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Nexen, Inc. (NYSE:NXY)
Intrinsic Value (DCF Projected)
$0.00 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today, Nexen, Inc.'s DCF projected intrinsic value is $0.00. The stock price of Nexen, Inc. is $27.41. Therefore, Nexen, Inc.'s Price to Intrinsic Value (DCF Projected) Ratio of today is 0.0.

NXY' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0   Max: 0
Current: 0

NXY's Price to Intrinsic Value (DCF Projected) is ranked higher than
61% of the 1341 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 9999.00 vs. NXY: 0.00 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here Nexen, Inc.'s FCF(6 year avg) is calculate as

Nexen, Inc. Quarterly Data

201009201012201103201106201109201112201203201206201209201212
total_freecashflow 244-227294558-387-349-243402-320-528
200803200806200809200812200903200906200909200912201003201006
total_freecashflow 376518205113-584-5404-18304-356
200703200706200709200712
total_freecashflow -319-227201-164

Add all the Free Cash Flow together and divide 6 will get Nexen, Inc.'s FCF(6 year avg) = $-173.80.

Nexen, Inc.'s DCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Dec12)*0.8)/Shares Outstanding
=(9.52035159596*-173.796232335+8876.00806452*0.8)/531.000
=10.26

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.

Nexen, Inc.'s Price to DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=27.41/10.2565069938
=2.67

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nexen, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
iv_dcf_share 9.4722.3610.225.22-1.567.404.266.497.598.94

Nexen, Inc. Quarterly Data

Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12
iv_dcf_share 6.416.496.648.727.977.597.109.959.628.94
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