Intrinsic value of NiSource - NI

Previous Close

$24.19

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$24.19

 
Intrinsic value

$61.02

 
Up/down potential

+152%

 
Rating

str. buy

 
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 NI 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 7.9

 

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, %
  -3.42
  18.10
  16.79
  15.61
  14.55
  13.59
  12.74
  11.96
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.18
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
  5.85
  5.76
  5.69
  5.62
Revenue, $m
  4,476
  5,306
  6,197
  7,165
  8,207
  9,323
  10,510
  11,767
  13,093
  14,486
  15,945
  17,471
  19,063
  20,721
  22,447
  24,242
  26,108
  28,047
  30,063
  32,157
  34,334
  36,597
  38,952
  41,402
  43,952
  46,609
  49,378
  52,265
  55,276
  58,419
  61,701
Variable operating expenses, $m
 
  4,474
  5,197
  5,982
  6,828
  7,733
  8,697
  9,717
  10,792
  11,922
  13,107
  14,175
  15,467
  16,812
  18,213
  19,669
  21,183
  22,757
  24,392
  26,091
  27,857
  29,694
  31,604
  33,592
  35,661
  37,817
  40,064
  42,406
  44,849
  47,399
  50,062
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
  3,634
  4,474
  5,197
  5,982
  6,828
  7,733
  8,697
  9,717
  10,792
  11,922
  13,107
  14,175
  15,467
  16,812
  18,213
  19,669
  21,183
  22,757
  24,392
  26,091
  27,857
  29,694
  31,604
  33,592
  35,661
  37,817
  40,064
  42,406
  44,849
  47,399
  50,062
Operating income, $m
  858
  832
  1,000
  1,182
  1,379
  1,590
  1,813
  2,051
  2,301
  2,563
  2,839
  3,296
  3,596
  3,909
  4,234
  4,573
  4,925
  5,291
  5,671
  6,066
  6,477
  6,904
  7,348
  7,810
  8,291
  8,792
  9,315
  9,859
  10,427
  11,020
  11,639
EBITDA, $m
  1,405
  1,151
  1,344
  1,554
  1,780
  2,022
  2,279
  2,552
  2,839
  3,141
  3,458
  3,788
  4,133
  4,493
  4,867
  5,257
  5,661
  6,082
  6,519
  6,973
  7,445
  7,936
  8,446
  8,977
  9,530
  10,107
  10,707
  11,333
  11,986
  12,667
  13,379
Interest expense (income), $m
  338
  355
  473
  603
  744
  896
  1,059
  1,233
  1,416
  1,610
  1,813
  2,026
  2,249
  2,481
  2,724
  2,976
  3,238
  3,510
  3,793
  4,088
  4,393
  4,711
  5,042
  5,386
  5,743
  6,116
  6,504
  6,908
  7,330
  7,769
  8,228
Earnings before tax, $m
  510
  477
  527
  580
  635
  693
  754
  818
  885
  954
  1,026
  1,269
  1,347
  1,427
  1,511
  1,597
  1,687
  1,781
  1,878
  1,978
  2,083
  2,192
  2,306
  2,424
  2,548
  2,676
  2,811
  2,951
  3,098
  3,251
  3,411
Tax expense, $m
  182
  129
  142
  156
  171
  187
  204
  221
  239
  258
  277
  343
  364
  385
  408
  431
  456
  481
  507
  534
  562
  592
  623
  655
  688
  723
  759
  797
  836
  878
  921
Net income, $m
  332
  348
  385
  423
  464
  506
  551
  597
  646
  696
  749
  927
  983
  1,042
  1,103
  1,166
  1,232
  1,300
  1,371
  1,444
  1,521
  1,600
  1,683
  1,770
  1,860
  1,954
  2,052
  2,154
  2,261
  2,373
  2,490

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  26
  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
  18,692
  22,018
  25,714
  29,729
  34,054
  38,684
  43,610
  48,827
  54,327
  60,107
  66,163
  72,494
  79,099
  85,980
  93,142
  100,590
  108,333
  116,379
  124,741
  133,431
  142,463
  151,856
  161,625
  171,791
  182,375
  193,400
  204,889
  216,867
  229,363
  242,403
  256,019
Adjusted assets (=assets-cash), $m
  18,666
  22,018
  25,714
  29,729
  34,054
  38,684
  43,610
  48,827
  54,327
  60,107
  66,163
  72,494
  79,099
  85,980
  93,142
  100,590
  108,333
  116,379
  124,741
  133,431
  142,463
  151,856
  161,625
  171,791
  182,375
  193,400
  204,889
  216,867
  229,363
  242,403
  256,019
Revenue / Adjusted assets
  0.240
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
  0.241
Average production assets, $m
  633
  748
  874
  1,010
  1,157
  1,315
  1,482
  1,659
  1,846
  2,043
  2,248
  2,463
  2,688
  2,922
  3,165
  3,418
  3,681
  3,955
  4,239
  4,534
  4,841
  5,160
  5,492
  5,838
  6,197
  6,572
  6,962
  7,369
  7,794
  8,237
  8,700
Working capital, $m
  -1,690
  159
  186
  215
  246
  280
  315
  353
  393
  435
  478
  524
  572
  622
  673
  727
  783
  841
  902
  965
  1,030
  1,098
  1,169
  1,242
  1,319
  1,398
  1,481
  1,568
  1,658
  1,753
  1,851
Total debt, $m
  7,909
  10,506
  13,397
  16,536
  19,918
  23,539
  27,391
  31,471
  35,772
  40,292
  45,028
  49,978
  55,143
  60,524
  66,125
  71,950
  78,004
  84,297
  90,835
  97,631
  104,694
  112,039
  119,679
  127,629
  135,906
  144,527
  153,511
  162,878
  172,650
  182,847
  193,495
Total liabilities, $m
  14,621
  17,218
  20,109
  23,248
  26,630
  30,251
  34,103
  38,183
  42,484
  47,004
  51,740
  56,690
  61,855
  67,236
  72,837
  78,662
  84,716
  91,009
  97,547
  104,343
  111,406
  118,751
  126,391
  134,341
  142,618
  151,239
  160,223
  169,590
  179,362
  189,559
  200,207
Total equity, $m
  4,071
  4,800
  5,606
  6,481
  7,424
  8,433
  9,507
  10,644
  11,843
  13,103
  14,424
  15,804
  17,243
  18,744
  20,305
  21,929
  23,617
  25,371
  27,194
  29,088
  31,057
  33,105
  35,234
  37,451
  39,758
  42,161
  44,666
  47,277
  50,001
  52,844
  55,812
Total liabilities and equity, $m
  18,692
  22,018
  25,715
  29,729
  34,054
  38,684
  43,610
  48,827
  54,327
  60,107
  66,164
  72,494
  79,098
  85,980
  93,142
  100,591
  108,333
  116,380
  124,741
  133,431
  142,463
  151,856
  161,625
  171,792
  182,376
  193,400
  204,889
  216,867
  229,363
  242,403
  256,019
Debt-to-equity ratio
  1.943
  2.190
  2.390
  2.550
  2.680
  2.790
  2.880
  2.960
  3.020
  3.070
  3.120
  3.160
  3.200
  3.230
  3.260
  3.280
  3.300
  3.320
  3.340
  3.360
  3.370
  3.380
  3.400
  3.410
  3.420
  3.430
  3.440
  3.450
  3.450
  3.460
  3.470
Adjusted equity ratio
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218
  0.218

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  332
  348
  385
  423
  464
  506
  551
  597
  646
  696
  749
  927
  983
  1,042
  1,103
  1,166
  1,232
  1,300
  1,371
  1,444
  1,521
  1,600
  1,683
  1,770
  1,860
  1,954
  2,052
  2,154
  2,261
  2,373
  2,490
Depreciation, amort., depletion, $m
  547
  319
  344
  371
  401
  432
  465
  501
  538
  578
  619
  493
  538
  584
  633
  684
  736
  791
  848
  907
  968
  1,032
  1,098
  1,168
  1,239
  1,314
  1,392
  1,474
  1,559
  1,647
  1,740
Funds from operations, $m
  511
  667
  729
  794
  864
  938
  1,016
  1,098
  1,184
  1,274
  1,367
  1,419
  1,521
  1,626
  1,736
  1,850
  1,968
  2,091
  2,218
  2,351
  2,489
  2,632
  2,782
  2,937
  3,099
  3,268
  3,444
  3,628
  3,820
  4,020
  4,230
Change in working capital, $m
  -292
  24
  27
  29
  31
  33
  36
  38
  40
  42
  44
  46
  48
  50
  52
  54
  56
  58
  60
  63
  65
  68
  71
  74
  77
  80
  83
  87
  90
  94
  98
Cash from operations, $m
  803
  567
  702
  765
  833
  905
  980
  1,060
  1,144
  1,232
  1,324
  1,374
  1,473
  1,577
  1,684
  1,796
  1,912
  2,033
  2,158
  2,288
  2,424
  2,565
  2,711
  2,864
  3,023
  3,189
  3,361
  3,542
  3,730
  3,926
  4,131
Maintenance CAPEX, $m
  0
  -127
  -150
  -175
  -202
  -231
  -263
  -296
  -332
  -369
  -409
  -450
  -493
  -538
  -584
  -633
  -684
  -736
  -791
  -848
  -907
  -968
  -1,032
  -1,098
  -1,168
  -1,239
  -1,314
  -1,392
  -1,474
  -1,559
  -1,647
New CAPEX, $m
  -1,585
  -116
  -126
  -136
  -147
  -157
  -167
  -177
  -187
  -196
  -206
  -215
  -224
  -234
  -243
  -253
  -263
  -273
  -284
  -295
  -307
  -319
  -332
  -345
  -360
  -375
  -390
  -407
  -425
  -443
  -463
Cash from investing activities, $m
  -1,583
  -243
  -276
  -311
  -349
  -388
  -430
  -473
  -519
  -565
  -615
  -665
  -717
  -772
  -827
  -886
  -947
  -1,009
  -1,075
  -1,143
  -1,214
  -1,287
  -1,364
  -1,443
  -1,528
  -1,614
  -1,704
  -1,799
  -1,899
  -2,002
  -2,110
Free cash flow, $m
  -780
  325
  427
  454
  484
  516
  550
  587
  625
  666
  709
  709
  756
  805
  856
  910
  965
  1,023
  1,083
  1,145
  1,210
  1,277
  1,347
  1,420
  1,496
  1,574
  1,657
  1,742
  1,831
  1,924
  2,021
Issuance/(repayment) of debt, $m
  982
  2,623
  2,891
  3,139
  3,383
  3,620
  3,853
  4,079
  4,302
  4,520
  4,736
  4,950
  5,165
  5,381
  5,601
  5,825
  6,055
  6,292
  6,539
  6,795
  7,064
  7,345
  7,640
  7,950
  8,277
  8,621
  8,984
  9,367
  9,771
  10,198
  10,648
Issuance/(repurchase) of shares, $m
  14
  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  
  997
  2,623
  2,891
  3,139
  3,383
  3,620
  3,853
  4,079
  4,302
  4,520
  4,736
  4,950
  5,165
  5,381
  5,601
  5,825
  6,055
  6,292
  6,539
  6,795
  7,064
  7,345
  7,640
  7,950
  8,277
  8,621
  8,984
  9,367
  9,771
  10,198
  10,648
Total cash flow (excl. dividends), $m
  217
  2,948
  3,318
  3,593
  3,866
  4,136
  4,403
  4,666
  4,927
  5,186
  5,445
  5,659
  5,921
  6,186
  6,457
  6,734
  7,020
  7,315
  7,622
  7,941
  8,273
  8,622
  8,987
  9,370
  9,772
  10,196
  10,641
  11,109
  11,603
  12,122
  12,669
Retained Cash Flow (-), $m
  -227
  -729
  -806
  -875
  -943
  -1,009
  -1,074
  -1,137
  -1,199
  -1,260
  -1,320
  -1,380
  -1,440
  -1,500
  -1,561
  -1,624
  -1,688
  -1,754
  -1,823
  -1,894
  -1,969
  -2,047
  -2,130
  -2,216
  -2,307
  -2,403
  -2,505
  -2,611
  -2,724
  -2,843
  -2,968
Prev. year cash balance 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
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
 
  2,219
  2,512
  2,718
  2,923
  3,127
  3,329
  3,529
  3,728
  3,926
  4,125
  4,279
  4,481
  4,686
  4,896
  5,111
  5,332
  5,561
  5,799
  6,046
  6,304
  6,574
  6,857
  7,154
  7,465
  7,792
  8,136
  8,498
  8,879
  9,279
  9,701
Discount rate, %
 
  10.00
  10.50
  11.03
  11.58
  12.16
  12.76
  13.40
  14.07
  14.77
  15.51
  16.29
  17.10
  17.96
  18.86
  19.80
  20.79
  21.83
  22.92
  24.07
  25.27
  26.53
  27.86
  29.25
  30.72
  32.25
  33.86
  35.56
  37.33
  39.20
  41.16
PV of cash for distribution, $m
 
  2,017
  2,057
  1,986
  1,886
  1,762
  1,619
  1,463
  1,300
  1,136
  975
  814
  674
  547
  436
  340
  260
  194
  141
  100
  70
  47
  31
  20
  12
  7
  4
  2
  1
  1
  0
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

NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. The company operates through two segments, Gas Distribution Operations and Electric Operations. It provides natural gas service and transportation to residential, commercial, and industrial customers; generates, transmits, and distributes electricity; and provides wholesale and transmission transaction services. The company serves approximately 3.4 million natural gas customers and 466,000 electricity customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts. It also owns and operates three coal-fired electric generating stations with a net capability of 2,540 megawatts (MW), three gas-fired generating units with a net capability of 196 MW, and two hydroelectric generating plants with a net capability of 10 MW, as well as a combined cycle gas turbine plant with a capacity of 535 MW. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1912 and is headquartered in Merrillville, Indiana.

FINANCIAL RATIOS  of  NiSource (NI)

Valuation Ratios
P/E Ratio 23.5
Price to Sales 1.7
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 9.7
Price to Free Cash Flow -10
Growth Rates
Sales Growth Rate -3.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 16.5%
Cap. Spend. - 3 Yr. Gr. Rate -3.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 148.8%
Total Debt to Equity 194.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 3%
Ret/ On Assets - 3 Yr. Avg. 2.9%
Return On Total Capital 2.9%
Ret/ On T. Cap. - 3 Yr. Avg. 2.8%
Return On Equity 8.4%
Return On Equity - 3 Yr. Avg. 7.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 31%
EBITDA Margin - 3 Yr. Avg. 28.6%
Operating Margin 19.1%
Oper. Margin - 3 Yr. Avg. 16.4%
Pre-Tax Margin 11.4%
Pre-Tax Margin - 3 Yr. Avg. 8.9%
Net Profit Margin 7.4%
Net Profit Margin - 3 Yr. Avg. 7.9%
Effective Tax Rate 35.7%
Eff/ Tax Rate - 3 Yr. Avg. 38.9%
Payout Ratio 62%

NI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NI stock intrinsic value calculation we used $4493 million for the last fiscal year's total revenue generated by NiSource. The default revenue input number comes from 2016 income statement of NiSource. 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 NI stock valuation model: a) initial revenue growth rate of 18.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10%, whose default value for NI is calculated based on our internal credit rating of NiSource, 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 NiSource.
    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 NI stock the variable cost ratio is equal to 84.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NI 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 4.5% for NiSource.

Corporate tax rate of 27% is the nominal tax rate for NiSource. 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 NI 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 NI are equal to 14.1%.

Life of production assets of 4.2 years is the average useful life of capital assets used in NiSource 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 NI is equal to 3%. 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 - $4071 million for NiSource - 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 326.187 million for NiSource 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 NiSource at the current share price and the inputted number of shares is $7.9 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
ATO Atmos Energy 79.83 88.59  hold
CPK Chesapeake Uti 71.75 282.29  str.buy
EGAS Gas Natural 12.55 1.82  str.sell
CNP CenterPoint En 28.12 33.33  buy
DUK Duke Energy 82.21 177.37  str.buy
WGL WGL Holdings 82.14 36.76  str.sell
SPKE Spark Energy 36.55 3,187.43  str.buy

COMPANY NEWS

▶ NiSource Issues 2016 Integrated Annual Report   [Apr-06-17 07:00AM  PR Newswire]
▶ NiSource Declares Quarterly Common Dividend   [Mar-21-17 02:56PM  PR Newswire]
▶ NiSource Reports 2016 Earnings   [06:30AM  PR Newswire]
▶ Mark Kempic Named NiSource Chief Transformation Officer   [Jan-31-17 09:00AM  PR Newswire]
▶ NiSource Increases Dividend 6.1 Percent   [12:15PM  PR Newswire]
▶ NiSource Inc. (NI): Are Hedge Funds Right About This Stock?   [Dec-01-16 02:40PM  at Insider Monkey]
▶ NiSource Named to Dow Jones Sustainability Index   [Sep-14-16 09:00AM  PR Newswire]
Stock chart of NI Financial statements of NI
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.