Intrinsic value of Legacy Reserves - LGCY

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$1.32

  Intrinsic Value

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  Value-price divergence*

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$1.32

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

We calculate the intrinsic value of LGCY 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 0.1

 

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, %
  -7.37
  15.00
  14.00
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
Revenue, $m
  314
  361
  412
  466
  523
  583
  647
  714
  783
  856
  932
  1,011
  1,094
  1,179
  1,268
  1,361
  1,457
  1,556
  1,660
  1,768
  1,880
  1,997
  2,119
  2,246
  2,378
  2,516
  2,660
  2,810
  2,967
  3,131
  3,302
Variable operating expenses, $m
 
  1,134
  1,293
  1,462
  1,642
  1,831
  2,031
  2,241
  2,460
  2,689
  2,927
  3,176
  3,434
  3,703
  3,982
  4,272
  4,574
  4,887
  5,213
  5,552
  5,905
  6,272
  6,654
  7,052
  7,467
  7,900
  8,352
  8,823
  9,316
  9,830
  10,368
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
  249
  1,134
  1,293
  1,462
  1,642
  1,831
  2,031
  2,241
  2,460
  2,689
  2,927
  3,176
  3,434
  3,703
  3,982
  4,272
  4,574
  4,887
  5,213
  5,552
  5,905
  6,272
  6,654
  7,052
  7,467
  7,900
  8,352
  8,823
  9,316
  9,830
  10,368
Operating income, $m
  66
  -773
  -881
  -996
  -1,119
  -1,248
  -1,384
  -1,527
  -1,676
  -1,832
  -1,995
  -2,164
  -2,340
  -2,524
  -2,714
  -2,912
  -3,117
  -3,331
  -3,553
  -3,784
  -4,024
  -4,274
  -4,535
  -4,806
  -5,089
  -5,384
  -5,692
  -6,013
  -6,349
  -6,700
  -7,066
EBITDA, $m
  216
  -601
  -685
  -775
  -870
  -970
  -1,076
  -1,187
  -1,303
  -1,424
  -1,551
  -1,682
  -1,819
  -1,962
  -2,110
  -2,263
  -2,423
  -2,589
  -2,762
  -2,941
  -3,128
  -3,323
  -3,525
  -3,736
  -3,956
  -4,185
  -4,425
  -4,675
  -4,936
  -5,208
  -5,493
Interest expense (income), $m
  0
  41
  34
  41
  48
  55
  63
  72
  80
  89
  99
  109
  119
  130
  141
  152
  164
  177
  190
  203
  218
  232
  247
  263
  280
  297
  315
  334
  353
  374
  395
Earnings before tax, $m
  -55
  -813
  -915
  -1,037
  -1,167
  -1,304
  -1,448
  -1,599
  -1,757
  -1,922
  -2,094
  -2,273
  -2,459
  -2,653
  -2,855
  -3,064
  -3,282
  -3,508
  -3,743
  -3,987
  -4,242
  -4,506
  -4,782
  -5,069
  -5,369
  -5,681
  -6,007
  -6,347
  -6,702
  -7,073
  -7,461
Tax expense, $m
  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
Net income, $m
  -56
  -813
  -915
  -1,037
  -1,167
  -1,304
  -1,448
  -1,599
  -1,757
  -1,922
  -2,094
  -2,273
  -2,459
  -2,653
  -2,855
  -3,064
  -3,282
  -3,508
  -3,743
  -3,987
  -4,242
  -4,506
  -4,782
  -5,069
  -5,369
  -5,681
  -6,007
  -6,347
  -6,702
  -7,073
  -7,461

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  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
Total assets, $m
  1,300
  1,492
  1,701
  1,924
  2,160
  2,410
  2,673
  2,949
  3,237
  3,538
  3,852
  4,179
  4,519
  4,873
  5,240
  5,622
  6,019
  6,432
  6,861
  7,307
  7,771
  8,254
  8,757
  9,281
  9,827
  10,397
  10,991
  11,612
  12,260
  12,937
  13,645
Adjusted assets (=assets-cash), $m
  1,297
  1,492
  1,701
  1,924
  2,160
  2,410
  2,673
  2,949
  3,237
  3,538
  3,852
  4,179
  4,519
  4,873
  5,240
  5,622
  6,019
  6,432
  6,861
  7,307
  7,771
  8,254
  8,757
  9,281
  9,827
  10,397
  10,991
  11,612
  12,260
  12,937
  13,645
Revenue / Adjusted assets
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
  0.242
Average production assets, $m
  1,302
  1,497
  1,706
  1,930
  2,167
  2,418
  2,681
  2,958
  3,247
  3,549
  3,864
  4,192
  4,533
  4,888
  5,257
  5,640
  6,038
  6,452
  6,882
  7,329
  7,795
  8,279
  8,784
  9,309
  9,857
  10,429
  11,025
  11,648
  12,298
  12,977
  13,687
Working capital, $m
  -4
  -8
  -9
  -10
  -12
  -13
  -14
  -16
  -17
  -19
  -21
  -22
  -24
  -26
  -28
  -30
  -32
  -34
  -37
  -39
  -41
  -44
  -47
  -49
  -52
  -55
  -59
  -62
  -65
  -69
  -73
Total debt, $m
  1,161
  982
  1,170
  1,370
  1,583
  1,808
  2,045
  2,293
  2,552
  2,823
  3,106
  3,400
  3,706
  4,025
  4,355
  4,699
  5,056
  5,428
  5,813
  6,215
  6,632
  7,067
  7,520
  7,992
  8,483
  8,996
  9,531
  10,089
  10,673
  11,282
  11,919
Total liabilities, $m
  1,522
  1,343
  1,531
  1,731
  1,944
  2,169
  2,406
  2,654
  2,913
  3,184
  3,467
  3,761
  4,067
  4,386
  4,716
  5,060
  5,417
  5,789
  6,174
  6,576
  6,993
  7,428
  7,881
  8,353
  8,844
  9,357
  9,892
  10,450
  11,034
  11,643
  12,280
Total equity, $m
  -222
  149
  170
  192
  216
  241
  267
  295
  324
  354
  385
  418
  452
  487
  524
  562
  602
  643
  686
  731
  777
  825
  876
  928
  983
  1,040
  1,099
  1,161
  1,226
  1,294
  1,364
Total liabilities and equity, $m
  1,300
  1,492
  1,701
  1,923
  2,160
  2,410
  2,673
  2,949
  3,237
  3,538
  3,852
  4,179
  4,519
  4,873
  5,240
  5,622
  6,019
  6,432
  6,860
  7,307
  7,770
  8,253
  8,757
  9,281
  9,827
  10,397
  10,991
  11,611
  12,260
  12,937
  13,644
Debt-to-equity ratio
  -5.230
  6.580
  6.880
  7.120
  7.330
  7.500
  7.650
  7.780
  7.880
  7.980
  8.060
  8.140
  8.200
  8.260
  8.310
  8.360
  8.400
  8.440
  8.470
  8.510
  8.540
  8.560
  8.590
  8.610
  8.630
  8.650
  8.670
  8.690
  8.710
  8.720
  8.740
Adjusted equity ratio
  -0.173
  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
  -56
  -813
  -915
  -1,037
  -1,167
  -1,304
  -1,448
  -1,599
  -1,757
  -1,922
  -2,094
  -2,273
  -2,459
  -2,653
  -2,855
  -3,064
  -3,282
  -3,508
  -3,743
  -3,987
  -4,242
  -4,506
  -4,782
  -5,069
  -5,369
  -5,681
  -6,007
  -6,347
  -6,702
  -7,073
  -7,461
Depreciation, amort., depletion, $m
  150
  172
  196
  222
  249
  278
  308
  340
  373
  408
  444
  482
  521
  562
  604
  648
  694
  742
  791
  842
  896
  952
  1,010
  1,070
  1,133
  1,199
  1,267
  1,339
  1,414
  1,492
  1,573
Funds from operations, $m
  -14
  -641
  -719
  -815
  -918
  -1,026
  -1,139
  -1,259
  -1,383
  -1,514
  -1,650
  -1,791
  -1,938
  -2,091
  -2,251
  -2,416
  -2,588
  -2,766
  -2,952
  -3,145
  -3,346
  -3,555
  -3,773
  -3,999
  -4,236
  -4,482
  -4,740
  -5,008
  -5,289
  -5,582
  -5,888
Change in working capital, $m
  -14
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -4
  -4
Cash from operations, $m
  0
  -755
  -718
  -814
  -916
  -1,024
  -1,138
  -1,257
  -1,382
  -1,512
  -1,648
  -1,789
  -1,937
  -2,090
  -2,249
  -2,414
  -2,586
  -2,764
  -2,950
  -3,143
  -3,343
  -3,552
  -3,770
  -3,997
  -4,233
  -4,479
  -4,737
  -5,005
  -5,285
  -5,578
  -5,884
Maintenance CAPEX, $m
  0
  -150
  -172
  -196
  -222
  -249
  -278
  -308
  -340
  -373
  -408
  -444
  -482
  -521
  -562
  -604
  -648
  -694
  -742
  -791
  -842
  -896
  -952
  -1,010
  -1,070
  -1,133
  -1,199
  -1,267
  -1,339
  -1,414
  -1,492
New CAPEX, $m
  0
  -195
  -210
  -224
  -237
  -251
  -264
  -277
  -289
  -302
  -315
  -328
  -341
  -355
  -369
  -383
  -398
  -414
  -430
  -447
  -465
  -484
  -505
  -526
  -548
  -571
  -596
  -622
  -650
  -679
  -710
Cash from investing activities, $m
  120
  -345
  -382
  -420
  -459
  -500
  -542
  -585
  -629
  -675
  -723
  -772
  -823
  -876
  -931
  -987
  -1,046
  -1,108
  -1,172
  -1,238
  -1,307
  -1,380
  -1,457
  -1,536
  -1,618
  -1,704
  -1,795
  -1,889
  -1,989
  -2,093
  -2,202
Free cash flow, $m
  120
  -1,100
  -1,100
  -1,234
  -1,375
  -1,524
  -1,679
  -1,842
  -2,011
  -2,188
  -2,371
  -2,562
  -2,760
  -2,965
  -3,179
  -3,401
  -3,632
  -3,872
  -4,121
  -4,381
  -4,651
  -4,933
  -5,226
  -5,532
  -5,851
  -6,184
  -6,532
  -6,895
  -7,274
  -7,671
  -8,086
Issuance/(repayment) of debt, $m
  -110
  -179
  188
  201
  213
  225
  237
  248
  260
  271
  283
  294
  306
  318
  331
  344
  357
  371
  386
  401
  418
  435
  453
  472
  492
  513
  535
  559
  583
  609
  637
Issuance/(repurchase) of shares, $m
  0
  1,650
  933
  1,056
  1,186
  1,324
  1,469
  1,621
  1,780
  1,947
  2,120
  2,300
  2,488
  2,682
  2,885
  3,096
  3,314
  3,542
  3,778
  4,024
  4,280
  4,546
  4,824
  5,113
  5,414
  5,728
  6,056
  6,398
  6,756
  7,129
  7,520
Cash from financing (excl. dividends), $m  
  -119
  1,471
  1,121
  1,257
  1,399
  1,549
  1,706
  1,869
  2,040
  2,218
  2,403
  2,594
  2,794
  3,000
  3,216
  3,440
  3,671
  3,913
  4,164
  4,425
  4,698
  4,981
  5,277
  5,585
  5,906
  6,241
  6,591
  6,957
  7,339
  7,738
  8,157
Total cash flow (excl. dividends), $m
  1
  -1,279
  -912
  -1,033
  -1,163
  -1,299
  -1,443
  -1,594
  -1,752
  -1,916
  -2,088
  -2,267
  -2,453
  -2,647
  -2,848
  -3,057
  -3,275
  -3,501
  -3,735
  -3,980
  -4,234
  -4,498
  -4,773
  -5,060
  -5,359
  -5,671
  -5,996
  -6,336
  -6,691
  -7,061
  -7,449
Retained Cash Flow (-), $m
  42
  -374
  -21
  -22
  -24
  -25
  -26
  -28
  -29
  -30
  -31
  -33
  -34
  -35
  -37
  -38
  -40
  -41
  -43
  -45
  -46
  -48
  -50
  -52
  -55
  -57
  -59
  -62
  -65
  -68
  -71
Prev. year cash balance distribution, $m
 
  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
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, %
 
  15.90
  16.70
  17.53
  18.41
  19.33
  20.29
  21.31
  22.37
  23.49
  24.67
  25.90
  27.19
  28.55
  29.98
  31.48
  33.05
  34.71
  36.44
  38.27
  40.18
  42.19
  44.30
  46.51
  48.84
  51.28
  53.84
  56.54
  59.36
  62.33
  65.45
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
  50.0
  6.9
  1.0
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Legacy Reserves LP acquires and develops oil and natural gas properties primarily in the Permian Basin, East Texas, Rocky Mountain, and Mid-Continent regions of the United States. As of December 31, 2016, the company owned interests in producing oil and natural gas properties in 627 fields comprising 10,775 gross productive wells, including 3,799 operated and 6,976 non-operated wells located in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma, and other states. It had proved reserves of approximately 144.8 million barrels of crude oil equivalent. Legacy Reserves LP was founded in 2005 and is headquartered in Midland, Texas.

FINANCIAL RATIOS  of  Legacy Reserves (LGCY)

Valuation Ratios
P/E Ratio -1.7
Price to Sales 0.3
Price to Book -0.4
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -7.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -100%
Cap. Spend. - 3 Yr. Gr. Rate -100%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity -523%
Total Debt to Equity -523%
Interest Coverage 0
Management Effectiveness
Return On Assets -3.8%
Ret/ On Assets - 3 Yr. Avg. -19.9%
Return On Total Capital -5.1%
Ret/ On T. Cap. - 3 Yr. Avg. -24.7%
Return On Equity 27.9%
Return On Equity - 3 Yr. Avg. -109.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 38.5%
Gross Margin - 3 Yr. Avg. 44.4%
EBITDA Margin 30.3%
EBITDA Margin - 3 Yr. Avg. -48.6%
Operating Margin 20.7%
Oper. Margin - 3 Yr. Avg. -86.8%
Pre-Tax Margin -17.5%
Pre-Tax Margin - 3 Yr. Avg. -92.8%
Net Profit Margin -17.8%
Net Profit Margin - 3 Yr. Avg. -92.8%
Effective Tax Rate -1.8%
Eff/ Tax Rate - 3 Yr. Avg. -0.4%
Payout Ratio 0%

LGCY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LGCY stock intrinsic value calculation we used $314 million for the last fiscal year's total revenue generated by Legacy Reserves. The default revenue input number comes from 2016 income statement of Legacy Reserves. 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 LGCY stock valuation model: a) initial revenue growth rate of 15% 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 15.9%, whose default value for LGCY is calculated based on our internal credit rating of Legacy Reserves, 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 Legacy Reserves.
    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 LGCY stock the variable cost ratio is equal to 314%.

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 LGCY 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 3.5% for Legacy Reserves.

Corporate tax rate of 27% is the nominal tax rate for Legacy Reserves. 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 LGCY 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 LGCY are equal to 414.5%.

Life of production assets of 8.7 years is the average useful life of capital assets used in Legacy Reserves 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 LGCY is equal to -2.2%. 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 - $-222 million for Legacy Reserves - 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 75.987 million for Legacy Reserves 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 Legacy Reserves at the current share price and the inputted number of shares is $0.1 billion.


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Stock chart of LGCY Financial statements of LGCY Annual reports of LGCY
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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