Intrinsic value of Baytex Energy - BTE

Previous Close

$2.69

  Intrinsic Value

$1.56

stock screener

  Rating & Target

sell

-42%

Previous close

$2.69

 
Intrinsic value

$1.56

 
Up/down potential

-42%

 
Rating

sell

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

We calculate the intrinsic value of BTE 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Baytex Energy (BTE) stock.

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, %
  -31.49
  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
  446
  580
  740
  928
  1,144
  1,390
  1,665
  1,970
  2,306
  2,670
  3,063
  3,484
  3,933
  4,408
  4,910
  5,438
  5,990
  6,569
  7,172
  7,801
  8,455
  9,136
  9,844
  10,579
  11,344
  12,138
  12,963
  13,822
  14,715
  15,644
  16,611
Variable operating expenses, $m
 
  1,452
  1,852
  2,322
  2,862
  3,477
  4,166
  4,930
  5,768
  6,680
  7,664
  8,718
  9,840
  11,030
  12,285
  13,605
  14,988
  16,434
  17,944
  19,517
  21,155
  22,858
  24,629
  26,469
  28,382
  30,369
  32,434
  34,582
  36,816
  39,140
  41,560
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
  953
  1,452
  1,852
  2,322
  2,862
  3,477
  4,166
  4,930
  5,768
  6,680
  7,664
  8,718
  9,840
  11,030
  12,285
  13,605
  14,988
  16,434
  17,944
  19,517
  21,155
  22,858
  24,629
  26,469
  28,382
  30,369
  32,434
  34,582
  36,816
  39,140
  41,560
Operating income, $m
  -507
  -872
  -1,112
  -1,394
  -1,718
  -2,087
  -2,501
  -2,960
  -3,463
  -4,010
  -4,601
  -5,233
  -5,907
  -6,621
  -7,375
  -8,167
  -8,998
  -9,866
  -10,772
  -11,717
  -12,700
  -13,722
  -14,785
  -15,890
  -17,038
  -18,231
  -19,471
  -20,760
  -22,101
  -23,497
  -24,949
EBITDA, $m
  -131
  -381
  -486
  -609
  -751
  -912
  -1,092
  -1,293
  -1,512
  -1,752
  -2,009
  -2,286
  -2,580
  -2,892
  -3,221
  -3,567
  -3,930
  -4,309
  -4,705
  -5,117
  -5,547
  -5,993
  -6,458
  -6,940
  -7,442
  -7,963
  -8,504
  -9,067
  -9,653
  -10,263
  -10,897
Interest expense (income), $m
  77
  75
  109
  150
  197
  251
  313
  383
  459
  544
  636
  735
  841
  954
  1,074
  1,200
  1,333
  1,472
  1,618
  1,770
  1,928
  2,093
  2,265
  2,443
  2,628
  2,821
  3,021
  3,229
  3,445
  3,670
  3,904
Earnings before tax, $m
  -561
  -947
  -1,221
  -1,543
  -1,915
  -2,339
  -2,814
  -3,342
  -3,922
  -4,554
  -5,236
  -5,968
  -6,748
  -7,575
  -8,449
  -9,367
  -10,330
  -11,338
  -12,390
  -13,486
  -14,628
  -15,815
  -17,050
  -18,333
  -19,666
  -21,052
  -22,492
  -23,989
  -25,547
  -27,167
  -28,854
Tax expense, $m
  -202
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -359
  -947
  -1,221
  -1,543
  -1,915
  -2,339
  -2,814
  -3,342
  -3,922
  -4,554
  -5,236
  -5,968
  -6,748
  -7,575
  -8,449
  -9,367
  -10,330
  -11,338
  -12,390
  -13,486
  -14,628
  -15,815
  -17,050
  -18,333
  -19,666
  -21,052
  -22,492
  -23,989
  -25,547
  -27,167
  -28,854

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,400
  4,429
  5,651
  7,083
  8,733
  10,608
  12,711
  15,042
  17,600
  20,381
  23,382
  26,598
  30,022
  33,652
  37,481
  41,508
  45,728
  50,141
  54,747
  59,547
  64,544
  69,741
  75,143
  80,757
  86,592
  92,655
  98,957
  105,510
  112,326
  119,417
  126,800
Adjusted assets (=assets-cash), $m
  3,398
  4,429
  5,651
  7,083
  8,733
  10,608
  12,711
  15,042
  17,600
  20,381
  23,382
  26,598
  30,022
  33,652
  37,481
  41,508
  45,728
  50,141
  54,747
  59,547
  64,544
  69,741
  75,143
  80,757
  86,592
  92,655
  98,957
  105,510
  112,326
  119,417
  126,800
Revenue / Adjusted assets
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
Average production assets, $m
  3,283
  4,271
  5,449
  6,829
  8,420
  10,228
  12,255
  14,503
  16,969
  19,651
  22,544
  25,644
  28,946
  32,446
  36,138
  40,020
  44,089
  48,344
  52,785
  57,413
  62,230
  67,241
  72,450
  77,863
  83,488
  89,334
  95,411
  101,729
  108,300
  115,137
  122,256
Working capital, $m
  -25
  -35
  -45
  -57
  -70
  -85
  -102
  -120
  -141
  -163
  -187
  -213
  -240
  -269
  -300
  -332
  -365
  -401
  -437
  -476
  -516
  -557
  -600
  -645
  -692
  -740
  -791
  -843
  -898
  -954
  -1,013
Total debt, $m
  1,298
  1,883
  2,579
  3,393
  4,332
  5,399
  6,595
  7,922
  9,377
  10,960
  12,667
  14,497
  16,446
  18,511
  20,690
  22,981
  25,382
  27,893
  30,514
  33,245
  36,088
  39,045
  42,119
  45,314
  48,634
  52,084
  55,670
  59,398
  63,276
  67,312
  71,512
Total liabilities, $m
  1,936
  2,520
  3,216
  4,030
  4,969
  6,036
  7,232
  8,559
  10,014
  11,597
  13,304
  15,134
  17,083
  19,148
  21,327
  23,618
  26,019
  28,530
  31,151
  33,882
  36,725
  39,682
  42,756
  45,951
  49,271
  52,721
  56,307
  60,035
  63,913
  67,949
  72,149
Total equity, $m
  1,465
  1,909
  2,436
  3,053
  3,764
  4,572
  5,478
  6,483
  7,585
  8,784
  10,078
  11,464
  12,940
  14,504
  16,155
  17,890
  19,709
  21,611
  23,596
  25,665
  27,818
  30,058
  32,387
  34,806
  37,321
  39,934
  42,651
  45,475
  48,412
  51,469
  54,651
Total liabilities and equity, $m
  3,401
  4,429
  5,652
  7,083
  8,733
  10,608
  12,710
  15,042
  17,599
  20,381
  23,382
  26,598
  30,023
  33,652
  37,482
  41,508
  45,728
  50,141
  54,747
  59,547
  64,543
  69,740
  75,143
  80,757
  86,592
  92,655
  98,958
  105,510
  112,325
  119,418
  126,800
Debt-to-equity ratio
  0.886
  0.990
  1.060
  1.110
  1.150
  1.180
  1.200
  1.220
  1.240
  1.250
  1.260
  1.260
  1.270
  1.280
  1.280
  1.280
  1.290
  1.290
  1.290
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.300
  1.310
  1.310
  1.310
  1.310
  1.310
Adjusted equity ratio
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -359
  -947
  -1,221
  -1,543
  -1,915
  -2,339
  -2,814
  -3,342
  -3,922
  -4,554
  -5,236
  -5,968
  -6,748
  -7,575
  -8,449
  -9,367
  -10,330
  -11,338
  -12,390
  -13,486
  -14,628
  -15,815
  -17,050
  -18,333
  -19,666
  -21,052
  -22,492
  -23,989
  -25,547
  -27,167
  -28,854
Depreciation, amort., depletion, $m
  376
  491
  626
  785
  968
  1,176
  1,409
  1,667
  1,950
  2,259
  2,591
  2,948
  3,327
  3,729
  4,154
  4,600
  5,068
  5,557
  6,067
  6,599
  7,153
  7,729
  8,328
  8,950
  9,596
  10,268
  10,967
  11,693
  12,448
  13,234
  14,052
Funds from operations, $m
  535
  -456
  -595
  -758
  -947
  -1,163
  -1,405
  -1,675
  -1,972
  -2,295
  -2,645
  -3,020
  -3,421
  -3,846
  -4,295
  -4,767
  -5,263
  -5,781
  -6,323
  -6,887
  -7,475
  -8,087
  -8,722
  -9,383
  -10,070
  -10,783
  -11,525
  -12,296
  -13,098
  -13,933
  -14,801
Change in working capital, $m
  352
  -8
  -10
  -11
  -13
  -15
  -17
  -19
  -20
  -22
  -24
  -26
  -27
  -29
  -31
  -32
  -34
  -35
  -37
  -38
  -40
  -42
  -43
  -45
  -47
  -48
  -50
  -52
  -54
  -57
  -59
Cash from operations, $m
  183
  -448
  -585
  -747
  -934
  -1,148
  -1,389
  -1,657
  -1,952
  -2,273
  -2,621
  -2,995
  -3,394
  -3,817
  -4,264
  -4,735
  -5,229
  -5,746
  -6,286
  -6,849
  -7,435
  -8,045
  -8,679
  -9,338
  -10,023
  -10,735
  -11,475
  -12,244
  -13,044
  -13,876
  -14,742
Maintenance CAPEX, $m
  0
  -377
  -491
  -626
  -785
  -968
  -1,176
  -1,409
  -1,667
  -1,950
  -2,259
  -2,591
  -2,948
  -3,327
  -3,729
  -4,154
  -4,600
  -5,068
  -5,557
  -6,067
  -6,599
  -7,153
  -7,729
  -8,328
  -8,950
  -9,596
  -10,268
  -10,967
  -11,693
  -12,448
  -13,234
New CAPEX, $m
  -166
  -988
  -1,178
  -1,380
  -1,591
  -1,808
  -2,027
  -2,247
  -2,466
  -2,682
  -2,893
  -3,100
  -3,302
  -3,499
  -3,692
  -3,882
  -4,069
  -4,255
  -4,441
  -4,628
  -4,817
  -5,011
  -5,209
  -5,413
  -5,625
  -5,846
  -6,076
  -6,318
  -6,571
  -6,838
  -7,118
Cash from investing activities, $m
  -216
  -1,365
  -1,669
  -2,006
  -2,376
  -2,776
  -3,203
  -3,656
  -4,133
  -4,632
  -5,152
  -5,691
  -6,250
  -6,826
  -7,421
  -8,036
  -8,669
  -9,323
  -9,998
  -10,695
  -11,416
  -12,164
  -12,938
  -13,741
  -14,575
  -15,442
  -16,344
  -17,285
  -18,264
  -19,286
  -20,352
Free cash flow, $m
  -33
  -1,813
  -2,254
  -2,753
  -3,310
  -3,923
  -4,592
  -5,313
  -6,085
  -6,905
  -7,773
  -8,686
  -9,643
  -10,643
  -11,686
  -12,771
  -13,898
  -15,069
  -16,284
  -17,544
  -18,852
  -20,208
  -21,617
  -23,079
  -24,598
  -26,177
  -27,820
  -29,529
  -31,308
  -33,162
  -35,094
Issuance/(repayment) of debt, $m
  -45
  585
  695
  815
  939
  1,067
  1,196
  1,326
  1,455
  1,583
  1,708
  1,830
  1,949
  2,065
  2,179
  2,291
  2,401
  2,511
  2,621
  2,731
  2,843
  2,957
  3,074
  3,195
  3,320
  3,450
  3,586
  3,728
  3,878
  4,035
  4,201
Issuance/(repurchase) of shares, $m
  81
  1,393
  1,748
  2,160
  2,626
  3,147
  3,720
  4,347
  5,025
  5,753
  6,530
  7,354
  8,224
  9,140
  10,099
  11,102
  12,149
  13,240
  14,375
  15,555
  16,781
  18,055
  19,378
  20,753
  22,181
  23,665
  25,208
  26,813
  28,484
  30,223
  32,035
Cash from financing (excl. dividends), $m  
  36
  1,978
  2,443
  2,975
  3,565
  4,214
  4,916
  5,673
  6,480
  7,336
  8,238
  9,184
  10,173
  11,205
  12,278
  13,393
  14,550
  15,751
  16,996
  18,286
  19,624
  21,012
  22,452
  23,948
  25,501
  27,115
  28,794
  30,541
  32,362
  34,258
  36,236
Total cash flow (excl. dividends), $m
  2
  165
  189
  221
  255
  290
  325
  361
  396
  430
  464
  497
  530
  561
  592
  623
  653
  683
  712
  742
  773
  804
  836
  868
  902
  938
  975
  1,013
  1,054
  1,097
  1,142
Retained Cash Flow (-), $m
  322
  -1,393
  -1,748
  -2,160
  -2,626
  -3,147
  -3,720
  -4,347
  -5,025
  -5,753
  -6,530
  -7,354
  -8,224
  -9,140
  -10,099
  -11,102
  -12,149
  -13,240
  -14,375
  -15,555
  -16,781
  -18,055
  -19,378
  -20,753
  -22,181
  -23,665
  -25,208
  -26,813
  -28,484
  -30,223
  -32,035
Prev. year cash balance distribution, $m
 
  2
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -1,226
  -1,559
  -1,939
  -2,371
  -2,857
  -3,395
  -3,986
  -4,629
  -5,323
  -6,066
  -6,857
  -7,695
  -8,578
  -9,507
  -10,480
  -11,497
  -12,558
  -13,663
  -14,813
  -16,009
  -17,252
  -18,543
  -19,884
  -21,279
  -22,727
  -24,234
  -25,800
  -27,430
  -29,127
  -30,894
Discount rate, %
 
  9.50
  9.98
  10.47
  11.00
  11.55
  12.12
  12.73
  13.37
  14.04
  14.74
  15.47
  16.25
  17.06
  17.91
  18.81
  19.75
  20.74
  21.77
  22.86
  24.01
  25.21
  26.47
  27.79
  29.18
  30.64
  32.17
  33.78
  35.47
  37.24
  39.10
PV of cash for distribution, $m
 
  -1,120
  -1,289
  -1,438
  -1,562
  -1,654
  -1,709
  -1,723
  -1,697
  -1,632
  -1,534
  -1,409
  -1,263
  -1,107
  -947
  -790
  -643
  -510
  -394
  -296
  -217
  -154
  -106
  -71
  -46
  -28
  -17
  -10
  -6
  -3
  -2
Current shareholders' claim on cash, %
  100
  42.4
  18.4
  8.1
  3.6
  1.7
  0.8
  0.4
  0.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Baytex Energy Corp. (Baytex) is engaged in the business of acquiring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets in Canada (Alberta and Saskatchewan) and in the United States (Texas). The Company's crude oil and natural gas operations are organized into four business units: Lloydminster, Peace River, Conventional and United States. Each business unit has a portfolio of mineral leases, operated and non-operated properties and development prospects. The Company's subsidiaries include Baytex Energy Ltd. and Baytex Energy USA, Inc. Baytex Energy Ltd. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in Canada. Baytex Energy USA, Inc. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in the United States. It holds all of the operating assets in the United States.

FINANCIAL RATIOS  of  Baytex Energy (BTE)

Valuation Ratios
P/E Ratio -1.7
Price to Sales 1.4
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow 3.4
Price to Free Cash Flow 36.9
Growth Rates
Sales Growth Rate -31.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -57.1%
Cap. Spend. - 3 Yr. Gr. Rate -16.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 88.6%
Total Debt to Equity 88.6%
Interest Coverage -6
Management Effectiveness
Return On Assets -8.3%
Ret/ On Assets - 3 Yr. Avg. -66.2%
Return On Total Capital -12.1%
Ret/ On T. Cap. - 3 Yr. Avg. -14%
Return On Equity -22.1%
Return On Equity - 3 Yr. Avg. -25.2%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 59.9%
Gross Margin - 3 Yr. Avg. 66.8%
EBITDA Margin -24.2%
EBITDA Margin - 3 Yr. Avg. -22.2%
Operating Margin -113.7%
Oper. Margin - 3 Yr. Avg. -90.2%
Pre-Tax Margin -125.8%
Pre-Tax Margin - 3 Yr. Avg. -98.3%
Net Profit Margin -80.5%
Net Profit Margin - 3 Yr. Avg. -73%
Effective Tax Rate 36%
Eff/ Tax Rate - 3 Yr. Avg. 3319.7%
Payout Ratio 0%

BTE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BTE stock intrinsic value calculation we used $446 million for the last fiscal year's total revenue generated by Baytex Energy. The default revenue input number comes from 2016 income statement of Baytex Energy. 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 BTE 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 9.5%, whose default value for BTE is calculated based on our internal credit rating of Baytex Energy, 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 Baytex Energy.
    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 BTE stock the variable cost ratio is equal to 250.2%.

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 BTE 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 5.8% for Baytex Energy.

Corporate tax rate of 27% is the nominal tax rate for Baytex Energy. 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 BTE 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 BTE are equal to 736%.

Life of production assets of 8.7 years is the average useful life of capital assets used in Baytex Energy 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 BTE is equal to -6.1%. 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 - $1465 million for Baytex Energy - 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 234.633 million for Baytex Energy 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 Baytex Energy at the current share price and the inputted number of shares is $0.6 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Baytex to Present at CIBC Whistler Conference   [Jan-18-18 05:15PM  GlobeNewswire]
▶ 3 Stocks I'd Hate to Buy   [Dec-18-17 01:04PM  Motley Fool]
▶ Baytex Announces 2018 Budget and Board Succession   [Dec-07-17 06:30AM  GlobeNewswire]
▶ Oil Prices: Is Another Tumble in the Forecast?   [Nov-19-17 09:09AM  Motley Fool]
▶ Saudi Shake-Up Sent Oil Stocks Soaring Today   [Nov-06-17 04:37PM  Motley Fool]
▶ Baytex reports 3Q loss   [11:07AM  Associated Press]
▶ Will These Beaten-Down Oil Stocks Sink or Swim?   [Sep-12-17 10:10AM  Motley Fool]
▶ Baytex Provides Update on Impact of Hurricane Harvey   [Sep-11-17 05:00PM  GlobeNewswire]
▶ Baytex posts 2Q profit   [Aug-01-17 10:58PM  Associated Press]
▶ Can Baytex Energy Corp Weather Another Market Downturn?   [Jun-15-17 01:30PM  Motley Fool]
▶ International Moat Index: France Impacted Its Performance   [May-31-17 10:48AM  Market Realist]
▶ ETFs with exposure to Baytex Energy Corp. : May 22, 2017   [May-22-17 01:25PM  Capital Cube]
▶ ETFs with exposure to Baytex Energy Corp. : May 11, 2017   [May-11-17 04:17PM  Capital Cube]
▶ Baytex posts 1Q profit   [May-04-17 07:49PM  Associated Press]
▶ Baytex Q1 2017 Production Increases 6%   [04:30PM  GlobeNewswire]
▶ 4 Oil Stocks Id Avoid at All Costs   [Apr-29-17 05:00PM  Motley Fool]
▶ ETFs with exposure to Baytex Energy Corp. : April 5, 2017   [Apr-05-17 04:26PM  Capital Cube]
▶ Baytex Energy Files 2016 Year-End Disclosure Documents   [Mar-07-17 06:13PM  Marketwired]
▶ Baytex reports 4Q loss   [08:01AM  Associated Press]
▶ 2 Stocks to Avoid (and 1 to Buy)   [Feb-21-17 04:07PM  Motley Fool]
▶ Baytex to Present at CIBC Whistler Conference   [Jan-23-17 05:15PM  Marketwired]
▶ Baytex Announces Closing of Peace River Acquisition   [Jan-20-17 05:08PM  Marketwired]
▶ Was Baytex Energy Corp's Fantastic Run in 2016 Too Much?   [Jan-17-17 01:27PM  at Motley Fool]
▶ Is Baytex Energy Corp (USA) (BTE) Worthy of Your Portfolio?   [Dec-14-16 03:05AM  at Insider Monkey]
▶ Why Baytex Energy, Akorn, and Alamos Gold Jumped Today   [Dec-12-16 05:52PM  at Motley Fool]
▶ Why Canadian Oil Stocks Blasted Off Today   [Nov-30-16 04:08PM  at Motley Fool]
▶ Baytex Bets on Oil Recovery (BTE)   [Nov-29-16 08:45AM  at Investopedia]
▶ Is Wix.Com Ltd (WIX) A Good Stock to Buy?   [Nov-28-16 10:15AM  at Insider Monkey]
▶ Baytex Energy Corp. Goes Shopping   [Nov-23-16 04:48PM  at Motley Fool]
▶ Will Trump Be Good for Baytex Energy? (BTE)   [Nov-14-16 08:48AM  at Investopedia]
▶ Baytex Q3 Earnings Report: Hits and Misses (BTE)   [Nov-04-16 06:33PM  at Investopedia]
▶ Baytex Reports Q3 2016 Results   [07:30AM  Marketwired]
▶ These 3 Oil Stocks Aren't Out of the Woods Just Yet   [Oct-26-16 05:15PM  at Motley Fool]
▶ Baytex Blames Blast on Poor Regulator Standards (BTE)   [Oct-24-16 04:05PM  at Investopedia]
▶ Baytex Short Interest Surges in September (BTE)   [Oct-20-16 03:53PM  at Investopedia]
▶ How Bad Is Baytex Debt? (BTE)   [Oct-14-16 08:04AM  at Investopedia]
Financial statements of BTE
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