Intrinsic value of NuVista Energy Ltd. - NVA

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$6.51

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$6.51

 
Intrinsic value

$1.09

 
Up/down potential

-83%

 
Rating

str. sell

 
Value-price divergence* premium content

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

We calculate the intrinsic value of NVA 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 1.1

 

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, %
  16.44
  37.00
  33.80
  30.92
  28.33
  26.00
  23.90
  22.01
  20.31
  18.77
  17.40
  16.16
  15.04
  14.04
  13.13
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
Revenue, $m
  255
  349
  467
  612
  785
  989
  1,226
  1,496
  1,799
  2,137
  2,509
  2,914
  3,353
  3,823
  4,326
  4,859
  5,422
  6,014
  6,636
  7,286
  7,966
  8,674
  9,411
  10,178
  10,976
  11,805
  12,666
  13,562
  14,492
  15,459
  16,465
Variable operating expenses, $m
 
  633
  847
  1,109
  1,423
  1,793
  2,221
  2,710
  3,260
  3,873
  4,546
  5,281
  6,075
  6,928
  7,838
  8,804
  9,824
  10,898
  12,024
  13,203
  14,434
  15,717
  17,053
  18,443
  19,888
  21,391
  22,951
  24,574
  26,260
  28,012
  29,835
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
  241
  633
  847
  1,109
  1,423
  1,793
  2,221
  2,710
  3,260
  3,873
  4,546
  5,281
  6,075
  6,928
  7,838
  8,804
  9,824
  10,898
  12,024
  13,203
  14,434
  15,717
  17,053
  18,443
  19,888
  21,391
  22,951
  24,574
  26,260
  28,012
  29,835
Operating income, $m
  15
  -284
  -380
  -497
  -638
  -803
  -995
  -1,214
  -1,461
  -1,735
  -2,037
  -2,367
  -2,722
  -3,105
  -3,512
  -3,945
  -4,402
  -4,884
  -5,388
  -5,917
  -6,468
  -7,043
  -7,642
  -8,265
  -8,912
  -9,586
  -10,285
  -11,012
  -11,768
  -12,553
  -13,370
EBITDA, $m
  116
  -146
  -195
  -255
  -327
  -413
  -511
  -624
  -750
  -891
  -1,046
  -1,215
  -1,398
  -1,594
  -1,804
  -2,026
  -2,261
  -2,508
  -2,767
  -3,038
  -3,322
  -3,617
  -3,924
  -4,244
  -4,577
  -4,923
  -5,282
  -5,655
  -6,043
  -6,447
  -6,866
Interest expense (income), $m
  9
  5
  10
  16
  24
  33
  45
  57
  72
  89
  107
  127
  149
  173
  199
  226
  255
  286
  318
  352
  388
  425
  463
  504
  545
  589
  634
  681
  730
  780
  833
Earnings before tax, $m
  -3
  -288
  -389
  -513
  -662
  -837
  -1,040
  -1,272
  -1,533
  -1,824
  -2,144
  -2,494
  -2,872
  -3,278
  -3,711
  -4,172
  -4,658
  -5,170
  -5,707
  -6,269
  -6,856
  -7,468
  -8,105
  -8,768
  -9,458
  -10,174
  -10,919
  -11,693
  -12,497
  -13,333
  -14,203
Tax expense, $m
  -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
Net income, $m
  -2
  -288
  -389
  -513
  -662
  -837
  -1,040
  -1,272
  -1,533
  -1,824
  -2,144
  -2,494
  -2,872
  -3,278
  -3,711
  -4,172
  -4,658
  -5,170
  -5,707
  -6,269
  -6,856
  -7,468
  -8,105
  -8,768
  -9,458
  -10,174
  -10,919
  -11,693
  -12,497
  -13,333
  -14,203

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  5
  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
  961
  1,308
  1,751
  2,292
  2,941
  3,706
  4,591
  5,602
  6,739
  8,005
  9,397
  10,915
  12,557
  14,320
  16,201
  18,197
  20,306
  22,525
  24,853
  27,290
  29,834
  32,486
  35,248
  38,121
  41,109
  44,213
  47,440
  50,792
  54,277
  57,900
  61,668
Adjusted assets (=assets-cash), $m
  956
  1,308
  1,751
  2,292
  2,941
  3,706
  4,591
  5,602
  6,739
  8,005
  9,397
  10,915
  12,557
  14,320
  16,201
  18,197
  20,306
  22,525
  24,853
  27,290
  29,834
  32,486
  35,248
  38,121
  41,109
  44,213
  47,440
  50,792
  54,277
  57,900
  61,668
Revenue / Adjusted assets
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
  0.267
Average production assets, $m
  846
  1,159
  1,551
  2,030
  2,606
  3,283
  4,068
  4,963
  5,970
  7,091
  8,325
  9,670
  11,125
  12,686
  14,352
  16,121
  17,989
  19,955
  22,018
  24,176
  26,430
  28,780
  31,227
  33,772
  36,418
  39,169
  42,027
  44,997
  48,085
  51,294
  54,632
Working capital, $m
  -33
  -52
  -70
  -91
  -117
  -147
  -183
  -223
  -268
  -318
  -374
  -434
  -500
  -570
  -645
  -724
  -808
  -896
  -989
  -1,086
  -1,187
  -1,292
  -1,402
  -1,517
  -1,635
  -1,759
  -1,887
  -2,021
  -2,159
  -2,303
  -2,453
Total debt, $m
  67
  142
  237
  352
  491
  655
  845
  1,061
  1,304
  1,575
  1,873
  2,198
  2,549
  2,927
  3,329
  3,756
  4,207
  4,682
  5,181
  5,702
  6,246
  6,814
  7,405
  8,020
  8,659
  9,324
  10,014
  10,732
  11,477
  12,253
  13,059
Total liabilities, $m
  205
  280
  375
  490
  629
  793
  983
  1,199
  1,442
  1,713
  2,011
  2,336
  2,687
  3,065
  3,467
  3,894
  4,345
  4,820
  5,319
  5,840
  6,384
  6,952
  7,543
  8,158
  8,797
  9,462
  10,152
  10,870
  11,615
  12,391
  13,197
Total equity, $m
  756
  1,028
  1,376
  1,801
  2,312
  2,913
  3,609
  4,403
  5,297
  6,292
  7,386
  8,580
  9,870
  11,256
  12,734
  14,303
  15,960
  17,705
  19,535
  21,450
  23,449
  25,534
  27,705
  29,963
  32,311
  34,752
  37,288
  39,923
  42,662
  45,509
  48,471
Total liabilities and equity, $m
  961
  1,308
  1,751
  2,291
  2,941
  3,706
  4,592
  5,602
  6,739
  8,005
  9,397
  10,916
  12,557
  14,321
  16,201
  18,197
  20,305
  22,525
  24,854
  27,290
  29,833
  32,486
  35,248
  38,121
  41,108
  44,214
  47,440
  50,793
  54,277
  57,900
  61,668
Debt-to-equity ratio
  0.089
  0.140
  0.170
  0.200
  0.210
  0.220
  0.230
  0.240
  0.250
  0.250
  0.250
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.260
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
  0.270
Adjusted equity ratio
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786
  0.786

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2
  -288
  -389
  -513
  -662
  -837
  -1,040
  -1,272
  -1,533
  -1,824
  -2,144
  -2,494
  -2,872
  -3,278
  -3,711
  -4,172
  -4,658
  -5,170
  -5,707
  -6,269
  -6,856
  -7,468
  -8,105
  -8,768
  -9,458
  -10,174
  -10,919
  -11,693
  -12,497
  -13,333
  -14,203
Depreciation, amort., depletion, $m
  101
  138
  185
  242
  310
  391
  484
  591
  711
  844
  991
  1,151
  1,324
  1,510
  1,709
  1,919
  2,142
  2,376
  2,621
  2,878
  3,146
  3,426
  3,717
  4,020
  4,336
  4,663
  5,003
  5,357
  5,724
  6,106
  6,504
Funds from operations, $m
  126
  -150
  -205
  -271
  -351
  -446
  -556
  -681
  -822
  -980
  -1,153
  -1,343
  -1,548
  -1,768
  -2,003
  -2,252
  -2,516
  -2,794
  -3,086
  -3,391
  -3,709
  -4,042
  -4,388
  -4,748
  -5,122
  -5,511
  -5,916
  -6,336
  -6,773
  -7,227
  -7,699
Change in working capital, $m
  -1
  -14
  -18
  -22
  -26
  -30
  -35
  -40
  -45
  -50
  -55
  -60
  -65
  -70
  -75
  -79
  -84
  -88
  -93
  -97
  -101
  -106
  -110
  -114
  -119
  -124
  -128
  -133
  -139
  -144
  -150
Cash from operations, $m
  127
  -133
  -187
  -250
  -326
  -416
  -521
  -641
  -777
  -930
  -1,098
  -1,282
  -1,482
  -1,698
  -1,928
  -2,173
  -2,432
  -2,706
  -2,993
  -3,294
  -3,608
  -3,936
  -4,278
  -4,634
  -5,003
  -5,388
  -5,788
  -6,203
  -6,634
  -7,083
  -7,549
Maintenance CAPEX, $m
  0
  -101
  -138
  -185
  -242
  -310
  -391
  -484
  -591
  -711
  -844
  -991
  -1,151
  -1,324
  -1,510
  -1,709
  -1,919
  -2,142
  -2,376
  -2,621
  -2,878
  -3,146
  -3,426
  -3,717
  -4,020
  -4,336
  -4,663
  -5,003
  -5,357
  -5,724
  -6,106
New CAPEX, $m
  -192
  -313
  -392
  -480
  -575
  -677
  -785
  -895
  -1,008
  -1,121
  -1,234
  -1,345
  -1,455
  -1,562
  -1,666
  -1,768
  -1,868
  -1,966
  -2,063
  -2,158
  -2,254
  -2,350
  -2,447
  -2,545
  -2,646
  -2,751
  -2,858
  -2,970
  -3,087
  -3,210
  -3,338
Cash from investing activities, $m
  -117
  -414
  -530
  -665
  -817
  -987
  -1,176
  -1,379
  -1,599
  -1,832
  -2,078
  -2,336
  -2,606
  -2,886
  -3,176
  -3,477
  -3,787
  -4,108
  -4,439
  -4,779
  -5,132
  -5,496
  -5,873
  -6,262
  -6,666
  -7,087
  -7,521
  -7,973
  -8,444
  -8,934
  -9,444
Free cash flow, $m
  10
  -547
  -717
  -914
  -1,143
  -1,403
  -1,696
  -2,020
  -2,376
  -2,761
  -3,176
  -3,618
  -4,088
  -4,584
  -5,104
  -5,650
  -6,220
  -6,813
  -7,431
  -8,073
  -8,740
  -9,432
  -10,151
  -10,896
  -11,670
  -12,474
  -13,309
  -14,176
  -15,078
  -16,017
  -16,994
Issuance/(repayment) of debt, $m
  -130
  75
  95
  116
  139
  164
  190
  216
  243
  271
  298
  325
  351
  377
  402
  427
  451
  475
  498
  521
  544
  568
  591
  615
  639
  664
  690
  718
  746
  775
  806
Issuance/(repurchase) of shares, $m
  125
  744
  970
  1,224
  1,514
  1,840
  2,202
  2,598
  3,026
  3,485
  3,972
  4,487
  5,027
  5,592
  6,180
  6,792
  7,426
  8,083
  8,763
  9,467
  10,195
  10,950
  11,731
  12,540
  13,379
  14,250
  15,154
  16,094
  17,072
  18,089
  19,149
Cash from financing (excl. dividends), $m  
  -5
  819
  1,065
  1,340
  1,653
  2,004
  2,392
  2,814
  3,269
  3,756
  4,270
  4,812
  5,378
  5,969
  6,582
  7,219
  7,877
  8,558
  9,261
  9,988
  10,739
  11,518
  12,322
  13,155
  14,018
  14,914
  15,844
  16,812
  17,818
  18,864
  19,955
Total cash flow (excl. dividends), $m
  5
  -472
  -622
  -798
  -1,004
  -1,240
  -1,506
  -1,804
  -2,132
  -2,490
  -2,878
  -3,294
  -3,737
  -4,206
  -4,702
  -5,223
  -5,768
  -6,338
  -6,933
  -7,552
  -8,196
  -8,865
  -9,560
  -10,282
  -11,031
  -11,810
  -12,618
  -13,459
  -14,333
  -15,241
  -16,187
Retained Cash Flow (-), $m
  -126
  -277
  -348
  -425
  -510
  -601
  -696
  -794
  -894
  -995
  -1,095
  -1,193
  -1,291
  -1,386
  -1,478
  -1,569
  -1,657
  -1,744
  -1,830
  -1,915
  -2,000
  -2,085
  -2,171
  -2,258
  -2,348
  -2,440
  -2,536
  -2,635
  -2,739
  -2,848
  -2,961
Prev. year cash balance distribution, $m
 
  5
  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
 
  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
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
 
  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
Current shareholders' claim on cash, %
  100
  60.1
  36.8
  23.0
  14.7
  9.6
  6.4
  4.3
  2.9
  2.0
  1.4
  1.0
  0.7
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

NuVista Energy Ltd., an oil and natural gas company, explores, develops, and produces oil and natural gas reserves in Canada. It primarily focuses on the condensate-rich Montney formation in the Wapiti area of the Alberta Deep Basin. NuVista Energy Ltd. was founded in 2003 and is headquartered in Calgary, Canada.

FINANCIAL RATIOS  of  NuVista Energy Ltd. (NVA)

Valuation Ratios
P/E Ratio -562.3
Price to Sales 4.4
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 8.9
Price to Free Cash Flow -17.3
Growth Rates
Sales Growth Rate 16.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -31.4%
Cap. Spend. - 3 Yr. Gr. Rate -3.3%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 8.9%
Total Debt to Equity 8.9%
Interest Coverage 1
Management Effectiveness
Return On Assets 0.4%
Ret/ On Assets - 3 Yr. Avg. -7.2%
Return On Total Capital -0.2%
Ret/ On T. Cap. - 3 Yr. Avg. -9.4%
Return On Equity -0.3%
Return On Equity - 3 Yr. Avg. -11.7%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 63.1%
Gross Margin - 3 Yr. Avg. 62.4%
EBITDA Margin 42%
EBITDA Margin - 3 Yr. Avg. 38.3%
Operating Margin 5.5%
Oper. Margin - 3 Yr. Avg. -31.2%
Pre-Tax Margin -1.2%
Pre-Tax Margin - 3 Yr. Avg. -35.6%
Net Profit Margin -0.8%
Net Profit Margin - 3 Yr. Avg. -34.9%
Effective Tax Rate 33.3%
Eff/ Tax Rate - 3 Yr. Avg. 15.3%
Payout Ratio 0%

NVA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NVA stock intrinsic value calculation we used $255 million for the last fiscal year's total revenue generated by NuVista Energy Ltd.. The default revenue input number comes from 2016 income statement of NuVista Energy Ltd.. 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 NVA stock valuation model: a) initial revenue growth rate of 37% 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 NVA is calculated based on our internal credit rating of NuVista Energy Ltd., 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 NuVista Energy Ltd..
    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 NVA stock the variable cost ratio is equal to 181.2%.

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 NVA 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 6.8% for NuVista Energy Ltd..

Corporate tax rate of 27% is the nominal tax rate for NuVista Energy Ltd.. 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 NVA 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 NVA are equal to 331.8%.

Life of production assets of 8.4 years is the average useful life of capital assets used in NuVista Energy Ltd. 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 NVA is equal to -14.9%. 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 - $756 million for NuVista Energy Ltd. - 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 173.139 million for NuVista Energy Ltd. 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 NuVista Energy Ltd. at the current share price and the inputted number of shares is $1.1 billion.


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