Miller Energy Resources (Miller Energy Resources) Intrinsic Value: DCF (FCF Based) : $ (As of Jun. 02, 2024)

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What is Miller Energy Resources Intrinsic Value: DCF (FCF Based)?

As of today (2024-06-02), Miller Energy Resources's intrinsic value calculated from the Discounted Cash Flow model is $.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Miller Energy Resources'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 (FCF Based) using Discounted Cash Flow model for Miller Energy Resources is

The industry rank for Miller Energy Resources's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

MILOQ.PFD's Price-to-DCF (FCF Based) is not ranked ^*
in the Oil & Gas industry.
Industry Median: 0.685
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

Miller Energy Resources Intrinsic Value: DCF (FCF Based) Historical Data

The historical data trend for Miller Energy Resources's Intrinsic Value: DCF (FCF 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.

Miller Energy Resources Intrinsic Value: DCF (FCF Based) Chart

Miller Energy Resources Annual Data

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Intrinsic Value: DCF (FCF Based)

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Miller Energy Resources Quarterly Data
	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15
Intrinsic Value: DCF (FCF Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Miller Energy Resources's Intrinsic Value: DCF (FCF Based)

For the Oil & Gas E&P subindustry, Miller Energy Resources's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF 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.

Miller Energy Resources's Price-to-DCF (FCF Based) Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Miller Energy Resources's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Miller Energy Resources's Price-to-DCF (FCF Based) falls into.

Miller Energy Resources Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the 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 DCF 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 4.50%. 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. Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
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.
=>

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

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

Miller Energy Resources's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)	=	Free Cash Flow 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+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (FCF Based)

Free Cash Flow per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Free Cash Flow per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

Margin of Safety (FCF Based)	=	(Intrinsic Value: DCF (FCF Based)	-	Current Price)	/	Intrinsic Value: DCF (FCF Based)
	=	(	-	0.03)	/

Miller Energy Resources (OTCPK:MILOQ.PFD) Intrinsic Value: DCF (FCF Based) Explanation

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

Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company 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 that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

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

Miller Energy Resources Intrinsic Value: DCF (FCF Based) Related Terms

Thank you for viewing the detailed overview of Miller Energy Resources's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Miller Energy Resources (Miller Energy Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Miller Energy Resources Inc (OTCPK:MILOQ.PFD) » Definitions » Intrinsic Value: DCF (FCF Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.millerenergyresources.com

Miller Energy Resources Inc was formed in Delaware in November 1985. In January 1997, it acquired Miller Petroleum, Inc., a privately-held company, in a reverse merger in which Miller Petroleum, Inc. In conjunction with this transaction, the Company changed its name to Miller Petroleum, Inc. and re-domesticated to the State of Tennessee. The Company is an exploration and production company that utilizes seismic data and other technologies for the geophysical exploration, development and production of oil and natural gas wells in the Cook Inlet Basin of southcentral Alaska and the Appalachian region of eastern Tennessee. The Company focuses its efforts on activities in the Cook Inlet and Susitna Basins of Alaska as well as the Appalachian region of East Tennessee. The Cook Inlet Basin contains large oil and gas deposits including multiple offshore fields. The Cook Inlet is a vast estuary stretching 180 miles from the Gulf of Alaska to Anchorage in southcentral Alaska. The Inlet separates the Kenai Peninsula in the east from the Alaska Peninsula in the west. The Cook Inlet Basin underlying this region contains large oil and gas deposits including several offshore fields. There are also numerous oil and gas pipelines located in and under the Cook Inlet. The Cook Inlet Basin has produced approximately 1.3 billion barrels of oil and 7.8 trillion cubic feet ('tcf') of natural gas. The Susitna Basin underlies the sprawling Susitna River valley to the north of Anchorage. The Susitna Basin lies directly north of the Cook Inlet Basin, separated by the Castle Mountain Fault, and has similar geology. Wells drilled within its acreage range from approximately 1,500 to 4,200 feet in depth with major targets in descending order being: the Mississippian age Monteagle Limestone and Fort Payne Limestone, and the Devonian age Chattanooga Shale, with the Fort Payne Limestone being the primary oil target. The existing markets for natural gas production in southcentral Alaska are the Tesoro Nikiski Refinery, utility companies, petrochemical manufacturing, the production of LNG for export to Asian markets, and the production of synthetic crude oil ('syncrude'). Presently, its sole market for crude oil produced from its Alaskan operations is the Tesoro Nikiski Refinery. Crude oil is shipped by pipeline and tanker vessel to the Tesoro Nikiski Refinery, operated by Tesoro Alaska Petroleum Company ('Tesoro'). It competes with a number of other companies doing business in Alaska, Tennessee and elsewhere, including large oil and gas companies and other operators. The Company's exploration and production business is subject to various federal, state and local laws and regulations on the taxation of natural gas and oil, the development, production and marketing of natural gas and oil and environmental and safety matters.

Executives

Daniel Vogel	director	C/O APOLLO MANAGEMENT, L.P., 9 WEST 57TH, NEW YORK NY 10019
Apollo Management Holdings Gp, Llc	10 percent owner	9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Highbridge Principal Strategies - Specialty Loan Fund Iii, L.p.	10 percent owner	40 WEST 57TH STREET, 33RD FLOOR, NEW YORK NY 10019
Jeffrey Fitts	director	C/O MILLER ENERGY RESOURCES, INC., 9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932
Apollo Investment Management, L.p.	10 percent owner	2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON DE 19808
Apollo Investment Corp	10 percent owner	9 W. 57TH STREET, NEW YORK NY 10019
Highbridge Specialty Loan Sector D Investment Fund, L.p.	10 percent owner	C/O HIGHBRIDGE PRINCIPAL STRATEGIES, LLC, 40 WEST 57TH STREET, NEW YORK NY 10019
Don Dimitrievich	director	C/O MILLER ENERGY RESOURCES, INC., 9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932
Gerald Girardi	director	C/O APOLLO MANAGEMENT, L.P., 9 WEST 57TH STREET, NEW YORK NY 10019
Apollo Capital Management, L.p.	10 percent owner	9 WEST 57TH STREET, NEW YORK NY 10019
Apollo Capital Management Gp, Llc	10 percent owner	9 WEST 57TH STREET, NEW YORK NY 10019
Apollo Management Holdings, L.p.	10 percent owner	9 W. 57TH STREET, NEW YORK NY 10019
Leland E Tate	officer: Interim COO	4600 POST OAK PLACE STE 200, HOUSTON TX 77027
Phillip G Elliott	officer: SVP and CFO	9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932
Jeffrey R Mcinturff	officer: CAO	9721 COGDILL ROAD, SUITE 302, KNOXVILLE TN 37932

Miller Energy Resources (Miller Energy Resources) Headlines

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Miller Energy Resources (MILL) : Massively Undervalued Alaska Oil & Gas

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