Intrinsic value of Consolidated Edison - ED

Previous Close

$84.86

  Intrinsic Value

$48.42

stock screener

  Rating & Target

sell

-43%

Previous close

$84.86

 
Intrinsic value

$48.42

 
Up/down potential

-43%

 
Rating

sell

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

We calculate the intrinsic value of ED 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 2016), $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 26.3

 

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, %
  -3.82
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  10,984
  12,317
  12,600
  12,924
  13,287
  13,690
  14,132
  14,613
  15,134
  15,695
  16,298
  16,942
  17,630
  18,362
  19,140
  19,966
  20,841
  21,767
  22,746
  23,781
  24,874
  26,027
  27,243
  28,524
  29,875
  31,297
  32,794
  34,371
  36,029
  37,774
  39,609
Variable operating expenses, $m
 
  9,939
  10,166
  10,426
  10,718
  11,042
  11,397
  11,784
  12,202
  12,653
  13,137
  13,612
  14,165
  14,753
  15,378
  16,042
  16,745
  17,489
  18,276
  19,107
  19,985
  20,911
  21,888
  22,918
  24,003
  25,146
  26,349
  27,615
  28,948
  30,350
  31,824
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
  9,500
  9,939
  10,166
  10,426
  10,718
  11,042
  11,397
  11,784
  12,202
  12,653
  13,137
  13,612
  14,165
  14,753
  15,378
  16,042
  16,745
  17,489
  18,276
  19,107
  19,985
  20,911
  21,888
  22,918
  24,003
  25,146
  26,349
  27,615
  28,948
  30,350
  31,824
Operating income, $m
  2,575
  2,378
  2,434
  2,497
  2,569
  2,648
  2,735
  2,829
  2,932
  3,042
  3,160
  3,330
  3,465
  3,609
  3,762
  3,924
  4,096
  4,278
  4,471
  4,674
  4,889
  5,115
  5,354
  5,606
  5,872
  6,151
  6,446
  6,755
  7,081
  7,424
  7,785
EBITDA, $m
  3,791
  2,987
  3,056
  3,135
  3,223
  3,320
  3,428
  3,544
  3,671
  3,807
  3,953
  4,109
  4,276
  4,454
  4,642
  4,843
  5,055
  5,279
  5,517
  5,768
  6,033
  6,313
  6,608
  6,918
  7,246
  7,591
  7,954
  8,336
  8,739
  9,162
  9,607
Interest expense (income), $m
  664
  662
  694
  728
  767
  811
  860
  914
  972
  1,035
  1,103
  1,176
  1,254
  1,337
  1,426
  1,520
  1,620
  1,726
  1,838
  1,957
  2,082
  2,214
  2,354
  2,501
  2,656
  2,820
  2,992
  3,173
  3,364
  3,565
  3,776
Earnings before tax, $m
  1,943
  1,716
  1,740
  1,769
  1,802
  1,837
  1,875
  1,916
  1,960
  2,007
  2,058
  2,154
  2,211
  2,272
  2,336
  2,404
  2,476
  2,552
  2,633
  2,717
  2,807
  2,901
  3,001
  3,105
  3,215
  3,331
  3,454
  3,582
  3,717
  3,859
  4,009
Tax expense, $m
  698
  463
  470
  478
  486
  496
  506
  517
  529
  542
  556
  582
  597
  613
  631
  649
  669
  689
  711
  734
  758
  783
  810
  838
  868
  900
  932
  967
  1,004
  1,042
  1,082
Net income, $m
  1,245
  1,252
  1,270
  1,292
  1,315
  1,341
  1,369
  1,399
  1,431
  1,465
  1,502
  1,573
  1,614
  1,658
  1,705
  1,755
  1,808
  1,863
  1,922
  1,984
  2,049
  2,118
  2,190
  2,267
  2,347
  2,432
  2,521
  2,615
  2,714
  2,817
  2,926

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  776
  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
  48,255
  48,490
  49,605
  50,880
  52,312
  53,897
  55,638
  57,532
  59,584
  61,793
  64,165
  66,702
  69,409
  72,291
  75,355
  78,605
  82,050
  85,696
  89,552
  93,627
  97,929
  102,468
  107,255
  112,301
  117,617
  123,217
  129,112
  135,317
  141,847
  148,717
  155,942
Adjusted assets (=assets-cash), $m
  47,479
  48,490
  49,605
  50,880
  52,312
  53,897
  55,638
  57,532
  59,584
  61,793
  64,165
  66,702
  69,409
  72,291
  75,355
  78,605
  82,050
  85,696
  89,552
  93,627
  97,929
  102,468
  107,255
  112,301
  117,617
  123,217
  129,112
  135,317
  141,847
  148,717
  155,942
Revenue / Adjusted assets
  0.231
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
Average production assets, $m
  2,776
  2,833
  2,898
  2,972
  3,056
  3,149
  3,250
  3,361
  3,481
  3,610
  3,749
  3,897
  4,055
  4,223
  4,402
  4,592
  4,793
  5,006
  5,232
  5,470
  5,721
  5,986
  6,266
  6,561
  6,871
  7,198
  7,543
  7,905
  8,287
  8,688
  9,110
Working capital, $m
  -437
  -123
  -126
  -129
  -133
  -137
  -141
  -146
  -151
  -157
  -163
  -169
  -176
  -184
  -191
  -200
  -208
  -218
  -227
  -238
  -249
  -260
  -272
  -285
  -299
  -313
  -328
  -344
  -360
  -378
  -396
Total debt, $m
  15,828
  15,766
  16,545
  17,436
  18,437
  19,545
  20,762
  22,086
  23,520
  25,064
  26,722
  28,496
  30,388
  32,403
  34,544
  36,816
  39,224
  41,773
  44,468
  47,316
  50,323
  53,496
  56,842
  60,369
  64,085
  67,999
  72,120
  76,458
  81,022
  85,824
  90,875
Total liabilities, $m
  33,957
  33,895
  34,674
  35,565
  36,566
  37,674
  38,891
  40,215
  41,649
  43,193
  44,851
  46,625
  48,517
  50,532
  52,673
  54,945
  57,353
  59,902
  62,597
  65,445
  68,452
  71,625
  74,971
  78,498
  82,214
  86,128
  90,249
  94,587
  99,151
  103,953
  109,004
Total equity, $m
  14,298
  14,596
  14,931
  15,315
  15,746
  16,223
  16,747
  17,317
  17,935
  18,600
  19,314
  20,077
  20,892
  21,760
  22,682
  23,660
  24,697
  25,795
  26,955
  28,182
  29,476
  30,843
  32,284
  33,803
  35,403
  37,088
  38,863
  40,731
  42,696
  44,764
  46,939
Total liabilities and equity, $m
  48,255
  48,491
  49,605
  50,880
  52,312
  53,897
  55,638
  57,532
  59,584
  61,793
  64,165
  66,702
  69,409
  72,292
  75,355
  78,605
  82,050
  85,697
  89,552
  93,627
  97,928
  102,468
  107,255
  112,301
  117,617
  123,216
  129,112
  135,318
  141,847
  148,717
  155,943
Debt-to-equity ratio
  1.107
  1.080
  1.110
  1.140
  1.170
  1.200
  1.240
  1.280
  1.310
  1.350
  1.380
  1.420
  1.450
  1.490
  1.520
  1.560
  1.590
  1.620
  1.650
  1.680
  1.710
  1.730
  1.760
  1.790
  1.810
  1.830
  1.860
  1.880
  1.900
  1.920
  1.940
Adjusted equity ratio
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,245
  1,252
  1,270
  1,292
  1,315
  1,341
  1,369
  1,399
  1,431
  1,465
  1,502
  1,573
  1,614
  1,658
  1,705
  1,755
  1,808
  1,863
  1,922
  1,984
  2,049
  2,118
  2,190
  2,267
  2,347
  2,432
  2,521
  2,615
  2,714
  2,817
  2,926
Depreciation, amort., depletion, $m
  1,216
  609
  622
  637
  654
  673
  693
  715
  739
  765
  793
  779
  811
  845
  880
  918
  959
  1,001
  1,046
  1,094
  1,144
  1,197
  1,253
  1,312
  1,374
  1,440
  1,509
  1,581
  1,657
  1,738
  1,822
Funds from operations, $m
  3,862
  1,862
  1,893
  1,929
  1,969
  2,013
  2,061
  2,114
  2,170
  2,230
  2,295
  2,352
  2,425
  2,503
  2,586
  2,674
  2,766
  2,864
  2,968
  3,078
  3,193
  3,315
  3,444
  3,579
  3,722
  3,872
  4,030
  4,196
  4,371
  4,555
  4,748
Change in working capital, $m
  403
  -2
  -3
  -3
  -4
  -4
  -4
  -5
  -5
  -6
  -6
  -6
  -7
  -7
  -8
  -8
  -9
  -9
  -10
  -10
  -11
  -12
  -12
  -13
  -14
  -14
  -15
  -16
  -17
  -17
  -18
Cash from operations, $m
  3,459
  1,864
  1,895
  1,932
  1,973
  2,017
  2,066
  2,118
  2,175
  2,236
  2,301
  2,358
  2,432
  2,510
  2,594
  2,682
  2,775
  2,874
  2,978
  3,088
  3,204
  3,327
  3,456
  3,592
  3,735
  3,886
  4,045
  4,212
  4,387
  4,572
  4,767
Maintenance CAPEX, $m
  0
  -555
  -567
  -580
  -594
  -611
  -630
  -650
  -672
  -696
  -722
  -750
  -779
  -811
  -845
  -880
  -918
  -959
  -1,001
  -1,046
  -1,094
  -1,144
  -1,197
  -1,253
  -1,312
  -1,374
  -1,440
  -1,509
  -1,581
  -1,657
  -1,738
New CAPEX, $m
  -5,158
  -57
  -65
  -74
  -84
  -93
  -102
  -111
  -120
  -129
  -139
  -148
  -158
  -168
  -179
  -190
  -201
  -213
  -225
  -238
  -251
  -265
  -280
  -295
  -311
  -327
  -344
  -363
  -381
  -401
  -422
Cash from investing activities, $m
  -4,976
  -612
  -632
  -654
  -678
  -704
  -732
  -761
  -792
  -825
  -861
  -898
  -937
  -979
  -1,024
  -1,070
  -1,119
  -1,172
  -1,226
  -1,284
  -1,345
  -1,409
  -1,477
  -1,548
  -1,623
  -1,701
  -1,784
  -1,872
  -1,962
  -2,058
  -2,160
Free cash flow, $m
  -1,517
  1,252
  1,264
  1,278
  1,295
  1,313
  1,334
  1,358
  1,383
  1,410
  1,440
  1,460
  1,495
  1,531
  1,570
  1,611
  1,655
  1,702
  1,751
  1,804
  1,859
  1,917
  1,979
  2,044
  2,112
  2,185
  2,261
  2,341
  2,425
  2,514
  2,607
Issuance/(repayment) of debt, $m
  1,380
  714
  780
  891
  1,000
  1,109
  1,216
  1,324
  1,434
  1,545
  1,658
  1,773
  1,892
  2,015
  2,141
  2,272
  2,408
  2,549
  2,695
  2,848
  3,007
  3,173
  3,346
  3,527
  3,716
  3,914
  4,121
  4,338
  4,564
  4,802
  5,051
Issuance/(repurchase) of shares, $m
  753
  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  
  2,108
  714
  780
  891
  1,000
  1,109
  1,216
  1,324
  1,434
  1,545
  1,658
  1,773
  1,892
  2,015
  2,141
  2,272
  2,408
  2,549
  2,695
  2,848
  3,007
  3,173
  3,346
  3,527
  3,716
  3,914
  4,121
  4,338
  4,564
  4,802
  5,051
Total cash flow (excl. dividends), $m
  591
  1,965
  2,043
  2,169
  2,295
  2,422
  2,551
  2,682
  2,817
  2,955
  3,098
  3,234
  3,387
  3,546
  3,711
  3,884
  4,063
  4,251
  4,447
  4,652
  4,866
  5,090
  5,325
  5,571
  5,829
  6,099
  6,381
  6,678
  6,989
  7,316
  7,658
Retained Cash Flow (-), $m
  -1,246
  -298
  -336
  -384
  -431
  -477
  -524
  -570
  -617
  -665
  -714
  -764
  -815
  -868
  -922
  -978
  -1,037
  -1,098
  -1,161
  -1,226
  -1,295
  -1,366
  -1,441
  -1,519
  -1,600
  -1,685
  -1,775
  -1,868
  -1,965
  -2,068
  -2,175
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
 
  1,668
  1,708
  1,785
  1,864
  1,945
  2,027
  2,112
  2,199
  2,290
  2,384
  2,470
  2,572
  2,678
  2,789
  2,905
  3,026
  3,153
  3,286
  3,425
  3,571
  3,724
  3,884
  4,052
  4,228
  4,413
  4,607
  4,810
  5,024
  5,248
  5,483
Discount rate, %
 
  8.00
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
PV of cash for distribution, $m
 
  1,544
  1,453
  1,386
  1,308
  1,223
  1,131
  1,035
  937
  838
  740
  642
  552
  468
  390
  320
  258
  204
  159
  121
  90
  65
  46
  32
  22
  14
  9
  6
  3
  2
  1
Current shareholders' claim on cash, %
  100
  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

Consolidated Edison, Inc. (Con Edison) is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and Con Edison Transmission, Inc. (Con Edison Transmission). CECONY's principal business operations are its regulated electric, gas and steam delivery businesses. CECONY provides electricity, natural gas and steam to customers in New York City and Westchester County. O&R's principal business operations are its regulated electric and gas delivery businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission, through its subsidiaries, invests in electric transmission facilities and gas pipeline and storage facilities.

FINANCIAL RATIOS  of  Consolidated Edison (ED)

Valuation Ratios
P/E Ratio 20.8
Price to Sales 2.1
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 7.5
Price to Free Cash Flow -15.2
Growth Rates
Sales Growth Rate -3.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 53.8%
Cap. Spend. - 3 Yr. Gr. Rate 13.7%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 103.1%
Total Debt to Equity 110.7%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 3.5%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 4.4%
Return On Equity 9.1%
Return On Equity - 3 Yr. Avg. 9.1%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 31.7%
EBITDA Margin - 3 Yr. Avg. 28.4%
Operating Margin 21.3%
Oper. Margin - 3 Yr. Avg. 19.1%
Pre-Tax Margin 16.1%
Pre-Tax Margin - 3 Yr. Avg. 14.4%
Net Profit Margin 10.3%
Net Profit Margin - 3 Yr. Avg. 9.4%
Effective Tax Rate 35.9%
Eff/ Tax Rate - 3 Yr. Avg. 34.6%
Payout Ratio 61.3%

ED stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ED stock intrinsic value calculation we used $12075 million for the last fiscal year's total revenue generated by Consolidated Edison. The default revenue input number comes from 2016 income statement of Consolidated Edison. 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 ED stock valuation model: a) initial revenue growth rate of 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 8%, whose default value for ED is calculated based on our internal credit rating of Consolidated Edison, 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 Consolidated Edison.
    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 ED stock the variable cost ratio is equal to 80.7%.

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 ED 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 4.4% for Consolidated Edison.

Corporate tax rate of 27% is the nominal tax rate for Consolidated Edison. 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 ED 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 ED are equal to 23%.

Life of production assets of 2.6 years is the average useful life of capital assets used in Consolidated Edison 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 ED is equal to -1%. 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 - $14298 million for Consolidated Edison - 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 309.804 million for Consolidated Edison 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 Consolidated Edison at the current share price and the inputted number of shares is $26.3 billion.

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COMPANY NEWS

▶ Con Edison Declares Common Stock Dividend   [Oct-19-17 03:07PM  GlobeNewswire]
▶ Heres Where to Find Dividend Yield in a Stingy Market   [Sep-18-17 01:15PM  InvestorPlace]
▶ Stocks With Rising Relative Strength: Consolidated Edison   [03:00AM  Investor's Business Daily]
▶ Consolidated Edison Earns RS Rating Upgrade   [03:00AM  Investor's Business Daily]
▶ Consolidated Edisons Dividend Trajectory   [Aug-16-17 09:32AM  Market Realist]
▶ 3 Top Stocks for Low-Risk Investors   [Aug-12-17 10:49AM  Motley Fool]
▶ Why Consolidated Edison Is a Dividend Investor's Dream   [Aug-09-17 08:18AM  Motley Fool]
▶ Con Ed misses 2Q profit forecasts   [02:50AM  Associated Press]
▶ [$$] New York City Swelters as Temperatures Top 90 Degrees   [12:50AM  The Wall Street Journal]
▶ Con Edison Declares Common Stock Dividend   [Jul-20-17 04:16PM  GlobeNewswire]
▶ Con Edison to Report 2nd Quarter 2017 Earnings on August 3   [Jul-17-17 05:23PM  GlobeNewswire]
▶ The Top Dividend-Growing Utilities Stocks   [Jul-12-17 02:44PM  Market Realist]
▶ 3 Value Stocks Perfect for Retirement   [Jun-29-17 08:53AM  Motley Fool]
▶ 3 Top Stocks for Risk-Averse Investors   [Jun-15-17 09:15AM  Motley Fool]
▶ [$$] Cuomo, ConEd Dispute Cause of Subway Disruptions   [05:30AM  The Wall Street Journal]
▶ 3 Dividend Aristocrats To Buy -- And 2 To Sell   [Jun-04-17 08:21AM  Forbes]
▶ Consolidated Edison: Cramer's Top Takeaways   [Jun-01-17 06:29AM  TheStreet.com]
▶ These Utility Stocks Could Be Bearish   [May-08-17 05:05PM  Market Realist]
▶ Con Ed beats 1Q profit forecasts   [May-04-17 05:52PM  Associated Press]
▶ Which Utility Stocks Could Be a Concern for Investors?   [May-01-17 02:05PM  Market Realist]
▶ Why these Utility Stocks Look Weak   [Apr-24-17 04:36PM  Market Realist]
▶ Top 10 Dividend Stocks to Buy Before the Next Recession   [Apr-21-17 07:00AM  TheStreet.com]
▶ Con Edison Declares Common Stock Dividend   [Apr-20-17 04:48PM  Marketwired]
▶ Con Edison to Report 1st Quarter 2017 Earnings on May 4   [Apr-18-17 03:26PM  Marketwired]
▶ Traders Are Most Bearish on These Utility Stocks   [Apr-11-17 09:07AM  Market Realist]
▶ Con Edison's Podcast Explores Power Industry Trends   [Apr-04-17 09:42AM  Marketwired]
▶ Analysts Are the Most Bearish on These Utility Stocks   [Apr-03-17 05:35PM  Market Realist]
▶ Why These Utility Stocks Should Concern You   [Mar-29-17 02:35PM  Market Realist]
▶ New York City Passes Century Mark for Solar Generation   [Mar-21-17 12:15PM  Marketwired]
Financial statements of ED
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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