Intrinsic value of Entergy - ETR

Previous Close

$85.97

  Intrinsic Value

$10.53

stock screener

  Rating & Target

str. sell

-88%

Previous close

$85.97

 
Intrinsic value

$10.53

 
Up/down potential

-88%

 
Rating

str. sell

We calculate the intrinsic value of ETR 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 15.5

 

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, %
  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
  11,296
  11,556
  11,853
  12,186
  12,556
  12,961
  13,402
  13,880
  14,395
  14,947
  15,538
  16,169
  16,841
  17,554
  18,311
  19,114
  19,963
  20,862
  21,811
  22,813
  23,870
  24,985
  26,161
  27,399
  28,704
  30,077
  31,523
  33,044
  34,644
  36,327
Variable operating expenses, $m
  12,221
  12,502
  12,822
  13,182
  13,580
  14,017
  14,493
  15,009
  15,564
  16,160
  16,760
  17,440
  18,164
  18,934
  19,751
  20,616
  21,532
  22,501
  23,525
  24,606
  25,746
  26,949
  28,217
  29,553
  30,960
  32,441
  34,000
  35,641
  37,367
  39,183
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
  12,221
  12,502
  12,822
  13,182
  13,580
  14,017
  14,493
  15,009
  15,564
  16,160
  16,760
  17,440
  18,164
  18,934
  19,751
  20,616
  21,532
  22,501
  23,525
  24,606
  25,746
  26,949
  28,217
  29,553
  30,960
  32,441
  34,000
  35,641
  37,367
  39,183
Operating income, $m
  -926
  -946
  -969
  -995
  -1,025
  -1,056
  -1,091
  -1,129
  -1,169
  -1,212
  -1,221
  -1,271
  -1,324
  -1,380
  -1,439
  -1,502
  -1,569
  -1,640
  -1,714
  -1,793
  -1,876
  -1,964
  -2,056
  -2,153
  -2,256
  -2,364
  -2,478
  -2,597
  -2,723
  -2,855
EBITDA, $m
  1,212
  1,239
  1,271
  1,307
  1,347
  1,390
  1,437
  1,489
  1,544
  1,603
  1,667
  1,734
  1,806
  1,883
  1,964
  2,050
  2,141
  2,237
  2,339
  2,447
  2,560
  2,680
  2,806
  2,939
  3,079
  3,226
  3,381
  3,544
  3,716
  3,896
Interest expense (income), $m
  747
  901
  944
  993
  1,049
  1,112
  1,182
  1,258
  1,341
  1,432
  1,529
  1,633
  1,745
  1,864
  1,991
  2,126
  2,269
  2,420
  2,581
  2,750
  2,930
  3,119
  3,319
  3,529
  3,751
  3,985
  4,232
  4,491
  4,764
  5,051
  5,354
Earnings before tax, $m
  -1,826
  -1,890
  -1,962
  -2,044
  -2,136
  -2,238
  -2,349
  -2,470
  -2,601
  -2,741
  -2,855
  -3,016
  -3,188
  -3,371
  -3,565
  -3,771
  -3,989
  -4,220
  -4,465
  -4,723
  -4,995
  -5,282
  -5,585
  -5,905
  -6,241
  -6,596
  -6,969
  -7,361
  -7,774
  -8,209
Tax expense, $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
Net income, $m
  -1,826
  -1,890
  -1,962
  -2,044
  -2,136
  -2,238
  -2,349
  -2,470
  -2,601
  -2,741
  -2,855
  -3,016
  -3,188
  -3,371
  -3,565
  -3,771
  -3,989
  -4,220
  -4,465
  -4,723
  -4,995
  -5,282
  -5,585
  -5,905
  -6,241
  -6,596
  -6,969
  -7,361
  -7,774
  -8,209

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
  47,662
  48,759
  50,012
  51,418
  52,977
  54,688
  56,550
  58,566
  60,738
  63,069
  65,563
  68,224
  71,057
  74,068
  77,263
  80,649
  84,233
  88,023
  92,028
  96,257
  100,718
  105,424
  110,383
  115,609
  121,113
  126,908
  133,007
  139,425
  146,178
  153,280
Adjusted assets (=assets-cash), $m
  47,662
  48,759
  50,012
  51,418
  52,977
  54,688
  56,550
  58,566
  60,738
  63,069
  65,563
  68,224
  71,057
  74,068
  77,263
  80,649
  84,233
  88,023
  92,028
  96,257
  100,718
  105,424
  110,383
  115,609
  121,113
  126,908
  133,007
  139,425
  146,178
  153,280
Revenue / Adjusted assets
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
Average production assets, $m
  29,810
  30,496
  31,279
  32,159
  33,134
  34,204
  35,369
  36,630
  37,988
  39,446
  41,006
  42,670
  44,442
  46,325
  48,324
  50,441
  52,683
  55,054
  57,558
  60,203
  62,994
  65,937
  69,039
  72,307
  75,749
  79,374
  83,188
  87,203
  91,426
  95,868
Working capital, $m
  -192
  -196
  -201
  -207
  -213
  -220
  -228
  -236
  -245
  -254
  -264
  -275
  -286
  -298
  -311
  -325
  -339
  -355
  -371
  -388
  -406
  -425
  -445
  -466
  -488
  -511
  -536
  -562
  -589
  -618
Total debt, $m
  17,475
  18,383
  19,422
  20,588
  21,881
  23,299
  24,843
  26,514
  28,314
  30,247
  32,314
  34,520
  36,869
  39,365
  42,014
  44,821
  47,792
  50,934
  54,254
  57,759
  61,458
  65,359
  69,470
  73,802
  78,365
  83,169
  88,225
  93,546
  99,144
  105,032
Total liabilities, $m
  39,512
  40,421
  41,460
  42,626
  43,918
  45,336
  46,880
  48,551
  50,352
  52,284
  54,352
  56,558
  58,906
  61,402
  64,051
  66,858
  69,829
  72,971
  76,291
  79,797
  83,496
  87,396
  91,508
  95,840
  100,403
  105,207
  110,263
  115,584
  121,181
  127,069
Total equity, $m
  8,150
  8,338
  8,552
  8,793
  9,059
  9,352
  9,670
  10,015
  10,386
  10,785
  11,211
  11,666
  12,151
  12,666
  13,212
  13,791
  14,404
  15,052
  15,737
  16,460
  17,223
  18,027
  18,876
  19,769
  20,710
  21,701
  22,744
  23,842
  24,996
  26,211
Total liabilities and equity, $m
  47,662
  48,759
  50,012
  51,419
  52,977
  54,688
  56,550
  58,566
  60,738
  63,069
  65,563
  68,224
  71,057
  74,068
  77,263
  80,649
  84,233
  88,023
  92,028
  96,257
  100,719
  105,423
  110,384
  115,609
  121,113
  126,908
  133,007
  139,426
  146,177
  153,280
Debt-to-equity ratio
  2.140
  2.200
  2.270
  2.340
  2.420
  2.490
  2.570
  2.650
  2.730
  2.800
  2.880
  2.960
  3.030
  3.110
  3.180
  3.250
  3.320
  3.380
  3.450
  3.510
  3.570
  3.630
  3.680
  3.730
  3.780
  3.830
  3.880
  3.920
  3.970
  4.010
Adjusted equity ratio
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,826
  -1,890
  -1,962
  -2,044
  -2,136
  -2,238
  -2,349
  -2,470
  -2,601
  -2,741
  -2,855
  -3,016
  -3,188
  -3,371
  -3,565
  -3,771
  -3,989
  -4,220
  -4,465
  -4,723
  -4,995
  -5,282
  -5,585
  -5,905
  -6,241
  -6,596
  -6,969
  -7,361
  -7,774
  -8,209
Depreciation, amort., depletion, $m
  2,137
  2,185
  2,240
  2,302
  2,371
  2,446
  2,528
  2,617
  2,713
  2,816
  2,888
  3,005
  3,130
  3,262
  3,403
  3,552
  3,710
  3,877
  4,053
  4,240
  4,436
  4,643
  4,862
  5,092
  5,334
  5,590
  5,858
  6,141
  6,438
  6,751
Funds from operations, $m
  311
  296
  279
  258
  235
  209
  179
  147
  112
  74
  33
  -11
  -58
  -108
  -162
  -219
  -279
  -343
  -411
  -483
  -559
  -639
  -724
  -813
  -907
  -1,006
  -1,110
  -1,220
  -1,336
  -1,458
Change in working capital, $m
  -4
  -4
  -5
  -6
  -6
  -7
  -8
  -8
  -9
  -9
  -10
  -11
  -11
  -12
  -13
  -14
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -25
  -26
  -27
  -29
Cash from operations, $m
  315
  300
  284
  264
  241
  215
  187
  155
  121
  84
  43
  0
  -47
  -96
  -149
  -205
  -265
  -328
  -395
  -466
  -541
  -620
  -704
  -792
  -885
  -983
  -1,086
  -1,194
  -1,309
  -1,429
Maintenance CAPEX, $m
  -2,058
  -2,099
  -2,148
  -2,203
  -2,265
  -2,333
  -2,409
  -2,491
  -2,580
  -2,675
  -2,778
  -2,888
  -3,005
  -3,130
  -3,262
  -3,403
  -3,552
  -3,710
  -3,877
  -4,053
  -4,240
  -4,436
  -4,643
  -4,862
  -5,092
  -5,334
  -5,590
  -5,858
  -6,141
  -6,438
New CAPEX, $m
  -581
  -686
  -784
  -880
  -975
  -1,070
  -1,165
  -1,261
  -1,358
  -1,458
  -1,560
  -1,664
  -1,772
  -1,883
  -1,998
  -2,118
  -2,242
  -2,371
  -2,505
  -2,645
  -2,791
  -2,943
  -3,102
  -3,268
  -3,442
  -3,624
  -3,815
  -4,014
  -4,223
  -4,442
Cash from investing activities, $m
  -2,639
  -2,785
  -2,932
  -3,083
  -3,240
  -3,403
  -3,574
  -3,752
  -3,938
  -4,133
  -4,338
  -4,552
  -4,777
  -5,013
  -5,260
  -5,521
  -5,794
  -6,081
  -6,382
  -6,698
  -7,031
  -7,379
  -7,745
  -8,130
  -8,534
  -8,958
  -9,405
  -9,872
  -10,364
  -10,880
Free cash flow, $m
  -2,325
  -2,485
  -2,648
  -2,819
  -2,999
  -3,188
  -3,387
  -3,596
  -3,817
  -4,050
  -4,294
  -4,552
  -4,823
  -5,109
  -5,410
  -5,726
  -6,059
  -6,409
  -6,777
  -7,164
  -7,571
  -7,999
  -8,449
  -8,922
  -9,419
  -9,941
  -10,490
  -11,067
  -11,673
  -12,310
Issuance/(repayment) of debt, $m
  797
  909
  1,039
  1,166
  1,292
  1,418
  1,544
  1,671
  1,801
  1,932
  2,067
  2,206
  2,349
  2,496
  2,649
  2,807
  2,971
  3,142
  3,320
  3,505
  3,699
  3,901
  4,112
  4,332
  4,563
  4,804
  5,056
  5,321
  5,598
  5,888
Issuance/(repurchase) of shares, $m
  1,984
  2,077
  2,176
  2,285
  2,403
  2,530
  2,668
  2,815
  2,972
  3,140
  3,281
  3,471
  3,672
  3,885
  4,111
  4,350
  4,602
  4,868
  5,149
  5,446
  5,758
  6,087
  6,434
  6,798
  7,182
  7,587
  8,012
  8,459
  8,929
  9,423
Cash from financing (excl. dividends), $m  
  2,781
  2,986
  3,215
  3,451
  3,695
  3,948
  4,212
  4,486
  4,773
  5,072
  5,348
  5,677
  6,021
  6,381
  6,760
  7,157
  7,573
  8,010
  8,469
  8,951
  9,457
  9,988
  10,546
  11,130
  11,745
  12,391
  13,068
  13,780
  14,527
  15,311
Total cash flow (excl. dividends), $m
  456
  501
  567
  632
  697
  761
  825
  890
  956
  1,023
  1,054
  1,125
  1,197
  1,273
  1,350
  1,431
  1,515
  1,602
  1,693
  1,787
  1,886
  1,989
  2,096
  2,209
  2,326
  2,449
  2,578
  2,713
  2,854
  3,002
Retained Cash Flow (-), $m
  -1,984
  -2,077
  -2,176
  -2,285
  -2,403
  -2,530
  -2,668
  -2,815
  -2,972
  -3,140
  -3,281
  -3,471
  -3,672
  -3,885
  -4,111
  -4,350
  -4,602
  -4,868
  -5,149
  -5,446
  -5,758
  -6,087
  -6,434
  -6,798
  -7,182
  -7,587
  -8,012
  -8,459
  -8,929
  -9,423
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
  -1,528
  -1,576
  -1,609
  -1,653
  -1,706
  -1,770
  -1,843
  -1,925
  -2,017
  -2,117
  -2,227
  -2,346
  -2,475
  -2,613
  -2,761
  -2,919
  -3,087
  -3,267
  -3,457
  -3,659
  -3,872
  -4,098
  -4,337
  -4,590
  -4,856
  -5,137
  -5,434
  -5,746
  -6,075
  -6,422
Discount rate, %
  9.30
  9.77
  10.25
  10.77
  11.30
  11.87
  12.46
  13.09
  13.74
  14.43
  15.15
  15.91
  16.70
  17.54
  18.41
  19.33
  20.30
  21.32
  22.38
  23.50
  24.68
  25.91
  27.20
  28.57
  29.99
  31.49
  33.07
  34.72
  36.46
  38.28
PV of cash for distribution, $m
  -1,398
  -1,308
  -1,201
  -1,098
  -999
  -903
  -810
  -720
  -633
  -550
  -472
  -399
  -332
  -272
  -219
  -173
  -133
  -101
  -74
  -54
  -38
  -26
  -17
  -11
  -7
  -4
  -2
  -1
  -1
  0
Current shareholders' claim on cash, %
  88.7
  78.4
  69.1
  60.8
  53.3
  46.6
  40.6
  35.4
  30.7
  26.6
  23.0
  19.8
  17.0
  14.6
  12.5
  10.7
  9.2
  7.8
  6.6
  5.6
  4.8
  4.0
  3.4
  2.9
  2.4
  2.0
  1.7
  1.4
  1.2
  1.0

Entergy Corporation is a holding company. The Company is an integrated energy company engaged in electric power production and retail electric distribution operations. The Company operates through two business segments: Utility and Entergy Wholesale Commodities. The Utility segment includes the generation, transmission, distribution and sale of electric power to retail and wholesale customers in areas of Arkansas, Mississippi, Texas and Louisiana, including the City of New Orleans and operates a natural gas distribution business. The Entergy Wholesale Commodities segment includes the ownership, operation and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. As of December 31, 2016, the Company owned and operated power plants with over 30,000 megawatts of aggregate electric generating capacity, including approximately 10,000 megawatts of nuclear-fueled capacity.

FINANCIAL RATIOS  of  Entergy (ETR)

Valuation Ratios
P/E Ratio -27.3
Price to Sales 1.4
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 5.1
Price to Free Cash Flow -14.7
Growth Rates
Sales Growth Rate -5.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 35.1%
Cap. Spend. - 3 Yr. Gr. Rate 7.5%
Financial Strength
Quick Ratio 2
Current Ratio 0.2
LT Debt to Equity 174.9%
Total Debt to Equity 184.4%
Interest Coverage -1
Management Effectiveness
Return On Assets -0.6%
Ret/ On Assets - 3 Yr. Avg. 0.8%
Return On Total Capital -2.4%
Ret/ On T. Cap. - 3 Yr. Avg. 0.3%
Return On Equity -6.3%
Return On Equity - 3 Yr. Avg. 0.5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 13.7%
EBITDA Margin - 3 Yr. Avg. 21.8%
Operating Margin -8.2%
Oper. Margin - 3 Yr. Avg. 1.8%
Pre-Tax Margin -12.7%
Pre-Tax Margin - 3 Yr. Avg. -2.4%
Net Profit Margin -5.2%
Net Profit Margin - 3 Yr. Avg. 0.4%
Effective Tax Rate 59.1%
Eff/ Tax Rate - 3 Yr. Avg. 59.2%
Payout Ratio -112%

ETR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ETR stock intrinsic value calculation we used $11074.481 million for the last fiscal year's total revenue generated by Entergy. The default revenue input number comes from 0001 income statement of Entergy. 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 ETR 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 9.3%, whose default value for ETR is calculated based on our internal credit rating of Entergy, 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 Entergy.
    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 ETR stock the variable cost ratio is equal to 108.2%.

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 ETR 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 Entergy.

Corporate tax rate of 27% is the nominal tax rate for Entergy. 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 ETR 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 ETR are equal to 263.9%.

Life of production assets of 14.2 years is the average useful life of capital assets used in Entergy 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 ETR is equal to -1.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7992.515 million for Entergy - 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 180.855 million for Entergy 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 Entergy at the current share price and the inputted number of shares is $15.5 billion.

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COMPANY NEWS

▶ Entergy: 3Q Earnings Snapshot   [07:07AM  Associated Press]
▶ Entergy Reports Third Quarter Earnings   [06:30AM  PR Newswire]
▶ Entergy Declares Dividend   [Oct-26-18 01:35PM  PR Newswire]
▶ Entergy Announces Third Quarter Earnings Conference Call   [Oct-24-18 02:14PM  PR Newswire]
▶ Houston utility takes No. 2 spot for lobbying spending in Texas   [Oct-19-18 02:54PM  American City Business Journals]
▶ McDermott to begin work on $1B natural gas power plant near Houston   [03:21PM  American City Business Journals]
▶ The Easy Way to Buy Bonds   [Aug-24-18 11:22AM  Barrons.com]
▶ Storm debt paid, Entergy Louisiana customers get lower bills   [Aug-01-18 02:07PM  Associated Press]
▶ Entergy: 2Q Earnings Snapshot   [07:21AM  Associated Press]
▶ Entergy Reports Second Quarter Earnings   [06:45AM  PR Newswire]
▶ Entergy Declares Dividend   [Jul-27-18 12:44PM  PR Newswire]
▶ Entergy Shows Bullish Potential   [Jun-25-18 10:06AM  TheStreet.com]
▶ Closing Bell Ringer: June 20, 2018   [Jun-20-18 04:00PM  CNBC Videos]
▶ Entergy Corporation to Host 2018 Analyst Day   [Jun-12-18 10:26AM  PR Newswire]
▶ Best Dividend Paying Stocks   [May-28-18 09:02AM  Simply Wall St.]
▶ 3 Baby Bonds Paying Over 5.5%   [May-14-18 03:05PM  InvestorPlace]
▶ Company pays hearing attendees, says it seeks sincere people   [May-11-18 04:06PM  Associated Press]
▶ Power plants: Phony backers got paid to tout utility project   [May-10-18 08:44PM  Associated Press]
▶ Top Picks For Dividend Rockstars   [09:02AM  Simply Wall St.]
▶ Entergy: 1Q Earnings Snapshot   [07:27AM  Associated Press]
▶ Entergy Reports First Quarter Earnings   [07:04AM  PR Newswire]
▶ Entergy Announces First Quarter Earnings Conference Call   [Apr-18-18 01:59PM  PR Newswire]
▶ Entergy Declares Dividend   [Apr-11-18 10:02AM  PR Newswire]
▶ Entergy Corporation Releases 2017 Integrated Report   [Mar-29-18 03:37PM  PR Newswire]
▶ [$$] Task Force Studies How to Help Locals   [Mar-21-18 07:49PM  The Wall Street Journal]
▶ Entergy Appoints John R. Burbank to Board   [Mar-01-18 04:54PM  PR Newswire]
▶ Entergy reports 4Q loss   [07:05AM  Associated Press]

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