Intrinsic value of Wayfair Cl A - W

Previous Close

$107.87

  Intrinsic Value

$2.65

stock screener

  Rating & Target

str. sell

-98%

Previous close

$107.87

 
Intrinsic value

$2.65

 
Up/down potential

-98%

 
Rating

str. sell

We calculate the intrinsic value of W 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 0001), $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 6.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  47.40
  43.16
  39.34
  35.91
  32.82
  30.04
  27.53
  25.28
  23.25
  21.43
  19.78
  18.31
  16.98
  15.78
  14.70
  13.73
  12.86
  12.07
  11.36
  10.73
  10.15
  9.64
  9.18
  8.76
  8.38
  8.04
  7.74
  7.47
  7.22
  7.00
Revenue, $m
  6,959
  9,962
  13,881
  18,866
  25,058
  32,584
  41,556
  52,061
  64,166
  77,915
  93,329
  110,414
  129,156
  149,534
  171,515
  195,064
  220,143
  246,716
  274,753
  304,228
  335,121
  367,425
  401,138
  436,269
  472,837
  510,872
  550,411
  591,502
  634,203
  678,578
Variable operating expenses, $m
  7,160
  10,250
  14,283
  19,412
  25,783
  33,527
  42,758
  53,567
  66,023
  80,169
  96,029
  113,608
  132,893
  153,860
  176,478
  200,708
  226,512
  253,855
  282,703
  313,030
  344,818
  378,056
  412,744
  448,892
  486,519
  525,654
  566,337
  608,617
  652,553
  698,212
Fixed operating expenses, $m
  102
  104
  107
  109
  111
  114
  116
  119
  122
  124
  127
  130
  133
  136
  139
  142
  145
  148
  151
  155
  158
  161
  165
  169
  172
  176
  180
  184
  188
  192
Total operating expenses, $m
  7,262
  10,354
  14,390
  19,521
  25,894
  33,641
  42,874
  53,686
  66,145
  80,293
  96,156
  113,738
  133,026
  153,996
  176,617
  200,850
  226,657
  254,003
  282,854
  313,185
  344,976
  378,217
  412,909
  449,061
  486,691
  525,830
  566,517
  608,801
  652,741
  698,404
Operating income, $m
  -304
  -393
  -509
  -655
  -837
  -1,057
  -1,319
  -1,626
  -1,979
  -2,379
  -2,827
  -3,325
  -3,870
  -4,462
  -5,101
  -5,786
  -6,514
  -7,286
  -8,101
  -8,957
  -9,854
  -10,793
  -11,772
  -12,792
  -13,853
  -14,958
  -16,106
  -17,299
  -18,538
  -19,826
EBITDA, $m
  -214
  -265
  -331
  -413
  -516
  -640
  -787
  -959
  -1,157
  -1,381
  -1,633
  -1,911
  -2,217
  -2,548
  -2,906
  -3,289
  -3,697
  -4,129
  -4,584
  -5,063
  -5,565
  -6,090
  -6,637
  -7,207
  -7,801
  -8,419
  -9,060
  -9,727
  -10,420
  -11,140
Interest expense (income), $m
  0
  22
  41
  79
  128
  190
  267
  361
  473
  605
  756
  927
  1,120
  1,333
  1,568
  1,822
  2,097
  2,391
  2,704
  3,036
  3,386
  3,754
  4,140
  4,544
  4,965
  5,403
  5,860
  6,335
  6,829
  7,342
  7,876
Earnings before tax, $m
  -326
  -434
  -587
  -783
  -1,027
  -1,324
  -1,680
  -2,099
  -2,583
  -3,135
  -3,755
  -4,445
  -5,203
  -6,030
  -6,923
  -7,882
  -8,905
  -9,990
  -11,137
  -12,343
  -13,609
  -14,933
  -16,315
  -17,756
  -19,257
  -20,818
  -22,441
  -24,128
  -25,881
  -27,702
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
  -326
  -434
  -587
  -783
  -1,027
  -1,324
  -1,680
  -2,099
  -2,583
  -3,135
  -3,755
  -4,445
  -5,203
  -6,030
  -6,923
  -7,882
  -8,905
  -9,990
  -11,137
  -12,343
  -13,609
  -14,933
  -16,315
  -17,756
  -19,257
  -20,818
  -22,441
  -24,128
  -25,881
  -27,702

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
  1,788
  2,560
  3,568
  4,849
  6,440
  8,374
  10,680
  13,380
  16,491
  20,024
  23,986
  28,377
  33,194
  38,431
  44,080
  50,132
  56,577
  63,407
  70,612
  78,187
  86,127
  94,429
  103,094
  112,123
  121,521
  131,296
  141,457
  152,018
  162,992
  174,397
Adjusted assets (=assets-cash), $m
  1,788
  2,560
  3,568
  4,849
  6,440
  8,374
  10,680
  13,380
  16,491
  20,024
  23,986
  28,377
  33,194
  38,431
  44,080
  50,132
  56,577
  63,407
  70,612
  78,187
  86,127
  94,429
  103,094
  112,123
  121,521
  131,296
  141,457
  152,018
  162,992
  174,397
Revenue / Adjusted assets
  3.892
  3.891
  3.890
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
  3.891
Average production assets, $m
  445
  638
  888
  1,207
  1,604
  2,085
  2,660
  3,332
  4,107
  4,987
  5,973
  7,066
  8,266
  9,570
  10,977
  12,484
  14,089
  15,790
  17,584
  19,471
  21,448
  23,515
  25,673
  27,921
  30,262
  32,696
  35,226
  37,856
  40,589
  43,429
Working capital, $m
  -800
  -1,146
  -1,596
  -2,170
  -2,882
  -3,747
  -4,779
  -5,987
  -7,379
  -8,960
  -10,733
  -12,698
  -14,853
  -17,196
  -19,724
  -22,432
  -25,316
  -28,372
  -31,597
  -34,986
  -38,539
  -42,254
  -46,131
  -50,171
  -54,376
  -58,750
  -63,297
  -68,023
  -72,933
  -78,037
Total debt, $m
  763
  1,458
  2,365
  3,518
  4,950
  6,691
  8,766
  11,196
  13,996
  17,176
  20,741
  24,693
  29,028
  33,741
  38,826
  44,273
  50,073
  56,220
  62,705
  69,522
  76,668
  84,140
  91,938
  100,064
  108,522
  117,320
  126,465
  135,970
  145,847
  156,111
Total liabilities, $m
  1,610
  2,304
  3,211
  4,364
  5,796
  7,537
  9,612
  12,042
  14,842
  18,022
  21,587
  25,539
  29,874
  34,588
  39,672
  45,119
  50,920
  57,066
  63,551
  70,369
  77,515
  84,986
  92,784
  100,910
  109,369
  118,166
  127,312
  136,816
  146,693
  156,957
Total equity, $m
  179
  256
  357
  485
  644
  837
  1,068
  1,338
  1,649
  2,002
  2,399
  2,838
  3,319
  3,843
  4,408
  5,013
  5,658
  6,341
  7,061
  7,819
  8,613
  9,443
  10,309
  11,212
  12,152
  13,130
  14,146
  15,202
  16,299
  17,440
Total liabilities and equity, $m
  1,789
  2,560
  3,568
  4,849
  6,440
  8,374
  10,680
  13,380
  16,491
  20,024
  23,986
  28,377
  33,193
  38,431
  44,080
  50,132
  56,578
  63,407
  70,612
  78,188
  86,128
  94,429
  103,093
  112,122
  121,521
  131,296
  141,458
  152,018
  162,992
  174,397
Debt-to-equity ratio
  4.270
  5.690
  6.630
  7.250
  7.690
  7.990
  8.210
  8.370
  8.490
  8.580
  8.650
  8.700
  8.750
  8.780
  8.810
  8.830
  8.850
  8.870
  8.880
  8.890
  8.900
  8.910
  8.920
  8.920
  8.930
  8.940
  8.940
  8.940
  8.950
  8.950
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
  -326
  -434
  -587
  -783
  -1,027
  -1,324
  -1,680
  -2,099
  -2,583
  -3,135
  -3,755
  -4,445
  -5,203
  -6,030
  -6,923
  -7,882
  -8,905
  -9,990
  -11,137
  -12,343
  -13,609
  -14,933
  -16,315
  -17,756
  -19,257
  -20,818
  -22,441
  -24,128
  -25,881
  -27,702
Depreciation, amort., depletion, $m
  89
  128
  178
  242
  321
  417
  532
  667
  822
  998
  1,195
  1,413
  1,653
  1,914
  2,195
  2,497
  2,818
  3,158
  3,517
  3,894
  4,290
  4,703
  5,135
  5,584
  6,052
  6,539
  7,045
  7,571
  8,118
  8,686
Funds from operations, $m
  -237
  -306
  -409
  -541
  -706
  -907
  -1,148
  -1,432
  -1,761
  -2,137
  -2,560
  -3,031
  -3,550
  -4,116
  -4,728
  -5,385
  -6,087
  -6,832
  -7,620
  -8,449
  -9,319
  -10,230
  -11,181
  -12,172
  -13,205
  -14,279
  -15,396
  -16,556
  -17,763
  -19,016
Change in working capital, $m
  -257
  -345
  -451
  -573
  -712
  -866
  -1,032
  -1,208
  -1,392
  -1,581
  -1,773
  -1,965
  -2,155
  -2,343
  -2,528
  -2,708
  -2,884
  -3,056
  -3,224
  -3,390
  -3,553
  -3,715
  -3,877
  -4,040
  -4,205
  -4,374
  -4,547
  -4,725
  -4,911
  -5,103
Cash from operations, $m
  20
  39
  41
  32
  6
  -41
  -116
  -224
  -369
  -556
  -788
  -1,067
  -1,395
  -1,772
  -2,200
  -2,677
  -3,203
  -3,777
  -4,396
  -5,060
  -5,766
  -6,515
  -7,304
  -8,132
  -8,999
  -9,905
  -10,849
  -11,831
  -12,852
  -13,913
Maintenance CAPEX, $m
  -60
  -89
  -128
  -178
  -241
  -321
  -417
  -532
  -666
  -821
  -997
  -1,195
  -1,413
  -1,653
  -1,914
  -2,195
  -2,497
  -2,818
  -3,158
  -3,517
  -3,894
  -4,290
  -4,703
  -5,135
  -5,584
  -6,052
  -6,539
  -7,045
  -7,571
  -8,118
New CAPEX, $m
  -143
  -192
  -251
  -319
  -396
  -482
  -574
  -672
  -775
  -880
  -987
  -1,093
  -1,200
  -1,304
  -1,407
  -1,507
  -1,605
  -1,701
  -1,794
  -1,886
  -1,977
  -2,067
  -2,158
  -2,248
  -2,340
  -2,434
  -2,530
  -2,630
  -2,733
  -2,840
Cash from investing activities, $m
  -203
  -281
  -379
  -497
  -637
  -803
  -991
  -1,204
  -1,441
  -1,701
  -1,984
  -2,288
  -2,613
  -2,957
  -3,321
  -3,702
  -4,102
  -4,519
  -4,952
  -5,403
  -5,871
  -6,357
  -6,861
  -7,383
  -7,924
  -8,486
  -9,069
  -9,675
  -10,304
  -10,958
Free cash flow, $m
  -183
  -242
  -337
  -465
  -631
  -844
  -1,108
  -1,428
  -1,810
  -2,257
  -2,771
  -3,355
  -4,007
  -4,730
  -5,521
  -6,380
  -7,305
  -8,295
  -9,348
  -10,463
  -11,638
  -12,872
  -14,164
  -15,515
  -16,924
  -18,391
  -19,918
  -21,506
  -23,156
  -24,871
Issuance/(repayment) of debt, $m
  348
  695
  907
  1,153
  1,432
  1,741
  2,075
  2,430
  2,800
  3,180
  3,565
  3,952
  4,335
  4,713
  5,084
  5,447
  5,801
  6,147
  6,485
  6,818
  7,146
  7,472
  7,798
  8,126
  8,458
  8,797
  9,145
  9,505
  9,877
  10,264
Issuance/(repurchase) of shares, $m
  553
  511
  688
  911
  1,186
  1,518
  1,911
  2,369
  2,894
  3,488
  4,151
  4,884
  5,685
  6,553
  7,488
  8,487
  9,550
  10,673
  11,857
  13,101
  14,403
  15,763
  17,182
  18,659
  20,197
  21,795
  23,457
  25,184
  26,978
  28,842
Cash from financing (excl. dividends), $m  
  901
  1,206
  1,595
  2,064
  2,618
  3,259
  3,986
  4,799
  5,694
  6,668
  7,716
  8,836
  10,020
  11,266
  12,572
  13,934
  15,351
  16,820
  18,342
  19,919
  21,549
  23,235
  24,980
  26,785
  28,655
  30,592
  32,602
  34,689
  36,855
  39,106
Total cash flow (excl. dividends), $m
  718
  964
  1,258
  1,599
  1,987
  2,415
  2,878
  3,370
  3,884
  4,411
  4,945
  5,481
  6,013
  6,537
  7,052
  7,554
  8,045
  8,525
  8,994
  9,455
  9,911
  10,363
  10,815
  11,270
  11,731
  12,202
  12,684
  13,182
  13,698
  14,236
Retained Cash Flow (-), $m
  -553
  -511
  -688
  -911
  -1,186
  -1,518
  -1,911
  -2,369
  -2,894
  -3,488
  -4,151
  -4,884
  -5,685
  -6,553
  -7,488
  -8,487
  -9,550
  -10,673
  -11,857
  -13,101
  -14,403
  -15,763
  -17,182
  -18,659
  -20,197
  -21,795
  -23,457
  -25,184
  -26,978
  -28,842
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
  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
  165
  452
  570
  688
  801
  897
  967
  1,001
  989
  923
  794
  597
  328
  -16
  -437
  -933
  -1,504
  -2,148
  -2,863
  -3,645
  -4,492
  -5,400
  -6,366
  -7,389
  -8,465
  -9,594
  -10,773
  -12,002
  -13,279
  -14,607
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
  158
  414
  496
  567
  621
  651
  654
  626
  568
  484
  377
  255
  125
  -5
  -128
  -237
  -327
  -396
  -441
  -463
  -465
  -448
  -417
  -376
  -329
  -280
  -231
  -186
  -145
  -110
Current shareholders' claim on cash, %
  50.0
  13.0
  3.5
  1.0
  0.3
  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
  0.0
  0.0
  0.0
  0.0
  0.0

Wayfair Inc. (Wayfair) offers browsing, merchandising and product discovery for a range of products from various suppliers. The Company operates through two segments: U.S. and International. The U.S. segment consists of amounts earned through product sales through the Company's five sites in the United States and through sites operated by third parties in the United States. The International segment consists of amounts earned through product sales through its international sites. It has an online selection of furniture, decor, decorative accents, housewares, seasonal decor and other home goods. As of December 31, 2016, it had offered five sites, including Websites, mobile-optimized Websites and mobile applications: Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane. Wayfair is an online destination for all things home. Birch Lane offers a collection of furnishings and home decor. Its sites feature certain products under its house brands, such as Three Posts and Mercury Row.

FINANCIAL RATIOS  of  Wayfair Cl A (W)

Valuation Ratios
P/E Ratio -47.7
Price to Sales 2.7
Price to Book 117.2
Price to Tangible Book
Price to Cash Flow 147
Price to Free Cash Flow -142.4
Growth Rates
Sales Growth Rate 50.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 106.5%
Cap. Spend. - 3 Yr. Gr. Rate 51.6%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 36.7%
Total Debt to Equity 36.7%
Interest Coverage 0
Management Effectiveness
Return On Assets -26.6%
Ret/ On Assets - 3 Yr. Avg. -26.1%
Return On Total Capital -110.5%
Ret/ On T. Cap. - 3 Yr. Avg. -73.9%
Return On Equity -120.5%
Return On Equity - 3 Yr. Avg. -77.2%
Asset Turnover 4.6
Profitability Ratios
Gross Margin 20.1%
Gross Margin - 3 Yr. Avg. 20%
EBITDA Margin -4.1%
EBITDA Margin - 3 Yr. Avg. -5.2%
Operating Margin -5.8%
Oper. Margin - 3 Yr. Avg. -6.9%
Pre-Tax Margin -5.7%
Pre-Tax Margin - 3 Yr. Avg. -6.8%
Net Profit Margin -5.7%
Net Profit Margin - 3 Yr. Avg. -6.8%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

W stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the W stock intrinsic value calculation we used $4720.895 million for the last fiscal year's total revenue generated by Wayfair Cl A. The default revenue input number comes from 0001 income statement of Wayfair Cl A. 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 W stock valuation model: a) initial revenue growth rate of 47.4% 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 4.3%, whose default value for W is calculated based on our internal credit rating of Wayfair Cl A, 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 Wayfair Cl A.
    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 W stock the variable cost ratio is equal to 102.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $100 million in the base year in the intrinsic value calculation for W 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 Wayfair Cl A.

Corporate tax rate of 27% is the nominal tax rate for Wayfair Cl A. 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 W 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 W are equal to 6.4%.

Life of production assets of 3.5 years is the average useful life of capital assets used in Wayfair Cl A 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 W is equal to -11.5%. 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 - $-48.329 million for Wayfair Cl A - 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 59.661 million for Wayfair Cl A 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 Wayfair Cl A at the current share price and the inputted number of shares is $6.4 billion.

RELATED COMPANIES Price Int.Val. Rating
WSM Williams-Sonom 53.16 71.76  hold
RH RH 136.10 19.11  str.sell
BBBY Bed Bath&Beyon 12.34 79.82  str.buy
HOME At Home Group 20.50 12.91  str.sell
AMZN Amazon.com 1,663.54 2,694.69  buy
HVT Haverty Furnit 19.50 15.95  sell
KIRK Kirkland's 10.66 7.92  sell
EBAY eBay 29.04 54.88  str.buy
OSTK Overstock.com 19.10 390.08  str.buy
HD Home Depot 174.21 96.68  str.sell

COMPANY NEWS

▶ Even after you're hired at Wayfair, there's a wait to get in the door   [05:44AM  American City Business Journals]
▶ Is Wayfair Inc (W) Going to Burn These Hedge Funds?   [Dec-10-18 11:56PM  Insider Monkey]
▶ Here are the tech firms hiring the most in the Boston area this year   [12:31PM  American City Business Journals]
▶ Wayfair to create 1,000 jobs, build new 1M-square-foot facility in Savannah   [Nov-29-18 12:48PM  American City Business Journals]
▶ Why Amazon.com, Wayfair, and Ferroglobe Jumped Today   [Nov-28-18 04:29PM  Motley Fool]
▶ Why Wayfair Stock Surged Today   [02:25PM  Motley Fool]
▶ Wayfair stock surges on holiday shopping growth   [11:01AM  American City Business Journals]
▶ Cyber Monday shoppers to get hit with taxes   [Nov-26-18 10:17AM  Yahoo Finance Video]
▶ 3 Bargain Stocks You Can Buy Right Now   [Nov-15-18 08:30PM  Motley Fool]
▶ 3 High-Growth Stocks That Are Just Getting Started   [Nov-08-18 08:53AM  Motley Fool]
▶ Why Wayfair Stock Shed 25% in October   [12:08PM  Motley Fool]
▶ Is Wayfair Incs (NYSE:W) CEO Salary Justified?   [Nov-04-18 08:12AM  Simply Wall St.]
▶ Company News For Nov 2, 2018   [09:41AM  Zacks]
▶ [$$] Wayfair Shares Fall as Losses Widen   [Nov-01-18 08:29PM  The Wall Street Journal]
▶ [$$] Wayfair Shares Fall as Losses Widen   [03:19PM  The Wall Street Journal]
▶ Wayfair Stock Dives on Q3 Earnings Miss   [12:49PM  InvestorPlace]
▶ Why Wayfair Inc. Stock Slipped Today   [12:13PM  Motley Fool]
▶ [$$] Path to Profits Still Eludes Wayfair   [12:02PM  The Wall Street Journal]
▶ Wayfair: 3Q Earnings Snapshot   [07:47AM  Associated Press]
▶ Wayfair Announces Third Quarter 2018 Results   [07:00AM  Business Wire]
▶ Q3 Earnings Preview For Wayfair   [Oct-31-18 02:50PM  Benzinga]
▶ How to Invest in E-Commerce Stocks   [Oct-30-18 05:02PM  Motley Fool]
▶ Wayfair stock drops as Amazon plans new furniture brand   [Oct-29-18 04:45PM  American City Business Journals]
▶ 3 Things to Watch in the Stock Market This Week   [Oct-28-18 08:15AM  Motley Fool]
▶ Wayfair Earnings: 3 Numbers to Watch   [Oct-26-18 11:43AM  Motley Fool]
▶ Netflixs Blowout Report Is a Great Thing for FANG Stocks   [Oct-17-18 02:50PM  InvestorPlace]
▶ Magic Leap is real and it's a janky marvel   [Oct-09-18 08:53PM  TechCrunch]
▶ 3 Growth Stocks I'd Buy Right Now   [Oct-07-18 09:32AM  Motley Fool]
▶ Heres how Target is making a comeback   [09:45AM  CNBC Videos]
▶ Wayfair will launch first-ever pop-up stores in Natick, New Jersey   [06:09AM  American City Business Journals]
▶ Two Boston tech execs join ranks of Forbes' 400 richest Americans   [05:49AM  American City Business Journals]
▶ A New CEO Wont Save J.C. Penney Stock   [05:00AM  InvestorPlace]
▶ Bed Bath & Beyond Stock Very Well Could Be a Dead Duck   [Sep-28-18 11:51AM  InvestorPlace]
▶ MKM: Watch Wayfair, 13% upside ahead   [Sep-27-18 01:19PM  CNBC Videos]
▶ MKM raises Wayfair price target to $165   [11:43AM  CNBC Videos]
▶ Amazon's Scout personalizes product searches   [Sep-24-18 09:25AM  American City Business Journals]
▶ Wayfair stock drops after Amazon unveils furniture-focused site   [02:46PM  American City Business Journals]
▶ Wayfair overtakes Akamai as the most valuable internet company in Mass.   [Sep-12-18 09:41PM  American City Business Journals]
▶ Why Wayfair Stock Jumped 24% Last Month   [07:19AM  Motley Fool]

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