Intrinsic value of NextEra Energy - NEE

Previous Close

$169.97

  Intrinsic Value

$46.97

stock screener

  Rating & Target

str. sell

-72%

Previous close

$169.97

 
Intrinsic value

$46.97

 
Up/down potential

-72%

 
Rating

str. sell

We calculate the intrinsic value of NEE 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 2017), $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 79.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.40
  5.36
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.07
Revenue, $m
  18,295
  19,441
  20,633
  21,876
  23,170
  24,520
  25,929
  27,399
  28,934
  30,537
  32,213
  33,966
  35,798
  37,716
  39,722
  41,823
  44,022
  46,326
  48,740
  51,269
  53,920
  56,698
  59,611
  62,666
  65,869
  69,229
  72,753
  76,450
  80,328
  84,398
Variable operating expenses, $m
  5,672
  6,027
  6,396
  6,781
  7,183
  7,601
  8,038
  8,494
  8,969
  9,467
  9,986
  10,529
  11,097
  11,692
  12,314
  12,965
  13,647
  14,361
  15,109
  15,893
  16,715
  17,576
  18,480
  19,426
  20,419
  21,461
  22,553
  23,699
  24,902
  26,163
Fixed operating expenses, $m
  6,838
  6,989
  7,142
  7,300
  7,460
  7,624
  7,792
  7,963
  8,139
  8,318
  8,501
  8,688
  8,879
  9,074
  9,274
  9,478
  9,686
  9,899
  10,117
  10,340
  10,567
  10,800
  11,037
  11,280
  11,528
  11,782
  12,041
  12,306
  12,577
  12,853
Total operating expenses, $m
  12,510
  13,016
  13,538
  14,081
  14,643
  15,225
  15,830
  16,457
  17,108
  17,785
  18,487
  19,217
  19,976
  20,766
  21,588
  22,443
  23,333
  24,260
  25,226
  26,233
  27,282
  28,376
  29,517
  30,706
  31,947
  33,243
  34,594
  36,005
  37,479
  39,016
Operating income, $m
  5,786
  6,425
  7,095
  7,795
  8,527
  9,295
  10,099
  10,942
  11,826
  12,753
  13,727
  14,749
  15,822
  16,950
  18,135
  19,380
  20,689
  22,066
  23,513
  25,036
  26,637
  28,322
  30,095
  31,959
  33,922
  35,986
  38,158
  40,444
  42,850
  45,381
EBITDA, $m
  13,197
  14,301
  15,453
  16,656
  17,914
  19,228
  20,603
  22,041
  23,547
  25,124
  26,776
  28,508
  30,324
  32,228
  34,226
  36,322
  38,523
  40,832
  43,258
  45,805
  48,480
  51,291
  54,243
  57,345
  60,605
  64,031
  67,631
  71,414
  75,391
  79,571
Interest expense (income), $m
  1,193
  1,894
  2,132
  2,382
  2,642
  2,914
  3,197
  3,492
  3,799
  4,120
  4,456
  4,806
  5,172
  5,555
  5,955
  6,374
  6,812
  7,271
  7,752
  8,255
  8,782
  9,335
  9,914
  10,521
  11,157
  11,825
  12,524
  13,258
  14,028
  14,836
  15,683
Earnings before tax, $m
  3,891
  4,294
  4,713
  5,152
  5,614
  6,098
  6,607
  7,143
  7,705
  8,298
  8,921
  9,577
  10,267
  10,994
  11,760
  12,567
  13,418
  14,314
  15,258
  16,254
  17,303
  18,408
  19,574
  20,802
  22,097
  23,462
  24,900
  26,416
  28,014
  29,698
Tax expense, $m
  1,051
  1,159
  1,272
  1,391
  1,516
  1,647
  1,784
  1,928
  2,080
  2,240
  2,409
  2,586
  2,772
  2,968
  3,175
  3,393
  3,623
  3,865
  4,120
  4,388
  4,672
  4,970
  5,285
  5,617
  5,966
  6,335
  6,723
  7,132
  7,564
  8,018
Net income, $m
  2,841
  3,134
  3,440
  3,761
  4,098
  4,452
  4,823
  5,214
  5,625
  6,057
  6,512
  6,991
  7,495
  8,026
  8,585
  9,174
  9,795
  10,449
  11,139
  11,865
  12,631
  13,438
  14,289
  15,186
  16,131
  17,127
  18,177
  19,284
  20,450
  21,680

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
  103,952
  110,459
  117,235
  124,293
  131,649
  139,320
  147,322
  155,675
  164,397
  173,508
  183,031
  192,987
  203,399
  214,293
  225,694
  237,629
  250,127
  263,217
  276,931
  291,301
  306,362
  322,150
  338,701
  356,057
  374,257
  393,346
  413,369
  434,374
  456,411
  479,533
Adjusted assets (=assets-cash), $m
  103,952
  110,459
  117,235
  124,293
  131,649
  139,320
  147,322
  155,675
  164,397
  173,508
  183,031
  192,987
  203,399
  214,293
  225,694
  237,629
  250,127
  263,217
  276,931
  291,301
  306,362
  322,150
  338,701
  356,057
  374,257
  393,346
  413,369
  434,374
  456,411
  479,533
Revenue / Adjusted assets
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
  0.176
Average production assets, $m
  74,115
  78,755
  83,585
  88,618
  93,863
  99,332
  105,037
  110,993
  117,211
  123,707
  130,497
  137,595
  145,019
  152,786
  160,914
  169,424
  178,334
  187,667
  197,445
  207,691
  218,429
  229,685
  241,486
  253,860
  266,836
  280,446
  294,722
  309,698
  325,410
  341,895
Working capital, $m
  -201
  -214
  -227
  -241
  -255
  -270
  -285
  -301
  -318
  -336
  -354
  -374
  -394
  -415
  -437
  -460
  -484
  -510
  -536
  -564
  -593
  -624
  -656
  -689
  -725
  -762
  -800
  -841
  -884
  -928
Total debt, $m
  39,476
  44,109
  48,933
  53,958
  59,196
  64,658
  70,356
  76,303
  82,513
  89,000
  95,780
  102,868
  110,282
  118,038
  126,156
  134,654
  143,552
  152,873
  162,637
  172,869
  183,592
  194,833
  206,617
  218,974
  231,933
  245,524
  259,781
  274,736
  290,427
  306,889
Total liabilities, $m
  74,014
  78,647
  83,471
  88,496
  93,734
  99,196
  104,894
  110,841
  117,051
  123,538
  130,318
  137,406
  144,820
  152,576
  160,694
  169,192
  178,090
  187,411
  197,175
  207,407
  218,130
  229,371
  241,155
  253,512
  266,471
  280,062
  294,319
  309,274
  324,965
  341,427
Total equity, $m
  29,938
  31,812
  33,764
  35,796
  37,915
  40,124
  42,429
  44,834
  47,346
  49,970
  52,713
  55,580
  58,579
  61,716
  65,000
  68,437
  72,037
  75,807
  79,756
  83,895
  88,232
  92,779
  97,546
  102,544
  107,786
  113,284
  119,050
  125,100
  131,446
  138,105
Total liabilities and equity, $m
  103,952
  110,459
  117,235
  124,292
  131,649
  139,320
  147,323
  155,675
  164,397
  173,508
  183,031
  192,986
  203,399
  214,292
  225,694
  237,629
  250,127
  263,218
  276,931
  291,302
  306,362
  322,150
  338,701
  356,056
  374,257
  393,346
  413,369
  434,374
  456,411
  479,532
Debt-to-equity ratio
  1.320
  1.390
  1.450
  1.510
  1.560
  1.610
  1.660
  1.700
  1.740
  1.780
  1.820
  1.850
  1.880
  1.910
  1.940
  1.970
  1.990
  2.020
  2.040
  2.060
  2.080
  2.100
  2.120
  2.140
  2.150
  2.170
  2.180
  2.200
  2.210
  2.220
Adjusted equity ratio
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,841
  3,134
  3,440
  3,761
  4,098
  4,452
  4,823
  5,214
  5,625
  6,057
  6,512
  6,991
  7,495
  8,026
  8,585
  9,174
  9,795
  10,449
  11,139
  11,865
  12,631
  13,438
  14,289
  15,186
  16,131
  17,127
  18,177
  19,284
  20,450
  21,680
Depreciation, amort., depletion, $m
  7,411
  7,875
  8,359
  8,862
  9,386
  9,933
  10,504
  11,099
  11,721
  12,371
  13,050
  13,759
  14,502
  15,279
  16,091
  16,942
  17,833
  18,767
  19,745
  20,769
  21,843
  22,968
  24,149
  25,386
  26,684
  28,045
  29,472
  30,970
  32,541
  34,190
Funds from operations, $m
  10,252
  11,010
  11,799
  12,623
  13,484
  14,385
  15,327
  16,313
  17,346
  18,428
  19,562
  20,750
  21,997
  23,304
  24,677
  26,117
  27,628
  29,216
  30,883
  32,634
  34,474
  36,406
  38,437
  40,572
  42,814
  45,172
  47,649
  50,254
  52,991
  55,869
Change in working capital, $m
  -12
  -13
  -13
  -14
  -14
  -15
  -15
  -16
  -17
  -18
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -27
  -28
  -29
  -31
  -32
  -34
  -35
  -37
  -39
  -41
  -43
  -45
Cash from operations, $m
  10,264
  11,023
  11,812
  12,637
  13,498
  14,400
  15,343
  16,330
  17,363
  18,446
  19,580
  20,770
  22,017
  23,326
  24,699
  26,140
  27,653
  29,241
  30,910
  32,662
  34,503
  36,437
  38,469
  40,605
  42,850
  45,209
  47,688
  50,294
  53,034
  55,914
Maintenance CAPEX, $m
  -6,966
  -7,411
  -7,875
  -8,359
  -8,862
  -9,386
  -9,933
  -10,504
  -11,099
  -11,721
  -12,371
  -13,050
  -13,759
  -14,502
  -15,279
  -16,091
  -16,942
  -17,833
  -18,767
  -19,745
  -20,769
  -21,843
  -22,968
  -24,149
  -25,386
  -26,684
  -28,045
  -29,472
  -30,970
  -32,541
New CAPEX, $m
  -4,451
  -4,640
  -4,831
  -5,032
  -5,245
  -5,469
  -5,706
  -5,955
  -6,219
  -6,496
  -6,789
  -7,098
  -7,424
  -7,767
  -8,129
  -8,510
  -8,911
  -9,333
  -9,778
  -10,246
  -10,738
  -11,256
  -11,801
  -12,374
  -12,976
  -13,610
  -14,276
  -14,976
  -15,712
  -16,485
Cash from investing activities, $m
  -11,417
  -12,051
  -12,706
  -13,391
  -14,107
  -14,855
  -15,639
  -16,459
  -17,318
  -18,217
  -19,160
  -20,148
  -21,183
  -22,269
  -23,408
  -24,601
  -25,853
  -27,166
  -28,545
  -29,991
  -31,507
  -33,099
  -34,769
  -36,523
  -38,362
  -40,294
  -42,321
  -44,448
  -46,682
  -49,026
Free cash flow, $m
  -1,153
  -1,029
  -894
  -754
  -608
  -456
  -296
  -129
  45
  228
  420
  622
  834
  1,057
  1,291
  1,539
  1,800
  2,075
  2,365
  2,672
  2,996
  3,338
  3,700
  4,083
  4,487
  4,915
  5,367
  5,846
  6,352
  6,888
Issuance/(repayment) of debt, $m
  4,395
  4,633
  4,824
  5,025
  5,238
  5,462
  5,698
  5,947
  6,210
  6,487
  6,780
  7,088
  7,414
  7,756
  8,117
  8,498
  8,899
  9,320
  9,764
  10,232
  10,723
  11,241
  11,785
  12,357
  12,959
  13,591
  14,256
  14,956
  15,690
  16,463
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  
  4,395
  4,633
  4,824
  5,025
  5,238
  5,462
  5,698
  5,947
  6,210
  6,487
  6,780
  7,088
  7,414
  7,756
  8,117
  8,498
  8,899
  9,320
  9,764
  10,232
  10,723
  11,241
  11,785
  12,357
  12,959
  13,591
  14,256
  14,956
  15,690
  16,463
Total cash flow (excl. dividends), $m
  3,241
  3,605
  3,930
  4,271
  4,629
  5,006
  5,402
  5,818
  6,255
  6,716
  7,200
  7,710
  8,247
  8,813
  9,409
  10,037
  10,698
  11,395
  12,129
  12,903
  13,719
  14,579
  15,485
  16,440
  17,446
  18,506
  19,624
  20,802
  22,043
  23,350
Retained Cash Flow (-), $m
  -1,730
  -1,874
  -1,951
  -2,033
  -2,119
  -2,209
  -2,305
  -2,406
  -2,512
  -2,624
  -2,742
  -2,867
  -2,999
  -3,137
  -3,283
  -3,437
  -3,599
  -3,770
  -3,950
  -4,139
  -4,338
  -4,547
  -4,767
  -4,998
  -5,242
  -5,498
  -5,767
  -6,049
  -6,347
  -6,659
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
  1,511
  1,731
  1,978
  2,238
  2,511
  2,797
  3,097
  3,412
  3,743
  4,091
  4,458
  4,843
  5,249
  5,676
  6,125
  6,599
  7,099
  7,625
  8,180
  8,765
  9,382
  10,032
  10,718
  11,441
  12,204
  13,009
  13,857
  14,752
  15,696
  16,691
Discount rate, %
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.42
  17.24
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
  28.09
  29.49
  30.97
  32.52
PV of cash for distribution, $m
  1,401
  1,476
  1,540
  1,577
  1,588
  1,572
  1,531
  1,468
  1,386
  1,288
  1,177
  1,058
  935
  812
  693
  579
  475
  381
  300
  230
  172
  126
  90
  62
  42
  27
  17
  11
  6
  4
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

NextEra Energy, Inc. (NEE) is a holding company. The Company is an electric power companies in North America and, through its subsidiary NextEra Energy Resources, LLC (NEER) and its affiliated entities, is the generator of renewable energy from the wind and sun. NEE also owns and/or operates generation, transmission and distribution facilities to support its services to retail and wholesale customers, and has investments in gas infrastructure assets. Its segments include FPL and NEER. Florida Power & Light Company (FPL) is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. NEER is a diversified clean energy company with a business strategy that emphasizes the development, acquisition and operation of long-term contracted assets with a focus on renewable projects. NEER owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets.

FINANCIAL RATIOS  of  NextEra Energy (NEE)

Valuation Ratios
P/E Ratio 27.3
Price to Sales 4.9
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 12.6
Price to Free Cash Flow 38
Growth Rates
Sales Growth Rate -7.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 9.5%
Cap. Spend. - 3 Yr. Gr. Rate 5.6%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 114.3%
Total Debt to Equity 126.7%
Interest Coverage 5
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 4.5%
Return On Total Capital 5.4%
Ret/ On T. Cap. - 3 Yr. Avg. 5.4%
Return On Equity 12.4%
Return On Equity - 3 Yr. Avg. 12.8%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 55.5%
EBITDA Margin - 3 Yr. Avg. 49.5%
Operating Margin 28.5%
Oper. Margin - 3 Yr. Avg. 26.9%
Pre-Tax Margin 27.2%
Pre-Tax Margin - 3 Yr. Avg. 23.8%
Net Profit Margin 18%
Net Profit Margin - 3 Yr. Avg. 16.1%
Effective Tax Rate 31.5%
Eff/ Tax Rate - 3 Yr. Avg. 31.5%
Payout Ratio 55.4%

NEE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NEE stock intrinsic value calculation we used $17195 million for the last fiscal year's total revenue generated by NextEra Energy. The default revenue input number comes from 2017 income statement of NextEra Energy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NEE stock valuation model: a) initial revenue growth rate of 6.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.9%, whose default value for NEE is calculated based on our internal credit rating of NextEra Energy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of NextEra Energy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NEE stock the variable cost ratio is equal to 31%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $6691 million in the base year in the intrinsic value calculation for NEE 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 5.4% for NextEra Energy.

Corporate tax rate of 27% is the nominal tax rate for NextEra Energy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NEE 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 NEE are equal to 405.1%.

Life of production assets of 10 years is the average useful life of capital assets used in NextEra Energy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NEE is equal to -1.1%. 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 - $28208 million for NextEra Energy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 469 million for NextEra Energy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of NextEra Energy at the current share price and the inputted number of shares is $79.7 billion.

RELATED COMPANIES Price Int.Val. Rating
SO Southern 47.52 15.71  str.sell
DUK Duke Energy 80.65 38.91  sell
EE El Paso Electr 60.95 7.14  str.sell
EXC Exelon 42.05 30.98  hold
SCG Scana 40.12 27.95  sell

COMPANY NEWS

▶ 3 Stocks You Can Buy and Hold Forever   [06:19AM  Motley Fool]
▶ [$$] Why Utility Stocks Are Worth a Second Look   [Jul-11-18 05:25PM  Barrons.com]
▶ 5 Reasons to Invest in Stocks Versus Debt   [Jul-09-18 12:35PM  InvestorPlace]
▶ 8 Defensive Stocks Are Crushing the Techs   [08:00AM  Investopedia]
▶ Buy Solar Stocks to Profit From Coming Boom   [Jun-29-18 10:25PM  InvestorPlace]
▶ 2 Companies With a Secret Weapon in Renewable Power   [Jun-22-18 08:04AM  Motley Fool]
▶ 3 Renewable-Energy Stocks at the Top of My Watchlist   [Jun-21-18 03:46PM  Motley Fool]
▶ AT&T commissions 300 MW wind farm near Laredo   [Jun-15-18 04:02PM  American City Business Journals]
▶ 3 Dividend Stocks to Buy in Renewable Energy   [Jun-04-18 07:18AM  Motley Fool]
▶ NextEra Energy board declares quarterly dividend   [May-24-18 04:49PM  PR Newswire]
▶ 3 Top Dividend Stocks to Buy in May   [06:35AM  Motley Fool]
▶ Iran Tensions Send Oil Spiking Again   [May-22-18 03:00PM  Oilprice.com]
▶ FPL parent inks $6.5B acquisition deal   [08:33AM  American City Business Journals]
▶ SRP, NextEra unveil state's largest $60 million grid-connected solar and battery plant   [May-16-18 05:37PM  American City Business Journals]
▶ NYSE trader: Investors want to see companies ramp up spending   [May-15-18 01:19PM  Yahoo Finance Video]
▶ 3 Defensive Stocks to Weather an Uncertain Market   [May-11-18 02:33PM  Investopedia]
▶ 3 Dividend Stocks Ideal for Retirees   [07:30AM  Motley Fool]
▶ 1 Dividend Stock Id Buy Today   [Apr-30-18 08:17AM  Motley Fool]
▶ NextEra: 1Q Earnings Snapshot   [07:56AM  Associated Press]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

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

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