Intrinsic value of Simon Property Group - SPG

Previous Close

$175.59

  Intrinsic Value

$78.24

stock screener

  Rating & Target

str. sell

-55%

Previous close

$175.59

 
Intrinsic value

$78.24

 
Up/down potential

-55%

 
Rating

str. sell

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

We calculate the intrinsic value of SPG 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 54.6

 

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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  5,650
  5,780
  5,928
  6,095
  6,280
  6,483
  6,703
  6,942
  7,200
  7,476
  7,772
  8,087
  8,423
  8,780
  9,159
  9,560
  9,985
  10,434
  10,909
  11,410
  11,939
  12,497
  13,085
  13,704
  14,356
  15,043
  15,766
  16,527
  17,328
  18,169
Variable operating expenses, $m
  981
  1,000
  1,023
  1,048
  1,076
  1,106
  1,140
  1,176
  1,215
  1,256
  1,174
  1,222
  1,273
  1,327
  1,384
  1,444
  1,509
  1,576
  1,648
  1,724
  1,804
  1,888
  1,977
  2,071
  2,169
  2,273
  2,382
  2,497
  2,618
  2,745
Fixed operating expenses, $m
  1,843
  1,883
  1,925
  1,967
  2,010
  2,054
  2,100
  2,146
  2,193
  2,241
  2,291
  2,341
  2,393
  2,445
  2,499
  2,554
  2,610
  2,668
  2,726
  2,786
  2,848
  2,910
  2,974
  3,040
  3,106
  3,175
  3,245
  3,316
  3,389
  3,464
Total operating expenses, $m
  2,824
  2,883
  2,948
  3,015
  3,086
  3,160
  3,240
  3,322
  3,408
  3,497
  3,465
  3,563
  3,666
  3,772
  3,883
  3,998
  4,119
  4,244
  4,374
  4,510
  4,652
  4,798
  4,951
  5,111
  5,275
  5,448
  5,627
  5,813
  6,007
  6,209
Operating income, $m
  2,827
  2,896
  2,981
  3,080
  3,194
  3,322
  3,464
  3,621
  3,792
  3,978
  4,307
  4,524
  4,758
  5,008
  5,276
  5,562
  5,866
  6,190
  6,534
  6,900
  7,288
  7,698
  8,133
  8,594
  9,081
  9,596
  10,140
  10,714
  11,321
  11,961
EBITDA, $m
  6,312
  6,459
  6,632
  6,830
  7,053
  7,302
  7,575
  7,874
  8,198
  8,549
  8,926
  9,331
  9,764
  10,227
  10,720
  11,244
  11,801
  12,392
  13,019
  13,682
  14,384
  15,126
  15,911
  16,740
  17,614
  18,537
  19,511
  20,538
  21,620
  22,761
Interest expense (income), $m
  887
  832
  832
  833
  834
  834
  835
  836
  837
  837
  838
  839
  841
  842
  843
  844
  846
  847
  849
  851
  853
  855
  857
  859
  861
  863
  866
  868
  871
  874
  877
Earnings before tax, $m
  1,994
  2,064
  2,148
  2,247
  2,360
  2,487
  2,628
  2,784
  2,955
  3,140
  3,467
  3,684
  3,916
  4,165
  4,431
  4,716
  5,019
  5,341
  5,684
  6,047
  6,433
  6,842
  7,275
  7,733
  8,217
  8,730
  9,271
  9,843
  10,446
  11,083
Tax expense, $m
  539
  557
  580
  607
  637
  671
  710
  752
  798
  848
  936
  995
  1,057
  1,125
  1,196
  1,273
  1,355
  1,442
  1,535
  1,633
  1,737
  1,847
  1,964
  2,088
  2,219
  2,357
  2,503
  2,658
  2,821
  2,993
Net income, $m
  1,456
  1,507
  1,568
  1,640
  1,723
  1,815
  1,919
  2,032
  2,157
  2,292
  2,531
  2,689
  2,859
  3,040
  3,235
  3,442
  3,664
  3,899
  4,149
  4,414
  4,696
  4,995
  5,311
  5,645
  5,999
  6,373
  6,768
  7,185
  7,626
  8,091

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
  -4,879
  -4,991
  -5,119
  -5,263
  -5,423
  -5,598
  -5,789
  -5,995
  -6,217
  -6,456
  -6,711
  -6,984
  -7,274
  -7,582
  -7,909
  -8,256
  -8,622
  -9,010
  -9,420
  -9,853
  -10,310
  -10,792
  -11,299
  -11,834
  -12,398
  -12,991
  -13,615
  -14,272
  -14,963
  -15,690
Adjusted assets (=assets-cash), $m
  -4,879
  -4,991
  -5,119
  -5,263
  -5,423
  -5,598
  -5,789
  -5,995
  -6,217
  -6,456
  -6,711
  -6,984
  -7,274
  -7,582
  -7,909
  -8,256
  -8,622
  -9,010
  -9,420
  -9,853
  -10,310
  -10,792
  -11,299
  -11,834
  -12,398
  -12,991
  -13,615
  -14,272
  -14,963
  -15,690
Revenue / Adjusted assets
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
  -1.158
Average production assets, $m
  33,582
  34,355
  35,238
  36,229
  37,327
  38,532
  39,845
  41,265
  42,795
  44,438
  46,195
  48,070
  50,066
  52,187
  54,439
  56,824
  59,350
  62,020
  64,842
  67,821
  70,965
  74,280
  77,775
  81,457
  85,335
  89,418
  93,715
  98,237
  102,995
  107,999
Working capital, $m
  -28,384
  -29,037
  -29,784
  -30,621
  -31,550
  -32,568
  -33,678
  -34,878
  -36,172
  -37,560
  -39,045
  -40,630
  -42,317
  -44,110
  -46,013
  -48,029
  -50,164
  -52,421
  -54,806
  -57,324
  -59,981
  -62,783
  -65,737
  -68,849
  -72,127
  -75,578
  -79,210
  -83,032
  -87,054
  -91,283
Total debt, $m
  4,313
  4,316
  4,319
  4,322
  4,326
  4,330
  4,334
  4,339
  4,344
  4,350
  4,356
  4,362
  4,368
  4,376
  4,383
  4,391
  4,399
  4,408
  4,418
  4,428
  4,438
  4,449
  4,461
  4,473
  4,486
  4,500
  4,514
  4,529
  4,545
  4,562
Total liabilities, $m
  112
  115
  118
  121
  125
  129
  133
  138
  143
  148
  154
  161
  167
  174
  182
  190
  198
  207
  217
  227
  237
  248
  260
  272
  285
  299
  313
  328
  344
  361
Total equity, $m
  -4,991
  -5,106
  -5,237
  -5,384
  -5,548
  -5,727
  -5,922
  -6,133
  -6,360
  -6,605
  -6,866
  -7,144
  -7,441
  -7,756
  -8,091
  -8,445
  -8,821
  -9,218
  -9,637
  -10,080
  -10,547
  -11,040
  -11,559
  -12,106
  -12,683
  -13,290
  -13,928
  -14,600
  -15,308
  -16,051
Total liabilities and equity, $m
  -4,879
  -4,991
  -5,119
  -5,263
  -5,423
  -5,598
  -5,789
  -5,995
  -6,217
  -6,457
  -6,712
  -6,983
  -7,274
  -7,582
  -7,909
  -8,255
  -8,623
  -9,011
  -9,420
  -9,853
  -10,310
  -10,792
  -11,299
  -11,834
  -12,398
  -12,991
  -13,615
  -14,272
  -14,964
  -15,690
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
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023
  1.023

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,456
  1,507
  1,568
  1,640
  1,723
  1,815
  1,919
  2,032
  2,157
  2,292
  2,531
  2,689
  2,859
  3,040
  3,235
  3,442
  3,664
  3,899
  4,149
  4,414
  4,696
  4,995
  5,311
  5,645
  5,999
  6,373
  6,768
  7,185
  7,626
  8,091
Depreciation, amort., depletion, $m
  3,485
  3,562
  3,651
  3,750
  3,860
  3,980
  4,111
  4,253
  4,406
  4,571
  4,619
  4,807
  5,007
  5,219
  5,444
  5,682
  5,935
  6,202
  6,484
  6,782
  7,096
  7,428
  7,777
  8,146
  8,533
  8,942
  9,372
  9,824
  10,300
  10,800
Funds from operations, $m
  4,941
  5,069
  5,219
  5,390
  5,582
  5,796
  6,030
  6,286
  6,563
  6,863
  7,151
  7,496
  7,865
  8,259
  8,679
  9,125
  9,599
  10,101
  10,633
  11,197
  11,793
  12,423
  13,088
  13,791
  14,532
  15,315
  16,139
  17,009
  17,925
  18,891
Change in working capital, $m
  -557
  -653
  -746
  -838
  -928
  -1,019
  -1,109
  -1,201
  -1,293
  -1,388
  -1,485
  -1,585
  -1,687
  -1,793
  -1,903
  -2,016
  -2,134
  -2,257
  -2,385
  -2,518
  -2,657
  -2,802
  -2,954
  -3,112
  -3,278
  -3,451
  -3,632
  -3,822
  -4,021
  -4,230
Cash from operations, $m
  5,498
  5,722
  5,965
  6,228
  6,511
  6,814
  7,139
  7,486
  7,857
  8,251
  8,636
  9,081
  9,552
  10,052
  10,582
  11,141
  11,733
  12,358
  13,018
  13,715
  14,450
  15,225
  16,042
  16,903
  17,810
  18,765
  19,772
  20,831
  21,947
  23,121
Maintenance CAPEX, $m
  -3,292
  -3,358
  -3,435
  -3,524
  -3,623
  -3,733
  -3,853
  -3,984
  -4,127
  -4,280
  -4,444
  -4,619
  -4,807
  -5,007
  -5,219
  -5,444
  -5,682
  -5,935
  -6,202
  -6,484
  -6,782
  -7,096
  -7,428
  -7,777
  -8,146
  -8,533
  -8,942
  -9,372
  -9,824
  -10,300
New CAPEX, $m
  -660
  -772
  -883
  -991
  -1,098
  -1,205
  -1,312
  -1,421
  -1,530
  -1,642
  -1,757
  -1,875
  -1,996
  -2,122
  -2,251
  -2,386
  -2,525
  -2,671
  -2,822
  -2,979
  -3,144
  -3,315
  -3,495
  -3,682
  -3,878
  -4,083
  -4,298
  -4,522
  -4,758
  -5,004
Cash from investing activities, $m
  -3,952
  -4,130
  -4,318
  -4,515
  -4,721
  -4,938
  -5,165
  -5,405
  -5,657
  -5,922
  -6,201
  -6,494
  -6,803
  -7,129
  -7,470
  -7,830
  -8,207
  -8,606
  -9,024
  -9,463
  -9,926
  -10,411
  -10,923
  -11,459
  -12,024
  -12,616
  -13,240
  -13,894
  -14,582
  -15,304
Free cash flow, $m
  1,545
  1,591
  1,647
  1,713
  1,789
  1,876
  1,974
  2,081
  2,200
  2,329
  2,435
  2,586
  2,749
  2,924
  3,112
  3,312
  3,525
  3,753
  3,994
  4,251
  4,524
  4,813
  5,119
  5,443
  5,786
  6,149
  6,532
  6,938
  7,365
  7,817
Issuance/(repayment) of debt, $m
  2
  3
  3
  3
  4
  4
  4
  5
  5
  5
  6
  6
  7
  7
  8
  8
  8
  9
  9
  10
  11
  11
  12
  12
  13
  14
  14
  15
  16
  17
Issuance/(repurchase) of shares, $m
  -99
  -115
  -131
  -147
  -163
  -179
  -195
  -211
  -227
  -244
  -261
  -279
  -297
  -315
  -335
  -355
  -375
  -397
  -419
  -443
  -467
  -493
  -519
  -547
  -576
  -607
  -639
  -672
  -707
  -744
Cash from financing (excl. dividends), $m  
  -97
  -112
  -128
  -144
  -159
  -175
  -191
  -206
  -222
  -239
  -255
  -273
  -290
  -308
  -327
  -347
  -367
  -388
  -410
  -433
  -456
  -482
  -507
  -535
  -563
  -593
  -625
  -657
  -691
  -727
Total cash flow (excl. dividends), $m
  1,448
  1,479
  1,518
  1,569
  1,630
  1,701
  1,783
  1,875
  1,978
  2,090
  2,180
  2,314
  2,459
  2,616
  2,785
  2,965
  3,158
  3,365
  3,584
  3,818
  4,067
  4,331
  4,611
  4,908
  5,223
  5,556
  5,908
  6,280
  6,674
  7,090
Retained Cash Flow (-), $m
  99
  115
  131
  147
  163
  179
  195
  211
  227
  244
  261
  279
  297
  315
  335
  355
  375
  397
  419
  443
  467
  493
  519
  547
  576
  607
  639
  672
  707
  744
Prev. year cash balance distribution, $m
  4,893
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  6,440
  1,594
  1,650
  1,716
  1,793
  1,880
  1,978
  2,086
  2,205
  2,335
  2,441
  2,593
  2,756
  2,931
  3,119
  3,320
  3,534
  3,762
  4,004
  4,261
  4,534
  4,824
  5,131
  5,456
  5,799
  6,163
  6,547
  6,953
  7,381
  7,834
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
  6,098
  1,422
  1,378
  1,335
  1,290
  1,243
  1,192
  1,137
  1,078
  1,015
  934
  865
  793
  719
  644
  570
  497
  428
  362
  302
  247
  199
  157
  121
  91
  67
  49
  34
  23
  16
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

Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, develops and manages retail real estate properties, which consist primarily of malls, Premium Outlets and The Mills. Simon Property Group, L.P. (Operating Partnership), is the Company's partnership subsidiary that owns all of its real estate properties and other assets. As of December 31, 2016, the Company owned or held an interest in 206 income-producing properties in the United States, which consisted of 108 malls, 67 Premium Outlets, 14 Mills, four lifestyle centers, and 13 other retail properties in 37 states and Puerto Rico. As of December 31, 2016, it had redevelopment and expansion projects, including the addition of anchors, big box tenants, and restaurants, underway at 27 properties in the United States and it had one outlet and one other retail project under development.

FINANCIAL RATIOS  of  Simon Property Group (SPG)

Valuation Ratios
P/E Ratio 29.9
Price to Sales 10.1
Price to Book 12.8
Price to Tangible Book
Price to Cash Flow 16.3
Price to Free Cash Flow 21.3
Growth Rates
Sales Growth Rate 3.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -21.8%
Cap. Spend. - 3 Yr. Gr. Rate -1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 533.1%
Total Debt to Equity 533.1%
Interest Coverage 3
Management Effectiveness
Return On Assets 8.8%
Ret/ On Assets - 3 Yr. Avg. 8.6%
Return On Total Capital 6.8%
Ret/ On T. Cap. - 3 Yr. Avg. 6.3%
Return On Equity 41.9%
Return On Equity - 3 Yr. Avg. 35.3%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 82.1%
Gross Margin - 3 Yr. Avg. 81.9%
EBITDA Margin 80%
EBITDA Margin - 3 Yr. Avg. 80.9%
Operating Margin 49.1%
Oper. Margin - 3 Yr. Avg. 50.6%
Pre-Tax Margin 39.3%
Pre-Tax Margin - 3 Yr. Avg. 37.7%
Net Profit Margin 33.8%
Net Profit Margin - 3 Yr. Avg. 32.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 110.8%

SPG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SPG stock intrinsic value calculation we used $5539 million for the last fiscal year's total revenue generated by Simon Property Group. The default revenue input number comes from 2017 income statement of Simon Property 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 SPG stock valuation model: a) initial revenue growth rate of 2% 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 SPG is calculated based on our internal credit rating of Simon Property 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 Simon Property 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 SPG stock the variable cost ratio is equal to 17.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1803 million in the base year in the intrinsic value calculation for SPG 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 19.3% for Simon Property Group.

Corporate tax rate of 27% is the nominal tax rate for Simon Property 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 SPG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SPG are equal to 594.4%.

Life of production assets of 10 years is the average useful life of capital assets used in Simon Property 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 SPG is equal to -502.4%. 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 Simon Property 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 311 million for Simon Property 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 Simon Property Group at the current share price and the inputted number of shares is $54.6 billion.

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COMPANY NEWS

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▶ How to Trade Simon Property Group   [Aug-07-18 04:00PM  Bloomberg Video]
▶ How to Trade Simon Property Group   [04:00PM  Bloomberg]
▶ These Bay Area malls are two of this operators best performers in nation   [Aug-03-18 05:00PM  American City Business Journals]
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▶ New general manager appointed at Houston's Galleria mall   [Jul-17-18 04:01PM  American City Business Journals]
▶ Share Buy-back programme at SP Group A/S   [05:08AM  GlobeNewswire]
▶ Technical Traders Shift Focus to Real Estate   [Jul-12-18 10:55AM  Investopedia]
▶ Target to open first Cape Cod store next year   [Jul-10-18 02:39PM  American City Business Journals]
▶ It's Time to Go Long Simon Property Group   [Jul-09-18 12:50PM  TheStreet.com]
▶ Share Buy-back programme at SP Group A/S   [Jul-06-18 08:50AM  GlobeNewswire]
▶ Share Buy-back program at SP Group A/S   [Jun-29-18 05:17AM  GlobeNewswire]
▶ Happy Returns Program Expanding At Simon® Centers   [Jun-27-18 04:45PM  PR Newswire]
▶ Tommy John To Expand Retail Footprint With Simon®   [Jun-25-18 09:00AM  PR Newswire]
▶ Share Buy-back programme at SP Group A/S   [Jun-22-18 06:57AM  GlobeNewswire]
▶ 3 REITs To Help You Sleep Well At Night   [Jun-18-18 07:00AM  Forbes]
▶ 3 Top Mall REITs You Can Buy Right Now   [Jun-15-18 03:24PM  Motley Fool]
▶ Construction to begin soon on Gallerias Blanco Tacos + Tequila   [09:22AM  American City Business Journals]
▶ Share Buy-back programme at SP Group A/S   [07:41AM  GlobeNewswire]
▶ Construction to begin on Spice Route Co. concept in Galleria, to cost up to $5M   [Jun-11-18 03:48PM  American City Business Journals]
▶ Share Buy-back programme at SP Group A/S   [Jun-08-18 06:03AM  GlobeNewswire]
▶ Share Buy-back programme at SP Group A/S   [05:14AM  GlobeNewswire]
▶ 3 Rock-Solid REITs   [07:00AM  Forbes]
▶ Share Buy-back programme at SP Group A/S   [May-25-18 06:44AM  GlobeNewswire]
▶ 3 Top Retail REITs You Can Buy Right Now   [May-23-18 05:31PM  Motley Fool]
▶ Stay, shop. Marriott expands its partnership with Simon.   [07:38AM  American City Business Journals]
▶ Share Buy-back programme at SP Group A/S   [07:13AM  GlobeNewswire]
▶ SouthPark mall nabs new-to-market luxury brands   [02:09PM  American City Business Journals]
▶ Sales of SP Group shares   [10:53AM  GlobeNewswire]
▶ Put REITs In Retirement   [07:00AM  Forbes]
▶ Playing The REIT M&A Game   [May-11-18 10:01AM  Forbes]
▶ Share Buy-back programme at SP Group A/S   [May-09-18 10:52AM  GlobeNewswire]
▶ Can Tanger Factory Outlets Rebound From an 8-Year Low?   [May-06-18 03:00PM  Motley Fool]
▶ Share Buy-back programme at SP Group A/S   [May-04-18 07:36AM  GlobeNewswire]
▶ Houston-area outlet mall undergoes renovations, to welcome new retailers   [May-03-18 02:00PM  American City Business Journals]
▶ Simon Property's Stock Chart Says Buy Strength   [Apr-30-18 11:13AM  TheStreet.com]
▶ 2 Stocks to Avoid (and 1 to Buy)   [08:03AM  Motley Fool]
▶ After Staenberg sale, what happens to Chesterfield's other outlet mall?   [Apr-28-18 07:00AM  American City Business Journals]
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