Intrinsic value of Nabors Industries - NBR

Previous Close

$6.15

  Intrinsic Value

$1.92

stock screener

  Rating & Target

str. sell

-69%

Previous close

$6.15

 
Intrinsic value

$1.92

 
Up/down potential

-69%

 
Rating

str. sell

We calculate the intrinsic value of NBR 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 2.2

 

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, %
  20.30
  18.77
  17.39
  16.15
  15.04
  14.03
  13.13
  12.32
  11.59
  10.93
  10.33
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
Revenue, $m
  3,086
  3,666
  4,303
  4,998
  5,750
  6,557
  7,418
  8,332
  9,297
  10,313
  11,379
  12,494
  13,658
  14,873
  16,137
  17,452
  18,819
  20,240
  21,717
  23,252
  24,847
  26,505
  28,230
  30,024
  31,892
  33,837
  35,863
  37,975
  40,178
  42,477
Variable operating expenses, $m
  4,573
  5,429
  6,370
  7,396
  8,506
  9,697
  10,968
  12,317
  13,742
  15,242
  16,798
  18,444
  20,163
  21,956
  23,822
  25,763
  27,782
  29,880
  32,060
  34,326
  36,680
  39,129
  41,675
  44,323
  47,080
  49,952
  52,943
  56,061
  59,313
  62,706
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
  4,573
  5,429
  6,370
  7,396
  8,506
  9,697
  10,968
  12,317
  13,742
  15,242
  16,798
  18,444
  20,163
  21,956
  23,822
  25,763
  27,782
  29,880
  32,060
  34,326
  36,680
  39,129
  41,675
  44,323
  47,080
  49,952
  52,943
  56,061
  59,313
  62,706
Operating income, $m
  -1,487
  -1,763
  -2,067
  -2,398
  -2,756
  -3,140
  -3,550
  -3,985
  -4,445
  -4,929
  -5,419
  -5,950
  -6,505
  -7,083
  -7,685
  -8,311
  -8,963
  -9,639
  -10,343
  -11,074
  -11,833
  -12,623
  -13,444
  -14,299
  -15,188
  -16,115
  -17,080
  -18,086
  -19,135
  -20,229
EBITDA, $m
  -463
  -550
  -646
  -750
  -863
  -984
  -1,114
  -1,251
  -1,396
  -1,548
  -1,708
  -1,876
  -2,050
  -2,233
  -2,422
  -2,620
  -2,825
  -3,038
  -3,260
  -3,490
  -3,730
  -3,979
  -4,238
  -4,507
  -4,787
  -5,079
  -5,384
  -5,701
  -6,031
  -6,376
Interest expense (income), $m
  184
  238
  304
  377
  457
  545
  640
  742
  851
  966
  1,088
  1,216
  1,351
  1,492
  1,639
  1,792
  1,952
  2,118
  2,291
  2,470
  2,657
  2,851
  3,052
  3,262
  3,480
  3,706
  3,942
  4,188
  4,444
  4,711
  4,989
Earnings before tax, $m
  -1,725
  -2,067
  -2,443
  -2,855
  -3,301
  -3,780
  -4,292
  -4,836
  -5,411
  -6,017
  -6,635
  -7,301
  -7,997
  -8,722
  -9,477
  -10,264
  -11,081
  -11,930
  -12,813
  -13,731
  -14,684
  -15,676
  -16,706
  -17,779
  -18,895
  -20,057
  -21,268
  -22,530
  -23,846
  -25,218
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -1,725
  -2,067
  -2,443
  -2,855
  -3,301
  -3,780
  -4,292
  -4,836
  -5,411
  -6,017
  -6,635
  -7,301
  -7,997
  -8,722
  -9,477
  -10,264
  -11,081
  -11,930
  -12,813
  -13,731
  -14,684
  -15,676
  -16,706
  -17,779
  -18,895
  -20,057
  -21,268
  -22,530
  -23,846
  -25,218

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
  10,119
  12,018
  14,109
  16,388
  18,852
  21,498
  24,321
  27,317
  30,482
  33,812
  37,307
  40,963
  44,782
  48,762
  52,907
  57,219
  61,703
  66,362
  71,204
  76,236
  81,466
  86,903
  92,558
  98,440
  104,564
  110,941
  117,584
  124,510
  131,732
  139,268
Adjusted assets (=assets-cash), $m
  10,119
  12,018
  14,109
  16,388
  18,852
  21,498
  24,321
  27,317
  30,482
  33,812
  37,307
  40,963
  44,782
  48,762
  52,907
  57,219
  61,703
  66,362
  71,204
  76,236
  81,466
  86,903
  92,558
  98,440
  104,564
  110,941
  117,584
  124,510
  131,732
  139,268
Revenue / Adjusted assets
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
  0.305
Average production assets, $m
  7,549
  8,966
  10,525
  12,226
  14,064
  16,038
  18,144
  20,379
  22,740
  25,225
  27,832
  30,560
  33,409
  36,378
  39,470
  42,687
  46,032
  49,508
  53,120
  56,874
  60,776
  64,832
  69,051
  73,440
  78,008
  82,765
  87,721
  92,888
  98,276
  103,898
Working capital, $m
  194
  231
  271
  315
  362
  413
  467
  525
  586
  650
  717
  787
  860
  937
  1,017
  1,099
  1,186
  1,275
  1,368
  1,465
  1,565
  1,670
  1,778
  1,892
  2,009
  2,132
  2,259
  2,392
  2,531
  2,676
Total debt, $m
  5,145
  6,386
  7,751
  9,239
  10,848
  12,576
  14,419
  16,376
  18,442
  20,617
  22,899
  25,287
  27,780
  30,380
  33,086
  35,902
  38,830
  41,872
  45,034
  48,320
  51,735
  55,285
  58,978
  62,819
  66,818
  70,982
  75,320
  79,843
  84,559
  89,480
Total liabilities, $m
  6,608
  7,848
  9,213
  10,701
  12,310
  14,038
  15,881
  17,838
  19,904
  22,080
  24,361
  26,749
  29,242
  31,842
  34,548
  37,364
  40,292
  43,334
  46,496
  49,782
  53,197
  56,748
  60,440
  64,282
  68,280
  72,444
  76,783
  81,305
  86,021
  90,942
Total equity, $m
  3,511
  4,170
  4,896
  5,687
  6,542
  7,460
  8,439
  9,479
  10,577
  11,733
  12,945
  14,214
  15,539
  16,921
  18,359
  19,855
  21,411
  23,028
  24,708
  26,454
  28,269
  30,155
  32,117
  34,159
  36,284
  38,496
  40,802
  43,205
  45,711
  48,326
Total liabilities and equity, $m
  10,119
  12,018
  14,109
  16,388
  18,852
  21,498
  24,320
  27,317
  30,481
  33,813
  37,306
  40,963
  44,781
  48,763
  52,907
  57,219
  61,703
  66,362
  71,204
  76,236
  81,466
  86,903
  92,557
  98,441
  104,564
  110,940
  117,585
  124,510
  131,732
  139,268
Debt-to-equity ratio
  1.470
  1.530
  1.580
  1.620
  1.660
  1.690
  1.710
  1.730
  1.740
  1.760
  1.770
  1.780
  1.790
  1.800
  1.800
  1.810
  1.810
  1.820
  1.820
  1.830
  1.830
  1.830
  1.840
  1.840
  1.840
  1.840
  1.850
  1.850
  1.850
  1.850
Adjusted equity ratio
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347
  0.347

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,725
  -2,067
  -2,443
  -2,855
  -3,301
  -3,780
  -4,292
  -4,836
  -5,411
  -6,017
  -6,635
  -7,301
  -7,997
  -8,722
  -9,477
  -10,264
  -11,081
  -11,930
  -12,813
  -13,731
  -14,684
  -15,676
  -16,706
  -17,779
  -18,895
  -20,057
  -21,268
  -22,530
  -23,846
  -25,218
Depreciation, amort., depletion, $m
  1,024
  1,213
  1,421
  1,647
  1,893
  2,156
  2,437
  2,735
  3,049
  3,381
  3,711
  4,075
  4,454
  4,850
  5,263
  5,692
  6,138
  6,601
  7,083
  7,583
  8,103
  8,644
  9,207
  9,792
  10,401
  11,035
  11,696
  12,385
  13,103
  13,853
Funds from operations, $m
  -701
  -854
  -1,023
  -1,208
  -1,408
  -1,624
  -1,856
  -2,101
  -2,362
  -2,636
  -2,925
  -3,227
  -3,542
  -3,872
  -4,215
  -4,572
  -4,943
  -5,329
  -5,731
  -6,147
  -6,581
  -7,031
  -7,500
  -7,987
  -8,494
  -9,022
  -9,572
  -10,145
  -10,742
  -11,365
Change in working capital, $m
  33
  36
  40
  44
  47
  51
  54
  58
  61
  64
  67
  70
  73
  76
  80
  83
  86
  90
  93
  97
  100
  104
  109
  113
  118
  123
  128
  133
  139
  145
Cash from operations, $m
  -734
  -890
  -1,063
  -1,251
  -1,456
  -1,675
  -1,910
  -2,159
  -2,423
  -2,700
  -2,992
  -3,297
  -3,616
  -3,948
  -4,294
  -4,655
  -5,029
  -5,419
  -5,824
  -6,244
  -6,681
  -7,136
  -7,608
  -8,100
  -8,611
  -9,144
  -9,699
  -10,278
  -10,881
  -11,510
Maintenance CAPEX, $m
  -836
  -1,007
  -1,195
  -1,403
  -1,630
  -1,875
  -2,138
  -2,419
  -2,717
  -3,032
  -3,363
  -3,711
  -4,075
  -4,454
  -4,850
  -5,263
  -5,692
  -6,138
  -6,601
  -7,083
  -7,583
  -8,103
  -8,644
  -9,207
  -9,792
  -10,401
  -11,035
  -11,696
  -12,385
  -13,103
New CAPEX, $m
  -1,275
  -1,417
  -1,559
  -1,700
  -1,839
  -1,974
  -2,106
  -2,235
  -2,361
  -2,485
  -2,607
  -2,728
  -2,849
  -2,970
  -3,092
  -3,217
  -3,345
  -3,476
  -3,612
  -3,754
  -3,902
  -4,056
  -4,218
  -4,389
  -4,568
  -4,757
  -4,956
  -5,167
  -5,388
  -5,622
Cash from investing activities, $m
  -2,111
  -2,424
  -2,754
  -3,103
  -3,469
  -3,849
  -4,244
  -4,654
  -5,078
  -5,517
  -5,970
  -6,439
  -6,924
  -7,424
  -7,942
  -8,480
  -9,037
  -9,614
  -10,213
  -10,837
  -11,485
  -12,159
  -12,862
  -13,596
  -14,360
  -15,158
  -15,991
  -16,863
  -17,773
  -18,725
Free cash flow, $m
  -2,846
  -3,314
  -3,818
  -4,355
  -4,924
  -5,524
  -6,154
  -6,813
  -7,501
  -8,217
  -8,962
  -9,736
  -10,539
  -11,372
  -12,237
  -13,134
  -14,066
  -15,033
  -16,037
  -17,081
  -18,166
  -19,295
  -20,471
  -21,695
  -22,972
  -24,302
  -25,691
  -27,140
  -28,654
  -30,236
Issuance/(repayment) of debt, $m
  1,118
  1,240
  1,365
  1,488
  1,609
  1,728
  1,843
  1,956
  2,067
  2,175
  2,282
  2,388
  2,493
  2,599
  2,707
  2,816
  2,928
  3,043
  3,162
  3,286
  3,415
  3,550
  3,692
  3,842
  3,999
  4,164
  4,338
  4,522
  4,716
  4,921
Issuance/(repurchase) of shares, $m
  2,324
  2,726
  3,169
  3,646
  4,156
  4,698
  5,272
  5,876
  6,509
  7,173
  7,848
  8,570
  9,322
  10,103
  10,916
  11,760
  12,637
  13,547
  14,493
  15,477
  16,499
  17,562
  18,668
  19,820
  21,020
  22,270
  23,573
  24,933
  26,352
  27,833
Cash from financing (excl. dividends), $m  
  3,442
  3,966
  4,534
  5,134
  5,765
  6,426
  7,115
  7,832
  8,576
  9,348
  10,130
  10,958
  11,815
  12,702
  13,623
  14,576
  15,565
  16,590
  17,655
  18,763
  19,914
  21,112
  22,360
  23,662
  25,019
  26,434
  27,911
  29,455
  31,068
  32,754
Total cash flow (excl. dividends), $m
  596
  652
  716
  779
  841
  902
  961
  1,019
  1,075
  1,131
  1,168
  1,222
  1,276
  1,330
  1,385
  1,441
  1,498
  1,557
  1,618
  1,682
  1,748
  1,817
  1,890
  1,966
  2,047
  2,131
  2,221
  2,315
  2,414
  2,519
Retained Cash Flow (-), $m
  -2,324
  -2,726
  -3,169
  -3,646
  -4,156
  -4,698
  -5,272
  -5,876
  -6,509
  -7,173
  -7,848
  -8,570
  -9,322
  -10,103
  -10,916
  -11,760
  -12,637
  -13,547
  -14,493
  -15,477
  -16,499
  -17,562
  -18,668
  -19,820
  -21,020
  -22,270
  -23,573
  -24,933
  -26,352
  -27,833
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
  -1,728
  -2,074
  -2,453
  -2,867
  -3,315
  -3,797
  -4,311
  -4,857
  -5,434
  -6,042
  -6,680
  -7,348
  -8,046
  -8,773
  -9,530
  -10,319
  -11,138
  -11,990
  -12,875
  -13,795
  -14,751
  -15,745
  -16,779
  -17,854
  -18,973
  -20,138
  -21,353
  -22,618
  -23,938
  -25,315
Discount rate, %
  9.60
  10.08
  10.58
  11.11
  11.67
  12.25
  12.86
  13.51
  14.18
  14.89
  15.64
  16.42
  17.24
  18.10
  19.01
  19.96
  20.96
  22.00
  23.10
  24.26
  25.47
  26.75
  28.08
  29.49
  30.96
  32.51
  34.13
  35.84
  37.63
  39.51
PV of cash for distribution, $m
  -1,577
  -1,711
  -1,814
  -1,881
  -1,909
  -1,898
  -1,848
  -1,763
  -1,647
  -1,508
  -1,351
  -1,185
  -1,018
  -854
  -701
  -561
  -439
  -334
  -248
  -179
  -126
  -86
  -57
  -36
  -22
  -13
  -8
  -4
  -2
  -1
Current shareholders' claim on cash, %
  48.6
  24.0
  11.9
  6.0
  3.1
  1.6
  0.8
  0.4
  0.2
  0.1
  0.1
  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
  0.0
  0.0
  0.0
  0.0

Nabors Industries Ltd. owns and operates a land-based drilling rig fleet. The Company is a provider of offshore platform drilling rigs in the United States and multiple international markets. The Company conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services. The Company provides wellbore placement services, drilling software and performance tools, drilling equipment and various technologies throughout the oil and gas markets. The Company's Drilling & Rig Services business comprises land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation and optimization software. The Company is a provider of directional drilling and measurement while drilling (MWD) systems and services. The Company also provides drilling technology and equipment, and well-site services.

FINANCIAL RATIOS  of  Nabors Industries (NBR)

Valuation Ratios
P/E Ratio -1.7
Price to Sales 0.8
Price to Book 0.5
Price to Tangible Book
Price to Cash Flow 3.3
Price to Free Cash Flow 12.7
Growth Rates
Sales Growth Rate -42.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -54.4%
Cap. Spend. - 3 Yr. Gr. Rate -19.6%
Financial Strength
Quick Ratio NaN
Current Ratio 0.3
LT Debt to Equity 110.2%
Total Debt to Equity 110.2%
Interest Coverage -6
Management Effectiveness
Return On Assets -9.9%
Ret/ On Assets - 3 Yr. Avg. -5.4%
Return On Total Capital -13.9%
Ret/ On T. Cap. - 3 Yr. Avg. -8.4%
Return On Equity -27.4%
Return On Equity - 3 Yr. Avg. -15.9%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 39.7%
Gross Margin - 3 Yr. Avg. 37.4%
EBITDA Margin -6.3%
EBITDA Margin - 3 Yr. Avg. 7.5%
Operating Margin -34.6%
Oper. Margin - 3 Yr. Avg. -15.2%
Pre-Tax Margin -53.8%
Pre-Tax Margin - 3 Yr. Avg. -24.6%
Net Profit Margin -46.2%
Net Profit Margin - 3 Yr. Avg. -21.9%
Effective Tax Rate 15.6%
Eff/ Tax Rate - 3 Yr. Avg. 9.4%
Payout Ratio -5%

NBR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NBR stock intrinsic value calculation we used $2565.486 million for the last fiscal year's total revenue generated by Nabors Industries. The default revenue input number comes from 0001 income statement of Nabors 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 NBR stock valuation model: a) initial revenue growth rate of 20.3% 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 9.6%, whose default value for NBR is calculated based on our internal credit rating of Nabors 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 Nabors 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 NBR stock the variable cost ratio is equal to 148.3%.

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 NBR 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 5.9% for Nabors Industries.

Corporate tax rate of 27% is the nominal tax rate for Nabors 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 NBR 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 NBR are equal to 244.6%.

Life of production assets of 7.5 years is the average useful life of capital assets used in Nabors 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 NBR is equal to 6.3%. 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 - $2911.816 million for Nabors 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 357.465 million for Nabors 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 Nabors Industries at the current share price and the inputted number of shares is $2.2 billion.

RELATED COMPANIES Price Int.Val. Rating
HP Helmerich&Payn 69.41 9.32  str.sell
PTEN Patterson-UTI 16.53 3.74  str.sell
PDS Precision Dril 3.12 1.06  str.sell
SLB Schlumberger 59.33 40.68  sell
PES Pioneer Energy 3.03 16.93  str.buy
PKD Parker Drillin 3.08 7.57  str.buy

COMPANY NEWS

▶ Nabors Realigns Unsecured Revolving Credit Facilities   [Oct-12-18 03:04PM  PR Newswire]
▶ Nabors: 2Q Earnings Snapshot   [Jul-31-18 05:55PM  Associated Press]
▶ Nabors Announces Second Quarter Results   [05:37PM  PR Newswire]
▶ NOV, Saudi Aramco form JV to provide drilling equipment, create education center   [Jun-29-18 01:19PM  American City Business Journals]
▶ Nabors Industries Stock Is Poised to Break Out   [May-22-18 10:17AM  TheStreet.com]
▶ Nabors: 1Q Earnings Snapshot   [May-01-18 07:42PM  Associated Press]
▶ Nabors Announces First Quarter Results   [07:27PM  PR Newswire]
▶ At $6.53, Is It Time To Buy Nabors Industries Ltd (NYSE:NBR)?   [Apr-03-18 04:07PM  Simply Wall St.]
▶ Analysts Expect Breakeven For Nabors Industries Ltd (NYSE:NBR)   [Mar-26-18 05:38PM  Simply Wall St.]
▶ Is Nabors Industries Ltd (NYSE:NBR) A Good Dividend Stock?   [Mar-16-18 03:58PM  Simply Wall St.]
▶ Nabors Industries Ltd. to Host Earnings Call   [Feb-28-18 08:40AM  ACCESSWIRE]
▶ Nabors reports 4Q loss   [Feb-27-18 07:33PM  Associated Press]
▶ Schlumbergers Earnings: Returns and Growth Estimates   [Jan-22-18 09:20AM  Market Realist]
▶ Analyzing Weatherford Internationals Growth Drivers in 3Q17   [Jan-19-18 07:35AM  Market Realist]
▶ The Labor Shortage In The Shale Boom   [Jan-15-18 05:00PM  Oilprice.com]
▶ Analyzing Halliburtons Revenue and Earnings in 3Q17   [Jan-10-18 02:00PM  Market Realist]
▶ The 3rd-Lowest Oilfield Services FCF Earner in 3Q17   [Dec-28-17 12:43PM  Market Realist]
▶ The Third-Highest Oilfield Services Free Cash Earner in 3Q17   [Dec-27-17 04:05PM  Market Realist]
▶ Nabors Industries atop the leaders again   [Dec-26-17 02:46PM  CNBC Videos]
▶ Teva Pharma falls to laggard   [Dec-19-17 02:37PM  CNBC Videos]
▶ Nabors Completes Acquisition of Tesco Corporation   [Dec-15-17 09:14AM  PR Newswire]
▶ Johnson Controls up over 2% among leaders   [Nov-28-17 01:36PM  CNBC Videos]
▶ Wall Street Targets for the Worst-Performing Oilfield Stocks   [Nov-27-17 10:32AM  Market Realist]
▶ The 5 Worst Oilfield Companies by Market Returns   [Nov-24-17 04:16PM  Market Realist]
▶ H.P. among the IQ100 laggards   [Nov-22-17 02:54PM  CNBC Videos]
▶ What We Can Forecast for Nabors Industries   [Nov-21-17 10:32AM  Market Realist]
▶ Gauging Short Interest in Nabors Industries   [09:03AM  Market Realist]
▶ What Nabors Industries Historical Valuation Suggests   [Nov-20-17 05:50PM  Market Realist]
▶ Nabors Industries Dividend Yield   [10:32AM  Market Realist]
▶ Nabors Industries Value Drivers in 3Q17   [07:33AM  Market Realist]
▶ Upstream Operators Capex and Nabors Industries Margin   [Nov-17-17 04:50PM  Market Realist]

CONTACT US       ASSET ALLOCATION

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

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