Intrinsic value of Continental Resources, Inc. - CLR

Previous Close

$42.46

  Intrinsic Value

$45.47

stock screener

  Rating & Target

hold

+7%

Previous close

$42.46

 
Intrinsic value

$45.47

 
Up/down potential

+7%

 
Rating

hold

We calculate the intrinsic value of CLR 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 16.0

 

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, %
  9.80
  9.32
  8.89
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
Revenue, $m
  5,172
  5,654
  6,156
  6,679
  7,224
  7,790
  8,378
  8,989
  9,624
  10,284
  10,971
  11,684
  12,427
  13,200
  14,005
  14,844
  15,718
  16,629
  17,581
  18,574
  19,611
  20,694
  21,827
  23,011
  24,250
  25,546
  26,902
  28,323
  29,810
  31,368
Variable operating expenses, $m
  1,448
  1,583
  1,724
  1,870
  2,023
  2,181
  2,346
  2,517
  2,695
  2,880
  3,072
  3,272
  3,480
  3,696
  3,921
  4,156
  4,401
  4,656
  4,923
  5,201
  5,491
  5,794
  6,112
  6,443
  6,790
  7,153
  7,533
  7,930
  8,347
  8,783
Fixed operating expenses, $m
  1,878
  1,920
  1,962
  2,005
  2,049
  2,094
  2,140
  2,188
  2,236
  2,285
  2,335
  2,386
  2,439
  2,493
  2,547
  2,604
  2,661
  2,719
  2,779
  2,840
  2,903
  2,967
  3,032
  3,099
  3,167
  3,236
  3,308
  3,380
  3,455
  3,531
Total operating expenses, $m
  3,326
  3,503
  3,686
  3,875
  4,072
  4,275
  4,486
  4,705
  4,931
  5,165
  5,407
  5,658
  5,919
  6,189
  6,468
  6,760
  7,062
  7,375
  7,702
  8,041
  8,394
  8,761
  9,144
  9,542
  9,957
  10,389
  10,841
  11,310
  11,802
  12,314
Operating income, $m
  1,845
  2,151
  2,470
  2,804
  3,152
  3,514
  3,892
  4,284
  4,694
  5,120
  5,564
  6,026
  6,508
  7,011
  7,536
  8,084
  8,656
  9,254
  9,879
  10,533
  11,217
  11,933
  12,684
  13,469
  14,293
  15,157
  16,062
  17,012
  18,008
  19,054
EBITDA, $m
  3,889
  4,385
  4,903
  5,443
  6,006
  6,592
  7,202
  7,836
  8,497
  9,184
  9,899
  10,643
  11,419
  12,227
  13,070
  13,949
  14,867
  15,825
  16,826
  17,872
  18,966
  20,111
  21,308
  22,562
  23,875
  25,251
  26,692
  28,203
  29,787
  31,449
Interest expense (income), $m
  316
  311
  359
  410
  463
  518
  575
  634
  696
  760
  826
  895
  967
  1,042
  1,120
  1,201
  1,286
  1,374
  1,465
  1,561
  1,660
  1,765
  1,873
  1,987
  2,106
  2,230
  2,360
  2,496
  2,638
  2,787
  2,943
Earnings before tax, $m
  1,534
  1,791
  2,060
  2,341
  2,634
  2,940
  3,258
  3,589
  3,934
  4,294
  4,668
  5,059
  5,466
  5,891
  6,335
  6,798
  7,283
  7,789
  8,318
  8,872
  9,452
  10,060
  10,697
  11,364
  12,063
  12,797
  13,567
  14,374
  15,222
  16,111
Tax expense, $m
  414
  484
  556
  632
  711
  794
  880
  969
  1,062
  1,159
  1,260
  1,366
  1,476
  1,591
  1,710
  1,836
  1,966
  2,103
  2,246
  2,396
  2,552
  2,716
  2,888
  3,068
  3,257
  3,455
  3,663
  3,881
  4,110
  4,350
Net income, $m
  1,120
  1,308
  1,504
  1,709
  1,923
  2,146
  2,378
  2,620
  2,872
  3,134
  3,408
  3,693
  3,990
  4,301
  4,624
  4,963
  5,316
  5,686
  6,072
  6,477
  6,900
  7,344
  7,809
  8,296
  8,806
  9,342
  9,904
  10,493
  11,112
  11,761

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
  16,791
  18,356
  19,987
  21,686
  23,453
  25,291
  27,200
  29,185
  31,247
  33,390
  35,619
  37,936
  40,347
  42,857
  45,471
  48,193
  51,032
  53,992
  57,080
  60,305
  63,672
  67,190
  70,867
  74,712
  78,733
  82,941
  87,345
  91,957
  96,785
  101,843
Adjusted assets (=assets-cash), $m
  16,791
  18,356
  19,987
  21,686
  23,453
  25,291
  27,200
  29,185
  31,247
  33,390
  35,619
  37,936
  40,347
  42,857
  45,471
  48,193
  51,032
  53,992
  57,080
  60,305
  63,672
  67,190
  70,867
  74,712
  78,733
  82,941
  87,345
  91,957
  96,785
  101,843
Revenue / Adjusted assets
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
  0.308
Average production assets, $m
  14,713
  16,084
  17,514
  19,003
  20,551
  22,161
  23,835
  25,573
  27,381
  29,259
  31,211
  33,242
  35,355
  37,554
  39,844
  42,230
  44,717
  47,311
  50,017
  52,842
  55,793
  58,876
  62,098
  65,467
  68,991
  72,678
  76,537
  80,578
  84,809
  89,241
Working capital, $m
  -300
  -328
  -357
  -387
  -419
  -452
  -486
  -521
  -558
  -596
  -636
  -678
  -721
  -766
  -812
  -861
  -912
  -965
  -1,020
  -1,077
  -1,137
  -1,200
  -1,266
  -1,335
  -1,406
  -1,482
  -1,560
  -1,643
  -1,729
  -1,819
Total debt, $m
  6,656
  7,592
  8,568
  9,584
  10,641
  11,739
  12,881
  14,068
  15,301
  16,583
  17,916
  19,301
  20,743
  22,244
  23,807
  25,435
  27,133
  28,903
  30,750
  32,678
  34,691
  36,795
  38,994
  41,293
  43,698
  46,214
  48,848
  51,606
  54,493
  57,518
Total liabilities, $m
  10,041
  10,977
  11,952
  12,968
  14,025
  15,124
  16,266
  17,452
  18,686
  19,968
  21,300
  22,686
  24,128
  25,629
  27,191
  28,820
  30,517
  32,287
  34,134
  36,062
  38,076
  40,179
  42,378
  44,678
  47,082
  49,599
  52,233
  54,990
  57,878
  60,902
Total equity, $m
  6,750
  7,379
  8,035
  8,718
  9,428
  10,167
  10,935
  11,732
  12,561
  13,423
  14,319
  15,250
  16,220
  17,229
  18,279
  19,374
  20,515
  21,705
  22,946
  24,242
  25,596
  27,010
  28,488
  30,034
  31,651
  33,342
  35,113
  36,967
  38,908
  40,941
Total liabilities and equity, $m
  16,791
  18,356
  19,987
  21,686
  23,453
  25,291
  27,201
  29,184
  31,247
  33,391
  35,619
  37,936
  40,348
  42,858
  45,470
  48,194
  51,032
  53,992
  57,080
  60,304
  63,672
  67,189
  70,866
  74,712
  78,733
  82,941
  87,346
  91,957
  96,786
  101,843
Debt-to-equity ratio
  0.990
  1.030
  1.070
  1.100
  1.130
  1.150
  1.180
  1.200
  1.220
  1.240
  1.250
  1.270
  1.280
  1.290
  1.300
  1.310
  1.320
  1.330
  1.340
  1.350
  1.360
  1.360
  1.370
  1.370
  1.380
  1.390
  1.390
  1.400
  1.400
  1.400
Adjusted equity ratio
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402
  0.402

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,120
  1,308
  1,504
  1,709
  1,923
  2,146
  2,378
  2,620
  2,872
  3,134
  3,408
  3,693
  3,990
  4,301
  4,624
  4,963
  5,316
  5,686
  6,072
  6,477
  6,900
  7,344
  7,809
  8,296
  8,806
  9,342
  9,904
  10,493
  11,112
  11,761
Depreciation, amort., depletion, $m
  2,043
  2,234
  2,432
  2,639
  2,854
  3,078
  3,310
  3,552
  3,803
  4,064
  4,335
  4,617
  4,910
  5,216
  5,534
  5,865
  6,211
  6,571
  6,947
  7,339
  7,749
  8,177
  8,625
  9,093
  9,582
  10,094
  10,630
  11,191
  11,779
  12,395
Funds from operations, $m
  3,163
  3,542
  3,937
  4,348
  4,777
  5,224
  5,688
  6,172
  6,675
  7,198
  7,743
  8,310
  8,901
  9,516
  10,158
  10,828
  11,527
  12,257
  13,019
  13,816
  14,649
  15,521
  16,433
  17,388
  18,388
  19,436
  20,534
  21,684
  22,891
  24,156
Change in working capital, $m
  -27
  -28
  -29
  -30
  -32
  -33
  -34
  -35
  -37
  -38
  -40
  -41
  -43
  -45
  -47
  -49
  -51
  -53
  -55
  -58
  -60
  -63
  -66
  -69
  -72
  -75
  -79
  -82
  -86
  -90
Cash from operations, $m
  3,190
  3,570
  3,966
  4,379
  4,809
  5,257
  5,722
  6,207
  6,712
  7,236
  7,783
  8,351
  8,944
  9,561
  10,205
  10,877
  11,578
  12,310
  13,074
  13,874
  14,709
  15,584
  16,499
  17,457
  18,460
  19,511
  20,612
  21,767
  22,977
  24,246
Maintenance CAPEX, $m
  -1,861
  -2,043
  -2,234
  -2,432
  -2,639
  -2,854
  -3,078
  -3,310
  -3,552
  -3,803
  -4,064
  -4,335
  -4,617
  -4,910
  -5,216
  -5,534
  -5,865
  -6,211
  -6,571
  -6,947
  -7,339
  -7,749
  -8,177
  -8,625
  -9,093
  -9,582
  -10,094
  -10,630
  -11,191
  -11,779
New CAPEX, $m
  -1,311
  -1,371
  -1,430
  -1,489
  -1,549
  -1,610
  -1,673
  -1,739
  -1,807
  -1,878
  -1,953
  -2,031
  -2,113
  -2,199
  -2,290
  -2,386
  -2,487
  -2,594
  -2,706
  -2,825
  -2,950
  -3,083
  -3,222
  -3,369
  -3,524
  -3,687
  -3,859
  -4,040
  -4,231
  -4,432
Cash from investing activities, $m
  -3,172
  -3,414
  -3,664
  -3,921
  -4,188
  -4,464
  -4,751
  -5,049
  -5,359
  -5,681
  -6,017
  -6,366
  -6,730
  -7,109
  -7,506
  -7,920
  -8,352
  -8,805
  -9,277
  -9,772
  -10,289
  -10,832
  -11,399
  -11,994
  -12,617
  -13,269
  -13,953
  -14,670
  -15,422
  -16,211
Free cash flow, $m
  17
  155
  302
  458
  621
  792
  971
  1,158
  1,353
  1,555
  1,766
  1,986
  2,214
  2,452
  2,699
  2,957
  3,225
  3,505
  3,797
  4,102
  4,420
  4,752
  5,100
  5,463
  5,843
  6,242
  6,659
  7,096
  7,554
  8,035
Issuance/(repayment) of debt, $m
  888
  936
  976
  1,016
  1,057
  1,099
  1,142
  1,187
  1,233
  1,282
  1,333
  1,386
  1,442
  1,501
  1,563
  1,628
  1,697
  1,770
  1,847
  1,928
  2,014
  2,104
  2,199
  2,299
  2,405
  2,516
  2,634
  2,757
  2,888
  3,025
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  
  888
  936
  976
  1,016
  1,057
  1,099
  1,142
  1,187
  1,233
  1,282
  1,333
  1,386
  1,442
  1,501
  1,563
  1,628
  1,697
  1,770
  1,847
  1,928
  2,014
  2,104
  2,199
  2,299
  2,405
  2,516
  2,634
  2,757
  2,888
  3,025
Total cash flow (excl. dividends), $m
  905
  1,091
  1,278
  1,474
  1,678
  1,891
  2,113
  2,345
  2,586
  2,837
  3,099
  3,372
  3,656
  3,953
  4,262
  4,585
  4,923
  5,275
  5,644
  6,030
  6,433
  6,856
  7,299
  7,762
  8,248
  8,758
  9,293
  9,854
  10,442
  11,060
Retained Cash Flow (-), $m
  -605
  -629
  -656
  -683
  -710
  -739
  -768
  -798
  -829
  -862
  -896
  -932
  -969
  -1,009
  -1,051
  -1,095
  -1,141
  -1,190
  -1,242
  -1,296
  -1,354
  -1,414
  -1,478
  -1,546
  -1,617
  -1,692
  -1,771
  -1,854
  -1,941
  -2,033
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
  300
  462
  622
  791
  967
  1,152
  1,345
  1,547
  1,757
  1,975
  2,203
  2,440
  2,687
  2,944
  3,211
  3,490
  3,782
  4,085
  4,402
  4,734
  5,080
  5,442
  5,820
  6,217
  6,632
  7,067
  7,522
  8,000
  8,501
  9,026
Discount rate, %
  4.70
  4.94
  5.18
  5.44
  5.71
  6.00
  6.30
  6.61
  6.94
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.77
  11.31
  11.88
  12.47
  13.09
  13.75
  14.44
  15.16
  15.92
  16.71
  17.55
  18.42
  19.35
PV of cash for distribution, $m
  287
  419
  534
  640
  733
  812
  877
  927
  960
  977
  979
  965
  937
  897
  845
  785
  719
  648
  575
  502
  431
  363
  301
  244
  195
  152
  116
  87
  63
  45
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

Continental Resources, Inc. is a crude oil and natural gas company with properties in the North, South and East regions of the United States. The North region consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken and the Red River units. The South region includes properties south of Nebraska and west of the Mississippi River including various plays in the South Central Oklahoma Oil Province (SCOOP), Sooner Trend Anadarko Canadian Kingfisher (STACK), and Arkoma Woodford areas of Oklahoma. The East region is consists of undeveloped leasehold acreage east of the Mississippi River with no drilling or production operations. As of December 31, 2016, its estimated proved reserves were 1,275 million barrels of oil equivalent (MMBoe), with estimated proved developed reserves of 519 MMBoe. As of December 31, 2016, its average daily production from South region properties was 91,088 barrels of oil equivalent (Boe) per day.

FINANCIAL RATIOS  of  Continental Resources, Inc. (CLR)

Valuation Ratios
P/E Ratio -39.8
Price to Sales 8
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow 14.1
Price to Free Cash Flow -407.7
Growth Rates
Sales Growth Rate -26.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -62.2%
Cap. Spend. - 3 Yr. Gr. Rate -20.8%
Financial Strength
Quick Ratio 9
Current Ratio 0
LT Debt to Equity 152.9%
Total Debt to Equity 153%
Interest Coverage -1
Management Effectiveness
Return On Assets -1.4%
Ret/ On Assets - 3 Yr. Avg. 2%
Return On Total Capital -3.5%
Ret/ On T. Cap. - 3 Yr. Avg. 1.1%
Return On Equity -8.9%
Return On Equity - 3 Yr. Avg. 1.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 70.4%
EBITDA Margin - 3 Yr. Avg. 64.5%
Operating Margin -15.9%
Oper. Margin - 3 Yr. Avg. 4.7%
Pre-Tax Margin -31.9%
Pre-Tax Margin - 3 Yr. Avg. -6.5%
Net Profit Margin -20.2%
Net Profit Margin - 3 Yr. Avg. -4.4%
Effective Tax Rate 36.7%
Eff/ Tax Rate - 3 Yr. Avg. 36%
Payout Ratio 0%

CLR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CLR stock intrinsic value calculation we used $4710 million for the last fiscal year's total revenue generated by Continental Resources, Inc.. The default revenue input number comes from 0001 income statement of Continental Resources, Inc.. 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 CLR stock valuation model: a) initial revenue growth rate of 9.8% 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 4.7%, whose default value for CLR is calculated based on our internal credit rating of Continental Resources, Inc., 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 Continental Resources, Inc..
    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 CLR stock the variable cost ratio is equal to 28%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1838 million in the base year in the intrinsic value calculation for CLR 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 Continental Resources, Inc..

Corporate tax rate of 27% is the nominal tax rate for Continental Resources, Inc.. 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 CLR 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 CLR are equal to 284.5%.

Life of production assets of 7.2 years is the average useful life of capital assets used in Continental Resources, Inc. 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 CLR is equal to -5.8%. 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 - $6145.133 million for Continental Resources, Inc. - 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 376.070 million for Continental Resources, Inc. 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 Continental Resources, Inc. at the current share price and the inputted number of shares is $16.0 billion.

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