Intrinsic value of Avangrid - AGR

Previous Close

$47.16

  Intrinsic Value

$46.23

stock screener

  Rating & Target

hold

-2%

  Value-price divergence*

0%

Previous close

$47.16

 
Intrinsic value

$46.23

 
Up/down potential

-2%

 
Rating

hold

 
Value-price divergence*

0%

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

We calculate the intrinsic value of AGR 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 14.7

 

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, %
  37.81
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
  5.08
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
Revenue, $m
  6,061
  6,337
  6,671
  7,021
  7,387
  7,771
  8,173
  8,595
  9,037
  9,501
  9,987
  10,496
  11,031
  11,592
  12,180
  12,798
  13,446
  14,125
  14,839
  15,587
  16,373
  17,198
  18,063
  18,972
  19,925
  20,926
  21,977
  23,080
  24,238
  25,454
  26,730
Variable operating expenses, $m
 
  3,710
  3,889
  4,076
  4,273
  4,478
  4,694
  4,920
  5,157
  5,406
  5,666
  5,627
  5,914
  6,214
  6,530
  6,861
  7,208
  7,572
  7,955
  8,356
  8,777
  9,219
  9,683
  10,171
  10,682
  11,218
  11,782
  12,373
  12,994
  13,646
  14,330
Fixed operating expenses, $m
 
  1,353
  1,387
  1,421
  1,457
  1,493
  1,531
  1,569
  1,608
  1,648
  1,690
  1,732
  1,775
  1,820
  1,865
  1,912
  1,960
  2,009
  2,059
  2,110
  2,163
  2,217
  2,272
  2,329
  2,388
  2,447
  2,508
  2,571
  2,635
  2,701
  2,769
Total operating expenses, $m
  4,824
  5,063
  5,276
  5,497
  5,730
  5,971
  6,225
  6,489
  6,765
  7,054
  7,356
  7,359
  7,689
  8,034
  8,395
  8,773
  9,168
  9,581
  10,014
  10,466
  10,940
  11,436
  11,955
  12,500
  13,070
  13,665
  14,290
  14,944
  15,629
  16,347
  17,099
Operating income, $m
  1,194
  1,274
  1,395
  1,523
  1,658
  1,799
  1,948
  2,106
  2,272
  2,447
  2,631
  3,137
  3,342
  3,558
  3,786
  4,025
  4,278
  4,544
  4,825
  5,121
  5,433
  5,761
  6,107
  6,472
  6,856
  7,261
  7,687
  8,136
  8,609
  9,107
  9,632
EBITDA, $m
  1,998
  1,587
  1,708
  1,835
  1,970
  2,112
  2,261
  2,418
  2,584
  2,759
  2,943
  3,137
  3,342
  3,558
  3,786
  4,025
  4,278
  4,544
  4,825
  5,121
  5,433
  5,761
  6,107
  6,472
  6,856
  7,261
  7,687
  8,136
  8,609
  9,107
  9,632
Interest expense (income), $m
  229
  226
  265
  306
  349
  394
  441
  490
  542
  597
  654
  713
  776
  842
  911
  983
  1,059
  1,139
  1,222
  1,310
  1,402
  1,499
  1,600
  1,707
  1,818
  1,936
  2,059
  2,188
  2,324
  2,466
  2,616
Earnings before tax, $m
  1,009
  1,048
  1,131
  1,217
  1,309
  1,405
  1,508
  1,615
  1,729
  1,850
  1,977
  2,424
  2,566
  2,716
  2,875
  3,042
  3,219
  3,406
  3,603
  3,811
  4,030
  4,262
  4,507
  4,765
  5,038
  5,325
  5,628
  5,948
  6,285
  6,641
  7,016
Tax expense, $m
  379
  283
  305
  329
  353
  379
  407
  436
  467
  499
  534
  654
  693
  733
  776
  821
  869
  919
  973
  1,029
  1,088
  1,151
  1,217
  1,287
  1,360
  1,438
  1,520
  1,606
  1,697
  1,793
  1,894
Net income, $m
  630
  765
  826
  889
  955
  1,026
  1,100
  1,179
  1,262
  1,350
  1,443
  1,770
  1,873
  1,983
  2,098
  2,221
  2,350
  2,486
  2,630
  2,782
  2,942
  3,111
  3,290
  3,479
  3,677
  3,887
  4,109
  4,342
  4,588
  4,848
  5,122

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  91
  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
  31,309
  32,834
  34,564
  36,377
  38,275
  40,264
  42,349
  44,533
  46,824
  49,226
  51,744
  54,386
  57,156
  60,062
  63,111
  66,310
  69,666
  73,189
  76,885
  80,763
  84,834
  89,107
  93,592
  98,299
  103,240
  108,427
  113,871
  119,587
  125,587
  131,886
  138,499
Adjusted assets (=assets-cash), $m
  31,218
  32,834
  34,564
  36,377
  38,275
  40,264
  42,349
  44,533
  46,824
  49,226
  51,744
  54,386
  57,156
  60,062
  63,111
  66,310
  69,666
  73,189
  76,885
  80,763
  84,834
  89,107
  93,592
  98,299
  103,240
  108,427
  113,871
  119,587
  125,587
  131,886
  138,499
Revenue / Adjusted assets
  0.194
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
  0.193
Average production assets, $m
  -4,728
  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
Working capital, $m
  -460
  -51
  -53
  -56
  -59
  -62
  -65
  -69
  -72
  -76
  -80
  -84
  -88
  -93
  -97
  -102
  -108
  -113
  -119
  -125
  -131
  -138
  -145
  -152
  -159
  -167
  -176
  -185
  -194
  -204
  -214
Total debt, $m
  5,010
  5,752
  6,645
  7,580
  8,560
  9,586
  10,662
  11,789
  12,971
  14,210
  15,510
  16,873
  18,302
  19,802
  21,375
  23,026
  24,758
  26,575
  28,482
  30,484
  32,585
  34,789
  37,103
  39,532
  42,082
  44,758
  47,568
  50,517
  53,613
  56,863
  60,276
Total liabilities, $m
  16,200
  16,942
  17,835
  18,770
  19,750
  20,776
  21,852
  22,979
  24,161
  25,400
  26,700
  28,063
  29,492
  30,992
  32,565
  34,216
  35,948
  37,765
  39,672
  41,674
  43,775
  45,979
  48,293
  50,722
  53,272
  55,948
  58,758
  61,707
  64,803
  68,053
  71,466
Total equity, $m
  15,109
  15,892
  16,729
  17,606
  18,525
  19,488
  20,497
  21,554
  22,663
  23,825
  25,044
  26,323
  27,664
  29,070
  30,546
  32,094
  33,719
  35,423
  37,212
  39,089
  41,060
  43,128
  45,298
  47,577
  49,968
  52,478
  55,114
  57,880
  60,784
  63,833
  67,034
Total liabilities and equity, $m
  31,309
  32,834
  34,564
  36,376
  38,275
  40,264
  42,349
  44,533
  46,824
  49,225
  51,744
  54,386
  57,156
  60,062
  63,111
  66,310
  69,667
  73,188
  76,884
  80,763
  84,835
  89,107
  93,591
  98,299
  103,240
  108,426
  113,872
  119,587
  125,587
  131,886
  138,500
Debt-to-equity ratio
  0.332
  0.360
  0.400
  0.430
  0.460
  0.490
  0.520
  0.550
  0.570
  0.600
  0.620
  0.640
  0.660
  0.680
  0.700
  0.720
  0.730
  0.750
  0.770
  0.780
  0.790
  0.810
  0.820
  0.830
  0.840
  0.850
  0.860
  0.870
  0.880
  0.890
  0.900
Adjusted equity ratio
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484
  0.484

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  630
  765
  826
  889
  955
  1,026
  1,100
  1,179
  1,262
  1,350
  1,443
  1,770
  1,873
  1,983
  2,098
  2,221
  2,350
  2,486
  2,630
  2,782
  2,942
  3,111
  3,290
  3,479
  3,677
  3,887
  4,109
  4,342
  4,588
  4,848
  5,122
Depreciation, amort., depletion, $m
  804
  312
  312
  312
  312
  312
  312
  312
  312
  312
  312
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Funds from operations, $m
  1,209
  1,078
  1,138
  1,201
  1,268
  1,338
  1,413
  1,492
  1,575
  1,663
  1,756
  1,770
  1,873
  1,983
  2,098
  2,221
  2,350
  2,486
  2,630
  2,782
  2,942
  3,111
  3,290
  3,479
  3,677
  3,887
  4,109
  4,342
  4,588
  4,848
  5,122
Change in working capital, $m
  -352
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -10
  -10
Cash from operations, $m
  1,561
  1,080
  1,141
  1,204
  1,271
  1,341
  1,416
  1,495
  1,578
  1,666
  1,760
  1,774
  1,877
  1,987
  2,103
  2,226
  2,355
  2,491
  2,636
  2,788
  2,948
  3,118
  3,297
  3,486
  3,685
  3,895
  4,117
  4,351
  4,598
  4,858
  5,132
Maintenance CAPEX, $m
  0
  473
  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
New CAPEX, $m
  -1,707
  -4,728
  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 investing activities, $m
  -1,527
  -4,255
  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
Free cash flow, $m
  34
  -3,175
  1,141
  1,204
  1,271
  1,341
  1,416
  1,495
  1,578
  1,666
  1,760
  1,774
  1,877
  1,987
  2,103
  2,226
  2,355
  2,491
  2,636
  2,788
  2,948
  3,118
  3,297
  3,486
  3,685
  3,895
  4,117
  4,351
  4,598
  4,858
  5,132
Issuance/(repayment) of debt, $m
  124
  833
  893
  935
  980
  1,026
  1,076
  1,127
  1,182
  1,239
  1,300
  1,363
  1,430
  1,500
  1,573
  1,651
  1,732
  1,817
  1,907
  2,001
  2,101
  2,205
  2,314
  2,429
  2,550
  2,676
  2,809
  2,949
  3,096
  3,250
  3,412
Issuance/(repurchase) of shares, $m
  -7
  18
  12
  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  
  29
  851
  905
  935
  980
  1,026
  1,076
  1,127
  1,182
  1,239
  1,300
  1,363
  1,430
  1,500
  1,573
  1,651
  1,732
  1,817
  1,907
  2,001
  2,101
  2,205
  2,314
  2,429
  2,550
  2,676
  2,809
  2,949
  3,096
  3,250
  3,412
Total cash flow (excl. dividends), $m
  63
  -2,324
  2,045
  2,139
  2,250
  2,368
  2,492
  2,622
  2,760
  2,906
  3,059
  3,137
  3,307
  3,487
  3,676
  3,876
  4,087
  4,309
  4,543
  4,789
  5,049
  5,323
  5,611
  5,915
  6,235
  6,572
  6,926
  7,300
  7,694
  8,108
  8,544
Retained Cash Flow (-), $m
  -56
  -783
  -837
  -877
  -919
  -963
  -1,009
  -1,058
  -1,109
  -1,162
  -1,219
  -1,278
  -1,341
  -1,407
  -1,476
  -1,548
  -1,625
  -1,705
  -1,789
  -1,877
  -1,970
  -2,068
  -2,171
  -2,278
  -2,391
  -2,510
  -2,635
  -2,766
  -2,904
  -3,049
  -3,201
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
 
  -783
  1,208
  1,262
  1,332
  1,405
  1,483
  1,565
  1,652
  1,743
  1,840
  1,858
  1,966
  2,080
  2,201
  2,328
  2,462
  2,604
  2,754
  2,912
  3,079
  3,255
  3,440
  3,636
  3,843
  4,061
  4,291
  4,534
  4,790
  5,059
  5,343
Discount rate, %
 
  5.10
  5.36
  5.62
  5.90
  6.20
  6.51
  6.83
  7.18
  7.54
  7.91
  8.31
  8.72
  9.16
  9.62
  10.10
  10.60
  11.13
  11.69
  12.27
  12.89
  13.53
  14.21
  14.92
  15.66
  16.45
  17.27
  18.13
  19.04
  19.99
  20.99
PV of cash for distribution, $m
 
  -745
  1,088
  1,071
  1,059
  1,040
  1,016
  985
  949
  907
  859
  772
  721
  666
  609
  550
  491
  433
  376
  323
  273
  226
  185
  148
  117
  90
  68
  50
  36
  26
  18
Current shareholders' claim on cash, %
  100
  99.9
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8

Avangrid, Inc. operates as an energy services holding company in the United States. It engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. As of December 31, 2015, the company delivered electricity to approximately 2.2 million electric utility customers, as well as natural gas to approximately 984,000 natural gas public utility customers; and owned approximately 67.5 billion cubic feet of net working gas storage capacity. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. It also generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. The company was formerly known as Iberdrola USA, Inc. Avangrid, Inc. was founded in 1852 and is headquartered in New Gloucester, Maine. Avangrid, Inc. operates as a subsidiary of Iberdrola, S.A.

FINANCIAL RATIOS  of  Avangrid (AGR)

Valuation Ratios
P/E Ratio 23.1
Price to Sales 2.4
Price to Book 1
Price to Tangible Book
Price to Cash Flow 9.3
Price to Free Cash Flow -99.8
Growth Rates
Sales Growth Rate 37.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 57.8%
Cap. Spend. - 3 Yr. Gr. Rate 12.6%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 29.8%
Total Debt to Equity 33.2%
Interest Coverage 5
Management Effectiveness
Return On Assets 2.5%
Ret/ On Assets - 3 Yr. Avg. 2%
Return On Total Capital 3.1%
Ret/ On T. Cap. - 3 Yr. Avg. 2.5%
Return On Equity 4.2%
Return On Equity - 3 Yr. Avg. 3.2%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 33.9%
EBITDA Margin - 3 Yr. Avg. 30.6%
Operating Margin 19.8%
Oper. Margin - 3 Yr. Avg. 17%
Pre-Tax Margin 16.8%
Pre-Tax Margin - 3 Yr. Avg. 13%
Net Profit Margin 10.5%
Net Profit Margin - 3 Yr. Avg. 8.6%
Effective Tax Rate 37.6%
Eff/ Tax Rate - 3 Yr. Avg. 29.6%
Payout Ratio 63.7%

AGR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AGR stock intrinsic value calculation we used $6018 million for the last fiscal year's total revenue generated by Avangrid. The default revenue input number comes from 2016 income statement of Avangrid. 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 AGR stock valuation model: a) initial revenue growth rate of 5.3% 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 5.1%, whose default value for AGR is calculated based on our internal credit rating of Avangrid, 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 Avangrid.
    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 AGR stock the variable cost ratio is equal to 58.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1320 million in the base year in the intrinsic value calculation for AGR 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 Avangrid.

Corporate tax rate of 27% is the nominal tax rate for Avangrid. 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 AGR 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 AGR are equal to 0%.

Life of production assets of 10 years is the average useful life of capital assets used in Avangrid 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 AGR is equal to -0.8%. 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 - $15109 million for Avangrid - 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 311.67 million for Avangrid 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 Avangrid at the current share price and the inputted number of shares is $14.7 billion.

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COMPANY NEWS

▶ Avangrid, Inc. Value Analysis (NYSE:AGR) : August 4, 2017   [Aug-03-17 09:47PM  Capital Cube]
▶ ETFs with exposure to Avangrid, Inc. : July 27, 2017   [Jul-27-17 02:08PM  Capital Cube]
▶ As wind moratorium awaits signature, Avangrid CEO touts Amazon success   [Jul-21-17 10:05AM  American City Business Journals]
▶ Avangrid beats 2Q profit forecasts   [Jul-19-17 09:01PM  Associated Press]
▶ ETFs with exposure to Avangrid, Inc. : July 17, 2017   [Jul-17-17 01:34PM  Capital Cube]
▶ Avangrid Declares Quarterly Dividend   [Jul-06-17 11:36AM  Business Wire]
▶ ETFs with exposure to Avangrid, Inc. : July 4, 2017   [Jul-04-17 02:26PM  Capital Cube]
▶ ETFs with exposure to Avangrid, Inc. : June 22, 2017   [Jun-22-17 03:16PM  Capital Cube]
▶ Apples Oregon wind farm eyes bigger, and fewer, turbines   [May-21-17 06:46PM  American City Business Journals]
▶ Avangrid CEO: Offshore in North Carolina coming 'well beyond 2020'   [Apr-25-17 12:55PM  American City Business Journals]
▶ Avangrid Renewables Leadership Change   [10:40AM  Business Wire]
▶ Avangrid beats 1Q profit forecasts   [07:10AM  Associated Press]
▶ Avangrid Declares Quarterly Dividend   [Apr-20-17 01:50PM  Business Wire]
▶ ETFs with exposure to Avangrid, Inc. : April 7, 2017   [Apr-07-17 03:43PM  Capital Cube]
▶ Details on Oregon-based energy company's 100-plus workers needed for NM wind farm   [Apr-05-17 04:55PM  American City Business Journals]
▶ Big wind development returning to Oregon with a mystery power buyer   [11:46AM  American City Business Journals]
▶ Avangrid Looks Vulnerable to Further Weakness   [Mar-09-17 03:15PM  TheStreet.com]
▶ Avangrid: Cramer's Top Takeaways   [06:22AM  TheStreet.com]
▶ AVANGRID Declares Quarterly Dividend   [Feb-16-17 01:38PM  Business Wire]
▶ AVANGRID Schedules 2017 Financial Update   [Feb-08-17 02:27PM  Business Wire]
▶ Hedge Funds Are Crazy About Avangrid Inc (AGR)   [Dec-14-16 02:19PM  at Insider Monkey]
▶ AVANGRID Declares Quarterly Dividend   [07:33AM  Business Wire]
Stock chart of AGR Financial statements of AGR
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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