Intrinsic value of Bellatrix Exploration - BXE

Previous Close

$0.91

  Intrinsic Value

$3.10

stock screener

  Rating & Target

str. buy

+241%

Previous close

$0.91

 
Intrinsic value

$3.10

 
Up/down potential

+241%

 
Rating

str. buy

We calculate the intrinsic value of BXE 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 0.0

 

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, %
  59.70
  54.23
  49.31
  44.88
  40.89
  37.30
  34.07
  31.16
  28.55
  26.19
  24.07
  22.17
  20.45
  18.90
  17.51
  16.26
  15.14
  14.12
  13.21
  12.39
  11.65
  10.99
  10.39
  9.85
  9.36
  8.93
  8.53
  8.18
  7.86
  7.58
Revenue, $m
  378
  584
  872
  1,263
  1,779
  2,443
  3,275
  4,295
  5,521
  6,968
  8,645
  10,561
  12,721
  15,125
  17,774
  20,665
  23,793
  27,153
  30,740
  34,548
  38,573
  42,810
  47,257
  51,911
  56,771
  61,839
  67,116
  72,607
  78,316
  84,250
Variable operating expenses, $m
  365
  563
  841
  1,219
  1,717
  2,357
  3,160
  4,145
  5,328
  6,724
  8,342
  10,191
  12,275
  14,596
  17,152
  19,941
  22,960
  26,202
  29,664
  33,339
  37,223
  41,312
  45,603
  50,094
  54,784
  59,675
  64,767
  70,066
  75,575
  81,301
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
  365
  563
  841
  1,219
  1,717
  2,357
  3,160
  4,145
  5,328
  6,724
  8,342
  10,191
  12,275
  14,596
  17,152
  19,941
  22,960
  26,202
  29,664
  33,339
  37,223
  41,312
  45,603
  50,094
  54,784
  59,675
  64,767
  70,066
  75,575
  81,301
Operating income, $m
  13
  20
  31
  44
  62
  85
  115
  150
  193
  244
  303
  370
  445
  529
  622
  723
  833
  950
  1,076
  1,209
  1,350
  1,498
  1,654
  1,817
  1,987
  2,164
  2,349
  2,541
  2,741
  2,949
EBITDA, $m
  168
  259
  386
  560
  789
  1,083
  1,452
  1,904
  2,448
  3,089
  3,832
  4,682
  5,639
  6,705
  7,879
  9,161
  10,547
  12,037
  13,627
  15,315
  17,099
  18,978
  20,949
  23,012
  25,167
  27,413
  29,753
  32,187
  34,717
  37,348
Interest expense (income), $m
  0
  32
  59
  98
  153
  227
  325
  451
  609
  803
  1,036
  1,310
  1,629
  1,992
  2,403
  2,859
  3,362
  3,911
  4,505
  5,143
  5,824
  6,547
  7,311
  8,116
  8,960
  9,844
  10,767
  11,729
  12,731
  13,774
  14,858
Earnings before tax, $m
  -19
  -39
  -67
  -108
  -165
  -239
  -336
  -459
  -609
  -792
  -1,008
  -1,259
  -1,547
  -1,873
  -2,237
  -2,639
  -3,078
  -3,555
  -4,067
  -4,615
  -5,197
  -5,813
  -6,462
  -7,143
  -7,857
  -8,602
  -9,380
  -10,190
  -11,033
  -11,909
Tax expense, $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
Net income, $m
  -19
  -39
  -67
  -108
  -165
  -239
  -336
  -459
  -609
  -792
  -1,008
  -1,259
  -1,547
  -1,873
  -2,237
  -2,639
  -3,078
  -3,555
  -4,067
  -4,615
  -5,197
  -5,813
  -6,462
  -7,143
  -7,857
  -8,602
  -9,380
  -10,190
  -11,033
  -11,909

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
  1,682
  2,594
  3,874
  5,612
  7,907
  10,856
  14,554
  19,090
  24,539
  30,967
  38,421
  46,938
  56,536
  67,223
  78,997
  91,843
  105,745
  120,678
  136,620
  153,546
  171,435
  190,267
  210,030
  230,714
  252,316
  274,840
  298,295
  322,698
  348,071
  374,443
Adjusted assets (=assets-cash), $m
  1,682
  2,594
  3,874
  5,612
  7,907
  10,856
  14,554
  19,090
  24,539
  30,967
  38,421
  46,938
  56,536
  67,223
  78,997
  91,843
  105,745
  120,678
  136,620
  153,546
  171,435
  190,267
  210,030
  230,714
  252,316
  274,840
  298,295
  322,698
  348,071
  374,443
Revenue / Adjusted assets
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
Average production assets, $m
  1,545
  2,383
  3,559
  5,156
  7,264
  9,973
  13,371
  17,537
  22,544
  28,448
  35,297
  43,120
  51,938
  61,757
  72,572
  84,374
  97,145
  110,864
  125,510
  141,059
  157,493
  174,794
  192,949
  211,951
  231,796
  252,489
  274,037
  296,455
  319,764
  343,991
Working capital, $m
  -92
  -142
  -212
  -307
  -432
  -594
  -796
  -1,044
  -1,342
  -1,693
  -2,101
  -2,566
  -3,091
  -3,675
  -4,319
  -5,022
  -5,782
  -6,598
  -7,470
  -8,395
  -9,373
  -10,403
  -11,483
  -12,614
  -13,795
  -15,027
  -16,309
  -17,644
  -19,031
  -20,473
Total debt, $m
  584
  970
  1,511
  2,246
  3,217
  4,465
  6,029
  7,948
  10,253
  12,972
  16,125
  19,727
  23,787
  28,308
  33,288
  38,722
  44,603
  50,920
  57,663
  64,823
  72,390
  80,356
  88,715
  97,465
  106,602
  116,130
  126,052
  136,374
  147,107
  158,262
Total liabilities, $m
  712
  1,097
  1,639
  2,374
  3,345
  4,592
  6,157
  8,075
  10,380
  13,099
  16,252
  19,855
  23,915
  28,436
  33,416
  38,850
  44,730
  51,047
  57,790
  64,950
  72,517
  80,483
  88,843
  97,592
  106,730
  116,257
  126,179
  136,501
  147,234
  158,389
Total equity, $m
  971
  1,497
  2,235
  3,238
  4,562
  6,264
  8,398
  11,015
  14,159
  17,868
  22,169
  27,083
  32,621
  38,788
  45,581
  52,994
  61,015
  69,631
  78,830
  88,596
  98,918
  109,784
  121,187
  133,122
  145,586
  158,583
  172,116
  186,197
  200,837
  216,053
Total liabilities and equity, $m
  1,683
  2,594
  3,874
  5,612
  7,907
  10,856
  14,555
  19,090
  24,539
  30,967
  38,421
  46,938
  56,536
  67,224
  78,997
  91,844
  105,745
  120,678
  136,620
  153,546
  171,435
  190,267
  210,030
  230,714
  252,316
  274,840
  298,295
  322,698
  348,071
  374,442
Debt-to-equity ratio
  0.600
  0.650
  0.680
  0.690
  0.710
  0.710
  0.720
  0.720
  0.720
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
  0.730
Adjusted equity ratio
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577
  0.577

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -19
  -39
  -67
  -108
  -165
  -239
  -336
  -459
  -609
  -792
  -1,008
  -1,259
  -1,547
  -1,873
  -2,237
  -2,639
  -3,078
  -3,555
  -4,067
  -4,615
  -5,197
  -5,813
  -6,462
  -7,143
  -7,857
  -8,602
  -9,380
  -10,190
  -11,033
  -11,909
Depreciation, amort., depletion, $m
  155
  238
  356
  516
  726
  997
  1,337
  1,754
  2,254
  2,845
  3,530
  4,312
  5,194
  6,176
  7,257
  8,437
  9,715
  11,086
  12,551
  14,106
  15,749
  17,479
  19,295
  21,195
  23,180
  25,249
  27,404
  29,645
  31,976
  34,399
Funds from operations, $m
  136
  200
  288
  407
  562
  758
  1,001
  1,295
  1,645
  2,053
  2,522
  3,053
  3,647
  4,303
  5,020
  5,799
  6,636
  7,532
  8,484
  9,491
  10,552
  11,666
  12,833
  14,052
  15,323
  16,646
  18,024
  19,456
  20,944
  22,490
Change in working capital, $m
  -34
  -50
  -70
  -95
  -125
  -161
  -202
  -248
  -298
  -351
  -408
  -466
  -525
  -584
  -644
  -702
  -760
  -817
  -872
  -925
  -978
  -1,030
  -1,081
  -1,131
  -1,181
  -1,232
  -1,282
  -1,334
  -1,387
  -1,442
Cash from operations, $m
  170
  250
  358
  502
  687
  919
  1,203
  1,543
  1,943
  2,405
  2,930
  3,519
  4,171
  4,887
  5,664
  6,501
  7,396
  8,348
  9,356
  10,417
  11,530
  12,696
  13,914
  15,183
  16,504
  17,878
  19,306
  20,790
  22,331
  23,932
Maintenance CAPEX, $m
  -97
  -155
  -238
  -356
  -516
  -726
  -997
  -1,337
  -1,754
  -2,254
  -2,845
  -3,530
  -4,312
  -5,194
  -6,176
  -7,257
  -8,437
  -9,715
  -11,086
  -12,551
  -14,106
  -15,749
  -17,479
  -19,295
  -21,195
  -23,180
  -25,249
  -27,404
  -29,645
  -31,976
New CAPEX, $m
  -577
  -838
  -1,175
  -1,597
  -2,108
  -2,709
  -3,398
  -4,167
  -5,006
  -5,905
  -6,848
  -7,824
  -8,818
  -9,818
  -10,816
  -11,802
  -12,771
  -13,719
  -14,645
  -15,550
  -16,434
  -17,301
  -18,155
  -19,002
  -19,845
  -20,692
  -21,548
  -22,418
  -23,309
  -24,227
Cash from investing activities, $m
  -674
  -993
  -1,413
  -1,953
  -2,624
  -3,435
  -4,395
  -5,504
  -6,760
  -8,159
  -9,693
  -11,354
  -13,130
  -15,012
  -16,992
  -19,059
  -21,208
  -23,434
  -25,731
  -28,101
  -30,540
  -33,050
  -35,634
  -38,297
  -41,040
  -43,872
  -46,797
  -49,822
  -52,954
  -56,203
Free cash flow, $m
  -504
  -743
  -1,055
  -1,451
  -1,936
  -2,517
  -3,192
  -3,961
  -4,817
  -5,754
  -6,763
  -7,835
  -8,958
  -10,125
  -11,328
  -12,558
  -13,812
  -15,085
  -16,376
  -17,684
  -19,009
  -20,354
  -21,721
  -23,114
  -24,537
  -25,994
  -27,491
  -29,032
  -30,624
  -32,271
Issuance/(repayment) of debt, $m
  266
  386
  541
  735
  971
  1,247
  1,564
  1,919
  2,305
  2,719
  3,153
  3,602
  4,060
  4,521
  4,980
  5,434
  5,880
  6,317
  6,743
  7,160
  7,567
  7,966
  8,360
  8,749
  9,138
  9,528
  9,922
  10,322
  10,733
  11,155
Issuance/(repurchase) of shares, $m
  381
  565
  806
  1,111
  1,489
  1,941
  2,470
  3,076
  3,754
  4,500
  5,309
  6,173
  7,085
  8,040
  9,030
  10,051
  11,099
  12,171
  13,265
  14,381
  15,519
  16,679
  17,865
  19,078
  20,321
  21,599
  22,914
  24,270
  25,673
  27,125
Cash from financing (excl. dividends), $m  
  647
  951
  1,347
  1,846
  2,460
  3,188
  4,034
  4,995
  6,059
  7,219
  8,462
  9,775
  11,145
  12,561
  14,010
  15,485
  16,979
  18,488
  20,008
  21,541
  23,086
  24,645
  26,225
  27,827
  29,459
  31,127
  32,836
  34,592
  36,406
  38,280
Total cash flow (excl. dividends), $m
  144
  208
  291
  396
  523
  672
  843
  1,034
  1,242
  1,465
  1,699
  1,941
  2,187
  2,435
  2,683
  2,927
  3,168
  3,403
  3,633
  3,857
  4,076
  4,291
  4,503
  4,713
  4,922
  5,132
  5,345
  5,561
  5,782
  6,009
Retained Cash Flow (-), $m
  -381
  -565
  -806
  -1,111
  -1,489
  -1,941
  -2,470
  -3,076
  -3,754
  -4,500
  -5,309
  -6,173
  -7,085
  -8,040
  -9,030
  -10,051
  -11,099
  -12,171
  -13,265
  -14,381
  -15,519
  -16,679
  -17,865
  -19,078
  -20,321
  -21,599
  -22,914
  -24,270
  -25,673
  -27,125
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
  1
  1
  2
  3
  4
  5
  7
  9
  11
  14
  17
  21
  25
  30
  36
  41
  48
  54
  61
  69
  77
  86
  95
  104
  114
  124
  134
  145
  157
Cash available for distribution, $m
  -237
  -357
  -514
  -715
  -966
  -1,269
  -1,628
  -2,042
  -2,512
  -3,036
  -3,610
  -4,232
  -4,898
  -5,604
  -6,347
  -7,124
  -7,932
  -8,768
  -9,633
  -10,524
  -11,443
  -12,388
  -13,362
  -14,365
  -15,399
  -16,466
  -17,569
  -18,710
  -19,891
  -21,116
Discount rate, %
  7.00
  7.35
  7.72
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.86
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.70
  24.89
  26.13
  27.44
  28.81
PV of cash for distribution, $m
  -222
  -310
  -411
  -524
  -642
  -759
  -869
  -963
  -1,036
  -1,083
  -1,101
  -1,090
  -1,051
  -988
  -906
  -810
  -707
  -602
  -500
  -405
  -320
  -246
  -184
  -134
  -95
  -65
  -44
  -28
  -18
  -11
Current shareholders' claim on cash, %
  52.7
  28.8
  16.3
  9.5
  5.7
  3.6
  2.3
  1.5
  1.0
  0.7
  0.5
  0.3
  0.3
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Bellatrix Exploration Ltd. is an oil and gas exploration company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. The Company's properties include Ferrier, Willesden Green, Greater Pembina, Strachan and Harmattan. Ferrier is located over 30 kilometers northwest of Rocky Mountain House, Alberta. The Ferrier and Alder Flats areas produce natural gas and natural gas liquids from the Belly River, Cardium, Notikewin, Falher and Rock Creek zones at depths ranging from 1,800 to 2,700 meters. The Willesden Green area is located approximately 40 kilometers north of Rocky Mountain House, Alberta. Pembina is located over 20 kilometers west of Drayton Valley, Alberta. Strachan is located approximately 10 kilometers south of Rocky Mountain House, Alberta. Harmattan is located approximately 80 kilometers northwest of Calgary near the town of Sundre, Alberta.

FINANCIAL RATIOS  of  Bellatrix Exploration (BXE)

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%

BXE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BXE stock intrinsic value calculation we used $237 million for the last fiscal year's total revenue generated by Bellatrix Exploration. The default revenue input number comes from 2017 income statement of Bellatrix Exploration. 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 BXE stock valuation model: a) initial revenue growth rate of 59.7% 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 7%, whose default value for BXE is calculated based on our internal credit rating of Bellatrix Exploration, 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 Bellatrix Exploration.
    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 BXE stock the variable cost ratio is equal to 96.5%.

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 BXE 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 10.1% for Bellatrix Exploration.

Corporate tax rate of 27% is the nominal tax rate for Bellatrix Exploration. 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 BXE stock is equal to 0.2%.

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 BXE are equal to 408.3%.

Life of production assets of 10 years is the average useful life of capital assets used in Bellatrix Exploration 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 BXE is equal to -24.3%. 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 - $608 million for Bellatrix Exploration - 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 49 million for Bellatrix Exploration 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 Bellatrix Exploration at the current share price and the inputted number of shares is $0.0 billion.

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COMPANY NEWS

▶ Top 3 Oil and Gas Penny Stocks for 2018   [06:00AM  Investopedia]
▶ Is It Too Late To Buy Bellatrix Exploration Ltd (TSE:BXE)?   [Mar-20-18 01:42PM  Simply Wall St.]
▶ Bellatrix reports 3Q loss   [Nov-09-17 10:34AM  Associated Press]
▶ Bellatrix reports 2Q loss   [Aug-10-17 08:40PM  Associated Press]
▶ Bellatrix Announces $34.5 Million Non-core Asset Sale   [Jun-14-17 07:30AM  PR Newswire]
▶ Bellatrix Announces CFO Succession   [Jun-06-17 07:30AM  PR Newswire]
▶ Bellatrix Announces CFO Succession   [07:30AM  CNW Group]
▶ Bellatrix posts 1Q profit   [05:02AM  Associated Press]
▶ New Strong Buy Stocks for April 5th   [Apr-05-17 08:52AM  Zacks]
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