Intrinsic value of Louisiana-Pacific - LPX

Previous Close

$24.07

  Intrinsic Value

$226.26

stock screener

  Rating & Target

str. buy

+840%

  Value-price divergence*

+1259%

Previous close

$24.07

 
Intrinsic value

$226.26

 
Up/down potential

+840%

 
Rating

str. buy

 
Value-price divergence*

+1259%

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

We calculate the intrinsic value of LPX 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 3.4

 

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, %
  17.96
  21.00
  19.40
  17.96
  16.66
  15.50
  14.45
  13.50
  12.65
  11.89
  11.20
  10.58
  10.02
  9.52
  9.07
  8.66
  8.29
  7.96
  7.67
  7.40
  7.16
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.03
  5.93
  5.84
  5.75
Revenue, $m
  2,233
  2,702
  3,226
  3,806
  4,440
  5,128
  5,869
  6,661
  7,504
  8,396
  9,336
  10,324
  11,358
  12,439
  13,567
  14,742
  15,965
  17,237
  18,558
  19,932
  21,359
  22,843
  24,385
  25,988
  27,656
  29,392
  31,199
  33,082
  35,043
  37,089
  39,223
Variable operating expenses, $m
 
  724
  864
  1,019
  1,189
  1,373
  1,571
  1,783
  2,009
  2,247
  2,499
  2,762
  3,039
  3,328
  3,630
  3,944
  4,271
  4,612
  4,965
  5,333
  5,715
  6,112
  6,524
  6,953
  7,399
  7,864
  8,347
  8,851
  9,376
  9,923
  10,494
Fixed operating expenses, $m
 
  1,522
  1,560
  1,599
  1,639
  1,680
  1,722
  1,765
  1,809
  1,855
  1,901
  1,948
  1,997
  2,047
  2,098
  2,151
  2,204
  2,260
  2,316
  2,374
  2,433
  2,494
  2,557
  2,620
  2,686
  2,753
  2,822
  2,892
  2,965
  3,039
  3,115
Total operating expenses, $m
  2,047
  2,246
  2,424
  2,618
  2,828
  3,053
  3,293
  3,548
  3,818
  4,102
  4,400
  4,710
  5,036
  5,375
  5,728
  6,095
  6,475
  6,872
  7,281
  7,707
  8,148
  8,606
  9,081
  9,573
  10,085
  10,617
  11,169
  11,743
  12,341
  12,962
  13,609
Operating income, $m
  187
  456
  802
  1,187
  1,612
  2,075
  2,575
  3,113
  3,686
  4,294
  4,936
  5,613
  6,322
  7,064
  7,839
  8,647
  9,489
  10,365
  11,277
  12,225
  13,211
  14,237
  15,304
  16,415
  17,571
  18,775
  20,030
  21,338
  22,703
  24,127
  25,614
EBITDA, $m
  300
  569
  937
  1,346
  1,797
  2,288
  2,820
  3,390
  3,998
  4,643
  5,325
  6,042
  6,793
  7,580
  8,402
  9,259
  10,152
  11,081
  12,047
  13,052
  14,098
  15,185
  16,316
  17,493
  18,718
  19,995
  21,325
  22,711
  24,157
  25,666
  27,242
Interest expense (income), $m
  0
  13
  19
  26
  34
  42
  51
  60
  71
  82
  93
  106
  118
  132
  146
  161
  176
  192
  209
  226
  244
  262
  282
  302
  323
  344
  367
  390
  415
  441
  467
Earnings before tax, $m
  165
  443
  783
  1,161
  1,578
  2,033
  2,524
  3,052
  3,615
  4,212
  4,843
  5,507
  6,204
  6,932
  7,693
  8,486
  9,313
  10,173
  11,068
  11,999
  12,968
  13,975
  15,022
  16,113
  17,248
  18,431
  19,663
  20,948
  22,288
  23,686
  25,147
Tax expense, $m
  20
  120
  211
  314
  426
  549
  682
  824
  976
  1,137
  1,308
  1,487
  1,675
  1,872
  2,077
  2,291
  2,514
  2,747
  2,988
  3,240
  3,501
  3,773
  4,056
  4,350
  4,657
  4,976
  5,309
  5,656
  6,018
  6,395
  6,790
Net income, $m
  150
  323
  571
  848
  1,152
  1,484
  1,843
  2,228
  2,639
  3,075
  3,535
  4,020
  4,529
  5,060
  5,616
  6,195
  6,798
  7,426
  8,080
  8,759
  9,466
  10,202
  10,966
  11,762
  12,591
  13,454
  14,354
  15,292
  16,270
  17,291
  18,357

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  659
  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
  2,031
  1,660
  1,982
  2,338
  2,727
  3,150
  3,605
  4,092
  4,609
  5,157
  5,735
  6,341
  6,977
  7,641
  8,334
  9,055
  9,806
  10,588
  11,399
  12,243
  13,120
  14,031
  14,978
  15,963
  16,988
  18,054
  19,164
  20,320
  21,525
  22,782
  24,093
Adjusted assets (=assets-cash), $m
  1,372
  1,660
  1,982
  2,338
  2,727
  3,150
  3,605
  4,092
  4,609
  5,157
  5,735
  6,341
  6,977
  7,641
  8,334
  9,055
  9,806
  10,588
  11,399
  12,243
  13,120
  14,031
  14,978
  15,963
  16,988
  18,054
  19,164
  20,320
  21,525
  22,782
  24,093
Revenue / Adjusted assets
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
  1.628
Average production assets, $m
  927
  1,121
  1,339
  1,579
  1,842
  2,128
  2,435
  2,764
  3,114
  3,484
  3,874
  4,284
  4,714
  5,162
  5,630
  6,118
  6,625
  7,153
  7,702
  8,272
  8,864
  9,480
  10,120
  10,785
  11,477
  12,198
  12,948
  13,729
  14,543
  15,392
  16,278
Working capital, $m
  788
  159
  190
  225
  262
  303
  346
  393
  443
  495
  551
  609
  670
  734
  800
  870
  942
  1,017
  1,095
  1,176
  1,260
  1,348
  1,439
  1,533
  1,632
  1,734
  1,841
  1,952
  2,068
  2,188
  2,314
Total debt, $m
  377
  548
  743
  959
  1,195
  1,451
  1,726
  2,021
  2,335
  2,667
  3,017
  3,385
  3,770
  4,172
  4,592
  5,030
  5,485
  5,958
  6,450
  6,961
  7,493
  8,045
  8,619
  9,216
  9,837
  10,483
  11,155
  11,856
  12,586
  13,348
  14,142
Total liabilities, $m
  836
  1,006
  1,201
  1,417
  1,653
  1,909
  2,184
  2,479
  2,793
  3,125
  3,475
  3,843
  4,228
  4,630
  5,050
  5,488
  5,943
  6,416
  6,908
  7,419
  7,951
  8,503
  9,077
  9,674
  10,295
  10,941
  11,613
  12,314
  13,044
  13,806
  14,600
Total equity, $m
  1,196
  654
  781
  921
  1,074
  1,241
  1,420
  1,612
  1,816
  2,032
  2,259
  2,498
  2,749
  3,011
  3,283
  3,568
  3,864
  4,171
  4,491
  4,824
  5,169
  5,528
  5,901
  6,290
  6,693
  7,113
  7,551
  8,006
  8,481
  8,976
  9,493
Total liabilities and equity, $m
  2,032
  1,660
  1,982
  2,338
  2,727
  3,150
  3,604
  4,091
  4,609
  5,157
  5,734
  6,341
  6,977
  7,641
  8,333
  9,056
  9,807
  10,587
  11,399
  12,243
  13,120
  14,031
  14,978
  15,964
  16,988
  18,054
  19,164
  20,320
  21,525
  22,782
  24,093
Debt-to-equity ratio
  0.315
  0.840
  0.950
  1.040
  1.110
  1.170
  1.220
  1.250
  1.290
  1.310
  1.340
  1.350
  1.370
  1.390
  1.400
  1.410
  1.420
  1.430
  1.440
  1.440
  1.450
  1.460
  1.460
  1.470
  1.470
  1.470
  1.480
  1.480
  1.480
  1.490
  1.490
Adjusted equity ratio
  0.391
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  150
  323
  571
  848
  1,152
  1,484
  1,843
  2,228
  2,639
  3,075
  3,535
  4,020
  4,529
  5,060
  5,616
  6,195
  6,798
  7,426
  8,080
  8,759
  9,466
  10,202
  10,966
  11,762
  12,591
  13,454
  14,354
  15,292
  16,270
  17,291
  18,357
Depreciation, amort., depletion, $m
  113
  113
  135
  159
  185
  214
  245
  277
  312
  349
  388
  428
  471
  516
  563
  612
  663
  715
  770
  827
  886
  948
  1,012
  1,079
  1,148
  1,220
  1,295
  1,373
  1,454
  1,539
  1,628
Funds from operations, $m
  377
  436
  706
  1,007
  1,337
  1,698
  2,087
  2,506
  2,951
  3,424
  3,924
  4,449
  5,000
  5,577
  6,179
  6,807
  7,461
  8,142
  8,850
  9,587
  10,353
  11,149
  11,978
  12,841
  13,739
  14,674
  15,649
  16,665
  17,724
  18,830
  19,985
Change in working capital, $m
  35
  28
  31
  34
  37
  41
  44
  47
  50
  53
  55
  58
  61
  64
  67
  69
  72
  75
  78
  81
  84
  88
  91
  95
  98
  102
  107
  111
  116
  121
  126
Cash from operations, $m
  342
  409
  675
  972
  1,300
  1,657
  2,044
  2,459
  2,902
  3,372
  3,868
  4,391
  4,939
  5,513
  6,112
  6,738
  7,389
  8,067
  8,772
  9,506
  10,269
  11,062
  11,887
  12,746
  13,640
  14,572
  15,542
  16,554
  17,609
  18,710
  19,859
Maintenance CAPEX, $m
  0
  -93
  -112
  -134
  -158
  -184
  -213
  -244
  -276
  -311
  -348
  -387
  -428
  -471
  -516
  -563
  -612
  -663
  -715
  -770
  -827
  -886
  -948
  -1,012
  -1,079
  -1,148
  -1,220
  -1,295
  -1,373
  -1,454
  -1,539
New CAPEX, $m
  -125
  -195
  -218
  -240
  -263
  -286
  -307
  -329
  -350
  -370
  -390
  -410
  -429
  -449
  -468
  -488
  -507
  -528
  -549
  -570
  -592
  -616
  -640
  -665
  -692
  -720
  -750
  -781
  -814
  -849
  -886
Cash from investing activities, $m
  286
  -288
  -330
  -374
  -421
  -470
  -520
  -573
  -626
  -681
  -738
  -797
  -857
  -920
  -984
  -1,051
  -1,119
  -1,191
  -1,264
  -1,340
  -1,419
  -1,502
  -1,588
  -1,677
  -1,771
  -1,868
  -1,970
  -2,076
  -2,187
  -2,303
  -2,425
Free cash flow, $m
  628
  121
  346
  598
  879
  1,187
  1,523
  1,886
  2,275
  2,690
  3,130
  3,593
  4,081
  4,593
  5,128
  5,687
  6,270
  6,877
  7,508
  8,165
  8,849
  9,560
  10,299
  11,069
  11,870
  12,704
  13,572
  14,478
  15,422
  16,406
  17,434
Issuance/(repayment) of debt, $m
  -393
  174
  195
  216
  236
  256
  276
  295
  314
  332
  350
  368
  385
  402
  420
  437
  455
  473
  492
  511
  531
  552
  574
  597
  621
  646
  673
  701
  730
  761
  794
Issuance/(repurchase) of shares, $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
  0
Cash from financing (excl. dividends), $m  
  -407
  174
  195
  216
  236
  256
  276
  295
  314
  332
  350
  368
  385
  402
  420
  437
  455
  473
  492
  511
  531
  552
  574
  597
  621
  646
  673
  701
  730
  761
  794
Total cash flow (excl. dividends), $m
  225
  295
  541
  814
  1,115
  1,443
  1,799
  2,181
  2,589
  3,022
  3,480
  3,961
  4,466
  4,995
  5,548
  6,124
  6,725
  7,350
  8,000
  8,677
  9,380
  10,112
  10,873
  11,666
  12,491
  13,350
  14,245
  15,178
  16,152
  17,168
  18,229
Retained Cash Flow (-), $m
  -179
  -114
  -127
  -140
  -153
  -167
  -179
  -192
  -204
  -216
  -228
  -239
  -250
  -262
  -273
  -284
  -296
  -308
  -320
  -332
  -345
  -359
  -373
  -388
  -404
  -420
  -437
  -456
  -475
  -495
  -516
Prev. year cash balance distribution, $m
 
  656
  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
 
  837
  414
  674
  961
  1,277
  1,620
  1,990
  2,385
  2,806
  3,252
  3,722
  4,216
  4,734
  5,275
  5,840
  6,429
  7,042
  7,680
  8,344
  9,035
  9,753
  10,500
  11,278
  12,087
  12,930
  13,808
  14,723
  15,677
  16,673
  17,712
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
 
  803
  379
  586
  792
  990
  1,176
  1,344
  1,491
  1,612
  1,705
  1,767
  1,799
  1,800
  1,771
  1,715
  1,634
  1,532
  1,414
  1,285
  1,148
  1,009
  871
  739
  616
  503
  403
  316
  243
  182
  133
Current shareholders' claim on cash, %
  100
  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
  100.0

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures and sells building products primarily for use in new home construction, repair and remodeling, and outdoor structures, as well as light industrial and commercial construction. It operates in four segments: North America Oriented Strand Board; Siding; Engineered Wood Products; and South America. The company offers structural panel products comprising plywood, including roof decking, sidewall sheathing, and floor underlayment; SmartSide siding products and related accessories, such as wood-based sidings, trim, soffit, and fascia; and CanExel siding and accessory products, including pre-finished lap and trim products. It also provides laminated veneer lumber, I-joists, laminated strand lumber, and other related products for residential and commercial flooring, roofing systems, headers and beams, and other structural applications; and timber and timberlands, and other products and services. The company sells its products to retail home centers, manufactured housing producers, distributors, and wholesalers primarily in North America and South America, as well as in Asia, Australia, and Europe. Louisiana-Pacific Corporation was founded in 1972 and is headquartered in Nashville, Tennessee.

FINANCIAL RATIOS  of  Louisiana-Pacific (LPX)

Valuation Ratios
P/E Ratio 23.2
Price to Sales 1.6
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 10.2
Price to Free Cash Flow 16
Growth Rates
Sales Growth Rate 18%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 9.6%
Cap. Spend. - 3 Yr. Gr. Rate 10.5%
Financial Strength
Quick Ratio 220
Current Ratio 0
LT Debt to Equity 31.3%
Total Debt to Equity 31.5%
Interest Coverage 0
Management Effectiveness
Return On Assets 7.1%
Ret/ On Assets - 3 Yr. Avg. 0.1%
Return On Total Capital 9%
Ret/ On T. Cap. - 3 Yr. Avg. 0.1%
Return On Equity 13.6%
Return On Equity - 3 Yr. Avg. -0.4%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 22.8%
Gross Margin - 3 Yr. Avg. 14.3%
EBITDA Margin 12.4%
EBITDA Margin - 3 Yr. Avg. 4.2%
Operating Margin 8.3%
Oper. Margin - 3 Yr. Avg. 0.3%
Pre-Tax Margin 7.4%
Pre-Tax Margin - 3 Yr. Avg. -1%
Net Profit Margin 6.7%
Net Profit Margin - 3 Yr. Avg. -0.6%
Effective Tax Rate 12.1%
Eff/ Tax Rate - 3 Yr. Avg. 13.3%
Payout Ratio 0%

LPX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LPX stock intrinsic value calculation we used $2233 million for the last fiscal year's total revenue generated by Louisiana-Pacific. The default revenue input number comes from 2016 income statement of Louisiana-Pacific. 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 LPX stock valuation model: a) initial revenue growth rate of 21% 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 LPX is calculated based on our internal credit rating of Louisiana-Pacific, 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 Louisiana-Pacific.
    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 LPX stock the variable cost ratio is equal to 26.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1485 million in the base year in the intrinsic value calculation for LPX 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 Louisiana-Pacific.

Corporate tax rate of 27% is the nominal tax rate for Louisiana-Pacific. 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 LPX 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 LPX are equal to 41.5%.

Life of production assets of 10 years is the average useful life of capital assets used in Louisiana-Pacific 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 LPX is equal to 5.9%. 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 - $1196 million for Louisiana-Pacific - 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 141.604 million for Louisiana-Pacific 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 Louisiana-Pacific at the current share price and the inputted number of shares is $3.4 billion.

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COMPANY NEWS

▶ Louisiana-Pacific misses 2Q profit forecasts   [Aug-01-17 09:32PM  Associated Press]
▶ LP Reports Second Quarter 2017 Results   [06:55AM  Business Wire]
▶ LP to Acquire International Barrier Technology Inc.   [Jul-31-17 06:59PM  Business Wire]
▶ Yahoo Finance Live: Midday Movers   [09:40AM  Yahoo Finance Video]
▶ Building Products Stock With 371% Growth May Craft New Breakout   [Jul-12-17 04:18PM  Investor's Business Daily]
▶ LP Schedules Webcast to Discuss Second Quarter 2017 Results   [Jul-11-17 06:55AM  Business Wire]
▶ LP Now Warrants Its Engineered Wood Siding for Hail Damage   [May-11-17 10:13AM  Business Wire]
▶ Top Ranked Growth Stocks to Buy for May 8th   [May-08-17 10:30AM  Zacks]
▶ Louisiana-Pacific beats 1Q profit forecasts   [07:01AM  Associated Press]
▶ LP Reports First Quarter 2017 Results   [06:55AM  Business Wire]
▶ Top Ranked Growth Stocks to Buy for May 2nd   [May-02-17 11:48AM  Zacks]
▶ Top Ranked Growth Stocks to Buy for April 28th   [Apr-28-17 11:29AM  Zacks]
▶ LP Building Products Launches Architects Corner   [Apr-27-17 10:00AM  Business Wire]
▶ Top Ranked Growth Stocks to Buy for April 20th   [Apr-20-17 11:54AM  Zacks]
▶ Top Ranked Growth Stocks to Buy for April 18th   [Apr-18-17 12:19PM  Zacks]
▶ LP Schedules Webcast to Discuss First Quarter 2017 Results   [Apr-14-17 06:55AM  Business Wire]
▶ Top Ranked Growth Stocks to Buy for April 13th   [Apr-13-17 12:22PM  Zacks]
▶ Top Ranked Growth Stocks to Buy for April 11th   [Apr-11-17 11:50AM  Zacks]
▶ Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks   [Apr-05-17 10:36PM  Investor's Business Daily]
▶ Top Ranked Growth Stocks to Buy for April 3rd   [Apr-03-17 10:51AM  Zacks]
▶ Top Ranked Growth Stocks to Buy for March 30th   [Mar-30-17 12:29PM  Zacks]
Stock chart of LPX Financial statements of LPX
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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