Intrinsic value of Nabors Industries - NBR

Previous Close

$8.12

  Intrinsic Value

$2.73

stock screener

  Rating & Target

str. sell

-66%

Previous close

$8.12

 
Intrinsic value

$2.73

 
Up/down potential

-66%

 
Rating

str. sell

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

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

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, %
  -42.34
  27.30
  25.07
  23.06
  21.26
  19.63
  18.17
  16.85
  15.67
  14.60
  13.64
  12.78
  12.00
  11.30
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
Revenue, $m
  2,228
  2,836
  3,547
  4,365
  5,293
  6,332
  7,483
  8,744
  10,114
  11,590
  13,171
  14,854
  16,636
  18,516
  20,491
  22,561
  24,725
  26,983
  29,335
  31,784
  34,330
  36,978
  39,729
  42,588
  45,559
  48,647
  51,858
  55,199
  58,674
  62,293
  66,062
Variable operating expenses, $m
 
  1,799
  2,246
  2,760
  3,344
  3,997
  4,720
  5,512
  6,373
  7,301
  8,295
  9,336
  10,456
  11,637
  12,879
  14,180
  15,540
  16,959
  18,437
  19,976
  21,577
  23,241
  24,970
  26,767
  28,634
  30,575
  32,593
  34,693
  36,877
  39,151
  41,520
Fixed operating expenses, $m
 
  1,664
  1,705
  1,748
  1,791
  1,836
  1,882
  1,929
  1,977
  2,027
  2,078
  2,130
  2,183
  2,237
  2,293
  2,351
  2,409
  2,470
  2,531
  2,595
  2,659
  2,726
  2,794
  2,864
  2,936
  3,009
  3,084
  3,161
  3,240
  3,321
  3,404
Total operating expenses, $m
  2,999
  3,463
  3,951
  4,508
  5,135
  5,833
  6,602
  7,441
  8,350
  9,328
  10,373
  11,466
  12,639
  13,874
  15,172
  16,531
  17,949
  19,429
  20,968
  22,571
  24,236
  25,967
  27,764
  29,631
  31,570
  33,584
  35,677
  37,854
  40,117
  42,472
  44,924
Operating income, $m
  -771
  -627
  -404
  -143
  158
  500
  881
  1,302
  1,763
  2,262
  2,799
  3,389
  3,997
  4,641
  5,319
  6,031
  6,776
  7,554
  8,367
  9,213
  10,094
  11,011
  11,965
  12,957
  13,989
  15,063
  16,181
  17,345
  18,557
  19,820
  21,137
EBITDA, $m
  103
  473
  967
  1,540
  2,195
  2,933
  3,754
  4,656
  5,640
  6,702
  7,842
  9,058
  10,347
  11,708
  13,140
  14,641
  16,212
  17,853
  19,563
  21,344
  23,197
  25,124
  27,128
  29,212
  31,378
  33,630
  35,974
  38,412
  40,951
  43,595
  46,351
Interest expense (income), $m
  184
  183
  252
  332
  425
  530
  648
  778
  921
  1,076
  1,243
  1,422
  1,612
  1,814
  2,027
  2,250
  2,485
  2,730
  2,985
  3,252
  3,529
  3,817
  4,117
  4,428
  4,752
  5,088
  5,438
  5,802
  6,180
  6,573
  6,983
Earnings before tax, $m
  -1,198
  -809
  -656
  -475
  -267
  -30
  233
  525
  843
  1,187
  1,556
  1,967
  2,385
  2,827
  3,292
  3,780
  4,291
  4,825
  5,381
  5,961
  6,565
  7,194
  7,848
  8,529
  9,237
  9,975
  10,743
  11,543
  12,377
  13,247
  14,154
Tax expense, $m
  -187
  0
  0
  0
  0
  0
  63
  142
  227
  320
  420
  531
  644
  763
  889
  1,021
  1,159
  1,303
  1,453
  1,610
  1,773
  1,942
  2,119
  2,303
  2,494
  2,693
  2,901
  3,117
  3,342
  3,577
  3,822
Net income, $m
  -1,030
  -809
  -656
  -475
  -267
  -30
  170
  383
  615
  866
  1,136
  1,436
  1,741
  2,064
  2,403
  2,760
  3,132
  3,522
  3,928
  4,352
  4,793
  5,252
  5,729
  6,226
  6,743
  7,282
  7,842
  8,426
  9,035
  9,670
  10,333

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  295
  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
  8,187
  10,058
  12,579
  15,480
  18,771
  22,456
  26,535
  31,007
  35,864
  41,100
  46,706
  52,673
  58,993
  65,658
  72,663
  80,003
  87,676
  95,683
  104,025
  112,709
  121,739
  131,127
  140,883
  151,021
  161,556
  172,508
  183,895
  195,739
  208,065
  220,896
  234,261
Adjusted assets (=assets-cash), $m
  7,892
  10,058
  12,579
  15,480
  18,771
  22,456
  26,535
  31,007
  35,864
  41,100
  46,706
  52,673
  58,993
  65,658
  72,663
  80,003
  87,676
  95,683
  104,025
  112,709
  121,739
  131,127
  140,883
  151,021
  161,556
  172,508
  183,895
  195,739
  208,065
  220,896
  234,261
Revenue / Adjusted assets
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
  0.282
Average production assets, $m
  6,633
  8,443
  10,560
  12,996
  15,758
  18,852
  22,277
  26,031
  30,109
  34,504
  39,211
  44,220
  49,525
  55,121
  61,001
  67,163
  73,605
  80,327
  87,331
  94,620
  102,202
  110,083
  118,273
  126,784
  135,629
  144,823
  154,383
  164,326
  174,673
  185,445
  196,666
Working capital, $m
  334
  51
  64
  79
  95
  114
  135
  157
  182
  209
  237
  267
  299
  333
  369
  406
  445
  486
  528
  572
  618
  666
  715
  767
  820
  876
  933
  994
  1,056
  1,121
  1,189
Total debt, $m
  3,579
  4,935
  6,513
  8,330
  10,389
  12,696
  15,250
  18,049
  21,090
  24,368
  27,877
  31,612
  35,569
  39,741
  44,126
  48,721
  53,524
  58,536
  63,759
  69,195
  74,848
  80,724
  86,832
  93,178
  99,773
  106,629
  113,757
  121,172
  128,887
  136,920
  145,286
Total liabilities, $m
  4,940
  6,296
  7,874
  9,691
  11,750
  14,057
  16,611
  19,410
  22,451
  25,729
  29,238
  32,973
  36,930
  41,102
  45,487
  50,082
  54,885
  59,897
  65,120
  70,556
  76,209
  82,085
  88,193
  94,539
  101,134
  107,990
  115,118
  122,533
  130,248
  138,281
  146,647
Total equity, $m
  3,247
  3,762
  4,705
  5,790
  7,020
  8,398
  9,924
  11,597
  13,413
  15,372
  17,468
  19,700
  22,063
  24,556
  27,176
  29,921
  32,791
  35,785
  38,906
  42,153
  45,530
  49,041
  52,690
  56,482
  60,422
  64,518
  68,777
  73,207
  77,816
  82,615
  87,614
Total liabilities and equity, $m
  8,187
  10,058
  12,579
  15,481
  18,770
  22,455
  26,535
  31,007
  35,864
  41,101
  46,706
  52,673
  58,993
  65,658
  72,663
  80,003
  87,676
  95,682
  104,026
  112,709
  121,739
  131,126
  140,883
  151,021
  161,556
  172,508
  183,895
  195,740
  208,064
  220,896
  234,261
Debt-to-equity ratio
  1.102
  1.310
  1.380
  1.440
  1.480
  1.510
  1.540
  1.560
  1.570
  1.590
  1.600
  1.600
  1.610
  1.620
  1.620
  1.630
  1.630
  1.640
  1.640
  1.640
  1.640
  1.650
  1.650
  1.650
  1.650
  1.650
  1.650
  1.660
  1.660
  1.660
  1.660
Adjusted equity ratio
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,030
  -809
  -656
  -475
  -267
  -30
  170
  383
  615
  866
  1,136
  1,436
  1,741
  2,064
  2,403
  2,760
  3,132
  3,522
  3,928
  4,352
  4,793
  5,252
  5,729
  6,226
  6,743
  7,282
  7,842
  8,426
  9,035
  9,670
  10,333
Depreciation, amort., depletion, $m
  874
  1,099
  1,371
  1,683
  2,037
  2,434
  2,873
  3,354
  3,877
  4,440
  5,044
  5,669
  6,349
  7,067
  7,821
  8,611
  9,437
  10,298
  11,196
  12,131
  13,103
  14,113
  15,163
  16,254
  17,388
  18,567
  19,793
  21,067
  22,394
  23,775
  25,214
Funds from operations, $m
  624
  290
  715
  1,208
  1,770
  2,403
  3,043
  3,737
  4,492
  5,307
  6,180
  7,105
  8,091
  9,131
  10,224
  11,370
  12,569
  13,820
  15,125
  16,483
  17,895
  19,365
  20,892
  22,480
  24,132
  25,849
  27,635
  29,494
  31,429
  33,445
  35,546
Change in working capital, $m
  92
  11
  13
  15
  17
  19
  21
  23
  25
  27
  28
  30
  32
  34
  36
  37
  39
  41
  42
  44
  46
  48
  50
  51
  53
  56
  58
  60
  63
  65
  68
Cash from operations, $m
  532
  279
  702
  1,193
  1,754
  2,385
  3,022
  3,714
  4,467
  5,280
  6,151
  7,075
  8,059
  9,097
  10,188
  11,333
  12,530
  13,780
  15,082
  16,438
  17,850
  19,317
  20,843
  22,429
  24,078
  25,793
  27,577
  29,434
  31,367
  33,380
  35,478
Maintenance CAPEX, $m
  0
  -850
  -1,082
  -1,354
  -1,666
  -2,020
  -2,417
  -2,856
  -3,337
  -3,860
  -4,424
  -5,027
  -5,669
  -6,349
  -7,067
  -7,821
  -8,611
  -9,437
  -10,298
  -11,196
  -12,131
  -13,103
  -14,113
  -15,163
  -16,254
  -17,388
  -18,567
  -19,793
  -21,067
  -22,394
  -23,775
New CAPEX, $m
  -395
  -1,810
  -2,117
  -2,436
  -2,762
  -3,094
  -3,425
  -3,754
  -4,078
  -4,396
  -4,706
  -5,009
  -5,305
  -5,595
  -5,880
  -6,162
  -6,442
  -6,722
  -7,004
  -7,290
  -7,581
  -7,881
  -8,190
  -8,511
  -8,845
  -9,194
  -9,560
  -9,944
  -10,347
  -10,772
  -11,220
Cash from investing activities, $m
  -382
  -2,660
  -3,199
  -3,790
  -4,428
  -5,114
  -5,842
  -6,610
  -7,415
  -8,256
  -9,130
  -10,036
  -10,974
  -11,944
  -12,947
  -13,983
  -15,053
  -16,159
  -17,302
  -18,486
  -19,712
  -20,984
  -22,303
  -23,674
  -25,099
  -26,582
  -28,127
  -29,737
  -31,414
  -33,166
  -34,995
Free cash flow, $m
  150
  -2,382
  -2,497
  -2,596
  -2,675
  -2,729
  -2,819
  -2,896
  -2,948
  -2,976
  -2,979
  -2,962
  -2,916
  -2,848
  -2,759
  -2,650
  -2,523
  -2,379
  -2,220
  -2,047
  -1,863
  -1,667
  -1,461
  -1,245
  -1,021
  -789
  -550
  -302
  -48
  214
  483
Issuance/(repayment) of debt, $m
  -70
  1,356
  1,578
  1,816
  2,060
  2,307
  2,554
  2,799
  3,041
  3,278
  3,509
  3,735
  3,956
  4,172
  4,385
  4,595
  4,804
  5,012
  5,222
  5,436
  5,653
  5,877
  6,107
  6,346
  6,595
  6,856
  7,128
  7,415
  7,716
  8,033
  8,366
Issuance/(repurchase) of shares, $m
  -1
  1,619
  1,599
  1,560
  1,497
  1,408
  1,355
  1,289
  1,202
  1,092
  961
  796
  622
  429
  216
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -87
  2,975
  3,177
  3,376
  3,557
  3,715
  3,909
  4,088
  4,243
  4,370
  4,470
  4,531
  4,578
  4,601
  4,601
  4,595
  4,804
  5,012
  5,222
  5,436
  5,653
  5,877
  6,107
  6,346
  6,595
  6,856
  7,128
  7,415
  7,716
  8,033
  8,366
Total cash flow (excl. dividends), $m
  61
  593
  680
  780
  882
  986
  1,090
  1,193
  1,294
  1,394
  1,491
  1,570
  1,662
  1,753
  1,842
  1,945
  2,281
  2,634
  3,003
  3,388
  3,791
  4,210
  4,647
  5,101
  5,574
  6,066
  6,579
  7,112
  7,668
  8,246
  8,850
Retained Cash Flow (-), $m
  1,036
  -1,619
  -1,599
  -1,560
  -1,497
  -1,408
  -1,526
  -1,672
  -1,817
  -1,958
  -2,097
  -2,232
  -2,364
  -2,493
  -2,620
  -2,745
  -2,870
  -2,995
  -3,120
  -3,247
  -3,377
  -3,511
  -3,649
  -3,792
  -3,940
  -4,096
  -4,259
  -4,430
  -4,610
  -4,799
  -4,999
Prev. year cash balance distribution, $m
 
  295
  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
 
  -731
  -919
  -780
  -615
  -423
  -436
  -479
  -522
  -564
  -605
  -662
  -701
  -740
  -777
  -800
  -589
  -361
  -118
  141
  413
  699
  998
  1,310
  1,634
  1,971
  2,320
  2,682
  3,058
  3,447
  3,851
Discount rate, %
 
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
  34.58
PV of cash for distribution, $m
 
  -674
  -776
  -598
  -424
  -260
  -237
  -227
  -214
  -197
  -178
  -162
  -140
  -119
  -99
  -80
  -45
  -21
  -5
  4
  9
  10
  10
  8
  7
  5
  3
  2
  1
  1
  1
Current shareholders' claim on cash, %
  100
  56.3
  35.2
  23.9
  17.5
  13.6
  11.1
  9.4
  8.2
  7.3
  6.7
  6.3
  6.1
  5.9
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8
  5.8

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 -2.2
Price to Sales 1
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow 4.3
Price to Free Cash Flow 16.8
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 $2228 million for the last fiscal year's total revenue generated by Nabors Industries. The default revenue input number comes from 2016 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 27.3% 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 8.4%, 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 63.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1623 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 5.1% 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 297.7%.

Life of production assets of 7.8 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 1.8%. 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 - $3247 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 282.577 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 $2.3 billion.

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Financial statements of NBR
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