Intrinsic value of ENSCO - ESV

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$5.37

  Intrinsic Value

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  Value-price divergence*

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

We calculate the intrinsic value of ESV 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 1.5

 

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, %
  -31.68
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  2,776
  4,144
  4,240
  4,349
  4,471
  4,606
  4,755
  4,917
  5,092
  5,281
  5,484
  5,701
  5,932
  6,178
  6,440
  6,718
  7,012
  7,324
  7,654
  8,002
  8,370
  8,758
  9,167
  9,598
  10,052
  10,531
  11,035
  11,565
  12,123
  12,710
  13,328
Variable operating expenses, $m
 
  6,324
  6,470
  6,636
  6,823
  7,029
  7,256
  7,503
  7,771
  8,059
  8,368
  8,699
  9,052
  9,428
  9,828
  10,252
  10,701
  11,177
  11,680
  12,211
  12,772
  13,364
  13,988
  14,646
  15,340
  16,070
  16,839
  17,648
  18,500
  19,396
  20,338
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
  1,847
  6,324
  6,470
  6,636
  6,823
  7,029
  7,256
  7,503
  7,771
  8,059
  8,368
  8,699
  9,052
  9,428
  9,828
  10,252
  10,701
  11,177
  11,680
  12,211
  12,772
  13,364
  13,988
  14,646
  15,340
  16,070
  16,839
  17,648
  18,500
  19,396
  20,338
Operating income, $m
  929
  -2,180
  -2,230
  -2,287
  -2,352
  -2,423
  -2,501
  -2,586
  -2,679
  -2,778
  -2,885
  -2,999
  -3,120
  -3,250
  -3,388
  -3,534
  -3,689
  -3,852
  -4,026
  -4,209
  -4,402
  -4,606
  -4,822
  -5,048
  -5,287
  -5,539
  -5,804
  -6,083
  -6,377
  -6,686
  -7,010
EBITDA, $m
  1,374
  -1,602
  -1,639
  -1,681
  -1,729
  -1,781
  -1,838
  -1,901
  -1,969
  -2,042
  -2,120
  -2,204
  -2,293
  -2,389
  -2,490
  -2,597
  -2,711
  -2,832
  -2,959
  -3,094
  -3,236
  -3,386
  -3,544
  -3,711
  -3,886
  -4,071
  -4,266
  -4,471
  -4,687
  -4,914
  -5,153
Interest expense (income), $m
  265
  246
  253
  260
  268
  277
  287
  298
  309
  322
  336
  351
  367
  384
  402
  421
  442
  463
  486
  510
  536
  563
  592
  622
  653
  687
  722
  759
  798
  839
  882
Earnings before tax, $m
  998
  -2,426
  -2,483
  -2,547
  -2,619
  -2,700
  -2,788
  -2,884
  -2,988
  -3,100
  -3,221
  -3,350
  -3,487
  -3,634
  -3,790
  -3,955
  -4,130
  -4,316
  -4,512
  -4,719
  -4,938
  -5,169
  -5,413
  -5,670
  -5,941
  -6,226
  -6,526
  -6,842
  -7,174
  -7,524
  -7,892
Tax expense, $m
  109
  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
  890
  -2,426
  -2,483
  -2,547
  -2,619
  -2,700
  -2,788
  -2,884
  -2,988
  -3,100
  -3,221
  -3,350
  -3,487
  -3,634
  -3,790
  -3,955
  -4,130
  -4,316
  -4,512
  -4,719
  -4,938
  -5,169
  -5,413
  -5,670
  -5,941
  -6,226
  -6,526
  -6,842
  -7,174
  -7,524
  -7,892

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,602
  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
  14,375
  12,558
  12,847
  13,177
  13,548
  13,959
  14,409
  14,900
  15,431
  16,004
  16,618
  17,275
  17,976
  18,723
  19,516
  20,358
  21,250
  22,194
  23,193
  24,248
  25,362
  26,538
  27,778
  29,085
  30,461
  31,912
  33,438
  35,046
  36,737
  38,516
  40,387
Adjusted assets (=assets-cash), $m
  11,773
  12,558
  12,847
  13,177
  13,548
  13,959
  14,409
  14,900
  15,431
  16,004
  16,618
  17,275
  17,976
  18,723
  19,516
  20,358
  21,250
  22,194
  23,193
  24,248
  25,362
  26,538
  27,778
  29,085
  30,461
  31,912
  33,438
  35,046
  36,737
  38,516
  40,387
Revenue / Adjusted assets
  0.236
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
Average production assets, $m
  11,004
  12,072
  12,350
  12,667
  13,024
  13,418
  13,852
  14,323
  14,834
  15,384
  15,975
  16,606
  17,280
  17,998
  18,760
  19,570
  20,427
  21,335
  22,295
  23,310
  24,381
  25,511
  26,702
  27,959
  29,282
  30,676
  32,144
  33,689
  35,315
  37,025
  38,824
Working capital, $m
  2,425
  211
  216
  222
  228
  235
  243
  251
  260
  269
  280
  291
  303
  315
  328
  343
  358
  374
  390
  408
  427
  447
  467
  489
  513
  537
  563
  590
  618
  648
  680
Total debt, $m
  5,275
  6,017
  6,184
  6,374
  6,588
  6,825
  7,085
  7,368
  7,675
  8,005
  8,360
  8,739
  9,143
  9,574
  10,032
  10,517
  11,032
  11,577
  12,153
  12,762
  13,405
  14,083
  14,799
  15,553
  16,347
  17,184
  18,065
  18,992
  19,968
  20,995
  22,074
Total liabilities, $m
  6,124
  7,246
  7,413
  7,603
  7,817
  8,054
  8,314
  8,597
  8,904
  9,234
  9,589
  9,968
  10,372
  10,803
  11,261
  11,746
  12,261
  12,806
  13,382
  13,991
  14,634
  15,312
  16,028
  16,782
  17,576
  18,413
  19,294
  20,221
  21,197
  22,224
  23,303
Total equity, $m
  8,251
  5,312
  5,434
  5,574
  5,731
  5,905
  6,095
  6,303
  6,527
  6,770
  7,029
  7,307
  7,604
  7,920
  8,255
  8,611
  8,989
  9,388
  9,811
  10,257
  10,728
  11,226
  11,750
  12,303
  12,885
  13,499
  14,144
  14,824
  15,540
  16,292
  17,084
Total liabilities and equity, $m
  14,375
  12,558
  12,847
  13,177
  13,548
  13,959
  14,409
  14,900
  15,431
  16,004
  16,618
  17,275
  17,976
  18,723
  19,516
  20,357
  21,250
  22,194
  23,193
  24,248
  25,362
  26,538
  27,778
  29,085
  30,461
  31,912
  33,438
  35,045
  36,737
  38,516
  40,387
Debt-to-equity ratio
  0.639
  1.130
  1.140
  1.140
  1.150
  1.160
  1.160
  1.170
  1.180
  1.180
  1.190
  1.200
  1.200
  1.210
  1.220
  1.220
  1.230
  1.230
  1.240
  1.240
  1.250
  1.250
  1.260
  1.260
  1.270
  1.270
  1.280
  1.280
  1.280
  1.290
  1.290
Adjusted equity ratio
  0.480
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423
  0.423

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  890
  -2,426
  -2,483
  -2,547
  -2,619
  -2,700
  -2,788
  -2,884
  -2,988
  -3,100
  -3,221
  -3,350
  -3,487
  -3,634
  -3,790
  -3,955
  -4,130
  -4,316
  -4,512
  -4,719
  -4,938
  -5,169
  -5,413
  -5,670
  -5,941
  -6,226
  -6,526
  -6,842
  -7,174
  -7,524
  -7,892
Depreciation, amort., depletion, $m
  445
  578
  591
  606
  623
  642
  663
  685
  710
  736
  764
  795
  827
  861
  898
  936
  977
  1,021
  1,067
  1,115
  1,167
  1,221
  1,278
  1,338
  1,401
  1,468
  1,538
  1,612
  1,690
  1,772
  1,858
Funds from operations, $m
  1,072
  -1,849
  -1,892
  -1,941
  -1,996
  -2,058
  -2,125
  -2,199
  -2,278
  -2,364
  -2,456
  -2,555
  -2,661
  -2,773
  -2,892
  -3,019
  -3,153
  -3,295
  -3,445
  -3,604
  -3,772
  -3,949
  -4,136
  -4,332
  -4,540
  -4,758
  -4,988
  -5,230
  -5,485
  -5,753
  -6,035
Change in working capital, $m
  -8
  4
  5
  6
  6
  7
  8
  8
  9
  10
  10
  11
  12
  13
  13
  14
  15
  16
  17
  18
  19
  20
  21
  22
  23
  24
  26
  27
  28
  30
  31
Cash from operations, $m
  1,080
  -2,601
  -1,897
  -1,947
  -2,002
  -2,065
  -2,133
  -2,207
  -2,287
  -2,374
  -2,467
  -2,566
  -2,672
  -2,785
  -2,905
  -3,033
  -3,168
  -3,311
  -3,462
  -3,622
  -3,791
  -3,969
  -4,156
  -4,354
  -4,563
  -4,782
  -5,014
  -5,257
  -5,513
  -5,783
  -6,066
Maintenance CAPEX, $m
  0
  -566
  -578
  -591
  -606
  -623
  -642
  -663
  -685
  -710
  -736
  -764
  -795
  -827
  -861
  -898
  -936
  -977
  -1,021
  -1,067
  -1,115
  -1,167
  -1,221
  -1,278
  -1,338
  -1,401
  -1,468
  -1,538
  -1,612
  -1,690
  -1,772
New CAPEX, $m
  -322
  -237
  -278
  -317
  -356
  -395
  -433
  -472
  -511
  -550
  -590
  -632
  -674
  -718
  -763
  -809
  -858
  -908
  -960
  -1,014
  -1,071
  -1,130
  -1,192
  -1,256
  -1,324
  -1,394
  -1,468
  -1,545
  -1,626
  -1,710
  -1,799
Cash from investing activities, $m
  -569
  -803
  -856
  -908
  -962
  -1,018
  -1,075
  -1,135
  -1,196
  -1,260
  -1,326
  -1,396
  -1,469
  -1,545
  -1,624
  -1,707
  -1,794
  -1,885
  -1,981
  -2,081
  -2,186
  -2,297
  -2,413
  -2,534
  -2,662
  -2,795
  -2,936
  -3,083
  -3,238
  -3,400
  -3,571
Free cash flow, $m
  511
  -3,404
  -2,752
  -2,855
  -2,965
  -3,083
  -3,208
  -3,341
  -3,483
  -3,634
  -3,793
  -3,962
  -4,141
  -4,330
  -4,529
  -4,740
  -4,962
  -5,196
  -5,443
  -5,703
  -5,977
  -6,265
  -6,569
  -6,888
  -7,224
  -7,578
  -7,949
  -8,340
  -8,751
  -9,183
  -9,637
Issuance/(repayment) of debt, $m
  -14
  148
  167
  191
  214
  237
  260
  283
  307
  330
  354
  379
  405
  431
  458
  486
  515
  545
  576
  609
  643
  678
  715
  754
  794
  837
  881
  927
  976
  1,027
  1,080
Issuance/(repurchase) of shares, $m
  586
  2,055
  2,707
  2,804
  2,908
  3,019
  3,139
  3,266
  3,401
  3,546
  3,699
  3,861
  4,033
  4,215
  4,407
  4,610
  4,824
  5,051
  5,289
  5,541
  5,805
  6,084
  6,378
  6,687
  7,012
  7,354
  7,714
  8,092
  8,490
  8,909
  9,348
Cash from financing (excl. dividends), $m  
  541
  2,203
  2,874
  2,995
  3,122
  3,256
  3,399
  3,549
  3,708
  3,876
  4,053
  4,240
  4,438
  4,646
  4,865
  5,096
  5,339
  5,596
  5,865
  6,150
  6,448
  6,762
  7,093
  7,441
  7,806
  8,191
  8,595
  9,019
  9,466
  9,936
  10,428
Total cash flow (excl. dividends), $m
  1,050
  -3,256
  -2,585
  -2,664
  -2,751
  -2,846
  -2,948
  -3,058
  -3,177
  -3,304
  -3,439
  -3,583
  -3,736
  -3,899
  -4,071
  -4,254
  -4,447
  -4,651
  -4,867
  -5,094
  -5,334
  -5,587
  -5,853
  -6,134
  -6,430
  -6,741
  -7,068
  -7,413
  -7,775
  -8,156
  -8,557
Retained Cash Flow (-), $m
  -1,738
  -100
  -122
  -140
  -157
  -174
  -191
  -208
  -225
  -242
  -260
  -278
  -297
  -316
  -336
  -356
  -377
  -399
  -422
  -446
  -471
  -497
  -524
  -553
  -582
  -613
  -646
  -680
  -715
  -753
  -792
Prev. year cash balance distribution, $m
 
  1,301
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  5.80
  6.09
  6.39
  6.71
  7.05
  7.40
  7.77
  8.16
  8.57
  9.00
  9.45
  9.92
  10.42
  10.94
  11.48
  12.06
  12.66
  13.29
  13.96
  14.66
  15.39
  16.16
  16.97
  17.81
  18.71
  19.64
  20.62
  21.65
  22.74
  23.87
PV of cash for distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  64.0
  37.0
  21.3
  12.2
  7.0
  4.0
  2.2
  1.3
  0.7
  0.4
  0.2
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. It operates through three segments: Floaters, Jackups, and Other. The company owns and operates an offshore drilling rig fleet of 68 rigs, including 4 rigs under construction located in the Middle East and Africa, the Asia Pacific, Europe, North and South America, Europe, and the Mediterranean. It also offers management services on rigs owned by third-parties. The company serves government-owned and independent oil and gas companies. Ensco plc was founded in 1975 and is headquartered in London, the United Kingdom.

FINANCIAL RATIOS  of  ENSCO (ESV)

Valuation Ratios
P/E Ratio 1.8
Price to Sales 0.6
Price to Book 0.2
Price to Tangible Book
Price to Cash Flow 1.5
Price to Free Cash Flow 2.1
Growth Rates
Sales Growth Rate -31.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -80.1%
Cap. Spend. - 3 Yr. Gr. Rate -28.8%
Financial Strength
Quick Ratio 8
Current Ratio 0.1
LT Debt to Equity 59.9%
Total Debt to Equity 63.9%
Interest Coverage 5
Management Effectiveness
Return On Assets 8%
Ret/ On Assets - 3 Yr. Avg. -7.3%
Return On Total Capital 6.9%
Ret/ On T. Cap. - 3 Yr. Avg. -9.9%
Return On Equity 12.1%
Return On Equity - 3 Yr. Avg. -15.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 53.1%
Gross Margin - 3 Yr. Avg. 53.9%
EBITDA Margin 61.5%
EBITDA Margin - 3 Yr. Avg. 1.7%
Operating Margin 33.5%
Oper. Margin - 3 Yr. Avg. -16.6%
Pre-Tax Margin 36%
Pre-Tax Margin - 3 Yr. Avg. -18.7%
Net Profit Margin 32.1%
Net Profit Margin - 3 Yr. Avg. -30.9%
Effective Tax Rate 10.9%
Eff/ Tax Rate - 3 Yr. Avg. 2.1%
Payout Ratio 1.3%

ESV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ESV stock intrinsic value calculation we used $4063 million for the last fiscal year's total revenue generated by ENSCO. The default revenue input number comes from 2016 income statement of ENSCO. 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 ESV stock valuation model: a) initial revenue growth rate of 2% 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 5.8%, whose default value for ESV is calculated based on our internal credit rating of ENSCO, 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 ENSCO.
    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 ESV stock the variable cost ratio is equal to 152.6%.

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 ESV 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 4.2% for ENSCO.

Corporate tax rate of 27% is the nominal tax rate for ENSCO. 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 ESV 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 ESV are equal to 291.3%.

Life of production assets of 20.9 years is the average useful life of capital assets used in ENSCO 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 ESV is equal to 5.1%. 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 - $6513 million for ENSCO - 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 286.427 million for ENSCO 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 ENSCO at the current share price and the inputted number of shares is $1.5 billion.


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COMPANY NEWS

▶ Offshore Drillers: A Key Comparison of Backlogs   [Jun-28-17 07:39AM  Market Realist]
▶ Oil Prices Tumbled to $45: The Impact on Offshore Drilling   [Jun-26-17 01:36PM  Market Realist]
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▶ Benzinga's Option Alert Recap From June 20   [Jun-20-17 04:08PM  Benzinga]
▶ 3 Energy Stocks to Buy at the Bottom of the Cycle   [Jun-16-17 09:15AM  Motley Fool]
▶ How Analysts Reacted to Enscos Acquisition   [Jun-08-17 07:36AM  Market Realist]
▶ Analyzing Enscos Acquisition of Atwood   [Jun-07-17 06:05PM  Market Realist]
▶ Chart of the Week: Phases of Offshore Drilling Lifecycle   [Jun-05-17 04:19PM  Market Realist]
▶ Is Atwood Acquisition Positive for Ensco?   [01:06PM  GuruFocus.com]
▶ Why Was Atwood Oceanics Upgraded in May?   [07:37AM  Market Realist]
▶ Company News for May 31, 2017   [10:35AM  Zacks]
▶ What Happened in the Stock Market Today   [May-30-17 04:53PM  Motley Fool]
▶ Story Stocks from Briefing.com   [12:05PM  Briefing.com]
▶ London offshore drilling co. scoops up Houston co.   [10:40AM  American City Business Journals]
▶ Ensco plc to Acquire Atwood Oceanics, Inc.   [08:18AM  GlobeNewswire]
▶ Transocean: Not Out of the Woods?   [May-26-17 03:57PM  Barrons.com]
▶ So Goldman Sachs Just Upgraded This Offshore Driller   [May-23-17 11:14AM  Barrons.com]
▶ Ensco plc Announces Cash Dividend   [May-22-17 12:13PM  Business Wire]
▶ Understanding Rowans Revenue Jump in 1Q17   [May-10-17 07:37AM  Market Realist]
▶ ETFs with exposure to Ensco Plc : May 9, 2017   [May-09-17 04:35PM  Capital Cube]
▶ Diagnosing Enscos Financial Health after 1Q17   [10:36AM  Market Realist]
▶ Enscos Expenses: Dissecting the Cost Side   [07:37AM  Market Realist]
▶ What You Need to Know about Enscos Backlog and Contracts   [May-05-17 03:05PM  Market Realist]
▶ Inside Enscos Revenue Fall in 1Q17   [01:35PM  Market Realist]
▶ Enscos Vision of Offshore Drilling Recovery   [11:49AM  Market Realist]
▶ 8 Stocks Van Den Berg Continues to Buy   [May-03-17 05:32PM  GuruFocus.com]
▶ Ensco Slogs Through Another Quarter of Challenges   [May-01-17 10:37AM  Motley Fool]
▶ Ensco reports 1Q loss   [05:00AM  Associated Press]
▶ Ensco plc Reports First Quarter 2017 Results   [Apr-26-17 08:51PM  Business Wire]
▶ Seadrill Is Industrys Worst Performer in April   [Apr-25-17 04:25PM  Market Realist]
▶ Ensco: Why 3 Analysts Revised Their Recommendations   [Apr-24-17 11:05AM  Market Realist]
▶ What to Expect from Enscos 1Q17 Results   [07:37AM  Market Realist]
▶ OFS Stocks: How Returns Impact Implied Volatilities   [Apr-18-17 10:38AM  Market Realist]
▶ Spending Cuts Will Impact Seadrill and Ocean Rig in 2017   [Mar-24-17 10:36AM  Market Realist]
Stock chart of ESV Financial statements of ESV Annual reports of ESV
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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