Intrinsic value of Black Stone Minerals, L.P. - BSM

Previous Close

$13.84

  Intrinsic Value

$331.81

stock screener

  Rating & Target

str. buy

+999%

Previous close

$13.84

 
Intrinsic value

$331.81

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of BSM 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 0001), $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 2.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

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
  976
  1,508
  2,255
  3,272
  4,616
  6,346
  8,519
  11,186
  14,393
  18,180
  22,575
  27,600
  33,268
  39,582
  46,541
  54,139
  62,363
  71,202
  80,640
  90,663
  101,259
  112,415
  124,125
  136,382
  149,184
  162,534
  176,436
  190,901
  205,941
  221,573
Variable operating expenses, $m
  183
  282
  422
  612
  863
  1,187
  1,593
  2,092
  2,692
  3,400
  4,222
  5,161
  6,221
  7,402
  8,703
  10,124
  11,662
  13,315
  15,080
  16,954
  18,935
  21,022
  23,211
  25,503
  27,897
  30,394
  32,994
  35,698
  38,511
  41,434
Fixed operating expenses, $m
  186
  190
  194
  199
  203
  207
  212
  217
  221
  226
  231
  236
  242
  247
  252
  258
  263
  269
  275
  281
  287
  294
  300
  307
  314
  320
  328
  335
  342
  350
Total operating expenses, $m
  369
  472
  616
  811
  1,066
  1,394
  1,805
  2,309
  2,913
  3,626
  4,453
  5,397
  6,463
  7,649
  8,955
  10,382
  11,925
  13,584
  15,355
  17,235
  19,222
  21,316
  23,511
  25,810
  28,211
  30,714
  33,322
  36,033
  38,853
  41,784
Operating income, $m
  607
  1,036
  1,639
  2,462
  3,550
  4,952
  6,714
  8,877
  11,480
  14,554
  18,122
  22,203
  26,805
  31,933
  37,586
  43,757
  50,438
  57,618
  65,285
  73,428
  82,036
  91,100
  100,613
  110,572
  120,973
  131,819
  143,115
  154,868
  167,088
  179,789
EBITDA, $m
  805
  1,341
  2,095
  3,123
  4,483
  6,235
  8,435
  11,138
  14,389
  18,228
  22,685
  27,781
  33,528
  39,933
  46,992
  54,698
  63,041
  72,008
  81,582
  91,751
  102,500
  113,819
  125,699
  138,134
  151,123
  164,667
  178,772
  193,448
  208,708
  224,568
Interest expense (income), $m
  7
  22
  64
  138
  242
  383
  570
  811
  1,114
  1,485
  1,932
  2,459
  3,071
  3,771
  4,560
  5,440
  6,409
  7,467
  8,612
  9,843
  11,157
  12,553
  14,028
  15,582
  17,213
  18,919
  20,702
  22,561
  24,497
  26,512
  28,606
Earnings before tax, $m
  585
  972
  1,501
  2,220
  3,167
  4,382
  5,902
  7,763
  9,995
  12,622
  15,663
  19,131
  23,034
  27,373
  32,146
  37,348
  42,971
  49,006
  55,442
  62,271
  69,483
  77,072
  85,031
  93,359
  102,054
  111,117
  120,554
  130,370
  140,576
  151,183
Tax expense, $m
  158
  263
  405
  599
  855
  1,183
  1,594
  2,096
  2,699
  3,408
  4,229
  5,165
  6,219
  7,391
  8,680
  10,084
  11,602
  13,232
  14,969
  16,813
  18,760
  20,809
  22,958
  25,207
  27,554
  30,002
  32,550
  35,200
  37,956
  40,819
Net income, $m
  427
  710
  1,096
  1,621
  2,312
  3,199
  4,309
  5,667
  7,296
  9,214
  11,434
  13,966
  16,815
  19,982
  23,467
  27,264
  31,369
  35,774
  40,473
  45,458
  50,723
  56,262
  62,073
  68,152
  74,499
  81,116
  88,004
  95,170
  102,621
  110,364

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
  2,797
  4,321
  6,462
  9,375
  13,227
  18,185
  24,409
  32,051
  41,241
  52,091
  64,685
  79,084
  95,323
  113,416
  133,357
  155,126
  178,692
  204,017
  231,060
  259,780
  290,140
  322,107
  355,659
  390,779
  427,462
  465,713
  505,548
  546,994
  590,088
  634,880
Adjusted assets (=assets-cash), $m
  2,797
  4,321
  6,462
  9,375
  13,227
  18,185
  24,409
  32,051
  41,241
  52,091
  64,685
  79,084
  95,323
  113,416
  133,357
  155,126
  178,692
  204,017
  231,060
  259,780
  290,140
  322,107
  355,659
  390,779
  427,462
  465,713
  505,548
  546,994
  590,088
  634,880
Revenue / Adjusted assets
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
  0.349
Average production assets, $m
  2,446
  3,779
  5,651
  8,200
  11,569
  15,904
  21,348
  28,031
  36,069
  45,559
  56,574
  69,167
  83,369
  99,193
  116,633
  135,672
  156,283
  178,432
  202,084
  227,202
  253,754
  281,713
  311,057
  341,773
  373,855
  407,310
  442,149
  478,398
  516,088
  555,262
Working capital, $m
  140
  216
  322
  468
  660
  908
  1,218
  1,600
  2,058
  2,600
  3,228
  3,947
  4,757
  5,660
  6,655
  7,742
  8,918
  10,182
  11,532
  12,965
  14,480
  16,075
  17,750
  19,503
  21,333
  23,242
  25,230
  27,299
  29,450
  31,685
Total debt, $m
  1,177
  2,548
  4,475
  7,098
  10,565
  15,026
  20,628
  27,505
  35,777
  45,542
  56,877
  69,836
  84,451
  100,734
  118,681
  138,273
  159,483
  182,275
  206,614
  232,462
  259,785
  288,556
  318,753
  350,361
  383,375
  417,801
  453,653
  490,954
  529,739
  570,051
Total liabilities, $m
  2,517
  3,889
  5,815
  8,438
  11,905
  16,366
  21,968
  28,846
  37,117
  46,882
  58,217
  71,176
  85,791
  102,074
  120,021
  139,613
  160,823
  183,615
  207,954
  233,802
  261,126
  289,897
  320,093
  351,701
  384,715
  419,142
  454,993
  492,295
  531,080
  571,392
Total equity, $m
  280
  432
  646
  938
  1,323
  1,818
  2,441
  3,205
  4,124
  5,209
  6,469
  7,908
  9,532
  11,342
  13,336
  15,513
  17,869
  20,402
  23,106
  25,978
  29,014
  32,211
  35,566
  39,078
  42,746
  46,571
  50,555
  54,699
  59,009
  63,488
Total liabilities and equity, $m
  2,797
  4,321
  6,461
  9,376
  13,228
  18,184
  24,409
  32,051
  41,241
  52,091
  64,686
  79,084
  95,323
  113,416
  133,357
  155,126
  178,692
  204,017
  231,060
  259,780
  290,140
  322,108
  355,659
  390,779
  427,461
  465,713
  505,548
  546,994
  590,089
  634,880
Debt-to-equity ratio
  4.210
  5.900
  6.930
  7.570
  7.990
  8.260
  8.450
  8.580
  8.680
  8.740
  8.790
  8.830
  8.860
  8.880
  8.900
  8.910
  8.930
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.980
  8.980
  8.980
Adjusted equity ratio
  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
  427
  710
  1,096
  1,621
  2,312
  3,199
  4,309
  5,667
  7,296
  9,214
  11,434
  13,966
  16,815
  19,982
  23,467
  27,264
  31,369
  35,774
  40,473
  45,458
  50,723
  56,262
  62,073
  68,152
  74,499
  81,116
  88,004
  95,170
  102,621
  110,364
Depreciation, amort., depletion, $m
  197
  305
  456
  661
  933
  1,283
  1,722
  2,261
  2,909
  3,674
  4,562
  5,578
  6,723
  7,999
  9,406
  10,941
  12,603
  14,390
  16,297
  18,323
  20,464
  22,719
  25,085
  27,562
  30,150
  32,848
  35,657
  38,580
  41,620
  44,779
Funds from operations, $m
  625
  1,015
  1,552
  2,282
  3,245
  4,481
  6,030
  7,928
  10,205
  12,888
  15,997
  19,544
  23,538
  27,982
  32,873
  38,206
  43,972
  50,164
  56,770
  63,780
  71,187
  78,981
  87,158
  95,714
  104,649
  113,963
  123,662
  133,751
  144,241
  155,143
Change in working capital, $m
  52
  76
  107
  145
  192
  247
  311
  381
  459
  541
  629
  719
  810
  903
  995
  1,086
  1,176
  1,264
  1,350
  1,433
  1,515
  1,595
  1,674
  1,753
  1,831
  1,909
  1,988
  2,068
  2,151
  2,235
Cash from operations, $m
  572
  938
  1,445
  2,136
  3,053
  4,234
  5,720
  7,547
  9,747
  12,347
  15,368
  18,825
  22,728
  27,079
  31,878
  37,119
  42,796
  48,900
  55,420
  62,347
  69,671
  77,386
  85,484
  93,962
  102,818
  112,054
  121,673
  131,682
  142,090
  152,908
Maintenance CAPEX, $m
  -123
  -197
  -305
  -456
  -661
  -933
  -1,283
  -1,722
  -2,261
  -2,909
  -3,674
  -4,562
  -5,578
  -6,723
  -7,999
  -9,406
  -10,941
  -12,603
  -14,390
  -16,297
  -18,323
  -20,464
  -22,719
  -25,085
  -27,562
  -30,150
  -32,848
  -35,657
  -38,580
  -41,620
New CAPEX, $m
  -917
  -1,333
  -1,872
  -2,548
  -3,369
  -4,336
  -5,444
  -6,683
  -8,038
  -9,489
  -11,015
  -12,593
  -14,202
  -15,824
  -17,440
  -19,039
  -20,611
  -22,149
  -23,652
  -25,118
  -26,552
  -27,959
  -29,344
  -30,716
  -32,083
  -33,454
  -34,840
  -36,248
  -37,690
  -39,174
Cash from investing activities, $m
  -1,040
  -1,530
  -2,177
  -3,004
  -4,030
  -5,269
  -6,727
  -8,405
  -10,299
  -12,398
  -14,689
  -17,155
  -19,780
  -22,547
  -25,439
  -28,445
  -31,552
  -34,752
  -38,042
  -41,415
  -44,875
  -48,423
  -52,063
  -55,801
  -59,645
  -63,604
  -67,688
  -71,905
  -76,270
  -80,794
Free cash flow, $m
  -468
  -592
  -732
  -868
  -978
  -1,035
  -1,007
  -858
  -552
  -51
  679
  1,670
  2,947
  4,532
  6,438
  8,674
  11,244
  14,147
  17,379
  20,932
  24,796
  28,963
  33,421
  38,161
  43,173
  48,450
  53,986
  59,777
  65,819
  72,114
Issuance/(repayment) of debt, $m
  767
  1,372
  1,927
  2,622
  3,467
  4,461
  5,602
  6,877
  8,272
  9,765
  11,335
  12,959
  14,615
  16,283
  17,947
  19,592
  21,209
  22,793
  24,339
  25,848
  27,324
  28,771
  30,196
  31,608
  33,015
  34,426
  35,852
  37,301
  38,785
  40,312
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  
  767
  1,372
  1,927
  2,622
  3,467
  4,461
  5,602
  6,877
  8,272
  9,765
  11,335
  12,959
  14,615
  16,283
  17,947
  19,592
  21,209
  22,793
  24,339
  25,848
  27,324
  28,771
  30,196
  31,608
  33,015
  34,426
  35,852
  37,301
  38,785
  40,312
Total cash flow (excl. dividends), $m
  298
  780
  1,195
  1,755
  2,489
  3,427
  4,595
  6,019
  7,719
  9,713
  12,014
  14,629
  17,562
  20,815
  24,385
  28,266
  32,454
  36,940
  41,718
  46,780
  52,120
  57,734
  63,617
  69,769
  76,188
  82,876
  89,838
  97,078
  104,604
  112,426
Retained Cash Flow (-), $m
  -280
  -152
  -214
  -291
  -385
  -496
  -622
  -764
  -919
  -1,085
  -1,259
  -1,440
  -1,624
  -1,809
  -1,994
  -2,177
  -2,357
  -2,533
  -2,704
  -2,872
  -3,036
  -3,197
  -3,355
  -3,512
  -3,668
  -3,825
  -3,984
  -4,145
  -4,309
  -4,479
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
  19
  628
  981
  1,463
  2,104
  2,931
  3,973
  5,255
  6,800
  8,629
  10,754
  13,189
  15,938
  19,006
  22,391
  26,089
  30,097
  34,407
  39,013
  43,908
  49,084
  54,537
  60,262
  66,257
  72,519
  79,051
  85,854
  92,934
  100,295
  107,946
Discount rate, %
  5.80
  6.09
  6.39
  6.71
  7.05
  7.40
  7.77
  8.16
  8.57
  9.00
  9.45
  9.92
  10.42
  10.94
  11.48
  12.06
  12.66
  13.29
  13.96
  14.66
  15.39
  16.16
  16.97
  17.81
  18.71
  19.64
  20.62
  21.65
  22.74
  23.87
PV of cash for distribution, $m
  18
  558
  814
  1,128
  1,497
  1,910
  2,353
  2,805
  3,245
  3,646
  3,984
  4,239
  4,396
  4,445
  4,384
  4,221
  3,966
  3,639
  3,259
  2,848
  2,429
  2,021
  1,639
  1,295
  997
  747
  543
  384
  264
  175
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

Black Stone Minerals, L.P. is an owner of oil and natural gas mineral interests in the United States. The Company's principal business is maximizing the value of its existing portfolio of mineral and royalty assets through active management and expanding its asset base through acquisitions of additional mineral and royalty interests. As of December 31, 2016, it owned mineral interests in approximately 15.5 million acres, with an average 45.7% ownership interest in that acreage. As of December 31, 2016, it also owned nonparticipating royalty interests in 1.5 million acres and overriding royalty interests in 1.5 million acres. As of December 31, 2016, these non-cost-bearing interests, which it referred to collectively as its mineral and royalty interests, included ownership in 50,000 producing wells. As of December 31, 2016, its mineral and royalty interests were located in 41 states and in 64 onshore basins in the continental United States.

FINANCIAL RATIOS  of  Black Stone Minerals, L.P. (BSM)

Valuation Ratios
P/E Ratio 132.1
Price to Sales 10.1
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 13.4
Price to Free Cash Flow -105.7
Growth Rates
Sales Growth Rate -33.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 89.7%
Cap. Spend. - 3 Yr. Gr. Rate 2.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 43.5%
Total Debt to Equity 43.5%
Interest Coverage 4
Management Effectiveness
Return On Assets 2.5%
Ret/ On Assets - 3 Yr. Avg. 2.6%
Return On Total Capital 2%
Ret/ On T. Cap. - 3 Yr. Avg. 2.1%
Return On Equity 2.4%
Return On Equity - 3 Yr. Avg. 3.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 79.3%
Gross Margin - 3 Yr. Avg. 83.8%
EBITDA Margin 49.4%
EBITDA Margin - 3 Yr. Avg. 35%
Operating Margin 10.7%
Oper. Margin - 3 Yr. Avg. 6.4%
Pre-Tax Margin 7.7%
Pre-Tax Margin - 3 Yr. Avg. 4.3%
Net Profit Margin 7.7%
Net Profit Margin - 3 Yr. Avg. 4.4%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 910%

BSM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BSM stock intrinsic value calculation we used $610 million for the last fiscal year's total revenue generated by Black Stone Minerals, L.P.. The default revenue input number comes from 0001 income statement of Black Stone Minerals, L.P.. 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 BSM 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 5.8%, whose default value for BSM is calculated based on our internal credit rating of Black Stone Minerals, L.P., 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 Black Stone Minerals, L.P..
    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 BSM stock the variable cost ratio is equal to 18.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $182 million in the base year in the intrinsic value calculation for BSM 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 Black Stone Minerals, L.P..

Corporate tax rate of 27% is the nominal tax rate for Black Stone Minerals, L.P.. 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 BSM 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 BSM are equal to 250.6%.

Life of production assets of 12.4 years is the average useful life of capital assets used in Black Stone Minerals, L.P. 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 BSM is equal to 14.3%. 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 - $0 million for Black Stone Minerals, L.P. - 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 205.317 million for Black Stone Minerals, L.P. 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 Black Stone Minerals, L.P. at the current share price and the inputted number of shares is $2.8 billion.

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