Intrinsic value of National Fuel Gas - NFG

Previous Close

$54.22

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$54.22

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of NFG 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 4.6

 

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, %
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
  5.25
  5.22
  5.20
  5.18
Revenue, $m
  1,719
  1,864
  2,014
  2,171
  2,334
  2,503
  2,678
  2,861
  3,051
  3,248
  3,454
  3,667
  3,890
  4,122
  4,364
  4,617
  4,880
  5,155
  5,442
  5,742
  6,056
  6,384
  6,727
  7,086
  7,461
  7,855
  8,267
  8,698
  9,151
  9,624
Variable operating expenses, $m
  2,212
  2,399
  2,592
  2,794
  3,003
  3,221
  3,447
  3,681
  3,926
  4,180
  4,444
  4,719
  5,005
  5,304
  5,615
  5,940
  6,279
  6,633
  7,002
  7,388
  7,792
  8,214
  8,655
  9,117
  9,600
  10,107
  10,637
  11,192
  11,774
  12,384
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
  2,212
  2,399
  2,592
  2,794
  3,003
  3,221
  3,447
  3,681
  3,926
  4,180
  4,444
  4,719
  5,005
  5,304
  5,615
  5,940
  6,279
  6,633
  7,002
  7,388
  7,792
  8,214
  8,655
  9,117
  9,600
  10,107
  10,637
  11,192
  11,774
  12,384
Operating income, $m
  -493
  -535
  -578
  -623
  -669
  -718
  -768
  -821
  -875
  -932
  -990
  -1,051
  -1,115
  -1,182
  -1,251
  -1,323
  -1,399
  -1,478
  -1,560
  -1,646
  -1,736
  -1,830
  -1,928
  -2,031
  -2,139
  -2,252
  -2,370
  -2,494
  -2,623
  -2,759
EBITDA, $m
  568
  616
  665
  717
  771
  827
  885
  945
  1,008
  1,073
  1,141
  1,211
  1,285
  1,362
  1,442
  1,525
  1,612
  1,703
  1,798
  1,897
  2,000
  2,109
  2,222
  2,340
  2,465
  2,595
  2,731
  2,873
  3,023
  3,179
Interest expense (income), $m
  117
  -1,862
  -2,290
  -651
  1,053
  2,825
  4,667
  6,581
  8,569
  10,636
  12,786
  15,021
  17,347
  19,768
  22,289
  24,917
  27,656
  30,513
  33,494
  36,606
  39,857
  43,254
  46,804
  50,517
  54,401
  58,465
  62,719
  67,173
  71,837
  76,723
  81,843
Earnings before tax, $m
  1,369
  1,755
  73
  -1,676
  -3,495
  -5,385
  -7,349
  -9,390
  -11,511
  -13,717
  -16,011
  -18,398
  -20,883
  -23,471
  -26,168
  -28,979
  -31,912
  -34,972
  -38,166
  -41,503
  -44,990
  -48,634
  -52,445
  -56,432
  -60,604
  -64,971
  -69,543
  -74,331
  -79,347
  -84,602
Tax expense, $m
  370
  474
  20
  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
  999
  1,281
  53
  -1,676
  -3,495
  -5,385
  -7,349
  -9,390
  -11,511
  -13,717
  -16,011
  -18,398
  -20,883
  -23,471
  -26,168
  -28,979
  -31,912
  -34,972
  -38,166
  -41,503
  -44,990
  -48,634
  -52,445
  -56,432
  -60,604
  -64,971
  -69,543
  -74,331
  -79,347
  -84,602

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
  6,032
  6,540
  7,068
  7,617
  8,188
  8,781
  9,397
  10,038
  10,704
  11,397
  12,118
  12,868
  13,650
  14,464
  15,313
  16,198
  17,122
  18,087
  19,094
  20,147
  21,248
  22,398
  23,602
  24,862
  26,180
  27,560
  29,006
  30,521
  32,107
  33,770
Adjusted assets (=assets-cash), $m
  6,032
  6,540
  7,068
  7,617
  8,188
  8,781
  9,397
  10,038
  10,704
  11,397
  12,118
  12,868
  13,650
  14,464
  15,313
  16,198
  17,122
  18,087
  19,094
  20,147
  21,248
  22,398
  23,602
  24,862
  26,180
  27,560
  29,006
  30,521
  32,107
  33,770
Revenue / Adjusted assets
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
Average production assets, $m
  10,606
  11,500
  12,428
  13,394
  14,398
  15,441
  16,525
  17,651
  18,823
  20,041
  21,308
  22,628
  24,002
  25,434
  26,927
  28,484
  30,109
  31,805
  33,577
  35,428
  37,363
  39,386
  41,503
  43,718
  46,036
  48,464
  51,006
  53,669
  56,459
  59,383
Working capital, $m
  -62
  -67
  -73
  -78
  -84
  -90
  -96
  -103
  -110
  -117
  -124
  -132
  -140
  -148
  -157
  -166
  -176
  -186
  -196
  -207
  -218
  -230
  -242
  -255
  -269
  -283
  -298
  -313
  -329
  -346
Total debt, $m
  -639
  -182
  294
  788
  1,302
  1,836
  2,390
  2,967
  3,566
  4,190
  4,839
  5,514
  6,217
  6,950
  7,714
  8,511
  9,343
  10,211
  11,118
  12,065
  13,056
  14,091
  15,175
  16,308
  17,495
  18,737
  20,038
  21,401
  22,829
  24,326
Total liabilities, $m
  5,429
  5,886
  6,361
  6,855
  7,369
  7,903
  8,458
  9,034
  9,634
  10,257
  10,906
  11,581
  12,285
  13,018
  13,782
  14,578
  15,410
  16,278
  17,185
  18,132
  19,123
  20,158
  21,242
  22,375
  23,562
  24,804
  26,106
  27,468
  28,897
  30,393
Total equity, $m
  603
  654
  707
  762
  819
  878
  940
  1,004
  1,070
  1,140
  1,212
  1,287
  1,365
  1,446
  1,531
  1,620
  1,712
  1,809
  1,909
  2,015
  2,125
  2,240
  2,360
  2,486
  2,618
  2,756
  2,901
  3,052
  3,211
  3,377
Total liabilities and equity, $m
  6,032
  6,540
  7,068
  7,617
  8,188
  8,781
  9,398
  10,038
  10,704
  11,397
  12,118
  12,868
  13,650
  14,464
  15,313
  16,198
  17,122
  18,087
  19,094
  20,147
  21,248
  22,398
  23,602
  24,861
  26,180
  27,560
  29,007
  30,520
  32,108
  33,770
Debt-to-equity ratio
  -1.060
  -0.280
  0.420
  1.030
  1.590
  2.090
  2.540
  2.960
  3.330
  3.680
  3.990
  4.290
  4.550
  4.810
  5.040
  5.250
  5.460
  5.650
  5.820
  5.990
  6.140
  6.290
  6.430
  6.560
  6.680
  6.800
  6.910
  7.010
  7.110
  7.200
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  999
  1,281
  53
  -1,676
  -3,495
  -5,385
  -7,349
  -9,390
  -11,511
  -13,717
  -16,011
  -18,398
  -20,883
  -23,471
  -26,168
  -28,979
  -31,912
  -34,972
  -38,166
  -41,503
  -44,990
  -48,634
  -52,445
  -56,432
  -60,604
  -64,971
  -69,543
  -74,331
  -79,347
  -84,602
Depreciation, amort., depletion, $m
  1,061
  1,150
  1,243
  1,340
  1,440
  1,545
  1,653
  1,766
  1,883
  2,005
  2,131
  2,263
  2,400
  2,543
  2,693
  2,848
  3,011
  3,180
  3,358
  3,543
  3,736
  3,939
  4,150
  4,372
  4,604
  4,846
  5,101
  5,367
  5,646
  5,938
Funds from operations, $m
  2,060
  2,432
  1,297
  -336
  -2,055
  -3,840
  -5,696
  -7,624
  -9,629
  -11,713
  -13,880
  -16,135
  -18,483
  -20,928
  -23,475
  -26,131
  -28,901
  -31,791
  -34,809
  -37,960
  -41,253
  -44,696
  -48,295
  -52,060
  -56,000
  -60,124
  -64,442
  -68,964
  -73,701
  -78,664
Change in working capital, $m
  -5
  -5
  -5
  -6
  -6
  -6
  -6
  -7
  -7
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -14
  -14
  -15
  -16
  -16
  -17
Cash from operations, $m
  2,065
  2,437
  1,302
  -331
  -2,049
  -3,834
  -5,690
  -7,618
  -9,622
  -11,706
  -13,873
  -16,128
  -18,475
  -20,919
  -23,466
  -26,122
  -28,891
  -31,781
  -34,798
  -37,949
  -41,242
  -44,684
  -48,283
  -52,047
  -55,987
  -60,110
  -64,427
  -68,948
  -73,685
  -78,647
Maintenance CAPEX, $m
  -975
  -1,061
  -1,150
  -1,243
  -1,339
  -1,440
  -1,544
  -1,652
  -1,765
  -1,882
  -2,004
  -2,131
  -2,263
  -2,400
  -2,543
  -2,693
  -2,848
  -3,011
  -3,180
  -3,358
  -3,543
  -3,736
  -3,939
  -4,150
  -4,372
  -4,604
  -4,846
  -5,101
  -5,367
  -5,646
New CAPEX, $m
  -858
  -893
  -929
  -966
  -1,004
  -1,043
  -1,084
  -1,127
  -1,171
  -1,218
  -1,268
  -1,320
  -1,374
  -1,432
  -1,493
  -1,557
  -1,625
  -1,696
  -1,772
  -1,851
  -1,935
  -2,023
  -2,117
  -2,215
  -2,318
  -2,427
  -2,542
  -2,663
  -2,790
  -2,924
Cash from investing activities, $m
  -1,833
  -1,954
  -2,079
  -2,209
  -2,343
  -2,483
  -2,628
  -2,779
  -2,936
  -3,100
  -3,272
  -3,451
  -3,637
  -3,832
  -4,036
  -4,250
  -4,473
  -4,707
  -4,952
  -5,209
  -5,478
  -5,759
  -6,056
  -6,365
  -6,690
  -7,031
  -7,388
  -7,764
  -8,157
  -8,570
Free cash flow, $m
  232
  483
  -777
  -2,539
  -4,392
  -6,317
  -8,318
  -10,397
  -12,558
  -14,806
  -17,144
  -19,578
  -22,112
  -24,751
  -27,503
  -30,371
  -33,364
  -36,488
  -39,750
  -43,158
  -46,720
  -50,444
  -54,338
  -58,413
  -62,677
  -67,141
  -71,816
  -76,712
  -81,842
  -87,217
Issuance/(repayment) of debt, $m
  -119
  457
  475
  494
  514
  534
  555
  577
  599
  624
  649
  675
  703
  733
  764
  797
  832
  868
  907
  947
  990
  1,036
  1,083
  1,134
  1,187
  1,242
  1,301
  1,363
  1,428
  1,497
Issuance/(repurchase) of shares, $m
  0
  0
  0
  1,731
  3,552
  5,444
  7,410
  9,454
  11,578
  13,786
  16,083
  18,473
  20,961
  23,552
  26,253
  29,068
  32,004
  35,068
  38,267
  41,608
  45,100
  48,749
  52,566
  56,558
  60,736
  65,109
  69,687
  74,482
  79,505
  84,768
Cash from financing (excl. dividends), $m  
  -119
  457
  475
  2,225
  4,066
  5,978
  7,965
  10,031
  12,177
  14,410
  16,732
  19,148
  21,664
  24,285
  27,017
  29,865
  32,836
  35,936
  39,174
  42,555
  46,090
  49,785
  53,649
  57,692
  61,923
  66,351
  70,988
  75,845
  80,933
  86,265
Total cash flow (excl. dividends), $m
  113
  940
  -301
  -314
  -326
  -339
  -352
  -366
  -381
  -396
  -413
  -429
  -447
  -466
  -486
  -507
  -529
  -552
  -577
  -603
  -630
  -659
  -689
  -721
  -755
  -790
  -827
  -867
  -908
  -952
Retained Cash Flow (-), $m
  -603
  -51
  -53
  -1,731
  -3,552
  -5,444
  -7,410
  -9,454
  -11,578
  -13,786
  -16,083
  -18,473
  -20,961
  -23,552
  -26,253
  -29,068
  -32,004
  -35,068
  -38,267
  -41,608
  -45,100
  -48,749
  -52,566
  -56,558
  -60,736
  -65,109
  -69,687
  -74,482
  -79,505
  -84,768
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
  13
  14
  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
  -490
  889
  -53
  -1,731
  -3,552
  -5,444
  -7,410
  -9,454
  -11,578
  -13,786
  -16,083
  -18,473
  -20,961
  -23,552
  -26,253
  -29,068
  -32,004
  -35,068
  -38,267
  -41,608
  -45,100
  -48,749
  -52,566
  -56,558
  -60,736
  -65,109
  -69,687
  -74,482
  -79,505
  -84,768
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
  -470
  814
  -46
  -1,425
  -2,753
  -3,951
  -5,006
  -5,909
  -6,651
  -7,228
  -7,638
  -7,883
  -7,970
  -7,907
  -7,707
  -7,387
  -6,964
  -6,458
  -5,892
  -5,287
  -4,665
  -4,045
  -3,445
  -2,881
  -2,363
  -1,900
  -1,496
  -1,152
  -868
  -638
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  29.0
  5.1
  0.7
  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
  0.0
  0.0
  0.0
  0.0

National Fuel Gas Company is a holding company. The Company is an energy company engaged principally in the production, gathering, transportation, distribution and marketing of natural gas. The Company operates in five business segments: Exploration and Production, Pipeline and Storage, Gathering, Utility, and Energy Marketing. The Company operates an integrated business, with assets centered in western New York and Pennsylvania, and the production and transportation of natural gas from the Marcellus Shale basin. The Company also develops and produces oil reserves, primarily in California. The Company's Exploration and Production segment operations are carried out by Seneca Resources Corporation (Seneca), a Pennsylvania corporation. The Company's National Fuel Gas Supply Corporation (Supply Corporation), a Pennsylvania corporation, and Empire Pipeline, Inc. (Empire), a New York corporation, carry out the Company's Pipeline and Storage segment operations.

FINANCIAL RATIOS  of  National Fuel Gas (NFG)

Valuation Ratios
P/E Ratio 16.4
Price to Sales 2.9
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 6.8
Price to Free Cash Flow 19.8
Growth Rates
Sales Growth Rate 8.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -22.7%
Cap. Spend. - 3 Yr. Gr. Rate -13.2%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 122.3%
Total Debt to Equity 139.9%
Interest Coverage 5
Management Effectiveness
Return On Assets 6.1%
Ret/ On Assets - 3 Yr. Avg. -0.8%
Return On Total Capital 7.3%
Ret/ On T. Cap. - 3 Yr. Avg. -3.1%
Return On Equity 17.5%
Return On Equity - 3 Yr. Avg. -5.3%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 49.7%
EBITDA Margin - 3 Yr. Avg. 7.9%
Operating Margin 35%
Oper. Margin - 3 Yr. Avg. -9.5%
Pre-Tax Margin 28.1%
Pre-Tax Margin - 3 Yr. Avg. -15.9%
Net Profit Margin 17.9%
Net Profit Margin - 3 Yr. Avg. -7.9%
Effective Tax Rate 36.3%
Eff/ Tax Rate - 3 Yr. Avg. 42.2%
Payout Ratio 49.1%

NFG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NFG stock intrinsic value calculation we used $1580 million for the last fiscal year's total revenue generated by National Fuel Gas. The default revenue input number comes from 2017 income statement of National Fuel Gas. 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 NFG stock valuation model: a) initial revenue growth rate of 8.8% 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 NFG is calculated based on our internal credit rating of National Fuel Gas, 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 National Fuel Gas.
    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 NFG stock the variable cost ratio is equal to 128.7%.

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 NFG 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 358.5% for National Fuel Gas.

Corporate tax rate of 27% is the nominal tax rate for National Fuel Gas. 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 NFG stock is equal to 0.8%.

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 NFG are equal to 617%.

Life of production assets of 10 years is the average useful life of capital assets used in National Fuel Gas 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 NFG is equal to -3.6%. 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 - $0 million for National Fuel Gas - 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 85 million for National Fuel Gas 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 National Fuel Gas at the current share price and the inputted number of shares is $4.6 billion.

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COMPANY NEWS

▶ National Fuel Elects New Director for Corporate Board   [Jul-12-18 11:33AM  GlobeNewswire]
▶ Teleconference Announcement   [Jul-10-18 02:56PM  GlobeNewswire]
▶ May Top Dividend Stocks To Look Out For   [May-09-18 09:02AM  Simply Wall St.]
▶ National Fuel Gas: Fiscal 2Q Earnings Snapshot   [May-04-18 05:07AM  Associated Press]
▶ Teleconference Announcement   [Apr-05-18 11:11AM  GlobeNewswire]
▶ National Fuel keeps up pressure to build $455 million 'Northern Access' pipeline   [Mar-29-18 02:35AM  American City Business Journals]
▶ Top NasdaqGS Dividend Payers   [Feb-12-18 08:02AM  Simply Wall St.]
▶ National Fuel Gas Company to Host Earnings Call   [Feb-02-18 07:50AM  ACCESSWIRE]
▶ National Fuel Gas beats 1Q profit forecasts   [Feb-01-18 05:57PM  Associated Press]
▶ National Fuel Reports First Quarter Earnings   [04:45PM  GlobeNewswire]
▶ Teleconference Announcement   [Jan-08-18 01:53PM  GlobeNewswire]
▶ National Fuel Declares Quarterly Dividend   [Dec-07-17 12:38PM  Business Wire]
▶ What Were Gabelli Funds Largest Holdings in 3Q17?   [Nov-24-17 08:52AM  Market Realist]
▶ National Fuel Gas meets 4Q profit forecasts   [Nov-06-17 05:38AM  Associated Press]
▶ National Fuel Gas Company to Host Earnings Call   [Nov-03-17 08:30AM  ACCESSWIRE]
▶ National Fuel Declares Quarterly Dividend   [Sep-14-17 01:05PM  Business Wire]
▶ National Fuel Gas meets 3Q profit forecasts   [Aug-05-17 01:12AM  Associated Press]
▶ National Fuel Reports Third Quarter Earnings   [Aug-03-17 05:05PM  Business Wire]
▶ What Are Gabelli Funds Largest Holdings?   [Jul-26-17 07:44AM  Market Realist]
▶ National Fuel Gas Company Teleconference Announcement   [Jul-06-17 04:42PM  Business Wire]
▶ National Fuel Gas beats 2Q profit forecasts   [May-05-17 05:03AM  Associated Press]
▶ National Fuel Reports Second Quarter Earnings   [May-04-17 05:05PM  Business Wire]
▶ National Fuel Gas Company Teleconference Announcement   [Apr-06-17 02:28PM  Business Wire]
▶ National Fuel Gas beats 1Q profit forecasts   [Feb-02-17 06:14PM  Associated Press]
▶ National Fuel Reports First Quarter Earnings   [04:30PM  Business Wire]
▶ Tops eyes PHH Mortgage building as new headquarters   [Jan-17-17 12:48PM  at bizjournals.com]
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