Intrinsic value of PBF Energy - PBF

Previous Close

$38.34

  Intrinsic Value

$280.28

stock screener

  Rating & Target

str. buy

+631%

Previous close

$38.34

 
Intrinsic value

$280.28

 
Up/down potential

+631%

 
Rating

str. buy

We calculate the intrinsic value of PBF 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 4.4

 

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, %
  48.40
  44.06
  40.15
  36.64
  33.47
  30.63
  28.06
  25.76
  23.68
  21.81
  20.13
  18.62
  17.26
  16.03
  14.93
  13.94
  13.04
  12.24
  11.51
  10.86
  10.28
  9.75
  9.27
  8.85
  8.46
  8.12
  7.80
  7.52
  7.27
  7.04
Revenue, $m
  32,331
  46,577
  65,279
  89,196
  119,054
  155,518
  199,163
  250,463
  309,779
  377,354
  453,325
  537,732
  630,530
  731,615
  840,835
  958,011
  1,082,955
  1,215,486
  1,355,439
  1,502,676
  1,657,097
  1,818,644
  1,987,303
  2,163,111
  2,346,150
  2,536,556
  2,734,512
  2,940,248
  3,154,043
  3,376,220
Variable operating expenses, $m
  31,070
  44,760
  62,733
  85,718
  114,411
  149,452
  191,395
  240,695
  297,697
  362,637
  435,646
  516,760
  605,940
  703,082
  808,042
  920,648
  1,040,720
  1,168,082
  1,302,577
  1,444,072
  1,592,471
  1,747,717
  1,909,799
  2,078,749
  2,254,650
  2,437,630
  2,627,866
  2,825,578
  3,031,035
  3,244,548
Fixed operating expenses, $m
  136
  139
  142
  145
  148
  152
  155
  158
  162
  165
  169
  173
  176
  180
  184
  188
  193
  197
  201
  206
  210
  215
  219
  224
  229
  234
  239
  245
  250
  255
Total operating expenses, $m
  31,206
  44,899
  62,875
  85,863
  114,559
  149,604
  191,550
  240,853
  297,859
  362,802
  435,815
  516,933
  606,116
  703,262
  808,226
  920,836
  1,040,913
  1,168,279
  1,302,778
  1,444,278
  1,592,681
  1,747,932
  1,910,018
  2,078,973
  2,254,879
  2,437,864
  2,628,105
  2,825,823
  3,031,285
  3,244,803
Operating income, $m
  1,125
  1,678
  2,404
  3,334
  4,495
  5,914
  7,612
  9,610
  11,920
  14,551
  17,511
  20,799
  24,414
  28,353
  32,608
  37,174
  42,043
  47,207
  52,661
  58,399
  64,417
  70,712
  77,285
  84,137
  91,271
  98,691
  106,407
  114,425
  122,758
  131,417
EBITDA, $m
  1,567
  2,315
  3,297
  4,554
  6,124
  8,042
  10,338
  13,037
  16,159
  19,715
  23,714
  28,157
  33,043
  38,364
  44,114
  50,284
  56,862
  63,840
  71,209
  78,962
  87,093
  95,599
  104,480
  113,738
  123,376
  133,402
  143,826
  154,660
  165,918
  177,618
Interest expense (income), $m
  146
  156
  354
  622
  975
  1,425
  1,987
  2,674
  3,496
  4,463
  5,580
  6,852
  8,283
  9,873
  11,621
  13,525
  15,582
  17,789
  20,142
  22,638
  25,274
  28,047
  30,956
  33,999
  37,175
  40,486
  43,934
  47,520
  51,248
  55,123
  59,150
Earnings before tax, $m
  969
  1,323
  1,782
  2,359
  3,070
  3,926
  4,938
  6,113
  7,457
  8,972
  10,658
  12,516
  14,541
  16,732
  19,083
  21,592
  24,254
  27,065
  30,023
  33,125
  36,369
  39,757
  43,287
  46,962
  50,784
  54,758
  58,887
  63,177
  67,634
  72,267
Tax expense, $m
  262
  357
  481
  637
  829
  1,060
  1,333
  1,651
  2,013
  2,422
  2,878
  3,379
  3,926
  4,518
  5,153
  5,830
  6,549
  7,308
  8,106
  8,944
  9,820
  10,734
  11,687
  12,680
  13,712
  14,785
  15,899
  17,058
  18,261
  19,512
Net income, $m
  708
  966
  1,301
  1,722
  2,241
  2,866
  3,605
  4,463
  5,444
  6,549
  7,781
  9,136
  10,615
  12,214
  13,931
  15,762
  17,705
  19,757
  21,917
  24,181
  26,550
  29,022
  31,599
  34,282
  37,073
  39,973
  42,987
  46,119
  49,373
  52,755

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
  12,046
  17,353
  24,322
  33,233
  44,357
  57,942
  74,204
  93,317
  115,417
  140,594
  168,899
  200,347
  234,922
  272,584
  313,277
  356,934
  403,486
  452,864
  505,007
  559,864
  617,398
  677,587
  740,426
  805,928
  874,124
  945,066
  1,018,820
  1,095,472
  1,175,128
  1,257,906
Adjusted assets (=assets-cash), $m
  12,046
  17,353
  24,322
  33,233
  44,357
  57,942
  74,204
  93,317
  115,417
  140,594
  168,899
  200,347
  234,922
  272,584
  313,277
  356,934
  403,486
  452,864
  505,007
  559,864
  617,398
  677,587
  740,426
  805,928
  874,124
  945,066
  1,018,820
  1,095,472
  1,175,128
  1,257,906
Revenue / Adjusted assets
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
  2.684
Average production assets, $m
  5,044
  7,266
  10,184
  13,915
  18,572
  24,261
  31,069
  39,072
  48,325
  58,867
  70,719
  83,886
  98,363
  114,132
  131,170
  149,450
  168,941
  189,616
  211,448
  234,417
  258,507
  283,708
  310,019
  337,445
  365,999
  395,703
  426,584
  458,679
  492,031
  526,690
Working capital, $m
  1,229
  1,770
  2,481
  3,389
  4,524
  5,910
  7,568
  9,518
  11,772
  14,339
  17,226
  20,434
  23,960
  27,801
  31,952
  36,404
  41,152
  46,188
  51,507
  57,102
  62,970
  69,108
  75,518
  82,198
  89,154
  96,389
  103,911
  111,729
  119,854
  128,296
Total debt, $m
  4,987
  8,766
  13,727
  20,072
  27,993
  37,665
  49,243
  62,852
  78,587
  96,513
  116,667
  139,057
  163,675
  190,490
  219,463
  250,547
  283,692
  318,849
  355,975
  395,034
  435,998
  478,852
  523,594
  570,231
  618,787
  669,297
  721,810
  776,387
  833,101
  892,040
Total liabilities, $m
  8,577
  12,356
  17,317
  23,662
  31,582
  41,255
  52,833
  66,442
  82,177
  100,103
  120,256
  142,647
  167,264
  194,080
  223,053
  254,137
  287,282
  322,439
  359,565
  398,623
  439,588
  482,442
  527,183
  573,821
  622,377
  672,887
  725,400
  779,976
  836,691
  895,629
Total equity, $m
  3,469
  4,998
  7,005
  9,571
  12,775
  16,687
  21,371
  26,875
  33,240
  40,491
  48,643
  57,700
  67,658
  78,504
  90,224
  102,797
  116,204
  130,425
  145,442
  161,241
  177,811
  195,145
  213,243
  232,107
  251,748
  272,179
  293,420
  315,496
  338,437
  362,277
Total liabilities and equity, $m
  12,046
  17,354
  24,322
  33,233
  44,357
  57,942
  74,204
  93,317
  115,417
  140,594
  168,899
  200,347
  234,922
  272,584
  313,277
  356,934
  403,486
  452,864
  505,007
  559,864
  617,399
  677,587
  740,426
  805,928
  874,125
  945,066
  1,018,820
  1,095,472
  1,175,128
  1,257,906
Debt-to-equity ratio
  1.440
  1.750
  1.960
  2.100
  2.190
  2.260
  2.300
  2.340
  2.360
  2.380
  2.400
  2.410
  2.420
  2.430
  2.430
  2.440
  2.440
  2.440
  2.450
  2.450
  2.450
  2.450
  2.460
  2.460
  2.460
  2.460
  2.460
  2.460
  2.460
  2.460
Adjusted equity ratio
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288
  0.288

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  708
  966
  1,301
  1,722
  2,241
  2,866
  3,605
  4,463
  5,444
  6,549
  7,781
  9,136
  10,615
  12,214
  13,931
  15,762
  17,705
  19,757
  21,917
  24,181
  26,550
  29,022
  31,599
  34,282
  37,073
  39,973
  42,987
  46,119
  49,373
  52,755
Depreciation, amort., depletion, $m
  442
  637
  893
  1,221
  1,629
  2,128
  2,725
  3,427
  4,239
  5,164
  6,203
  7,358
  8,628
  10,012
  11,506
  13,110
  14,819
  16,633
  18,548
  20,563
  22,676
  24,887
  27,195
  29,600
  32,105
  34,711
  37,420
  40,235
  43,161
  46,201
Funds from operations, $m
  1,150
  1,604
  2,194
  2,943
  3,870
  4,994
  6,330
  7,890
  9,683
  11,713
  13,984
  16,495
  19,243
  22,226
  25,437
  28,872
  32,525
  36,390
  40,465
  44,744
  49,226
  53,909
  58,794
  63,883
  69,178
  74,684
  80,407
  86,354
  92,534
  98,956
Change in working capital, $m
  401
  541
  711
  909
  1,135
  1,386
  1,659
  1,949
  2,254
  2,568
  2,887
  3,207
  3,526
  3,841
  4,150
  4,453
  4,748
  5,036
  5,318
  5,595
  5,868
  6,139
  6,409
  6,681
  6,955
  7,235
  7,522
  7,818
  8,124
  8,443
Cash from operations, $m
  749
  1,062
  1,483
  2,034
  2,735
  3,609
  4,672
  5,941
  7,429
  9,145
  11,097
  13,287
  15,717
  18,385
  21,287
  24,419
  27,777
  31,354
  35,146
  39,149
  43,358
  47,770
  52,385
  57,202
  62,222
  67,448
  72,884
  78,536
  84,409
  90,513
Maintenance CAPEX, $m
  -299
  -442
  -637
  -893
  -1,221
  -1,629
  -2,128
  -2,725
  -3,427
  -4,239
  -5,164
  -6,203
  -7,358
  -8,628
  -10,012
  -11,506
  -13,110
  -14,819
  -16,633
  -18,548
  -20,563
  -22,676
  -24,887
  -27,195
  -29,600
  -32,105
  -34,711
  -37,420
  -40,235
  -43,161
New CAPEX, $m
  -1,640
  -2,222
  -2,918
  -3,731
  -4,658
  -5,688
  -6,809
  -8,003
  -9,253
  -10,542
  -11,852
  -13,167
  -14,477
  -15,769
  -17,038
  -18,279
  -19,491
  -20,675
  -21,833
  -22,969
  -24,090
  -25,201
  -26,311
  -27,426
  -28,554
  -29,703
  -30,881
  -32,095
  -33,352
  -34,660
Cash from investing activities, $m
  -1,939
  -2,664
  -3,555
  -4,624
  -5,879
  -7,317
  -8,937
  -10,728
  -12,680
  -14,781
  -17,016
  -19,370
  -21,835
  -24,397
  -27,050
  -29,785
  -32,601
  -35,494
  -38,466
  -41,517
  -44,653
  -47,877
  -51,198
  -54,621
  -58,154
  -61,808
  -65,592
  -69,515
  -73,587
  -77,821
Free cash flow, $m
  -1,189
  -1,602
  -2,072
  -2,591
  -3,143
  -3,709
  -4,265
  -4,787
  -5,252
  -5,635
  -5,918
  -6,083
  -6,118
  -6,013
  -5,763
  -5,366
  -4,824
  -4,140
  -3,319
  -2,368
  -1,295
  -107
  1,188
  2,581
  4,068
  5,640
  7,293
  9,021
  10,822
  12,693
Issuance/(repayment) of debt, $m
  2,795
  3,779
  4,961
  6,345
  7,921
  9,673
  11,578
  13,609
  15,735
  17,926
  20,153
  22,391
  24,617
  26,815
  28,973
  31,084
  33,145
  35,157
  37,126
  39,058
  40,964
  42,854
  44,741
  46,637
  48,556
  50,510
  52,513
  54,577
  56,715
  58,938
Issuance/(repurchase) of shares, $m
  425
  562
  706
  844
  963
  1,046
  1,078
  1,042
  921
  702
  371
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,220
  4,341
  5,667
  7,189
  8,884
  10,719
  12,656
  14,651
  16,656
  18,628
  20,524
  22,391
  24,617
  26,815
  28,973
  31,084
  33,145
  35,157
  37,126
  39,058
  40,964
  42,854
  44,741
  46,637
  48,556
  50,510
  52,513
  54,577
  56,715
  58,938
Total cash flow (excl. dividends), $m
  2,031
  2,739
  3,596
  4,598
  5,741
  7,010
  8,391
  9,863
  11,404
  12,992
  14,606
  16,307
  18,499
  20,802
  23,210
  25,718
  28,321
  31,017
  33,807
  36,690
  39,669
  42,747
  45,929
  49,219
  52,624
  56,150
  59,805
  63,598
  67,537
  71,631
Retained Cash Flow (-), $m
  -1,133
  -1,529
  -2,007
  -2,566
  -3,204
  -3,913
  -4,683
  -5,505
  -6,365
  -7,251
  -8,152
  -9,057
  -9,958
  -10,847
  -11,720
  -12,573
  -13,407
  -14,221
  -15,017
  -15,799
  -16,570
  -17,334
  -18,098
  -18,865
  -19,641
  -20,431
  -21,241
  -22,076
  -22,941
  -23,840
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
  899
  1,210
  1,589
  2,032
  2,537
  3,098
  3,708
  4,358
  5,039
  5,741
  6,455
  7,250
  8,542
  9,956
  11,491
  13,144
  14,914
  16,796
  18,790
  20,891
  23,099
  25,413
  27,831
  30,354
  32,983
  35,719
  38,564
  41,522
  44,596
  47,791
Discount rate, %
  5.20
  5.46
  5.73
  6.02
  6.32
  6.64
  6.97
  7.32
  7.68
  8.07
  8.47
  8.89
  9.34
  9.81
  10.30
  10.81
  11.35
  11.92
  12.51
  13.14
  13.80
  14.49
  15.21
  15.97
  16.77
  17.61
  18.49
  19.41
  20.38
  21.40
PV of cash for distribution, $m
  854
  1,088
  1,344
  1,608
  1,867
  2,107
  2,314
  2,477
  2,589
  2,643
  2,639
  2,608
  2,676
  2,687
  2,642
  2,544
  2,398
  2,213
  2,000
  1,769
  1,531
  1,295
  1,072
  866
  684
  527
  395
  289
  205
  142
Current shareholders' claim on cash, %
  91.1
  83.8
  78.0
  73.2
  69.5
  66.6
  64.3
  62.7
  61.6
  60.9
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6
  60.6

PBF Energy Inc. (PBF Energy) is a holding company. The Company is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company operates through two segments: Refining and Logistics. It sells its products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United States and Canada, and ships products to other international destinations. As of December 31, 2016, it owned and operated five domestic oil refineries and related assets. As of December 31, 2016, its refineries had a combined processing capacity, known as throughput, of approximately 900,000 barrels per day (bpd) and a weighted-average Nelson Complexity Index of approximately 12.2. As of December 31, 2016, the Company owned and operated five refineries providing geographic and market diversity.

FINANCIAL RATIOS  of  PBF Energy (PBF)

Valuation Ratios
P/E Ratio 24.5
Price to Sales 0.3
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 6.4
Price to Free Cash Flow 37.4
Growth Rates
Sales Growth Rate 21.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 29.8%
Cap. Spend. - 3 Yr. Gr. Rate 5.4%
Financial Strength
Quick Ratio 20
Current Ratio 0
LT Debt to Equity 104.1%
Total Debt to Equity 106.1%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.8%
Ret/ On Assets - 3 Yr. Avg. 3.2%
Return On Total Capital 4.5%
Ret/ On T. Cap. - 3 Yr. Avg. 2.5%
Return On Equity 9.3%
Return On Equity - 3 Yr. Avg. 5.1%
Asset Turnover 2.3
Profitability Ratios
Gross Margin 14.9%
Gross Margin - 3 Yr. Avg. 11.1%
EBITDA Margin 4.7%
EBITDA Margin - 3 Yr. Avg. 3.6%
Operating Margin 3.1%
Oper. Margin - 3 Yr. Avg. 2.2%
Pre-Tax Margin 2.3%
Pre-Tax Margin - 3 Yr. Avg. 1.6%
Net Profit Margin 1.1%
Net Profit Margin - 3 Yr. Avg. 0.7%
Effective Tax Rate 37.7%
Eff/ Tax Rate - 3 Yr. Avg. 9.7%
Payout Ratio 68.4%

PBF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the PBF stock intrinsic value calculation we used $21786.637 million for the last fiscal year's total revenue generated by PBF Energy. The default revenue input number comes from 0001 income statement of PBF 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 PBF stock valuation model: a) initial revenue growth rate of 48.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.2%, whose default value for PBF is calculated based on our internal credit rating of PBF 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 PBF 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 PBF stock the variable cost ratio is equal to 96.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $133 million in the base year in the intrinsic value calculation for PBF 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 7.1% for PBF Energy.

Corporate tax rate of 27% is the nominal tax rate for PBF 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 PBF 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 PBF are equal to 15.6%.

Life of production assets of 11.4 years is the average useful life of capital assets used in PBF 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 PBF is equal to 3.8%. 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 - $2336.654 million for PBF 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 113.831 million for PBF 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 PBF Energy at the current share price and the inputted number of shares is $4.4 billion.

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COMPANY NEWS

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