Intrinsic value of KLX - KLXI

Previous Close

$61.76

  Intrinsic Value

$5.96

stock screener

  Rating & Target

str. sell

-90%

Previous close

$61.76

 
Intrinsic value

$5.96

 
Up/down potential

-90%

 
Rating

str. sell

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

We calculate the intrinsic value of KLXI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -4.66
  13.70
  12.83
  12.05
  11.34
  10.71
  10.14
  9.62
  9.16
  8.75
  8.37
  8.03
  7.73
  7.46
  7.21
  6.99
  6.79
  6.61
  6.45
  6.31
  6.18
  6.06
  5.95
  5.86
  5.77
  5.69
  5.62
  5.56
  5.51
  5.46
  5.41
Revenue, $m
  1,494
  1,699
  1,917
  2,148
  2,391
  2,647
  2,915
  3,196
  3,489
  3,794
  4,112
  4,442
  4,785
  5,142
  5,513
  5,898
  6,299
  6,715
  7,148
  7,599
  8,068
  8,557
  9,067
  9,598
  10,151
  10,729
  11,333
  11,963
  12,622
  13,311
  14,031
Variable operating expenses, $m
 
  2,268
  2,546
  2,841
  3,151
  3,478
  3,821
  4,179
  4,553
  4,942
  5,347
  5,669
  6,107
  6,563
  7,036
  7,528
  8,039
  8,571
  9,124
  9,699
  10,298
  10,922
  11,572
  12,250
  12,957
  13,694
  14,465
  15,269
  16,110
  16,989
  17,908
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
  1,365
  2,268
  2,546
  2,841
  3,151
  3,478
  3,821
  4,179
  4,553
  4,942
  5,347
  5,669
  6,107
  6,563
  7,036
  7,528
  8,039
  8,571
  9,124
  9,699
  10,298
  10,922
  11,572
  12,250
  12,957
  13,694
  14,465
  15,269
  16,110
  16,989
  17,908
Operating income, $m
  129
  -569
  -629
  -693
  -760
  -831
  -905
  -983
  -1,064
  -1,148
  -1,236
  -1,227
  -1,322
  -1,421
  -1,523
  -1,630
  -1,741
  -1,856
  -1,975
  -2,100
  -2,230
  -2,365
  -2,505
  -2,652
  -2,805
  -2,965
  -3,132
  -3,306
  -3,488
  -3,678
  -3,877
EBITDA, $m
  196
  -442
  -499
  -559
  -622
  -689
  -759
  -832
  -908
  -988
  -1,070
  -1,156
  -1,246
  -1,338
  -1,435
  -1,535
  -1,640
  -1,748
  -1,861
  -1,978
  -2,100
  -2,227
  -2,360
  -2,498
  -2,642
  -2,793
  -2,950
  -3,114
  -3,285
  -3,465
  -3,652
Interest expense (income), $m
  72
  72
  84
  98
  112
  126
  142
  158
  175
  192
  211
  230
  250
  271
  292
  314
  338
  362
  387
  413
  440
  469
  498
  529
  561
  594
  629
  665
  703
  743
  785
Earnings before tax, $m
  54
  -641
  -714
  -791
  -872
  -957
  -1,047
  -1,141
  -1,238
  -1,340
  -1,447
  -1,457
  -1,572
  -1,691
  -1,815
  -1,944
  -2,078
  -2,217
  -2,362
  -2,513
  -2,670
  -2,833
  -3,003
  -3,181
  -3,366
  -3,559
  -3,761
  -3,971
  -4,191
  -4,421
  -4,662
Tax expense, $m
  6
  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
  48
  -641
  -714
  -791
  -872
  -957
  -1,047
  -1,141
  -1,238
  -1,340
  -1,447
  -1,457
  -1,572
  -1,691
  -1,815
  -1,944
  -2,078
  -2,217
  -2,362
  -2,513
  -2,670
  -2,833
  -3,003
  -3,181
  -3,366
  -3,559
  -3,761
  -3,971
  -4,191
  -4,421
  -4,662

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  277
  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
  3,698
  3,887
  4,386
  4,914
  5,472
  6,058
  6,672
  7,314
  7,984
  8,682
  9,409
  10,164
  10,950
  11,767
  12,615
  13,497
  14,414
  15,367
  16,358
  17,389
  18,463
  19,582
  20,747
  21,962
  23,230
  24,553
  25,934
  27,376
  28,883
  30,459
  32,107
Adjusted assets (=assets-cash), $m
  3,421
  3,887
  4,386
  4,914
  5,472
  6,058
  6,672
  7,314
  7,984
  8,682
  9,409
  10,164
  10,950
  11,767
  12,615
  13,497
  14,414
  15,367
  16,358
  17,389
  18,463
  19,582
  20,747
  21,962
  23,230
  24,553
  25,934
  27,376
  28,883
  30,459
  32,107
Revenue / Adjusted assets
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
  0.437
Average production assets, $m
  544
  618
  698
  782
  870
  964
  1,061
  1,163
  1,270
  1,381
  1,497
  1,617
  1,742
  1,872
  2,007
  2,147
  2,293
  2,444
  2,602
  2,766
  2,937
  3,115
  3,300
  3,494
  3,695
  3,906
  4,125
  4,355
  4,594
  4,845
  5,107
Working capital, $m
  1,703
  849
  958
  1,074
  1,196
  1,324
  1,458
  1,598
  1,744
  1,897
  2,056
  2,221
  2,393
  2,571
  2,756
  2,949
  3,149
  3,358
  3,574
  3,800
  4,034
  4,279
  4,533
  4,799
  5,076
  5,365
  5,666
  5,982
  6,311
  6,655
  7,015
Total debt, $m
  1,182
  1,384
  1,600
  1,828
  2,069
  2,322
  2,587
  2,864
  3,154
  3,456
  3,769
  4,096
  4,435
  4,788
  5,155
  5,536
  5,932
  6,343
  6,772
  7,217
  7,681
  8,164
  8,668
  9,193
  9,740
  10,312
  10,908
  11,531
  12,183
  12,863
  13,575
Total liabilities, $m
  1,477
  1,679
  1,895
  2,123
  2,364
  2,617
  2,882
  3,159
  3,449
  3,751
  4,064
  4,391
  4,730
  5,083
  5,450
  5,831
  6,227
  6,638
  7,067
  7,512
  7,976
  8,459
  8,963
  9,488
  10,035
  10,607
  11,203
  11,826
  12,478
  13,158
  13,870
Total equity, $m
  2,221
  2,208
  2,491
  2,791
  3,108
  3,441
  3,789
  4,154
  4,535
  4,931
  5,344
  5,773
  6,220
  6,683
  7,165
  7,666
  8,187
  8,728
  9,291
  9,877
  10,487
  11,122
  11,784
  12,475
  13,195
  13,946
  14,730
  15,550
  16,406
  17,301
  18,237
Total liabilities and equity, $m
  3,698
  3,887
  4,386
  4,914
  5,472
  6,058
  6,671
  7,313
  7,984
  8,682
  9,408
  10,164
  10,950
  11,766
  12,615
  13,497
  14,414
  15,366
  16,358
  17,389
  18,463
  19,581
  20,747
  21,963
  23,230
  24,553
  25,933
  27,376
  28,884
  30,459
  32,107
Debt-to-equity ratio
  0.532
  0.630
  0.640
  0.650
  0.670
  0.670
  0.680
  0.690
  0.700
  0.700
  0.710
  0.710
  0.710
  0.720
  0.720
  0.720
  0.720
  0.730
  0.730
  0.730
  0.730
  0.730
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
  0.740
Adjusted equity ratio
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568
  0.568

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  48
  -641
  -714
  -791
  -872
  -957
  -1,047
  -1,141
  -1,238
  -1,340
  -1,447
  -1,457
  -1,572
  -1,691
  -1,815
  -1,944
  -2,078
  -2,217
  -2,362
  -2,513
  -2,670
  -2,833
  -3,003
  -3,181
  -3,366
  -3,559
  -3,761
  -3,971
  -4,191
  -4,421
  -4,662
Depreciation, amort., depletion, $m
  67
  127
  130
  134
  138
  142
  146
  151
  156
  160
  166
  71
  77
  82
  88
  95
  101
  108
  115
  122
  129
  137
  145
  154
  163
  172
  182
  192
  202
  213
  225
Funds from operations, $m
  150
  -514
  -583
  -657
  -734
  -815
  -901
  -990
  -1,083
  -1,180
  -1,281
  -1,386
  -1,495
  -1,609
  -1,727
  -1,850
  -1,977
  -2,110
  -2,248
  -2,391
  -2,540
  -2,696
  -2,858
  -3,027
  -3,203
  -3,387
  -3,579
  -3,779
  -3,989
  -4,208
  -4,437
Change in working capital, $m
  -1
  102
  109
  115
  122
  128
  134
  140
  146
  153
  159
  165
  172
  178
  185
  193
  200
  208
  217
  225
  235
  244
  255
  266
  277
  289
  302
  315
  329
  344
  360
Cash from operations, $m
  151
  -617
  -692
  -772
  -856
  -943
  -1,035
  -1,130
  -1,229
  -1,332
  -1,440
  -1,551
  -1,667
  -1,787
  -1,912
  -2,042
  -2,178
  -2,318
  -2,464
  -2,617
  -2,775
  -2,940
  -3,113
  -3,292
  -3,480
  -3,676
  -3,881
  -4,095
  -4,318
  -4,552
  -4,797
Maintenance CAPEX, $m
  0
  -24
  -27
  -31
  -34
  -38
  -42
  -47
  -51
  -56
  -61
  -66
  -71
  -77
  -82
  -88
  -95
  -101
  -108
  -115
  -122
  -129
  -137
  -145
  -154
  -163
  -172
  -182
  -192
  -202
  -213
New CAPEX, $m
  -36
  -74
  -79
  -84
  -89
  -93
  -98
  -102
  -107
  -111
  -116
  -120
  -125
  -130
  -135
  -140
  -146
  -152
  -158
  -164
  -171
  -178
  -185
  -193
  -202
  -210
  -220
  -229
  -240
  -251
  -262
Cash from investing activities, $m
  -256
  -98
  -106
  -115
  -123
  -131
  -140
  -149
  -158
  -167
  -177
  -186
  -196
  -207
  -217
  -228
  -241
  -253
  -266
  -279
  -293
  -307
  -322
  -338
  -356
  -373
  -392
  -411
  -432
  -453
  -475
Free cash flow, $m
  -105
  -715
  -799
  -887
  -979
  -1,075
  -1,175
  -1,279
  -1,387
  -1,499
  -1,616
  -1,737
  -1,863
  -1,994
  -2,130
  -2,271
  -2,418
  -2,571
  -2,730
  -2,895
  -3,068
  -3,248
  -3,435
  -3,631
  -3,836
  -4,049
  -4,272
  -4,506
  -4,750
  -5,005
  -5,272
Issuance/(repayment) of debt, $m
  0
  202
  215
  228
  241
  253
  265
  277
  289
  302
  314
  327
  339
  353
  367
  381
  396
  412
  428
  446
  464
  483
  503
  525
  548
  571
  597
  623
  651
  681
  712
Issuance/(repurchase) of shares, $m
  -43
  905
  997
  1,091
  1,188
  1,290
  1,396
  1,505
  1,619
  1,737
  1,859
  1,887
  2,018
  2,155
  2,297
  2,445
  2,599
  2,759
  2,925
  3,099
  3,280
  3,468
  3,665
  3,871
  4,086
  4,310
  4,545
  4,791
  5,047
  5,316
  5,598
Cash from financing (excl. dividends), $m  
  -43
  1,107
  1,212
  1,319
  1,429
  1,543
  1,661
  1,782
  1,908
  2,039
  2,173
  2,214
  2,357
  2,508
  2,664
  2,826
  2,995
  3,171
  3,353
  3,545
  3,744
  3,951
  4,168
  4,396
  4,634
  4,881
  5,142
  5,414
  5,698
  5,997
  6,310
Total cash flow (excl. dividends), $m
  -151
  392
  414
  432
  450
  468
  486
  504
  521
  539
  557
  476
  495
  514
  534
  555
  577
  600
  624
  649
  676
  704
  734
  765
  798
  833
  869
  908
  949
  992
  1,037
Retained Cash Flow (-), $m
  -18
  -905
  -997
  -1,091
  -1,188
  -1,290
  -1,396
  -1,505
  -1,619
  -1,737
  -1,859
  -1,887
  -2,018
  -2,155
  -2,297
  -2,445
  -2,599
  -2,759
  -2,925
  -3,099
  -3,280
  -3,468
  -3,665
  -3,871
  -4,086
  -4,310
  -4,545
  -4,791
  -5,047
  -5,316
  -5,598
Prev. year cash balance distribution, $m
 
  277
  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
 
  -236
  -583
  -659
  -738
  -822
  -910
  -1,002
  -1,098
  -1,198
  -1,302
  -1,411
  -1,524
  -1,641
  -1,763
  -1,890
  -2,022
  -2,159
  -2,301
  -2,450
  -2,604
  -2,764
  -2,932
  -3,106
  -3,288
  -3,478
  -3,676
  -3,883
  -4,099
  -4,324
  -4,561
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  -221
  -511
  -535
  -552
  -562
  -564
  -558
  -545
  -525
  -498
  -466
  -430
  -391
  -349
  -307
  -266
  -226
  -189
  -155
  -124
  -98
  -75
  -57
  -42
  -30
  -21
  -14
  -9
  -6
  -4
Current shareholders' claim on cash, %
  100
  75.4
  57.3
  43.9
  33.8
  26.2
  20.4
  16.0
  12.5
  9.9
  7.8
  6.3
  5.0
  4.1
  3.3
  2.6
  2.1
  1.7
  1.4
  1.1
  0.9
  0.7
  0.6
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.1
  0.1

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company's ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company's ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

FINANCIAL RATIOS  of  KLX (KLXI)

Valuation Ratios
P/E Ratio 66.9
Price to Sales 2.1
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 21.3
Price to Free Cash Flow 27.9
Growth Rates
Sales Growth Rate -4.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -72.5%
Cap. Spend. - 3 Yr. Gr. Rate 4.4%
Financial Strength
Quick Ratio NaN
Current Ratio 0.2
LT Debt to Equity 53.2%
Total Debt to Equity 53.2%
Interest Coverage 2
Management Effectiveness
Return On Assets 3%
Ret/ On Assets - 3 Yr. Avg. -1%
Return On Total Capital 1.4%
Ret/ On T. Cap. - 3 Yr. Avg. -2.2%
Return On Equity 2.2%
Return On Equity - 3 Yr. Avg. -3.5%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 24.6%
Gross Margin - 3 Yr. Avg. 25.8%
EBITDA Margin 12.9%
EBITDA Margin - 3 Yr. Avg. 0.5%
Operating Margin 8.6%
Oper. Margin - 3 Yr. Avg. -3.7%
Pre-Tax Margin 3.6%
Pre-Tax Margin - 3 Yr. Avg. -7.1%
Net Profit Margin 3.2%
Net Profit Margin - 3 Yr. Avg. -5.4%
Effective Tax Rate 11.1%
Eff/ Tax Rate - 3 Yr. Avg. 37.4%
Payout Ratio 0%

KLXI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KLXI stock intrinsic value calculation we used $1494 million for the last fiscal year's total revenue generated by KLX. The default revenue input number comes from 2017 income statement of KLX. 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 KLXI stock valuation model: a) initial revenue growth rate of 13.7% 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 6.5%, whose default value for KLXI is calculated based on our internal credit rating of KLX, 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 KLX.
    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 KLXI stock the variable cost ratio is equal to 134.3%.

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 KLXI 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 6.1% for KLX.

Corporate tax rate of 27% is the nominal tax rate for KLX. 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 KLXI 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 KLXI are equal to 36.4%.

Life of production assets of 22.7 years is the average useful life of capital assets used in KLX 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 KLXI is equal to 50%. 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 - $2221 million for KLX - 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 51.403 million for KLX 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 KLX at the current share price and the inputted number of shares is $3.2 billion.

RELATED COMPANIES Price Int.Val. Rating
HON Honeywell Inte 154.25 134.31  hold
WAIR Wesco Aircraft 6.80 0.76  str.sell
AVT Avnet 39.06 16.59  str.sell
LAWS Lawson Product 24.95 1.91  str.sell
MSM MSC Industrial 91.70 63.64  sell
GWW W.W. Grainger 229.97 178.97  hold
FAST Fastenal 53.28 32.05  sell
HEI Heico 96.13 58.83  sell
HEES H&E Equipment 38.35 10.13  str.sell

COMPANY NEWS

▶ KLX, Inc. Value Analysis (NASDAQ:KLXI) : December 7, 2017   [Dec-07-17 02:55PM  Capital Cube]
▶ KLX, Inc. to Host Earnings Call   [07:00AM  ACCESSWIRE]
▶ KLX beats 3Q profit forecasts   [05:03AM  Associated Press]
▶ Estimating The Intrinsic Value Of KLX Inc (KLXI)   [Dec-05-17 05:05PM  Simply Wall St.]
▶ Should You Buy KLX Inc (KLXI) At $54.71?   [Nov-20-17 02:15PM  Simply Wall St.]
▶ ETFs with exposure to KLX, Inc. : October 10, 2017   [Oct-10-17 11:35AM  Capital Cube]
▶ Gabelli & Companys Aerospace & Defense Conference   [Sep-05-17 09:11AM  Business Wire]
▶ ETFs with exposure to KLX, Inc. : August 31, 2017   [Aug-31-17 07:10PM  Capital Cube]
▶ Gabelli & Companys Aerospace & Defense Conference   [Aug-24-17 07:00AM  Business Wire]
▶ KLX misses 2Q profit forecasts   [08:32PM  Associated Press]
▶ 9 Stocks First Eagle Continues to Buy   [Aug-22-17 05:24PM  GuruFocus.com]
▶ Breakout Watch: Aerospace Stock With 158% Growth Up Ahead Of Earnings   [Aug-08-17 03:28AM  Investor's Business Daily]
▶ 3 Under-the-Radar Defense Plays   [Jul-13-17 12:56PM  Investopedia]
▶ Why KLX Inc. (KLI) Stock Might be a Great Pick   [Jul-06-17 08:37AM  Zacks]
▶ Why KLX (KLXI) Could Shock the Market Soon   [Jul-05-17 09:00AM  Zacks]
▶ ETFs with exposure to KLX, Inc. : June 12, 2017   [Jun-12-17 02:11PM  Capital Cube]
▶ ETFs with exposure to KLX, Inc. : May 31, 2017   [May-31-17 12:38PM  Capital Cube]
▶ KLX beats 1Q profit forecasts   [May-24-17 05:01AM  Associated Press]
▶ 5 Earnings Short-Squeeze Plays: Tiffany, Best Buy and More   [May-22-17 01:21PM  TheStreet.com]
▶ ETFs with exposure to KLX, Inc. : May 2, 2017   [May-02-17 04:14PM  Capital Cube]
▶ ETFs with exposure to KLX, Inc. : April 19, 2017   [Apr-19-17 02:25PM  Capital Cube]
▶ KLX Inc. Announces Filing of Extension for Form 10-K   [Apr-04-17 06:30AM  GlobeNewswire]
▶ KLX beats 4Q profit forecasts   [05:10AM  Associated Press]
▶ 5 Small-cap Stocks Billionaires Are Piling Into   [Nov-30-16 02:02PM  at Insider Monkey]
▶ KLX Inc. Announces Major New Business Award   [Oct-20-16 08:30AM  GlobeNewswire]
▶ [$$] KLX Shares Could Lift Off As Aerospace Sales Rebound   [Sep-24-16 01:00AM  at Barrons.com]
Financial statements of KLXI
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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