Intrinsic value of Tech Data - TECD

Previous Close

$85.52

  Intrinsic Value

$1,027

stock screener

  Rating & Target

str. buy

+999%

Previous close

$85.52

 
Intrinsic value

$1,027

 
Up/down potential

+999%

 
Rating

str. buy

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 2018), $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 3.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2048

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  40.20
  36.68
  33.51
  30.66
  28.09
  25.79
  23.71
  21.84
  20.15
  18.64
  17.27
  16.05
  14.94
  13.95
  13.05
  12.25
  11.52
  10.87
  10.28
  9.75
  9.28
  8.85
  8.47
  8.12
  7.81
  7.53
  7.27
  7.05
  6.84
  6.66
Revenue, $m
  51,559
  70,470
  94,086
  122,934
  157,472
  198,076
  245,034
  298,539
  358,702
  425,554
  499,062
  579,142
  665,675
  758,519
  857,526
  962,550
  1,073,461
  1,190,151
  1,312,538
  1,440,576
  1,574,254
  1,713,600
  1,858,680
  2,009,600
  2,166,505
  2,329,578
  2,499,039
  2,675,143
  2,858,181
  3,048,477
Variable operating expenses, $m
  50,909
  69,507
  92,731
  121,100
  155,065
  194,996
  241,174
  293,792
  352,957
  418,699
  490,782
  569,534
  654,631
  745,935
  843,299
  946,581
  1,055,652
  1,170,405
  1,290,762
  1,416,675
  1,548,136
  1,685,170
  1,827,843
  1,976,259
  2,130,561
  2,290,929
  2,457,578
  2,630,760
  2,810,761
  2,997,901
Fixed operating expenses, $m
  5
  5
  5
  5
  6
  6
  6
  6
  6
  6
  6
  6
  7
  7
  7
  7
  7
  7
  8
  8
  8
  8
  8
  8
  9
  9
  9
  9
  9
  10
Total operating expenses, $m
  50,914
  69,512
  92,736
  121,105
  155,071
  195,002
  241,180
  293,798
  352,963
  418,705
  490,788
  569,540
  654,638
  745,942
  843,306
  946,588
  1,055,659
  1,170,412
  1,290,770
  1,416,683
  1,548,144
  1,685,178
  1,827,851
  1,976,267
  2,130,570
  2,290,938
  2,457,587
  2,630,769
  2,810,770
  2,997,911
Operating income, $m
  645
  958
  1,350
  1,829
  2,401
  3,075
  3,854
  4,741
  5,739
  6,848
  8,273
  9,602
  11,037
  12,578
  14,220
  15,962
  17,802
  19,738
  21,768
  23,893
  26,110
  28,422
  30,829
  33,332
  35,935
  38,641
  41,452
  44,373
  47,410
  50,567
EBITDA, $m
  1,041
  1,425
  1,904
  2,489
  3,190
  4,013
  4,966
  6,052
  7,272
  8,629
  10,120
  11,745
  13,500
  15,384
  17,393
  19,524
  21,774
  24,142
  26,625
  29,223
  31,935
  34,762
  37,706
  40,768
  43,951
  47,260
  50,698
  54,271
  57,985
  61,846
Interest expense (income), $m
  -22
  123
  416
  791
  1,260
  1,832
  2,517
  3,323
  4,254
  5,316
  6,510
  7,836
  9,294
  10,883
  12,600
  14,442
  16,406
  18,490
  20,690
  23,006
  25,434
  27,974
  30,626
  33,391
  36,269
  39,264
  42,377
  45,612
  48,974
  52,468
  56,099
Earnings before tax, $m
  522
  542
  559
  569
  569
  558
  531
  487
  423
  339
  437
  308
  154
  -22
  -222
  -444
  -688
  -952
  -1,237
  -1,541
  -1,864
  -2,204
  -2,562
  -2,937
  -3,328
  -3,736
  -4,160
  -4,601
  -5,058
  -5,532
Tax expense, $m
  141
  146
  151
  154
  154
  151
  143
  131
  114
  91
  118
  83
  42
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  381
  396
  408
  415
  416
  407
  388
  356
  309
  247
  319
  224
  113
  -22
  -222
  -444
  -688
  -952
  -1,237
  -1,541
  -1,864
  -2,204
  -2,562
  -2,937
  -3,328
  -3,736
  -4,160
  -4,601
  -5,058
  -5,532

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
  17,736
  24,242
  32,365
  42,289
  54,170
  68,138
  84,291
  102,697
  123,393
  146,389
  171,676
  199,223
  228,990
  260,929
  294,987
  331,115
  369,268
  409,409
  451,509
  495,554
  541,539
  589,474
  639,381
  691,297
  745,272
  801,368
  859,662
  920,242
  983,206
  1,048,668
Adjusted assets (=assets-cash), $m
  17,736
  24,242
  32,365
  42,289
  54,170
  68,138
  84,291
  102,697
  123,393
  146,389
  171,676
  199,223
  228,990
  260,929
  294,987
  331,115
  369,268
  409,409
  451,509
  495,554
  541,539
  589,474
  639,381
  691,297
  745,272
  801,368
  859,662
  920,242
  983,206
  1,048,668
Revenue / Adjusted assets
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
  2.907
Average production assets, $m
  1,908
  2,607
  3,481
  4,549
  5,826
  7,329
  9,066
  11,046
  13,272
  15,746
  18,465
  21,428
  24,630
  28,065
  31,728
  35,614
  39,718
  44,036
  48,564
  53,301
  58,247
  63,403
  68,771
  74,355
  80,161
  86,194
  92,464
  98,980
  105,753
  112,794
Working capital, $m
  -5,465
  -7,470
  -9,973
  -13,031
  -16,692
  -20,996
  -25,974
  -31,645
  -38,022
  -45,109
  -52,901
  -61,389
  -70,562
  -80,403
  -90,898
  -102,030
  -113,787
  -126,156
  -139,129
  -152,701
  -166,871
  -181,642
  -197,020
  -213,018
  -229,650
  -246,935
  -264,898
  -283,565
  -302,967
  -323,139
Total debt, $m
  5,545
  10,548
  16,795
  24,426
  33,563
  44,304
  56,726
  70,880
  86,795
  104,480
  123,925
  145,109
  168,000
  192,560
  218,751
  246,533
  275,873
  306,741
  339,117
  372,987
  408,350
  445,211
  483,590
  523,514
  565,020
  608,159
  652,987
  699,572
  747,992
  798,332
Total liabilities, $m
  13,639
  18,642
  24,889
  32,520
  41,657
  52,398
  64,820
  78,974
  94,889
  112,573
  132,019
  153,203
  176,094
  200,654
  226,845
  254,627
  283,967
  314,835
  347,211
  381,081
  416,443
  453,305
  491,684
  531,607
  573,114
  616,252
  661,080
  707,666
  756,086
  806,426
Total equity, $m
  4,097
  5,600
  7,476
  9,769
  12,513
  15,740
  19,471
  23,723
  28,504
  33,816
  39,657
  46,021
  52,897
  60,274
  68,142
  76,487
  85,301
  94,573
  104,299
  114,473
  125,096
  136,168
  147,697
  159,690
  172,158
  185,116
  198,582
  212,576
  227,121
  242,242
Total liabilities and equity, $m
  17,736
  24,242
  32,365
  42,289
  54,170
  68,138
  84,291
  102,697
  123,393
  146,389
  171,676
  199,224
  228,991
  260,928
  294,987
  331,114
  369,268
  409,408
  451,510
  495,554
  541,539
  589,473
  639,381
  691,297
  745,272
  801,368
  859,662
  920,242
  983,207
  1,048,668
Debt-to-equity ratio
  1.350
  1.880
  2.250
  2.500
  2.680
  2.810
  2.910
  2.990
  3.050
  3.090
  3.120
  3.150
  3.180
  3.190
  3.210
  3.220
  3.230
  3.240
  3.250
  3.260
  3.260
  3.270
  3.270
  3.280
  3.280
  3.290
  3.290
  3.290
  3.290
  3.300
Adjusted equity ratio
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231
  0.231

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  381
  396
  408
  415
  416
  407
  388
  356
  309
  247
  319
  224
  113
  -22
  -222
  -444
  -688
  -952
  -1,237
  -1,541
  -1,864
  -2,204
  -2,562
  -2,937
  -3,328
  -3,736
  -4,160
  -4,601
  -5,058
  -5,532
Depreciation, amort., depletion, $m
  396
  466
  554
  660
  788
  938
  1,112
  1,310
  1,533
  1,780
  1,847
  2,143
  2,463
  2,807
  3,173
  3,561
  3,972
  4,404
  4,856
  5,330
  5,825
  6,340
  6,877
  7,436
  8,016
  8,619
  9,246
  9,898
  10,575
  11,279
Funds from operations, $m
  777
  862
  962
  1,076
  1,204
  1,346
  1,500
  1,666
  1,842
  2,027
  2,166
  2,367
  2,576
  2,784
  2,951
  3,117
  3,284
  3,451
  3,619
  3,789
  3,961
  4,136
  4,315
  4,499
  4,688
  4,884
  5,086
  5,297
  5,517
  5,747
Change in working capital, $m
  -1,567
  -2,005
  -2,503
  -3,058
  -3,661
  -4,304
  -4,977
  -5,672
  -6,377
  -7,086
  -7,792
  -8,488
  -9,172
  -9,841
  -10,495
  -11,133
  -11,757
  -12,369
  -12,973
  -13,572
  -14,170
  -14,771
  -15,378
  -15,998
  -16,632
  -17,286
  -17,963
  -18,667
  -19,402
  -20,171
Cash from operations, $m
  2,344
  2,867
  3,465
  4,134
  4,865
  5,650
  6,477
  7,337
  8,219
  9,114
  9,958
  10,856
  11,748
  12,626
  13,446
  14,250
  15,041
  15,820
  16,592
  17,361
  18,131
  18,907
  19,693
  20,496
  21,320
  22,169
  23,049
  23,964
  24,919
  25,918
Maintenance CAPEX, $m
  -137
  -191
  -261
  -348
  -455
  -583
  -733
  -907
  -1,105
  -1,327
  -1,575
  -1,847
  -2,143
  -2,463
  -2,807
  -3,173
  -3,561
  -3,972
  -4,404
  -4,856
  -5,330
  -5,825
  -6,340
  -6,877
  -7,436
  -8,016
  -8,619
  -9,246
  -9,898
  -10,575
New CAPEX, $m
  -538
  -700
  -874
  -1,067
  -1,278
  -1,502
  -1,737
  -1,980
  -2,226
  -2,474
  -2,720
  -2,963
  -3,202
  -3,435
  -3,663
  -3,886
  -4,104
  -4,318
  -4,528
  -4,737
  -4,946
  -5,156
  -5,368
  -5,584
  -5,805
  -6,034
  -6,270
  -6,516
  -6,772
  -7,041
Cash from investing activities, $m
  -675
  -891
  -1,135
  -1,415
  -1,733
  -2,085
  -2,470
  -2,887
  -3,331
  -3,801
  -4,295
  -4,810
  -5,345
  -5,898
  -6,470
  -7,059
  -7,665
  -8,290
  -8,932
  -9,593
  -10,276
  -10,981
  -11,708
  -12,461
  -13,241
  -14,050
  -14,889
  -15,762
  -16,670
  -17,616
Free cash flow, $m
  1,669
  1,976
  2,330
  2,718
  3,132
  3,565
  4,007
  4,451
  4,889
  5,313
  5,663
  6,046
  6,404
  6,727
  6,976
  7,191
  7,376
  7,531
  7,660
  7,767
  7,855
  7,926
  7,985
  8,035
  8,079
  8,120
  8,160
  8,202
  8,249
  8,302
Issuance/(repayment) of debt, $m
  3,907
  5,003
  6,247
  7,631
  9,136
  10,741
  12,422
  14,154
  15,915
  17,685
  19,445
  21,184
  22,891
  24,560
  26,191
  27,782
  29,340
  30,868
  32,376
  33,870
  35,362
  36,862
  38,379
  39,924
  41,507
  43,138
  44,828
  46,585
  48,420
  50,340
Issuance/(repurchase) of shares, $m
  795
  1,107
  1,469
  1,877
  2,329
  2,819
  3,344
  3,896
  4,472
  5,065
  5,522
  6,139
  6,764
  7,400
  8,089
  8,790
  9,501
  10,225
  10,962
  11,716
  12,486
  13,277
  14,091
  14,930
  15,796
  16,694
  17,626
  18,594
  19,603
  20,654
Cash from financing (excl. dividends), $m  
  4,702
  6,110
  7,716
  9,508
  11,465
  13,560
  15,766
  18,050
  20,387
  22,750
  24,967
  27,323
  29,655
  31,960
  34,280
  36,572
  38,841
  41,093
  43,338
  45,586
  47,848
  50,139
  52,470
  54,854
  57,303
  59,832
  62,454
  65,179
  68,023
  70,994
Total cash flow (excl. dividends), $m
  6,372
  8,086
  10,046
  12,226
  14,597
  17,125
  19,773
  22,501
  25,275
  28,063
  30,631
  33,369
  36,058
  38,688
  41,256
  43,763
  46,216
  48,624
  50,998
  53,353
  55,703
  58,065
  60,454
  62,888
  65,382
  67,952
  70,614
  73,382
  76,272
  79,296
Retained Cash Flow (-), $m
  -1,176
  -1,503
  -1,877
  -2,292
  -2,744
  -3,227
  -3,731
  -4,252
  -4,781
  -5,312
  -5,841
  -6,363
  -6,876
  -7,400
  -8,089
  -8,790
  -9,501
  -10,225
  -10,962
  -11,716
  -12,486
  -13,277
  -14,091
  -14,930
  -15,796
  -16,694
  -17,626
  -18,594
  -19,603
  -20,654
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
  37
  52
  70
  94
  123
  157
  198
  245
  299
  359
  426
  499
  579
  666
  759
  858
  963
  1,073
  1,190
  1,313
  1,441
  1,574
  1,714
  1,859
  2,010
  2,167
  2,330
  2,499
  2,675
  2,858
Cash available for distribution, $m
  5,196
  6,583
  8,170
  9,934
  11,853
  13,899
  16,041
  18,250
  20,495
  22,750
  24,789
  27,006
  29,182
  31,288
  33,166
  34,974
  36,715
  38,399
  40,036
  41,637
  43,217
  44,788
  46,364
  47,959
  49,586
  51,258
  52,988
  54,788
  56,669
  58,642
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
  4,981
  6,027
  7,110
  8,180
  9,187
  10,087
  10,837
  11,406
  11,773
  11,927
  11,772
  11,524
  11,095
  10,504
  9,737
  8,888
  7,989
  7,072
  6,164
  5,291
  4,470
  3,716
  3,039
  2,443
  1,929
  1,495
  1,137
  848
  619
  442
Current shareholders' claim on cash, %
  80.3
  64.6
  52.3
  42.7
  35.2
  29.2
  24.5
  20.8
  17.8
  15.3
  13.4
  11.7
  10.4
  9.2
  8.2
  7.4
  6.6
  6.0
  5.4
  4.9
  4.5
  4.1
  3.7
  3.4
  3.2
  2.9
  2.7
  2.5
  2.3
  2.1

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 15.5
Price to Sales 0.1
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 4.6
Price to Free Cash Flow 4.9
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 $36775 million for the last fiscal year's total revenue generated by Tech Data. The default revenue input number comes from 2018 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 40.2% 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 98.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5 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 7.5% 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 0.1%.

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 TECD are equal to 3.7%.

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 -10.6%. 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 - $2921 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 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 $3.2 billion.

RELATED COMPANIES Price Int.Val. Rating
SNX SYNNEX 98.60 10,417.32  str.buy
SCSC Scansource 41.50 46.43  buy
PCMI PCM 16.60 6.95  hold
AVT Avnet 43.61 31.59  sell
ARW Arrow Electron 76.77 256.57  str.buy
CDW CDW 86.41 70.61  hold
TESS Tessco Technol 17.90 7.80  str.sell

COMPANY NEWS

▶ Meet the 2018 Heroes at Work honorees: Kelly Pigott   [Jul-20-18 05:30AM  American City Business Journals]
▶ Tampa Bay tech community pulls together to help displaced CareSync workers   [Jun-27-18 02:03PM  American City Business Journals]
▶ Tech Data recognizes inclusion as a core value   [05:00AM  American City Business Journals]
▶ June Undervalued Stock Opportunities   [Jun-09-18 10:02AM  Simply Wall St.]
▶ Heres what Floridas largest company will pay its new CEO   [10:28AM  American City Business Journals]
▶ Tech Data cheers its outgoing CEO   [Jun-06-18 04:55PM  American City Business Journals]
▶ What Tech Datas Q1 sales say about the economy and the future of tech in the workplace   [May-31-18 02:59PM  American City Business Journals]
▶ Demand drives gains in sales, profits at Tech Data   [07:08AM  American City Business Journals]
▶ Tech Data: Fiscal 1Q Earnings Snapshot   [06:11AM  Associated Press]
▶ Tech Datas big deal put cash in the CEOs paycheck   [Apr-27-18 11:33AM  American City Business Journals]
▶ Tech Datas new CEO will pivot toward new areas of growth, analyst says   [Apr-20-18 07:20AM  American City Business Journals]
▶ Heres the story behind the CEO change at Tech Data   [Apr-19-18 02:52PM  American City Business Journals]
▶ Tech Data names new CEO   [07:19AM  American City Business Journals]
▶ Tech Data Announces Leadership Succession   [06:00AM  PR Newswire]
▶ Local connection brings Xbox co-founder Otto Berkes to Tampa Bay tech festival   [Apr-18-18 02:41PM  American City Business Journals]
▶ Three Stocks Trading At A Massive Discount   [Mar-13-18 10:02AM  Simply Wall St.]
▶ Tech Data Corporation to Host Earnings Call   [Mar-08-18 07:30AM  ACCESSWIRE]
▶ Tech Data misses 4Q profit forecasts   [06:27AM  Associated Press]
▶ St. Pete EDC taps local attorney as its new chair   [Feb-23-18 03:05PM  American City Business Journals]
▶ Scott Black's Top 5 New Buys of the 4th Quarter   [Feb-05-18 12:50PM  GuruFocus.com]
▶ See where these 5 Tampa Bay companies rank in Fortunes most admired list   [Jan-19-18 11:20AM  American City Business Journals]
▶ Tech Data Named a Top 20 IT Training Company   [Dec-18-17 08:00AM  PR Newswire]
▶ ETFs with exposure to Tech Data Corp. : December 15, 2017   [Dec-15-17 02:10PM  Capital Cube]
▶ Tech Data Strengthens Global End-to-End Portfolio   [Dec-13-17 10:01AM  PR Newswire]
▶ Tech Data Launches Tech-as-a-Service Offering   [Dec-12-17 08:00AM  Business Wire]
▶ ETFs with exposure to Tech Data Corp. : December 5, 2017   [Dec-05-17 01:20PM  Capital Cube]
▶ Tech Data Recognized as a 2017 ChannelPro SMB All-Star   [Dec-01-17 12:32PM  Business Wire]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2018. All rigths reserved.