Intrinsic value of Tech Data - TECD

Previous Close

$92.85

  Intrinsic Value

$17,501

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

+5000%

Previous close

$92.85

 
Intrinsic value

$17,501

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

+5000%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of TECD 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 3.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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, %
  -0.55
  28.50
  26.15
  24.04
  22.13
  20.42
  18.88
  17.49
  16.24
  15.12
  14.10
  13.19
  12.37
  11.64
  10.97
  10.38
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
  6.52
  6.37
  6.23
  6.11
Revenue, $m
  26,235
  33,712
  42,528
  52,749
  64,423
  77,578
  92,221
  108,350
  125,946
  144,984
  165,433
  187,260
  210,433
  234,921
  260,700
  287,750
  316,060
  345,626
  376,453
  408,554
  441,952
  476,676
  512,767
  550,272
  589,246
  629,754
  671,866
  715,661
  761,223
  808,647
  858,030
Variable operating expenses, $m
 
  10,445
  13,171
  16,332
  19,942
  24,010
  28,539
  33,526
  38,968
  44,855
  51,179
  57,909
  65,075
  72,647
  80,619
  88,984
  97,739
  106,882
  116,415
  126,342
  136,670
  147,408
  158,569
  170,167
  182,219
  194,746
  207,769
  221,312
  235,402
  250,067
  265,338
Fixed operating expenses, $m
 
  18,701
  19,169
  19,648
  20,139
  20,643
  21,159
  21,688
  22,230
  22,786
  23,355
  23,939
  24,537
  25,151
  25,780
  26,424
  27,085
  27,762
  28,456
  29,167
  29,897
  30,644
  31,410
  32,195
  33,000
  33,825
  34,671
  35,538
  36,426
  37,337
  38,270
Total operating expenses, $m
  25,942
  29,146
  32,340
  35,980
  40,081
  44,653
  49,698
  55,214
  61,198
  67,641
  74,534
  81,848
  89,612
  97,798
  106,399
  115,408
  124,824
  134,644
  144,871
  155,509
  166,567
  178,052
  189,979
  202,362
  215,219
  228,571
  242,440
  256,850
  271,828
  287,404
  303,608
Operating income, $m
  293
  4,566
  10,188
  16,769
  24,342
  32,925
  42,524
  53,136
  64,749
  77,344
  90,899
  105,413
  120,821
  137,123
  154,301
  172,342
  191,237
  210,983
  231,582
  253,045
  275,385
  298,624
  322,788
  347,910
  374,027
  401,183
  429,426
  458,811
  489,396
  521,243
  554,421
EBITDA, $m
  293
  4,613
  10,242
  16,831
  24,413
  33,007
  42,618
  53,243
  64,869
  77,479
  91,051
  105,562
  120,989
  137,311
  154,510
  172,572
  191,489
  211,259
  231,884
  253,372
  275,739
  299,005
  323,198
  348,350
  374,498
  401,687
  429,964
  459,384
  490,005
  521,890
  555,108
Interest expense (income), $m
  -22
  35
  81
  142
  214
  295
  387
  489
  601
  724
  857
  999
  1,151
  1,313
  1,484
  1,663
  1,852
  2,049
  2,255
  2,470
  2,694
  2,927
  3,169
  3,420
  3,682
  3,953
  4,236
  4,529
  4,835
  5,152
  5,483
Earnings before tax, $m
  257
  4,531
  10,107
  16,627
  24,128
  32,630
  42,137
  52,647
  64,147
  76,620
  90,043
  104,413
  119,669
  135,810
  152,817
  170,678
  189,385
  208,933
  229,327
  250,575
  272,691
  295,697
  319,619
  344,489
  370,345
  397,229
  425,191
  454,282
  484,561
  516,091
  548,938
Tax expense, $m
  62
  1,223
  2,729
  4,489
  6,515
  8,810
  11,377
  14,215
  17,320
  20,687
  24,312
  28,192
  32,311
  36,669
  41,261
  46,083
  51,134
  56,412
  61,918
  67,655
  73,627
  79,838
  86,297
  93,012
  99,993
  107,252
  114,801
  122,656
  130,831
  139,344
  148,213
Net income, $m
  195
  3,308
  7,378
  12,137
  17,614
  23,820
  30,760
  38,433
  46,828
  55,932
  65,731
  76,222
  87,359
  99,141
  111,557
  124,595
  138,251
  152,521
  167,409
  182,920
  199,065
  215,859
  233,322
  251,477
  270,352
  289,977
  310,389
  331,626
  353,730
  376,746
  400,725

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,126
  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
  7,932
  7,460
  9,411
  11,673
  14,256
  17,167
  20,407
  23,977
  27,870
  32,083
  36,608
  41,438
  46,566
  51,985
  57,690
  63,676
  69,940
  76,483
  83,305
  90,408
  97,799
  105,483
  113,469
  121,768
  130,393
  139,357
  148,676
  158,367
  168,450
  178,944
  189,872
Adjusted assets (=assets-cash), $m
  5,806
  7,460
  9,411
  11,673
  14,256
  17,167
  20,407
  23,977
  27,870
  32,083
  36,608
  41,438
  46,566
  51,985
  57,690
  63,676
  69,940
  76,483
  83,305
  90,408
  97,799
  105,483
  113,469
  121,768
  130,393
  139,357
  148,676
  158,367
  168,450
  178,944
  189,872
Revenue / Adjusted assets
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
  4.519
Average production assets, $m
  215
  270
  340
  422
  515
  621
  738
  867
  1,008
  1,160
  1,323
  1,498
  1,683
  1,879
  2,086
  2,302
  2,528
  2,765
  3,012
  3,268
  3,536
  3,813
  4,102
  4,402
  4,714
  5,038
  5,375
  5,725
  6,090
  6,469
  6,864
Working capital, $m
  2,701
  1,214
  1,531
  1,899
  2,319
  2,793
  3,320
  3,901
  4,534
  5,219
  5,956
  6,741
  7,576
  8,457
  9,385
  10,359
  11,378
  12,443
  13,552
  14,708
  15,910
  17,160
  18,460
  19,810
  21,213
  22,671
  24,187
  25,764
  27,404
  29,111
  30,889
Total debt, $m
  1,363
  2,315
  4,071
  6,106
  8,431
  11,051
  13,968
  17,180
  20,684
  24,476
  28,548
  32,896
  37,511
  42,388
  47,522
  52,909
  58,547
  64,436
  70,575
  76,968
  83,620
  90,535
  97,723
  105,193
  112,955
  121,022
  129,409
  138,131
  147,206
  156,650
  166,485
Total liabilities, $m
  5,762
  6,714
  8,470
  10,505
  12,830
  15,450
  18,367
  21,579
  25,083
  28,875
  32,947
  37,295
  41,910
  46,787
  51,921
  57,308
  62,946
  68,835
  74,974
  81,367
  88,019
  94,934
  102,122
  109,592
  117,354
  125,421
  133,808
  142,530
  151,605
  161,049
  170,884
Total equity, $m
  2,170
  746
  941
  1,167
  1,426
  1,717
  2,041
  2,398
  2,787
  3,208
  3,661
  4,144
  4,657
  5,199
  5,769
  6,368
  6,994
  7,648
  8,330
  9,041
  9,780
  10,548
  11,347
  12,177
  13,039
  13,936
  14,868
  15,837
  16,845
  17,894
  18,987
Total liabilities and equity, $m
  7,932
  7,460
  9,411
  11,672
  14,256
  17,167
  20,408
  23,977
  27,870
  32,083
  36,608
  41,439
  46,567
  51,986
  57,690
  63,676
  69,940
  76,483
  83,304
  90,408
  97,799
  105,482
  113,469
  121,769
  130,393
  139,357
  148,676
  158,367
  168,450
  178,943
  189,871
Debt-to-equity ratio
  0.628
  3.100
  4.330
  5.230
  5.910
  6.440
  6.840
  7.170
  7.420
  7.630
  7.800
  7.940
  8.060
  8.150
  8.240
  8.310
  8.370
  8.420
  8.470
  8.510
  8.550
  8.580
  8.610
  8.640
  8.660
  8.680
  8.700
  8.720
  8.740
  8.750
  8.770
Adjusted equity ratio
  0.008
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  195
  3,308
  7,378
  12,137
  17,614
  23,820
  30,760
  38,433
  46,828
  55,932
  65,731
  76,222
  87,359
  99,141
  111,557
  124,595
  138,251
  152,521
  167,409
  182,920
  199,065
  215,859
  233,322
  251,477
  270,352
  289,977
  310,389
  331,626
  353,730
  376,746
  400,725
Depreciation, amort., depletion, $m
  0
  47
  54
  62
  71
  82
  94
  107
  121
  136
  152
  150
  168
  188
  209
  230
  253
  277
  301
  327
  354
  381
  410
  440
  471
  504
  537
  573
  609
  647
  686
Funds from operations, $m
  657
  3,355
  7,432
  12,200
  17,685
  23,902
  30,854
  38,539
  46,948
  56,068
  65,883
  76,372
  87,527
  99,329
  111,765
  124,825
  138,504
  152,798
  167,710
  183,247
  199,418
  216,240
  233,732
  251,917
  270,823
  290,481
  310,927
  332,198
  354,338
  377,393
  401,412
Change in working capital, $m
  0
  269
  317
  368
  420
  474
  527
  581
  633
  685
  736
  786
  834
  882
  928
  974
  1,019
  1,064
  1,110
  1,156
  1,202
  1,250
  1,299
  1,350
  1,403
  1,458
  1,516
  1,577
  1,640
  1,707
  1,778
Cash from operations, $m
  657
  3,085
  7,114
  11,832
  17,265
  23,428
  30,327
  37,959
  46,315
  55,383
  65,147
  75,586
  86,693
  98,448
  110,837
  123,852
  137,485
  151,733
  166,600
  182,091
  198,216
  214,990
  232,433
  250,567
  269,420
  289,023
  309,411
  330,622
  352,698
  375,686
  399,634
Maintenance CAPEX, $m
  0
  -22
  -27
  -34
  -42
  -52
  -62
  -74
  -87
  -101
  -116
  -132
  -150
  -168
  -188
  -209
  -230
  -253
  -277
  -301
  -327
  -354
  -381
  -410
  -440
  -471
  -504
  -537
  -573
  -609
  -647
New CAPEX, $m
  -39
  -55
  -71
  -82
  -93
  -105
  -117
  -129
  -141
  -152
  -164
  -175
  -185
  -196
  -206
  -216
  -226
  -237
  -247
  -257
  -267
  -278
  -289
  -300
  -312
  -324
  -337
  -350
  -365
  -379
  -395
Cash from investing activities, $m
  -42
  -77
  -98
  -116
  -135
  -157
  -179
  -203
  -228
  -253
  -280
  -307
  -335
  -364
  -394
  -425
  -456
  -490
  -524
  -558
  -594
  -632
  -670
  -710
  -752
  -795
  -841
  -887
  -938
  -988
  -1,042
Free cash flow, $m
  615
  3,009
  7,017
  11,716
  17,129
  23,271
  30,148
  37,756
  46,087
  55,130
  64,868
  75,279
  86,358
  98,083
  110,443
  123,427
  137,028
  151,244
  166,077
  181,533
  197,622
  214,359
  231,763
  249,857
  268,668
  288,228
  308,570
  329,734
  351,761
  374,698
  398,592
Issuance/(repayment) of debt, $m
  1,002
  1,325
  1,756
  2,036
  2,325
  2,620
  2,916
  3,212
  3,504
  3,792
  4,073
  4,347
  4,615
  4,877
  5,134
  5,387
  5,638
  5,888
  6,139
  6,393
  6,651
  6,916
  7,188
  7,469
  7,762
  8,067
  8,387
  8,722
  9,074
  9,445
  9,835
Issuance/(repurchase) of shares, $m
  1
  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  
  977
  1,325
  1,756
  2,036
  2,325
  2,620
  2,916
  3,212
  3,504
  3,792
  4,073
  4,347
  4,615
  4,877
  5,134
  5,387
  5,638
  5,888
  6,139
  6,393
  6,651
  6,916
  7,188
  7,469
  7,762
  8,067
  8,387
  8,722
  9,074
  9,445
  9,835
Total cash flow (excl. dividends), $m
  1,594
  4,334
  8,773
  13,752
  19,454
  25,891
  33,064
  40,968
  49,592
  58,921
  68,940
  79,626
  90,973
  102,960
  115,577
  128,814
  142,666
  157,132
  172,217
  187,926
  204,273
  221,275
  238,951
  257,326
  276,430
  296,295
  316,957
  338,456
  360,835
  384,142
  408,427
Retained Cash Flow (-), $m
  -164
  -329
  -195
  -226
  -258
  -291
  -324
  -357
  -389
  -421
  -453
  -483
  -513
  -542
  -570
  -599
  -626
  -654
  -682
  -710
  -739
  -768
  -799
  -830
  -862
  -896
  -932
  -969
  -1,008
  -1,049
  -1,093
Prev. year cash balance distribution, $m
 
  1,753
  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
 
  5,758
  8,578
  13,525
  19,196
  25,600
  32,740
  40,611
  49,202
  58,500
  68,488
  79,143
  90,460
  102,419
  115,007
  128,215
  142,040
  156,478
  171,534
  187,216
  203,534
  220,506
  238,152
  256,496
  275,568
  295,399
  316,025
  337,487
  359,827
  383,093
  407,334
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  5,521
  7,853
  11,771
  15,806
  19,843
  23,761
  27,436
  30,753
  33,605
  35,905
  37,584
  38,602
  38,941
  38,610
  37,642
  36,095
  34,047
  31,590
  28,826
  25,863
  22,808
  19,760
  16,811
  14,035
  11,491
  9,220
  7,243
  5,567
  4,182
  3,067
Current shareholders' claim on cash, %
  100
  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

Tech Data Corporation is a wholesale distributor of technology products. The Company serves as a link in the technology supply chain by bringing products from the technology vendors to market, as well as providing its customers with logistics capabilities and services. It operates through the segment of distributing technology products, logistics management and other value-added services. It operates in two geographic segments: the Americas and Europe. It provides resellers training and technical support suite of electronic commerce tools customized shipping documents product configuration or integration services and access to financing programs. Its customers include value-added resellers, direct marketers, retailers and corporate resellers who support the diverse technology needs of end users. It sells its products to customers in approximately 100 countries throughout North America, South America, Europe, the Middle East and Africa.

FINANCIAL RATIOS  of  Tech Data (TECD)

Valuation Ratios
P/E Ratio 16.8
Price to Sales 0.1
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 5
Price to Free Cash Flow 5.3
Growth Rates
Sales Growth Rate -0.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 14.7%
Cap. Spend. - 3 Yr. Gr. Rate 5.4%
Financial Strength
Quick Ratio 6
Current Ratio 0
LT Debt to Equity 45.6%
Total Debt to Equity 62.8%
Interest Coverage -11
Management Effectiveness
Return On Assets 2.5%
Ret/ On Assets - 3 Yr. Avg. 3%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 8.4%
Return On Equity 9.3%
Return On Equity - 3 Yr. Avg. 10.5%
Asset Turnover 3.7
Profitability Ratios
Gross Margin 5%
Gross Margin - 3 Yr. Avg. 5%
EBITDA Margin 0.9%
EBITDA Margin - 3 Yr. Avg. 1%
Operating Margin 1.1%
Oper. Margin - 3 Yr. Avg. 1.2%
Pre-Tax Margin 1%
Pre-Tax Margin - 3 Yr. Avg. 1.1%
Net Profit Margin 0.7%
Net Profit Margin - 3 Yr. Avg. 0.8%
Effective Tax Rate 24.1%
Eff/ Tax Rate - 3 Yr. Avg. 27.1%
Payout Ratio 0%

TECD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TECD stock intrinsic value calculation we used $26235 million for the last fiscal year's total revenue generated by Tech Data. The default revenue input number comes from 2017 income statement of Tech Data. 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 TECD stock valuation model: a) initial revenue growth rate of 28.5% 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 4.3%, whose default value for TECD is calculated based on our internal credit rating of Tech Data, 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 Tech Data.
    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 TECD stock the variable cost ratio is equal to 31%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $18245 million in the base year in the intrinsic value calculation for TECD 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 3.5% for Tech Data.

Corporate tax rate of 27% is the nominal tax rate for Tech Data. 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 TECD 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 TECD are equal to 0.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Tech Data 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 TECD is equal to 3.6%. 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 - $2170 million for Tech Data - 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 38.899 million for Tech Data 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 Tech Data at the current share price and the inputted number of shares is $3.6 billion.

RELATED COMPANIES Price Int.Val. Rating
SNX SYNNEX 132.41 108.77  hold
SCSC Scansource 44.75 36.31  hold
PCMI PCM 13.55 27.20  str.buy
AVT Avnet 40.65 32.13  hold
ARW Arrow Electron 83.06 156.01  str.buy
CDW CDW 68.29 66.71  hold
TESS Tessco Technol 13.50 2.87  str.sell

COMPANY NEWS

▶ Reminder - Tech Data To Host Investor Day October 10   [Oct-03-17 04:10PM  PR Newswire]
▶ Banks, manufacturers lead Tampa Bay stocks in 3Q 2017   [Oct-02-17 05:13PM  American City Business Journals]
▶ Here are the new public faces of Tech Data, WellCare   [01:25PM  American City Business Journals]
▶ Tech Data Introduces New Global Brand   [06:00AM  PR Newswire]
▶ Tech Data Featured in CRN 2017 Cloud Partner Program Guide   [Sep-18-17 10:00AM  Business Wire]
▶ Tech Data May Need Time to Lick Its Wounds   [09:32AM  TheStreet.com]
▶ General Motors and Lululemon rise while Tech Data tumbles   [Sep-01-17 05:25PM  Associated Press]
▶ Tech Data misses 2Q profit forecasts   [Aug-31-17 11:00PM  Associated Press]
▶ Tech Data Offers Cisco Technical BOOST   [Aug-07-17 08:00AM  Business Wire]
Financial statements of TECD
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.