Intuit (INTU:NAS) Fundamental Valuation Report

Fundamental Valuation Report



This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$212.36 (USD) 01/11/2018

Weighted Valuation
$213.01 (USD)

Overall Rating
Fairly valued to slightly Undervalued by 0.3%

Valuation Models Analyst Consensus: $223.43 (USD)
(in order of importance) Adjusted Book Value: $213.17 (USD)
Multiples: $181.46 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation

Company Overview (INTU:NAS USD)

Price 212.36
Range 207.81 – 212.59
52 week 151.63 – 231.32
Open 210.81
Vol / Avg. 1.37M/1.68M
Mkt cap 54.58B
P/E 45.77
Div/yield 1.56/0.01
EPS 4.64
Shares 258.67M
Beta 1.20

Company Description

Intuit develops and markets well-known and trusted software products such as QuickBooks for small-business accounting, TurboTax for preparing personal tax returns, and Mint for managing personal finances. The firm is targeting the additional needs of small businesses with payroll and payment processing products in addition to growing its self-employed user base. Intuit was founded in 1983 and is based in Mountain View, California.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for INTU:NAS

Using a discounted cash flow model we generated an intrinsic value of $132.72 (USD) for INTU:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

INTU:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $132.72 1% 5% 1% 5%
WACC (or Ke) 9.45 $158.23 $114.06
Terminal Growth Rate 3.00 $116.21 $155.28
Tax Rate 0.19 $140.72 $124.71
Cash Flow 3,079,700,000 $125.99 $139.45
Capital Expenditures -160,400,000 $132.40 $133.04
Long Term Debt 1,000,000,000 $132.91 $132.52

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $272.03 (USD) for INTU:NAS. We also generated a valuation of $237.24 (USD) using other metrics and comparables.
The comparable companies were Autodesk (ADSK:NAS), Fortinet (FTNT:NAS), ServiceNow (NOW:NYS), Square (SQ:NYS) and Workday (WDAY:NAS).

Company INTU:NAS End Date Value
Earnings/Share $4.64 (USD)
Book Value/Share $9.10 (USD)
Sales/Share $22.85 (USD)
Cash Flow/Share $8.09 (USD)
EBITDA/Share $6.80 (USD)
Price Based on Comps Adjustment Factor (%)
$733.30 (USD) -50.5
$223.10 (USD) 0.0
$263.81 (USD) 28.6
$332.75 (USD) -60.4
$396.72 (USD) -23.4
45.47 PE Ratio 158.04 0.00 158.04 0.00 0.00 0.00
23.19 PB Ratio 24.52 0.00 17.82 36.12 27.87 16.26
9.23 PS Ratio 11.54 12.64 8.81 13.89 10.76 11.63
26.08 PCF Ratio 181.93 518.54 23.88 45.00 267.15 55.11
29.81 EV to EBITDA 234.09 0.00 58.30 409.88 0.00 0.00


Using a multiples approach we generated a valuation of  $181.46 (USD) for INTU:NAS

Company INTU:NAS End Date Value
Earnings/Share $4.64 (USD)
Book Value/Share $9.10 (USD)
Sales/Share $22.85 (USD)
Cash Flow/Share $8.09 (USD)
EBITDA/Share $6.80 (USD)
Price Based on Comps Adjustment Factor
$200.70 (USD) 0
$230.02 (USD) 0
$151.02 (USD) 0
$171.36 (USD) 0
$154.19 (USD) 0
Ratios Ratio Average
PE Ratio 43.25
PB Ratio 25.28
PS Ratio 6.61
PCF Ratio 21.18
EV to EBITDA 22.66

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  INTU:NAS for the last 10 years was  23.42

We ran the Adjusted Book Value for  INTU:NAS and generated a book value of  $9.10 (USD)
By multiplying these we get an adjusted valuation of  $213.17 (USD)

Analyst Data

In the Stockcalc database there are 7 analysts that provide a valuation for INTU:NAS. The 7 analysts have a concensus valuation for INTU:NAS for 2019 of $223.43 (USD).


Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
4 4 1 3.5000 Hold 2018-10-31

Current Price: 212.36 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 6.47 7.28 8.36
# EPS Analysts 9 9 2
Mean Revenue 6,615.20 7,307.60 8,082.30
# Revenue Analysts 7 7 2
Mean Target Price 223.43
Mean Cash Flow 7.57 8.43 9.20
Mean EBITDA 2,299.30 2,590.50 2,990.00
Mean Net Income 1,686.70 1,890.10 2,178.00
Mean Debt Outstanding -2,215.50 -3,604.80
Mean Tax Rate 23.00 23.00 23.00
Mean Growth Rate 14.51
Mean Capital Expenditure 156.70 190.40 200.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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