Intrinsic value of Viper Energy Partners Un - VNOM

Previous Close

$21.78

  Intrinsic Value

$1.20

stock screener

  Rating & Target

str. sell

-94%

Previous close

$21.78

 
Intrinsic value

$1.20

 
Up/down potential

-94%

 
Rating

str. sell

We calculate the intrinsic value of VNOM 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 2.5

 

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, %
  5.33
  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
  79
  126
  195
  292
  424
  598
  822
  1,103
  1,449
  1,864
  2,354
  2,924
  3,574
  4,308
  5,126
  6,028
  7,011
  8,077
  9,221
  10,444
  11,742
  13,114
  14,559
  16,075
  17,663
  19,321
  21,049
  22,850
  24,723
  26,671
  28,696
Variable operating expenses, $m
 
  85
  131
  196
  284
  401
  552
  740
  972
  1,251
  1,580
  1,962
  2,398
  2,891
  3,440
  4,044
  4,705
  5,419
  6,187
  7,008
  7,879
  8,799
  9,769
  10,786
  11,852
  12,964
  14,124
  15,332
  16,589
  17,896
  19,255
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
  88
  85
  131
  196
  284
  401
  552
  740
  972
  1,251
  1,580
  1,962
  2,398
  2,891
  3,440
  4,044
  4,705
  5,419
  6,187
  7,008
  7,879
  8,799
  9,769
  10,786
  11,852
  12,964
  14,124
  15,332
  16,589
  17,896
  19,255
Operating income, $m
  -9
  42
  64
  96
  139
  197
  270
  363
  477
  613
  775
  962
  1,176
  1,417
  1,687
  1,983
  2,307
  2,657
  3,034
  3,436
  3,863
  4,314
  4,790
  5,289
  5,811
  6,356
  6,925
  7,518
  8,134
  8,775
  9,441
EBITDA, $m
  21
  89
  138
  207
  300
  423
  582
  781
  1,025
  1,319
  1,666
  2,069
  2,530
  3,049
  3,628
  4,266
  4,962
  5,716
  6,526
  7,391
  8,309
  9,281
  10,303
  11,376
  12,500
  13,673
  14,896
  16,171
  17,496
  18,875
  20,307
Interest expense (income), $m
  2
  4
  7
  11
  16
  23
  33
  45
  60
  79
  102
  129
  160
  195
  236
  280
  330
  383
  442
  504
  571
  642
  717
  796
  879
  966
  1,057
  1,151
  1,250
  1,352
  1,459
Earnings before tax, $m
  -11
  37
  57
  85
  124
  174
  238
  318
  416
  534
  673
  833
  1,016
  1,222
  1,451
  1,703
  1,977
  2,274
  2,592
  2,932
  3,292
  3,672
  4,072
  4,492
  4,932
  5,390
  5,868
  6,366
  6,884
  7,422
  7,982
Tax expense, $m
  0
  10
  15
  23
  33
  47
  64
  86
  112
  144
  182
  225
  274
  330
  392
  460
  534
  614
  700
  792
  889
  991
  1,100
  1,213
  1,332
  1,455
  1,584
  1,719
  1,859
  2,004
  2,155
Net income, $m
  -11
  27
  42
  62
  90
  127
  174
  232
  304
  390
  491
  608
  742
  892
  1,059
  1,243
  1,443
  1,660
  1,892
  2,140
  2,403
  2,681
  2,973
  3,279
  3,600
  3,935
  4,284
  4,647
  5,025
  5,418
  5,827

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  9
  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
  671
  1,062
  1,641
  2,454
  3,561
  5,024
  6,907
  9,271
  12,173
  15,664
  19,785
  24,569
  30,038
  36,205
  43,077
  50,651
  58,920
  67,870
  77,489
  87,761
  98,669
  110,200
  122,342
  135,086
  148,425
  162,358
  176,886
  192,016
  207,758
  224,126
  241,139
Adjusted assets (=assets-cash), $m
  662
  1,062
  1,641
  2,454
  3,561
  5,024
  6,907
  9,271
  12,173
  15,664
  19,785
  24,569
  30,038
  36,205
  43,077
  50,651
  58,920
  67,870
  77,489
  87,761
  98,669
  110,200
  122,342
  135,086
  148,425
  162,358
  176,886
  192,016
  207,758
  224,126
  241,139
Revenue / Adjusted assets
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
  0.119
Average production assets, $m
  548
  876
  1,353
  2,024
  2,937
  4,143
  5,696
  7,646
  10,039
  12,918
  16,316
  20,261
  24,771
  29,858
  35,525
  41,771
  48,589
  55,971
  63,903
  72,374
  81,369
  90,879
  100,892
  111,401
  122,402
  133,892
  145,873
  158,350
  171,332
  184,830
  198,860
Working capital, $m
  21
  19
  30
  44
  64
  91
  125
  168
  220
  283
  358
  444
  543
  655
  779
  916
  1,066
  1,228
  1,402
  1,587
  1,785
  1,993
  2,213
  2,443
  2,685
  2,937
  3,200
  3,473
  3,758
  4,054
  4,362
Total debt, $m
  121
  196
  303
  454
  660
  932
  1,283
  1,722
  2,262
  2,912
  3,678
  4,568
  5,585
  6,732
  8,010
  9,419
  10,957
  12,622
  14,411
  16,321
  18,350
  20,495
  22,754
  25,124
  27,605
  30,197
  32,899
  35,713
  38,641
  41,685
  44,850
Total liabilities, $m
  123
  198
  305
  456
  662
  934
  1,285
  1,724
  2,264
  2,914
  3,680
  4,570
  5,587
  6,734
  8,012
  9,421
  10,959
  12,624
  14,413
  16,323
  18,352
  20,497
  22,756
  25,126
  27,607
  30,199
  32,901
  35,715
  38,643
  41,687
  44,852
Total equity, $m
  548
  865
  1,336
  1,998
  2,899
  4,090
  5,622
  7,547
  9,909
  12,751
  16,105
  19,999
  24,451
  29,471
  35,065
  41,230
  47,961
  55,247
  63,076
  71,437
  80,317
  89,703
  99,587
  109,960
  120,818
  132,159
  143,985
  156,301
  169,115
  182,439
  196,287
Total liabilities and equity, $m
  671
  1,063
  1,641
  2,454
  3,561
  5,024
  6,907
  9,271
  12,173
  15,665
  19,785
  24,569
  30,038
  36,205
  43,077
  50,651
  58,920
  67,871
  77,489
  87,760
  98,669
  110,200
  122,343
  135,086
  148,425
  162,358
  176,886
  192,016
  207,758
  224,126
  241,139
Debt-to-equity ratio
  0.221
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
  0.230
Adjusted equity ratio
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814
  0.814

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -11
  27
  42
  62
  90
  127
  174
  232
  304
  390
  491
  608
  742
  892
  1,059
  1,243
  1,443
  1,660
  1,892
  2,140
  2,403
  2,681
  2,973
  3,279
  3,600
  3,935
  4,284
  4,647
  5,025
  5,418
  5,827
Depreciation, amort., depletion, $m
  30
  48
  74
  111
  160
  226
  311
  418
  549
  706
  892
  1,107
  1,354
  1,632
  1,941
  2,283
  2,655
  3,059
  3,492
  3,955
  4,446
  4,966
  5,513
  6,087
  6,689
  7,316
  7,971
  8,653
  9,362
  10,100
  10,867
Funds from operations, $m
  67
  75
  116
  173
  251
  353
  485
  650
  852
  1,096
  1,383
  1,715
  2,095
  2,524
  3,000
  3,526
  4,098
  4,718
  5,384
  6,095
  6,849
  7,647
  8,486
  9,367
  10,289
  11,251
  12,255
  13,300
  14,388
  15,518
  16,693
Change in working capital, $m
  -2
  7
  10
  15
  20
  26
  34
  43
  52
  63
  75
  87
  99
  112
  124
  137
  150
  162
  174
  186
  197
  209
  220
  231
  241
  252
  263
  274
  285
  296
  308
Cash from operations, $m
  69
  68
  105
  158
  231
  327
  451
  607
  800
  1,033
  1,308
  1,629
  1,996
  2,412
  2,876
  3,389
  3,949
  4,556
  5,210
  5,909
  6,652
  7,438
  8,267
  9,136
  10,047
  10,999
  11,992
  13,027
  14,103
  15,222
  16,386
Maintenance CAPEX, $m
  0
  -30
  -48
  -74
  -111
  -160
  -226
  -311
  -418
  -549
  -706
  -892
  -1,107
  -1,354
  -1,632
  -1,941
  -2,283
  -2,655
  -3,059
  -3,492
  -3,955
  -4,446
  -4,966
  -5,513
  -6,087
  -6,689
  -7,316
  -7,971
  -8,653
  -9,362
  -10,100
New CAPEX, $m
  0
  -328
  -477
  -671
  -913
  -1,207
  -1,553
  -1,950
  -2,394
  -2,879
  -3,398
  -3,945
  -4,510
  -5,086
  -5,667
  -6,246
  -6,819
  -7,381
  -7,932
  -8,470
  -8,996
  -9,509
  -10,013
  -10,509
  -11,000
  -11,490
  -11,981
  -12,477
  -12,982
  -13,498
  -14,030
Cash from investing activities, $m
  -206
  -358
  -525
  -745
  -1,024
  -1,367
  -1,779
  -2,261
  -2,812
  -3,428
  -4,104
  -4,837
  -5,617
  -6,440
  -7,299
  -8,187
  -9,102
  -10,036
  -10,991
  -11,962
  -12,951
  -13,955
  -14,979
  -16,022
  -17,087
  -18,179
  -19,297
  -20,448
  -21,635
  -22,860
  -24,130
Free cash flow, $m
  -137
  -290
  -420
  -586
  -793
  -1,040
  -1,328
  -1,654
  -2,011
  -2,395
  -2,796
  -3,208
  -3,621
  -4,028
  -4,423
  -4,799
  -5,152
  -5,480
  -5,781
  -6,053
  -6,299
  -6,518
  -6,713
  -6,886
  -7,040
  -7,179
  -7,305
  -7,422
  -7,532
  -7,638
  -7,744
Issuance/(repayment) of debt, $m
  86
  75
  108
  151
  206
  272
  350
  440
  540
  649
  766
  890
  1,017
  1,147
  1,278
  1,409
  1,538
  1,665
  1,789
  1,910
  2,029
  2,145
  2,258
  2,370
  2,481
  2,592
  2,702
  2,814
  2,928
  3,044
  3,164
Issuance/(repurchase) of shares, $m
  126
  298
  429
  600
  811
  1,064
  1,359
  1,692
  2,059
  2,452
  2,863
  3,286
  3,710
  4,129
  4,535
  4,922
  5,287
  5,626
  5,938
  6,221
  6,476
  6,706
  6,911
  7,094
  7,258
  7,406
  7,542
  7,669
  7,789
  7,905
  8,021
Cash from financing (excl. dividends), $m  
  211
  373
  537
  751
  1,017
  1,336
  1,709
  2,132
  2,599
  3,101
  3,629
  4,176
  4,727
  5,276
  5,813
  6,331
  6,825
  7,291
  7,727
  8,131
  8,505
  8,851
  9,169
  9,464
  9,739
  9,998
  10,244
  10,483
  10,717
  10,949
  11,185
Total cash flow (excl. dividends), $m
  74
  82
  117
  165
  224
  296
  381
  478
  587
  706
  834
  968
  1,106
  1,248
  1,390
  1,532
  1,673
  1,811
  1,946
  2,078
  2,207
  2,333
  2,456
  2,578
  2,699
  2,819
  2,939
  3,061
  3,185
  3,311
  3,442
Retained Cash Flow (-), $m
  -53
  -326
  -471
  -662
  -901
  -1,191
  -1,533
  -1,924
  -2,363
  -2,842
  -3,354
  -3,894
  -4,452
  -5,021
  -5,594
  -6,165
  -6,730
  -7,286
  -7,830
  -8,361
  -8,879
  -9,386
  -9,884
  -10,373
  -10,858
  -11,341
  -11,826
  -12,316
  -12,814
  -13,324
  -13,848
Prev. year cash balance distribution, $m
 
  9
  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
 
  -234
  -354
  -497
  -677
  -895
  -1,152
  -1,446
  -1,775
  -2,135
  -2,521
  -2,926
  -3,345
  -3,773
  -4,203
  -4,633
  -5,058
  -5,475
  -5,884
  -6,283
  -6,673
  -7,054
  -7,427
  -7,795
  -8,160
  -8,523
  -8,887
  -9,255
  -9,629
  -10,012
  -10,406
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  -224
  -324
  -433
  -557
  -694
  -836
  -977
  -1,110
  -1,227
  -1,322
  -1,390
  -1,428
  -1,434
  -1,411
  -1,360
  -1,285
  -1,191
  -1,084
  -967
  -848
  -730
  -616
  -511
  -416
  -332
  -259
  -199
  -149
  -109
  -78
Current shareholders' claim on cash, %
  100
  89.1
  80.3
  73.0
  67.0
  62.0
  57.7
  54.1
  51.1
  48.4
  46.1
  44.1
  42.4
  40.9
  39.5
  38.3
  37.3
  36.3
  35.5
  34.7
  34.1
  33.4
  32.9
  32.4
  31.9
  31.5
  31.1
  30.7
  30.4
  30.1
  29.8

Viper Energy Partners LP is engaged in owning, acquiring and exploiting oil and natural gas properties in North America. The Company's assets are located in the Permian Basin of West Texas. As of December 31, 2016, the Permian Basin consisted of approximately 85,000 square miles. As of December 31, 2016, its assets consisted of mineral interests underlying 107,568 gross acres in the Permian Basin. As of December 31, 2016, there were 545 vertical wells and 190 horizontal wells producing on this acreage. As of December 31, 2016, its estimated proved oil and natural gas reserves of its assets was 31,435 thousand barrels of crude oil equivalent (MBOE). As of December 31, 2016, the Company's proved reserves were approximately 68% oil, 18% natural gas liquids and 14% natural gas. In addition to its mineral interests, the Company owns a minor equity interest in an entity that owns mineral, overriding royalty, net profits, leasehold and other similar interests.

FINANCIAL RATIOS  of  Viper Energy Partners Un (VNOM)

Valuation Ratios
P/E Ratio -173.8
Price to Sales 24.2
Price to Book 3.5
Price to Tangible Book
Price to Cash Flow 27.7
Price to Free Cash Flow 27.7
Growth Rates
Sales Growth Rate 5.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate -100%
Financial Strength
Quick Ratio NaN
Current Ratio 0.5
LT Debt to Equity 22.1%
Total Debt to Equity 22.1%
Interest Coverage -5
Management Effectiveness
Return On Assets -1.5%
Ret/ On Assets - 3 Yr. Avg. 4.2%
Return On Total Capital -1.8%
Ret/ On T. Cap. - 3 Yr. Avg. 2.9%
Return On Equity -2.1%
Return On Equity - 3 Yr. Avg. 4.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 93.7%
Gross Margin - 3 Yr. Avg. 92.7%
EBITDA Margin 26.6%
EBITDA Margin - 3 Yr. Avg. 67.6%
Operating Margin -11.4%
Oper. Margin - 3 Yr. Avg. 24.8%
Pre-Tax Margin -13.9%
Pre-Tax Margin - 3 Yr. Avg. 18.8%
Net Profit Margin -13.9%
Net Profit Margin - 3 Yr. Avg. 18.8%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio -590.9%

VNOM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the VNOM stock intrinsic value calculation we used $79 million for the last fiscal year's total revenue generated by Viper Energy Partners Un. The default revenue input number comes from 2016 income statement of Viper Energy Partners Un. 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 VNOM 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 4.3%, whose default value for VNOM is calculated based on our internal credit rating of Viper Energy Partners Un, 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 Viper Energy Partners Un.
    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 VNOM stock the variable cost ratio is equal to 67.1%.

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 VNOM 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 3.5% for Viper Energy Partners Un.

Corporate tax rate of 27% is the nominal tax rate for Viper Energy Partners Un. 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 VNOM 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 VNOM are equal to 693%.

Life of production assets of 18.3 years is the average useful life of capital assets used in Viper Energy Partners Un 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 VNOM is equal to 15.2%. 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 - $548 million for Viper Energy Partners Un - 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 113.795 million for Viper Energy Partners Un 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 Viper Energy Partners Un at the current share price and the inputted number of shares is $2.5 billion.

RELATED COMPANIES Price Int.Val. Rating
BSM Black Stone Mi 18.25 0.93  str.sell
TPL Texas Pacific 400.00 2,443.40  str.buy
PBT Permian Basin 8.97 128.45  str.buy
SDT SandRidge Miss 1.07 4.72  str.buy

COMPANY NEWS

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▶ Whats Driving Viper Energy Partners Stock in 2017   [Nov-20-17 07:34AM  Market Realist]
▶ Top 3 Mid-Cap Oil E&P Stocks for 2017   [Nov-03-17 02:49PM  Investopedia]
▶ Viper Energy beats Street 3Q forecasts   [Oct-24-17 04:05PM  Associated Press]
▶ Are Institutional Investors Bearish on VNOM and BSM?   [Oct-10-17 10:37AM  Market Realist]
▶ Which MLPs Saw Ratings Upgrades Last Week?   [Oct-09-17 04:06PM  Market Realist]
▶ Why VNOM Has Higher Margins than BSM   [Oct-06-17 05:36PM  Market Realist]
▶ Behind VNOMs and BSMs Net Royalty Acres   [04:06PM  Market Realist]
▶ Behind Viper Energys Outperformance   [02:07PM  Market Realist]
▶ Reading Viper Energy Partners Analyst Ratings   [Oct-03-17 01:37PM  Market Realist]
▶ Is It Too Late To Buy Viper Energy Partners LP (VNOM)?   [Sep-28-17 04:55PM  Simply Wall St.]
▶ These MLPs Fell at Least 6% Last Week   [Aug-22-17 02:05PM  Market Realist]
▶ Your MLP Ratings Updates from Last Week   [12:10PM  Market Realist]
▶ Viper Energy beats Street 2Q forecasts   [Aug-01-17 08:17PM  Associated Press]
▶ Why these MLPs Rose More than 5% Last Week   [03:07PM  Market Realist]
▶ Viper Energy beats Street 1Q forecasts   [May-02-17 07:39PM  Associated Press]
▶ Viper Energy beats Street 4Q forecasts   [Feb-14-17 04:45PM  Associated Press]
Financial statements of VNOM
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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