Intrinsic value of NRG Energy - NRG

Previous Close

$26.90

  Intrinsic Value

$1.11

stock screener

  Rating & Target

str. sell

-96%

Previous close

$26.90

 
Intrinsic value

$1.11

 
Up/down potential

-96%

 
Rating

str. sell

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

We calculate the intrinsic value of NRG 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, %
  -15.83
  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
  12,351
  12,598
  12,888
  13,219
  13,591
  14,003
  14,455
  14,947
  15,480
  16,054
  16,670
  17,329
  18,033
  18,782
  19,578
  20,422
  21,317
  22,264
  23,266
  24,325
  25,442
  26,622
  27,865
  29,176
  30,558
  32,012
  33,544
  35,156
  36,853
  38,637
  40,515
Variable operating expenses, $m
 
  16,049
  16,416
  16,836
  17,308
  17,831
  18,404
  19,029
  19,705
  20,433
  21,215
  21,985
  22,877
  23,827
  24,837
  25,908
  27,044
  28,245
  29,516
  30,859
  32,277
  33,773
  35,351
  37,014
  38,767
  40,612
  42,555
  44,601
  46,753
  49,017
  51,399
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
  12,234
  16,049
  16,416
  16,836
  17,308
  17,831
  18,404
  19,029
  19,705
  20,433
  21,215
  21,985
  22,877
  23,827
  24,837
  25,908
  27,044
  28,245
  29,516
  30,859
  32,277
  33,773
  35,351
  37,014
  38,767
  40,612
  42,555
  44,601
  46,753
  49,017
  51,399
Operating income, $m
  117
  -3,451
  -3,528
  -3,617
  -3,717
  -3,828
  -3,949
  -4,082
  -4,225
  -4,379
  -4,545
  -4,655
  -4,844
  -5,046
  -5,259
  -5,486
  -5,727
  -5,981
  -6,250
  -6,535
  -6,835
  -7,152
  -7,486
  -7,838
  -8,209
  -8,600
  -9,011
  -9,444
  -9,900
  -10,380
  -10,884
EBITDA, $m
  1,575
  -1,955
  -2,000
  -2,052
  -2,109
  -2,173
  -2,244
  -2,320
  -2,403
  -2,492
  -2,587
  -2,690
  -2,799
  -2,915
  -3,039
  -3,170
  -3,309
  -3,456
  -3,611
  -3,775
  -3,949
  -4,132
  -4,325
  -4,528
  -4,743
  -4,969
  -5,206
  -5,457
  -5,720
  -5,997
  -6,288
Interest expense (income), $m
  1,106
  989
  939
  978
  1,023
  1,073
  1,128
  1,189
  1,255
  1,327
  1,404
  1,487
  1,576
  1,670
  1,771
  1,878
  1,991
  2,112
  2,239
  2,374
  2,516
  2,667
  2,825
  2,992
  3,169
  3,354
  3,550
  3,756
  3,973
  4,201
  4,441
Earnings before tax, $m
  -875
  -4,440
  -4,468
  -4,596
  -4,740
  -4,901
  -5,078
  -5,271
  -5,480
  -5,706
  -5,949
  -6,142
  -6,420
  -6,716
  -7,030
  -7,364
  -7,718
  -8,093
  -8,489
  -8,909
  -9,351
  -9,818
  -10,311
  -10,830
  -11,378
  -11,954
  -12,561
  -13,200
  -13,873
  -14,580
  -15,325
Tax expense, $m
  16
  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
  -774
  -4,440
  -4,468
  -4,596
  -4,740
  -4,901
  -5,078
  -5,271
  -5,480
  -5,706
  -5,949
  -6,142
  -6,420
  -6,716
  -7,030
  -7,364
  -7,718
  -8,093
  -8,489
  -8,909
  -9,351
  -9,818
  -10,311
  -10,830
  -11,378
  -11,954
  -12,561
  -13,200
  -13,873
  -14,580
  -15,325

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  938
  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
  30,682
  30,357
  31,055
  31,853
  32,749
  33,742
  34,831
  36,017
  37,302
  38,685
  40,170
  41,758
  43,453
  45,257
  47,175
  49,210
  51,366
  53,649
  56,063
  58,614
  61,307
  64,149
  67,146
  70,304
  73,633
  77,138
  80,829
  84,714
  88,802
  93,102
  97,626
Adjusted assets (=assets-cash), $m
  29,744
  30,357
  31,055
  31,853
  32,749
  33,742
  34,831
  36,017
  37,302
  38,685
  40,170
  41,758
  43,453
  45,257
  47,175
  49,210
  51,366
  53,649
  56,063
  58,614
  61,307
  64,149
  67,146
  70,304
  73,633
  77,138
  80,829
  84,714
  88,802
  93,102
  97,626
Revenue / Adjusted assets
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
  0.415
Average production assets, $m
  19,192
  19,577
  20,028
  20,542
  21,120
  21,760
  22,463
  23,228
  24,056
  24,948
  25,906
  26,930
  28,023
  29,187
  30,423
  31,736
  33,127
  34,599
  36,156
  37,801
  39,537
  41,370
  43,303
  45,340
  47,487
  49,747
  52,127
  54,633
  57,269
  60,043
  62,960
Working capital, $m
  2,012
  1,625
  1,663
  1,705
  1,753
  1,806
  1,865
  1,928
  1,997
  2,071
  2,150
  2,236
  2,326
  2,423
  2,526
  2,634
  2,750
  2,872
  3,001
  3,138
  3,282
  3,434
  3,595
  3,764
  3,942
  4,130
  4,327
  4,535
  4,754
  4,984
  5,226
Total debt, $m
  16,473
  15,153
  15,781
  16,500
  17,306
  18,200
  19,180
  20,248
  21,403
  22,648
  23,985
  25,414
  26,939
  28,563
  30,289
  32,121
  34,062
  36,116
  38,289
  40,584
  43,008
  45,566
  48,263
  51,106
  54,101
  57,256
  60,578
  64,074
  67,753
  71,624
  75,695
Total liabilities, $m
  28,641
  27,321
  27,949
  28,668
  29,474
  30,368
  31,348
  32,416
  33,571
  34,816
  36,153
  37,582
  39,107
  40,731
  42,457
  44,289
  46,230
  48,284
  50,457
  52,752
  55,176
  57,734
  60,431
  63,274
  66,269
  69,424
  72,746
  76,242
  79,921
  83,792
  87,863
Total equity, $m
  2,041
  3,036
  3,105
  3,185
  3,275
  3,374
  3,483
  3,602
  3,730
  3,868
  4,017
  4,176
  4,345
  4,526
  4,717
  4,921
  5,137
  5,365
  5,606
  5,861
  6,131
  6,415
  6,715
  7,030
  7,363
  7,714
  8,083
  8,471
  8,880
  9,310
  9,763
Total liabilities and equity, $m
  30,682
  30,357
  31,054
  31,853
  32,749
  33,742
  34,831
  36,018
  37,301
  38,684
  40,170
  41,758
  43,452
  45,257
  47,174
  49,210
  51,367
  53,649
  56,063
  58,613
  61,307
  64,149
  67,146
  70,304
  73,632
  77,138
  80,829
  84,713
  88,801
  93,102
  97,626
Debt-to-equity ratio
  8.071
  4.990
  5.080
  5.180
  5.280
  5.390
  5.510
  5.620
  5.740
  5.850
  5.970
  6.090
  6.200
  6.310
  6.420
  6.530
  6.630
  6.730
  6.830
  6.920
  7.020
  7.100
  7.190
  7.270
  7.350
  7.420
  7.490
  7.560
  7.630
  7.690
  7.750
Adjusted equity ratio
  0.037
  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
  -774
  -4,440
  -4,468
  -4,596
  -4,740
  -4,901
  -5,078
  -5,271
  -5,480
  -5,706
  -5,949
  -6,142
  -6,420
  -6,716
  -7,030
  -7,364
  -7,718
  -8,093
  -8,489
  -8,909
  -9,351
  -9,818
  -10,311
  -10,830
  -11,378
  -11,954
  -12,561
  -13,200
  -13,873
  -14,580
  -15,325
Depreciation, amort., depletion, $m
  1,458
  1,495
  1,528
  1,566
  1,608
  1,655
  1,706
  1,762
  1,822
  1,887
  1,957
  1,966
  2,045
  2,130
  2,221
  2,316
  2,418
  2,525
  2,639
  2,759
  2,886
  3,020
  3,161
  3,309
  3,466
  3,631
  3,805
  3,988
  4,180
  4,383
  4,596
Funds from operations, $m
  1,997
  -2,945
  -2,940
  -3,030
  -3,132
  -3,246
  -3,372
  -3,509
  -3,658
  -3,819
  -3,992
  -4,177
  -4,375
  -4,585
  -4,810
  -5,048
  -5,300
  -5,567
  -5,850
  -6,149
  -6,465
  -6,798
  -7,150
  -7,521
  -7,911
  -8,323
  -8,756
  -9,212
  -9,692
  -10,198
  -10,729
Change in working capital, $m
  -75
  32
  37
  43
  48
  53
  58
  64
  69
  74
  79
  85
  91
  97
  103
  109
  115
  122
  129
  137
  144
  152
  160
  169
  178
  188
  198
  208
  219
  230
  242
Cash from operations, $m
  2,072
  -2,977
  -2,977
  -3,073
  -3,180
  -3,300
  -3,430
  -3,573
  -3,727
  -3,893
  -4,071
  -4,262
  -4,465
  -4,682
  -4,912
  -5,157
  -5,416
  -5,690
  -5,980
  -6,286
  -6,609
  -6,951
  -7,310
  -7,690
  -8,090
  -8,511
  -8,954
  -9,420
  -9,911
  -10,428
  -10,971
Maintenance CAPEX, $m
  0
  -1,401
  -1,429
  -1,462
  -1,499
  -1,542
  -1,588
  -1,640
  -1,695
  -1,756
  -1,821
  -1,891
  -1,966
  -2,045
  -2,130
  -2,221
  -2,316
  -2,418
  -2,525
  -2,639
  -2,759
  -2,886
  -3,020
  -3,161
  -3,309
  -3,466
  -3,631
  -3,805
  -3,988
  -4,180
  -4,383
New CAPEX, $m
  -1,244
  -385
  -450
  -515
  -578
  -640
  -703
  -765
  -828
  -892
  -957
  -1,024
  -1,093
  -1,164
  -1,237
  -1,312
  -1,391
  -1,472
  -1,557
  -1,645
  -1,737
  -1,833
  -1,933
  -2,037
  -2,146
  -2,261
  -2,380
  -2,505
  -2,636
  -2,774
  -2,917
Cash from investing activities, $m
  -824
  -1,786
  -1,879
  -1,977
  -2,077
  -2,182
  -2,291
  -2,405
  -2,523
  -2,648
  -2,778
  -2,915
  -3,059
  -3,209
  -3,367
  -3,533
  -3,707
  -3,890
  -4,082
  -4,284
  -4,496
  -4,719
  -4,953
  -5,198
  -5,455
  -5,727
  -6,011
  -6,310
  -6,624
  -6,954
  -7,300
Free cash flow, $m
  1,248
  -4,763
  -4,856
  -5,049
  -5,258
  -5,481
  -5,721
  -5,977
  -6,250
  -6,541
  -6,850
  -7,177
  -7,524
  -7,891
  -8,279
  -8,690
  -9,123
  -9,580
  -10,062
  -10,570
  -11,105
  -11,669
  -12,263
  -12,888
  -13,546
  -14,237
  -14,965
  -15,731
  -16,535
  -17,382
  -18,271
Issuance/(repayment) of debt, $m
  -386
  -804
  628
  718
  806
  894
  980
  1,068
  1,156
  1,245
  1,336
  1,429
  1,525
  1,624
  1,726
  1,831
  1,941
  2,054
  2,173
  2,296
  2,424
  2,558
  2,697
  2,843
  2,995
  3,155
  3,322
  3,496
  3,679
  3,871
  4,071
Issuance/(repurchase) of shares, $m
  -225
  5,857
  4,538
  4,676
  4,830
  5,000
  5,187
  5,389
  5,609
  5,844
  6,097
  6,301
  6,589
  6,896
  7,222
  7,568
  7,934
  8,321
  8,731
  9,164
  9,620
  10,102
  10,611
  11,146
  11,710
  12,305
  12,930
  13,589
  14,282
  15,010
  15,777
Cash from financing (excl. dividends), $m  
  -718
  5,053
  5,166
  5,394
  5,636
  5,894
  6,167
  6,457
  6,765
  7,089
  7,433
  7,730
  8,114
  8,520
  8,948
  9,399
  9,875
  10,375
  10,904
  11,460
  12,044
  12,660
  13,308
  13,989
  14,705
  15,460
  16,252
  17,085
  17,961
  18,881
  19,848
Total cash flow (excl. dividends), $m
  531
  290
  310
  344
  379
  412
  446
  480
  514
  548
  584
  554
  591
  629
  669
  709
  752
  796
  842
  889
  939
  991
  1,045
  1,101
  1,160
  1,222
  1,287
  1,354
  1,425
  1,499
  1,577
Retained Cash Flow (-), $m
  968
  -5,857
  -4,538
  -4,676
  -4,830
  -5,000
  -5,187
  -5,389
  -5,609
  -5,844
  -6,097
  -6,301
  -6,589
  -6,896
  -7,222
  -7,568
  -7,934
  -8,321
  -8,731
  -9,164
  -9,620
  -10,102
  -10,611
  -11,146
  -11,710
  -12,305
  -12,930
  -13,589
  -14,282
  -15,010
  -15,777
Prev. year cash balance distribution, $m
 
  422
  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
 
  -5,145
  -4,228
  -4,331
  -4,451
  -4,588
  -4,741
  -4,910
  -5,095
  -5,296
  -5,513
  -5,748
  -5,999
  -6,267
  -6,553
  -6,858
  -7,182
  -7,525
  -7,889
  -8,274
  -8,681
  -9,112
  -9,566
  -10,045
  -10,550
  -11,083
  -11,644
  -12,234
  -12,856
  -13,511
  -14,200
Discount rate, %
 
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.10
  33.71
  35.40
  37.17
  39.02
  40.97
  43.02
  45.17
  47.43
  49.81
PV of cash for distribution, $m
 
  -4,589
  -3,329
  -2,975
  -2,635
  -2,310
  -2,003
  -1,715
  -1,448
  -1,205
  -987
  -794
  -628
  -486
  -369
  -274
  -198
  -140
  -96
  -64
  -42
  -26
  -16
  -9
  -5
  -3
  -2
  -1
  0
  0
  0
Current shareholders' claim on cash, %
  100
  53.2
  39.0
  28.5
  20.8
  15.2
  11.0
  8.0
  5.8
  4.2
  3.0
  2.2
  1.6
  1.1
  0.8
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

NRG Energy, Inc. (NRG) is an integrated power company. The Company is engaged in producing, selling and delivering electricity and related products and services in various markets in the United States. The Company's segments include Generation, Retail, Renewables, NRG Yield, Inc. (NRG Yield) and Corporate activities. The Generation segment includes generation, international and Boston Energy Trading and Marketing LLC (BETM). The Retail segment includes Mass customers and Business Solutions. Its Business Solutions include commercial, industrial and governmental/institutional (C&I) customers, and other distributed and reliability products. The Renewables segment includes solar and wind assets. The NRG Yield segment includes certain of the Company's contracted generation assets. The corporate activities segment includes residential solar and electric vehicle services. The Company owned and operated approximately 47,000 megawatts (MW) of generation, as of December 31, 2016.

FINANCIAL RATIOS  of  NRG Energy (NRG)

Valuation Ratios
P/E Ratio -11
Price to Sales 0.7
Price to Book 4.2
Price to Tangible Book
Price to Cash Flow 4.1
Price to Free Cash Flow 10.2
Growth Rates
Sales Growth Rate -15.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -3%
Cap. Spend. - 3 Yr. Gr. Rate -8.9%
Financial Strength
Quick Ratio 2
Current Ratio 0.8
LT Debt to Equity 781.8%
Total Debt to Equity 807.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 1.1%
Ret/ On Assets - 3 Yr. Avg. -3%
Return On Total Capital -3.8%
Ret/ On T. Cap. - 3 Yr. Avg. -9.2%
Return On Equity -30.7%
Return On Equity - 3 Yr. Avg. -42.3%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 30.7%
Gross Margin - 3 Yr. Avg. 27.7%
EBITDA Margin 13.7%
EBITDA Margin - 3 Yr. Avg. 5.2%
Operating Margin 0.9%
Oper. Margin - 3 Yr. Avg. -6.3%
Pre-Tax Margin -7.1%
Pre-Tax Margin - 3 Yr. Avg. -13.6%
Net Profit Margin -6.3%
Net Profit Margin - 3 Yr. Avg. -16.3%
Effective Tax Rate -1.8%
Eff/ Tax Rate - 3 Yr. Avg. -8.7%
Payout Ratio -9.8%

NRG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NRG stock intrinsic value calculation we used $12351 million for the last fiscal year's total revenue generated by NRG Energy. The default revenue input number comes from 2016 income statement of NRG 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 NRG 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 12.1%, whose default value for NRG is calculated based on our internal credit rating of NRG 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 NRG 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 NRG stock the variable cost ratio is equal to 127.4%.

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 NRG 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 6.2% for NRG Energy.

Corporate tax rate of 27% is the nominal tax rate for NRG 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 NRG 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 NRG are equal to 155.4%.

Life of production assets of 13.7 years is the average useful life of capital assets used in NRG 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 NRG is equal to 12.9%. 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 - $2041 million for NRG 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 311.447 million for NRG 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 NRG Energy at the current share price and the inputted number of shares is $8.4 billion.

RELATED COMPANIES Price Int.Val. Rating
SRE Sempra Energy 105.99 24.16  str.sell
SPKE Spark Energy 11.40 386.86  str.buy
AT Atlantic Power 2.40 0.53  str.sell
EIX Edison Interna 62.12 52.70  hold
PCG PG&E 44.39 38.79  hold
ALE Allete 71.98 28.43  str.sell
CPN Calpine 15.12 2.13  str.sell

COMPANY NEWS

▶ Analysts Views on NRG Energy Stock Changed Recently   [Jan-19-18 03:25PM  Market Realist]
▶ Whats NRG Energys Current Valuation?   [01:55PM  Market Realist]
▶ Where NRG Energy Stock Might Go from Here   [12:24PM  Market Realist]
▶ What Utilities Recent Implied Volatility Trends Suggest   [Jan-18-18 09:02AM  Market Realist]
▶ What Were David Teppers Top Buys in 3Q17?   [Jan-09-18 11:10AM  Market Realist]
▶ Cramer: 2017 Was a Year of Resurrection and Revival   [Jan-04-18 07:01PM  TheStreet.com]
▶ These 4 S&P 500 Stocks Doubled in 2017   [Jan-02-18 08:13AM  Motley Fool]
▶ FirstEnergy Returns to Its Regulated Past   [07:00AM  Morningstar]
▶ Analyzing NRG Energys Valuation, Price Targets, and More   [Dec-27-17 07:31AM  Market Realist]
▶ 10 Top S&P 500 Stocks in 2017   [10:52AM  InvestorPlace]
▶ After the Fed increases rates   [Dec-13-17 12:52PM  CNBC Videos]
▶ [$$] GenOn Working on Settlement to Ease Chapter 11 Plan Approval   [Dec-11-17 04:56PM  The Wall Street Journal]
▶ Top 4 Alternative Energy Stocks as of December 2017   [Dec-07-17 10:10AM  Investopedia]
▶ NRG Energy, Inc. Prices Senior Notes Offering   [Nov-30-17 12:59PM  Business Wire]
▶ Sacramento International Airport's $15.2 million solar array nearly complete   [Nov-28-17 05:15PM  American City Business Journals]
▶ Breaking down 2017's most extended stocks   [Nov-21-17 02:32PM  CNBC Videos]
▶ Analyzing NRG Energy, a Low Dividend Grower   [10:30AM  Market Realist]
▶ NRG Energy Stock Continues Its Rally   [07:32AM  Market Realist]
▶ These S&P 500 Utilities Stocks Offer a Decent Potential Gain   [Nov-17-17 11:07AM  Market Realist]
▶ [$$] Declines in Stocks, Junk Bonds Reveal Cracks in Global Rally   [Nov-13-17 12:18AM  The Wall Street Journal]
▶ [$$] US junk worries prompt energy company to pull sale   [Nov-10-17 06:16PM  Financial Times]
▶ Analyzing SCANAs Implied Volatility   [01:15PM  Market Realist]
▶ NRG Energy reportedly seeking $350M for SunEdison projects   [12:40PM  American City Business Journals]
▶ NRG Energy seeks $350M in financing to build solar farms in Hawaii   [Nov-08-17 08:05PM  American City Business Journals]
▶ What Happened in Utilities Last Week?   [Nov-06-17 01:26PM  Market Realist]
▶ [$$] Ruling Expected Next Week in GenOn Dispute With Power Plant Owners   [Nov-03-17 04:48PM  The Wall Street Journal]
▶ Where NRG Energy Stock Might Go from Here   [10:50AM  Market Realist]
▶ Why NRG Energy Missed 3Q17 Earnings Estimates   [09:16AM  Market Realist]
▶ Whats Southern Companys Implied Volatility?   [09:02AM  Market Realist]
▶ What SCANAs Rising Implied Volatility Could Mean   [Nov-02-17 10:32AM  Market Realist]
▶ NRG Yield misses Street 3Q forecasts   [10:11AM  Associated Press]
▶ NRG misses 3Q profit forecasts   [07:25AM  Associated Press]
▶ Is It Time To Buy NRG Energy Inc (NRG)?   [Oct-27-17 10:41AM  Simply Wall St.]
▶ What Analysts Predict for NRG Energy   [09:04AM  Market Realist]
▶ Analyzing NRG Energys Chart Indicators and Short Interest   [Oct-26-17 05:16PM  Market Realist]
▶ Will NRG Energy Beat Analysts 3Q17 Estimates?   [03:39PM  Market Realist]
▶ NRG Energy, Inc. Announces Quarterly Dividend   [Oct-18-17 07:18AM  Business Wire]
▶ Whats behind PG&Es Recent Implied Volatility Surge?   [Oct-17-17 10:39AM  Market Realist]
▶ S&P 500 Utilities: Recent Ratings Changes   [09:10AM  Market Realist]
▶ What Steam Is Left in the Top-Rallying S&P 500 Utilities?   [Oct-12-17 10:38AM  Market Realist]
▶ What Led the Rally among the Top Utility Gainers This Year?   [Oct-11-17 05:06PM  Market Realist]
▶ Is The War On Coal Really Over?   [03:00PM  Oilprice.com]
▶ See the 10 largest blocks of sublease office space available in Houston   [01:05PM  American City Business Journals]
▶ Why NRG Energy Stock Continues to Look Strong   [Oct-10-17 02:36PM  Market Realist]
▶ Analyzing NRG Energys Alarming Credit Profile   [01:06PM  Market Realist]
Financial statements of NRG
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.