Intrinsic value of SS&C Technologies Holdings - SSNC

Previous Close

$46.19

  Intrinsic Value

$367.61

stock screener

  Rating & Target

str. buy

+696%

Previous close

$46.19

 
Intrinsic value

$367.61

 
Up/down potential

+696%

 
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 11.0

 

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
  2,680
  4,141
  6,193
  8,986
  12,678
  17,430
  23,396
  30,720
  39,529
  49,929
  62,000
  75,801
  91,366
  108,708
  127,821
  148,686
  171,274
  195,548
  221,468
  248,996
  278,095
  308,736
  340,895
  374,557
  409,717
  446,380
  484,562
  524,287
  565,593
  608,525
Variable operating expenses, $m
  880
  1,083
  1,368
  1,756
  2,269
  2,930
  3,759
  4,777
  6,001
  7,446
  8,616
  10,533
  12,696
  15,106
  17,762
  20,662
  23,800
  27,173
  30,775
  34,601
  38,644
  42,902
  47,371
  52,049
  56,935
  62,029
  67,335
  72,855
  78,595
  84,561
Fixed operating expenses, $m
  562
  574
  587
  600
  613
  627
  640
  655
  669
  684
  699
  714
  730
  746
  762
  779
  796
  814
  832
  850
  869
  888
  907
  927
  948
  968
  990
  1,012
  1,034
  1,057
Total operating expenses, $m
  1,442
  1,657
  1,955
  2,356
  2,882
  3,557
  4,399
  5,432
  6,670
  8,130
  9,315
  11,247
  13,426
  15,852
  18,524
  21,441
  24,596
  27,987
  31,607
  35,451
  39,513
  43,790
  48,278
  52,976
  57,883
  62,997
  68,325
  73,867
  79,629
  85,618
Operating income, $m
  1,238
  2,484
  4,238
  6,630
  9,796
  13,873
  18,997
  25,289
  32,860
  41,799
  52,686
  64,554
  77,940
  92,856
  109,296
  127,246
  146,678
  167,561
  189,861
  213,545
  238,582
  264,946
  292,616
  321,581
  351,835
  383,382
  416,237
  450,420
  485,964
  522,907
EBITDA, $m
  1,939
  3,289
  5,191
  7,784
  11,215
  15,634
  21,186
  28,005
  36,210
  45,897
  57,144
  70,004
  84,509
  100,672
  118,487
  137,936
  158,992
  181,621
  205,785
  231,448
  258,578
  287,144
  317,127
  348,512
  381,294
  415,477
  451,077
  488,117
  526,630
  566,660
Interest expense (income), $m
  127
  110
  203
  338
  527
  784
  1,124
  1,561
  2,111
  2,785
  3,596
  4,554
  5,666
  6,937
  8,370
  9,967
  11,727
  13,648
  15,728
  17,964
  20,351
  22,885
  25,565
  28,387
  31,348
  34,448
  37,686
  41,062
  44,578
  48,236
  52,040
Earnings before tax, $m
  1,128
  2,280
  3,900
  6,103
  9,012
  12,749
  17,435
  23,178
  30,074
  38,203
  48,132
  58,888
  71,003
  84,486
  99,330
  115,519
  133,029
  151,832
  171,898
  193,195
  215,697
  239,381
  264,230
  290,233
  317,387
  345,697
  375,175
  405,843
  437,728
  470,867
Tax expense, $m
  304
  616
  1,053
  1,648
  2,433
  3,442
  4,707
  6,258
  8,120
  10,315
  12,996
  15,900
  19,171
  22,811
  26,819
  31,190
  35,918
  40,995
  46,412
  52,163
  58,238
  64,633
  71,342
  78,363
  85,694
  93,338
  101,297
  109,578
  118,187
  127,134
Net income, $m
  823
  1,665
  2,847
  4,455
  6,579
  9,307
  12,728
  16,920
  21,954
  27,888
  35,136
  42,988
  51,832
  61,675
  72,511
  84,329
  97,111
  110,838
  125,485
  141,032
  157,459
  174,748
  192,888
  211,870
  231,692
  252,359
  273,878
  296,265
  319,541
  343,733

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
  8,876
  13,713
  20,508
  29,756
  41,981
  57,714
  77,470
  101,722
  130,892
  165,327
  205,299
  250,998
  302,537
  359,959
  423,248
  492,339
  567,133
  647,510
  733,338
  824,490
  920,846
  1,022,305
  1,128,791
  1,240,254
  1,356,679
  1,478,081
  1,604,510
  1,736,051
  1,872,824
  2,014,982
Adjusted assets (=assets-cash), $m
  8,876
  13,713
  20,508
  29,756
  41,981
  57,714
  77,470
  101,722
  130,892
  165,327
  205,299
  250,998
  302,537
  359,959
  423,248
  492,339
  567,133
  647,510
  733,338
  824,490
  920,846
  1,022,305
  1,128,791
  1,240,254
  1,356,679
  1,478,081
  1,604,510
  1,736,051
  1,872,824
  2,014,982
Revenue / Adjusted assets
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
Average production assets, $m
  4,259
  6,581
  9,841
  14,279
  20,146
  27,696
  37,176
  48,814
  62,812
  79,337
  98,518
  120,448
  145,181
  172,736
  203,107
  236,263
  272,155
  310,726
  351,913
  395,655
  441,894
  490,582
  541,682
  595,171
  651,040
  709,298
  769,969
  833,093
  898,727
  966,946
Working capital, $m
  -177
  -273
  -409
  -593
  -837
  -1,150
  -1,544
  -2,028
  -2,609
  -3,295
  -4,092
  -5,003
  -6,030
  -7,175
  -8,436
  -9,813
  -11,304
  -12,906
  -14,617
  -16,434
  -18,354
  -20,377
  -22,499
  -24,721
  -27,041
  -29,461
  -31,981
  -34,603
  -37,329
  -40,163
Total debt, $m
  3,763
  6,254
  9,754
  14,516
  20,812
  28,915
  39,089
  51,579
  66,602
  84,336
  104,921
  128,456
  154,998
  184,571
  217,165
  252,747
  291,266
  332,660
  376,861
  423,804
  473,428
  525,679
  580,519
  637,923
  697,882
  760,404
  825,515
  893,258
  963,697
  1,036,908
Total liabilities, $m
  4,571
  7,062
  10,562
  15,324
  21,620
  29,723
  39,897
  52,387
  67,409
  85,144
  105,729
  129,264
  155,806
  185,379
  217,973
  253,554
  292,073
  333,467
  377,669
  424,612
  474,236
  526,487
  581,327
  638,731
  698,690
  761,211
  826,322
  894,066
  964,505
  1,037,716
Total equity, $m
  4,305
  6,651
  9,946
  14,432
  20,361
  27,991
  37,573
  49,335
  63,483
  80,184
  99,570
  121,734
  146,730
  174,580
  205,275
  238,784
  275,059
  314,042
  355,669
  399,878
  446,610
  495,818
  547,463
  601,523
  657,989
  716,869
  778,187
  841,985
  908,320
  977,266
Total liabilities and equity, $m
  8,876
  13,713
  20,508
  29,756
  41,981
  57,714
  77,470
  101,722
  130,892
  165,328
  205,299
  250,998
  302,536
  359,959
  423,248
  492,338
  567,132
  647,509
  733,338
  824,490
  920,846
  1,022,305
  1,128,790
  1,240,254
  1,356,679
  1,478,080
  1,604,509
  1,736,051
  1,872,825
  2,014,982
Debt-to-equity ratio
  0.870
  0.940
  0.980
  1.010
  1.020
  1.030
  1.040
  1.050
  1.050
  1.050
  1.050
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
  1.060
Adjusted equity ratio
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485
  0.485

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  823
  1,665
  2,847
  4,455
  6,579
  9,307
  12,728
  16,920
  21,954
  27,888
  35,136
  42,988
  51,832
  61,675
  72,511
  84,329
  97,111
  110,838
  125,485
  141,032
  157,459
  174,748
  192,888
  211,870
  231,692
  252,359
  273,878
  296,265
  319,541
  343,733
Depreciation, amort., depletion, $m
  700
  805
  953
  1,154
  1,419
  1,761
  2,190
  2,716
  3,350
  4,098
  4,458
  5,450
  6,569
  7,816
  9,190
  10,691
  12,315
  14,060
  15,924
  17,903
  19,995
  22,198
  24,510
  26,931
  29,459
  32,095
  34,840
  37,697
  40,666
  43,753
Funds from operations, $m
  1,524
  2,470
  3,800
  5,609
  7,998
  11,068
  14,917
  19,637
  25,304
  31,986
  39,594
  48,438
  58,402
  69,491
  81,701
  95,019
  109,426
  124,898
  141,409
  158,935
  177,454
  196,946
  217,398
  238,801
  261,151
  284,454
  308,718
  333,962
  360,208
  387,486
Change in working capital, $m
  -66
  -96
  -135
  -184
  -244
  -314
  -394
  -483
  -581
  -686
  -797
  -911
  -1,027
  -1,145
  -1,261
  -1,377
  -1,491
  -1,602
  -1,711
  -1,817
  -1,921
  -2,022
  -2,122
  -2,222
  -2,321
  -2,420
  -2,520
  -2,622
  -2,726
  -2,833
Cash from operations, $m
  1,590
  2,567
  3,936
  5,793
  8,241
  11,382
  15,311
  20,120
  25,886
  32,672
  40,391
  49,349
  59,429
  70,635
  82,962
  96,396
  110,917
  126,500
  143,120
  160,752
  179,375
  198,969
  219,521
  241,022
  263,472
  286,873
  311,238
  336,584
  362,934
  390,320
Maintenance CAPEX, $m
  -120
  -193
  -298
  -445
  -646
  -912
  -1,253
  -1,682
  -2,209
  -2,842
  -3,590
  -4,458
  -5,450
  -6,569
  -7,816
  -9,190
  -10,691
  -12,315
  -14,060
  -15,924
  -17,903
  -19,995
  -22,198
  -24,510
  -26,931
  -29,459
  -32,095
  -34,840
  -37,697
  -40,666
New CAPEX, $m
  -1,597
  -2,321
  -3,261
  -4,438
  -5,867
  -7,550
  -9,480
  -11,638
  -13,998
  -16,525
  -19,182
  -21,930
  -24,732
  -27,556
  -30,371
  -33,155
  -35,892
  -38,571
  -41,187
  -43,742
  -46,239
  -48,688
  -51,100
  -53,489
  -55,870
  -58,258
  -60,671
  -63,124
  -65,634
  -68,219
Cash from investing activities, $m
  -1,717
  -2,514
  -3,559
  -4,883
  -6,513
  -8,462
  -10,733
  -13,320
  -16,207
  -19,367
  -22,772
  -26,388
  -30,182
  -34,125
  -38,187
  -42,345
  -46,583
  -50,886
  -55,247
  -59,666
  -64,142
  -68,683
  -73,298
  -77,999
  -82,801
  -87,717
  -92,766
  -97,964
  -103,331
  -108,885
Free cash flow, $m
  -128
  53
  377
  910
  1,729
  2,920
  4,578
  6,799
  9,679
  13,305
  17,619
  22,962
  29,246
  36,510
  44,775
  54,051
  64,334
  75,614
  87,872
  101,087
  115,233
  130,285
  146,222
  163,023
  180,671
  199,157
  218,473
  238,619
  259,603
  281,435
Issuance/(repayment) of debt, $m
  1,718
  2,491
  3,499
  4,763
  6,296
  8,103
  10,174
  12,490
  15,022
  17,734
  20,585
  23,535
  26,543
  29,572
  32,594
  35,582
  38,519
  41,394
  44,202
  46,943
  49,623
  52,251
  54,840
  57,404
  59,959
  62,522
  65,111
  67,744
  70,438
  73,211
Issuance/(repurchase) of shares, $m
  795
  681
  448
  30
  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 from financing (excl. dividends), $m  
  2,513
  3,172
  3,947
  4,793
  6,296
  8,103
  10,174
  12,490
  15,022
  17,734
  20,585
  23,535
  26,543
  29,572
  32,594
  35,582
  38,519
  41,394
  44,202
  46,943
  49,623
  52,251
  54,840
  57,404
  59,959
  62,522
  65,111
  67,744
  70,438
  73,211
Total cash flow (excl. dividends), $m
  2,385
  3,225
  4,325
  5,703
  8,025
  11,023
  14,752
  19,290
  24,701
  31,039
  38,205
  46,496
  55,789
  66,083
  77,369
  89,633
  102,853
  117,008
  132,074
  148,030
  164,856
  182,537
  201,062
  220,427
  240,630
  261,678
  283,584
  306,363
  330,041
  354,646
Retained Cash Flow (-), $m
  -1,618
  -2,346
  -3,295
  -4,485
  -5,929
  -7,631
  -9,581
  -11,763
  -14,147
  -16,701
  -19,386
  -22,164
  -24,996
  -27,850
  -30,695
  -33,509
  -36,275
  -38,983
  -41,627
  -44,209
  -46,733
  -49,208
  -51,646
  -54,060
  -56,466
  -58,880
  -61,318
  -63,798
  -66,335
  -68,947
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
  767
  879
  1,029
  1,218
  2,095
  3,392
  5,171
  7,527
  10,554
  14,338
  18,818
  24,333
  30,793
  38,233
  46,674
  56,124
  66,578
  78,025
  90,447
  103,821
  118,123
  133,329
  149,417
  166,367
  184,164
  202,799
  222,266
  242,566
  263,706
  285,700
Discount rate, %
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
  718
  766
  829
  899
  1,409
  2,059
  2,808
  3,624
  4,459
  5,259
  5,926
  6,498
  6,886
  7,062
  7,018
  6,766
  6,332
  5,754
  5,079
  4,355
  3,627
  2,933
  2,303
  1,754
  1,295
  927
  642
  430
  279
  174
Current shareholders' claim on cash, %
  93.3
  89.8
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3
  88.3

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 (SSNC)

Valuation Ratios
P/E Ratio 71.6
Price to Sales 6.3
Price to Book 4.2
Price to Tangible Book
Price to Cash Flow 22.4
Price to Free Cash Flow 24.7
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 $1675.295 million for the last fiscal year's total revenue generated by SS&C Technologies Holdings. The default revenue input number comes from 0001 income statement of SS&C Technologies Holdings. 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 6.8%, whose default value for SSNC is calculated based on our internal credit rating of SS&C Technologies Holdings, 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.
    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 44.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $550 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.

Corporate tax rate of 27% is the nominal tax rate for SS&C Technologies Holdings. 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 158.9%.

Life of production assets of 22.1 years is the average useful life of capital assets used in SS&C Technologies Holdings 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 -6.6%. 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 - $2686.4 million for SS&C Technologies Holdings - 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 238.091 million for SS&C Technologies Holdings 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 at the current share price and the inputted number of shares is $11.0 billion.

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COMPANY NEWS

▶ Frank Zitella to Join DAVIDsTEA as Chief Financial Officer   [Nov-21-18 04:34PM  GlobeNewswire]
▶ SS&C GlobeOp Forward Redemption Indicator   [05:00AM  PR Newswire]
▶ SS&C Announces Quarterly Dividend   [Nov-20-18 04:05PM  PR Newswire]
▶ SS&C Completes Acquisition of Intralinks   [Nov-16-18 05:30PM  PR Newswire]
▶ SS&C Technologies 2018 Analyst Day   [Nov-13-18 04:05PM  PR Newswire]
▶ SS&C Technologies: 3Q Earnings Snapshot   [04:16PM  Associated Press]
▶ SS&C Technologies Reports Q3 2018 Results   [04:05PM  PR Newswire]
▶ SS&C GlobeOp Forward Redemption Indicator   [Oct-19-18 05:00AM  PR Newswire]
▶ SS&C to Release Third Quarter 2018 Earnings   [Oct-05-18 04:05PM  PR Newswire]
▶ SS&C Completes Acquisition of Eze Software   [Oct-01-18 04:05PM  PR Newswire]
▶ SS&C Technologies to Host an Analyst Day   [Sep-27-18 09:00AM  PR Newswire]
▶ ALPS Advisors, Inc. To Close An Exchange Traded Fund   [Sep-20-18 04:30PM  PR Newswire]
▶ 5 Fintech Stocks to Buy for the Future of Finance   [Sep-13-18 01:38PM  Kiplinger]
▶ SS&C to Speak at Deutsche Bank Technology Conference   [Sep-10-18 04:05PM  PR Newswire]
▶ SS&C to Acquire Intralinks   [09:13AM  PR Newswire]
▶ SS&C Launches Salentica Data Broker   [09:00AM  PR Newswire]
▶ SS&C to Speak at D.A. Davidson Vertical Tech Day   [Aug-30-18 09:00AM  PR Newswire]
▶ SS&C GlobeOp Forward Redemption Indicator   [Aug-21-18 05:00AM  PR Newswire]
▶ Stocks Cling To Small Gains On Jobs Report; Nvidia Faces Resistance   [Aug-03-18 10:18AM  Investor's Business Daily]
▶ SS&C Technologies: 2Q Earnings Snapshot   [07:21PM  Associated Press]
▶ [$$] SS&C Technologies to Buy Eze Software From TPG   [Jul-31-18 03:13PM  The Wall Street Journal]
▶ SS&C to Acquire Eze Software   [08:00AM  PR Newswire]
▶ Amazon fuels T. Rowe Price U.S. mutual funds past the S&P 500   [Jul-23-18 08:57AM  American City Business Journals]
▶ SS&C GlobeOp Forward Redemption Indicator   [05:00AM  PR Newswire]
▶ SS&C to Release Second Quarter 2018 Earnings   [Jul-12-18 09:00AM  PR Newswire]

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