Intrinsic value of NOW Inc. - DNOW

Previous Close

$11.87

  Intrinsic Value

$2.07

stock screener

  Rating & Target

str. sell

-83%

  Value-price divergence*

-86%

Previous close

$11.87

 
Intrinsic value

$2.07

 
Up/down potential

-83%

 
Rating

str. sell

 
Value-price divergence*

-86%

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

We calculate the intrinsic value of DNOW 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 1.2

 

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, %
  -30.00
  15.10
  14.09
  13.18
  12.36
  11.63
  10.96
  10.37
  9.83
  9.35
  8.91
  8.52
  8.17
  7.85
  7.57
  7.31
  7.08
  6.87
  6.68
  6.52
  6.36
  6.23
  6.11
  5.99
  5.90
  5.81
  5.73
  5.65
  5.59
  5.53
  5.48
Revenue, $m
  2,107
  2,425
  2,767
  3,132
  3,519
  3,928
  4,358
  4,810
  5,283
  5,777
  6,292
  6,828
  7,386
  7,966
  8,569
  9,195
  9,846
  10,523
  11,226
  11,958
  12,719
  13,511
  14,336
  15,195
  16,091
  17,025
  18,000
  19,017
  20,080
  21,190
  22,350
Variable operating expenses, $m
 
  2,830
  3,225
  3,646
  4,093
  4,565
  5,062
  5,583
  6,129
  6,699
  7,294
  7,881
  8,525
  9,195
  9,890
  10,613
  11,365
  12,146
  12,958
  13,802
  14,680
  15,595
  16,547
  17,539
  18,573
  19,651
  20,776
  21,950
  23,177
  24,458
  25,797
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
  2,329
  2,830
  3,225
  3,646
  4,093
  4,565
  5,062
  5,583
  6,129
  6,699
  7,294
  7,881
  8,525
  9,195
  9,890
  10,613
  11,365
  12,146
  12,958
  13,802
  14,680
  15,595
  16,547
  17,539
  18,573
  19,651
  20,776
  21,950
  23,177
  24,458
  25,797
Operating income, $m
  -222
  -405
  -458
  -514
  -574
  -637
  -703
  -773
  -846
  -922
  -1,002
  -1,053
  -1,139
  -1,229
  -1,322
  -1,418
  -1,519
  -1,623
  -1,732
  -1,844
  -1,962
  -2,084
  -2,211
  -2,344
  -2,482
  -2,626
  -2,776
  -2,933
  -3,097
  -3,268
  -3,447
EBITDA, $m
  -169
  -340
  -388
  -439
  -493
  -550
  -611
  -674
  -740
  -810
  -882
  -957
  -1,035
  -1,116
  -1,201
  -1,289
  -1,380
  -1,475
  -1,573
  -1,676
  -1,783
  -1,894
  -2,009
  -2,130
  -2,255
  -2,386
  -2,523
  -2,665
  -2,814
  -2,970
  -3,132
Interest expense (income), $m
  4
  3
  6
  9
  12
  16
  20
  24
  28
  32
  37
  41
  46
  52
  57
  62
  68
  74
  80
  87
  94
  101
  108
  115
  123
  131
  140
  149
  158
  168
  178
Earnings before tax, $m
  -230
  -408
  -464
  -523
  -586
  -653
  -723
  -797
  -874
  -954
  -1,038
  -1,095
  -1,186
  -1,280
  -1,379
  -1,481
  -1,587
  -1,697
  -1,812
  -1,931
  -2,055
  -2,184
  -2,319
  -2,459
  -2,605
  -2,757
  -2,916
  -3,082
  -3,255
  -3,436
  -3,626
Tax expense, $m
  4
  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
  -234
  -408
  -464
  -523
  -586
  -653
  -723
  -797
  -874
  -954
  -1,038
  -1,095
  -1,186
  -1,280
  -1,379
  -1,481
  -1,587
  -1,697
  -1,812
  -1,931
  -2,055
  -2,184
  -2,319
  -2,459
  -2,605
  -2,757
  -2,916
  -3,082
  -3,255
  -3,436
  -3,626

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  106
  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
  1,603
  1,724
  1,966
  2,226
  2,501
  2,792
  3,098
  3,419
  3,755
  4,106
  4,472
  4,853
  5,249
  5,662
  6,090
  6,535
  6,998
  7,479
  7,979
  8,499
  9,040
  9,603
  10,189
  10,800
  11,436
  12,100
  12,793
  13,516
  14,271
  15,060
  15,885
Adjusted assets (=assets-cash), $m
  1,497
  1,724
  1,966
  2,226
  2,501
  2,792
  3,098
  3,419
  3,755
  4,106
  4,472
  4,853
  5,249
  5,662
  6,090
  6,535
  6,998
  7,479
  7,979
  8,499
  9,040
  9,603
  10,189
  10,800
  11,436
  12,100
  12,793
  13,516
  14,271
  15,060
  15,885
Revenue / Adjusted assets
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
  1.407
Average production assets, $m
  327
  376
  429
  485
  545
  609
  676
  746
  819
  895
  975
  1,058
  1,145
  1,235
  1,328
  1,425
  1,526
  1,631
  1,740
  1,853
  1,971
  2,094
  2,222
  2,355
  2,494
  2,639
  2,790
  2,948
  3,112
  3,284
  3,464
Working capital, $m
  612
  582
  664
  752
  844
  943
  1,046
  1,154
  1,268
  1,387
  1,510
  1,639
  1,773
  1,912
  2,057
  2,207
  2,363
  2,525
  2,694
  2,870
  3,052
  3,243
  3,441
  3,647
  3,862
  4,086
  4,320
  4,564
  4,819
  5,086
  5,364
Total debt, $m
  65
  129
  198
  270
  348
  429
  515
  606
  700
  799
  902
  1,009
  1,120
  1,236
  1,356
  1,481
  1,611
  1,747
  1,887
  2,033
  2,185
  2,343
  2,508
  2,680
  2,859
  3,045
  3,240
  3,443
  3,655
  3,877
  4,109
Total liabilities, $m
  420
  484
  553
  625
  703
  784
  870
  961
  1,055
  1,154
  1,257
  1,364
  1,475
  1,591
  1,711
  1,836
  1,966
  2,102
  2,242
  2,388
  2,540
  2,698
  2,863
  3,035
  3,214
  3,400
  3,595
  3,798
  4,010
  4,232
  4,464
Total equity, $m
  1,183
  1,239
  1,414
  1,600
  1,798
  2,007
  2,227
  2,458
  2,700
  2,952
  3,215
  3,489
  3,774
  4,071
  4,379
  4,699
  5,032
  5,377
  5,737
  6,111
  6,499
  6,904
  7,326
  7,765
  8,223
  8,700
  9,198
  9,718
  10,261
  10,828
  11,421
Total liabilities and equity, $m
  1,603
  1,723
  1,967
  2,225
  2,501
  2,791
  3,097
  3,419
  3,755
  4,106
  4,472
  4,853
  5,249
  5,662
  6,090
  6,535
  6,998
  7,479
  7,979
  8,499
  9,039
  9,602
  10,189
  10,800
  11,437
  12,100
  12,793
  13,516
  14,271
  15,060
  15,885
Debt-to-equity ratio
  0.055
  0.100
  0.140
  0.170
  0.190
  0.210
  0.230
  0.250
  0.260
  0.270
  0.280
  0.290
  0.300
  0.300
  0.310
  0.320
  0.320
  0.320
  0.330
  0.330
  0.340
  0.340
  0.340
  0.350
  0.350
  0.350
  0.350
  0.350
  0.360
  0.360
  0.360
Adjusted equity ratio
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719
  0.719

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -234
  -408
  -464
  -523
  -586
  -653
  -723
  -797
  -874
  -954
  -1,038
  -1,095
  -1,186
  -1,280
  -1,379
  -1,481
  -1,587
  -1,697
  -1,812
  -1,931
  -2,055
  -2,184
  -2,319
  -2,459
  -2,605
  -2,757
  -2,916
  -3,082
  -3,255
  -3,436
  -3,626
Depreciation, amort., depletion, $m
  53
  65
  70
  75
  81
  86
  93
  99
  106
  113
  120
  96
  104
  112
  121
  130
  139
  148
  158
  168
  179
  190
  202
  214
  227
  240
  254
  268
  283
  299
  315
Funds from operations, $m
  577
  -343
  -394
  -448
  -506
  -566
  -631
  -698
  -768
  -842
  -919
  -998
  -1,082
  -1,168
  -1,258
  -1,351
  -1,448
  -1,549
  -1,654
  -1,763
  -1,876
  -1,994
  -2,117
  -2,245
  -2,378
  -2,518
  -2,663
  -2,814
  -2,973
  -3,138
  -3,311
Change in working capital, $m
  342
  76
  82
  88
  93
  98
  103
  108
  113
  119
  124
  129
  134
  139
  145
  150
  156
  162
  169
  176
  183
  190
  198
  206
  215
  224
  234
  244
  255
  266
  278
Cash from operations, $m
  235
  -419
  -476
  -536
  -598
  -665
  -734
  -806
  -882
  -960
  -1,042
  -1,127
  -1,215
  -1,307
  -1,402
  -1,501
  -1,604
  -1,711
  -1,822
  -1,938
  -2,059
  -2,184
  -2,315
  -2,451
  -2,593
  -2,742
  -2,897
  -3,058
  -3,228
  -3,404
  -3,589
Maintenance CAPEX, $m
  0
  -30
  -34
  -39
  -44
  -50
  -55
  -61
  -68
  -74
  -81
  -89
  -96
  -104
  -112
  -121
  -130
  -139
  -148
  -158
  -168
  -179
  -190
  -202
  -214
  -227
  -240
  -254
  -268
  -283
  -299
New CAPEX, $m
  -11
  -49
  -53
  -57
  -60
  -63
  -67
  -70
  -73
  -77
  -80
  -83
  -86
  -90
  -93
  -97
  -101
  -105
  -109
  -113
  -118
  -123
  -128
  -133
  -139
  -145
  -151
  -158
  -165
  -172
  -180
Cash from investing activities, $m
  -183
  -79
  -87
  -96
  -104
  -113
  -122
  -131
  -141
  -151
  -161
  -172
  -182
  -194
  -205
  -218
  -231
  -244
  -257
  -271
  -286
  -302
  -318
  -335
  -353
  -372
  -391
  -412
  -433
  -455
  -479
Free cash flow, $m
  52
  -498
  -563
  -631
  -703
  -778
  -856
  -938
  -1,023
  -1,111
  -1,203
  -1,299
  -1,398
  -1,501
  -1,608
  -1,719
  -1,835
  -1,955
  -2,080
  -2,210
  -2,345
  -2,486
  -2,633
  -2,786
  -2,946
  -3,113
  -3,288
  -3,470
  -3,660
  -3,859
  -4,068
Issuance/(repayment) of debt, $m
  -43
  64
  68
  73
  77
  82
  86
  90
  94
  99
  103
  107
  111
  116
  120
  125
  130
  135
  140
  146
  152
  158
  165
  172
  179
  187
  195
  203
  212
  222
  232
Issuance/(repurchase) of shares, $m
  0
  570
  638
  710
  784
  862
  943
  1,028
  1,116
  1,207
  1,301
  1,369
  1,471
  1,577
  1,687
  1,801
  1,919
  2,043
  2,171
  2,305
  2,444
  2,589
  2,740
  2,898
  3,063
  3,235
  3,414
  3,602
  3,798
  4,004
  4,219
Cash from financing (excl. dividends), $m  
  -47
  634
  706
  783
  861
  944
  1,029
  1,118
  1,210
  1,306
  1,404
  1,476
  1,582
  1,693
  1,807
  1,926
  2,049
  2,178
  2,311
  2,451
  2,596
  2,747
  2,905
  3,070
  3,242
  3,422
  3,609
  3,805
  4,010
  4,226
  4,451
Total cash flow (excl. dividends), $m
  16
  136
  144
  151
  159
  166
  173
  180
  187
  194
  201
  177
  184
  191
  199
  207
  215
  223
  232
  241
  251
  261
  272
  283
  295
  308
  321
  336
  350
  366
  383
Retained Cash Flow (-), $m
  220
  -570
  -638
  -710
  -784
  -862
  -943
  -1,028
  -1,116
  -1,207
  -1,301
  -1,369
  -1,471
  -1,577
  -1,687
  -1,801
  -1,919
  -2,043
  -2,171
  -2,305
  -2,444
  -2,589
  -2,740
  -2,898
  -3,063
  -3,235
  -3,414
  -3,602
  -3,798
  -4,004
  -4,219
Prev. year cash balance distribution, $m
 
  106
  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
 
  -328
  -495
  -558
  -625
  -696
  -770
  -848
  -928
  -1,013
  -1,101
  -1,192
  -1,287
  -1,385
  -1,488
  -1,594
  -1,705
  -1,820
  -1,939
  -2,064
  -2,193
  -2,328
  -2,468
  -2,615
  -2,767
  -2,927
  -3,093
  -3,267
  -3,448
  -3,638
  -3,836
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
 
  -314
  -453
  -486
  -515
  -539
  -559
  -573
  -580
  -582
  -577
  -566
  -549
  -527
  -499
  -468
  -433
  -396
  -357
  -318
  -279
  -241
  -205
  -171
  -141
  -114
  -90
  -70
  -53
  -40
  -29
Current shareholders' claim on cash, %
  100
  66.6
  44.7
  30.3
  20.7
  14.2
  9.8
  6.8
  4.8
  3.4
  2.4
  1.7
  1.2
  0.9
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift solutions, power transmission products, production process equipment, pumps, paint and coatings, mill tools, safety supplies, and spare parts, as well as provides application systems and parts integration, optimization solutions, and after-sales support services. The company also provides supply chain management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. It offers its products under the DistributionNOW and Wilson Export brand names. The company serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. is headquartered in Houston, Texas.

FINANCIAL RATIOS  of  NOW Inc. (DNOW)

Valuation Ratios
P/E Ratio -5.5
Price to Sales 0.6
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 5.4
Price to Free Cash Flow 5.7
Growth Rates
Sales Growth Rate -30%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 0%
Cap. Spend. - 3 Yr. Gr. Rate -27.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 5.5%
Total Debt to Equity 5.5%
Interest Coverage -57
Management Effectiveness
Return On Assets -13.4%
Ret/ On Assets - 3 Yr. Avg. -10.4%
Return On Total Capital -17%
Ret/ On T. Cap. - 3 Yr. Avg. -13.2%
Return On Equity -18.1%
Return On Equity - 3 Yr. Avg. -13.9%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 16.4%
Gross Margin - 3 Yr. Avg. 17.7%
EBITDA Margin -8.2%
EBITDA Margin - 3 Yr. Avg. -6.4%
Operating Margin -10.5%
Oper. Margin - 3 Yr. Avg. -7.7%
Pre-Tax Margin -10.9%
Pre-Tax Margin - 3 Yr. Avg. -7.9%
Net Profit Margin -11.1%
Net Profit Margin - 3 Yr. Avg. -8.3%
Effective Tax Rate -1.7%
Eff/ Tax Rate - 3 Yr. Avg. 12.1%
Payout Ratio 0%

DNOW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DNOW stock intrinsic value calculation we used $2107 million for the last fiscal year's total revenue generated by NOW Inc.. The default revenue input number comes from 2016 income statement of NOW Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our DNOW stock valuation model: a) initial revenue growth rate of 15.1% 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 DNOW is calculated based on our internal credit rating of NOW Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of NOW Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of DNOW stock the variable cost ratio is equal to 116.9%.

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 DNOW 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 NOW Inc..

Corporate tax rate of 27% is the nominal tax rate for NOW Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the DNOW 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 DNOW are equal to 15.5%.

Life of production assets of 11 years is the average useful life of capital assets used in NOW Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for DNOW is equal to 24%. 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 - $1183 million for NOW Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 105.128 million for NOW Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of NOW Inc. at the current share price and the inputted number of shares is $1.2 billion.

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COMPANY NEWS

▶ ETFs with exposure to NOW, Inc. : August 16, 2017   [Aug-16-17 05:36PM  Capital Cube]
▶ Now reports 2Q loss   [Aug-02-17 09:23PM  Associated Press]
▶ NOW Inc. Reports Second Quarter 2017 Results   [06:45AM  Business Wire]
▶ ETFs with exposure to NOW, Inc. : July 24, 2017   [Jul-24-17 03:25PM  Capital Cube]
▶ ETFs with exposure to NOW, Inc. : July 14, 2017   [Jul-14-17 01:58PM  Capital Cube]
▶ ETFs with exposure to NOW, Inc. : June 15, 2017   [Jun-15-17 01:44PM  Capital Cube]
▶ 3 Top Oil Stocks to Buy in June   [Jun-08-17 12:14PM  Motley Fool]
▶ ETFs with exposure to NOW, Inc. : June 1, 2017   [Jun-01-17 01:44PM  Capital Cube]
▶ Arnold Schneider Gains New Energy Holdings in 1st Quarter   [May-31-17 12:01PM  GuruFocus.com]
▶ ETFs with exposure to NOW, Inc. : May 16, 2017   [May-16-17 12:50PM  Capital Cube]
▶ 3 Hidden Gems in the Oil Sector   [May-09-17 08:11AM  Motley Fool]
▶ ETFs with exposure to NOW, Inc. : May 3, 2017   [May-03-17 03:50PM  Capital Cube]
▶ Now reports 1Q loss   [06:51AM  Associated Press]
▶ NOW Inc. Reports First Quarter 2017 Results   [06:45AM  Business Wire]
▶ NOW, Inc. Value Analysis (NYSE:DNOW) : May 1, 2017   [May-01-17 04:56PM  Capital Cube]
▶ ETFs with exposure to NOW, Inc. : April 21, 2017   [Apr-21-17 02:52PM  Capital Cube]
▶ ETFs with exposure to NOW, Inc. : April 5, 2017   [Apr-05-17 04:38PM  Capital Cube]
▶ 3 Little-Known Energy Companies to Put on Your Radar   [Mar-31-17 02:42PM  Motley Fool]
▶ Now reports 4Q loss   [07:00AM  Associated Press]
▶ NOW Inc (DNOW): Are Hedge Funds Right About This Stock?   [Dec-05-16 12:49PM  at Insider Monkey]
▶ NOW Inc. Announces Distributorship Agreements   [Nov-07-16 06:45AM  Business Wire]
▶ NOW Incs Results Bounce Off the Bottom   [05:00PM  at Motley Fool]
▶ 3 Unheard-Of Stocks That Are Fantastic Buys Right Now   [Oct-04-16 05:47PM  at Motley Fool]
▶ Shares of NOW Inc. Surged Ahead 15% in August -- Here's Why   [Sep-07-16 01:51PM  at Motley Fool]
▶ Ask a Fool: 3 Stocks Investors Should Buy Next   [Jun-13-16 12:10PM  at Motley Fool]
▶ NOW Inc. Completes Power Service Acquisition   [Jun-01-16 01:16PM  Business Wire]
Stock chart of DNOW Financial statements of DNOW
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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