Intrinsic value of XPO Logistics - XPO

Previous Close

$78.82

  Intrinsic Value

$192.80

stock screener

  Rating & Target

str. buy

+145%

Previous close

$78.82

 
Intrinsic value

$192.80

 
Up/down potential

+145%

 
Rating

str. buy

We calculate the intrinsic value of XPO 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 10.0

 

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, %
  16.00
  14.90
  13.91
  13.02
  12.22
  11.50
  10.85
  10.26
  9.74
  9.26
  8.84
  8.45
  8.11
  7.80
  7.52
  7.26
  7.04
  6.83
  6.65
  6.49
  6.34
  6.20
  6.08
  5.97
  5.88
  5.79
  5.71
  5.64
  5.58
  5.52
Revenue, $m
  17,842
  20,500
  23,352
  26,392
  29,616
  33,021
  36,602
  40,358
  44,287
  48,388
  52,664
  57,115
  61,745
  66,559
  71,562
  76,760
  82,163
  87,778
  93,617
  99,689
  106,006
  112,582
  119,431
  126,567
  134,006
  141,764
  149,860
  158,312
  167,139
  176,362
Variable operating expenses, $m
  14,570
  16,651
  18,884
  21,265
  23,789
  26,455
  29,259
  32,200
  35,276
  38,488
  41,236
  44,721
  48,346
  52,115
  56,033
  60,103
  64,333
  68,730
  73,302
  78,056
  83,003
  88,152
  93,514
  99,102
  104,926
  111,001
  117,340
  123,958
  130,869
  138,091
Fixed operating expenses, $m
  2,202
  2,251
  2,300
  2,351
  2,403
  2,456
  2,510
  2,565
  2,621
  2,679
  2,738
  2,798
  2,860
  2,923
  2,987
  3,053
  3,120
  3,188
  3,258
  3,330
  3,403
  3,478
  3,555
  3,633
  3,713
  3,795
  3,878
  3,963
  4,051
  4,140
Total operating expenses, $m
  16,772
  18,902
  21,184
  23,616
  26,192
  28,911
  31,769
  34,765
  37,897
  41,167
  43,974
  47,519
  51,206
  55,038
  59,020
  63,156
  67,453
  71,918
  76,560
  81,386
  86,406
  91,630
  97,069
  102,735
  108,639
  114,796
  121,218
  127,921
  134,920
  142,231
Operating income, $m
  1,069
  1,598
  2,167
  2,776
  3,424
  4,110
  4,833
  5,593
  6,389
  7,222
  8,690
  9,596
  10,539
  11,521
  12,542
  13,605
  14,710
  15,860
  17,057
  18,303
  19,600
  20,952
  22,362
  23,832
  25,367
  26,969
  28,642
  30,391
  32,219
  34,131
EBITDA, $m
  2,166
  2,769
  3,417
  4,111
  4,849
  5,630
  6,452
  7,317
  8,222
  9,169
  10,157
  11,186
  12,259
  13,374
  14,535
  15,742
  16,998
  18,304
  19,663
  21,078
  22,552
  24,087
  25,688
  27,357
  29,098
  30,916
  32,815
  34,799
  36,873
  39,042
Interest expense (income), $m
  363
  276
  363
  458
  560
  668
  783
  905
  1,033
  1,167
  1,307
  1,453
  1,606
  1,764
  1,929
  2,101
  2,280
  2,465
  2,658
  2,858
  3,066
  3,283
  3,508
  3,743
  3,987
  4,242
  4,507
  4,784
  5,073
  5,374
  5,689
Earnings before tax, $m
  794
  1,234
  1,709
  2,216
  2,756
  3,327
  3,928
  4,560
  5,223
  5,915
  7,237
  7,990
  8,775
  9,591
  10,441
  11,325
  12,245
  13,202
  14,198
  15,236
  16,317
  17,444
  18,619
  19,845
  21,125
  22,462
  23,858
  25,318
  26,845
  28,442
Tax expense, $m
  214
  333
  461
  598
  744
  898
  1,061
  1,231
  1,410
  1,597
  1,954
  2,157
  2,369
  2,590
  2,819
  3,058
  3,306
  3,565
  3,834
  4,114
  4,406
  4,710
  5,027
  5,358
  5,704
  6,065
  6,442
  6,836
  7,248
  7,679
Net income, $m
  579
  901
  1,247
  1,618
  2,012
  2,429
  2,868
  3,329
  3,813
  4,318
  5,283
  5,833
  6,406
  7,002
  7,622
  8,267
  8,939
  9,637
  10,365
  11,122
  11,912
  12,734
  13,592
  14,487
  15,421
  16,397
  17,416
  18,482
  19,597
  20,763

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
  14,612
  16,790
  19,125
  21,615
  24,256
  27,044
  29,977
  33,053
  36,271
  39,630
  43,132
  46,777
  50,569
  54,512
  58,609
  62,867
  67,292
  71,891
  76,672
  81,645
  86,819
  92,205
  97,814
  103,658
  109,751
  116,105
  122,736
  129,657
  136,887
  144,440
Adjusted assets (=assets-cash), $m
  14,612
  16,790
  19,125
  21,615
  24,256
  27,044
  29,977
  33,053
  36,271
  39,630
  43,132
  46,777
  50,569
  54,512
  58,609
  62,867
  67,292
  71,891
  76,672
  81,645
  86,819
  92,205
  97,814
  103,658
  109,751
  116,105
  122,736
  129,657
  136,887
  144,440
Revenue / Adjusted assets
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
  1.221
Average production assets, $m
  6,459
  7,421
  8,453
  9,554
  10,721
  11,953
  13,250
  14,610
  16,032
  17,517
  19,064
  20,676
  22,352
  24,094
  25,905
  27,787
  29,743
  31,776
  33,889
  36,087
  38,374
  40,755
  43,234
  45,817
  48,510
  51,319
  54,249
  57,309
  60,504
  63,843
Working capital, $m
  339
  390
  444
  501
  563
  627
  695
  767
  841
  919
  1,001
  1,085
  1,173
  1,265
  1,360
  1,458
  1,561
  1,668
  1,779
  1,894
  2,014
  2,139
  2,269
  2,405
  2,546
  2,694
  2,847
  3,008
  3,176
  3,351
Total debt, $m
  5,957
  7,512
  9,179
  10,957
  12,843
  14,833
  16,928
  19,124
  21,421
  23,820
  26,320
  28,923
  31,630
  34,445
  37,371
  40,411
  43,570
  46,854
  50,268
  53,819
  57,513
  61,358
  65,363
  69,536
  73,886
  78,423
  83,157
  88,099
  93,261
  98,654
Total liabilities, $m
  10,433
  11,988
  13,655
  15,433
  17,319
  19,309
  21,404
  23,600
  25,897
  28,296
  30,796
  33,399
  36,106
  38,921
  41,847
  44,887
  48,046
  51,330
  54,744
  58,295
  61,989
  65,834
  69,839
  74,012
  78,362
  82,899
  87,633
  92,575
  97,737
  103,130
Total equity, $m
  4,179
  4,802
  5,470
  6,182
  6,937
  7,735
  8,573
  9,453
  10,373
  11,334
  12,336
  13,378
  14,463
  15,590
  16,762
  17,980
  19,245
  20,561
  21,928
  23,350
  24,830
  26,371
  27,975
  29,646
  31,389
  33,206
  35,102
  37,082
  39,150
  41,310
Total liabilities and equity, $m
  14,612
  16,790
  19,125
  21,615
  24,256
  27,044
  29,977
  33,053
  36,270
  39,630
  43,132
  46,777
  50,569
  54,511
  58,609
  62,867
  67,291
  71,891
  76,672
  81,645
  86,819
  92,205
  97,814
  103,658
  109,751
  116,105
  122,735
  129,657
  136,887
  144,440
Debt-to-equity ratio
  1.430
  1.560
  1.680
  1.770
  1.850
  1.920
  1.970
  2.020
  2.070
  2.100
  2.130
  2.160
  2.190
  2.210
  2.230
  2.250
  2.260
  2.280
  2.290
  2.300
  2.320
  2.330
  2.340
  2.350
  2.350
  2.360
  2.370
  2.380
  2.380
  2.390
Adjusted equity ratio
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286
  0.286

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  579
  901
  1,247
  1,618
  2,012
  2,429
  2,868
  3,329
  3,813
  4,318
  5,283
  5,833
  6,406
  7,002
  7,622
  8,267
  8,939
  9,637
  10,365
  11,122
  11,912
  12,734
  13,592
  14,487
  15,421
  16,397
  17,416
  18,482
  19,597
  20,763
Depreciation, amort., depletion, $m
  1,097
  1,171
  1,250
  1,335
  1,425
  1,519
  1,619
  1,724
  1,833
  1,947
  1,466
  1,590
  1,719
  1,853
  1,993
  2,137
  2,288
  2,444
  2,607
  2,776
  2,952
  3,135
  3,326
  3,524
  3,732
  3,948
  4,173
  4,408
  4,654
  4,911
Funds from operations, $m
  1,676
  2,072
  2,498
  2,953
  3,436
  3,948
  4,487
  5,053
  5,646
  6,265
  6,750
  7,423
  8,125
  8,855
  9,615
  10,405
  11,227
  12,082
  12,972
  13,898
  14,863
  15,869
  16,918
  18,011
  19,153
  20,345
  21,589
  22,891
  24,251
  25,674
Change in working capital, $m
  47
  51
  54
  58
  61
  65
  68
  71
  75
  78
  81
  85
  88
  91
  95
  99
  103
  107
  111
  115
  120
  125
  130
  136
  141
  147
  154
  161
  168
  175
Cash from operations, $m
  1,629
  2,021
  2,443
  2,895
  3,375
  3,883
  4,419
  4,981
  5,571
  6,187
  6,669
  7,339
  8,037
  8,764
  9,520
  10,306
  11,124
  11,975
  12,861
  13,783
  14,743
  15,744
  16,788
  17,876
  19,011
  20,197
  21,436
  22,730
  24,083
  25,499
Maintenance CAPEX, $m
  -428
  -497
  -571
  -650
  -735
  -825
  -919
  -1,019
  -1,124
  -1,233
  -1,347
  -1,466
  -1,590
  -1,719
  -1,853
  -1,993
  -2,137
  -2,288
  -2,444
  -2,607
  -2,776
  -2,952
  -3,135
  -3,326
  -3,524
  -3,732
  -3,948
  -4,173
  -4,408
  -4,654
New CAPEX, $m
  -893
  -962
  -1,032
  -1,101
  -1,167
  -1,232
  -1,296
  -1,360
  -1,422
  -1,485
  -1,548
  -1,611
  -1,676
  -1,743
  -1,811
  -1,882
  -1,956
  -2,033
  -2,113
  -2,198
  -2,287
  -2,381
  -2,479
  -2,583
  -2,693
  -2,809
  -2,931
  -3,059
  -3,195
  -3,339
Cash from investing activities, $m
  -1,321
  -1,459
  -1,603
  -1,751
  -1,902
  -2,057
  -2,215
  -2,379
  -2,546
  -2,718
  -2,895
  -3,077
  -3,266
  -3,462
  -3,664
  -3,875
  -4,093
  -4,321
  -4,557
  -4,805
  -5,063
  -5,333
  -5,614
  -5,909
  -6,217
  -6,541
  -6,879
  -7,232
  -7,603
  -7,993
Free cash flow, $m
  308
  562
  840
  1,144
  1,473
  1,826
  2,203
  2,603
  3,025
  3,469
  3,773
  4,261
  4,771
  5,302
  5,855
  6,431
  7,031
  7,654
  8,303
  8,978
  9,681
  10,412
  11,173
  11,967
  12,794
  13,657
  14,557
  15,497
  16,479
  17,506
Issuance/(repayment) of debt, $m
  1,436
  1,555
  1,668
  1,778
  1,885
  1,991
  2,094
  2,196
  2,297
  2,399
  2,500
  2,603
  2,708
  2,815
  2,926
  3,040
  3,159
  3,284
  3,414
  3,551
  3,694
  3,846
  4,005
  4,173
  4,350
  4,537
  4,734
  4,942
  5,162
  5,393
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,436
  1,555
  1,668
  1,778
  1,885
  1,991
  2,094
  2,196
  2,297
  2,399
  2,500
  2,603
  2,708
  2,815
  2,926
  3,040
  3,159
  3,284
  3,414
  3,551
  3,694
  3,846
  4,005
  4,173
  4,350
  4,537
  4,734
  4,942
  5,162
  5,393
Total cash flow (excl. dividends), $m
  1,744
  2,117
  2,508
  2,922
  3,358
  3,817
  4,297
  4,799
  5,322
  5,868
  6,273
  6,864
  7,478
  8,117
  8,781
  9,471
  10,190
  10,938
  11,717
  12,529
  13,375
  14,257
  15,178
  16,140
  17,144
  18,194
  19,292
  20,440
  21,641
  22,899
Retained Cash Flow (-), $m
  -575
  -623
  -668
  -712
  -755
  -797
  -839
  -880
  -920
  -961
  -1,001
  -1,043
  -1,085
  -1,128
  -1,172
  -1,218
  -1,265
  -1,315
  -1,368
  -1,422
  -1,480
  -1,540
  -1,604
  -1,671
  -1,742
  -1,817
  -1,896
  -1,980
  -2,068
  -2,160
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
  1,169
  1,494
  1,840
  2,210
  2,603
  3,019
  3,458
  3,919
  4,402
  4,907
  5,272
  5,821
  6,394
  6,989
  7,609
  8,254
  8,925
  9,623
  10,350
  11,106
  11,895
  12,717
  13,574
  14,468
  15,402
  16,377
  17,395
  18,460
  19,574
  20,739
Discount rate, %
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
  1,085
  1,276
  1,437
  1,564
  1,655
  1,709
  1,724
  1,704
  1,649
  1,566
  1,414
  1,295
  1,163
  1,024
  883
  745
  616
  498
  394
  304
  229
  168
  120
  84
  56
  37
  23
  14
  9
  5
Current shareholders' claim on cash, %
  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
  100.0

XPO Logistics, Inc. is a global provider of supply chain solutions. The Company operates in two segments: Transportation and Logistics. The Transportation segment provides freight brokerage, last mile, less-than-truckload (LTL), full truckload and global forwarding services. The Logistics segment provides a range of contract logistics services, including highly engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory solutions. Its freight brokerage operations encompass truck brokerage globally, as well as intermodal, drayage and expedite services in North America. In Logistics segment, it provides warehousing and distribution solutions, such as factory support, aftermarket support, integrated manufacturing, packaging, labeling and transportation. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers.

FINANCIAL RATIOS  of  XPO Logistics (XPO)

Valuation Ratios
P/E Ratio 126.9
Price to Sales 0.6
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 14
Price to Free Cash Flow 61.7
Growth Rates
Sales Growth Rate 91.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 86.5%
Cap. Spend. - 3 Yr. Gr. Rate 109.4%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 175.2%
Total Debt to Equity 180.7%
Interest Coverage 1
Management Effectiveness
Return On Assets 2.9%
Ret/ On Assets - 3 Yr. Avg. -0.3%
Return On Total Capital 0.9%
Ret/ On T. Cap. - 3 Yr. Avg. -2.4%
Return On Equity 2.5%
Return On Equity - 3 Yr. Avg. -4.1%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 46.1%
Gross Margin - 3 Yr. Avg. 39.7%
EBITDA Margin 7.6%
EBITDA Margin - 3 Yr. Avg. 4%
Operating Margin 2.9%
Oper. Margin - 3 Yr. Avg. 0.2%
Pre-Tax Margin 0.7%
Pre-Tax Margin - 3 Yr. Avg. -2.3%
Net Profit Margin 0.5%
Net Profit Margin - 3 Yr. Avg. -1.6%
Effective Tax Rate 20.6%
Eff/ Tax Rate - 3 Yr. Avg. 27.2%
Payout Ratio 7.2%

XPO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the XPO stock intrinsic value calculation we used $15380.8 million for the last fiscal year's total revenue generated by XPO Logistics. The default revenue input number comes from 0001 income statement of XPO Logistics. 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 XPO stock valuation model: a) initial revenue growth rate of 16% 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 7.8%, whose default value for XPO is calculated based on our internal credit rating of XPO Logistics, 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 XPO Logistics.
    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 XPO stock the variable cost ratio is equal to 82.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2155 million in the base year in the intrinsic value calculation for XPO 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 6.1% for XPO Logistics.

Corporate tax rate of 27% is the nominal tax rate for XPO Logistics. 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 XPO 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 XPO are equal to 36.2%.

Life of production assets of 13 years is the average useful life of capital assets used in XPO Logistics 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 XPO is equal to 1.9%. 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 - $3604.4 million for XPO Logistics - 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 126.851 million for XPO Logistics 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 XPO Logistics at the current share price and the inputted number of shares is $10.0 billion.

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COMPANY NEWS

▶ [$$] Bankrupt Sears to License Kenmore and DieHard Brands   [09:13AM  The Wall Street Journal]
▶ Triad industrial portfolio sells for more than $81 million   [06:30AM  American City Business Journals]
▶ XPO Logistics Takes an Unexpected Hit   [Oct-31-18 07:48PM  Motley Fool]
▶ XPO Logistics Adjusts Guidance Off Customer Bankruptcy   [07:01PM  The Wall Street Journal]
▶ XPO: 3Q Earnings Snapshot   [04:53PM  Associated Press]
▶ How to Invest in E-Commerce Stocks   [Oct-30-18 05:02PM  Motley Fool]
▶ BofA: Buy The Dip In XPO Logistics   [11:14AM  Benzinga]
▶ XPO Logistics Named a Fortune Future 50 Company   [Oct-19-18 07:01AM  GlobeNewswire]
▶ Elon: DeJoy-Wos endowment to fund four full scholarships per year   [Oct-18-18 02:08PM  American City Business Journals]
▶ Industrials hit hard in volatile market   [Oct-11-18 10:45AM  Yahoo Finance Video]
▶ Today's Top Supply Chain and Logistics News From WSJ   [Oct-04-18 10:43AM  The Wall Street Journal]
▶ From Reindeer to Robots, Automation Set to Deliver This Holiday Season   [Oct-03-18 08:33PM  The Wall Street Journal]
▶ 5 Companies Hit 52-Week Highs   [Oct-02-18 11:31AM  GuruFocus.com]
▶ Calculating The Fair Value Of XPO Logistics Inc (NYSE:XPO)   [Sep-24-18 12:42PM  Simply Wall St.]
▶ Oppenheimers 7 Top Stock Picks for September   [Sep-17-18 03:40PM  Kiplinger]
▶ Apple, Snap Weak Again; Will This Sector Help Dow Beat Nasdaq In Q3?   [Sep-10-18 04:45PM  Investor's Business Daily]
▶ 3 Stocks That Have Doubled and Still Have Room to Grow   [Aug-29-18 10:45AM  Motley Fool]
▶ Retailer House of Fraser Locked Down in Logistics Standoff   [Aug-18-18 05:29AM  The Wall Street Journal]
▶ XPO: 2Q Earnings Snapshot   [Aug-01-18 06:23PM  Associated Press]
▶ XPO Logistics Supports New York City Emergency Preparedness   [Jul-23-18 08:32AM  GlobeNewswire]
▶ 2 Top Stocks for 2030 That Investors Have to Check Out   [Jul-21-18 11:46AM  Motley Fool]
▶ 2 Tech Sectors Every Investor Should Be In   [Jul-14-18 02:05PM  Motley Fool]
▶ 3 Stocks That Could Put Amazon's Returns to Shame   [Jul-10-18 06:33AM  Motley Fool]
▶ Should You Buy XPO Logistics Inc (NYSE:XPO) Now?   [Jun-22-18 11:47AM  Simply Wall St.]
▶ Is There a Speed Bump Ahead for XPO Logistics?   [Jun-13-18 07:13AM  Motley Fool]

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