National Oilwell Varco

Navigate firm data through the following pages:

Analyst Listing       Primary Input Data
Derived Input Data       Valuation Model Outcomes

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Piper Jaffray Bill Herbert william.a.herbert@simmonspjc.com
Scotia Howard Weil Bill Sanchez william.sanchez@scotiabank.com
Jefferies Brad Handler brad.handler@jefferies.com
William Blair Brandon Dobell bdobell@williamblair.com
GMP Securities Brian Uhlmer buhlmer@gmpsecurities.com
Tudor Pickering Holt & Co. Byron K. Pope bpope@tudorpickering.com
Susquehanna Financial Group Charles Minervino charles.minervino@sig.com
BMO Capital Markets Daniel Boyd daniel.boyd@bmo.com
KLR Group Darren Gacicia dfg@klrgroup.com
Societe Generale Edward Muztafago edward.muztafago@sgcib.com
Raymond James J .Marshall Adkins marshall.adkins@raymondjames.com
Evercore ISI James West james.west@evercoreisi.com
Credit Suisse James Wicklund james.wicklund@credit-suisse.com
Capital One Securities Joseph D. Gibney joseph.gibney@capitalone.com
Wells Fargo Securities Judson E. Bailey jud.bailey@wellsfargo.com
Seaport Global Securities Ken Sill ksill@seaportglobal.com
Griffin Securities Kevin Simpson ksimpson@griffinsecurities.com
RBC Capital Markets Kurt Hallead kurt.hallead@rbccm.com
Cowen & Company Marc Bianchi marc.bianchi@cowen.com
Johnson Rice & Company Martin W. Malloy mmalloy@jrco.com
Nomura Research Matthew Johnston matthew.johnston@nomura.com
Guggenheim Securities Michael LaMotte michael.lamotte@guggenheimpartners.com
Clarksons Platou Securities Nokta Haithum haithum.nokta@clarksons.com
KeyBanc Capital Markets Robin Shoemaker robin_shoemaker@key.com
FBR Capital Markets & Co Thomas Curran tcurran@fbr.com
IBERIA Capital Partners Trey Stolz trey.stolz@iberiabank.com
Fearnley Securities Truls Olsen t.olsen@fearnleys.no

Return to top of page

Primary Input Data

 

Return to top of page

Derived Input Data

Derived Input

Label

2015  Value

2016  Value

Equational Form
Net Operating Profit Less Adjusted Taxes NOPLAT   1,242  (187) NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF  879  676 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS  (31)  1 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC  22,476  18,093 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 5.52% -1.03% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv  (2,965)  (3,680) NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR -238.82% 1967.91% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital WACCMarket 2.34% 2.87% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  8.55% 8.59%
Enterprise value EVMarket  13,178  15,431  EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  15,104  15,476
EV/EBIT Multiple \frac{EV_{Market}}{EBIT}  6.90  (70.14) EV/EBIT\,=\,\frac { EV}{ EBIT}
Long-Run Growth g = IR x ROIC
   -13.19%   -20.34% Long-run growth rates of the income variable  are used in the Continuing Value portion of the valuation models.
 g = % \Delta GDP   2.50%   2.50%

Return to top of page

Valuation Model Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs and, depending on the equational form of any particular valuation model, may result in irrelevant or implausible results.  For example, in the event WACC < g, the value of this term, often found in the denominator of an equation’s continuation value term, will be expressly negative and may result in a negative overall valuation for the firm.  In the event of a WACC < g relation, the model form as applied to the subject firm offers an irrelevant outcome.

Valuation Model Type

Label

Equational form
Key Value Driver (NOPLAT) KVD (NOPLAT) { Value }_{ DCF/KVD }=\sum { \frac { NOPLAT_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Key Value Driver (FCF) KVD (FCF)
{ Value }_{ DCF/KVD }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Free Cash Flow FCF { Value }_{ DCF/FCF }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Economic Profit ECON π { Value }_{ { ECON\pi } }= I{ C }_{ 0 }+\sum { \frac { { IC }_{ t-1 }(ROI{ C }_{t}-WAC{C}_{t}) }{ { \left( 1+WACC \right) }^{ t } }+ \frac {\frac { I{C}_{0}\ x\ (ROI{C}_{1}\ -\ WAC{C}_{1}) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Adjusted Present Value APV { Value }_{ APV }=\sum { \frac { FCF_{ t } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ { k }_{ u }-g } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } } +\sum { \frac { { TS }_{ t } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } +\frac { \frac { { TS }_{ 1 }}{ { k }_{ tax }-g } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } }
 
Forward Market Multiple FMM { Value }_{ DCF/FMM}=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { { EBIT }_{ 1 }\,{x}\,{FMM}}{ { \left( 1+WACC \right) }^{ t } } }{\,\,\,; \,\,FMM\,=\,\frac{{EV}_{t=0}}{{EBIT}_{t=0}}}
 

Return to top of page