Intrinsic value of Sysco - SYY

Previous Close

$70.88

  Intrinsic Value

$49.74

stock screener

  Rating & Target

sell

-30%

Previous close

$70.88

 
Intrinsic value

$49.74

 
Up/down potential

-30%

 
Rating

sell

We calculate the intrinsic value of SYY 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 38.5

 

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, %
  9.90
  9.41
  8.97
  8.57
  8.21
  7.89
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.25
  6.12
  6.01
  5.91
  5.82
  5.74
  5.66
  5.60
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
Revenue, $m
  60,853
  66,579
  72,550
  78,770
  85,240
  91,969
  98,962
  106,230
  113,782
  121,631
  129,790
  138,276
  147,103
  156,290
  165,857
  175,823
  186,211
  197,043
  208,344
  220,140
  232,459
  245,328
  258,778
  272,841
  287,549
  302,938
  319,044
  335,906
  353,562
  372,057
Variable operating expenses, $m
  58,309
  63,749
  69,422
  75,331
  81,478
  87,871
  94,515
  101,419
  108,594
  116,051
  123,308
  131,369
  139,756
  148,484
  157,573
  167,041
  176,910
  187,201
  197,938
  209,145
  220,848
  233,075
  245,853
  259,213
  273,187
  287,808
  303,109
  319,128
  335,903
  353,474
Fixed operating expenses, $m
  221
  226
  231
  236
  241
  246
  252
  257
  263
  269
  274
  280
  287
  293
  299
  306
  313
  320
  327
  334
  341
  349
  356
  364
  372
  380
  389
  397
  406
  415
Total operating expenses, $m
  58,530
  63,975
  69,653
  75,567
  81,719
  88,117
  94,767
  101,676
  108,857
  116,320
  123,582
  131,649
  140,043
  148,777
  157,872
  167,347
  177,223
  187,521
  198,265
  209,479
  221,189
  233,424
  246,209
  259,577
  273,559
  288,188
  303,498
  319,525
  336,309
  353,889
Operating income, $m
  2,323
  2,604
  2,898
  3,203
  3,521
  3,852
  4,196
  4,553
  4,925
  5,311
  6,208
  6,626
  7,061
  7,513
  7,985
  8,476
  8,988
  9,522
  10,080
  10,662
  11,269
  11,905
  12,569
  13,263
  13,990
  14,751
  15,547
  16,380
  17,253
  18,168
EBITDA, $m
  3,671
  4,032
  4,409
  4,801
  5,210
  5,635
  6,077
  6,536
  7,013
  7,509
  8,025
  8,562
  9,120
  9,701
  10,307
  10,937
  11,595
  12,281
  12,996
  13,744
  14,524
  15,339
  16,192
  17,083
  18,016
  18,992
  20,013
  21,083
  22,203
  23,377
Interest expense (income), $m
  285
  443
  525
  611
  700
  794
  891
  992
  1,097
  1,206
  1,319
  1,437
  1,559
  1,686
  1,819
  1,956
  2,100
  2,249
  2,405
  2,568
  2,737
  2,914
  3,099
  3,292
  3,493
  3,704
  3,925
  4,156
  4,397
  4,650
  4,915
Earnings before tax, $m
  1,881
  2,079
  2,287
  2,503
  2,728
  2,961
  3,204
  3,457
  3,719
  3,992
  4,772
  5,067
  5,375
  5,695
  6,028
  6,376
  6,739
  7,117
  7,512
  7,924
  8,355
  8,806
  9,277
  9,770
  10,286
  10,826
  11,391
  11,983
  12,603
  13,253
Tax expense, $m
  508
  561
  617
  676
  736
  800
  865
  933
  1,004
  1,078
  1,288
  1,368
  1,451
  1,538
  1,628
  1,722
  1,819
  1,922
  2,028
  2,140
  2,256
  2,378
  2,505
  2,638
  2,777
  2,923
  3,076
  3,235
  3,403
  3,578
Net income, $m
  1,373
  1,518
  1,669
  1,827
  1,991
  2,162
  2,339
  2,523
  2,715
  2,914
  3,483
  3,699
  3,923
  4,157
  4,401
  4,655
  4,919
  5,195
  5,484
  5,785
  6,100
  6,428
  6,772
  7,132
  7,509
  7,903
  8,315
  8,747
  9,200
  9,675

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
  19,517
  21,353
  23,268
  25,263
  27,338
  29,496
  31,739
  34,070
  36,492
  39,009
  41,626
  44,348
  47,179
  50,125
  53,193
  56,390
  59,721
  63,195
  66,820
  70,603
  74,554
  78,681
  82,995
  87,505
  92,222
  97,158
  102,323
  107,731
  113,394
  119,325
Adjusted assets (=assets-cash), $m
  19,517
  21,353
  23,268
  25,263
  27,338
  29,496
  31,739
  34,070
  36,492
  39,009
  41,626
  44,348
  47,179
  50,125
  53,193
  56,390
  59,721
  63,195
  66,820
  70,603
  74,554
  78,681
  82,995
  87,505
  92,222
  97,158
  102,323
  107,731
  113,394
  119,325
Revenue / Adjusted assets
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
  3.118
Average production assets, $m
  8,519
  9,321
  10,157
  11,028
  11,934
  12,876
  13,855
  14,872
  15,929
  17,028
  18,171
  19,359
  20,594
  21,881
  23,220
  24,615
  26,069
  27,586
  29,168
  30,820
  32,544
  34,346
  36,229
  38,198
  40,257
  42,411
  44,666
  47,027
  49,499
  52,088
Working capital, $m
  -1,095
  -1,198
  -1,306
  -1,418
  -1,534
  -1,655
  -1,781
  -1,912
  -2,048
  -2,189
  -2,336
  -2,489
  -2,648
  -2,813
  -2,985
  -3,165
  -3,352
  -3,547
  -3,750
  -3,963
  -4,184
  -4,416
  -4,658
  -4,911
  -5,176
  -5,453
  -5,743
  -6,046
  -6,364
  -6,697
Total debt, $m
  9,722
  11,312
  12,971
  14,698
  16,495
  18,364
  20,306
  22,325
  24,422
  26,602
  28,868
  31,225
  33,677
  36,229
  38,886
  41,654
  44,539
  47,547
  50,686
  53,962
  57,384
  60,958
  64,694
  68,600
  72,685
  76,959
  81,432
  86,115
  91,019
  96,156
Total liabilities, $m
  16,901
  18,492
  20,150
  21,878
  23,675
  25,544
  27,486
  29,504
  31,602
  33,782
  36,048
  38,405
  40,857
  43,408
  46,065
  48,833
  51,719
  54,727
  57,866
  61,142
  64,564
  68,138
  71,874
  75,779
  79,865
  84,139
  88,612
  93,295
  98,199
  103,336
Total equity, $m
  2,615
  2,861
  3,118
  3,385
  3,663
  3,952
  4,253
  4,565
  4,890
  5,227
  5,578
  5,943
  6,322
  6,717
  7,128
  7,556
  8,003
  8,468
  8,954
  9,461
  9,990
  10,543
  11,121
  11,726
  12,358
  13,019
  13,711
  14,436
  15,195
  15,990
Total liabilities and equity, $m
  19,516
  21,353
  23,268
  25,263
  27,338
  29,496
  31,739
  34,069
  36,492
  39,009
  41,626
  44,348
  47,179
  50,125
  53,193
  56,389
  59,722
  63,195
  66,820
  70,603
  74,554
  78,681
  82,995
  87,505
  92,223
  97,158
  102,323
  107,731
  113,394
  119,326
Debt-to-equity ratio
  3.720
  3.950
  4.160
  4.340
  4.500
  4.650
  4.770
  4.890
  4.990
  5.090
  5.180
  5.250
  5.330
  5.390
  5.460
  5.510
  5.570
  5.610
  5.660
  5.700
  5.740
  5.780
  5.820
  5.850
  5.880
  5.910
  5.940
  5.970
  5.990
  6.010
Adjusted equity ratio
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134
  0.134

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,373
  1,518
  1,669
  1,827
  1,991
  2,162
  2,339
  2,523
  2,715
  2,914
  3,483
  3,699
  3,923
  4,157
  4,401
  4,655
  4,919
  5,195
  5,484
  5,785
  6,100
  6,428
  6,772
  7,132
  7,509
  7,903
  8,315
  8,747
  9,200
  9,675
Depreciation, amort., depletion, $m
  1,347
  1,428
  1,511
  1,598
  1,689
  1,783
  1,881
  1,983
  2,088
  2,198
  1,817
  1,936
  2,059
  2,188
  2,322
  2,462
  2,607
  2,759
  2,917
  3,082
  3,254
  3,435
  3,623
  3,820
  4,026
  4,241
  4,467
  4,703
  4,950
  5,209
Funds from operations, $m
  2,720
  2,945
  3,181
  3,425
  3,680
  3,945
  4,220
  4,506
  4,803
  5,113
  5,300
  5,635
  5,983
  6,345
  6,723
  7,116
  7,526
  7,954
  8,401
  8,867
  9,354
  9,863
  10,395
  10,952
  11,534
  12,144
  12,782
  13,450
  14,150
  14,884
Change in working capital, $m
  -99
  -103
  -107
  -112
  -116
  -121
  -126
  -131
  -136
  -141
  -147
  -153
  -159
  -165
  -172
  -179
  -187
  -195
  -203
  -212
  -222
  -232
  -242
  -253
  -265
  -277
  -290
  -304
  -318
  -333
Cash from operations, $m
  2,819
  3,049
  3,288
  3,537
  3,796
  4,066
  4,346
  4,637
  4,939
  5,254
  5,447
  5,788
  6,142
  6,511
  6,895
  7,295
  7,713
  8,149
  8,604
  9,079
  9,576
  10,095
  10,637
  11,205
  11,799
  12,421
  13,072
  13,754
  14,468
  15,216
Maintenance CAPEX, $m
  -777
  -852
  -932
  -1,016
  -1,103
  -1,193
  -1,288
  -1,385
  -1,487
  -1,593
  -1,703
  -1,817
  -1,936
  -2,059
  -2,188
  -2,322
  -2,462
  -2,607
  -2,759
  -2,917
  -3,082
  -3,254
  -3,435
  -3,623
  -3,820
  -4,026
  -4,241
  -4,467
  -4,703
  -4,950
New CAPEX, $m
  -749
  -802
  -836
  -871
  -906
  -942
  -979
  -1,017
  -1,057
  -1,099
  -1,142
  -1,188
  -1,236
  -1,286
  -1,339
  -1,395
  -1,454
  -1,517
  -1,582
  -1,651
  -1,725
  -1,802
  -1,883
  -1,969
  -2,059
  -2,154
  -2,255
  -2,361
  -2,472
  -2,589
Cash from investing activities, $m
  -1,526
  -1,654
  -1,768
  -1,887
  -2,009
  -2,135
  -2,267
  -2,402
  -2,544
  -2,692
  -2,845
  -3,005
  -3,172
  -3,345
  -3,527
  -3,717
  -3,916
  -4,124
  -4,341
  -4,568
  -4,807
  -5,056
  -5,318
  -5,592
  -5,879
  -6,180
  -6,496
  -6,828
  -7,175
  -7,539
Free cash flow, $m
  1,293
  1,395
  1,520
  1,651
  1,788
  1,930
  2,079
  2,234
  2,395
  2,562
  2,602
  2,783
  2,970
  3,165
  3,367
  3,578
  3,797
  4,026
  4,263
  4,511
  4,769
  5,039
  5,320
  5,613
  5,920
  6,241
  6,576
  6,926
  7,293
  7,677
Issuance/(repayment) of debt, $m
  1,527
  1,590
  1,659
  1,727
  1,797
  1,869
  1,942
  2,018
  2,098
  2,180
  2,266
  2,357
  2,452
  2,552
  2,657
  2,768
  2,885
  3,009
  3,139
  3,276
  3,421
  3,574
  3,736
  3,906
  4,085
  4,274
  4,473
  4,683
  4,904
  5,137
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  
  1,527
  1,590
  1,659
  1,727
  1,797
  1,869
  1,942
  2,018
  2,098
  2,180
  2,266
  2,357
  2,452
  2,552
  2,657
  2,768
  2,885
  3,009
  3,139
  3,276
  3,421
  3,574
  3,736
  3,906
  4,085
  4,274
  4,473
  4,683
  4,904
  5,137
Total cash flow (excl. dividends), $m
  2,820
  2,985
  3,178
  3,378
  3,585
  3,799
  4,022
  4,252
  4,492
  4,742
  4,868
  5,139
  5,422
  5,717
  6,025
  6,346
  6,682
  7,034
  7,402
  7,787
  8,190
  8,613
  9,055
  9,519
  10,005
  10,515
  11,049
  11,610
  12,197
  12,814
Retained Cash Flow (-), $m
  -233
  -246
  -257
  -267
  -278
  -289
  -301
  -312
  -325
  -337
  -351
  -365
  -379
  -395
  -411
  -428
  -446
  -466
  -486
  -507
  -529
  -553
  -578
  -604
  -632
  -661
  -692
  -725
  -759
  -795
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
  55
  61
  67
  73
  79
  85
  92
  99
  106
  114
  122
  130
  138
  147
  156
  166
  176
  186
  197
  208
  220
  232
  245
  259
  273
  288
  303
  319
  336
  354
Cash available for distribution, $m
  2,586
  2,739
  2,922
  3,111
  3,307
  3,510
  3,721
  3,940
  4,168
  4,405
  4,518
  4,775
  5,042
  5,322
  5,613
  5,918
  6,236
  6,569
  6,916
  7,280
  7,661
  8,060
  8,477
  8,915
  9,373
  9,853
  10,357
  10,885
  11,439
  12,019
Discount rate, %
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for distribution, $m
  2,401
  2,345
  2,288
  2,211
  2,114
  2,000
  1,871
  1,730
  1,580
  1,425
  1,232
  1,082
  936
  798
  668
  550
  444
  352
  274
  208
  154
  112
  79
  55
  37
  24
  15
  9
  5
  3
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

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company's segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company's specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.

FINANCIAL RATIOS  of  Sysco (SYY)

Valuation Ratios
P/E Ratio 32.9
Price to Sales 0.7
Price to Book 15.8
Price to Tangible Book
Price to Cash Flow 17.3
Price to Free Cash Flow 25.2
Growth Rates
Sales Growth Rate 9.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 30.2%
Cap. Spend. - 3 Yr. Gr. Rate 5.6%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 321.6%
Total Debt to Equity 344%
Interest Coverage 7
Management Effectiveness
Return On Assets 7.7%
Ret/ On Assets - 3 Yr. Avg. 6.4%
Return On Total Capital 10.6%
Ret/ On T. Cap. - 3 Yr. Avg. 8.5%
Return On Equity 39%
Return On Equity - 3 Yr. Avg. 24.6%
Asset Turnover 3.2
Profitability Ratios
Gross Margin 19.1%
Gross Margin - 3 Yr. Avg. 18.2%
EBITDA Margin 5.3%
EBITDA Margin - 3 Yr. Avg. 4.5%
Operating Margin 3.7%
Oper. Margin - 3 Yr. Avg. 3.3%
Pre-Tax Margin 3.2%
Pre-Tax Margin - 3 Yr. Avg. 2.7%
Net Profit Margin 2.1%
Net Profit Margin - 3 Yr. Avg. 1.8%
Effective Tax Rate 35.3%
Eff/ Tax Rate - 3 Yr. Avg. 33.6%
Payout Ratio 61.2%

SYY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SYY stock intrinsic value calculation we used $55371 million for the last fiscal year's total revenue generated by Sysco. The default revenue input number comes from 2017 income statement of Sysco. 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 SYY stock valuation model: a) initial revenue growth rate of 9.9% 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 7.7%, whose default value for SYY is calculated based on our internal credit rating of Sysco, 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 Sysco.
    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 SYY stock the variable cost ratio is equal to 95.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $216 million in the base year in the intrinsic value calculation for SYY 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 Sysco.

Corporate tax rate of 27% is the nominal tax rate for Sysco. 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 SYY stock is equal to 0.1%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SYY are equal to 14%.

Life of production assets of 10 years is the average useful life of capital assets used in Sysco 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 SYY is equal to -1.8%. 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 - $2382 million for Sysco - 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 543 million for Sysco 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 Sysco at the current share price and the inputted number of shares is $38.5 billion.

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COMPANY NEWS

▶ Houston solar project to bring more than 100 construction jobs   [Jun-13-18 08:47AM  American City Business Journals]
▶ California company to build solar farms near Houston, Dallas   [Jun-12-18 10:05AM  American City Business Journals]
▶ NRG inks solar power deal with Sysco   [Jun-08-18 09:24AM  American City Business Journals]
▶ Sysco Declares Quarterly Dividend Payment   [May-24-18 05:00PM  GlobeNewswire]
▶ [$$] Company Costs Are Rising, but Getting Shoppers to Pay More is Hard   [May-09-18 04:54PM  The Wall Street Journal]
▶ US stocks close modestly higher, add to gains from last week   [May-07-18 04:41PM  Associated Press]
▶ Sysco: Fiscal 3Q Earnings Snapshot   [08:16AM  Associated Press]
▶ Sysco Reports Third Quarter Earnings   [08:00AM  GlobeNewswire]
▶ MARKETS: McDonald's revamped dollar menu is paying dividends   [Apr-30-18 10:56AM  Yahoo Finance Video]
▶ Sysco Announces Election of New Director   [Apr-12-18 08:14AM  GlobeNewswire]
▶ Sysco Completes Kent Frozen Foods Acquisition   [Apr-03-18 08:00AM  GlobeNewswire]
▶ Does Sysco Corporations (NYSE:SYY) PE Ratio Warrant A Sell?   [Mar-27-18 10:48AM  Simply Wall St.]
▶ 3 Top Dividend Stocks to Buy in March   [Mar-21-18 07:19PM  Motley Fool]
▶ Food industry leaders focus on more women taking top spots   [Mar-02-18 12:41PM  Associated Press]
▶ FreshPoint Atlanta To Host Open House at New Facility   [Feb-27-18 05:00PM  GlobeNewswire]
▶ Sysco Declares Quarterly Dividend Payment   [Feb-23-18 05:00PM  GlobeNewswire]
▶ Stock Market News For Feb 20, 2018   [Feb-20-18 09:55AM  Zacks]
▶ Sysco acquires Louisiana-based food distributor   [08:45AM  American City Business Journals]
▶ Sysco Acquires Doerle Food Services   [Feb-19-18 10:00AM  GlobeNewswire]
▶ Top Defensive Consumer Stocks for 2018   [Feb-07-18 02:52PM  Investopedia]
▶ Sysco beats Street 2Q forecasts   [08:17AM  Associated Press]
▶ [$$] Food Distributors Accuse Tyson, Others of Manipulating Chicken Prices   [Jan-31-18 07:36PM  The Wall Street Journal]
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