Intrinsic value of Loews - L

Previous Close

$52.80

  Intrinsic Value

$59.77

stock screener

  Rating & Target

hold

+13%

Previous close

$52.80

 
Intrinsic value

$59.77

 
Up/down potential

+13%

 
Rating

hold

Our model is not good at valuating stocks of financial companies, such as L.

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

We calculate the intrinsic value of L 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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, %
  -2.84
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
Revenue, $m
  0
  14,069
  14,988
  15,944
  16,939
  17,975
  19,054
  20,179
  21,352
  22,576
  23,853
  25,187
  26,581
  28,037
  29,560
  31,153
  32,820
  34,564
  36,391
  38,303
  40,306
  42,405
  44,604
  46,909
  49,325
  51,858
  54,514
  57,300
  60,221
  63,286
  66,501
Variable operating expenses, $m
 
  13,279
  14,144
  15,044
  15,980
  16,956
  17,971
  19,030
  20,135
  21,287
  22,489
  23,710
  25,022
  26,394
  27,827
  29,327
  30,896
  32,538
  34,257
  36,058
  37,943
  39,919
  41,989
  44,159
  46,433
  48,818
  51,318
  53,941
  56,691
  59,576
  62,603
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
  11,714
  13,279
  14,144
  15,044
  15,980
  16,956
  17,971
  19,030
  20,135
  21,287
  22,489
  23,710
  25,022
  26,394
  27,827
  29,327
  30,896
  32,538
  34,257
  36,058
  37,943
  39,919
  41,989
  44,159
  46,433
  48,818
  51,318
  53,941
  56,691
  59,576
  62,603
Operating income, $m
  1,472
  790
  844
  900
  958
  1,019
  1,082
  1,148
  1,217
  1,289
  1,364
  1,477
  1,558
  1,644
  1,733
  1,826
  1,924
  2,026
  2,133
  2,245
  2,363
  2,486
  2,615
  2,750
  2,892
  3,040
  3,196
  3,359
  3,530
  3,710
  3,899
EBITDA, $m
  2,313
  1,681
  1,791
  1,905
  2,024
  2,147
  2,276
  2,411
  2,551
  2,697
  2,850
  3,009
  3,175
  3,350
  3,531
  3,722
  3,921
  4,129
  4,347
  4,576
  4,815
  5,066
  5,329
  5,604
  5,893
  6,195
  6,513
  6,845
  7,194
  7,561
  7,945
Interest expense (income), $m
  511
  517
  708
  904
  1,108
  1,319
  1,540
  1,770
  2,009
  2,259
  2,520
  2,792
  3,076
  3,372
  3,683
  4,007
  4,346
  4,701
  5,072
  5,461
  5,869
  6,295
  6,742
  7,210
  7,701
  8,215
  8,755
  9,320
  9,914
  10,536
  11,188
Earnings before tax, $m
  936
  273
  136
  -4
  -149
  -300
  -458
  -621
  -792
  -970
  -1,156
  -1,315
  -1,517
  -1,729
  -1,950
  -2,181
  -2,422
  -2,675
  -2,939
  -3,216
  -3,506
  -3,809
  -4,127
  -4,460
  -4,809
  -5,175
  -5,559
  -5,961
  -6,383
  -6,826
  -7,290
Tax expense, $m
  220
  74
  37
  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
  654
  199
  99
  -4
  -149
  -300
  -458
  -621
  -792
  -970
  -1,156
  -1,315
  -1,517
  -1,729
  -1,950
  -2,181
  -2,422
  -2,675
  -2,939
  -3,216
  -3,506
  -3,809
  -4,127
  -4,460
  -4,809
  -5,175
  -5,559
  -5,961
  -6,383
  -6,826
  -7,290

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
  0
Total assets, $m
  76,594
  81,799
  87,141
  92,698
  98,481
  104,504
  110,778
  117,318
  124,138
  131,253
  138,680
  146,436
  154,539
  163,008
  171,863
  181,124
  190,814
  200,956
  211,574
  222,692
  234,338
  246,540
  259,325
  272,726
  286,773
  301,500
  316,943
  333,139
  350,125
  367,943
  386,634
Adjusted assets (=assets-cash), $m
  76,594
  81,799
  87,141
  92,698
  98,481
  104,504
  110,778
  117,318
  124,138
  131,253
  138,680
  146,436
  154,539
  163,008
  171,863
  181,124
  190,814
  200,956
  211,574
  222,692
  234,338
  246,540
  259,325
  272,726
  286,773
  301,500
  316,943
  333,139
  350,125
  367,943
  386,634
Revenue / Adjusted assets
  0.000
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
  0.172
Average production assets, $m
  7,615
  8,132
  8,663
  9,216
  9,791
  10,389
  11,013
  11,663
  12,341
  13,049
  13,787
  14,558
  15,364
  16,206
  17,086
  18,007
  18,970
  19,978
  21,034
  22,139
  23,297
  24,510
  25,781
  27,113
  28,510
  29,974
  31,509
  33,119
  34,808
  36,579
  38,438
Working capital, $m
  0
  113
  120
  128
  136
  144
  152
  161
  171
  181
  191
  201
  213
  224
  236
  249
  263
  277
  291
  306
  322
  339
  357
  375
  395
  415
  436
  458
  482
  506
  532
Total debt, $m
  10,778
  14,760
  18,835
  23,075
  27,488
  32,083
  36,871
  41,860
  47,064
  52,493
  58,160
  64,078
  70,260
  76,722
  83,478
  90,545
  97,938
  105,677
  113,778
  122,261
  131,147
  140,457
  150,212
  160,437
  171,155
  182,392
  194,175
  206,532
  219,492
  233,087
  247,349
Total liabilities, $m
  58,431
  62,413
  66,488
  70,728
  75,141
  79,736
  84,524
  89,513
  94,717
  100,146
  105,813
  111,731
  117,913
  124,375
  131,131
  138,198
  145,591
  153,330
  161,431
  169,914
  178,800
  188,110
  197,865
  208,090
  218,808
  230,045
  241,828
  254,185
  267,145
  280,740
  295,002
Total equity, $m
  18,163
  19,386
  20,652
  21,969
  23,340
  24,767
  26,254
  27,804
  29,421
  31,107
  32,867
  34,705
  36,626
  38,633
  40,731
  42,926
  45,223
  47,627
  50,143
  52,778
  55,538
  58,430
  61,460
  64,636
  67,965
  71,456
  75,116
  78,954
  82,980
  87,202
  91,632
Total liabilities and equity, $m
  76,594
  81,799
  87,140
  92,697
  98,481
  104,503
  110,778
  117,317
  124,138
  131,253
  138,680
  146,436
  154,539
  163,008
  171,862
  181,124
  190,814
  200,957
  211,574
  222,692
  234,338
  246,540
  259,325
  272,726
  286,773
  301,501
  316,944
  333,139
  350,125
  367,942
  386,634
Debt-to-equity ratio
  0.593
  0.760
  0.910
  1.050
  1.180
  1.300
  1.400
  1.510
  1.600
  1.690
  1.770
  1.850
  1.920
  1.990
  2.050
  2.110
  2.170
  2.220
  2.270
  2.320
  2.360
  2.400
  2.440
  2.480
  2.520
  2.550
  2.590
  2.620
  2.650
  2.670
  2.700
Adjusted equity ratio
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  654
  199
  99
  -4
  -149
  -300
  -458
  -621
  -792
  -970
  -1,156
  -1,315
  -1,517
  -1,729
  -1,950
  -2,181
  -2,422
  -2,675
  -2,939
  -3,216
  -3,506
  -3,809
  -4,127
  -4,460
  -4,809
  -5,175
  -5,559
  -5,961
  -6,383
  -6,826
  -7,290
Depreciation, amort., depletion, $m
  841
  891
  947
  1,005
  1,065
  1,128
  1,194
  1,262
  1,334
  1,408
  1,486
  1,532
  1,617
  1,706
  1,799
  1,895
  1,997
  2,103
  2,214
  2,330
  2,452
  2,580
  2,714
  2,854
  3,001
  3,155
  3,317
  3,486
  3,664
  3,850
  4,046
Funds from operations, $m
  1,883
  1,090
  1,046
  1,001
  916
  828
  736
  641
  541
  438
  330
  217
  100
  -23
  -151
  -285
  -425
  -572
  -725
  -885
  -1,053
  -1,229
  -1,413
  -1,606
  -1,808
  -2,020
  -2,242
  -2,475
  -2,719
  -2,975
  -3,244
Change in working capital, $m
  -370
  7
  7
  8
  8
  8
  9
  9
  9
  10
  10
  11
  11
  12
  12
  13
  13
  14
  15
  15
  16
  17
  18
  18
  19
  20
  21
  22
  23
  25
  26
Cash from operations, $m
  2,253
  1,083
  1,038
  993
  908
  820
  728
  632
  532
  428
  320
  207
  89
  -35
  -163
  -298
  -439
  -586
  -740
  -901
  -1,069
  -1,246
  -1,431
  -1,625
  -1,828
  -2,040
  -2,263
  -2,497
  -2,742
  -3,000
  -3,269
Maintenance CAPEX, $m
  0
  -802
  -856
  -912
  -970
  -1,031
  -1,094
  -1,159
  -1,228
  -1,299
  -1,374
  -1,451
  -1,532
  -1,617
  -1,706
  -1,799
  -1,895
  -1,997
  -2,103
  -2,214
  -2,330
  -2,452
  -2,580
  -2,714
  -2,854
  -3,001
  -3,155
  -3,317
  -3,486
  -3,664
  -3,850
New CAPEX, $m
  -1,450
  -517
  -531
  -552
  -575
  -599
  -624
  -650
  -678
  -707
  -738
  -771
  -806
  -842
  -880
  -921
  -963
  -1,008
  -1,056
  -1,105
  -1,158
  -1,213
  -1,271
  -1,332
  -1,397
  -1,464
  -1,535
  -1,610
  -1,689
  -1,771
  -1,858
Cash from investing activities, $m
  -2,187
  -1,319
  -1,387
  -1,464
  -1,545
  -1,630
  -1,718
  -1,809
  -1,906
  -2,006
  -2,112
  -2,222
  -2,338
  -2,459
  -2,586
  -2,720
  -2,858
  -3,005
  -3,159
  -3,319
  -3,488
  -3,665
  -3,851
  -4,046
  -4,251
  -4,465
  -4,690
  -4,927
  -5,175
  -5,435
  -5,708
Free cash flow, $m
  66
  -236
  -349
  -471
  -637
  -810
  -990
  -1,178
  -1,374
  -1,578
  -1,792
  -2,016
  -2,249
  -2,494
  -2,750
  -3,017
  -3,297
  -3,591
  -3,898
  -4,220
  -4,558
  -4,911
  -5,282
  -5,671
  -6,078
  -6,506
  -6,954
  -7,424
  -7,917
  -8,435
  -8,978
Issuance/(repayment) of debt, $m
  196
  3,982
  4,076
  4,240
  4,413
  4,595
  4,787
  4,990
  5,204
  5,429
  5,667
  5,918
  6,183
  6,462
  6,756
  7,067
  7,394
  7,738
  8,101
  8,483
  8,886
  9,310
  9,755
  10,225
  10,718
  11,237
  11,783
  12,357
  12,961
  13,595
  14,262
Issuance/(repurchase) of shares, $m
  -134
  1,024
  1,167
  1,321
  1,520
  1,728
  1,945
  2,171
  2,408
  2,657
  2,916
  3,153
  3,438
  3,736
  4,048
  4,376
  4,719
  5,078
  5,455
  5,851
  6,266
  6,701
  7,157
  7,636
  8,139
  8,666
  9,219
  9,800
  10,409
  11,048
  11,720
Cash from financing (excl. dividends), $m  
  -82
  5,006
  5,243
  5,561
  5,933
  6,323
  6,732
  7,161
  7,612
  8,086
  8,583
  9,071
  9,621
  10,198
  10,804
  11,443
  12,113
  12,816
  13,556
  14,334
  15,152
  16,011
  16,912
  17,861
  18,857
  19,903
  21,002
  22,157
  23,370
  24,643
  25,982
Total cash flow (excl. dividends), $m
  -29
  4,770
  4,894
  5,090
  5,296
  5,513
  5,742
  5,984
  6,238
  6,507
  6,791
  7,055
  7,371
  7,704
  8,055
  8,425
  8,815
  9,226
  9,658
  10,114
  10,594
  11,099
  11,631
  12,190
  12,778
  13,397
  14,048
  14,732
  15,452
  16,208
  17,003
Retained Cash Flow (-), $m
  -602
  -1,223
  -1,266
  -1,321
  -1,520
  -1,728
  -1,945
  -2,171
  -2,408
  -2,657
  -2,916
  -3,153
  -3,438
  -3,736
  -4,048
  -4,376
  -4,719
  -5,078
  -5,455
  -5,851
  -6,266
  -6,701
  -7,157
  -7,636
  -8,139
  -8,666
  -9,219
  -9,800
  -10,409
  -11,048
  -11,720
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
 
  3,547
  3,628
  3,769
  3,776
  3,785
  3,798
  3,812
  3,830
  3,851
  3,875
  3,902
  3,933
  3,968
  4,007
  4,049
  4,096
  4,147
  4,203
  4,263
  4,328
  4,398
  4,473
  4,554
  4,640
  4,732
  4,829
  4,933
  5,043
  5,160
  5,284
Discount rate, %
 
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.12
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.82
  25.01
  26.26
  27.58
PV of cash for distribution, $m
 
  3,324
  3,166
  3,043
  2,801
  2,559
  2,321
  2,088
  1,863
  1,647
  1,441
  1,249
  1,070
  906
  758
  625
  508
  407
  321
  249
  190
  142
  104
  74
  52
  36
  24
  15
  10
  6
  4
Current shareholders' claim on cash, %
  100
  94.6
  89.1
  83.6
  78.1
  72.6
  67.3
  62.0
  57.0
  52.2
  47.6
  43.4
  39.4
  35.7
  32.3
  29.1
  26.1
  23.5
  21.0
  18.8
  16.7
  14.9
  13.3
  11.8
  10.4
  9.2
  8.2
  7.2
  6.3
  5.6
  4.9

Loews Corporation is a holding company. The Company, through its subsidiaries, is engaged in commercial property and casualty insurance; operation of offshore oil and gas drilling rigs; transportation and storage of natural gas and natural gas liquids, and operation of a chain of hotels. The Company has five segments consisted of its four individual operating subsidiaries, CNA Financial Corporation (CNA), Diamond Offshore Drilling, Inc. (Diamond Offshore), Boardwalk Pipeline Partners, LP (Boardwalk Pipeline) and Loews Hotels Holding Corporation (Loews Hotels), and the Corporate segment. CNA's insurance products include commercial property and casualty coverages, including surety. CNA's services include risk management, information services, warranty and claims administration. CNA's core business, commercial property and casualty insurance operations include Specialty, Commercial and International lines of business.

FINANCIAL RATIOS  of  Loews (L)

Valuation Ratios
P/E Ratio 27.2
Price to Sales 1.3
Price to Book 1
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 22.1
Growth Rates
Sales Growth Rate -2.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -6.8%
Cap. Spend. - 3 Yr. Gr. Rate -3.5%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 58.7%
Total Debt to Equity 59.3%
Interest Coverage 3
Management Effectiveness
Return On Assets 1.4%
Ret/ On Assets - 3 Yr. Avg. 1.2%
Return On Total Capital 2.3%
Ret/ On T. Cap. - 3 Yr. Avg. 1.7%
Return On Equity 3.7%
Return On Equity - 3 Yr. Avg. 2.7%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 17.4%
EBITDA Margin - 3 Yr. Avg. 17.4%
Operating Margin 11.2%
Oper. Margin - 3 Yr. Avg. 10.9%
Pre-Tax Margin 7.1%
Pre-Tax Margin - 3 Yr. Avg. 7.2%
Net Profit Margin 5%
Net Profit Margin - 3 Yr. Avg. 3.7%
Effective Tax Rate 23.5%
Eff/ Tax Rate - 3 Yr. Avg. 10.4%
Payout Ratio 12.8%

L stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the L stock intrinsic value calculation we used $13186 million for the last fiscal year's total revenue generated by Loews. The default revenue input number comes from 2016 income statement of Loews. 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 L stock valuation model: a) initial revenue growth rate of 6.7% 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 6.7%, whose default value for L is calculated based on our internal credit rating of Loews, 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 Loews.
    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 L stock the variable cost ratio is equal to 94.4%.

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 L 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 4.8% for Loews.

Corporate tax rate of 27% is the nominal tax rate for Loews. 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 L 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 L are equal to 57.8%.

Life of production assets of 9.5 years is the average useful life of capital assets used in Loews 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 L is equal to 0.8%. 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 - $18163 million for Loews - 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 337.398 million for Loews 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 Loews at the current share price and the inputted number of shares is $17.8 billion.

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COMPANY NEWS

▶ Stick with General Electric Company Stock for the Long Term   [Jan-10-18 06:49AM  InvestorPlace]
▶ ETFs with exposure to Loews Corp. : December 20, 2017   [Dec-20-17 11:49AM  Capital Cube]
▶ Tisch Says Lack of N.Y. GOP in Tax Debate a 'Sad Truth'   [Dec-13-17 09:31AM  Bloomberg Video]
▶ Follow the Insiders and Buy General Electric Company Stock   [Nov-30-17 11:51AM  InvestorPlace]
▶ New Strong Sell Stocks for November 3rd   [Nov-03-17 07:20AM  Zacks]
▶ New Strong Sell Stocks for November 1st   [Nov-01-17 08:06AM  Zacks]
▶ Company News For Oct 31, 2017   [10:32AM  Zacks]
▶ Loews Corporation to Host Earnings Call   [07:10AM  ACCESSWIRE]
▶ Loews posts 3Q profit   [06:49AM  Associated Press]
▶ Loews Corp. Value Analysis (NYSE:L) : September 21, 2017   [Sep-21-17 06:40PM  Capital Cube]
▶ Irma could move these stocks plus gold very violently: NYSE trader   [Sep-08-17 01:19PM  Yahoo Finance Video]
▶ ETFs with exposure to Loews Corp. : August 17, 2017   [Aug-17-17 03:43PM  Capital Cube]
▶ Diamond Offshore Announces Pricing of Senior Notes   [Aug-01-17 06:00PM  PR Newswire]
▶ 5 Companies Reach Yearly Highs   [01:59PM  GuruFocus.com]
▶ Loews meets 2Q profit forecasts   [Jul-31-17 11:02PM  Associated Press]
▶ Q2 Earnings From Apple   [11:21AM  Zacks]
▶ Convention hotel raises a different flag   [Jun-21-17 04:16PM  American City Business Journals]
▶ Loews Corp. Value Analysis (NYSE:L) : June 9, 2017   [Jun-09-17 02:16PM  Capital Cube]
▶ Business Leaders Petition Tillerson on Foreign Aid Cut   [May-22-17 11:24AM  Bloomberg Video]
Financial statements of L
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