Intrinsic value of FirstEnergy - FE

Previous Close

$32.13

  Intrinsic Value

$28.89

stock screener

  Rating & Target

hold

-10%

Previous close

$32.13

 
Intrinsic value

$28.89

 
Up/down potential

-10%

 
Rating

hold

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

We calculate the intrinsic value of FE 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 14.3

 

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, %
  -3.09
  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
  10,780
  14,853
  15,195
  15,585
  16,024
  16,510
  17,043
  17,623
  18,251
  18,928
  19,655
  20,432
  21,261
  22,144
  23,082
  24,078
  25,133
  26,250
  27,431
  28,679
  29,997
  31,387
  32,854
  34,399
  36,028
  37,743
  39,549
  41,450
  43,450
  45,554
  47,767
Variable operating expenses, $m
 
  12,941
  13,226
  13,551
  13,916
  14,321
  14,765
  15,249
  15,773
  16,337
  16,942
  17,028
  17,719
  18,455
  19,237
  20,067
  20,946
  21,877
  22,862
  23,902
  25,000
  26,159
  27,381
  28,669
  30,026
  31,456
  32,961
  34,545
  36,212
  37,966
  39,810
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
  22,824
  12,941
  13,226
  13,551
  13,916
  14,321
  14,765
  15,249
  15,773
  16,337
  16,942
  17,028
  17,719
  18,455
  19,237
  20,067
  20,946
  21,877
  22,862
  23,902
  25,000
  26,159
  27,381
  28,669
  30,026
  31,456
  32,961
  34,545
  36,212
  37,966
  39,810
Operating income, $m
  -8,262
  1,912
  1,969
  2,034
  2,107
  2,188
  2,277
  2,374
  2,478
  2,591
  2,712
  3,404
  3,542
  3,689
  3,845
  4,011
  4,187
  4,373
  4,569
  4,777
  4,997
  5,229
  5,473
  5,730
  6,002
  6,287
  6,588
  6,905
  7,238
  7,588
  7,957
EBITDA, $m
  -6,265
  2,872
  2,938
  3,014
  3,099
  3,193
  3,296
  3,408
  3,529
  3,660
  3,801
  3,951
  4,111
  4,282
  4,464
  4,656
  4,860
  5,076
  5,305
  5,546
  5,801
  6,070
  6,353
  6,652
  6,967
  7,299
  7,648
  8,016
  8,402
  8,809
  9,237
Interest expense (income), $m
  1,050
  1,051
  1,086
  1,127
  1,173
  1,225
  1,282
  1,346
  1,414
  1,489
  1,569
  1,655
  1,747
  1,846
  1,950
  2,061
  2,180
  2,305
  2,437
  2,577
  2,725
  2,881
  3,046
  3,220
  3,403
  3,596
  3,799
  4,013
  4,239
  4,476
  4,725
Earnings before tax, $m
  -9,232
  862
  883
  908
  935
  964
  995
  1,028
  1,064
  1,102
  1,143
  1,748
  1,794
  1,843
  1,895
  1,949
  2,007
  2,068
  2,132
  2,200
  2,272
  2,347
  2,427
  2,510
  2,599
  2,691
  2,789
  2,891
  2,999
  3,113
  3,232
Tax expense, $m
  -3,055
  233
  239
  245
  252
  260
  269
  278
  287
  298
  309
  472
  484
  498
  512
  526
  542
  558
  576
  594
  613
  634
  655
  678
  702
  727
  753
  781
  810
  840
  873
Net income, $m
  -6,177
  629
  645
  663
  682
  703
  726
  751
  777
  805
  835
  1,276
  1,310
  1,345
  1,383
  1,423
  1,465
  1,510
  1,557
  1,606
  1,659
  1,714
  1,772
  1,833
  1,897
  1,965
  2,036
  2,111
  2,189
  2,272
  2,359

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  199
  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
  43,148
  43,815
  44,823
  45,975
  47,268
  48,701
  50,273
  51,985
  53,839
  55,835
  57,978
  60,271
  62,717
  65,321
  68,089
  71,026
  74,139
  77,434
  80,918
  84,599
  88,487
  92,588
  96,914
  101,473
  106,277
  111,336
  116,663
  122,270
  128,171
  134,378
  140,907
Adjusted assets (=assets-cash), $m
  42,949
  43,815
  44,823
  45,975
  47,268
  48,701
  50,273
  51,985
  53,839
  55,835
  57,978
  60,271
  62,717
  65,321
  68,089
  71,026
  74,139
  77,434
  80,918
  84,599
  88,487
  92,588
  96,914
  101,473
  106,277
  111,336
  116,663
  122,270
  128,171
  134,378
  140,907
Revenue / Adjusted assets
  0.251
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
  0.339
Average production assets, $m
  1,947
  1,990
  2,036
  2,088
  2,147
  2,212
  2,284
  2,361
  2,446
  2,536
  2,634
  2,738
  2,849
  2,967
  3,093
  3,226
  3,368
  3,517
  3,676
  3,843
  4,020
  4,206
  4,402
  4,610
  4,828
  5,058
  5,300
  5,554
  5,822
  6,104
  6,401
Working capital, $m
  -4,176
  -15
  -15
  -16
  -16
  -17
  -17
  -18
  -18
  -19
  -20
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -29
  -30
  -31
  -33
  -34
  -36
  -38
  -40
  -41
  -43
  -46
  -48
Total debt, $m
  22,552
  23,107
  23,968
  24,953
  26,059
  27,284
  28,629
  30,092
  31,677
  33,384
  35,216
  37,176
  39,268
  41,495
  43,861
  46,372
  49,034
  51,851
  54,830
  57,977
  61,301
  64,808
  68,506
  72,404
  76,512
  80,838
  85,392
  90,186
  95,231
  100,538
  106,120
Total liabilities, $m
  36,907
  37,462
  38,323
  39,308
  40,414
  41,639
  42,984
  44,447
  46,032
  47,739
  49,571
  51,531
  53,623
  55,850
  58,216
  60,727
  63,389
  66,206
  69,185
  72,332
  75,656
  79,163
  82,861
  86,759
  90,867
  95,193
  99,747
  104,541
  109,586
  114,893
  120,475
Total equity, $m
  6,241
  6,353
  6,499
  6,666
  6,854
  7,062
  7,290
  7,538
  7,807
  8,096
  8,407
  8,739
  9,094
  9,472
  9,873
  10,299
  10,750
  11,228
  11,733
  12,267
  12,831
  13,425
  14,052
  14,714
  15,410
  16,144
  16,916
  17,729
  18,585
  19,485
  20,432
Total liabilities and equity, $m
  43,148
  43,815
  44,822
  45,974
  47,268
  48,701
  50,274
  51,985
  53,839
  55,835
  57,978
  60,270
  62,717
  65,322
  68,089
  71,026
  74,139
  77,434
  80,918
  84,599
  88,487
  92,588
  96,913
  101,473
  106,277
  111,337
  116,663
  122,270
  128,171
  134,378
  140,907
Debt-to-equity ratio
  3.614
  3.640
  3.690
  3.740
  3.800
  3.860
  3.930
  3.990
  4.060
  4.120
  4.190
  4.250
  4.320
  4.380
  4.440
  4.500
  4.560
  4.620
  4.670
  4.730
  4.780
  4.830
  4.880
  4.920
  4.970
  5.010
  5.050
  5.090
  5.120
  5.160
  5.190
Adjusted equity ratio
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145
  0.145

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -6,177
  629
  645
  663
  682
  703
  726
  751
  777
  805
  835
  1,276
  1,310
  1,345
  1,383
  1,423
  1,465
  1,510
  1,557
  1,606
  1,659
  1,714
  1,772
  1,833
  1,897
  1,965
  2,036
  2,111
  2,189
  2,272
  2,359
Depreciation, amort., depletion, $m
  1,997
  960
  969
  979
  991
  1,004
  1,019
  1,034
  1,051
  1,069
  1,089
  548
  570
  593
  619
  645
  674
  703
  735
  769
  804
  841
  880
  922
  966
  1,012
  1,060
  1,111
  1,164
  1,221
  1,280
Funds from operations, $m
  3,546
  1,589
  1,614
  1,642
  1,674
  1,708
  1,745
  1,785
  1,828
  1,874
  1,923
  1,824
  1,880
  1,939
  2,002
  2,068
  2,139
  2,213
  2,292
  2,375
  2,462
  2,555
  2,652
  2,755
  2,862
  2,976
  3,096
  3,221
  3,354
  3,493
  3,639
Change in working capital, $m
  175
  0
  0
  0
  0
  0
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
Cash from operations, $m
  3,371
  1,589
  1,614
  1,643
  1,674
  1,708
  1,745
  1,785
  1,828
  1,875
  1,924
  1,825
  1,881
  1,940
  2,003
  2,069
  2,140
  2,214
  2,293
  2,376
  2,464
  2,556
  2,654
  2,756
  2,864
  2,978
  3,097
  3,223
  3,356
  3,495
  3,642
Maintenance CAPEX, $m
  0
  -389
  -398
  -407
  -418
  -429
  -442
  -457
  -472
  -489
  -507
  -527
  -548
  -570
  -593
  -619
  -645
  -674
  -703
  -735
  -769
  -804
  -841
  -880
  -922
  -966
  -1,012
  -1,060
  -1,111
  -1,164
  -1,221
New CAPEX, $m
  -3,067
  -44
  -46
  -52
  -59
  -65
  -71
  -78
  -84
  -91
  -97
  -104
  -111
  -118
  -126
  -133
  -141
  -150
  -158
  -167
  -177
  -186
  -196
  -207
  -218
  -230
  -242
  -255
  -268
  -282
  -297
Cash from investing activities, $m
  -3,281
  -433
  -444
  -459
  -477
  -494
  -513
  -535
  -556
  -580
  -604
  -631
  -659
  -688
  -719
  -752
  -786
  -824
  -861
  -902
  -946
  -990
  -1,037
  -1,087
  -1,140
  -1,196
  -1,254
  -1,315
  -1,379
  -1,446
  -1,518
Free cash flow, $m
  90
  1,156
  1,170
  1,183
  1,198
  1,214
  1,231
  1,251
  1,272
  1,295
  1,319
  1,194
  1,222
  1,252
  1,284
  1,317
  1,353
  1,391
  1,431
  1,474
  1,519
  1,566
  1,616
  1,668
  1,724
  1,782
  1,844
  1,909
  1,977
  2,049
  2,124
Issuance/(repayment) of debt, $m
  620
  754
  862
  985
  1,106
  1,225
  1,344
  1,464
  1,585
  1,707
  1,832
  1,960
  2,091
  2,227
  2,367
  2,511
  2,661
  2,817
  2,979
  3,148
  3,323
  3,507
  3,698
  3,898
  4,107
  4,326
  4,555
  4,794
  5,045
  5,307
  5,582
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
  0
Cash from financing (excl. dividends), $m  
  589
  754
  862
  985
  1,106
  1,225
  1,344
  1,464
  1,585
  1,707
  1,832
  1,960
  2,091
  2,227
  2,367
  2,511
  2,661
  2,817
  2,979
  3,148
  3,323
  3,507
  3,698
  3,898
  4,107
  4,326
  4,555
  4,794
  5,045
  5,307
  5,582
Total cash flow (excl. dividends), $m
  679
  1,910
  2,032
  2,168
  2,303
  2,439
  2,576
  2,715
  2,857
  3,002
  3,151
  3,154
  3,313
  3,479
  3,650
  3,829
  4,014
  4,208
  4,410
  4,621
  4,842
  5,073
  5,314
  5,567
  5,831
  6,108
  6,399
  6,703
  7,022
  7,356
  7,706
Retained Cash Flow (-), $m
  6,180
  -112
  -146
  -167
  -188
  -208
  -228
  -248
  -269
  -290
  -311
  -332
  -355
  -378
  -401
  -426
  -451
  -478
  -505
  -534
  -564
  -595
  -627
  -661
  -697
  -734
  -772
  -813
  -856
  -900
  -947
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
 
  1,798
  1,886
  2,001
  2,116
  2,231
  2,348
  2,466
  2,588
  2,712
  2,841
  2,821
  2,959
  3,101
  3,249
  3,403
  3,563
  3,730
  3,905
  4,088
  4,278
  4,478
  4,687
  4,906
  5,135
  5,375
  5,626
  5,890
  6,166
  6,456
  6,760
Discount rate, %
 
  11.30
  11.87
  12.46
  13.08
  13.74
  14.42
  15.14
  15.90
  16.70
  17.53
  18.41
  19.33
  20.29
  21.31
  22.37
  23.49
  24.67
  25.90
  27.19
  28.55
  29.98
  31.48
  33.06
  34.71
  36.44
  38.27
  40.18
  42.19
  44.30
  46.51
PV of cash for distribution, $m
 
  1,615
  1,507
  1,407
  1,294
  1,172
  1,046
  919
  795
  676
  565
  440
  355
  281
  217
  165
  122
  88
  62
  42
  28
  18
  11
  7
  4
  2
  1
  1
  0
  0
  0
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

FirstEnergy Corp. is a holding company. The Company is engaged in holding, directly or indirectly, all of the outstanding equity of its principal subsidiaries. Its segments include Regulated Distribution, Regulated Transmission, Competitive Energy Services (CES) and Corporate/Other. As of December 31, 2016, the Regulated Distribution segment distributed electricity through the Company's 10 utility operating companies, serving approximately six million customers, and purchased power for its provider of last resort (POLR), standard offer service (SOS), standard offer service (SSO) and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by American Transmission Systems, Incorporated (ATSI) and Trans-Allegheny Interstate Line Company (TrAIL). The CES segment primarily supplies electricity to end use customers through retail and wholesale arrangements.

FINANCIAL RATIOS  of  FirstEnergy (FE)

Valuation Ratios
P/E Ratio -2.3
Price to Sales 1
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 4.2
Price to Free Cash Flow 46.8
Growth Rates
Sales Growth Rate -3.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6%
Cap. Spend. - 3 Yr. Gr. Rate 1.2%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 291.5%
Total Debt to Equity 361.4%
Interest Coverage -8
Management Effectiveness
Return On Assets -11.5%
Ret/ On Assets - 3 Yr. Avg. -2.1%
Return On Total Capital -19.6%
Ret/ On T. Cap. - 3 Yr. Avg. -5.7%
Return On Equity -66.2%
Return On Equity - 3 Yr. Avg. -19.7%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin -42.5%
EBITDA Margin - 3 Yr. Avg. -0.7%
Operating Margin -56.7%
Oper. Margin - 3 Yr. Avg. -12.3%
Pre-Tax Margin -63.4%
Pre-Tax Margin - 3 Yr. Avg. -18.8%
Net Profit Margin -42.4%
Net Profit Margin - 3 Yr. Avg. -12.2%
Effective Tax Rate 33.1%
Eff/ Tax Rate - 3 Yr. Avg. 14.6%
Payout Ratio -9.9%

FE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FE stock intrinsic value calculation we used $14562 million for the last fiscal year's total revenue generated by FirstEnergy. The default revenue input number comes from 2016 income statement of FirstEnergy. 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 FE 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 11.3%, whose default value for FE is calculated based on our internal credit rating of FirstEnergy, 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 FirstEnergy.
    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 FE stock the variable cost ratio is equal to 87.2%.

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 FE 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 4.7% for FirstEnergy.

Corporate tax rate of 27% is the nominal tax rate for FirstEnergy. 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 FE 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 FE are equal to 13.4%.

Life of production assets of 4 years is the average useful life of capital assets used in FirstEnergy 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 FE is equal to -0.1%. 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 - $6241 million for FirstEnergy - 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 444.444 million for FirstEnergy 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 FirstEnergy at the current share price and the inputted number of shares is $14.3 billion.

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COMPANY NEWS

▶ Behind FirstEnergys Price Targets and Analyst Views   [Oct-10-17 10:40AM  Market Realist]
▶ Does FirstEnergys Recent Recovery Suggest a Bullish Trend?   [Oct-09-17 05:20PM  Market Realist]
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▶ Analyzing FirstEnergys Implied Volatility   [Sep-28-17 04:36PM  Market Realist]
▶ Take a Look at FirstEnergys Current Valuation   [03:07PM  Market Realist]
▶ Where NRG Energy Stock Might Go from Here   [07:41AM  Market Realist]
▶ These SPX Utilities Are Trading Cheap Compared to Peers   [Sep-27-17 01:36PM  Market Realist]
▶ Is Exelons Debt a Burden or a Growth Engine?   [10:38AM  Market Realist]
▶ Assessing Competitive Utility Peers: EXC and FE   [Sep-22-17 01:36PM  Market Realist]
▶ Whats FirstEnergys Growth Outlook?   [07:37AM  Market Realist]
▶ Where FirstEnergy Stock Might Go from Here   [08:01AM  Market Realist]
▶ Why FirstEnergy Stock Underperformed Its Peers   [Sep-04-17 10:37AM  Market Realist]
▶ Ohio governor not backing bailout for state's nuclear plants   [Aug-21-17 03:30PM  Associated Press]
▶ Five Utilities Set To Outperform   [Aug-16-17 10:15AM  Barrons.com]
▶ Why Utility Implied Volatility Matters   [10:37AM  Market Realist]
▶ ETFs with exposure to FirstEnergy Corp. : August 11, 2017   [Aug-11-17 05:30PM  Capital Cube]
▶ Inside the Revenue Growth of SO, ETR, and FE   [Aug-10-17 05:53PM  Market Realist]
Financial statements of FE
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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