Intrinsic value of Baker Hughes a GE - BHGE

Previous Close

$31.01

  Intrinsic Value

$82.89

stock screener

  Rating & Target

str. buy

+167%

Previous close

$31.01

 
Intrinsic value

$82.89

 
Up/down potential

+167%

 
Rating

str. buy

We calculate the intrinsic value of BHGE 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 35.5

 

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, %
  30.10
  27.59
  25.33
  23.30
  21.47
  19.82
  18.34
  17.01
  15.80
  14.72
  13.75
  12.88
  12.09
  11.38
  10.74
  10.17
  9.65
  9.19
  8.77
  8.39
  8.05
  7.75
  7.47
  7.22
  7.00
  6.80
  6.62
  6.46
  6.31
  6.18
Revenue, $m
  22,454
  28,649
  35,906
  44,271
  53,776
  64,435
  76,252
  89,218
  103,319
  118,532
  134,832
  152,194
  170,593
  190,006
  210,417
  231,812
  254,184
  277,534
  301,866
  327,195
  353,539
  380,926
  409,387
  438,964
  469,701
  501,650
  534,868
  569,418
  605,368
  642,794
Variable operating expenses, $m
  20,540
  25,482
  31,271
  37,944
  45,526
  54,028
  63,455
  73,798
  85,046
  97,182
  107,556
  121,406
  136,082
  151,569
  167,850
  184,917
  202,764
  221,389
  240,799
  261,004
  282,019
  303,865
  326,569
  350,163
  374,682
  400,167
  426,665
  454,226
  482,904
  512,758
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
  20,540
  25,482
  31,271
  37,944
  45,526
  54,028
  63,455
  73,798
  85,046
  97,182
  107,556
  121,406
  136,082
  151,569
  167,850
  184,917
  202,764
  221,389
  240,799
  261,004
  282,019
  303,865
  326,569
  350,163
  374,682
  400,167
  426,665
  454,226
  482,904
  512,758
Operating income, $m
  1,914
  3,167
  4,635
  6,327
  8,250
  10,406
  12,797
  15,420
  18,273
  21,350
  27,276
  30,788
  34,510
  38,438
  42,567
  46,895
  51,421
  56,144
  61,067
  66,191
  71,520
  77,060
  82,818
  88,801
  95,019
  101,482
  108,202
  115,192
  122,464
  130,035
EBITDA, $m
  7,450
  9,506
  11,914
  14,689
  17,843
  21,379
  25,300
  29,602
  34,281
  39,329
  44,737
  50,498
  56,602
  63,044
  69,816
  76,915
  84,338
  92,085
  100,158
  108,562
  117,303
  126,390
  135,834
  145,647
  155,846
  166,446
  177,468
  188,931
  200,860
  213,277
Interest expense (income), $m
  0
  451
  1,134
  1,953
  2,913
  4,019
  5,276
  6,685
  8,248
  9,962
  11,827
  13,839
  15,994
  18,290
  20,723
  23,290
  25,989
  28,819
  31,777
  34,865
  38,082
  41,432
  44,916
  48,537
  52,301
  56,212
  60,277
  64,501
  68,894
  73,463
  78,217
Earnings before tax, $m
  1,463
  2,033
  2,682
  3,415
  4,231
  5,131
  6,112
  7,172
  8,310
  9,523
  13,437
  14,794
  16,220
  17,715
  19,276
  20,905
  22,602
  24,367
  26,202
  28,108
  30,088
  32,145
  34,281
  36,500
  38,807
  41,206
  43,701
  46,298
  49,002
  51,819
Tax expense, $m
  395
  549
  724
  922
  1,142
  1,385
  1,650
  1,937
  2,244
  2,571
  3,628
  3,994
  4,379
  4,783
  5,205
  5,644
  6,103
  6,579
  7,075
  7,589
  8,124
  8,679
  9,256
  9,855
  10,478
  11,126
  11,799
  12,500
  13,230
  13,991
Net income, $m
  1,068
  1,484
  1,958
  2,493
  3,089
  3,746
  4,462
  5,236
  6,066
  6,952
  9,809
  10,800
  11,841
  12,932
  14,072
  15,261
  16,500
  17,788
  19,127
  20,519
  21,964
  23,466
  25,025
  26,645
  28,329
  30,080
  31,902
  33,797
  35,771
  37,828

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
  74,105
  94,551
  118,502
  146,110
  177,478
  212,656
  251,655
  294,450
  340,987
  391,195
  444,991
  502,291
  563,013
  627,084
  694,446
  765,056
  838,892
  915,953
  996,258
  1,079,850
  1,166,795
  1,257,180
  1,351,114
  1,448,726
  1,550,168
  1,655,609
  1,765,239
  1,879,266
  1,997,915
  2,121,431
Adjusted assets (=assets-cash), $m
  74,105
  94,551
  118,502
  146,110
  177,478
  212,656
  251,655
  294,450
  340,987
  391,195
  444,991
  502,291
  563,013
  627,084
  694,446
  765,056
  838,892
  915,953
  996,258
  1,079,850
  1,166,795
  1,257,180
  1,351,114
  1,448,726
  1,550,168
  1,655,609
  1,765,239
  1,879,266
  1,997,915
  2,121,431
Revenue / Adjusted assets
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
  0.303
Average production assets, $m
  29,078
  37,100
  46,498
  57,332
  69,640
  83,443
  98,746
  115,538
  133,798
  153,499
  174,608
  197,091
  220,918
  246,058
  272,490
  300,197
  329,169
  359,406
  390,917
  423,717
  457,833
  493,299
  530,157
  568,458
  608,263
  649,636
  692,653
  737,396
  783,952
  832,418
Working capital, $m
  1,572
  2,005
  2,513
  3,099
  3,764
  4,510
  5,338
  6,245
  7,232
  8,297
  9,438
  10,654
  11,942
  13,300
  14,729
  16,227
  17,793
  19,427
  21,131
  22,904
  24,748
  26,665
  28,657
  30,727
  32,879
  35,115
  37,441
  39,859
  42,376
  44,996
Total debt, $m
  20,994
  36,165
  53,936
  74,422
  97,696
  123,799
  152,736
  184,490
  219,020
  256,274
  296,191
  338,708
  383,763
  431,304
  481,287
  533,680
  588,466
  645,645
  705,231
  767,257
  831,770
  898,836
  968,534
  1,040,963
  1,116,233
  1,194,470
  1,275,816
  1,360,423
  1,448,461
  1,540,110
Total liabilities, $m
  54,986
  70,157
  87,928
  108,414
  131,688
  157,791
  186,728
  218,482
  253,012
  290,266
  330,183
  372,700
  417,755
  465,296
  515,279
  567,672
  622,458
  679,637
  739,223
  801,249
  865,762
  932,828
  1,002,526
  1,074,955
  1,150,225
  1,228,462
  1,309,808
  1,394,415
  1,482,453
  1,574,102
Total equity, $m
  19,119
  24,394
  30,573
  37,696
  45,789
  54,865
  64,927
  75,968
  87,975
  100,928
  114,808
  129,591
  145,257
  161,788
  179,167
  197,385
  216,434
  236,316
  257,035
  278,601
  301,033
  324,352
  348,587
  373,771
  399,943
  427,147
  455,432
  484,851
  515,462
  547,329
Total liabilities and equity, $m
  74,105
  94,551
  118,501
  146,110
  177,477
  212,656
  251,655
  294,450
  340,987
  391,194
  444,991
  502,291
  563,012
  627,084
  694,446
  765,057
  838,892
  915,953
  996,258
  1,079,850
  1,166,795
  1,257,180
  1,351,113
  1,448,726
  1,550,168
  1,655,609
  1,765,240
  1,879,266
  1,997,915
  2,121,431
Debt-to-equity ratio
  1.100
  1.480
  1.760
  1.970
  2.130
  2.260
  2.350
  2.430
  2.490
  2.540
  2.580
  2.610
  2.640
  2.670
  2.690
  2.700
  2.720
  2.730
  2.740
  2.750
  2.760
  2.770
  2.780
  2.790
  2.790
  2.800
  2.800
  2.810
  2.810
  2.810
Adjusted equity ratio
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258
  0.258

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,068
  1,484
  1,958
  2,493
  3,089
  3,746
  4,462
  5,236
  6,066
  6,952
  9,809
  10,800
  11,841
  12,932
  14,072
  15,261
  16,500
  17,788
  19,127
  20,519
  21,964
  23,466
  25,025
  26,645
  28,329
  30,080
  31,902
  33,797
  35,771
  37,828
Depreciation, amort., depletion, $m
  5,536
  6,339
  7,278
  8,362
  9,592
  10,973
  12,503
  14,182
  16,008
  17,978
  17,461
  19,709
  22,092
  24,606
  27,249
  30,020
  32,917
  35,941
  39,092
  42,372
  45,783
  49,330
  53,016
  56,846
  60,826
  64,964
  69,265
  73,740
  78,395
  83,242
Funds from operations, $m
  6,604
  7,823
  9,236
  10,855
  12,681
  14,718
  16,965
  19,418
  22,075
  24,930
  27,270
  30,509
  33,933
  37,537
  41,321
  45,281
  49,416
  53,729
  58,219
  62,891
  67,748
  72,795
  78,041
  83,491
  89,156
  95,044
  101,167
  107,537
  114,166
  121,069
Change in working capital, $m
  364
  434
  508
  586
  665
  746
  827
  908
  987
  1,065
  1,141
  1,215
  1,288
  1,359
  1,429
  1,498
  1,566
  1,634
  1,703
  1,773
  1,844
  1,917
  1,992
  2,070
  2,152
  2,236
  2,325
  2,419
  2,517
  2,620
Cash from operations, $m
  6,241
  7,389
  8,728
  10,269
  12,016
  13,972
  16,138
  18,510
  21,088
  23,865
  26,129
  29,294
  32,645
  36,179
  39,892
  43,783
  47,850
  52,094
  56,516
  61,118
  65,904
  70,878
  76,048
  81,421
  87,004
  92,807
  98,842
  105,118
  111,650
  118,450
Maintenance CAPEX, $m
  -2,235
  -2,908
  -3,710
  -4,650
  -5,733
  -6,964
  -8,344
  -9,875
  -11,554
  -13,380
  -15,350
  -17,461
  -19,709
  -22,092
  -24,606
  -27,249
  -30,020
  -32,917
  -35,941
  -39,092
  -42,372
  -45,783
  -49,330
  -53,016
  -56,846
  -60,826
  -64,964
  -69,265
  -73,740
  -78,395
New CAPEX, $m
  -6,729
  -8,023
  -9,398
  -10,833
  -12,308
  -13,803
  -15,303
  -16,792
  -18,260
  -19,701
  -21,109
  -22,484
  -23,826
  -25,141
  -26,432
  -27,706
  -28,972
  -30,237
  -31,510
  -32,800
  -34,116
  -35,466
  -36,858
  -38,302
  -39,804
  -41,374
  -43,017
  -44,742
  -46,556
  -48,466
Cash from investing activities, $m
  -8,964
  -10,931
  -13,108
  -15,483
  -18,041
  -20,767
  -23,647
  -26,667
  -29,814
  -33,081
  -36,459
  -39,945
  -43,535
  -47,233
  -51,038
  -54,955
  -58,992
  -63,154
  -67,451
  -71,892
  -76,488
  -81,249
  -86,188
  -91,318
  -96,650
  -102,200
  -107,981
  -114,007
  -120,296
  -126,861
Free cash flow, $m
  -2,723
  -3,541
  -4,380
  -5,214
  -6,025
  -6,795
  -7,509
  -8,156
  -8,726
  -9,215
  -10,330
  -10,651
  -10,891
  -11,054
  -11,146
  -11,172
  -11,142
  -11,060
  -10,935
  -10,774
  -10,584
  -10,371
  -10,140
  -9,897
  -9,646
  -9,392
  -9,139
  -8,889
  -8,646
  -8,411
Issuance/(repayment) of debt, $m
  12,645
  15,171
  17,771
  20,485
  23,274
  26,102
  28,937
  31,754
  34,530
  37,254
  39,917
  42,517
  45,056
  47,541
  49,982
  52,393
  54,786
  57,179
  59,586
  62,026
  64,513
  67,066
  69,699
  72,428
  75,270
  78,237
  81,345
  84,608
  88,038
  91,649
Issuance/(repurchase) of shares, $m
  3,342
  3,791
  4,221
  4,630
  5,004
  5,330
  5,600
  5,805
  5,940
  6,002
  4,070
  3,984
  3,825
  3,599
  3,308
  2,956
  2,550
  2,094
  1,591
  1,048
  467
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  15,987
  18,962
  21,992
  25,115
  28,278
  31,432
  34,537
  37,559
  40,470
  43,256
  43,987
  46,501
  48,881
  51,140
  53,290
  55,349
  57,336
  59,273
  61,177
  63,074
  64,980
  67,066
  69,699
  72,428
  75,270
  78,237
  81,345
  84,608
  88,038
  91,649
Total cash flow (excl. dividends), $m
  13,264
  15,420
  17,613
  19,902
  22,253
  24,638
  27,028
  29,403
  31,744
  34,041
  33,657
  35,849
  37,990
  40,086
  42,144
  44,177
  46,195
  48,212
  50,242
  52,299
  54,397
  56,695
  59,559
  62,532
  65,624
  68,845
  72,206
  75,718
  79,392
  83,237
Retained Cash Flow (-), $m
  -4,410
  -5,275
  -6,179
  -7,123
  -8,093
  -9,076
  -10,062
  -11,041
  -12,007
  -12,954
  -13,879
  -14,783
  -15,666
  -16,530
  -17,379
  -18,217
  -19,050
  -19,882
  -20,719
  -21,567
  -22,432
  -23,319
  -24,235
  -25,184
  -26,172
  -27,204
  -28,285
  -29,419
  -30,612
  -31,867
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
  8,854
  10,145
  11,434
  12,779
  14,160
  15,562
  16,966
  18,362
  19,738
  21,087
  19,778
  21,066
  22,324
  23,555
  24,765
  25,959
  27,145
  28,331
  29,524
  30,732
  31,965
  33,376
  35,324
  37,348
  39,452
  41,641
  43,922
  46,300
  48,780
  51,370
Discount rate, %
  5.90
  6.20
  6.50
  6.83
  7.17
  7.53
  7.91
  8.30
  8.72
  9.15
  9.61
  10.09
  10.60
  11.13
  11.68
  12.27
  12.88
  13.52
  14.20
  14.91
  15.65
  16.44
  17.26
  18.12
  19.03
  19.98
  20.98
  22.03
  23.13
  24.29
PV of cash for distribution, $m
  8,361
  8,996
  9,464
  9,811
  10,016
  10,066
  9,960
  9,701
  9,303
  8,783
  7,208
  6,646
  6,028
  5,379
  4,722
  4,077
  3,462
  2,889
  2,369
  1,908
  1,508
  1,173
  907
  686
  507
  365
  257
  176
  117
  76
Current shareholders' claim on cash, %
  91.4
  84.5
  78.8
  74.2
  70.3
  67.1
  64.3
  62.0
  60.1
  58.4
  57.5
  56.7
  56.0
  55.4
  54.9
  54.6
  54.3
  54.1
  53.9
  53.8
  53.8
  53.8
  53.8
  53.8
  53.8
  53.8
  53.8
  53.8
  53.8
  53.8

FINANCIAL RATIOS  of  Baker Hughes a GE (BHGE)

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%

BHGE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BHGE stock intrinsic value calculation we used $17259 million for the last fiscal year's total revenue generated by Baker Hughes a GE. The default revenue input number comes from 2017 income statement of Baker Hughes a GE. 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 BHGE stock valuation model: a) initial revenue growth rate of 30.1% 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 5.9%, whose default value for BHGE is calculated based on our internal credit rating of Baker Hughes a GE, 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 Baker Hughes a GE.
    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 BHGE stock the variable cost ratio is equal to 95%.

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 BHGE 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 5.4% for Baker Hughes a GE.

Corporate tax rate of 27% is the nominal tax rate for Baker Hughes a GE. 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 BHGE 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 BHGE are equal to 129.5%.

Life of production assets of 10 years is the average useful life of capital assets used in Baker Hughes a GE 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 BHGE is equal to 7%. 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 - $14709 million for Baker Hughes a GE - 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 1145 million for Baker Hughes a GE 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 Baker Hughes a GE at the current share price and the inputted number of shares is $35.5 billion.

COMPANY NEWS

▶ [$$] U.S. Oil-Rig Count Unchanged in Latest Week   [Aug-17-18 02:24PM  The Wall Street Journal]
▶ Baker Hughes: US Drillers Add Most Oil Rigs Since May   [Aug-09-18 08:00PM  Rigzone.com]
▶ Baker Hughes, a GE company Announces July 2018 Rig Counts   [Aug-07-18 06:00AM  Business Wire]
▶ Stocks - Facebook Jumps Midday; T-Mobile, Sprint Rise   [Aug-06-18 03:00PM  Investing.com]
▶ Oil Prices Slip As Rig Count Inches Higher   [Jul-27-18 01:15PM  Oilprice.com]
▶ Major Houston oil field services CEOs sound off on Permian Basin pipeline constraints   [Jul-25-18 03:27PM  American City Business Journals]
▶ [$$] Global Oil Industry Prepares for a Revival   [Jul-20-18 07:23PM  The Wall Street Journal]
▶ [$$] Global Oil Industry Prepares for a Revival   [02:15PM  The Wall Street Journal]
▶ [$$] Baker Hughes Reports Loss   [08:15AM  The Wall Street Journal]
▶ Schlumberger, Baker Hughes Set Sights on 'Healthy' 2H   [Jul-19-18 08:00PM  Rigzone.com]
▶ Baker Hughes GE to sell Natural Gas Solutions businesses for $375M   [Jul-18-18 12:59PM  American City Business Journals]
▶ U.S., Canadian Rig Count Rises After Tumultuous Week   [Jul-13-18 01:25PM  Oilprice.com]
▶ [$$] U.S. Oil-Rig Count Up By Five in Latest Week   [01:27PM  The Wall Street Journal]
▶ [$$] What the Surge in Energy Stocks Means   [Jun-30-18 12:01AM  Barrons.com]
▶ Oil Rig Count Falls Amid Stagnating Production   [Jun-29-18 01:13PM  Oilprice.com]
▶ Does GE Finally Have the Right CEO?   [11:35AM  Barrons.com]
▶ Trump to Meet Putin in Helsinki   [08:38AM  Bloomberg Video]
▶ [$$] GE Narrows Focus to Power, Aviation in Latest Revamp   [12:12AM  The Wall Street Journal]
▶ [$$] GE Narrows Focus to Power, Aviation in Latest Revamp   [Jun-26-18 11:13PM  The Wall Street Journal]
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