Intrinsic value of Valley National Bancorp - VLY

Previous Close

$11.87

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$11.87

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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

We calculate the intrinsic value of VLY 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 3.1

 

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, %
  7.40
  7.16
  6.94
  6.75
  6.57
  6.42
  6.28
  6.15
  6.03
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.16
  5.14
  5.13
  5.11
Revenue, $m
  818
  877
  938
  1,001
  1,067
  1,135
  1,207
  1,281
  1,358
  1,439
  1,523
  1,610
  1,702
  1,797
  1,897
  2,001
  2,110
  2,224
  2,343
  2,468
  2,599
  2,735
  2,879
  3,029
  3,186
  3,351
  3,523
  3,705
  3,894
  4,094
Variable operating expenses, $m
  521
  559
  597
  638
  680
  723
  769
  816
  865
  916
  970
  1,026
  1,084
  1,145
  1,208
  1,275
  1,344
  1,417
  1,493
  1,572
  1,655
  1,742
  1,834
  1,929
  2,029
  2,134
  2,244
  2,360
  2,481
  2,608
Fixed operating expenses, $m
  27
  27
  28
  28
  29
  30
  30
  31
  32
  32
  33
  34
  35
  35
  36
  37
  38
  38
  39
  40
  41
  42
  43
  44
  45
  46
  47
  48
  49
  50
Total operating expenses, $m
  548
  586
  625
  666
  709
  753
  799
  847
  897
  948
  1,003
  1,060
  1,119
  1,180
  1,244
  1,312
  1,382
  1,455
  1,532
  1,612
  1,696
  1,784
  1,877
  1,973
  2,074
  2,180
  2,291
  2,408
  2,530
  2,658
Operating income, $m
  271
  291
  313
  335
  358
  383
  408
  434
  461
  490
  520
  551
  583
  617
  653
  690
  728
  769
  811
  856
  902
  951
  1,002
  1,056
  1,112
  1,171
  1,232
  1,297
  1,365
  1,436
EBITDA, $m
  2,788
  2,989
  3,198
  3,415
  3,640
  3,875
  4,120
  4,374
  4,639
  4,916
  5,204
  5,504
  5,818
  6,145
  6,488
  6,845
  7,219
  7,610
  8,019
  8,448
  8,896
  9,365
  9,857
  10,372
  10,912
  11,477
  12,070
  12,692
  13,344
  14,028
Interest expense (income), $m
  151
  1,167
  1,131
  1,199
  1,269
  1,343
  1,419
  1,498
  1,580
  1,666
  1,756
  1,849
  1,946
  2,047
  2,153
  2,264
  2,379
  2,500
  2,626
  2,758
  2,896
  3,040
  3,191
  3,349
  3,515
  3,689
  3,871
  4,061
  4,261
  4,471
  4,691
Earnings before tax, $m
  -896
  -840
  -886
  -934
  -984
  -1,036
  -1,090
  -1,146
  -1,205
  -1,266
  -1,329
  -1,395
  -1,464
  -1,536
  -1,611
  -1,690
  -1,771
  -1,857
  -1,946
  -2,040
  -2,138
  -2,240
  -2,347
  -2,460
  -2,577
  -2,700
  -2,829
  -2,964
  -3,106
  -3,255
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
  -896
  -840
  -886
  -934
  -984
  -1,036
  -1,090
  -1,146
  -1,205
  -1,266
  -1,329
  -1,395
  -1,464
  -1,536
  -1,611
  -1,690
  -1,771
  -1,857
  -1,946
  -2,040
  -2,138
  -2,240
  -2,347
  -2,460
  -2,577
  -2,700
  -2,829
  -2,964
  -3,106
  -3,255

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
  19,485
  20,881
  22,331
  23,838
  25,405
  27,035
  28,732
  30,498
  32,338
  34,256
  36,255
  38,341
  40,518
  42,791
  45,166
  47,647
  50,241
  52,955
  55,793
  58,764
  61,873
  65,129
  68,540
  72,113
  75,856
  79,780
  83,892
  88,204
  92,725
  97,466
Adjusted assets (=assets-cash), $m
  19,485
  20,881
  22,331
  23,838
  25,405
  27,035
  28,732
  30,498
  32,338
  34,256
  36,255
  38,341
  40,518
  42,791
  45,166
  47,647
  50,241
  52,955
  55,793
  58,764
  61,873
  65,129
  68,540
  72,113
  75,856
  79,780
  83,892
  88,204
  92,725
  97,466
Revenue / Adjusted assets
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
  0.042
Average production assets, $m
  25,174
  26,976
  28,849
  30,796
  32,821
  34,927
  37,119
  39,401
  41,778
  44,256
  46,839
  49,534
  52,346
  55,283
  58,350
  61,556
  64,908
  68,413
  72,080
  75,918
  79,935
  84,142
  88,548
  93,164
  98,000
  103,069
  108,382
  113,953
  119,793
  125,919
Working capital, $m
  -22,276
  -23,871
  -25,528
  -27,251
  -29,043
  -30,907
  -32,846
  -34,866
  -36,969
  -39,161
  -41,447
  -43,832
  -46,320
  -48,919
  -51,633
  -54,470
  -57,436
  -60,538
  -63,783
  -67,178
  -70,733
  -74,456
  -78,355
  -82,439
  -86,719
  -91,204
  -95,906
  -100,835
  -106,003
  -111,423
Total debt, $m
  20,946
  22,202
  23,506
  24,863
  26,273
  27,741
  29,268
  30,857
  32,513
  34,239
  36,039
  37,916
  39,875
  41,921
  44,058
  46,291
  48,626
  51,068
  53,623
  56,296
  59,095
  62,025
  65,095
  68,310
  71,680
  75,211
  78,912
  82,793
  86,862
  91,129
Total liabilities, $m
  17,537
  18,793
  20,097
  21,454
  22,865
  24,332
  25,859
  27,448
  29,104
  30,830
  32,630
  34,507
  36,466
  38,512
  40,649
  42,882
  45,217
  47,659
  50,214
  52,887
  55,686
  58,616
  61,686
  64,901
  68,271
  71,802
  75,503
  79,384
  83,453
  87,720
Total equity, $m
  1,949
  2,088
  2,233
  2,384
  2,541
  2,704
  2,873
  3,050
  3,234
  3,426
  3,626
  3,834
  4,052
  4,279
  4,517
  4,765
  5,024
  5,295
  5,579
  5,876
  6,187
  6,513
  6,854
  7,211
  7,586
  7,978
  8,389
  8,820
  9,273
  9,747
Total liabilities and equity, $m
  19,486
  20,881
  22,330
  23,838
  25,406
  27,036
  28,732
  30,498
  32,338
  34,256
  36,256
  38,341
  40,518
  42,791
  45,166
  47,647
  50,241
  52,954
  55,793
  58,763
  61,873
  65,129
  68,540
  72,112
  75,857
  79,780
  83,892
  88,204
  92,726
  97,467
Debt-to-equity ratio
  10.750
  10.630
  10.530
  10.430
  10.340
  10.260
  10.190
  10.120
  10.050
  10.000
  9.940
  9.890
  9.840
  9.800
  9.750
  9.720
  9.680
  9.640
  9.610
  9.580
  9.550
  9.520
  9.500
  9.470
  9.450
  9.430
  9.410
  9.390
  9.370
  9.350
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
  -896
  -840
  -886
  -934
  -984
  -1,036
  -1,090
  -1,146
  -1,205
  -1,266
  -1,329
  -1,395
  -1,464
  -1,536
  -1,611
  -1,690
  -1,771
  -1,857
  -1,946
  -2,040
  -2,138
  -2,240
  -2,347
  -2,460
  -2,577
  -2,700
  -2,829
  -2,964
  -3,106
  -3,255
Depreciation, amort., depletion, $m
  2,517
  2,698
  2,885
  3,080
  3,282
  3,493
  3,712
  3,940
  4,178
  4,426
  4,684
  4,953
  5,235
  5,528
  5,835
  6,156
  6,491
  6,841
  7,208
  7,592
  7,994
  8,414
  8,855
  9,316
  9,800
  10,307
  10,838
  11,395
  11,979
  12,592
Funds from operations, $m
  1,621
  1,858
  1,999
  2,145
  2,298
  2,457
  2,622
  2,794
  2,973
  3,160
  3,355
  3,558
  3,770
  3,992
  4,224
  4,466
  4,719
  4,984
  5,262
  5,552
  5,856
  6,174
  6,507
  6,857
  7,223
  7,607
  8,009
  8,431
  8,873
  9,337
Change in working capital, $m
  -1,535
  -1,595
  -1,658
  -1,723
  -1,792
  -1,864
  -1,940
  -2,019
  -2,103
  -2,192
  -2,286
  -2,385
  -2,489
  -2,599
  -2,715
  -2,837
  -2,966
  -3,102
  -3,245
  -3,396
  -3,555
  -3,722
  -3,899
  -4,084
  -4,280
  -4,485
  -4,702
  -4,929
  -5,168
  -5,420
Cash from operations, $m
  3,156
  3,453
  3,656
  3,868
  4,090
  4,320
  4,561
  4,813
  5,076
  5,352
  5,640
  5,943
  6,259
  6,591
  6,938
  7,303
  7,685
  8,086
  8,507
  8,948
  9,411
  9,896
  10,406
  10,941
  11,503
  12,092
  12,711
  13,360
  14,042
  14,757
Maintenance CAPEX, $m
  -2,343
  -2,517
  -2,698
  -2,885
  -3,080
  -3,282
  -3,493
  -3,712
  -3,940
  -4,178
  -4,426
  -4,684
  -4,953
  -5,235
  -5,528
  -5,835
  -6,156
  -6,491
  -6,841
  -7,208
  -7,592
  -7,994
  -8,414
  -8,855
  -9,316
  -9,800
  -10,307
  -10,838
  -11,395
  -11,979
New CAPEX, $m
  -1,740
  -1,802
  -1,873
  -1,947
  -2,025
  -2,106
  -2,192
  -2,282
  -2,377
  -2,477
  -2,583
  -2,695
  -2,812
  -2,937
  -3,068
  -3,206
  -3,352
  -3,505
  -3,667
  -3,838
  -4,017
  -4,207
  -4,406
  -4,616
  -4,837
  -5,069
  -5,313
  -5,570
  -5,841
  -6,125
Cash from investing activities, $m
  -4,083
  -4,319
  -4,571
  -4,832
  -5,105
  -5,388
  -5,685
  -5,994
  -6,317
  -6,655
  -7,009
  -7,379
  -7,765
  -8,172
  -8,596
  -9,041
  -9,508
  -9,996
  -10,508
  -11,046
  -11,609
  -12,201
  -12,820
  -13,471
  -14,153
  -14,869
  -15,620
  -16,408
  -17,236
  -18,104
Free cash flow, $m
  -928
  -867
  -915
  -964
  -1,015
  -1,068
  -1,123
  -1,181
  -1,241
  -1,303
  -1,368
  -1,436
  -1,507
  -1,581
  -1,658
  -1,738
  -1,822
  -1,910
  -2,002
  -2,098
  -2,198
  -2,304
  -2,414
  -2,529
  -2,650
  -2,777
  -2,909
  -3,049
  -3,194
  -3,347
Issuance/(repayment) of debt, $m
  -663
  1,256
  1,305
  1,356
  1,411
  1,467
  1,527
  1,590
  1,656
  1,726
  1,800
  1,877
  1,959
  2,046
  2,137
  2,233
  2,335
  2,442
  2,555
  2,673
  2,799
  2,931
  3,069
  3,216
  3,369
  3,531
  3,701
  3,881
  4,069
  4,267
Issuance/(repurchase) of shares, $m
  2,891
  979
  1,031
  1,085
  1,141
  1,199
  1,260
  1,323
  1,389
  1,458
  1,529
  1,604
  1,682
  1,763
  1,849
  1,938
  2,031
  2,128
  2,230
  2,337
  2,449
  2,566
  2,688
  2,817
  2,951
  3,093
  3,240
  3,395
  3,558
  3,729
Cash from financing (excl. dividends), $m  
  2,228
  2,235
  2,336
  2,441
  2,552
  2,666
  2,787
  2,913
  3,045
  3,184
  3,329
  3,481
  3,641
  3,809
  3,986
  4,171
  4,366
  4,570
  4,785
  5,010
  5,248
  5,497
  5,757
  6,033
  6,320
  6,624
  6,941
  7,276
  7,627
  7,996
Total cash flow (excl. dividends), $m
  1,301
  1,368
  1,422
  1,478
  1,537
  1,598
  1,663
  1,732
  1,804
  1,880
  1,960
  2,045
  2,134
  2,229
  2,328
  2,433
  2,544
  2,660
  2,783
  2,913
  3,049
  3,193
  3,344
  3,503
  3,671
  3,847
  4,032
  4,227
  4,433
  4,648
Retained Cash Flow (-), $m
  -2,891
  -979
  -1,031
  -1,085
  -1,141
  -1,199
  -1,260
  -1,323
  -1,389
  -1,458
  -1,529
  -1,604
  -1,682
  -1,763
  -1,849
  -1,938
  -2,031
  -2,128
  -2,230
  -2,337
  -2,449
  -2,566
  -2,688
  -2,817
  -2,951
  -3,093
  -3,240
  -3,395
  -3,558
  -3,729
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
  12
  13
  14
  15
  16
  17
  18
  19
  20
  22
  23
  24
  26
  27
  29
  30
  32
  34
  36
  37
  39
  42
  44
  46
  48
  51
  54
  56
  59
  62
Cash available for distribution, $m
  -1,544
  389
  390
  393
  396
  399
  404
  409
  415
  423
  431
  441
  453
  465
  480
  495
  513
  532
  553
  576
  600
  627
  655
  686
  719
  754
  792
  832
  875
  920
Discount rate, %
  14.70
  15.44
  16.21
  17.02
  17.87
  18.76
  19.70
  20.68
  21.72
  22.80
  23.94
  25.14
  26.40
  27.72
  29.10
  30.56
  32.09
  33.69
  35.38
  37.15
  39.00
  40.95
  43.00
  45.15
  47.41
  49.78
  52.27
  54.88
  57.63
  60.51
PV of cash for distribution, $m
  -1,346
  292
  249
  209
  174
  142
  115
  91
  71
  54
  41
  30
  22
  15
  10
  7
  5
  3
  2
  1
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  33.3
  22.3
  15.0
  10.1
  6.9
  4.7
  3.2
  2.2
  1.5
  1.1
  0.7
  0.5
  0.4
  0.2
  0.2
  0.1
  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

Valley National Bancorp is the bank holding company for Valley National Bank (the Bank). The Bank provides a range of commercial, retail, insurance and wealth management financial services products. The Company's segments include Consumer Lending, Commercial Lending, Investment Management, and Corporate and Other Adjustments. The Consumer Lending segment primarily includes residential mortgages, home equity loans and automobile loans. The Commercial Lending segment primarily includes floating rate and adjustable rate commercial and industrial loans, as well as fixed rate owner occupied and commercial real estate loans. The Investment Management segment includes the Company's investments in various types of securities. As of July 26, 2017, the Bank operated 200 branch locations serving northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn, Queens and Long Island, and Florida.

FINANCIAL RATIOS  of  Valley National Bancorp (VLY)

Valuation Ratios
P/E Ratio 18.6
Price to Sales 0
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 7.5
Price to Free Cash Flow 7.9
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -38.2%
Cap. Spend. - 3 Yr. Gr. Rate 7%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 31.3%
Total Debt to Equity 31.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 1.2%
Ret/ On Assets - 3 Yr. Avg. 1.3%
Return On Total Capital 5.2%
Ret/ On T. Cap. - 3 Yr. Avg. 4.3%
Return On Equity 7.3%
Return On Equity - 3 Yr. Avg. 6.4%
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 27.9%
Eff/ Tax Rate - 3 Yr. Avg. 22.6%
Payout Ratio 70.8%

VLY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the VLY stock intrinsic value calculation we used $762 million for the last fiscal year's total revenue generated by Valley National Bancorp. The default revenue input number comes from 2017 income statement of Valley National Bancorp. 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 VLY stock valuation model: a) initial revenue growth rate of 7.4% 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 14.7%, whose default value for VLY is calculated based on our internal credit rating of Valley National Bancorp, 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 Valley National Bancorp.
    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 VLY stock the variable cost ratio is equal to 63.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $26 million in the base year in the intrinsic value calculation for VLY 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 Valley National Bancorp.

Corporate tax rate of 27% is the nominal tax rate for Valley National Bancorp. 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 VLY stock is equal to 1.6%.

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 VLY are equal to 3076%.

Life of production assets of 10 years is the average useful life of capital assets used in Valley National Bancorp 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 VLY is equal to -2721.9%. 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 Valley National Bancorp - 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 264 million for Valley National Bancorp 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 Valley National Bancorp at the current share price and the inputted number of shares is $3.1 billion.

RELATED COMPANIES Price Int.Val. Rating
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STL Sterling Banco 22.55 48.78  str.buy

COMPANY NEWS

▶ Valley National: 2Q Earnings Snapshot   [09:28AM  Associated Press]
▶ Meet the new COO at Tampa Bays largest bank   [Jul-10-18 07:01AM  American City Business Journals]
▶ San Francisco fintech that cashes in home equity raises $40 million from global banks   [Jun-26-18 04:28PM  American City Business Journals]
▶ Big change in Tampa Bay banking will take place while you are sleeping tonight   [Apr-30-18 02:30PM  American City Business Journals]
▶ Valley National Bancorp to Host Earnings Call   [Apr-26-18 09:30AM  ACCESSWIRE]
▶ Valley National: 1Q Earnings Snapshot   [09:22AM  Associated Press]
▶ Here are the Tampa Bay bank branches that closed in Q1   [Apr-19-18 01:18PM  American City Business Journals]
▶ Top Ranked Income Stocks to Buy for March 6th   [Mar-06-18 08:55AM  Zacks]
▶ Weekly Top Insider Buys Highlight for the Week of Feb. 2   [Feb-04-18 04:10PM  GuruFocus.com]
▶ Valley National posts 4Q profit   [Jan-25-18 08:33AM  Associated Press]
▶ Tampa Bay enters 2018 with two fewer community banks   [Jan-02-18 01:05PM  American City Business Journals]
▶ Flavor Of The Month: Valley National Bancorp And More   [Nov-23-17 06:02AM  Simply Wall St.]
▶ Valley National posts 3Q profit   [08:15AM  Associated Press]
▶ Opening Bell, August 24, 2017   [Aug-24-17 09:29AM  CNBC Videos]
▶ No Fun In The Sun: Few Florida Banks Left For M&A   [Aug-02-17 09:15AM  Barrons.com]
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