Intrinsic value of Veresen Inc. - VSN

Previous Close

$18.51

  Intrinsic Value

$5.46

stock screener

  Rating & Target

str. sell

-71%

Previous close

$18.51

 
Intrinsic value

$5.46

 
Up/down potential

-71%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of VSN 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 2016), $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 5.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -41.76
  33.30
  30.47
  27.92
  25.63
  23.57
  21.71
  20.04
  18.54
  17.18
  15.96
  14.87
  13.88
  12.99
  12.19
  11.47
  10.83
  10.24
  9.72
  9.25
  8.82
  8.44
  8.10
  7.79
  7.51
  7.26
  7.03
  6.83
  6.65
  6.48
  6.33
Revenue, $m
  53
  71
  92
  118
  148
  183
  223
  267
  317
  371
  431
  495
  564
  637
  714
  796
  883
  973
  1,068
  1,166
  1,269
  1,376
  1,488
  1,604
  1,724
  1,849
  1,979
  2,114
  2,255
  2,401
  2,553
Variable operating expenses, $m
 
  137
  179
  229
  288
  356
  433
  520
  616
  722
  837
  961
  1,095
  1,237
  1,388
  1,547
  1,715
  1,890
  2,074
  2,266
  2,466
  2,674
  2,891
  3,116
  3,350
  3,593
  3,845
  4,108
  4,381
  4,665
  4,960
Fixed operating expenses, $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 operating expenses, $m
  318
  137
  179
  229
  288
  356
  433
  520
  616
  722
  837
  961
  1,095
  1,237
  1,388
  1,547
  1,715
  1,890
  2,074
  2,266
  2,466
  2,674
  2,891
  3,116
  3,350
  3,593
  3,845
  4,108
  4,381
  4,665
  4,960
Operating income, $m
  -265
  -67
  -87
  -111
  -140
  -173
  -210
  -252
  -299
  -350
  -406
  -467
  -531
  -600
  -674
  -751
  -832
  -918
  -1,007
  -1,100
  -1,197
  -1,298
  -1,403
  -1,512
  -1,626
  -1,744
  -1,866
  -1,994
  -2,126
  -2,264
  -2,407
EBITDA, $m
  -246
  -41
  -54
  -69
  -87
  -107
  -130
  -156
  -185
  -217
  -252
  -289
  -329
  -372
  -417
  -465
  -516
  -568
  -624
  -681
  -742
  -804
  -869
  -937
  -1,007
  -1,080
  -1,156
  -1,235
  -1,317
  -1,403
  -1,492
Interest expense (income), $m
  49
  51
  75
  105
  141
  183
  232
  288
  351
  420
  497
  580
  670
  766
  869
  978
  1,093
  1,214
  1,341
  1,473
  1,612
  1,756
  1,906
  2,063
  2,225
  2,394
  2,570
  2,752
  2,942
  3,139
  3,344
Earnings before tax, $m
  -31
  -117
  -162
  -216
  -281
  -356
  -442
  -540
  -650
  -771
  -903
  -1,046
  -1,201
  -1,367
  -1,542
  -1,729
  -1,925
  -2,131
  -2,347
  -2,573
  -2,809
  -3,054
  -3,309
  -3,575
  -3,851
  -4,138
  -4,436
  -4,746
  -5,068
  -5,403
  -5,751
Tax expense, $m
  -40
  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
  6
  -117
  -162
  -216
  -281
  -356
  -442
  -540
  -650
  -771
  -903
  -1,046
  -1,201
  -1,367
  -1,542
  -1,729
  -1,925
  -2,131
  -2,347
  -2,573
  -2,809
  -3,054
  -3,309
  -3,575
  -3,851
  -4,138
  -4,436
  -4,746
  -5,068
  -5,403
  -5,751

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  108
  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
  4,572
  5,887
  7,681
  9,826
  12,345
  15,254
  18,566
  22,286
  26,417
  30,956
  35,898
  41,235
  46,959
  53,061
  59,531
  66,361
  73,546
  81,080
  88,961
  97,187
  105,762
  114,689
  123,975
  133,629
  143,662
  154,088
  164,923
  176,185
  187,894
  200,071
  212,741
Adjusted assets (=assets-cash), $m
  4,464
  5,887
  7,681
  9,826
  12,345
  15,254
  18,566
  22,286
  26,417
  30,956
  35,898
  41,235
  46,959
  53,061
  59,531
  66,361
  73,546
  81,080
  88,961
  97,187
  105,762
  114,689
  123,975
  133,629
  143,662
  154,088
  164,923
  176,185
  187,894
  200,071
  212,741
Revenue / Adjusted assets
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
  0.012
Average production assets, $m
  299
  398
  519
  664
  834
  1,031
  1,255
  1,506
  1,785
  2,092
  2,426
  2,787
  3,174
  3,586
  4,023
  4,485
  4,971
  5,480
  6,012
  6,568
  7,148
  7,751
  8,379
  9,031
  9,709
  10,414
  11,146
  11,907
  12,699
  13,522
  14,378
Working capital, $m
  382
  35
  46
  59
  74
  92
  111
  134
  159
  186
  215
  247
  282
  318
  357
  398
  441
  486
  534
  583
  635
  688
  744
  802
  862
  925
  990
  1,057
  1,127
  1,200
  1,276
Total debt, $m
  1,207
  1,622
  2,278
  3,063
  3,985
  5,050
  6,262
  7,624
  9,136
  10,797
  12,606
  14,559
  16,654
  18,887
  21,255
  23,755
  26,385
  29,142
  32,027
  35,038
  38,176
  41,443
  44,842
  48,375
  52,047
  55,863
  59,829
  63,951
  68,236
  72,693
  77,330
Total liabilities, $m
  1,740
  2,155
  2,811
  3,596
  4,518
  5,583
  6,795
  8,157
  9,669
  11,330
  13,139
  15,092
  17,187
  19,420
  21,788
  24,288
  26,918
  29,675
  32,560
  35,571
  38,709
  41,976
  45,375
  48,908
  52,580
  56,396
  60,362
  64,484
  68,769
  73,226
  77,863
Total equity, $m
  2,832
  3,733
  4,870
  6,230
  7,827
  9,671
  11,771
  14,130
  16,749
  19,626
  22,760
  26,143
  29,772
  33,640
  37,742
  42,073
  46,628
  51,405
  56,401
  61,617
  67,053
  72,713
  78,600
  84,721
  91,082
  97,692
  104,561
  111,701
  119,124
  126,845
  134,878
Total liabilities and equity, $m
  4,572
  5,888
  7,681
  9,826
  12,345
  15,254
  18,566
  22,287
  26,418
  30,956
  35,899
  41,235
  46,959
  53,060
  59,530
  66,361
  73,546
  81,080
  88,961
  97,188
  105,762
  114,689
  123,975
  133,629
  143,662
  154,088
  164,923
  176,185
  187,893
  200,071
  212,741
Debt-to-equity ratio
  0.426
  0.430
  0.470
  0.490
  0.510
  0.520
  0.530
  0.540
  0.550
  0.550
  0.550
  0.560
  0.560
  0.560
  0.560
  0.560
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
  0.570
Adjusted equity ratio
  0.610
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634
  0.634

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  6
  -117
  -162
  -216
  -281
  -356
  -442
  -540
  -650
  -771
  -903
  -1,046
  -1,201
  -1,367
  -1,542
  -1,729
  -1,925
  -2,131
  -2,347
  -2,573
  -2,809
  -3,054
  -3,309
  -3,575
  -3,851
  -4,138
  -4,436
  -4,746
  -5,068
  -5,403
  -5,751
Depreciation, amort., depletion, $m
  19
  25
  33
  42
  53
  66
  80
  96
  114
  133
  155
  178
  202
  228
  256
  286
  317
  349
  383
  418
  455
  494
  534
  575
  618
  663
  710
  758
  809
  861
  916
Funds from operations, $m
  286
  -92
  -128
  -174
  -227
  -290
  -362
  -444
  -536
  -637
  -748
  -869
  -999
  -1,138
  -1,286
  -1,443
  -1,608
  -1,782
  -1,964
  -2,155
  -2,353
  -2,560
  -2,776
  -3,000
  -3,233
  -3,475
  -3,726
  -3,987
  -4,259
  -4,542
  -4,835
Change in working capital, $m
  9
  9
  11
  13
  15
  17
  20
  22
  25
  27
  30
  32
  34
  37
  39
  41
  43
  45
  47
  49
  51
  54
  56
  58
  60
  63
  65
  68
  70
  73
  76
Cash from operations, $m
  277
  -101
  -139
  -187
  -243
  -308
  -382
  -467
  -561
  -665
  -778
  -901
  -1,033
  -1,175
  -1,325
  -1,484
  -1,651
  -1,827
  -2,012
  -2,204
  -2,405
  -2,614
  -2,831
  -3,058
  -3,293
  -3,537
  -3,791
  -4,055
  -4,329
  -4,615
  -4,911
Maintenance CAPEX, $m
  0
  -19
  -25
  -33
  -42
  -53
  -66
  -80
  -96
  -114
  -133
  -155
  -178
  -202
  -228
  -256
  -286
  -317
  -349
  -383
  -418
  -455
  -494
  -534
  -575
  -618
  -663
  -710
  -758
  -809
  -861
New CAPEX, $m
  -69
  -99
  -121
  -145
  -170
  -197
  -224
  -251
  -279
  -307
  -334
  -361
  -387
  -412
  -437
  -462
  -486
  -509
  -533
  -556
  -580
  -603
  -628
  -652
  -678
  -705
  -732
  -761
  -791
  -823
  -856
Cash from investing activities, $m
  -305
  -118
  -146
  -178
  -212
  -250
  -290
  -331
  -375
  -421
  -467
  -516
  -565
  -614
  -665
  -718
  -772
  -826
  -882
  -939
  -998
  -1,058
  -1,122
  -1,186
  -1,253
  -1,323
  -1,395
  -1,471
  -1,549
  -1,632
  -1,717
Free cash flow, $m
  -28
  -219
  -286
  -365
  -455
  -557
  -672
  -798
  -936
  -1,085
  -1,245
  -1,416
  -1,598
  -1,789
  -1,991
  -2,202
  -2,423
  -2,653
  -2,893
  -3,143
  -3,403
  -3,672
  -3,953
  -4,244
  -4,546
  -4,860
  -5,187
  -5,526
  -5,879
  -6,247
  -6,629
Issuance/(repayment) of debt, $m
  282
  523
  657
  785
  922
  1,065
  1,212
  1,362
  1,512
  1,661
  1,809
  1,953
  2,095
  2,233
  2,368
  2,500
  2,630
  2,757
  2,884
  3,011
  3,138
  3,267
  3,399
  3,533
  3,672
  3,816
  3,966
  4,122
  4,285
  4,457
  4,637
Issuance/(repurchase) of shares, $m
  0
  1,018
  1,299
  1,576
  1,877
  2,200
  2,542
  2,899
  3,269
  3,648
  4,036
  4,430
  4,830
  5,235
  5,644
  6,059
  6,480
  6,908
  7,344
  7,789
  8,245
  8,714
  9,197
  9,695
  10,212
  10,748
  11,305
  11,886
  12,491
  13,123
  13,784
Cash from financing (excl. dividends), $m  
  313
  1,541
  1,956
  2,361
  2,799
  3,265
  3,754
  4,261
  4,781
  5,309
  5,845
  6,383
  6,925
  7,468
  8,012
  8,559
  9,110
  9,665
  10,228
  10,800
  11,383
  11,981
  12,596
  13,228
  13,884
  14,564
  15,271
  16,008
  16,776
  17,580
  18,421
Total cash flow (excl. dividends), $m
  286
  1,322
  1,670
  1,996
  2,344
  2,708
  3,082
  3,463
  3,845
  4,225
  4,600
  4,967
  5,327
  5,679
  6,022
  6,357
  6,687
  7,012
  7,335
  7,657
  7,981
  8,309
  8,643
  8,985
  9,338
  9,704
  10,084
  10,482
  10,897
  11,334
  11,793
Retained Cash Flow (-), $m
  255
  -1,018
  -1,299
  -1,576
  -1,877
  -2,200
  -2,542
  -2,899
  -3,269
  -3,648
  -4,036
  -4,430
  -4,830
  -5,235
  -5,644
  -6,059
  -6,480
  -6,908
  -7,344
  -7,789
  -8,245
  -8,714
  -9,197
  -9,695
  -10,212
  -10,748
  -11,305
  -11,886
  -12,491
  -13,123
  -13,784
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
 
  304
  371
  420
  467
  507
  540
  564
  576
  576
  563
  537
  497
  444
  377
  298
  207
  104
  -9
  -132
  -264
  -405
  -554
  -710
  -874
  -1,044
  -1,221
  -1,404
  -1,594
  -1,790
  -1,992
Discount rate, %
 
  6.10
  6.41
  6.73
  7.06
  7.41
  7.79
  8.17
  8.58
  9.01
  9.46
  9.94
  10.43
  10.95
  11.50
  12.08
  12.68
  13.32
  13.98
  14.68
  15.41
  16.19
  16.99
  17.84
  18.74
  19.67
  20.66
  21.69
  22.77
  23.91
  25.11
PV of cash for distribution, $m
 
  286
  327
  346
  355
  355
  345
  325
  298
  265
  228
  189
  151
  115
  82
  54
  31
  12
  -1
  -10
  -15
  -17
  -18
  -16
  -14
  -12
  -9
  -7
  -5
  -4
  -2
Current shareholders' claim on cash, %
  100
  85.1
  72.7
  62.8
  54.8
  48.2
  42.7
  38.1
  34.3
  31.0
  28.2
  25.7
  23.6
  21.7
  20.1
  18.6
  17.3
  16.2
  15.1
  14.2
  13.3
  12.5
  11.8
  11.1
  10.5
  9.9
  9.4
  8.9
  8.4
  8.0
  7.6

Veresen Inc is a Canada-based energy infrastructure company that owns and operates energy infrastructure assets across North America. The Company is engaged in three principal businesses: a pipeline transportation business consists of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System (AEGS); a midstream business, which includes a partnership interest in Veresen Midstream Limited Partnership, which owns assets in western Canada, and an ownership interest in Aux Sable, which owns a natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure, and a power business consists of a portfolio of assets in Canada. The Company's segments include Pipelines, Midstream, Power and Corporate. Alliance Pipeline owns and manages an integrated, high-pressure natural gas and NGL pipeline. Ruby Pipeline is a natural gas transmission system. AEGS is an integrated pipeline system.

FINANCIAL RATIOS  of  Veresen Inc. (VSN)

Valuation Ratios
P/E Ratio 968.7
Price to Sales 109.7
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 21
Price to Free Cash Flow 27.9
Growth Rates
Sales Growth Rate -41.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 19%
Cap. Spend. - 3 Yr. Gr. Rate 8.4%
Financial Strength
Quick Ratio 0
Current Ratio 1.3
LT Debt to Equity 31.9%
Total Debt to Equity 42.6%
Interest Coverage 0
Management Effectiveness
Return On Assets -0.2%
Ret/ On Assets - 3 Yr. Avg. 1.9%
Return On Total Capital 0.1%
Ret/ On T. Cap. - 3 Yr. Avg. 1.4%
Return On Equity 0.2%
Return On Equity - 3 Yr. Avg. 2.3%
Asset Turnover 0
Profitability Ratios
Gross Margin 54.7%
Gross Margin - 3 Yr. Avg. 55.1%
EBITDA Margin 69.8%
EBITDA Margin - 3 Yr. Avg. 129%
Operating Margin -500%
Oper. Margin - 3 Yr. Avg. -203.3%
Pre-Tax Margin -58.5%
Pre-Tax Margin - 3 Yr. Avg. 29%
Net Profit Margin 11.3%
Net Profit Margin - 3 Yr. Avg. 42.2%
Effective Tax Rate 129%
Eff/ Tax Rate - 3 Yr. Avg. 56.3%
Payout Ratio 3433.3%

VSN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the VSN stock intrinsic value calculation we used $53 million for the last fiscal year's total revenue generated by Veresen Inc.. The default revenue input number comes from 2016 income statement of Veresen Inc.. 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 VSN stock valuation model: a) initial revenue growth rate of 33.3% 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 6.1%, whose default value for VSN is calculated based on our internal credit rating of Veresen Inc., 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 Veresen Inc..
    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 VSN stock the variable cost ratio is equal to 194.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for VSN 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 4.6% for Veresen Inc..

Corporate tax rate of 27% is the nominal tax rate for Veresen Inc.. 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 VSN 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 VSN are equal to 563.2%.

Life of production assets of 15.7 years is the average useful life of capital assets used in Veresen Inc. 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 VSN is equal to 50%. 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 - $2832 million for Veresen Inc. - 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 313.827 million for Veresen Inc. 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 Veresen Inc. at the current share price and the inputted number of shares is $5.8 billion.

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Financial statements of VSN
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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