Intrinsic value of Comstock Resources - CRK

Previous Close

$7.33

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$7.33

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of CRK 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -30.16
  34.00
  31.10
  28.49
  26.14
  24.03
  22.12
  20.41
  18.87
  17.48
  16.24
  15.11
  14.10
  13.19
  12.37
  11.63
  10.97
  10.37
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
  6.69
  6.52
  6.37
Revenue, $m
  176
  236
  309
  397
  501
  622
  759
  914
  1,086
  1,276
  1,484
  1,708
  1,949
  2,206
  2,479
  2,767
  3,070
  3,389
  3,722
  4,070
  4,433
  4,811
  5,205
  5,614
  6,038
  6,480
  6,939
  7,416
  7,912
  8,428
  8,964
Variable operating expenses, $m
 
  1,253
  1,643
  2,111
  2,662
  3,302
  4,033
  4,856
  5,772
  6,781
  7,882
  9,074
  10,353
  11,719
  13,168
  14,700
  16,313
  18,006
  19,777
  21,626
  23,555
  25,563
  27,652
  29,825
  32,082
  34,429
  36,867
  39,401
  42,036
  44,775
  47,626
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
  170
  1,253
  1,643
  2,111
  2,662
  3,302
  4,033
  4,856
  5,772
  6,781
  7,882
  9,074
  10,353
  11,719
  13,168
  14,700
  16,313
  18,006
  19,777
  21,626
  23,555
  25,563
  27,652
  29,825
  32,082
  34,429
  36,867
  39,401
  42,036
  44,775
  47,626
Operating income, $m
  5
  -1,017
  -1,334
  -1,713
  -2,161
  -2,681
  -3,274
  -3,942
  -4,686
  -5,505
  -6,399
  -7,366
  -8,404
  -9,513
  -10,690
  -11,934
  -13,243
  -14,617
  -16,054
  -17,556
  -19,121
  -20,752
  -22,448
  -24,211
  -26,044
  -27,949
  -29,928
  -31,985
  -34,124
  -36,348
  -38,662
EBITDA, $m
  146
  -828
  -1,085
  -1,394
  -1,759
  -2,181
  -2,664
  -3,208
  -3,813
  -4,480
  -5,207
  -5,994
  -6,839
  -7,741
  -8,699
  -9,711
  -10,776
  -11,894
  -13,064
  -14,286
  -15,560
  -16,886
  -18,266
  -19,701
  -21,193
  -22,743
  -24,353
  -26,027
  -27,767
  -29,577
  -31,460
Interest expense (income), $m
  105
  96
  81
  109
  143
  183
  230
  283
  343
  410
  483
  563
  650
  743
  843
  948
  1,060
  1,177
  1,301
  1,430
  1,564
  1,705
  1,851
  2,003
  2,161
  2,326
  2,497
  2,674
  2,859
  3,051
  3,250
Earnings before tax, $m
  -128
  -1,113
  -1,414
  -1,822
  -2,304
  -2,864
  -3,504
  -4,225
  -5,029
  -5,915
  -6,882
  -7,929
  -9,055
  -10,256
  -11,533
  -12,882
  -14,303
  -15,794
  -17,355
  -18,985
  -20,686
  -22,456
  -24,299
  -26,214
  -28,205
  -30,274
  -32,425
  -34,659
  -36,982
  -39,398
  -41,912
Tax expense, $m
  7
  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
  -135
  -1,113
  -1,414
  -1,822
  -2,304
  -2,864
  -3,504
  -4,225
  -5,029
  -5,915
  -6,882
  -7,929
  -9,055
  -10,256
  -11,533
  -12,882
  -14,303
  -15,794
  -17,355
  -18,985
  -20,686
  -22,456
  -24,299
  -26,214
  -28,205
  -30,274
  -32,425
  -34,659
  -36,982
  -39,398
  -41,912

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  66
  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
  890
  1,102
  1,445
  1,856
  2,342
  2,904
  3,547
  4,271
  5,077
  5,964
  6,933
  7,980
  9,106
  10,307
  11,582
  12,929
  14,348
  15,836
  17,394
  19,021
  20,717
  22,483
  24,321
  26,231
  28,217
  30,281
  32,425
  34,654
  36,971
  39,381
  41,888
Adjusted assets (=assets-cash), $m
  824
  1,102
  1,445
  1,856
  2,342
  2,904
  3,547
  4,271
  5,077
  5,964
  6,933
  7,980
  9,106
  10,307
  11,582
  12,929
  14,348
  15,836
  17,394
  19,021
  20,717
  22,483
  24,321
  26,231
  28,217
  30,281
  32,425
  34,654
  36,971
  39,381
  41,888
Revenue / Adjusted assets
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
  0.214
Average production assets, $m
  919
  1,232
  1,615
  2,075
  2,617
  3,246
  3,964
  4,773
  5,673
  6,665
  7,747
  8,918
  10,176
  11,518
  12,943
  14,449
  16,034
  17,697
  19,438
  21,256
  23,151
  25,125
  27,179
  29,314
  31,533
  33,839
  36,235
  38,726
  41,316
  44,008
  46,810
Working capital, $m
  -2
  -91
  -119
  -153
  -193
  -240
  -293
  -353
  -419
  -493
  -573
  -659
  -752
  -851
  -957
  -1,068
  -1,185
  -1,308
  -1,437
  -1,571
  -1,711
  -1,857
  -2,009
  -2,167
  -2,331
  -2,501
  -2,678
  -2,863
  -3,054
  -3,253
  -3,460
Total debt, $m
  1,045
  876
  1,184
  1,555
  1,992
  2,498
  3,076
  3,728
  4,453
  5,252
  6,124
  7,066
  8,079
  9,160
  10,308
  11,520
  12,797
  14,137
  15,539
  17,003
  18,529
  20,119
  21,773
  23,492
  25,279
  27,137
  29,067
  31,073
  33,158
  35,327
  37,583
Total liabilities, $m
  1,161
  992
  1,300
  1,671
  2,108
  2,614
  3,192
  3,844
  4,569
  5,368
  6,240
  7,182
  8,195
  9,276
  10,424
  11,636
  12,913
  14,253
  15,655
  17,119
  18,645
  20,235
  21,889
  23,608
  25,395
  27,253
  29,183
  31,189
  33,274
  35,443
  37,699
Total equity, $m
  -271
  110
  144
  186
  234
  290
  355
  427
  508
  596
  693
  798
  911
  1,031
  1,158
  1,293
  1,435
  1,584
  1,739
  1,902
  2,072
  2,248
  2,432
  2,623
  2,822
  3,028
  3,243
  3,465
  3,697
  3,938
  4,189
Total liabilities and equity, $m
  890
  1,102
  1,444
  1,857
  2,342
  2,904
  3,547
  4,271
  5,077
  5,964
  6,933
  7,980
  9,106
  10,307
  11,582
  12,929
  14,348
  15,837
  17,394
  19,021
  20,717
  22,483
  24,321
  26,231
  28,217
  30,281
  32,426
  34,654
  36,971
  39,381
  41,888
Debt-to-equity ratio
  -3.856
  7.950
  8.200
  8.380
  8.500
  8.600
  8.670
  8.730
  8.770
  8.810
  8.830
  8.850
  8.870
  8.890
  8.900
  8.910
  8.920
  8.930
  8.930
  8.940
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
Adjusted equity ratio
  -0.409
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -135
  -1,113
  -1,414
  -1,822
  -2,304
  -2,864
  -3,504
  -4,225
  -5,029
  -5,915
  -6,882
  -7,929
  -9,055
  -10,256
  -11,533
  -12,882
  -14,303
  -15,794
  -17,355
  -18,985
  -20,686
  -22,456
  -24,299
  -26,214
  -28,205
  -30,274
  -32,425
  -34,659
  -36,982
  -39,398
  -41,912
Depreciation, amort., depletion, $m
  141
  189
  248
  319
  403
  499
  610
  734
  873
  1,025
  1,192
  1,372
  1,565
  1,772
  1,991
  2,223
  2,467
  2,723
  2,990
  3,270
  3,562
  3,865
  4,181
  4,510
  4,851
  5,206
  5,575
  5,958
  6,356
  6,771
  7,202
Funds from operations, $m
  -40
  -924
  -1,166
  -1,503
  -1,902
  -2,365
  -2,894
  -3,491
  -4,156
  -4,889
  -5,690
  -6,557
  -7,489
  -8,484
  -9,541
  -10,659
  -11,836
  -13,071
  -14,364
  -15,715
  -17,124
  -18,591
  -20,117
  -21,704
  -23,354
  -25,068
  -26,850
  -28,701
  -30,626
  -32,628
  -34,710
Change in working capital, $m
  -16
  -23
  -28
  -34
  -40
  -46
  -53
  -60
  -67
  -73
  -80
  -87
  -93
  -99
  -105
  -111
  -117
  -123
  -129
  -134
  -140
  -146
  -152
  -158
  -164
  -170
  -177
  -184
  -191
  -199
  -207
Cash from operations, $m
  -24
  -901
  -1,137
  -1,469
  -1,862
  -2,318
  -2,841
  -3,431
  -4,089
  -4,816
  -5,610
  -6,471
  -7,396
  -8,385
  -9,436
  -10,548
  -11,719
  -12,948
  -14,236
  -15,581
  -16,984
  -18,445
  -19,965
  -21,547
  -23,190
  -24,898
  -26,673
  -28,517
  -30,435
  -32,429
  -34,503
Maintenance CAPEX, $m
  0
  -141
  -189
  -248
  -319
  -403
  -499
  -610
  -734
  -873
  -1,025
  -1,192
  -1,372
  -1,565
  -1,772
  -1,991
  -2,223
  -2,467
  -2,723
  -2,990
  -3,270
  -3,562
  -3,865
  -4,181
  -4,510
  -4,851
  -5,206
  -5,575
  -5,958
  -6,356
  -6,771
New CAPEX, $m
  -57
  -313
  -383
  -460
  -542
  -629
  -718
  -809
  -901
  -992
  -1,082
  -1,171
  -1,258
  -1,342
  -1,425
  -1,506
  -1,585
  -1,663
  -1,741
  -1,818
  -1,895
  -1,974
  -2,054
  -2,135
  -2,219
  -2,306
  -2,396
  -2,491
  -2,589
  -2,693
  -2,802
Cash from investing activities, $m
  -30
  -454
  -572
  -708
  -861
  -1,032
  -1,217
  -1,419
  -1,635
  -1,865
  -2,107
  -2,363
  -2,630
  -2,907
  -3,197
  -3,497
  -3,808
  -4,130
  -4,464
  -4,808
  -5,165
  -5,536
  -5,919
  -6,316
  -6,729
  -7,157
  -7,602
  -8,066
  -8,547
  -9,049
  -9,573
Free cash flow, $m
  -54
  -1,355
  -1,710
  -2,178
  -2,723
  -3,349
  -4,058
  -4,850
  -5,724
  -6,681
  -7,718
  -8,833
  -10,026
  -11,293
  -12,633
  -14,045
  -15,527
  -17,078
  -18,699
  -20,389
  -22,149
  -23,981
  -25,884
  -27,863
  -29,919
  -32,055
  -34,275
  -36,583
  -38,982
  -41,478
  -44,075
Issuance/(repayment) of debt, $m
  -3
  -169
  308
  370
  437
  506
  578
  652
  725
  799
  872
  943
  1,013
  1,081
  1,148
  1,213
  1,277
  1,340
  1,402
  1,464
  1,527
  1,590
  1,654
  1,720
  1,787
  1,857
  1,930
  2,006
  2,085
  2,169
  2,256
Issuance/(repurchase) of shares, $m
  0
  1,561
  1,448
  1,864
  2,353
  2,920
  3,568
  4,297
  5,109
  6,004
  6,979
  8,034
  9,167
  10,376
  11,660
  13,017
  14,445
  15,943
  17,511
  19,148
  20,855
  22,633
  24,482
  26,405
  28,404
  30,481
  32,639
  34,882
  37,214
  39,639
  42,162
Cash from financing (excl. dividends), $m  
  -15
  1,392
  1,756
  2,234
  2,790
  3,426
  4,146
  4,949
  5,834
  6,803
  7,851
  8,977
  10,180
  11,457
  12,808
  14,230
  15,722
  17,283
  18,913
  20,612
  22,382
  24,223
  26,136
  28,125
  30,191
  32,338
  34,569
  36,888
  39,299
  41,808
  44,418
Total cash flow (excl. dividends), $m
  -68
  37
  47
  56
  66
  77
  88
  99
  110
  122
  133
  144
  154
  165
  175
  185
  194
  204
  213
  223
  232
  242
  252
  262
  272
  283
  294
  305
  317
  330
  344
Retained Cash Flow (-), $m
  100
  -1,561
  -1,448
  -1,864
  -2,353
  -2,920
  -3,568
  -4,297
  -5,109
  -6,004
  -6,979
  -8,034
  -9,167
  -10,376
  -11,660
  -13,017
  -14,445
  -15,943
  -17,511
  -19,148
  -20,855
  -22,633
  -24,482
  -26,405
  -28,404
  -30,481
  -32,639
  -34,882
  -37,214
  -39,639
  -42,162
Prev. year cash balance distribution, $m
 
  66
  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
 
  -1,458
  -1,401
  -1,807
  -2,286
  -2,843
  -3,480
  -4,198
  -4,999
  -5,882
  -6,846
  -7,890
  -9,013
  -10,212
  -11,485
  -12,832
  -14,250
  -15,739
  -17,297
  -18,925
  -20,623
  -22,391
  -24,231
  -26,143
  -28,132
  -30,198
  -32,345
  -34,577
  -36,897
  -39,309
  -41,819
Discount rate, %
 
  16.10
  16.91
  17.75
  18.64
  19.57
  20.55
  21.58
  22.65
  23.79
  24.98
  26.23
  27.54
  28.91
  30.36
  31.88
  33.47
  35.14
  36.90
  38.75
  40.68
  42.72
  44.85
  47.10
  49.45
  51.92
  54.52
  57.25
  60.11
  63.11
  66.27
PV of cash for distribution, $m
 
  -1,256
  -1,025
  -1,107
  -1,154
  -1,163
  -1,134
  -1,069
  -976
  -862
  -736
  -609
  -487
  -376
  -281
  -202
  -140
  -94
  -61
  -38
  -22
  -13
  -7
  -4
  -2
  -1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  3.5
  0.3
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Comstock Resources, Inc. is an energy company engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The Company operates in the segment of exploration and production of oil and natural gas. The Company's oil and gas operations are concentrated in Texas and Louisiana. Its operations are focused in two operating areas: East Texas/North Louisiana and South Texas. The Company's properties in the East Texas/North Louisiana region include approximately 80,660 acres in the Haynesville or Bossier shale formations. The Company's Eagleville field includes approximately 30,220 acres located in the oil window of the Eagle Ford shale in South Texas. The Company owns interests in over 1,575 producing oil and natural gas wells, and operates over 950 of these wells. The Company owns interests in over 20 wells in the Rosita field, located in Duval County, Texas.

FINANCIAL RATIOS  of  Comstock Resources (CRK)

Valuation Ratios
P/E Ratio -0.8
Price to Sales 0.6
Price to Book -0.4
Price to Tangible Book
Price to Cash Flow -4.3
Price to Free Cash Flow -1.3
Growth Rates
Sales Growth Rate -30.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -78.4%
Cap. Spend. - 3 Yr. Gr. Rate -35.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity -385.6%
Total Debt to Equity -385.6%
Interest Coverage 0
Management Effectiveness
Return On Assets -2.3%
Ret/ On Assets - 3 Yr. Avg. -19.4%
Return On Total Capital -14.6%
Ret/ On T. Cap. - 3 Yr. Avg. -29.1%
Return On Equity 61.1%
Return On Equity - 3 Yr. Avg. -81.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 60.8%
Gross Margin - 3 Yr. Avg. 69.3%
EBITDA Margin 67%
EBITDA Margin - 3 Yr. Avg. -59.2%
Operating Margin 3.4%
Oper. Margin - 3 Yr. Avg. -144.6%
Pre-Tax Margin -72.7%
Pre-Tax Margin - 3 Yr. Avg. -188.2%
Net Profit Margin -76.7%
Net Profit Margin - 3 Yr. Avg. -167.5%
Effective Tax Rate -5.5%
Eff/ Tax Rate - 3 Yr. Avg. 12.6%
Payout Ratio 0%

CRK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CRK stock intrinsic value calculation we used $176 million for the last fiscal year's total revenue generated by Comstock Resources. The default revenue input number comes from 2016 income statement of Comstock Resources. 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 CRK stock valuation model: a) initial revenue growth rate of 34% 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 16.1%, whose default value for CRK is calculated based on our internal credit rating of Comstock Resources, 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 Comstock Resources.
    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 CRK stock the variable cost ratio is equal to 531.3%.

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 CRK 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 9.2% for Comstock Resources.

Corporate tax rate of 27% is the nominal tax rate for Comstock Resources. 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 CRK 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 CRK are equal to 522.2%.

Life of production assets of 6.5 years is the average useful life of capital assets used in Comstock Resources 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 CRK is equal to -38.6%. 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 - $-271 million for Comstock Resources - 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 14.552 million for Comstock Resources 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 Comstock Resources at the current share price and the inputted number of shares is $0.1 billion.

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COMPANY NEWS

▶ Top 4 Oil Stocks for February 2018   [Feb-07-18 09:58AM  Investopedia]
▶ EnerCom Dallas Announces 2018 Conference Presenters   [Jan-18-18 05:44PM  PR Newswire]
▶ Cushing Inventories Hit February 2015 Low   [Jan-09-18 09:40AM  Market Realist]
▶ The 5 Best Energy Stocks for 2017   [Dec-22-17 06:00AM  Investopedia]
▶ Comstock reports 3Q loss   [Nov-03-17 03:09PM  Associated Press]
▶ Top 4 Oil Stocks for November 2017   [Nov-02-17 01:45PM  Investopedia]
▶ Who Are Comstock Resources Incs (CRK) Major Shareholders?   [Oct-31-17 07:45PM  Simply Wall St.]
▶ The 5 Best Energy Stocks for 2017   [Oct-30-17 10:02AM  Investopedia]
▶ Understanding Falling US Distillate Inventories   [Sep-28-17 02:06PM  Market Realist]
▶ Why US Crude Oil Production Rose Last Week   [Sep-14-17 02:10PM  Market Realist]
▶ Comstock Resources, Inc. Announces Management Changes   [Sep-01-17 06:46AM  GlobeNewswire]
▶ Will US Natural Gas Futures Rise in September?   [Aug-28-17 01:06PM  Market Realist]
▶ Will Saudi Arabia Remove Excess Oil from the Market?   [Aug-08-17 09:11AM  Market Realist]
▶ Comstock reports 2Q loss   [Aug-07-17 11:55PM  Associated Press]
▶ Hedge Funds Net Long Positions in US Crude Oil Rose Again   [Jul-25-17 12:36PM  Market Realist]
▶ US Distillate Inventories Rose for the 3rd Time in 5 Weeks   [Jul-13-17 09:20AM  Market Realist]
▶ Analyzing Hedge Funds Net Long Position on US Crude Oil   [Jul-11-17 11:35AM  Market Realist]
▶ US Distillate Inventories Fell for the Second Straight Week   [Jul-07-17 12:36PM  Market Realist]
▶ OPECs Crude Oil Exports: Bullish or Bearish for Traders?   [Jul-05-17 09:53AM  Market Realist]
▶ Analyzing US Gasoline Inventories and Gasoline Demand   [Jun-15-17 11:04AM  Market Realist]
▶ Comstock reports 1Q loss   [May-08-17 07:02AM  Associated Press]
▶ Russias Crude Oil Production Fell in April: Whats Next?   [May-03-17 09:21AM  Market Realist]
▶ Will OPEC Extend the Production Cut Deal into 2018?   [May-02-17 10:03AM  Market Realist]
▶ US Crude Oil Imports and Refinery Demand Impact Inventories   [Apr-06-17 09:36AM  Market Realist]
▶ Will Gasoline Inventories Support Crude Oil Prices?   [Mar-22-17 08:20AM  Market Realist]
▶ Irans Crude Oil Production: Highest in the Last 7 Years   [Mar-21-17 08:56AM  Market Realist]
▶ Comstock Recovers Losses from Previous Day   [Mar-09-17 08:04PM  Investopedia]
▶ How to Read Comstock Resources Stock Price Dip   [Feb-09-17 08:01PM  at Investopedia]
Financial statements of CRK
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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