$87.17
+1.7%Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2021, it had 2,159,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $278.0M | $139.0M | $69.5M | $34.8M | $17.4M | $8.7M | $4.3M | $2.2M | $1.1M | $543.0K |
| Maintenance CapEx | -$80.8M | -$40.4M | -$20.2M | -$10.1M | -$5.0M | -$2.5M | -$1.3M | -$631.1K | -$315.6K | -$157.8K |
| Owner Earnings | $197.3M | $98.6M | $49.3M | $24.7M | $12.3M | $6.2M | $3.1M | $1.5M | $770.5K | $385.3K |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $182.6M | $84.6M | $39.1M | $18.1M | $8.4M | $3.9M | $1.8M | $832.6K | $385.4K | $178.4K |
Snapshot
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Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.