Intrinsic value of PPL - PPL

Previous Close

$38.83

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$38.83

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

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of PPL 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 26.6

 

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, %
  -1.98
  2.90
  3.11
  3.30
  3.47
  3.62
  3.76
  3.88
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.68
  4.72
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
Revenue, $m
  0
  7,735
  7,976
  8,239
  8,524
  8,833
  9,165
  9,521
  9,902
  10,307
  10,739
  11,197
  11,683
  12,198
  12,743
  13,319
  13,927
  14,569
  15,247
  15,961
  16,714
  17,507
  18,342
  19,221
  20,146
  21,120
  22,144
  23,221
  24,354
  25,545
  26,797
Variable operating expenses, $m
 
  4,872
  5,014
  5,169
  5,338
  5,520
  5,716
  5,926
  6,151
  6,390
  6,645
  6,610
  6,897
  7,200
  7,522
  7,862
  8,221
  8,600
  9,000
  9,422
  9,866
  10,334
  10,827
  11,346
  11,892
  12,467
  13,072
  13,707
  14,376
  15,079
  15,818
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
  4,469
  4,872
  5,014
  5,169
  5,338
  5,520
  5,716
  5,926
  6,151
  6,390
  6,645
  6,610
  6,897
  7,200
  7,522
  7,862
  8,221
  8,600
  9,000
  9,422
  9,866
  10,334
  10,827
  11,346
  11,892
  12,467
  13,072
  13,707
  14,376
  15,079
  15,818
Operating income, $m
  3,048
  2,863
  2,962
  3,069
  3,187
  3,313
  3,449
  3,595
  3,751
  3,917
  4,094
  4,588
  4,787
  4,998
  5,221
  5,457
  5,706
  5,969
  6,247
  6,539
  6,848
  7,173
  7,515
  7,875
  8,254
  8,653
  9,073
  9,514
  9,978
  10,466
  10,979
EBITDA, $m
  4,054
  3,548
  3,659
  3,779
  3,911
  4,052
  4,205
  4,368
  4,542
  4,728
  4,926
  5,137
  5,360
  5,596
  5,846
  6,110
  6,389
  6,684
  6,994
  7,322
  7,667
  8,031
  8,414
  8,818
  9,242
  9,689
  10,159
  10,653
  11,172
  11,719
  12,293
Interest expense (income), $m
  854
  832
  867
  906
  950
  997
  1,047
  1,102
  1,160
  1,223
  1,289
  1,360
  1,435
  1,515
  1,600
  1,689
  1,784
  1,884
  1,989
  2,101
  2,218
  2,341
  2,472
  2,609
  2,753
  2,905
  3,065
  3,233
  3,410
  3,596
  3,792
Earnings before tax, $m
  2,550
  2,031
  2,095
  2,163
  2,237
  2,316
  2,402
  2,493
  2,591
  2,694
  2,804
  3,227
  3,351
  3,482
  3,621
  3,768
  3,922
  4,085
  4,257
  4,439
  4,630
  4,831
  5,043
  5,266
  5,501
  5,748
  6,008
  6,281
  6,568
  6,870
  7,187
Tax expense, $m
  648
  548
  566
  584
  604
  625
  649
  673
  699
  727
  757
  871
  905
  940
  978
  1,017
  1,059
  1,103
  1,150
  1,198
  1,250
  1,304
  1,362
  1,422
  1,485
  1,552
  1,622
  1,696
  1,773
  1,855
  1,941
Net income, $m
  1,902
  1,483
  1,529
  1,579
  1,633
  1,691
  1,753
  1,820
  1,891
  1,967
  2,047
  2,356
  2,446
  2,542
  2,643
  2,750
  2,863
  2,982
  3,108
  3,240
  3,380
  3,527
  3,682
  3,844
  4,016
  4,196
  4,386
  4,585
  4,795
  5,015
  5,247

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  341
  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
  38,315
  39,066
  40,281
  41,609
  43,053
  44,612
  46,290
  48,088
  50,009
  52,057
  54,237
  56,551
  59,006
  61,607
  64,358
  67,267
  70,339
  73,583
  77,004
  80,612
  84,413
  88,419
  92,636
  97,077
  101,750
  106,667
  111,839
  117,280
  123,000
  129,015
  135,338
Adjusted assets (=assets-cash), $m
  37,974
  39,066
  40,281
  41,609
  43,053
  44,612
  46,290
  48,088
  50,009
  52,057
  54,237
  56,551
  59,006
  61,607
  64,358
  67,267
  70,339
  73,583
  77,004
  80,612
  84,413
  88,419
  92,636
  97,077
  101,750
  106,667
  111,839
  117,280
  123,000
  129,015
  135,338
Revenue / Adjusted assets
  0.000
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
Average production assets, $m
  1,914
  1,972
  2,034
  2,101
  2,174
  2,252
  2,337
  2,428
  2,525
  2,628
  2,738
  2,855
  2,979
  3,111
  3,249
  3,396
  3,551
  3,715
  3,888
  4,070
  4,262
  4,464
  4,677
  4,901
  5,137
  5,386
  5,647
  5,921
  6,210
  6,514
  6,833
Working capital, $m
  -1,770
  -688
  -710
  -733
  -759
  -786
  -816
  -847
  -881
  -917
  -956
  -997
  -1,040
  -1,086
  -1,134
  -1,185
  -1,240
  -1,297
  -1,357
  -1,421
  -1,488
  -1,558
  -1,632
  -1,711
  -1,793
  -1,880
  -1,971
  -2,067
  -2,168
  -2,274
  -2,385
Total debt, $m
  19,249
  19,702
  20,600
  21,582
  22,649
  23,802
  25,041
  26,370
  27,790
  29,303
  30,914
  32,625
  34,439
  36,360
  38,394
  40,543
  42,814
  45,211
  47,739
  50,405
  53,215
  56,174
  59,291
  62,573
  66,026
  69,660
  73,482
  77,503
  81,730
  86,175
  90,848
Total liabilities, $m
  28,416
  28,869
  29,767
  30,749
  31,816
  32,969
  34,208
  35,537
  36,957
  38,470
  40,081
  41,792
  43,606
  45,527
  47,561
  49,710
  51,981
  54,378
  56,906
  59,572
  62,382
  65,341
  68,458
  71,740
  75,193
  78,827
  82,649
  86,670
  90,897
  95,342
  100,015
Total equity, $m
  9,899
  10,196
  10,513
  10,860
  11,237
  11,644
  12,082
  12,551
  13,052
  13,587
  14,156
  14,760
  15,401
  16,079
  16,797
  17,557
  18,359
  19,205
  20,098
  21,040
  22,032
  23,077
  24,178
  25,337
  26,557
  27,840
  29,190
  30,610
  32,103
  33,673
  35,323
Total liabilities and equity, $m
  38,315
  39,065
  40,280
  41,609
  43,053
  44,613
  46,290
  48,088
  50,009
  52,057
  54,237
  56,552
  59,007
  61,606
  64,358
  67,267
  70,340
  73,583
  77,004
  80,612
  84,414
  88,418
  92,636
  97,077
  101,750
  106,667
  111,839
  117,280
  123,000
  129,015
  135,338
Debt-to-equity ratio
  1.945
  1.930
  1.960
  1.990
  2.020
  2.040
  2.070
  2.100
  2.130
  2.160
  2.180
  2.210
  2.240
  2.260
  2.290
  2.310
  2.330
  2.350
  2.380
  2.400
  2.420
  2.430
  2.450
  2.470
  2.490
  2.500
  2.520
  2.530
  2.550
  2.560
  2.570
Adjusted equity ratio
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261
  0.261

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,902
  1,483
  1,529
  1,579
  1,633
  1,691
  1,753
  1,820
  1,891
  1,967
  2,047
  2,356
  2,446
  2,542
  2,643
  2,750
  2,863
  2,982
  3,108
  3,240
  3,380
  3,527
  3,682
  3,844
  4,016
  4,196
  4,386
  4,585
  4,795
  5,015
  5,247
Depreciation, amort., depletion, $m
  1,006
  685
  697
  710
  724
  739
  755
  773
  792
  811
  833
  549
  573
  598
  625
  653
  683
  714
  748
  783
  820
  859
  899
  943
  988
  1,036
  1,086
  1,139
  1,194
  1,253
  1,314
Funds from operations, $m
  2,317
  2,168
  2,226
  2,289
  2,357
  2,430
  2,509
  2,593
  2,683
  2,778
  2,880
  2,905
  3,019
  3,140
  3,268
  3,403
  3,546
  3,697
  3,856
  4,023
  4,200
  4,385
  4,581
  4,787
  5,004
  5,232
  5,471
  5,724
  5,989
  6,268
  6,561
Change in working capital, $m
  -573
  -19
  -21
  -23
  -25
  -27
  -30
  -32
  -34
  -36
  -38
  -41
  -43
  -46
  -48
  -51
  -54
  -57
  -60
  -64
  -67
  -71
  -74
  -78
  -82
  -87
  -91
  -96
  -101
  -106
  -111
Cash from operations, $m
  2,890
  2,107
  2,248
  2,312
  2,382
  2,458
  2,538
  2,625
  2,717
  2,814
  2,918
  2,946
  3,063
  3,186
  3,317
  3,455
  3,600
  3,754
  3,916
  4,087
  4,267
  4,456
  4,655
  4,865
  5,086
  5,318
  5,563
  5,820
  6,090
  6,374
  6,672
Maintenance CAPEX, $m
  0
  -368
  -379
  -391
  -404
  -418
  -433
  -449
  -467
  -486
  -505
  -527
  -549
  -573
  -598
  -625
  -653
  -683
  -714
  -748
  -783
  -820
  -859
  -899
  -943
  -988
  -1,036
  -1,086
  -1,139
  -1,194
  -1,253
New CAPEX, $m
  -2,957
  -58
  -61
  -67
  -73
  -79
  -85
  -91
  -97
  -103
  -110
  -117
  -124
  -131
  -139
  -147
  -155
  -164
  -173
  -182
  -192
  -202
  -213
  -224
  -236
  -248
  -261
  -275
  -289
  -304
  -319
Cash from investing activities, $m
  -2,918
  -426
  -440
  -458
  -477
  -497
  -518
  -540
  -564
  -589
  -615
  -644
  -673
  -704
  -737
  -772
  -808
  -847
  -887
  -930
  -975
  -1,022
  -1,072
  -1,123
  -1,179
  -1,236
  -1,297
  -1,361
  -1,428
  -1,498
  -1,572
Free cash flow, $m
  -28
  1,681
  1,807
  1,854
  1,906
  1,961
  2,021
  2,084
  2,153
  2,225
  2,303
  2,302
  2,390
  2,482
  2,580
  2,683
  2,792
  2,907
  3,029
  3,157
  3,292
  3,434
  3,584
  3,742
  3,907
  4,082
  4,266
  4,459
  4,662
  4,876
  5,100
Issuance/(repayment) of debt, $m
  441
  794
  898
  982
  1,067
  1,152
  1,240
  1,329
  1,420
  1,514
  1,611
  1,711
  1,814
  1,922
  2,033
  2,150
  2,271
  2,397
  2,528
  2,666
  2,810
  2,960
  3,117
  3,281
  3,453
  3,634
  3,823
  4,020
  4,228
  4,445
  4,673
Issuance/(repurchase) of shares, $m
  144
  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  
  591
  794
  898
  982
  1,067
  1,152
  1,240
  1,329
  1,420
  1,514
  1,611
  1,711
  1,814
  1,922
  2,033
  2,150
  2,271
  2,397
  2,528
  2,666
  2,810
  2,960
  3,117
  3,281
  3,453
  3,634
  3,823
  4,020
  4,228
  4,445
  4,673
Total cash flow (excl. dividends), $m
  535
  2,475
  2,705
  2,836
  2,972
  3,113
  3,260
  3,413
  3,573
  3,739
  3,913
  4,013
  4,204
  4,404
  4,613
  4,832
  5,063
  5,304
  5,557
  5,823
  6,101
  6,394
  6,701
  7,023
  7,361
  7,716
  8,088
  8,479
  8,890
  9,321
  9,773
Retained Cash Flow (-), $m
  20
  -297
  -317
  -347
  -377
  -407
  -438
  -469
  -501
  -535
  -569
  -604
  -641
  -679
  -718
  -759
  -802
  -846
  -893
  -942
  -992
  -1,045
  -1,101
  -1,159
  -1,220
  -1,283
  -1,350
  -1,420
  -1,493
  -1,570
  -1,650
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
 
  2,178
  2,388
  2,489
  2,596
  2,706
  2,822
  2,944
  3,071
  3,204
  3,345
  3,409
  3,563
  3,725
  3,895
  4,073
  4,261
  4,457
  4,664
  4,881
  5,109
  5,349
  5,600
  5,864
  6,141
  6,432
  6,738
  7,059
  7,397
  7,751
  8,123
Discount rate, %
 
  9.50
  9.98
  10.47
  11.00
  11.55
  12.12
  12.73
  13.37
  14.04
  14.74
  15.47
  16.25
  17.06
  17.91
  18.81
  19.75
  20.74
  21.77
  22.86
  24.01
  25.21
  26.47
  27.79
  29.18
  30.64
  32.17
  33.78
  35.47
  37.24
  39.10
PV of cash for distribution, $m
 
  1,989
  1,974
  1,846
  1,710
  1,567
  1,420
  1,272
  1,126
  983
  846
  700
  585
  481
  388
  307
  238
  181
  135
  98
  69
  48
  32
  21
  13
  8
  5
  3
  2
  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

PPL Corporation, a utility company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates in three segments: U.K. Regulated, Kentucky Regulated, and Pennsylvania Regulated. It serves 324,000 natural gas and 407,000 electric customers in Louisville and adjacent areas in Kentucky; 521,000 customers in central, southeastern, and western Kentucky; and approximately 28,000 customers in 5 counties in southwestern Virginia, and 4 customers in Tennessee. The company also provides electric delivery services to approximately 1.4 million customers in Pennsylvania; and operates 15 electricity distribution networks in the United Kingdom, as well as delivers natural gas to customers in Kentucky; generates electricity from power plants in Kentucky; and sells wholesale electricity to 11 municipalities in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

FINANCIAL RATIOS  of  PPL (PPL)

Valuation Ratios
P/E Ratio 13.9
Price to Sales 3.5
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 9.1
Price to Free Cash Flow -393.9
Growth Rates
Sales Growth Rate -2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -17.2%
Cap. Spend. - 3 Yr. Gr. Rate -4.3%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 179.9%
Total Debt to Equity 194.5%
Interest Coverage 4
Management Effectiveness
Return On Assets 6.5%
Ret/ On Assets - 3 Yr. Avg. 4.9%
Return On Total Capital 6.4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity 19.2%
Return On Equity - 3 Yr. Avg. 12.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 58.7%
EBITDA Margin - 3 Yr. Avg. 53.5%
Operating Margin 40.5%
Oper. Margin - 3 Yr. Avg. 38%
Pre-Tax Margin 33.9%
Pre-Tax Margin - 3 Yr. Avg. 29.3%
Net Profit Margin 25.3%
Net Profit Margin - 3 Yr. Avg. 18.8%
Effective Tax Rate 25.4%
Eff/ Tax Rate - 3 Yr. Avg. 26.8%
Payout Ratio 54.2%

PPL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PPL stock intrinsic value calculation we used $7517 million for the last fiscal year's total revenue generated by PPL. The default revenue input number comes from 2016 income statement of PPL. 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 PPL stock valuation model: a) initial revenue growth rate of 2.9% 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 9.5%, whose default value for PPL is calculated based on our internal credit rating of PPL, 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 PPL.
    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 PPL stock the variable cost ratio is equal to 63.1%.

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 PPL 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 4.4% for PPL.

Corporate tax rate of 27% is the nominal tax rate for PPL. 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 PPL 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 PPL are equal to 25.5%.

Life of production assets of 5.2 years is the average useful life of capital assets used in PPL 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 PPL is equal to -8.9%. 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 - $9899 million for PPL - 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 685.271 million for PPL 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 PPL at the current share price and the inputted number of shares is $26.6 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
AEP American Elect 71.55 prem.  prem.
ES Eversource Ene 62.25 prem.  prem.
DUK Duke Energy 85.96 prem.  prem.
SPKE Spark Energy 22.65 prem.  prem.
BKH Black Hills 70.68 prem.  prem.
ETR Entergy 78.99 prem.  prem.
FE FirstEnergy 28.91 prem.  prem.
ED Consolidated E 83.84 prem.  prem.

COMPANY NEWS

▶ Looking to propose a shareholder vote? It may get tougher   [Jun-06-17 06:57PM  Associated Press]
▶ ETFs with exposure to PPL Corp. : May 30, 2017   [May-30-17 12:39PM  Capital Cube]
▶ PPL to Pay Quarterly Stock Dividend July 3   [May-17-17 11:38AM  PR Newswire]
▶ ETFs with exposure to PPL Corp. : May 9, 2017   [May-09-17 04:58PM  Capital Cube]
▶ PPL meets 1Q profit forecasts   [07:21AM  Associated Press]
▶ NRG Energys Implied Volatility Is Rising   [12:35PM  Market Realist]
▶ What Analysts Recommend for PPL   [Apr-21-17 10:36AM  Market Realist]
▶ What Does PPLs Implied Volatility Suggest?   [09:06AM  Market Realist]
▶ What Does PPLs Current Valuation Indicate?   [07:36AM  Market Realist]
▶ These Factors Could Drive PPLs 1Q17 Earnings   [12:05PM  Market Realist]
▶ Why PPL Stock Could Go Higher from Here   [10:38AM  Market Realist]
▶ Opening Bell, April 19, 2017   [Apr-19-17 09:30AM  CNBC Videos]
▶ Today's Bell Ringer, April 19, 2017   [09:15AM  CNBC Videos]
▶ Analysts Views on PPL Corporation and Its Price Targets   [Apr-04-17 02:05PM  Market Realist]
▶ Whats PPL Corporations Implied Volatility?   [12:35PM  Market Realist]
▶ PPLs Valuation Compared to Utility Giants   [11:03AM  Market Realist]
▶ What to Expect from PPL Corporation in 2017   [11:03AM  Market Realist]
▶ Analysts Are the Most Bearish on These Utility Stocks   [Apr-03-17 05:35PM  Market Realist]
▶ Why These Utility Stocks Should Concern You   [Mar-29-17 02:35PM  Market Realist]
▶ Hate Checking Your Portfolio? Try These 3 Stocks   [Mar-18-17 08:06AM  at Motley Fool]
▶ PPL Electric Utilities getting ready for storm   [Mar-13-17 10:28AM  PR Newswire]
▶ 3 Utility Stocks That Will Pay You To Invest In Them   [Feb-13-17 03:10PM  at Insider Monkey]
▶ PPL Corporation Reports 2016 Earnings   [07:10AM  PR Newswire]
Stock chart of PPL Financial statements of PPL Annual reports of PPL
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.