Intrinsic value of Exelon Corporation - EXC

Previous Close

$45.13

  Intrinsic Value

$13.49

stock screener

  Rating & Target

str. sell

-70%

Previous close

$45.13

 
Intrinsic value

$13.49

 
Up/down potential

-70%

 
Rating

str. sell

We calculate the intrinsic value of EXC 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 43.8

 

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, %
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
  5.02
  5.02
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.01
  5.00
Revenue, $m
  37,820
  39,745
  41,765
  43,883
  46,106
  48,439
  50,887
  53,455
  56,151
  58,980
  61,950
  65,067
  68,339
  71,773
  75,378
  79,162
  83,135
  87,306
  91,684
  96,281
  101,107
  106,173
  111,492
  117,077
  122,940
  129,096
  135,559
  142,344
  149,469
  156,950
Variable operating expenses, $m
  33,096
  34,747
  36,479
  38,295
  40,201
  42,201
  44,300
  46,503
  48,814
  51,240
  53,119
  55,791
  58,597
  61,541
  64,632
  67,877
  71,284
  74,860
  78,614
  82,556
  86,693
  91,037
  95,598
  100,387
  105,414
  110,692
  116,234
  122,053
  128,162
  134,576
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
  33,096
  34,747
  36,479
  38,295
  40,201
  42,201
  44,300
  46,503
  48,814
  51,240
  53,119
  55,791
  58,597
  61,541
  64,632
  67,877
  71,284
  74,860
  78,614
  82,556
  86,693
  91,037
  95,598
  100,387
  105,414
  110,692
  116,234
  122,053
  128,162
  134,576
Operating income, $m
  4,724
  4,998
  5,286
  5,588
  5,905
  6,238
  6,586
  6,953
  7,337
  7,740
  8,831
  9,276
  9,742
  10,232
  10,746
  11,285
  11,851
  12,446
  13,070
  13,725
  14,413
  15,135
  15,894
  16,690
  17,526
  18,403
  19,325
  20,292
  21,308
  22,374
EBITDA, $m
  11,393
  11,973
  12,582
  13,220
  13,890
  14,592
  15,330
  16,103
  16,916
  17,768
  18,662
  19,601
  20,587
  21,622
  22,708
  23,848
  25,045
  26,301
  27,620
  29,005
  30,458
  31,985
  33,587
  35,269
  37,036
  38,890
  40,837
  42,881
  45,028
  47,281
Interest expense (income), $m
  1,340
  1,973
  2,213
  2,470
  2,739
  3,021
  3,318
  3,629
  3,955
  4,297
  4,656
  5,034
  5,429
  5,845
  6,281
  6,739
  7,219
  7,724
  8,253
  8,809
  9,393
  10,006
  10,649
  11,324
  12,033
  12,778
  13,559
  14,380
  15,241
  16,146
  17,095
Earnings before tax, $m
  2,751
  2,785
  2,816
  2,849
  2,884
  2,920
  2,958
  2,998
  3,040
  3,084
  3,798
  3,846
  3,897
  3,951
  4,007
  4,066
  4,128
  4,193
  4,261
  4,332
  4,408
  4,487
  4,570
  4,657
  4,748
  4,844
  4,945
  5,051
  5,162
  5,279
Tax expense, $m
  743
  752
  760
  769
  779
  788
  799
  809
  821
  833
  1,025
  1,038
  1,052
  1,067
  1,082
  1,098
  1,114
  1,132
  1,150
  1,170
  1,190
  1,211
  1,234
  1,257
  1,282
  1,308
  1,335
  1,364
  1,394
  1,425
Net income, $m
  2,008
  2,033
  2,056
  2,080
  2,105
  2,132
  2,159
  2,188
  2,219
  2,251
  2,772
  2,808
  2,845
  2,884
  2,925
  2,968
  3,013
  3,061
  3,110
  3,163
  3,218
  3,275
  3,336
  3,399
  3,466
  3,536
  3,610
  3,687
  3,768
  3,853

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
  125,649
  132,044
  138,753
  145,792
  153,177
  160,927
  169,059
  177,592
  186,548
  195,948
  205,814
  216,169
  227,039
  238,448
  250,425
  262,998
  276,197
  290,053
  304,599
  319,870
  335,902
  352,734
  370,405
  388,959
  408,438
  428,889
  450,361
  472,905
  496,575
  521,427
Adjusted assets (=assets-cash), $m
  125,649
  132,044
  138,753
  145,792
  153,177
  160,927
  169,059
  177,592
  186,548
  195,948
  205,814
  216,169
  227,039
  238,448
  250,425
  262,998
  276,197
  290,053
  304,599
  319,870
  335,902
  352,734
  370,405
  388,959
  408,438
  428,889
  450,361
  472,905
  496,575
  521,427
Revenue / Adjusted assets
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
  0.301
Average production assets, $m
  82,826
  87,042
  91,465
  96,105
  100,973
  106,081
  111,442
  117,067
  122,971
  129,167
  135,670
  142,497
  149,662
  157,183
  165,078
  173,366
  182,066
  191,200
  200,788
  210,855
  221,423
  232,519
  244,168
  256,398
  269,238
  282,719
  296,873
  311,734
  327,337
  343,720
Working capital, $m
  1,702
  1,789
  1,879
  1,975
  2,075
  2,180
  2,290
  2,405
  2,527
  2,654
  2,788
  2,928
  3,075
  3,230
  3,392
  3,562
  3,741
  3,929
  4,126
  4,333
  4,550
  4,778
  5,017
  5,268
  5,532
  5,809
  6,100
  6,406
  6,726
  7,063
Total debt, $m
  40,983
  45,735
  50,720
  55,950
  61,437
  67,195
  73,237
  79,577
  86,231
  93,215
  100,546
  108,240
  116,316
  124,793
  133,692
  143,034
  152,840
  163,135
  173,943
  185,289
  197,201
  209,707
  222,837
  236,622
  251,095
  266,290
  282,244
  298,995
  316,581
  335,046
Total liabilities, $m
  93,357
  98,109
  103,094
  108,324
  113,811
  119,569
  125,611
  131,951
  138,605
  145,589
  152,920
  160,614
  168,690
  177,167
  186,066
  195,408
  205,214
  215,509
  226,317
  237,663
  249,575
  262,081
  275,211
  288,996
  303,469
  318,664
  334,618
  351,369
  368,955
  387,420
Total equity, $m
  32,292
  33,935
  35,660
  37,469
  39,367
  41,358
  43,448
  45,641
  47,943
  50,359
  52,894
  55,555
  58,349
  61,281
  64,359
  67,590
  70,983
  74,544
  78,282
  82,207
  86,327
  90,653
  95,194
  99,962
  104,968
  110,224
  115,743
  121,537
  127,620
  134,007
Total liabilities and equity, $m
  125,649
  132,044
  138,754
  145,793
  153,178
  160,927
  169,059
  177,592
  186,548
  195,948
  205,814
  216,169
  227,039
  238,448
  250,425
  262,998
  276,197
  290,053
  304,599
  319,870
  335,902
  352,734
  370,405
  388,958
  408,437
  428,888
  450,361
  472,906
  496,575
  521,427
Debt-to-equity ratio
  1.270
  1.350
  1.420
  1.490
  1.560
  1.620
  1.690
  1.740
  1.800
  1.850
  1.900
  1.950
  1.990
  2.040
  2.080
  2.120
  2.150
  2.190
  2.220
  2.250
  2.280
  2.310
  2.340
  2.370
  2.390
  2.420
  2.440
  2.460
  2.480
  2.500
Adjusted equity ratio
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257
  0.257

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,008
  2,033
  2,056
  2,080
  2,105
  2,132
  2,159
  2,188
  2,219
  2,251
  2,772
  2,808
  2,845
  2,884
  2,925
  2,968
  3,013
  3,061
  3,110
  3,163
  3,218
  3,275
  3,336
  3,399
  3,466
  3,536
  3,610
  3,687
  3,768
  3,853
Depreciation, amort., depletion, $m
  6,670
  6,975
  7,296
  7,632
  7,985
  8,355
  8,743
  9,151
  9,579
  10,028
  9,831
  10,326
  10,845
  11,390
  11,962
  12,563
  13,193
  13,855
  14,550
  15,279
  16,045
  16,849
  17,693
  18,580
  19,510
  20,487
  21,513
  22,589
  23,720
  24,907
Funds from operations, $m
  8,678
  9,008
  9,352
  9,712
  10,090
  10,486
  10,902
  11,339
  11,798
  12,279
  12,603
  13,134
  13,690
  14,274
  14,887
  15,531
  16,206
  16,916
  17,660
  18,442
  19,263
  20,124
  21,029
  21,979
  22,976
  24,023
  25,122
  26,276
  27,488
  28,761
Change in working capital, $m
  83
  87
  91
  95
  100
  105
  110
  116
  121
  127
  134
  140
  147
  155
  162
  170
  179
  188
  197
  207
  217
  228
  239
  251
  264
  277
  291
  305
  321
  337
Cash from operations, $m
  8,595
  8,922
  9,261
  9,616
  9,990
  10,381
  10,792
  11,224
  11,676
  12,151
  12,470
  12,993
  13,543
  14,119
  14,725
  15,360
  16,028
  16,728
  17,463
  18,235
  19,046
  19,896
  20,790
  21,728
  22,712
  23,746
  24,831
  25,971
  27,168
  28,424
Maintenance CAPEX, $m
  -5,710
  -6,002
  -6,307
  -6,628
  -6,964
  -7,317
  -7,687
  -8,075
  -8,483
  -8,911
  -9,360
  -9,831
  -10,326
  -10,845
  -11,390
  -11,962
  -12,563
  -13,193
  -13,855
  -14,550
  -15,279
  -16,045
  -16,849
  -17,693
  -18,580
  -19,510
  -20,487
  -21,513
  -22,589
  -23,720
New CAPEX, $m
  -4,033
  -4,216
  -4,423
  -4,640
  -4,868
  -5,108
  -5,360
  -5,625
  -5,904
  -6,196
  -6,503
  -6,826
  -7,165
  -7,521
  -7,895
  -8,288
  -8,700
  -9,134
  -9,589
  -10,067
  -10,568
  -11,095
  -11,649
  -12,230
  -12,840
  -13,481
  -14,154
  -14,861
  -15,603
  -16,382
Cash from investing activities, $m
  -9,743
  -10,218
  -10,730
  -11,268
  -11,832
  -12,425
  -13,047
  -13,700
  -14,387
  -15,107
  -15,863
  -16,657
  -17,491
  -18,366
  -19,285
  -20,250
  -21,263
  -22,327
  -23,444
  -24,617
  -25,847
  -27,140
  -28,498
  -29,923
  -31,420
  -32,991
  -34,641
  -36,374
  -38,192
  -40,102
Free cash flow, $m
  -1,148
  -1,296
  -1,469
  -1,651
  -1,843
  -2,044
  -2,255
  -2,477
  -2,711
  -2,956
  -3,393
  -3,664
  -3,948
  -4,247
  -4,560
  -4,890
  -5,236
  -5,599
  -5,981
  -6,381
  -6,802
  -7,244
  -7,708
  -8,196
  -8,708
  -9,245
  -9,810
  -10,402
  -11,025
  -11,678
Issuance/(repayment) of debt, $m
  4,455
  4,752
  4,985
  5,230
  5,487
  5,758
  6,042
  6,341
  6,654
  6,984
  7,330
  7,694
  8,076
  8,477
  8,899
  9,342
  9,807
  10,295
  10,808
  11,346
  11,912
  12,506
  13,130
  13,785
  14,473
  15,195
  15,954
  16,750
  17,587
  18,465
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  5
  83
  165
  0
  0
  0
  48
  153
  263
  379
  500
  628
  762
  903
  1,051
  1,206
  1,369
  1,540
  1,720
  1,909
  2,107
  2,315
  2,534
Cash from financing (excl. dividends), $m  
  4,455
  4,752
  4,985
  5,230
  5,487
  5,758
  6,042
  6,346
  6,737
  7,149
  7,330
  7,694
  8,076
  8,525
  9,052
  9,605
  10,186
  10,795
  11,436
  12,108
  12,815
  13,557
  14,336
  15,154
  16,013
  16,915
  17,863
  18,857
  19,902
  20,999
Total cash flow (excl. dividends), $m
  3,307
  3,456
  3,516
  3,578
  3,645
  3,714
  3,787
  3,868
  4,027
  4,193
  3,937
  4,030
  4,128
  4,279
  4,492
  4,715
  4,950
  5,196
  5,455
  5,727
  6,013
  6,312
  6,627
  6,958
  7,305
  7,670
  8,053
  8,455
  8,877
  9,320
Retained Cash Flow (-), $m
  -1,528
  -1,644
  -1,724
  -1,809
  -1,898
  -1,992
  -2,090
  -2,193
  -2,302
  -2,416
  -2,535
  -2,661
  -2,793
  -2,932
  -3,078
  -3,231
  -3,392
  -3,561
  -3,738
  -3,925
  -4,120
  -4,326
  -4,542
  -4,768
  -5,006
  -5,256
  -5,518
  -5,794
  -6,083
  -6,387
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
  1,780
  1,812
  1,791
  1,769
  1,747
  1,722
  1,697
  1,675
  1,725
  1,777
  1,401
  1,369
  1,334
  1,347
  1,414
  1,484
  1,558
  1,635
  1,717
  1,802
  1,892
  1,987
  2,086
  2,190
  2,299
  2,414
  2,534
  2,661
  2,794
  2,933
Discount rate, %
  7.30
  7.67
  8.05
  8.45
  8.87
  9.32
  9.78
  10.27
  10.79
  11.32
  11.89
  12.49
  13.11
  13.77
  14.45
  15.18
  15.93
  16.73
  17.57
  18.45
  19.37
  20.34
  21.35
  22.42
  23.54
  24.72
  25.96
  27.25
  28.62
  30.05
PV of cash for distribution, $m
  1,659
  1,563
  1,420
  1,279
  1,142
  1,009
  883
  766
  686
  608
  407
  334
  269
  221
  187
  155
  126
  101
  79
  61
  46
  34
  24
  17
  12
  8
  5
  3
  2
  1
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  99.9
  99.6
  99.6
  99.6
  99.6
  99.6
  99.4
  99.1
  98.7
  98.2
  97.7
  97.0
  96.2
  95.4
  94.5
  93.6
  92.6
  91.5
  90.4
  89.3
  88.1
  86.9

Exelon Corporation is a utility services holding company. The Company, through its subsidiary, Exelon Generation Company, LLC (Generation), is engaged in the energy generation business. The Company, through its subsidiaries, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Pepco Holdings LLC (PHI), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE), is engaged in the energy delivery businesses. It operates through 12 segments: Generation's six segments: Mid-Atlantic, Midwest, New England, New York, ERCOT and Other Power Regions; ComEd; PECO; BGE, and PHI's three utility segments: Pepco, DPL and ACE. Generation's integrated business consists of the generation, physical delivery and marketing of power across geographical regions through its customer-facing business, Constellation, which sells electricity and natural gas to both wholesale and retail customers.

FINANCIAL RATIOS  of  Exelon Corporation (EXC)

Valuation Ratios
P/E Ratio 36.8
Price to Sales 1.3
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 4.9
Price to Free Cash Flow -386.1
Growth Rates
Sales Growth Rate 6.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 12.2%
Cap. Spend. - 3 Yr. Gr. Rate 9.7%
Financial Strength
Quick Ratio 1
Current Ratio 0.3
LT Debt to Equity 124.7%
Total Debt to Equity 139%
Interest Coverage 2
Management Effectiveness
Return On Assets 1.9%
Ret/ On Assets - 3 Yr. Avg. 2.6%
Return On Total Capital 2%
Ret/ On T. Cap. - 3 Yr. Avg. 3.4%
Return On Equity 4.4%
Return On Equity - 3 Yr. Avg. 6.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 21.9%
EBITDA Margin - 3 Yr. Avg. 21.4%
Operating Margin 9.9%
Oper. Margin - 3 Yr. Avg. 12.1%
Pre-Tax Margin 6.3%
Pre-Tax Margin - 3 Yr. Avg. 8.9%
Net Profit Margin 3.6%
Net Profit Margin - 3 Yr. Avg. 5.7%
Effective Tax Rate 38.3%
Eff/ Tax Rate - 3 Yr. Avg. 32.4%
Payout Ratio 102.8%

EXC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the EXC stock intrinsic value calculation we used $35985 million for the last fiscal year's total revenue generated by Exelon Corporation. The default revenue input number comes from 0001 income statement of Exelon Corporation. 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 EXC stock valuation model: a) initial revenue growth rate of 5.1% 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 7.3%, whose default value for EXC is calculated based on our internal credit rating of Exelon Corporation, 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 Exelon Corporation.
    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 EXC stock the variable cost ratio is equal to 87.6%.

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 EXC 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 Exelon Corporation.

Corporate tax rate of 27% is the nominal tax rate for Exelon Corporation. 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 EXC 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 EXC are equal to 219%.

Life of production assets of 13.8 years is the average useful life of capital assets used in Exelon Corporation 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 EXC is equal to 4.5%. 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 - $30764 million for Exelon Corporation - 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 969.800 million for Exelon Corporation 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 Exelon Corporation at the current share price and the inputted number of shares is $43.8 billion.

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