Natural Resources Partners LP (Natural Resources Partners LP) Intrinsic Value: DCF (Dividends Based) : $134.14 (As of Apr. 27, 2024)

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What is Natural Resources Partners LP Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-27), Natural Resources Partners LP's intrinsic value calculated from the Discounted Dividend model is $134.14.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Natural Resources Partners LP's Predictability Rank is 1-Star. 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 % (DCF Dividends Based) using Discounted Dividend Model for Natural Resources Partners LP is 31.62%.

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

NRP's Price-to-DCF (Dividends Based) is not ranked ^*
in the Other Energy Sources industry.
Industry Median: 0.29
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Natural Resources Partners LP Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Natural Resources Partners LP's Intrinsic Value: DCF (Dividends 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.

Natural Resources Partners LP Intrinsic Value: DCF (Dividends Based) Chart

Natural Resources Partners LP Annual Data

Trend

Dec14

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Dec23

Intrinsic Value: DCF (Dividends Based)

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Natural Resources Partners LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Natural Resources Partners LP's Intrinsic Value: DCF (Dividends Based)

For the Thermal Coal subindustry, Natural Resources Partners LP's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends 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.

Natural Resources Partners LP's Price-to-DCF (Dividends Based) Distribution in the Other Energy Sources Industry

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

* The bar in red indicates where Natural Resources Partners LP's Price-to-DCF (Dividends Based) falls into.

Natural Resources Partners LP Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend 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 DDM 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 4.66%. 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. Dividend Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend 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.
=> Natural Resources Partners LP's average Dividend Growth Rate in the past 10 years was -17.10%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $11.6235.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

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

Natural Resources Partners LP's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(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 (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

11.6235

11.5406

134.14

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(134.14	-	91.73)	/	134.14
	=	31.62 %

Natural Resources Partners LP (NYSE:NRP) Intrinsic Value: DCF (Dividends Based) Explanation

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

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate 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 with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
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 dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends 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.

Natural Resources Partners LP Intrinsic Value: DCF (Dividends Based) Related Terms

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Natural Resources Partners LP (Natural Resources Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Natural Resources Partners LP (NYSE:NRP) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

1415 Louisiana Street, Suite 3325, Houston, TX, USA, 77002

Website

https://www.nrplp.com

Natural Resources Partners LP is a diversified natural resource company. It is engaged in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal, trona and soda ash, crude oil and natural gas, construction aggregates, frac sand, and other natural resources. The company leases coal reserves to experience mine operators under long-term leases that grant the operator the right to mine its coal reserves in exchange for royalty payments. The company operates in two reportable segments namely: Mineral Rights and Soda Ash. the majority of the revenue is generated from the Mineral Rights segment. The business activity of the group functions through the United States.

Executives

Murphy Paul B Jr	director	OCEANEERING INTERNATIONAL, INC., 11911 FM 529, HOUSTON TX 77041
Philip T Warman	officer: General Counsel & Secretary	123 ROBERT S. KERR AVENUE, OKLAHOMA CITY OK 73102-6406
Alexander David Greene	director	3200 INDUSTRIAL PARK ROAD, VAN BUREN AR 72956
Galdino J. Claro	director	350 POPLAR CHURCH ROAD, CAMP HILL PA 17011
Perry W Donahoo	officer: CEO of VantaCore	1201 LOUISIANA, SUITE 3400, HOUSTON TX 77002
Jennifer Lauren Odinet	officer: Chief Accounting Officer	1201 LOUISIANA, SUITE 3400, HOUSTON TX 77002
Kevin J Craig	officer: VP of Business Development	PO BOX 2827, HUNTINGTON WV 25727
Jasvinder Khaira	director	1201 LOUISIANA STREET, SUITE 3400, HOUSTON TX 77002
Premium Resources, Llc	10 percent owner	1415 LOUISIANA STREET, SUITE 2400, HOUSTON TX 77002
Jackson Leon George Iii	director	235 MARLBERRY CIRCLE, JUPITER FL 33458
David M Hartz	officer: VP, Oil and Gas	601 JEFFERSON STREET, SUITE 3600, HOUSTON TX 77002
Richard A Navarre	director	601 JEFFERSON STREET, SUITE 3600, HOUSTON TX 77002
Christopher Zolas	officer: Chief Accounting Officer	601 JEFFERSON STREET, SUITE 3600, HOUSTON TX 77002
Craig W Nunez	officer: CFO and Treasurer	1401 MCKINNEY STREET, SUITE 2400, HOUSTON TX 77010
Dennis F Coker	officer: Vice President - Aggregates	601 JEFFERSON STREET, SUITE 3600, HOUSTON TX 77002