Intrinsic value of ENI ADR - E

Previous Close

$33.66

  Intrinsic Value

$7.48

stock screener

  Rating & Target

str. sell

-78%

Previous close

$33.66

 
Intrinsic value

$7.48

 
Up/down potential

-78%

 
Rating

str. sell

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

We calculate the intrinsic value of E 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of ENI ADR (E) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -22.86
  18.90
  17.51
  16.26
  15.13
  14.12
  13.21
  12.39
  11.65
  10.98
  10.39
  9.85
  9.36
  8.93
  8.53
  8.18
  7.86
  7.58
  7.32
  7.09
  6.88
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
  5.81
  5.73
  5.65
Revenue, $m
  58,852
  69,975
  82,228
  95,597
  110,064
  125,605
  142,194
  159,808
  178,423
  198,020
  218,585
  240,108
  262,587
  286,024
  310,431
  335,824
  362,227
  389,668
  418,184
  447,818
  478,617
  510,637
  543,935
  578,577
  614,634
  652,180
  691,297
  732,070
  774,591
  818,955
  865,265
Variable operating expenses, $m
 
  72,818
  85,544
  99,430
  114,455
  130,596
  147,827
  166,121
  185,455
  205,809
  227,168
  249,384
  272,731
  297,074
  322,424
  348,798
  376,220
  404,722
  434,340
  465,119
  497,108
  530,364
  564,949
  600,929
  638,379
  677,376
  718,004
  760,353
  804,516
  850,594
  898,693
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
  56,762
  72,818
  85,544
  99,430
  114,455
  130,596
  147,827
  166,121
  185,455
  205,809
  227,168
  249,384
  272,731
  297,074
  322,424
  348,798
  376,220
  404,722
  434,340
  465,119
  497,108
  530,364
  564,949
  600,929
  638,379
  677,376
  718,004
  760,353
  804,516
  850,594
  898,693
Operating income, $m
  2,091
  -2,843
  -3,316
  -3,833
  -4,391
  -4,992
  -5,633
  -6,313
  -7,032
  -7,789
  -8,584
  -9,276
  -10,145
  -11,050
  -11,993
  -12,974
  -13,994
  -15,054
  -16,156
  -17,301
  -18,490
  -19,727
  -21,014
  -22,352
  -23,745
  -25,196
  -26,707
  -28,282
  -29,925
  -31,639
  -33,428
EBITDA, $m
  10,069
  6,605
  7,761
  9,023
  10,389
  11,856
  13,421
  15,084
  16,841
  18,691
  20,632
  22,663
  24,785
  26,997
  29,301
  31,698
  34,190
  36,780
  39,471
  42,269
  45,176
  48,198
  51,341
  54,611
  58,014
  61,558
  65,250
  69,099
  73,112
  77,299
  81,670
Interest expense (income), $m
  823
  760
  1,209
  1,707
  2,250
  2,838
  3,470
  4,144
  4,860
  5,617
  6,413
  7,249
  8,124
  9,038
  9,990
  10,982
  12,014
  13,087
  14,203
  15,362
  16,566
  17,818
  19,120
  20,473
  21,881
  23,347
  24,873
  26,463
  28,120
  29,848
  31,651
Earnings before tax, $m
  941
  -3,602
  -4,525
  -5,539
  -6,642
  -7,830
  -9,103
  -10,457
  -11,892
  -13,406
  -14,997
  -16,525
  -18,268
  -20,088
  -21,983
  -23,956
  -26,008
  -28,142
  -30,359
  -32,662
  -35,057
  -37,546
  -40,133
  -42,825
  -45,626
  -48,542
  -51,580
  -54,745
  -58,045
  -61,487
  -65,079
Tax expense, $m
  2,043
  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
  -1,545
  -3,602
  -4,525
  -5,539
  -6,642
  -7,830
  -9,103
  -10,457
  -11,892
  -13,406
  -14,997
  -16,525
  -18,268
  -20,088
  -21,983
  -23,956
  -26,008
  -28,142
  -30,359
  -32,662
  -35,057
  -37,546
  -40,133
  -42,825
  -45,626
  -48,542
  -51,580
  -54,745
  -58,045
  -61,487
  -65,079

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  12,747
  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
  131,448
  141,079
  165,782
  192,736
  221,903
  253,235
  286,682
  322,193
  359,723
  399,234
  440,695
  484,088
  529,408
  576,662
  625,870
  677,065
  730,295
  785,620
  843,113
  902,859
  964,955
  1,029,509
  1,096,643
  1,166,486
  1,239,181
  1,314,879
  1,393,744
  1,475,948
  1,561,676
  1,651,120
  1,744,486
Adjusted assets (=assets-cash), $m
  118,701
  141,079
  165,782
  192,736
  221,903
  253,235
  286,682
  322,193
  359,723
  399,234
  440,695
  484,088
  529,408
  576,662
  625,870
  677,065
  730,295
  785,620
  843,113
  902,859
  964,955
  1,029,509
  1,096,643
  1,166,486
  1,239,181
  1,314,879
  1,393,744
  1,475,948
  1,561,676
  1,651,120
  1,744,486
Revenue / Adjusted assets
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
  0.496
Average production assets, $m
  75,181
  89,358
  105,005
  122,077
  140,552
  160,397
  181,582
  204,075
  227,846
  252,871
  279,132
  306,618
  335,323
  365,253
  396,421
  428,848
  462,563
  497,606
  534,021
  571,864
  611,194
  652,083
  694,605
  738,843
  784,887
  832,834
  882,786
  934,854
  989,153
  1,045,806
  1,104,943
Working capital, $m
  10,844
  6,088
  7,154
  8,317
  9,576
  10,928
  12,371
  13,903
  15,523
  17,228
  19,017
  20,889
  22,845
  24,884
  27,008
  29,217
  31,514
  33,901
  36,382
  38,960
  41,640
  44,425
  47,322
  50,336
  53,473
  56,740
  60,143
  63,690
  67,389
  71,249
  75,278
Total debt, $m
  28,749
  34,538
  48,767
  64,293
  81,093
  99,140
  118,406
  138,860
  160,478
  183,236
  207,117
  232,112
  258,216
  285,434
  313,778
  343,267
  373,927
  405,794
  438,910
  473,324
  509,091
  546,274
  584,943
  625,173
  667,045
  710,647
  756,074
  803,423
  852,802
  904,322
  958,101
Total liabilities, $m
  75,471
  81,261
  95,490
  111,016
  127,816
  145,863
  165,129
  185,583
  207,201
  229,959
  253,840
  278,835
  304,939
  332,157
  360,501
  389,990
  420,650
  452,517
  485,633
  520,047
  555,814
  592,997
  631,666
  671,896
  713,768
  757,370
  802,797
  850,146
  899,525
  951,045
  1,004,824
Total equity, $m
  55,976
  59,817
  70,291
  81,720
  94,087
  107,372
  121,553
  136,610
  152,523
  169,275
  186,855
  205,253
  224,469
  244,505
  265,369
  287,076
  309,645
  333,103
  357,480
  382,812
  409,141
  436,512
  464,976
  494,590
  525,413
  557,509
  590,948
  625,802
  662,150
  700,075
  739,662
Total liabilities and equity, $m
  131,447
  141,078
  165,781
  192,736
  221,903
  253,235
  286,682
  322,193
  359,724
  399,234
  440,695
  484,088
  529,408
  576,662
  625,870
  677,066
  730,295
  785,620
  843,113
  902,859
  964,955
  1,029,509
  1,096,642
  1,166,486
  1,239,181
  1,314,879
  1,393,745
  1,475,948
  1,561,675
  1,651,120
  1,744,486
Debt-to-equity ratio
  0.514
  0.580
  0.690
  0.790
  0.860
  0.920
  0.970
  1.020
  1.050
  1.080
  1.110
  1.130
  1.150
  1.170
  1.180
  1.200
  1.210
  1.220
  1.230
  1.240
  1.240
  1.250
  1.260
  1.260
  1.270
  1.270
  1.280
  1.280
  1.290
  1.290
  1.300
Adjusted equity ratio
  0.394
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,545
  -3,602
  -4,525
  -5,539
  -6,642
  -7,830
  -9,103
  -10,457
  -11,892
  -13,406
  -14,997
  -16,525
  -18,268
  -20,088
  -21,983
  -23,956
  -26,008
  -28,142
  -30,359
  -32,662
  -35,057
  -37,546
  -40,133
  -42,825
  -45,626
  -48,542
  -51,580
  -54,745
  -58,045
  -61,487
  -65,079
Depreciation, amort., depletion, $m
  7,978
  9,447
  11,077
  12,856
  14,780
  16,847
  19,054
  21,397
  23,873
  26,480
  29,216
  31,939
  34,929
  38,047
  41,294
  44,672
  48,184
  51,834
  55,627
  59,569
  63,666
  67,925
  72,355
  76,963
  81,759
  86,754
  91,957
  97,381
  103,037
  108,938
  115,098
Funds from operations, $m
  8,844
  5,845
  6,552
  7,316
  8,138
  9,017
  9,951
  10,940
  11,981
  13,074
  14,218
  15,414
  16,661
  17,960
  19,311
  20,715
  22,175
  23,692
  25,269
  26,907
  28,609
  30,380
  32,221
  34,138
  36,133
  38,211
  40,377
  42,636
  44,992
  47,451
  50,019
Change in working capital, $m
  -187
  968
  1,066
  1,163
  1,259
  1,352
  1,443
  1,532
  1,620
  1,705
  1,789
  1,873
  1,956
  2,039
  2,123
  2,209
  2,297
  2,387
  2,481
  2,578
  2,680
  2,786
  2,897
  3,014
  3,137
  3,267
  3,403
  3,547
  3,699
  3,860
  4,029
Cash from operations, $m
  9,031
  4,877
  5,486
  6,153
  6,880
  7,665
  8,508
  9,407
  10,361
  11,369
  12,429
  13,542
  14,705
  15,921
  17,187
  18,506
  19,878
  21,305
  22,788
  24,329
  25,930
  27,594
  29,324
  31,124
  32,996
  34,945
  36,974
  39,089
  41,293
  43,592
  45,990
Maintenance CAPEX, $m
  0
  -7,831
  -9,308
  -10,938
  -12,716
  -14,641
  -16,708
  -18,915
  -21,258
  -23,734
  -26,341
  -29,076
  -31,939
  -34,929
  -38,047
  -41,294
  -44,672
  -48,184
  -51,834
  -55,627
  -59,569
  -63,666
  -67,925
  -72,355
  -76,963
  -81,759
  -86,754
  -91,957
  -97,381
  -103,037
  -108,938
New CAPEX, $m
  -9,689
  -14,177
  -15,647
  -17,073
  -18,474
  -19,846
  -21,185
  -22,493
  -23,771
  -25,025
  -26,261
  -27,485
  -28,705
  -29,930
  -31,168
  -32,427
  -33,716
  -35,042
  -36,415
  -37,842
  -39,331
  -40,888
  -42,522
  -44,238
  -46,044
  -47,947
  -49,952
  -52,068
  -54,299
  -56,653
  -59,137
Cash from investing activities, $m
  -4,689
  -22,008
  -24,955
  -28,011
  -31,190
  -34,487
  -37,893
  -41,408
  -45,029
  -48,759
  -52,602
  -56,561
  -60,644
  -64,859
  -69,215
  -73,721
  -78,388
  -83,226
  -88,249
  -93,469
  -98,900
  -104,554
  -110,447
  -116,593
  -123,007
  -129,706
  -136,706
  -144,025
  -151,680
  -159,690
  -168,075
Free cash flow, $m
  4,342
  -17,131
  -19,468
  -21,858
  -24,311
  -26,821
  -29,385
  -32,000
  -34,668
  -37,390
  -40,172
  -43,020
  -45,939
  -48,939
  -52,028
  -55,214
  -58,509
  -61,921
  -65,462
  -69,141
  -72,970
  -76,960
  -81,123
  -85,469
  -90,011
  -94,761
  -99,732
  -104,936
  -110,387
  -116,098
  -122,085
Issuance/(repayment) of debt, $m
  -808
  12,834
  14,229
  15,526
  16,800
  18,047
  19,265
  20,455
  21,617
  22,758
  23,882
  24,995
  26,104
  27,218
  28,344
  29,489
  30,661
  31,867
  33,116
  34,413
  35,767
  37,183
  38,669
  40,230
  41,872
  43,602
  45,426
  47,350
  49,379
  51,520
  53,779
Issuance/(repurchase) of shares, $m
  0
  13,146
  14,999
  16,968
  19,008
  21,115
  23,284
  25,514
  27,805
  30,158
  32,577
  34,924
  37,484
  40,123
  42,847
  45,663
  48,578
  51,599
  54,735
  57,995
  61,385
  64,917
  68,598
  72,439
  76,449
  80,638
  85,018
  89,599
  94,393
  99,411
  104,666
Cash from financing (excl. dividends), $m  
  -812
  25,980
  29,228
  32,494
  35,808
  39,162
  42,549
  45,969
  49,422
  52,916
  56,459
  59,919
  63,588
  67,341
  71,191
  75,152
  79,239
  83,466
  87,851
  92,408
  97,152
  102,100
  107,267
  112,669
  118,321
  124,240
  130,444
  136,949
  143,772
  150,931
  158,445
Total cash flow (excl. dividends), $m
  3,532
  8,849
  9,759
  10,636
  11,498
  12,341
  13,165
  13,969
  14,755
  15,526
  16,286
  16,899
  17,649
  18,402
  19,163
  19,937
  20,730
  21,545
  22,390
  23,267
  24,182
  25,140
  26,144
  27,199
  28,310
  29,480
  30,713
  32,013
  33,385
  34,833
  36,360
Retained Cash Flow (-), $m
  2,593
  -13,146
  -14,999
  -16,968
  -19,008
  -21,115
  -23,284
  -25,514
  -27,805
  -30,158
  -32,577
  -34,924
  -37,484
  -40,123
  -42,847
  -45,663
  -48,578
  -51,599
  -54,735
  -57,995
  -61,385
  -64,917
  -68,598
  -72,439
  -76,449
  -80,638
  -85,018
  -89,599
  -94,393
  -99,411
  -104,666
Prev. year cash balance distribution, $m
 
  5,702
  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
 
  1,405
  -5,239
  -6,332
  -7,511
  -8,774
  -10,119
  -11,546
  -13,050
  -14,633
  -16,291
  -18,025
  -19,835
  -21,721
  -23,684
  -25,726
  -27,848
  -30,054
  -32,346
  -34,728
  -37,203
  -39,777
  -42,454
  -45,239
  -48,139
  -51,159
  -54,306
  -57,586
  -61,008
  -64,579
  -68,306
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
 
  1,347
  -4,797
  -5,510
  -6,184
  -6,801
  -7,344
  -7,800
  -8,157
  -8,406
  -8,541
  -8,560
  -8,464
  -8,259
  -7,951
  -7,553
  -7,077
  -6,539
  -5,957
  -5,347
  -4,727
  -4,114
  -3,523
  -2,965
  -2,452
  -1,990
  -1,584
  -1,236
  -944
  -705
  -514
Current shareholders' claim on cash, %
  100
  80.8
  65.7
  53.9
  44.5
  36.9
  30.8
  25.9
  21.8
  18.5
  15.7
  13.4
  11.5
  9.9
  8.5
  7.4
  6.4
  5.6
  4.8
  4.2
  3.7
  3.2
  2.8
  2.5
  2.2
  1.9
  1.7
  1.5
  1.3
  1.1
  1.0

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company's segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

FINANCIAL RATIOS  of  ENI ADR (E)

Valuation Ratios
P/E Ratio -78.5
Price to Sales 2.1
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 13.4
Price to Free Cash Flow -184.2
Growth Rates
Sales Growth Rate -22.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -18.8%
Cap. Spend. - 3 Yr. Gr. Rate -6.4%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 38.8%
Total Debt to Equity 51.4%
Interest Coverage 2
Management Effectiveness
Return On Assets -1.8%
Ret/ On Assets - 3 Yr. Avg. -2%
Return On Total Capital -1.8%
Ret/ On T. Cap. - 3 Yr. Avg. -3.5%
Return On Equity -2.7%
Return On Equity - 3 Yr. Avg. -5.1%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 48.7%
Gross Margin - 3 Yr. Avg. 42.8%
EBITDA Margin 16.6%
EBITDA Margin - 3 Yr. Avg. 13.7%
Operating Margin 3.6%
Oper. Margin - 3 Yr. Avg. 2.9%
Pre-Tax Margin 1.6%
Pre-Tax Margin - 3 Yr. Avg. 1.4%
Net Profit Margin -2.6%
Net Profit Margin - 3 Yr. Avg. -4.5%
Effective Tax Rate 217.1%
Eff/ Tax Rate - 3 Yr. Avg. 74.1%
Payout Ratio -196.8%

E stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the E stock intrinsic value calculation we used $58852 million for the last fiscal year's total revenue generated by ENI ADR. The default revenue input number comes from 2016 income statement of ENI ADR. 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 E stock valuation model: a) initial revenue growth rate of 18.9% 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 E is calculated based on our internal credit rating of ENI ADR, 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 ENI ADR.
    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 E stock the variable cost ratio is equal to 104.1%.

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 E 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 3.5% for ENI ADR.

Corporate tax rate of 27% is the nominal tax rate for ENI ADR. 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 E 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 E are equal to 127.7%.

Life of production assets of 9.6 years is the average useful life of capital assets used in ENI ADR 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 E is equal to 8.7%. 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 - $55976 million for ENI ADR - 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 1825.25 million for ENI ADR 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 ENI ADR at the current share price and the inputted number of shares is $61.4 billion.

RELATED COMPANIES Price Int.Val. Rating
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CVX Chevron 109.89 18.50  str.sell
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COMPANY NEWS

▶ [$$] Israel bolsters Egypt ties with $15bn gas deal   [Feb-19-18 02:04AM  Financial Times]
▶ [$$] Oil industrys swagger takes knock from gas boom   [Feb-18-18 11:20PM  Financial Times]
▶ [$$] Eni reports record oil and gas production   [06:10AM  Financial Times]
▶ Hail shale, but deepwater oil fights back   [Feb-15-18 04:27AM  Reuters]
▶ [$$] Inside the Bribery Scandal Sweeping Through the Oil Industry   [Feb-14-18 01:26AM  The Wall Street Journal]
▶ [$$] Inside the Bribery Scandal Sweeping Through the Oil Industry   [Feb-13-18 01:27PM  The Wall Street Journal]
▶ Oil Crushed By Market Meltdown   [03:00PM  Oilprice.com]
▶ What ExxonMobils Moving Averages Suggest   [Jan-25-18 07:33AM  Market Realist]
▶ Totals Dividend Yield: 4th Place in the Top 8   [09:01AM  Market Realist]
▶ Shells Dividend Yield: One of the Best   [Jan-16-18 03:25PM  Market Realist]
▶ Norway Desperately Needs Large Oil Discoveries   [Jan-15-18 06:00PM  Oilprice.com]
▶ Quest for new oil discoveries still on back burner   [Jan-04-18 02:11AM  Reuters]
▶ What 2018 May Bring for Oil & Gas Exploration   [Jan-03-18 01:56PM  Zacks]
▶ New Strong Buy Stocks for December 29th   [Dec-29-17 09:20AM  Zacks]
▶ Chevron Corporation a Rare Energy Dividend Aristocrat   [Dec-28-17 12:10PM  InvestorPlace]
▶ A New Era For Oil And Gas Majors   [Dec-26-17 07:00PM  Oilprice.com]
▶ As energy markets evolve, blockchain powers up   [Dec-22-17 05:44PM  Reuters]
▶ Oil Trades Sideways Ahead Of Christmas   [03:00PM  Oilprice.com]
▶ [$$] Shell, Eni Face Italian Charges Over Nigerian Deal   [12:37AM  The Wall Street Journal]
▶ Bribery Scandal Blemishes Big Week For Eni   [Dec-20-17 06:00PM  Oilprice.com]
▶ [$$] Shell, Eni Face Italian Charges Over Nigerian Deal   [05:59PM  The Wall Street Journal]
▶ Zohr Begins Production   [Dec-19-17 07:00PM  Rigzone.com]
▶ Oil Market On Edge Following Outages   [03:00PM  Oilprice.com]
▶ ETFs with exposure to Eni SpA : December 14, 2017   [Dec-14-17 01:15PM  Capital Cube]
▶ Egypt Takes Giant Step Towards Energy Independence   [Dec-03-17 11:00AM  Oilprice.com]
▶ OPEC Extension Sends Oil Prices Soaring   [Dec-01-17 03:30PM  Oilprice.com]
▶ Pakistan in LNG talks with France, Italy and Spain   [Nov-30-17 12:37PM  Reuters]
▶ Venezuela Could Lose A Lot More Oil Production   [Nov-26-17 07:00PM  Oilprice.com]
▶ Flurry Of Bullish News Boosts Oil Prices   [Nov-24-17 03:00PM  Oilprice.com]
▶ ETFs with exposure to Eni SpA : November 16, 2017   [Nov-16-17 11:29AM  Capital Cube]
▶ Stock Market News For Nov 15, 2017   [Nov-15-17 09:21AM  Zacks]
Financial statements of E
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