Intrinsic value of WEC Energy Group - WEC

Previous Close

$64.85

  Intrinsic Value

$50.36

stock screener

  Rating & Target

sell

-22%

  Value-price divergence*

-95%

Previous close

$64.85

 
Intrinsic value

$50.36

 
Up/down potential

-22%

 
Rating

sell

 
Value-price divergence*

-95%

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

We calculate the intrinsic value of WEC 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 20.7

 

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, %
  26.09
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
Revenue, $m
  7,424
  7,846
  8,238
  8,650
  9,082
  9,536
  10,013
  10,514
  11,040
  11,592
  12,171
  12,780
  13,419
  14,090
  14,794
  15,534
  16,310
  17,126
  17,982
  18,881
  19,825
  20,817
  21,858
  22,950
  24,098
  25,303
  26,568
  27,896
  29,291
  30,756
  32,294
Variable operating expenses, $m
 
  5,641
  5,908
  6,188
  6,483
  6,792
  7,116
  7,456
  7,814
  8,190
  8,584
  8,693
  9,128
  9,584
  10,063
  10,567
  11,095
  11,650
  12,232
  12,844
  13,486
  14,160
  14,868
  15,612
  16,392
  17,212
  18,072
  18,976
  19,925
  20,921
  21,967
Fixed operating expenses, $m
 
  426
  437
  448
  459
  471
  482
  494
  507
  520
  533
  546
  559
  573
  588
  602
  618
  633
  649
  665
  682
  699
  716
  734
  752
  771
  791
  810
  831
  851
  873
Total operating expenses, $m
  5,790
  6,067
  6,345
  6,636
  6,942
  7,263
  7,598
  7,950
  8,321
  8,710
  9,117
  9,239
  9,687
  10,157
  10,651
  11,169
  11,713
  12,283
  12,881
  13,509
  14,168
  14,859
  15,584
  16,346
  17,144
  17,983
  18,863
  19,786
  20,756
  21,772
  22,840
Operating income, $m
  1,682
  1,778
  1,893
  2,013
  2,140
  2,274
  2,415
  2,563
  2,719
  2,882
  3,055
  3,541
  3,731
  3,932
  4,143
  4,365
  4,598
  4,843
  5,101
  5,373
  5,658
  5,958
  6,273
  6,605
  6,953
  7,320
  7,705
  8,110
  8,536
  8,983
  9,454
EBITDA, $m
  2,445
  2,301
  2,427
  2,559
  2,698
  2,845
  2,999
  3,161
  3,331
  3,510
  3,699
  3,897
  4,106
  4,325
  4,556
  4,798
  5,053
  5,321
  5,603
  5,899
  6,211
  6,539
  6,883
  7,245
  7,626
  8,026
  8,446
  8,888
  9,353
  9,841
  10,355
Interest expense (income), $m
  412
  406
  449
  493
  540
  589
  640
  694
  751
  810
  873
  939
  1,008
  1,080
  1,156
  1,236
  1,319
  1,407
  1,500
  1,597
  1,698
  1,805
  1,918
  2,035
  2,159
  2,289
  2,425
  2,569
  2,719
  2,877
  3,043
Earnings before tax, $m
  1,507
  1,372
  1,444
  1,520
  1,601
  1,685
  1,775
  1,869
  1,968
  2,072
  2,182
  2,602
  2,724
  2,852
  2,987
  3,129
  3,279
  3,436
  3,602
  3,776
  3,959
  4,152
  4,356
  4,569
  4,794
  5,031
  5,280
  5,541
  5,817
  6,106
  6,411
Tax expense, $m
  567
  371
  390
  410
  432
  455
  479
  505
  531
  559
  589
  703
  735
  770
  806
  845
  885
  928
  972
  1,020
  1,069
  1,121
  1,176
  1,234
  1,294
  1,358
  1,425
  1,496
  1,570
  1,649
  1,731
Net income, $m
  940
  1,002
  1,054
  1,110
  1,168
  1,230
  1,295
  1,364
  1,436
  1,513
  1,593
  1,900
  1,988
  2,082
  2,181
  2,284
  2,393
  2,508
  2,629
  2,756
  2,890
  3,031
  3,180
  3,336
  3,500
  3,672
  3,854
  4,045
  4,246
  4,458
  4,680

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  38
  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
  30,123
  31,635
  33,217
  34,878
  36,622
  38,453
  40,376
  42,395
  44,514
  46,740
  49,077
  51,531
  54,107
  56,813
  59,653
  62,636
  65,768
  69,056
  72,509
  76,135
  79,941
  83,938
  88,135
  92,542
  97,169
  102,028
  107,129
  112,485
  118,110
  124,015
  130,216
Adjusted assets (=assets-cash), $m
  30,085
  31,635
  33,217
  34,878
  36,622
  38,453
  40,376
  42,395
  44,514
  46,740
  49,077
  51,531
  54,107
  56,813
  59,653
  62,636
  65,768
  69,056
  72,509
  76,135
  79,941
  83,938
  88,135
  92,542
  97,169
  102,028
  107,129
  112,485
  118,110
  124,015
  130,216
Revenue / Adjusted assets
  0.247
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
  0.248
Average production assets, $m
  2,082
  2,189
  2,298
  2,413
  2,534
  2,661
  2,794
  2,933
  3,080
  3,234
  3,396
  3,566
  3,744
  3,931
  4,128
  4,334
  4,551
  4,778
  5,017
  5,268
  5,531
  5,808
  6,098
  6,403
  6,723
  7,059
  7,412
  7,783
  8,172
  8,581
  9,010
Working capital, $m
  -263
  753
  791
  830
  872
  915
  961
  1,009
  1,060
  1,113
  1,168
  1,227
  1,288
  1,353
  1,420
  1,491
  1,566
  1,644
  1,726
  1,813
  1,903
  1,998
  2,098
  2,203
  2,313
  2,429
  2,551
  2,678
  2,812
  2,953
  3,100
Total debt, $m
  10,176
  11,221
  12,332
  13,497
  14,722
  16,007
  17,357
  18,774
  20,262
  21,824
  23,465
  25,188
  26,996
  28,896
  30,890
  32,984
  35,182
  37,491
  39,914
  42,459
  45,132
  47,938
  50,884
  53,978
  57,226
  60,636
  64,218
  67,978
  71,926
  76,072
  80,425
Total liabilities, $m
  21,163
  22,208
  23,319
  24,484
  25,709
  26,994
  28,344
  29,761
  31,249
  32,811
  34,452
  36,175
  37,983
  39,883
  41,877
  43,971
  46,169
  48,478
  50,901
  53,446
  56,119
  58,925
  61,871
  64,965
  68,213
  71,623
  75,205
  78,965
  82,913
  87,059
  91,412
Total equity, $m
  8,960
  9,427
  9,899
  10,394
  10,913
  11,459
  12,032
  12,634
  13,265
  13,929
  14,625
  15,356
  16,124
  16,930
  17,777
  18,666
  19,599
  20,579
  21,608
  22,688
  23,823
  25,014
  26,264
  27,578
  28,956
  30,404
  31,924
  33,521
  35,197
  36,957
  38,804
Total liabilities and equity, $m
  30,123
  31,635
  33,218
  34,878
  36,622
  38,453
  40,376
  42,395
  44,514
  46,740
  49,077
  51,531
  54,107
  56,813
  59,654
  62,637
  65,768
  69,057
  72,509
  76,134
  79,942
  83,939
  88,135
  92,543
  97,169
  102,027
  107,129
  112,486
  118,110
  124,016
  130,216
Debt-to-equity ratio
  1.136
  1.190
  1.250
  1.300
  1.350
  1.400
  1.440
  1.490
  1.530
  1.570
  1.600
  1.640
  1.670
  1.710
  1.740
  1.770
  1.800
  1.820
  1.850
  1.870
  1.890
  1.920
  1.940
  1.960
  1.980
  1.990
  2.010
  2.030
  2.040
  2.060
  2.070
Adjusted equity ratio
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298
  0.298

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  940
  1,002
  1,054
  1,110
  1,168
  1,230
  1,295
  1,364
  1,436
  1,513
  1,593
  1,900
  1,988
  2,082
  2,181
  2,284
  2,393
  2,508
  2,629
  2,756
  2,890
  3,031
  3,180
  3,336
  3,500
  3,672
  3,854
  4,045
  4,246
  4,458
  4,680
Depreciation, amort., depletion, $m
  763
  523
  534
  546
  558
  571
  584
  598
  613
  628
  644
  357
  374
  393
  413
  433
  455
  478
  502
  527
  553
  581
  610
  640
  672
  706
  741
  778
  817
  858
  901
Funds from operations, $m
  2,086
  1,525
  1,588
  1,656
  1,726
  1,801
  1,879
  1,962
  2,049
  2,141
  2,237
  2,256
  2,363
  2,475
  2,593
  2,718
  2,848
  2,986
  3,131
  3,283
  3,444
  3,612
  3,789
  3,976
  4,172
  4,378
  4,595
  4,823
  5,063
  5,316
  5,581
Change in working capital, $m
  -18
  36
  38
  40
  42
  44
  46
  48
  50
  53
  56
  58
  61
  64
  68
  71
  75
  78
  82
  86
  91
  95
  100
  105
  110
  116
  121
  128
  134
  141
  148
Cash from operations, $m
  2,104
  1,489
  1,551
  1,616
  1,685
  1,757
  1,834
  1,914
  1,999
  2,088
  2,181
  2,198
  2,301
  2,411
  2,526
  2,647
  2,774
  2,908
  3,049
  3,197
  3,353
  3,517
  3,689
  3,871
  4,062
  4,263
  4,474
  4,696
  4,929
  5,175
  5,433
Maintenance CAPEX, $m
  0
  -208
  -219
  -230
  -241
  -253
  -266
  -279
  -293
  -308
  -323
  -340
  -357
  -374
  -393
  -413
  -433
  -455
  -478
  -502
  -527
  -553
  -581
  -610
  -640
  -672
  -706
  -741
  -778
  -817
  -858
New CAPEX, $m
  -1,424
  -107
  -109
  -115
  -121
  -127
  -133
  -140
  -147
  -154
  -162
  -170
  -178
  -187
  -197
  -206
  -217
  -228
  -239
  -251
  -263
  -277
  -290
  -305
  -320
  -336
  -353
  -371
  -389
  -409
  -429
Cash from investing activities, $m
  -1,270
  -315
  -328
  -345
  -362
  -380
  -399
  -419
  -440
  -462
  -485
  -510
  -535
  -561
  -590
  -619
  -650
  -683
  -717
  -753
  -790
  -830
  -871
  -915
  -960
  -1,008
  -1,059
  -1,112
  -1,167
  -1,226
  -1,287
Free cash flow, $m
  834
  1,174
  1,222
  1,271
  1,323
  1,377
  1,435
  1,495
  1,559
  1,626
  1,696
  1,688
  1,767
  1,849
  1,936
  2,027
  2,124
  2,225
  2,332
  2,444
  2,563
  2,687
  2,818
  2,956
  3,101
  3,254
  3,415
  3,584
  3,762
  3,949
  4,146
Issuance/(repayment) of debt, $m
  -141
  1,083
  1,110
  1,166
  1,224
  1,285
  1,350
  1,417
  1,488
  1,562
  1,641
  1,723
  1,809
  1,899
  1,994
  2,094
  2,199
  2,308
  2,424
  2,545
  2,672
  2,806
  2,946
  3,094
  3,248
  3,411
  3,581
  3,760
  3,948
  4,146
  4,353
Issuance/(repurchase) of shares, $m
  -66
  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  
  -221
  1,083
  1,110
  1,166
  1,224
  1,285
  1,350
  1,417
  1,488
  1,562
  1,641
  1,723
  1,809
  1,899
  1,994
  2,094
  2,199
  2,308
  2,424
  2,545
  2,672
  2,806
  2,946
  3,094
  3,248
  3,411
  3,581
  3,760
  3,948
  4,146
  4,353
Total cash flow (excl. dividends), $m
  613
  2,257
  2,333
  2,437
  2,547
  2,663
  2,784
  2,912
  3,047
  3,188
  3,337
  3,411
  3,575
  3,748
  3,930
  4,121
  4,322
  4,534
  4,756
  4,989
  5,235
  5,493
  5,765
  6,050
  6,350
  6,665
  6,996
  7,344
  7,710
  8,095
  8,499
Retained Cash Flow (-), $m
  -275
  -467
  -471
  -495
  -520
  -546
  -573
  -602
  -632
  -663
  -696
  -731
  -768
  -806
  -847
  -889
  -933
  -980
  -1,029
  -1,080
  -1,134
  -1,191
  -1,251
  -1,313
  -1,379
  -1,448
  -1,520
  -1,596
  -1,676
  -1,760
  -1,848
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
 
  1,790
  1,861
  1,942
  2,027
  2,117
  2,211
  2,310
  2,415
  2,525
  2,640
  2,680
  2,808
  2,942
  3,084
  3,232
  3,389
  3,554
  3,727
  3,909
  4,101
  4,302
  4,514
  4,737
  4,971
  5,217
  5,476
  5,748
  6,034
  6,335
  6,651
Discount rate, %
 
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
 
  1,654
  1,578
  1,498
  1,411
  1,316
  1,217
  1,114
  1,008
  902
  797
  675
  581
  493
  412
  338
  273
  216
  168
  128
  95
  69
  49
  34
  23
  15
  9
  6
  3
  2
  1
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

WEC Energy Group, Inc., through its subsidiaries, generates and distributes electric energy. The company operates through Wisconsin, Illinois, Other States, electric transmission, and We Power, Corporate and Other segments. It generates electricity from coal, natural gas, oil, hydroelectric, wind, and biomass. The company provides electric utility services to customers in the mining, paper, foundry, food products, and machinery production industries, as well as to health services, governmental, and large retail chains. It also provides retail natural gas distribution services in the state of Wisconsin, as well as transports customer-owned natural gas; and generates, distributes, and sells steam. The company serves approximately 1.6 million electric customers and 2.8 million natural gas customers. In addition, it invests in and develops real estate, including business parks and other commercial real estate projects primarily in southeastern Wisconsin. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was founded in 1981 and is headquartered in Milwaukee, Wisconsin.

FINANCIAL RATIOS  of  WEC Energy Group (WEC)

Valuation Ratios
P/E Ratio 21.8
Price to Sales 2.7
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 9.7
Price to Free Cash Flow 30.1
Growth Rates
Sales Growth Rate 26.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 12.5%
Cap. Spend. - 3 Yr. Gr. Rate 15.7%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 102.2%
Total Debt to Equity 113.6%
Interest Coverage 5
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 4.3%
Return On Total Capital 4.9%
Ret/ On T. Cap. - 3 Yr. Avg. 5.2%
Return On Equity 10.7%
Return On Equity - 3 Yr. Avg. 11.3%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 35.9%
EBITDA Margin - 3 Yr. Avg. 33.9%
Operating Margin 22.5%
Oper. Margin - 3 Yr. Avg. 22%
Pre-Tax Margin 20.2%
Pre-Tax Margin - 3 Yr. Avg. 19.1%
Net Profit Margin 12.6%
Net Profit Margin - 3 Yr. Avg. 11.7%
Effective Tax Rate 37.6%
Eff/ Tax Rate - 3 Yr. Avg. 38.7%
Payout Ratio 66.5%

WEC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WEC stock intrinsic value calculation we used $7472 million for the last fiscal year's total revenue generated by WEC Energy Group. The default revenue input number comes from 2016 income statement of WEC Energy Group. 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 WEC stock valuation model: a) initial revenue growth rate of 5% 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 8.2%, whose default value for WEC is calculated based on our internal credit rating of WEC Energy Group, 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 WEC Energy Group.
    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 WEC stock the variable cost ratio is equal to 72.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $416 million in the base year in the intrinsic value calculation for WEC 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% for WEC Energy Group.

Corporate tax rate of 27% is the nominal tax rate for WEC Energy Group. 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 WEC 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 WEC are equal to 27.9%.

Life of production assets of 10 years is the average useful life of capital assets used in WEC Energy Group 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 WEC is equal to 9.6%. 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 - $8960 million for WEC Energy Group - 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 319.426 million for WEC Energy Group 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 WEC Energy Group at the current share price and the inputted number of shares is $20.7 billion.

RELATED COMPANIES Price Int.Val. Rating
LNT Alliant Energy 42.72 14.39  str.sell
DTE DTE Energy 111.37 625.63  str.buy
DUK Duke Energy 86.55 100.67  buy
CMS CMS Energy 48.26 21.88  str.sell
XEL Xcel Energy 49.13 37.53  hold
AEE Ameren 59.91 44.93  hold

COMPANY NEWS

▶ WEC Energy beats 2Q profit forecasts   [Jul-26-17 10:23PM  Associated Press]
▶ Wisconsin Electric declares quarterly dividends   [Jul-20-17 03:19PM  PR Newswire]
▶ Peoples Gas opens training center for energy workers and public school students   [Jun-28-17 04:00PM  American City Business Journals]
▶ We Energies parent will cut coal emissions despite Trump order   [May-04-17 05:45PM  American City Business Journals]
▶ WEC Energy beats 1Q profit forecasts   [07:19AM  Associated Press]
▶ Wisconsin Electric declares quarterly dividends   [Apr-20-17 02:17PM  PR Newswire]
▶ Buy Alert: 2 Cheap Funds Paying 6.7%+   [Mar-29-17 07:42AM  at Forbes]
▶ $178 billion in profits, no taxes paid   [Mar-09-17 02:55PM  at bizjournals.com]
▶ WEC Energy misses 4Q profit forecasts   [07:28AM  Associated Press]
▶ How Is WEC Energy Valued Compared to Its Peers?   [Jan-25-17 12:05PM  Market Realist]
▶ WEC Energy Group raises quarterly dividend   [Jan-19-17 02:35PM  PR Newswire]
▶ Is WEC Energy Group Inc (WEC) A Good Stock To Buy Right Now?   [Dec-04-16 08:47PM  at Insider Monkey]
▶ WEC Energy Group announces plan to increase dividend   [Dec-01-16 04:05PM  PR Newswire]
Financial statements of WEC
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.