Intrinsic value of Crescent Point Energy - CPG

Previous Close

$3.90

  Intrinsic Value

$3.21

stock screener

  Rating & Target

hold

-18%

Previous close

$3.90

 
Intrinsic value

$3.21

 
Up/down potential

-18%

 
Rating

hold

We calculate the intrinsic value of CPG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 2.1

 

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, %
  52.20
  47.48
  43.23
  39.41
  35.97
  32.87
  30.08
  27.58
  25.32
  23.29
  21.46
  19.81
  18.33
  17.00
  15.80
  14.72
  13.75
  12.87
  12.08
  11.38
  10.74
  10.16
  9.65
  9.18
  8.76
  8.39
  8.05
  7.74
  7.47
  7.22
Revenue, $m
  3,343
  4,931
  7,062
  9,845
  13,387
  17,787
  23,138
  29,518
  36,992
  45,606
  55,392
  66,366
  78,531
  91,880
  106,395
  122,054
  138,832
  156,702
  175,638
  195,619
  216,625
  238,644
  261,669
  285,699
  310,740
  336,806
  363,918
  392,102
  421,393
  451,831
Variable operating expenses, $m
  5,550
  8,175
  11,701
  16,304
  22,161
  29,439
  38,290
  48,843
  61,204
  75,451
  91,617
  109,769
  129,890
  151,968
  175,976
  201,876
  229,626
  259,183
  290,504
  323,552
  358,296
  394,715
  432,798
  472,543
  513,962
  557,075
  601,918
  648,534
  696,981
  747,325
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
  5,550
  8,175
  11,701
  16,304
  22,161
  29,439
  38,290
  48,843
  61,204
  75,451
  91,617
  109,769
  129,890
  151,968
  175,976
  201,876
  229,626
  259,183
  290,504
  323,552
  358,296
  394,715
  432,798
  472,543
  513,962
  557,075
  601,918
  648,534
  696,981
  747,325
Operating income, $m
  -2,206
  -3,244
  -4,638
  -6,459
  -8,775
  -11,652
  -15,152
  -19,325
  -24,212
  -29,846
  -36,226
  -43,403
  -51,359
  -60,089
  -69,581
  -79,822
  -90,795
  -102,482
  -114,866
  -127,933
  -141,671
  -156,071
  -171,129
  -186,845
  -203,221
  -220,269
  -237,999
  -256,432
  -275,588
  -295,494
EBITDA, $m
  -88
  -130
  -186
  -260
  -353
  -470
  -611
  -779
  -976
  -1,204
  -1,462
  -1,752
  -2,073
  -2,425
  -2,808
  -3,222
  -3,665
  -4,136
  -4,636
  -5,164
  -5,718
  -6,299
  -6,907
  -7,542
  -8,203
  -8,891
  -9,606
  -10,350
  -11,123
  -11,927
Interest expense (income), $m
  0
  174
  326
  535
  817
  1,184
  1,652
  2,233
  2,940
  3,783
  4,770
  5,907
  7,200
  8,649
  10,256
  12,019
  13,936
  16,004
  18,219
  20,579
  23,080
  25,719
  28,494
  31,402
  34,442
  37,616
  40,923
  44,366
  47,946
  51,669
  55,537
Earnings before tax, $m
  -2,381
  -3,570
  -5,174
  -7,275
  -9,959
  -13,304
  -17,385
  -22,264
  -27,995
  -34,615
  -42,133
  -50,602
  -60,008
  -70,344
  -81,600
  -93,758
  -106,798
  -120,701
  -135,445
  -151,013
  -167,390
  -184,565
  -202,531
  -221,287
  -240,837
  -261,192
  -282,365
  -304,378
  -327,256
  -351,031
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
  -2,381
  -3,570
  -5,174
  -7,275
  -9,959
  -13,304
  -17,385
  -22,264
  -27,995
  -34,615
  -42,133
  -50,602
  -60,008
  -70,344
  -81,600
  -93,758
  -106,798
  -120,701
  -135,445
  -151,013
  -167,390
  -184,565
  -202,531
  -221,287
  -240,837
  -261,192
  -282,365
  -304,378
  -327,256
  -351,031

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
  19,104
  28,175
  40,356
  56,259
  76,495
  101,639
  132,217
  168,676
  211,382
  260,605
  316,524
  379,234
  448,750
  525,026
  607,969
  697,451
  793,324
  895,438
  1,003,647
  1,117,822
  1,237,858
  1,363,681
  1,495,251
  1,632,564
  1,775,658
  1,924,608
  2,079,532
  2,240,585
  2,407,961
  2,581,893
Adjusted assets (=assets-cash), $m
  19,104
  28,175
  40,356
  56,259
  76,495
  101,639
  132,217
  168,676
  211,382
  260,605
  316,524
  379,234
  448,750
  525,026
  607,969
  697,451
  793,324
  895,438
  1,003,647
  1,117,822
  1,237,858
  1,363,681
  1,495,251
  1,632,564
  1,775,658
  1,924,608
  2,079,532
  2,240,585
  2,407,961
  2,581,893
Revenue / Adjusted assets
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
Average production assets, $m
  16,576
  24,446
  35,015
  48,813
  66,371
  88,187
  114,718
  146,352
  183,405
  226,114
  274,632
  329,042
  389,358
  455,539
  527,505
  605,143
  688,328
  776,927
  870,814
  969,878
  1,074,027
  1,183,198
  1,297,354
  1,416,494
  1,540,649
  1,669,887
  1,804,306
  1,944,044
  2,089,268
  2,240,179
Working capital, $m
  -465
  -685
  -982
  -1,369
  -1,861
  -2,472
  -3,216
  -4,103
  -5,142
  -6,339
  -7,699
  -9,225
  -10,916
  -12,771
  -14,789
  -16,965
  -19,298
  -21,782
  -24,414
  -27,191
  -30,111
  -33,172
  -36,372
  -39,712
  -43,193
  -46,816
  -50,585
  -54,502
  -58,574
  -62,805
Total debt, $m
  6,031
  9,913
  15,127
  21,933
  30,594
  41,356
  54,443
  70,048
  88,326
  109,393
  133,327
  160,166
  189,919
  222,566
  258,065
  296,363
  337,397
  381,102
  427,415
  476,282
  527,658
  581,510
  637,822
  696,592
  757,836
  821,587
  887,894
  956,825
  1,028,462
  1,102,904
Total liabilities, $m
  8,177
  12,059
  17,272
  24,079
  32,740
  43,502
  56,589
  72,193
  90,471
  111,539
  135,472
  162,312
  192,065
  224,711
  260,211
  298,509
  339,543
  383,247
  429,561
  478,428
  529,803
  583,655
  639,967
  698,737
  759,982
  823,732
  890,040
  958,970
  1,030,607
  1,105,050
Total equity, $m
  10,928
  16,116
  23,083
  32,180
  43,755
  58,138
  75,628
  96,483
  120,910
  149,066
  181,052
  216,922
  256,685
  300,315
  347,758
  398,942
  453,781
  512,190
  574,086
  639,394
  708,055
  780,026
  855,283
  933,827
  1,015,676
  1,100,876
  1,189,493
  1,281,615
  1,377,354
  1,476,843
Total liabilities and equity, $m
  19,105
  28,175
  40,355
  56,259
  76,495
  101,640
  132,217
  168,676
  211,381
  260,605
  316,524
  379,234
  448,750
  525,026
  607,969
  697,451
  793,324
  895,437
  1,003,647
  1,117,822
  1,237,858
  1,363,681
  1,495,250
  1,632,564
  1,775,658
  1,924,608
  2,079,533
  2,240,585
  2,407,961
  2,581,893
Debt-to-equity ratio
  0.550
  0.620
  0.660
  0.680
  0.700
  0.710
  0.720
  0.730
  0.730
  0.730
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
  0.750
Adjusted equity ratio
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572
  0.572

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,381
  -3,570
  -5,174
  -7,275
  -9,959
  -13,304
  -17,385
  -22,264
  -27,995
  -34,615
  -42,133
  -50,602
  -60,008
  -70,344
  -81,600
  -93,758
  -106,798
  -120,701
  -135,445
  -151,013
  -167,390
  -184,565
  -202,531
  -221,287
  -240,837
  -261,192
  -282,365
  -304,378
  -327,256
  -351,031
Depreciation, amort., depletion, $m
  2,118
  3,114
  4,452
  6,199
  8,421
  11,183
  14,541
  18,545
  23,236
  28,642
  34,764
  41,651
  49,286
  57,663
  66,773
  76,600
  87,130
  98,345
  110,230
  122,769
  135,953
  149,772
  164,222
  179,303
  195,019
  211,378
  228,393
  246,081
  264,464
  283,567
Funds from operations, $m
  -263
  -456
  -722
  -1,077
  -1,538
  -2,122
  -2,844
  -3,719
  -4,759
  -5,973
  -7,369
  -8,951
  -10,722
  -12,681
  -14,827
  -17,157
  -19,668
  -22,356
  -25,216
  -28,244
  -31,437
  -34,793
  -38,309
  -41,984
  -45,818
  -49,814
  -53,972
  -58,297
  -62,792
  -67,464
Change in working capital, $m
  -159
  -221
  -296
  -387
  -492
  -612
  -744
  -887
  -1,039
  -1,197
  -1,360
  -1,525
  -1,691
  -1,855
  -2,018
  -2,177
  -2,332
  -2,484
  -2,632
  -2,777
  -2,920
  -3,061
  -3,200
  -3,340
  -3,481
  -3,623
  -3,769
  -3,918
  -4,071
  -4,231
Cash from operations, $m
  -103
  -235
  -425
  -690
  -1,046
  -1,510
  -2,100
  -2,832
  -3,720
  -4,776
  -6,009
  -7,426
  -9,031
  -10,826
  -12,809
  -14,981
  -17,336
  -19,872
  -22,584
  -25,467
  -28,518
  -31,732
  -35,108
  -38,644
  -42,338
  -46,191
  -50,203
  -54,379
  -58,721
  -63,233
Maintenance CAPEX, $m
  -1,379
  -2,098
  -3,094
  -4,432
  -6,179
  -8,401
  -11,163
  -14,521
  -18,526
  -23,216
  -28,622
  -34,764
  -41,651
  -49,286
  -57,663
  -66,773
  -76,600
  -87,130
  -98,345
  -110,230
  -122,769
  -135,953
  -149,772
  -164,222
  -179,303
  -195,019
  -211,378
  -228,393
  -246,081
  -264,464
New CAPEX, $m
  -5,683
  -7,870
  -10,569
  -13,799
  -17,557
  -21,817
  -26,530
  -31,634
  -37,053
  -42,708
  -48,519
  -54,410
  -60,316
  -66,181
  -71,965
  -77,638
  -83,185
  -88,599
  -93,887
  -99,064
  -104,150
  -109,170
  -114,156
  -119,140
  -124,155
  -129,237
  -134,420
  -139,738
  -145,224
  -150,912
Cash from investing activities, $m
  -7,062
  -9,968
  -13,663
  -18,231
  -23,736
  -30,218
  -37,693
  -46,155
  -55,579
  -65,924
  -77,141
  -89,174
  -101,967
  -115,467
  -129,628
  -144,411
  -159,785
  -175,729
  -192,232
  -209,294
  -226,919
  -245,123
  -263,928
  -283,362
  -303,458
  -324,256
  -345,798
  -368,131
  -391,305
  -415,376
Free cash flow, $m
  -7,165
  -10,204
  -14,088
  -18,921
  -24,782
  -31,728
  -39,794
  -48,988
  -59,299
  -70,700
  -83,150
  -96,599
  -110,997
  -126,293
  -142,438
  -159,392
  -177,121
  -195,601
  -214,816
  -234,760
  -255,436
  -276,855
  -299,037
  -322,006
  -345,796
  -370,446
  -396,001
  -422,510
  -450,026
  -478,609
Issuance/(repayment) of debt, $m
  2,802
  3,882
  5,213
  6,807
  8,661
  10,762
  13,087
  15,605
  18,278
  21,067
  23,934
  26,840
  29,753
  32,646
  35,500
  38,298
  41,034
  43,705
  46,313
  48,867
  51,376
  53,852
  56,312
  58,770
  61,244
  63,751
  66,307
  68,931
  71,637
  74,443
Issuance/(repurchase) of shares, $m
  6,110
  8,759
  12,141
  16,372
  21,534
  27,687
  34,875
  43,119
  52,422
  62,771
  74,119
  86,472
  99,771
  113,974
  129,043
  144,941
  161,638
  179,110
  197,341
  216,322
  236,051
  256,536
  277,789
  299,830
  322,687
  346,392
  370,982
  396,500
  422,995
  450,520
Cash from financing (excl. dividends), $m  
  8,912
  12,641
  17,354
  23,179
  30,195
  38,449
  47,962
  58,724
  70,700
  83,838
  98,053
  113,312
  129,524
  146,620
  164,543
  183,239
  202,672
  222,815
  243,654
  265,189
  287,427
  310,388
  334,101
  358,600
  383,931
  410,143
  437,289
  465,431
  494,632
  524,963
Total cash flow (excl. dividends), $m
  1,747
  2,437
  3,266
  4,258
  5,413
  6,721
  8,169
  9,736
  11,401
  13,138
  14,903
  16,712
  18,526
  20,328
  22,105
  23,847
  25,551
  27,214
  28,838
  30,428
  31,990
  33,532
  35,064
  36,595
  38,135
  39,696
  41,288
  42,921
  44,606
  46,353
Retained Cash Flow (-), $m
  -6,110
  -8,759
  -12,141
  -16,372
  -21,534
  -27,687
  -34,875
  -43,119
  -52,422
  -62,771
  -74,119
  -86,472
  -99,771
  -113,974
  -129,043
  -144,941
  -161,638
  -179,110
  -197,341
  -216,322
  -236,051
  -256,536
  -277,789
  -299,830
  -322,687
  -346,392
  -370,982
  -396,500
  -422,995
  -450,520
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
  -4,363
  -6,321
  -8,875
  -12,114
  -16,121
  -20,966
  -26,706
  -33,383
  -41,021
  -49,633
  -59,216
  -69,760
  -81,245
  -93,646
  -106,938
  -121,094
  -136,087
  -151,896
  -168,503
  -185,893
  -204,061
  -223,003
  -242,725
  -263,236
  -284,552
  -306,696
  -329,694
  -353,579
  -378,389
  -404,166
Discount rate, %
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
  -4,159
  -5,718
  -7,579
  -9,715
  -12,072
  -14,570
  -17,111
  -19,583
  -21,868
  -23,855
  -25,444
  -26,557
  -27,142
  -27,175
  -26,665
  -25,648
  -24,186
  -22,361
  -20,266
  -18,002
  -15,668
  -13,356
  -11,145
  -9,100
  -7,264
  -5,665
  -4,313
  -3,203
  -2,317
  -1,632
Current shareholders' claim on cash, %
  45.2
  21.1
  10.1
  5.0
  2.6
  1.4
  0.7
  0.4
  0.2
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Crescent Point Energy Corp. acquires, explores, develops, and produces light and medium oil and natural gas properties in Western Canada and the United States. The company's crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota, Montana, Colorado, and Utah. Crescent Point Energy Corp. is headquartered in Calgary, Canada.

FINANCIAL RATIOS  of  Crescent Point Energy (CPG)

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%

CPG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CPG stock intrinsic value calculation we used $2196.6221524 million for the last fiscal year's total revenue generated by Crescent Point Energy. The default revenue input number comes from 0001 income statement of Crescent Point 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 CPG stock valuation model: a) initial revenue growth rate of 52.2% 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 4.9%, whose default value for CPG is calculated based on our internal credit rating of Crescent Point 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 Crescent Point 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 CPG stock the variable cost ratio is equal to 166.3%.

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 CPG 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 Crescent Point Energy.

Corporate tax rate of 27% is the nominal tax rate for Crescent Point 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 CPG 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 CPG are equal to 495.8%.

Life of production assets of 7.9 years is the average useful life of capital assets used in Crescent Point 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 CPG is equal to -13.9%. 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 - $7197.87902592 million for Crescent Point 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 545.794 million for Crescent Point 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 Crescent Point Energy at the current share price and the inputted number of shares is $2.1 billion.

RELATED COMPANIES Price Int.Val. Rating
SM SM Energy 21.72 5.34  str.sell

COMPANY NEWS

▶ Crescent Point Energy Confirms November 2018 Dividend   [Nov-15-18 11:30AM  CNW Group]
▶ Why Crescent Point Energy Corp.s Stock Is Surging Today   [Oct-25-18 01:08PM  Motley Fool]
▶ Crescent Point: 3Q Earnings Snapshot   [09:22AM  Associated Press]
▶ Crescent Point Announces Q3 2018 Results   [06:30AM  GlobeNewswire]
▶ Crescent Point Announces Third Quarter 2018 Conference Call   [Oct-18-18 10:30AM  GlobeNewswire]
▶ Crescent Point Energy Confirms October 2018 Dividend   [Oct-15-18 12:00PM  GlobeNewswire]
▶ Crescent Point Energy Confirms September 2018 Dividend   [Sep-17-18 12:00PM  GlobeNewswire]
▶ Crescent Point Energy Confirms August 2018 Dividend   [Aug-15-18 11:00AM  GlobeNewswire]
▶ Crescent Point: 2Q Earnings Snapshot   [Jul-26-18 11:03AM  Associated Press]
▶ Crescent Point Announces Q2 2018 Results   [06:30AM  GlobeNewswire]
▶ Crescent Point Energy Confirms July 2018 Dividend   [Jul-16-18 12:00PM  GlobeNewswire]
▶ Crescent Point Energy Confirms June 2018 Dividend   [Jun-15-18 11:45AM  GlobeNewswire]
▶ Crescent Point Energy Confirms May 2018 Dividend   [May-15-18 12:00PM  GlobeNewswire]
▶ Crescent Point: 1Q Earnings Snapshot   [May-03-18 11:02AM  Associated Press]
▶ Crescent Point Reinforces Its Current Plan for Change   [Apr-20-18 03:51PM  GlobeNewswire]
▶ Calculating The Fair Value Of Capital Park SA. (WSE:CPG)   [Apr-17-18 08:01AM  Simply Wall St.]
▶ Crescent Point Energy Confirms April 2018 Dividend   [Apr-16-18 12:00PM  GlobeNewswire]
▶ How Canadian Drillers Adapt To Extreme Crude Discounts   [Apr-04-18 06:00PM  Oilprice.com]
▶ Crescent Point Energy Corp (TSE:CPG): Is Breakeven Near?   [Mar-23-18 09:48AM  Simply Wall St.]
▶ Crescent Point Energy Confirms March 2018 Dividend   [Mar-15-18 12:00PM  GlobeNewswire]
▶ Crescent Point hit by rise in costs   [Mar-01-18 11:09AM  Reuters]
▶ Crescent Point reports 4Q loss   [10:40AM  Associated Press]
▶ Crescent Point Energy Confirms February 2018 Dividend   [Feb-15-18 12:00PM  GlobeNewswire]
▶ 4 Energy Stocks With Soaring Estimates Ahead of Q4 Earnings   [Jan-19-18 10:55AM  InvestorPlace]
▶ Crescent Point Energy Confirms January 2018 Dividend   [Jan-15-18 11:49AM  GlobeNewswire]
▶ CANADA STOCKS-TSX falls as NAFTA worries weigh   [Jan-10-18 04:39PM  Reuters]
▶ Should You Buy Crescent Point Energy Corp (TSE:CPG) Now?   [Jan-07-18 12:50PM  Simply Wall St.]

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