Author(s)

Wenhao Liang

Corresponding Author

Wenhao Liang

Abstract

According to the financial statements and other relative documents of Southwestern Energy Company (SWN), the company will be benefited from reserves increase, capital structure improvement, technological advances and vertical integration. The greatest challenge that SWN faces is to stable its return on invested capital (ROIC) and increase market share. Despite some fluctuations of ROIC in the past few year, SWN has bright future to generate more profit and gain more market shares because of its brilliant management of costs and the robust value growth in its core operation areas. The discounted cash flow (PV-10) method and two different relative valuation methods were used to calculate the target one-year price with a list of assumptions that in line with SWN’s operational strategies was made.

Keywords

DCF, Relative Valuation, Company Analysis, Industry Analysis, Risk Analysis