Intrinsic value of Weatherford International - WFT

Previous Close

$0.84

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$0.84

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of WFT 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 0.8

 

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, %
  6.20
  6.08
  5.97
  5.87
  5.79
  5.71
  5.64
  5.57
  5.52
  5.46
  5.42
  5.38
  5.34
  5.31
  5.27
  5.25
  5.22
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
Revenue, $m
  6,052
  6,420
  6,804
  7,203
  7,620
  8,055
  8,509
  8,984
  9,479
  9,997
  10,539
  11,106
  11,699
  12,319
  12,969
  13,650
  14,362
  15,109
  15,892
  16,712
  17,572
  18,474
  19,420
  20,411
  21,451
  22,542
  23,687
  24,888
  26,148
  27,470
Variable operating expenses, $m
  8,401
  8,893
  9,407
  9,942
  10,501
  11,083
  11,692
  12,327
  12,991
  13,685
  14,116
  14,875
  15,669
  16,501
  17,371
  18,282
  19,237
  20,238
  21,286
  22,385
  23,537
  24,744
  26,011
  27,339
  28,732
  30,194
  31,727
  33,335
  35,023
  36,794
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
  8,401
  8,893
  9,407
  9,942
  10,501
  11,083
  11,692
  12,327
  12,991
  13,685
  14,116
  14,875
  15,669
  16,501
  17,371
  18,282
  19,237
  20,238
  21,286
  22,385
  23,537
  24,744
  26,011
  27,339
  28,732
  30,194
  31,727
  33,335
  35,023
  36,794
Operating income, $m
  -2,348
  -2,473
  -2,603
  -2,739
  -2,880
  -3,028
  -3,182
  -3,343
  -3,511
  -3,687
  -3,577
  -3,769
  -3,971
  -4,181
  -4,402
  -4,633
  -4,875
  -5,128
  -5,394
  -5,672
  -5,964
  -6,270
  -6,591
  -6,928
  -7,281
  -7,651
  -8,040
  -8,447
  -8,875
  -9,324
EBITDA, $m
  -1,395
  -1,480
  -1,568
  -1,660
  -1,757
  -1,857
  -1,962
  -2,071
  -2,185
  -2,305
  -2,429
  -2,560
  -2,697
  -2,840
  -2,990
  -3,146
  -3,311
  -3,483
  -3,663
  -3,852
  -4,051
  -4,258
  -4,476
  -4,705
  -4,945
  -5,196
  -5,460
  -5,737
  -6,027
  -6,332
Interest expense (income), $m
  0
  584
  504
  547
  592
  638
  687
  738
  791
  846
  904
  965
  1,028
  1,095
  1,164
  1,236
  1,312
  1,392
  1,475
  1,563
  1,654
  1,750
  1,851
  1,956
  2,067
  2,183
  2,304
  2,432
  2,566
  2,706
  2,853
Earnings before tax, $m
  -2,933
  -2,977
  -3,150
  -3,330
  -3,519
  -3,715
  -3,920
  -4,134
  -4,358
  -4,592
  -4,542
  -4,798
  -5,065
  -5,345
  -5,638
  -5,945
  -6,267
  -6,604
  -6,957
  -7,327
  -7,714
  -8,121
  -8,547
  -8,994
  -9,463
  -9,955
  -10,471
  -11,013
  -11,581
  -12,177
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -2,933
  -2,977
  -3,150
  -3,330
  -3,519
  -3,715
  -3,920
  -4,134
  -4,358
  -4,592
  -4,542
  -4,798
  -5,065
  -5,345
  -5,638
  -5,945
  -6,267
  -6,604
  -6,957
  -7,327
  -7,714
  -8,121
  -8,547
  -8,994
  -9,463
  -9,955
  -10,471
  -11,013
  -11,581
  -12,177

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
  10,346
  10,975
  11,630
  12,314
  13,026
  13,770
  14,546
  15,357
  16,204
  17,090
  18,016
  18,984
  19,998
  21,059
  22,169
  23,333
  24,551
  25,828
  27,166
  28,568
  30,038
  31,580
  33,196
  34,891
  36,669
  38,534
  40,491
  42,543
  44,697
  46,957
Adjusted assets (=assets-cash), $m
  10,346
  10,975
  11,630
  12,314
  13,026
  13,770
  14,546
  15,357
  16,204
  17,090
  18,016
  18,984
  19,998
  21,059
  22,169
  23,333
  24,551
  25,828
  27,166
  28,568
  30,038
  31,580
  33,196
  34,891
  36,669
  38,534
  40,491
  42,543
  44,697
  46,957
Revenue / Adjusted assets
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
  0.585
Average production assets, $m
  5,405
  5,733
  6,076
  6,433
  6,805
  7,193
  7,599
  8,023
  8,465
  8,928
  9,411
  9,917
  10,447
  11,001
  11,581
  12,189
  12,826
  13,493
  14,192
  14,924
  15,692
  16,497
  17,342
  18,227
  19,156
  20,130
  21,152
  22,225
  23,350
  24,531
Working capital, $m
  1,259
  1,335
  1,415
  1,498
  1,585
  1,676
  1,770
  1,869
  1,972
  2,079
  2,192
  2,310
  2,433
  2,562
  2,698
  2,839
  2,987
  3,143
  3,306
  3,476
  3,655
  3,843
  4,039
  4,246
  4,462
  4,689
  4,927
  5,177
  5,439
  5,714
Total debt, $m
  6,627
  7,193
  7,783
  8,398
  9,040
  9,709
  10,408
  11,137
  11,900
  12,697
  13,530
  14,402
  15,314
  16,269
  17,268
  18,315
  19,412
  20,561
  21,765
  23,027
  24,350
  25,738
  27,192
  28,718
  30,318
  31,997
  33,757
  35,605
  37,543
  39,578
Total liabilities, $m
  9,311
  9,877
  10,467
  11,082
  11,724
  12,393
  13,092
  13,821
  14,584
  15,381
  16,214
  17,086
  17,998
  18,953
  19,952
  20,999
  22,096
  23,245
  24,449
  25,711
  27,034
  28,422
  29,876
  31,402
  33,002
  34,681
  36,441
  38,289
  40,227
  42,262
Total equity, $m
  1,035
  1,097
  1,163
  1,231
  1,303
  1,377
  1,455
  1,536
  1,620
  1,709
  1,802
  1,898
  2,000
  2,106
  2,217
  2,333
  2,455
  2,583
  2,717
  2,857
  3,004
  3,158
  3,320
  3,489
  3,667
  3,853
  4,049
  4,254
  4,470
  4,696
Total liabilities and equity, $m
  10,346
  10,974
  11,630
  12,313
  13,027
  13,770
  14,547
  15,357
  16,204
  17,090
  18,016
  18,984
  19,998
  21,059
  22,169
  23,332
  24,551
  25,828
  27,166
  28,568
  30,038
  31,580
  33,196
  34,891
  36,669
  38,534
  40,490
  42,543
  44,697
  46,958
Debt-to-equity ratio
  6.410
  6.550
  6.690
  6.820
  6.940
  7.050
  7.150
  7.250
  7.340
  7.430
  7.510
  7.590
  7.660
  7.730
  7.790
  7.850
  7.910
  7.960
  8.010
  8.060
  8.110
  8.150
  8.190
  8.230
  8.270
  8.300
  8.340
  8.370
  8.400
  8.430
Adjusted equity ratio
  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
  -2,933
  -2,977
  -3,150
  -3,330
  -3,519
  -3,715
  -3,920
  -4,134
  -4,358
  -4,592
  -4,542
  -4,798
  -5,065
  -5,345
  -5,638
  -5,945
  -6,267
  -6,604
  -6,957
  -7,327
  -7,714
  -8,121
  -8,547
  -8,994
  -9,463
  -9,955
  -10,471
  -11,013
  -11,581
  -12,177
Depreciation, amort., depletion, $m
  953
  993
  1,035
  1,078
  1,124
  1,171
  1,221
  1,272
  1,326
  1,383
  1,148
  1,209
  1,274
  1,342
  1,412
  1,486
  1,564
  1,645
  1,731
  1,820
  1,914
  2,012
  2,115
  2,223
  2,336
  2,455
  2,580
  2,710
  2,848
  2,992
Funds from operations, $m
  -1,979
  -1,984
  -2,115
  -2,252
  -2,395
  -2,544
  -2,699
  -2,862
  -3,032
  -3,209
  -3,394
  -3,588
  -3,791
  -4,004
  -4,226
  -4,459
  -4,703
  -4,958
  -5,226
  -5,507
  -5,801
  -6,109
  -6,432
  -6,772
  -7,127
  -7,500
  -7,892
  -8,302
  -8,733
  -9,185
Change in working capital, $m
  73
  77
  80
  83
  87
  90
  94
  99
  103
  108
  113
  118
  123
  129
  135
  142
  148
  155
  163
  171
  179
  188
  197
  206
  216
  227
  238
  250
  262
  275
Cash from operations, $m
  -2,053
  -2,060
  -2,195
  -2,335
  -2,482
  -2,634
  -2,794
  -2,960
  -3,135
  -3,317
  -3,507
  -3,706
  -3,915
  -4,133
  -4,361
  -4,600
  -4,851
  -5,114
  -5,389
  -5,677
  -5,980
  -6,297
  -6,629
  -6,978
  -7,344
  -7,727
  -8,130
  -8,552
  -8,995
  -9,460
Maintenance CAPEX, $m
  -621
  -659
  -699
  -741
  -784
  -830
  -877
  -927
  -978
  -1,032
  -1,089
  -1,148
  -1,209
  -1,274
  -1,342
  -1,412
  -1,486
  -1,564
  -1,645
  -1,731
  -1,820
  -1,914
  -2,012
  -2,115
  -2,223
  -2,336
  -2,455
  -2,580
  -2,710
  -2,848
New CAPEX, $m
  -314
  -329
  -342
  -357
  -372
  -388
  -406
  -424
  -443
  -463
  -484
  -506
  -529
  -554
  -580
  -608
  -637
  -667
  -699
  -733
  -768
  -805
  -844
  -886
  -929
  -974
  -1,022
  -1,072
  -1,125
  -1,181
Cash from investing activities, $m
  -935
  -988
  -1,041
  -1,098
  -1,156
  -1,218
  -1,283
  -1,351
  -1,421
  -1,495
  -1,573
  -1,654
  -1,738
  -1,828
  -1,922
  -2,020
  -2,123
  -2,231
  -2,344
  -2,464
  -2,588
  -2,719
  -2,856
  -3,001
  -3,152
  -3,310
  -3,477
  -3,652
  -3,835
  -4,029
Free cash flow, $m
  -2,988
  -3,048
  -3,236
  -3,433
  -3,638
  -3,853
  -4,077
  -4,311
  -4,556
  -4,812
  -5,079
  -5,360
  -5,653
  -5,961
  -6,283
  -6,620
  -6,974
  -7,345
  -7,733
  -8,140
  -8,568
  -9,016
  -9,485
  -9,978
  -10,495
  -11,038
  -11,607
  -12,204
  -12,831
  -13,489
Issuance/(repayment) of debt, $m
  -1,062
  566
  590
  615
  641
  669
  699
  730
  762
  797
  833
  872
  912
  955
  1,000
  1,047
  1,097
  1,149
  1,204
  1,262
  1,323
  1,387
  1,455
  1,526
  1,600
  1,679
  1,761
  1,848
  1,938
  2,034
Issuance/(repurchase) of shares, $m
  4,593
  3,040
  3,216
  3,399
  3,590
  3,789
  3,998
  4,215
  4,443
  4,680
  4,635
  4,895
  5,167
  5,451
  5,749
  6,062
  6,389
  6,731
  7,090
  7,467
  7,861
  8,275
  8,709
  9,164
  9,641
  10,142
  10,667
  11,218
  11,796
  12,403
Cash from financing (excl. dividends), $m  
  3,531
  3,606
  3,806
  4,014
  4,231
  4,458
  4,697
  4,945
  5,205
  5,477
  5,468
  5,767
  6,079
  6,406
  6,749
  7,109
  7,486
  7,880
  8,294
  8,729
  9,184
  9,662
  10,164
  10,690
  11,241
  11,821
  12,428
  13,066
  13,734
  14,437
Total cash flow (excl. dividends), $m
  543
  558
  569
  581
  593
  606
  620
  634
  649
  666
  389
  406
  425
  445
  466
  488
  511
  536
  561
  588
  617
  647
  678
  711
  746
  783
  821
  861
  904
  948
Retained Cash Flow (-), $m
  -4,593
  -3,040
  -3,216
  -3,399
  -3,590
  -3,789
  -3,998
  -4,215
  -4,443
  -4,680
  -4,635
  -4,895
  -5,167
  -5,451
  -5,749
  -6,062
  -6,389
  -6,731
  -7,090
  -7,467
  -7,861
  -8,275
  -8,709
  -9,164
  -9,641
  -10,142
  -10,667
  -11,218
  -11,796
  -12,403
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
  -4,050
  -2,482
  -2,646
  -2,818
  -2,997
  -3,183
  -3,378
  -3,581
  -3,793
  -4,015
  -4,246
  -4,488
  -4,741
  -5,006
  -5,283
  -5,573
  -5,877
  -6,196
  -6,529
  -6,878
  -7,244
  -7,628
  -8,031
  -8,453
  -8,895
  -9,359
  -9,846
  -10,357
  -10,892
  -11,455
Discount rate, %
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
  32.85
  34.49
  36.21
  38.02
  39.93
  41.92
  44.02
  46.22
  48.53
  50.96
  53.50
  56.18
  58.99
  61.94
  65.03
PV of cash for distribution, $m
  -3,497
  -1,826
  -1,635
  -1,439
  -1,245
  -1,057
  -881
  -719
  -574
  -448
  -342
  -254
  -184
  -130
  -89
  -59
  -38
  -24
  -14
  -8
  -5
  -2
  -1
  -1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  12.7
  3.2
  0.8
  0.2
  0.1
  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
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Weatherford International public limited company, together with its subsidiaries, operates as a multinational oilfield service company worldwide. It offers equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells. The company operates through three business groups: Formation Evaluation and Well Construction, Completion and Production, and Land Drilling Rigs. The Formation Evaluation and Well Construction business group provides managed-pressure drilling, drilling services, tubular running services, drilling tools and rental equipment, wireline services, testing and production services, re-entry and fishing services, cementing products, liner systems, reservoir solutions, and surface logging systems. The Completion and Production business group offers artificial lift systems, and stimulation and completion systems. The Land Drilling Rigs business group provides onshore contract drilling services and related operations, as well as operates a fleet of land drilling and workover rigs. Weatherford International public limited company was founded in 1972 and is headquartered in Baar, Switzerland.

FINANCIAL RATIOS  of  Weatherford International (WFT)

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%

WFT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WFT stock intrinsic value calculation we used $5699 million for the last fiscal year's total revenue generated by Weatherford International. The default revenue input number comes from 0001 income statement of Weatherford International. 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 WFT stock valuation model: a) initial revenue growth rate of 6.2% 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 15.8%, whose default value for WFT is calculated based on our internal credit rating of Weatherford International, 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 Weatherford International.
    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 WFT stock the variable cost ratio is equal to 139.1%.

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 WFT 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 7.6% for Weatherford International.

Corporate tax rate of 27% is the nominal tax rate for Weatherford International. 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 WFT 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 WFT are equal to 89.3%.

Life of production assets of 8.2 years is the average useful life of capital assets used in Weatherford International 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 WFT is equal to 20.8%. 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 - $-626 million for Weatherford International - 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 997.084 million for Weatherford International 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 Weatherford International at the current share price and the inputted number of shares is $0.8 billion.

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COMPANY NEWS

▶ Could be a bad call to bet on oil stocks: Cramer   [Nov-05-18 07:09PM  CNBC Videos]
▶ Weatherford Completes Sale of Kuwait Land Drilling Rigs   [Nov-01-18 04:15PM  PR Newswire]
▶ Weatherford: 3Q Earnings Snapshot   [06:54AM  Associated Press]
▶ Weatherford Sells Laboratory Business for $205MM   [Oct-23-18 08:00PM  Rigzone.com]
▶ [$$] Weatherford to Sell Laboratory-Services Business for $205 Million   [Oct-22-18 01:22PM  The Wall Street Journal]
▶ Weatherford finds Houston-based buyer for laboratory services business   [12:29PM  American City Business Journals]
▶ Even With $80 Oil, You Should Avoid These 3 Stocks   [Oct-16-18 06:06AM  Motley Fool]
▶ Weatherford CEO Expects 2018 EBITDA To Nearly Double   [Sep-04-18 08:00PM  Rigzone.com]
▶ Weatherford Announces Conference Call   [Aug-30-18 04:30PM  PR Newswire]
▶ Weatherford sells land drilling rig operations in Middle East for $287.5M   [Jul-12-18 02:56PM  American City Business Journals]
▶ [$$] Weatherford International targeted by activist investor   [Jun-24-18 01:40AM  Financial Times]
▶ Weatherford Announces Conference Call   [Jun-18-18 08:00AM  PR Newswire]
▶ Weatherford reportedly considering selling laboratory business   [Jun-12-18 12:40PM  American City Business Journals]
▶ Weatherford Plans Sale of Laboratories Business   [Jun-11-18 01:26PM  Bloomberg]
▶ At $3.47, Is Weatherford International plc (NYSE:WFT) A Buy?   [Jun-01-18 08:42PM  Simply Wall St.]
▶ Weatherford CEO named to Houston chemical companys board   [08:48AM  American City Business Journals]
▶ [$$] Citigroup Stock Sales: Citi, GE, Tesla, Weatherford   [May-16-18 08:00AM  Barrons.com]
▶ Weatherford Introduces Magnus Rotary Steerable System   [Apr-26-18 08:30AM  PR Newswire]
▶ Why Weatherford International PLCs Stock Is Rising Today   [Apr-05-18 04:13PM  Motley Fool]
▶ An Oil Services Pair Trade From Piper Jaffray   [Apr-03-18 04:19PM  Benzinga]
▶ Four Penny Stocks Billionaires Are Invested In   [Mar-15-18 12:06PM  Insider Monkey]
▶ Weatherford Publishes Digital 2017 Annual Report   [Mar-13-18 05:30PM  PR Newswire]
▶ Weatherford Names New Director   [Mar-12-18 04:15PM  PR Newswire]
▶ Weatherford Announces Conference Call   [07:30AM  PR Newswire]

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