Intrinsic value of Andeavor Logistics - ANDX

Previous Close

$49.94

  Intrinsic Value

$107.42

stock screener

  Rating & Target

str. buy

+115%

Previous close

$49.94

 
Intrinsic value

$107.42

 
Up/down potential

+115%

 
Rating

str. buy

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

We calculate the intrinsic value of ANDX 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
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, %
  9.71
  44.20
  40.28
  36.75
  33.58
  30.72
  28.15
  25.83
  23.75
  21.87
  20.19
  18.67
  17.30
  16.07
  14.96
  13.97
  13.07
  12.26
  11.54
  10.88
  10.30
  9.77
  9.29
  8.86
  8.47
  8.13
  7.81
  7.53
  7.28
  7.05
  6.85
Revenue, $m
  1,220
  1,759
  2,468
  3,375
  4,508
  5,893
  7,552
  9,502
  11,759
  14,331
  17,224
  20,440
  23,976
  27,829
  31,994
  36,462
  41,228
  46,284
  51,625
  57,243
  63,137
  69,302
  75,740
  82,451
  89,438
  96,706
  104,263
  112,117
  120,279
  128,760
  137,575
Variable operating expenses, $m
 
  224
  309
  418
  555
  721
  921
  1,156
  1,428
  1,737
  2,086
  2,461
  2,887
  3,351
  3,852
  4,390
  4,964
  5,573
  6,216
  6,893
  7,602
  8,345
  9,120
  9,928
  10,769
  11,644
  12,554
  13,500
  14,483
  15,504
  16,565
Fixed operating expenses, $m
 
  604
  619
  634
  650
  666
  683
  700
  718
  736
  754
  773
  792
  812
  832
  853
  874
  896
  919
  942
  965
  989
  1,014
  1,039
  1,065
  1,092
  1,119
  1,147
  1,176
  1,205
  1,235
Total operating expenses, $m
  733
  828
  928
  1,052
  1,205
  1,387
  1,604
  1,856
  2,146
  2,473
  2,840
  3,234
  3,679
  4,163
  4,684
  5,243
  5,838
  6,469
  7,135
  7,835
  8,567
  9,334
  10,134
  10,967
  11,834
  12,736
  13,673
  14,647
  15,659
  16,709
  17,800
Operating income, $m
  487
  932
  1,540
  2,322
  3,303
  4,505
  5,947
  7,646
  9,614
  11,858
  14,385
  17,206
  20,297
  23,666
  27,309
  31,219
  35,390
  39,815
  44,490
  49,409
  54,569
  59,968
  65,606
  71,484
  77,603
  83,970
  90,590
  97,470
  104,620
  112,051
  119,775
EBITDA, $m
  677
  1,210
  1,925
  2,845
  3,997
  5,409
  7,102
  9,096
  11,405
  14,039
  17,003
  20,299
  23,926
  27,878
  32,151
  36,737
  41,629
  46,820
  52,303
  58,073
  64,125
  70,457
  77,069
  83,962
  91,140
  98,606
  106,370
  114,438
  122,824
  131,538
  140,596
Interest expense (income), $m
  165
  195
  286
  406
  560
  753
  988
  1,270
  1,601
  1,984
  2,421
  2,912
  3,459
  4,059
  4,714
  5,421
  6,180
  6,989
  7,848
  8,755
  9,709
  10,710
  11,757
  12,850
  13,990
  15,177
  16,411
  17,694
  19,028
  20,414
  21,855
Earnings before tax, $m
  315
  737
  1,254
  1,916
  2,743
  3,752
  4,959
  6,376
  8,013
  9,874
  11,963
  14,293
  16,838
  19,607
  22,595
  25,798
  29,210
  32,826
  36,642
  40,654
  44,860
  49,259
  53,849
  58,633
  63,613
  68,793
  74,179
  79,775
  85,592
  91,637
  97,920
Tax expense, $m
  0
  199
  339
  517
  741
  1,013
  1,339
  1,722
  2,163
  2,666
  3,230
  3,859
  4,546
  5,294
  6,101
  6,965
  7,887
  8,863
  9,893
  10,977
  12,112
  13,300
  14,539
  15,831
  17,176
  18,574
  20,028
  21,539
  23,110
  24,742
  26,438
Net income, $m
  315
  538
  916
  1,399
  2,002
  2,739
  3,620
  4,655
  5,849
  7,208
  8,733
  10,434
  12,292
  14,313
  16,495
  18,833
  21,323
  23,963
  26,749
  29,678
  32,748
  35,959
  39,310
  42,802
  46,438
  50,219
  54,150
  58,236
  62,482
  66,895
  71,482

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  688
  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
  5,860
  7,454
  10,457
  14,300
  19,102
  24,970
  31,998
  40,264
  49,826
  60,725
  72,984
  86,609
  101,593
  117,920
  135,566
  154,501
  174,696
  196,121
  218,748
  242,556
  267,528
  293,654
  320,932
  349,368
  378,974
  409,773
  441,793
  475,072
  509,655
  545,594
  582,947
Adjusted assets (=assets-cash), $m
  5,172
  7,454
  10,457
  14,300
  19,102
  24,970
  31,998
  40,264
  49,826
  60,725
  72,984
  86,609
  101,593
  117,920
  135,566
  154,501
  174,696
  196,121
  218,748
  242,556
  267,528
  293,654
  320,932
  349,368
  378,974
  409,773
  441,793
  475,072
  509,655
  545,594
  582,947
Revenue / Adjusted assets
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
Average production assets, $m
  4,524
  6,523
  9,151
  12,514
  16,716
  21,851
  28,001
  35,234
  43,602
  53,140
  63,867
  75,790
  88,903
  103,191
  118,632
  135,202
  152,875
  171,623
  191,424
  212,258
  234,110
  256,973
  280,844
  305,728
  331,636
  358,587
  386,608
  415,730
  445,993
  477,442
  510,130
Working capital, $m
  726
  55
  77
  105
  140
  183
  234
  295
  365
  444
  534
  634
  743
  863
  992
  1,130
  1,278
  1,435
  1,600
  1,775
  1,957
  2,148
  2,348
  2,556
  2,773
  2,998
  3,232
  3,476
  3,729
  3,992
  4,265
Total debt, $m
  4,053
  5,959
  8,467
  11,676
  15,685
  20,585
  26,453
  33,355
  41,340
  50,441
  60,676
  72,053
  84,565
  98,198
  112,933
  128,744
  145,606
  163,496
  182,390
  202,269
  223,121
  244,936
  267,713
  291,457
  316,179
  341,895
  368,632
  396,420
  425,297
  455,306
  486,496
Total liabilities, $m
  4,318
  6,224
  8,732
  11,941
  15,950
  20,850
  26,718
  33,620
  41,605
  50,706
  60,941
  72,318
  84,830
  98,463
  113,198
  129,009
  145,871
  163,761
  182,655
  202,534
  223,386
  245,201
  267,978
  291,722
  316,444
  342,160
  368,897
  396,685
  425,562
  455,571
  486,761
Total equity, $m
  1,542
  1,230
  1,725
  2,360
  3,152
  4,120
  5,280
  6,644
  8,221
  10,020
  12,042
  14,290
  16,763
  19,457
  22,368
  25,493
  28,825
  32,360
  36,093
  40,022
  44,142
  48,453
  52,954
  57,646
  62,531
  67,613
  72,896
  78,387
  84,093
  90,023
  96,186
Total liabilities and equity, $m
  5,860
  7,454
  10,457
  14,301
  19,102
  24,970
  31,998
  40,264
  49,826
  60,726
  72,983
  86,608
  101,593
  117,920
  135,566
  154,502
  174,696
  196,121
  218,748
  242,556
  267,528
  293,654
  320,932
  349,368
  378,975
  409,773
  441,793
  475,072
  509,655
  545,594
  582,947
Debt-to-equity ratio
  2.628
  4.850
  4.910
  4.950
  4.980
  5.000
  5.010
  5.020
  5.030
  5.030
  5.040
  5.040
  5.040
  5.050
  5.050
  5.050
  5.050
  5.050
  5.050
  5.050
  5.050
  5.060
  5.060
  5.060
  5.060
  5.060
  5.060
  5.060
  5.060
  5.060
  5.060
Adjusted equity ratio
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165
  0.165

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  315
  538
  916
  1,399
  2,002
  2,739
  3,620
  4,655
  5,849
  7,208
  8,733
  10,434
  12,292
  14,313
  16,495
  18,833
  21,323
  23,963
  26,749
  29,678
  32,748
  35,959
  39,310
  42,802
  46,438
  50,219
  54,150
  58,236
  62,482
  66,895
  71,482
Depreciation, amort., depletion, $m
  190
  278
  385
  522
  694
  904
  1,155
  1,450
  1,791
  2,181
  2,619
  3,093
  3,629
  4,212
  4,842
  5,518
  6,240
  7,005
  7,813
  8,664
  9,556
  10,489
  11,463
  12,479
  13,536
  14,636
  15,780
  16,969
  18,204
  19,487
  20,822
Funds from operations, $m
  454
  816
  1,301
  1,921
  2,696
  3,643
  4,775
  6,105
  7,641
  9,389
  11,352
  13,528
  15,921
  18,525
  21,337
  24,351
  27,563
  30,968
  34,562
  38,341
  42,304
  46,447
  50,773
  55,281
  59,974
  64,855
  69,930
  75,205
  80,686
  86,382
  92,303
Change in working capital, $m
  -44
  17
  22
  28
  35
  43
  51
  60
  70
  80
  90
  100
  110
  119
  129
  139
  148
  157
  166
  174
  183
  191
  200
  208
  217
  225
  234
  243
  253
  263
  273
Cash from operations, $m
  498
  800
  1,279
  1,893
  2,661
  3,600
  4,724
  6,044
  7,571
  9,309
  11,262
  13,428
  15,811
  18,406
  21,208
  24,213
  27,415
  30,811
  34,396
  38,167
  42,121
  46,256
  50,573
  55,073
  59,757
  64,630
  69,696
  74,961
  80,433
  86,119
  92,030
Maintenance CAPEX, $m
  0
  -185
  -266
  -374
  -511
  -682
  -892
  -1,143
  -1,438
  -1,780
  -2,169
  -2,607
  -3,093
  -3,629
  -4,212
  -4,842
  -5,518
  -6,240
  -7,005
  -7,813
  -8,664
  -9,556
  -10,489
  -11,463
  -12,479
  -13,536
  -14,636
  -15,780
  -16,969
  -18,204
  -19,487
New CAPEX, $m
  -260
  -1,999
  -2,628
  -3,363
  -4,202
  -5,135
  -6,150
  -7,233
  -8,368
  -9,538
  -10,727
  -11,923
  -13,113
  -14,288
  -15,442
  -16,570
  -17,672
  -18,748
  -19,801
  -20,834
  -21,853
  -22,863
  -23,871
  -24,884
  -25,908
  -26,952
  -28,021
  -29,122
  -30,263
  -31,449
  -32,687
Cash from investing activities, $m
  -318
  -2,184
  -2,894
  -3,737
  -4,713
  -5,817
  -7,042
  -8,376
  -9,806
  -11,318
  -12,896
  -14,530
  -16,206
  -17,917
  -19,654
  -21,412
  -23,190
  -24,988
  -26,806
  -28,647
  -30,517
  -32,419
  -34,360
  -36,347
  -38,387
  -40,488
  -42,657
  -44,902
  -47,232
  -49,653
  -52,174
Free cash flow, $m
  180
  -1,384
  -1,615
  -1,844
  -2,051
  -2,217
  -2,319
  -2,332
  -2,235
  -2,008
  -1,634
  -1,102
  -395
  489
  1,554
  2,800
  4,225
  5,823
  7,590
  9,520
  11,605
  13,838
  16,214
  18,726
  21,370
  24,142
  27,039
  30,059
  33,201
  36,466
  39,855
Issuance/(repayment) of debt, $m
  1,225
  1,906
  2,507
  3,209
  4,009
  4,900
  5,869
  6,902
  7,985
  9,101
  10,236
  11,377
  12,512
  13,633
  14,734
  15,811
  16,863
  17,889
  18,894
  19,880
  20,852
  21,815
  22,777
  23,744
  24,721
  25,717
  26,737
  27,788
  28,877
  30,009
  31,190
Issuance/(repurchase) of shares, $m
  364
  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  
  1,713
  1,906
  2,507
  3,209
  4,009
  4,900
  5,869
  6,902
  7,985
  9,101
  10,236
  11,377
  12,512
  13,633
  14,734
  15,811
  16,863
  17,889
  18,894
  19,880
  20,852
  21,815
  22,777
  23,744
  24,721
  25,717
  26,737
  27,788
  28,877
  30,009
  31,190
Total cash flow (excl. dividends), $m
  1,893
  522
  892
  1,366
  1,958
  2,682
  3,550
  4,570
  5,749
  7,092
  8,602
  10,275
  12,117
  14,122
  16,288
  18,611
  21,087
  23,713
  26,484
  29,399
  32,456
  35,653
  38,991
  42,470
  46,092
  49,859
  53,776
  57,847
  62,078
  66,475
  71,045
Retained Cash Flow (-), $m
  357
  -376
  -495
  -634
  -792
  -968
  -1,160
  -1,364
  -1,578
  -1,798
  -2,023
  -2,248
  -2,472
  -2,694
  -2,912
  -3,124
  -3,332
  -3,535
  -3,734
  -3,928
  -4,120
  -4,311
  -4,501
  -4,692
  -4,885
  -5,082
  -5,283
  -5,491
  -5,706
  -5,930
  -6,163
Prev. year cash balance distribution, $m
 
  688
  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
 
  834
  397
  731
  1,166
  1,714
  2,390
  3,206
  4,171
  5,294
  6,579
  8,027
  9,644
  11,428
  13,377
  15,487
  17,755
  20,178
  22,751
  25,471
  28,336
  31,343
  34,490
  37,778
  41,207
  44,778
  48,493
  52,356
  56,372
  60,545
  64,882
Discount rate, %
 
  9.20
  9.66
  10.14
  10.65
  11.18
  11.74
  12.33
  12.95
  13.59
  14.27
  14.99
  15.74
  16.52
  17.35
  18.22
  19.13
  20.08
  21.09
  22.14
  23.25
  24.41
  25.63
  26.91
  28.26
  29.67
  31.15
  32.71
  34.35
  36.07
  37.87
PV of cash for distribution, $m
 
  764
  330
  547
  778
  1,009
  1,228
  1,421
  1,575
  1,681
  1,733
  1,728
  1,670
  1,566
  1,425
  1,259
  1,079
  899
  727
  570
  433
  319
  228
  157
  105
  68
  42
  25
  14
  8
  4
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

Andeavor Logistics LP, formerly Tesoro Logistics LP, is a full-service logistics company operating in the western and mid-continent regions of the United States. The Company operates through three segments. Its Gathering segment consists of crude oil, natural gas and produced water gathering systems in the Bakken Region and Rockies Region. Its Processing segment consists of the Vermillion processing complex, the Uinta Basin processing complex, the Blacks Fork processing complex and the Emigrant Trail processing complex. Its Terminalling and Transportation segment consists of the Northwest Products Pipeline, which includes a regulated common carrier products, a regulated common carrier refined products pipeline system connecting Tesoro Corporation's Kenai refinery to Anchorage, Alaska, and crude oil and refined products terminals and storage facilities in the western and midwestern United States; marine terminals in California; a petroleum coke handling and storage facility.

FINANCIAL RATIOS  of  Andeavor Logistics (ANDX)

Valuation Ratios
P/E Ratio 16.3
Price to Sales 4.2
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 10.3
Price to Free Cash Flow 21.6
Growth Rates
Sales Growth Rate 9.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -32.1%
Cap. Spend. - 3 Yr. Gr. Rate 26.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 262.8%
Total Debt to Equity 262.8%
Interest Coverage 3
Management Effectiveness
Return On Assets 8.7%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 6.1%
Ret/ On T. Cap. - 3 Yr. Avg. 4.4%
Return On Equity 18.3%
Return On Equity - 3 Yr. Avg. 12.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 61.4%
Gross Margin - 3 Yr. Avg. 55.1%
EBITDA Margin 54.9%
EBITDA Margin - 3 Yr. Avg. 47.4%
Operating Margin 39.9%
Oper. Margin - 3 Yr. Avg. 34.2%
Pre-Tax Margin 25.8%
Pre-Tax Margin - 3 Yr. Avg. 19.2%
Net Profit Margin 25.8%
Net Profit Margin - 3 Yr. Avg. 18.4%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0.1%
Payout Ratio 387.6%

ANDX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ANDX stock intrinsic value calculation we used $1220 million for the last fiscal year's total revenue generated by Andeavor Logistics. The default revenue input number comes from 2016 income statement of Andeavor Logistics. 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 ANDX stock valuation model: a) initial revenue growth rate of 44.2% 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 9.2%, whose default value for ANDX is calculated based on our internal credit rating of Andeavor Logistics, 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 Andeavor Logistics.
    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 ANDX stock the variable cost ratio is equal to 13%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $589 million in the base year in the intrinsic value calculation for ANDX 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 4.8% for Andeavor Logistics.

Corporate tax rate of 27% is the nominal tax rate for Andeavor Logistics. 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 ANDX 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 ANDX are equal to 370.8%.

Life of production assets of 24.5 years is the average useful life of capital assets used in Andeavor Logistics 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 ANDX is equal to 3.1%. 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 - $1542 million for Andeavor Logistics - 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 217.796 million for Andeavor Logistics 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 Andeavor Logistics at the current share price and the inputted number of shares is $10.9 billion.

COMPANY NEWS

▶ Andeavor Reports Fourth Quarter and Full Year 2017 Results   [Feb-15-18 04:55PM  GlobeNewswire]
▶ Andeavor Expands Asphalt Offering Through Acquisition   [Feb-12-18 08:01AM  GlobeNewswire]
▶ Andeavor Logistics LP Reports Third Quarter 2017 Results   [Nov-08-17 05:02PM  GlobeNewswire]
▶ Andeavor Reports Third Quarter 2017 Results   [05:01PM  GlobeNewswire]
▶ Andeavor to Release Third Quarter 2017 Earnings   [Oct-05-17 05:01PM  GlobeNewswire]
▶ Alerian Index Series September 2017 Index Review   [Sep-08-17 08:30AM  PR Newswire]
▶ Andeavor Logistics LP Reports Second Quarter 2017 Results   [Aug-08-17 04:42PM  GlobeNewswire]
▶ Andeavor Reports Second Quarter 2017 Results   [04:41PM  GlobeNewswire]
Financial statements of ANDX
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