Intrinsic value of Cloud Peak Energy - CLD

Previous Close

$4.33

  Intrinsic Value

$3.16

stock screener

  Rating & Target

sell

-27%

Previous close

$4.33

 
Intrinsic value

$3.16

 
Up/down potential

-27%

 
Rating

sell

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

We calculate the intrinsic value of CLD 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 2016), $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 0.3

 

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, %
  -28.83
  31.60
  28.94
  26.55
  24.39
  22.45
  20.71
  19.14
  17.72
  16.45
  15.31
  14.27
  13.35
  12.51
  11.76
  11.09
  10.48
  9.93
  9.44
  8.99
  8.59
  8.23
  7.91
  7.62
  7.36
  7.12
  6.91
  6.72
  6.55
  6.39
  6.25
Revenue, $m
  800
  1,053
  1,357
  1,718
  2,137
  2,617
  3,158
  3,763
  4,430
  5,158
  5,948
  6,797
  7,704
  8,668
  9,688
  10,762
  11,889
  13,070
  14,303
  15,589
  16,929
  18,323
  19,772
  21,278
  22,844
  24,471
  26,162
  27,919
  29,747
  31,649
  33,628
Variable operating expenses, $m
 
  1,130
  1,456
  1,843
  2,292
  2,807
  3,388
  4,037
  4,752
  5,534
  6,381
  7,291
  8,265
  9,299
  10,393
  11,545
  12,754
  14,020
  15,343
  16,723
  18,160
  19,655
  21,210
  22,826
  24,506
  26,251
  28,065
  29,951
  31,911
  33,951
  36,074
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
  733
  1,130
  1,456
  1,843
  2,292
  2,807
  3,388
  4,037
  4,752
  5,534
  6,381
  7,291
  8,265
  9,299
  10,393
  11,545
  12,754
  14,020
  15,343
  16,723
  18,160
  19,655
  21,210
  22,826
  24,506
  26,251
  28,065
  29,951
  31,911
  33,951
  36,074
Operating income, $m
  67
  -77
  -99
  -125
  -156
  -191
  -230
  -274
  -322
  -375
  -433
  -494
  -560
  -631
  -705
  -783
  -865
  -951
  -1,041
  -1,134
  -1,232
  -1,333
  -1,438
  -1,548
  -1,662
  -1,780
  -1,903
  -2,031
  -2,164
  -2,302
  -2,446
EBITDA, $m
  94
  -13
  -16
  -20
  -25
  -31
  -38
  -45
  -53
  -61
  -71
  -81
  -92
  -103
  -115
  -128
  -142
  -156
  -170
  -186
  -202
  -218
  -236
  -254
  -272
  -292
  -312
  -333
  -354
  -377
  -401
Interest expense (income), $m
  40
  39
  60
  84
  112
  145
  184
  226
  274
  327
  385
  448
  515
  587
  663
  744
  829
  919
  1,012
  1,110
  1,212
  1,318
  1,429
  1,543
  1,663
  1,787
  1,916
  2,050
  2,189
  2,334
  2,485
Earnings before tax, $m
  19
  -116
  -159
  -209
  -268
  -336
  -413
  -500
  -597
  -703
  -818
  -942
  -1,075
  -1,217
  -1,368
  -1,527
  -1,694
  -1,869
  -2,053
  -2,244
  -2,443
  -2,651
  -2,867
  -3,091
  -3,325
  -3,567
  -3,819
  -4,081
  -4,353
  -4,637
  -4,931
Tax expense, $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
Net income, $m
  22
  -116
  -159
  -209
  -268
  -336
  -413
  -500
  -597
  -703
  -818
  -942
  -1,075
  -1,217
  -1,368
  -1,527
  -1,694
  -1,869
  -2,053
  -2,244
  -2,443
  -2,651
  -2,867
  -3,091
  -3,325
  -3,567
  -3,819
  -4,081
  -4,353
  -4,637
  -4,931

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  84
  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
  1,715
  2,149
  2,770
  3,506
  4,361
  5,340
  6,446
  7,679
  9,040
  10,527
  12,139
  13,871
  15,723
  17,690
  19,771
  21,963
  24,263
  26,673
  29,189
  31,814
  34,548
  37,393
  40,351
  43,425
  46,620
  49,941
  53,391
  56,979
  60,709
  64,589
  68,628
Adjusted assets (=assets-cash), $m
  1,631
  2,149
  2,770
  3,506
  4,361
  5,340
  6,446
  7,679
  9,040
  10,527
  12,139
  13,871
  15,723
  17,690
  19,771
  21,963
  24,263
  26,673
  29,189
  31,814
  34,548
  37,393
  40,351
  43,425
  46,620
  49,941
  53,391
  56,979
  60,709
  64,589
  68,628
Revenue / Adjusted assets
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
  0.490
Average production assets, $m
  1,460
  1,921
  2,477
  3,135
  3,900
  4,775
  5,764
  6,867
  8,084
  9,414
  10,855
  12,405
  14,060
  15,820
  17,680
  19,640
  21,698
  23,852
  26,103
  28,450
  30,895
  33,439
  36,084
  38,833
  41,690
  44,659
  47,745
  50,953
  54,289
  57,759
  61,371
Working capital, $m
  96
  16
  20
  26
  32
  39
  47
  56
  66
  77
  89
  102
  116
  130
  145
  161
  178
  196
  215
  234
  254
  275
  297
  319
  343
  367
  392
  419
  446
  475
  504
Total debt, $m
  475
  718
  1,009
  1,353
  1,753
  2,211
  2,729
  3,306
  3,943
  4,639
  5,393
  6,204
  7,070
  7,991
  8,965
  9,990
  11,067
  12,195
  13,373
  14,601
  15,881
  17,212
  18,596
  20,035
  21,530
  23,084
  24,699
  26,378
  28,124
  29,940
  31,830
Total liabilities, $m
  763
  1,006
  1,297
  1,641
  2,041
  2,499
  3,017
  3,594
  4,231
  4,927
  5,681
  6,492
  7,358
  8,279
  9,253
  10,278
  11,355
  12,483
  13,661
  14,889
  16,169
  17,500
  18,884
  20,323
  21,818
  23,372
  24,987
  26,666
  28,412
  30,228
  32,118
Total equity, $m
  952
  1,143
  1,474
  1,865
  2,320
  2,841
  3,429
  4,085
  4,809
  5,601
  6,458
  7,380
  8,365
  9,411
  10,518
  11,684
  12,908
  14,190
  15,529
  16,925
  18,380
  19,893
  21,467
  23,102
  24,802
  26,568
  28,404
  30,313
  32,297
  34,362
  36,510
Total liabilities and equity, $m
  1,715
  2,149
  2,771
  3,506
  4,361
  5,340
  6,446
  7,679
  9,040
  10,528
  12,139
  13,872
  15,723
  17,690
  19,771
  21,962
  24,263
  26,673
  29,190
  31,814
  34,549
  37,393
  40,351
  43,425
  46,620
  49,940
  53,391
  56,979
  60,709
  64,590
  68,628
Debt-to-equity ratio
  0.499
  0.630
  0.680
  0.730
  0.760
  0.780
  0.800
  0.810
  0.820
  0.830
  0.840
  0.840
  0.850
  0.850
  0.850
  0.860
  0.860
  0.860
  0.860
  0.860
  0.860
  0.870
  0.870
  0.870
  0.870
  0.870
  0.870
  0.870
  0.870
  0.870
  0.870
Adjusted equity ratio
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532
  0.532

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  22
  -116
  -159
  -209
  -268
  -336
  -413
  -500
  -597
  -703
  -818
  -942
  -1,075
  -1,217
  -1,368
  -1,527
  -1,694
  -1,869
  -2,053
  -2,244
  -2,443
  -2,651
  -2,867
  -3,091
  -3,325
  -3,567
  -3,819
  -4,081
  -4,353
  -4,637
  -4,931
Depreciation, amort., depletion, $m
  27
  64
  83
  105
  130
  159
  192
  229
  270
  314
  362
  413
  469
  527
  589
  655
  723
  795
  870
  948
  1,030
  1,115
  1,203
  1,294
  1,390
  1,489
  1,592
  1,698
  1,810
  1,925
  2,046
Funds from operations, $m
  23
  -52
  -76
  -104
  -138
  -177
  -221
  -271
  -327
  -389
  -456
  -529
  -607
  -690
  -779
  -872
  -971
  -1,074
  -1,183
  -1,296
  -1,414
  -1,536
  -1,664
  -1,797
  -1,935
  -2,079
  -2,228
  -2,383
  -2,544
  -2,711
  -2,886
Change in working capital, $m
  -26
  4
  5
  5
  6
  7
  8
  9
  10
  11
  12
  13
  14
  14
  15
  16
  17
  18
  18
  19
  20
  21
  22
  23
  23
  24
  25
  26
  27
  29
  30
Cash from operations, $m
  49
  -56
  -80
  -110
  -144
  -184
  -229
  -280
  -337
  -400
  -468
  -541
  -620
  -705
  -794
  -888
  -988
  -1,092
  -1,201
  -1,315
  -1,434
  -1,557
  -1,686
  -1,820
  -1,959
  -2,103
  -2,253
  -2,409
  -2,571
  -2,740
  -2,915
Maintenance CAPEX, $m
  0
  -49
  -64
  -83
  -105
  -130
  -159
  -192
  -229
  -269
  -314
  -362
  -413
  -469
  -527
  -589
  -655
  -723
  -795
  -870
  -948
  -1,030
  -1,115
  -1,203
  -1,294
  -1,390
  -1,489
  -1,592
  -1,698
  -1,810
  -1,925
New CAPEX, $m
  -34
  -461
  -556
  -658
  -765
  -876
  -989
  -1,103
  -1,217
  -1,330
  -1,441
  -1,550
  -1,656
  -1,759
  -1,861
  -1,960
  -2,058
  -2,154
  -2,251
  -2,347
  -2,445
  -2,544
  -2,645
  -2,749
  -2,857
  -2,969
  -3,086
  -3,208
  -3,336
  -3,470
  -3,612
Cash from investing activities, $m
  -25
  -510
  -620
  -741
  -870
  -1,006
  -1,148
  -1,295
  -1,446
  -1,599
  -1,755
  -1,912
  -2,069
  -2,228
  -2,388
  -2,549
  -2,713
  -2,877
  -3,046
  -3,217
  -3,393
  -3,574
  -3,760
  -3,952
  -4,151
  -4,359
  -4,575
  -4,800
  -5,034
  -5,280
  -5,537
Free cash flow, $m
  24
  -566
  -700
  -850
  -1,013
  -1,189
  -1,377
  -1,576
  -1,783
  -1,999
  -2,222
  -2,453
  -2,689
  -2,933
  -3,182
  -3,438
  -3,700
  -3,970
  -4,247
  -4,532
  -4,827
  -5,131
  -5,446
  -5,772
  -6,110
  -6,462
  -6,828
  -7,208
  -7,605
  -8,020
  -8,452
Issuance/(repayment) of debt, $m
  -23
  243
  291
  344
  400
  458
  517
  577
  637
  696
  754
  811
  866
  921
  974
  1,026
  1,077
  1,127
  1,178
  1,228
  1,279
  1,331
  1,384
  1,439
  1,495
  1,554
  1,615
  1,679
  1,746
  1,816
  1,890
Issuance/(repurchase) of shares, $m
  0
  391
  489
  600
  723
  857
  1,002
  1,157
  1,321
  1,494
  1,675
  1,864
  2,060
  2,264
  2,475
  2,693
  2,918
  3,151
  3,392
  3,640
  3,898
  4,164
  4,441
  4,727
  5,025
  5,334
  5,655
  5,990
  6,338
  6,701
  7,080
Cash from financing (excl. dividends), $m  
  -29
  634
  780
  944
  1,123
  1,315
  1,519
  1,734
  1,958
  2,190
  2,429
  2,675
  2,926
  3,185
  3,449
  3,719
  3,995
  4,278
  4,570
  4,868
  5,177
  5,495
  5,825
  6,166
  6,520
  6,888
  7,270
  7,669
  8,084
  8,517
  8,970
Total cash flow (excl. dividends), $m
  -6
  68
  80
  94
  110
  126
  142
  158
  175
  191
  207
  222
  237
  252
  267
  281
  295
  309
  323
  337
  351
  365
  379
  394
  410
  426
  442
  460
  478
  498
  518
Retained Cash Flow (-), $m
  -64
  -391
  -489
  -600
  -723
  -857
  -1,002
  -1,157
  -1,321
  -1,494
  -1,675
  -1,864
  -2,060
  -2,264
  -2,475
  -2,693
  -2,918
  -3,151
  -3,392
  -3,640
  -3,898
  -4,164
  -4,441
  -4,727
  -5,025
  -5,334
  -5,655
  -5,990
  -6,338
  -6,701
  -7,080
Prev. year cash balance distribution, $m
 
  84
  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
 
  -239
  -409
  -506
  -613
  -731
  -860
  -998
  -1,146
  -1,303
  -1,468
  -1,642
  -1,823
  -2,012
  -2,208
  -2,412
  -2,623
  -2,842
  -3,069
  -3,304
  -3,547
  -3,800
  -4,061
  -4,333
  -4,615
  -4,908
  -5,213
  -5,530
  -5,860
  -6,204
  -6,562
Discount rate, %
 
  6.40
  6.72
  7.06
  7.41
  7.78
  8.17
  8.58
  9.01
  9.46
  9.93
  10.42
  10.95
  11.49
  12.07
  12.67
  13.31
  13.97
  14.67
  15.40
  16.17
  16.98
  17.83
  18.72
  19.66
  20.64
  21.67
  22.76
  23.89
  25.09
  26.34
PV of cash for distribution, $m
 
  -225
  -359
  -412
  -461
  -503
  -537
  -561
  -575
  -578
  -570
  -552
  -524
  -489
  -448
  -403
  -356
  -308
  -261
  -217
  -177
  -141
  -110
  -84
  -62
  -45
  -32
  -22
  -15
  -9
  -6
Current shareholders' claim on cash, %
  100
  60.8
  37.7
  23.9
  15.4
  10.1
  6.7
  4.5
  3.1
  2.1
  1.5
  1.1
  0.8
  0.5
  0.4
  0.3
  0.2
  0.2
  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

Cloud Peak Energy Inc. is a producer of coal in the United States of America and the Powder River Basin (PRB). In the PRB, the Company owns and operates three surface coal mines: the Antelope Mine, the Cordero Rojo Mine and the Spring Creek Mine. Its segments include Owned and Operated Mines, and Logistics and Related Activities. Its Owned and Operated Mines segment includes its Antelope Mine, Cordero Rojo Mine, and Spring Creek Mine. The Logistics and Related Activities segment includes the services it provides to its international and certain of its domestic customers where it delivers coal to the customer at a terminal or the customer's plant or other delivery point, remote from its mine site. As of December 31, 2016, the Company also operated two development projects, both located in the Northern PRB: Youngs Creek Project and Big Metal Project. The Company's Antelope Mine and Cordero Rojo Mine are located in Wyoming and its Spring Creek Mine is located in Montana.

FINANCIAL RATIOS  of  Cloud Peak Energy (CLD)

Valuation Ratios
P/E Ratio 12.1
Price to Sales 0.3
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow 5.4
Price to Free Cash Flow 17.7
Growth Rates
Sales Growth Rate -28.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -10.5%
Cap. Spend. - 3 Yr. Gr. Rate -6.3%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 49.9%
Total Debt to Equity 49.9%
Interest Coverage 1
Management Effectiveness
Return On Assets 3.8%
Ret/ On Assets - 3 Yr. Avg. 0.7%
Return On Total Capital 1.6%
Ret/ On T. Cap. - 3 Yr. Avg. -2.4%
Return On Equity 2.4%
Return On Equity - 3 Yr. Avg. -3.6%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 19.3%
Gross Margin - 3 Yr. Avg. 17.4%
EBITDA Margin 10.8%
EBITDA Margin - 3 Yr. Avg. 10%
Operating Margin 8.4%
Oper. Margin - 3 Yr. Avg. 3.7%
Pre-Tax Margin 2.4%
Pre-Tax Margin - 3 Yr. Avg. -0.2%
Net Profit Margin 2.8%
Net Profit Margin - 3 Yr. Avg. -3.2%
Effective Tax Rate -10.5%
Eff/ Tax Rate - 3 Yr. Avg. -13.1%
Payout Ratio 0%

CLD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CLD stock intrinsic value calculation we used $800 million for the last fiscal year's total revenue generated by Cloud Peak Energy. The default revenue input number comes from 2016 income statement of Cloud Peak 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 CLD stock valuation model: a) initial revenue growth rate of 31.6% 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 6.4%, whose default value for CLD is calculated based on our internal credit rating of Cloud Peak 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 Cloud Peak 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 CLD stock the variable cost ratio is equal to 107.3%.

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 CLD 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 8.3% for Cloud Peak Energy.

Corporate tax rate of 27% is the nominal tax rate for Cloud Peak 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 CLD 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 CLD are equal to 182.5%.

Life of production assets of 54.1 years is the average useful life of capital assets used in Cloud Peak 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 CLD is equal to 1.5%. 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 - $952 million for Cloud Peak 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 75.14 million for Cloud Peak 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 Cloud Peak Energy at the current share price and the inputted number of shares is $0.3 billion.

RELATED COMPANIES Price Int.Val. Rating
CNX Consol Energy 14.59 4.13  str.sell
ARLP Alliance Resou 18.25 19.59  hold

COMPANY NEWS

▶ Top 4 Coal-Mining Stocks as of December 2017   [Dec-11-17 04:30PM  Investopedia]
▶ Why Coal Production Declined in Week Ended November 25   [Dec-07-17 07:33AM  Market Realist]
▶ Are Coal Miners Impacted by Volatility in Crude Oil Prices?   [Dec-06-17 04:35PM  Market Realist]
▶ Coal Production Rises Marginally in Week Ended November 18   [Nov-29-17 03:00PM  Market Realist]
▶ Coal Production Falls in the Week Ended November 10   [Nov-22-17 01:46PM  Market Realist]
▶ Coal Production Rebounded in Week Ended November 4   [Nov-16-17 10:31AM  Market Realist]
▶ Natural Gas Prices Rose in the Wake of Winter   [07:33AM  Market Realist]
▶ How Natural Gas Inventories Are Affecting Coal   [Nov-15-17 05:39PM  Market Realist]
▶ 5 Breakout Stocks Offering Admirable Returns   [Nov-14-17 09:16AM  Zacks]
▶ Top 4 Coal-Mining Stocks as of November 2017   [Nov-10-17 10:24AM  Investopedia]
▶ Coal Production Fell during the Week Ending October 28   [Nov-09-17 07:32AM  Market Realist]
▶ Winter Is Coming: How Will Natural Gas Prices React?   [Nov-08-17 02:55PM  Market Realist]
▶ How Arch Coals Leverage and Liquidity Compare   [09:02AM  Market Realist]
▶ Could Arch Coals Margins Improve in 3Q17?   [07:33AM  Market Realist]
▶ What to Expect for Arch Coals 3Q17 Earnings   [Oct-30-17 12:45PM  Market Realist]
▶ Cloud Peak tops 3Q profit forecasts   [Oct-26-17 06:27PM  Associated Press]
▶ Coal Production Fell Marginally Last Week   [09:10AM  Market Realist]
▶ Natural Gas Inventory Falls below 5-Year Average   [Oct-25-17 03:40PM  Market Realist]
▶ Coal Prices Remained Steady in the Week Ended October 13   [Oct-19-17 09:08AM  Market Realist]
▶ PRB Coal Price Rose in the Week Ended October 6   [Oct-13-17 09:06AM  Market Realist]
▶ Appalachian Coal Price Rose in the Last Week of September   [Oct-05-17 09:09AM  Market Realist]
▶ Coal Production Tumbles Week-after-Week   [07:41AM  Market Realist]
▶ How Crude Oil Indirectly Impacts Coal Prices   [Oct-04-17 04:06PM  Market Realist]
▶ Is Weather Affecting Natural Gas Prices?   [02:37PM  Market Realist]
▶ What Happened to Coal Prices as of September 22?   [Sep-29-17 07:40AM  Market Realist]
▶ Why Did Coal Production Fall Consecutively in September?   [Sep-28-17 10:41AM  Market Realist]
▶ What Is Cloud Peak Energy Incs (CLD) Share Price Doing?   [Sep-21-17 05:45PM  Simply Wall St.]
▶ Coal Production Fell Week-Over-Week   [07:38AM  Market Realist]
▶ How Coal Miners Are Affected by Higher Crude Oil Prices   [Sep-20-17 11:06AM  Market Realist]
▶ Coal Production Fell in Week Ended September 2   [Sep-13-17 07:39AM  Market Realist]
▶ Could Higher Crude Oil Prices Impact Coal Miners?   [Sep-12-17 03:06PM  Market Realist]
▶ [$$] Top Coal Stocks: Peabody, Arch   [Sep-07-17 03:28PM  Barrons.com]
▶ What to Expect in 2H17 for Westmoreland Coal   [Aug-18-17 07:37AM  Market Realist]
▶ Westmoreland Coal Posts Net Losses in 2Q17   [Aug-17-17 09:06AM  Market Realist]
▶ Why Westmoreland Coals Shipments Fell in 2Q17   [09:08AM  Market Realist]
▶ Whats Driving Rio Tintos Energy and Minerals Division?   [Aug-11-17 10:38AM  Market Realist]
▶ Cloud Peak Energy Hosts EPA Administrator Pruitt   [Aug-04-17 01:37PM  Business Wire]
▶ Whats to Come for Cloud Peak Energy   [09:07AM  Market Realist]
▶ Cloud Peak Energys Cash Margin Improves in 2Q17   [Aug-03-17 10:37AM  Market Realist]
▶ Cloud Peak Energys Shipments Improve In 2Q17   [07:39AM  Market Realist]
▶ How Cloud Peak Stock Reacted to 2Q17 Earnings Results   [Aug-02-17 05:22PM  Market Realist]
▶ The ultimate contrarian investment awaits: coal stocks   [Jul-29-17 08:04AM  MarketWatch]
▶ Cloud Peak reports 2Q loss   [Jul-27-17 09:53PM  Associated Press]
▶ The Best Stock in Wyoming: Cloud Peak Energy   [Jul-21-17 01:20PM  Kiplinger]
▶ Analysts Expect Cloud Peak Energys Revenue to Rise in 2Q17   [Jul-19-17 10:38AM  Market Realist]
Financial statements of CLD
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.