Switch to:
Cimarex Energy Co (NYSE:XEC)
Intrinsic Value (DCF Projected)
$1.80 (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, Cimarex Energy Co's DCF projected intrinsic value is $1.80. The stock price of Cimarex Energy Co is $109.16. Therefore, Cimarex Energy Co's Price to Intrinsic Value (DCF Projected) Ratio of today is 60.6.

XEC' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 1.35   Max: 79.33
Current: 60.6

1.35
79.33

During the past 12 years, the highest Price to Intrinsic Value (DCF Projected) Ratio of Cimarex Energy Co was 79.33. The lowest was 1.35. And the median was 3.52.

XEC's Price to Intrinsic Value (DCF Projected) is ranked higher than
82% of the 1111 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 9999.00 vs. XEC: 60.60 )

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 Cimarex Energy Co's FCF(6 year avg) is calculate as

Cimarex Energy Co Quarterly Data

201203201206201209201212201303201306201309201312201403201406
total_freecashflow -159-24-162-189-163-43-18-75-92-277
200909200912201003201006201009201012201103201106201109201112
total_freecashflow 16454955050-76-69-44-138-115
200809200812200903200906
total_freecashflow 79-393-12314

Add all the Free Cash Flow together and divide 6 will get Cimarex Energy Co's FCF(6 year avg) = $-276.28.

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

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jun14)*0.8)/Shares Outstanding
=(11.8545928257*-276.283833333+4286.631*0.8)/85.689
=1.80

* 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 DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=109.16/1.79804235691
=60.71

* 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.

Cimarex Energy Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
iv_dcf_share 0.000.000.000.0016.1515.5323.6319.9614.3914.35

Cimarex Energy Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
iv_dcf_share 13.1518.1216.6214.3913.3413.0014.4914.3511.071.80
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK