Intrinsic value of Eastman Chemical - EMN

Previous Close

$97.69

  Intrinsic Value

$99.18

stock screener

  Rating & Target

hold

+2%

Previous close

$97.69

 
Intrinsic value

$99.18

 
Up/down potential

+2%

 
Rating

hold

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 2017), $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 14.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
  5.25
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
Revenue, $m
  10,122
  10,719
  11,342
  11,992
  12,670
  13,378
  14,118
  14,892
  15,700
  16,546
  17,431
  18,358
  19,327
  20,343
  21,406
  22,521
  23,689
  24,913
  26,196
  27,541
  28,951
  30,430
  31,982
  33,609
  35,317
  37,108
  38,987
  40,959
  43,029
  45,200
Variable operating expenses, $m
  7,287
  7,676
  8,082
  8,505
  8,948
  9,409
  9,891
  10,396
  10,923
  11,474
  11,361
  11,964
  12,596
  13,258
  13,951
  14,678
  15,439
  16,237
  17,073
  17,949
  18,869
  19,833
  20,844
  21,905
  23,017
  24,185
  25,410
  26,695
  28,044
  29,459
Fixed operating expenses, $m
  1,152
  1,177
  1,203
  1,229
  1,257
  1,284
  1,312
  1,341
  1,371
  1,401
  1,432
  1,463
  1,495
  1,528
  1,562
  1,596
  1,632
  1,667
  1,704
  1,742
  1,780
  1,819
  1,859
  1,900
  1,942
  1,984
  2,028
  2,073
  2,118
  2,165
Total operating expenses, $m
  8,439
  8,853
  9,285
  9,734
  10,205
  10,693
  11,203
  11,737
  12,294
  12,875
  12,793
  13,427
  14,091
  14,786
  15,513
  16,274
  17,071
  17,904
  18,777
  19,691
  20,649
  21,652
  22,703
  23,805
  24,959
  26,169
  27,438
  28,768
  30,162
  31,624
Operating income, $m
  1,683
  1,866
  2,057
  2,257
  2,466
  2,685
  2,914
  3,155
  3,407
  3,671
  4,639
  4,930
  5,235
  5,556
  5,893
  6,247
  6,618
  7,009
  7,419
  7,850
  8,303
  8,779
  9,279
  9,805
  10,358
  10,939
  11,550
  12,192
  12,867
  13,576
EBITDA, $m
  3,684
  3,944
  4,216
  4,500
  4,797
  5,107
  5,433
  5,773
  6,130
  6,504
  6,896
  7,307
  7,738
  8,191
  8,665
  9,163
  9,686
  10,235
  10,811
  11,416
  12,052
  12,719
  13,421
  14,157
  14,931
  15,744
  16,598
  17,496
  18,439
  19,430
Interest expense (income), $m
  280
  353
  387
  423
  460
  499
  540
  582
  626
  673
  721
  772
  825
  880
  938
  999
  1,063
  1,130
  1,199
  1,273
  1,350
  1,430
  1,515
  1,603
  1,696
  1,793
  1,896
  2,003
  2,116
  2,234
  2,358
Earnings before tax, $m
  1,330
  1,479
  1,634
  1,797
  1,967
  2,145
  2,332
  2,528
  2,734
  2,950
  3,867
  4,105
  4,355
  4,618
  4,894
  5,184
  5,489
  5,809
  6,146
  6,500
  6,873
  7,264
  7,676
  8,109
  8,564
  9,043
  9,547
  10,076
  10,633
  11,219
Tax expense, $m
  359
  399
  441
  485
  531
  579
  630
  683
  738
  797
  1,044
  1,108
  1,176
  1,247
  1,321
  1,400
  1,482
  1,568
  1,659
  1,755
  1,856
  1,961
  2,072
  2,189
  2,312
  2,442
  2,578
  2,721
  2,871
  3,029
Net income, $m
  971
  1,080
  1,193
  1,312
  1,436
  1,566
  1,703
  1,846
  1,996
  2,154
  2,823
  2,997
  3,179
  3,371
  3,573
  3,784
  4,007
  4,241
  4,487
  4,745
  5,017
  5,303
  5,603
  5,919
  6,252
  6,601
  6,969
  7,356
  7,762
  8,190

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
  16,955
  17,955
  18,998
  20,087
  21,223
  22,409
  23,649
  24,944
  26,299
  27,716
  29,198
  30,750
  32,374
  34,075
  35,857
  37,723
  39,679
  41,730
  43,879
  46,132
  48,495
  50,972
  53,571
  56,297
  59,157
  62,157
  65,305
  68,608
  72,075
  75,712
Adjusted assets (=assets-cash), $m
  16,955
  17,955
  18,998
  20,087
  21,223
  22,409
  23,649
  24,944
  26,299
  27,716
  29,198
  30,750
  32,374
  34,075
  35,857
  37,723
  39,679
  41,730
  43,879
  46,132
  48,495
  50,972
  53,571
  56,297
  59,157
  62,157
  65,305
  68,608
  72,075
  75,712
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
  13,108
  13,881
  14,688
  15,529
  16,408
  17,325
  18,283
  19,285
  20,332
  21,427
  22,573
  23,773
  25,029
  26,344
  27,721
  29,164
  30,677
  32,262
  33,923
  35,665
  37,492
  39,407
  41,417
  43,524
  45,735
  48,055
  50,488
  53,042
  55,722
  58,534
Working capital, $m
  -81
  -86
  -91
  -96
  -101
  -107
  -113
  -119
  -126
  -132
  -139
  -147
  -155
  -163
  -171
  -180
  -190
  -199
  -210
  -220
  -232
  -243
  -256
  -269
  -283
  -297
  -312
  -328
  -344
  -362
Total debt, $m
  7,168
  7,830
  8,521
  9,241
  9,993
  10,779
  11,599
  12,457
  13,354
  14,292
  15,273
  16,300
  17,376
  18,502
  19,681
  20,917
  22,212
  23,569
  24,992
  26,483
  28,047
  29,688
  31,408
  33,213
  35,106
  37,092
  39,176
  41,363
  43,658
  46,066
Total liabilities, $m
  11,224
  11,886
  12,577
  13,297
  14,049
  14,835
  15,655
  16,513
  17,410
  18,348
  19,329
  20,356
  21,432
  22,558
  23,737
  24,973
  26,268
  27,625
  29,048
  30,539
  32,103
  33,744
  35,464
  37,269
  39,162
  41,148
  43,232
  45,419
  47,714
  50,122
Total equity, $m
  5,731
  6,069
  6,421
  6,789
  7,173
  7,574
  7,993
  8,431
  8,889
  9,368
  9,869
  10,393
  10,942
  11,517
  12,120
  12,750
  13,412
  14,105
  14,831
  15,593
  16,391
  17,229
  18,107
  19,028
  19,995
  21,009
  22,073
  23,190
  24,361
  25,591
Total liabilities and equity, $m
  16,955
  17,955
  18,998
  20,086
  21,222
  22,409
  23,648
  24,944
  26,299
  27,716
  29,198
  30,749
  32,374
  34,075
  35,857
  37,723
  39,680
  41,730
  43,879
  46,132
  48,494
  50,973
  53,571
  56,297
  59,157
  62,157
  65,305
  68,609
  72,075
  75,713
Debt-to-equity ratio
  1.250
  1.290
  1.330
  1.360
  1.390
  1.420
  1.450
  1.480
  1.500
  1.530
  1.550
  1.570
  1.590
  1.610
  1.620
  1.640
  1.660
  1.670
  1.690
  1.700
  1.710
  1.720
  1.730
  1.750
  1.760
  1.770
  1.770
  1.780
  1.790
  1.800
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
  971
  1,080
  1,193
  1,312
  1,436
  1,566
  1,703
  1,846
  1,996
  2,154
  2,823
  2,997
  3,179
  3,371
  3,573
  3,784
  4,007
  4,241
  4,487
  4,745
  5,017
  5,303
  5,603
  5,919
  6,252
  6,601
  6,969
  7,356
  7,762
  8,190
Depreciation, amort., depletion, $m
  2,001
  2,078
  2,159
  2,243
  2,331
  2,422
  2,518
  2,618
  2,723
  2,833
  2,257
  2,377
  2,503
  2,634
  2,772
  2,916
  3,068
  3,226
  3,392
  3,567
  3,749
  3,941
  4,142
  4,352
  4,574
  4,805
  5,049
  5,304
  5,572
  5,853
Funds from operations, $m
  2,972
  3,158
  3,352
  3,554
  3,767
  3,989
  4,221
  4,464
  4,719
  4,986
  5,080
  5,374
  5,682
  6,005
  6,345
  6,701
  7,074
  7,467
  7,879
  8,312
  8,766
  9,244
  9,745
  10,272
  10,825
  11,407
  12,018
  12,660
  13,334
  14,043
Change in working capital, $m
  -5
  -5
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -8
  -8
  -9
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -14
  -14
  -15
  -16
  -17
  -17
Cash from operations, $m
  2,976
  3,162
  3,357
  3,560
  3,772
  3,994
  4,227
  4,470
  4,726
  4,993
  5,087
  5,381
  5,690
  6,014
  6,353
  6,710
  7,084
  7,477
  7,889
  8,322
  8,777
  9,255
  9,757
  10,285
  10,839
  11,421
  12,033
  12,676
  13,351
  14,061
Maintenance CAPEX, $m
  -1,236
  -1,311
  -1,388
  -1,469
  -1,553
  -1,641
  -1,732
  -1,828
  -1,928
  -2,033
  -2,143
  -2,257
  -2,377
  -2,503
  -2,634
  -2,772
  -2,916
  -3,068
  -3,226
  -3,392
  -3,567
  -3,749
  -3,941
  -4,142
  -4,352
  -4,574
  -4,805
  -5,049
  -5,304
  -5,572
New CAPEX, $m
  -746
  -773
  -807
  -841
  -878
  -917
  -958
  -1,002
  -1,047
  -1,095
  -1,146
  -1,200
  -1,256
  -1,315
  -1,377
  -1,443
  -1,512
  -1,585
  -1,662
  -1,742
  -1,827
  -1,916
  -2,009
  -2,108
  -2,211
  -2,320
  -2,434
  -2,554
  -2,680
  -2,812
Cash from investing activities, $m
  -1,982
  -2,084
  -2,195
  -2,310
  -2,431
  -2,558
  -2,690
  -2,830
  -2,975
  -3,128
  -3,289
  -3,457
  -3,633
  -3,818
  -4,011
  -4,215
  -4,428
  -4,653
  -4,888
  -5,134
  -5,394
  -5,665
  -5,950
  -6,250
  -6,563
  -6,894
  -7,239
  -7,603
  -7,984
  -8,384
Free cash flow, $m
  994
  1,078
  1,162
  1,249
  1,341
  1,436
  1,536
  1,641
  1,750
  1,865
  1,799
  1,925
  2,057
  2,196
  2,341
  2,494
  2,655
  2,824
  3,002
  3,188
  3,384
  3,591
  3,807
  4,036
  4,276
  4,528
  4,794
  5,073
  5,367
  5,676
Issuance/(repayment) of debt, $m
  628
  662
  691
  721
  752
  785
  821
  858
  897
  938
  981
  1,027
  1,075
  1,126
  1,179
  1,236
  1,295
  1,357
  1,423
  1,492
  1,564
  1,640
  1,720
  1,805
  1,893
  1,986
  2,084
  2,187
  2,295
  2,408
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  
  628
  662
  691
  721
  752
  785
  821
  858
  897
  938
  981
  1,027
  1,075
  1,126
  1,179
  1,236
  1,295
  1,357
  1,423
  1,492
  1,564
  1,640
  1,720
  1,805
  1,893
  1,986
  2,084
  2,187
  2,295
  2,408
Total cash flow (excl. dividends), $m
  1,622
  1,741
  1,853
  1,970
  2,093
  2,222
  2,357
  2,498
  2,647
  2,803
  2,780
  2,952
  3,132
  3,322
  3,521
  3,730
  3,950
  4,181
  4,424
  4,680
  4,948
  5,231
  5,528
  5,840
  6,169
  6,514
  6,878
  7,260
  7,662
  8,084
Retained Cash Flow (-), $m
  -328
  -338
  -353
  -368
  -384
  -401
  -419
  -438
  -458
  -479
  -501
  -524
  -549
  -575
  -602
  -631
  -661
  -693
  -726
  -762
  -799
  -837
  -878
  -921
  -967
  -1,014
  -1,064
  -1,116
  -1,172
  -1,230
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
  1,294
  1,402
  1,500
  1,602
  1,709
  1,821
  1,938
  2,060
  2,189
  2,324
  2,279
  2,427
  2,583
  2,747
  2,919
  3,099
  3,289
  3,488
  3,698
  3,918
  4,150
  4,393
  4,649
  4,919
  5,202
  5,500
  5,814
  6,143
  6,490
  6,855
Discount rate, %
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
  1,204
  1,205
  1,182
  1,148
  1,105
  1,052
  991
  923
  850
  773
  641
  570
  500
  431
  366
  305
  250
  201
  158
  122
  92
  68
  49
  34
  23
  15
  10
  6
  4
  2
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 16.8
Price to Sales 1.6
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 10.3
Price to Free Cash Flow 18.8
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 2017 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 6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.5%, 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 72.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1127 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 129.5%.

Life of production assets of 10 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 -0.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $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 144 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 $14.1 billion.

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COMPANY NEWS

▶ 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]
▶ Eastman Board Declares Dividend   [Feb-15-18 03:50PM  GlobeNewswire]
▶ Eastman Chemical beats Street 4Q forecasts   [Feb-01-18 05:19PM  Associated Press]
▶ Eastman Chemical's Earnings Outlook   [09:52AM  Benzinga]
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