DCF Tool

NOV

NOV Inc – Oil and Gas Field Machinery and Equipment Manufacturing
national oilwell varco (nyse: nov) is a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations, and the provision of oilfield services to the oil and gas industry. every day, thousands of the industry’s best minds put more than 150 years of experience to work to help our customers achieve lasting success. our partnership with our customers has led to the innovation of some of the highest quality products on the market. through our broad capabilities and vision, nov’s family of companies is positioned and ready to serve the needs of this challenging, evolving industry. nov has the technical expertise, advanced equipment and readily available support necessary for our customers’ success.
Analysis Results
Intrinsic Value $0.29
Latest Price $19.12
Relative Value 6604% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 -39.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -39.6%, 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)
2023 0.021 0.0202
2024 0.0127 0.0118
2025 0.00767 0.00686
2026 0.00463 0.00399
2027 0.0028 0.00232
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 0.0839 billion. This corresponds to a present value of 0.0671 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.0452 billion. Adding in the terminal value gives a total present value of 0.112 billion.

There are presently 394.0 million outstanding shares, so the intrinsic value per share is 0.29.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,493,000,000
Current Cash 1,069,000,000
Current Liabilities 2,437,000,000
Current Debt 33,000,000
Non-Cash Working Capital (NCWC) 2,020,000,000
Change in NCWC 591,000,000
EBIT 332,000,000
Tax Provision 83,000,000
Depreciation and Amortization 301,000,000
Capital Expenditure -214,000,000
Unlevered Free Cash Flow 894,218,487
Current Assets 4,902,000,000
Current Cash 1,591,000,000
Current Liabilities 1,910,000,000
Current Debt 28,000,000
Non-Cash Working Capital (NCWC) 1,429,000,000
Change in NCWC -249,000,000
EBIT -139,000,000
Tax Provision 15,000,000
Depreciation and Amortization 306,000,000
Capital Expenditure -201,000,000
Unlevered Free Cash Flow -283,000,000
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.