Intrinsic value of SS&C Technologies Holdings, Inc. - SSNC

Previous Close

$45.45

  Intrinsic Value

$460.06

stock screener

  Rating & Target

str. buy

+912%

Previous close

$45.45

 
Intrinsic value

$460.06

 
Up/down potential

+912%

 
Rating

str. buy

We calculate the intrinsic value of SSNC 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 0001), $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 11.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  5,474
  8,457
  12,647
  18,350
  25,889
  35,592
  47,775
  62,731
  80,720
  101,956
  126,606
  154,788
  186,572
  221,984
  261,014
  303,622
  349,747
  399,314
  452,244
  508,457
  567,879
  630,448
  696,117
  764,856
  836,654
  911,521
  989,489
  1,070,610
  1,154,957
  1,242,625
Variable operating expenses, $m
  3,394
  4,533
  6,133
  8,311
  11,189
  14,894
  19,546
  25,256
  32,125
  40,233
  48,341
  59,102
  71,238
  84,759
  99,662
  115,930
  133,542
  152,468
  172,678
  194,141
  216,830
  240,721
  265,795
  292,041
  319,455
  348,042
  377,812
  408,785
  440,991
  474,465
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
  3,394
  4,533
  6,133
  8,311
  11,189
  14,894
  19,546
  25,256
  32,125
  40,233
  48,341
  59,102
  71,238
  84,759
  99,662
  115,930
  133,542
  152,468
  172,678
  194,141
  216,830
  240,721
  265,795
  292,041
  319,455
  348,042
  377,812
  408,785
  440,991
  474,465
Operating income, $m
  2,080
  3,924
  6,514
  10,040
  14,700
  20,698
  28,229
  37,475
  48,595
  61,723
  78,265
  95,686
  115,334
  137,225
  161,352
  187,691
  216,205
  246,846
  279,566
  314,315
  351,048
  389,727
  430,322
  472,815
  517,199
  563,480
  611,678
  661,824
  713,966
  768,160
EBITDA, $m
  3,813
  5,891
  8,810
  12,783
  18,035
  24,794
  33,281
  43,701
  56,232
  71,026
  88,198
  107,830
  129,971
  154,640
  181,830
  211,511
  243,643
  278,174
  315,046
  354,205
  395,600
  439,188
  484,935
  532,820
  582,837
  634,991
  689,306
  745,817
  804,575
  865,647
Interest expense (income), $m
  127
  446
  822
  1,366
  2,130
  3,170
  4,545
  6,315
  8,536
  11,264
  14,545
  18,418
  22,913
  28,053
  33,850
  40,308
  47,426
  55,197
  63,609
  72,649
  82,302
  92,554
  103,392
  114,803
  126,779
  139,316
  152,410
  166,064
  180,284
  195,078
  210,461
Earnings before tax, $m
  1,634
  3,102
  5,148
  7,910
  11,530
  16,153
  21,915
  28,939
  37,331
  47,178
  59,847
  72,773
  87,281
  103,375
  121,044
  140,265
  161,008
  183,237
  206,917
  232,013
  258,494
  286,336
  315,519
  346,035
  377,883
  411,070
  445,613
  481,541
  518,887
  557,698
Tax expense, $m
  441
  838
  1,390
  2,136
  3,113
  4,361
  5,917
  7,813
  10,079
  12,738
  16,159
  19,649
  23,566
  27,911
  32,682
  37,872
  43,472
  49,474
  55,868
  62,643
  69,793
  77,311
  85,190
  93,430
  102,028
  110,989
  120,316
  130,016
  140,100
  150,579
Net income, $m
  1,193
  2,265
  3,758
  5,774
  8,417
  11,792
  15,998
  21,125
  27,252
  34,440
  43,688
  53,124
  63,715
  75,464
  88,362
  102,393
  117,536
  133,763
  151,049
  169,369
  188,701
  209,025
  230,329
  252,606
  275,855
  300,081
  325,298
  351,525
  378,788
  407,120

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
  25,819
  39,890
  59,656
  86,557
  122,120
  167,887
  225,353
  295,903
  380,755
  480,925
  597,200
  730,134
  880,057
  1,047,094
  1,231,197
  1,432,178
  1,649,748
  1,883,558
  2,133,228
  2,398,381
  2,678,673
  2,973,811
  3,283,570
  3,607,810
  3,946,480
  4,299,629
  4,667,402
  5,050,046
  5,447,910
  5,861,437
Adjusted assets (=assets-cash), $m
  25,819
  39,890
  59,656
  86,557
  122,120
  167,887
  225,353
  295,903
  380,755
  480,925
  597,200
  730,134
  880,057
  1,047,094
  1,231,197
  1,432,178
  1,649,748
  1,883,558
  2,133,228
  2,398,381
  2,678,673
  2,973,811
  3,283,570
  3,607,810
  3,946,480
  4,299,629
  4,667,402
  5,050,046
  5,447,910
  5,861,437
Revenue / Adjusted assets
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
Average production assets, $m
  7,773
  12,009
  17,959
  26,057
  36,763
  50,541
  67,840
  89,079
  114,623
  144,778
  179,781
  219,800
  264,932
  315,217
  370,640
  431,143
  496,640
  567,026
  642,187
  722,009
  806,388
  895,236
  988,486
  1,086,095
  1,188,048
  1,294,360
  1,405,075
  1,520,266
  1,640,039
  1,764,527
Working capital, $m
  66
  101
  152
  220
  311
  427
  573
  753
  969
  1,223
  1,519
  1,857
  2,239
  2,664
  3,132
  3,643
  4,197
  4,792
  5,427
  6,101
  6,815
  7,565
  8,353
  9,178
  10,040
  10,938
  11,874
  12,847
  13,859
  14,911
Total debt, $m
  15,215
  25,290
  39,442
  58,704
  84,166
  116,936
  158,081
  208,595
  269,349
  341,071
  424,324
  519,505
  626,849
  746,448
  878,265
  1,022,168
  1,177,948
  1,345,356
  1,524,120
  1,713,969
  1,914,659
  2,125,977
  2,347,765
  2,579,920
  2,822,408
  3,075,263
  3,338,588
  3,612,562
  3,897,432
  4,193,517
Total liabilities, $m
  18,486
  28,561
  42,713
  61,975
  87,438
  120,207
  161,353
  211,867
  272,621
  344,342
  427,595
  522,776
  630,121
  749,720
  881,537
  1,025,439
  1,181,220
  1,348,628
  1,527,391
  1,717,241
  1,917,930
  2,129,248
  2,351,036
  2,583,192
  2,825,680
  3,078,534
  3,341,860
  3,615,833
  3,900,703
  4,196,789
Total equity, $m
  7,333
  11,329
  16,942
  24,582
  34,682
  47,680
  64,000
  84,037
  108,135
  136,583
  169,605
  207,358
  249,936
  297,375
  349,660
  406,738
  468,529
  534,931
  605,837
  681,140
  760,743
  844,562
  932,534
  1,024,618
  1,120,800
  1,221,095
  1,325,542
  1,434,213
  1,547,206
  1,664,648
Total liabilities and equity, $m
  25,819
  39,890
  59,655
  86,557
  122,120
  167,887
  225,353
  295,904
  380,756
  480,925
  597,200
  730,134
  880,057
  1,047,095
  1,231,197
  1,432,177
  1,649,749
  1,883,559
  2,133,228
  2,398,381
  2,678,673
  2,973,810
  3,283,570
  3,607,810
  3,946,480
  4,299,629
  4,667,402
  5,050,046
  5,447,909
  5,861,437
Debt-to-equity ratio
  2.070
  2.230
  2.330
  2.390
  2.430
  2.450
  2.470
  2.480
  2.490
  2.500
  2.500
  2.510
  2.510
  2.510
  2.510
  2.510
  2.510
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
  2.520
Adjusted equity ratio
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284
  0.284

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,193
  2,265
  3,758
  5,774
  8,417
  11,792
  15,998
  21,125
  27,252
  34,440
  43,688
  53,124
  63,715
  75,464
  88,362
  102,393
  117,536
  133,763
  151,049
  169,369
  188,701
  209,025
  230,329
  252,606
  275,855
  300,081
  325,298
  351,525
  378,788
  407,120
Depreciation, amort., depletion, $m
  1,733
  1,967
  2,296
  2,744
  3,335
  4,096
  5,052
  6,225
  7,637
  9,303
  9,933
  12,144
  14,637
  17,415
  20,477
  23,820
  27,439
  31,327
  35,480
  39,890
  44,552
  49,461
  54,612
  60,005
  65,638
  71,512
  77,628
  83,993
  90,610
  97,488
Funds from operations, $m
  2,926
  4,232
  6,055
  8,518
  11,752
  15,888
  21,050
  27,351
  34,888
  43,743
  53,621
  65,268
  78,352
  92,879
  108,839
  126,213
  144,974
  165,090
  186,529
  209,259
  233,253
  258,486
  284,942
  312,611
  341,493
  371,593
  402,926
  435,517
  469,398
  504,607
Change in working capital, $m
  25
  36
  50
  68
  90
  116
  146
  179
  216
  255
  296
  338
  381
  425
  468
  511
  554
  595
  635
  675
  713
  751
  788
  825
  862
  898
  936
  973
  1,012
  1,052
Cash from operations, $m
  2,901
  4,196
  6,004
  8,449
  11,662
  15,772
  20,904
  27,171
  34,673
  43,488
  53,325
  64,930
  77,971
  92,454
  108,371
  125,702
  144,421
  164,496
  185,894
  208,585
  232,539
  257,735
  284,154
  311,786
  340,631
  370,694
  401,991
  434,544
  468,385
  503,555
Maintenance CAPEX, $m
  -268
  -429
  -663
  -992
  -1,440
  -2,031
  -2,792
  -3,748
  -4,921
  -6,333
  -7,999
  -9,933
  -12,144
  -14,637
  -17,415
  -20,477
  -23,820
  -27,439
  -31,327
  -35,480
  -39,890
  -44,552
  -49,461
  -54,612
  -60,005
  -65,638
  -71,512
  -77,628
  -83,993
  -90,610
New CAPEX, $m
  -2,916
  -4,236
  -5,950
  -8,099
  -10,706
  -13,778
  -17,300
  -21,238
  -25,544
  -30,155
  -35,003
  -40,019
  -45,133
  -50,285
  -55,422
  -60,503
  -65,498
  -70,386
  -75,161
  -79,822
  -84,379
  -88,848
  -93,250
  -97,609
  -101,953
  -106,312
  -110,714
  -115,191
  -119,773
  -124,488
Cash from investing activities, $m
  -3,184
  -4,665
  -6,613
  -9,091
  -12,146
  -15,809
  -20,092
  -24,986
  -30,465
  -36,488
  -43,002
  -49,952
  -57,277
  -64,922
  -72,837
  -80,980
  -89,318
  -97,825
  -106,488
  -115,302
  -124,269
  -133,400
  -142,711
  -152,221
  -161,958
  -171,950
  -182,226
  -192,819
  -203,766
  -215,098
Free cash flow, $m
  -283
  -469
  -609
  -641
  -484
  -37
  812
  2,185
  4,207
  7,000
  10,323
  14,978
  20,694
  27,532
  35,534
  44,722
  55,103
  66,671
  79,406
  93,283
  108,270
  124,335
  141,443
  159,565
  178,672
  198,744
  219,765
  241,724
  264,620
  288,457
Issuance/(repayment) of debt, $m
  6,959
  10,075
  14,152
  19,262
  25,463
  32,769
  41,146
  50,514
  60,754
  71,721
  83,253
  95,181
  107,345
  119,599
  131,817
  143,902
  155,781
  167,408
  178,763
  189,850
  200,689
  211,318
  221,788
  232,156
  242,488
  252,854
  263,325
  273,974
  284,870
  296,086
Issuance/(repurchase) of shares, $m
  1,560
  1,732
  1,855
  1,866
  1,683
  1,206
  323
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  8,519
  11,807
  16,007
  21,128
  27,146
  33,975
  41,469
  50,514
  60,754
  71,721
  83,253
  95,181
  107,345
  119,599
  131,817
  143,902
  155,781
  167,408
  178,763
  189,850
  200,689
  211,318
  221,788
  232,156
  242,488
  252,854
  263,325
  273,974
  284,870
  296,086
Total cash flow (excl. dividends), $m
  8,236
  11,338
  15,398
  20,486
  26,662
  33,938
  42,280
  52,698
  64,961
  78,721
  93,576
  110,159
  128,039
  147,131
  167,351
  188,624
  210,884
  234,079
  258,170
  283,133
  308,959
  335,653
  363,231
  391,720
  421,160
  451,599
  483,090
  515,698
  549,490
  584,543
Retained Cash Flow (-), $m
  -2,753
  -3,996
  -5,613
  -7,640
  -10,100
  -12,998
  -16,320
  -20,036
  -24,098
  -28,448
  -33,022
  -37,753
  -42,578
  -47,439
  -52,285
  -57,079
  -61,790
  -66,402
  -70,906
  -75,304
  -79,603
  -83,819
  -87,972
  -92,084
  -96,182
  -100,294
  -104,447
  -108,671
  -112,993
  -117,442
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  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
  5,483
  7,341
  9,784
  12,846
  16,562
  20,940
  25,960
  32,662
  40,863
  50,273
  60,554
  72,406
  85,461
  99,692
  115,066
  131,545
  149,094
  167,677
  187,263
  207,829
  229,357
  251,834
  275,259
  299,636
  324,978
  351,304
  378,642
  407,026
  436,497
  467,101
Discount rate, %
  10.10
  10.61
  11.14
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.05
  20.00
  21.00
  22.05
  23.15
  24.31
  25.52
  26.80
  28.14
  29.55
  31.02
  32.57
  34.20
  35.91
  37.71
  39.59
  41.57
PV of cash for distribution, $m
  4,980
  6,001
  7,128
  8,254
  9,283
  10,117
  10,676
  11,281
  11,687
  11,727
  11,338
  10,699
  9,788
  8,684
  7,471
  6,233
  5,041
  3,951
  2,999
  2,204
  1,567
  1,077
  715
  457
  282
  167
  96
  52
  27
  14
Current shareholders' claim on cash, %
  88.0
  80.4
  75.5
  72.3
  70.4
  69.4
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2
  69.2

SS&C Technologies Holdings, Inc. is a holding company. The Company is a provider of software products and software-enabled services that allow financial services providers to automate complex business processes and manage their information processing requirements. The Company's portfolio of software products and software-enabled services allows its clients to automate and integrate front-office functions, such as trading and modeling, middle-office functions, such as portfolio management and reporting, and back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing. The Company provides its solutions across the globe to over 11,000 clients, principally within the institutional asset and wealth management, alternative investment management, financial advisory and financial institutions vertical markets. Its portfolio includes over 90 products and software-enabled services.

FINANCIAL RATIOS  of  SS&C Technologies Holdings, Inc. (SSNC)

Valuation Ratios
P/E Ratio 70.4
Price to Sales 6.2
Price to Book 4.1
Price to Tangible Book
Price to Cash Flow 22.1
Price to Free Cash Flow 24.3
Growth Rates
Sales Growth Rate 48.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 111.1%
Cap. Spend. - 3 Yr. Gr. Rate 22.1%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 105.1%
Total Debt to Equity 110.7%
Interest Coverage 2
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 4.1%
Return On Total Capital 2.7%
Ret/ On T. Cap. - 3 Yr. Avg. 3.5%
Return On Equity 6%
Return On Equity - 3 Yr. Avg. 6.2%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 46%
Gross Margin - 3 Yr. Avg. 46.4%
EBITDA Margin 35.1%
EBITDA Margin - 3 Yr. Avg. 33.1%
Operating Margin 19.4%
Oper. Margin - 3 Yr. Avg. 19.7%
Pre-Tax Margin 11.1%
Pre-Tax Margin - 3 Yr. Avg. 13.5%
Net Profit Margin 8.8%
Net Profit Margin - 3 Yr. Avg. 10.1%
Effective Tax Rate 20.1%
Eff/ Tax Rate - 3 Yr. Avg. 25.3%
Payout Ratio 38.2%

SSNC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SSNC stock intrinsic value calculation we used $3421 million for the last fiscal year's total revenue generated by SS&C Technologies Holdings, Inc.. The default revenue input number comes from 0001 income statement of SS&C Technologies Holdings, Inc.. 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 SSNC stock valuation model: a) initial revenue growth rate of 60% 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 10.1%, whose default value for SSNC is calculated based on our internal credit rating of SS&C Technologies Holdings, Inc., 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 SS&C Technologies Holdings, Inc..
    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 SSNC stock the variable cost ratio is equal to 76.3%.

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 SSNC 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 SS&C Technologies Holdings, Inc..

Corporate tax rate of 27% is the nominal tax rate for SS&C Technologies Holdings, Inc.. 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 SSNC 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 SSNC are equal to 142%.

Life of production assets of 18.1 years is the average useful life of capital assets used in SS&C Technologies Holdings, Inc. 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 SSNC is equal to 1.2%. 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 - $4580 million for SS&C Technologies Holdings, Inc. - 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 252.050 million for SS&C Technologies Holdings, Inc. 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 SS&C Technologies Holdings, Inc. at the current share price and the inputted number of shares is $11.5 billion.

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