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Cimarex Energy Co (NYSE:XEC)
Intrinsic Value: Projected FCF
$-0.43 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free 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, Cimarex Energy Co's projected FCF intrinsic value is $-0.43. The stock price of Cimarex Energy Co is $104.12. Therefore, Cimarex Energy Co's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

XEC' s 10-Year Price to Intrinsic Value: Projected FCF Range
Min: 1.35   Max: 79.7
Current: 0

1.35
79.7

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Cimarex Energy Co was 79.70. The lowest was 1.35. And the median was 3.48.

XEC's Price to Intrinsic Value: Projected FCF is ranked lower than
470% of the 132 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.06 vs. XEC: 0.00 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free 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 Cimarex Energy Co's FCF(6 year avg) is calculate as

Cimarex Energy Co Quarterly Data

201212201303201306201309201312201403201406201409201412201503
total_freecashflow -189-163-43-18-75-92-27710-221-277
201006201009201012201103201106201109201112201203201206201209
total_freecashflow 5050-76-69-44-138-115-159-24-162
200906200909200912201003
total_freecashflow 141645495

Add all the Free Cash Flow together and divide 6 will get Cimarex Energy Co's FCF(6 year avg) = $-284.63.

Cimarex Energy Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Mar15)*0.8)/Shares Outstanding
=(11.6133759848*-284.6345+4086.138*0.8)/85.770
=-0.43

* 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.

Cimarex Energy Co's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

Price to Intrinsic Value: Projected FCF=Share Price/Intrinsic Value: Projected FCF
=104.12/-0.427387976673
=

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


Related Terms

Intrinsic Value: DCF (Earnings Based), Intrinsic Value: DCF (FCF Based), Free Cash Flow


Historical Data

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

Cimarex Energy Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Projected FCF 0.000.000.0016.1515.5323.6319.9614.3914.351.76

Cimarex Energy Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Projected FCF 14.3913.3413.0014.4914.3511.071.80-4.291.76-0.43
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