Intrinsic value of PBF Energy - PBF

Previous Close

$20.09

  Intrinsic Value

$590.63

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

+1462%

Previous close

$20.09

 
Intrinsic value

$590.63

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

+1462%

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

We calculate the intrinsic value of PBF 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 2.3

 

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, %
  21.30
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  15,920
  25,472
  39,354
  58,854
  85,395
  120,479
  165,631
  222,326
  291,928
  375,640
  474,464
  589,177
  720,325
  868,234
  1,033,027
  1,214,656
  1,412,937
  1,627,585
  1,858,253
  2,104,569
  2,366,160
  2,642,686
  2,933,858
  3,239,456
  3,559,340
  3,893,461
  4,241,865
  4,604,697
  4,982,201
  5,374,719
  5,782,691
Variable operating expenses, $m
 
  24,224
  37,426
  55,970
  81,210
  114,576
  157,515
  211,432
  277,623
  357,234
  451,215
  560,307
  685,029
  825,690
  982,409
  1,155,138
  1,343,703
  1,547,833
  1,767,199
  2,001,445
  2,250,218
  2,513,194
  2,790,099
  3,080,723
  3,384,932
  3,702,681
  4,034,013
  4,379,067
  4,738,073
  5,111,358
  5,499,339
Fixed operating expenses, $m
 
  302
  310
  318
  326
  334
  342
  351
  359
  368
  378
  387
  397
  407
  417
  427
  438
  449
  460
  472
  483
  495
  508
  521
  534
  547
  561
  575
  589
  604
  619
Total operating expenses, $m
  15,422
  24,526
  37,736
  56,288
  81,536
  114,910
  157,857
  211,783
  277,982
  357,602
  451,593
  560,694
  685,426
  826,097
  982,826
  1,155,565
  1,344,141
  1,548,282
  1,767,659
  2,001,917
  2,250,701
  2,513,689
  2,790,607
  3,081,244
  3,385,466
  3,703,228
  4,034,574
  4,379,642
  4,738,662
  5,111,962
  5,499,958
Operating income, $m
  499
  946
  1,618
  2,566
  3,859
  5,570
  7,774
  10,543
  13,945
  18,038
  22,871
  28,483
  34,899
  42,137
  50,201
  59,091
  68,796
  79,303
  90,594
  102,652
  115,458
  128,996
  143,251
  158,213
  173,874
  190,233
  207,291
  225,056
  243,539
  262,758
  282,733
EBITDA, $m
  732
  1,320
  2,196
  3,430
  5,113
  7,339
  10,206
  13,808
  18,231
  23,553
  29,837
  37,133
  45,475
  54,885
  65,369
  76,925
  89,541
  103,200
  117,878
  133,553
  150,200
  167,797
  186,328
  205,776
  226,134
  247,399
  269,572
  292,664
  316,690
  341,672
  367,638
Interest expense (income), $m
  146
  154
  397
  751
  1,248
  1,924
  2,818
  3,969
  5,414
  7,187
  9,321
  11,839
  14,762
  18,104
  21,873
  26,072
  30,701
  35,754
  41,223
  47,101
  53,378
  60,044
  67,091
  74,511
  82,298
  90,449
  98,964
  107,842
  117,088
  126,708
  136,710
Earnings before tax, $m
  363
  792
  1,221
  1,815
  2,611
  3,645
  4,955
  6,574
  8,531
  10,851
  13,551
  16,644
  20,137
  24,033
  28,328
  33,018
  38,095
  43,549
  49,371
  55,551
  62,080
  68,952
  76,160
  83,702
  91,576
  99,783
  108,327
  117,214
  126,451
  136,050
  146,023
Tax expense, $m
  137
  214
  330
  490
  705
  984
  1,338
  1,775
  2,303
  2,930
  3,659
  4,494
  5,437
  6,489
  7,649
  8,915
  10,286
  11,758
  13,330
  14,999
  16,762
  18,617
  20,563
  22,600
  24,726
  26,941
  29,248
  31,648
  34,142
  36,733
  39,426
Net income, $m
  171
  578
  891
  1,325
  1,906
  2,661
  3,617
  4,799
  6,228
  7,921
  9,892
  12,150
  14,700
  17,544
  20,680
  24,103
  27,809
  31,791
  36,041
  40,552
  45,319
  50,335
  55,597
  61,103
  66,851
  72,842
  79,079
  85,566
  92,309
  99,316
  106,597

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  786
  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
  7,622
  10,937
  16,897
  25,270
  36,666
  51,730
  71,117
  95,460
  125,345
  161,288
  203,720
  252,974
  309,285
  372,793
  443,550
  521,535
  606,671
  698,834
  797,876
  903,636
  1,015,955
  1,134,687
  1,259,707
  1,390,921
  1,528,270
  1,671,731
  1,821,324
  1,977,113
  2,139,202
  2,307,737
  2,482,907
Adjusted assets (=assets-cash), $m
  6,836
  10,937
  16,897
  25,270
  36,666
  51,730
  71,117
  95,460
  125,345
  161,288
  203,720
  252,974
  309,285
  372,793
  443,550
  521,535
  606,671
  698,834
  797,876
  903,636
  1,015,955
  1,134,687
  1,259,707
  1,390,921
  1,528,270
  1,671,731
  1,821,324
  1,977,113
  2,139,202
  2,307,737
  2,482,907
Revenue / Adjusted assets
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
  2.329
Average production assets, $m
  2,939
  4,712
  7,281
  10,888
  15,798
  22,289
  30,642
  41,130
  54,007
  69,493
  87,776
  108,998
  133,260
  160,623
  191,110
  224,711
  261,393
  301,103
  343,777
  389,345
  437,740
  488,897
  542,764
  599,299
  658,478
  720,290
  784,745
  851,869
  921,707
  994,323
  1,069,798
Working capital, $m
  1,350
  968
  1,495
  2,236
  3,245
  4,578
  6,294
  8,448
  11,093
  14,274
  18,030
  22,389
  27,372
  32,993
  39,255
  46,157
  53,692
  61,848
  70,614
  79,974
  89,914
  100,422
  111,487
  123,099
  135,255
  147,952
  161,191
  174,978
  189,324
  204,239
  219,742
Total debt, $m
  2,148
  5,443
  10,289
  17,096
  26,360
  38,608
  54,369
  74,160
  98,456
  127,678
  162,175
  202,219
  248,000
  299,631
  357,157
  420,559
  489,775
  564,703
  645,224
  731,207
  822,523
  919,052
  1,020,693
  1,127,370
  1,239,034
  1,355,668
  1,477,288
  1,603,944
  1,735,722
  1,872,741
  2,015,154
Total liabilities, $m
  5,597
  8,892
  13,738
  20,545
  29,809
  42,057
  57,818
  77,609
  101,905
  131,127
  165,624
  205,668
  251,449
  303,080
  360,606
  424,008
  493,224
  568,152
  648,673
  734,656
  825,972
  922,501
  1,024,142
  1,130,819
  1,242,483
  1,359,117
  1,480,737
  1,607,393
  1,739,171
  1,876,190
  2,018,603
Total equity, $m
  2,025
  2,045
  3,160
  4,726
  6,857
  9,674
  13,299
  17,851
  23,439
  30,161
  38,096
  47,306
  57,836
  69,712
  82,944
  97,527
  113,447
  130,682
  149,203
  168,980
  189,984
  212,186
  235,565
  260,102
  285,786
  312,614
  340,588
  369,720
  400,031
  431,547
  464,304
Total liabilities and equity, $m
  7,622
  10,937
  16,898
  25,271
  36,666
  51,731
  71,117
  95,460
  125,344
  161,288
  203,720
  252,974
  309,285
  372,792
  443,550
  521,535
  606,671
  698,834
  797,876
  903,636
  1,015,956
  1,134,687
  1,259,707
  1,390,921
  1,528,269
  1,671,731
  1,821,325
  1,977,113
  2,139,202
  2,307,737
  2,482,907
Debt-to-equity ratio
  1.061
  2.660
  3.260
  3.620
  3.840
  3.990
  4.090
  4.150
  4.200
  4.230
  4.260
  4.270
  4.290
  4.300
  4.310
  4.310
  4.320
  4.320
  4.320
  4.330
  4.330
  4.330
  4.330
  4.330
  4.340
  4.340
  4.340
  4.340
  4.340
  4.340
  4.340
Adjusted equity ratio
  0.181
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187
  0.187

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  171
  578
  891
  1,325
  1,906
  2,661
  3,617
  4,799
  6,228
  7,921
  9,892
  12,150
  14,700
  17,544
  20,680
  24,103
  27,809
  31,791
  36,041
  40,552
  45,319
  50,335
  55,597
  61,103
  66,851
  72,842
  79,079
  85,566
  92,309
  99,316
  106,597
Depreciation, amort., depletion, $m
  233
  374
  578
  864
  1,254
  1,769
  2,432
  3,264
  4,286
  5,515
  6,966
  8,651
  10,576
  12,748
  15,167
  17,834
  20,746
  23,897
  27,284
  30,900
  34,741
  38,801
  43,076
  47,563
  52,260
  57,166
  62,281
  67,609
  73,151
  78,915
  84,905
Funds from operations, $m
  1,035
  952
  1,469
  2,189
  3,160
  4,430
  6,049
  8,064
  10,514
  13,436
  16,858
  20,801
  25,276
  30,292
  35,847
  41,938
  48,555
  55,688
  63,325
  71,453
  80,060
  89,136
  98,674
  108,666
  119,111
  130,008
  141,360
  153,175
  165,461
  178,231
  191,501
Change in working capital, $m
  383
  363
  528
  741
  1,009
  1,333
  1,716
  2,154
  2,645
  3,181
  3,755
  4,359
  4,984
  5,621
  6,262
  6,902
  7,535
  8,157
  8,765
  9,360
  9,940
  10,508
  11,065
  11,613
  12,156
  12,697
  13,239
  13,788
  14,345
  14,916
  15,503
Cash from operations, $m
  652
  589
  942
  1,448
  2,151
  3,097
  4,334
  5,909
  7,869
  10,255
  13,103
  16,441
  20,293
  24,671
  29,585
  35,036
  41,020
  47,531
  54,559
  62,093
  70,119
  78,628
  87,609
  97,053
  106,955
  117,311
  128,121
  139,387
  151,115
  163,315
  175,998
Maintenance CAPEX, $m
  0
  -233
  -374
  -578
  -864
  -1,254
  -1,769
  -2,432
  -3,264
  -4,286
  -5,515
  -6,966
  -8,651
  -10,576
  -12,748
  -15,167
  -17,834
  -20,746
  -23,897
  -27,284
  -30,900
  -34,741
  -38,801
  -43,076
  -47,563
  -52,260
  -57,166
  -62,281
  -67,609
  -73,151
  -78,915
New CAPEX, $m
  -540
  -1,773
  -2,568
  -3,608
  -4,910
  -6,491
  -8,353
  -10,488
  -12,876
  -15,487
  -18,282
  -21,222
  -24,262
  -27,363
  -30,487
  -33,601
  -36,682
  -39,710
  -42,674
  -45,568
  -48,394
  -51,157
  -53,867
  -56,536
  -59,179
  -61,812
  -64,455
  -67,124
  -69,838
  -72,616
  -75,475
Cash from investing activities, $m
  -1,394
  -2,006
  -2,942
  -4,186
  -5,774
  -7,745
  -10,122
  -12,920
  -16,140
  -19,773
  -23,797
  -28,188
  -32,913
  -37,939
  -43,235
  -48,768
  -54,516
  -60,456
  -66,571
  -72,852
  -79,294
  -85,898
  -92,668
  -99,612
  -106,742
  -114,072
  -121,621
  -129,405
  -137,447
  -145,767
  -154,390
Free cash flow, $m
  -742
  -1,417
  -2,001
  -2,737
  -3,623
  -4,648
  -5,788
  -7,011
  -8,271
  -9,518
  -10,695
  -11,747
  -12,620
  -13,268
  -13,650
  -13,733
  -13,496
  -12,924
  -12,011
  -10,760
  -9,175
  -7,270
  -5,059
  -2,559
  213
  3,239
  6,500
  9,982
  13,669
  17,548
  21,609
Issuance/(repayment) of debt, $m
  303
  3,335
  4,846
  6,807
  9,265
  12,247
  15,762
  19,791
  24,296
  29,222
  34,497
  40,044
  45,781
  51,632
  57,525
  63,403
  69,215
  74,929
  80,521
  85,983
  91,315
  96,529
  101,642
  106,677
  111,664
  116,634
  121,620
  126,656
  131,778
  137,019
  142,414
Issuance/(repurchase) of shares, $m
  413
  188
  223
  241
  225
  156
  8
  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  
  661
  3,523
  5,069
  7,048
  9,490
  12,403
  15,770
  19,791
  24,296
  29,222
  34,497
  40,044
  45,781
  51,632
  57,525
  63,403
  69,215
  74,929
  80,521
  85,983
  91,315
  96,529
  101,642
  106,677
  111,664
  116,634
  121,620
  126,656
  131,778
  137,019
  142,414
Total cash flow (excl. dividends), $m
  -81
  2,105
  3,069
  4,311
  5,867
  7,756
  9,981
  12,780
  16,025
  19,704
  23,802
  28,297
  33,161
  38,364
  43,876
  49,669
  55,719
  62,005
  68,510
  75,223
  82,140
  89,259
  96,582
  104,118
  111,877
  119,872
  128,120
  136,638
  145,446
  154,567
  164,023
Retained Cash Flow (-), $m
  -378
  -766
  -1,115
  -1,566
  -2,131
  -2,817
  -3,625
  -4,552
  -5,588
  -6,721
  -7,935
  -9,211
  -10,530
  -11,876
  -13,232
  -14,583
  -15,920
  -17,234
  -18,521
  -19,777
  -21,004
  -22,203
  -23,379
  -24,537
  -25,684
  -26,827
  -27,974
  -29,132
  -30,311
  -31,516
  -32,757
Prev. year cash balance distribution, $m
 
  746
  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
 
  2,085
  1,954
  2,745
  3,736
  4,939
  6,356
  8,227
  10,437
  12,983
  15,868
  19,086
  22,630
  26,488
  30,644
  35,086
  39,799
  44,770
  49,989
  55,446
  61,136
  67,056
  73,204
  79,581
  86,193
  93,045
  100,146
  107,505
  115,136
  123,051
  131,266
Discount rate, %
 
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.12
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.82
  25.01
  26.26
  27.58
PV of cash for distribution, $m
 
  1,954
  1,706
  2,216
  2,771
  3,339
  3,885
  4,507
  5,076
  5,552
  5,903
  6,108
  6,156
  6,048
  5,794
  5,416
  4,940
  4,398
  3,820
  3,238
  2,678
  2,159
  1,696
  1,297
  966
  699
  492
  336
  222
  142
  88
Current shareholders' claim on cash, %
  100
  88.5
  80.7
  75.6
  72.5
  71.1
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0
  71.0

PBF Energy Inc., together with its subsidiaries, engages in the refining and supply of petroleum products. It produces gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, lubricants, petrochemicals, and asphalt, as well as unbranded transportation fuels, petrochemical feedstocks, blending components, and other petroleum products. The company sells its products in Northeast and Midwest of the United States, as well as in other regions of the United States and Canada. PBF Energy Inc. was founded in 2008 and is based in Parsippany, New Jersey.

FINANCIAL RATIOS  of  PBF Energy (PBF)

Valuation Ratios
P/E Ratio 12.8
Price to Sales 0.1
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 3.4
Price to Free Cash Flow 19.6
Growth Rates
Sales Growth Rate 21.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 29.8%
Cap. Spend. - 3 Yr. Gr. Rate 5.4%
Financial Strength
Quick Ratio 20
Current Ratio 0
LT Debt to Equity 104.1%
Total Debt to Equity 106.1%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.8%
Ret/ On Assets - 3 Yr. Avg. 3.2%
Return On Total Capital 4.5%
Ret/ On T. Cap. - 3 Yr. Avg. 2.5%
Return On Equity 9.3%
Return On Equity - 3 Yr. Avg. 5.1%
Asset Turnover 2.3
Profitability Ratios
Gross Margin 14.9%
Gross Margin - 3 Yr. Avg. 11.1%
EBITDA Margin 4.7%
EBITDA Margin - 3 Yr. Avg. 3.6%
Operating Margin 3.1%
Oper. Margin - 3 Yr. Avg. 2.2%
Pre-Tax Margin 2.3%
Pre-Tax Margin - 3 Yr. Avg. 1.6%
Net Profit Margin 1.1%
Net Profit Margin - 3 Yr. Avg. 0.7%
Effective Tax Rate 37.7%
Eff/ Tax Rate - 3 Yr. Avg. 9.7%
Payout Ratio 68.4%

PBF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PBF stock intrinsic value calculation we used $15920 million for the last fiscal year's total revenue generated by PBF Energy. The default revenue input number comes from 2016 income statement of PBF Energy. 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 PBF stock valuation model: a) initial revenue growth rate of 60% 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 6.7%, whose default value for PBF is calculated based on our internal credit rating of PBF Energy, 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 PBF Energy.
    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 PBF stock the variable cost ratio is equal to 95.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $295 million in the base year in the intrinsic value calculation for PBF 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 7.3% for PBF Energy.

Corporate tax rate of 27% is the nominal tax rate for PBF Energy. 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 PBF 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 PBF are equal to 18.5%.

Life of production assets of 12.6 years is the average useful life of capital assets used in PBF Energy 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 PBF is equal to 3.8%. 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 - $2025 million for PBF Energy - 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 113.814 million for PBF Energy 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 PBF Energy at the current share price and the inputted number of shares is $2.3 billion.

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COMPANY NEWS

▶ U.S. Sanctions On Venezuela Could Boost Gasoline Prices   [Aug-15-17 05:00PM  Oilprice.com]
▶ These Energy Stocks Rose the Most Last Week   [Aug-08-17 09:36AM  Market Realist]
▶ PBF Energy reports 2Q loss   [Aug-03-17 07:41PM  Associated Press]
▶ A Pre-Earnings Peek at Valero Energys Estimated Stock Price   [Jul-21-17 09:10AM  Market Realist]
▶ Venezuelas National Oil Company On Its Last Legs   [Jul-18-17 01:00PM  Oilprice.com]
▶ Refiners Tumble on Proposed Biofuel Quotas   [Jul-06-17 04:01PM  GuruFocus.com]
▶ [$$] Tesoro's on Top   [03:16PM  Barrons.com]
▶ [$$] West Coast Energy Market Could Rise   [Jul-03-17 11:06AM  Barrons.com]
▶ PBF Energy to Attend J.P. Morgan Energy Conference   [Jun-23-17 04:30PM  PR Newswire]
▶ PBF Energy to Attend Wells Fargo Energy Conference   [Jun-16-17 04:30PM  PR Newswire]
▶ Behind Valeros Recent Correlation with WTI   [07:35AM  Market Realist]
▶ ETFs with exposure to PBF Energy, Inc. : June 12, 2017   [Jun-12-17 02:19PM  Capital Cube]
▶ ETFs with exposure to PBF Energy, Inc. : May 30, 2017   [May-30-17 12:37PM  Capital Cube]
▶ Has Short Interest in Marathon Petroleum Fallen?   [May-23-17 09:06AM  Market Realist]
▶ ETFs with exposure to PBF Energy, Inc. : May 19, 2017   [May-19-17 02:05PM  Capital Cube]
▶ PBF Energy to Attend Industry Conferences   [May-05-17 12:00PM  PR Newswire]
▶ PBF Energy reports 1Q loss   [May-04-17 06:40AM  Associated Press]
▶ Board says 2015 California refinery blast was preventable   [May-03-17 07:37PM  Associated Press]
▶ Oil and Gas Stock Roundup: Refining Comes Roaring Back   [Apr-29-17 04:29PM  Motley Fool]
▶ Short Interest Impacts Integrated Energy and Refiner Stocks   [Mar-31-17 10:53AM  Market Realist]
▶ Near-Term Uncertainties to Weigh on These Energy Stocks   [Mar-28-17 05:47PM  Investopedia]
▶ [$$] Border-Adjustment Tax Divides Energy Sector   [12:00AM  at The Wall Street Journal]
▶ [$$] Border-Adjustment Tax Divides Energy Sector   [Feb-23-17 07:00PM  at The Wall Street Journal]
Stock chart of PBF Financial statements of PBF
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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