Core Laboratories N.V. (NYSE:CLB) Earnings Model
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Core Labs Modeling ApproachRevenue Modeling Approach: This model uses reservoir description, production enhancement, and reservoir management operating segment growth rates to project future revenue.
Expense Modeling Approach: We project expense line items based on forecasted segment operating income, historic growth rates and historic averages. We apply an effective tax rate to the future projected income to forecast the income tax expense. Non-GAAP Adjustments: Core Laboratories does not report significant non-GAAP items other than foreign exchange losses. Share Count Forecast: The future share forecast is based on management’s commentary regarding its commitment to use excess capital for future opportunistic share repurchases. Balance Sheet & Cash Flow Modeling Approach: We use operating ratios to project the primary accounts on the Balance Sheet, and Balance Sheet changes and earnings estimates to forecast the Cash Flow Statement. Valuation Approach: We utilize two valuation methods: A Market Multiple-based approach, and a Discounted Cash Flow (DCF) valuation. We apply a Price-Earnings Multiple to the Next Twelve Month consensus EPS estimate, on an exCash basis. Our DCF is based on a two-stage approach which discounts the company’s expected cash flows using our estimate of the Weighted Average Cost of Capital. |
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