Intrinsic value of Time Inc. - TIME

Previous Close

$12.70

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

  Value-price divergence*

-89%

Previous close

$12.70

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

 
Value-price divergence*

-89%

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

We calculate the intrinsic value of TIME 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 2016), $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 1.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -0.87
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  3,076
  3,138
  3,210
  3,292
  3,385
  3,487
  3,600
  3,723
  3,855
  3,998
  4,152
  4,316
  4,491
  4,678
  4,876
  5,086
  5,309
  5,545
  5,794
  6,058
  6,336
  6,630
  6,940
  7,266
  7,610
  7,973
  8,354
  8,756
  9,178
  9,623
  10,090
Variable operating expenses, $m
 
  3,965
  4,051
  4,150
  4,261
  4,384
  4,519
  4,666
  4,825
  4,996
  5,180
  5,169
  5,379
  5,602
  5,840
  6,092
  6,359
  6,641
  6,940
  7,256
  7,589
  7,941
  8,312
  8,703
  9,115
  9,549
  10,006
  10,487
  10,993
  11,525
  12,085
Fixed operating expenses, $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 operating expenses, $m
  3,070
  3,965
  4,051
  4,150
  4,261
  4,384
  4,519
  4,666
  4,825
  4,996
  5,180
  5,169
  5,379
  5,602
  5,840
  6,092
  6,359
  6,641
  6,940
  7,256
  7,589
  7,941
  8,312
  8,703
  9,115
  9,549
  10,006
  10,487
  10,993
  11,525
  12,085
Operating income, $m
  6
  -827
  -842
  -858
  -876
  -896
  -919
  -943
  -969
  -998
  -1,028
  -853
  -888
  -925
  -964
  -1,006
  -1,050
  -1,096
  -1,146
  -1,198
  -1,253
  -1,311
  -1,372
  -1,437
  -1,505
  -1,576
  -1,652
  -1,731
  -1,815
  -1,903
  -1,995
EBITDA, $m
  143
  -568
  -581
  -596
  -613
  -631
  -652
  -674
  -698
  -724
  -752
  -781
  -813
  -847
  -883
  -921
  -961
  -1,004
  -1,049
  -1,097
  -1,147
  -1,201
  -1,257
  -1,316
  -1,378
  -1,444
  -1,513
  -1,585
  -1,662
  -1,742
  -1,827
Interest expense (income), $m
  66
  64
  67
  71
  75
  79
  84
  89
  95
  102
  109
  116
  124
  132
  141
  151
  161
  172
  183
  195
  208
  222
  236
  251
  267
  283
  301
  319
  338
  359
  380
Earnings before tax, $m
  -81
  -891
  -909
  -928
  -951
  -976
  -1,003
  -1,032
  -1,065
  -1,099
  -1,137
  -969
  -1,012
  -1,057
  -1,106
  -1,157
  -1,211
  -1,268
  -1,329
  -1,393
  -1,461
  -1,533
  -1,608
  -1,688
  -1,771
  -1,860
  -1,953
  -2,050
  -2,153
  -2,262
  -2,376
Tax expense, $m
  -33
  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
Net income, $m
  -48
  -891
  -909
  -928
  -951
  -976
  -1,003
  -1,032
  -1,065
  -1,099
  -1,137
  -969
  -1,012
  -1,057
  -1,106
  -1,157
  -1,211
  -1,268
  -1,329
  -1,393
  -1,461
  -1,533
  -1,608
  -1,688
  -1,771
  -1,860
  -1,953
  -2,050
  -2,153
  -2,262
  -2,376

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  336
  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
  4,305
  4,048
  4,142
  4,248
  4,367
  4,500
  4,645
  4,803
  4,975
  5,159
  5,357
  5,569
  5,795
  6,036
  6,291
  6,563
  6,850
  7,155
  7,477
  7,817
  8,176
  8,555
  8,955
  9,376
  9,820
  10,287
  10,779
  11,298
  11,843
  12,416
  13,020
Adjusted assets (=assets-cash), $m
  3,969
  4,048
  4,142
  4,248
  4,367
  4,500
  4,645
  4,803
  4,975
  5,159
  5,357
  5,569
  5,795
  6,036
  6,291
  6,563
  6,850
  7,155
  7,477
  7,817
  8,176
  8,555
  8,955
  9,376
  9,820
  10,287
  10,779
  11,298
  11,843
  12,416
  13,020
Revenue / Adjusted assets
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
  0.775
Average production assets, $m
  1,232
  1,255
  1,284
  1,317
  1,354
  1,395
  1,440
  1,489
  1,542
  1,599
  1,661
  1,726
  1,796
  1,871
  1,950
  2,034
  2,124
  2,218
  2,318
  2,423
  2,535
  2,652
  2,776
  2,907
  3,044
  3,189
  3,342
  3,502
  3,671
  3,849
  4,036
Working capital, $m
  12
  -323
  -331
  -339
  -349
  -359
  -371
  -383
  -397
  -412
  -428
  -445
  -463
  -482
  -502
  -524
  -547
  -571
  -597
  -624
  -653
  -683
  -715
  -748
  -784
  -821
  -860
  -902
  -945
  -991
  -1,039
Total debt, $m
  1,240
  1,290
  1,357
  1,434
  1,520
  1,615
  1,720
  1,833
  1,957
  2,090
  2,232
  2,385
  2,547
  2,721
  2,905
  3,100
  3,307
  3,526
  3,758
  4,003
  4,262
  4,535
  4,822
  5,126
  5,445
  5,782
  6,136
  6,509
  6,902
  7,315
  7,749
Total liabilities, $m
  2,865
  2,915
  2,982
  3,059
  3,145
  3,240
  3,345
  3,458
  3,582
  3,715
  3,857
  4,010
  4,172
  4,346
  4,530
  4,725
  4,932
  5,151
  5,383
  5,628
  5,887
  6,160
  6,447
  6,751
  7,070
  7,407
  7,761
  8,134
  8,527
  8,940
  9,374
Total equity, $m
  1,440
  1,134
  1,160
  1,189
  1,223
  1,260
  1,301
  1,345
  1,393
  1,445
  1,500
  1,559
  1,623
  1,690
  1,762
  1,838
  1,918
  2,003
  2,093
  2,189
  2,289
  2,395
  2,507
  2,625
  2,750
  2,880
  3,018
  3,163
  3,316
  3,477
  3,645
Total liabilities and equity, $m
  4,305
  4,049
  4,142
  4,248
  4,368
  4,500
  4,646
  4,803
  4,975
  5,160
  5,357
  5,569
  5,795
  6,036
  6,292
  6,563
  6,850
  7,154
  7,476
  7,817
  8,176
  8,555
  8,954
  9,376
  9,820
  10,287
  10,779
  11,297
  11,843
  12,417
  13,019
Debt-to-equity ratio
  0.861
  1.140
  1.170
  1.210
  1.240
  1.280
  1.320
  1.360
  1.400
  1.450
  1.490
  1.530
  1.570
  1.610
  1.650
  1.690
  1.720
  1.760
  1.800
  1.830
  1.860
  1.890
  1.920
  1.950
  1.980
  2.010
  2.030
  2.060
  2.080
  2.100
  2.130
Adjusted equity ratio
  0.278
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280
  0.280

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -48
  -891
  -909
  -928
  -951
  -976
  -1,003
  -1,032
  -1,065
  -1,099
  -1,137
  -969
  -1,012
  -1,057
  -1,106
  -1,157
  -1,211
  -1,268
  -1,329
  -1,393
  -1,461
  -1,533
  -1,608
  -1,688
  -1,771
  -1,860
  -1,953
  -2,050
  -2,153
  -2,262
  -2,376
Depreciation, amort., depletion, $m
  137
  259
  260
  262
  263
  265
  267
  269
  271
  274
  276
  72
  75
  78
  81
  85
  88
  92
  97
  101
  106
  111
  116
  121
  127
  133
  139
  146
  153
  160
  168
Funds from operations, $m
  117
  -632
  -648
  -667
  -687
  -710
  -736
  -763
  -793
  -826
  -860
  -898
  -937
  -979
  -1,024
  -1,072
  -1,123
  -1,176
  -1,233
  -1,292
  -1,355
  -1,422
  -1,492
  -1,566
  -1,645
  -1,727
  -1,813
  -1,904
  -2,000
  -2,101
  -2,207
Change in working capital, $m
  -78
  -6
  -7
  -8
  -10
  -11
  -12
  -13
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -22
  -23
  -24
  -26
  -27
  -29
  -30
  -32
  -34
  -35
  -37
  -39
  -41
  -44
  -46
  -48
Cash from operations, $m
  195
  -626
  -641
  -658
  -678
  -700
  -724
  -751
  -780
  -811
  -845
  -881
  -919
  -960
  -1,004
  -1,050
  -1,100
  -1,152
  -1,207
  -1,265
  -1,327
  -1,392
  -1,460
  -1,533
  -1,609
  -1,689
  -1,774
  -1,863
  -1,957
  -2,055
  -2,159
Maintenance CAPEX, $m
  0
  -51
  -52
  -53
  -55
  -56
  -58
  -60
  -62
  -64
  -67
  -69
  -72
  -75
  -78
  -81
  -85
  -88
  -92
  -97
  -101
  -106
  -111
  -116
  -121
  -127
  -133
  -139
  -146
  -153
  -160
New CAPEX, $m
  -101
  -24
  -29
  -33
  -37
  -41
  -45
  -49
  -53
  -57
  -61
  -66
  -70
  -75
  -79
  -84
  -89
  -94
  -100
  -105
  -111
  -117
  -124
  -131
  -138
  -145
  -153
  -161
  -169
  -178
  -187
Cash from investing activities, $m
  -282
  -75
  -81
  -86
  -92
  -97
  -103
  -109
  -115
  -121
  -128
  -135
  -142
  -150
  -157
  -165
  -174
  -182
  -192
  -202
  -212
  -223
  -235
  -247
  -259
  -272
  -286
  -300
  -315
  -331
  -347
Free cash flow, $m
  -87
  -701
  -722
  -745
  -770
  -797
  -827
  -860
  -895
  -932
  -973
  -1,015
  -1,061
  -1,110
  -1,161
  -1,216
  -1,273
  -1,335
  -1,399
  -1,467
  -1,539
  -1,615
  -1,695
  -1,779
  -1,868
  -1,961
  -2,060
  -2,163
  -2,272
  -2,386
  -2,507
Issuance/(repayment) of debt, $m
  -52
  57
  67
  77
  86
  95
  105
  114
  123
  133
  143
  153
  163
  173
  184
  195
  207
  219
  232
  245
  259
  273
  288
  303
  320
  337
  354
  373
  393
  413
  434
Issuance/(repurchase) of shares, $m
  -116
  914
  935
  958
  984
  1,013
  1,043
  1,077
  1,113
  1,151
  1,192
  1,029
  1,075
  1,125
  1,177
  1,233
  1,292
  1,354
  1,419
  1,489
  1,562
  1,639
  1,720
  1,806
  1,896
  1,991
  2,090
  2,195
  2,306
  2,422
  2,544
Cash from financing (excl. dividends), $m  
  -181
  971
  1,002
  1,035
  1,070
  1,108
  1,148
  1,191
  1,236
  1,284
  1,335
  1,182
  1,238
  1,298
  1,361
  1,428
  1,499
  1,573
  1,651
  1,734
  1,821
  1,912
  2,008
  2,109
  2,216
  2,328
  2,444
  2,568
  2,699
  2,835
  2,978
Total cash flow (excl. dividends), $m
  -278
  270
  280
  290
  300
  311
  321
  331
  341
  351
  362
  166
  177
  188
  200
  212
  225
  238
  252
  266
  281
  297
  313
  330
  347
  366
  385
  406
  427
  449
  472
Retained Cash Flow (-), $m
  369
  -914
  -935
  -958
  -984
  -1,013
  -1,043
  -1,077
  -1,113
  -1,151
  -1,192
  -1,029
  -1,075
  -1,125
  -1,177
  -1,233
  -1,292
  -1,354
  -1,419
  -1,489
  -1,562
  -1,639
  -1,720
  -1,806
  -1,896
  -1,991
  -2,090
  -2,195
  -2,306
  -2,422
  -2,544
Prev. year cash balance distribution, $m
 
  329
  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
 
  -315
  -655
  -668
  -684
  -702
  -723
  -746
  -772
  -800
  -830
  -863
  -898
  -936
  -977
  -1,020
  -1,066
  -1,115
  -1,167
  -1,222
  -1,281
  -1,342
  -1,407
  -1,476
  -1,548
  -1,625
  -1,705
  -1,790
  -1,879
  -1,973
  -2,072
Discount rate, %
 
  6.10
  6.41
  6.73
  7.06
  7.41
  7.79
  8.17
  8.58
  9.01
  9.46
  9.94
  10.43
  10.95
  11.50
  12.08
  12.68
  13.32
  13.98
  14.68
  15.41
  16.19
  16.99
  17.84
  18.74
  19.67
  20.66
  21.69
  22.77
  23.91
  25.11
PV of cash for distribution, $m
 
  -297
  -578
  -550
  -520
  -491
  -461
  -430
  -399
  -368
  -336
  -304
  -273
  -242
  -213
  -184
  -158
  -133
  -111
  -91
  -73
  -57
  -45
  -34
  -25
  -18
  -13
  -9
  -6
  -4
  -2
Current shareholders' claim on cash, %
  100
  51.3
  26.3
  13.5
  6.9
  3.5
  1.8
  0.9
  0.5
  0.2
  0.1
  0.1
  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
  0.0
  0.0
  0.0
  0.0

Time Inc. is a media and content company. The Company offers a portfolio of news and lifestyle brands across a range of interest areas. As of December 31, 2016, the Company's brands included People, Time, Fortune, Sports Illustrated, InStyle, Real Simple, Southern Living, Entertainment Weekly, Food & Wine, Travel + Leisure and Essence, as well as approximately 50 titles in the United Kingdom. The Company also offers its brands through other media and platforms including licensing, video and television, live events and paid products and services. The Company also offers events, such as the Time 100, Fortune Most Powerful Women, People's Sexiest Man Alive, Sports Illustrated's Sportsperson of the Year, the Essence Festival and the Food & Wine Classic in Aspen. It is a subscription marketer in the United States media industry. It also offers its advertisers a range of analytics and research services, including consumer insights, audience measurement and accountability reporting.

FINANCIAL RATIOS  of  Time Inc. (TIME)

Valuation Ratios
P/E Ratio -26.2
Price to Sales 0.4
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 6.4
Price to Free Cash Flow 13.4
Growth Rates
Sales Growth Rate -0.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -52.4%
Cap. Spend. - 3 Yr. Gr. Rate 24.3%
Financial Strength
Quick Ratio 48
Current Ratio 0
LT Debt to Equity 85.6%
Total Debt to Equity 86.1%
Interest Coverage 0
Management Effectiveness
Return On Assets -0.2%
Ret/ On Assets - 3 Yr. Avg. -5%
Return On Total Capital -1.7%
Ret/ On T. Cap. - 3 Yr. Avg. -7.9%
Return On Equity -3%
Return On Equity - 3 Yr. Avg. -12.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 57.9%
Gross Margin - 3 Yr. Avg. 59.7%
EBITDA Margin 4%
EBITDA Margin - 3 Yr. Avg. -3.5%
Operating Margin 0.2%
Oper. Margin - 3 Yr. Avg. -6.9%
Pre-Tax Margin -2.6%
Pre-Tax Margin - 3 Yr. Avg. -9.3%
Net Profit Margin -1.6%
Net Profit Margin - 3 Yr. Avg. -9.1%
Effective Tax Rate 40.7%
Eff/ Tax Rate - 3 Yr. Avg. 24.1%
Payout Ratio -160.4%

TIME stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TIME stock intrinsic value calculation we used $3076 million for the last fiscal year's total revenue generated by Time Inc.. The default revenue input number comes from 2016 income statement of Time Inc.. 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 TIME stock valuation model: a) initial revenue growth rate of 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 6.1%, whose default value for TIME is calculated based on our internal credit rating of Time Inc., 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 Time Inc..
    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 TIME stock the variable cost ratio is equal to 126.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for TIME 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 5.2% for Time Inc..

Corporate tax rate of 27% is the nominal tax rate for Time Inc.. 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 TIME 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 TIME are equal to 40%.

Life of production assets of 24 years is the average useful life of capital assets used in Time Inc. 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 TIME is equal to -10.3%. 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 - $1440 million for Time Inc. - 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 98.413 million for Time Inc. 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 Time Inc. at the current share price and the inputted number of shares is $1.2 billion.

RELATED COMPANIES Price Int.Val. Rating
MDP Meredith 54.60 27.11  str.sell
DIS Walt Disney 98.13 103.16  hold
TWX Time Warner 101.12 143.32  buy
BKS Barnes&Noble 7.30 5.33  sell

COMPANY NEWS

▶ It's a bittersweet split with Time Inc. for Golf magazine, Golf.com   [Oct-13-17 03:29PM  American City Business Journals]
▶ Time Inc. cutting publishing frequency of Sports Illustrated, Fortune   [Oct-10-17 06:40PM  American City Business Journals]
▶ Entertainment Weekly to move to Los Angeles   [03:15PM  American City Business Journals]
▶ Time Inc.s INSTYLE to Host Third Annual INSTYLE Awards   [Sep-26-17 10:30AM  Business Wire]
▶ Time considers sale of Tampa operation   [Sep-22-17 05:37PM  American City Business Journals]
▶ Behind Times Portfolio Rationalization   [10:39AM  Market Realist]
▶ [$$] Time Magazine Names Felsenthal as Editor in Chief   [10:25AM  The Wall Street Journal]
▶ Time magazine editor-in-chief Nancy Gibbs stepping down   [Sep-12-17 10:51PM  MarketWatch]
▶ ETFs with exposure to Time, Inc. : August 30, 2017   [Aug-29-17 08:45PM  Capital Cube]
▶ INSTYLEs September 2017 Issue Named Best September Issue   [Aug-28-17 11:58AM  Business Wire]
▶ Time Inc. Appoints Lori Leibovich Editor-in-Chief of HEALTH   [Aug-17-17 11:30AM  Business Wire]
▶ Will an Outsider Restructure Time Inc.?   [06:40AM  24/7 Wall St.]
▶ Why Facebook Inc (FB) Stock Isnt Done Growing Yet   [Aug-16-17 08:00PM  InvestorPlace]
▶ [$$] Time Plans Cost Cutting as It Reports Quarterly Loss   [Aug-09-17 12:48AM  The Wall Street Journal]
▶ Time reports 2Q loss   [Aug-08-17 04:12PM  Associated Press]
▶ [$$] Time Plans Cost Cutting as It Reports Quarterly Loss   [11:35AM  The Wall Street Journal]
▶ Time Cannot Erect a Paywall   [10:29AM  24/7 Wall St.]
▶ Time Inc. Announces Sale of INVNT   [Jul-27-17 03:51PM  Business Wire]
▶ [$$] Time Inc. Explores Sale of U.K. Magazine Division   [12:51AM  The Wall Street Journal]
▶ [$$] Time Inc. Explores Sale of U.K. Magazine Division   [Jul-25-17 07:56PM  The Wall Street Journal]
Financial statements of TIME
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.

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