Intrinsic value of Kosmos Energy - KOS

Previous Close

$5.67

  Intrinsic Value

$15.66

stock screener

  Rating & Target

str. buy

+176%

Previous close

$5.67

 
Intrinsic value

$15.66

 
Up/down potential

+176%

 
Rating

str. buy

We calculate the intrinsic value of KOS 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 2.3

 

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, %
  47.10
  42.89
  39.10
  35.69
  32.62
  29.86
  27.37
  25.14
  23.12
  21.31
  19.68
  18.21
  16.89
  15.70
  14.63
  13.67
  12.80
  12.02
  11.32
  10.69
  10.12
  9.61
  9.15
  8.73
  8.36
  8.02
  7.72
  7.45
  7.20
  6.98
Revenue, $m
  937
  1,339
  1,862
  2,527
  3,351
  4,351
  5,542
  6,935
  8,539
  10,359
  12,397
  14,655
  17,130
  19,820
  22,720
  25,825
  29,131
  32,633
  36,327
  40,209
  44,278
  48,531
  52,970
  57,595
  62,409
  67,416
  72,620
  78,029
  83,650
  89,491
Variable operating expenses, $m
  309
  442
  614
  834
  1,106
  1,436
  1,829
  2,289
  2,818
  3,418
  4,091
  4,836
  5,653
  6,541
  7,498
  8,522
  9,613
  10,769
  11,988
  13,269
  14,612
  16,015
  17,480
  19,006
  20,595
  22,247
  23,965
  25,750
  27,604
  29,532
Fixed operating expenses, $m
  481
  492
  503
  514
  525
  537
  549
  561
  573
  586
  598
  612
  625
  639
  653
  667
  682
  697
  712
  728
  744
  760
  777
  794
  812
  829
  848
  866
  885
  905
Total operating expenses, $m
  790
  934
  1,117
  1,348
  1,631
  1,973
  2,378
  2,850
  3,391
  4,004
  4,689
  5,448
  6,278
  7,180
  8,151
  9,189
  10,295
  11,466
  12,700
  13,997
  15,356
  16,775
  18,257
  19,800
  21,407
  23,076
  24,813
  26,616
  28,489
  30,437
Operating income, $m
  146
  405
  745
  1,179
  1,720
  2,379
  3,165
  4,086
  5,148
  6,355
  7,708
  9,207
  10,852
  12,641
  14,570
  16,636
  18,836
  21,167
  23,627
  26,212
  28,922
  31,756
  34,713
  37,795
  41,002
  44,339
  47,808
  51,413
  55,160
  59,054
EBITDA, $m
  535
  961
  1,518
  2,228
  3,112
  4,186
  5,467
  6,967
  8,695
  10,658
  12,857
  15,295
  17,968
  20,873
  24,007
  27,363
  30,936
  34,722
  38,716
  42,914
  47,314
  51,914
  56,715
  61,718
  66,925
  72,341
  77,972
  83,824
  89,905
  96,226
Interest expense (income), $m
  28
  77
  141
  228
  341
  484
  662
  878
  1,135
  1,435
  1,781
  2,174
  2,613
  3,100
  3,634
  4,214
  4,840
  5,510
  6,223
  6,978
  7,775
  8,612
  9,490
  10,407
  11,365
  12,362
  13,401
  14,481
  15,603
  16,770
  17,982
Earnings before tax, $m
  69
  264
  517
  838
  1,236
  1,717
  2,287
  2,951
  3,713
  4,574
  5,534
  6,594
  7,752
  9,006
  10,355
  11,796
  13,326
  14,945
  16,649
  18,437
  20,310
  22,266
  24,306
  26,430
  28,640
  30,938
  33,327
  35,810
  38,390
  41,072
Tax expense, $m
  19
  71
  140
  226
  334
  463
  618
  797
  1,003
  1,235
  1,494
  1,780
  2,093
  2,432
  2,796
  3,185
  3,598
  4,035
  4,495
  4,978
  5,484
  6,012
  6,562
  7,136
  7,733
  8,353
  8,998
  9,669
  10,365
  11,089
Net income, $m
  51
  192
  377
  612
  902
  1,253
  1,670
  2,155
  2,711
  3,339
  4,040
  4,814
  5,659
  6,575
  7,559
  8,611
  9,728
  10,910
  12,154
  13,459
  14,826
  16,254
  17,743
  19,294
  20,907
  22,585
  24,329
  26,141
  28,025
  29,982

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
  4,684
  6,693
  9,310
  12,633
  16,754
  21,756
  27,712
  34,677
  42,696
  51,794
  61,987
  73,276
  85,652
  99,101
  113,600
  129,127
  145,657
  163,166
  181,635
  201,047
  221,389
  242,657
  264,850
  287,975
  312,045
  337,078
  363,101
  390,145
  418,248
  447,454
Adjusted assets (=assets-cash), $m
  4,684
  6,693
  9,310
  12,633
  16,754
  21,756
  27,712
  34,677
  42,696
  51,794
  61,987
  73,276
  85,652
  99,101
  113,600
  129,127
  145,657
  163,166
  181,635
  201,047
  221,389
  242,657
  264,850
  287,975
  312,045
  337,078
  363,101
  390,145
  418,248
  447,454
Revenue / Adjusted assets
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
  0.200
Average production assets, $m
  3,697
  5,282
  7,347
  9,970
  13,222
  17,170
  21,870
  27,367
  33,695
  40,876
  48,920
  57,829
  67,597
  78,210
  89,653
  101,907
  114,952
  128,771
  143,347
  158,666
  174,721
  191,505
  209,020
  227,270
  246,266
  266,022
  286,559
  307,902
  330,082
  353,131
Working capital, $m
  -294
  -420
  -585
  -793
  -1,052
  -1,366
  -1,740
  -2,178
  -2,681
  -3,253
  -3,893
  -4,602
  -5,379
  -6,224
  -7,134
  -8,109
  -9,147
  -10,247
  -11,407
  -12,626
  -13,903
  -15,239
  -16,633
  -18,085
  -19,596
  -21,169
  -22,803
  -24,501
  -26,266
  -28,100
Total debt, $m
  2,355
  3,799
  5,681
  8,070
  11,033
  14,630
  18,912
  23,920
  29,685
  36,227
  43,556
  51,673
  60,571
  70,241
  80,666
  91,830
  103,715
  116,304
  129,583
  143,540
  158,166
  173,458
  189,415
  206,042
  223,347
  241,346
  260,057
  279,502
  299,708
  320,707
Total liabilities, $m
  3,368
  4,812
  6,694
  9,083
  12,046
  15,643
  19,925
  24,933
  30,698
  37,240
  44,569
  52,685
  61,584
  71,253
  81,679
  92,842
  104,727
  117,317
  130,596
  144,553
  159,179
  174,471
  190,427
  207,054
  224,360
  242,359
  261,070
  280,514
  300,721
  321,720
Total equity, $m
  1,316
  1,881
  2,616
  3,550
  4,708
  6,113
  7,787
  9,744
  11,997
  14,554
  17,418
  20,590
  24,068
  27,847
  31,922
  36,285
  40,930
  45,850
  51,040
  56,494
  62,210
  68,187
  74,423
  80,921
  87,685
  94,719
  102,031
  109,631
  117,528
  125,735
Total liabilities and equity, $m
  4,684
  6,693
  9,310
  12,633
  16,754
  21,756
  27,712
  34,677
  42,695
  51,794
  61,987
  73,275
  85,652
  99,100
  113,601
  129,127
  145,657
  163,167
  181,636
  201,047
  221,389
  242,658
  264,850
  287,975
  312,045
  337,078
  363,101
  390,145
  418,249
  447,455
Debt-to-equity ratio
  1.790
  2.020
  2.170
  2.270
  2.340
  2.390
  2.430
  2.450
  2.470
  2.490
  2.500
  2.510
  2.520
  2.520
  2.530
  2.530
  2.530
  2.540
  2.540
  2.540
  2.540
  2.540
  2.550
  2.550
  2.550
  2.550
  2.550
  2.550
  2.550
  2.550
Adjusted equity ratio
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281
  0.281

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  51
  192
  377
  612
  902
  1,253
  1,670
  2,155
  2,711
  3,339
  4,040
  4,814
  5,659
  6,575
  7,559
  8,611
  9,728
  10,910
  12,154
  13,459
  14,826
  16,254
  17,743
  19,294
  20,907
  22,585
  24,329
  26,141
  28,025
  29,982
Depreciation, amort., depletion, $m
  389
  556
  773
  1,049
  1,392
  1,807
  2,302
  2,881
  3,547
  4,303
  5,149
  6,087
  7,115
  8,233
  9,437
  10,727
  12,100
  13,555
  15,089
  16,702
  18,392
  20,158
  22,002
  23,923
  25,923
  28,002
  30,164
  32,411
  34,745
  37,172
Funds from operations, $m
  440
  748
  1,151
  1,661
  2,294
  3,061
  3,972
  5,035
  6,257
  7,642
  9,189
  10,901
  12,774
  14,807
  16,996
  19,338
  21,829
  24,464
  27,243
  30,161
  33,218
  36,413
  39,745
  43,217
  46,830
  50,587
  54,493
  58,552
  62,770
  67,154
Change in working capital, $m
  -94
  -126
  -164
  -209
  -259
  -314
  -374
  -437
  -504
  -571
  -640
  -709
  -777
  -845
  -911
  -975
  -1,038
  -1,100
  -1,160
  -1,219
  -1,278
  -1,336
  -1,394
  -1,452
  -1,512
  -1,572
  -1,634
  -1,698
  -1,765
  -1,834
Cash from operations, $m
  534
  875
  1,315
  1,870
  2,553
  3,375
  4,346
  5,473
  6,761
  8,213
  9,830
  11,610
  13,552
  15,652
  17,907
  20,313
  22,867
  25,564
  28,403
  31,380
  34,495
  37,748
  41,139
  44,669
  48,341
  52,159
  56,127
  60,250
  64,535
  68,988
Maintenance CAPEX, $m
  -265
  -389
  -556
  -773
  -1,049
  -1,392
  -1,807
  -2,302
  -2,881
  -3,547
  -4,303
  -5,149
  -6,087
  -7,115
  -8,233
  -9,437
  -10,727
  -12,100
  -13,555
  -15,089
  -16,702
  -18,392
  -20,158
  -22,002
  -23,923
  -25,923
  -28,002
  -30,164
  -32,411
  -34,745
New CAPEX, $m
  -1,183
  -1,585
  -2,065
  -2,622
  -3,252
  -3,948
  -4,700
  -5,497
  -6,328
  -7,181
  -8,044
  -8,909
  -9,768
  -10,614
  -11,443
  -12,254
  -13,045
  -13,819
  -14,576
  -15,320
  -16,054
  -16,785
  -17,515
  -18,250
  -18,996
  -19,756
  -20,537
  -21,343
  -22,179
  -23,049
Cash from investing activities, $m
  -1,448
  -1,974
  -2,621
  -3,395
  -4,301
  -5,340
  -6,507
  -7,799
  -9,209
  -10,728
  -12,347
  -14,058
  -15,855
  -17,729
  -19,676
  -21,691
  -23,772
  -25,919
  -28,131
  -30,409
  -32,756
  -35,177
  -37,673
  -40,252
  -42,919
  -45,679
  -48,539
  -51,507
  -54,590
  -57,794
Free cash flow, $m
  -914
  -1,100
  -1,306
  -1,526
  -1,749
  -1,965
  -2,162
  -2,327
  -2,448
  -2,515
  -2,517
  -2,449
  -2,303
  -2,077
  -1,769
  -1,378
  -906
  -355
  272
  971
  1,739
  2,572
  3,466
  4,417
  5,423
  6,480
  7,588
  8,743
  9,945
  11,193
Issuance/(repayment) of debt, $m
  1,072
  1,444
  1,882
  2,389
  2,963
  3,597
  4,282
  5,008
  5,765
  6,542
  7,329
  8,117
  8,899
  9,669
  10,425
  11,164
  11,885
  12,589
  13,279
  13,957
  14,626
  15,292
  15,957
  16,627
  17,306
  17,999
  18,710
  19,445
  20,206
  20,999
Issuance/(repurchase) of shares, $m
  368
  372
  358
  322
  256
  153
  4
  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  
  1,440
  1,816
  2,240
  2,711
  3,219
  3,750
  4,286
  5,008
  5,765
  6,542
  7,329
  8,117
  8,899
  9,669
  10,425
  11,164
  11,885
  12,589
  13,279
  13,957
  14,626
  15,292
  15,957
  16,627
  17,306
  17,999
  18,710
  19,445
  20,206
  20,999
Total cash flow (excl. dividends), $m
  527
  717
  933
  1,185
  1,470
  1,784
  2,124
  2,682
  3,317
  4,027
  4,811
  5,668
  6,596
  7,592
  8,657
  9,786
  10,979
  12,235
  13,551
  14,928
  16,366
  17,864
  19,422
  21,044
  22,729
  24,479
  26,298
  28,188
  30,151
  32,192
Retained Cash Flow (-), $m
  -419
  -565
  -735
  -934
  -1,158
  -1,406
  -1,673
  -1,957
  -2,253
  -2,557
  -2,864
  -3,172
  -3,478
  -3,779
  -4,074
  -4,363
  -4,645
  -4,920
  -5,190
  -5,455
  -5,716
  -5,976
  -6,236
  -6,498
  -6,764
  -7,034
  -7,312
  -7,599
  -7,897
  -8,207
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
  108
  152
  198
  251
  312
  379
  451
  724
  1,064
  1,471
  1,947
  2,496
  3,118
  3,813
  4,582
  5,423
  6,334
  7,314
  8,361
  9,474
  10,649
  11,887
  13,186
  14,546
  15,965
  17,445
  18,986
  20,588
  22,254
  23,986
Discount rate, %
  7.00
  7.35
  7.72
  8.10
  8.51
  8.93
  9.38
  9.85
  10.34
  10.86
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.85
  17.69
  18.57
  19.50
  20.48
  21.50
  22.58
  23.70
  24.89
  26.13
  27.44
  28.81
PV of cash for distribution, $m
  101
  132
  158
  184
  207
  227
  241
  342
  439
  525
  594
  643
  669
  672
  654
  617
  565
  502
  434
  365
  298
  236
  182
  136
  98
  69
  47
  31
  20
  12
Current shareholders' claim on cash, %
  86.0
  77.3
  71.9
  68.5
  66.6
  65.8
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7
  65.7

Kosmos Energy Ltd. (Kosmos) is an independent oil and gas exploration and production company. The Company is focused on the emerging areas along the Atlantic Margins. Its assets include existing production and development projects offshore Ghana, discoveries and further exploration potential offshore Mauritania and Senegal, as well as exploration licenses with hydrocarbon potential offshore Sao Tome and Principe, Suriname, Morocco and Western Sahara. The Company has operations in Africa and South America. The West Cape Three Points (WCTP) Block and Deepwater Tano (DT) Block are located within the Tano Basin, offshore Ghana. The Tano Basin represents the eastern extension of the Deep Ivorian Basin, which resulted from the development of an extensional sedimentary basin caused by tensional forces associated with opening of the Atlantic Ocean, as South America separated from Africa in the Mid-Cretaceous period.

FINANCIAL RATIOS  of  Kosmos Energy (KOS)

Valuation Ratios
P/E Ratio -7.7
Price to Sales 7.1
Price to Book 2
Price to Tangible Book
Price to Cash Flow 42.2
Price to Free Cash Flow -4.5
Growth Rates
Sales Growth Rate -30.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -34.8%
Cap. Spend. - 3 Yr. Gr. Rate 10.8%
Financial Strength
Quick Ratio NaN
Current Ratio 0.2
LT Debt to Equity 122.3%
Total Debt to Equity 122.3%
Interest Coverage -10
Management Effectiveness
Return On Assets -7.9%
Ret/ On Assets - 3 Yr. Avg. -0%
Return On Total Capital -12.4%
Ret/ On T. Cap. - 3 Yr. Avg. -0.5%
Return On Equity -23.6%
Return On Equity - 3 Yr. Avg. -1.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 61.6%
Gross Margin - 3 Yr. Avg. 75.4%
EBITDA Margin -37.4%
EBITDA Margin - 3 Yr. Avg. 40.2%
Operating Margin -89.4%
Oper. Margin - 3 Yr. Avg. -25.9%
Pre-Tax Margin -95.2%
Pre-Tax Margin - 3 Yr. Avg. -2.9%
Net Profit Margin -91.6%
Net Profit Margin - 3 Yr. Avg. -24.9%
Effective Tax Rate 3.7%
Eff/ Tax Rate - 3 Yr. Avg. 79.3%
Payout Ratio 0%

KOS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KOS stock intrinsic value calculation we used $636.836 million for the last fiscal year's total revenue generated by Kosmos Energy. The default revenue input number comes from 0001 income statement of Kosmos Energy. 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 KOS stock valuation model: a) initial revenue growth rate of 47.1% 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%, whose default value for KOS is calculated based on our internal credit rating of Kosmos Energy, 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 Kosmos Energy.
    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 KOS stock the variable cost ratio is equal to 33%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $471 million in the base year in the intrinsic value calculation for KOS 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% for Kosmos Energy.

Corporate tax rate of 27% is the nominal tax rate for Kosmos Energy. 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 KOS 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 KOS are equal to 394.6%.

Life of production assets of 9.5 years is the average useful life of capital assets used in Kosmos Energy 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 KOS is equal to -31.4%. 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 - $897.112 million for Kosmos Energy - 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 398.403 million for Kosmos Energy 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 Kosmos Energy at the current share price and the inputted number of shares is $2.3 billion.

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COMPANY NEWS

▶ The Next Offshore Boom: Is Senegal The New Guyana?   [Nov-12-18 04:00PM  Oilprice.com]
▶ This Oil Boom Is Going Under The Radar   [05:00PM  Oilprice.com]
▶ Kosmos Energy: 3Q Earnings Snapshot   [Nov-05-18 05:05AM  Associated Press]
▶ [$$] Deal Close Announcements: Sept. 24-28   [Sep-28-18 04:51PM  The Wall Street Journal]
▶ Kosmos Energy Completes Acquisition of Deep Gulf Energy   [Sep-17-18 02:00AM  Business Wire]
▶ The Next Global Oil Hotspot   [Sep-06-18 04:00PM  Oilprice.com]
▶ The Oil Bulls Are Back   [Aug-07-18 03:00PM  Oilprice.com]
▶ Merger Monday Returns With A Vengeance   [Aug-06-18 03:50PM  Benzinga]
▶ Dallas oil company wades into Gulf in $1.2B deal   [12:34PM  American City Business Journals]
▶ Kosmos Energy: 2Q Earnings Snapshot   [05:03AM  Associated Press]
▶ Kosmos Energy Announces Successful Arbitration   [Jul-18-18 02:00AM  Business Wire]
▶ Top Ranked Momentum Stocks to Buy for July 6th   [Jul-06-18 09:49AM  Zacks]
▶ When Will Kosmos Energy Ltd (NYSE:KOS) Breakeven?   [Jun-27-18 11:04AM  Simply Wall St.]
▶ 2 Oil Stocks at Bargain Prices   [Jun-12-18 11:13AM  Barrons.com]
▶ Iran Tensions Send Oil Spiking Again   [May-22-18 03:00PM  Oilprice.com]
▶ Is Kosmos Energy Ltd (NYSE:KOS) A Strong Oil & Gas Bet?   [May-11-18 01:31PM  Simply Wall St.]
▶ Kosmos Energy Ltd. to Host Earnings Call   [May-07-18 08:45AM  ACCESSWIRE]
▶ Kosmos Energy: 1Q Earnings Snapshot   [05:02AM  Associated Press]
▶ What Are The Drivers Of Kosmos Energy Ltds (NYSE:KOS) Risks?   [May-02-18 06:02PM  Simply Wall St.]
▶ Senegal Has A Chance To Dodge The Oil Curse   [Apr-19-18 06:20PM  Oilprice.com]
▶ This analyst thinks energy stocks are ready for a rally   [Mar-26-18 01:35PM  CNBC Videos]
▶ Why Kosmos Energy Ltd (NYSE:KOS) Could Be A Buy   [Mar-20-18 09:26AM  Simply Wall St.]
▶ When Will Kosmos Energy Ltd (NYSE:KOS) Become Profitable?   [Mar-05-18 01:47PM  Simply Wall St.]
▶ Kosmos Energy reports 4Q loss   [05:01AM  Associated Press]
▶ Equity Market Selloff Continues   [Feb-05-18 04:55PM  GuruFocus.com]
▶ 9 Best Energy Stocks To Own Before Earnings   [Feb-01-18 10:13AM  Benzinga]
▶ Here's how this analyst is playing the energy rally   [Jan-24-18 04:15PM  CNBC Videos]

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