DCF Tool

NOV

NOV Inc – Oil and Gas Field Machinery and Equipment Manufacturing
NOV delivers technology-driven solutions to empower the global energy industry. For more than 150 years, NOV has pioneered innovations that enable its customers to safely produce abundant energy while minimizing environmental impact. The energy industry depends on NOV's deep expertise and technology to continually improve oilfield operations and assist in efforts to advance the energy transition towards a more sustainable future. NOV powers the industry that powers the world.
Analysis Results
Intrinsic Value $0.49
Latest Price $14.85
Relative Value 2917% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -38.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -38.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.0403 0.0381
2023 0.0247 0.0221
2024 0.0152 0.0128
2025 0.00931 0.00742
2026 0.00571 0.0043
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 0.152 billion. This corresponds to a present value of 0.109 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.0847 billion. Adding in the terminal value gives a total present value of 0.193 billion.

There are presently 393.0 million outstanding shares, so the intrinsic value per share is 0.49.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 9,804,000,000
Current Cash 3,182,000,000
Current Liabilities 3,820,000,000
Current Debt 56,000,000
Non-Cash Working Capital (NCWC) 2,858,000,000
Change in NCWC 1,180,000,000
EBIT -278,000,000
Tax Provision 30,000,000
Depreciation and Amortization 612,000,000
Capital Expenditure -402,000,000
Unlevered Free Cash Flow 1,112,000,000
Current Assets 5,209,000,000
Current Cash 1,692,000,000
Current Liabilities 1,867,000,000
Current Debt 28,000,000
Non-Cash Working Capital (NCWC) 1,678,000,000
Change in NCWC -1,047,000,000
EBIT -794,000,000
Tax Provision -242,000,000
Depreciation and Amortization 352,000,000
Capital Expenditure -226,000,000
Unlevered Free Cash Flow -1,715,000,000
Current Assets 6,113,000,000
Current Cash 1,171,000,000
Current Liabilities 2,247,000,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) 2,725,000,000
Change in NCWC -793,000,000
EBIT -471,000,000
Tax Provision -369,000,000
Depreciation and Amortization 533,000,000
Capital Expenditure -233,000,000
Unlevered Free Cash Flow -964,000,000
Current Assets 7,279,000,000
Current Cash 1,427,000,000
Current Liabilities 2,341,000,000
Current Debt 7,000,000
Non-Cash Working Capital (NCWC) 3,518,000,000
Change in NCWC 86,000,000
EBIT 208,000,000
Tax Provision 63,000,000
Depreciation and Amortization 690,000,000
Capital Expenditure -244,000,000
Unlevered Free Cash Flow 677,000,000
Current Assets 7,217,000,000
Current Cash 1,437,000,000
Current Liabilities 2,354,000,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 3,432,000,000
Change in NCWC -495,000,000
EBIT -282,000,000
Tax Provision -156,000,000
Depreciation and Amortization 698,000,000
Capital Expenditure -192,000,000
Unlevered Free Cash Flow -271,000,000
Current Assets 7,876,000,000
Current Cash 1,408,000,000
Current Liabilities 3,047,000,000
Current Debt 506,000,000
Non-Cash Working Capital (NCWC) 3,927,000,000
Change in NCWC -1,547,000,000
EBIT -1,460,000,000
Tax Provision -207,000,000
Depreciation and Amortization 703,000,000
Capital Expenditure -284,000,000
Unlevered Free Cash Flow -2,588,000,000
Current Assets 11,801,000,000
Current Cash 2,080,000,000
Current Liabilities 4,249,000,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 5,474,000,000
Change in NCWC 70,000,000
EBIT 1,312,000,000
Tax Provision 178,000,000
Depreciation and Amortization 747,000,000
Capital Expenditure -453,000,000
Unlevered Free Cash Flow 1,676,000,000
Current Assets 16,162,000,000
Current Cash 3,536,000,000
Current Liabilities 7,374,000,000
Current Debt 152,000,000
Non-Cash Working Capital (NCWC) 5,404,000,000
Change in NCWC -906,000,000
EBIT 3,775,000,000
Tax Provision 1,039,000,000
Depreciation and Amortization 778,000,000
Capital Expenditure -699,000,000
Unlevered Free Cash Flow 1,825,439,896
Current Assets 16,423,000,000
Current Cash 3,436,000,000
Current Liabilities 6,678,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 6,310,000,000
Change in NCWC -401,000,000
EBIT 3,486,000,000
Tax Provision 1,018,000,000
Depreciation and Amortization 755,000,000
Capital Expenditure -669,000,000
Unlevered Free Cash Flow 2,110,405,857
Current Assets 15,678,000,000
Current Cash 3,319,000,000
Current Liabilities 5,649,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 6,711,000,000
Change in NCWC 3,201,000,000
EBIT 3,615,000,000
Tax Provision 1,022,000,000
Depreciation and Amortization 628,000,000
Capital Expenditure -583,000,000
Unlevered Free Cash Flow 5,806,925,820

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