Intrinsic value of PG&E - PCG

Previous Close

$69.67

  Intrinsic Value

$116.37

stock screener

  Rating & Target

str. buy

+67%

  Value-price divergence*

+356%

Previous close

$69.67

 
Intrinsic value

$116.37

 
Up/down potential

+67%

 
Rating

str. buy

 
Value-price divergence*

+356%

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

We calculate the intrinsic value of PCG 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 35.7

 

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, %
  4.95
  7.40
  7.16
  6.94
  6.75
  6.57
  6.42
  6.28
  6.15
  6.03
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.16
  5.14
  5.13
  5.11
Revenue, $m
  17,666
  18,973
  20,332
  21,744
  23,211
  24,737
  26,325
  27,977
  29,697
  31,488
  33,356
  35,302
  37,333
  39,453
  41,666
  43,979
  46,395
  48,921
  51,563
  54,327
  57,219
  60,247
  63,418
  66,738
  70,217
  73,862
  77,683
  81,687
  85,886
  90,288
  94,904
Variable operating expenses, $m
 
  3,738
  4,005
  4,283
  4,573
  4,873
  5,186
  5,511
  5,850
  6,203
  6,571
  6,955
  7,355
  7,772
  8,208
  8,664
  9,140
  9,637
  10,158
  10,702
  11,272
  11,869
  12,493
  13,147
  13,833
  14,551
  15,304
  16,092
  16,920
  17,787
  18,696
Fixed operating expenses, $m
 
  12,619
  12,934
  13,258
  13,589
  13,929
  14,277
  14,634
  15,000
  15,375
  15,759
  16,153
  16,557
  16,971
  17,395
  17,830
  18,276
  18,733
  19,201
  19,681
  20,173
  20,677
  21,194
  21,724
  22,267
  22,824
  23,395
  23,979
  24,579
  25,193
  25,823
Total operating expenses, $m
  15,489
  16,357
  16,939
  17,541
  18,162
  18,802
  19,463
  20,145
  20,850
  21,578
  22,330
  23,108
  23,912
  24,743
  25,603
  26,494
  27,416
  28,370
  29,359
  30,383
  31,445
  32,546
  33,687
  34,871
  36,100
  37,375
  38,699
  40,071
  41,499
  42,980
  44,519
Operating income, $m
  2,177
  2,617
  3,392
  4,203
  5,050
  5,935
  6,862
  7,831
  8,847
  9,910
  11,025
  12,195
  13,422
  14,710
  16,063
  17,485
  18,979
  20,551
  22,204
  23,943
  25,774
  27,701
  29,730
  31,867
  34,117
  36,488
  38,985
  41,616
  44,387
  47,308
  50,385
EBITDA, $m
  4,932
  2,617
  3,392
  4,203
  5,050
  5,935
  6,862
  7,831
  8,847
  9,910
  11,025
  12,195
  13,422
  14,710
  16,063
  17,485
  18,979
  20,551
  22,204
  23,943
  25,774
  27,701
  29,730
  31,867
  34,117
  36,488
  38,985
  41,616
  44,387
  47,308
  50,385
Interest expense (income), $m
  726
  749
  904
  1,063
  1,229
  1,401
  1,580
  1,766
  1,960
  2,162
  2,372
  2,591
  2,819
  3,057
  3,306
  3,566
  3,837
  4,120
  4,416
  4,726
  5,050
  5,389
  5,745
  6,116
  6,506
  6,914
  7,341
  7,789
  8,259
  8,752
  9,268
Earnings before tax, $m
  1,462
  1,868
  2,488
  3,139
  3,821
  4,534
  5,282
  6,065
  6,887
  7,749
  8,654
  9,604
  10,603
  11,653
  12,757
  13,919
  15,143
  16,431
  17,788
  19,217
  20,724
  22,312
  23,985
  25,750
  27,611
  29,574
  31,643
  33,826
  36,128
  38,556
  41,117
Tax expense, $m
  55
  504
  672
  848
  1,032
  1,224
  1,426
  1,638
  1,859
  2,092
  2,336
  2,593
  2,863
  3,146
  3,444
  3,758
  4,089
  4,436
  4,803
  5,189
  5,595
  6,024
  6,476
  6,953
  7,455
  7,985
  8,544
  9,133
  9,755
  10,410
  11,102
Net income, $m
  1,407
  1,364
  1,816
  2,292
  2,789
  3,310
  3,856
  4,428
  5,027
  5,657
  6,317
  7,011
  7,740
  8,506
  9,313
  10,161
  11,054
  11,994
  12,985
  14,029
  15,128
  16,287
  17,509
  18,798
  20,156
  21,589
  23,100
  24,693
  26,374
  28,146
  30,016

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  177
  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
  68,598
  73,540
  78,805
  84,278
  89,966
  95,881
  102,034
  108,437
  115,103
  122,048
  129,285
  136,831
  144,703
  152,919
  161,498
  170,460
  179,825
  189,616
  199,856
  210,568
  221,779
  233,516
  245,805
  258,676
  272,160
  286,289
  301,096
  316,618
  332,891
  349,954
  367,847
Adjusted assets (=assets-cash), $m
  68,421
  73,540
  78,805
  84,278
  89,966
  95,881
  102,034
  108,437
  115,103
  122,048
  129,285
  136,831
  144,703
  152,919
  161,498
  170,460
  179,825
  189,616
  199,856
  210,568
  221,779
  233,516
  245,805
  258,676
  272,160
  286,289
  301,096
  316,618
  332,891
  349,954
  367,847
Revenue / Adjusted assets
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
Average production assets, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Working capital, $m
  -1,400
  683
  732
  783
  836
  891
  948
  1,007
  1,069
  1,134
  1,201
  1,271
  1,344
  1,420
  1,500
  1,583
  1,670
  1,761
  1,856
  1,956
  2,060
  2,169
  2,283
  2,403
  2,528
  2,659
  2,797
  2,941
  3,092
  3,250
  3,417
Total debt, $m
  18,436
  22,050
  25,936
  29,975
  34,173
  38,538
  43,079
  47,804
  52,724
  57,849
  63,190
  68,759
  74,569
  80,632
  86,964
  93,577
  100,489
  107,715
  115,271
  123,177
  131,451
  140,112
  149,182
  158,681
  168,632
  179,059
  189,987
  201,442
  213,451
  226,044
  239,249
Total liabilities, $m
  50,658
  54,272
  58,158
  62,197
  66,395
  70,760
  75,301
  80,026
  84,946
  90,071
  95,412
  100,981
  106,791
  112,854
  119,186
  125,799
  132,711
  139,937
  147,493
  155,399
  163,673
  172,334
  181,404
  190,903
  200,854
  211,281
  222,209
  233,664
  245,673
  258,266
  271,471
Total equity, $m
  17,940
  19,267
  20,647
  22,081
  23,571
  25,121
  26,733
  28,410
  30,157
  31,977
  33,873
  35,850
  37,912
  40,065
  42,312
  44,660
  47,114
  49,679
  52,362
  55,169
  58,106
  61,181
  64,401
  67,773
  71,306
  75,008
  78,887
  82,954
  87,217
  91,688
  96,376
Total liabilities and equity, $m
  68,598
  73,539
  78,805
  84,278
  89,966
  95,881
  102,034
  108,436
  115,103
  122,048
  129,285
  136,831
  144,703
  152,919
  161,498
  170,459
  179,825
  189,616
  199,855
  210,568
  221,779
  233,515
  245,805
  258,676
  272,160
  286,289
  301,096
  316,618
  332,890
  349,954
  367,847
Debt-to-equity ratio
  1.028
  1.140
  1.260
  1.360
  1.450
  1.530
  1.610
  1.680
  1.750
  1.810
  1.870
  1.920
  1.970
  2.010
  2.060
  2.100
  2.130
  2.170
  2.200
  2.230
  2.260
  2.290
  2.320
  2.340
  2.360
  2.390
  2.410
  2.430
  2.450
  2.470
  2.480
Adjusted equity ratio
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262
  0.262

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,407
  1,364
  1,816
  2,292
  2,789
  3,310
  3,856
  4,428
  5,027
  5,657
  6,317
  7,011
  7,740
  8,506
  9,313
  10,161
  11,054
  11,994
  12,985
  14,029
  15,128
  16,287
  17,509
  18,798
  20,156
  21,589
  23,100
  24,693
  26,374
  28,146
  30,016
Depreciation, amort., depletion, $m
  2,755
  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
Funds from operations, $m
  2,857
  1,364
  1,816
  2,292
  2,789
  3,310
  3,856
  4,428
  5,027
  5,657
  6,317
  7,011
  7,740
  8,506
  9,313
  10,161
  11,054
  11,994
  12,985
  14,029
  15,128
  16,287
  17,509
  18,798
  20,156
  21,589
  23,100
  24,693
  26,374
  28,146
  30,016
Change in working capital, $m
  -1,552
  47
  49
  51
  53
  55
  57
  59
  62
  64
  67
  70
  73
  76
  80
  83
  87
  91
  95
  99
  104
  109
  114
  120
  125
  131
  138
  144
  151
  158
  166
Cash from operations, $m
  4,409
  1,317
  1,767
  2,241
  2,736
  3,255
  3,798
  4,368
  4,965
  5,592
  6,250
  6,941
  7,667
  8,430
  9,233
  10,078
  10,967
  11,904
  12,890
  13,929
  15,024
  16,178
  17,395
  18,678
  20,031
  21,458
  22,962
  24,549
  26,223
  27,988
  29,849
Maintenance CAPEX, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
New CAPEX, $m
  -5,709
  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 investing activities, $m
  -5,526
  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
Free cash flow, $m
  -1,117
  1,317
  1,767
  2,241
  2,736
  3,255
  3,798
  4,368
  4,965
  5,592
  6,250
  6,941
  7,667
  8,430
  9,233
  10,078
  10,967
  11,904
  12,890
  13,929
  15,024
  16,178
  17,395
  18,678
  20,031
  21,458
  22,962
  24,549
  26,223
  27,988
  29,849
Issuance/(repayment) of debt, $m
  1,314
  3,791
  3,886
  4,039
  4,198
  4,365
  4,541
  4,725
  4,920
  5,125
  5,341
  5,569
  5,810
  6,063
  6,331
  6,614
  6,912
  7,226
  7,557
  7,906
  8,274
  8,661
  9,069
  9,499
  9,951
  10,427
  10,928
  11,455
  12,009
  12,592
  13,205
Issuance/(repurchase) of shares, $m
  822
  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  
  2,092
  3,791
  3,886
  4,039
  4,198
  4,365
  4,541
  4,725
  4,920
  5,125
  5,341
  5,569
  5,810
  6,063
  6,331
  6,614
  6,912
  7,226
  7,557
  7,906
  8,274
  8,661
  9,069
  9,499
  9,951
  10,427
  10,928
  11,455
  12,009
  12,592
  13,205
Total cash flow (excl. dividends), $m
  975
  5,108
  5,653
  6,279
  6,934
  7,620
  8,339
  9,094
  9,885
  10,717
  11,591
  12,510
  13,476
  14,494
  15,564
  16,692
  17,879
  19,129
  20,447
  21,835
  23,298
  24,840
  26,465
  28,177
  29,982
  31,885
  33,890
  36,004
  38,232
  40,580
  43,055
Retained Cash Flow (-), $m
  -1,364
  -1,327
  -1,380
  -1,434
  -1,490
  -1,550
  -1,612
  -1,678
  -1,747
  -1,819
  -1,896
  -1,977
  -2,062
  -2,153
  -2,248
  -2,348
  -2,454
  -2,565
  -2,683
  -2,807
  -2,937
  -3,075
  -3,220
  -3,372
  -3,533
  -3,702
  -3,880
  -4,067
  -4,263
  -4,470
  -4,688
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
 
  3,781
  4,274
  4,846
  5,444
  6,071
  6,727
  7,416
  8,139
  8,898
  9,695
  10,533
  11,414
  12,341
  13,317
  14,344
  15,425
  16,564
  17,764
  19,028
  20,361
  21,765
  23,245
  24,805
  26,449
  28,183
  30,011
  31,937
  33,968
  36,110
  38,367
Discount rate, %
 
  7.00
  7.35
  7.72
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.86
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.70
  24.89
  26.13
  27.44
  28.81
PV of cash for distribution, $m
 
  3,533
  3,709
  3,877
  3,986
  4,036
  4,026
  3,959
  3,839
  3,669
  3,458
  3,211
  2,938
  2,647
  2,347
  2,047
  1,754
  1,477
  1,220
  988
  784
  608
  461
  342
  247
  174
  119
  79
  51
  32
  19
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

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, transmits, delivers, and sells electricity and natural gas to residential, commercial, industrial, and agricultural customers primarily in northern and central California. The company’s electricity distribution network consists of approximately 142,000 circuit miles of distribution lines, 59 transmission switching substations, and 606 distribution substations; and electricity transmission network comprises approximately 18,400 circuit miles of interconnected transmission lines and 92 electric transmission substations. Its natural gas system consists of approximately 42,800 miles of distribution pipelines, approximately 6,700 miles of backbone and local transmission pipelines, and various storage facilities. The company operates various electricity generation facilities, such as nuclear, hydroelectric, fossil fuel-fired, and photovoltaic. PG&E Corporation was founded in 1905 and is headquartered in San Francisco, California.

FINANCIAL RATIOS  of  PG&E (PCG)

Valuation Ratios
P/E Ratio 25.1
Price to Sales 2
Price to Book 2
Price to Tangible Book
Price to Cash Flow 8
Price to Free Cash Flow -27.2
Growth Rates
Sales Growth Rate 4.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 10.4%
Cap. Spend. - 3 Yr. Gr. Rate 1.9%
Financial Strength
Quick Ratio 0
Current Ratio 0.4
LT Debt to Equity 90.4%
Total Debt to Equity 102.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.2%
Ret/ On Assets - 3 Yr. Avg. 3.1%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 3.8%
Return On Equity 8.2%
Return On Equity - 3 Yr. Avg. 7.8%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 28%
EBITDA Margin - 3 Yr. Avg. 27%
Operating Margin 12.3%
Oper. Margin - 3 Yr. Avg. 11.9%
Pre-Tax Margin 8.3%
Pre-Tax Margin - 3 Yr. Avg. 8%
Net Profit Margin 8%
Net Profit Margin - 3 Yr. Avg. 7.2%
Effective Tax Rate 3.8%
Eff/ Tax Rate - 3 Yr. Avg. 6.6%
Payout Ratio 65.5%

PCG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PCG stock intrinsic value calculation we used $17666 million for the last fiscal year's total revenue generated by PG&E. The default revenue input number comes from 2016 income statement of PG&E. 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 PCG stock valuation model: a) initial revenue growth rate of 7.4% 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%, whose default value for PCG is calculated based on our internal credit rating of PG&E, 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 PG&E.
    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 PCG stock the variable cost ratio is equal to 19.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $12311 million in the base year in the intrinsic value calculation for PCG 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 4.1% for PG&E.

Corporate tax rate of 27% is the nominal tax rate for PG&E. 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 PCG 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 PCG are equal to 0%.

Life of production assets of 10 years is the average useful life of capital assets used in PG&E 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 PCG is equal to 3.6%. 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 - $17940 million for PG&E - 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 512.68 million for PG&E 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 PG&E at the current share price and the inputted number of shares is $35.7 billion.

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COMPANY NEWS

▶ Sempra Energys Current Valuation and Dividend Profile   [Aug-22-17 01:35PM  Market Realist]
▶ PG&E Prepared for Unusual Challenges of Solar Eclipse   [Aug-17-17 12:30PM  Business Wire]
▶ ETFs with exposure to PG&E Corp. : August 14, 2017   [Aug-14-17 05:07PM  Capital Cube]
▶ PG&E meets 2Q profit forecasts   [Jul-27-17 07:07PM  Associated Press]
▶ PG&E meets 2Q profit forecasts   [08:44AM  Associated Press]
▶ PG&E Statement on Approval of Cap-and-Trade Legislation   [Jul-18-17 12:10AM  Business Wire]
▶ Why US Nuclear Power Generation Is under Serious Threat   [Jul-14-17 03:50PM  Market Realist]
▶ ETFs with exposure to PG&E Corp. : July 3, 2017   [Jul-03-17 03:40PM  Capital Cube]
▶ ETFs with exposure to PG&E Corp. : June 22, 2017   [Jun-22-17 04:13PM  Capital Cube]
▶ PG&Es Bolt of Energy   [06:30AM  Fortune]
▶ These 3 Stocks Just Raised Their Dividends   [Jun-09-17 11:02AM  Motley Fool]
▶ More PG&E Campgrounds Opening After Snow Delays   [Jun-02-17 12:00PM  Business Wire]
▶ PG&E Corp. raises dividend to 53 cents a share   [May-31-17 04:43PM  MarketWatch]
▶ Six Ideas to Help PG&E Customers Save Up to $400 Annually   [May-26-17 01:17PM  Business Wire]
▶ PG&E Urges Grads to Celebrate Safely With Weighted Balloons   [May-25-17 02:13PM  Business Wire]
▶ PG&E sued in new Ghost Ship fire lawsuit for not noticing 'red flags'   [May-18-17 10:45AM  American City Business Journals]
▶ California utility sued by warehouse fire victim relatives   [May-16-17 06:12PM  Associated Press]
▶ S.F. businesses start filing claims with PG&E for big losses during downtown blackout   [May-11-17 03:55PM  American City Business Journals]
▶ PG&E Corp. Value Analysis (NYSE:PCG) : May 3, 2017   [May-03-17 04:51PM  Capital Cube]
▶ PG&E beats 1Q profit forecasts   [08:41AM  Associated Press]
▶ How PG&E's CIO Sped Up Mobile App Deployment   [05:53PM  The Wall Street Journal]
Financial statements of PCG
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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