Intrinsic value of PBF Energy - PBF

Previous Close

$32.94

  Intrinsic Value

$162.64

stock screener

  Rating & Target

str. buy

+394%

Previous close

$32.94

 
Intrinsic value

$162.64

 
Up/down potential

+394%

 
Rating

str. buy

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 3.6

 

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
  30.00
  27.50
  25.25
  23.23
  21.40
  19.76
  18.29
  16.96
  15.76
  14.69
  13.72
  12.85
  12.06
  11.35
  10.72
  10.15
  9.63
  9.17
  8.75
  8.38
  8.04
  7.74
  7.46
  7.22
  6.99
  6.79
  6.62
  6.45
  6.31
  6.18
Revenue, $m
  15,920
  20,696
  26,387
  33,050
  40,726
  49,443
  59,214
  70,041
  81,918
  94,830
  108,757
  123,675
  139,561
  156,393
  174,151
  192,819
  212,384
  232,842
  254,192
  276,440
  299,598
  323,684
  348,722
  374,744
  401,784
  429,886
  459,095
  489,466
  521,055
  553,925
  588,144
Variable operating expenses, $m
 
  19,682
  25,094
  31,431
  38,731
  47,020
  56,312
  66,609
  77,904
  90,184
  103,427
  117,615
  132,722
  148,730
  165,618
  183,370
  201,978
  221,433
  241,737
  262,895
  284,918
  307,823
  331,635
  356,381
  382,097
  408,821
  436,600
  465,482
  495,523
  526,782
  559,325
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
  19,984
  25,404
  31,749
  39,057
  47,354
  56,654
  66,960
  78,263
  90,552
  103,805
  118,002
  133,119
  149,137
  166,035
  183,797
  202,416
  221,882
  242,197
  263,367
  285,401
  308,318
  332,143
  356,902
  382,631
  409,368
  437,161
  466,057
  496,112
  527,386
  559,944
Operating income, $m
  499
  712
  983
  1,302
  1,670
  2,089
  2,559
  3,081
  3,655
  4,278
  4,951
  5,673
  6,442
  7,257
  8,117
  9,021
  9,969
  10,960
  11,995
  13,074
  14,197
  15,365
  16,580
  17,842
  19,154
  20,517
  21,935
  23,409
  24,943
  26,539
  28,200
EBITDA, $m
  732
  1,016
  1,370
  1,787
  2,268
  2,815
  3,429
  4,110
  4,857
  5,671
  6,548
  7,489
  8,491
  9,553
  10,674
  11,852
  13,087
  14,379
  15,728
  17,133
  18,596
  20,118
  21,700
  23,344
  25,053
  26,829
  28,676
  30,596
  32,593
  34,672
  36,836
Interest expense (income), $m
  146
  154
  276
  421
  590
  786
  1,008
  1,257
  1,533
  1,836
  2,165
  2,520
  2,900
  3,305
  3,734
  4,186
  4,662
  5,160
  5,682
  6,226
  6,793
  7,383
  7,997
  8,635
  9,298
  9,987
  10,703
  11,447
  12,221
  13,026
  13,864
Earnings before tax, $m
  363
  558
  707
  881
  1,080
  1,303
  1,551
  1,824
  2,122
  2,443
  2,787
  3,153
  3,542
  3,952
  4,383
  4,835
  5,307
  5,800
  6,314
  6,848
  7,404
  7,982
  8,583
  9,207
  9,856
  10,531
  11,232
  11,962
  12,722
  13,513
  14,337
Tax expense, $m
  137
  151
  191
  238
  291
  352
  419
  493
  573
  659
  752
  851
  956
  1,067
  1,183
  1,305
  1,433
  1,566
  1,705
  1,849
  1,999
  2,155
  2,317
  2,486
  2,661
  2,843
  3,033
  3,230
  3,435
  3,648
  3,871
Net income, $m
  171
  407
  516
  643
  788
  951
  1,132
  1,332
  1,549
  1,783
  2,034
  2,302
  2,586
  2,885
  3,200
  3,529
  3,874
  4,234
  4,609
  4,999
  5,405
  5,827
  6,266
  6,721
  7,195
  7,687
  8,200
  8,732
  9,287
  9,864
  10,466

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
  8,886
  11,330
  14,191
  17,487
  21,229
  25,424
  30,074
  35,173
  40,717
  46,697
  53,102
  59,923
  67,150
  74,775
  82,790
  91,191
  99,975
  109,142
  118,695
  128,638
  138,980
  149,731
  160,903
  172,514
  184,580
  197,121
  210,161
  223,725
  237,838
  252,531
Adjusted assets (=assets-cash), $m
  6,836
  8,886
  11,330
  14,191
  17,487
  21,229
  25,424
  30,074
  35,173
  40,717
  46,697
  53,102
  59,923
  67,150
  74,775
  82,790
  91,191
  99,975
  109,142
  118,695
  128,638
  138,980
  149,731
  160,903
  172,514
  184,580
  197,121
  210,161
  223,725
  237,838
  252,531
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
  3,829
  4,882
  6,114
  7,534
  9,147
  10,954
  12,958
  15,155
  17,544
  20,120
  22,880
  25,819
  28,933
  32,218
  35,671
  39,291
  43,076
  47,026
  51,141
  55,426
  59,882
  64,514
  69,328
  74,330
  79,529
  84,933
  90,551
  96,395
  102,476
  108,807
Working capital, $m
  1,350
  786
  1,003
  1,256
  1,548
  1,879
  2,250
  2,662
  3,113
  3,604
  4,133
  4,700
  5,303
  5,943
  6,618
  7,327
  8,071
  8,848
  9,659
  10,505
  11,385
  12,300
  13,251
  14,240
  15,268
  16,336
  17,446
  18,600
  19,800
  21,049
  22,349
Total debt, $m
  2,148
  3,775
  5,762
  8,088
  10,768
  13,810
  17,221
  21,001
  25,147
  29,654
  34,515
  39,723
  45,268
  51,144
  57,343
  63,859
  70,689
  77,831
  85,284
  93,050
  101,134
  109,542
  118,282
  127,365
  136,805
  146,614
  156,811
  167,412
  178,439
  189,913
  201,858
Total liabilities, $m
  5,597
  7,224
  9,211
  11,537
  14,217
  17,259
  20,670
  24,450
  28,596
  33,103
  37,964
  43,172
  48,717
  54,593
  60,792
  67,308
  74,138
  81,280
  88,733
  96,499
  104,583
  112,991
  121,731
  130,814
  140,254
  150,063
  160,260
  170,861
  181,888
  193,362
  205,307
Total equity, $m
  2,025
  1,662
  2,119
  2,654
  3,270
  3,970
  4,754
  5,624
  6,577
  7,614
  8,732
  9,930
  11,206
  12,557
  13,983
  15,482
  17,053
  18,695
  20,410
  22,196
  24,055
  25,989
  28,000
  30,089
  32,260
  34,516
  36,862
  39,300
  41,837
  44,476
  47,223
Total liabilities and equity, $m
  7,622
  8,886
  11,330
  14,191
  17,487
  21,229
  25,424
  30,074
  35,173
  40,717
  46,696
  53,102
  59,923
  67,150
  74,775
  82,790
  91,191
  99,975
  109,143
  118,695
  128,638
  138,980
  149,731
  160,903
  172,514
  184,579
  197,122
  210,161
  223,725
  237,838
  252,530
Debt-to-equity ratio
  1.061
  2.270
  2.720
  3.050
  3.290
  3.480
  3.620
  3.730
  3.820
  3.890
  3.950
  4.000
  4.040
  4.070
  4.100
  4.120
  4.150
  4.160
  4.180
  4.190
  4.200
  4.210
  4.220
  4.230
  4.240
  4.250
  4.250
  4.260
  4.270
  4.270
  4.270
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
  407
  516
  643
  788
  951
  1,132
  1,332
  1,549
  1,783
  2,034
  2,302
  2,586
  2,885
  3,200
  3,529
  3,874
  4,234
  4,609
  4,999
  5,405
  5,827
  6,266
  6,721
  7,195
  7,687
  8,200
  8,732
  9,287
  9,864
  10,466
Depreciation, amort., depletion, $m
  233
  304
  387
  485
  598
  726
  869
  1,028
  1,203
  1,392
  1,597
  1,816
  2,049
  2,296
  2,557
  2,831
  3,118
  3,419
  3,732
  4,059
  4,399
  4,753
  5,120
  5,502
  5,899
  6,312
  6,741
  7,187
  7,650
  8,133
  8,635
Funds from operations, $m
  1,035
  711
  904
  1,128
  1,386
  1,677
  2,002
  2,360
  2,751
  3,175
  3,631
  4,118
  4,635
  5,181
  5,757
  6,360
  6,993
  7,653
  8,341
  9,058
  9,804
  10,580
  11,386
  12,224
  13,094
  13,999
  14,940
  15,919
  16,937
  17,997
  19,101
Change in working capital, $m
  383
  181
  216
  253
  292
  331
  371
  411
  451
  491
  529
  567
  604
  640
  675
  709
  744
  777
  811
  845
  880
  915
  951
  989
  1,028
  1,068
  1,110
  1,154
  1,200
  1,249
  1,300
Cash from operations, $m
  652
  530
  688
  875
  1,094
  1,346
  1,630
  1,949
  2,300
  2,685
  3,102
  3,551
  4,031
  4,542
  5,082
  5,651
  6,249
  6,875
  7,530
  8,213
  8,924
  9,664
  10,434
  11,235
  12,067
  12,931
  13,830
  14,765
  15,737
  16,748
  17,801
Maintenance CAPEX, $m
  0
  -233
  -304
  -387
  -485
  -598
  -726
  -869
  -1,028
  -1,203
  -1,392
  -1,597
  -1,816
  -2,049
  -2,296
  -2,557
  -2,831
  -3,118
  -3,419
  -3,732
  -4,059
  -4,399
  -4,753
  -5,120
  -5,502
  -5,899
  -6,312
  -6,741
  -7,187
  -7,650
  -8,133
New CAPEX, $m
  -540
  -890
  -1,053
  -1,233
  -1,420
  -1,613
  -1,808
  -2,003
  -2,197
  -2,389
  -2,576
  -2,760
  -2,939
  -3,114
  -3,285
  -3,454
  -3,620
  -3,785
  -3,950
  -4,116
  -4,284
  -4,456
  -4,632
  -4,814
  -5,002
  -5,199
  -5,404
  -5,619
  -5,844
  -6,081
  -6,330
Cash from investing activities, $m
  -1,394
  -1,123
  -1,357
  -1,620
  -1,905
  -2,211
  -2,534
  -2,872
  -3,225
  -3,592
  -3,968
  -4,357
  -4,755
  -5,163
  -5,581
  -6,011
  -6,451
  -6,903
  -7,369
  -7,848
  -8,343
  -8,855
  -9,385
  -9,934
  -10,504
  -11,098
  -11,716
  -12,360
  -13,031
  -13,731
  -14,463
Free cash flow, $m
  -742
  -593
  -669
  -745
  -811
  -865
  -903
  -924
  -926
  -907
  -867
  -806
  -724
  -621
  -500
  -359
  -202
  -28
  161
  365
  581
  810
  1,050
  1,301
  1,562
  1,833
  2,115
  2,406
  2,706
  3,017
  3,337
Issuance/(repayment) of debt, $m
  303
  1,667
  1,987
  2,326
  2,679
  3,043
  3,411
  3,780
  4,146
  4,507
  4,861
  5,208
  5,546
  5,876
  6,199
  6,516
  6,830
  7,141
  7,453
  7,766
  8,084
  8,408
  8,740
  9,083
  9,439
  9,810
  10,196
  10,602
  11,027
  11,474
  11,945
Issuance/(repurchase) of shares, $m
  413
  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  
  661
  1,667
  1,987
  2,326
  2,679
  3,043
  3,411
  3,780
  4,146
  4,507
  4,861
  5,208
  5,546
  5,876
  6,199
  6,516
  6,830
  7,141
  7,453
  7,766
  8,084
  8,408
  8,740
  9,083
  9,439
  9,810
  10,196
  10,602
  11,027
  11,474
  11,945
Total cash flow (excl. dividends), $m
  -81
  1,074
  1,318
  1,581
  1,869
  2,178
  2,508
  2,856
  3,221
  3,601
  3,995
  4,402
  4,822
  5,254
  5,699
  6,157
  6,628
  7,114
  7,614
  8,131
  8,665
  9,217
  9,790
  10,384
  11,001
  11,643
  12,311
  13,007
  13,733
  14,491
  15,282
Retained Cash Flow (-), $m
  -378
  -383
  -457
  -535
  -616
  -700
  -785
  -869
  -954
  -1,037
  -1,118
  -1,198
  -1,276
  -1,351
  -1,426
  -1,499
  -1,571
  -1,643
  -1,714
  -1,786
  -1,859
  -1,934
  -2,010
  -2,089
  -2,171
  -2,256
  -2,345
  -2,438
  -2,536
  -2,639
  -2,748
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
 
  1,437
  861
  1,046
  1,252
  1,478
  1,723
  1,986
  2,267
  2,564
  2,876
  3,204
  3,546
  3,903
  4,273
  4,658
  5,057
  5,471
  5,900
  6,345
  6,805
  7,283
  7,780
  8,295
  8,830
  9,387
  9,966
  10,569
  11,197
  11,852
  12,535
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
 
  1,347
  751
  845
  929
  999
  1,053
  1,088
  1,103
  1,096
  1,070
  1,025
  965
  891
  808
  719
  628
  537
  451
  371
  298
  234
  180
  135
  99
  71
  49
  33
  22
  14
  8
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

PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.

FINANCIAL RATIOS  of  PBF Energy (PBF)

Valuation Ratios
P/E Ratio 21
Price to Sales 0.2
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 5.5
Price to Free Cash Flow 32.1
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 30% 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 109.629 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 $3.6 billion.

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COMPANY NEWS

▶ Seth Klarman Pares PBF Energy Inc.   [Dec-11-17 05:34PM  GuruFocus.com]
▶ What Are Wall Streets Targets for DK, PBF, RDS.A, and CVE?   [Dec-04-17 07:33AM  Market Realist]
▶ PBF, PARR, and MPC: Refining and Marketing Losers This Week   [Dec-01-17 09:05AM  Market Realist]
▶ A Look at Valeros Short Interest since 3Q17   [Nov-21-17 10:30AM  Market Realist]
▶ New Strong Buy Stocks for November 13th   [Nov-13-17 10:04AM  Zacks]
▶ PBF Energy beats 3Q profit forecasts   [06:55AM  Associated Press]
▶ ETFs with exposure to PBF Energy, Inc. : October 27, 2017   [Oct-27-17 11:10AM  Capital Cube]
▶ Short Interest in Phillips 66 ahead of 3Q17 Earnings   [Oct-19-17 07:38AM  Market Realist]
▶ Why Has Short Interest in Valero Risen ahead of Q3 Earnings?   [Oct-13-17 07:37AM  Market Realist]
▶ Andeavor Stock and WTI: Pay Attention to the Q3 Correlation   [Oct-10-17 09:07AM  Market Realist]
▶ PBF Energy Clears Technical Benchmark, Hitting 80-Plus RS Rating   [Oct-06-17 03:00AM  Investor's Business Daily]
▶ What Andeavors Moving Averages Can Tell You   [Oct-05-17 04:36PM  Market Realist]
▶ PBF Energy Hits 80-Plus Relative Strength Rating Benchmark   [03:00AM  Investor's Business Daily]
▶ Why Short Interest in Valero Energy Fell   [Sep-28-17 07:36AM  Market Realist]
▶ The Forecast Range for Valero Stock until the End of 2017   [Sep-27-17 09:08AM  Market Realist]
▶ PBF Energy Trying To Close In On Key Technical Measure   [Sep-20-17 03:00AM  Investor's Business Daily]
▶ PBF Energy Was the Top Energy Loser Last Week   [01:18PM  Market Realist]
▶ PBF Energy Getting Closer To Key Technical Measure   [Sep-14-17 03:00AM  Investor's Business Daily]
▶ PBF Energy Sees IBD RS Rating Rise To 72   [Sep-11-17 03:00AM  Investor's Business Daily]
▶ Marathon Petroleums Valuation and the Peer Average   [Sep-08-17 09:06AM  Market Realist]
▶ PBF Energy Scores Relative Strength Rating Upgrade; Hits Key Benchmark   [Sep-05-17 03:00AM  Investor's Business Daily]
▶ Oil and Gas Stock Roundup: Harvey Looms Large   [Sep-01-17 07:05PM  Motley Fool]
▶ Behind Delek US Holdings Scant Buy Ratings   [10:38AM  Market Realist]
▶ Why HollyFrontier Is Getting Mostly Hold Ratings   [Aug-28-17 04:06PM  Market Realist]
▶ ETFs with exposure to PBF Energy, Inc. : August 21, 2017   [Aug-21-17 04:50PM  Capital Cube]
▶ 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]
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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