Intrinsic value of Buckeye Partners - BPL

Previous Close

$67.15

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$67.15

 
Intrinsic value

$5.99

 
Up/down potential

-91%

 
Rating

str. sell

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of BPL 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 9.5

 

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, %
  -5.94
  10.00
  9.50
  9.05
  8.64
  8.28
  7.95
  7.66
  7.39
  7.15
  6.94
  6.74
  6.57
  6.41
  6.27
  6.14
  6.03
  5.93
  5.83
  5.75
  5.68
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
Revenue, $m
  3,248
  3,573
  3,912
  4,266
  4,635
  5,019
  5,418
  5,833
  6,264
  6,712
  7,178
  7,662
  8,165
  8,689
  9,233
  9,801
  10,392
  11,007
  11,650
  12,320
  13,019
  13,749
  14,511
  15,308
  16,142
  17,013
  17,925
  18,879
  19,878
  20,924
  22,019
Variable operating expenses, $m
 
  2,938
  3,207
  3,488
  3,781
  4,086
  4,403
  4,732
  5,075
  5,430
  5,800
  6,084
  6,483
  6,899
  7,332
  7,782
  8,252
  8,741
  9,250
  9,782
  10,338
  10,917
  11,523
  12,156
  12,817
  13,509
  14,233
  14,991
  15,784
  16,615
  17,485
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
  2,515
  2,938
  3,207
  3,488
  3,781
  4,086
  4,403
  4,732
  5,075
  5,430
  5,800
  6,084
  6,483
  6,899
  7,332
  7,782
  8,252
  8,741
  9,250
  9,782
  10,338
  10,917
  11,523
  12,156
  12,817
  13,509
  14,233
  14,991
  15,784
  16,615
  17,485
Operating income, $m
  733
  635
  705
  778
  854
  933
  1,015
  1,101
  1,190
  1,282
  1,378
  1,578
  1,682
  1,789
  1,902
  2,018
  2,140
  2,267
  2,399
  2,537
  2,681
  2,831
  2,989
  3,153
  3,324
  3,504
  3,692
  3,888
  4,094
  4,309
  4,535
EBITDA, $m
  988
  985
  1,079
  1,176
  1,278
  1,384
  1,494
  1,608
  1,727
  1,851
  1,979
  2,113
  2,251
  2,396
  2,546
  2,702
  2,865
  3,035
  3,212
  3,397
  3,590
  3,791
  4,001
  4,221
  4,451
  4,691
  4,943
  5,206
  5,481
  5,770
  6,072
Interest expense (income), $m
  175
  181
  203
  225
  249
  273
  298
  325
  352
  381
  411
  441
  474
  507
  542
  578
  615
  654
  695
  738
  782
  828
  877
  927
  980
  1,035
  1,093
  1,153
  1,217
  1,283
  1,352
Earnings before tax, $m
  550
  454
  503
  553
  605
  660
  717
  776
  837
  901
  967
  1,136
  1,208
  1,282
  1,360
  1,441
  1,525
  1,613
  1,704
  1,799
  1,899
  2,003
  2,112
  2,225
  2,344
  2,468
  2,599
  2,735
  2,877
  3,026
  3,183
Tax expense, $m
  1
  123
  136
  149
  163
  178
  194
  209
  226
  243
  261
  307
  326
  346
  367
  389
  412
  435
  460
  486
  513
  541
  570
  601
  633
  666
  702
  738
  777
  817
  859
Net income, $m
  536
  331
  367
  404
  442
  482
  523
  566
  611
  658
  706
  830
  882
  936
  993
  1,052
  1,113
  1,177
  1,244
  1,314
  1,386
  1,462
  1,542
  1,625
  1,711
  1,802
  1,897
  1,996
  2,100
  2,209
  2,323

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  640
  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
  9,421
  9,656
  10,574
  11,530
  12,527
  13,565
  14,643
  15,765
  16,930
  18,141
  19,399
  20,707
  22,068
  23,483
  24,955
  26,488
  28,085
  29,750
  31,486
  33,296
  35,186
  37,159
  39,220
  41,374
  43,626
  45,982
  48,446
  51,025
  53,724
  56,551
  59,512
Adjusted assets (=assets-cash), $m
  8,781
  9,656
  10,574
  11,530
  12,527
  13,565
  14,643
  15,765
  16,930
  18,141
  19,399
  20,707
  22,068
  23,483
  24,955
  26,488
  28,085
  29,750
  31,486
  33,296
  35,186
  37,159
  39,220
  41,374
  43,626
  45,982
  48,446
  51,025
  53,724
  56,551
  59,512
Revenue / Adjusted assets
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
Average production assets, $m
  6,800
  7,481
  8,192
  8,934
  9,706
  10,510
  11,345
  12,214
  13,117
  14,055
  15,030
  16,044
  17,098
  18,194
  19,335
  20,523
  21,760
  23,050
  24,394
  25,797
  27,261
  28,790
  30,387
  32,056
  33,801
  35,626
  37,535
  39,533
  41,624
  43,815
  46,108
Working capital, $m
  919
  307
  336
  367
  399
  432
  466
  502
  539
  577
  617
  659
  702
  747
  794
  843
  894
  947
  1,002
  1,059
  1,120
  1,182
  1,248
  1,317
  1,388
  1,463
  1,542
  1,624
  1,710
  1,799
  1,894
Total debt, $m
  4,218
  4,713
  5,236
  5,781
  6,350
  6,941
  7,556
  8,195
  8,859
  9,549
  10,267
  11,012
  11,788
  12,594
  13,433
  14,307
  15,218
  16,166
  17,156
  18,188
  19,265
  20,390
  21,565
  22,792
  24,076
  25,419
  26,823
  28,293
  29,832
  31,443
  33,131
Total liabilities, $m
  5,009
  5,504
  6,027
  6,572
  7,141
  7,732
  8,347
  8,986
  9,650
  10,340
  11,058
  11,803
  12,579
  13,385
  14,224
  15,098
  16,009
  16,957
  17,947
  18,979
  20,056
  21,181
  22,356
  23,583
  24,867
  26,210
  27,614
  29,084
  30,623
  32,234
  33,922
Total equity, $m
  4,412
  4,152
  4,547
  4,958
  5,387
  5,833
  6,297
  6,779
  7,280
  7,800
  8,342
  8,904
  9,489
  10,098
  10,731
  11,390
  12,077
  12,792
  13,539
  14,317
  15,130
  15,978
  16,865
  17,791
  18,759
  19,772
  20,832
  21,941
  23,101
  24,317
  25,590
Total liabilities and equity, $m
  9,421
  9,656
  10,574
  11,530
  12,528
  13,565
  14,644
  15,765
  16,930
  18,140
  19,400
  20,707
  22,068
  23,483
  24,955
  26,488
  28,086
  29,749
  31,486
  33,296
  35,186
  37,159
  39,221
  41,374
  43,626
  45,982
  48,446
  51,025
  53,724
  56,551
  59,512
Debt-to-equity ratio
  0.956
  1.140
  1.150
  1.170
  1.180
  1.190
  1.200
  1.210
  1.220
  1.220
  1.230
  1.240
  1.240
  1.250
  1.250
  1.260
  1.260
  1.260
  1.270
  1.270
  1.270
  1.280
  1.280
  1.280
  1.280
  1.290
  1.290
  1.290
  1.290
  1.290
  1.290
Adjusted equity ratio
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  536
  331
  367
  404
  442
  482
  523
  566
  611
  658
  706
  830
  882
  936
  993
  1,052
  1,113
  1,177
  1,244
  1,314
  1,386
  1,462
  1,542
  1,625
  1,711
  1,802
  1,897
  1,996
  2,100
  2,209
  2,323
Depreciation, amort., depletion, $m
  255
  350
  374
  398
  424
  451
  479
  508
  538
  569
  602
  535
  570
  606
  644
  684
  725
  768
  813
  860
  909
  960
  1,013
  1,069
  1,127
  1,188
  1,251
  1,318
  1,387
  1,460
  1,537
Funds from operations, $m
  491
  681
  740
  802
  866
  933
  1,002
  1,074
  1,149
  1,227
  1,307
  1,364
  1,452
  1,543
  1,637
  1,736
  1,838
  1,945
  2,057
  2,173
  2,295
  2,422
  2,554
  2,693
  2,838
  2,990
  3,148
  3,314
  3,488
  3,670
  3,860
Change in working capital, $m
  -227
  28
  29
  30
  32
  33
  34
  36
  37
  39
  40
  42
  43
  45
  47
  49
  51
  53
  55
  58
  60
  63
  66
  69
  72
  75
  78
  82
  86
  90
  94
Cash from operations, $m
  718
  760
  711
  771
  834
  900
  968
  1,038
  1,112
  1,188
  1,267
  1,323
  1,408
  1,498
  1,590
  1,687
  1,788
  1,893
  2,002
  2,116
  2,235
  2,359
  2,489
  2,625
  2,766
  2,915
  3,070
  3,232
  3,402
  3,580
  3,766
Maintenance CAPEX, $m
  0
  -227
  -249
  -273
  -298
  -324
  -350
  -378
  -407
  -437
  -469
  -501
  -535
  -570
  -606
  -644
  -684
  -725
  -768
  -813
  -860
  -909
  -960
  -1,013
  -1,069
  -1,127
  -1,188
  -1,251
  -1,318
  -1,387
  -1,460
New CAPEX, $m
  -486
  -681
  -711
  -741
  -772
  -804
  -836
  -869
  -903
  -938
  -975
  -1,014
  -1,054
  -1,096
  -1,141
  -1,188
  -1,237
  -1,290
  -1,345
  -1,403
  -1,464
  -1,529
  -1,597
  -1,669
  -1,745
  -1,825
  -1,909
  -1,998
  -2,092
  -2,190
  -2,294
Cash from investing activities, $m
  -482
  -908
  -960
  -1,014
  -1,070
  -1,128
  -1,186
  -1,247
  -1,310
  -1,375
  -1,444
  -1,515
  -1,589
  -1,666
  -1,747
  -1,832
  -1,921
  -2,015
  -2,113
  -2,216
  -2,324
  -2,438
  -2,557
  -2,682
  -2,814
  -2,952
  -3,097
  -3,249
  -3,410
  -3,577
  -3,754
Free cash flow, $m
  236
  -148
  -249
  -243
  -236
  -228
  -218
  -209
  -198
  -187
  -176
  -192
  -180
  -169
  -157
  -145
  -134
  -122
  -111
  -100
  -89
  -78
  -68
  -57
  -47
  -37
  -27
  -17
  -7
  2
  12
Issuance/(repayment) of debt, $m
  375
  495
  523
  545
  568
  591
  615
  639
  664
  690
  717
  746
  775
  807
  839
  874
  910
  949
  989
  1,032
  1,077
  1,125
  1,175
  1,228
  1,284
  1,343
  1,405
  1,470
  1,539
  1,611
  1,688
Issuance/(repurchase) of shares, $m
  689
  0
  120
  109
  96
  82
  67
  52
  35
  18
  0
  9
  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  
  1,041
  495
  643
  654
  664
  673
  682
  691
  699
  708
  717
  755
  775
  807
  839
  874
  910
  949
  989
  1,032
  1,077
  1,125
  1,175
  1,228
  1,284
  1,343
  1,405
  1,470
  1,539
  1,611
  1,688
Total cash flow (excl. dividends), $m
  1,277
  347
  274
  302
  332
  364
  396
  431
  466
  503
  541
  554
  595
  638
  682
  729
  777
  826
  878
  932
  988
  1,046
  1,107
  1,171
  1,237
  1,306
  1,378
  1,453
  1,531
  1,613
  1,699
Retained Cash Flow (-), $m
  -677
  -380
  -394
  -411
  -429
  -446
  -464
  -482
  -501
  -521
  -541
  -563
  -585
  -608
  -633
  -659
  -687
  -716
  -746
  -779
  -813
  -848
  -886
  -926
  -968
  -1,013
  -1,060
  -1,109
  -1,161
  -1,216
  -1,273
Prev. year cash balance distribution, $m
 
  640
  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
 
  607
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  10
  30
  49
  69
  90
  111
  132
  153
  175
  198
  221
  244
  268
  293
  318
  344
  370
  398
  426
Discount rate, %
 
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
 
  568
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  3
  7
  9
  10
  11
  11
  10
  9
  7
  6
  5
  4
  3
  2
  1
  1
  1
  0
  0
Current shareholders' claim on cash, %
  100
  100.0
  98.7
  97.6
  96.7
  96.1
  95.5
  95.2
  95.0
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8
  94.8

Buckeye Partners, L.P. owns and operates liquid petroleum products pipeline systems in the United States. The company operates through three segments: Domestic Pipelines & Terminals, Global Marine Terminals, and Merchant Services. The Domestic Pipelines & Terminals segment transports liquid petroleum products, including gasoline, jet fuel, diesel fuel, heating oil, and kerosene; and refined petroleum products, such as propane and butane, refinery feedstock, and blending components, as well as crude oil. This segment owns and operates approximately 6,000 miles of pipeline located primarily in the northeastern and upper midwestern portions of the United States, and services 110 delivery locations; and 117 active terminals that provide bulk storage and throughput services with aggregate storage capacity of 55 million barrels. In addition, this segment provides turn-key operations and maintenance, asset development, and construction services for third-party pipeline and energy assets; operates and/or maintains third-party pipelines; and operates 2 underground propane storage caverns. The Global Marine Terminals segment provides marine accessible bulk storage and blending services, rail and truck rack loading/unloading, and petroleum processing services through 7 liquid petroleum product terminals located in The Bahamas, Puerto Rico, and St. Lucia in the Caribbean; and the New York Harbor and Corpus Christi, Texas in the United States. The Merchant Services segment is involved in the wholesale distribution of refined petroleum products, including gasoline, propane, natural gas liquids, ethanol, and biodiesel, as well as petroleum distillates, such as heating oil, diesel fuel, kerosene, and fuel oil. Buckeye GP LLC serves as the general partner of the company. Buckeye Partners, L.P. was founded in 1886 and is based in Houston, Texas.

FINANCIAL RATIOS  of  Buckeye Partners (BPL)

Valuation Ratios
P/E Ratio 17.6
Price to Sales 2.9
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 13.1
Price to Free Cash Flow 40.6
Growth Rates
Sales Growth Rate -5.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -18.3%
Cap. Spend. - 3 Yr. Gr. Rate 6.1%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 95.6%
Total Debt to Equity 95.6%
Interest Coverage 4
Management Effectiveness
Return On Assets 8%
Ret/ On Assets - 3 Yr. Avg. 7%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 13.2%
Return On Equity - 3 Yr. Avg. 11%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 54.1%
Gross Margin - 3 Yr. Avg. 39.4%
EBITDA Margin 30.2%
EBITDA Margin - 3 Yr. Avg. 21.4%
Operating Margin 22.6%
Oper. Margin - 3 Yr. Avg. 15.8%
Pre-Tax Margin 16.9%
Pre-Tax Margin - 3 Yr. Avg. 11.6%
Net Profit Margin 16.5%
Net Profit Margin - 3 Yr. Avg. 11.1%
Effective Tax Rate 0.2%
Eff/ Tax Rate - 3 Yr. Avg. 0.1%
Payout Ratio 119.8%

BPL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BPL stock intrinsic value calculation we used $3248 million for the last fiscal year's total revenue generated by Buckeye Partners. The default revenue input number comes from 2016 income statement of Buckeye Partners. 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 BPL stock valuation model: a) initial revenue growth rate of 10% 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 6.8%, whose default value for BPL is calculated based on our internal credit rating of Buckeye Partners, 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 Buckeye Partners.
    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 BPL stock the variable cost ratio is equal to 82.5%.

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 BPL 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 4.3% for Buckeye Partners.

Corporate tax rate of 27% is the nominal tax rate for Buckeye Partners. 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 BPL 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 BPL are equal to 209.4%.

Life of production assets of 30.6 years is the average useful life of capital assets used in Buckeye Partners 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 BPL is equal to 8.6%. 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 - $4412 million for Buckeye Partners - 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 142.211 million for Buckeye Partners 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 Buckeye Partners at the current share price and the inputted number of shares is $9.5 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
SXL Sunoco Logisti 23.94 prem.  prem.
GLOP GasLog Partner 23.60 prem.  prem.
MPC Marathon Petro 53.08 prem.  prem.
NGL NGL Energy Par 15.20 prem.  prem.
PSXP Phillips 66 Pa 52.60 prem.  prem.
OKE ONEOK 52.23 prem.  prem.
NS NuSTAR Energy 46.92 prem.  prem.

COMPANY NEWS

▶ ETFs with exposure to Buckeye Partners LP : May 22, 2017   [May-22-17 01:25PM  Capital Cube]
▶ Buckeye Partners Distribution: What to Expect for 1Q17   [Apr-28-17 04:05PM  Market Realist]
▶ Trump's tax cut proposal shines light on MLPs   [Apr-26-17 02:14PM  Reuters]
▶ 2 Stocks to Buy With Dividends Yielding More Than 5%   [Mar-31-17 01:29PM  Motley Fool]
▶ 2 Stocks That Pay You Big to Own Them   [Feb-25-17 03:15AM  at Motley Fool]
▶ 3 Value Stocks Senior Citizens Could Buy Right Now   [Feb-22-17 10:06AM  at Motley Fool]
▶ Better Buy: Enbridge Inc vs. Buckeye Partners L.P.   [Feb-21-17 02:19PM  at Motley Fool]
▶ 2 Stocks With Better Dividends Than Kinder Morgan, Inc.   [Feb-02-17 10:53AM  at Motley Fool]
Stock chart of BPL Financial statements of BPL Annual reports of BPL
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.