Intrinsic value of National Oilwell Varco - NOV

Previous Close

$43.84

  Intrinsic Value

$3.03

stock screener

  Rating & Target

str. sell

-93%

Previous close

$43.84

 
Intrinsic value

$3.03

 
Up/down potential

-93%

 
Rating

str. sell

We calculate the intrinsic value of NOV 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 16.5

 

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, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  7,450
  7,621
  7,817
  8,037
  8,281
  8,548
  8,839
  9,154
  9,494
  9,858
  10,248
  10,664
  11,107
  11,578
  12,077
  12,606
  13,166
  13,759
  14,385
  15,046
  15,743
  16,479
  17,254
  18,071
  18,931
  19,837
  20,790
  21,794
  22,849
  23,959
Variable operating expenses, $m
  9,912
  10,118
  10,354
  10,618
  10,911
  11,232
  11,583
  11,962
  12,370
  12,808
  12,324
  12,824
  13,357
  13,923
  14,523
  15,160
  15,833
  16,546
  17,299
  18,093
  18,932
  19,817
  20,749
  21,731
  22,766
  23,855
  25,001
  26,208
  27,477
  28,812
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
  9,912
  10,118
  10,354
  10,618
  10,911
  11,232
  11,583
  11,962
  12,370
  12,808
  12,324
  12,824
  13,357
  13,923
  14,523
  15,160
  15,833
  16,546
  17,299
  18,093
  18,932
  19,817
  20,749
  21,731
  22,766
  23,855
  25,001
  26,208
  27,477
  28,812
Operating income, $m
  -2,462
  -2,497
  -2,536
  -2,581
  -2,630
  -2,684
  -2,743
  -2,807
  -2,876
  -2,950
  -2,076
  -2,160
  -2,250
  -2,345
  -2,446
  -2,553
  -2,667
  -2,787
  -2,914
  -3,048
  -3,189
  -3,338
  -3,495
  -3,660
  -3,835
  -4,018
  -4,211
  -4,414
  -4,628
  -4,853
EBITDA, $m
  -220
  -225
  -231
  -238
  -245
  -253
  -261
  -271
  -281
  -291
  -303
  -315
  -328
  -342
  -357
  -373
  -389
  -407
  -425
  -445
  -465
  -487
  -510
  -534
  -559
  -586
  -614
  -644
  -675
  -708
Interest expense (income), $m
  101
  146
  153
  161
  170
  179
  190
  203
  216
  230
  245
  262
  279
  298
  318
  339
  362
  386
  411
  438
  466
  496
  528
  561
  596
  633
  672
  713
  756
  801
  849
Earnings before tax, $m
  -2,608
  -2,649
  -2,697
  -2,750
  -2,810
  -2,875
  -2,946
  -3,023
  -3,106
  -3,195
  -2,338
  -2,439
  -2,548
  -2,663
  -2,786
  -2,915
  -3,053
  -3,198
  -3,352
  -3,514
  -3,685
  -3,865
  -4,056
  -4,256
  -4,467
  -4,690
  -4,924
  -5,170
  -5,429
  -5,702
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
  -2,608
  -2,649
  -2,697
  -2,750
  -2,810
  -2,875
  -2,946
  -3,023
  -3,106
  -3,195
  -2,338
  -2,439
  -2,548
  -2,663
  -2,786
  -2,915
  -3,053
  -3,198
  -3,352
  -3,514
  -3,685
  -3,865
  -4,056
  -4,256
  -4,467
  -4,690
  -4,924
  -5,170
  -5,429
  -5,702

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
  20,637
  21,112
  21,655
  22,264
  22,939
  23,679
  24,486
  25,359
  26,299
  27,308
  28,388
  29,540
  30,767
  32,071
  33,454
  34,920
  36,472
  38,113
  39,847
  41,678
  43,610
  45,647
  47,795
  50,058
  52,441
  54,950
  57,591
  60,370
  63,294
  66,369
Adjusted assets (=assets-cash), $m
  20,637
  21,112
  21,655
  22,264
  22,939
  23,679
  24,486
  25,359
  26,299
  27,308
  28,388
  29,540
  30,767
  32,071
  33,454
  34,920
  36,472
  38,113
  39,847
  41,678
  43,610
  45,647
  47,795
  50,058
  52,441
  54,950
  57,591
  60,370
  63,294
  66,369
Revenue / Adjusted assets
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
  0.361
Average production assets, $m
  12,889
  13,185
  13,524
  13,904
  14,326
  14,788
  15,292
  15,837
  16,425
  17,055
  17,729
  18,449
  19,215
  20,029
  20,893
  21,809
  22,778
  23,803
  24,886
  26,029
  27,236
  28,508
  29,849
  31,263
  32,751
  34,318
  35,967
  37,703
  39,529
  41,449
Working capital, $m
  2,540
  2,599
  2,666
  2,741
  2,824
  2,915
  3,014
  3,122
  3,237
  3,362
  3,495
  3,636
  3,787
  3,948
  4,118
  4,299
  4,490
  4,692
  4,905
  5,131
  5,368
  5,619
  5,884
  6,162
  6,456
  6,764
  7,089
  7,432
  7,792
  8,170
Total debt, $m
  2,832
  2,976
  3,140
  3,324
  3,527
  3,751
  3,995
  4,258
  4,542
  4,847
  5,173
  5,521
  5,892
  6,285
  6,703
  7,146
  7,615
  8,110
  8,634
  9,187
  9,770
  10,386
  11,034
  11,717
  12,437
  13,195
  13,992
  14,832
  15,715
  16,643
Total liabilities, $m
  6,232
  6,376
  6,540
  6,724
  6,927
  7,151
  7,395
  7,658
  7,942
  8,247
  8,573
  8,921
  9,292
  9,685
  10,103
  10,546
  11,015
  11,510
  12,034
  12,587
  13,170
  13,786
  14,434
  15,117
  15,837
  16,595
  17,392
  18,232
  19,115
  20,043
Total equity, $m
  14,405
  14,736
  15,115
  15,540
  16,011
  16,528
  17,091
  17,700
  18,357
  19,061
  19,815
  20,619
  21,475
  22,385
  23,351
  24,374
  25,458
  26,603
  27,813
  29,091
  30,440
  31,862
  33,361
  34,940
  36,604
  38,355
  40,198
  42,138
  44,179
  46,325
Total liabilities and equity, $m
  20,637
  21,112
  21,655
  22,264
  22,938
  23,679
  24,486
  25,358
  26,299
  27,308
  28,388
  29,540
  30,767
  32,070
  33,454
  34,920
  36,473
  38,113
  39,847
  41,678
  43,610
  45,648
  47,795
  50,057
  52,441
  54,950
  57,590
  60,370
  63,294
  66,368
Debt-to-equity ratio
  0.200
  0.200
  0.210
  0.210
  0.220
  0.230
  0.230
  0.240
  0.250
  0.250
  0.260
  0.270
  0.270
  0.280
  0.290
  0.290
  0.300
  0.300
  0.310
  0.320
  0.320
  0.330
  0.330
  0.340
  0.340
  0.340
  0.350
  0.350
  0.360
  0.360
Adjusted equity ratio
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,608
  -2,649
  -2,697
  -2,750
  -2,810
  -2,875
  -2,946
  -3,023
  -3,106
  -3,195
  -2,338
  -2,439
  -2,548
  -2,663
  -2,786
  -2,915
  -3,053
  -3,198
  -3,352
  -3,514
  -3,685
  -3,865
  -4,056
  -4,256
  -4,467
  -4,690
  -4,924
  -5,170
  -5,429
  -5,702
Depreciation, amort., depletion, $m
  2,242
  2,271
  2,305
  2,343
  2,385
  2,432
  2,482
  2,537
  2,595
  2,658
  1,773
  1,845
  1,921
  2,003
  2,089
  2,181
  2,278
  2,380
  2,489
  2,603
  2,724
  2,851
  2,985
  3,126
  3,275
  3,432
  3,597
  3,770
  3,953
  4,145
Funds from operations, $m
  -367
  -378
  -392
  -407
  -424
  -443
  -464
  -486
  -511
  -537
  -565
  -594
  -626
  -660
  -696
  -734
  -775
  -818
  -863
  -911
  -961
  -1,015
  -1,071
  -1,130
  -1,192
  -1,258
  -1,327
  -1,400
  -1,476
  -1,557
Change in working capital, $m
  50
  58
  67
  75
  83
  91
  99
  107
  116
  124
  133
  142
  151
  160
  170
  180
  191
  202
  213
  225
  238
  251
  264
  279
  293
  309
  325
  342
  360
  379
Cash from operations, $m
  -416
  -437
  -458
  -482
  -507
  -534
  -563
  -594
  -626
  -661
  -698
  -736
  -777
  -821
  -867
  -915
  -966
  -1,020
  -1,077
  -1,136
  -1,199
  -1,265
  -1,335
  -1,408
  -1,486
  -1,567
  -1,652
  -1,742
  -1,836
  -1,935
Maintenance CAPEX, $m
  -1,264
  -1,289
  -1,319
  -1,352
  -1,390
  -1,433
  -1,479
  -1,529
  -1,584
  -1,642
  -1,705
  -1,773
  -1,845
  -1,921
  -2,003
  -2,089
  -2,181
  -2,278
  -2,380
  -2,489
  -2,603
  -2,724
  -2,851
  -2,985
  -3,126
  -3,275
  -3,432
  -3,597
  -3,770
  -3,953
New CAPEX, $m
  -250
  -296
  -339
  -380
  -422
  -463
  -504
  -545
  -587
  -630
  -674
  -720
  -766
  -814
  -864
  -916
  -969
  -1,025
  -1,083
  -1,143
  -1,207
  -1,272
  -1,341
  -1,413
  -1,488
  -1,567
  -1,649
  -1,736
  -1,826
  -1,921
Cash from investing activities, $m
  -1,514
  -1,585
  -1,658
  -1,732
  -1,812
  -1,896
  -1,983
  -2,074
  -2,171
  -2,272
  -2,379
  -2,493
  -2,611
  -2,735
  -2,867
  -3,005
  -3,150
  -3,303
  -3,463
  -3,632
  -3,810
  -3,996
  -4,192
  -4,398
  -4,614
  -4,842
  -5,081
  -5,333
  -5,596
  -5,874
Free cash flow, $m
  -1,930
  -2,022
  -2,116
  -2,215
  -2,319
  -2,429
  -2,546
  -2,668
  -2,797
  -2,934
  -3,077
  -3,229
  -3,388
  -3,556
  -3,734
  -3,920
  -4,116
  -4,323
  -4,540
  -4,768
  -5,009
  -5,261
  -5,527
  -5,806
  -6,100
  -6,409
  -6,733
  -7,074
  -7,432
  -7,809
Issuance/(repayment) of debt, $m
  120
  143
  164
  184
  204
  224
  244
  264
  284
  305
  326
  348
  370
  394
  418
  443
  469
  496
  524
  553
  583
  615
  649
  683
  720
  758
  798
  839
  883
  929
Issuance/(repurchase) of shares, $m
  2,919
  2,981
  3,076
  3,175
  3,281
  3,392
  3,509
  3,632
  3,762
  3,899
  3,091
  3,244
  3,404
  3,573
  3,751
  3,939
  4,136
  4,344
  4,562
  4,792
  5,033
  5,287
  5,555
  5,835
  6,131
  6,441
  6,767
  7,110
  7,470
  7,848
Cash from financing (excl. dividends), $m  
  3,039
  3,124
  3,240
  3,359
  3,485
  3,616
  3,753
  3,896
  4,046
  4,204
  3,417
  3,592
  3,774
  3,967
  4,169
  4,382
  4,605
  4,840
  5,086
  5,345
  5,616
  5,902
  6,204
  6,518
  6,851
  7,199
  7,565
  7,949
  8,353
  8,777
Total cash flow (excl. dividends), $m
  1,109
  1,102
  1,124
  1,145
  1,165
  1,186
  1,207
  1,228
  1,249
  1,271
  340
  363
  386
  410
  436
  462
  489
  517
  546
  576
  608
  641
  676
  712
  750
  790
  831
  875
  920
  968
Retained Cash Flow (-), $m
  -2,919
  -2,981
  -3,076
  -3,175
  -3,281
  -3,392
  -3,509
  -3,632
  -3,762
  -3,899
  -3,091
  -3,244
  -3,404
  -3,573
  -3,751
  -3,939
  -4,136
  -4,344
  -4,562
  -4,792
  -5,033
  -5,287
  -5,555
  -5,835
  -6,131
  -6,441
  -6,767
  -7,110
  -7,470
  -7,848
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
  124
  127
  130
  133
  137
  141
  145
  150
  156
  161
  168
  174
  181
  189
  197
  205
  214
  224
  234
  245
  256
  268
  280
  293
  307
  322
  337
  353
  370
  388
Cash available for distribution, $m
  -1,810
  -1,879
  -1,952
  -2,031
  -2,115
  -2,206
  -2,302
  -2,404
  -2,513
  -2,629
  -2,751
  -2,881
  -3,018
  -3,163
  -3,316
  -3,477
  -3,647
  -3,827
  -4,016
  -4,215
  -4,425
  -4,646
  -4,879
  -5,123
  -5,380
  -5,651
  -5,936
  -6,235
  -6,549
  -6,880
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
  -1,735
  -1,720
  -1,699
  -1,672
  -1,640
  -1,601
  -1,555
  -1,503
  -1,444
  -1,378
  -1,307
  -1,229
  -1,147
  -1,062
  -973
  -884
  -794
  -705
  -618
  -536
  -458
  -385
  -320
  -261
  -209
  -165
  -127
  -96
  -71
  -52
Current shareholders' claim on cash, %
  85.0
  72.2
  61.3
  52.0
  44.1
  37.3
  31.6
  26.8
  22.7
  19.2
  16.8
  14.8
  13.0
  11.4
  9.9
  8.7
  7.6
  6.6
  5.8
  5.0
  4.4
  3.8
  3.3
  2.9
  2.5
  2.2
  1.9
  1.7
  1.4
  1.2

National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company's Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.

FINANCIAL RATIOS  of  National Oilwell Varco (NOV)

Valuation Ratios
P/E Ratio -6.9
Price to Sales 2.3
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 17.3
Price to Free Cash Flow 24.6
Growth Rates
Sales Growth Rate -50.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -37.3%
Cap. Spend. - 3 Yr. Gr. Rate -14.3%
Financial Strength
Quick Ratio 3
Current Ratio 0.2
LT Debt to Equity 19.4%
Total Debt to Equity 23.1%
Interest Coverage -25
Management Effectiveness
Return On Assets -9.8%
Ret/ On Assets - 3 Yr. Avg. -1.5%
Return On Total Capital -12.9%
Ret/ On T. Cap. - 3 Yr. Avg. -2.1%
Return On Equity -15.9%
Return On Equity - 3 Yr. Avg. -2.8%
Asset Turnover 0.3
Profitability Ratios
Gross Margin -1.4%
Gross Margin - 3 Yr. Avg. 15.5%
EBITDA Margin -25.1%
EBITDA Margin - 3 Yr. Avg. -1%
Operating Margin -33.3%
Oper. Margin - 3 Yr. Avg. -6.3%
Pre-Tax Margin -36.2%
Pre-Tax Margin - 3 Yr. Avg. -8%
Net Profit Margin -33.3%
Net Profit Margin - 3 Yr. Avg. -8.9%
Effective Tax Rate 7.9%
Eff/ Tax Rate - 3 Yr. Avg. 2.5%
Payout Ratio -9.5%

NOV stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NOV stock intrinsic value calculation we used $7304 million for the last fiscal year's total revenue generated by National Oilwell Varco. The default revenue input number comes from 2017 income statement of National Oilwell Varco. 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 NOV stock valuation model: a) initial revenue growth rate of 2% 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 NOV is calculated based on our internal credit rating of National Oilwell Varco, 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 Oilwell Varco.
    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 NOV stock the variable cost ratio is equal to 133.3%.

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 NOV 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 National Oilwell Varco.

Corporate tax rate of 27% is the nominal tax rate for National Oilwell Varco. 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 NOV stock is equal to 1.7%.

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 NOV are equal to 173%.

Life of production assets of 10 years is the average useful life of capital assets used in National Oilwell Varco 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 NOV is equal to 34.1%. 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 - $14094 million for National Oilwell Varco - 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 377 million for National Oilwell Varco 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 Oilwell Varco at the current share price and the inputted number of shares is $16.5 billion.

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COMPANY NEWS

▶ National Oilwell Varco Declares Regular Quarterly Dividend   [Aug-16-18 06:30AM  Business Wire]
▶ NASDAQ, S&P Within 1% of New Highs   [Aug-08-18 09:15AM  Zacks]
▶ National Oilwell Varco Reports Second Quarter 2018 Earnings   [Jul-26-18 06:00PM  Business Wire]
▶ [$$] Look Who's Buying Verizon and JPMorgan   [Jul-13-18 07:30AM  Barrons.com]
▶ The 5 Best Energy Stocks of 2018 (So Far)   [Jul-07-18 10:19AM  Motley Fool]
▶ NOV, Saudi Aramco form JV to provide drilling equipment, create education center   [Jun-29-18 01:19PM  American City Business Journals]
▶ National Oilwell Varco Q2 Earnings Preview   [Jun-26-18 07:46AM  Benzinga]
▶ [$$] CapStreet Group Appoints Principal   [Jun-04-18 12:29PM  The Wall Street Journal]
▶ 3 Top Oil Stocks to Buy Right Now   [Jun-03-18 06:16AM  Motley Fool]
▶ Closing Bell Exchange: Markets react to Fed minutes   [May-23-18 03:49PM  CNBC Videos]
▶ Two ways to play oil stocks while limiting your risk   [May-16-18 07:18AM  MarketWatch]
▶ Two ways to play oil stocks while limiting your risk   [May-15-18 12:32PM  MarketWatch]
▶ National Oilwell Varco Declares Regular Quarterly Dividend   [May-11-18 05:00PM  Business Wire]
▶ TD Ameritrade Investor Movement Index Down Again in April   [May-08-18 02:08PM  Investopedia]
▶ National Oilwell Varco, Inc. Took a Step Back in Q1   [Apr-27-18 03:44PM  Motley Fool]
▶ National Oilwell Varco: 1Q Earnings Snapshot   [05:07AM  Associated Press]
▶ National Oilwell Varco Reports First Quarter 2018 Results   [Apr-26-18 07:50PM  Business Wire]
▶ 5 Likely Winners Of The Next Oil Boom   [Apr-18-18 07:30PM  Oilprice.com]
▶ OTC 2018: Tech awards doled out before big conference hits Houston   [Mar-22-18 03:21PM  American City Business Journals]
▶ National Oilwell Varco Declares Regular Quarterly Dividend   [Feb-23-18 06:00PM  Business Wire]
▶ Drilling products company anticipates Houston job cuts due to NOV acquisition   [Feb-21-18 09:10AM  American City Business Journals]
▶ Stock Market News For Feb 6, 2018   [Feb-06-18 10:15AM  Zacks]
▶ National Oilwell Varco reports 4Q loss   [05:03AM  Associated Press]
▶ Deja Vu: Oil Investors Could Relive 2014's Swings   [10:51AM  The Wall Street Journal]
▶ Wall Streets Forecasts for NOV ahead of 4Q17 Earnings   [Jan-26-18 07:30AM  Market Realist]
▶ National Oilwell Varcos Reaction to Crude Oil Changes   [Jan-25-18 10:31AM  Market Realist]
▶ Will US Rig Counts Impact National Oilwell Varco in 4Q17?   [Jan-24-18 10:32AM  Market Realist]
▶ How National Oilwell Varco Performed in 3Q17   [09:03AM  Market Realist]
▶ National Oilwell Varcos Outlook for 4Q17   [07:36AM  Market Realist]
▶ What Wall Street Analysts Expect from NOVs 4Q17 Earnings   [Jan-23-18 04:42PM  Market Realist]
▶ Schlumbergers Next 7-Day Stock Price Forecast   [Jan-22-18 11:30AM  Market Realist]
▶ Weatherfords Stock Price Forecast   [Jan-19-18 10:35AM  Market Realist]
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