  287,871
Working capital, $m
  -32,043
  -36,154
  -40,510
  -45,105
  -49,934
  -54,996
  -60,289
  -65,812
  -71,568
  -77,558
  -83,789
  -90,266
  -96,997
  -103,992
  -111,261
  -118,817
  -126,674
  -134,845
  -143,348
  -152,201
  -161,420
  -171,028
  -181,045
  -191,493
  -202,397
  -213,780
  -225,671
  -238,096
  -251,085
  -264,668
Total debt, $m
  29,115
  32,531
  36,150
  39,968
  43,981
  48,188
  52,586
  57,175
  61,957
  66,935
  72,113
  77,495
  83,088
  88,900
  94,941
  101,219
  107,748
  114,538
  121,604
  128,959
  136,620
  144,604
  152,927
  161,609
  170,669
  180,129
  190,009
  200,334
  211,127
  222,414
Total liabilities, $m
  26,626
  30,042
  33,662
  37,480
  41,493
  45,699
  50,097
  54,687
  59,469
  64,447
  69,624
  75,006
  80,600
  86,412
  92,452
  98,731
  105,259
  112,049
  119,115
  126,471
  134,132
  142,115
  150,439
  159,121
  168,181
  177,640
  187,521
  197,846
  208,639
  219,926
Total equity, $m
  2,958
  3,338
  3,740
  4,164
  4,610
  5,078
  5,566
  6,076
  6,608
  7,161
  7,736
  8,334
  8,956
  9,601
  10,272
  10,970
  11,695
  12,450
  13,235
  14,052
  14,904
  15,791
  16,715
  17,680
  18,687
  19,738
  20,836
  21,983
  23,182
  24,436
Total liabilities and equity, $m
  29,584
  33,380
  37,402
  41,644
  46,103
  50,777
  55,663
  60,763
  66,077
  71,608
  77,360
  83,340
  89,556
  96,013
  102,724
  109,701
  116,954
  124,499
  132,350
  140,523
  149,036
  157,906
  167,154
  176,801
  186,868
  197,378
  208,357
  219,829
  231,821
  244,362
Debt-to-equity ratio
  9.840
  9.750
  9.670
  9.600
  9.540
  9.490
  9.450
  9.410
  9.380
  9.350
  9.320
  9.300
  9.280
  9.260
  9.240
  9.230
  9.210
  9.200
  9.190
  9.180
  9.170
  9.160
  9.150
  9.140
  9.130
  9.130
  9.120
  9.110
  9.110
  9.100
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
  -944
  -849
  -909
  -972
  -1,039
  -1,110
  -1,184
  -1,261
  -1,343
  -1,427
  -1,515
  -1,606
  -1,701
  -1,800
  -1,902
  -2,007
  -2,117
  -2,231
  -2,349
  -2,471
  -2,599
  -2,731
  -2,868
  -3,010
  -3,159
  -3,313
  -3,474
  -3,641
  -3,815
  -3,997
Depreciation, amort., depletion, $m
  3,485
  3,932
  4,406
  4,906
  5,431
  5,982
  6,557
  7,158
  7,784
  8,436
  9,113
  9,818
  10,550
  11,311
  12,102
  12,923
  13,778
  14,667
  15,592
  16,554
  17,557
  18,602
  19,692
  20,828
  22,014
  23,252
  24,545
  25,897
  27,310
  28,787
Funds from operations, $m
  2,541
  3,083
  3,497
  3,934
  4,392
  4,872
  5,374
  5,897
  6,442
  7,009
  7,598
  8,212
  8,849
  9,511
  10,200
  10,916
  11,661
  12,436
  13,243
  14,083
  14,959
  15,872
  16,824
  17,818
  18,855
  19,939
  21,072
  22,256
  23,494
  24,790
Change in working capital, $m
  -3,861
  -4,111
  -4,356
  -4,595
  -4,830
  -5,062
  -5,293
  -5,523
  -5,755
  -5,991
  -6,231
  -6,477
  -6,731
  -6,995
  -7,269
  -7,556
  -7,856
  -8,172
  -8,503
  -8,852
  -9,220
  -9,608
  -10,017
  -10,448
  -10,904
  -11,384
  -11,891
  -12,425
  -12,989
  -13,583
Cash from operations, $m
  6,402
  7,194
  7,853
  8,529
  9,222
  9,934
  10,666
  11,420
  12,197
  12,999
  13,829
  14,689
  15,580
  16,506
  17,469
  18,472
  19,517
  20,607
  21,746
  22,935
  24,178
  25,479
  26,841
  28,266
  29,759
  31,323
  32,963
  34,681
  36,483
  38,373
Maintenance CAPEX, $m
  -3,066
  -3,485
  -3,932
  -4,406
  -4,906
  -5,431
  -5,982
  -6,557
  -7,158
  -7,784
  -8,436
  -9,113
  -9,818
  -10,550
  -11,311
  -12,102
  -12,923
  -13,778
  -14,667
  -15,592
  -16,554
  -17,557
  -18,602
  -19,692
  -20,828
  -22,014
  -23,252
  -24,545
  -25,897
  -27,310
New CAPEX, $m
  -4,189
  -4,472
  -4,737
  -4,998
  -5,253
  -5,506
  -5,757
  -6,007
  -6,260
  -6,516
  -6,777
  -7,045
  -7,321
  -7,608
  -7,907
  -8,218
  -8,545
  -8,888
  -9,249
  -9,628
  -10,028
  -10,450
  -10,895
  -11,364
  -11,859
  -12,382
  -12,933
  -13,514
  -14,128
  -14,774
Cash from investing activities, $m
  -7,255
  -7,957
  -8,669
  -9,404
  -10,159
  -10,937
  -11,739
  -12,564
  -13,418
  -14,300
  -15,213
  -16,158
  -17,139
  -18,158
  -19,218
  -20,320
  -21,468
  -22,666
  -23,916
  -25,220
  -26,582
  -28,007
  -29,497
  -31,056
  -32,687
  -34,396
  -36,185
  -38,059
  -40,025
  -42,084
Free cash flow, $m
  -854
  -763
  -817
  -875
  -937
  -1,003
  -1,072
  -1,145
  -1,221
  -1,301
  -1,383
  -1,470
  -1,559
  -1,652
  -1,748
  -1,848
  -1,951
  -2,058
  -2,170
  -2,285
  -2,404
  -2,528
  -2,656
  -2,790
  -2,929
  -3,073
  -3,223
  -3,379
  -3,541
  -3,710
Issuance/(repayment) of debt, $m
  424
  3,416
  3,619
  3,818
  4,013
  4,206
  4,398
  4,589
  4,782
  4,978
  5,177
  5,382
  5,593
  5,812
  6,040
  6,279
  6,528
  6,790
  7,066
  7,356
  7,661
  7,983
  8,323
  8,682
  9,060
  9,459
  9,881
  10,325
  10,793
  11,287
Issuance/(repurchase) of shares, $m
  3,957
  1,229
  1,311
  1,396
  1,485
  1,577
  1,672
  1,771
  1,874
  1,980
  2,090
  2,204
  2,323
  2,445
  2,573
  2,705
  2,842
  2,985
  3,134
  3,289
  3,450
  3,618
  3,793
  3,975
  4,165
  4,364
  4,571
  4,788
  5,014
  5,251
Cash from financing (excl. dividends), $m  
  4,381
  4,645
  4,930
  5,214
  5,498
  5,783
  6,070
  6,360
  6,656
  6,958
  7,267
  7,586
  7,916
  8,257
  8,613
  8,984
  9,370
  9,775
  10,200
  10,645
  11,111
  11,601
  12,116
  12,657
  13,225
  13,823
  14,452
  15,113
  15,807
  16,538
Total cash flow (excl. dividends), $m
  3,527
  3,882
  4,113
  4,339
  4,561
  4,780
  4,998
  5,216
  5,435
  5,657
  5,884
  6,117
  6,357
  6,606
  6,865
  7,136
  7,419
  7,717
  8,030
  8,360
  8,707
  9,073
  9,460
  9,867
  10,297
  10,751
  11,229
  11,734
  12,266
  12,828
Retained Cash Flow (-), $m
  -3,957
  -1,229
  -1,311
  -1,396
  -1,485
  -1,577
  -1,672
  -1,771
  -1,874
  -1,980
  -2,090
  -2,204
  -2,323
  -2,445
  -2,573
  -2,705
  -2,842
  -2,985
  -3,134
  -3,289
  -3,450
  -3,618
  -3,793
  -3,975
  -4,165
  -4,364
  -4,571
  -4,788
  -5,014
  -5,251
Prev. year cash balance distribution, $m
  55
  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
  14
  16
  18
  21
  23
  25
  28
  31
  33
  36
  39
  43
  46
  49
  53
  56
  60
  64
  68
  73
  77
  82
  87
  92
  97
  103
  109
  115
  121
  128
Cash available for distribution, $m
  -375
  2,654
  2,802
  2,943
  3,076
  3,203
  3,326
  3,445
  3,561
  3,677
  3,794
  3,912
  4,034
  4,160
  4,292
  4,431
  4,577
  4,732
  4,896
  5,071
  5,257
  5,456
  5,667
  5,892
  6,132
  6,387
  6,658
  6,946
  7,252
  7,577
Discount rate, %
  14.90
  15.65
  16.43
  17.25
  18.11
  19.02
  19.97
  20.97
  22.01
  23.11
  24.27
  25.48
  26.76
  28.10
  29.50
  30.98
  32.52
  34.15
  35.86
  37.65
  39.53
  41.51
  43.59
  45.77
  48.05
  50.46
  52.98
  55.63
  58.41
  61.33
PV of cash for distribution, $m
  -327
  1,984
  1,776
  1,557
  1,338
  1,127
  930
  751
  594
  460
  348
  257
  185
  130
  89
  59
  38
  24
  14
  9
  5
  3
  1
  1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  35.3
  25.4
  18.5
  13.6
  10.1
  7.6
  5.8
  4.4
  3.4
  2.6
  2.1
  1.6
  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
  0.0
  0.0

Synovus Financial Corp. is a financial services company and a bank holding company. The Company provides integrated financial services, including commercial and retail banking, financial management, insurance and mortgage services, to its customers through locally branded banking divisions of its subsidiary bank, Synovus Bank (the Bank), and other offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The Bank offers commercial banking services and retail banking services. The Bank's commercial banking services include cash management, asset management, capital markets services, institutional trust services, and commercial, financial and real estate loans. Its retail banking services include mortgage, installment and other retail loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services, and bank credit card services, including MasterCard and Visa services.

FINANCIAL RATIOS  of  Synovus Financial (SNV)

Valuation Ratios
P/E Ratio 27
Price to Sales 0
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 14.3
Price to Free Cash Flow 15.4
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 21.4%
Cap. Spend. - 3 Yr. Gr. Rate 4%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 34%
Total Debt to Equity 34%
Interest Coverage 4
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. 1.1%
Return On Total Capital 6.1%
Ret/ On T. Cap. - 3 Yr. Avg. 5.6%
Return On Equity 8.3%
Return On Equity - 3 Yr. Avg. 7.4%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 36.3%
Eff/ Tax Rate - 3 Yr. Avg. 36.3%
Payout Ratio 28.3%

SNV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SNV stock intrinsic value calculation we used $1301 million for the last fiscal year's total revenue generated by Synovus Financial. The default revenue input number comes from 2017 income statement of Synovus 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 SNV stock valuation model: a) initial revenue growth rate of 13.7% 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 14.9%, whose default value for SNV is calculated based on our internal credit rating of Synovus 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 Synovus 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 SNV stock the variable cost ratio is equal to 33.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $369 million in the base year in the intrinsic value calculation for SNV 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 Synovus Financial.

Corporate tax rate of 27% is the nominal tax rate for Synovus 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 SNV stock is equal to 1.1%.

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 SNV are equal to 2356.1%.

Life of production assets of 10 years is the average useful life of capital assets used in Synovus 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 SNV is equal to -2166.2%. 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 Synovus 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 121 million for Synovus 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 Synovus Financial at the current share price and the inputted number of shares is $6.6 billion.

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COMPANY NEWS

▶ $10.5M funding deal creates jobs, focus on future workforce in Bradenton   [Jun-22-18 07:26AM  American City Business Journals]
▶ Synovus Announces Quarterly Common Stock Dividend   [Jun-08-18 06:45AM  Business Wire]
▶ Gun-control advocates target Bank of America on Remington deal after Santa Fe shooting   [May-23-18 02:50PM  American City Business Journals]
▶ See Which Stocks Just Got Added To And Cut From IBD's Top Lists   [Apr-27-18 06:23PM  Investor's Business Daily]
▶ Synovus: 1Q Earnings Snapshot   [Apr-24-18 06:38AM  Associated Press]
▶ Legendary developer John Williams remembered as "truly unique"   [Apr-17-18 10:04AM  American City Business Journals]
▶ Synovus Announces Quarterly Common Stock Dividend   [Mar-01-18 04:15PM  Business Wire]
▶ Bank of North Georgia Begins Transition to Synovus Branding   [Feb-01-18 12:06PM  Business Wire]
▶ Synovus tops Street 4Q forecasts   [08:07AM  Associated Press]
▶ IBD Rating Upgrades: Synovus Financial Flashes Improved Price Strength   [Jan-11-18 03:00AM  Investor's Business Daily]
▶ Synovus Announces Quarterly Common Stock Dividend   [Dec-08-17 08:30AM  Business Wire]
▶ Synovus division CEO finds his passion in helping businesses grow (Video)   [Dec-07-17 03:52PM  American City Business Journals]
▶ Synovus Financial Joins Rank Of Stocks With 95-Plus Composite Rating   [Nov-30-17 03:00AM  Investor's Business Daily]
▶ TODAY'S CHARTS: Risks of a flat yield curve in 2018   [Nov-28-17 12:49PM  Yahoo Finance Video]
▶ Bank of Nashville lands big local hire   [Nov-20-17 04:09PM  American City Business Journals]
▶ Synovus opens second Atlanta branch in Reynoldstown   [Nov-07-17 02:10PM  American City Business Journals]
▶ Synovus Opens New Branch in Atlantas Reynoldstown Community   [Nov-06-17 08:00AM  Business Wire]
▶ Synovus Announces Senior Notes Offering   [08:58AM  Business Wire]
▶ Synovus beats Street 3Q forecasts   [06:42AM  Associated Press]
▶ 5 Top Bank Stocks to Buy Ahead of Q3 Earnings   [Oct-11-17 09:58AM  Zacks]
▶ Synovus Makes $100 Million Affordable Mortgage Commitment   [Oct-02-17 08:30AM  Business Wire]
▶ Synovus Announces Closing of Cabelas Transaction   [Sep-25-17 04:05PM  Business Wire]
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