Intrinsic value of EXCO Resources - XCO

Previous Close

$0.56

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$0.56

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of XCO 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 0.0

 

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, %
  -23.88
  20.30
  18.77
  17.39
  16.15
  15.04
  14.03
  13.13
  12.32
  11.59
  10.93
  10.33
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
Revenue, $m
  271
  326
  387
  455
  528
  607
  693
  784
  880
  982
  1,089
  1,202
  1,320
  1,443
  1,571
  1,705
  1,843
  1,988
  2,138
  2,294
  2,456
  2,625
  2,800
  2,982
  3,172
  3,369
  3,574
  3,788
  4,011
  4,244
  4,487
Variable operating expenses, $m
 
  1,372
  1,626
  1,906
  2,212
  2,542
  2,896
  3,274
  3,676
  4,100
  4,546
  4,998
  5,487
  5,999
  6,532
  7,087
  7,665
  8,266
  8,890
  9,538
  10,212
  10,913
  11,641
  12,399
  13,187
  14,007
  14,861
  15,751
  16,679
  17,647
  18,656
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
  372
  1,372
  1,626
  1,906
  2,212
  2,542
  2,896
  3,274
  3,676
  4,100
  4,546
  4,998
  5,487
  5,999
  6,532
  7,087
  7,665
  8,266
  8,890
  9,538
  10,212
  10,913
  11,641
  12,399
  13,187
  14,007
  14,861
  15,751
  16,679
  17,647
  18,656
Operating income, $m
  -101
  -1,046
  -1,239
  -1,452
  -1,684
  -1,934
  -2,203
  -2,491
  -2,795
  -3,117
  -3,456
  -3,796
  -4,168
  -4,556
  -4,961
  -5,383
  -5,821
  -6,278
  -6,752
  -7,244
  -7,756
  -8,288
  -8,842
  -9,417
  -10,015
  -10,638
  -11,287
  -11,963
  -12,668
  -13,402
  -14,169
EBITDA, $m
  -25
  -962
  -1,143
  -1,342
  -1,559
  -1,793
  -2,045
  -2,313
  -2,598
  -2,899
  -3,216
  -3,548
  -3,896
  -4,259
  -4,637
  -5,032
  -5,442
  -5,868
  -6,311
  -6,772
  -7,250
  -7,748
  -8,265
  -8,802
  -9,362
  -9,944
  -10,551
  -11,183
  -11,841
  -12,528
  -13,245
Interest expense (income), $m
  68
  66
  25
  31
  39
  47
  56
  65
  75
  86
  97
  109
  121
  134
  148
  162
  177
  192
  208
  224
  242
  260
  278
  298
  318
  339
  360
  383
  407
  431
  457
Earnings before tax, $m
  -222
  -1,112
  -1,264
  -1,483
  -1,722
  -1,981
  -2,259
  -2,556
  -2,871
  -3,203
  -3,553
  -3,904
  -4,289
  -4,690
  -5,109
  -5,545
  -5,998
  -6,470
  -6,960
  -7,469
  -7,998
  -8,548
  -9,120
  -9,714
  -10,333
  -10,977
  -11,647
  -12,346
  -13,074
  -13,834
  -14,626
Tax expense, $m
  3
  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
  -225
  -1,112
  -1,264
  -1,483
  -1,722
  -1,981
  -2,259
  -2,556
  -2,871
  -3,203
  -3,553
  -3,904
  -4,289
  -4,690
  -5,109
  -5,545
  -5,998
  -6,470
  -6,960
  -7,469
  -7,998
  -8,548
  -9,120
  -9,714
  -10,333
  -10,977
  -11,647
  -12,346
  -13,074
  -13,834
  -14,626

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
  661
  784
  931
  1,093
  1,269
  1,460
  1,665
  1,884
  2,116
  2,361
  2,619
  2,889
  3,173
  3,468
  3,777
  4,098
  4,431
  4,779
  5,140
  5,515
  5,904
  6,309
  6,730
  7,168
  7,624
  8,098
  8,592
  9,107
  9,643
  10,202
  10,786
Adjusted assets (=assets-cash), $m
  652
  784
  931
  1,093
  1,269
  1,460
  1,665
  1,884
  2,116
  2,361
  2,619
  2,889
  3,173
  3,468
  3,777
  4,098
  4,431
  4,779
  5,140
  5,515
  5,904
  6,309
  6,730
  7,168
  7,624
  8,098
  8,592
  9,107
  9,643
  10,202
  10,786
Revenue / Adjusted assets
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
Average production assets, $m
  447
  537
  638
  749
  870
  1,001
  1,141
  1,291
  1,450
  1,618
  1,795
  1,981
  2,175
  2,378
  2,589
  2,809
  3,038
  3,276
  3,524
  3,781
  4,048
  4,325
  4,614
  4,914
  5,227
  5,552
  5,890
  6,243
  6,611
  6,994
  7,394
Working capital, $m
  -147
  -127
  -151
  -178
  -206
  -237
  -271
  -306
  -344
  -384
  -426
  -470
  -516
  -564
  -614
  -666
  -721
  -777
  -836
  -897
  -960
  -1,026
  -1,095
  -1,166
  -1,240
  -1,317
  -1,398
  -1,481
  -1,568
  -1,659
  -1,754
Total debt, $m
  1,309
  481
  614
  759
  918
  1,090
  1,274
  1,471
  1,680
  1,901
  2,133
  2,376
  2,631
  2,897
  3,175
  3,464
  3,764
  4,077
  4,402
  4,739
  5,090
  5,454
  5,833
  6,227
  6,638
  7,064
  7,509
  7,972
  8,455
  8,958
  9,483
Total liabilities, $m
  1,533
  705
  838
  983
  1,142
  1,314
  1,498
  1,695
  1,904
  2,125
  2,357
  2,600
  2,855
  3,121
  3,399
  3,688
  3,988
  4,301
  4,626
  4,963
  5,314
  5,678
  6,057
  6,451
  6,862
  7,288
  7,733
  8,196
  8,679
  9,182
  9,707
Total equity, $m
  -872
  78
  93
  109
  127
  146
  166
  188
  212
  236
  262
  289
  317
  347
  378
  410
  443
  478
  514
  551
  590
  631
  673
  717
  762
  810
  859
  911
  964
  1,020
  1,079
Total liabilities and equity, $m
  661
  783
  931
  1,092
  1,269
  1,460
  1,664
  1,883
  2,116
  2,361
  2,619
  2,889
  3,172
  3,468
  3,777
  4,098
  4,431
  4,779
  5,140
  5,514
  5,904
  6,309
  6,730
  7,168
  7,624
  8,098
  8,592
  9,107
  9,643
  10,202
  10,786
Debt-to-equity ratio
  -1.501
  6.140
  6.590
  6.950
  7.240
  7.470
  7.650
  7.810
  7.940
  8.050
  8.140
  8.220
  8.290
  8.350
  8.410
  8.450
  8.490
  8.530
  8.560
  8.590
  8.620
  8.640
  8.670
  8.690
  8.710
  8.720
  8.740
  8.750
  8.770
  8.780
  8.790
Adjusted equity ratio
  -1.351
  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
  -225
  -1,112
  -1,264
  -1,483
  -1,722
  -1,981
  -2,259
  -2,556
  -2,871
  -3,203
  -3,553
  -3,904
  -4,289
  -4,690
  -5,109
  -5,545
  -5,998
  -6,470
  -6,960
  -7,469
  -7,998
  -8,548
  -9,120
  -9,714
  -10,333
  -10,977
  -11,647
  -12,346
  -13,074
  -13,834
  -14,626
Depreciation, amort., depletion, $m
  76
  83
  96
  110
  125
  141
  159
  178
  198
  219
  241
  248
  272
  297
  324
  351
  380
  410
  440
  473
  506
  541
  577
  614
  653
  694
  736
  780
  826
  874
  924
Funds from operations, $m
  -37
  -1,029
  -1,168
  -1,373
  -1,597
  -1,840
  -2,100
  -2,378
  -2,673
  -2,985
  -3,313
  -3,657
  -4,017
  -4,393
  -4,785
  -5,194
  -5,618
  -6,060
  -6,519
  -6,996
  -7,492
  -8,007
  -8,543
  -9,100
  -9,680
  -10,283
  -10,911
  -11,566
  -12,248
  -12,959
  -13,702
Change in working capital, $m
  -37
  -22
  -24
  -26
  -29
  -31
  -33
  -36
  -38
  -40
  -42
  -44
  -46
  -48
  -50
  -52
  -54
  -56
  -59
  -61
  -63
  -66
  -68
  -71
  -74
  -77
  -80
  -84
  -87
  -91
  -95
Cash from operations, $m
  0
  -1,007
  -1,144
  -1,347
  -1,569
  -1,809
  -2,067
  -2,342
  -2,635
  -2,945
  -3,271
  -3,613
  -3,971
  -4,345
  -4,735
  -5,141
  -5,564
  -6,004
  -6,460
  -6,935
  -7,429
  -7,941
  -8,474
  -9,029
  -9,605
  -10,206
  -10,831
  -11,482
  -12,161
  -12,868
  -13,607
Maintenance CAPEX, $m
  0
  -56
  -67
  -80
  -94
  -109
  -125
  -143
  -161
  -181
  -202
  -224
  -248
  -272
  -297
  -324
  -351
  -380
  -410
  -440
  -473
  -506
  -541
  -577
  -614
  -653
  -694
  -736
  -780
  -826
  -874
New CAPEX, $m
  -80
  -91
  -101
  -111
  -121
  -131
  -140
  -150
  -159
  -168
  -177
  -186
  -194
  -203
  -211
  -220
  -229
  -238
  -247
  -257
  -267
  -278
  -289
  -300
  -312
  -325
  -339
  -353
  -368
  -383
  -400
Cash from investing activities, $m
  -55
  -147
  -168
  -191
  -215
  -240
  -265
  -293
  -320
  -349
  -379
  -410
  -442
  -475
  -508
  -544
  -580
  -618
  -657
  -697
  -740
  -784
  -830
  -877
  -926
  -978
  -1,033
  -1,089
  -1,148
  -1,209
  -1,274
Free cash flow, $m
  -55
  -1,154
  -1,312
  -1,537
  -1,783
  -2,048
  -2,332
  -2,635
  -2,956
  -3,294
  -3,650
  -4,023
  -4,413
  -4,820
  -5,244
  -5,685
  -6,144
  -6,621
  -7,117
  -7,633
  -8,168
  -8,725
  -9,304
  -9,906
  -10,532
  -11,184
  -11,863
  -12,571
  -13,309
  -14,078
  -14,881
Issuance/(repayment) of debt, $m
  57
  -819
  132
  146
  159
  172
  184
  197
  209
  221
  232
  244
  255
  266
  277
  289
  301
  312
  325
  338
  351
  365
  379
  394
  410
  427
  444
  463
  483
  503
  525
Issuance/(repurchase) of shares, $m
  0
  2,062
  1,278
  1,499
  1,740
  2,000
  2,280
  2,578
  2,894
  3,228
  3,579
  3,931
  4,317
  4,720
  5,140
  5,577
  6,032
  6,504
  6,996
  7,506
  8,037
  8,588
  9,162
  9,758
  10,378
  11,024
  11,697
  12,397
  13,128
  13,890
  14,684
Cash from financing (excl. dividends), $m  
  52
  1,243
  1,410
  1,645
  1,899
  2,172
  2,464
  2,775
  3,103
  3,449
  3,811
  4,175
  4,572
  4,986
  5,417
  5,866
  6,333
  6,816
  7,321
  7,844
  8,388
  8,953
  9,541
  10,152
  10,788
  11,451
  12,141
  12,860
  13,611
  14,393
  15,209
Total cash flow (excl. dividends), $m
  -3
  90
  99
  107
  116
  124
  132
  139
  147
  154
  161
  152
  159
  166
  174
  181
  188
  195
  203
  211
  219
  228
  237
  246
  256
  267
  278
  290
  302
  315
  328
Retained Cash Flow (-), $m
  210
  -2,062
  -1,278
  -1,499
  -1,740
  -2,000
  -2,280
  -2,578
  -2,894
  -3,228
  -3,579
  -3,931
  -4,317
  -4,720
  -5,140
  -5,577
  -6,032
  -6,504
  -6,996
  -7,506
  -8,037
  -8,588
  -9,162
  -9,758
  -10,378
  -11,024
  -11,697
  -12,397
  -13,128
  -13,890
  -14,684
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
 
  -1,972
  -1,179
  -1,392
  -1,624
  -1,877
  -2,148
  -2,438
  -2,747
  -3,073
  -3,418
  -3,779
  -4,158
  -4,553
  -4,966
  -5,396
  -5,844
  -6,309
  -6,793
  -7,295
  -7,818
  -8,360
  -8,925
  -9,512
  -10,122
  -10,757
  -11,419
  -12,108
  -12,826
  -13,575
  -14,356
Discount rate, %
 
  15.70
  16.49
  17.31
  18.17
  19.08
  20.04
  21.04
  22.09
  23.20
  24.36
  25.57
  26.85
  28.19
  29.60
  31.08
  32.64
  34.27
  35.98
  37.78
  39.67
  41.66
  43.74
  45.93
  48.22
  50.63
  53.17
  55.82
  58.62
  61.55
  64.62
PV of cash for distribution, $m
 
  -1,705
  -869
  -862
  -833
  -784
  -718
  -641
  -556
  -470
  -386
  -309
  -239
  -180
  -132
  -93
  -64
  -42
  -27
  -17
  -10
  -6
  -3
  -2
  -1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  2.9
  0.2
  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
  0.0
  0.0
  0.0

EXCO Resources, Inc. (EXCO) is an oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. The Company's principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana and the Appalachia region. The Company holds acreage positions in approximately three shale plays in the United States, including East Texas and North Louisiana, South Texas and Appalachia. In East Texas and North Louisiana, the Company holds approximately 83,800 net acres in the Haynesville and Bossier shales. In South Texas, it holds approximately 65,800 net acres in the Eagle Ford shale. In Appalachia, the Company holds approximately 137,400 net acres prospective in the Marcellus shale.

FINANCIAL RATIOS  of  EXCO Resources (XCO)

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 -0.1
Growth Rates
Sales Growth Rate -23.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -75.4%
Cap. Spend. - 3 Yr. Gr. Rate -42.7%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity -144.4%
Total Debt to Equity -150.1%
Interest Coverage -2
Management Effectiveness
Return On Assets -19.3%
Ret/ On Assets - 3 Yr. Avg. -25.4%
Return On Total Capital -39.3%
Ret/ On T. Cap. - 3 Yr. Avg. -41.1%
Return On Equity 29.3%
Return On Equity - 3 Yr. Avg. 544.8%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 72.7%
Gross Margin - 3 Yr. Avg. 74.9%
EBITDA Margin -28.8%
EBITDA Margin - 3 Yr. Avg. -67.3%
Operating Margin -37.3%
Oper. Margin - 3 Yr. Avg. -113.6%
Pre-Tax Margin -81.9%
Pre-Tax Margin - 3 Yr. Avg. -133.1%
Net Profit Margin -83%
Net Profit Margin - 3 Yr. Avg. -133.5%
Effective Tax Rate -1.4%
Eff/ Tax Rate - 3 Yr. Avg. -0.5%
Payout Ratio 0%

XCO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the XCO stock intrinsic value calculation we used $271 million for the last fiscal year's total revenue generated by EXCO Resources. The default revenue input number comes from 2016 income statement of EXCO Resources. 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 XCO stock valuation model: a) initial revenue growth rate of 20.3% 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 15.7%, whose default value for XCO is calculated based on our internal credit rating of EXCO Resources, 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 EXCO Resources.
    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 XCO stock the variable cost ratio is equal to 421.8%.

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 XCO 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 5.1% for EXCO Resources.

Corporate tax rate of 27% is the nominal tax rate for EXCO Resources. 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 XCO 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 XCO are equal to 164.8%.

Life of production assets of 8 years is the average useful life of capital assets used in EXCO Resources 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 XCO is equal to -39.1%. 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 - $-872 million for EXCO Resources - 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 21.65 million for EXCO Resources 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 EXCO Resources at the current share price and the inputted number of shares is $0.0 billion.

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COMPANY NEWS

▶ US Natural Gas Futures Could Maintain Bearish Momentum   [Dec-08-17 10:06AM  Market Realist]
▶ Top 4 Oil and Gas Penny Stocks for 2017   [Dec-07-17 05:30PM  Investopedia]
▶ What Are The Drivers Of EXCO Resources Incs (XCO) Risks?   [Nov-30-17 03:25PM  Simply Wall St.]
▶ EXCO Resources, Inc. Announces Change to Board of Directors   [Nov-09-17 05:17PM  Business Wire]
▶ Exco reports 3Q loss   [04:45PM  Associated Press]
▶ World Bank Thinks US Natural Gas Prices Could Rise in 2018   [Nov-06-17 11:50AM  Market Realist]
▶ Top 4 Oil and Gas Penny Stocks for 2017   [Nov-02-17 11:25AM  Investopedia]
▶ Will US Natural Gas Inventories Help Natural Gas Futures?   [Oct-27-17 12:11PM  Market Realist]
▶ Is US Natural Gas Production Bearish for Natural Gas?   [Oct-20-17 12:06PM  Market Realist]
▶ EXCO Resources, Inc. Announces Change to Board of Directors   [Oct-06-17 05:16PM  Business Wire]
▶ US Natural Gas Futures Fell after the Inventories Report   [Sep-22-17 01:06PM  Market Realist]
▶ Will US Natural Gas Consumption Outweigh Production?   [Sep-18-17 10:39AM  Market Realist]
▶ [$$] Exco Creditors Gird for Possible Debt Workout   [Sep-14-17 05:01PM  The Wall Street Journal]
▶ Why US Natural Gas Production Fell from a 10-Month High   [Sep-01-17 03:06PM  Market Realist]
▶ Hurricane Harvey Could Impact Natural Gas Prices   [Aug-28-17 10:05AM  Market Realist]
▶ Will US Natural Gas Production Surpass Consumption?   [Aug-18-17 10:53AM  Market Realist]
▶ Exco posts 2Q profit   [Aug-08-17 06:05PM  Associated Press]
▶ Can EXCO Resources (XCO) Q2 Earnings Surprise?   [Jul-27-17 02:35PM  Zacks]
▶ US Weather: Bullish or Bearish for Natural Gas Futures?   [Jul-14-17 12:35PM  Market Realist]
▶ Natural Gas Futures Could Maintain Bullish Momentum   [Jun-30-17 08:15AM  Market Realist]
▶ After-Hours Buzz: KBH, CAMP & more   [Jun-27-17 05:40PM  CNBC]
▶ Weather Could Rescue Natural Gas Bulls Next Week   [Jun-23-17 01:05PM  Market Realist]
▶ EIA Downgrades US Natural Gas Price Forecasts   [Jun-19-17 09:07AM  Market Realist]
▶ ETFs with exposure to EXCO Resources, Inc. : June 5, 2017   [Jun-05-17 02:56PM  Capital Cube]
▶ ETFs with exposure to EXCO Resources, Inc. : May 26, 2017   [May-26-17 01:31PM  Capital Cube]
▶ ETFs with exposure to EXCO Resources, Inc. : May 15, 2017   [May-15-17 04:57PM  Capital Cube]
▶ Lower Rise in US Natural Gas Inventories Boosted Prices   [May-12-17 04:05PM  Market Realist]
▶ Exco posts 1Q profit   [May-09-17 06:16PM  Associated Press]
▶ Why Weekly US Natural Gas Consumption Rose in Early May 2017   [May-08-17 07:36AM  Market Realist]
▶ ETFs with exposure to EXCO Resources, Inc. : May 5, 2017   [May-05-17 04:43PM  Capital Cube]
▶ EIA Downgraded US Natural Gas Consumption Estimates   [Apr-17-17 10:24AM  Market Realist]
▶ Chou Income Fund 4th Quarter Message to Shareholders   [Mar-24-17 01:58PM  GuruFocus.com]
▶ Exco reports 4Q loss   [07:20AM  Associated Press]
Financial statements of XCO
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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