Intrinsic value of Eastman Chemical - EMN

Previous Close

$80.77

  Intrinsic Value

$119.54

stock screener

  Rating & Target

buy

+48%

Previous close

$80.77

 
Intrinsic value

$119.54

 
Up/down potential

+48%

 
Rating

buy

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 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 11.4

 

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, %
  8.40
  8.06
  7.75
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
Revenue, $m
  10,351
  11,185
  12,053
  12,954
  13,891
  14,864
  15,876
  16,928
  18,022
  19,161
  20,346
  21,580
  22,866
  24,207
  25,606
  27,066
  28,589
  30,181
  31,844
  33,582
  35,400
  37,302
  39,292
  41,375
  43,556
  45,840
  48,233
  50,740
  53,367
  56,121
Variable operating expenses, $m
  7,447
  7,991
  8,557
  9,146
  9,757
  10,392
  11,053
  11,740
  12,454
  13,197
  13,281
  14,086
  14,926
  15,801
  16,714
  17,667
  18,661
  19,700
  20,786
  21,921
  23,107
  24,349
  25,648
  27,007
  28,431
  29,922
  31,484
  33,120
  34,835
  36,633
Fixed operating expenses, $m
  1,147
  1,172
  1,198
  1,224
  1,251
  1,278
  1,307
  1,335
  1,365
  1,395
  1,425
  1,457
  1,489
  1,522
  1,555
  1,589
  1,624
  1,660
  1,697
  1,734
  1,772
  1,811
  1,851
  1,892
  1,933
  1,976
  2,019
  2,064
  2,109
  2,155
Total operating expenses, $m
  8,594
  9,163
  9,755
  10,370
  11,008
  11,670
  12,360
  13,075
  13,819
  14,592
  14,706
  15,543
  16,415
  17,323
  18,269
  19,256
  20,285
  21,360
  22,483
  23,655
  24,879
  26,160
  27,499
  28,899
  30,364
  31,898
  33,503
  35,184
  36,944
  38,788
Operating income, $m
  1,758
  2,022
  2,298
  2,584
  2,883
  3,193
  3,516
  3,853
  4,204
  4,569
  5,640
  6,037
  6,452
  6,885
  7,337
  7,809
  8,304
  8,821
  9,362
  9,928
  10,521
  11,143
  11,794
  12,476
  13,192
  13,943
  14,730
  15,556
  16,423
  17,333
EBITDA, $m
  2,905
  3,206
  3,520
  3,847
  4,186
  4,540
  4,908
  5,291
  5,690
  6,105
  6,538
  6,990
  7,462
  7,954
  8,468
  9,005
  9,566
  10,154
  10,768
  11,411
  12,085
  12,790
  13,529
  14,304
  15,116
  15,968
  16,861
  17,798
  18,781
  19,812
Interest expense (income), $m
  280
  353
  401
  451
  503
  557
  613
  671
  732
  795
  860
  928
  999
  1,073
  1,150
  1,230
  1,314
  1,402
  1,493
  1,588
  1,688
  1,792
  1,901
  2,015
  2,134
  2,258
  2,389
  2,526
  2,669
  2,819
  2,977
Earnings before tax, $m
  1,405
  1,622
  1,847
  2,082
  2,326
  2,580
  2,845
  3,121
  3,409
  3,709
  4,712
  5,038
  5,379
  5,734
  6,106
  6,495
  6,902
  7,328
  7,773
  8,240
  8,729
  9,242
  9,779
  10,343
  10,934
  11,554
  12,204
  12,887
  13,604
  14,357
Tax expense, $m
  379
  438
  499
  562
  628
  697
  768
  843
  920
  1,001
  1,272
  1,360
  1,452
  1,548
  1,649
  1,754
  1,864
  1,978
  2,099
  2,225
  2,357
  2,495
  2,640
  2,792
  2,952
  3,119
  3,295
  3,480
  3,673
  3,876
Net income, $m
  1,025
  1,184
  1,348
  1,520
  1,698
  1,884
  2,077
  2,279
  2,489
  2,707
  3,439
  3,678
  3,926
  4,186
  4,458
  4,741
  5,038
  5,349
  5,675
  6,015
  6,372
  6,747
  7,139
  7,550
  7,982
  8,434
  8,909
  9,408
  9,931
  10,480

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
  17,339
  18,736
  20,189
  21,699
  23,268
  24,898
  26,593
  28,355
  30,188
  32,095
  34,080
  36,148
  38,302
  40,548
  42,891
  45,336
  47,888
  50,554
  53,340
  56,252
  59,297
  62,483
  65,816
  69,305
  72,958
  76,784
  80,792
  84,992
  89,392
  94,005
Adjusted assets (=assets-cash), $m
  17,339
  18,736
  20,189
  21,699
  23,268
  24,898
  26,593
  28,355
  30,188
  32,095
  34,080
  36,148
  38,302
  40,548
  42,891
  45,336
  47,888
  50,554
  53,340
  56,252
  59,297
  62,483
  65,816
  69,305
  72,958
  76,784
  80,792
  84,992
  89,392
  94,005
Revenue / Adjusted assets
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
  0.597
Average production assets, $m
  9,647
  10,425
  11,233
  12,073
  12,946
  13,853
  14,796
  15,777
  16,797
  17,858
  18,962
  20,113
  21,312
  22,561
  23,865
  25,225
  26,645
  28,129
  29,679
  31,299
  32,993
  34,766
  36,620
  38,562
  40,594
  42,723
  44,953
  47,290
  49,738
  52,305
Working capital, $m
  1,480
  1,600
  1,724
  1,852
  1,986
  2,126
  2,270
  2,421
  2,577
  2,740
  2,909
  3,086
  3,270
  3,462
  3,662
  3,870
  4,088
  4,316
  4,554
  4,802
  5,062
  5,334
  5,619
  5,917
  6,229
  6,555
  6,897
  7,256
  7,632
  8,025
Total debt, $m
  7,422
  8,347
  9,309
  10,309
  11,347
  12,427
  13,549
  14,715
  15,928
  17,191
  18,505
  19,874
  21,300
  22,787
  24,338
  25,956
  27,646
  29,411
  31,255
  33,183
  35,199
  37,307
  39,514
  41,824
  44,242
  46,775
  49,428
  52,208
  55,122
  58,175
Total liabilities, $m
  11,478
  12,403
  13,365
  14,365
  15,403
  16,483
  17,605
  18,771
  19,984
  21,247
  22,561
  23,930
  25,356
  26,843
  28,394
  30,012
  31,702
  33,467
  35,311
  37,239
  39,255
  41,363
  43,570
  45,880
  48,298
  50,831
  53,484
  56,264
  59,178
  62,231
Total equity, $m
  5,860
  6,333
  6,824
  7,334
  7,864
  8,416
  8,988
  9,584
  10,203
  10,848
  11,519
  12,218
  12,946
  13,705
  14,497
  15,324
  16,186
  17,087
  18,029
  19,013
  20,042
  21,119
  22,246
  23,425
  24,660
  25,953
  27,308
  28,727
  30,215
  31,774
Total liabilities and equity, $m
  17,338
  18,736
  20,189
  21,699
  23,267
  24,899
  26,593
  28,355
  30,187
  32,095
  34,080
  36,148
  38,302
  40,548
  42,891
  45,336
  47,888
  50,554
  53,340
  56,252
  59,297
  62,482
  65,816
  69,305
  72,958
  76,784
  80,792
  84,991
  89,393
  94,005
Debt-to-equity ratio
  1.270
  1.320
  1.360
  1.410
  1.440
  1.480
  1.510
  1.540
  1.560
  1.580
  1.610
  1.630
  1.650
  1.660
  1.680
  1.690
  1.710
  1.720
  1.730
  1.750
  1.760
  1.770
  1.780
  1.790
  1.790
  1.800
  1.810
  1.820
  1.820
  1.830
Adjusted equity ratio
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338
  0.338

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,025
  1,184
  1,348
  1,520
  1,698
  1,884
  2,077
  2,279
  2,489
  2,707
  3,439
  3,678
  3,926
  4,186
  4,458
  4,741
  5,038
  5,349
  5,675
  6,015
  6,372
  6,747
  7,139
  7,550
  7,982
  8,434
  8,909
  9,408
  9,931
  10,480
Depreciation, amort., depletion, $m
  1,147
  1,184
  1,222
  1,262
  1,304
  1,347
  1,391
  1,438
  1,486
  1,536
  899
  953
  1,010
  1,069
  1,131
  1,196
  1,263
  1,333
  1,407
  1,483
  1,564
  1,648
  1,736
  1,828
  1,924
  2,025
  2,130
  2,241
  2,357
  2,479
Funds from operations, $m
  2,173
  2,368
  2,571
  2,782
  3,002
  3,230
  3,468
  3,716
  3,975
  4,244
  4,338
  4,631
  4,936
  5,255
  5,589
  5,937
  6,301
  6,682
  7,081
  7,499
  7,936
  8,394
  8,874
  9,378
  9,905
  10,459
  11,040
  11,649
  12,288
  12,959
Change in working capital, $m
  115
  119
  124
  129
  134
  139
  145
  150
  156
  163
  169
  177
  184
  192
  200
  209
  218
  228
  238
  249
  260
  272
  285
  298
  312
  327
  342
  359
  376
  394
Cash from operations, $m
  2,058
  2,248
  2,447
  2,653
  2,868
  3,091
  3,324
  3,566
  3,818
  4,081
  4,169
  4,454
  4,752
  5,064
  5,389
  5,728
  6,083
  6,455
  6,843
  7,250
  7,676
  8,122
  8,590
  9,080
  9,594
  10,132
  10,697
  11,290
  11,913
  12,565
Maintenance CAPEX, $m
  -422
  -457
  -494
  -532
  -572
  -614
  -657
  -701
  -748
  -796
  -846
  -899
  -953
  -1,010
  -1,069
  -1,131
  -1,196
  -1,263
  -1,333
  -1,407
  -1,483
  -1,564
  -1,648
  -1,736
  -1,828
  -1,924
  -2,025
  -2,130
  -2,241
  -2,357
New CAPEX, $m
  -746
  -778
  -808
  -840
  -873
  -907
  -943
  -980
  -1,020
  -1,061
  -1,105
  -1,150
  -1,199
  -1,250
  -1,304
  -1,360
  -1,420
  -1,483
  -1,550
  -1,620
  -1,694
  -1,772
  -1,855
  -1,941
  -2,033
  -2,129
  -2,230
  -2,337
  -2,449
  -2,567
Cash from investing activities, $m
  -1,168
  -1,235
  -1,302
  -1,372
  -1,445
  -1,521
  -1,600
  -1,681
  -1,768
  -1,857
  -1,951
  -2,049
  -2,152
  -2,260
  -2,373
  -2,491
  -2,616
  -2,746
  -2,883
  -3,027
  -3,177
  -3,336
  -3,503
  -3,677
  -3,861
  -4,053
  -4,255
  -4,467
  -4,690
  -4,924
Free cash flow, $m
  890
  1,014
  1,144
  1,280
  1,422
  1,570
  1,724
  1,884
  2,051
  2,224
  2,218
  2,405
  2,600
  2,804
  3,016
  3,237
  3,468
  3,709
  3,960
  4,223
  4,498
  4,786
  5,087
  5,403
  5,733
  6,080
  6,443
  6,823
  7,223
  7,642
Issuance/(repayment) of debt, $m
  882
  925
  962
  1,000
  1,039
  1,079
  1,122
  1,167
  1,213
  1,262
  1,314
  1,369
  1,426
  1,487
  1,551
  1,618
  1,690
  1,765
  1,844
  1,928
  2,016
  2,109
  2,207
  2,310
  2,418
  2,533
  2,653
  2,780
  2,913
  3,054
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  
  882
  925
  962
  1,000
  1,039
  1,079
  1,122
  1,167
  1,213
  1,262
  1,314
  1,369
  1,426
  1,487
  1,551
  1,618
  1,690
  1,765
  1,844
  1,928
  2,016
  2,109
  2,207
  2,310
  2,418
  2,533
  2,653
  2,780
  2,913
  3,054
Total cash flow (excl. dividends), $m
  1,772
  1,939
  2,106
  2,280
  2,461
  2,650
  2,846
  3,051
  3,264
  3,486
  3,532
  3,774
  4,027
  4,291
  4,567
  4,855
  5,157
  5,473
  5,804
  6,151
  6,514
  6,895
  7,294
  7,713
  8,152
  8,612
  9,096
  9,603
  10,136
  10,695
Retained Cash Flow (-), $m
  -457
  -472
  -491
  -510
  -530
  -551
  -573
  -596
  -619
  -645
  -671
  -699
  -728
  -759
  -792
  -826
  -863
  -901
  -942
  -984
  -1,029
  -1,077
  -1,127
  -1,179
  -1,235
  -1,293
  -1,355
  -1,419
  -1,487
  -1,559
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
  1,315
  1,466
  1,615
  1,770
  1,931
  2,099
  2,273
  2,455
  2,644
  2,842
  2,861
  3,075
  3,298
  3,532
  3,775
  4,029
  4,295
  4,572
  4,863
  5,167
  5,485
  5,818
  6,167
  6,533
  6,917
  7,319
  7,741
  8,184
  8,649
  9,136
Discount rate, %
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
  1,224
  1,263
  1,276
  1,274
  1,255
  1,221
  1,173
  1,112
  1,039
  959
  818
  736
  651
  567
  486
  408
  337
  273
  216
  168
  127
  94
  68
  48
  33
  22
  14
  9
  5
  3
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

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 13.9
Price to Sales 1.3
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow 15.6
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 $9549 million for the last fiscal year's total revenue generated by Eastman Chemical. The default revenue input number comes from 0001 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 8.4% 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 7.4%, 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 72.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1122 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 5.4% 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 93.2%.

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 14.3%. 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 - $5403 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 141.229 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 $11.4 billion.

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COMPANY NEWS

▶ 6 Underperforming Stocks in Gurus' Portfolios   [Sep-18-18 06:00PM  GuruFocus.com]
▶ Eastman Publishes 2018 Sustainability Report   [Aug-02-18 10:09AM  GlobeNewswire]
▶ Eastman Chemical: 2Q Earnings Snapshot   [Jul-26-18 04:51PM  Associated Press]
▶ Earnings Preview: Eastman Chemical   [08:27AM  Benzinga]
▶ 5 Great Basic Materials Stocks to Buy Ahead of Q2 Earnings   [Jul-23-18 11:00AM  InvestorPlace]
▶ Eastman Board Elects New Director   [Jul-02-18 09:04AM  GlobeNewswire]
▶ Contractor change at Texas plant affects up to 229 KBR jobs   [May-16-18 06:42PM  American City Business Journals]
▶ Bigger than Bridgestone: State tees up grant for Wall Street firm's new Nashville HQ   [May-11-18 02:07PM  American City Business Journals]
▶ Eastman Board Declares Dividend   [May-03-18 12:38PM  GlobeNewswire]
▶ Eastman Chemical: 1Q Earnings Snapshot   [Apr-26-18 05:19PM  Associated Press]

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