Download
module 7 valuation using residual enterprise income n.
Skip this Video
Loading SlideShow in 5 Seconds..
Module 7: Valuation using Residual Enterprise Income PowerPoint Presentation
Download Presentation
Module 7: Valuation using Residual Enterprise Income

Module 7: Valuation using Residual Enterprise Income

163 Views Download Presentation
Download Presentation

Module 7: Valuation using Residual Enterprise Income

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Module 7:Valuation usingResidual Enterprise Income Andrew Swint Oil and Gas Equipment and Services

  2. agenda • Baker Hughes • Valuations using • Residual Enterprise Income • Discounted Cash Flows • Considerations or concerns • Questions (including updated eTrade baby picture)

  3. Baker Hughes • A leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry • Revenue breakdown • Sales: $ 7,594 (34%) • Services: 14,770 (66%) • More than 58,000 employees in 9 Regions and 23 Geomarkets • Houston, TX

  4. Residual enterprise income

  5. Discounted cash flow model

  6. Captured valued • Discounted Cash Flow Model • $10,542 / 31,902 = 33% • Residual Enterprise Income Valuation Model • ($21,908 + 4,300) / 31,902 = 82%

  7. Concerns • Revenue generators • Industry concerns • High sensitivity

  8. INDUSTRY

  9. KEY DRIVERS • Oil and natural gas prices • Demand from oil drilling and gas extraction • Regulation

  10. High sensitivity

  11. Questions