Intrinsic value of Weatherford International - WFT

Previous Close

$3.44

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$3.44

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of WFT 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
(a)
   1
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -100.00
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  0
  5,813
  5,947
  6,100
  6,271
  6,461
  6,670
  6,897
  7,143
  7,408
  7,692
  7,996
  8,321
  8,666
  9,033
  9,423
  9,836
  10,273
  10,735
  11,224
  11,740
  12,284
  12,858
  13,463
  14,100
  14,771
  15,478
  16,222
  17,005
  17,828
  18,694
Variable operating expenses, $m
 
  8,080
  8,259
  8,464
  8,694
  8,948
  9,228
  9,532
  9,861
  10,216
  10,597
  10,710
  11,145
  11,608
  12,100
  12,621
  13,175
  13,760
  14,379
  15,033
  15,724
  16,453
  17,222
  18,032
  18,886
  19,785
  20,731
  21,728
  22,776
  23,879
  25,039
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
  0
  8,080
  8,259
  8,464
  8,694
  8,948
  9,228
  9,532
  9,861
  10,216
  10,597
  10,710
  11,145
  11,608
  12,100
  12,621
  13,175
  13,760
  14,379
  15,033
  15,724
  16,453
  17,222
  18,032
  18,886
  19,785
  20,731
  21,728
  22,776
  23,879
  25,039
Operating income, $m
  0
  -2,267
  -2,312
  -2,364
  -2,422
  -2,487
  -2,558
  -2,635
  -2,718
  -2,808
  -2,905
  -2,714
  -2,824
  -2,941
  -3,066
  -3,198
  -3,338
  -3,487
  -3,644
  -3,810
  -3,985
  -4,169
  -4,364
  -4,569
  -4,786
  -5,014
  -5,253
  -5,506
  -5,772
  -6,051
  -6,345
EBITDA, $m
  0
  -1,301
  -1,331
  -1,365
  -1,404
  -1,446
  -1,493
  -1,544
  -1,599
  -1,658
  -1,722
  -1,790
  -1,862
  -1,940
  -2,022
  -2,109
  -2,201
  -2,299
  -2,403
  -2,512
  -2,627
  -2,749
  -2,878
  -3,013
  -3,156
  -3,306
  -3,464
  -3,631
  -3,806
  -3,990
  -4,184
Interest expense (income), $m
  0
  584
  480
  495
  513
  533
  556
  580
  607
  635
  666
  700
  735
  773
  813
  856
  902
  950
  1,001
  1,055
  1,113
  1,173
  1,236
  1,304
  1,374
  1,449
  1,527
  1,610
  1,697
  1,788
  1,885
Earnings before tax, $m
  0
  -2,851
  -2,792
  -2,860
  -2,936
  -3,020
  -3,113
  -3,215
  -3,325
  -3,444
  -3,571
  -3,414
  -3,559
  -3,715
  -3,880
  -4,055
  -4,240
  -4,437
  -4,645
  -4,865
  -5,097
  -5,342
  -5,600
  -5,873
  -6,160
  -6,462
  -6,781
  -7,116
  -7,468
  -7,839
  -8,230
Tax expense, $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
Net income, $m
  0
  -2,851
  -2,792
  -2,860
  -2,936
  -3,020
  -3,113
  -3,215
  -3,325
  -3,444
  -3,571
  -3,414
  -3,559
  -3,715
  -3,880
  -4,055
  -4,240
  -4,437
  -4,645
  -4,865
  -5,097
  -5,342
  -5,600
  -5,873
  -6,160
  -6,462
  -6,781
  -7,116
  -7,468
  -7,839
  -8,230

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  0
  9,937
  10,165
  10,427
  10,720
  11,045
  11,401
  11,790
  12,210
  12,663
  13,149
  13,669
  14,223
  14,814
  15,442
  16,108
  16,814
  17,561
  18,351
  19,186
  20,068
  20,998
  21,979
  23,013
  24,102
  25,250
  26,458
  27,730
  29,068
  30,475
  31,956
Adjusted assets (=assets-cash), $m
  0
  9,937
  10,165
  10,427
  10,720
  11,045
  11,401
  11,790
  12,210
  12,663
  13,149
  13,669
  14,223
  14,814
  15,442
  16,108
  16,814
  17,561
  18,351
  19,186
  20,068
  20,998
  21,979
  23,013
  24,102
  25,250
  26,458
  27,730
  29,068
  30,475
  31,956
Revenue / Adjusted assets
  0.000
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
Average production assets, $m
  0
  6,720
  6,874
  7,051
  7,249
  7,469
  7,710
  7,973
  8,257
  8,563
  8,892
  9,244
  9,619
  10,018
  10,443
  10,893
  11,371
  11,876
  12,410
  12,975
  13,571
  14,200
  14,863
  15,563
  16,299
  17,075
  17,892
  18,752
  19,657
  20,609
  21,611
Working capital, $m
  0
  384
  392
  403
  414
  426
  440
  455
  471
  489
  508
  528
  549
  572
  596
  622
  649
  678
  709
  741
  775
  811
  849
  889
  931
  975
  1,022
  1,071
  1,122
  1,177
  1,234
Total debt, $m
  0
  6,314
  6,520
  6,755
  7,019
  7,311
  7,632
  7,982
  8,360
  8,768
  9,205
  9,673
  10,172
  10,704
  11,269
  11,868
  12,503
  13,176
  13,887
  14,639
  15,432
  16,269
  17,152
  18,083
  19,063
  20,096
  21,183
  22,328
  23,532
  24,799
  26,131
Total liabilities, $m
  0
  8,943
  9,149
  9,384
  9,648
  9,940
  10,261
  10,611
  10,989
  11,397
  11,834
  12,302
  12,801
  13,333
  13,898
  14,497
  15,132
  15,805
  16,516
  17,268
  18,061
  18,898
  19,781
  20,712
  21,692
  22,725
  23,812
  24,957
  26,161
  27,428
  28,760
Total equity, $m
  0
  994
  1,017
  1,043
  1,072
  1,104
  1,140
  1,179
  1,221
  1,266
  1,315
  1,367
  1,422
  1,481
  1,544
  1,611
  1,681
  1,756
  1,835
  1,919
  2,007
  2,100
  2,198
  2,301
  2,410
  2,525
  2,646
  2,773
  2,907
  3,048
  3,196
Total liabilities and equity, $m
  0
  9,937
  10,166
  10,427
  10,720
  11,044
  11,401
  11,790
  12,210
  12,663
  13,149
  13,669
  14,223
  14,814
  15,442
  16,108
  16,813
  17,561
  18,351
  19,187
  20,068
  20,998
  21,979
  23,013
  24,102
  25,250
  26,458
  27,730
  29,068
  30,476
  31,956
Debt-to-equity ratio
  0.000
  6.350
  6.410
  6.480
  6.550
  6.620
  6.690
  6.770
  6.850
  6.920
  7.000
  7.080
  7.150
  7.230
  7.300
  7.370
  7.440
  7.500
  7.570
  7.630
  7.690
  7.750
  7.800
  7.860
  7.910
  7.960
  8.010
  8.050
  8.100
  8.140
  8.180
Adjusted equity ratio
  0.000
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  0
  -2,851
  -2,792
  -2,860
  -2,936
  -3,020
  -3,113
  -3,215
  -3,325
  -3,444
  -3,571
  -3,414
  -3,559
  -3,715
  -3,880
  -4,055
  -4,240
  -4,437
  -4,645
  -4,865
  -5,097
  -5,342
  -5,600
  -5,873
  -6,160
  -6,462
  -6,781
  -7,116
  -7,468
  -7,839
  -8,230
Depreciation, amort., depletion, $m
  0
  966
  981
  999
  1,019
  1,041
  1,065
  1,091
  1,120
  1,150
  1,183
  924
  962
  1,002
  1,044
  1,089
  1,137
  1,188
  1,241
  1,297
  1,357
  1,420
  1,486
  1,556
  1,630
  1,708
  1,789
  1,875
  1,966
  2,061
  2,161
Funds from operations, $m
  0
  -1,885
  -1,811
  -1,861
  -1,917
  -1,980
  -2,048
  -2,124
  -2,205
  -2,293
  -2,388
  -2,489
  -2,597
  -2,713
  -2,835
  -2,965
  -3,103
  -3,250
  -3,404
  -3,567
  -3,740
  -3,922
  -4,114
  -4,317
  -4,530
  -4,755
  -4,991
  -5,241
  -5,503
  -5,779
  -6,069
Change in working capital, $m
  0
  8
  9
  10
  11
  13
  14
  15
  16
  17
  19
  20
  21
  23
  24
  26
  27
  29
  31
  32
  34
  36
  38
  40
  42
  44
  47
  49
  52
  54
  57
Cash from operations, $m
  0
  -1,893
  -1,820
  -1,871
  -1,928
  -1,992
  -2,062
  -2,139
  -2,221
  -2,311
  -2,407
  -2,509
  -2,619
  -2,735
  -2,860
  -2,991
  -3,131
  -3,278
  -3,435
  -3,600
  -3,774
  -3,958
  -4,152
  -4,357
  -4,572
  -4,799
  -5,038
  -5,290
  -5,554
  -5,833
  -6,126
Maintenance CAPEX, $m
  0
  -659
  -672
  -687
  -705
  -725
  -747
  -771
  -797
  -826
  -856
  -889
  -924
  -962
  -1,002
  -1,044
  -1,089
  -1,137
  -1,188
  -1,241
  -1,297
  -1,357
  -1,420
  -1,486
  -1,556
  -1,630
  -1,708
  -1,789
  -1,875
  -1,966
  -2,061
New CAPEX, $m
  0
  -133
  -155
  -177
  -198
  -220
  -241
  -263
  -284
  -306
  -329
  -352
  -375
  -399
  -425
  -450
  -477
  -505
  -534
  -565
  -596
  -629
  -663
  -699
  -737
  -776
  -817
  -860
  -905
  -952
  -1,001
Cash from investing activities, $m
  0
  -792
  -827
  -864
  -903
  -945
  -988
  -1,034
  -1,081
  -1,132
  -1,185
  -1,241
  -1,299
  -1,361
  -1,427
  -1,494
  -1,566
  -1,642
  -1,722
  -1,806
  -1,893
  -1,986
  -2,083
  -2,185
  -2,293
  -2,406
  -2,525
  -2,649
  -2,780
  -2,918
  -3,062
Free cash flow, $m
  0
  -2,685
  -2,646
  -2,735
  -2,832
  -2,937
  -3,050
  -3,172
  -3,303
  -3,443
  -3,592
  -3,750
  -3,918
  -4,097
  -4,286
  -4,486
  -4,697
  -4,921
  -5,157
  -5,405
  -5,668
  -5,944
  -6,235
  -6,542
  -6,865
  -7,205
  -7,563
  -7,939
  -8,335
  -8,751
  -9,188
Issuance/(repayment) of debt, $m
  0
  -1,375
  206
  235
  264
  292
  321
  349
  378
  408
  437
  468
  499
  532
  565
  600
  635
  673
  711
  751
  793
  837
  883
  931
  981
  1,033
  1,087
  1,144
  1,204
  1,267
  1,333
Issuance/(repurchase) of shares, $m
  0
  4,416
  2,815
  2,886
  2,965
  3,053
  3,149
  3,254
  3,367
  3,489
  3,620
  3,466
  3,615
  3,774
  3,942
  4,121
  4,311
  4,512
  4,724
  4,948
  5,185
  5,435
  5,699
  5,976
  6,269
  6,577
  6,901
  7,243
  7,602
  7,980
  8,378
Cash from financing (excl. dividends), $m  
  0
  3,041
  3,021
  3,121
  3,229
  3,345
  3,470
  3,603
  3,745
  3,897
  4,057
  3,934
  4,114
  4,306
  4,507
  4,721
  4,946
  5,185
  5,435
  5,699
  5,978
  6,272
  6,582
  6,907
  7,250
  7,610
  7,988
  8,387
  8,806
  9,247
  9,711
Total cash flow (excl. dividends), $m
  0
  356
  375
  386
  397
  409
  420
  431
  442
  454
  465
  183
  196
  208
  221
  235
  249
  264
  279
  295
  311
  328
  346
  365
  384
  405
  426
  449
  472
  497
  522
Retained Cash Flow (-), $m
  0
  -4,416
  -2,815
  -2,886
  -2,965
  -3,053
  -3,149
  -3,254
  -3,367
  -3,489
  -3,620
  -3,466
  -3,615
  -3,774
  -3,942
  -4,121
  -4,311
  -4,512
  -4,724
  -4,948
  -5,185
  -5,435
  -5,699
  -5,976
  -6,269
  -6,577
  -6,901
  -7,243
  -7,602
  -7,980
  -8,378
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
 
  68
  70
  71
  73
  75
  78
  80
  83
  86
  89
  92
  96
  100
  104
  108
  113
  118
  123
  129
  135
  141
  147
  154
  162
  169
  177
  186
  195
  204
  214
Cash available for distribution, $m
 
  -4,060
  -2,440
  -2,500
  -2,568
  -2,644
  -2,729
  -2,823
  -2,925
  -3,035
  -3,154
  -3,282
  -3,419
  -3,565
  -3,721
  -3,886
  -4,062
  -4,248
  -4,445
  -4,654
  -4,874
  -5,107
  -5,353
  -5,612
  -5,885
  -6,172
  -6,475
  -6,794
  -7,130
  -7,484
  -7,856
Discount rate, %
 
  15.30
  16.07
  16.87
  17.71
  18.60
  19.53
  20.50
  21.53
  22.61
  23.74
  24.92
  26.17
  27.48
  28.85
  30.29
  31.81
  33.40
  35.07
  36.82
  38.66
  40.60
  42.63
  44.76
  46.99
  49.34
  51.81
  54.40
  57.12
  59.98
  62.98
PV of cash for distribution, $m
 
  -3,521
  -1,812
  -1,566
  -1,337
  -1,127
  -936
  -765
  -615
  -485
  -375
  -284
  -210
  -152
  -107
  -73
  -49
  -32
  -20
  -12
  -7
  -4
  -2
  -1
  -1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  13.0
  3.4
  0.9
  0.2
  0.1
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Weatherford International public limited company, together with its subsidiaries, operates as a multinational oilfield service company worldwide. It offers equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells. The company operates through three business groups: Formation Evaluation and Well Construction, Completion and Production, and Land Drilling Rigs. The Formation Evaluation and Well Construction business group provides managed-pressure drilling, drilling services, tubular running services, drilling tools and rental equipment, wireline services, testing and production services, re-entry and fishing services, cementing products, liner systems, reservoir solutions, and surface logging systems. The Completion and Production business group offers artificial lift systems, and stimulation and completion systems. The Land Drilling Rigs business group provides onshore contract drilling services and related operations, as well as operates a fleet of land drilling and workover rigs. Weatherford International public limited company was founded in 1972 and is headquartered in Baar, Switzerland.

FINANCIAL RATIOS  of  Weatherford International (WFT)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

WFT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WFT stock intrinsic value calculation we used $5699 million for the last fiscal year's total revenue generated by Weatherford International. The default revenue input number comes from income statement of Weatherford International. 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 WFT stock valuation model: a) initial revenue growth rate of 2% 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 15.3%, whose default value for WFT is calculated based on our internal credit rating of Weatherford International, 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 Weatherford International.
    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 WFT stock the variable cost ratio is equal to 139.1%.

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 WFT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 7.6% for Weatherford International.

Corporate tax rate of 27% is the nominal tax rate for Weatherford International. 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 WFT stock is equal to 1.2%.

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 WFT are equal to 115.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Weatherford International 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 WFT is equal to 6.6%. 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 - $-571 million for Weatherford International - 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 990 million for Weatherford International 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 Weatherford International at the current share price and the inputted number of shares is $3.4 billion.

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COMPANY NEWS

▶ Weatherford sells land drilling rig operations in Middle East for $287.5M   [Jul-12-18 02:56PM  American City Business Journals]
▶ [$$] Weatherford International targeted by activist investor   [Jun-24-18 01:40AM  Financial Times]
▶ Weatherford Announces Conference Call   [Jun-18-18 08:00AM  PR Newswire]
▶ Weatherford reportedly considering selling laboratory business   [Jun-12-18 12:40PM  American City Business Journals]
▶ Weatherford Plans Sale of Laboratories Business   [Jun-11-18 01:26PM  Bloomberg]
▶ At $3.47, Is Weatherford International plc (NYSE:WFT) A Buy?   [Jun-01-18 08:42PM  Simply Wall St.]
▶ Weatherford CEO named to Houston chemical companys board   [08:48AM  American City Business Journals]
▶ [$$] Citigroup Stock Sales: Citi, GE, Tesla, Weatherford   [May-16-18 08:00AM  Barrons.com]
▶ Weatherford Introduces Magnus Rotary Steerable System   [Apr-26-18 08:30AM  PR Newswire]
▶ Why Weatherford International PLCs Stock Is Rising Today   [Apr-05-18 04:13PM  Motley Fool]
▶ An Oil Services Pair Trade From Piper Jaffray   [Apr-03-18 04:19PM  Benzinga]
▶ Four Penny Stocks Billionaires Are Invested In   [Mar-15-18 12:06PM  Insider Monkey]
▶ Weatherford Publishes Digital 2017 Annual Report   [Mar-13-18 05:30PM  PR Newswire]
▶ Weatherford Names New Director   [Mar-12-18 04:15PM  PR Newswire]
▶ Weatherford Announces Conference Call   [07:30AM  PR Newswire]
▶ Multi-State Surplus Real Estate Auction Set for April   [Mar-06-18 09:00AM  PR Newswire]
▶ Southwestern Energy names new CFO amid other leadership changes   [Feb-28-18 08:55AM  American City Business Journals]
▶ Blue Skies Ahead For Weatherford?   [03:58PM  Forbes]
▶ 6 Big-Cap Stocks Already Plunging During Monday's Selloff   [Feb-05-18 10:37AM  TheStreet.com]
▶ Weatherford (WFT) Q4 Loss Wider than Expected   [Feb-02-18 09:48AM  Zacks]
▶ Weatherford reports 4Q loss   [09:05AM  Associated Press]
▶ What Are Baker Hughess 2018 Growth Prospects?   [Jan-25-18 04:35PM  Market Realist]
▶ Halliburton upbeat on 2018 as oil recovery spreads   [Jan-22-18 02:19PM  Reuters]
▶ Weatherfords Stock Price Forecast   [10:35AM  Market Realist]
▶ Will Rig Counts Affect Weatherford in 4Q17?   [09:05AM  Market Realist]
▶ Weatherford Managements Views ahead of 4Q17 Earnings   [Jan-18-18 05:40PM  Market Realist]
▶ What Do Analysts Expect from Baker Hughess 4Q17 Earnings?   [Jan-11-18 11:29AM  Market Realist]
▶ Schlumberger: Analysts Recommendation before 4Q17   [Jan-10-18 07:33AM  Market Realist]
▶ This Oilfield Services Stock Lost the Most This Week   [Jan-04-18 11:00AM  Market Realist]
▶ Weatherford sells U.S. fracking business to Schlumberger instead of forming JV   [Jan-03-18 12:20PM  American City Business Journals]
Financial statements of WFT
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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