Intrinsic value of Delek US Holdings, Inc. - DK

Previous Close

$37.51

  Intrinsic Value

$249.16

stock screener

  Rating & Target

str. buy

+564%

Previous close

$37.51

 
Intrinsic value

$249.16

 
Up/down potential

+564%

 
Rating

str. buy

We calculate the intrinsic value of DK 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 2.9

 

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, %
  13.60
  12.74
  11.97
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.05
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
Revenue, $m
  11,625
  13,106
  14,674
  16,328
  18,065
  19,886
  21,789
  23,775
  25,844
  27,997
  30,236
  32,564
  34,983
  37,497
  40,110
  42,825
  45,649
  48,586
  51,643
  54,825
  58,139
  61,593
  65,195
  68,951
  72,872
  76,965
  81,241
  85,710
  90,381
  95,266
Variable operating expenses, $m
  9,914
  11,165
  12,490
  13,886
  15,354
  16,892
  18,499
  20,176
  21,924
  23,742
  25,537
  27,504
  29,547
  31,670
  33,877
  36,170
  38,555
  41,036
  43,617
  46,305
  49,104
  52,022
  55,063
  58,236
  61,547
  65,005
  68,616
  72,390
  76,336
  80,462
Fixed operating expenses, $m
  916
  936
  956
  977
  999
  1,021
  1,043
  1,066
  1,090
  1,114
  1,138
  1,163
  1,189
  1,215
  1,242
  1,269
  1,297
  1,326
  1,355
  1,385
  1,415
  1,446
  1,478
  1,511
  1,544
  1,578
  1,612
  1,648
  1,684
  1,721
Total operating expenses, $m
  10,830
  12,101
  13,446
  14,863
  16,353
  17,913
  19,542
  21,242
  23,014
  24,856
  26,675
  28,667
  30,736
  32,885
  35,119
  37,439
  39,852
  42,362
  44,972
  47,690
  50,519
  53,468
  56,541
  59,747
  63,091
  66,583
  70,228
  74,038
  78,020
  82,183
Operating income, $m
  795
  1,005
  1,228
  1,464
  1,712
  1,973
  2,246
  2,532
  2,830
  3,141
  3,560
  3,897
  4,247
  4,612
  4,991
  5,386
  5,797
  6,225
  6,671
  7,135
  7,620
  8,125
  8,653
  9,205
  9,781
  10,383
  11,013
  11,671
  12,361
  13,083
EBITDA, $m
  1,083
  1,318
  1,567
  1,830
  2,107
  2,398
  2,703
  3,021
  3,354
  3,700
  4,060
  4,436
  4,826
  5,232
  5,655
  6,094
  6,552
  7,028
  7,525
  8,042
  8,581
  9,144
  9,732
  10,345
  10,986
  11,656
  12,356
  13,089
  13,856
  14,659
Interest expense (income), $m
  0
  139
  183
  230
  279
  331
  386
  443
  503
  566
  631
  699
  769
  843
  919
  998
  1,080
  1,166
  1,255
  1,347
  1,443
  1,544
  1,648
  1,757
  1,870
  1,988
  2,112
  2,241
  2,375
  2,516
  2,663
Earnings before tax, $m
  655
  821
  998
  1,184
  1,381
  1,587
  1,803
  2,029
  2,264
  2,510
  2,862
  3,128
  3,405
  3,693
  3,993
  4,306
  4,631
  4,970
  5,323
  5,692
  6,076
  6,478
  6,897
  7,334
  7,792
  8,271
  8,772
  9,296
  9,845
  10,420
Tax expense, $m
  177
  222
  269
  320
  373
  429
  487
  548
  611
  678
  773
  845
  919
  997
  1,078
  1,163
  1,250
  1,342
  1,437
  1,537
  1,641
  1,749
  1,862
  1,980
  2,104
  2,233
  2,368
  2,510
  2,658
  2,813
Net income, $m
  478
  600
  728
  865
  1,008
  1,159
  1,316
  1,481
  1,653
  1,832
  2,089
  2,283
  2,486
  2,696
  2,915
  3,143
  3,381
  3,628
  3,886
  4,155
  4,436
  4,729
  5,035
  5,354
  5,688
  6,038
  6,403
  6,786
  7,187
  7,607

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
  6,545
  7,379
  8,262
  9,193
  10,172
  11,197
  12,269
  13,387
  14,552
  15,764
  17,025
  18,336
  19,698
  21,113
  22,584
  24,113
  25,703
  27,357
  29,078
  30,870
  32,736
  34,681
  36,709
  38,824
  41,031
  43,336
  45,744
  48,260
  50,890
  53,641
Adjusted assets (=assets-cash), $m
  6,545
  7,379
  8,262
  9,193
  10,172
  11,197
  12,269
  13,387
  14,552
  15,764
  17,025
  18,336
  19,698
  21,113
  22,584
  24,113
  25,703
  27,357
  29,078
  30,870
  32,736
  34,681
  36,709
  38,824
  41,031
  43,336
  45,744
  48,260
  50,890
  53,641
Revenue / Adjusted assets
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
  1.776
Average production assets, $m
  2,999
  3,381
  3,786
  4,213
  4,661
  5,131
  5,622
  6,134
  6,668
  7,223
  7,801
  8,402
  9,026
  9,674
  10,348
  11,049
  11,777
  12,535
  13,324
  14,145
  15,000
  15,891
  16,820
  17,789
  18,801
  19,857
  20,960
  22,113
  23,318
  24,579
Working capital, $m
  -325
  -367
  -411
  -457
  -506
  -557
  -610
  -666
  -724
  -784
  -847
  -912
  -980
  -1,050
  -1,123
  -1,199
  -1,278
  -1,360
  -1,446
  -1,535
  -1,628
  -1,725
  -1,825
  -1,931
  -2,040
  -2,155
  -2,275
  -2,400
  -2,531
  -2,667
Total debt, $m
  2,348
  2,946
  3,579
  4,247
  4,949
  5,684
  6,452
  7,254
  8,089
  8,958
  9,862
  10,802
  11,779
  12,793
  13,848
  14,945
  16,085
  17,270
  18,504
  19,789
  21,127
  22,522
  23,975
  25,492
  27,075
  28,727
  30,454
  32,258
  34,144
  36,116
Total liabilities, $m
  4,693
  5,291
  5,924
  6,592
  7,293
  8,028
  8,797
  9,598
  10,433
  11,303
  12,207
  13,147
  14,123
  15,138
  16,193
  17,289
  18,429
  19,615
  20,849
  22,134
  23,472
  24,866
  26,320
  27,837
  29,420
  31,072
  32,798
  34,602
  36,488
  38,460
Total equity, $m
  1,852
  2,088
  2,338
  2,602
  2,879
  3,169
  3,472
  3,788
  4,118
  4,461
  4,818
  5,189
  5,574
  5,975
  6,391
  6,824
  7,274
  7,742
  8,229
  8,736
  9,264
  9,815
  10,389
  10,987
  11,612
  12,264
  12,946
  13,658
  14,402
  15,180
Total liabilities and equity, $m
  6,545
  7,379
  8,262
  9,194
  10,172
  11,197
  12,269
  13,386
  14,551
  15,764
  17,025
  18,336
  19,697
  21,113
  22,584
  24,113
  25,703
  27,357
  29,078
  30,870
  32,736
  34,681
  36,709
  38,824
  41,032
  43,336
  45,744
  48,260
  50,890
  53,640
Debt-to-equity ratio
  1.270
  1.410
  1.530
  1.630
  1.720
  1.790
  1.860
  1.910
  1.960
  2.010
  2.050
  2.080
  2.110
  2.140
  2.170
  2.190
  2.210
  2.230
  2.250
  2.270
  2.280
  2.290
  2.310
  2.320
  2.330
  2.340
  2.350
  2.360
  2.370
  2.380
Adjusted equity ratio
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283
  0.283

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  478
  600
  728
  865
  1,008
  1,159
  1,316
  1,481
  1,653
  1,832
  2,089
  2,283
  2,486
  2,696
  2,915
  3,143
  3,381
  3,628
  3,886
  4,155
  4,436
  4,729
  5,035
  5,354
  5,688
  6,038
  6,403
  6,786
  7,187
  7,607
Depreciation, amort., depletion, $m
  288
  313
  339
  366
  395
  425
  457
  489
  524
  559
  500
  539
  579
  620
  663
  708
  755
  804
  854
  907
  962
  1,019
  1,078
  1,140
  1,205
  1,273
  1,344
  1,418
  1,495
  1,576
Funds from operations, $m
  767
  913
  1,067
  1,231
  1,403
  1,584
  1,773
  1,970
  2,177
  2,391
  2,589
  2,822
  3,064
  3,316
  3,578
  3,851
  4,136
  4,432
  4,740
  5,062
  5,397
  5,747
  6,113
  6,495
  6,894
  7,311
  7,747
  8,204
  8,682
  9,182
Change in working capital, $m
  -39
  -41
  -44
  -46
  -49
  -51
  -53
  -56
  -58
  -60
  -63
  -65
  -68
  -70
  -73
  -76
  -79
  -82
  -86
  -89
  -93
  -97
  -101
  -105
  -110
  -115
  -120
  -125
  -131
  -137
Cash from operations, $m
  806
  954
  1,111
  1,277
  1,452
  1,635
  1,826
  2,026
  2,234
  2,452
  2,652
  2,887
  3,132
  3,387
  3,652
  3,928
  4,215
  4,514
  4,826
  5,151
  5,490
  5,844
  6,214
  6,600
  7,003
  7,425
  7,867
  8,329
  8,812
  9,319
Maintenance CAPEX, $m
  -169
  -192
  -217
  -243
  -270
  -299
  -329
  -360
  -393
  -427
  -463
  -500
  -539
  -579
  -620
  -663
  -708
  -755
  -804
  -854
  -907
  -962
  -1,019
  -1,078
  -1,140
  -1,205
  -1,273
  -1,344
  -1,418
  -1,495
New CAPEX, $m
  -361
  -382
  -405
  -427
  -448
  -470
  -491
  -512
  -534
  -556
  -578
  -601
  -624
  -649
  -674
  -701
  -729
  -758
  -789
  -821
  -855
  -891
  -929
  -969
  -1,012
  -1,056
  -1,103
  -1,153
  -1,205
  -1,260
Cash from investing activities, $m
  -530
  -574
  -622
  -670
  -718
  -769
  -820
  -872
  -927
  -983
  -1,041
  -1,101
  -1,163
  -1,228
  -1,294
  -1,364
  -1,437
  -1,513
  -1,593
  -1,675
  -1,762
  -1,853
  -1,948
  -2,047
  -2,152
  -2,261
  -2,376
  -2,497
  -2,623
  -2,755
Free cash flow, $m
  275
  380
  490
  608
  733
  866
  1,006
  1,153
  1,308
  1,469
  1,611
  1,786
  1,969
  2,159
  2,357
  2,564
  2,778
  3,001
  3,234
  3,476
  3,728
  3,991
  4,266
  4,552
  4,851
  5,164
  5,491
  5,832
  6,190
  6,564
Issuance/(repayment) of debt, $m
  565
  598
  633
  668
  702
  735
  768
  802
  835
  869
  904
  940
  977
  1,015
  1,055
  1,096
  1,140
  1,186
  1,234
  1,285
  1,338
  1,394
  1,454
  1,517
  1,583
  1,653
  1,726
  1,804
  1,886
  1,972
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  
  565
  598
  633
  668
  702
  735
  768
  802
  835
  869
  904
  940
  977
  1,015
  1,055
  1,096
  1,140
  1,186
  1,234
  1,285
  1,338
  1,394
  1,454
  1,517
  1,583
  1,653
  1,726
  1,804
  1,886
  1,972
Total cash flow (excl. dividends), $m
  841
  978
  1,123
  1,275
  1,435
  1,601
  1,775
  1,955
  2,143
  2,338
  2,515
  2,726
  2,946
  3,174
  3,412
  3,660
  3,918
  4,187
  4,468
  4,760
  5,066
  5,386
  5,720
  6,069
  6,434
  6,817
  7,217
  7,636
  8,076
  8,536
Retained Cash Flow (-), $m
  -220
  -236
  -250
  -264
  -277
  -290
  -303
  -316
  -330
  -343
  -357
  -371
  -385
  -401
  -416
  -433
  -450
  -468
  -487
  -507
  -528
  -550
  -574
  -599
  -625
  -652
  -681
  -712
  -744
  -778
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
  621
  742
  873
  1,012
  1,158
  1,311
  1,471
  1,639
  1,813
  1,995
  2,158
  2,355
  2,560
  2,774
  2,996
  3,227
  3,468
  3,719
  3,981
  4,253
  4,538
  4,835
  5,146
  5,470
  5,809
  6,164
  6,536
  6,924
  7,331
  7,758
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  595
  679
  760
  833
  898
  952
  994
  1,024
  1,042
  1,046
  1,025
  1,005
  973
  931
  880
  820
  755
  685
  613
  540
  469
  401
  337
  279
  226
  180
  140
  107
  80
  58
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

Delek US Holdings, Inc. operates as an integrated energy company that operates in petroleum refining, wholesale distribution, and convenience store retailing businesses. The company operates in three segments: Refining, Logistics, and Retail. The Refining segment owns and operates two refineries in Tyler, Texas, and El Dorado, Arkansas; and produces various petroleum-based products used in transportation and industrial markets. This segment offers a range of products, such as gasoline, diesel, jet fuels, liquefied petroleum gas, and natural gas liquids, as well as biodiesel blended products. The Logistics segment gathers, transports, and stores crude oil and intermediate products, as well as markets, distributes, transports, and stores refined products. It also offers crude oil and refined product transportation services; terminalling; and wholesale marketing services to third parties in Texas, Tennessee, and Arkansas, as well as markets light products using third-party terminals. This segment owns approximately 400 miles of crude oil transportation pipelines, 245 miles of active refined product pipelines, 600-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 8.5 million barrels of active shell capacity. The Retail segment markets gasoline, diesel, and other refined petroleum products, as well as convenience merchandise. As of December 31, 2015, this segment operated a network of approximately 358 company-operated convenience store locations under the MAPCO Express, MAPCO Mart, Discount Food Mart, Fast Food and Fuel, East Coast, Delta Express, and Favorite Markets brands. The company serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, independent retail fuel operators, and the United States government. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

FINANCIAL RATIOS  of  Delek US Holdings, Inc. (DK)

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%

DK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DK stock intrinsic value calculation we used $10233 million for the last fiscal year's total revenue generated by Delek US Holdings, Inc.. The default revenue input number comes from 0001 income statement of Delek US Holdings, 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 DK stock valuation model: a) initial revenue growth rate of 13.6% 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 4.3%, whose default value for DK is calculated based on our internal credit rating of Delek US Holdings, 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 Delek US Holdings, 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 DK stock the variable cost ratio is equal to 85.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $896 million in the base year in the intrinsic value calculation for DK 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 7.8% for Delek US Holdings, Inc..

Corporate tax rate of 27% is the nominal tax rate for Delek US Holdings, 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 DK 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 DK are equal to 25.8%.

Life of production assets of 15.6 years is the average useful life of capital assets used in Delek US Holdings, 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 DK is equal to -2.8%. 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 - $1632.6 million for Delek US Holdings, 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 78.064 million for Delek US Holdings, 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 Delek US Holdings, Inc. at the current share price and the inputted number of shares is $2.9 billion.

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