Intrinsic value of Nabors Industries - NBR

Previous Close

$8.13

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$8.13

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of NBR 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 2.2

 

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, %
  -42.36
  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
  2,229
  2,274
  2,326
  2,386
  2,453
  2,527
  2,609
  2,698
  2,794
  2,897
  3,009
  3,127
  3,254
  3,390
  3,533
  3,686
  3,847
  4,018
  4,199
  4,390
  4,592
  4,804
  5,029
  5,265
  5,515
  5,777
  6,054
  6,345
  6,651
  6,973
  7,312
Variable operating expenses, $m
 
  1,414
  1,446
  1,483
  1,524
  1,570
  1,620
  1,674
  1,733
  1,797
  1,865
  1,922
  2,000
  2,083
  2,171
  2,265
  2,364
  2,469
  2,580
  2,698
  2,822
  2,952
  3,090
  3,236
  3,389
  3,550
  3,720
  3,899
  4,087
  4,285
  4,493
Fixed operating expenses, $m
 
  1,716
  1,759
  1,803
  1,848
  1,894
  1,941
  1,990
  2,040
  2,091
  2,143
  2,196
  2,251
  2,308
  2,365
  2,424
  2,485
  2,547
  2,611
  2,676
  2,743
  2,812
  2,882
  2,954
  3,028
  3,104
  3,181
  3,261
  3,342
  3,426
  3,511
Total operating expenses, $m
  2,999
  3,130
  3,205
  3,286
  3,372
  3,464
  3,561
  3,664
  3,773
  3,888
  4,008
  4,118
  4,251
  4,391
  4,536
  4,689
  4,849
  5,016
  5,191
  5,374
  5,565
  5,764
  5,972
  6,190
  6,417
  6,654
  6,901
  7,160
  7,429
  7,711
  8,004
Operating income, $m
  -770
  -856
  -879
  -900
  -919
  -936
  -952
  -967
  -979
  -990
  -1,000
  -991
  -997
  -1,001
  -1,003
  -1,004
  -1,002
  -998
  -992
  -984
  -973
  -960
  -943
  -924
  -902
  -876
  -847
  -815
  -778
  -738
  -693
EBITDA, $m
  104
  -124
  -130
  -133
  -131
  -125
  -115
  -101
  -84
  -62
  -37
  -7
  27
  65
  108
  156
  208
  266
  329
  397
  472
  552
  639
  732
  833
  941
  1,057
  1,181
  1,314
  1,456
  1,608
Interest expense (income), $m
  184
  168
  173
  179
  185
  192
  200
  208
  217
  228
  238
  250
  262
  276
  290
  305
  321
  337
  355
  374
  394
  415
  437
  461
  485
  511
  539
  568
  598
  630
  664
Earnings before tax, $m
  -1,198
  -1,024
  -1,052
  -1,078
  -1,104
  -1,128
  -1,152
  -1,175
  -1,197
  -1,218
  -1,238
  -1,241
  -1,259
  -1,277
  -1,293
  -1,308
  -1,323
  -1,336
  -1,347
  -1,358
  -1,367
  -1,375
  -1,381
  -1,385
  -1,387
  -1,388
  -1,386
  -1,382
  -1,376
  -1,368
  -1,356
Tax expense, $m
  -187
  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
  -1,030
  -1,024
  -1,052
  -1,078
  -1,104
  -1,128
  -1,152
  -1,175
  -1,197
  -1,218
  -1,238
  -1,241
  -1,259
  -1,277
  -1,293
  -1,308
  -1,323
  -1,336
  -1,347
  -1,358
  -1,367
  -1,375
  -1,381
  -1,385
  -1,387
  -1,388
  -1,386
  -1,382
  -1,376
  -1,368
  -1,356

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  295
  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
  8,187
  8,062
  8,248
  8,460
  8,698
  8,961
  9,251
  9,566
  9,907
  10,274
  10,669
  11,090
  11,540
  12,020
  12,529
  13,069
  13,642
  14,248
  14,890
  15,567
  16,282
  17,037
  17,833
  18,672
  19,556
  20,487
  21,467
  22,499
  23,585
  24,727
  25,928
Adjusted assets (=assets-cash), $m
  7,892
  8,062
  8,248
  8,460
  8,698
  8,961
  9,251
  9,566
  9,907
  10,274
  10,669
  11,090
  11,540
  12,020
  12,529
  13,069
  13,642
  14,248
  14,890
  15,567
  16,282
  17,037
  17,833
  18,672
  19,556
  20,487
  21,467
  22,499
  23,585
  24,727
  25,928
Revenue / Adjusted assets
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
Average production assets, $m
  6,633
  3,576
  3,659
  3,753
  3,858
  3,975
  4,103
  4,243
  4,395
  4,557
  4,732
  4,920
  5,119
  5,332
  5,558
  5,797
  6,051
  6,320
  6,605
  6,905
  7,223
  7,557
  7,910
  8,283
  8,675
  9,088
  9,523
  9,980
  10,462
  10,968
  11,501
Working capital, $m
  334
  39
  40
  41
  42
  43
  44
  46
  47
  49
  51
  53
  55
  58
  60
  63
  65
  68
  71
  75
  78
  82
  85
  90
  94
  98
  103
  108
  113
  119
  124
Total debt, $m
  3,579
  3,686
  3,802
  3,935
  4,084
  4,249
  4,430
  4,627
  4,841
  5,071
  5,317
  5,582
  5,863
  6,163
  6,482
  6,820
  7,179
  7,559
  7,960
  8,384
  8,832
  9,304
  9,802
  10,328
  10,881
  11,464
  12,077
  12,723
  13,403
  14,118
  14,870
Total liabilities, $m
  4,940
  5,047
  5,163
  5,296
  5,445
  5,610
  5,791
  5,988
  6,202
  6,432
  6,678
  6,943
  7,224
  7,524
  7,843
  8,181
  8,540
  8,920
  9,321
  9,745
  10,193
  10,665
  11,163
  11,689
  12,242
  12,825
  13,438
  14,084
  14,764
  15,479
  16,231
Total equity, $m
  3,247
  3,015
  3,085
  3,164
  3,253
  3,352
  3,460
  3,578
  3,705
  3,843
  3,990
  4,148
  4,316
  4,495
  4,686
  4,888
  5,102
  5,329
  5,569
  5,822
  6,090
  6,372
  6,670
  6,983
  7,314
  7,662
  8,029
  8,415
  8,821
  9,248
  9,697
Total liabilities and equity, $m
  8,187
  8,062
  8,248
  8,460
  8,698
  8,962
  9,251
  9,566
  9,907
  10,275
  10,668
  11,091
  11,540
  12,019
  12,529
  13,069
  13,642
  14,249
  14,890
  15,567
  16,283
  17,037
  17,833
  18,672
  19,556
  20,487
  21,467
  22,499
  23,585
  24,727
  25,928
Debt-to-equity ratio
  1.102
  1.220
  1.230
  1.240
  1.260
  1.270
  1.280
  1.290
  1.310
  1.320
  1.330
  1.350
  1.360
  1.370
  1.380
  1.400
  1.410
  1.420
  1.430
  1.440
  1.450
  1.460
  1.470
  1.480
  1.490
  1.500
  1.500
  1.510
  1.520
  1.530
  1.530
Adjusted equity ratio
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,030
  -1,024
  -1,052
  -1,078
  -1,104
  -1,128
  -1,152
  -1,175
  -1,197
  -1,218
  -1,238
  -1,241
  -1,259
  -1,277
  -1,293
  -1,308
  -1,323
  -1,336
  -1,347
  -1,358
  -1,367
  -1,375
  -1,381
  -1,385
  -1,387
  -1,388
  -1,386
  -1,382
  -1,376
  -1,368
  -1,356
Depreciation, amort., depletion, $m
  874
  732
  748
  767
  788
  812
  837
  865
  896
  928
  963
  984
  1,024
  1,066
  1,112
  1,159
  1,210
  1,264
  1,321
  1,381
  1,445
  1,511
  1,582
  1,657
  1,735
  1,818
  1,905
  1,996
  2,092
  2,194
  2,300
Funds from operations, $m
  624
  -292
  -304
  -311
  -316
  -317
  -315
  -310
  -301
  -290
  -275
  -257
  -235
  -210
  -181
  -149
  -112
  -72
  -27
  23
  77
  137
  201
  272
  348
  430
  518
  614
  716
  826
  944
Change in working capital, $m
  92
  1
  1
  1
  1
  1
  1
  2
  2
  2
  2
  2
  2
  2
  2
  3
  3
  3
  3
  3
  3
  4
  4
  4
  4
  4
  5
  5
  5
  5
  6
Cash from operations, $m
  532
  -3,799
  -305
  -312
  -317
  -318
  -316
  -311
  -303
  -291
  -277
  -259
  -237
  -213
  -184
  -151
  -115
  -74
  -30
  20
  74
  133
  198
  268
  343
  425
  514
  609
  711
  821
  938
Maintenance CAPEX, $m
  0
  -701
  -715
  -732
  -751
  -772
  -795
  -821
  -849
  -879
  -911
  -946
  -984
  -1,024
  -1,066
  -1,112
  -1,159
  -1,210
  -1,264
  -1,321
  -1,381
  -1,445
  -1,511
  -1,582
  -1,657
  -1,735
  -1,818
  -1,905
  -1,996
  -2,092
  -2,194
New CAPEX, $m
  -395
  -71
  -82
  -94
  -106
  -117
  -128
  -140
  -151
  -163
  -175
  -187
  -200
  -213
  -226
  -240
  -254
  -269
  -284
  -301
  -317
  -335
  -353
  -372
  -392
  -413
  -435
  -458
  -482
  -507
  -533
Cash from investing activities, $m
  -382
  -772
  -797
  -826
  -857
  -889
  -923
  -961
  -1,000
  -1,042
  -1,086
  -1,133
  -1,184
  -1,237
  -1,292
  -1,352
  -1,413
  -1,479
  -1,548
  -1,622
  -1,698
  -1,780
  -1,864
  -1,954
  -2,049
  -2,148
  -2,253
  -2,363
  -2,478
  -2,599
  -2,727
Free cash flow, $m
  150
  -4,571
  -1,102
  -1,138
  -1,173
  -1,207
  -1,239
  -1,271
  -1,303
  -1,333
  -1,363
  -1,392
  -1,421
  -1,449
  -1,476
  -1,503
  -1,529
  -1,554
  -1,578
  -1,602
  -1,624
  -1,646
  -1,667
  -1,687
  -1,705
  -1,723
  -1,739
  -1,754
  -1,767
  -1,778
  -1,788
Issuance/(repayment) of debt, $m
  -70
  107
  116
  133
  149
  165
  181
  197
  213
  230
  247
  264
  282
  300
  319
  338
  359
  380
  401
  424
  448
  472
  498
  525
  553
  583
  614
  646
  680
  715
  752
Issuance/(repurchase) of shares, $m
  -1
  4,232
  1,055
  1,085
  1,113
  1,140
  1,167
  1,192
  1,217
  1,241
  1,264
  1,286
  1,308
  1,328
  1,348
  1,367
  1,384
  1,401
  1,417
  1,431
  1,444
  1,456
  1,466
  1,475
  1,482
  1,488
  1,492
  1,494
  1,493
  1,491
  1,486
Cash from financing (excl. dividends), $m  
  -87
  4,339
  1,171
  1,218
  1,262
  1,305
  1,348
  1,389
  1,430
  1,471
  1,511
  1,550
  1,590
  1,628
  1,667
  1,705
  1,743
  1,781
  1,818
  1,855
  1,892
  1,928
  1,964
  2,000
  2,035
  2,071
  2,106
  2,140
  2,173
  2,206
  2,238
Total cash flow (excl. dividends), $m
  61
  -4,464
  -986
  -1,005
  -1,024
  -1,042
  -1,058
  -1,074
  -1,089
  -1,103
  -1,116
  -1,128
  -1,139
  -1,149
  -1,157
  -1,164
  -1,170
  -1,174
  -1,177
  -1,178
  -1,177
  -1,174
  -1,169
  -1,161
  -1,152
  -1,140
  -1,125
  -1,108
  -1,087
  -1,063
  -1,036
Retained Cash Flow (-), $m
  1,036
  -63
  -69
  -79
  -89
  -99
  -108
  -118
  -128
  -137
  -147
  -158
  -168
  -179
  -190
  -202
  -214
  -227
  -240
  -253
  -268
  -282
  -298
  -314
  -331
  -348
  -367
  -386
  -406
  -427
  -449
Prev. year cash balance distribution, $m
 
  295
  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, %
 
  7.30
  7.67
  8.05
  8.45
  8.87
  9.32
  9.78
  10.27
  10.79
  11.32
  11.89
  12.49
  13.11
  13.77
  14.45
  15.18
  15.93
  16.73
  17.57
  18.45
  19.37
  20.34
  21.35
  22.42
  23.54
  24.72
  25.96
  27.25
  28.62
  30.05
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
  32.8
  21.9
  14.6
  9.7
  6.5
  4.3
  2.9
  1.9
  1.3
  0.9
  0.6
  0.4
  0.3
  0.2
  0.1
  0.1
  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

Nabors Industries Ltd., together with its subsidiaries, provides drilling and rig services. It offers equipment manufacturing, rig instrumentation, optimization software, and directional drilling services; and patented steering systems and rig instrumentation software systems, including ROCKIT directional drilling system that provides data collection services to oil and gas exploration and service companies, and RIGWATCH software, which monitors a rig’s real-time performance and daily reporting for drilling operations. The company also manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling related equipment; and offers well-site services, such as engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, data collection, and other support services. As of December 31, 2015, it marketed approximately 430 rigs for land-based drilling operations in the United States, Canada, and approximately 20 other countries worldwide; 42 rigs for offshore drilling operations in the United States and internationally; and 6 jackup units. The company was founded in 1968 and is headquartered in Hamilton, Bermuda.

FINANCIAL RATIOS  of  Nabors Industries (NBR)

Valuation Ratios
P/E Ratio -2.2
Price to Sales 1
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow 4.3
Price to Free Cash Flow 16.8
Growth Rates
Sales Growth Rate -42.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -54.4%
Cap. Spend. - 3 Yr. Gr. Rate -19.6%
Financial Strength
Quick Ratio NaN
Current Ratio 0.3
LT Debt to Equity 110.2%
Total Debt to Equity 110.2%
Interest Coverage -6
Management Effectiveness
Return On Assets -9.9%
Ret/ On Assets - 3 Yr. Avg. -5.4%
Return On Total Capital -13.9%
Ret/ On T. Cap. - 3 Yr. Avg. -8.4%
Return On Equity -27.4%
Return On Equity - 3 Yr. Avg. -15.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 39.7%
Gross Margin - 3 Yr. Avg. 37.4%
EBITDA Margin -6.3%
EBITDA Margin - 3 Yr. Avg. 7.5%
Operating Margin -34.5%
Oper. Margin - 3 Yr. Avg. -15.1%
Pre-Tax Margin -53.7%
Pre-Tax Margin - 3 Yr. Avg. -24.6%
Net Profit Margin -46.2%
Net Profit Margin - 3 Yr. Avg. -21.9%
Effective Tax Rate 15.6%
Eff/ Tax Rate - 3 Yr. Avg. 9.4%
Payout Ratio -5%

NBR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NBR stock intrinsic value calculation we used $2229 million for the last fiscal year's total revenue generated by Nabors Industries. The default revenue input number comes from 2016 income statement of Nabors Industries. 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 NBR 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 7.3%, whose default value for NBR is calculated based on our internal credit rating of Nabors Industries, 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 Nabors Industries.
    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 NBR stock the variable cost ratio is equal to 62.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1674 million in the base year in the intrinsic value calculation for NBR 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 4.7% for Nabors Industries.

Corporate tax rate of 27% is the nominal tax rate for Nabors Industries. 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 NBR 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 NBR are equal to 157.3%.

Life of production assets of 3.8 years is the average useful life of capital assets used in Nabors Industries 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 NBR is equal to 1.7%. 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 - $3247 million for Nabors Industries - 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 275.862 million for Nabors Industries 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 Nabors Industries at the current share price and the inputted number of shares is $2.2 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
HP Helmerich&Payn 53.51 prem.  prem.
PTEN Patterson-UTI 20.02 prem.  prem.
PDS Precision Dril 3.36 prem.  prem.
SLB Schlumberger 65.25 prem.  prem.
PES Pioneer Energy 1.95 prem.  prem.
PKD Parker Drillin 1.35 prem.  prem.

COMPANY NEWS

▶ What Are the Implied Volatilities of the Top OFS Companies?   [Jun-28-17 10:36AM  Market Realist]
▶ Correlation between Weatherford and Crude Oil on June 23   [Jun-26-17 04:35PM  Market Realist]
▶ Last Weeks Crucial Energy Industry Updates   [10:21AM  Market Realist]
▶ iQ100 up over twenty percent   [Jun-23-17 02:57PM  CNBC Videos]
▶ How Nabors Industries Is Valued Compared to Its Peers   [Jun-21-17 02:35PM  Market Realist]
▶ Why Is Nabors Industries Stock Price Bearish?   [10:26AM  Market Realist]
▶ The top 25% in a year   [Jun-19-17 01:54PM  CNBC Videos]
▶ What Was Weatherfords Correlation with Crude Oil on June 7?   [Jun-12-17 10:36AM  Market Realist]
▶ Whats Patterson-UTI Energys Valuation Compared to Peers?   [Jun-07-17 02:35PM  Market Realist]
▶ Unusual Activity: Oasis Petroleum   [Jun-01-17 01:28PM  CNBC Videos]
▶ Bullish signs for energy stocks   [May-24-17 01:29PM  CNBC Videos]
▶ Your first trade for Thursday, May 11   [May-11-17 10:29AM  CNBC]
▶ Final Trades: Valeant, Allergan and more   [09:59AM  CNBC Videos]
▶ Options say these two stocks are heading higher   [May-10-17 01:48PM  CNBC Videos]
▶ Inside Weatherfords One-Year Decline   [May-08-17 12:09PM  Market Realist]
▶ What Wall Street Projects for Nabors after 1Q17 Earnings   [May-02-17 09:10AM  Market Realist]
▶ How Nabors Industries Segments Performed in 1Q17   [May-01-17 05:35PM  Market Realist]
▶ Did Nabors Industries Beat 1Q17 Estimates?   [03:57PM  Market Realist]
▶ Earnings and Oil Torpedoed Oil Service Stocks Today   [Apr-27-17 04:10PM  Motley Fool]
▶ Nabors reports 1Q loss   [Apr-26-17 07:36PM  Associated Press]
▶ Nabors Announces First Quarter Results   [06:50PM  PR Newswire]
▶ Nabors Industriess Correlation with Crude Oil on April 19   [Apr-24-17 10:36AM  Market Realist]
▶ Factors That Affected Nabors Industries in 4Q16   [Apr-21-17 10:37AM  Market Realist]
▶ How Much Weatherford Fell in the Year through April 13   [Apr-17-17 02:54PM  Market Realist]
▶ 3 Great Reasons to Buy Helmerich & Payne, Inc.   [Apr-14-17 11:14AM  Motley Fool]
▶ How Much Weatherford Has Fallen in a Year   [Apr-10-17 02:10PM  Market Realist]
▶ Leon Cooperman Recommends 4 Stocks   [Apr-05-17 07:28PM  GuruFocus.com]
▶ Worst Oilfield Services Stocks in 1Q17 by Returns   [Apr-03-17 01:35PM  Market Realist]
▶ Schlumberger and Weatherford form JV targeting North America   [Mar-24-17 06:35PM  at bizjournals.com]
▶ Whats PTENs Correlation with Crude in March?   [09:07AM  Market Realist]
▶ Write-Downs Weigh On Nabors Industries' Profitability   [Mar-03-17 04:02PM  at Forbes]
▶ [$$] Three Energy Picks Post Earnings   [Mar-02-17 10:54AM  at Barrons.com]
Stock chart of NBR Financial statements of NBR Annual reports of NBR
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.