Intrinsic value of Sempra Energy - SRE

Previous Close

$118.87

  Intrinsic Value

$27.61

stock screener

  Rating & Target

str. sell

-77%

Previous close

$118.87

 
Intrinsic value

$27.61

 
Up/down potential

-77%

 
Rating

str. sell

We calculate the intrinsic value of SRE 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 32.5

 

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, %
  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
  11,431
  11,694
  11,995
  12,332
  12,706
  13,116
  13,563
  14,046
  14,567
  15,126
  15,724
  16,363
  17,042
  17,764
  18,530
  19,343
  20,202
  21,111
  22,072
  23,086
  24,156
  25,284
  26,474
  27,727
  29,047
  30,437
  31,900
  33,439
  35,059
  36,762
Variable operating expenses, $m
  4,063
  4,150
  4,249
  4,360
  4,483
  4,618
  4,765
  4,925
  5,096
  5,280
  5,178
  5,388
  5,612
  5,850
  6,102
  6,369
  6,652
  6,952
  7,268
  7,602
  7,954
  8,326
  8,718
  9,130
  9,565
  10,023
  10,504
  11,011
  11,545
  12,106
Fixed operating expenses, $m
  5,171
  5,285
  5,401
  5,520
  5,642
  5,766
  5,893
  6,022
  6,155
  6,290
  6,429
  6,570
  6,714
  6,862
  7,013
  7,167
  7,325
  7,486
  7,651
  7,819
  7,991
  8,167
  8,347
  8,530
  8,718
  8,910
  9,106
  9,306
  9,511
  9,720
Total operating expenses, $m
  9,234
  9,435
  9,650
  9,880
  10,125
  10,384
  10,658
  10,947
  11,251
  11,570
  11,607
  11,958
  12,326
  12,712
  13,115
  13,536
  13,977
  14,438
  14,919
  15,421
  15,945
  16,493
  17,065
  17,660
  18,283
  18,933
  19,610
  20,317
  21,056
  21,826
Operating income, $m
  2,196
  2,259
  2,344
  2,452
  2,581
  2,732
  2,905
  3,099
  3,316
  3,556
  4,118
  4,405
  4,716
  5,052
  5,415
  5,806
  6,225
  6,673
  7,153
  7,664
  8,210
  8,791
  9,409
  10,066
  10,764
  11,504
  12,290
  13,122
  14,003
  14,936
EBITDA, $m
  3,955
  4,051
  4,175
  4,325
  4,502
  4,706
  4,936
  5,192
  5,475
  5,786
  6,125
  6,494
  6,891
  7,320
  7,781
  8,275
  8,804
  9,368
  9,970
  10,612
  11,294
  12,019
  12,789
  13,606
  14,472
  15,390
  16,362
  17,391
  18,479
  19,630
Interest expense (income), $m
  532
  1,048
  1,091
  1,138
  1,193
  1,255
  1,323
  1,398
  1,479
  1,567
  1,662
  1,764
  1,873
  1,989
  2,113
  2,244
  2,384
  2,532
  2,689
  2,854
  3,029
  3,214
  3,409
  3,614
  3,831
  4,060
  4,300
  4,553
  4,820
  5,100
  5,395
Earnings before tax, $m
  1,148
  1,168
  1,206
  1,258
  1,326
  1,409
  1,507
  1,621
  1,749
  1,894
  2,354
  2,532
  2,727
  2,940
  3,171
  3,422
  3,693
  3,985
  4,298
  4,635
  4,996
  5,382
  5,795
  6,235
  6,705
  7,204
  7,736
  8,302
  8,903
  9,541
Tax expense, $m
  310
  315
  326
  340
  358
  380
  407
  438
  472
  511
  636
  684
  736
  794
  856
  924
  997
  1,076
  1,161
  1,252
  1,349
  1,453
  1,565
  1,684
  1,810
  1,945
  2,089
  2,242
  2,404
  2,576
Net income, $m
  838
  853
  880
  919
  968
  1,029
  1,100
  1,183
  1,277
  1,383
  1,719
  1,848
  1,991
  2,146
  2,315
  2,498
  2,696
  2,909
  3,138
  3,384
  3,647
  3,929
  4,230
  4,552
  4,894
  5,259
  5,648
  6,060
  6,499
  6,965

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
  51,492
  52,676
  54,030
  55,550
  57,234
  59,081
  61,094
  63,272
  65,618
  68,136
  70,830
  73,705
  76,766
  80,019
  83,471
  87,129
  91,001
  95,095
  99,422
  103,990
  108,810
  113,894
  119,252
  124,897
  130,843
  137,104
  143,693
  150,627
  157,922
  165,595
Adjusted assets (=assets-cash), $m
  51,492
  52,676
  54,030
  55,550
  57,234
  59,081
  61,094
  63,272
  65,618
  68,136
  70,830
  73,705
  76,766
  80,019
  83,471
  87,129
  91,001
  95,095
  99,422
  103,990
  108,810
  113,894
  119,252
  124,897
  130,843
  137,104
  143,693
  150,627
  157,922
  165,595
Revenue / Adjusted assets
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
  0.222
Average production assets, $m
  36,923
  37,772
  38,743
  39,832
  41,040
  42,365
  43,808
  45,370
  47,052
  48,858
  50,790
  52,851
  55,046
  57,378
  59,853
  62,476
  65,253
  68,189
  71,292
  74,567
  78,024
  81,669
  85,511
  89,559
  93,823
  98,312
  103,037
  108,009
  113,240
  118,742
Working capital, $m
  -709
  -725
  -744
  -765
  -788
  -813
  -841
  -871
  -903
  -938
  -975
  -1,014
  -1,057
  -1,101
  -1,149
  -1,199
  -1,253
  -1,309
  -1,368
  -1,431
  -1,498
  -1,568
  -1,641
  -1,719
  -1,801
  -1,887
  -1,978
  -2,073
  -2,174
  -2,279
Total debt, $m
  20,195
  21,082
  22,096
  23,235
  24,496
  25,880
  27,387
  29,018
  30,776
  32,662
  34,680
  36,833
  39,126
  41,562
  44,147
  46,887
  49,787
  52,854
  56,095
  59,517
  63,127
  66,934
  70,948
  75,176
  79,630
  84,319
  89,254
  94,448
  99,912
  105,659
Total liabilities, $m
  38,567
  39,454
  40,468
  41,607
  42,868
  44,252
  45,759
  47,390
  49,148
  51,034
  53,052
  55,205
  57,498
  59,934
  62,519
  65,259
  68,159
  71,226
  74,467
  77,889
  81,499
  85,306
  89,320
  93,548
  98,002
  102,691
  107,626
  112,820
  118,284
  124,031
Total equity, $m
  12,924
  13,222
  13,561
  13,943
  14,366
  14,829
  15,334
  15,881
  16,470
  17,102
  17,778
  18,500
  19,268
  20,085
  20,951
  21,869
  22,841
  23,869
  24,955
  26,102
  27,311
  28,587
  29,932
  31,349
  32,842
  34,413
  36,067
  37,807
  39,638
  41,564
Total liabilities and equity, $m
  51,491
  52,676
  54,029
  55,550
  57,234
  59,081
  61,093
  63,271
  65,618
  68,136
  70,830
  73,705
  76,766
  80,019
  83,470
  87,128
  91,000
  95,095
  99,422
  103,991
  108,810
  113,893
  119,252
  124,897
  130,844
  137,104
  143,693
  150,627
  157,922
  165,595
Debt-to-equity ratio
  1.560
  1.590
  1.630
  1.670
  1.710
  1.750
  1.790
  1.830
  1.870
  1.910
  1.950
  1.990
  2.030
  2.070
  2.110
  2.140
  2.180
  2.210
  2.250
  2.280
  2.310
  2.340
  2.370
  2.400
  2.420
  2.450
  2.470
  2.500
  2.520
  2.540
Adjusted equity ratio
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251
  0.251

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  838
  853
  880
  919
  968
  1,029
  1,100
  1,183
  1,277
  1,383
  1,719
  1,848
  1,991
  2,146
  2,315
  2,498
  2,696
  2,909
  3,138
  3,384
  3,647
  3,929
  4,230
  4,552
  4,894
  5,259
  5,648
  6,060
  6,499
  6,965
Depreciation, amort., depletion, $m
  1,759
  1,792
  1,831
  1,874
  1,921
  1,974
  2,031
  2,093
  2,159
  2,230
  2,007
  2,089
  2,176
  2,268
  2,366
  2,469
  2,579
  2,695
  2,818
  2,947
  3,084
  3,228
  3,380
  3,540
  3,708
  3,886
  4,073
  4,269
  4,476
  4,693
Funds from operations, $m
  2,597
  2,645
  2,711
  2,792
  2,890
  3,003
  3,131
  3,276
  3,436
  3,613
  3,726
  3,937
  4,166
  4,414
  4,681
  4,967
  5,275
  5,604
  5,956
  6,331
  6,731
  7,157
  7,610
  8,092
  8,603
  9,145
  9,720
  10,330
  10,975
  11,658
Change in working capital, $m
  -14
  -16
  -19
  -21
  -23
  -25
  -28
  -30
  -32
  -35
  -37
  -40
  -42
  -45
  -48
  -50
  -53
  -56
  -60
  -63
  -66
  -70
  -74
  -78
  -82
  -86
  -91
  -95
  -100
  -106
Cash from operations, $m
  2,611
  2,661
  2,729
  2,813
  2,913
  3,028
  3,159
  3,306
  3,468
  3,648
  3,763
  3,977
  4,208
  4,459
  4,728
  5,018
  5,328
  5,660
  6,015
  6,394
  6,798
  7,227
  7,684
  8,169
  8,685
  9,231
  9,811
  10,425
  11,075
  11,764
Maintenance CAPEX, $m
  -1,431
  -1,459
  -1,493
  -1,531
  -1,574
  -1,622
  -1,675
  -1,732
  -1,793
  -1,860
  -1,931
  -2,007
  -2,089
  -2,176
  -2,268
  -2,366
  -2,469
  -2,579
  -2,695
  -2,818
  -2,947
  -3,084
  -3,228
  -3,380
  -3,540
  -3,708
  -3,886
  -4,073
  -4,269
  -4,476
New CAPEX, $m
  -729
  -849
  -971
  -1,090
  -1,208
  -1,325
  -1,443
  -1,562
  -1,683
  -1,806
  -1,932
  -2,061
  -2,195
  -2,333
  -2,475
  -2,623
  -2,777
  -2,936
  -3,102
  -3,276
  -3,456
  -3,645
  -3,842
  -4,048
  -4,264
  -4,489
  -4,725
  -4,972
  -5,231
  -5,502
Cash from investing activities, $m
  -2,160
  -2,308
  -2,464
  -2,621
  -2,782
  -2,947
  -3,118
  -3,294
  -3,476
  -3,666
  -3,863
  -4,068
  -4,284
  -4,509
  -4,743
  -4,989
  -5,246
  -5,515
  -5,797
  -6,094
  -6,403
  -6,729
  -7,070
  -7,428
  -7,804
  -8,197
  -8,611
  -9,045
  -9,500
  -9,978
Free cash flow, $m
  451
  353
  266
  192
  131
  81
  41
  12
  -7
  -18
  -100
  -92
  -75
  -50
  -15
  29
  82
  145
  218
  301
  394
  498
  614
  741
  881
  1,034
  1,200
  1,380
  1,575
  1,786
Issuance/(repayment) of debt, $m
  783
  887
  1,014
  1,138
  1,261
  1,384
  1,507
  1,631
  1,758
  1,886
  2,018
  2,153
  2,293
  2,436
  2,585
  2,740
  2,900
  3,067
  3,241
  3,422
  3,610
  3,807
  4,013
  4,228
  4,454
  4,689
  4,935
  5,194
  5,464
  5,747
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  783
  887
  1,014
  1,138
  1,261
  1,384
  1,507
  1,631
  1,758
  1,886
  2,018
  2,153
  2,293
  2,436
  2,585
  2,740
  2,900
  3,067
  3,241
  3,422
  3,610
  3,807
  4,013
  4,228
  4,454
  4,689
  4,935
  5,194
  5,464
  5,747
Total cash flow (excl. dividends), $m
  1,234
  1,240
  1,280
  1,331
  1,392
  1,465
  1,549
  1,644
  1,750
  1,868
  1,918
  2,061
  2,217
  2,387
  2,570
  2,769
  2,982
  3,212
  3,458
  3,722
  4,004
  4,306
  4,627
  4,970
  5,335
  5,723
  6,135
  6,574
  7,039
  7,533
Retained Cash Flow (-), $m
  -254
  -297
  -340
  -381
  -423
  -464
  -505
  -547
  -589
  -632
  -676
  -722
  -768
  -816
  -866
  -918
  -972
  -1,028
  -1,086
  -1,147
  -1,210
  -1,276
  -1,345
  -1,417
  -1,492
  -1,571
  -1,654
  -1,740
  -1,831
  -1,926
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
  980
  943
  940
  949
  969
  1,001
  1,044
  1,097
  1,161
  1,236
  1,242
  1,340
  1,449
  1,570
  1,704
  1,851
  2,010
  2,184
  2,372
  2,575
  2,794
  3,030
  3,282
  3,553
  3,842
  4,151
  4,481
  4,833
  5,208
  5,607
Discount rate, %
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  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
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
  902
  793
  716
  649
  590
  536
  486
  440
  396
  353
  294
  258
  224
  192
  161
  133
  108
  86
  67
  50
  37
  27
  19
  13
  8
  5
  3
  2
  1
  1
Current shareholders' claim on cash, %
  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
  100.0

Sempra Energy is a holding company. The Company's principal operating units are Sempra Utilities, which includes its San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCalGas) and Sempra South American Utilities segments, and Sempra Infrastructure, which includes its Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream segments. As of December 31, 2016, SDG&E's service area covered 4,100 square miles. Sempra South American Utilities operates Chilquinta Energia, which serves customers in the region of Valparaiso in central Chile. As of December 31, 2016, SoCalGas had natural gas franchises with the 12 counties and the 223 cities in its service territory. Sempra LNG & Midstream owns land in Simpson County, Mississippi Hub. Sempra LNG & Midstream owns land in Port Arthur, Texas. Sempra Renewables has operations, investments or development projects in the various United States markets.

FINANCIAL RATIOS  of  Sempra Energy (SRE)

Valuation Ratios
P/E Ratio 21.7
Price to Sales 2.9
Price to Book 2.3
Price to Tangible Book
Price to Cash Flow 12.8
Price to Free Cash Flow -15.7
Growth Rates
Sales Growth Rate 0.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 33.5%
Cap. Spend. - 3 Yr. Gr. Rate 10.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 111.2%
Total Debt to Equity 132%
Interest Coverage 4
Management Effectiveness
Return On Assets 4%
Ret/ On Assets - 3 Yr. Avg. 4.2%
Return On Total Capital 4.8%
Ret/ On T. Cap. - 3 Yr. Avg. 4.9%
Return On Equity 11.1%
Return On Equity - 3 Yr. Avg. 11%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 36%
EBITDA Margin - 3 Yr. Avg. 33.2%
Operating Margin 15.3%
Oper. Margin - 3 Yr. Avg. 16.6%
Pre-Tax Margin 17.9%
Pre-Tax Margin - 3 Yr. Avg. 16.2%
Net Profit Margin 13.4%
Net Profit Margin - 3 Yr. Avg. 12.4%
Effective Tax Rate 21.3%
Eff/ Tax Rate - 3 Yr. Avg. 20.3%
Payout Ratio 50.1%

SRE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SRE stock intrinsic value calculation we used $11207 million for the last fiscal year's total revenue generated by Sempra Energy. The default revenue input number comes from 0001 income statement of Sempra 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 SRE 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 8.6%, whose default value for SRE is calculated based on our internal credit rating of Sempra 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 Sempra 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 SRE stock the variable cost ratio is equal to 35.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5060 million in the base year in the intrinsic value calculation for SRE 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 Sempra Energy.

Corporate tax rate of 27% is the nominal tax rate for Sempra 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 SRE 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 SRE are equal to 323%.

Life of production assets of 25.3 years is the average useful life of capital assets used in Sempra 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 SRE is equal to -6.2%. 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 - $12670 million for Sempra 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 273.458 million for Sempra 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 Sempra Energy at the current share price and the inputted number of shares is $32.5 billion.

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COMPANY NEWS

▶ [$$] Energy Future Erases NextEra's $275 Million Oncor Fee   [03:16PM  The Wall Street Journal]
▶ Jeffrey W. Martin Named Chairman Of Sempra Energy   [Sep-10-18 09:10AM  PR Newswire]
▶ 10 Incredible Facts About American LNG Exports   [Sep-09-18 09:32AM  Motley Fool]
▶ 5 Utility Stocks to Buy for an Extra Durable Portfolio   [Sep-04-18 11:36AM  InvestorPlace]
▶ 5 LNG Export Projects Investors Should Know About   [Aug-31-18 07:35AM  Motley Fool]
▶ SoCalGas Declares Preferred Dividends   [11:57AM  PR Newswire]
▶ Sempra Energy Forms North American Infrastructure Group   [Aug-08-18 10:37PM  PR Newswire]
▶ SoCal Gas reaches $119.5M settlement over Aliso Canyon gas leak   [04:35PM  American City Business Journals]
▶ Correction: PepsiCo-CEO-Women-Glance story   [Aug-07-18 06:57PM  Associated Press]
▶ Sempra Energy to Host Earnings Call   [10:00AM  ACCESSWIRE]
▶ Sempra: 2Q Earnings Snapshot   [07:13AM  Associated Press]
▶ [$$] Sempra Energy Leads 11 Utilities in Management Top 250   [01:52PM  The Wall Street Journal]
▶ Oncor To Release Second Quarter 2018 Results On August 6   [Jul-30-18 05:10PM  PR Newswire]
▶ Sempra Energy's Q2 Earnings Preview   [Jul-25-18 10:52AM  Benzinga]
▶ Dallas firm turns to NAACP with new fund to track inclusive companies   [Jul-23-18 12:34PM  American City Business Journals]
▶ [$$] Sempra to Sell Wind and Solar Assets   [10:24AM  The Wall Street Journal]

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