Intrinsic value of Stanley Black&Decker - SWK

Previous Close

$149.19

  Intrinsic Value

$339.08

stock screener

  Rating & Target

str. buy

+127%

Previous close

$149.19

 
Intrinsic value

$339.08

 
Up/down potential

+127%

 
Rating

str. buy

We calculate the intrinsic value of SWK 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 22.8

 

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, %
  10.90
  10.31
  9.78
  9.30
  8.87
  8.48
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
Revenue, $m
  14,137
  15,594
  17,119
  18,711
  20,371
  22,100
  23,897
  25,767
  27,709
  29,728
  31,826
  34,007
  36,274
  38,631
  41,084
  43,638
  46,297
  49,067
  51,955
  54,967
  58,109
  61,390
  64,816
  68,396
  72,138
  76,050
  80,143
  84,425
  88,907
  93,599
Variable operating expenses, $m
  9,748
  10,626
  11,545
  12,505
  13,505
  14,546
  15,630
  16,756
  17,927
  19,144
  19,180
  20,494
  21,860
  23,281
  24,759
  26,298
  27,900
  29,570
  31,310
  33,125
  35,019
  36,996
  39,061
  41,218
  43,473
  45,831
  48,297
  50,877
  53,578
  56,406
Fixed operating expenses, $m
  1,925
  1,968
  2,011
  2,055
  2,101
  2,147
  2,194
  2,242
  2,292
  2,342
  2,394
  2,446
  2,500
  2,555
  2,611
  2,669
  2,727
  2,787
  2,849
  2,911
  2,975
  3,041
  3,108
  3,176
  3,246
  3,317
  3,390
  3,465
  3,541
  3,619
Total operating expenses, $m
  11,673
  12,594
  13,556
  14,560
  15,606
  16,693
  17,824
  18,998
  20,219
  21,486
  21,574
  22,940
  24,360
  25,836
  27,370
  28,967
  30,627
  32,357
  34,159
  36,036
  37,994
  40,037
  42,169
  44,394
  46,719
  49,148
  51,687
  54,342
  57,119
  60,025
Operating income, $m
  2,464
  3,000
  3,563
  4,151
  4,766
  5,406
  6,074
  6,768
  7,491
  8,243
  10,253
  11,067
  11,914
  12,796
  13,714
  14,671
  15,669
  16,710
  17,796
  18,930
  20,115
  21,353
  22,648
  24,002
  25,419
  26,902
  28,455
  30,082
  31,787
  33,574
EBITDA, $m
  3,981
  4,547
  5,141
  5,762
  6,410
  7,086
  7,790
  8,522
  9,285
  10,078
  10,903
  11,761
  12,654
  13,584
  14,553
  15,562
  16,614
  17,712
  18,857
  20,052
  21,301
  22,606
  23,971
  25,398
  26,891
  28,454
  30,091
  31,806
  33,602
  35,484
Interest expense (income), $m
  177
  221
  289
  361
  436
  514
  596
  681
  769
  861
  956
  1,055
  1,159
  1,266
  1,377
  1,493
  1,613
  1,739
  1,869
  2,006
  2,147
  2,295
  2,450
  2,611
  2,779
  2,955
  3,139
  3,331
  3,532
  3,743
  3,963
Earnings before tax, $m
  2,243
  2,711
  3,202
  3,716
  4,252
  4,811
  5,393
  5,999
  6,630
  7,286
  9,198
  9,908
  10,648
  11,419
  12,221
  13,058
  13,930
  14,841
  15,791
  16,783
  17,820
  18,903
  20,037
  21,222
  22,464
  23,763
  25,124
  26,550
  28,044
  29,611
Tax expense, $m
  605
  732
  865
  1,003
  1,148
  1,299
  1,456
  1,620
  1,790
  1,967
  2,483
  2,675
  2,875
  3,083
  3,300
  3,526
  3,761
  4,007
  4,263
  4,531
  4,811
  5,104
  5,410
  5,730
  6,065
  6,416
  6,783
  7,168
  7,572
  7,995
Net income, $m
  1,637
  1,979
  2,337
  2,712
  3,104
  3,512
  3,937
  4,379
  4,840
  5,319
  6,714
  7,233
  7,773
  8,336
  8,922
  9,532
  10,169
  10,834
  11,527
  12,252
  13,008
  13,799
  14,627
  15,492
  16,398
  17,347
  18,340
  19,381
  20,472
  21,616

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
  21,194
  23,380
  25,666
  28,053
  30,542
  33,133
  35,828
  38,631
  41,543
  44,570
  47,715
  50,985
  54,383
  57,918
  61,596
  65,424
  69,410
  73,564
  77,894
  82,409
  87,121
  92,039
  97,176
  102,543
  108,152
  114,018
  120,154
  126,574
  133,293
  140,328
Adjusted assets (=assets-cash), $m
  21,194
  23,380
  25,666
  28,053
  30,542
  33,133
  35,828
  38,631
  41,543
  44,570
  47,715
  50,985
  54,383
  57,918
  61,596
  65,424
  69,410
  73,564
  77,894
  82,409
  87,121
  92,039
  97,176
  102,543
  108,152
  114,018
  120,154
  126,574
  133,293
  140,328
Revenue / Adjusted assets
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
  0.667
Average production assets, $m
  7,676
  8,468
  9,296
  10,160
  11,062
  12,000
  12,976
  13,991
  15,046
  16,142
  17,282
  18,466
  19,697
  20,977
  22,309
  23,695
  25,139
  26,643
  28,212
  29,847
  31,553
  33,335
  35,195
  37,139
  39,171
  41,295
  43,517
  45,843
  48,276
  50,824
Working capital, $m
  565
  624
  685
  748
  815
  884
  956
  1,031
  1,108
  1,189
  1,273
  1,360
  1,451
  1,545
  1,643
  1,746
  1,852
  1,963
  2,078
  2,199
  2,324
  2,456
  2,593
  2,736
  2,886
  3,042
  3,206
  3,377
  3,556
  3,744
Total debt, $m
  4,990
  6,225
  7,517
  8,865
  10,271
  11,735
  13,258
  14,842
  16,487
  18,198
  19,975
  21,822
  23,742
  25,739
  27,817
  29,980
  32,232
  34,579
  37,025
  39,577
  42,239
  45,018
  47,920
  50,952
  54,122
  57,436
  60,902
  64,530
  68,326
  72,301
Total liabilities, $m
  11,975
  13,209
  14,501
  15,850
  17,256
  18,720
  20,243
  21,826
  23,472
  25,182
  26,959
  28,806
  30,727
  32,724
  34,802
  36,965
  39,217
  41,564
  44,010
  46,561
  49,223
  52,002
  54,904
  57,937
  61,106
  64,420
  67,887
  71,514
  75,311
  79,285
Total equity, $m
  9,220
  10,170
  11,165
  12,203
  13,286
  14,413
  15,585
  16,804
  18,071
  19,388
  20,756
  22,178
  23,657
  25,194
  26,794
  28,459
  30,194
  32,000
  33,884
  35,848
  37,897
  40,037
  42,271
  44,606
  47,046
  49,598
  52,267
  55,060
  57,983
  61,043
Total liabilities and equity, $m
  21,195
  23,379
  25,666
  28,053
  30,542
  33,133
  35,828
  38,630
  41,543
  44,570
  47,715
  50,984
  54,384
  57,918
  61,596
  65,424
  69,411
  73,564
  77,894
  82,409
  87,120
  92,039
  97,175
  102,543
  108,152
  114,018
  120,154
  126,574
  133,294
  140,328
Debt-to-equity ratio
  0.540
  0.610
  0.670
  0.730
  0.770
  0.810
  0.850
  0.880
  0.910
  0.940
  0.960
  0.980
  1.000
  1.020
  1.040
  1.050
  1.070
  1.080
  1.090
  1.100
  1.110
  1.120
  1.130
  1.140
  1.150
  1.160
  1.170
  1.170
  1.180
  1.180
Adjusted equity ratio
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,637
  1,979
  2,337
  2,712
  3,104
  3,512
  3,937
  4,379
  4,840
  5,319
  6,714
  7,233
  7,773
  8,336
  8,922
  9,532
  10,169
  10,834
  11,527
  12,252
  13,008
  13,799
  14,627
  15,492
  16,398
  17,347
  18,340
  19,381
  20,472
  21,616
Depreciation, amort., depletion, $m
  1,517
  1,547
  1,578
  1,610
  1,644
  1,679
  1,716
  1,754
  1,794
  1,835
  650
  694
  740
  789
  839
  891
  945
  1,002
  1,061
  1,122
  1,186
  1,253
  1,323
  1,396
  1,473
  1,552
  1,636
  1,723
  1,815
  1,911
Funds from operations, $m
  3,154
  3,526
  3,915
  4,323
  4,748
  5,191
  5,653
  6,134
  6,634
  7,154
  7,364
  7,927
  8,514
  9,124
  9,760
  10,423
  11,114
  11,835
  12,588
  13,374
  14,195
  15,053
  15,950
  16,889
  17,871
  18,899
  19,976
  21,105
  22,287
  23,526
Change in working capital, $m
  56
  58
  61
  64
  66
  69
  72
  75
  78
  81
  84
  87
  91
  94
  98
  102
  106
  111
  116
  120
  126
  131
  137
  143
  150
  156
  164
  171
  179
  188
Cash from operations, $m
  3,098
  3,467
  3,854
  4,259
  4,682
  5,122
  5,581
  6,059
  6,556
  7,073
  7,280
  7,840
  8,423
  9,030
  9,662
  10,321
  11,008
  11,724
  12,472
  13,253
  14,069
  14,921
  15,813
  16,745
  17,721
  18,743
  19,813
  20,933
  22,108
  23,339
Maintenance CAPEX, $m
  -260
  -289
  -318
  -349
  -382
  -416
  -451
  -488
  -526
  -566
  -607
  -650
  -694
  -740
  -789
  -839
  -891
  -945
  -1,002
  -1,061
  -1,122
  -1,186
  -1,253
  -1,323
  -1,396
  -1,473
  -1,552
  -1,636
  -1,723
  -1,815
New CAPEX, $m
  -760
  -791
  -828
  -865
  -901
  -938
  -976
  -1,015
  -1,055
  -1,096
  -1,139
  -1,184
  -1,231
  -1,280
  -1,332
  -1,386
  -1,444
  -1,504
  -1,568
  -1,635
  -1,706
  -1,781
  -1,860
  -1,944
  -2,032
  -2,124
  -2,222
  -2,325
  -2,434
  -2,548
Cash from investing activities, $m
  -1,020
  -1,080
  -1,146
  -1,214
  -1,283
  -1,354
  -1,427
  -1,503
  -1,581
  -1,662
  -1,746
  -1,834
  -1,925
  -2,020
  -2,121
  -2,225
  -2,335
  -2,449
  -2,570
  -2,696
  -2,828
  -2,967
  -3,113
  -3,267
  -3,428
  -3,597
  -3,774
  -3,961
  -4,157
  -4,363
Free cash flow, $m
  2,078
  2,387
  2,708
  3,045
  3,398
  3,768
  4,154
  4,556
  4,975
  5,412
  5,534
  6,006
  6,498
  7,009
  7,542
  8,096
  8,673
  9,275
  9,903
  10,557
  11,240
  11,954
  12,699
  13,478
  14,293
  15,146
  16,038
  16,972
  17,951
  18,976
Issuance/(repayment) of debt, $m
  1,179
  1,235
  1,292
  1,349
  1,406
  1,464
  1,523
  1,583
  1,646
  1,710
  1,777
  1,847
  1,920
  1,997
  2,078
  2,163
  2,252
  2,347
  2,446
  2,551
  2,662
  2,779
  2,902
  3,032
  3,169
  3,314
  3,467
  3,627
  3,797
  3,975
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,179
  1,235
  1,292
  1,349
  1,406
  1,464
  1,523
  1,583
  1,646
  1,710
  1,777
  1,847
  1,920
  1,997
  2,078
  2,163
  2,252
  2,347
  2,446
  2,551
  2,662
  2,779
  2,902
  3,032
  3,169
  3,314
  3,467
  3,627
  3,797
  3,975
Total cash flow (excl. dividends), $m
  3,258
  3,622
  4,000
  4,394
  4,804
  5,232
  5,677
  6,139
  6,621
  7,122
  7,311
  7,853
  8,418
  9,006
  9,619
  10,259
  10,926
  11,622
  12,349
  13,108
  13,902
  14,733
  15,602
  16,511
  17,463
  18,460
  19,505
  20,600
  21,747
  22,951
Retained Cash Flow (-), $m
  -917
  -951
  -995
  -1,038
  -1,083
  -1,127
  -1,173
  -1,219
  -1,267
  -1,317
  -1,368
  -1,422
  -1,478
  -1,538
  -1,600
  -1,665
  -1,734
  -1,807
  -1,883
  -1,964
  -2,050
  -2,140
  -2,234
  -2,335
  -2,440
  -2,552
  -2,669
  -2,793
  -2,923
  -3,060
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
  2,340
  2,671
  3,005
  3,355
  3,722
  4,105
  4,504
  4,920
  5,354
  5,805
  5,943
  6,431
  6,940
  7,469
  8,020
  8,593
  9,192
  9,815
  10,465
  11,144
  11,853
  12,593
  13,367
  14,176
  15,023
  15,908
  16,836
  17,807
  18,824
  19,890
Discount rate, %
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
  2,235
  2,426
  2,582
  2,714
  2,819
  2,894
  2,937
  2,948
  2,926
  2,872
  2,640
  2,543
  2,420
  2,275
  2,111
  1,934
  1,747
  1,556
  1,366
  1,181
  1,005
  840
  691
  557
  441
  342
  260
  193
  140
  99
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

Stanley Black & Decker, Inc. is a global provider of hand tools, power tools and related accessories, mechanical access solutions, such as automatic doors and commercial locking systems, electronic security and monitoring systems, healthcare solutions, engineered fastening systems, and products and services for various industrial applications. The Company's segments include Tools & Storage, Security and Industrial. Its Tools & Storage segment consists of the Power Tools and Hand Tools, Accessories and Storage businesses. Its Security segment consists of the Convergent Security Solutions and Mechanical Access Solutions businesses. Its Industrial segment consists of the Engineered Fastening and Infrastructure businesses. It offers brands, such as SIDCHROME, AeroScout, DEWALT, Newell Tools and Craftsman, Irwin, Lenox, Craftsman, BLACK+DECKER, SONITROL, Warren, GRIPCO, Porter-Cable, BOSTITCH and WanderGuard.

FINANCIAL RATIOS  of  Stanley Black&Decker (SWK)

Valuation Ratios
P/E Ratio 23.6
Price to Sales 2
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 15.3
Price to Free Cash Flow 20
Growth Rates
Sales Growth Rate 2.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 11.6%
Cap. Spend. - 3 Yr. Gr. Rate 0.4%
Financial Strength
Quick Ratio 94
Current Ratio 0.2
LT Debt to Equity 59.9%
Total Debt to Equity 60.1%
Interest Coverage 8
Management Effectiveness
Return On Assets 7.2%
Ret/ On Assets - 3 Yr. Avg. 6.5%
Return On Total Capital 9.7%
Ret/ On T. Cap. - 3 Yr. Avg. 8.6%
Return On Equity 15.8%
Return On Equity - 3 Yr. Avg. 13.9%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 37.4%
Gross Margin - 3 Yr. Avg. 36.7%
EBITDA Margin 15.9%
EBITDA Margin - 3 Yr. Avg. 15.5%
Operating Margin 12.2%
Oper. Margin - 3 Yr. Avg. 11.7%
Pre-Tax Margin 10.7%
Pre-Tax Margin - 3 Yr. Avg. 10.2%
Net Profit Margin 8.5%
Net Profit Margin - 3 Yr. Avg. 7.7%
Effective Tax Rate 21.3%
Eff/ Tax Rate - 3 Yr. Avg. 21.3%
Payout Ratio 34.3%

SWK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SWK stock intrinsic value calculation we used $12747.2 million for the last fiscal year's total revenue generated by Stanley Black&Decker. The default revenue input number comes from 0001 income statement of Stanley Black&Decker. 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 SWK stock valuation model: a) initial revenue growth rate of 10.9% 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 4.7%, whose default value for SWK is calculated based on our internal credit rating of Stanley Black&Decker, 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 Stanley Black&Decker.
    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 SWK stock the variable cost ratio is equal to 69.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1884 million in the base year in the intrinsic value calculation for SWK 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 5.8% for Stanley Black&Decker.

Corporate tax rate of 27% is the nominal tax rate for Stanley Black&Decker. 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 SWK 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 SWK are equal to 54.3%.

Life of production assets of 26.6 years is the average useful life of capital assets used in Stanley Black&Decker 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 SWK is equal to 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 - $8302.2 million for Stanley Black&Decker - 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 153.01 million for Stanley Black&Decker 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 Stanley Black&Decker at the current share price and the inputted number of shares is $22.8 billion.

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COMPANY NEWS

▶ Deals of the day-Mergers and acquisitions   [Sep-12-18 04:03PM  Reuters]
▶ 3 Growth Stocks to Buy and Hold for the Next 50 Years   [Aug-31-18 08:23AM  Motley Fool]
▶ Sears and Stanley Black & Decker each to sell popular Craftsman tools   [Aug-20-18 05:41PM  American City Business Journals]
▶ 3 Unknown but Amazing Dividend Stocks   [Aug-17-18 07:15AM  Motley Fool]
▶ Stanley Black & Decker touts Baltimore as 'new home' of Craftsman brand   [Aug-16-18 02:55PM  American City Business Journals]
▶ [$$] Stanley Black & Decker to Buy IES Attachments for $690 Million   [Aug-07-18 10:02AM  The Wall Street Journal]
▶ Love Dividends? 3 Stocks You Might Want to Buy   [Aug-04-18 08:30AM  Motley Fool]
▶ [$$] Cost impact of tariffs laid bare in corporate earnings   [Jul-26-18 12:00AM  Financial Times]
▶ Stanley Black & Decker Higher on Q2 Earnings   [12:34PM  InvestorPlace]
▶ Stanley Black & Decker: 2Q Earnings Snapshot   [06:09AM  Associated Press]
▶ [$$] Defense Industry Adds Venture Capital to Its Arsenal   [Jul-05-18 08:42PM  The Wall Street Journal]
▶ [$$] Defense Industry Adds Venture Capital to Its Arsenal   [08:00AM  The Wall Street Journal]
▶ 5 Top Dividend Kings to Buy and Hold Forever   [Jun-22-18 02:03PM  Motley Fool]
▶ Skanska demos construction tech being tested in planning, on job sites   [Jun-06-18 08:01AM  American City Business Journals]
▶ 3 Top Stocks Wall Street Is Overlooking   [Jun-01-18 10:15AM  Motley Fool]
▶ Craftsman Tools at Lowe's: Bad News for Sears Holdings   [May-20-18 10:18AM  Motley Fool]
▶ 3 Baby Bonds Paying Over 5.5%   [May-14-18 03:05PM  InvestorPlace]
▶ Craftsman tools now stocked in Lowe's stores   [08:14AM  American City Business Journals]
▶ The End Game for Sears Holding Corp Has Begun   [May-03-18 08:33PM  InvestorPlace]
▶ Stanley Black & Decker: 1Q Earnings Snapshot   [06:55AM  Associated Press]
▶ Edited Transcript of SWK presentation 6-Mar-17 2:15pm GMT   [Apr-10-18 03:04PM  Thomson Reuters StreetEvents]
▶ 3 Great Stocks for Low-Risk Investors   [Mar-01-18 06:30AM  Motley Fool]
▶ Stanley Black & Decker Announces 1st Quarter Dividend   [Feb-27-18 03:29PM  PR Newswire]

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