Answer Happy

You can also use the information on the Internet to
value the entire corporation. This approach requires that you
estimate XOM’s annual free cash flows. Once you estimate the value
of the firm’s operations and the value of any non-operating assets,
you subtract the value of debt and preferred stock to arrive at an
estimate of the company’s equity value. By dividing this value by
the number of shares of common stock outstanding, you calculate an
alternative estimate of the stock’s intrinsic value. Although this
approach may take additional time and involves more judgment
concerning forecasts of future free cash flows, you can use the
financial statements and growth forecasts on the Internet as useful
starting points.