Intrinsic value of Arch Coal - ARCH

Previous Close

$89.80

  Intrinsic Value

$12,136

stock screener

  Rating & Target

str. buy

+999%

Previous close

$89.80

 
Intrinsic value

$12,136

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of ARCH 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 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 2.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  3,720
  5,747
  8,595
  12,471
  17,595
  24,189
  32,469
  42,634
  54,860
  69,292
  86,045
  105,198
  126,799
  150,866
  177,392
  206,349
  237,697
  271,384
  307,357
  345,560
  385,945
  428,469
  473,099
  519,816
  568,612
  619,493
  672,482
  727,614
  784,939
  844,520
Variable 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
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
  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
Operating income, $m
  3,720
  5,747
  8,595
  12,471
  17,595
  24,189
  32,469
  42,634
  54,860
  69,292
  86,045
  105,198
  126,799
  150,866
  177,392
  206,349
  237,697
  271,384
  307,357
  345,560
  385,945
  428,469
  473,099
  519,816
  568,612
  619,493
  672,482
  727,614
  784,939
  844,520
EBITDA, $m
  3,797
  5,866
  8,772
  12,728
  17,958
  24,688
  33,138
  43,512
  55,990
  70,719
  87,817
  107,365
  129,411
  153,974
  181,046
  210,600
  242,593
  276,975
  313,688
  352,679
  393,896
  437,295
  482,845
  530,524
  580,325
  632,255
  686,336
  742,603
  801,108
  861,917
Interest expense (income), $m
  0
  387
  1,358
  2,770
  4,753
  7,452
  11,019
  15,610
  21,375
  28,453
  36,965
  47,013
  58,678
  72,013
  87,053
  103,810
  122,279
  142,441
  164,267
  187,722
  212,768
  239,368
  267,486
  297,093
  328,168
  360,694
  394,669
  430,096
  466,990
  505,376
  545,288
Earnings before tax, $m
  3,333
  4,389
  5,825
  7,718
  10,144
  13,170
  16,859
  21,259
  26,407
  32,327
  39,031
  46,520
  54,786
  63,813
  73,582
  84,070
  95,256
  107,118
  119,635
  132,792
  146,577
  160,983
  176,006
  191,648
  207,917
  224,824
  242,386
  260,624
  279,563
  299,231
Tax expense, $m
  900
  1,185
  1,573
  2,084
  2,739
  3,556
  4,552
  5,740
  7,130
  8,728
  10,539
  12,560
  14,792
  17,229
  19,867
  22,699
  25,719
  28,922
  32,301
  35,854
  39,576
  43,465
  47,522
  51,745
  56,138
  60,703
  65,444
  70,369
  75,482
  80,792
Net income, $m
  2,433
  3,204
  4,252
  5,634
  7,405
  9,614
  12,307
  15,519
  19,277
  23,599
  28,493
  33,960
  39,994
  46,583
  53,715
  61,371
  69,537
  78,196
  87,333
  96,938
  107,001
  117,517
  128,484
  139,903
  151,780
  164,122
  176,942
  190,256
  204,081
  218,439

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
Total assets, $m
  3,015
  4,658
  6,965
  10,106
  14,259
  19,602
  26,312
  34,549
  44,457
  56,152
  69,729
  85,250
  102,755
  122,258
  143,753
  167,220
  192,623
  219,922
  249,074
  280,033
  312,759
  347,219
  383,387
  421,244
  460,787
  502,021
  544,961
  589,639
  636,093
  684,376
Adjusted assets (=assets-cash), $m
  3,015
  4,658
  6,965
  10,106
  14,259
  19,602
  26,312
  34,549
  44,457
  56,152
  69,729
  85,250
  102,755
  122,258
  143,753
  167,220
  192,623
  219,922
  249,074
  280,033
  312,759
  347,219
  383,387
  421,244
  460,787
  502,021
  544,961
  589,639
  636,093
  684,376
Revenue / Adjusted assets
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
  1.234
Average production assets, $m
  766
  1,184
  1,771
  2,569
  3,625
  4,983
  6,689
  8,783
  11,301
  14,274
  17,725
  21,671
  26,121
  31,078
  36,543
  42,508
  48,966
  55,905
  63,316
  71,185
  79,505
  88,265
  97,458
  107,082
  117,134
  127,616
  138,531
  149,889
  161,697
  173,971
Working capital, $m
  -7
  -11
  -17
  -25
  -35
  -48
  -65
  -85
  -110
  -139
  -172
  -210
  -254
  -302
  -355
  -413
  -475
  -543
  -615
  -691
  -772
  -857
  -946
  -1,040
  -1,137
  -1,239
  -1,345
  -1,455
  -1,570
  -1,689
Total debt, $m
  1,089
  2,221
  3,811
  5,976
  8,836
  12,518
  17,141
  22,817
  29,643
  37,701
  47,055
  57,749
  69,810
  83,248
  98,058
  114,227
  131,730
  150,539
  170,624
  191,955
  214,503
  238,246
  263,166
  289,250
  316,495
  344,904
  374,491
  405,273
  437,280
  470,547
Total liabilities, $m
  2,077
  3,209
  4,799
  6,963
  9,824
  13,506
  18,129
  23,805
  30,631
  38,689
  48,043
  58,737
  70,798
  84,236
  99,046
  115,214
  132,717
  151,527
  171,612
  192,943
  215,491
  239,234
  264,153
  290,237
  317,482
  345,892
  375,478
  406,261
  438,268
  471,535
Total equity, $m
  938
  1,448
  2,166
  3,143
  4,434
  6,096
  8,183
  10,745
  13,826
  17,463
  21,686
  26,513
  31,957
  38,022
  44,707
  52,005
  59,906
  68,396
  77,462
  87,090
  97,268
  107,985
  119,233
  131,007
  143,305
  156,128
  169,483
  183,378
  197,825
  212,841
Total liabilities and equity, $m
  3,015
  4,657
  6,965
  10,106
  14,258
  19,602
  26,312
  34,550
  44,457
  56,152
  69,729
  85,250
  102,755
  122,258
  143,753
  167,219
  192,623
  219,923
  249,074
  280,033
  312,759
  347,219
  383,386
  421,244
  460,787
  502,020
  544,961
  589,639
  636,093
  684,376
Debt-to-equity ratio
  1.160
  1.530
  1.760
  1.900
  1.990
  2.050
  2.090
  2.120
  2.140
  2.160
  2.170
  2.180
  2.180
  2.190
  2.190
  2.200
  2.200
  2.200
  2.200
  2.200
  2.210
  2.210
  2.210
  2.210
  2.210
  2.210
  2.210
  2.210
  2.210
  2.210
Adjusted equity ratio
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311
  0.311

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,433
  3,204
  4,252
  5,634
  7,405
  9,614
  12,307
  15,519
  19,277
  23,599
  28,493
  33,960
  39,994
  46,583
  53,715
  61,371
  69,537
  78,196
  87,333
  96,938
  107,001
  117,517
  128,484
  139,903
  151,780
  164,122
  176,942
  190,256
  204,081
  218,439
Depreciation, amort., depletion, $m
  77
  118
  177
  257
  362
  498
  669
  878
  1,130
  1,427
  1,773
  2,167
  2,612
  3,108
  3,654
  4,251
  4,897
  5,591
  6,332
  7,119
  7,950
  8,826
  9,746
  10,708
  11,713
  12,762
  13,853
  14,989
  16,170
  17,397
Funds from operations, $m
  2,510
  3,322
  4,429
  5,891
  7,767
  10,113
  12,976
  16,397
  20,407
  25,026
  30,266
  36,127
  42,606
  49,691
  57,369
  65,622
  74,434
  83,786
  93,665
  104,057
  114,952
  126,344
  138,230
  150,611
  163,493
  176,883
  190,795
  205,244
  220,251
  235,836
Change in working capital, $m
  -3
  -4
  -6
  -8
  -10
  -13
  -17
  -20
  -24
  -29
  -34
  -38
  -43
  -48
  -53
  -58
  -63
  -67
  -72
  -76
  -81
  -85
  -89
  -93
  -98
  -102
  -106
  -110
  -115
  -119
Cash from operations, $m
  2,513
  3,326
  4,435
  5,899
  7,778
  10,126
  12,992
  16,417
  20,432
  25,055
  30,299
  36,165
  42,649
  49,739
  57,422
  65,680
  74,496
  83,854
  93,737
  104,133
  115,033
  126,429
  138,319
  150,705
  163,591
  176,985
  190,901
  205,355
  220,365
  235,955
Maintenance CAPEX, $m
  -48
  -77
  -118
  -177
  -257
  -362
  -498
  -669
  -878
  -1,130
  -1,427
  -1,773
  -2,167
  -2,612
  -3,108
  -3,654
  -4,251
  -4,897
  -5,591
  -6,332
  -7,119
  -7,950
  -8,826
  -9,746
  -10,708
  -11,713
  -12,762
  -13,853
  -14,989
  -16,170
New CAPEX, $m
  -288
  -418
  -587
  -798
  -1,056
  -1,358
  -1,706
  -2,094
  -2,518
  -2,973
  -3,451
  -3,946
  -4,450
  -4,958
  -5,464
  -5,965
  -6,458
  -6,940
  -7,410
  -7,870
  -8,319
  -8,760
  -9,194
  -9,624
  -10,052
  -10,482
  -10,916
  -11,357
  -11,809
  -12,274
Cash from investing activities, $m
  -336
  -495
  -705
  -975
  -1,313
  -1,720
  -2,204
  -2,763
  -3,396
  -4,103
  -4,878
  -5,719
  -6,617
  -7,570
  -8,572
  -9,619
  -10,709
  -11,837
  -13,001
  -14,202
  -15,438
  -16,710
  -18,020
  -19,370
  -20,760
  -22,195
  -23,678
  -25,210
  -26,798
  -28,444
Free cash flow, $m
  2,177
  2,832
  3,730
  4,924
  6,465
  8,405
  10,788
  13,655
  17,035
  20,952
  25,420
  30,447
  36,032
  42,169
  48,850
  56,061
  63,788
  72,018
  80,736
  89,932
  99,595
  109,719
  120,299
  131,335
  142,830
  154,790
  167,224
  180,144
  193,567
  207,512
Issuance/(repayment) of debt, $m
  779
  1,132
  1,590
  2,164
  2,861
  3,682
  4,623
  5,676
  6,826
  8,058
  9,354
  10,694
  12,061
  13,438
  14,810
  16,168
  17,503
  18,809
  20,085
  21,331
  22,549
  23,743
  24,919
  26,084
  27,245
  28,410
  29,586
  30,783
  32,007
  33,267
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  779
  1,132
  1,590
  2,164
  2,861
  3,682
  4,623
  5,676
  6,826
  8,058
  9,354
  10,694
  12,061
  13,438
  14,810
  16,168
  17,503
  18,809
  20,085
  21,331
  22,549
  23,743
  24,919
  26,084
  27,245
  28,410
  29,586
  30,783
  32,007
  33,267
Total cash flow (excl. dividends), $m
  2,956
  3,964
  5,320
  7,088
  9,326
  12,087
  15,411
  19,330
  23,861
  29,010
  34,774
  41,141
  48,093
  55,607
  63,660
  72,229
  81,291
  90,827
  100,821
  111,263
  122,144
  133,462
  145,218
  157,419
  170,075
  183,200
  196,810
  210,927
  225,574
  240,779
Retained Cash Flow (-), $m
  -351
  -511
  -718
  -977
  -1,291
  -1,662
  -2,087
  -2,562
  -3,081
  -3,637
  -4,222
  -4,827
  -5,444
  -6,065
  -6,685
  -7,298
  -7,900
  -8,490
  -9,066
  -9,628
  -10,178
  -10,717
  -11,248
  -11,774
  -12,298
  -12,824
  -13,355
  -13,895
  -14,447
  -15,016
Prev. year cash balance distribution, $m
  79
  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
  9
  15
  23
  34
  50
  70
  97
  130
  171
  219
  277
  344
  421
  507
  603
  710
  825
  951
  1,086
  1,229
  1,382
  1,544
  1,714
  1,892
  2,079
  2,274
  2,478
  2,690
  2,910
  3,140
Cash available for distribution, $m
  2,684
  3,453
  4,602
  6,111
  8,035
  10,425
  13,325
  16,768
  20,780
  25,373
  30,552
  36,314
  42,649
  49,542
  56,975
  64,931
  73,390
  82,337
  91,755
  101,634
  111,966
  122,744
  133,970
  145,646
  157,778
  170,376
  183,456
  197,032
  211,127
  225,763
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  2,574
  3,161
  4,005
  5,032
  6,228
  7,566
  9,002
  10,481
  11,937
  13,302
  14,509
  15,497
  16,216
  16,632
  16,727
  16,500
  15,969
  15,163
  14,128
  12,915
  11,581
  10,185
  8,781
  7,418
  6,138
  4,971
  3,937
  3,048
  2,305
  1,700
Current shareholders' claim on cash, %
  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

Arch Coal, Inc. produces and sells thermal and metallurgical coal from surface and underground mines located in the United States. As of December 31, 2015, it operated or contracted out the operation of 16 mines; and owned or controlled approximately 2.5 billion tons of proven and probable recoverable reserves. The company also owned or controlled, primarily through long-term leases, approximately 28,541 acres of coal land in Ohio; 21,832 acres of coal land in Maryland; 46,556 acres of coal land in Virginia; 380,471 acres of coal land in West Virginia; 106,059 acres of coal land in Wyoming; 273,299 acres of coal land in Illinois; 129,043 acres of coal land in Kentucky; 10,000 acres of coal land in Montana; 21,802 acres of coal land in New Mexico; 426 acres of coal land in Pennsylvania; and 18,443 acres of coal land in Colorado. In addition, it owns properties in Alabama, Indiana, Washington, Arkansas, California, Utah, and Texas. The company sells coal to power plants, steel mills, and industrial facilities. Arch Coal, Inc. was founded in 1969 and is headquartered in St. Louis, Missouri.

FINANCIAL RATIOS  of  Arch Coal (ARCH)

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%

ARCH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ARCH stock intrinsic value calculation we used $2325 million for the last fiscal year's total revenue generated by Arch Coal. The default revenue input number comes from 2017 income statement of Arch Coal. 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 ARCH stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ARCH is calculated based on our internal credit rating of Arch Coal, 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 Arch Coal.
    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 ARCH stock the variable cost ratio is equal to 0%.

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 ARCH 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 124.7% for Arch Coal.

Corporate tax rate of 27% is the nominal tax rate for Arch Coal. 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 ARCH stock is equal to 0.4%.

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 ARCH are equal to 20.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Arch Coal 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 ARCH is equal to -0.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $666 million for Arch Coal - 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 24 million for Arch Coal 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 Arch Coal at the current share price and the inputted number of shares is $2.2 billion.

COMPANY NEWS

▶ Arch Coal: 2Q Earnings Snapshot   [06:46AM  Associated Press]
▶ [$$] A Bargain in the Coal Bin   [May-26-18 12:01AM  Barrons.com]
▶ Coal Industry Outlook - May 2018   [May-24-18 04:39PM  Zacks]
▶ Why Arch Coal Inc Stock Is Sinking Today   [01:06PM  Motley Fool]
▶ Arch Coal: 1Q Earnings Snapshot   [07:29AM  Associated Press]
▶ How to Make It in Coal Mining: Don't Count on Coal   [Feb-13-18 01:36PM  Bloomberg]
▶ Arch Coal beats Street 4Q forecasts   [06:53AM  Associated Press]
▶ Why Coal Energy's Recent Comeback Will Be Short Lived   [Feb-10-18 10:48AM  Motley Fool]
▶ Coal Country: Where It Is and Why It Needs Help   [Jan-30-18 09:51PM  Investopedia]
▶ Coal Industry Outlook - January 2018   [Jan-29-18 05:59PM  Zacks]
▶ Coal Spot Prices Remain Steady for the Second Month   [Dec-28-17 09:02AM  Market Realist]
▶ Crude Oil Prices Rise: Will It Impact Coal Miners?   [Dec-27-17 02:50PM  Market Realist]
▶ ETFs with exposure to Arch Coal, Inc. : December 26, 2017   [Dec-26-17 11:12AM  Capital Cube]
▶ Coal Prices Have Been Constant Week-over-Week   [Dec-15-17 09:02AM  Market Realist]
▶ Are Coal Miners Impacted by a Fall in Crude Oil Prices?   [Dec-14-17 12:54PM  Market Realist]
▶ ETFs with exposure to Arch Coal, Inc. : December 11, 2017   [Dec-11-17 01:29PM  Capital Cube]
▶ Coal Prices Have Been Steady Week-over-Week   [Dec-07-17 09:02AM  Market Realist]
▶ Are Coal Miners Impacted by Volatility in Crude Oil Prices?   [Dec-06-17 04:35PM  Market Realist]
▶ Arch Coal Sees Relative Strength Rating Improve To 72   [03:00AM  Investor's Business Daily]
▶ ETFs with exposure to Arch Coal, Inc. : December 1, 2017   [Dec-01-17 10:24AM  Capital Cube]
▶ No Change in Coal Prices Week-Over-Week   [07:35AM  Market Realist]
▶ Natural Gas Prices Falls despite Strong Demand   [Nov-29-17 01:41PM  Market Realist]
▶ Coal Prices Remain Steady in Week Ended November 17   [Nov-23-17 07:33AM  Market Realist]
▶ How Lower Crude Oil Prices Could Affect Coal Miners   [Nov-22-17 12:15PM  Market Realist]
▶ Natural Gas Prices Fall despite Higher Demand   [10:41AM  Market Realist]
▶ ETFs with exposure to Arch Coal, Inc. : November 20, 2017   [Nov-20-17 11:38AM  Capital Cube]
▶ Can Rising Crude Oil Prices Affect Coal Miners?   [Nov-16-17 09:03AM  Market Realist]
▶ ETFs with exposure to Arch Coal, Inc. : November 9, 2017   [Nov-09-17 11:52AM  Capital Cube]
▶ Why Westmoreland Coals Revenue Fell in 3Q17   [Nov-07-17 03:15PM  Market Realist]
▶ How Arch Coals Leverage and Liquidity Compare   [Oct-31-17 09:02AM  Market Realist]
▶ Could Arch Coals Margins Improve in 3Q17?   [07:33AM  Market Realist]
▶ Arch Coal beats Street 3Q forecasts   [06:49AM  Associated Press]
▶ What to Expect for Arch Coals 3Q17 Earnings   [12:45PM  Market Realist]
▶ Natural Gas Inventory Falls below 5-Year Average   [Oct-25-17 03:40PM  Market Realist]
▶ Could a Rise in Natural Gas Inventory Affect Coal?   [Oct-18-17 07:44AM  Market Realist]
▶ Coal Production Tumbles Week-after-Week   [Oct-05-17 07:41AM  Market Realist]
▶ How Crude Oil Indirectly Impacts Coal Prices   [Oct-04-17 04:06PM  Market Realist]
▶ Is Weather Affecting Natural Gas Prices?   [02:37PM  Market Realist]
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