Intrinsic value of LyondellBasell Industries - LYB

Previous Close

$93.44

  Intrinsic Value

$361.34

stock screener

  Rating & Target

str. buy

+287%

Previous close

$93.44

 
Intrinsic value

$361.34

 
Up/down potential

+287%

 
Rating

str. buy

We calculate the intrinsic value of LYB 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 36.4

 

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, %
  21.50
  19.85
  18.37
  17.03
  15.83
  14.74
  13.77
  12.89
  12.10
  11.39
  10.75
  10.18
  9.66
  9.19
  8.77
  8.40
  8.06
  7.75
  7.48
  7.23
  7.01
  6.81
  6.62
  6.46
  6.32
  6.18
  6.07
  5.96
  5.86
  5.78
Revenue, $m
  41,898
  50,215
  59,437
  69,558
  80,566
  92,444
  105,172
  118,731
  133,101
  148,264
  164,207
  180,920
  198,397
  216,638
  235,647
  255,435
  276,016
  297,412
  319,649
  342,756
  366,769
  391,729
  417,681
  444,673
  472,759
  501,997
  532,449
  564,180
  597,261
  631,766
Variable operating expenses, $m
  34,625
  41,476
  49,072
  57,409
  66,476
  76,260
  86,744
  97,912
  109,749
  122,239
  135,257
  149,024
  163,420
  178,445
  194,102
  210,402
  227,355
  244,979
  263,295
  282,328
  302,108
  322,668
  344,044
  366,277
  389,412
  413,495
  438,578
  464,715
  491,964
  520,385
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
  34,625
  41,476
  49,072
  57,409
  66,476
  76,260
  86,744
  97,912
  109,749
  122,239
  135,257
  149,024
  163,420
  178,445
  194,102
  210,402
  227,355
  244,979
  263,295
  282,328
  302,108
  322,668
  344,044
  366,277
  389,412
  413,495
  438,578
  464,715
  491,964
  520,385
Operating income, $m
  7,273
  8,739
  10,365
  12,149
  14,090
  16,184
  18,428
  20,818
  23,352
  26,025
  28,950
  31,896
  34,977
  38,193
  41,545
  45,033
  48,662
  52,434
  56,354
  60,428
  64,661
  69,062
  73,637
  78,396
  83,348
  88,502
  93,871
  99,465
  105,297
  111,380
EBITDA, $m
  8,749
  10,486
  12,412
  14,525
  16,824
  19,305
  21,963
  24,794
  27,795
  30,961
  34,291
  37,781
  41,430
  45,239
  49,209
  53,341
  57,639
  62,107
  66,751
  71,576
  76,591
  81,803
  87,222
  92,859
  98,724
  104,830
  111,189
  117,815
  124,723
  131,929
Interest expense (income), $m
  346
  483
  691
  924
  1,183
  1,467
  1,776
  2,109
  2,466
  2,846
  3,249
  3,674
  4,121
  4,590
  5,080
  5,591
  6,124
  6,679
  7,256
  7,856
  8,480
  9,128
  9,801
  10,501
  11,229
  11,986
  12,774
  13,594
  14,447
  15,337
  16,265
Earnings before tax, $m
  6,790
  8,048
  9,440
  10,966
  12,623
  14,409
  16,319
  18,353
  20,506
  22,776
  25,276
  27,775
  30,388
  33,113
  35,953
  38,909
  41,982
  45,177
  48,498
  51,948
  55,533
  59,261
  63,136
  67,167
  71,361
  75,729
  80,277
  85,017
  89,960
  95,115
Tax expense, $m
  1,833
  2,173
  2,549
  2,961
  3,408
  3,890
  4,406
  4,955
  5,537
  6,150
  6,824
  7,499
  8,205
  8,941
  9,707
  10,505
  11,335
  12,198
  13,094
  14,026
  14,994
  16,000
  17,047
  18,135
  19,268
  20,447
  21,675
  22,955
  24,289
  25,681
Net income, $m
  4,957
  5,875
  6,892
  8,005
  9,215
  10,518
  11,913
  13,398
  14,969
  16,627
  18,451
  20,276
  22,183
  24,173
  26,246
  28,403
  30,647
  32,979
  35,403
  37,922
  40,539
  43,260
  46,089
  49,032
  52,094
  55,282
  58,602
  62,063
  65,671
  69,434

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
  31,837
  38,157
  45,165
  52,856
  61,220
  70,246
  79,918
  90,221
  101,140
  112,663
  124,777
  137,477
  150,758
  164,618
  179,063
  194,099
  209,739
  225,997
  242,894
  260,453
  278,700
  297,667
  317,387
  337,898
  359,240
  381,457
  404,596
  428,708
  453,846
  480,065
Adjusted assets (=assets-cash), $m
  31,837
  38,157
  45,165
  52,856
  61,220
  70,246
  79,918
  90,221
  101,140
  112,663
  124,777
  137,477
  150,758
  164,618
  179,063
  194,099
  209,739
  225,997
  242,894
  260,453
  278,700
  297,667
  317,387
  337,898
  359,240
  381,457
  404,596
  428,708
  453,846
  480,065
Revenue / Adjusted assets
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
  1.316
Average production assets, $m
  13,491
  16,169
  19,139
  22,398
  25,942
  29,767
  33,865
  38,231
  42,858
  47,741
  52,875
  58,256
  63,884
  69,757
  75,878
  82,250
  88,877
  95,767
  102,927
  110,367
  118,100
  126,137
  134,493
  143,185
  152,229
  161,643
  171,449
  181,666
  192,318
  203,429
Working capital, $m
  5,112
  6,126
  7,251
  8,486
  9,829
  11,278
  12,831
  14,485
  16,238
  18,088
  20,033
  22,072
  24,204
  26,430
  28,749
  31,163
  33,674
  36,284
  38,997
  41,816
  44,746
  47,791
  50,957
  54,250
  57,677
  61,244
  64,959
  68,830
  72,866
  77,075
Total debt, $m
  12,343
  16,508
  21,126
  26,194
  31,706
  37,654
  44,028
  50,818
  58,013
  65,607
  73,590
  81,959
  90,711
  99,846
  109,365
  119,273
  129,580
  140,294
  151,429
  163,000
  175,025
  187,524
  200,520
  214,036
  228,101
  242,742
  257,991
  273,881
  290,446
  307,725
Total liabilities, $m
  20,981
  25,146
  29,764
  34,832
  40,344
  46,292
  52,666
  59,456
  66,651
  74,245
  82,228
  90,597
  99,349
  108,484
  118,003
  127,911
  138,218
  148,932
  160,067
  171,638
  183,663
  196,162
  209,158
  222,674
  236,739
  251,380
  266,629
  282,519
  299,084
  316,363
Total equity, $m
  10,857
  13,012
  15,401
  18,024
  20,876
  23,954
  27,252
  30,765
  34,489
  38,418
  42,549
  46,880
  51,408
  56,135
  61,061
  66,188
  71,521
  77,065
  82,827
  88,814
  95,037
  101,504
  108,229
  115,223
  122,501
  130,077
  137,967
  146,190
  154,761
  163,702
Total liabilities and equity, $m
  31,838
  38,158
  45,165
  52,856
  61,220
  70,246
  79,918
  90,221
  101,140
  112,663
  124,777
  137,477
  150,757
  164,619
  179,064
  194,099
  209,739
  225,997
  242,894
  260,452
  278,700
  297,666
  317,387
  337,897
  359,240
  381,457
  404,596
  428,709
  453,845
  480,065
Debt-to-equity ratio
  1.140
  1.270
  1.370
  1.450
  1.520
  1.570
  1.620
  1.650
  1.680
  1.710
  1.730
  1.750
  1.760
  1.780
  1.790
  1.800
  1.810
  1.820
  1.830
  1.840
  1.840
  1.850
  1.850
  1.860
  1.860
  1.870
  1.870
  1.870
  1.880
  1.880
Adjusted equity ratio
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341
  0.341

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,957
  5,875
  6,892
  8,005
  9,215
  10,518
  11,913
  13,398
  14,969
  16,627
  18,451
  20,276
  22,183
  24,173
  26,246
  28,403
  30,647
  32,979
  35,403
  37,922
  40,539
  43,260
  46,089
  49,032
  52,094
  55,282
  58,602
  62,063
  65,671
  69,434
Depreciation, amort., depletion, $m
  1,477
  1,747
  2,047
  2,376
  2,734
  3,121
  3,535
  3,976
  4,443
  4,936
  5,341
  5,884
  6,453
  7,046
  7,664
  8,308
  8,978
  9,673
  10,397
  11,148
  11,929
  12,741
  13,585
  14,463
  15,377
  16,328
  17,318
  18,350
  19,426
  20,548
Funds from operations, $m
  6,433
  7,622
  8,939
  10,382
  11,949
  13,639
  15,448
  17,373
  19,412
  21,563
  23,792
  26,160
  28,636
  31,219
  33,910
  36,711
  39,625
  42,653
  45,800
  49,070
  52,469
  56,001
  59,674
  63,495
  67,470
  71,609
  75,920
  80,413
  85,097
  89,983
Change in working capital, $m
  905
  1,015
  1,125
  1,235
  1,343
  1,449
  1,553
  1,654
  1,753
  1,850
  1,945
  2,039
  2,132
  2,225
  2,319
  2,414
  2,511
  2,610
  2,713
  2,819
  2,930
  3,045
  3,166
  3,293
  3,427
  3,567
  3,715
  3,871
  4,036
  4,210
Cash from operations, $m
  5,529
  6,607
  7,813
  9,147
  10,606
  12,190
  13,895
  15,719
  17,659
  19,713
  21,847
  24,121
  26,504
  28,994
  31,591
  34,297
  37,114
  40,043
  43,087
  46,251
  49,539
  52,956
  56,508
  60,202
  64,044
  68,042
  72,205
  76,542
  81,061
  85,773
Maintenance CAPEX, $m
  -1,123
  -1,363
  -1,633
  -1,933
  -2,262
  -2,620
  -3,007
  -3,421
  -3,862
  -4,329
  -4,822
  -5,341
  -5,884
  -6,453
  -7,046
  -7,664
  -8,308
  -8,978
  -9,673
  -10,397
  -11,148
  -11,929
  -12,741
  -13,585
  -14,463
  -15,377
  -16,328
  -17,318
  -18,350
  -19,426
New CAPEX, $m
  -2,370
  -2,678
  -2,969
  -3,259
  -3,545
  -3,825
  -4,099
  -4,366
  -4,627
  -4,883
  -5,134
  -5,382
  -5,628
  -5,874
  -6,121
  -6,372
  -6,627
  -6,890
  -7,160
  -7,440
  -7,732
  -8,037
  -8,356
  -8,691
  -9,044
  -9,415
  -9,805
  -10,217
  -10,652
  -11,111
Cash from investing activities, $m
  -3,493
  -4,041
  -4,602
  -5,192
  -5,807
  -6,445
  -7,106
  -7,787
  -8,489
  -9,212
  -9,956
  -10,723
  -11,512
  -12,327
  -13,167
  -14,036
  -14,935
  -15,868
  -16,833
  -17,837
  -18,880
  -19,966
  -21,097
  -22,276
  -23,507
  -24,792
  -26,133
  -27,535
  -29,002
  -30,537
Free cash flow, $m
  2,035
  2,567
  3,211
  3,955
  4,799
  5,745
  6,790
  7,932
  9,170
  10,501
  11,891
  13,399
  14,992
  16,667
  18,424
  20,261
  22,178
  24,176
  26,254
  28,414
  30,658
  32,990
  35,411
  37,925
  40,537
  43,251
  46,072
  49,006
  52,059
  55,236
Issuance/(repayment) of debt, $m
  3,724
  4,165
  4,618
  5,068
  5,512
  5,948
  6,374
  6,790
  7,196
  7,593
  7,984
  8,369
  8,752
  9,134
  9,519
  9,909
  10,306
  10,714
  11,135
  11,571
  12,025
  12,499
  12,996
  13,517
  14,064
  14,641
  15,249
  15,890
  16,566
  17,279
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,724
  4,165
  4,618
  5,068
  5,512
  5,948
  6,374
  6,790
  7,196
  7,593
  7,984
  8,369
  8,752
  9,134
  9,519
  9,909
  10,306
  10,714
  11,135
  11,571
  12,025
  12,499
  12,996
  13,517
  14,064
  14,641
  15,249
  15,890
  16,566
  17,279
Total cash flow (excl. dividends), $m
  5,759
  6,731
  7,829
  9,023
  10,312
  11,693
  13,163
  14,722
  16,366
  18,094
  19,875
  21,768
  23,743
  25,801
  27,943
  30,170
  32,485
  34,890
  37,389
  39,985
  42,683
  45,489
  48,406
  51,442
  54,602
  57,892
  61,321
  64,896
  68,624
  72,515
Retained Cash Flow (-), $m
  -1,908
  -2,155
  -2,390
  -2,623
  -2,852
  -3,078
  -3,298
  -3,513
  -3,723
  -3,929
  -4,131
  -4,331
  -4,529
  -4,727
  -4,926
  -5,127
  -5,333
  -5,544
  -5,762
  -5,987
  -6,222
  -6,468
  -6,725
  -6,994
  -7,278
  -7,576
  -7,891
  -8,222
  -8,572
  -8,941
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
  3,852
  4,576
  5,439
  6,400
  7,459
  8,615
  9,865
  11,209
  12,643
  14,165
  15,744
  17,437
  19,215
  21,075
  23,017
  25,043
  27,152
  29,346
  31,627
  33,998
  36,461
  39,021
  41,682
  44,448
  47,324
  50,316
  53,431
  56,674
  60,052
  63,574
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  3,693
  4,189
  4,734
  5,270
  5,782
  6,252
  6,665
  7,006
  7,263
  7,426
  7,476
  7,441
  7,306
  7,075
  6,758
  6,364
  5,908
  5,404
  4,870
  4,320
  3,771
  3,238
  2,732
  2,264
  1,841
  1,468
  1,147
  877
  656
  479
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

LyondellBasell Industries N.V. is a chemical company. The Company operates in five segments: Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Refining and Technology. The O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene. The O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene. The I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer (SM), acetyls and ethylene oxides. The primary product of the Refining segment is refined products made from sulfur crude oil and other crude oils of various types and sources available on the United States Gulf Coast. The Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

FINANCIAL RATIOS  of  LyondellBasell Industries (LYB)

Valuation Ratios
P/E Ratio 9.8
Price to Sales 1.3
Price to Book 6.2
Price to Tangible Book
Price to Cash Flow 6.7
Price to Free Cash Flow 11.2
Growth Rates
Sales Growth Rate -10.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 55.8%
Cap. Spend. - 3 Yr. Gr. Rate 7.5%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 138.6%
Total Debt to Equity 148.5%
Interest Coverage 16
Management Effectiveness
Return On Assets 17.7%
Ret/ On Assets - 3 Yr. Avg. 18.3%
Return On Total Capital 25.9%
Ret/ On T. Cap. - 3 Yr. Avg. 26.9%
Return On Equity 60.9%
Return On Equity - 3 Yr. Avg. 53.8%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 20.6%
Gross Margin - 3 Yr. Avg. 19%
EBITDA Margin 22.8%
EBITDA Margin - 3 Yr. Avg. 20.5%
Operating Margin 17.3%
Oper. Margin - 3 Yr. Avg. 16.2%
Pre-Tax Margin 17.9%
Pre-Tax Margin - 3 Yr. Avg. 16.5%
Net Profit Margin 13.1%
Net Profit Margin - 3 Yr. Avg. 12%
Effective Tax Rate 26.5%
Eff/ Tax Rate - 3 Yr. Avg. 27.1%
Payout Ratio 36.4%

LYB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the LYB stock intrinsic value calculation we used $34484 million for the last fiscal year's total revenue generated by LyondellBasell Industries. The default revenue input number comes from 0001 income statement of LyondellBasell Industries. 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 LYB stock valuation model: a) initial revenue growth rate of 21.5% 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 4.3%, whose default value for LYB is calculated based on our internal credit rating of LyondellBasell Industries, 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 LyondellBasell Industries.
    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 LYB stock the variable cost ratio is equal to 82.7%.

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 LYB 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 5.6% for LyondellBasell Industries.

Corporate tax rate of 27% is the nominal tax rate for LyondellBasell Industries. 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 LYB 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 LYB are equal to 32.2%.

Life of production assets of 9.9 years is the average useful life of capital assets used in LyondellBasell Industries 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 LYB is equal to 12.2%. 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 - $8949 million for LyondellBasell Industries - 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 389.324 million for LyondellBasell Industries 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 LyondellBasell Industries at the current share price and the inputted number of shares is $36.4 billion.

RELATED COMPANIES Price Int.Val. Rating
XOM Exxon Mobil 78.19 139.68  str.buy
CVX Chevron 116.95 204.89  str.buy
EMN Eastman Chemic 82.82 133.47  buy
PSX Phillips 66 96.23 241.16  str.buy

COMPANY NEWS

▶ [$$] LyondellBasell Industries 3Q Profit Rises   [07:08AM  The Wall Street Journal]
▶ LyondellBasell: 3Q Earnings Snapshot   [06:53AM  Associated Press]
▶ [$$] Linde-Praxair Merger Approved by U.S. FTC   [Oct-22-18 10:29AM  The Wall Street Journal]
▶ Behind the deal: LyondellBasell breaks ground at Channelview facility   [03:40PM  American City Business Journals]
▶ iStar Set to Join S&P SmallCap 600   [Aug-21-18 06:02PM  PR Newswire]
▶ How LyondellBasell Stands to Benefit From New IMO Rules   [Aug-16-18 07:45PM  Bloomberg Video]
▶ New Strong Buy Stocks for August 14th   [Aug-14-18 11:06AM  Zacks]
▶ The Brief, August 13   [Aug-13-18 12:09PM  Barrons.com]
▶ LyondellBasell: 2Q Earnings Snapshot   [06:41AM  Associated Press]
▶ LyondellBasell chairman to step down, successor named   [Jul-24-18 09:05AM  American City Business Journals]
▶ Chemical Production on the Upswing: 5 Growth Stocks to Buy   [Jul-06-18 11:10AM  InvestorPlace]
▶ [$$] LyondellBasell, Braskem Confirm Merger Talks   [Jun-17-18 07:42PM  The Wall Street Journal]
▶ [$$] LyondellBasell, Braskem Confirm Merger Talks   [Jun-15-18 07:07PM  The Wall Street Journal]
▶ LyondellBasell confirms talks about Braskem deal   [01:31PM  American City Business Journals]

CONTACT US       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.