Intrinsic value of CARBO Ceramics - CRR

Previous Close

$7.76

  Intrinsic Value

$3.62

stock screener

  Rating & Target

str. sell

-53%

Previous close

$7.76

 
Intrinsic value

$3.62

 
Up/down potential

-53%

 
Rating

str. sell

We calculate the intrinsic value of CRR 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 0.2

 

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, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  302
  467
  699
  1,014
  1,430
  1,966
  2,639
  3,466
  4,460
  5,633
  6,995
  8,552
  10,308
  12,264
  14,420
  16,774
  19,322
  22,061
  24,985
  28,091
  31,374
  34,830
  38,458
  42,256
  46,223
  50,359
  54,666
  59,148
  63,808
  68,651
Variable operating expenses, $m
  640
  988
  1,477
  2,142
  3,021
  4,153
  5,573
  7,318
  9,416
  11,893
  14,766
  18,053
  21,760
  25,890
  30,442
  35,411
  40,791
  46,572
  52,745
  59,301
  66,232
  73,529
  81,188
  89,205
  97,579
  106,311
  115,404
  124,865
  134,703
  144,927
Fixed operating expenses, $m
  11
  11
  12
  12
  12
  13
  13
  13
  13
  14
  14
  14
  15
  15
  15
  16
  16
  16
  17
  17
  17
  18
  18
  19
  19
  19
  20
  20
  21
  21
Total operating expenses, $m
  651
  999
  1,489
  2,154
  3,033
  4,166
  5,586
  7,331
  9,429
  11,907
  14,780
  18,067
  21,775
  25,905
  30,457
  35,427
  40,807
  46,588
  52,762
  59,318
  66,249
  73,547
  81,206
  89,224
  97,598
  106,330
  115,424
  124,885
  134,724
  144,948
Operating income, $m
  -349
  -532
  -790
  -1,140
  -1,603
  -2,199
  -2,947
  -3,865
  -4,970
  -6,274
  -7,785
  -9,516
  -11,467
  -13,641
  -16,037
  -18,653
  -21,484
  -24,527
  -27,777
  -31,228
  -34,875
  -38,716
  -42,748
  -46,968
  -51,375
  -55,971
  -60,758
  -65,737
  -70,915
  -76,297
EBITDA, $m
  -280
  -426
  -632
  -911
  -1,281
  -1,757
  -2,354
  -3,088
  -3,970
  -5,011
  -6,219
  -7,601
  -9,159
  -10,895
  -12,808
  -14,897
  -17,158
  -19,588
  -22,183
  -24,938
  -27,851
  -30,918
  -34,137
  -37,507
  -41,026
  -44,696
  -48,518
  -52,494
  -56,629
  -60,926
Interest expense (income), $m
  5
  8
  15
  25
  40
  59
  85
  119
  161
  212
  274
  347
  432
  529
  639
  761
  895
  1,042
  1,201
  1,372
  1,554
  1,747
  1,952
  2,168
  2,394
  2,631
  2,878
  3,136
  3,404
  3,684
  3,974
Earnings before tax, $m
  -357
  -547
  -815
  -1,180
  -1,662
  -2,284
  -3,066
  -4,026
  -5,182
  -6,548
  -8,133
  -9,948
  -11,996
  -14,280
  -16,798
  -19,548
  -22,526
  -25,728
  -29,148
  -32,781
  -36,623
  -40,669
  -44,915
  -49,361
  -54,006
  -58,849
  -63,893
  -69,142
  -74,599
  -80,271
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
  -357
  -547
  -815
  -1,180
  -1,662
  -2,284
  -3,066
  -4,026
  -5,182
  -6,548
  -8,133
  -9,948
  -11,996
  -14,280
  -16,798
  -19,548
  -22,526
  -25,728
  -29,148
  -32,781
  -36,623
  -40,669
  -44,915
  -49,361
  -54,006
  -58,849
  -63,893
  -69,142
  -74,599
  -80,271

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
  809
  1,249
  1,868
  2,711
  3,824
  5,258
  7,057
  9,267
  11,924
  15,061
  18,702
  22,865
  27,560
  32,791
  38,557
  44,851
  51,664
  58,986
  66,805
  75,109
  83,887
  93,129
  102,830
  112,984
  123,590
  134,649
  146,167
  158,150
  170,609
  183,560
Adjusted assets (=assets-cash), $m
  809
  1,249
  1,868
  2,711
  3,824
  5,258
  7,057
  9,267
  11,924
  15,061
  18,702
  22,865
  27,560
  32,791
  38,557
  44,851
  51,664
  58,986
  66,805
  75,109
  83,887
  93,129
  102,830
  112,984
  123,590
  134,649
  146,167
  158,150
  170,609
  183,560
Revenue / Adjusted assets
  0.373
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
Average production assets, $m
  677
  1,046
  1,564
  2,270
  3,202
  4,403
  5,910
  7,760
  9,985
  12,612
  15,661
  19,147
  23,079
  27,459
  32,287
  37,557
  43,263
  49,394
  55,942
  62,895
  70,245
  77,985
  86,108
  94,611
  103,492
  112,753
  122,398
  132,432
  142,866
  153,710
Working capital, $m
  96
  148
  221
  320
  452
  621
  834
  1,095
  1,409
  1,780
  2,210
  2,702
  3,257
  3,875
  4,557
  5,301
  6,106
  6,971
  7,895
  8,877
  9,914
  11,006
  12,153
  13,353
  14,606
  15,913
  17,275
  18,691
  20,163
  21,694
Total debt, $m
  168
  283
  445
  666
  958
  1,333
  1,805
  2,384
  3,080
  3,902
  4,856
  5,946
  7,176
  8,547
  10,058
  11,707
  13,492
  15,410
  17,459
  19,634
  21,934
  24,356
  26,897
  29,557
  32,336
  35,234
  38,251
  41,391
  44,655
  48,048
Total liabilities, $m
  212
  327
  489
  710
  1,002
  1,377
  1,849
  2,428
  3,124
  3,946
  4,900
  5,991
  7,221
  8,591
  10,102
  11,751
  13,536
  15,454
  17,503
  19,679
  21,978
  24,400
  26,941
  29,602
  32,381
  35,278
  38,296
  41,435
  44,700
  48,093
Total equity, $m
  597
  922
  1,379
  2,000
  2,822
  3,880
  5,208
  6,839
  8,800
  11,115
  13,802
  16,875
  20,339
  24,200
  28,455
  33,100
  38,128
  43,532
  49,302
  55,430
  61,908
  68,729
  75,888
  83,382
  91,209
  99,371
  107,871
  116,714
  125,910
  135,467
Total liabilities and equity, $m
  809
  1,249
  1,868
  2,710
  3,824
  5,257
  7,057
  9,267
  11,924
  15,061
  18,702
  22,866
  27,560
  32,791
  38,557
  44,851
  51,664
  58,986
  66,805
  75,109
  83,886
  93,129
  102,829
  112,984
  123,590
  134,649
  146,167
  158,149
  170,610
  183,560
Debt-to-equity ratio
  0.280
  0.310
  0.320
  0.330
  0.340
  0.340
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
  0.350
Adjusted equity ratio
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738
  0.738

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -357
  -547
  -815
  -1,180
  -1,662
  -2,284
  -3,066
  -4,026
  -5,182
  -6,548
  -8,133
  -9,948
  -11,996
  -14,280
  -16,798
  -19,548
  -22,526
  -25,728
  -29,148
  -32,781
  -36,623
  -40,669
  -44,915
  -49,361
  -54,006
  -58,849
  -63,893
  -69,142
  -74,599
  -80,271
Depreciation, amort., depletion, $m
  69
  106
  158
  228
  322
  442
  592
  777
  1,000
  1,263
  1,566
  1,915
  2,308
  2,746
  3,229
  3,756
  4,326
  4,939
  5,594
  6,290
  7,025
  7,799
  8,611
  9,461
  10,349
  11,275
  12,240
  13,243
  14,287
  15,371
Funds from operations, $m
  -287
  -441
  -657
  -951
  -1,340
  -1,842
  -2,473
  -3,248
  -4,182
  -5,285
  -6,567
  -8,033
  -9,688
  -11,534
  -13,569
  -15,792
  -18,200
  -20,789
  -23,554
  -26,492
  -29,598
  -32,870
  -36,305
  -39,900
  -43,657
  -47,574
  -51,654
  -55,899
  -60,313
  -64,900
Change in working capital, $m
  36
  52
  73
  100
  132
  169
  213
  261
  314
  371
  430
  492
  555
  618
  681
  744
  805
  865
  924
  981
  1,037
  1,092
  1,146
  1,200
  1,253
  1,307
  1,361
  1,416
  1,473
  1,531
Cash from operations, $m
  -323
  -493
  -730
  -1,051
  -1,472
  -2,012
  -2,686
  -3,509
  -4,496
  -5,656
  -6,997
  -8,525
  -10,243
  -12,152
  -14,250
  -16,536
  -19,005
  -21,654
  -24,478
  -27,473
  -30,636
  -33,962
  -37,451
  -41,100
  -44,910
  -48,881
  -53,015
  -57,315
  -61,785
  -66,431
Maintenance CAPEX, $m
  -42
  -68
  -105
  -156
  -227
  -320
  -440
  -591
  -776
  -998
  -1,261
  -1,566
  -1,915
  -2,308
  -2,746
  -3,229
  -3,756
  -4,326
  -4,939
  -5,594
  -6,290
  -7,025
  -7,799
  -8,611
  -9,461
  -10,349
  -11,275
  -12,240
  -13,243
  -14,287
New CAPEX, $m
  -254
  -369
  -518
  -705
  -933
  -1,200
  -1,507
  -1,850
  -2,225
  -2,627
  -3,049
  -3,486
  -3,932
  -4,380
  -4,828
  -5,271
  -5,706
  -6,131
  -6,547
  -6,953
  -7,350
  -7,740
  -8,123
  -8,503
  -8,881
  -9,261
  -9,644
  -10,034
  -10,434
  -10,844
Cash from investing activities, $m
  -296
  -437
  -623
  -861
  -1,160
  -1,520
  -1,947
  -2,441
  -3,001
  -3,625
  -4,310
  -5,052
  -5,847
  -6,688
  -7,574
  -8,500
  -9,462
  -10,457
  -11,486
  -12,547
  -13,640
  -14,765
  -15,922
  -17,114
  -18,342
  -19,610
  -20,919
  -22,274
  -23,677
  -25,131
Free cash flow, $m
  -620
  -930
  -1,353
  -1,912
  -2,632
  -3,532
  -4,633
  -5,951
  -7,497
  -9,281
  -11,307
  -13,577
  -16,089
  -18,840
  -21,824
  -25,035
  -28,467
  -32,112
  -35,965
  -40,021
  -44,276
  -48,727
  -53,373
  -58,214
  -63,252
  -68,491
  -73,935
  -79,589
  -85,462
  -91,562
Issuance/(repayment) of debt, $m
  80
  115
  162
  221
  292
  376
  472
  579
  696
  822
  954
  1,091
  1,230
  1,371
  1,511
  1,649
  1,785
  1,918
  2,049
  2,176
  2,300
  2,422
  2,542
  2,660
  2,779
  2,898
  3,018
  3,140
  3,264
  3,393
Issuance/(repurchase) of shares, $m
  581
  872
  1,272
  1,801
  2,484
  3,342
  4,394
  5,656
  7,143
  8,863
  10,820
  13,020
  15,461
  18,140
  21,053
  24,193
  27,555
  31,132
  34,918
  38,909
  43,101
  47,490
  52,074
  56,855
  61,833
  67,011
  72,393
  77,985
  83,794
  89,829
Cash from financing (excl. dividends), $m  
  661
  987
  1,434
  2,022
  2,776
  3,718
  4,866
  6,235
  7,839
  9,685
  11,774
  14,111
  16,691
  19,511
  22,564
  25,842
  29,340
  33,050
  36,967
  41,085
  45,401
  49,912
  54,616
  59,515
  64,612
  69,909
  75,411
  81,125
  87,058
  93,222
Total cash flow (excl. dividends), $m
  41
  58
  81
  109
  144
  185
  232
  285
  342
  404
  467
  534
  602
  670
  739
  807
  873
  938
  1,002
  1,064
  1,125
  1,185
  1,243
  1,301
  1,359
  1,417
  1,476
  1,536
  1,597
  1,660
Retained Cash Flow (-), $m
  -581
  -872
  -1,272
  -1,801
  -2,484
  -3,342
  -4,394
  -5,656
  -7,143
  -8,863
  -10,820
  -13,020
  -15,461
  -18,140
  -21,053
  -24,193
  -27,555
  -31,132
  -34,918
  -38,909
  -43,101
  -47,490
  -52,074
  -56,855
  -61,833
  -67,011
  -72,393
  -77,985
  -83,794
  -89,829
Prev. year cash balance distribution, $m
  33
  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
  5
  8
  12
  18
  26
  37
  51
  69
  90
  116
  146
  182
  222
  268
  319
  375
  436
  502
  574
  650
  730
  816
  906
  1,000
  1,099
  1,202
  1,309
  1,421
  1,538
  1,659
Cash available for distribution, $m
  -507
  -814
  -1,191
  -1,692
  -2,340
  -3,157
  -4,162
  -5,372
  -6,801
  -8,459
  -10,353
  -12,487
  -14,859
  -17,470
  -20,314
  -23,386
  -26,681
  -30,193
  -33,916
  -37,845
  -41,976
  -46,305
  -50,831
  -55,554
  -60,474
  -65,593
  -70,917
  -76,449
  -82,197
  -88,169
Discount rate, %
  5.70
  5.99
  6.28
  6.60
  6.93
  7.27
  7.64
  8.02
  8.42
  8.84
  9.28
  9.75
  10.24
  10.75
  11.29
  11.85
  12.44
  13.06
  13.72
  14.40
  15.12
  15.88
  16.67
  17.51
  18.38
  19.30
  20.27
  21.28
  22.34
  23.46
PV of cash for distribution, $m
  -479
  -725
  -992
  -1,310
  -1,674
  -2,071
  -2,486
  -2,898
  -3,285
  -3,625
  -3,899
  -4,089
  -4,186
  -4,184
  -4,085
  -3,898
  -3,634
  -3,312
  -2,949
  -2,566
  -2,180
  -1,809
  -1,465
  -1,156
  -890
  -667
  -486
  -345
  -237
  -158
Current shareholders' claim on cash, %
  31.0
  10.0
  3.4
  1.2
  0.4
  0.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

CARBO Ceramics Inc. is a technology company that provides products and services to the global oil and gas and industrial markets. The Company operates through two segments: Oilfield Technologies and Services, and Environmental Products and Services. The Company's oilfield technologies and services segment includes the manufacturing and selling of proppant products for use primarily in the hydraulic fracturing of oil and natural gas wells, Fracpro software for the design of fracture treatments, and StrataGen consulting services for the optimizing of well completions. The Company's environmental products and services segment is intended to protect operators' assets, minimize environmental risks, and lower lease operating expense (LOE). The Company, through Asset Guard Products Inc. (AGPI), provides spill prevention, containment and countermeasure systems for the oil and gas industry. The Company manufactures various ceramic proppants.

FINANCIAL RATIOS  of  CARBO Ceramics (CRR)

Valuation Ratios
P/E Ratio -2.6
Price to Sales 2
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow -11.6
Price to Free Cash Flow -8.3
Growth Rates
Sales Growth Rate -63.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -88.9%
Cap. Spend. - 3 Yr. Gr. Rate -41.2%
Financial Strength
Quick Ratio 7
Current Ratio 0
LT Debt to Equity 10.9%
Total Debt to Equity 13.1%
Interest Coverage -25
Management Effectiveness
Return On Assets -9.9%
Ret/ On Assets - 3 Yr. Avg. -5.3%
Return On Total Capital -11.2%
Ret/ On T. Cap. - 3 Yr. Avg. -6.1%
Return On Equity -12.7%
Return On Equity - 3 Yr. Avg. -7%
Asset Turnover 0.1
Profitability Ratios
Gross Margin -82.5%
Gross Margin - 3 Yr. Avg. -24.9%
EBITDA Margin -75.7%
EBITDA Margin - 3 Yr. Avg. -30.6%
Operating Margin -122.3%
Oper. Margin - 3 Yr. Avg. -55.4%
Pre-Tax Margin -127.2%
Pre-Tax Margin - 3 Yr. Avg. -57.1%
Net Profit Margin -77.7%
Net Profit Margin - 3 Yr. Avg. -36.1%
Effective Tax Rate 38.9%
Eff/ Tax Rate - 3 Yr. Avg. 37.2%
Payout Ratio 0%

CRR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CRR stock intrinsic value calculation we used $189 million for the last fiscal year's total revenue generated by CARBO Ceramics. The default revenue input number comes from 2017 income statement of CARBO Ceramics. 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 CRR stock valuation model: a) initial revenue growth rate of 60% 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 5.7%, whose default value for CRR is calculated based on our internal credit rating of CARBO Ceramics, 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 CARBO Ceramics.
    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 CRR stock the variable cost ratio is equal to 211.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $11 million in the base year in the intrinsic value calculation for CRR 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 8.9% for CARBO Ceramics.

Corporate tax rate of 27% is the nominal tax rate for CARBO Ceramics. 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 CRR stock is equal to 2.6%.

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 CRR are equal to 223.9%.

Life of production assets of 10 years is the average useful life of capital assets used in CARBO Ceramics 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 CRR is equal to 31.6%. 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 - $406 million for CARBO Ceramics - 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 27 million for CARBO Ceramics 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 CARBO Ceramics at the current share price and the inputted number of shares is $0.2 billion.

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COMPANY NEWS

▶ Carbo Ceramics: 2Q Earnings Snapshot   [Jul-26-18 06:30AM  Associated Press]
▶ CARBO Ceramics Inc. to Host Earnings Call   [Apr-26-18 10:10AM  ACCESSWIRE]
▶ Carbo Ceramics: 1Q Earnings Snapshot   [07:36AM  Associated Press]
▶ Is CARBO Ceramics a Buy?   [Apr-25-18 08:03AM  Motley Fool]
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▶ Stocks To Watch: Carbo Ceramics Sees RS Rating Rise To 93   [Jan-05-18 03:00AM  Investor's Business Daily]
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▶ How Did Schlumberger React to Crude Oil Prices Last Week?   [Oct-31-17 10:39AM  Market Realist]
▶ Is There Now An Opportunity In CARBO Ceramics Inc (CRR)?   [Oct-26-17 11:10AM  Simply Wall St.]
▶ Carbo Ceramics reports 3Q loss   [06:35AM  Associated Press]
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▶ Schlumbergers Price Forecast for the Next 7 Days   [Oct-02-17 05:35PM  Market Realist]
▶ Whats Schlumbergers Next 7-Day Stock Price Forecast?   [Sep-26-17 01:36PM  Market Realist]
▶ Whats Schlumbergers 7-Day Stock Price Forecast This Week?   [Sep-18-17 01:36PM  Market Realist]
▶ Weatherfords 7-Day Stock Price Forecast   [Sep-15-17 10:39AM  Market Realist]
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▶ Story Stocks from Briefing.com   [Jul-27-17 11:14AM  Briefing.com]
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