Intrinsic value of UMB Financial - UMBF

Previous Close

$74.92

  Intrinsic Value

$1.80

stock screener

  Rating & Target

str. sell

-98%

Previous close

$74.92

 
Intrinsic value

$1.80

 
Up/down potential

-98%

 
Rating

str. sell

Our model is not good at valuating stocks of financial companies, such as UMBF.

We calculate the intrinsic value of UMBF 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 3.7

 

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, %
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
  5.25
  5.22
  5.20
  5.18
Revenue, $m
  1,024
  1,110
  1,200
  1,293
  1,390
  1,490
  1,595
  1,704
  1,817
  1,934
  2,057
  2,184
  2,317
  2,455
  2,599
  2,749
  2,906
  3,070
  3,241
  3,420
  3,607
  3,802
  4,006
  4,220
  4,444
  4,678
  4,923
  5,180
  5,450
  5,732
Variable operating expenses, $m
  517
  561
  606
  653
  702
  753
  806
  860
  918
  977
  1,039
  1,103
  1,170
  1,240
  1,313
  1,388
  1,468
  1,550
  1,637
  1,727
  1,821
  1,920
  2,023
  2,131
  2,244
  2,362
  2,486
  2,616
  2,752
  2,895
Fixed operating expenses, $m
  241
  246
  252
  257
  263
  269
  275
  281
  287
  293
  300
  306
  313
  320
  327
  334
  342
  349
  357
  365
  373
  381
  389
  398
  407
  416
  425
  434
  444
  453
Total operating expenses, $m
  758
  807
  858
  910
  965
  1,022
  1,081
  1,141
  1,205
  1,270
  1,339
  1,409
  1,483
  1,560
  1,640
  1,722
  1,810
  1,899
  1,994
  2,092
  2,194
  2,301
  2,412
  2,529
  2,651
  2,778
  2,911
  3,050
  3,196
  3,348
Operating income, $m
  266
  303
  342
  383
  425
  469
  515
  563
  612
  664
  718
  775
  834
  895
  959
  1,027
  1,097
  1,170
  1,247
  1,328
  1,413
  1,501
  1,594
  1,691
  1,793
  1,900
  2,012
  2,130
  2,254
  2,384
EBITDA, $m
  2,574
  2,806
  3,047
  3,298
  3,558
  3,829
  4,111
  4,404
  4,709
  5,026
  5,356
  5,699
  6,057
  6,431
  6,820
  7,226
  7,650
  8,092
  8,555
  9,039
  9,544
  10,073
  10,626
  11,206
  11,812
  12,448
  13,113
  13,811
  14,542
  15,308
Interest expense (income), $m
  28
  1,019
  1,000
  1,081
  1,164
  1,251
  1,342
  1,436
  1,534
  1,635
  1,741
  1,851
  1,965
  2,084
  2,208
  2,338
  2,472
  2,613
  2,759
  2,912
  3,072
  3,239
  3,414
  3,596
  3,787
  3,987
  4,196
  4,415
  4,645
  4,885
  5,137
Earnings before tax, $m
  -753
  -697
  -739
  -782
  -827
  -873
  -921
  -971
  -1,023
  -1,077
  -1,133
  -1,191
  -1,251
  -1,313
  -1,378
  -1,446
  -1,516
  -1,589
  -1,665
  -1,744
  -1,827
  -1,913
  -2,003
  -2,096
  -2,194
  -2,296
  -2,403
  -2,514
  -2,631
  -2,753
Tax expense, $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
Net income, $m
  -753
  -697
  -739
  -782
  -827
  -873
  -921
  -971
  -1,023
  -1,077
  -1,133
  -1,191
  -1,251
  -1,313
  -1,378
  -1,446
  -1,516
  -1,589
  -1,665
  -1,744
  -1,827
  -1,913
  -2,003
  -2,096
  -2,194
  -2,296
  -2,403
  -2,514
  -2,631
  -2,753

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
  19,689
  21,346
  23,071
  24,863
  26,726
  28,662
  30,674
  32,766
  34,940
  37,201
  39,554
  42,004
  44,555
  47,213
  49,984
  52,874
  55,890
  59,039
  62,327
  65,764
  69,356
  73,112
  77,041
  81,153
  85,456
  89,962
  94,681
  99,625
  104,804
  110,232
Adjusted assets (=assets-cash), $m
  19,689
  21,346
  23,071
  24,863
  26,726
  28,662
  30,674
  32,766
  34,940
  37,201
  39,554
  42,004
  44,555
  47,213
  49,984
  52,874
  55,890
  59,039
  62,327
  65,764
  69,356
  73,112
  77,041
  81,153
  85,456
  89,962
  94,681
  99,625
  104,804
  110,232
Revenue / Adjusted assets
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
  0.052
Average production assets, $m
  23,084
  25,027
  27,049
  29,151
  31,335
  33,605
  35,964
  38,416
  40,965
  43,616
  46,375
  49,247
  52,238
  55,354
  58,603
  61,992
  65,528
  69,220
  73,075
  77,104
  81,316
  85,720
  90,326
  95,147
  100,193
  105,476
  111,008
  116,804
  122,877
  129,240
Working capital, $m
  -21,084
  -22,860
  -24,706
  -26,626
  -28,621
  -30,694
  -32,849
  -35,088
  -37,417
  -39,838
  -42,358
  -44,981
  -47,713
  -50,560
  -53,527
  -56,622
  -59,852
  -63,224
  -66,746
  -70,426
  -74,272
  -78,295
  -82,502
  -86,905
  -91,514
  -96,340
  -101,393
  -106,687
  -112,233
  -118,046
Total debt, $m
  18,518
  20,010
  21,562
  23,175
  24,852
  26,594
  28,405
  30,287
  32,244
  34,279
  36,397
  38,601
  40,897
  43,289
  45,783
  48,385
  51,099
  53,933
  56,893
  59,985
  63,218
  66,599
  70,135
  73,835
  77,709
  81,764
  86,011
  90,460
  95,121
  100,006
Total liabilities, $m
  17,720
  19,212
  20,764
  22,377
  24,054
  25,796
  27,607
  29,489
  31,446
  33,481
  35,599
  37,803
  40,099
  42,491
  44,985
  47,587
  50,301
  53,135
  56,095
  59,187
  62,420
  65,801
  69,337
  73,037
  76,911
  80,966
  85,213
  89,662
  94,323
  99,208
Total equity, $m
  1,969
  2,135
  2,307
  2,486
  2,673
  2,866
  3,067
  3,277
  3,494
  3,720
  3,955
  4,200
  4,455
  4,721
  4,998
  5,287
  5,589
  5,904
  6,233
  6,576
  6,936
  7,311
  7,704
  8,115
  8,546
  8,996
  9,468
  9,962
  10,480
  11,023
Total liabilities and equity, $m
  19,689
  21,347
  23,071
  24,863
  26,727
  28,662
  30,674
  32,766
  34,940
  37,201
  39,554
  42,003
  44,554
  47,212
  49,983
  52,874
  55,890
  59,039
  62,328
  65,763
  69,356
  73,112
  77,041
  81,152
  85,457
  89,962
  94,681
  99,624
  104,803
  110,231
Debt-to-equity ratio
  9.410
  9.370
  9.350
  9.320
  9.300
  9.280
  9.260
  9.240
  9.230
  9.210
  9.200
  9.190
  9.180
  9.170
  9.160
  9.150
  9.140
  9.140
  9.130
  9.120
  9.120
  9.110
  9.100
  9.100
  9.090
  9.090
  9.080
  9.080
  9.080
  9.070
Adjusted equity ratio
  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
  -753
  -697
  -739
  -782
  -827
  -873
  -921
  -971
  -1,023
  -1,077
  -1,133
  -1,191
  -1,251
  -1,313
  -1,378
  -1,446
  -1,516
  -1,589
  -1,665
  -1,744
  -1,827
  -1,913
  -2,003
  -2,096
  -2,194
  -2,296
  -2,403
  -2,514
  -2,631
  -2,753
Depreciation, amort., depletion, $m
  2,308
  2,503
  2,705
  2,915
  3,134
  3,361
  3,596
  3,842
  4,097
  4,362
  4,638
  4,925
  5,224
  5,535
  5,860
  6,199
  6,553
  6,922
  7,308
  7,710
  8,132
  8,572
  9,033
  9,515
  10,019
  10,548
  11,101
  11,680
  12,288
  12,924
Funds from operations, $m
  1,555
  1,806
  1,966
  2,133
  2,307
  2,487
  2,675
  2,870
  3,073
  3,285
  3,505
  3,734
  3,973
  4,222
  4,482
  4,754
  5,037
  5,333
  5,643
  5,966
  6,305
  6,659
  7,030
  7,418
  7,825
  8,251
  8,698
  9,166
  9,657
  10,171
Change in working capital, $m
  -1,705
  -1,775
  -1,847
  -1,920
  -1,995
  -2,073
  -2,155
  -2,239
  -2,328
  -2,422
  -2,520
  -2,623
  -2,732
  -2,847
  -2,968
  -3,095
  -3,230
  -3,372
  -3,522
  -3,680
  -3,847
  -4,022
  -4,208
  -4,403
  -4,609
  -4,825
  -5,054
  -5,294
  -5,547
  -5,813
Cash from operations, $m
  3,261
  3,581
  3,813
  4,053
  4,302
  4,561
  4,830
  5,110
  5,402
  5,706
  6,025
  6,357
  6,705
  7,069
  7,450
  7,849
  8,267
  8,705
  9,164
  9,646
  10,152
  10,682
  11,238
  11,821
  12,434
  13,077
  13,751
  14,460
  15,203
  15,984
Maintenance CAPEX, $m
  -2,123
  -2,308
  -2,503
  -2,705
  -2,915
  -3,134
  -3,361
  -3,596
  -3,842
  -4,097
  -4,362
  -4,638
  -4,925
  -5,224
  -5,535
  -5,860
  -6,199
  -6,553
  -6,922
  -7,308
  -7,710
  -8,132
  -8,572
  -9,033
  -9,515
  -10,019
  -10,548
  -11,101
  -11,680
  -12,288
New CAPEX, $m
  -1,857
  -1,944
  -2,022
  -2,102
  -2,184
  -2,270
  -2,359
  -2,452
  -2,549
  -2,651
  -2,759
  -2,872
  -2,991
  -3,116
  -3,249
  -3,389
  -3,536
  -3,692
  -3,856
  -4,029
  -4,211
  -4,404
  -4,607
  -4,821
  -5,046
  -5,283
  -5,533
  -5,796
  -6,072
  -6,364
Cash from investing activities, $m
  -3,980
  -4,252
  -4,525
  -4,807
  -5,099
  -5,404
  -5,720
  -6,048
  -6,391
  -6,748
  -7,121
  -7,510
  -7,916
  -8,340
  -8,784
  -9,249
  -9,735
  -10,245
  -10,778
  -11,337
  -11,921
  -12,536
  -13,179
  -13,854
  -14,561
  -15,302
  -16,081
  -16,897
  -17,752
  -18,652
Free cash flow, $m
  -719
  -671
  -712
  -754
  -797
  -843
  -890
  -939
  -989
  -1,042
  -1,096
  -1,152
  -1,211
  -1,272
  -1,335
  -1,400
  -1,468
  -1,539
  -1,613
  -1,690
  -1,770
  -1,854
  -1,941
  -2,032
  -2,127
  -2,226
  -2,329
  -2,437
  -2,550
  -2,667
Issuance/(repayment) of debt, $m
  -349
  1,492
  1,552
  1,613
  1,677
  1,742
  1,811
  1,882
  1,957
  2,035
  2,118
  2,204
  2,296
  2,392
  2,494
  2,601
  2,714
  2,834
  2,960
  3,093
  3,233
  3,381
  3,536
  3,700
  3,873
  4,055
  4,247
  4,449
  4,661
  4,885
Issuance/(repurchase) of shares, $m
  2,768
  863
  911
  961
  1,013
  1,067
  1,123
  1,180
  1,241
  1,303
  1,368
  1,436
  1,506
  1,579
  1,655
  1,735
  1,817
  1,904
  1,994
  2,088
  2,186
  2,288
  2,396
  2,507
  2,624
  2,747
  2,875
  3,009
  3,149
  3,295
Cash from financing (excl. dividends), $m  
  2,419
  2,355
  2,463
  2,574
  2,690
  2,809
  2,934
  3,062
  3,198
  3,338
  3,486
  3,640
  3,802
  3,971
  4,149
  4,336
  4,531
  4,738
  4,954
  5,181
  5,419
  5,669
  5,932
  6,207
  6,497
  6,802
  7,122
  7,458
  7,810
  8,180
Total cash flow (excl. dividends), $m
  1,699
  1,684
  1,751
  1,821
  1,892
  1,966
  2,044
  2,124
  2,208
  2,297
  2,390
  2,488
  2,591
  2,700
  2,815
  2,936
  3,063
  3,198
  3,340
  3,490
  3,648
  3,815
  3,991
  4,176
  4,371
  4,577
  4,793
  5,021
  5,261
  5,513
Retained Cash Flow (-), $m
  -2,768
  -863
  -911
  -961
  -1,013
  -1,067
  -1,123
  -1,180
  -1,241
  -1,303
  -1,368
  -1,436
  -1,506
  -1,579
  -1,655
  -1,735
  -1,817
  -1,904
  -1,994
  -2,088
  -2,186
  -2,288
  -2,396
  -2,507
  -2,624
  -2,747
  -2,875
  -3,009
  -3,149
  -3,295
Prev. year cash balance distribution, $m
  46
  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
  17
  18
  20
  22
  23
  25
  27
  29
  31
  33
  35
  37
  39
  42
  44
  47
  49
  52
  55
  58
  62
  65
  68
  72
  76
  80
  84
  89
  93
  98
Cash available for distribution, $m
  -1,022
  821
  840
  860
  879
  900
  921
  944
  968
  994
  1,022
  1,052
  1,085
  1,121
  1,159
  1,201
  1,246
  1,294
  1,346
  1,402
  1,462
  1,527
  1,595
  1,669
  1,747
  1,830
  1,918
  2,012
  2,112
  2,218
Discount rate, %
  14.90
  15.65
  16.43
  17.25
  18.11
  19.02
  19.97
  20.97
  22.01
  23.11
  24.27
  25.48
  26.76
  28.10
  29.50
  30.98
  32.52
  34.15
  35.86
  37.65
  39.53
  41.51
  43.59
  45.77
  48.05
  50.46
  52.98
  55.63
  58.41
  61.33
PV of cash for distribution, $m
  -890
  614
  532
  455
  383
  317
  258
  206
  161
  124
  94
  69
  50
  35
  24
  16
  10
  7
  4
  2
  1
  1
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  34.8
  24.4
  17.2
  12.2
  8.7
  6.3
  4.5
  3.3
  2.4
  1.8
  1.3
  0.9
  0.7
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

UMB Financial Corporation is a diversified financial holding company. The Company supplies banking services, institutional investment management, asset servicing and payment solutions to its customers in the United States and around the globe. The Company's segments include Bank, which provides a range of banking services to commercial, retail, government and correspondent bank customers through the Company's branches, call center, Internet banking and automated teller machine network; Institutional Investment Management, which provides equity and fixed income investment strategies in the intermediary and institutional markets, and Asset Servicing, which provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. The Company's subsidiary includes UMB Fund Services, Inc. (UMBFS).

FINANCIAL RATIOS  of  UMB Financial (UMBF)

Valuation Ratios
P/E Ratio 23.4
Price to Sales 0
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 12.6
Price to Free Cash Flow 15.2
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -5.6%
Cap. Spend. - 3 Yr. Gr. Rate 6.1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 98.6%
Total Debt to Equity 98.6%
Interest Coverage 8
Management Effectiveness
Return On Assets 0.9%
Ret/ On Assets - 3 Yr. Avg. 0.8%
Return On Total Capital 4.1%
Ret/ On T. Cap. - 3 Yr. Avg. 3.6%
Return On Equity 8.2%
Return On Equity - 3 Yr. Avg. 7.5%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 23.2%
Eff/ Tax Rate - 3 Yr. Avg. 25.8%
Payout Ratio 30.8%

UMBF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the UMBF stock intrinsic value calculation we used $941 million for the last fiscal year's total revenue generated by UMB Financial. The default revenue input number comes from 2017 income statement of UMB Financial. 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 UMBF stock valuation model: a) initial revenue growth rate of 8.8% 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 14.9%, whose default value for UMBF is calculated based on our internal credit rating of UMB Financial, 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 UMB Financial.
    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 UMBF stock the variable cost ratio is equal to 50.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $236 million in the base year in the intrinsic value calculation for UMBF 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 UMB Financial.

Corporate tax rate of 27% is the nominal tax rate for UMB Financial. 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 UMBF stock is equal to 1.8%.

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 UMBF are equal to 2254.7%.

Life of production assets of 10 years is the average useful life of capital assets used in UMB Financial 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 UMBF is equal to -2059.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $0 million for UMB Financial - 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 49 million for UMB Financial 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 UMB Financial at the current share price and the inputted number of shares is $3.7 billion.

RELATED COMPANIES Price Int.Val. Rating
EFSC Enterprise Fin 56.85 43.34  hold
GFED Guaranty Feder 24.85 2.60  str.sell

COMPANY NEWS

▶ Newsmaker: UMB's Rine learned key to winning from time on a losing team   [Aug-16-18 11:40AM  American City Business Journals]
▶ UMB: 2Q Earnings Snapshot   [Jul-24-18 05:44PM  Associated Press]
▶ What to expect from UMB Bank following regional leadership change   [Jun-20-18 03:41PM  American City Business Journals]
▶ Another big-name hire for Emprise Bank   [Jun-19-18 01:53PM  American City Business Journals]
▶ UMB sets up new specialty corporate trust office in Salt Lake City   [May-03-18 04:06PM  American City Business Journals]
▶ An early architect of UMB's health savings account business takes the lead   [Mar-28-18 01:27PM  American City Business Journals]
▶ UMB surpasses 1.25M HSA accounts   [Feb-23-18 03:20PM  American City Business Journals]
▶ UMB beats 4Q profit forecasts   [Jan-23-18 05:21PM  Associated Press]
▶ UMB Healthcare Services Offers New Technology Features   [Jan-17-18 09:30AM  Business Wire]
▶ Should You Buy UMB Financial Corporation (UMBF) Now?   [Dec-03-17 06:40PM  Simply Wall St.]
▶ Raymond James wraps up $173M deal   [Nov-20-17 02:55PM  American City Business Journals]
▶ UMB Financial Corporation to Host Earnings Call   [Oct-25-17 06:45AM  ACCESSWIRE]
▶ UMB beats 3Q profit forecasts   [Oct-24-17 05:37PM  Associated Press]
▶ 5 Top Bank Stocks to Buy Ahead of Q3 Earnings   [Oct-11-17 09:58AM  Zacks]
▶ At $74.34, Is UMB Financial Corporation (UMBF) A Sell?   [Sep-29-17 05:22PM  Simply Wall St.]
▶ UMB misses Street 2Q forecasts   [Jul-25-17 11:56PM  Associated Press]
▶ Stocks Generating Improved Relative Strength: UMB Financial   [Jul-14-17 03:00AM  Investor's Business Daily]
▶ ETFs with exposure to UMB Financial Corp. : June 1, 2017   [Jun-01-17 02:06PM  Capital Cube]
▶ UMB tops Street 1Q forecasts   [09:10AM  Associated Press]
▶ UMB sells longtime subsidiary for $172.5M   [Apr-20-17 02:20PM  American City Business Journals]
▶ Raymond James strikes $172M deal to buy Kansas City investment manager   [08:40AM  American City Business Journals]
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