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CONSOL Coal Resources LP (CONSOL Coal Resources LP) Intrinsic Value: DCF (Earnings Based) : $-1.67 (As of Apr. 26, 2024)


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What is CONSOL Coal Resources LP Intrinsic Value: DCF (Earnings Based)?

As of today (2024-04-26), CONSOL Coal Resources LP's intrinsic value calculated from the Discounted Earnings model is $-1.67.

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

CONSOL Coal Resources LP's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (Earnings Based) using Discounted Earnings model for CONSOL Coal Resources LP is N/A.

The historical rank and industry rank for CONSOL Coal Resources LP's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:

CCR's Price-to-DCF (Earnings Based) is not ranked *
in the Other Energy Sources industry.
Industry Median: 0.26
* Ranked among companies with meaningful Price-to-DCF (Earnings Based) only.

CONSOL Coal Resources LP Intrinsic Value: DCF (Earnings Based) Historical Data

The historical data trend for CONSOL Coal Resources LP's Intrinsic Value: DCF (Earnings Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CONSOL Coal Resources LP Intrinsic Value: DCF (Earnings Based) Chart

CONSOL Coal Resources LP Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Intrinsic Value: DCF (Earnings Based)
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CONSOL Coal Resources LP Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Intrinsic Value: DCF (Earnings Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of CONSOL Coal Resources LP's Intrinsic Value: DCF (Earnings Based)

For the Thermal Coal subindustry, CONSOL Coal Resources LP's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CONSOL Coal Resources LP's Price-to-DCF (Earnings Based) Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, CONSOL Coal Resources LP's Price-to-DCF (Earnings Based) distribution charts can be found below:

* The bar in red indicates where CONSOL Coal Resources LP's Price-to-DCF (Earnings Based) falls into.



CONSOL Coal Resources LP Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.67%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> CONSOL Coal Resources LP's average EPS without NRI Growth Rate in the past 5 years was -2.30%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = $-0.145.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

CONSOL Coal Resources LP's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=EPS without NRI*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=-0.145*11.5406
=-1.67

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(-1.67-4.73)/-1.67
=N/A

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


CONSOL Coal Resources LP  (NYSE:CCR) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


CONSOL Coal Resources LP Intrinsic Value: DCF (Earnings Based) Related Terms

Thank you for viewing the detailed overview of CONSOL Coal Resources LP's Intrinsic Value: DCF (Earnings Based) provided by GuruFocus.com. Please click on the following links to see related term pages.


CONSOL Coal Resources LP (CONSOL Coal Resources LP) Business Description

Industry
Traded in Other Exchanges
N/A
Address
1000 CONSOL Energy Drive, Suite 100, CNX Center, Canonsburg, PA, USA, 15317-6506
CONSOL Coal Resources LP is engaged in the thermal coal operations in Pennsylvania. The company's assets include interests in CONSOL energy's Pennsylvania mining complex, which consists of approximately three underground mines (Bailey Mine, Enlow Fork Mine, and Harvey Mine) and related infrastructure that produce bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. All the operations of the group are conducted at a single mining complex located in the Northern Appalachian Basin in southwestern Pennsylvania.
Executives
Jeffrey L Wallace director, other: SEE REMARKS 1000 CONSOL ENERGY DRIVE CANONSBURG PA 15317
Michael L Greenwood director, other: SEE REMARKS
Dan D Sandman director, other: SEE REMARKS
Miteshkumar Thakkar officer: See Remarks 1000 CONSOL DRIVE, SUITE 100, CANONSBURG PA 15317
John Rothka officer: Chief Accounting Officer 2970 HENDERSON AVENUE, WASHINGTON PA 15301
Consol Energy Inc. director, 10 percent owner 1000 CONSOL ENERGY DRIVE SUITE #100 CANONSBURG PA 15317
Greenlight Capital Inc 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Dme Advisors, Lp 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Dme Advisors Gp, L.l.c. 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Dme Capital Management, Lp 10 percent owner 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
David Einhorn 10 percent owner, other: See Footnotes (1) - (11) 140 EAST 45TH STREET, 24TH FLOOR, NEW YORK NY 10017
Deborah J. Lackovic director, other: SEE REMARKS C/O CONSOL COAL RESOURCES LP 100 CONSOL ENERGY DRIVE, SUITE 100 CANONSBURG PA 15317
Kurt R. Salvatori director, other: SEE REMARKS 1000 CONSOL ENERGY DRIVE, CANONSBURG PA 15317
Martha A Wiegand officer: SEE REMARKS 1000 CONSOL ENERGY DRIVE, CANONSBURG PA 15317
James A Brock director, officer: SEE REMARKS 1000 CONSOL ENERGY DRIVE, CANONSBURG PA 15317