Intrinsic value of Pembina Pipeline - PBA

Previous Close

$33.49

  Intrinsic Value

$3.54

stock screener

  Rating & Target

str. sell

-89%

Previous close

$33.49

 
Intrinsic value

$3.54

 
Up/down potential

-89%

 
Rating

str. sell

We calculate the intrinsic value of PBA 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 0001), $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 16.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  33.90
  31.01
  28.41
  26.07
  23.96
  22.07
  20.36
  18.82
  17.44
  16.20
  15.08
  14.07
  13.16
  12.35
  11.61
  10.95
  10.36
  9.82
  9.34
  8.90
  8.51
  8.16
  7.85
  7.56
  7.31
  7.07
  6.87
  6.68
  6.51
  6.36
Revenue, $m
  5,688
  7,452
  9,569
  12,064
  14,955
  18,255
  21,971
  26,107
  30,660
  35,625
  40,997
  46,764
  52,920
  59,453
  66,356
  73,623
  81,246
  89,225
  97,556
  106,242
  115,288
  124,698
  134,481
  144,650
  155,217
  166,198
  177,611
  189,477
  201,816
  214,654
Variable operating expenses, $m
  4,038
  5,176
  6,541
  8,150
  10,014
  12,141
  14,538
  17,205
  20,141
  23,343
  26,436
  30,155
  34,124
  38,337
  42,789
  47,474
  52,390
  57,535
  62,907
  68,509
  74,341
  80,409
  86,718
  93,275
  100,089
  107,170
  114,530
  122,181
  130,138
  138,416
Fixed operating expenses, $m
  262
  267
  273
  279
  285
  292
  298
  305
  311
  318
  325
  332
  340
  347
  355
  363
  371
  379
  387
  396
  404
  413
  422
  432
  441
  451
  461
  471
  481
  492
Total operating expenses, $m
  4,300
  5,443
  6,814
  8,429
  10,299
  12,433
  14,836
  17,510
  20,452
  23,661
  26,761
  30,487
  34,464
  38,684
  43,144
  47,837
  52,761
  57,914
  63,294
  68,905
  74,745
  80,822
  87,140
  93,707
  100,530
  107,621
  114,991
  122,652
  130,619
  138,908
Operating income, $m
  1,388
  2,009
  2,755
  3,635
  4,656
  5,821
  7,135
  8,597
  10,208
  11,964
  14,235
  16,277
  18,456
  20,769
  23,213
  25,786
  28,485
  31,311
  34,262
  37,338
  40,542
  43,875
  47,341
  50,943
  54,687
  58,577
  62,621
  66,825
  71,197
  75,746
EBITDA, $m
  2,249
  3,022
  3,951
  5,046
  6,316
  7,766
  9,400
  11,219
  13,222
  15,407
  17,771
  20,309
  23,019
  25,895
  28,935
  32,134
  35,492
  39,005
  42,674
  46,500
  50,484
  54,628
  58,938
  63,417
  68,072
  72,909
  77,937
  83,164
  88,601
  94,257
Interest expense (income), $m
  0
  321
  489
  696
  945
  1,238
  1,577
  1,964
  2,401
  2,886
  3,421
  4,004
  4,635
  5,312
  6,035
  6,802
  7,613
  8,466
  9,361
  10,298
  11,276
  12,296
  13,359
  14,463
  15,612
  16,806
  18,047
  19,337
  20,677
  22,070
  23,519
Earnings before tax, $m
  1,068
  1,520
  2,059
  2,691
  3,418
  4,244
  5,170
  6,196
  7,321
  8,543
  10,231
  11,642
  13,143
  14,734
  16,411
  18,173
  20,019
  21,950
  23,964
  26,062
  28,246
  30,517
  32,878
  35,331
  37,880
  40,530
  43,284
  46,148
  49,127
  52,227
Tax expense, $m
  288
  410
  556
  726
  923
  1,146
  1,396
  1,673
  1,977
  2,307
  2,762
  3,143
  3,549
  3,978
  4,431
  4,907
  5,405
  5,926
  6,470
  7,037
  7,626
  8,240
  8,877
  9,539
  10,228
  10,943
  11,687
  12,460
  13,264
  14,101
Net income, $m
  780
  1,110
  1,503
  1,964
  2,495
  3,098
  3,774
  4,523
  5,344
  6,237
  7,469
  8,499
  9,595
  10,756
  11,980
  13,266
  14,614
  16,023
  17,493
  19,025
  20,619
  22,277
  24,001
  25,792
  27,653
  29,587
  31,598
  33,688
  35,863
  38,126

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
  26,832
  35,153
  45,139
  56,906
  70,541
  86,106
  103,637
  123,144
  144,621
  168,044
  193,380
  220,587
  249,621
  280,439
  313,002
  347,277
  383,238
  420,871
  460,170
  501,144
  543,809
  588,196
  634,346
  682,311
  732,156
  783,954
  837,790
  893,758
  951,964
  1,012,521
Adjusted assets (=assets-cash), $m
  26,832
  35,153
  45,139
  56,906
  70,541
  86,106
  103,637
  123,144
  144,621
  168,044
  193,380
  220,587
  249,621
  280,439
  313,002
  347,277
  383,238
  420,871
  460,170
  501,144
  543,809
  588,196
  634,346
  682,311
  732,156
  783,954
  837,790
  893,758
  951,964
  1,012,521
Revenue / Adjusted assets
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
Average production assets, $m
  14,716
  19,279
  24,756
  31,210
  38,688
  47,225
  56,839
  67,538
  79,316
  92,163
  106,058
  120,980
  136,903
  153,805
  171,664
  190,462
  210,184
  230,824
  252,378
  274,849
  298,249
  322,593
  347,903
  374,209
  401,546
  429,955
  459,481
  490,176
  522,099
  555,311
Working capital, $m
  -193
  -253
  -325
  -410
  -508
  -621
  -747
  -888
  -1,042
  -1,211
  -1,394
  -1,590
  -1,799
  -2,021
  -2,256
  -2,503
  -2,762
  -3,034
  -3,317
  -3,612
  -3,920
  -4,240
  -4,572
  -4,918
  -5,277
  -5,651
  -6,039
  -6,442
  -6,862
  -7,298
Total debt, $m
  9,054
  12,890
  17,493
  22,918
  29,204
  36,379
  44,461
  53,454
  63,354
  74,153
  85,832
  98,375
  111,759
  125,967
  140,978
  156,779
  173,357
  190,706
  208,823
  227,712
  247,380
  267,843
  289,118
  311,230
  334,208
  358,087
  382,905
  408,707
  435,540
  463,456
Total liabilities, $m
  12,370
  16,205
  20,809
  26,234
  32,520
  39,695
  47,776
  56,769
  66,670
  77,468
  89,148
  101,691
  115,075
  129,282
  144,294
  160,094
  176,673
  194,021
  212,139
  231,027
  250,696
  271,158
  292,433
  314,545
  337,524
  361,403
  386,221
  412,023
  438,855
  466,772
Total equity, $m
  14,462
  18,947
  24,330
  30,672
  38,022
  46,411
  55,860
  66,375
  77,951
  90,576
  104,232
  118,896
  134,546
  151,157
  168,708
  187,182
  206,565
  226,849
  248,032
  270,117
  293,113
  317,038
  341,912
  367,766
  394,632
  422,551
  451,569
  481,736
  513,109
  545,749
Total liabilities and equity, $m
  26,832
  35,152
  45,139
  56,906
  70,542
  86,106
  103,636
  123,144
  144,621
  168,044
  193,380
  220,587
  249,621
  280,439
  313,002
  347,276
  383,238
  420,870
  460,171
  501,144
  543,809
  588,196
  634,345
  682,311
  732,156
  783,954
  837,790
  893,759
  951,964
  1,012,521
Debt-to-equity ratio
  0.630
  0.680
  0.720
  0.750
  0.770
  0.780
  0.800
  0.810
  0.810
  0.820
  0.820
  0.830
  0.830
  0.830
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.840
  0.850
  0.850
  0.850
  0.850
  0.850
  0.850
  0.850
  0.850
Adjusted equity ratio
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539
  0.539

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  780
  1,110
  1,503
  1,964
  2,495
  3,098
  3,774
  4,523
  5,344
  6,237
  7,469
  8,499
  9,595
  10,756
  11,980
  13,266
  14,614
  16,023
  17,493
  19,025
  20,619
  22,277
  24,001
  25,792
  27,653
  29,587
  31,598
  33,688
  35,863
  38,126
Depreciation, amort., depletion, $m
  861
  1,013
  1,196
  1,411
  1,660
  1,944
  2,265
  2,622
  3,014
  3,442
  3,535
  4,033
  4,563
  5,127
  5,722
  6,349
  7,006
  7,694
  8,413
  9,162
  9,942
  10,753
  11,597
  12,474
  13,385
  14,332
  15,316
  16,339
  17,403
  18,510
Funds from operations, $m
  1,640
  2,123
  2,699
  3,375
  4,155
  5,043
  6,039
  7,145
  8,359
  9,679
  11,004
  12,531
  14,158
  15,882
  17,702
  19,615
  21,620
  23,717
  25,906
  28,187
  30,561
  33,030
  35,597
  38,265
  41,038
  43,919
  46,914
  50,027
  53,266
  56,636
Change in working capital, $m
  -49
  -60
  -72
  -85
  -98
  -112
  -126
  -141
  -155
  -169
  -183
  -196
  -209
  -222
  -235
  -247
  -259
  -271
  -283
  -295
  -308
  -320
  -333
  -346
  -359
  -373
  -388
  -403
  -420
  -436
Cash from operations, $m
  1,689
  2,183
  2,771
  3,460
  4,253
  5,155
  6,166
  7,285
  8,513
  9,848
  11,187
  12,727
  14,367
  16,105
  17,937
  19,862
  21,880
  23,989
  26,189
  28,482
  30,868
  33,350
  35,930
  38,611
  41,397
  44,292
  47,302
  50,431
  53,686
  57,073
Maintenance CAPEX, $m
  -366
  -491
  -643
  -825
  -1,040
  -1,290
  -1,574
  -1,895
  -2,251
  -2,644
  -3,072
  -3,535
  -4,033
  -4,563
  -5,127
  -5,722
  -6,349
  -7,006
  -7,694
  -8,413
  -9,162
  -9,942
  -10,753
  -11,597
  -12,474
  -13,385
  -14,332
  -15,316
  -16,339
  -17,403
New CAPEX, $m
  -3,727
  -4,563
  -5,477
  -6,453
  -7,478
  -8,537
  -9,614
  -10,699
  -11,779
  -12,846
  -13,895
  -14,921
  -15,924
  -16,902
  -17,859
  -18,798
  -19,723
  -20,639
  -21,554
  -22,472
  -23,399
  -24,344
  -25,311
  -26,306
  -27,337
  -28,408
  -29,526
  -30,696
  -31,923
  -33,212
Cash from investing activities, $m
  -4,093
  -5,054
  -6,120
  -7,278
  -8,518
  -9,827
  -11,188
  -12,594
  -14,030
  -15,490
  -16,967
  -18,456
  -19,957
  -21,465
  -22,986
  -24,520
  -26,072
  -27,645
  -29,248
  -30,885
  -32,561
  -34,286
  -36,064
  -37,903
  -39,811
  -41,793
  -43,858
  -46,012
  -48,262
  -50,615
Free cash flow, $m
  -2,404
  -2,871
  -3,349
  -3,819
  -4,265
  -4,671
  -5,023
  -5,308
  -5,517
  -5,642
  -5,781
  -5,729
  -5,589
  -5,361
  -5,049
  -4,658
  -4,192
  -3,657
  -3,059
  -2,402
  -1,693
  -935
  -134
  708
  1,586
  2,499
  3,444
  4,419
  5,424
  6,458
Issuance/(repayment) of debt, $m
  3,118
  3,836
  4,604
  5,425
  6,286
  7,176
  8,081
  8,993
  9,901
  10,798
  11,680
  12,542
  13,385
  14,207
  15,011
  15,801
  16,578
  17,349
  18,117
  18,889
  19,669
  20,462
  21,275
  22,112
  22,978
  23,879
  24,818
  25,802
  26,833
  27,917
Issuance/(repurchase) of shares, $m
  2,851
  3,375
  3,880
  4,378
  4,854
  5,291
  5,674
  5,991
  6,232
  6,389
  6,187
  6,166
  6,055
  5,855
  5,572
  5,208
  4,769
  4,261
  3,689
  3,060
  2,377
  1,647
  874
  62
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  5,969
  7,211
  8,484
  9,803
  11,140
  12,467
  13,755
  14,984
  16,133
  17,187
  17,867
  18,708
  19,440
  20,062
  20,583
  21,009
  21,347
  21,610
  21,806
  21,949
  22,046
  22,109
  22,149
  22,174
  22,978
  23,879
  24,818
  25,802
  26,833
  27,917
Total cash flow (excl. dividends), $m
  3,565
  4,340
  5,134
  5,984
  6,875
  7,796
  8,733
  9,676
  10,616
  11,544
  12,086
  12,979
  13,851
  14,702
  15,534
  16,351
  17,155
  17,953
  18,748
  19,546
  20,353
  21,175
  22,016
  22,882
  24,565
  26,378
  28,262
  30,221
  32,257
  34,374
Retained Cash Flow (-), $m
  -3,631
  -4,485
  -5,383
  -6,342
  -7,349
  -8,390
  -9,449
  -10,514
  -11,576
  -12,625
  -13,656
  -14,665
  -15,649
  -16,611
  -17,551
  -18,474
  -19,383
  -20,284
  -21,183
  -22,085
  -22,997
  -23,925
  -24,875
  -25,853
  -26,866
  -27,919
  -29,018
  -30,167
  -31,373
  -32,640
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
  -65
  -145
  -248
  -359
  -474
  -594
  -716
  -838
  -960
  -1,081
  -1,570
  -1,686
  -1,799
  -1,909
  -2,017
  -2,123
  -2,228
  -2,332
  -2,435
  -2,538
  -2,643
  -2,750
  -2,859
  -2,972
  -2,302
  -1,541
  -755
  54
  884
  1,734
Discount rate, %
  6.40
  6.72
  7.06
  7.41
  7.78
  8.17
  8.58
  9.01
  9.46
  9.93
  10.42
  10.95
  11.49
  12.07
  12.67
  13.31
  13.97
  14.67
  15.40
  16.17
  16.98
  17.83
  18.72
  19.66
  20.64
  21.67
  22.76
  23.89
  25.09
  26.34
PV of cash for distribution, $m
  -61
  -127
  -202
  -270
  -326
  -371
  -402
  -421
  -426
  -419
  -527
  -485
  -437
  -387
  -337
  -288
  -241
  -198
  -160
  -127
  -98
  -74
  -55
  -40
  -21
  -9
  -3
  0
  1
  2
Current shareholders' claim on cash, %
  85.5
  74.4
  65.7
  58.9
  53.5
  49.1
  45.5
  42.6
  40.1
  38.1
  36.5
  35.2
  34.1
  33.1
  32.4
  31.7
  31.2
  30.8
  30.5
  30.3
  30.1
  30.0
  29.9
  29.9
  29.9
  29.9
  29.9
  29.9
  29.9
  29.9

Pembina Pipeline Corporation is an energy transportation and service provider. The Company operates through four segments. The Conventional Pipelines segment consists of the tariff-based operations of pipelines and related facilities to deliver crude oil, condensate and natural gas liquids (NGL) in Alberta, British Columbia, Saskatchewan, and North Dakota, United States. The Oil Sands & Heavy Oil segment consists of the Syncrude, Horizon, Nipisi and Mitsue Pipelines, and the Cheecham Lateral. These pipelines and related facilities deliver synthetic crude oil produced from oil sands under long-term cost-of-service arrangements. The Gas Services segment consists of natural gas gathering and processing facilities. The Midstream segment consists of the Company's interests in extraction and fractionation facilities, terminalling and storage hub services under a mixture of short, medium and long-term contractual arrangements.

FINANCIAL RATIOS  of  Pembina Pipeline (PBA)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

PBA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PBA stock intrinsic value calculation we used $4248.2325216 million for the last fiscal year's total revenue generated by Pembina Pipeline. The default revenue input number comes from 0001 income statement of Pembina Pipeline. 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 PBA stock valuation model: a) initial revenue growth rate of 33.9% 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 6.4%, whose default value for PBA is calculated based on our internal credit rating of Pembina Pipeline, 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 Pembina Pipeline.
    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 PBA stock the variable cost ratio is equal to 73.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $256 million in the base year in the intrinsic value calculation for PBA 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 Pembina Pipeline.

Corporate tax rate of 27% is the nominal tax rate for Pembina Pipeline. 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 PBA 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 PBA are equal to 258.7%.

Life of production assets of 41.5 years is the average useful life of capital assets used in Pembina Pipeline 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 PBA is equal to -3.4%. 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 - $10831.8931658 million for Pembina Pipeline - 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 503 million for Pembina Pipeline 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 Pembina Pipeline at the current share price and the inputted number of shares is $16.8 billion.

RELATED COMPANIES Price Int.Val. Rating
TRP TransCanada 38.49 19.17  str.sell
ENB Enbridge 32.63 24.98  sell
GLOP GasLog Partner 23.70 5.55  str.sell

COMPANY NEWS

▶ Pembina Pipeline: 3Q Earnings Snapshot   [05:02AM  Associated Press]
▶ Top 5 Monthly Dividend Stocks for 2018   [Oct-03-18 07:53PM  Investopedia]
▶ 6 Monthly Dividend Stocks to Buy   [Sep-14-18 11:02AM  InvestorPlace]
▶ 16 High-Yielding Monthly Dividend Payers   [Sep-07-18 12:46PM  Kiplinger]
▶ 5 Top Monthly Dividend Stocks   [Jun-22-18 03:31PM  Motley Fool]
▶ 3 Stocks That Pay You Each Month   [May-31-18 08:45AM  Motley Fool]
▶ When Should You Buy Pembina Pipeline Corporation (TSE:PPL)?   [May-09-18 06:26PM  Simply Wall St.]
▶ Value-Adding Dividend Stocks To Buy Now   [May-08-18 09:02AM  Simply Wall St.]
▶ Pembina Pipeline: 1Q Earnings Snapshot   [May-03-18 06:13PM  Associated Press]
▶ 2 Stocks That Cut You a Check Each Month   [Mar-05-18 06:03AM  Motley Fool]
▶ Portland Business Alliance steps into Jordan Cove LNG fight   [Feb-27-18 10:45AM  American City Business Journals]
▶ Pembina Pipeline beats 4Q profit forecasts   [05:03AM  Associated Press]
▶ Top Stocks in Oil   [Jan-20-18 10:32AM  Motley Fool]
▶ 3 Top Dividend Stocks to Buy in January   [Jan-09-18 06:05AM  Motley Fool]
▶ 3 Dividend Stocks Perfect for Retirees   [Dec-02-17 10:33AM  Motley Fool]
▶ Top 5 Monthly Dividend Stocks for 2017   [11:55AM  Investopedia]
▶ Pembina Pipeline Sees IBD RS Rating Improve To 71   [03:00AM  Investor's Business Daily]
▶ Top TSX Dividend Paying Companies   [08:02AM  Simply Wall St.]
▶ Pembina Pipeline misses 3Q profit forecasts   [05:39AM  Associated Press]
▶ Pembina Pipeline Corporation to Host Earnings Call   [Nov-03-17 07:50AM  ACCESSWIRE]
▶ 3 High-Yield Stocks You Haven't Thought Of   [Oct-28-17 08:20AM  Motley Fool]

CONTACT US       ASSET ALLOCATION

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

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