Using the Discounted Cash Flow valuation method Starbucks shows a discount to what it is trading at today. In the formula I calculated the terminal value using 25x EBITDA, I believe this to be fair as Starbucks is currently trading at 38x EBITDA. I also used the CAPM approach to find the discount rate of 7.71%.
As of September 4th the value of Starbucks shares using the discounted cash flow formula is $77.01. This is indicating
Continue reading Starbucks Stock Price Target Using the Discounted Cash Flow Valuation $SBUX
American Water Works provides water and wastewater services to residential, commercial and industrial customers mainly in the United States. American Water Works, which is the largest investor-owned water and wastewater utility company in the United States, through its subsidiaries serves an estimated 14 million people throughout 30 States and Ontario, Canada. As the chart below indicates, the majority of American Water Works customers are located in New Jersey, Pennsylvania and Missouri.
In the course of pursuing the company’s inorganic growth
Continue reading American Water Works: Inorganic Growth To Propel Stock Price And Dividend $AWK
The transformation from energy importer to energy exporter will make Brazil the largest producer of crude oil in Latin America. One vast region that the Brazilian government is looking to develop is the Pre-Salt region off the Southeast coast of Brazil. According to the EIA, this Ultra-Deep water region has ”recoverable oil and natural gas reserves at more than 50 billion barrels of oil equivalent (BOE).”
Petrobas is a company that operates as an integrated oil and gas company in
Continue reading Growth in the Brazilian Deepwater, $DO $HAL $PBR
Gaining knowledge about a company’s debt and liabilities is a key component in understanding the risk of a company. An understanding of these factors will aid in the decision to invest, not to invest, or to stay invested in a company. The advantages of finding companies with little or no debt, is that they don’t have debt induced financial obligations that may hinder the growth of the company.
Three companies with no long-term debt and growth potential are:
Continue reading 3 Companies with No Debt and Strong Balance Sheets $V $MA $ACTG
Recently, Norway has raised its estimate for undiscovered oil and gas by 31% to 8 billion barrels of oil equivalent in the Barents Sea. Recently, Norway and Russia resolved a 40-year-old dispute over dividing the Barents Sea and part of the Arctic Ocean. Currently, the Norwegian Government is looking to increase its production in the Barents Sea. Statoil ASA (STO), which operates over 80% of Norway’s oil and natural gas production, has said it will to spend $13.8 billion USD
Continue reading Transocean: Not Undervalued For Long $RIG $STO $HAL $RDS.A