Intrinsic value of Eastman Chemical - EMN

Previous Close

$88.82

  Intrinsic Value

$67.88

stock screener

  Rating & Target

sell

-24%

Previous close

$88.82

 
Intrinsic value

$67.88

 
Up/down potential

-24%

 
Rating

sell

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

We calculate the intrinsic value of EMN 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 12.9

 

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, %
  -6.63
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
  5.08
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
Revenue, $m
  9,008
  9,485
  9,985
  10,509
  11,057
  11,632
  12,234
  12,865
  13,527
  14,221
  14,948
  15,711
  16,512
  17,351
  18,232
  19,156
  20,126
  21,143
  22,211
  23,332
  24,508
  25,742
  27,038
  28,398
  29,825
  31,323
  32,896
  34,548
  36,281
  38,101
  40,011
Variable operating expenses, $m
 
  8,105
  8,509
  8,932
  9,375
  9,839
  10,325
  10,835
  11,369
  11,929
  12,517
  12,687
  13,333
  14,011
  14,722
  15,468
  16,251
  17,073
  17,935
  18,840
  19,790
  20,786
  21,832
  22,930
  24,083
  25,293
  26,563
  27,896
  29,296
  30,765
  32,308
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
  7,710
  8,105
  8,509
  8,932
  9,375
  9,839
  10,325
  10,835
  11,369
  11,929
  12,517
  12,687
  13,333
  14,011
  14,722
  15,468
  16,251
  17,073
  17,935
  18,840
  19,790
  20,786
  21,832
  22,930
  24,083
  25,293
  26,563
  27,896
  29,296
  30,765
  32,308
Operating income, $m
  1,298
  1,380
  1,476
  1,577
  1,683
  1,793
  1,909
  2,031
  2,158
  2,292
  2,432
  3,025
  3,179
  3,341
  3,510
  3,688
  3,875
  4,071
  4,276
  4,492
  4,718
  4,956
  5,205
  5,467
  5,742
  6,030
  6,333
  6,651
  6,985
  7,335
  7,703
EBITDA, $m
  1,878
  2,214
  2,330
  2,453
  2,580
  2,715
  2,855
  3,002
  3,157
  3,319
  3,489
  3,667
  3,853
  4,049
  4,255
  4,471
  4,697
  4,934
  5,184
  5,445
  5,720
  6,008
  6,310
  6,627
  6,960
  7,310
  7,677
  8,063
  8,467
  8,892
  9,338
Interest expense (income), $m
  280
  263
  286
  310
  336
  363
  391
  420
  451
  483
  517
  553
  590
  629
  670
  713
  758
  806
  855
  908
  962
  1,020
  1,080
  1,143
  1,210
  1,279
  1,353
  1,429
  1,510
  1,595
  1,684
Earnings before tax, $m
  1,049
  1,117
  1,190
  1,267
  1,347
  1,431
  1,519
  1,611
  1,707
  1,808
  1,915
  2,472
  2,589
  2,711
  2,840
  2,975
  3,116
  3,265
  3,421
  3,584
  3,756
  3,936
  4,125
  4,324
  4,532
  4,751
  4,981
  5,222
  5,475
  5,740
  6,019
Tax expense, $m
  190
  302
  321
  342
  364
  386
  410
  435
  461
  488
  517
  667
  699
  732
  767
  803
  841
  882
  924
  968
  1,014
  1,063
  1,114
  1,167
  1,224
  1,283
  1,345
  1,410
  1,478
  1,550
  1,625
Net income, $m
  854
  816
  869
  925
  983
  1,044
  1,109
  1,176
  1,246
  1,320
  1,398
  1,805
  1,890
  1,979
  2,073
  2,172
  2,275
  2,383
  2,497
  2,617
  2,742
  2,873
  3,012
  3,156
  3,309
  3,468
  3,636
  3,812
  3,997
  4,190
  4,394

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  181
  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
  15,457
  16,077
  16,924
  17,812
  18,741
  19,715
  20,736
  21,806
  22,927
  24,103
  25,336
  26,630
  27,986
  29,409
  30,902
  32,468
  34,112
  35,836
  37,646
  39,545
  41,539
  43,631
  45,827
  48,132
  50,551
  53,091
  55,757
  58,555
  61,493
  64,577
  67,815
Adjusted assets (=assets-cash), $m
  15,276
  16,077
  16,924
  17,812
  18,741
  19,715
  20,736
  21,806
  22,927
  24,103
  25,336
  26,630
  27,986
  29,409
  30,902
  32,468
  34,112
  35,836
  37,646
  39,545
  41,539
  43,631
  45,827
  48,132
  50,551
  53,091
  55,757
  58,555
  61,493
  64,577
  67,815
Revenue / Adjusted assets
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
Average production assets, $m
  7,763
  8,176
  8,607
  9,059
  9,531
  10,027
  10,546
  11,090
  11,660
  12,258
  12,886
  13,543
  14,233
  14,957
  15,716
  16,513
  17,349
  18,226
  19,146
  20,112
  21,126
  22,190
  23,307
  24,479
  25,709
  27,001
  28,357
  29,780
  31,274
  32,843
  34,490
Working capital, $m
  1,071
  1,233
  1,298
  1,366
  1,437
  1,512
  1,590
  1,672
  1,759
  1,849
  1,943
  2,042
  2,147
  2,256
  2,370
  2,490
  2,616
  2,749
  2,887
  3,033
  3,186
  3,346
  3,515
  3,692
  3,877
  4,072
  4,277
  4,491
  4,717
  4,953
  5,201
Total debt, $m
  6,594
  6,971
  7,567
  8,191
  8,844
  9,529
  10,246
  10,998
  11,787
  12,613
  13,480
  14,390
  15,343
  16,344
  17,393
  18,494
  19,650
  20,862
  22,134
  23,469
  24,871
  26,341
  27,885
  29,505
  31,206
  32,992
  34,866
  36,833
  38,899
  41,067
  43,343
Total liabilities, $m
  10,925
  11,302
  11,898
  12,522
  13,175
  13,860
  14,577
  15,329
  16,118
  16,944
  17,811
  18,721
  19,674
  20,675
  21,724
  22,825
  23,981
  25,193
  26,465
  27,800
  29,202
  30,672
  32,216
  33,836
  35,537
  37,323
  39,197
  41,164
  43,230
  45,398
  47,674
Total equity, $m
  4,532
  4,775
  5,027
  5,290
  5,566
  5,855
  6,159
  6,476
  6,809
  7,159
  7,525
  7,909
  8,312
  8,735
  9,178
  9,643
  10,131
  10,643
  11,181
  11,745
  12,337
  12,958
  13,611
  14,295
  15,014
  15,768
  16,560
  17,391
  18,263
  19,179
  20,141
Total liabilities and equity, $m
  15,457
  16,077
  16,925
  17,812
  18,741
  19,715
  20,736
  21,805
  22,927
  24,103
  25,336
  26,630
  27,986
  29,410
  30,902
  32,468
  34,112
  35,836
  37,646
  39,545
  41,539
  43,630
  45,827
  48,131
  50,551
  53,091
  55,757
  58,555
  61,493
  64,577
  67,815
Debt-to-equity ratio
  1.455
  1.460
  1.510
  1.550
  1.590
  1.630
  1.660
  1.700
  1.730
  1.760
  1.790
  1.820
  1.850
  1.870
  1.900
  1.920
  1.940
  1.960
  1.980
  2.000
  2.020
  2.030
  2.050
  2.060
  2.080
  2.090
  2.110
  2.120
  2.130
  2.140
  2.150
Adjusted equity ratio
  0.285
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  854
  816
  869
  925
  983
  1,044
  1,109
  1,176
  1,246
  1,320
  1,398
  1,805
  1,890
  1,979
  2,073
  2,172
  2,275
  2,383
  2,497
  2,617
  2,742
  2,873
  3,012
  3,156
  3,309
  3,468
  3,636
  3,812
  3,997
  4,190
  4,394
Depreciation, amort., depletion, $m
  580
  834
  854
  875
  898
  921
  946
  972
  999
  1,027
  1,057
  642
  675
  709
  745
  783
  822
  864
  907
  953
  1,001
  1,052
  1,105
  1,160
  1,218
  1,280
  1,344
  1,411
  1,482
  1,557
  1,635
Funds from operations, $m
  1,292
  1,649
  1,723
  1,800
  1,881
  1,966
  2,054
  2,147
  2,245
  2,347
  2,454
  2,447
  2,564
  2,688
  2,818
  2,954
  3,097
  3,247
  3,405
  3,570
  3,743
  3,925
  4,116
  4,317
  4,527
  4,748
  4,980
  5,223
  5,479
  5,747
  6,029
Change in working capital, $m
  -93
  62
  65
  68
  71
  75
  78
  82
  86
  90
  95
  99
  104
  109
  115
  120
  126
  132
  139
  146
  153
  160
  168
  177
  186
  195
  204
  215
  225
  237
  248
Cash from operations, $m
  1,385
  1,587
  1,658
  1,732
  1,810
  1,891
  1,976
  2,065
  2,159
  2,257
  2,360
  2,347
  2,460
  2,579
  2,704
  2,834
  2,971
  3,115
  3,266
  3,424
  3,590
  3,765
  3,948
  4,140
  4,341
  4,553
  4,775
  5,009
  5,253
  5,510
  5,780
Maintenance CAPEX, $m
  0
  -368
  -388
  -408
  -429
  -452
  -475
  -500
  -526
  -553
  -581
  -611
  -642
  -675
  -709
  -745
  -783
  -822
  -864
  -907
  -953
  -1,001
  -1,052
  -1,105
  -1,160
  -1,218
  -1,280
  -1,344
  -1,411
  -1,482
  -1,557
New CAPEX, $m
  -626
  -414
  -431
  -451
  -473
  -495
  -519
  -544
  -570
  -598
  -627
  -658
  -690
  -724
  -759
  -797
  -836
  -877
  -920
  -966
  -1,014
  -1,064
  -1,117
  -1,172
  -1,230
  -1,292
  -1,356
  -1,423
  -1,494
  -1,569
  -1,647
Cash from investing activities, $m
  -655
  -782
  -819
  -859
  -902
  -947
  -994
  -1,044
  -1,096
  -1,151
  -1,208
  -1,269
  -1,332
  -1,399
  -1,468
  -1,542
  -1,619
  -1,699
  -1,784
  -1,873
  -1,967
  -2,065
  -2,169
  -2,277
  -2,390
  -2,510
  -2,636
  -2,767
  -2,905
  -3,051
  -3,204
Free cash flow, $m
  730
  805
  840
  873
  908
  944
  982
  1,022
  1,063
  1,106
  1,152
  1,079
  1,129
  1,181
  1,235
  1,293
  1,353
  1,416
  1,482
  1,551
  1,623
  1,699
  1,779
  1,863
  1,951
  2,043
  2,140
  2,241
  2,348
  2,460
  2,577
Issuance/(repayment) of debt, $m
  -428
  558
  596
  624
  653
  685
  718
  752
  788
  827
  867
  909
  954
  1,000
  1,049
  1,101
  1,155
  1,212
  1,272
  1,335
  1,401
  1,471
  1,544
  1,620
  1,701
  1,785
  1,874
  1,967
  2,065
  2,168
  2,276
Issuance/(repurchase) of shares, $m
  -130
  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  
  -566
  558
  596
  624
  653
  685
  718
  752
  788
  827
  867
  909
  954
  1,000
  1,049
  1,101
  1,155
  1,212
  1,272
  1,335
  1,401
  1,471
  1,544
  1,620
  1,701
  1,785
  1,874
  1,967
  2,065
  2,168
  2,276
Total cash flow (excl. dividends), $m
  160
  1,363
  1,435
  1,497
  1,561
  1,629
  1,699
  1,774
  1,851
  1,933
  2,019
  1,988
  2,082
  2,181
  2,285
  2,394
  2,508
  2,628
  2,754
  2,886
  3,025
  3,170
  3,323
  3,483
  3,652
  3,828
  4,014
  4,209
  4,413
  4,628
  4,853
Retained Cash Flow (-), $m
  -591
  -243
  -252
  -264
  -276
  -289
  -303
  -318
  -333
  -349
  -366
  -384
  -403
  -423
  -443
  -465
  -488
  -512
  -537
  -564
  -592
  -621
  -652
  -685
  -719
  -754
  -792
  -831
  -873
  -916
  -962
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
 
  1,120
  1,184
  1,233
  1,285
  1,339
  1,396
  1,456
  1,518
  1,584
  1,652
  1,604
  1,679
  1,759
  1,842
  1,929
  2,020
  2,116
  2,216
  2,322
  2,433
  2,549
  2,671
  2,799
  2,933
  3,074
  3,222
  3,378
  3,541
  3,712
  3,892
Discount rate, %
 
  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
  34.58
PV of cash for distribution, $m
 
  1,034
  1,000
  945
  887
  824
  758
  690
  621
  553
  485
  391
  335
  283
  235
  192
  154
  121
  93
  70
  52
  37
  26
  18
  12
  8
  5
  3
  2
  1
  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

Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company's segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets. In the AM segment, it produces and markets its polymers, films, and plastics with differentiated performance properties for end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support its specialty operating segments. Its product lines in Fibers segment include Acetate Tow, Acetate Yarn and Acetyl Chemical Products.

FINANCIAL RATIOS  of  Eastman Chemical (EMN)

Valuation Ratios
P/E Ratio 15.2
Price to Sales 1.4
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 9.4
Price to Free Cash Flow 17.1
Growth Rates
Sales Growth Rate -6.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4%
Cap. Spend. - 3 Yr. Gr. Rate 5.1%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 139.3%
Total Debt to Equity 145.5%
Interest Coverage 5
Management Effectiveness
Return On Assets 7%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 7.7%
Ret/ On T. Cap. - 3 Yr. Avg. 7.8%
Return On Equity 20.2%
Return On Equity - 3 Yr. Avg. 21.2%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 26.1%
Gross Margin - 3 Yr. Avg. 25.4%
EBITDA Margin 21.2%
EBITDA Margin - 3 Yr. Avg. 19.5%
Operating Margin 14.4%
Oper. Margin - 3 Yr. Avg. 13.7%
Pre-Tax Margin 11.6%
Pre-Tax Margin - 3 Yr. Avg. 11.2%
Net Profit Margin 9.5%
Net Profit Margin - 3 Yr. Avg. 8.7%
Effective Tax Rate 18.1%
Eff/ Tax Rate - 3 Yr. Avg. 22.1%
Payout Ratio 31.9%

EMN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EMN stock intrinsic value calculation we used $9008 million for the last fiscal year's total revenue generated by Eastman Chemical. The default revenue input number comes from 2016 income statement of Eastman Chemical. 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 EMN stock valuation model: a) initial revenue growth rate of 5.3% 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 8.4%, whose default value for EMN is calculated based on our internal credit rating of Eastman Chemical, 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 Eastman Chemical.
    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 EMN stock the variable cost ratio is equal to 85.7%.

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 EMN 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 4.1% for Eastman Chemical.

Corporate tax rate of 27% is the nominal tax rate for Eastman Chemical. 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 EMN 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 EMN are equal to 86.2%.

Life of production assets of 21.1 years is the average useful life of capital assets used in Eastman Chemical 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 EMN is equal to 13%. 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 - $4532 million for Eastman Chemical - 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 144.9 million for Eastman Chemical 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 Eastman Chemical at the current share price and the inputted number of shares is $12.9 billion.

RELATED COMPANIES Price Int.Val. Rating
CE Celanese Serie 105.60 30.40  str.sell
LYB LyondellBasell 98.94 325.28  str.buy
WLK Westlake Chemi 83.82 447.23  str.buy
KRA Kraton 41.99 503.15  str.buy
TSE Trinseo 72.00 74.76  hold
HUN Huntsman 28.97 6.66  str.sell

COMPANY NEWS

▶ Eastman Chemical Provides Its Fiscal Guidance   [Oct-16-17 08:29AM  Market Realist]
▶ Whats Celaneses Valuation ahead of 3Q17 Earnings?   [Oct-12-17 09:09AM  Market Realist]
▶ Eastman Chemical: No health impact from plant explosions   [Oct-05-17 01:01PM  Associated Press]
▶ Why Celanese Trades at Premium Compared to Its Peers   [Oct-02-17 07:41AM  Market Realist]
▶ Eastman Chemical Rose to 3-Year Highs   [07:41AM  Market Realist]
▶ Eastman Chemical topping IQ100 leaders   [Sep-28-17 02:50PM  CNBC Videos]
▶ Eastman Chemical Hikes Prices of Amines   [Sep-26-17 07:40AM  Market Realist]
▶ Whats Driving Eastman Chemicals Stock Price?   [Sep-19-17 09:07AM  Market Realist]
▶ PolyOnes Valuation Compared to Its Peers   [08:07AM  Market Realist]
▶ What Eastman Chemicals Valuations Suggest   [07:37AM  Market Realist]
▶ Eastman Chemical Hikes the Prices of Esters and Alcohols   [Sep-18-17 01:21PM  Market Realist]
▶ What Analysts Recommend for Eastman Chemical   [10:38AM  Market Realist]
▶ How Huntsmans Valuation Compares   [09:36AM  Market Realist]
▶ Eastman Chemical Hiked Acids and Aldehydes Prices   [Sep-12-17 07:44AM  Market Realist]
▶ Eastman Chemical to Expand CHDM Capacity   [Sep-05-17 10:37AM  Market Realist]
▶ Eastman Board Declares Dividend   [Aug-03-17 03:53PM  GlobeNewswire]
▶ Eastman Issues 2017 Sustainability Report   [12:56PM  GlobeNewswire]
▶ Eastman Chemical tops Street 2Q forecasts   [Jul-27-17 10:08PM  Associated Press]
▶ Where Eastman Chemical Plans Its Next Price Hike   [Jul-18-17 09:08AM  Market Realist]
▶ Why Eastman Chemical Is Trading at a Premium to Its Peers   [Jul-10-17 09:06AM  Market Realist]
▶ Why Eastman Chemicals Debt Is Headed South   [12:06PM  Market Realist]
▶ What Are Celaneses Latest Valuations?   [Jul-03-17 09:08AM  Market Realist]
▶ Why LyondellBasell Is Trading at a Discount to Peers   [Jun-29-17 09:07AM  Market Realist]
▶ The top 25% in a year   [Jun-19-17 01:54PM  CNBC Videos]
▶ Analysts Latest Recommendations for Eastman Chemical   [Jun-01-17 10:38AM  Market Realist]
▶ Eastman Chemicals Stock Performance in 2017   [07:39AM  Market Realist]
Financial statements of EMN
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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