Intrinsic value of Golar LNG - GLNG

Previous Close

$25.87

  Intrinsic Value

$4.37

stock screener

  Rating & Target

str. sell

-83%

Previous close

$25.87

 
Intrinsic value

$4.37

 
Up/down potential

-83%

 
Rating

str. sell

We calculate the intrinsic value of GLNG 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 2.5

 

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, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  230
  355
  531
  770
  1,086
  1,493
  2,005
  2,632
  3,387
  4,278
  5,312
  6,495
  7,828
  9,314
  10,952
  12,739
  14,675
  16,754
  18,975
  21,334
  23,827
  26,452
  29,207
  32,092
  35,104
  38,245
  41,517
  44,920
  48,459
  52,138
Variable operating expenses, $m
  126
  195
  291
  423
  596
  820
  1,100
  1,445
  1,859
  2,349
  2,916
  3,566
  4,298
  5,113
  6,012
  6,994
  8,056
  9,198
  10,417
  11,712
  13,081
  14,522
  16,035
  17,618
  19,272
  20,997
  22,793
  24,661
  26,604
  28,624
Fixed operating expenses, $m
  185
  189
  193
  197
  202
  206
  211
  215
  220
  225
  230
  235
  240
  245
  251
  256
  262
  268
  274
  280
  286
  292
  299
  305
  312
  319
  326
  333
  340
  348
Total operating expenses, $m
  311
  384
  484
  620
  798
  1,026
  1,311
  1,660
  2,079
  2,574
  3,146
  3,801
  4,538
  5,358
  6,263
  7,250
  8,318
  9,466
  10,691
  11,992
  13,367
  14,814
  16,334
  17,923
  19,584
  21,316
  23,119
  24,994
  26,944
  28,972
Operating income, $m
  -81
  -29
  46
  150
  288
  467
  693
  972
  1,307
  1,704
  2,166
  2,694
  3,290
  3,955
  4,688
  5,489
  6,356
  7,288
  8,284
  9,342
  10,460
  11,638
  12,874
  14,168
  15,520
  16,930
  18,398
  19,926
  21,515
  23,166
EBITDA, $m
  82
  223
  423
  697
  1,060
  1,529
  2,118
  2,842
  3,714
  4,745
  5,941
  7,310
  8,854
  10,575
  12,472
  14,543
  16,785
  19,196
  21,770
  24,504
  27,394
  30,437
  33,632
  36,976
  40,468
  44,111
  47,904
  51,851
  55,955
  60,221
Interest expense (income), $m
  25
  130
  215
  339
  515
  754
  1,070
  1,476
  1,986
  2,613
  3,366
  4,255
  5,288
  6,468
  7,799
  9,282
  10,917
  12,701
  14,633
  16,709
  18,926
  21,280
  23,769
  26,389
  29,140
  32,018
  35,025
  38,161
  41,426
  44,824
  48,356
Earnings before tax, $m
  -212
  -244
  -293
  -365
  -466
  -602
  -783
  -1,015
  -1,305
  -1,662
  -2,090
  -2,594
  -3,178
  -3,844
  -4,594
  -5,428
  -6,345
  -7,345
  -8,425
  -9,584
  -10,820
  -12,131
  -13,515
  -14,971
  -16,498
  -18,096
  -19,763
  -21,500
  -23,309
  -25,190
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
  -212
  -244
  -293
  -365
  -466
  -602
  -783
  -1,015
  -1,305
  -1,662
  -2,090
  -2,594
  -3,178
  -3,844
  -4,594
  -5,428
  -6,345
  -7,345
  -8,425
  -9,584
  -10,820
  -12,131
  -13,515
  -14,971
  -16,498
  -18,096
  -19,763
  -21,500
  -23,309
  -25,190

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
  6,959
  10,752
  16,080
  23,331
  32,917
  45,253
  60,743
  79,759
  102,631
  129,631
  160,973
  196,805
  237,216
  282,240
  331,864
  386,038
  444,683
  507,705
  575,003
  646,474
  722,025
  801,578
  885,073
  972,470
  1,063,758
  1,158,947
  1,258,079
  1,361,219
  1,468,462
  1,579,926
Adjusted assets (=assets-cash), $m
  6,959
  10,752
  16,080
  23,331
  32,917
  45,253
  60,743
  79,759
  102,631
  129,631
  160,973
  196,805
  237,216
  282,240
  331,864
  386,038
  444,683
  507,705
  575,003
  646,474
  722,025
  801,578
  885,073
  972,470
  1,063,758
  1,158,947
  1,258,079
  1,361,219
  1,468,462
  1,579,926
Revenue / Adjusted assets
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
  0.033
Average production assets, $m
  4,897
  7,565
  11,314
  16,416
  23,160
  31,840
  42,738
  56,118
  72,211
  91,208
  113,259
  138,470
  166,903
  198,582
  233,497
  271,613
  312,876
  357,218
  404,568
  454,854
  508,012
  563,985
  622,731
  684,223
  748,452
  815,427
  885,176
  957,744
  1,033,199
  1,111,625
Working capital, $m
  -616
  -952
  -1,424
  -2,066
  -2,916
  -4,008
  -5,380
  -7,064
  -9,090
  -11,482
  -14,258
  -17,431
  -21,011
  -24,999
  -29,394
  -34,192
  -39,386
  -44,968
  -50,929
  -57,259
  -63,951
  -70,997
  -78,393
  -86,134
  -94,219
  -102,650
  -111,431
  -120,566
  -130,065
  -139,937
Total debt, $m
  3,972
  6,286
  9,536
  13,959
  19,807
  27,332
  36,780
  48,381
  62,332
  78,802
  97,921
  119,778
  144,429
  171,894
  202,164
  235,210
  270,984
  309,427
  350,479
  394,076
  440,163
  488,690
  539,622
  592,934
  648,619
  706,685
  767,155
  830,071
  895,489
  963,482
Total liabilities, $m
  4,245
  6,559
  9,809
  14,232
  20,079
  27,604
  37,053
  48,653
  62,605
  79,075
  98,193
  120,051
  144,702
  172,166
  202,437
  235,483
  271,257
  309,700
  350,752
  394,349
  440,435
  488,963
  539,894
  593,207
  648,892
  706,958
  767,428
  830,344
  895,762
  963,755
Total equity, $m
  2,714
  4,193
  6,271
  9,099
  12,838
  17,649
  23,690
  31,106
  40,026
  50,556
  62,779
  76,754
  92,514
  110,074
  129,427
  150,555
  173,426
  198,005
  224,251
  252,125
  281,590
  312,616
  345,178
  379,263
  414,865
  451,989
  490,651
  530,875
  572,700
  616,171
Total liabilities and equity, $m
  6,959
  10,752
  16,080
  23,331
  32,917
  45,253
  60,743
  79,759
  102,631
  129,631
  160,972
  196,805
  237,216
  282,240
  331,864
  386,038
  444,683
  507,705
  575,003
  646,474
  722,025
  801,579
  885,072
  972,470
  1,063,757
  1,158,947
  1,258,079
  1,361,219
  1,468,462
  1,579,926
Debt-to-equity ratio
  1.460
  1.500
  1.520
  1.530
  1.540
  1.550
  1.550
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
Adjusted equity ratio
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390
  0.390

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -212
  -244
  -293
  -365
  -466
  -602
  -783
  -1,015
  -1,305
  -1,662
  -2,090
  -2,594
  -3,178
  -3,844
  -4,594
  -5,428
  -6,345
  -7,345
  -8,425
  -9,584
  -10,820
  -12,131
  -13,515
  -14,971
  -16,498
  -18,096
  -19,763
  -21,500
  -23,309
  -25,190
Depreciation, amort., depletion, $m
  163
  252
  377
  547
  772
  1,061
  1,425
  1,871
  2,407
  3,040
  3,775
  4,616
  5,563
  6,619
  7,783
  9,054
  10,429
  11,907
  13,486
  15,162
  16,934
  18,799
  20,758
  22,807
  24,948
  27,181
  29,506
  31,925
  34,440
  37,054
Funds from operations, $m
  -48
  9
  84
  182
  306
  459
  642
  856
  1,102
  1,379
  1,686
  2,022
  2,386
  2,775
  3,189
  3,626
  4,084
  4,563
  5,061
  5,578
  6,114
  6,668
  7,242
  7,836
  8,450
  9,085
  9,743
  10,425
  11,131
  11,864
Change in working capital, $m
  -231
  -336
  -472
  -642
  -849
  -1,093
  -1,372
  -1,684
  -2,026
  -2,391
  -2,776
  -3,174
  -3,579
  -3,988
  -4,395
  -4,798
  -5,194
  -5,582
  -5,961
  -6,330
  -6,692
  -7,046
  -7,395
  -7,741
  -8,085
  -8,431
  -8,780
  -9,135
  -9,499
  -9,873
Cash from operations, $m
  183
  345
  556
  824
  1,155
  1,552
  2,014
  2,540
  3,128
  3,770
  4,462
  5,196
  5,965
  6,763
  7,585
  8,424
  9,278
  10,145
  11,021
  11,908
  12,805
  13,715
  14,638
  15,577
  16,536
  17,517
  18,523
  19,560
  20,630
  21,737
Maintenance CAPEX, $m
  -102
  -163
  -252
  -377
  -547
  -772
  -1,061
  -1,425
  -1,871
  -2,407
  -3,040
  -3,775
  -4,616
  -5,563
  -6,619
  -7,783
  -9,054
  -10,429
  -11,907
  -13,486
  -15,162
  -16,934
  -18,799
  -20,758
  -22,807
  -24,948
  -27,181
  -29,506
  -31,925
  -34,440
New CAPEX, $m
  -1,826
  -2,669
  -3,749
  -5,102
  -6,744
  -8,680
  -10,899
  -13,380
  -16,092
  -18,997
  -22,052
  -25,211
  -28,433
  -31,679
  -34,915
  -38,116
  -41,262
  -44,342
  -47,350
  -50,287
  -53,158
  -55,973
  -58,746
  -61,492
  -64,229
  -66,975
  -69,748
  -72,569
  -75,455
  -78,426
Cash from investing activities, $m
  -1,928
  -2,832
  -4,001
  -5,479
  -7,291
  -9,452
  -11,960
  -14,805
  -17,963
  -21,404
  -25,092
  -28,986
  -33,049
  -37,242
  -41,534
  -45,899
  -50,316
  -54,771
  -59,257
  -63,773
  -68,320
  -72,907
  -77,545
  -82,250
  -87,036
  -91,923
  -96,929
  -102,075
  -107,380
  -112,866
Free cash flow, $m
  -1,746
  -2,487
  -3,445
  -4,655
  -6,136
  -7,900
  -9,946
  -12,264
  -14,835
  -17,634
  -20,630
  -23,791
  -27,084
  -30,479
  -33,950
  -37,475
  -41,038
  -44,627
  -48,236
  -51,864
  -55,514
  -59,192
  -62,908
  -66,673
  -70,501
  -74,407
  -78,406
  -82,515
  -86,750
  -91,129
Issuance/(repayment) of debt, $m
  1,562
  2,314
  3,250
  4,423
  5,847
  7,525
  9,449
  11,600
  13,952
  16,470
  19,118
  21,857
  24,651
  27,465
  30,271
  33,046
  35,774
  38,444
  41,051
  43,597
  46,086
  48,527
  50,932
  53,312
  55,685
  58,066
  60,470
  62,916
  65,418
  67,993
Issuance/(repurchase) of shares, $m
  1,210
  1,723
  2,371
  3,193
  4,204
  5,413
  6,824
  8,431
  10,225
  12,192
  14,313
  16,568
  18,938
  21,403
  23,947
  26,556
  29,217
  31,923
  34,671
  37,458
  40,285
  43,157
  46,078
  49,056
  52,100
  55,220
  58,424
  61,725
  65,133
  68,661
Cash from financing (excl. dividends), $m  
  2,772
  4,037
  5,621
  7,616
  10,051
  12,938
  16,273
  20,031
  24,177
  28,662
  33,431
  38,425
  43,589
  48,868
  54,218
  59,602
  64,991
  70,367
  75,722
  81,055
  86,371
  91,684
  97,010
  102,368
  107,785
  113,286
  118,894
  124,641
  130,551
  136,654
Total cash flow (excl. dividends), $m
  1,026
  1,549
  2,176
  2,962
  3,915
  5,039
  6,327
  7,767
  9,341
  11,028
  12,801
  14,635
  16,505
  18,389
  20,268
  22,126
  23,953
  25,740
  27,486
  29,191
  30,858
  32,492
  34,102
  35,696
  37,285
  38,879
  40,489
  42,126
  43,801
  45,526
Retained Cash Flow (-), $m
  -1,210
  -1,723
  -2,371
  -3,193
  -4,204
  -5,413
  -6,824
  -8,431
  -10,225
  -12,192
  -14,313
  -16,568
  -18,938
  -21,403
  -23,947
  -26,556
  -29,217
  -31,923
  -34,671
  -37,458
  -40,285
  -43,157
  -46,078
  -49,056
  -52,100
  -55,220
  -58,424
  -61,725
  -65,133
  -68,661
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
  -184
  -174
  -195
  -232
  -289
  -375
  -497
  -664
  -884
  -1,164
  -1,512
  -1,933
  -2,433
  -3,014
  -3,679
  -4,429
  -5,264
  -6,183
  -7,185
  -8,267
  -9,427
  -10,665
  -11,976
  -13,361
  -14,816
  -16,341
  -17,936
  -19,599
  -21,332
  -23,136
Discount rate, %
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
  -170
  -146
  -149
  -158
  -176
  -201
  -232
  -266
  -301
  -333
  -357
  -372
  -376
  -368
  -348
  -319
  -283
  -243
  -201
  -162
  -126
  -95
  -69
  -48
  -33
  -21
  -13
  -8
  -5
  -3
Current shareholders' claim on cash, %
  67.7
  47.4
  34.3
  25.5
  19.4
  15.1
  12.0
  9.7
  7.9
  6.6
  5.5
  4.7
  4.0
  3.5
  3.0
  2.7
  2.3
  2.1
  1.9
  1.7
  1.5
  1.4
  1.2
  1.1
  1.0
  1.0
  0.9
  0.8
  0.7
  0.7

Golar LNG Limited is a midstream liquefied natural gas (LNG) company engaged primarily in the transportation, regasification, liquefaction and trading of LNG. The Company is engaged in the acquisition, ownership, operation and chartering of LNG carriers and Floating Storage Regasification Unit (FSRUs) through its subsidiaries and affiliates, and the development of LNG projects, such as floating LNGs (FLNGs). The Company's segments include Vessel operations, LNG trading and FLNG. Under the Vessel operations segment, the Company operates and charters out LNG carriers and FSRUs on fixed terms to customers. Through the LNG trading segment, the Company provides physical and financial risk management in LNG and gas markets for customers around the world. The FLNG segment includes the costs associated with the conversion of its LNG carrier, the Hilli, to a FLNG. The Company, along with its affiliate, Golar LNG Partners LP, has a combined fleet of approximately 30 vessels.

FINANCIAL RATIOS  of  Golar LNG (GLNG)

Valuation Ratios
P/E Ratio -14
Price to Sales 32.7
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow -67
Price to Free Cash Flow -9.5
Growth Rates
Sales Growth Rate -22.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -66.3%
Cap. Spend. - 3 Yr. Gr. Rate -20.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.3
LT Debt to Equity 81.9%
Total Debt to Equity 106.1%
Interest Coverage -7
Management Effectiveness
Return On Assets -3.8%
Ret/ On Assets - 3 Yr. Avg. -2.7%
Return On Total Capital -4.9%
Ret/ On T. Cap. - 3 Yr. Avg. -3.7%
Return On Equity -10%
Return On Equity - 3 Yr. Avg. -6.9%
Asset Turnover 0
Profitability Ratios
Gross Margin -25%
Gross Margin - 3 Yr. Avg. -6.7%
EBITDA Margin -138.8%
EBITDA Margin - 3 Yr. Avg. -87.4%
Operating Margin -186.3%
Oper. Margin - 3 Yr. Avg. -79.2%
Pre-Tax Margin -261.3%
Pre-Tax Margin - 3 Yr. Avg. -183.7%
Net Profit Margin -233.8%
Net Profit Margin - 3 Yr. Avg. -148.4%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0.8%
Payout Ratio -28.9%

GLNG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GLNG stock intrinsic value calculation we used $143.537 million for the last fiscal year's total revenue generated by Golar LNG. The default revenue input number comes from 0001 income statement of Golar LNG. 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 GLNG stock valuation model: a) initial revenue growth rate of 60% 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 8.6%, whose default value for GLNG is calculated based on our internal credit rating of Golar LNG, 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 Golar LNG.
    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 GLNG stock the variable cost ratio is equal to 54.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $181 million in the base year in the intrinsic value calculation for GLNG 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 Golar LNG.

Corporate tax rate of 27% is the nominal tax rate for Golar LNG. 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 GLNG 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 GLNG are equal to 2132.1%.

Life of production assets of 40.1 years is the average useful life of capital assets used in Golar LNG 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 GLNG is equal to -268.4%. 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 - $1715.316 million for Golar LNG - 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 98.1 million for Golar LNG 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 Golar LNG at the current share price and the inputted number of shares is $2.5 billion.

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COMPANY NEWS

▶ Golar LNG Dividend Information   [12:44PM  GlobeNewswire]
▶ Golar LNG Limited - Q3 2018 results presentation   [Oct-24-18 12:01PM  GlobeNewswire]
▶ Final Trades: XLF, GLD & more   [Oct-18-18 06:10PM  CNBC Videos]
▶ Pelham Capitals Returns, AUM, and Holdings   [Oct-02-18 09:22AM  Insider Monkey]
▶ Golar LNG Shares Heat Up as Shipping Rates Soar   [Sep-25-18 10:00AM  TheStreet.com]
▶ 2018 Annual General Meeting-Notice Amendment   [Sep-11-18 01:07PM  GlobeNewswire]
▶ 10 Incredible Facts About American LNG Exports   [Sep-09-18 09:32AM  Motley Fool]
▶ Golar LNG: 2Q Earnings Snapshot   [08:37AM  Associated Press]
▶ Golar LNG Dividend information   [08:24AM  GlobeNewswire]
▶ 2018 Annual General Meeting   [Aug-17-18 09:02AM  GlobeNewswire]
▶ Golar LNG Limited - Q2 2018 results presentation   [Aug-14-18 12:06PM  GlobeNewswire]
▶ Completion of sale of equity interest in Golar Hilli LLC   [Jul-12-18 01:17PM  GlobeNewswire]
▶ 2018 Annual General Meeting   [Jul-05-18 10:31AM  GlobeNewswire]
▶ Golar LNG Dividend information   [08:10AM  GlobeNewswire]
▶ Golar LNG: 1Q Earnings Snapshot   [08:09AM  Associated Press]
▶ Golar LNG Limited - Q1 2018 results presentation   [May-21-18 01:01PM  GlobeNewswire]
▶ GLOBAL LNG-June prices slip on healthy supply   [May-11-18 04:16PM  Reuters]
▶ Is It The Right Time To Buy Golar LNG Limited (NASDAQ:GLNG)?   [Apr-20-18 10:50AM  Simply Wall St.]
▶ FLNG Hilli Episeyo and Gandria update   [03:51AM  GlobeNewswire]
▶ Golar LNG tops Street 4Q forecasts   [Feb-28-18 10:47AM  Associated Press]
▶ Golar LNG Dividend information   [08:27AM  GlobeNewswire]
▶ Golar LNG Dividend information   [08:27AM  GlobeNewswire]
▶ Golar LNG Limited to Host Earnings Call   [08:00AM  ACCESSWIRE]
▶ Golar LNG Limited - Q4 2017 results presentation   [Feb-15-18 09:26AM  GlobeNewswire]
▶ Francisco Garcia Parames Buys 19 Stocks in 4th Quarter   [Feb-09-18 05:33PM  GuruFocus.com]
▶ GasLog Partners: Analysts Expect Revenues to Rise 30%   [Jan-26-18 02:45PM  Market Realist]
▶ GasLog Partners Upcoming 4Q17 Results   [01:14PM  Market Realist]
▶ Dynagas LNG Partners: 1 Revised Recommendation in 2017   [Jan-25-18 09:00AM  Market Realist]
▶ Golar LNG Partners Compared to Its Peers   [07:31AM  Market Realist]
▶ GasLog Partners: Barclays Revised the Target Price   [Jan-24-18 10:30AM  Market Realist]
▶ Golar LNGs Earnings Are Expected to Rise 93%   [07:33AM  Market Realist]
▶ GasLog: More than 75% of the Analysts Are Bullish   [Jan-23-18 03:05PM  Market Realist]
▶ New Africa Gas Comes at the Right Time for Europe   [Dec-14-17 07:01PM  Bloomberg]
▶ Golar LNG Dividend Information   [Nov-30-17 09:26AM  GlobeNewswire]

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